WEEKLY

29th July 2013

WWW.LCC.ASIA

Australian Copper Gold Report

Are Copper and Gold Longs Winning?

Global Economy Fundamentals
Precious Metals & Energy Last Close Price YTD Change 4-Week Change Week Change Base Metals Last Close Price YTD Change 4-Week Change Week Change

Gold Silver Platinum Palladium Crude Oil Gas H.Hub Uranium AUD/USD EUR/USD GBP/USD RMB/USD INR/USD YEN/USD CAD/USD ZAR/USD CHF/USD

(US$/oz) (US$/oz) (US$/oz) (US$/oz) (US$/barrel)

(US$/m btu)

(US$/lb)

1333 20 1428 723 105 3.59 35 0.92 1.33 1.54 0.16 0.0169 0.0102 0.97 0.10 1.08

-20% -34% -7% 3% 14% 7% -20% -11% 0% -5% 2% -8% -12% -3% -14% -1%

9% 3% 7% 9% 8% 1% -13% 1% 2% 1% 0% 0% 1% 2% 1% 2%

0% -3% -1% -4% -2% -2% -5% 0% 1% 0% 0% 1% 1% 0% 0% 1%

Copper LME Cobalt Molybdenum Nickel Lead Zinc Tin

Global Index

(US$/lb) (US$/lb) (US$/lb) (US$/lb) (US$/lb) (US$/lb) (US$/lb)

3.13 12.47 9.21 6.27 0.93 0.83 8.76 5042.0 15558.8 9620.1 6554.8 2010.9 14130.0 3968.8 8244.9 21969.0

-13% 8% -22% -19% -12% -10% -18% 8% 19% 14% 11% -11% 36% 9% 8% -3%

2% -16% -13% -2% -3% 8% -2% 5% 4% 6% 5% 2% 3% 6% 4% 6%

-1% -6% 2% -2% -3% -6% -1% 1% 0% 0% -1% 0% -4% 1% -1% 3%

Exchange Rates

Last Close Price YTD Change 4-Week Change

Week Change

Last Close Price YTD Change

4-Week Change

Week Change

ASX 200 Dow Jones Industry Average NYSE FTSE 100 Shang Hai Exchange Nikkei 225 CAC 40 German DAX Hang Seng Index

1700
1600 1500 1400 1300

Gold Price 3-Month Performance

Gold Price US$/oz Gold Price A$/oz

400 300 200 100

LME Copper Daily Price and Volume Volume ('000 lot) Price (US$/lb) Price (A$/lb)

LME Copper Daily Price and Stocks 3.80 3.60 3.40 3.20 3.00 400

800
600

Stocks ('000 t)
Price (A$/lb)

Price (US$/lb)

3.80
3.60 3.40 3.20

1200 Apr 13

May 13

Jun 13

Jul 13

0 Apr 13

May 13

Jun 13

Jul 13

200 Apr 13

3.00
May 13 Jun 13 Jul 13

5800
5400 5000

S&P/ASX 300 Index 3-Month Performance (XJO)

COMEX Copper Daily Price and Volume

200 150 100 50 Volume ('000 lot) Price (US$/lb) 3.80 3.60 3.40 3.20 3.00 May 13 Jun 13 Jul 13

100 80

COMEX Copper Daily Price and Stocks Stocks ('000 t) Price (US$/lb)

3.80 3.60

60 40 20 Apr 13
May 13 Jun 13 Jul 13

3.40 3.20 3.00

4600 Apr 13

May 13

Jun 13

Jul 13

0 Apr 13

10000 8000

S&P/ASX All Ordinaries Gold Index (XGD)

100

SHFE Copper Daily Price and Volume Volume ('000 lot) Price (US$/lb)

4.50

100 80 60 40 20 Apr 13

SHFE Copper Daily Price and Stocks Stocks ('000 t) Price (US$/lb)

4.50 4.30

6000 4000
2000 0 Jan 08 Dec 08 Nov 09 Oct 10 Sep 11 Aug 12 Jul 13

80
60 40

4.30
4.10 3.90

4.10
3.90 3.70 3.50 May 13 Jun 13 Jul 13

20
0 Apr 13

3.70
3.50

May 13

Jun 13

Jul 13

Source: Capital IQ, COMEX, LME, SHFE, Thomson Reuters, LCC research Note: the SHFE copper price is based on the LME 3-month price and includes CIF premium, tax and duty.

