MARCH 2011                                Gresham Group 150                                                              M...
Group 150       Top 150 asX LisTed resource companies - February       By Market Capitalisation                           ...
MARCH 2011                                                                            Mkt Cap (A$m)              %        ...
Group 150Group 150 markeT capiTaLisaTion                                                                                  ...
MARCH 2011capiTaL sTucTure - GearinG LeveLsOptimising Capital Structure to Improve Shareholder ValueCapital structuring an...
Group 150capiTaL sTucTure - GearinG LeveLs                                Net Debt /Enterprise Value                   Gro...
MARCH 2011base meTaLs - secTor perFormance                              Share Price Performance - February 2011           ...
Group 150coaL - secTor perFormance                              Share Price Performance - February 2011Share Price Perform...
MARCH 2011diversiFied - secTor perFormance                    indusTriaL mineraLs - secTor perFormance                    ...
Group 150GoLd - secTor perFormance                              Share Price Performance - February 2011Share Price Perform...
MARCH 2011iron ore - secTor perFormance                              Share Price Performance - February 2011Share Price Pe...
Group 150uranium - secTor perFormance                              Share Price Performance - February 2011Share Price Perf...
MARCH 2011consensus commodiTy price ForecasTs - February Gold (US$/oz)                                                    ...
recenT resources TransacTions      Group 150      Mergers and Acquisitions       Mergers and Acquisitions                 ...
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Gresham - "Group 150" - March 2011

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Gresham - "Group 150" - March 2011

  1. 1. MARCH 2011 Gresham Group 150 March 2011 Darren Martin Gresham Advisory Partners dmartin@gresham.com.au +61 8 9486 7077 +61 412 144 719 ASX RESOURCES - GROUP 150 We are pleased to present the March edition of ‘Group 150’, a ranking of the top 150 ASX listed resources companies (excluding oil and gas), by market capitalisation. February recorded the Group 150 recapture of the decline in cumulative market value witnessed in January, up 2.8% to 605.4 billion. The entry point into the Group 150 was extended in February to $138.1 million from $127.7 million for January. The ASX/ S&P 200 Resources Index increased 3.4% for the month, significantly outperforming both the ASX All Ordinaries and ASX/S&P 200 Index which increased 1.5% and 1.6% respectively. Four M&A transactions were announced during the month with base metals being the current focus, supported by Independence’s offer for Jabiru and Equinox’s offer for Lundin Mining. Following the upbeat and positive predictions made at Indaba, we expect to see an increased level of activity in the coming months. A straw poll amongst some of the 5,000 delegates appeared to favour gold, iron ore and copper as the preferred commodities. “Winners” for February (in terms of growth in market capitalisation) were : Cobar (+76.4%), Atlas Iron (+72.5%), South Boulder (+72.1%), Papillon (+61.1%) and Carabella (+48.9%). In this edition, we provide the results of our study on the current gearing levels of the Group 150 companies. Capital