Gresham "Group 150" - February 2011

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Gresham Group 150 - Edition 11

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Gresham "Group 150" - February 2011

  1. 1. FEBRUARY 2011 Group 150 February 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 February edition of ‘Group 150’, a ranking of the top 150 ASX listed resources companies (excludingoil and gas), by market capitalisation.January recorded the first decline in cumulative market value of the Group 150 since August 2010, down 2.8% for the month to$589.2 billion from $606.3 billion. The entry point into the Group 150 also fell during January to $127.7 million from $132.8 forDecember. The ASX/S&P 200 Resources Index dropped 3.1% for the month, while the ASX All Ordinaries and ASX/S&P 200 Indexincreased 0.1% and 0.2% respectively. Given the recent holiday season, limited M&A activity was recorded during the month withonly one transaction announced - Regent Pacific’s offer for BC Iron.Only one third of the Group 150 experienced an increase in market value during the month with the “winners” being: Peninsula(+33.4%), Elemental (+32.1%), Carabella (+28.9%), Flinders (+26.7%) and Bathurst (+26.5%).In this edition of Group 150, we have provided a case study on Rio Tinto-Zinc Corporation (RTZ) and how they utilised the capitalmarket to fund growth while retaining effective control.RTZ was created as a result of a merger between British owned The Rio Tinto Company and The Consolidated Zinc Corporation,an Australian company. Over time RTZ created a number of listed businesses in different equity markets where each business wasable to tap the local equity markets and pursue rapid growth. All the time RTZ retained effective control. RTZ effectively utilised a“Hunting Pack” strategy to create a world class business in CRA.Although many CRA business units (copper, coal, industrial minerals) were in fact competitors to RTZ business units the over-ridingstrategy seemed to be that commodity businesses really competed on an operating cost level.At the appropriate time, after CRA’s growth had been funded by the equity capital markets, the company was once again broughtback into the RTZ corporate centre via the dual listed mechanism. • Diamonds (Argyle) • Aluminium (Comalco (67%) - Gladstone refinery, Weipa bauxite) • Dampier salt • Hamersley Iron • Pacific Coal (Blair Athol, Tarong, Hail Creek) • Kaltim Prima (50%) - sold 2003 • Century - sold 1997 • Coal and AlliedWe look forward to seeing you at Indaba next week.Gresham Advisory Partners Limited Gresham Advisory Partners is a leading Australian mergers and acquisitions/corporate advisoryEdition 11 business and one of Australia’s largest and highest ranking independent corporate advisors. 1
