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Gresham "Group 150" - November 2010

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Gresham Group 150 - November 2010

Gresham Group 150 - November 2010

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    Gresham "Group 150" - November 2010 Gresham "Group 150" - November 2010 Document Transcript

    • NOVEMBER 2010 Group 150 November 2010 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 November edition of ‘Group 150’, a ranking of the top 150 ASX listed resources companies (excluding oil and gas), by market capitalisation. The market value of the Group 150 at the end of September was $545 billion, up 7.6% from September and an incredible 56.9% increase from $360 billion since 30 June 2009. The entry point into the Group 150 for October was $103 million versus $95 million for September. The ASX/S&P 200 Resources Index rose 5.1% in the month, while the ASX All Ordinaries and ASX/S&P 200 Index increased 2.1% and 1.7% respectively. During October we witnessed a resurrection in resource sector M&A, with a special shine on copper. Activity involving the “bellwether metal” included Equinox’s offer for Citadel, Kingsgate’s offer for Laguna, Perilya’s offer for GlobeStar Mining and Kagara’s offer for Copper Strike, as well as Sandfire and LS-Nikko mutually agreeing to terminate the heads of agreement. While both primary and secondary copper supply remains constrained, we would not be surprised to see this level of M&A activity continue. In this edition of the Group 150 we provide an overview of the relative market rating of the ASX listed copper peers using Enterprise Value/lb of copper resource, adjusted for the cost of near term “committed” development expenditure. Market fundamentals remain strong with China currently consuming ~40% of the world’s copper production while only holding ~6% of the worlds reserves domestically which is likely to support prices at current, if not higher levels. Copper finished the month at US$8,225/t, up 26% from US$6,515 at 30 June 2010. At these price levels, any sound operating mine even a 4th quartile producer should be generating reasonable levels of cashflow. While the MRRT remains a potential impost for the domestic resources sector, we have witnessed a resurgence of risk capital returning to the sector with numerous miners having executed successful capital raisings in the past 2 months. West African gold and companies with offshore coal projects have been the major beneficiaries of recent equity raisings. During October both Paladin and Western Areas refinanced corporate bonds to extend the debt maturity profiles. The average market value of domestic focussed companies since the proposed MRRT was announced has increased 55.5% compared to international focussed peers increasing by 74.1%. Global diversified companies have increased in value by nearly 100% during the same period. Gresham Advisory Partners Limited Gresham Advisory Partners is a leading Australian mergers and acquisitions/corporate advisory Edition 8 business and one of Australia’s largest and highest ranking independent corporate advisors. 1
