SDL & FMG BASIC COMPARISON FMG SDL Source Basis of Comparison Source Snowden Mining DFS, 10 April 2006 45 mt/y Target Capacity 35 mt/y International Roadshow Presentation, 28 January 2011 Operating / Producing Mine A$ 20.824-Billion Market Capitalisation, as of 8 Feb 2011 A$ 1.383-Billion Pre-release of DFS
Release of DFS, 10 April 2006 A$ 1.914-Billion Market Capitalisation upon DFS Release n/a
3.11 Billion Ordinary Shares, as of 8 February 2011 2.71 Billion
17 March 2006, Pre-release of DFS 866 Mt DSO, High Grade Reserves 415 Mt International Roadshow Presentation, 28 January 2011 17 March 2006, Pre-release of DFS 2.4 Billion Lower Grade Ores 2.325 Billion International Roadshow Presentation, 28 January 2011
17 March 2006, Pre-release of DFS US$ 1.46 Billion +/- 10% Estimated Start-up CAPEX US$ 3.36 Billion International Roadshow Presentation, 28 January 2011
Estimated OPEX 17 March 2006, Pre-release of DFS US$ 11.28 / t Estimated Production Cost US$ 19.65 / t International Roadshow Presentation, 28 January 2011 (using SDL Ave. Price of US$ 63.12/t) US$ 51.84 / t Estimated Operating Margin US$ 43.47 / t International Roadshow Presentation, 28 January 2011 (assuming the same Price as SDL) US$ 63.12 / t Estimated Average Selling Price US$ 63.12 / t International Roadshow Presentation, 28 January 2011
not indicated Estimated Payback < 4 years International Roadshow Presentation, 28 January 2011 not indicated IRR > 25 % (nominal post tax) International Roadshow Presentation, 28 January 2011
RISK PROFILE Vs. LOCATION Well established Country's Policies in Mining No precedent; Not proven yet Proven & well established Government Stability for Mining 2 countries; To be proven yet Suited to Bulk Mining Region/Location Infrastructures Practically Nil at present Proven for decades Political Stability towards Long-term Mining No precedent; Not proven yet Already established Issues on Indigenous & Traditional Owners Not known yet Established; Proven for decades Level of Mining Taxes & Royalties Not sure; No precedent yet Known & established; with precedent Environmental Issues Not known yet; No precedent Australia Only Mining Leases Location 2 countries; Cameroon & Congo Established; Proven for decades Bulk Mining History in the Area Practically Nil at present
SDL Price at posting:
52.0¢ Sentiment: Hold Disclosure: Held
