Gresham "Group 150" - October 2011
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Gresham "Group 150" - October 2011

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ASX Resources Gresham Group 150 - October 2011

ASX Resources Gresham Group 150 - October 2011

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    Gresham "Group 150" - October 2011 Gresham "Group 150" - October 2011 Document Transcript

    • OCTOBER 2011 Gresham Group 150 October 2011 Darren Martin Gresham Advisory Partners dmartin@gresham.com.au +61 8 9486 7077 +61 412 144 719ASX RESOURCES - GROUP 150We are pleased to present the October edition of ‘Gresham Group 150’, a ranking of the top 150 ASX listed resourcescompanies (excluding oil and gas), by market capitalisation.September felt like another month at “ASX Casino” with only 18 companies recording a positive increment on their marketvalue. The Gresham Group 150 lost $72.5 billion or 14.2% during the month, with the cumulative market value fallingfrom $509.8 billion to $437.3 billion, a level not seen while we have been compiling the Group 150. At the end of the firstweek of October, approximately $33 billion had been recaptured with the cumulative market value climbing back to $470billion.The entry threshold for September’s list fell dramatically to $96.6 million, down from $111.2 million last month. The ASX/S&P 200 Resources Index decreased 13.4%, while the ASX All Ordinaries and ASX/S&P 200 Index decreased 6.9% and 6.7%respectively.Given the turmoil in the market in recent months, we reviewed the thesis from the March 2011 edition, “cash is king anddebt is bad”. Utilising the recent 30 June balance sheets, we updated the market gearing levels for the Gresham Group 150to identify any stretched balance sheets or dramatic changes in gearing levels.The updated study found that consistent with previous findings, approximately 80% of companies still remain in a netcash position and the weighted average gearing level has decreased marginally to circa 1.1% (versus 2.6% at March 2011),when measured on a net cash to enterprise value basis.During the relevant period the market value of the Gresham Group 150 has declined 28% from $605.4 billion at end ofFebruary to $437.3 billion at 30 September 2011 and cash reserves have decreased by $9.2 billion from $42.7 billion to$33.5 billion while total debt has increased $4.8 billion from $40.9 billion to $45.7 billion.Returns at “ASX Casino” in October will be interesting. Having witnessed a couple of spins of the wheel from the US FederalReserve in response to rapidly deteriorating economic and financial conditions, it now appears the leaders of Germanyand France are going to have a spin and unveil a comprehensive package to recapitalise the European banks by the endof October. Early indications (given market commentary around a possible offer for Extract) suggest the uranium sectormay hit the Jackpot!Gresham Advisory Partners Limited Gresham Advisory Partners is a leading Australian mergers and acquisitions/corporate advisoryEdition 19 business and one of Australia’s largest and highest ranking independent corporate advisors. 1