    • Group 150 Top 150 ASX LiSTed reSource compAnieS - ocTober By Market Capitalisation Mkt Cap (A$m) % Mkt Cap (A$m) % Oct Sep Company 31-Oct-10 30-Sep-10 Change Oct Sep Company 31-Oct-10 30-Sep-10 Change 1 1 BHP Billiton Ltd. (ASX:BHP) $233,318.4 $216,565.4 7.7% 51 43 Murchison Metals Limited (ASX:MMX) $675.6 $722.7 (6.5%) 2 2 Rio Tinto Ltd. (ASX:RIO) $162,227.9 $150,608.4 7.7% 52 50 Summit Resources Ltd. (ASX:SMM) $642.0 $571.2 12.4% 3 3 Newcrest Mining Ltd. (ASX:NCM) $30,550.0 $30,327.2 0.7% 53 52 Resolute Mining Ltd. (ASX:RSG) $589.1 $540.2 9.1% 4 4 Fortescue Metals Group Ltd. (ASX:FMG) $19,447.2 $16,207.5 20.0% 54 55 Gujarat NRE Coking Coal Limited (ASX:GNM) $578.7 $538.3 7.5% 5 5 Coal & Allied Industries Ltd. (ASX:CNA) $9,697.5 $9,027.3 7.4% 55 57 Brockman Resources Limited (ASX:BRM) $576.4 $526.7 9.4% 6 7 Alumina Ltd. (ASX:AWC) $4,953.5 $4,416.7 12.2% 56 63 Kagara Ltd (ASX:KZL) $537.9 $460.1 16.9% 7 6 OZ Minerals Limited (ASX:OZL) $4,927.4 $4,541.1 8.5% 57 67 Cockatoo Coal Limited (ASX:COK) $528.6 $412.5 28.1% 8 8 New Hope Corp. Ltd. (ASX:NHC) $4,076.4 $4,192.7 (2.8%) 58 56 Bougainville Copper Ltd. (ASX:BOC) $521.4 $533.4 (2.2%) 9 9 Equinox Minerals Ltd. (ASX:EQN) $3,949.6 $4,105.3 (3.8%) 59 58 Northern Iron Limited (ASX:NFE) $517.5 $526.0 (1.6%) 10 11 MacArthur Coal Ltd. (ASX:MCC) $3,599.7 $3,430.8 4.9% 60 74 Coalspur Mines Limited (ASX:CPL) $504.7 $350.7 43.9% 11 10 Andean Resources Ltd. (ASX:AND) $3,477.2 $3,444.3 1.0% 61 61 Giralia Resources NL (ASX:GIR) $495.4 $486.4 1.9% 12 12 Whitehaven Coal Limited (ASX:WHC) $3,435.8 $3,040.9 13.0% 62 51 Panoramic Resources Ltd. (ASX:PAN) $484.1 $555.5 (12.9%) 13 15 Paladin Energy, Ltd. (ASX:PDN) $2,945.4 $2,579.1 14.2% 63 68 Indophil Resources NL (ASX:IRN) $476.2 $393.8 20.9% 14 17 Iluka Resources Ltd. (ASX:ILU) $2,807.4 $2,502.9 12.2% 64 62 Straits Resources Ltd. (ASX:SRL) $476.0 $472.1 0.8% 15 13 Aquila Resources Ltd. (ASX:AQA) $2,786.6 $2,647.5 5.3% 65 60 Allied Gold Ltd. (ASX:ALD) $473.2 $509.7 (7.2%) 16 14 Aquarius Platinum Ltd. (ASX:AQP) $2,719.2 $2,594.1 4.8% 66 59 Ampella Mining Limited (ASX:AMX) $456.0 $517.4 (11.9%) 17 18 Riversdale Mining Ltd. (ASX:RIV) $2,530.4 $2,466.2 2.6% 67 80 Bandanna Energy Limited (ASX:BND) $451.2 $295.8 52.5% 18 16 Energy Resources of Australia Ltd. (ASX:ERA) $2,481.5 $2,536.8 (2.2%) 68 64 Sphere Minerals Limited (ASX:SPH) $426.7 $440.4 (3.1%) 19 19 Centennial Coal Co. Ltd. (ASX:CEY) $2,434.0 $2,437.9 (0.2%) 69 65 Silver Lake Resources Limited (ASX:SLR) $414.7 $427.3 (2.9%) 20 20 Lynas Corp. Ltd. (ASX:LYC) $2,427.5 $2,261.8 7.3% 70 76 Arafura Resources Limited (ASX:ARU) $404.0 $328.4 23.0% 21 21 PanAust Limited (ASX:PNA) $2,201.0 $1,920.2 14.6% 71 71 Metals X Limited (ASX:MLX) $389.2 $375.6 3.6% 22 22 Mount Gibson Iron Ltd. (ASX:MGX) $2,186.8 $1,889.2 15.8% 72 73 Gryphon Minerals Ltd. (ASX:GRY) $389.1 $362.1 7.5% 23 24 Extract