re: Ann: OZ Minerals March 2013 Quarterly Rep... HT – 2013 will...

re: Ann: OZ Minerals March 2013 Quarterly Rep... HT – 2013 will be a tough year in which cash flows will be limited. Post 2013, PH will return to generating significant cash as the strip ratio comes down and they reduce their mining fleet. So I would not be too devastated by the results. The fact is the pit slump is a temporary issue that will get resolved by August. TB did mention that rain over the next few months would be bad news.

The original concept of Ankarta was to maintain production levels at 100 to 110 Kt over the life of the open pit. So I would expect once the current issues are resolved, 2014 production should return to normalised rates and C1 should head south. So there is value there for those with a long term view.

I read somewhere the other day that costs in Chile’s major mines are typically in the $1.50 to $2.00 range, so OZL won’t be the only one hurting if the copper price heads south.

A few comments on the quarterly:
• Surface drilling has been completed at Big C so don’t expect much news flow on this until the PFS is completed next year.
• Nice hit at Khamsin, hopefully after a few more drill holes they can locate some high grade pods like Big C.
• One positive was Ankarta hit target production
• They picked up 7 tenements around Big C.
• No news on the South American projects, I would have thought an update would be in order.

With the heat coming out of the resource industry, OZL and others should be able to improve productivity. This could bode well for the CAPEX at Big C.

Hang in there.