IMPORTANT DISCLAIMER
This report has been prepared by Lincoln Crowne & Company Pty. Limited ("LCC"). The research is based on information obtained from sources believed to be accurate and reliable. LCC does not guarantee the accuracy, reliability, completeness or suitability of any such information and makes no warranty, guarantee or representation, expressly or impliedly about this research. LCC accepts no obligation to correct or update the information. No opinion or recommendation is made within this research. This report is not intended to be, nor should it be relied on, as a substitute for professional advice. This report should not be relied upon as the sole basis for any investment decision or planning, and LCC does not accept any responsibility on this basis for actions made.

Page 1 / 4

WEEKLY
29th July 2013

WWW.LCC.ASIA

Australian Copper Gold Report

Markets
Despite the gold ETF sales, the net position of managed money in gold futures and options has increased over the last few weeks. For copper, the overall net short position is rapidly losing significance. Despite receiving some relief from weaker currencies in Australia and South Africa, miners are slashing costs, placing assets for sale and slowing new projects to appease investors. Moderating Chinese demand triggered US$33 billion in write-downs in the past year and sparked management sweep-outs. Highlights from a strategic metals report on copper include: capital costs increased by an average 15% per year over the past 20 years; cash operating costs tripled over the past ten years to an average of almost US$1.50/lb in 2012; despite discovering 100 copper deposits between 1998 and 2012, with almost 396 million tonnes of copper metal, mining companies have only converted one-tenth of these deposits into reserves. The Reserve Bank of India has added new restrictions on gold imports in an attempt to curb demand for the metal and reduce the countrys account deficit. The countrys current account deficit is nearly 5% and gold is a major driver behind that figu re, second only to oil. Indian banks will now be required to set aside 20% of all imported gold for export purposes. According to the World Gold Council, China is set to become the worlds top gold consumer, with demand expected to reach 1,000 tonnes. This compares with Indias average yearly imports of 963 tonnes. The major drivers are investment and jewellery. Opposition Energy and Resources spokesman Ian Macfarlane has confirmed the Coalition will scrap the Minerals Resource Rent Tax if it wins the federal election. The Western Australian Chamber of Mines and Energy reported a 22% drop in total exploration spending over the June quarter to A$1.1 billion. It represented the third consecutive quarter of declines for mineral exploration, and a 14% decline yoy. Unemployment and underemployment among Australian geoscientists has reached its worst level since the global financial crisis, according to the Australian Institute of Geoscientists. The AIG said unemployment and underemployment in the sector rose 19.2% over the June quarter to 22% due to an ongoing jobs bite in exploration and mining. AIG indicated the results demonstrate a continuing trend that first became evident in September 2011 and began to accelerate in June 2012 as exploration and mining for both mineral and energy resources in Australia began to decline. Australian resources and mining professionals earn the second-highest wages globally, according to a recruitment researcher survey. Norway was found to pay the highest resources wages with an average base salary of US$158,700 followed by Australia (US$137,100), Canada (US$101,800), Germany (US$99,100) and the United States (US$96,900).

Copper Producers
Ticker Company Name Open Close High Low Price Price Price Price Weekly Change Market Ore 52 Week Cash EV Cap EV/EBITDA Reserve Range (A$m) (A$m) (A$m) (mt Cu) EV/Ore Reserve (US/lb) Project C1 Costs C3 Costs (US$/lb) (US$/lb)