Resources Ltd. (ASX:EXT) $1,861.3 $1,486.6 25.2% 73 66 Integra Mining Ltd. (ASX:IGR) $385.6 $415.8 (7.3%) 24 23 Gloucester Coal Ltd. (ASX:GCL) $1,481.7 $1,755.6 (15.6%) 74 72 Aditya Birla Minerals Limited (ASX:ABY) $380.7 $365.1 4.3% 25 25 Atlas Iron Limited (ASX:AGO) $1,355.6 $1,252.8 8.2% 75 75 NKWE Platinum Ltd. (ASX:NKP) $358.0 $345.5 3.6% 26 28 Ivanhoe Australia Limited (ASX:IVA) $1,329.6 $1,190.9 11.6% 76 69 Mincor Resources NL (ASX:MCR) $357.1 $383.2 (6.8%) 27 26 Zimplats Holdings Ltd. (ASX:ZIM) $1,318.6 $1,237.8 6.5% 77 70 Discovery Metals Ltd. (ASX:DML) $354.8 $380.5 (6.8%) 28 27 Perseus Mining Ltd. (ASX:PRU) $1,259.7 $1,221.8 3.1% 78 82 CuDeco Ltd. (ASX:CDU) $347.5 $274.6 26.5% 29 30 Aston Resources Limited (ASX:AZT) $1,254.0 $1,167.4 7.4% 79 90 Beadell Resources Ltd (ASX:BDR) $342.1 $236.3 44.8% 30 32 White Energy Company Limited (ASX:WEC) $1,167.4 $1,108.7 5.3% 80 79 Rex Minerals Limited. (ASX:RXM) $330.5 $302.6 9.2% 31 34 Citadel Resource Group Limited (ASX:CGG) $1,148.3 $935.1 22.8% 81 99 Metminco Limited. (ASX:MNC) $326.3 $204.6 59.5% 32 31 Western Areas NL (ASX:WSA) $1,058.4 $1,117.8 (5.3%) 82 77 Catalpa Resources Limited (ASX:CAH) $323.9 $327.1 (1.0%) 33 37 Sandfire Resources (ASX:SFR) $1,055.2 $911.3 15.8% 83 87 Jabiru Metals Limited (ASX:JML) $309.1 $248.4 24.4% 34 36 Medusa Mining Limited (ASX:MML) $1,044.8 $917.3 13.9% 84 88 Dominion Mining Limited (ASX:DOM) $308.5 $247.4 24.7% 35 29 Kingsgate Consolidated Limited (ASX:KCN) $1,013.9 $1,172.6 (13.5%) 85 78 Saracen Mineral Holdings Limited (ASX:SAR) $300.2 $307.5 (2.4%) 36 35 CGA Mining Limited (ASX:CGX) $975.9 $929.3 5.0% 86 84 Moly Mines Ltd. (ASX:MOL) $297.0 $271.5 9.4% 37 38 Avoca Resources Ltd. (ASX:AVO) $952.5 $907.1 5.0% 87 81 Troy Resources NL (ASX:TRY) $293.0 $290.4 0.9% 38 41 Gindalbie Metals Ltd. (ASX:GBG) $896.8 $777.8 15.3% 88 91 Perilya Ltd. (ASX:PEM) $283.5 $236.3 20.0% 39 33 Minara Resources Ltd. (ASX:MRE) $887.7 $946.1 (6.2%) 89 83 Galaxy Resources (ASX:GXY) $279.2 $274.4 1.7% 40 39 OceanaGold Corporation (ASX:OGC) $867.1 $858.3 1.0% 90 95 Highlands Pacific Limited (ASX:HIG) $277.4 $225.4 23.1% 41 42 ST Barbara Ltd. (ASX:SBM) $810.8 $761.7 6.4% 91 104 Conquest Mining Limited (ASX:CQT) $275.8 $186.1 48.2% 42 40 OM Holdings Limited (ASX:OMH) $809.2 $804.3 0.6% 92 86 Adamus Resources Ltd. (ASX:ADU) $272.9 $264.2 3.3% 43 47 Independence Gold NL (ASX:IGO) $798.4 $677.2 17.9% 93 85 Kingsrose Mining Limited (ASX:KRM) $270.2 $269.3 0.3% 44 46 Sundance Resources Ltd. (ASX:SDL) $785.9 $677.5 16.0% 94 93 Gold One International Limited (ASX:GDO) $270.1 $233.8 15.5% 45 45 Grange Resources Limited (ASX:GRR) $783.4 $708.5 10.6% 95 92 Cape Lambert Resources Limited (ASX:CFE) $256.6 $234.7 9.3% 46 44 Mirabela Nickel Ltd. (ASX:MBN) $776.7 $722.0 7.6% 96 102 Deep Yellow Ltd. (ASX:DYL) $253.3 $197.0 28.6% 47 54 Mantra Resources Limited (ASX:MRU) $755.2 $545.7 38.4% 97 96 Iron Ore Holdings Limited (ASX:IOH) $232.9 $213.9 8.9% 48 53 Intrepid Mines Limited (ASX:IAU) $715.9 $548.3 30.6% 98 103 Orocobre Limited (ASX:ORE) $221.6 $186.7 18.7% 49 48 Mineral Deposits Ltd. (ASX:MDL) $698.0 $633.7 10.1% 99 100 Berkeley Resources Ltd. (ASX:BKY) $220.2 $202.9 8.5% 50 49 Regis Resources Limited (ASX:RRL) $678.2 $623.1 8.8% 100 98 Tanami Gold NL (ASX:TAM) $219.2 $211.4 3.7% Includes ASX Resource companies excluding oil and gas 2
