Update on ASX listed junior and mid-cap mining companies

1. Oz Metals
6th Oct 2014
$3.50
$3.40
$3.30
$3.20
$3.10
$3.00
$2.90
$2.80
600
500
400
300
200
100
$4.00
$3.80
$3.60
$3.40
$3.20
$3.00
600
500
400
300
200
100
$1,800
$1,700
$1,600
$1,500
$1,400
$1,300
$1,200
$1,100
Gold
A$
US$
160
140
120
100
Tonnes
80
60
40
20
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec $10.00
$9.00
$8.00
$7.00
$6.00
500
400
300
200
100
$1.15
$1.10
$1.05
$1.00
$0.95
$0.90
$0.85
1,400
1,200
1,000
800
600
400
200
DISCLAIMER
This research report is provided in good faith from sources believed to be accurate and reliable. Terra Studio Pty Ltd directors and employees do
not accept liability for the results of any action taken on the basis of the information provided or for any errors or omissions contained therein.
Readers should seek investment advice from their professional advisors before acting upon information contained herein.
Page 1 / 3
Terra Studio
US$ COPPER & GOLD REVISITING 2014 LOWS
Precious an and Base Metals Fundamentals
Source: Metal Prices, Reuters, SNL, Terra Studio
$2.70
0
Jan-14 Apr-14 Jul-14 Oct-14
Thousand Tonnes
Copper
SHFE
COMEX
LME
$2.80
0
Jan 14 Mar 14 May 14 Jul 14
Thousand Tonnes
China Copper Imports
Imports
Price
$1,000
Jan/14 Apr/14 Jul/14 Oct/14
0
Hong Kong Gold Net Imports
2013
2014
$5.00
0
Jan-14 Apr-14 Jul-14 Oct-14
Thousand Tonnes
Nickel
LME Price 3 month
$0.80
0
Jan-14 Apr-14 Jul-14 Oct-14
Thousand Tonnes
Zinc
SHFE LME Price 3 month