ABY Aditya Birla Minerals 0.39 0.39 0.40 0.39 -- 0.0% 122 100 23 0.5x 0.473 2 AOH Altona Mining 0.14 0.17 0.17 0.14 17.9% 87 23 87 NM 0.061 58 DML Discovery Metals 0.17 0.17 0.18 0.16 -- 0.0% 83 21 215 NM 0.191 46 HGO Hillgrove Resources 0.07 0.07 0.08 0.06 -- 0.0% 71 17 104 4.9x 0.125 34 IVA Inova Resources 0.18 0.18 0.19 0.17 -2.8% 127 38 90 NM 0.080 46 OZL OZ Minerals 4.23 4.13 4.67 4.06 -2.4% 1252 659 593 1.9x 0.748 32 PNA PanAust 1.89 2.11 2.18 1.84 11.6% 1280 74 1352 4.4x 1.127 49 SFR Sandfire Resources 5.67 5.64 5.83 5.46 -0.5% 878 77 1086 6.6x 0.438 101 SRQ Straits Resources 0.01 0.01 0.01 0.01 -- 0.0% 14 57 65 5.0x 0.178 15 TGS Tiger Resources 0.21 0.21 0.22 0.20 -- 0.0% 142 19 129 3.3x 0.303 17 Source: Capital IQ, ASX announcements, LCC research. C1 and C3 costs as reported in last quarter, except for TGS, LCC estimate.

Nifty Kylylahti Boseto Kanmantoo Osborne Prominent Hill Phu Kham DeGrussa Tritton Kipoi

2.32 1.30 3.45 3.15 2.85 1.95 1.45 1.37 2.13 1.07

N/A 2.31 N/A 4.42 4.27 3.56 2.12 2.21 2.20 1.35

IMPORTANT DISCLAIMER
This report has been prepared by Lincoln Crowne & Company Pty. Limited ("LCC"). The research is based on information obtained from sources believed to be accurate and reliable. LCC does not guarantee the accuracy, reliability, completeness or suitability of any such information and makes no warranty, guarantee or representation, expressly or impliedly about this research. LCC accepts no obligation to correct or update the information. No opinion or recommendation is made within this research. This report is not intended to be, nor should it be relied on, as a substitute for professional advice. This report should not be relied upon as the sole basis for any investment decision or planning, and LCC does not accept any responsibility on this basis for actions made.

Page 2 / 4

WEEKLY
29th July 2013

WWW.LCC.ASIA

Australian Copper Gold Report

Emerging Copper Companies

Ticker Company Name Open Close High Low Price Price Price Price Weekly Change Mineral Market Cap 52 Week Cash EV Resource (A$m) Range (A$m) (A$m) (mt Cu) EV/Mineral Resource (US/lb) Project C1 Costs (US$/lb) Capex (US$m)

AVI Avalon Minerals 0.02 0.02 0.02 0.00 13.3% 10 2 2 0.610 0.1 Viscaria AVB Avanco Resources 0.07 0.09 0.09 0.07 18.1% 95 7 53 0.762 2.8 Antas/Pedra Blanca BTR Blackthorn Resources 0.29 0.29 0.32 0.26 -- 0.0% 48 29 19 1.000 0.8 Mumbwa FND Finders Resources 0.24 0.24 0.25 0.23 -- 0.0% 101 3 99 0.205 20 Wetar HAV Havilah Resources 0.30 0.30 0.31 0.30 -- 0.0% 36 7 23 0.623 1.5 Kalkaroo HCH Hot Chili 0.40 0.44 0.45 0.40 10.0% 133 25 117 0.920 5.2 Productora MMC Marengo Mining 0.02 0.02 0.03 0.02 4.5% 26 6 77 0.806 3.9 Yandera MNC Metminco 0.02 0.02 0.02 0.02 -- 0.0% 30 15 15 6.538 0.1 Los Calatos RXM Rex Minerals 0.53 0.59 0.65 0.53 11.3% 111 34 26 2.000 0.5 Hillside ROL Robust Resources 0.22 0.25 0.26 0.21 14.0% 26 23 -2 0.077 -1.2 Andash YTC YTC Resources 0.19 0.18 0.20 0.18 -5.3% 47 16 48 0.091 22 Nymagee Source: Capital IQ, ASX announcements, LCC research. C1 costs and capex as estimated and announced by the respective companies.