    • NOVEMBER 2010 Mkt Cap (A$m) % Mkt Cap (A$m) % Oct Sep Company 31-Oct-10 30-Sep-10 Change Oct Sep Company 31-Oct-10 30-Sep-10 Change 101 89 Flinders Mines Limited. (ASX:FMS) $218.4 $245.7 (11.1%) 126 112 Golden West Resources Limited (ASX:GWR) $140.2 $156.4 (10.4%) 102 105 Tiger Resources Ltd. (ASX:TGS) $217.7 $181.8 19.7% 127 137 Bendigo Mining Ltd. (ASX:BDG) $140.2 $107.0 31.0% 103 97 Platinum Australia Limited (ASX:PLA) $211.9 $213.6 (0.8%) 128 123 Norton Gold Fields Limited (ASX:NGF) $137.1 $134.3 2.1% 104 108 Red 5 Ltd. (ASX:RED) $210.4 $161.3 30.4% 129 127 Red Hill Iron Ltd (ASX:RHI) $135.7 $126.0 7.7% 105 94 Ramelius Resources Ltd. (ASX:RMS) $209.8 $228.8 (8.3%) 130 191 Aspire Mining Limited (ASX:AKM) $134.1 $59.6 125.0% 106 129 Northern Energy Corporation Ltd (ASX:NEC) $208.0 $122.0 70.5% 131 122 Astron Ltd. (ASX:ATR) $132.8 $137.3 (3.3%) 107 124 Marengo Mining Limited (ASX:MGO) $199.5 $129.3 54.3% 132 125 Robust Resources Limited (ASX:ROL) $131.9 $125.7 4.9% 108 101 Sylvania Resources Ltd. (ASX:SLV) $199.4 $208.2 (4.2%) 133 159 Elemental Minerals Limited (ASX:ELM) $128.1 $83.6 53.2% 109 120 Guildford Coal Limited (ASX:GUF) $198.0 $136.8 44.7% 134 142 Stanmore Coal Limited (ASX:SMR) $127.5 $102.5 24.4% 110 111 BC Iron Limited (ASX:BCI) $196.3 $158.2 24.1% 135 138 Noble Mineral Resources Ltd. (ASX:NMG) $123.1 $106.3 15.8% 111 119 Greenland Minerals and Energy Ltd (ASX:GGG) $194.1 $137.7 41.0% 136 157 Nyota Minerals Limited (ASX:NYO) $122.3 $125.1 (2.2%) 112 106 Alkane Resources Limited (ASX:ALK) $193.0 $173.1 11.5% 137 139 Toro Energy Ltd (ASX:TOE) $120.6 $106.1 13.7% 113 117 Hunnu Coal Limited (ASX:HUN) $185.1 $143.4 29.1% 138 - Macquarie Harbour Mining Ltd (ASX:MHM) $119.6 $50.8 135.4% 114 107 Exco Resources Ltd. (ASX:EXS) $181.9 $171.5 6.1% 139 133 Centrex Metals Limited (ASX:CXM) $119.5 $116.3 2.8% 115 113 Nucoal Resources NL (ASX:NCR) $181.8 $152.5 19.2% 140 130 Dragon Mining Limited (ASX:DRA) $118.0 $121.7 (3.0%) 116 144 Continental Coal Limited (ASX:CCC) $177.1 $137.6 28.7% 141 135 IMX Resources Ltd. (ASX:IXR) $117.1 $113.2 3.4% 117 - Atlantic Ltd (ASX:ATI) $168.8 $52.2 223.4% 142 149 Sihayo Gold Limited (ASX:SIH) $116.1 $97.5 19.1% 118 118 Azumah Resources Ltd (ASX:AZM) $161.3 $140.3 15.0% 143 126 Magma Metals Ltd. (ASX:MMW) $113.5 $125.2 (9.3%) 119 115 Mungana Goldmines Ltd (ASX:MUX) $153.1 $150.7 1.6% 144 134 WPG Resources Ltd (ASX:WPG) $112.0 $114.4 (2.1%) 120 109 FerrAus Ltd. (ASX:FRS) $152.2 $161.1 (5.5%) 145 174 Chesser Resources Limited (ASX:CHZ) $108.3 $70.4 53.8% 121 121 Chalice Gold Mines Ltd. (ASX:CHN) $151.0 $135.2 11.7% 146 164 Kentor Gold Limited (ASX:KGL) $106.7 $80.6 32.4% 122 147 Jupiter Mines