“Think Nickel, think margins, think Western Areas” Western Areas NL Full Year Financials 20 August 2012 1
“Think Nickel, think margins, think Western Areas”
Western Areas NL Full Year Financials 20 August 2012
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This presentation is being furnished to you solely for your information and for your use and may not be copied, reproduced or redistributed to any other person in any manner. You agree to keep the contents of this presentation and these materials confidential. The information contained in this presentation does not constitute or form any part of any offer or invitation to purchase any securities and neither the issue of the information nor anything contained herein shall form the basis of, or be relied upon in connection with, any contract or commitment on the part of any person to proceed with any transaction. You must not take or transmit this presentation or a copy of this presentation into the United States or Japan or distribute it, directly or indirectly, in the United States or Japan or to any US persons. By your acceptance of this document, you acknowledge that you are a not a “U.S. person” for the purposes of the US Securities Act. Neither this document, in whole or in part, nor any copy thereof may be taken or transmitted to any other person. The distribution of this document to other persons or in other jurisdictions may be restricted by law, and persons into whose possession this document comes should inform themselves about, and observe, any such restrictions. Any failure to comply with these restrictions may constitute a violation of the federal securities laws of the United States and the laws of other jurisdictions. The distribution of this presentation in other jurisdictions may be restricted by law, and persons into whose possession this presentation comes should inform themselves about, and observe, any such restrictions. The information contained in this presentation has been prepared by Western Areas NL. No representation or warranty, express or implied, is or will be made in or in relation to, and no responsibility or liability is or will be accepted by Western Areas NL, employees or representatives as to the accuracy or completeness of this information or any other written or oral information made available to any interested party or its advisers and any liability therefore is hereby expressly disclaimed. No party has any obligation to notify opinion changes or if it becomes aware of any inaccuracy in or omission from this presentation. All opinions and projections expressed in this presentation are given as of this date and are subject to change without notice. This document contains forward-looking statements. These statements are subject to certain risks and uncertainties that could cause the performance or achievements of Western Areas NL to differ materially from the information set forth herein, although such information reflects forecasts and projections prepared in good faith based upon methods and data that are believed to be reasonable and accurate as at the dates thereof and although all reasonable care has been taken to ensure that the facts stated herein are accurate and that the forward-looking statements, opinions and expectations contained herein are based on fair and reasonable assumptions. Western Areas NL undertakes no obligation to revise these forward-looking statements to reflect subsequent events or circumstances. Individuals should not place undue reliance on forward-looking statements and are advised to make their own independent analysis and determination with respect to the forecasted periods, which reflect Western Areas NL’s view only as of the date hereof. The information within this PowerPoint presentation was compiled by Mr. David Southam, but the information as it relates to mineral resources and reserves was prepared by Mr. Dan Lougher and Mr. John Haywood. Mr. Southam, Mr. Lougher and Mr. Haywood are full time employees of Western Areas. Mr. Lougher and Mr. Haywood are members of AusIMM and have sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which they are undertaking to qualify as Competent Persons as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr. Southam, Mr. Lougher and Mr. Haywood consent to the inclusion in this presentation of the matters based on the information in the form and context in which it appears. For Purposes of Clause 3.4 (e) in Canadian instrument 43-101, the Company warrants that Mineral Resources which are not Mineral Reserves do not have demonstrated economic viability.
THIS PRESENTATION IS NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE U.S.
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Disclaimer and Forward Looking Statements
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Introduction & Highlights
Financials
Operations
Exploration & Growth Outlook
Nickel Industry
“Western Areas has an enviable track record of exploring, finding, developing and producing highly profitable mines..”