0.65 1.10 1.49 1.07 N/A 1.35 n/a 1.09 1.20 N/A N/A

130 50 377 167 80 600 1800 1500 900 96 N/A

ASX Company News

OZ Minerals (ASX: OZL) production decreased to 17,379 tonnes of copper (-15% qoq) and 31,018 oz of gold (-2% qoq) for the June quarter due to lower head grade of 0.84% Cu (-15% qoq). C1 and C3 costs increased respectively to US$1.95/lb Cu (+5% qoq) and US$3.56/lb Cu (+10% qoq). PanAust (ASX: PNA) production increased to 15,483 tonnes of copper (+13% qoq) for the June quarter due to higher head grade of 0.51% (+11%). C1 and C3 costs increased to US$1.45/lb Cu (+5% qoq) and US$2.12/lb Cu (+10% qoq). Ban Houayxai produced 28,712 oz of gold at C1 costs at US$603/oz and total costs of only US$757/oz (11% and 26% reduction respectively on March quarter performance). Norton Gold Fields (ASX: NGF) gold production for the June quarter was slightly lower at 41,464 oz, at C1 costs of A$1,029/oz. This was a slight improvement on the March quarter, where the company recorded C1 costs of A$1,033/oz but produced 44,053 oz. Oceana Gold Corporation (ASX: OGC) reported total gold production of 68,353 oz at cash costs of US$682/oz. At Didipio, cash costs on a by-product basis were negative (US$586/oz) on gold sales of 11,086 oz and copper sales of 5,073 tonnes. In New Zealand, cash costs were US$918/oz on gold sales of 59,620 oz. Perseus Mining (ASX: PRU) produced 47,565 oz (-17% qoq) for the June quarter at cash costs of US$1,181/oz and all-in site costs of US$1,405/oz. Reed Resources (ASX: RDR) produced 12,918 oz (+42% qoq) at cash costs of A$1,642/oz (-5% qoq). RDR has repaid Credit Suisse all amounts owing under the A$19 million debt facility established in November 2012 and Credit Suisse has released its security over the Reed group. RDR also realised $27m on closure of its hedge book. Cash as of 30 June 2013 totalled A$19 million. Saracen Mineral Holdings (ASX: SAR) produced record production of 37,259 oz (+2% qoq) at cash costs of A$824/oz (-15% qoq). Mark to market value of the hedging is A$45.8 million (net of costs) assuming a spot price of A$1,351/oz. Cash and gold holdings at quarter end totaled A$21 million. St Barbara (ASX: SBM) increased gold production by 24% qoq to 107,363 oz at cash costs of A$958/oz (-1% qoq). At 30 June 2013, SBM had A$129 million cash at bank and A$325 million of interest bearing liabilities. Havilah Resources (ASX: HAV) shareholders will meet on August 28 to vote on the removal of one of its existing directors and installing three others. Shareholders Rockland Pty Ltd (Peter Laurance) and Gregorach Pty Ltd (Warwick Grigor) hold a 5.88% stake in Havilah and have called for a general meeting of shareholders to remove current executive director Christopher Giles and elect Ross Fardon, Peter Reeve and Ian Lawrence as directors. Mr Johnson, Executive Chairman and directors Christopher Giles and Kenneth Williams have informed shareholders they oppose all the resolutions.

IMPORTANT DISCLAIMER
This report has been prepared by Lincoln Crowne & Company Pty. Limited ("LCC"). The research is based on information obtained from sources believed to be accurate and reliable. LCC does not guarantee the accuracy, reliability, completeness or suitability of any such information and makes no warranty, guarantee or representation, expressly or impliedly about this research. LCC accepts no obligation to correct or update the information. No opinion or recommendation is made within this research. This report is not intended to be, nor should it be relied on, as a substitute for professional advice. This report should not be relied upon as the sole basis for any investment decision or planning, and LCC does not accept any responsibility on this basis for actions made.