    • Group 150 Top 150 asX LisTed resource companies - sepTember By Market Capitalisation Mkt Cap (A$m) % Mkt Cap (A$m) % Sep Aug Company 30-Sep-11 31-Aug-11 Change Sep Aug Company 30-Sep-11 31-Aug-11 Change 1 1 BHP Billiton Ltd. (ASX:BHP) $186,464.7 $211,605.9 (11.9%) 51 60 Gold One International Limited (ASX:GDO) $432.8 $428.8 0.9% 2 2 Rio Tinto Ltd. (ASX:RIO) $117,238.1 $138,406.7 (15.3%) 52 77 Hunnu Coal Limited (ASX:HUN) $418.0 $318.7 31.2% 3 3 Newcrest Mining Ltd. (ASX:NCM) $26,051.2 $30,791.3 (15.4%) 53 57 Ramelius Resources Ltd. (ASX:RMS) $413.2 $445.1 (7.2%) 4 4 Fortescue Metals Group Ltd. (ASX:FMG) $13,763.0 $18,836.7 (26.9%) 54 54 Guildford Coal Limited (ASX:GUF) $411.3 $480.1 (14.3%) 5 5 Coal & Allied Industries Ltd. (ASX:CNA) $10,675.0 $10,667.2 0.1% 55 55 Integra Mining Ltd. (ASX:IGR) $396.6 $472.4 (16.0%) 6 6 Iluka Resources Ltd. (ASX:ILU) $5,216.8 $6,830.7 (23.6%) 56 52 Gryphon Minerals Ltd. (ASX:GRY) $390.2 $517.4 (24.6%) 7 7 MacArthur Coal Ltd. (ASX:MCC) $4,809.3 $4,800.2 0.2% 57 91 Mineral Deposits Ltd. (ASX:MDL) $389.5 $362.9 7.4% 8 9 New Hope Corp. Ltd. (ASX:NHC) $4,474.9 $4,217.6 6.1% 58 62 Ampella Mining Limited (ASX:AMX) $389.5 $406.9 (4.3%) 9 8 Alumina Ltd. (ASX:AWC) $3,611.5 $4,294.7 (15.9%) 59 58 Cockatoo Coal Limited (ASX:COK) $386.2 $431.9 (10.6%) 10 10 OZ Minerals Limited (ASX:OZL) $2,983.1 $3,785.1 (21.2%) 60 73 Saracen Mineral Holdings Limited (ASX:SAR) $384.9 $356.8 7.9% 11 13 Whitehaven Coal Limited (ASX:WHC) $2,635.5 $2,961.9 (11.0%) 61 61 Summit Resources Ltd. (ASX:SMM) $381.5 $413.1 (7.7%) 12 11 Atlas Iron Limited (ASX:AGO) $2,526.7 $3,217.7 (21.5%) 62 66 Troy Resources NL (ASX:TRY) $362.6 $393.4 (7.8%) 13 15 Aston Resources Limited (ASX:AZT) $2,057.5 $2,384.8 (13.7%) 63 70 Bougainville Copper Ltd. (ASX:BOC) $354.9 $363.0 (2.2%) 14 17 Extract Resources Ltd. (ASX:EXT) $1,916.3 $2,024.3 (5.3%) 64 50 Bandanna Energy Limited (ASX:BND) $347.8 $521.7 (33.3%) 15 12 Lynas Corporation Limited (ASX:LYC) $1,868.1 $3,102.1 (39.8%) 65 67 Kingsrose Mining Limited (ASX:KRM) $327.3 $387.0 (15.4%) 16 14 Aquila Resources Ltd. (ASX:AQA) $1,864.4 $2,396.0 (22.2%) 66 69 Indophil Resources NL (ASX:IRN) $318.5 $363.3 (12.3%) 17 16 PanAust Limited (ASX:PNA) $1,508.4 $2,161.7 (30.2%) 67 80 WPG Resources Ltd (ASX:WPG) $316.9 $299.8 5.7% 18 18 Mount Gibson Iron Ltd. (ASX:MGX) $1,450.6 $1,802.5 (19.5%) 68 51 Alkane Resources Limited (ASX:ALK) $306.7 $517.9 (40.8%) 19 19 Aquarius Platinum Ltd. (ASX:AQP) $1,388.0 $1,796.0 (22.7%) 69 75 Metals X Limited (ASX:MLX) $301.6 $323.8 (6.8%) 20 20 Gloucester Coal Ltd. (ASX:GCL) $1,369.6 $1,795.7 (23.7%) 70 63 OM Holdings Limited (ASX:OMH) $298.7 $406.7 (26.5%) 21 22 Perseus Mining Ltd. (ASX:PRU) $1,301.5 $1,532.4 (15.1%) 71 81 Adamus