Explore Develop
Produce Sales
Agenda
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Key Financial Takeaways – Full Year
31,102t nickel in ore production averaging 4.9% nickel
Record nickel in concentrate sales 26,280t to Jinchuan and BHP
A$2.43/lb cash cost: Remains best in class in Australia
Cashflow from Operations A$159.3m Demonstrates the ability to WSA to generate operational cash
NPAT of A$40.2m: Revenue significantly impacted by a reduced nickel price and strong AUD:
o Nickel price reduction impacted revenue by A$131.4mm versus FY2011 o Includes one-off KZL nickel acquisition costs of A$3.6m
Demonstrated ability to successfully acquire assets – Kagara nickel which includes the high grade Lounge Lizard deposit
Final partially franked (30%) dividend at 6c per share representing a payout of NPAT ratio of 49% for FY2012
“The overriding difference between FY 2012 and FY 2011 was the weaker nickel price…”
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Financial Highlights
Full Year Highlights ($'000) FY 2011 FY 2012
Mine Production (tonnes Ni) 32,222 31,102
Mill Production (tonnes Ni) 25,663 25,641
Recovery 91% 92%
Sales Volume (tonnes Ni) 27,498 26,637
Cash Costs (US$/lb) 2.11 2.50
Cash Costs (A$/lb) 2.12 2.43
Exchange Rate USD/ AUD 0.99 1.03
Nickel Price (U$/tn) 25,089 17,791
EBITDA ('000) 312,018 186,583
EBIT ('000) 231,991 94,902
NPAT ('000) 134,973 40,181
Cashflow from Operations ('000) 276,235 159,253
Net Cashflow ('000) 143,580 (43,446)
Cash at Bank 208,948 165,502
Dividend (cents) 25.0 11.0
Delivering on Objectives
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Report Card FY2012
Objectives What's Been Delivered
Pay Dividends 5c interim and 6c final dividend
Cashflow from Operations A$159m cashflow, debt reduction and dividends
Profitable through the cycle Weak nickel price, EBITDA A$185m, NPAT $40m
Cash costs below A$2.50/lb A$2.43/lb
Increase resources at Spotted Quoll 130kt nickel reserve
Increase resources at Flying Fox Purchased KZL nickel assets - Lounge Lizard +40kt Ni
New discovery at Forrestania Sunrise - early encouragement
Mill expansion Study complete - awaiting board decision
Tidy up backyard Outokumpu royalty retired
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Financials
Lounge Lizard 10m wide face of 7% Massive Nickel Sulphide
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Income Statement
Commentary (FY 2012)
Ni price down 29% year on year (QP -A$26.4m FY2012) reducing revenue by A$131.4m.
Despite nickel price, EBITDA margins remained strong >50%.
Switch to two underground mines in Feb 2012 – SQ Open Pit was A$1.60/lb
Cost management remained in focus with unit cash costs at $A2.43/lb.
D&A increases in line with higher investment mine development/ capex & KZL nickel purchase.
D&A should stabilise/reduce in FY2013 with increased reserves.
Final dividend declaration of 6c (partially franked) reflects 49% of NPAT returned to shareholders for FY2012.
Earnings Data ($'000) 1H FY 2012 2H FY 2012 FY 2011 FY 2012
Exchange Rate USD/ AUD 1.03 1.03 0.99 1.03
Nickel Price (U$/tn avg) 18,761 18,276 24,000 17,791
Revenue 149,106 181,592 468,659 330,698
EBITDA 96,633 89,950 312,018 186,583
Depreciation & Amortisation 43,819 47,862 80,027 91,681
EBIT ('000) 52,814 42,088 231,991 94,902
Interest Expense ('000) 18,086 19,355 36,721 37,441
Tax ('000) 10,626 6,654 60,297 17,280
NPAT ('000) 24,102 16,079 134,973 40,181
Dividend (cents) 5.0 6.0 25.0 11.0
Earnings per share (cents) 13.4 9.0 75.1 22.4
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Income Statement
$135.0
$40.2
$43.0 $13.1
$10.0 -$1.3 -$11.7 -$16.5
-$131.4
-150
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Act
ual
FY1
1
Tax
Ro
yalt
ies
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Dep
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enu
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Rev
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FY1
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Mill
ion
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WSA NPAT - Actual FY2011 vs Actual FY2012
FY12 NPAT would have matched FY11 if not for the nickel price.
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Cashflow Statement
Commentary (FY 2012)
Cashflow from Operations of A$159.3m
2nd half FY12 produced A$4.6m free cashflow despite a weaker 2nd half nickel price
A$ Ni price down 29% on FY11 -A$131.4m impact.
US$15m for Outokumpu Royalty payout.
Exploration spend of A$33.8m delivers Sunrise and significant resource/ reserve extensions
KZL nickel purchase costs of A$71.1m includes the A$3.1m for ore stockpiles.
Proceeds from financing - draw down of A$45m from ANZ for KZL nickel purchase
Dividend payments reflect 15c final dividend from FY11 and 5c interim dividend for FY12.