Page 3 / 4

WEEKLY
29th July 2013

WWW.LCC.ASIA

Australian Copper Gold Report

Emerging Gold Companies

Ticker Company Name Open Price Close Price High Price Low Price Weekly Change - 52 Market Cash EV Reserves EV/Reserves Week Cap (A$m) (A$m) (A$m) (moz) (US$/oz) Range Project Name C1 Costs Capex (US$/oz) (US$m)

AZM BAB CAS DRM GRY IDC KGD MDI MUM PGI PIR PVM PXG

Azumah Resources Bullabulling Gold Crusader Resources Doray Minerals Gryphon Minerals Indochine Mining Kula Gold Middle Island Resources Mount Magnet South PanTerra Gold Papillon Resources PMI Gold Phoenix Gold

0.03 0.03 0.26 0.58 0.15 0.05 0.08 0.11 0.01 0.10 1.03 0.36 0.18

0.04 0.04 0.22 0.61 0.20 0.06 0.09 0.15 0.01 0.10 1.15 0.40 0.19

0.04 0.04 0.26 0.64 0.20 0.07 0.09 0.15 0.01 0.11 1.20 0.42 0.19

0.03 0.03 0.22 0.58 0.15 0.05 0.08 0.11 0.01 0.09 1.03 0.35 0.18

12.5% 12.1% -13.7% 6.1% 33.3% 7.7% 11.1% 38% 0.0% 5.3% 11.2% 12.4% 8.6%

12 13 28 87 80 47 11 18 7 76 386 165 46

3 2 1 32 54 4 5 6 2 2 62 117 16

9 2 27 55 26 44 6 12 5 74 325 49 30

0.4 2.4 1.6 0.3 1.1 1.1 0.8 0.3 0.3 0.6 3.0 2.3 0.7

19 1 15 197 22 36 7 35 17 106 97 19 38

Wa Bullabulling Borborema Andy Well Banfora Mt Kare Woodlark Island Samira Hill Kirkalocka Las Lagunas Fekola Obotan Castle Hill

700 843 558 592 774 800 730 N/A 1142 307 580 626 756

144 294* 169 53* 208 218 160 1.3 33* 83 292 297 118*

Source: Capital IQ, LCC research. C1 costs and capex as estimated and announced by the respective companies. Note: * Expenditure cost in A$ converted to US$ using an exchange rate of 0.90.

Mergers & Acquisitions

Chinese government-backed mining house MMG (HKEx: 1208) says it continues to enjoy a mandate to acquire assets in the resources sector, with recent weakness across the industry opening up opportunities priced closer to the bottom of the market. Norton Gold Fields (ASX: NGF) has declared its takeover offer for Kalgoorlie Mining Company unconditional, with the company receiving acceptances representing 84.85% of the companys shares and 55.05% of KMCs listed options. The KMC board has unanimously recommended that remaining security holders accept Nortons offer without delay in the absence of a superior proposal.

Gold Producers
Ticker Company Name Open Price Close Price High Price Low Price Weekly Change - - - Market 52 Week Cash Debt Cap (A$m) Range (A$m) (A$m) EV Ore Reserve EV/Reserve C1 Costs C3 Costs EV/EBITDA (A$m) (moz) (US$/oz) (US$/oz) (US$/oz)

ANG* ASR* BEZ* CCU EVN EDV* FML GDO KCN KRM LSA MML MOY NCM NGF NST OGC* PRU RDR RED RMS RRL RSG SAR SBM SLR TAM TBR TGZ* TRY UML

AngloGold Ashanti Alacer Gold Corp Besra Gold Cobar Consolidated Resources Evolution Mining Endeavour Mining Corp Focus Minerals Gold One International Kingsgate Consolidated Kingsrose Mining Lachlan Star Medusa Mining Millennium Minerals Newcrest Mining Norton Gold Fields Northern Star Resources OceanaGold Corporation Perseus Mining Reed Resources Red 5 Ramelius Resources Regis Resources Resolute Mining Saracen Mineral Holdings St Barbara Silver Lake Resources Tanami Gold Tribune Resources Teranga Gold Corp Troy Resources Unity Mining

14.54 2.64 0.06 0.16 0.74 0.62 0.01 0.15 1.70 0.45 0.29 1.93 0.35 11.55 0.13 0.79 1.69 0.59 0.04 0.14 3.49 0.74 0.13 0.68 0.77 0.06 1.85 0.67 1.49 0.07