  2. 2. Group 150 Top 150 ASX LiSTed reSource compAnieS - JAnuAry By Market Capitalisation Mkt Cap (A$m) % Mkt Cap (A$m) % Jan Dec Company 31-jan-11 31-Dec-10 Change Jan Dec Company 31-Jan-11 31-Dec-10 Change 1 1 BHP Billiton Ltd. (ASX:BHP) $245,624.6 $251,567.4 (2.4%) 51 52 Brockman Resources Limited (ASX:BRM) $700.8 $709.5 (1.2%) 2 2 Rio Tinto Ltd. (ASX:RIO) $164,924.5 $167,697.6 (1.7%) 52 45 OceanaGold Corporation (ASX:OGC) $699.7 $956.3 (26.8%) 3 3 Newcrest Mining Ltd. (ASX:NCM) $28,296.1 $30,945.2 (8.6%) 53 63 Northern Iron Limited (ASX:NFE) $626.8 $568.0 10.4% 4 4 Fortescue Metals Group Ltd. (ASX:FMG) $19,860.1 $20,357.3 (2.4%) 54 60 Bandanna Energy Limited (ASX:BND) $613.8 $610.3 0.6% 5 5 Coal & Allied Industries Ltd. (ASX:CNA) $11,087.2 $10,385.8 6.8% 55 58 Resolute Mining Ltd. (ASX:RSG) $611.1 $645.9 (5.4%) 6 6 Alumina Ltd. (ASX:AWC) $5,807.6 $6,051.6 (4.0%) 56 56 ST Barbara Ltd. (ASX:SBM) $605.6 $664.3 (8.8%) 7 7 OZ Minerals Limited (ASX:OZL) $5,278.8 $5,570.3 (5.2%) 57 54 Bougainville Copper Ltd. (ASX:BOC) $603.6 $677.8 (10.9%) 8 8 Equinox Minerals Ltd. (ASX:EQN) $5,005.7 $4,905.1 2.1% 58 50 Allied Gold Ltd. (ASX:ALD) $599.3 $713.9 (16.1%) 9 9 New Hope Corp. Ltd. (ASX:NHC) $4,068.1 $4,026.6 1.0% 59 74 Bathurst Resources Ltd (ASX:BTU) $573.9 $453.6 26.5% 10 10 Riversdale Mining Ltd. (ASX:RIV) $3,744.5 $4,023.8 (6.9%) 60 64 Murchison Metals Limited (ASX:MMX) $560.1 $555.8 0.8% 11 11 MacArthur Coal Ltd. (ASX:MCC) $3,737.5 $3,833.3 (2.5%) 61 62 Kagara Ltd (ASX:KZL) $541.5 $573.3 (5.5%) 12 14 Paladin Energy, Ltd. (ASX:PDN) $3,547.0 $3,577.1 (0.8%) 62 55 Ampella Mining Limited (ASX:AMX) $532.7 $670.1 (20.5%) 13 12 Iluka Resources Ltd. (ASX:ILU) $3,537.4 $3,812.7 (7.2%) 63 59 Discovery Metals Ltd. (ASX:DML) $524.4 $620.5 (15.5%) 14 16 Whitehaven Coal Limited (ASX:WHC) $3,475.7 $3,317.7 4.8% 64 67 Cockatoo Coal Limited (ASX:COK) $518.2 $538.5 (3.8%) 15 13 Aquila Resources Ltd. (ASX:AQA) $3,432.5 $3,687.0 (6.9%) 65 70 Sphere Minerals Limited (ASX:SPH) $514.0 $520.9 (1.3%) 16 15 Lynas Corp. Ltd. (ASX:LYC) $2,984.2 $3,424.7 (12.9%) 66 57 CuDeco Ltd. (ASX:CDU) $504.9 $661.6 (23.7%) 17 18 Aquarius Platinum Ltd. (ASX:AQP) $2,575.6 $2,478.4 3.9% 67 68 Panoramic Resources Ltd. (ASX:PAN) $483.2 $530.7 (9.0%) 18 17 PanAust Limited (ASX:PNA) $2,396.5 $2,630.1 (8.9%) 68 65 Arafura Resources Limited (ASX:ARU) $476.5 $542.1 (12.1%) 19 19 Mount Gibson Iron Ltd. (ASX:MGX) $2,284.2 $2,295.0 (0.5%) 69 72 Metminco Limited. (ASX:MNC) $467.8 $498.5 (6.2%) 20 20 Extract Resources Ltd. (ASX:EXT) $2,170.1 $2,287.0 (5.1%) 70 69 Gryphon Minerals Ltd. (ASX:GRY) $456.3 $525.6 (13.2%) 21 21 Energy Resources of Australia Ltd. (ASX:ERA) $1,915.0 $2,122.9 (9.8%) 71 73 Moly Mines Ltd. (ASX:MOL) $453.7 $460.8 (1.5%) 22 22 Gloucester Coal Ltd. (ASX:GCL) $1,824.4 $1,734.5 5.2% 72 79 Beadell Resources Ltd (ASX:BDR) $444.8 $416.7 6.7% 23 24 Atlas Iron Limited (ASX:AGO) $1,745.2 $1,613.5 8.2% 73 76 Rex Minerals Limited. (ASX:RXM) $441.9 $440.3 0.4% 24 25 Zimplats Holdings Ltd. (ASX:ZIM) $1,722.2 $1,603.8 7.4% 74 75 Metals X Limited (ASX:MLX) $430.2 $450.7 (4.5%) 25 23 Aston Resources Limited (ASX:AZT) $1,698.8 $1,620.3 4.8% 75 71 Indophil Resources NL (ASX:IRN) $391.3 $499.7 (21.7%) 26 27 Ivanhoe Australia Limited (ASX:IVA) $1,372.4 $1,493.7 (8.1%) 76 78 Aditya Birla Minerals Limited (ASX:ABY) $388.6 $419.9 (7.5%) 27 26 Sundance Resources Ltd. (ASX:SDL) $1,342.4 $1,559.1 (13.9%) 77 66 Integra Mining Ltd. (ASX:IGR) $386.6 $541.8 (28.6%) 28 31 Medusa Mining Limited (ASX:MML) $1,253.6 $1,217.9 2.9% 