Cashflow Statement ($'000) 1H FY 2012 2H FY 2012 FY 2011 FY 2012
Operating Cashflow 64,412 94,841 276,235 159,253
Less:
Exploration (17,860) (15,940) (18,110) (33,800)
FinnAust Investment (4,058) (3,307) (1,964) (7,365)
Acquisition of Mining Interests (1,512) - - (1,512)
Mine Development (38,506) (28,911) (70,664) (67,417)
Capital Expenditure (8,087) (5,625) (13,417) (13,712)
Investment activities (274) (811) (1,999) (1,085)
Outokumpu Royalty Payout (14,926) - - (14,926)
Payment for subsidiary - (71,100) - (71,100)
Proceeds from Share Issues - - 380 -
Proceeds/(Costs) from Financing (319) 44,486 (3,517) 44,167
Dividends Paid (26,962) (8,987) (23,364) (35,949)
Net Cashflow (48,092) 4,646 143,580 (43,446)
Cash at Bank 160,856 165,502 208,948 165,502
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Free Cashflow Waterfall
$143.6
-$43.4
$47.7 $10.0 $8.0 $3.2 -$4.8 -$5.4 -$12.6 -$14.9 -$15.7
-$71.1
-$131.4
-150
-100
-50
0
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Act
ual
FY1
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Fin
anci
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Sale
s (V
ol)
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Min
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ev
Op
Co
sts
Inte
rnat
ion
al In
v
Div
iden
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Ro
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uyo
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Exp
lora
tio
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KZL
Nic
kel
Sale
s (P
rice
)
Act
ual
FY1
2
Mill
ion
s
WSA Cashflow - Actual FY11 vs Actual FY12
Nickel price has driven the changes from FY11 to FY12 – A$131.4m KZL nickel purchase is a one-off item – A$71.1m
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Balance Sheet
Commentary (FY 2012)
Flexible balance sheet with good cash generation
Total Assets continue to grow with mine development and acquisitions
Repaid A$105.5m bond on 2 July 2012 – well flagged to market and strong positioning
Capital Management has plenty of headroom:
ANZ Facility of A$125m – drawn down $45m for KZL nickel purchase
Convertible bond July 2014 – A$110.2m
Convertible bond July 2015 – A$125.0m
FY13 capex/mine development likely to be <A$70m
FY13 exploration around A$20m, with a reduction in regional projects, but full ramp-up around Forrestania
Balance Sheet ($'000) FY 2011 FY 2012
Cash at Bank 208,948 165,502
Receivables 27,719 25,360
Stockpiles & Inventory 30,942 42,121
PP&E 111,683 107,111
Exploration & Evaluation 91,875 133,282
Mine Development 209,454 295,634
Other 11,705 5,958
TOTAL ASSETS 692,326 774,968
Trade & Other Payables 59,791 66,444
Short Term Borrowings 61 162,656
Long Term Borrowings 344,016 256,003
TOTAL LIABILITES 403,868 485,103
SHAREHOLDERS EQUITY 288,458 289,865
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Operations
Summary
Continuous high grade Nickel to 1300m. Open at depth
Resource ore grades increase at depth from 3.9% to 5.8% Nickel
Announced intersection T7: 34.7m @ 8.9% Nickel
Production
FY2012 – 373,726t @ 5.0% nickel for 18.5kt nickel
Low cash cost operation <US$3/lb
Purchase of Kagara Nickel Assets
Combined Total High Grade Resource now stands at around 115,000t of Nickel
Major drilling program commenced at Lounge Lizard for next 6 months
T5/ T6 & T7 down dip extensions cross into Lounge Lizard and remain open at depth
Flying Fox now approaching a 10 year mine life
Purchase includes 300sqkm of tenements adjacent to Forrestania operations
Flying Fox Mine
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Summary
Ore reserve was upgraded in June 2012 by 94% with an exceptional 88% conversion ratio:
3.095mt @ 4.20% containing 131,360t nickel
Remains open at depth
Drilling is ongoing which will result in further conversion of inferred resource to indicated to reserve
Already well over a 10 year mine life
Production
Stage 1 underground first ore delivered ahead of schedule
Ramp up to 10,000tpa nickel in FY 12/13
Mine optimisation study well advanced for potential increase in production up to 15,000tpa nickel