structuring and, in particular, locating the optimal capital structure, have for a long time been a focus for many an academic and financial institution that probe this area. In recent years, the role of financial management has undergone a significant change. The ownership structure, size of companies, equity / debt markets, financial systems and instruments have advanced significantly in a technology driven dynamic environment. As a result, the role of management has become far more important than merely a fund raiser. Management is expected to maximize the economic welfare of the owners, represented by the market value of the firm and faces competition from interests seeking short term share price appreciation versus long term growth. To achieve this objective, one has to take a number of decisions, the most important being the investment, financing and dividend decisions. Testing the thesis “cash is king and debt is bad” we observed 80% of the Group 150 were in a net cash position at 31 December 2010 and the weighted average gearing level was negative 2.6%, when measured on a net debt to enterprise value basis. Interestingly, companies with a domestic focus are in a stronger net cash position than peers with overseas focussed operations. We look forward to seeing you at Mines and Money in Hong Kong at the end of the month. Gresham Advisory Partners Limited Gresham Advisory Partners is a leading Australian mergers and acquisitions/corporate advisoryEdition 12 business and one of Australia’s largest and highest ranking independent corporate advisors. 1
  2. 2. Group 150 Top 150 asX LisTed resource companies - February By Market Capitalisation Mkt Cap (A$m) % Mkt Cap (A$m) % Feb Jan Company 28-Feb-11 31-Jan-11 Change Feb Jan Company 28-Feb-11 31-Jan-11 Change 1 1 BHP Billiton Ltd. (ASX:BHP) $255,624.8 $245,605.7 4.1% 51 52 OceanaGold Corporation (ASX:OGC) $694.5 $699.7 (0.7%) 2 2 Rio Tinto Ltd. (ASX:RIO) $166,594.7 $164,924.5 1.0% 52 48 Gujarat NRE Coking Coal Limited (ASX:GNM) $663.9 $748.4 (11.3%) 3 3 Newcrest Mining Ltd. (ASX:NCM) $29,023.0 $28,296.1 2.6% 53 56 ST Barbara Ltd. (ASX:SBM) $657.7 $605.6 8.6% 4 4 Fortescue Metals Group Ltd. (ASX:FMG) $20,670.1 $19,860.1 4.1% 54 59 Bathurst Resources Ltd (ASX:BTU) $640.9 $573.9 11.7% 5 5 Coal & Allied Industries Ltd. (ASX:CNA) $10,260.3 $11,087.2 (7.5%) 55 53 Northern Iron Limited (ASX:NFE) $638.6 $626.8 1.9% 6 6 Alumina Ltd. (ASX:AWC) $5,807.6 $5,807.6 0.0% 56 57 Bougainville Copper Ltd. (ASX:BOC) $633.7 $603.6 5.0% 7 8 Equinox Minerals Ltd. (ASX:EQN) $5,455.2 $5,185.4 5.2% 57 55 Resolute Mining Ltd. (ASX:RSG) $615.8 $611.1 0.8% 8 7 OZ Minerals Limited (ASX:OZL) $5,246.4 $5,278.8 (0.6%) 58 60 Murchison Metals Limited (ASX:MMX) $599.6 $560.1 7.1% 9 13 Iluka Resources Ltd. (ASX:ILU) $4,408.2 $3,537.4 24.6% 59 63 Discovery Metals Ltd. (ASX:DML) $546.4 $524.4 4.2% 10 9 New Hope Corp. Ltd. (ASX:NHC) $4,026.6 $4,068.1 (1.0%) 60 50 International Coal Holdings Limited (ASX:ICL) $542.5 $714.9 (24.1%) 11 12 Paladin Energy, Ltd. (ASX:PDN) $3,849.5 $3,547.0 8.5% 61 62 Ampella Mining Limited (ASX:AMX) $527.7 $532.7 (0.9%) 12 10 Riversdale Mining Ltd. (ASX:RIV) $3,668.8 $3,744.5 (2.0%) 62 61 Kagara Ltd (ASX:KZL) $527.3 $541.5 (2.6%) 13 11 MacArthur Coal Ltd. (ASX:MCC) $3,536.8 $3,737.5 (5.4%) 63 64 Cockatoo Coal Limited (ASX:COK) $518.2 $518.2 0.0% 14 14 Whitehaven Coal Limited (ASX:WHC) $3,342.3 $3,475.7 (3.8%) 64 70 Gryphon Minerals