Resources Ltd. (ASX:ADU) $292.9 $292.9 0.0% 22 23 Medusa Mining Limited (ASX:MML) $1,285.9 $1,515.3 (15.1%) 72 74 Noble Mineral Resources Ltd. (ASX:NMG) $292.3 $324.5 (9.9%) 23 24 Sundance Resources Ltd. (ASX:SDL) $1,245.4 $1,371.6 (9.2%) 73 82 Tiger Resources Ltd. (ASX:TGS) $291.9 $291.9 0.0% 24 25 Regis Resources Limited (ASX:RRL) $1,132.4 $1,269.5 (10.8%) 74 59 Kagara Ltd (ASX:KZL) $287.2 $430.8 (33.3%) 25 27 Zimplats Holdings Ltd. (ASX:ZIM) $1,027.9 $1,184.0 (13.2%) 75 65 FerrAus Ltd. (ASX:FRS) $286.2 $394.6 (27.5%) 26 31 Minara Resources Ltd. (ASX:MRE) $1,023.2 $1,023.2 0.0% 76 86 Catalpa Resources Limited (ASX:CAH) $277.3 $276.2 0.4% 27 26 Kingsgate Consolidated Limited (ASX:KCN) $998.3 $1,235.1 (19.2%) 77 76 Equatorial Resources Limited (ASX:EQX) $275.8 $322.2 (14.4%) 28 21 Paladin Energy, Ltd. (ASX:PDN) $944.4 $1,632.4 (42.1%) 78 68 Aditya Birla Minerals Limited (ASX:ABY) $272.6 $380.7 (28.4%) 29 29 Sandfire Resources (ASX:SFR) $912.8 $1,101.9 (17.2%) 79 64 Brockman Resources Limited (ASX:BRM) $270.9 $404.9 (33.1%) 30 28 Independence Group NL (ASX:IGO) $876.6 $1,109.9 (21.0%) 80 87 Conquest Mining Limited (ASX:CQT) $265.4 $271.2 (2.2%) 31 33 CGA Mining Limited (ASX:CGX) $833.7 $870.4 (4.2%) 81 89 Tanami Gold NL (ASX:TAM) $263.6 $270.1 (2.4%) 32 32 Coalspur Mines Limited (ASX:CPL) $800.1 $988.5 (19.1%) 82 72 Metminco Limited. (ASX:MNC) $263.3 $358.3 (26.5%) 33 30 Western Areas NL (ASX:WSA) $776.5 $1,056.8 (26.5%) 83 71 Panoramic Resources Ltd. (ASX:PAN) $262.3 $361.4 (27.4%) 34 37 Resolute Mining Ltd. (ASX:RSG) $710.6 $760.2 (6.5%) 84 84 Focus Minerals Limited (ASX:FML) $261.9 $284.0 (7.8%) 35 39 ST Barbara Ltd. (ASX:SBM) $667.5 $674.0 (1.0%) 85 92 Northern Energy Corporation Ltd (ASX:NEC) $261.3 $261.3 0.0% 36 34 Mirabela Nickel Ltd. (ASX:MBN) $661.4 $816.4 (19.0%) 86 78 Perilya Ltd. (ASX:PEM) $246.9 $312.6 (21.0%) 37 44 Discovery Metals Ltd. (ASX:DML) $577.5 $605.4 (4.6%) 87 83 Aspire Mining Limited (ASX:AKM) $246.0 $286.5 (14.2%) 38 36 Energy Resources of Australia Ltd. (ASX:ERA) $557.0 $768.7 (27.5%) 88 79 Cape Lambert Resources Limited (ASX:CFE) $234.7 $305.9 (23.3%) 39 38 Gindalbie Metals Ltd. (ASX:GBG) $547.2 $722.1 (24.2%) 89 113 Nucoal Resources NL (ASX:NCR) $227.8 $181.1 25.8% 40 49 Kangaroo Resources Limited (ASX:KRL) $532.3 $532.3 0.0% 90 100 Flinders Mines Limited. (ASX:FMS) $227.6 $227.6 0.0% 41 48 Sphere Minerals Limited (ASX:SPH) $529.5 $540.1 (2.0%) 91 90 Straits Resources Limited (ASX:SRQ) $227.4 $266.3 (14.6%) 42 40 Ivanhoe Australia Limited (ASX:IVA) $529.2 $665.8 (20.5%) 92 95 BC Iron Limited (ASX:BCI) $224.9 $246.7 (8.8%) 43 42 Jupiter Mines Ltd. (ASX:JMS) $501.5 $647.9 (22.6%) 93 102 Exco Resources Ltd. (ASX:EXS) $223.2 $224.0 (0.4%) 44 35 Intrepid Mines Limited (ASX:IAU) $485.8 $799.1 (39.2%) 94 93 Red 5 Ltd. (ASX:RED) $218.2 $256.7 (15.0%) 45 46 Beadell Resources Ltd (ASX:BDR) $477.0 $562.5 (15.2%) 95 94 Gujarat NRE Coking Coal Limited (ASX:GNM) $218.1 $247.7 (12.0%) 