Spotted Quoll Mine
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Concentrator Summary
Current capacity of 550,000tpa of ore
Nickel concentrate output >25,000tpa Ni
Concentrate grades of around 14.0% Ni
14,000t of concentrate storage capacity ($43M value)
Export Infrastructure and Logistics
Access to >1400 sealed shipping containers
Using 25 trucks for concentrate transportation
Shipping contract in place, FOB Esperance Port
Concentrator Expansion
Expansion configured for upgrade to 1mtpa of ore
Some items of infrastructure (crusher) already capable of 1mtpa
Preliminary high grade expansion study (750ktpa) completed
Forestannia Nickel Concentrator
Concentrate Supply
Reliable nickel sulphide concentrate supply dwindling
Quality nickel sulphide is difficult to find
Global nickel grades in decline
Tightness in smelter supply to be experienced from 2013
Laterites and Nickel Pig Iron do not fill the void
Offtake Contracts
Long term offtake to BHP – 12ktpa nickel in conc
New Jinchuan contract signed: o 12 month contract extension o Improved commercial terms o Significant uncommitted offtake beyond 2013
Tender process to commence Sept/Oct 2012
WSA in a unique position being an independent producer
Ability to complete spot/ opportunistic sales
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NOTE: The graph FORRESTANIA – OFFTAKE CONTRACTS is based on Western Areas’ 10 Year Production Targets. These Targets include estimates and assumptions on production rates of existing ore reserves, conversion of existing mineral resources to ore resources and assumptions on potential extensions to existing mineral resources, based on current information. These Production Targets may vary due to future drilling results, nickel prices, costs and market conditions. Refer to Disclaimer and Forward Looking Statement in Presentation
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Global Smelter Demand vs Global Concentrate Supply
Nickel in Concentrate Supply Smelter Demand
Concentrate Supply and Offtake Contracts
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Exploration and Growth Outlook
Exploration Budget of A$20M for FY13, majority to be spent on drilling at Forrestania
120km strike length (900 sq km) of prospective Forrestania Nickel Project, within 500km long nickel province
Drilling Priority within 8km long zone (below). New discovery would access existing mine infrastructure
Recent Sunrise discovery (see next slide)
Short Term – Near Mine Exploration
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New discovery-Sunrise
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WSA’s latest new high grade discovery, 2km from Spotted Quoll and 300m SE of New Morning
Best intersection 4.6m @ 3.7% nickel
Major drilling program underway and results to be announced over next 6 months
WSA owns 19.9% of Mustang Minerals - a Canadian listed nickel and PGM company
WSA has two of 5 board seats, plus provides technical assistance Makwa Nickel/PGE mine in Manitoba – feasibility in progress targeting 5ktpa Ni in concentrate Mayville Copper/Nickel deposit in Manitoba – drilling in progress for open pit resource Potentially significant Palladium & Platinum discovery adjacent to Mayville
WSA is earning a 65% interest with Mustang at East Bull Lake
80km west of Sudbury Highly anomalous Nickel/Copper and Platinum/Palladium in Gabbro intrusion Drill program commenced in 2012
Mayville drill core: 74.7m @ 0.75% Cu & 0.24% Ni East Bull Lake VTEM targeting
Canada – Mustang Minerals
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81% WSA, planning to list on AIM - dependent on market conditions
300km long base metal province in Finland
Numerous nickel/copper/zinc mines & occurrences
12 major project areas, many drilling targets
Geophysics proving very effective in defining targets
Significant results from historic and FinnAust drilling
Major ramp up of drilling has commenced at Tormala & Hammaslahti
Finland – FinnAust Mining PLC Projects
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Short Term < 12 Months