14.53 16.09 2.70 2.99 0.06 0.06 0.18 0.21 0.84 0.88 0.76 0.85 0.01 0.01 0.22 0.23 1.71 1.88 0.40 0.46 0.25 0.29 2.21 2.54 0.40 0.42 12.41 13.05 0.15 0.15 0.87 0.90 1.78 1.87 0.59 0.69 0.06 0.06 0.16 0.18 3.41 3.69 0.83 0.86 0.16 0.17 0.53 0.71 0.79 0.89 0.06 0.07 1.82 1.90 0.68 0.72 1.49 1.60 0.07 0.08

14.43 2.55 0.05 0.16 0.74 0.61 0.01 0.15 1.66 0.39 0.25 1.93 0.33 11.50 0.13 0.79 1.67 0.56 0.04 0.14 3.38 0.73 0.12 0.51 0.76 0.06 1.60 0.66 1.40 0.06

-0.1% 2.2% 0.6% 12.5% 13.6% 22.8% 0.0% 46.7% 0.6% -10.1% -13.8% 14.5% 13.6% 7.4% 16.0% 9.5% 5.0% -0.8% 36.4% 10.7% -2.3% 11.5% 24.0% -22.2% 2.6% -1.6% -1.6% 2.2% 0.0% 7.5%

5582 775 22 59 591 313 119 313 259 134 25 417 795 9509 125 367 522 268 31 168 52 1690 548 92 256 299 36 91 168 245 51

612 245 4 3 7 82 114 37 42 1 3 9 5 97 56 58 18 35 19 12 43 8 177 21 129 11 10 14 51 41 28

3368 8338 63 593 43 61 18 74 107 691 195 426 11 16 70 346 173 391 6 139 26 48 0 409 54 845 3203 12615 45 114 12 321 216 719 0 233 0 12 23 180 4 13 0 1682 69 440 22 93 325 452 14 302 44 70 14 91 79 196 0 204 0 23

4.3x 2.3x 2.6x N/M 2.3x 3.6x N/M 11.1x 2.7x 5.8x N/M 6.6x N/M 7.0x 4.6x 5.7x 2.9x 2.0x 2.4x N/M 0.4x 10.3x 1.9x 2.3x 1.8x 4.8x 35.9x 1.8x 0.8x 2.2x 1.7x

74.1 5.0 0.1 0.4 3.1 2.5 0.5 2.7 2.6 0.0 0.1 0.6 0.7 87.3 1.1 0.3 3.6 4.0 0.8 0.7 0.6 3.1 4.4 1.1 5.7 1.8 0.4 0.2 1.7 0.6 0.4

101 107 532 169 197 154 27 116 133 NM 316 647 1125 130 91 1123 178 52 15 229 21 490 89 76 72 152 157 358 107 295 57

910 932 793 N/A 826 809 1709 1047 1051 6445 1239 296 685 675 926 581 682 1181 1642 973 968 524 747 742 862 657 1750 401 535 804 881

1147 N/A 1330 N/A 1284 975 1765 1246 N/A N/A N/A N/A 844 936 1181 780 1000 1405 1700 1333 N/A N/A 963 1087 N/A 1199 1793 N/A N/A N/A N/A

Source: Capital IQ, Goldnerds, LCC research. Assumption: A$/US$ exchange rate of 0.90. Note: * These stocks are not primarily listed on the ASX. Prices, market cap and multiples are based on their primarily listed market quote.
IMPORTANT DISCLAIMER
This report has been prepared by Lincoln Crowne & Company Pty. Limited ("LCC"). The research is based on information obtained from sources believed to be accurate and reliable. LCC does not guarantee the accuracy, reliability, completeness or suitability of any such information and makes no warranty, guarantee or representation, expressly or impliedly about this research. LCC accepts no obligation to correct or update the information. No opinion or recommendation is made within this research. This report is not intended to be, nor should it be relied on, as a substitute for professional advice. This report should not be relied upon as the sole basis for any investment decision or planning, and LCC does not accept any responsibility on this basis for actions made.

Page 4 / 4