2. Oz Metals
6th Oct 2014
DISCLAIMER
This research report is provided in good faith from sources believed to be accurate and reliable. Terra Studio Pty Ltd directors and employees do
not accept liability for the results of any action taken on the basis of the information provided or for any errors or omissions contained therein.
Readers should seek investment advice from their professional advisors before acting upon information contained herein.
Page 2 / 3
Terra Studio
Markets & Majors
Thomson Reuters - The London Metal Exchange (LME),
will increase its average transaction fee by 34% and will
simplify the tariff by giving an all-in transaction fee with
trading and clearing components all charged in U.S. dollars.
The changes will take effect Jan. 1, 2015. The move is
aimed at boosting profits while still allowing it to be
competitive with U.S. rival CME Group. The new structure
will simplify and level out the transaction fees across the
exchange's user base and includes a significant discount on
trades transacted on the Ring — its trading floor in London.
The move will be another key step by the LME's owner,
Hong Kong Exchanges and Clearing Ltd. (HKEx), to wring
profits from its pricey $2.2 billion takeover of the world's
biggest industrial metals market. Before the LME's sale in
December 2012, it was owned by the banks and brokers
that used it and therefore trading fees were kept very low for
members.
SNL - Trading volumes at Shanghai Gold Exchange's new
international gold trading platform have so far been quiet
since the exchange's launch Sep 18th; however, market
watchers say the establishment of the international board
itself is a good start on the road to the internationalization of
gold trading in China.
The Australian - Glencore says it has cut about 570 jobs
from its Queensland copper operations since
acquiring Xstrata last year, as mine workers continue to feel
the impact of post-boom commodities prices and a focus on
cost-cutting. However, the mining and trading giant, which is
also planning to close its Mount Isa copper smelter in 2016,
says it may grow copper concentrate production from
Australia by more than previously flagged. Glencore bosses
said there had been an 18% headcount reduction in North
Queensland, a 3% cut in operating costs, a 30% drop in
sustaining capital spending and a 25% cut in expansion
spending.
Thomson Reuters - Chinese copper smelters are likely to
increase purchases of spot raw material concentrates in the
international market in the coming one to two months to take
advantage of strong processing fees, trading sources said.
Strong spot processing fees and high inventories of
concentrates may also encourage Chinese smelters to ask
global miners such as BHP Billiton and Freeport-McMoRan
for higher term processing fees in 2015. Treatment and
refining charges (TC/RCs) for spot copper concentrates to
China have risen by a quarter since late July after Freeport
and Newmont Mining resumed exports from Indonesia.
Copper production in Chile declined for the second
consecutive month, decreasing 2% year over year to
483,170 tonnes in August, Business News Americas
reported citing a new report from national statistics bureau
INE.
New Caledonia and Vanuatu are studying a plan to jointly
mine and process nickel ores into refined metal to help
produce stainless steel in China, Reuters wrote. Under the
proposed partnership, New Caledonian company MKM
Group and China's Jin Pei Century Investment (Group) Co.
Ltd. plan to mine low-purity nickel ore in the French Pacific
territory and ship it to Santo in northern Vanuatu for smelting.
Alto Capital senior analyst Carey Smith thinks the nickel
price rallied too quickly following the introduction of the raw
mineral export ban by Indonesia earlier in 2014. "I believe a
fair price for nickel right now is probably still around
US$18,000/t to US$19,000/t mark, which is a very good
price in this current market." An oversupply in the market
has weighed on the price, with around 360,000 tonnes of
nickel in London Metal Exchange stockpiles, as well as
200,000 to 300,000 tonnes at China's ports and further
supplies at mine sites. "At the moment there is an
oversupply of nickel in the market, which is why I believe it
probably ran too far when it got above US$20,000/t," Smith
said. While the price has come off quite strongly in the past
few weeks, Smith is confident the market will see a rally
before the end of 2014 as London Metal Exchange
stockpiles steadily decline and consumption increases.
SNL - Australian base metals producer MMG is working to
increase zinc production at its existing operations as its
Century mine in Queensland rapidly comes to the end of its
life. The closure of Century will remove about 500,000 tpa of
zinc concentrate from MMG's production profile. In 2014, the
mine is expected to produce between 455,000 tonnes and
480,000 tonnes of zinc. MMG lowered its total full-year zinc
production guidance in mid-July to between 575,000 tonnes
and 600,000 tonnes after output fell 4% year over year in
the first half to 270,201 tonnes due to lower grades at the
Century mine. Century, which has been in operation for
almost 20 years, is just one of several large zinc mines
scheduled to close over the next few years. Vedanta
Resources Lisheen mine in Ireland, which is in its second
decade of operations and is one of the largest producers of
zinc, is also slated for closure very soon, as is the
company's Skorpion mine in southern Namibia. The closure
of these mines and others is tipped to remove about 1
million tonnes of annual supply from the market. "This, along
with the lack of new zinc mines coming online, is expected
to significantly reduce supply — at the same time as
ongoing industrialization and development maintains growth
in demand," the spokesperson said. "While there has been
a recent increase in zinc prices, we expect these factors to
lead to increasing tightness in the market over the long
term."
Mergers & Acquisitions
AFR - Wall Street brokerage Bernstein Research released a
report mid-September suggesting Rio Tinto was a logical
takeover target for Glencore, which has remained in
people's minds. Senior analyst Paul Gait wrote that the key
problems in the mining industry, as identified by Glencore,
included "too much iron ore" but these issues can be fixed
by handing the world's best mining assets to the world's
best management. Glencore is making a pretty strong case
that they, more than anyone else, understand what it will
take to drive value in today's market.

3. Oz Metals
6th Oct 2014
DISCLAIMER
This research report is provided in good faith from sources believed to be accurate and reliable. Terra Studio Pty Ltd directors and employees do
not accept liability for the results of any action taken on the basis of the information provided or for any errors or omissions contained therein.
Readers should seek investment advice from their professional advisors before acting upon information contained herein.
Page 3 / 3
Terra Studio
Copper Producers
Source: SNL
Copper Explorers & Emerging Producers
Source: SNL
Gold Producers
Source: SNL
Gold Explorers & Emerging Producers
Source: SNL
Nickel Sector
Source: SNL
Zinc & Poly-metallic Sector
Source: SNL
For further information, please contact:
JF Bertincourt
m +61 406 998 779
jf@terrastudio.biz