46 53 Northern Iron Limited (ASX:NFE) $470.5 $487.3 (3.4%) 96 98 Arafura Resources Limited (ASX:ARU) $209.7 $233.7 (10.2%) 47 43 White Energy Company Limited (ASX:WEC) $467.8 $629.0 (25.6%) 97 107 South Boulder Mines Ltd. (ASX:STB) $204.8 $203.9 0.5% 48 56 Silver Lake Resources Limited (ASX:SLR) $464.5 $465.1 (0.1%) 98 99 Greenland Minerals and Energy Ltd (ASX:GGG) $201.1 $231.9 (13.3%) 49 45 Grange Resources Limited (ASX:GRR) $461.4 $594.1 (22.3%) 99 97 Galaxy Resources (ASX:GXY) $195.6 $242.5 (19.3%) 50 41 Bathurst Resources Ltd (ASX:BTU) $437.0 $657.3 (33.5%) 100 101 Marengo Mining Limited (ASX:MGO) $195.5 $225.5 (13.3%)Includes ASX Resource companies excluding oil and gas 2
    • OCTOBER 2011 Mkt Cap (A$m) % Mkt Cap (A$m) % Sep Aug Company 30-Sep-11 31-Aug-11 Change Sep Aug Company 30-Sep-11 31-Aug-11 Change 101 85 Rex Minerals Limited. (ASX:RXM) $186.7 $280.4 (33.4%) 126 133 Crusader Resources Limited (ASX:CAS) $121.2 $138.2 (12.4%) 102 112 Astron Ltd. (ASX:ATR) $185.1 $186.6 (0.8%) 127 118 Orocobre Limited (ASX:ORE) $114.5 $171.3 (33.1%) 103 105 Hillgrove Resources Ltd. (ASX:HGO) $178.6 $210.3 (15.1%) 128 134 Alcyone Resources Ltd (ASX:AYN) $114.5 $138.2 (17.1%) 104 164 Base Resources Limited (ASX:BSE) $175.0 $95.1 84.0% 129 129 Altona Mining Limited (ASX:AOH) $114.1 $145.2 (21.4%) 105 108 Northern Star Resources Ltd. (ASX:NST) $174.5 $198.1 (11.9%) 130 144 Finders Resources Limited (ASX:FND) $111.8 $118.8 (5.9%) 106 106 Iron Ore Holdings Limited (ASX:IOH) $166.1 $205.9 (19.4%) 131 158 Papillon Resources Limited (ASX:PIR) $110.7 $101.4 9.2% 107 109 Atlantic Ltd (ASX:ATI) $165.7 $193.8 (14.5%) 132 127 YTC Resources Limited (ASX:YTC) $110.7 $146.7 (24.6%) 108 110 Kula Gold Limited (ASX:KGD) $163.3 $191.4 (14.7%) 133 124 NKWE Platinum Ltd. (ASX:NKP) $109.0 $152.5 (28.6%) 109 120 Norton Gold Fields Limited (ASX:NGF) $161.4 $160.6 0.5% 134 131 African Energy Resources Limited (ASX:AFR) $107.7 $142.0 (24.1%) 110 104 Cokal Limited (ASX:CKA) $158.8 $217.6 (27.0%) 135 128 Metrocoal Ltd. (ASX:MTE) $107.1 $146.7 (27.0%) 111 117 Ausgold Limited (ASX:AUC) $154.4 $172.7 (10.6%) 136 125 African Iron Limited (ASX:AKI) $105.4 $151.0 (30.2%) 112 103 Moly Mines Ltd. (ASX:MOL) $154.0 $219.4 (29.8%) 137 168 Ironbark Zinc Ltd. (ASX:IBG) $105.0 $92.1 14.0% 113 122 Blackgold International Hold. Ltd (ASX:BGG) $153.0 $157.5 (2.9%) 138 132 Cerro Resources NL (ASX:CJO) $104.8 $140.1 (25.2%) 114 135 Azimuth Resources Limited (ASX:AZH) $148.2 $136.4 8.6% 139 138 Reed Resources Ltd. (ASX:RDR) $103.2 $124.4 (17.0%) 115 115 Highlands Pacific Limited (ASX:HIG) $147.3 $178.4 (17.4%) 140 151 Rocklands Richfield Limited (ASX:RCI) $102.7 $109.9 (6.6%) 116 96 Carabella Resources Limited (ASX:CLR) $147.2 $245.4 (40.0%) 141 140 Peninsula Energy Limited (ASX:PEN) $102.5 $121.1 (15.3%) 117 88 Murchison Metals Limited (ASX:MMX) $146.5 $271.2 (46.0%) 142 137 Sylvania Resources Ltd. (ASX:SLP) $102.4 $128.0 (20.0%) 118 114 Deep Yellow