Medium Term 2-5 years
Long Term >5 years
Flying Fox > 10 years – drilling in progress Sunrise drilling results Mill expansion decision Cash costs <US$3.00/lb Strong cashflow Dividends New offtake contract – process begin Sept/ Oct List FinnAust Mining
Spotted Quoll & Flying Fox – 30ktpa Sunrise reserve & production – 5-10ktpa 4th mine from Forrestania (New Morning) Mill expanded 750ktpa First quartile cash costs FinnAust in feasibility Dividends Mustang prod – 5ktpa
Base Case production 40-50ktpa , plus new mines Large disseminated resource potential FinnAust producing Base Metals exposure Dividends Continued exploration upside Independent producer
Growth Outlook
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Jkjjljljlkj Kawana JV
80%
Bullfinch North JV
70%
Sandstone JV 70%
Lake King JV 70%
East Bull Lake JV
65% Cosmic
Boy Resource
Mt Alexander
JV 25%
New Morning
Mt Jewel 25%
Mt Gibb JV 70%
Hatters Hill
Makwa & Mayville Canada
Diggers South
Spotted Quoll
Underground Upgrade
Cosmic Boy Mill
Expansion
Spotted Quoll
Flying Fox
Cosmic Boy Mill
= International = WA Regional = Forrestania
Koolyanobbing
Finland – Nickel
Bioheap Southern
Cross Goldfields -
Other Finland – Copper
The Portfolio
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Sunrise
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Nickel Industry
Market bottom likely reached – current price uneconomic for many, insufficient to bring on supply
Limited sources of good quality future supply for smelters
Nickel Pig Iron constrained due to margin compression
Huge Laterite projects serial underperformers
Capex blowouts
Not meeting production targets
Indonesian ore export ban and tax increase still to bite
Fortunately, not in the business of making predictions
Many analysts tipping next 3 – 6 months for pickup, in conjunction with seasonal demand pickup
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When will the Cycle Turn?
“The current nickel market appears to be ignoring the impending impact of
Indonesian legislation…
“We therefore favour bullish positions in nickel on a 3-6 month forward basis
and in a quarter-four context.”
Citigroup Analysts, 31 May 2012
“We are raising our long-term nickel price from $7.27/lb to $9.5/lb. …. We believe that capex inflation remains a
significant issue for the nickel industry.”
BofA Merrill Lynch, 27 July 2012
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Crisis YearsStainless Steel-Boom:
Asia - Europe - USA
Stainless Steel-Boom:China
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© Heinz H. Pariser Alloy Metals & Steel Market Research
Global Stainless Consumption & Usage
© Heinz H. Pariser, Alloy Metals & Steel Market Research
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China’s future?
Western Areas is:
Australia’s lowest cash cost nickel producer
A proven explorer, developer and operator led by an experienced management team
An S&P ASX 200 index member
Market cap ~ $740 million at current prices
Profitable, even at the current low A$ nickel price
A proven dividend payer, with a strong balance sheet
Australia’s third largest producer of nickel at 31,000 tonnes of nickel mined and 25,000 tonnes of nickel in concentrate produced
No 1 = BHP-B Nickel West and No 2 = Glencore
Employer of approx 500 staff, either directly or through contractors
Into its sixth consecutive year of production, eight consecutive quarter with no downside surprises
First production 26 October 2006
Committed to stable organic growth from the current solid platform
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Powering through the Cycle
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The End
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Appendices
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%
1 T Streeter 14.36
2 Colonial Group 8.58
3 M & A Greenwell 5.45
4 Northwards Capital 3.19
5 Giovanni Santalucia 3.18
6 Sydney Fund Manager 3.02
7 UBS Asset Management 2.82
8 Celeste Funds Management 2.56
9 State Street Corporation 2.44
10 Paradice Asset Management 2.39
11 Antares Asset Management 2.33