Ltd. (ASX:JMS) $149.5 $98.0 52.6% 147 132 Resource Generation Limited (ASX:RES) $106.0 $116.9 (9.3%) 123 116 Alliance Resources Ltd. (ASX:AGS) $146.7 $146.7 0.0% 148 143 Morning Star Gold NL (ASX:MCO) $104.5 $101.9 2.6% 124 110 Focus Minerals Limited (ASX:FML) $146.0 $160.3 (8.9%) 149 128 Talisman Mining Ltd (ASX:TLM) $103.4 $123.1 (16.0%) 125 114 Hillgrove Resources Ltd. (ASX:HGO) $144.8 $152.1 (4.8%) 150 140 Thundelarra Exploration Ltd. (ASX:THX) $103.2 $105.7 (2.4%) Source: Capital IQ new enTrAnTS - ocTober eXiTS - ocTober 117 Atlantic Ltd (ASX:ATI) Reed Resources Ltd. (ASX:RDR) 130 Aspire Mining Limited (ASX:AKM) Australasian Resources Ltd (ASX:ARH) 133 Elemental Minerals Limited (ASX:ELM) Crescent Gold Limited (ASX:CRE) 136 Nyota Minerals Limited (ASX:NYO) Citigold Corporation Limited (ASX:CTO) 138 Macquarie Harbour Mining Limited (ASX:MHM) Bathurst Resources Ltd (ASX:BTU) 145 Chesser Resources Limited (ASX:CHZ) Terramin Australia Ltd. (ASX:TZN) 146 Kentor Gold Limited (ASX:KGL) Kangaroo Resources Limited (ASX:KRL) Based on market capitalisation as at 31 October 2010 vs 30 September 2010 Group 150 LeAderS And LAGGerS - mArkeT cApiTALiSATion performAnce - ocTober Leaders Laggers * Included placement, acquisition and/or material option conversion during month 3
    • Group 150 Group 150 mArkeT cApiTALiSATion ASX indeX performAnce - ocTober Group 150 SecTor mArkeT cApiTALiSATion - ocTober Market Capitalisation (A$b) merGer & AcquiSiTionS - Announced in ocTober Percent Premium - Premium - Date Value Consideration Target Acquirer Sought 1 Day Prior 1 Month Prior Announced (A$m) Offered (%) (%) (%) 25-Oct-2010 Laguna Resources NL (ASX:LRC) Kingsgate Consolidated Ltd (ASX:KCN) 22.4 100 33.7 82.3 Equity 25-Oct-2010 Citadel Resource Group Ltd (ASX:CGG) Equinox Minerals Ltd. (ASX:EQN) 1,204.0 100 19.7 32.1 Combinations 20-Oct-2010 Dominion Mining Limited (ASX:DOM) Kingsgate Consolidated Ltd (ASX:KCN) 370.2 100 33.0 44.6 Equity 12-Oct-2010 Copper Strike Ltd. (ASX:CSE) Kagara Ltd (ASX:KZL) 14.2 99 15.8 37.5 Cash 8-Oct-2010 Northern Energy Corp Ltd (ASX:NEC) Arkdale Pty. Ltd. 183.2 95 34.5 70.5 Cash Source: Capital IQ Announced Australian Resources (excluding oil and gas) Mergers and Acquisitions >A$10m 4
    • NOVEMBER 2010 copper – A beLLweTher meTAL During October we witnessed a resurrection in resource sector M&A, with a particular special shine on copper. Activity in the sector included Equinox’s offer for Citadel, Kingsgate’s offer for Laguna and Kagara’s offer for Copper Strike and Perilya’s offer for GlobeStar Mining, as well as Sandfire and LS-Nikko mutually agreeing to terminate the heads of agreement. While both primary and secondary copper supply remains constrained, we would not be surprised to see this level of M&A activity continue. Copper finished the month at US$8,225/t, up 26% from US$6,515 at 30 June 2010. Global copper market fundamentals remain strong with China currently consuming ~40% of the world’s copper production while only holding ~6% of the worlds reserves domestically. Market commentators consider of the base metals, copper has the best fundamentals, with the markets forecast to move to a deficit in CY2011 and hence support the copper price for the 1 - 2 years. The charts below provide an overview of the copper market and relative market rating of the ASX listed copper peers. 