Ltd. (ASX:GRY) $515.4 $456.3 13.0% 15 15 Aquila Resources Ltd. (ASX:AQA) $3,256.5 $3,432.5 (5.1%) 65 65 Sphere Minerals Limited (ASX:SPH) $514.0 $514.0 0.0% 16 16 Lynas Corp. Ltd. (ASX:LYC) $3,241.9 $2,984.2 8.6% 66 72 Beadell Resources Ltd (ASX:BDR) $491.5 $444.8 10.5% 17 23 Atlas Iron Limited (ASX:AGO) $3,010.8 $1,745.2 72.5% 67 66 CuDeco Ltd. (ASX:CDU) $471.5 $504.9 (6.6%) 18 17 Aquarius Platinum Ltd. (ASX:AQP) $3,006.8 $2,575.6 16.7% 68 67 Panoramic Resources Ltd. (ASX:PAN) $470.0 $483.2 (2.7%) 19 18 PanAust Limited (ASX:PNA) $2,385.6 $2,396.5 (0.5%) 69 69 Metminco Limited. (ASX:MNC) $467.8 $467.8 0.0% 20 20 Extract Resources Ltd. (ASX:EXT) $2,250.4 $2,170.1 3.7% 70 74 Metals X Limited (ASX:MLX) $464.3 $430.2 7.9% 21 19 Mount Gibson Iron Ltd. (ASX:MGX) $2,176.0 $2,284.2 (4.7%) 71 82 Jabiru Metals Limited (ASX:JML) $459.2 $340.3 34.9% 22 21 Energy Resources of Australia Ltd. (ASX:ERA) $1,949.3 $1,915.0 1.8% 72 68 Arafura Resources Limited (ASX:ARU) $452.6 $476.5 (5.0%) 23 25 Aston Resources Limited (ASX:AZT) $1,820.3 $1,698.8 7.2% 73 110 South Boulder Mines Ltd. (ASX:STB) $436.4 $253.6 72.1% 24 24 Zimplats Holdings Ltd. (ASX:ZIM) $1,759.9 $1,722.2 2.2% 74 76 Aditya Birla Minerals Limited (ASX:ABY) $416.8 $388.6 7.3% 25 22 Gloucester Coal Ltd. (ASX:GCL) $1,613.7 $1,824.4 (11.5%) 75 73 Rex Minerals Limited. (ASX:RXM) $410.3 $441.9 (7.2%) 26 26 Ivanhoe Australia Limited (ASX:IVA) $1,364.0 $1,372.4 (0.6%) 76 86 Greenland Minerals and Energy Ltd (ASX:GGG) $407.5 $334.9 21.7% 27 27 Sundance Resources Ltd. (ASX:SDL) $1,342.6 $1,342.4 0.0% 77 71 Moly Mines Ltd. (ASX:MOL) $395.2 $453.7 (12.9%) 28 28 Medusa Mining Limited (ASX:MML) $1,325.2 $1,253.6 5.7% 78 77 Integra Mining Ltd. (ASX:IGR) $379.0 $386.6 (2.0%) 29 38 Kingsgate Consolidated Limited (ASX:KCN) $1,268.1 $952.3 33.2% 79 90 Aspire Mining Limited (ASX:AKM) $369.0 $312.7 18.0% 30 30 Perseus Mining Ltd. (ASX:PRU) $1,248.4 $1,205.1 3.6% 80 81 Flinders Mines Limited. (ASX:FMS) $364.1 $345.9 5.3% 31 31 Western Areas NL (ASX:WSA) $1,186.3 $1,161.0 2.2% 81 83 Saracen Mineral Holdings Limited (ASX:SAR) $359.2 $339.6 5.8% 32 42 Intrepid Mines Limited (ASX:IAU) $1,103.1 $895.3 23.2% 82 101 Mineral Deposits Ltd. (ASX:MDL) $357.9 $291.3 22.9% 33 34 Sandfire Resources (ASX:SFR) $1,079.7 $1,045.2 3.3% 83 85 Silver Lake Resources Limited (ASX:SLR) $357.8 $336.3 6.4% 34 35 Mantra Resources Limited (ASX:MRU) $1,056.9 $1,044.0 1.2% 84 78 Cape Lambert Resources Limited (ASX:CFE) $354.5 $369.4 (4.0%) 35 32 Mirabela Nickel Ltd. (ASX:MBN) $1,051.9 $1,106.0 (4.9%) 85 88 Kingsrose Mining Limited (ASX:KRM) $344.7 $332.7 3.6% 36 45 Giralia Resources NL (ASX:GIR) $1,050.7 $863.1 21.7% 86 79 Deep Yellow Ltd. (ASX:DYL) $343.9 $366.3 (6.1%) 37 29 Gindalbie Metals Ltd. (ASX:GBG) $1,047.4 $1,248.5 (16.1%) 87 75 Indophil Resources NL (ASX:IRN) $339.4 $391.3 (13.3%) 38 40 CGA Mining Limited (ASX:CGX) $1,039.8 $926.5 12.2% 88 80 Mincor Resources NL (ASX:MCR) $339.0 $352.0 (3.7%) 39 33 Minara Resources Ltd. (ASX:MRE) $982.3 $1,062.9 (7.6%) 89 100 Perilya Ltd. (ASX:PEM) $338.6 $291.4 16.2% 40 36 Independence Gold NL (ASX:IGO) $947.8 $995.0 (4.7%) 90 84 Marengo Mining Limited (ASX:MGO) $338.0 $338.0 0.0% 41 39 Coalspur Mines Limited (ASX:CPL) $941.9 $946.3 (0.5%) 91 93 Adamus Resources Ltd. (ASX:ADU) $331.4 $310.9 6.6% 42 37 White Energy Company Limited (ASX:WEC) $905.8 $977.9 (7.4%) 92 104 Ramelius Resources Ltd. (ASX:RMS) $330.3 $279.4 18.2% 43 44 Jupiter