12 Concise Asset Management 1.92
13 Independent Asset Management 1.80
14 Vanguard 1.74
15 Mount Kellet 1.70
TOTAL 57.48
Top 15 ShareholdersListings: ASX & TSX Member of S&P ASX 200
Shares on Issue: 179.7M
Options: (varying strike prices >$7.00)
2.0M
Share Price: ~ A$4.00 (August2012)
Market Cap: (undiluted)
A$720 million
Cash: A$165M at 30 June 2012
Introduction – Corporate Summary
$0.00
$2.00
$4.00
$6.00
$8.00
Jul-10 Oct-10 Jan-11 Apr-11 Jul-11 Oct-11 Jan-12 Apr-12 Jul-12
WSA 25 Month Share Price
Closing Share Price
Left to right: David Southam (Exec Director – Corporate), Dan Lougher (Managing Director), Rick Yeates (Non-Exec Director), Terry Streeter (Non-Exec Chairman), Ian Macliver (Non-Exec Director) Julian Hanna (Non-Exec Director), Robin Dunbar (Non-Exec Director) & Joseph Belladonna (Company Secretary)
Proven Depth & Experience
Terry Streeter and Julian Hanna founders of Western Areas
Extensive experience in nickel exploration, mining and processing
Global expertise in project sourcing, exploration and mine development
Strong banking, financial, M&A and corporate governance backgrounds
Involvement with other successful nickel companies (Jubilee Mines)
Solid understanding of Chinese markets, project financing and offtakes
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Board of Directors
WSA operations
WSA concentrate
exports
WSA concentrate to BHP Billiton
Location
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Highlights (June Qtr)
Record Flying Fox production Spotted Quoll hits 10,000tpa nickel rate Cash costs as guided to market A$2.90/lb –
reflects two underground mines 8th quarterly delivered with no downside
surprises $18m free cashflow (all up) excluding $9m
dividend
Highlights (Full Year)
Low cash cost producer A$2.43/lb Mill recovery at 92% Nickel in ore – 31,102t Record nickel in concentrate sold 26,260t Spotted Quoll Underground operating to plan
FY2013 – Preliminary Guidance
Nickel in ore production 26,000t nickel Mill recovery 90% Cash costs to remain stable below $3.00/lb Dividends
Another Strong Quarter
FY
Tonnes Mined Sep Qtr Dec Qtr Mar Qtr Jun Qtr Total
Flying Fox
Ore Tonnes Mined Tn's 95,647 100,647 81,143 96,289 373,726
Grade Ni % 4.5% 4.9% 5.3% 5.3% 5.0%
Ni Tonnes Mined Tn's 4,258 4,920 4,278 5,097 18,553
Spotted Quoll - Tim King Pit
Ore Tonnes Mined Tn's 59,955 71,406 57,204 - 188,565
Grade Ni % 5.7% 4.8% 4.0% 0.0% 4.8%
Ni Tonnes Mined Tn's 3,400 3,455 2,280 - 9,135
Spotted Quoll - Underground
Ore Tonnes Mined Tn's - 5,996 23,261 42,574 71,831
Grade Ni % 0.0% 3.3% 4.5% 5.1% 4.8%
Ni Tonnes Mined Tn's - 197 1,044 2,173 3,414
Total - Ore Tonnes Mined Tn's 155,602 178,049 161,608 138,863 634,122
Grade Ni % 4.9% 4.8% 4.7% 5.2% 4.9%
Total Ni Tonnes Mined Tn's 7,658 8,572 7,602 7,270 31,102
Tonnes Milled and Sold Sep Qtr Dec Qtr Mar Qtr Jun Qtr Total
Ore Processed Tns 134,412 138,360 131,748 143,148 547,668
Grade % 5.1% 5.2% 5.1% 4.9% 5.1%
Ave. Recovery % 93% 92% 93% 90% 92%
Ni Tonnes in Concentrate Tns 6,413 6,632 6,276 6,320 25,641
Ni Tonnes in Concentrate Sold Tns 4,751 6,487 8,154 6,888 26,280
Ni Tonnes in Ore Sold Tns 357 - - - 357
Total Nickel Sold Tns 5,108 6,487 8,154 6,888 26,637
Stockpiles Sep Qtr Dec Qtr Mar Qtr Jun Qtr
Ore Tns 109,969 146,109 175,971 171,682
Grade % 4.8% 4.5% 4.2% 4.4%
Concentrate Tns 19,903 19,375 11,346 7,243
Grade % 14.3% 14.1% 14.3% 14.3%
Contained Ni in Stockpiles Tns 8,132 9,300 9,013 8,586
Cash Cost Ni in Con (***) A$/lb 2.20 2.15 2.48 2.90 2.43
2011/2012
2. Low Grade disseminated sulphide
Mature nickel camps contribute ~45% global production
NO MAJOR NEW DISCOVERIES
1. Conventional Nickel Sulphide
4. Chinese Nickel Pig Iron
Chinese nickel pig iron, 15% global production. Announced cut backs
ENERGY INTENSIVE, HIGH COST
3. Nickel Laterite
Laterite & Ferro Nickel contribute >40% global production
HIGH CAPEX, HIGH ENERGY COST
Increasing reliance on low grade and low quality nickel sulphide production.
HIGH CAPEX, MODERATE ENERGY
Increasing energy intensity and production cost
Increasing energy intensity and production cost
Energy Intensity
36