78 96 Cape Lambert Resources Limited (ASX:CFE) $370.3 $306.7 20.7% 29 29 Gindalbie Metals Ltd. (ASX:GBG) $1,248.5 $1,299.9 (4.0%) 79 84 Deep Yellow Ltd. (ASX:DYL) $366.3 $366.1 0.1% 30 28 Perseus Mining Ltd. (ASX:PRU) $1,205.1 $1,429.2 (15.7%) 80 82 Mincor Resources NL (ASX:MCR) $352.0 $377.0 (6.6%) 31 37 Western Areas NL (ASX:WSA) $1,161.0 $1,074.6 8.0% 81 106 Flinders Mines Limited. (ASX:FMS) $345.9 $273.0 26.7% 32 33 Mirabela Nickel Ltd. (ASX:MBN) $1,106.0 $1,120.8 (1.3%) 82 83 Jabiru Metals Limited (ASX:JML) $340.3 $372.6 (8.7%) 33 35 Minara Resources Ltd. (ASX:MRE) $1,062.9 $1,109.6 (4.2%) 83 80 Saracen Mineral Holdings Limited (ASX:SAR) $339.6 $413.4 (17.9%) 34 32 Sandfire Resources (ASX:SFR) $1,045.2 $1,201.6 (13.0%) 84 81 Marengo Mining Limited (ASX:MGO) $338.0 $397.5 (15.0%) 35 41 Mantra Resources Limited (ASX:MRU) $1,044.0 $1,045.3 (0.1%) 85 77 Silver Lake Resources Limited (ASX:SLR) $336.3 $424.0 (20.7%) 36 36 Independence Gold NL (ASX:IGO) $995.0 $1,103.3 (9.8%) 86 89 Greenland Minerals and Energy Ltd (ASX:GGG) $333.7 $345.0 (3.3%) 37 40 White Energy Company Limited (ASX:WEC) $977.9 $1,056.9 (7.5%) 87 86 Nucoal Resources NL (ASX:NCR) $333.2 $357.8 (6.9%) 38 34 Kingsgate Consolidated Limited (ASX:KCN) $952.3 $1,112.9 (14.4%) 88 87 Kingsrose Mining Limited (ASX:KRM) $332.7 $356.9 (6.8%) 39 46 Coalspur Mines Limited (ASX:CPL) $946.3 $944.4 0.2% 89 99 Guildford Coal Limited (ASX:GUF) $317.3 $300.8 5.5% 40 43 CGA Mining Limited (ASX:CGX) $926.5 $1,029.8 (10.0%) 90 110 Aspire Mining Limited (ASX:AKM) $312.7 $255.3 22.5% 41 47 Grange Resources Limited (ASX:GRR) $910.1 $869.8 4.6% 91 91 Conquest Mining Limited (ASX:CQT) $312.0 $338.3 (7.8%) 42 38 Intrepid Mines Limited (ASX:IAU) $895.3 $1,068.8 (16.2%) 92 100 Orocobre Limited (ASX:ORE) $311.0 $300.0 3.7% 43 39 Avoca Resources Ltd. (ASX:AVO) $894.7 $1,067.1 (16.2%) 93 85 Adamus Resources Ltd. (ASX:ADU) $310.9 $362.3 (14.2%) 44 44 Jupiter Mines Ltd. (ASX:JMS) $888.2 $1,029.5 (13.7%) 94 113 Berkeley Resources Ltd. (ASX:BKY) $309.6 $246.3 25.7% 45 49 Giralia Resources NL (ASX:GIR) $863.1 $797.1 8.3% 95 88 Troy Resources NL (ASX:TRY) $303.6 $348.2 (12.8%) 46 48 Summit Resources Ltd. (ASX:SMM) $839.2 $802.2 4.6% 96 105 Galaxy Resources (ASX:GXY) $303.0 $278.3 8.9% 47 42 Regis Resources Limited (ASX:RRL) $833.5 $1,032.0 (19.2%) 97 104 BC Iron Limited (ASX:BCI) $302.5 $282.0 7.3% 48 51 Gujarat NRE Coking Coal Limited (ASX:GNM) $748.4 $712.8 5.0% 98 90 Dominion Mining Limited (ASX:DOM) $299.2 $344.7 (13.2%) 49 53 OM Holdings Limited (ASX:OMH) $739.1 $704.0 5.0% 99 101 Equatorial Resources Limited (ASX:EQX) $299.0 $297.6 0.5% 50 61 Straits Resources Ltd. (ASX:SRL) $714.9 $574.2 24.5% 100 95 Perilya Ltd. (ASX:PEM) $291.4 $309.8 (5.9%)Includes ASX Resource companies excluding oil and gas 2