Ltd. (ASX:DYL) $141.1 $180.6 (21.9%) 143 123 Resource Generation Limited (ASX:RES) $101.9 $154.7 (34.2%) 119 116 Mincor Resources NL (ASX:MCR) $136.4 $176.2 (22.6%) 144 152 Mungana Goldmines Ltd (ASX:MUX) $101.7 $109.5 (7.2%) 120 126 ABM Resources NL (ASX:ABU) $133.4 $146.7 (9.1%) 145 130 Azumah Resources Ltd (ASX:AZM) $101.5 $142.2 (28.6%) 121 121 Cobar Consolidated Resources Ltd (ASX:CCU) $129.4 $160.0 (19.1%) 146 136 Indo Mines Limited (ASX:IDO) $101.1 $128.7 (21.4%) 122 163 Australasian Resources Ltd (ASX:ARH) $128.5 $96.4 33.3% 147 153 Kentor Gold Limited (ASX:KGL) $99.8 $105.1 (5.0%) 123 141 Tribune Resources Limited (ASX:TBR) $125.8 $120.7 4.2% 148 139 Robust Resources Limited (ASX:ROL) $99.0 $122.3 (19.1%) 124 111 Gold Road Resources Limited (ASX:GOR) $125.2 $190.3 (34.2%) 149 159 Centrex Metals Limited (ASX:CXM) $98.8 $100.4 (1.6%) 125 119 Tigers Realm Coal Limited (ASX:TIG) $121.9 $163.8 (25.6%) 150 143 Dragon Mining Limited (ASX:DRA) $96.6 $119.5 (19.2%)Source: Capital IQnew enTranTs - sepTember eXiTs - sepTember104 Base Resources Limited (ASX:BSE) CuDeco Ltd. (ASX:CDU) - currently suspended122 Australasian Resources Ltd (ASX:ARH) Industrial Minerals Corporation Ltd. (ASX:IDM)131 Papillon Resources Limited (ASX:PIR) Northern Minerals Limited (ASX:NTU)137 Ironbark Zinc Ltd. (ASX:IBG) IMX Resources Ltd. (ASX:IXR)140 Rocklands Richfield Limited (ASX:RCI) Stanmore Coal Limited (ASX:SMR)144 Mungana Goldmines Ltd (ASX:MUX) Continental Coal Limited (ASX:CCC)147 Kentor Gold Limited (ASX:KGL) Iron Road Limited (ASX:IRD)149 Centrex Metals Limited (ASX:CXM) Resource and Investment NL (ASX:RNI)Based on market capitalisation as at 30 September vs 31 AugustGroup 150 Leaders and LaGGers - markeT capiTaLisaTion performance - sepTember Leaders Laggers * Included material placement, acquisition and/or option conversion during month 3
    • Group 150Group 150 markeT capiTaLisaTion -6.4% 437.3 +21.5% Market Valuation (A$b) - Group 150asX indeX performance - sepTember Group 150 mkT cap - by commodiTymerGer & acquisiTions - announced in sepTember Percent Premium - Premium - Date Value Consideration Target Acquirer Sought 1 Day Prior 1 Month Prior Announced (A$m) Offered (%) (%) (%) 29-Sep-2011 Anvil Mining Limited (TSX:AVM) Minmetals Resources Limited (SEHK:1208) 1,282.0 100 38.2 34.7 Cash Iron Ore Holdings Limited, Koodaideri South 27-Sep-2011 Hamersley Iron Pty Ltd 32.0 100 - - Cash Tenement 20-Sep-2011 Mbila Resources (Pty) Limited ZYL Limited (ASX:ZYL) 26.1 44 - - Combinations 12-Sep-2011 Hunnu Coal Limited (ASX:HUN) Banpu Minerals (Singapore) Pte. Ltd. 420.2 88 30.0 45.8 Cash 9-Sep-2011 Pinnacle Group Assets Limited Cape Lambert Resources Limited (ASX:CFE) 15.0 10 - - CombinationsSource: Capital IQAnnounced Australian Resources (excluding oil and gas) Mergers and Acquisitions >A$10m4