Mines Ltd. (ASX:JMS) $891.9 $888.2 0.4% 93 87 Nucoal Resources NL (ASX:NCR) $325.4 $333.2 (2.3%) 44 47 Regis Resources Limited (ASX:RRL) $883.0 $833.5 5.9% 94 91 Conquest Mining Limited (ASX:CQT) $321.9 $312.0 3.2% 45 41 Grange Resources Limited (ASX:GRR) $852.5 $910.1 (6.3%) 95 95 Troy Resources NL (ASX:TRY) $319.4 $303.6 5.2% 46 46 Summit Resources Ltd. (ASX:SMM) $808.7 $839.2 (3.6%) 96 108 Alkane Resources Limited (ASX:ALK) $313.4 $260.2 20.4% 47 51 Brockman Resources Limited (ASX:BRM) $796.4 $700.8 13.6% 97 96 Galaxy Resources (ASX:GXY) $310.6 $303.0 2.5% 48 49 OM Holdings Limited (ASX:OMH) $761.6 $739.1 3.0% 98 107 Tiger Resources Ltd. (ASX:TGS) $304.7 $262.8 15.9% 49 54 Bandanna Energy Limited (ASX:BND) $730.6 $613.8 19.0% 99 92 Orocobre Limited (ASX:ORE) $300.2 $311.0 (3.5%) 50 58 Allied Gold Ltd. (ASX:ALD) $698.3 $599.3 16.5% 100 89 Guildford Coal Limited (ASX:GUF) $292.6 $317.3 (7.8%)Includes ASX Resource companies excluding oil and gas 2
  3. 3. MARCH 2011 Mkt Cap (A$m) % Mkt Cap (A$m) % Feb Jan Company 28-Feb-11 31-Jan-11 Change Feb Jan Company 28-Feb-11 31-Jan-11 Change 101 99 Equatorial Resources Limited (ASX:EQX) $291.3 $299.0 (2.6%) 126 130 Atlantic Ltd (ASX:ATI) $193.0 $174.5 10.6% 102 97 BC Iron Limited (ASX:BCI) $288.0 $302.5 (4.8%) 127 127 Pluton Resources Limited (ASX:PLV) $186.9 $183.0 2.1% 103 125 Peninsula Energy Limited (ASX:PEN) $281.1 $194.3 44.7% 128 129 Bannerman Resources Limited (ASX:BMN) $184.0 $177.0 4.0% 104 105 Catalpa Resources Limited (ASX:CAH) $274.9 $276.8 (0.7%) 129 - Straits Resources Limited (ASX:SRQ) $180.3 - - 105 115 Gold One International Limited (ASX:GDO) $274.4 $234.1 17.2% 130 123 Kula Gold Limited (ASX:KGD) $174.6 $197.1 (11.4%) 106 122 African Energy Resources Limited (ASX:AFR) $269.2 $200.8 34.1% 131 149 Robust Resources Limited (ASX:ROL) $174.0 $129.4 34.5% 107 94 Berkeley Resources Ltd. (ASX:BKY) $258.6 $309.6 (16.5%) 132 140 Resource Generation Limited (ASX:RES) $173.2 $143.9 20.4% 108 112 Elemental Minerals Limited (ASX:ELM) $258.5 $250.0 3.4% 133 121 IMX Resources Ltd. (ASX:IXR) $172.0 $207.5 (17.1%) 109 103 Hunnu Coal Limited (ASX:HUN) $257.7 $285.3 (9.7%) 134 180 Papillon Resources Limited (ASX:PIR) $165.9 $103.0 61.1% 110 102 Platinum Australia Limited (ASX:PLA) $255.1 $290.4 (12.2%) 135 136 Astron Ltd. (ASX:ATR) $165.7 $155.9 6.3% 111 106 Iron Ore Holdings Limited (ASX:IOH) $250.0 $271.0 (7.7%) 136 138 Kentor Gold Limited (ASX:KGL) $164.5 $153.9 6.9% 112 116 Tanami Gold NL (ASX:TAM) $247.9 $227.0 9.2% 137 134 African Iron Limited (ASX:AKI) $163.2 $158.2 3.2% 113 118 Noble Mineral Resources Ltd. (ASX:NMG) $245.5 $218.8 12.2% 138 133 Nyota Minerals Limited (ASX:NYO) $160.1 $159.5 0.4% 114 109 Highlands Pacific Limited (ASX:HIG) $243.6 $253.8 (4.0%) 139 131 Azumah Resources Ltd (ASX:AZM) $158.2 $169.1 (6.4%) 115 111 Sylvania Resources Ltd. (ASX:SLV) $241.6 $252.1 (4.2%) 140 167 Resource and Investment NL (ASX:RNI) $153.0 $111.4 37.3% 116 117 Northern Energy Corporation Ltd (ASX:NEC) $239.5 $223.5 7.2% 141 132 Kangaroo Resources Limited (ASX:KRL) $151.1 $159.6 (5.3%) 117 114 Hillgrove Resources Ltd. (ASX:HGO) $234.1 $234.1 0.0% 142 143 Stanmore Coal Limited (ASX:SMR) $150.8 $161.4 (6.6%) 118 137 Carabella Resources Limited (ASX:CLR) $231.6 $155.5 48.9% 143 124 Australasian Resources Ltd (ASX:ARH) $150.4 $194.7 (22.8%) 119 119 Red 5 Ltd. (ASX:RED) $230.0 $217.2 5.9% 144 170 Cerro Resources NL (ASX:CJO) $147.7 $109.9 34.4% 