  3. 3. FEBRUARY 2011 Mkt Cap (A$m) % Mkt Cap (A$m) % Jan Dec Company 31-Jan-11 31-Dec-10 Change Jan Dec Company 31-Jan-11 31-Dec-10 Change 101 92 Mineral Deposits Ltd. (ASX:MDL) $291.3 $336.9 (13.5%) 126 122 Exco Resources Ltd. (ASX:EXS) $187.1 $197.5 (5.3%) 102 111 Platinum Australia Limited (ASX:PLA) $290.4 $249.2 16.5% 127 127 Pluton Resources Limited (ASX:PLV) $183.0 $184.8 (1.0%) 103 103 Hunnu Coal Limited (ASX:HUN) $285.3 $283.2 0.7% 128 126 FerrAus Ltd. (ASX:FRS) $180.0 $185.1 (2.8%) 104 94 Ramelius Resources Ltd. (ASX:RMS) $279.4 $311.4 (10.3%) 129 134 Bannerman Resources Limited (ASX:BMN) $177.0 $165.3 7.1% 105 93 Catalpa Resources Limited (ASX:CAH) $276.8 $321.6 (13.9%) 130 133 Atlantic Ltd (ASX:ATI) $174.5 $170.9 2.1% 106 97 Iron Ore Holdings Limited (ASX:IOH) $271.0 $302.6 (10.4%) 131 123 Azumah Resources Ltd (ASX:AZM) $169.1 $193.1 (12.4%) 107 98 Tiger Resources Ltd. (ASX:TGS) $262.8 $301.7 (12.9%) 132 136 Kangaroo Resources Limited (ASX:KRL) $159.6 $160.3 (0.4%) 108 112 Alkane Resources Limited (ASX:ALK) $260.2 $249.0 4.5% 133 120 Nyota Minerals Limited (ASX:NYO) $159.5 $208.5 (23.5%) 109 102 Highlands Pacific Limited (ASX:HIG) $253.8 $295.0 (14.0%) 134 - African Iron Limited (ASX:AKI) $158.2 - - 110 117 South Boulder Mines Ltd. (ASX:STB) $253.6 $217.2 16.8% 135 150 Golden West Resources Limited (ASX:GWR) $156.4 $132.8 17.8% 111 115 Sylvania Resources Ltd. (ASX:SLV) $252.1 $223.5 12.8% 136 135 Astron Ltd. (ASX:ATR) $155.9 $163.6 (4.7%) 112 125 Elemental Minerals Limited (ASX:ELM) $250.0 $189.2 32.1% 137 161 Carabella Resources Limited (ASX:CLR) $155.5 $120.6 28.9% 113 118 Continental Coal Limited (ASX:CCC) $242.4 $215.5 12.5% 138 124 Kentor Gold Limited (ASX:KGL) $153.9 $191.1 (19.5%) 114 119 Hillgrove Resources Ltd. (ASX:HGO) $234.1 $215.4 8.7% 139 139 Focus Minerals Limited (ASX:FML) $151.7 $151.7 0.0% 115 107 Gold One International Limited (ASX:GDO) $234.1 $262.2 (10.7%) 140 156 Resource Generation Limited (ASX:RES) $143.9 $124.4 15.7% 116 108 Tanami Gold NL (ASX:TAM) $227.0 $260.9 (13.0%) 141 131 Alliance Resources Ltd. (ASX:AGS) $141.5 $173.9 (18.6%) 117 116 Northern Energy Corporation Ltd (ASX:NEC) $223.5 $219.6 1.8% 142 140 Mungana Goldmines Ltd (ASX:MUX) $141.3 $151.5 (6.7%) 118 128 Noble Mineral Resources Ltd. (ASX:NMG) $218.8 $184.6 18.5% 143 141 Stanmore Coal Limited (ASX:SMR) $139.9 $150.1 (6.8%) 119 109 Red 5 Ltd. (ASX:RED) $217.2 $255.5 (15.0%) 144 144 Sihayo Gold Limited (ASX:SIH) $138.2 $144.2 (4.2%) 120 130 WPG Resources Ltd (ASX:WPG) $214.0 $177.1 20.8% 145 152 Ausgold Limited (ASX:AUC) $137.7 $129.1 6.7% 121 129 IMX Resources Ltd. (ASX:IXR) $207.5 $178.5 16.2% 146 138 Toro Energy Ltd (ASX:TOE) $135.1 $154.4 (12.5%) 122 132 African Energy Resources Limited (ASX:AFR) $200.8 $172.9 16.1% 147 137 Chalice Gold Mines Ltd. (ASX:CHN) $133.2 $158.6 (16.0%) 123 121 Kula Gold Limited (ASX:KGD) $197.1 $206.1 (4.4%) 148 173 A-Cap Resources Ltd. (ASX:ACB) $129.8 $107.1 21.2% 124 114 Australasian Resources Ltd (ASX:ARH) $194.5 $243.1 (20.0%) 149 143 Robust Resources Limited (ASX:ROL) $129.5 $145.4 (10.9%) 125 142 Peninsula Energy Limited (ASX:PEN) $194.3 $145.7 33.4% 150 168 Avanco Resources Limited (ASX:AVB) $127.7 $111.1 14.9%Source: Capital IQnew enTrAnTS - JAnuAry eXiTS - JAnuAry134 African Iron Limited (ASX:AKI) Citadel Resource Group Limited (ASX:CGG)137 Carabella Resources Limited (ASX:CLR) Morning Star Gold NL (ASX:MCO)140 Resource Generation Limited (ASX:RES) Reed Resources Ltd. (ASX:RDR)145 Ausgold Limited (ASX:AUC) Resource and Investment NL (ASX:RNI)148 A-Cap Resources Ltd. (ASX:ACB) Uranex NL (ASX:UNX)150 Avanco Resources Limited (ASX:AVB) Legend Mining Ltd. (ASX:LEG)Based on market capitalisation as at 31 January 2011 vs 31 December2010Group 150 LeAderS And LAGGerS - mArkeT cApiTALiSATion performAnce - JAnuAry Leaders Laggers * Included placement, acquisition and/or material option conversion during month 3