    • OCTOBER 2011capiTaL sTucTure - GearinG LeveLsChanging gearing levels in a falling marketIn the March 2011 edition, we reviewed the thesis “cash is king and debt is bad” based on the net cash position of the GreshamGroup 150 utilising market values at end of February adjusted for 31 December 2010 balance sheets.Given the uncertainty in the markets in recent months, the analysis has been updated to account for the net cash position at30 June 2011. During this time the market value of the Gresham Group 150 has declined 28% from $605.4 billion to $437.3billion at 30 September 2011 and cash reserves have decreased by $9.2 billion from $42.7 billion to $33.5 billion while total debthas increased $4.8 billion from $40.9 billion to $45.7 billion.The study found that approximately 80% of companies still remain in a net cash position, consistent with previous findings, butthe weighted average gearing level has decreased marginally to circa 1.1% (versus 2.6% at March 2011), when measured on anet cash to enterprise value basis.In a change from March, the companies with overseas focussed operations are in a stronger net cash position than peers withdomestic focussed operations – refer next page. Below is a summary of the gearing levels of the Gresham Group 150. 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 30 June 2011 5
    • Group 150 capiTaL sTucTure - GearinG LeveLs Net Debt /Enterprise Value Group 150 Mining Companies – by Market Capitalisation NET DEBT NET CASHSource: Capital IQ 6
    • OCTOBER 2011base meTaLs - secTor performance Share Price Performance - September 2011 Copper Nickel ZincShare Price Performance Share Price Performance - Since 30 June 2011Share Price Performance Share Price Performance - Since 31 December 2010 50% 25% 11.4%Share Price Performance 2.6% 0% -5.0% -7.4% -7.9% -13.9% -25% -20.3% -22.4% -25.4% -27.6% Average - (13%) -35.1% -37.7% Average - (16%) -40.6%-42.9% -41.0% -50% -45.7% -47.6% -50.0% -51.3% -50.6% -55.6% -53.7% -58.5% Average - (41%) -63.9% -63.1% -75% 7
    • Group 150coaL - secTor performance Share Price Performance - September 2011Share Price Performance Share Price Performance - Since 30 June 2011Share Price Performance Share Price Performance - Since 31 December 2010Share Price Performance8
    • OCTOBER 2011diversified - secTor performance indusTriaL mineraLs - secTor performance Share Price Performance - September 2011Share Price Performance Share Price Performance Share Price Performance - Since 30 June 2011Share Price Performance Share Price Performance Share Price Performance - Since 31 December 2010Share Price Performance Share Price Performance 9
    • Group 150GoLd - secTor performance Share Price Performance - September 2011Share Price Performance Share Price Performance - Since 30 June 2011Share Price Performance Share Price Performance - Since 31 December 2010 115%Share Price Performance10
    • OCTOBER 2011iron ore - secTor performance Share Price Performance - September 2011Share Price Performance Share Price Performance - Since 30 June 2011Share Price Performance Share Price Performance - Since 31 December 2010Share Price Performance 11