120 128 FerrAus Ltd. (ASX:FRS) $224.2 $180.0 24.6% 145 135 Golden West Resources Limited (ASX:GWR) $146.0 $156.4 (6.6%) 121 113 Continental Coal Limited (ASX:CCC) $218.5 $242.4 (9.9%) 146 144 Sihayo Gold Limited (ASX:SIH) $144.6 $138.2 4.6% 122 - Blackgold International Hold. Ltd (ASX:BGG) $216.0 - - 147 206 Cobar Consolidated Resources Ltd (ASX:CCU) $142.5 $80.8 76.4% 123 139 Focus Minerals Limited (ASX:FML) $209.2 $151.9 37.7% 148 146 Toro Energy Ltd (ASX:TOE) $139.9 $135.1 3.6% 124 126 Exco Resources Ltd. (ASX:EXS) $201.0 $187.1 7.4% 149 141 Alliance Resources Ltd. (ASX:AGS) $139.9 $141.6 (1.2%) 125 120 WPG Resources Ltd (ASX:WPG) $194.4 $214.0 (9.2%) 150 153 Centrex Metals Limited (ASX:CXM) $138.1 $122.6 12.6%Source: Capital IQnew enTranTs - February eXiTs - February60 International Coal Holdings Limited (ASX:ICL) Avoca Resources Ltd. (ASX:AVO)122 Blackgold International Holdings Limited (ASX:BGG) Dominion Mining Limited (ASX:DOM)134 Papillon Resources Limited (ASX:PIR) Ausgold Limited (ASX:AUC)140 Resource and Investment NL (ASX:RNI) Mungana Goldmines Ltd (ASX:MUX)144 Cerro Resources NL (ASX:CJO) Avanco Resources Limited (ASX:AVB)147 Cobar Consolidated Resources Ltd (ASX:CCU) Chalice Gold Mines Ltd. (ASX:CHN)150 Centrex Metals Limited (ASX:CXM) A-Cap Resources Ltd. (ASX:ACB)Based on market capitalisation as at 28 February vs 31 January 2011Group 150 Leaders and LaGGers - markeT capiTaLisaTion perFormance - February Leaders Laggers * Included placement, acquisition and/or material option conversion during month 3
  4. 4. Group 150Group 150 markeT capiTaLisaTion asX indeX perFormance - FebruaryGroup 150 secTor markeT capiTaLisaTion - February Market Capitalisation (A$b)merGer & acquisiTions - announced in February Percent Premium - Premium - Date Value Consideration Target Acquirer Sought 1 Day Prior 1 Month Prior Announced (A$m) Offered (%) (%) (%) 28-Feb-2011 Lundin Mining Corp (TSX:LUN) Equinox Minerals Ltd. (ASX:EQN) 4,785.8 100 25.6 11.1 Elections 22-Feb-2011 White Canyon Uranium Ltd. (ASX:WCU) Denison Mines Corp. (TSX:DML) 49.7 100 20.0 71.4 Cash 7-Feb-2011 Aragon Resources Ltd. (ASX:AAG) Westgold Resources Limited (ASX:WGR) 63.2 80 35.4 27.5 Equity 20-Jan-2011 BC Iron Limited (ASX:BCI) Regent Pacific Group Ltd (SEHK:575) 258.7 80.13 4.1 27.9 EquitySource: Capital IQAnnounced Australian Resources (excluding oil and gas) Mergers and Acquisitions >A$10m4
  5. 5. MARCH 2011capiTaL sTucTure - GearinG LeveLsOptimising Capital Structure to Improve Shareholder ValueCapital structuring and, in particular, locating the optimal capital structure, have for a long time been a focus for many an academicand financial institution that probe this area. Academically, the problem is appealing because it is fairly open ended and subject tocontroversies and criticisms.In recent years, the role of financial management has undergone a significant change. The ownership structure, size of companies,equity / debt markets, financial systems and instruments have advanced significantly in a technology driven dynamic environment. Asa result, the role of management has become far more important than merely a fund raiser.Management is expected to maximize the economic welfare of the owners, represented by the market value of the firm and facescompetition from interests seeking short term share price appreciation versus long term growth. To achieve this objective, one has totake a number of