  4. 4. Group 150Group 150 mArkeT cApiTALiSATion ASX indeX performAnce - JAnuAryGroup 150 SecTor mArkeT cApiTALiSATion - JAnuAry Market Capitalisation (A$b)merGer & AcquiSiTionS - Announced in JAnuAry Percent Premium - Premium - Date Value Consideration Target Acquirer Sought 1 Day Prior 1 Month Prior Announced (A$m) Offered (%) (%) (%) 20-Jan-2011 BC Iron Limited (ASX:BCI) Regent Pacific Group Ltd (SEHK:575) 258.7 80.13 4.1 27.9 CashSource: Capital IQAnnounced Australian Resources (excluding oil and gas) Mergers and Acquisitions >A$10m4
  5. 5. FEBRUARY 2011rio TinTo - cASe STudyUtilising capital markets to fund growth while retaining effective control.RTZ was created as a result of a merger between British owned The Rio Tinto Company and The Consolidated Zinc Corporation, anAustralian company.RTZ created a number of listed businesses in different equity markets where each business was able to tap the local equity markets andpursue rapid growth. All the time RTZ retained effective control.RTZ effectively utilised a “Hunting Pack” strategy to create a world class business in CRA.Although many CRA business units (copper, coal, industrial minerals) were in fact competitors to RTZ business units the over-ridingstrategy seemed to be that commodity businesses really competed on an operating cost level.At the appropriate time, after CRA’s growth had been funded by the equity capital markets, the company was once again brought backinto the RTZ corporate centre via the dual listed mechanism.• Diamonds (Argyle)• Aluminium (Comalco (67%) - Gladstone refinery, Weipa bauxite)• Dampier salt• Hamersley Iron• Pacific Coal (Blair Athol, Tarong, Hail Creek)• Kaltim Prima (50%) - sold 2003• Century - sold 1997• Coal and AlliedIn the early stages, Rio Tinto built its copper portfolio by tapping local capital markets to develop projects. 1956 Palabora Mining Company • Palabora Mining Company is founded In the early 1990’s a copper deposit was identified in South Africa. In 1956, the Palabora Mining Company (“Palabora”) was formed to develop the mine 1963 In 1963, Palabora listed on the Johannesburg Stock Exchange • Palabora listed on JSE, with Rio Tinto as a major sharehold- (“JSE”) to raise capital to find construction of the mine. Rio Tinto was er. Construction commences a major shareholder. Mining operations commenced at Palabora in 1964 • Bougainville Copper Pty Ltd, a JV between Conzinc Rio Tinto (CRA) & Broken Hill Corp. began prospecting In 1996, Palabora commenced the construction of an underground mine, timed to reach full production in 2002 as the open pit mine reached the end of its life 1964 Rio Tinto retains a 57% interest in the company and manages the mine, smelter and refinery. • Mining operations commence at Palabora Bougainville