    • Group 150pLaTinum - secTor performance uranium - secTor performance Share Price Performance - September 2011Share Price Performance Share Price Performance Share Price Performance - Since 30 June 2011Share Price Performance Share Price Performance Share Price Performance - Since 31 December 2010Share Price Performance Share Price Performance12
    • OCTOBER 2011consensus commodiTy price forecasTs - sepTemberGold (US$/oz) Silver (US$/OZ) $3,000 $60 $2,500 $50 $39.55 $37.50 $1,782 $1,634 $32.74 $2,000 $1,624 $1,600 $1,550 $40 $29.93 $30.00 $1,500 $30 $1,000 $20 $500 $10 $0 $0 Spot 2012 2013 2014 2015 Spot 2012 2013 2014 2015Copper (US$/lb) Nickel (US$/lb) $6.00 $16.00 $5.00 $4.24 $3.97 $10.63 $10.81 $10.90 $3.86 $9.98 $3.42 $12.00 $4.00 $3.18 $7.98 $3.00 $8.00 $2.00 $4.00 $1.00 $0.00 $0.00 Spot 2012 2013 2014 2015 Spot 2012 2013 2014 2015Zinc (US$/lb) Lead (US$/lb) $1.50 $1.50 $1.23 $1.16 $1.18 $1.18 $1.07 $1.09 $0.97 $1.00 $0.84 $0.90 $1.00 $1.00 $0.50 $0.50 $0.00 $0.00 Spot 2012 2013 2014 2015 Spot 2012 2013 2014 2015Tin (US$/lb) Uranium (US$/lb) $20.00 $100 $17.50 $70.00 $75.00 $13.24 $64.50 $15.00 $10.89 $75 $53.00 $50.00 $12.50 $9.23 $10.00 $50 $7.50 $5.00 $25 $2.50 $0.00 $0.00 $0 Spot 2012 2013 2014 2015 Spot 2012 2013 2014 2015AUD:USD NYMEX (US$/bbl) $1.25 $1.00 $1.05 $150 $0.97 $0.96 $0.97 $111.50 $114.00 $113.00 $1.00 $100.00 $100 $79.20 $0.75 $0.50 $50 $0.25 $0.00 $0 Spot 2012 2013 2014 2015 Spot 2012 2013 2014 2015Source: 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. 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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You may use the information in this publication for your own personal use, but you must not (without Gresham Advisory Partners’ consent) alter, reproduce or distribute any part of this publication, transmit it to any otherperson or incorporate the information into any other document.General mattersThese Terms and Conditions are governed by the law in force in the State of Victoria, and the parties irrevocably submit to the non-exclusive jurisdiction of the courts of Victoria and courts of appeal from them for determining any disputes concerning the Terms and Conditions.If the whole or any part of a provision of these Terms and Conditions are void, unenforceable or illegal in a jurisdiction it is severed for that jurisdiction. The remainder of the Terms and Conditions have full force and effect and the validity or enforceability of that provision in any other jurisdictionis not affected. This clause has no effect if the severance alters the basic nature of the Terms and Conditions or is contrary to public policy.If Gresham Advisory Partners do not act in relation to a breach by you of these Terms and Conditions, this does not waive Gresham Advisory Partners’ right to act with respect to subsequent or similar breaches. 14