decisions, the most important being the investment, financing and dividend decisions.Below is a summary of the gearing levels of the Group 150. As at 31 December 2010, 80% of companies were in a net cash position,with the weighted average gearing level being negative 2.6%. Interestingly, companies with a domestic focus are in a stronger net cashposition than peers with overseas focussed operations. Gearing (Net Debt /Enterprise Value) Group 150 Mining Companies – by Market Capitalisation NET DEBTNet Debt / Enterprise Value NET CASH 80% in net cash positionSource: Capital IQBased on Net Debt at 31 December 2010 5
  6. 6. Group 150capiTaL sTucTure - GearinG LeveLs Net Debt /Enterprise Value Group 150 Mining Companies – by Market Capitalisation NET DEBT NET CASH6
  7. 7. MARCH 2011base meTaLs - secTor perFormance Share Price Performance - February 2011 Copper Nickel ZincShare Price Performance Share Price Performance - Since 31 December 2010Share Price Performance Share Price Performance - Since 30 June 2010Share Price Performance 7
  8. 8. Group 150coaL - secTor perFormance Share Price Performance - February 2011Share Price Performance Share Price Performance - Since 31 December 2010Share Price Performance Share Price Performance - Since 30 June 2010Share Price Performance8
  9. 9. MARCH 2011diversiFied - secTor perFormance indusTriaL mineraLs - secTor perFormance Share Price Performance - February 2011Share Price Performance Share Price Performance Share Price Performance - Since 31 December 2010Share Price Performance Share Price Performance Share Price Performance - Since 30 June 2010Share Price Performance Share Price Performance 9
  10. 10. Group 150GoLd - secTor perFormance Share Price Performance - February 2011Share Price Performance Share Price Performance - Since 31 December 2010Share Price Performance Share Price Performance - Since 30 June 2010Share Price Performance10
  11. 11. MARCH 2011iron ore - secTor perFormance Share Price Performance - February 2011Share Price Performance Share Price Performance - Since 31 December 2010Share Price Performance Share Price Performance - Since 30 June 2010Share Price Performance 11
  12. 12. Group 150uranium - secTor perFormance Share Price Performance - February 2011Share Price Performance Share Price Performance - Since 31 December 2010Share Price Performance Share Price Performance - Since 30 June 2010Share Price Performance12
  13. 13. MARCH 2011consensus commodiTy price ForecasTs - February Gold (US$/oz) Silver (US$/OZ) $2,500 $60 $2,000 $50 $1,411 $1,444 $1,331 $33.89 $1,231 $1,169 $40 $29.10 $1,500 $22.00 $30 $20.00 $18.63 $1,000 $20 $500 $10 $0 $0 Spot 2011 2012 2013 2014 Spot 2011 2012 2013 2014 Copper (US$/lb) Nickel (US$/lb) $6.00 $16.00 $13.15 $4.48 $4.41 $4.54 $11.57 $5.00 $3.87 $11.00 $10.29 $3.71 $12.00 $9.75 $4.00 $3.00 $8.00 $2.00 $4.00 $1.00 $0.00 $0.00 Spot 2011 2012 2013 2014 Spot 2011 2012 2013 2014 Zinc (US$/lb) Lead (US$/lb) $1.50 $1.14 $1.15 $2.00 $1.10 $1.09 $1.09 $1.50 $1.16 $1.17 $1.20 $1.12 $1.00 $1.07 $1.00 $0.50 $0.50 $0.00 $0.00 Spot 2011 2012 2013 2014 Spot 2011 2012 2013 2014 Tin (US$/lb) Uranium (US$/lb) $17.50 $14.66 $100 $15.00 $12.70 $12.70 $65.00 $65.00 $63.25 $60.00 $12.50 $9.07 $75 $53.00 $10.00 $50 $7.50 $5.00 $25 $2.50 $0.00 $0 Spot 2011 2012 2013 2014 Spot 2011 2012 2013 2014 AUD:USD NYMEX (US$/bbl) $1.25 $1.02 $0.98 $200 $0.95 $0.91 $0.85 $1.00 $150 $97.41 $95.50 $105.00 $100.88 $0.75 $90.00 $100 $0.50 $0.25 $50 $0.00 $0 Spot 2011 2012 2013 2014 Spot 2011 2012 2013 2014Source: Bloomberg Consensus Estimates - Median / High / Low 13