Copper Limited 1967 A large copper porphyry deposit was discovered on the island • Bougainville Copper Pty Ltd is incorporated of Bougainville, Papua New Guinea, in the mid-1960’s by CRA Exploration Ltd (now Rio Tinto) 1971 In 1967, Bougainville Copper Pty Ltd (“BCL”) was incorporated for the purpose of developing and mining this deposit • Bougainville Copper Ltd listed on ASX (Rio Tinto 53.9%) In 1971, BCL listed on the Australian Stock Exchange with Rio Tinto as a 53.6% shareholder From 1972 to 1989, BCL mined the Panguna deposit. However, mining operations were suspended in 1989 due to civil unrest in Bougainville 5
  6. 6. Group 150rio TinTo - cASe STudyRio Tinto subsequently acquired interests in several other copper assets 1985 Acquisition of project interests • RTZ acquired 49% of Neves Corvo In the 1980’s, Rio Tinto acquired interests in several copper projects including: • 30% interest in Escondida acquired by RTZ • a 49% interest in Somincor, the operator of Neves Corvo in 1985 1989 • a 30% joint venture interest in the Escondida project in 1985 • Kennecott Copper acquired from BP • a 100% interest in Kennecott Copper, acquired from British Petroleum • Commercial prod’n achieved at Neves Corvo when they divested their minerals portfolio in 1989 • Mining ceased at Bougainville Copper Investment in a listed company 1995 In 1995 Rio Tinto acquired a 12% interest in Freeport-McMoran Copper & Gold • RTZ Corporation Plc mergers with CRA Ltd to (“FCX”). In 2004 FCX acquired these shares for cash form the DLC, Rio Tinto Plc and Rio Tinto Ltd In 2006 Rio Tinto acquired a holding of 9.9 per cent in Ivanhoe Mines which • Rio Tinto acquires 12% interest in FCX & 40% was increased by a further 9.9% in October 2009. Subsequent convertible JV interest on future expansions at Grasberg funding has increased this interest to 40.3% of Ivanhoe Mines 2000 Joint venture agreements • Rio Tinto acquires North Ltd, including: • 25% interest in Alumbrera In addition to acquiring FCX shares, Rio Tinto signed a joint venture agreement with FCX entitling Rio Tinto to 40% of any future expansions at the Grasberg • 80% interest in Northparkes mine in Indonesia. Rio Tinto’s share of production from this joint venture 2006 arrangement was close to 108,000t copper in 2009 • Acquired 9.9% in Ivanhoe Mines Acquisition of North Ltd • Subsequent events have lifted this to the Through its acquisition in 2000 of North Ltd, Rio Tinto gained a 25% interest in current interest of 40.3% the Alumbrera copper-gold project and an 80% interest in NorthparkesAt the same time, Rio Tinto has divested unwanted copper assets 1992 Rio Algom • RTZ disposes interest in Rio Algom Rio Algom was originally the Canadian arm of RTZ, formed after the acquisition of several Canadian uranium mines in 1955 • CRA sells Cobar Mines Pty Ltd Rio Algom subsequently developed interests in copper (Cerro Colorado, Highland Valley), molybdenum, uranium, potash and coal 2000 In 1992, RTZ sold its 51.5% stake in Rio Algom for £118M, citing that it was to avoid competition with other North American interests such as its Kennecott • Rio Tinto sells an 80% interest in