20 Year Relative Movements & Copper Forward Curve 450 1,000 400 900 Forward Curve 800 350 700 Stockpiles (tonnes '000) 300 Copper Price (USc/lb) 600 250 500 200 400 150 300 100 200 50 100 0 0 Sep-1990 Jan-1994 May-1997 Sep-2000 Jan-2004 May-2007 Sep-2010 Jan-2014 May-2017 Sep-2020 Copper (A) LME stockpiles Copper LME (Nominal) Foward Curve (USc/ln) Cu Resource (billion lb) EV / lb of Cu Resource (A$/lb) 30 19 1.00 15 0.90 12 0.80 0.70 Additional bar represents Cu Resource (billion lb) 0.60 cost of near term “committed” 9 development expenditure EV A$/lb (Cu) 0.50 6 0.40 0.30 3 0.20 0.10 0 0.00 Havilah Hillgrove Marengo Straits Exco Discovery Tiger Res OZ Blackthorn Rex Aditya Birla Cudeco QLD Mining Avalon Citadel Sandfire Redbank PanAust Anvil Copper Strike Altona Marengo Tiger Res Exco Indophil Rex Avalon Havilah Cudeco Hillgrove Sandfire Blackthorn Citadel PanAust Straits Redbank Discovery OZ Anvil Aditya Birla Altona QLD Mining Indophil Copper Strike Equinox Venturex Venturex Equinox Source: Gresham, Company Reports Source: IRESS, Company reports. Trading as at 1 November 2010. Net Debt (for Enterprise Value calculation) taken as at 30 June 2010 with the exception of Aditya Birla Minerals (31 March 2010 ) and Hillgrove (31 July 2010) 5
    • Group 150 Group 150 - “mrrT impAcT” - bASed on projecT/S LocATion While the MRRT remains a potential impost for the domestic resources sector, we have witnessed a resurgence of risk capital returning to the resources sector. Numerous miners have executed successful capital raisings in the past 2 months as the risk appetite of investors has improved. West African gold and companies with offshore coal projects have been the major beneficiaries of recent equity raisings. During October both Paladin and Western Areas refinanced corporate bonds to extend the debt maturity profiles. The average market value of domestic focussed companies since the proposed MRRT was announced has increased 55.5% compared to international focussed peers increasing by 74.1%. Global diversified companies have increased in value by nearly 100% during the same period. Market Capitalisation - Performance Since Proposed MRRT Announced Overseas/ Monthly Performance Overseas Domestic Total Domestic End of October Spread of "Group 150" by Project/s Location 53 77 18 148 - Simple Average Return 74.1% 55.5% 99.5% End of September Spread of "Group 150" by Project/s Location 51 81 16 148 - Simple Average Return 49.1% 42.3% 27.3% End of August Spread of "Group 150" by Project/s Location 47 85 16 148 - Simple Average Return 14.1% 20.0% 13.7% End of July Spread of "Group 150" by Project/s Location 49 84 16 149 - Simple Average Return 7.6% 15.4% 14.3% Only 148 companies in October, September and August data set as Astron Resources and Guildford Coal were new IPO’s during the period Only 149 companies in July data set as Guildford Coal was new IPO’s during the period 6