  14. 14. recenT resources TransacTions Group 150 Mergers and Acquisitions Mergers and Acquisitions 2010 2009 GRAM 2009 2009 2008 2008 2006 Advised BHP Advised BG Advised Guandong Advised Allied Gold Advised Kalahari Advised Gem Advised IAMGOLD Billiton on its Group on its $1bn Rising on its $216m on its $54m Minerals on its Diamonds on its Corporation on its $204m offer for takeover offer for cornerstone acquisition of $140m proposed $300m acquisition $265m acquisition United Minerals Pure Energy investment in Pan Australian merger with of Kimberley of Gallery Gold. Corporation. Resources Aust. Solomons Gold. Extract Resources. Diamonds. Limited. TakeoverDefence Takeover Defence 2010 2010 2010 2009 2009 2007 2007 Advised Polaris Advised Indophil Advised Advised Energy Advised Brandrill Advised Summit Advised Tethyan on Metals NL on on $545m Centaurus Metals on its $86m Limited on its Resources on its its $220m $178m takeover recommended Resources on its proportional takeover $45m takeover A$1.2bn takeover competing takeover offer by Mineral offer from Zijin $20m merger offer by China offer by Ausdrill by Paladin Energy. offer by Crosby and Resources with Glengarry Guangdong Nuclear Limited. Antogafasta/Barrick. Limited. Resources. Power Group. Strategic Advisory, JointJoint Ventures and Capital Markets Strategic Advisory, Ventures and Capital Markets 2010 2010 2009 2008 2009/08 2008 2008 Advised BHP Introduced Advised BHP Advised Advised Iluka on its Advised Advised Iluka Billiton on its Denham Capital to Billiton on the Bannerman $114m Murchison Metals Resources on its US$116bn iron Trans Tasman disposal of the Resources on its institutional on its joint venture $54m Narama coal ore production Resources resulting Yabulu Nickel financing with placement and with Mitsubishi. divestment to joint venture with in NZ iron sands refinery. Resource Capital $353m accelerated Xstrata. Rio Tinto. investment. Funds. right issue. Gresham Advisory Partners Limited A.B.N. 97 003 344 269 Level 17, 167 Macquarie Street, Level 10, 1 Collins Street, Level 3, 28 The Esplanade, Sydney NSW 2000 Melbourne VIC 3000 Perth WA 6000 Telephone: 61 2 9221 5133 Telephone: 61 3 9664 0300 Telephone: 61 8 9486 7077 Facsimile: 61 2 9221 6814 Facsimile: 61 3 9650 7722 Facsimile: 61 8 9486 7024 Website: www.gresham.com.auTerms and ConditionsInformation contained in this publicationThe opinions, advice, recommendations and other information contained in this publication, whether express or implied, are published or made by Gresham Advisory Partners Limited (ABN 88 093 611 413), Australian financial services license (247113), and by its officers and employees(collectively “Gresham Advisory Partners”) in good faith in relation to the facts known to it at the time of preparation.Gresham Advisory Partners has prepared this publication without consideration of the investment objectives, financial situation or particular needs of any individual investor, and you should not rely on the publication for the purpose of making a financial decision.To whom this information is providedThis publication is only made available to persons who are wholesale clients within the meaning of section 761G of the Corporations Act 2001. 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