Sepon project operations to Oxiana Resources NL Cobar CRA acquired Cobar Mines Pty Ltd (“Cobar”) in 1980 when Broken Hill South Ltd was dismembered CRA operated the mine until December 1992 when it sold Cobar to Golden Shamrock Mines Ltd (80.5%), Pacific Highway Pty Ltd and former management Sepon In December 1990 CRA Exploration (Laos) Limited successfully negotiated a Mining Exploration & Production Agreement (“MEPA”) with the Government of Laos, covering a 5,000km2 area near the town of Sepon Exploration commenced in 1993. By 1999 an internal Rio Tinto review indicated that the project was unlikely to meet corporate size criteria and the project was offered for sale In August 2000 Oxiana Resources NL acquired an 80% interest in the SeponSource: Gresham, RJMcDonald, Company Websites project from Rio Tinto6
  7. 7. FEBRUARY 2011BASe meTALS - SecTor performAnce Share Price Performance - January 2011 Copper Nickel ZincShare Price Performance Share Price Performance - Since 30 June 2010Share Price Performance 52 Week Hi / Low / CurrentShare Price Performance 7
  8. 8. Group 150coAL - SecTor performAnce Share Price Performance - January 2011Share Price Performance Share Price Performance - Since 30 June 2010Share Price Performance 52 Week Hi / Low / CurrentShare Price Performance8
  9. 9. FEBRUARY 2011diverSified - SecTor performAnce induSTriAL minerALS - SecTor performAnce Share Price Performance - January 2011Share Price Performance Share Price Performance Share Price Performance - Since 30 June 2010Share Price Performance Share Price Performance 52 Week Hi / Low / CurrentShare Price Performance Share Price Performance 9
  10. 10. Group 150GoLd - SecTor performAnce Share Price Performance - January 2011Share Price Performance Share Price Performance - Since 30 June 2010Share Price Performance 52 Week Hi / Low / CurrentShare Price Performance10
  11. 11. FEBRUARY 2011iron ore - SecTor performAnce Share Price Performance - January 2011Share Price Performance Share Price Performance - Since 30 June 2010Share Price Performance 52 Week Hi / Low / CurrentShare Price Performance 11
  12. 12. Group 150urAnium - SecTor performAnce Share Price Performance - January 2011Share Price Performance Share Price Performance - Since 30 June 2010Share Price Performance 52 Week Hi / Low / CurrentShare Price Performance12
  13. 13. FEBRUARY 2011conSenSuS commodiTy price forecASTS - JAnuAry Gold (US$/oz) Silver (US$/OZ) $2,500 $60 $2,000 $50 $1,337 $1,444 $1,366 $1,231 $1,169 $40 $28.14 $28.00 $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 $12.41 $4.42 $4.34 $4.40 $11.23 $11.02 $5.00 $3.87 $3.71 $9.75 $10.29 $12.00 $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 $1.15 $2.00 $1.10 $1.10 $1.10 $1.09 $1.50 $1.14 $1.13 $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 $13.65 $100 $12.42 $13.15 $15.00 $65.00 $65.00 $63.25 $75 $60.00 $12.50 $9.07 $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 $1.00 $0.97 $150 $0.95 $0.93 $0.90 $98.00 $105.00 $99.63 $1.00 $92.09 $89.25 $100 $0.75 $0.50 $50 $0.25 $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. 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