    • NOVEMBER 2010 bASe meTALS - SecTor performAnce Share Price Performance - October 2010 Copper Nickel Zinc Share Price Performance Share Price Performance - Since 30 June 2010 Share Price Performance Share Price Performance - Since 1 Jan 2010 Share Price Performance 7
    • Group 150 coAL - SecTor performAnce Share Price Performance - October 2010 Share Price Performance Share Price Performance - Since 30 June 2010 Share Price Performance Share Price Performance - Since 1 Jan 2010 Share Price Performance 8
    • NOVEMBER 2010 diverSified - SecTor performAnce induSTriAL minerALS - SecTor performAnce Share Price Performance - October 2010 Share Price Performance Share Price Performance Share Price Performance - Since 30 June 2010 Share Price Performance Share Price Performance Share Price Performance - Since 1 Jan 2010 Share Price Performance Share Price Performance 9
    • Group 150 GoLd - SecTor performAnce Share Price Performance - October 2010 Share Price Performance Share Price Performance - Since 30 June 2010 Share Price Performance Share Price Performance - Since 1 Jan 2010 Share Price Performance 10
    • NOVEMBER 2010 iron ore - SecTor performAnce Share Price Performance - October 2010 Share Price Performance Share Price Performance - Since 30 June 2010 Share Price Performance Share Price Performance - Since 1 Jan 2010 Share Price Performance 11
    • Group 150 urAnium - SecTor performAnce Share Price Performance - October 2010 Share Price Performance Share Price Performance - Since 30 June 2010 Share Price Performance Share Price Performance - Since 1 Jan 2010 Share Price Performance 12
    • NOVEMBER 2010 conSenSuS commodiTy price forecASTS - ocTober Gold (US$/oz) Silver (US$/OZ) $2,500 $30 $23.84 $2,000 $25 $20.13 $20.00 $19.81 $18.32 $1,340 $1,313 $1,250 $20 $1,500 $1,150 $1,084 $15 $1,000 $10 $500 $5 $0 $0 Spot 2011 2012 2013 2014 Spot 2011 2012 2013 2014 Copper (US$/lb) Nickel (US$/lb) $5.00 $3.91 $16.00 $3.78 $3.67 $3.65 $3.80 $10.48 $10.40 $11.02 $4.00 $12.00 $9.60 $9.25 $3.00 $8.00 $2.00 $1.00 $4.00 $0.00 $0.00 Spot 2011 2012 2013 2014 Spot 2011 2012 2013 2014 Zinc (US$/lb) Lead (US$/lb) $1.50 $1.19 $2.00 $1.13 $1.07 $1.10 $1.02 $1.50 $1.14 $1.07 $1.17 $1.00 $0.98 $1.00 $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) $15.00 $11.91 $100 $12.50 $9.69 $62.00 $60.00 $60.00 $8.70 $75 $52.50 $10.00 $6.80 $7.50 $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 $0.97 $200 $0.95 $0.87 $0.85 $0.80 $1.00 $150 $105.00 $95.00 $0.75 $81.50 $84.00 $93.00 $100 $0.50 $0.25 $50 $0.00 $0 Spot 2011 2012 2013 2014 Spot 2011 2012 2013 2014 Source: Bloomberg Consensus Estimates - Median / High / Low 13
    • 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. 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