Pausing for breath... ASX top 100 miners

December 2010 Introduction

Welcome to the third edition of Ernst & Young’s ASX top 100 miners, our annual analysis of the 100 largest miners by market capitalization listed on the Australian Securities Exchange (ASX). 2010 has seen the ASX remain one of the most attractive capital markets for mining companies, leading the global mining sector by volume, with 41 new listings1 and ranking fourth globally in terms of capital raised during the period. More broadly, improvements in conditions in the Australian mining sector over the last 12 months has seen market capitalization of the ASX top 100 miners rise 19% on the prior year. This coincided with a strengthening in balance sheets as a result of increased cash holdings and a reduction in total debt. Over the next 12 months we can expect to see those capital rich ASX top 100 miners considering options such as acquisition, consolidation, expansion, or dare we say it, returning capital to shareholders. These investment decisions however, will be impacted by the final minerals resource rent tax (MRRT) framework given its potential valuation impact on companies with coal and iron ore assets. We do of course expect macro events in the coming year, such as the Chinese economy, carbon pricing and the outcome of the European debt crisis to also impact the ASX top 100 miners. I trust you will enjoy this analysis, which aims to provide you with an understanding of the size and scale of ’s top performing miners, as well as sharing insights on the leading commodities and issues driving opportunities in the sector.

Paul Murphy Asia Pacific Mining and Metals Transactions Leader

About this report This publication provides an analysis of the 100 largest miners listed on the ASX at 1 October 2010 and is produced every year at the close of the reporting period. Debt and cash balances have been calculated on financial statements with a balance date of 30 June 2010. All figures throughout this report are sourced from Bloomberg Finance LP at 1 October 2010 and contrasted against figures sourced at 1 October 2009. These dates have been used to ensure the market data incorporates all recent financial reporting and reflects true market trends. This analysis excludes selected international companies with minority listings on the ASX, such as Anglogold Ashanti and Newmont Mining Limited. All financials within the report are recorded in Australian dollars unless otherwise specified.

1 Based on the nine months prior to 30 September 2010 ii Pausing for breath ASX top 100 miners Snapshot

Despite an overall annual improvement • 36 of the ASX top 100 miners saw an AIM, ASX and TSX miners series in market capitalization, continued increase in market capitalization in This paper complements our series of uncertainty arising from global economic excess of 100% volatility, the recent Federal election and global papers that provide an analysis • Balance sheets have strengthened of AIM, ASX and TSX listed mining the proposed mining tax in Australia, with total debt of the ASX top 100 companies. The papers explore the contributed to a stalling in the market miners totalling $47b, 41% lower on recovery of mining companies value of the ASX top 100 miners over the the prior year following the global financial crisis past six months. This uncertainty, • Cash holdings were up by 26% to $31b and its impacts on their balance coupled with a preceding strong run-up resulting in net debt totalling $16b sheets and market position. in value in the first six months has resulted in a somewhat cautionary (a reduction of $39b for the ASX top To view these papers, please visit environment, driving a disconnect 100 miners on the prior year) www.ey.com/miningandmetals between current market values and • The total debt to market capitalization fundamentals, especially when viewed ratio of the ASX top 100 miners has in the longer-term. decreased to 9% from 19% In the face of improving fundamentals, • Buoyant gold prices saw gold miners in we do not expect the relative period of the ASX top 100 miners have an calm that the ASX top 100 miners have especially prosperous year with an experienced during the past six months average increase in market to continue. capitalization of 218%, an increase in cash levels of 104% and total debt to The points below provide a snapshot of market capitalization levels steady at 5% the key findings in this report: • Investment in new production capacity • There has been some movement resulted in increased total debt and with 16 changes to the ASX top 100 falling cash levels for coal companies — miners list including nine entries by a stark contrast to other ASX top 100 gold companies miners. This has been somewhat • The total market capitalization of the mirrored by iron ore miners, though ASX top 100 miners increased by 19% higher iron ore prices have resulted in to $495b from $417b greater cash levels than coal miners2 • Over the past six months, the market • Current estimates by the Australian value of the ASX top 100 miners fell Bureau of Statistics for 2010/2011 slightly from $497b at the end of mining investment is $50b March to $495b at the start of October

2 Coal numbers may have been impacted by new entrant, Aston Resources, which has $552m in total debt, accounting for approximately 44% of total coal company debt.

Pausing for breath ASX 100 miners 1 Profile of an ASX top 100 miner

2010 has seen the ASX top 100 miners emerge as an The average ASX top 100 miner (excluding BHP Billiton and operationally efficient group of companies with a focus on ) has: margin improvement and cost reduction. The group as a whole • A market capitalization of $1.51b outperformed the market, achieving 19% growth over the period, compared to the 1% increase in the ASX All Ordinaries Index. • Cash holdings of $121m • Total debt of $102m • Net cash of $19m

Figure 1: Size of the ASX top 100 miners by Figure 2: ASX top 100 miners by primary commodity market capitalization at 1 October 2010 (by number of companies)

5% 5% 6% 13% 6% Base metals 13% Coal A$200-250m 7% Copper 26% A$250-500m 4% Diversified A$500m-1b 7% Gold 29% A$1-5b 12% Iron ore A$5b+ 13% PGM Nickel 27% 27% Uranium Other

Figure 3: ASX top 100 miners by primary commodity Figure 4: ASX top 100 miners by primary commodity (by market capitalization) (market capitalization) — refer to ‘other’ percentage in Figure 3

3% 4% 6% 23% Coal 4% 28% Copper 3% Gold Iron Ore Diversified 6% PGM Other 17% Nickel Uranium 72% Base metals 34% Other

Source: Ernst & Young, Bloomberg Finance LP

2 Pausing for breath ASX top 100 miners Getting the house in order

“The analysis tells the While it is clear the ASX top 100 miners Following the highs reached in February are in better shape than a year ago, the and March, the market eased back tale of two distinct market seems to be pausing for breath as through the middle of the year based on periods — the first saw it attempts to deal with the uncertainty fears of a double-dip recession in the US a sharp upswing off the created by the proposed changes to and Europe, coupled with the possible Australian resource taxation, the slowdown of ’s economy and the back of improving tentative global recovery and the prior mentioned domestic uncertainty. European debt crisis. commodity prices and The Baltic Dry Index, a lead indicator, conditions, while the 2010 has been a year of change, with saw sentiment plummet in late June/July, the first four to five months seeing followed by a rapid recovery. However, second has seen the commodity and equity prices rebound while the mining sector has recovered market pause for breath.” on strong global sentiment. There (particularly commodity and equity appeared to be a disconnect developing prices), it has not regained the highs Scott Grimley between market fundamentals and price. reached earlier in the year. Oceania Mining & Metals Leader

Figure 5: Baltic Dry Index performance

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3,000 Baltic Dry Index Dry Baltic 2,500

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1/10/20091/11/20091/12/20091/01/20101/02/20101/03/20101/04/20101/05/20101/06/20101/07/20101/08/20101/09/20101/10/2010

Source: Ernst & Young, Bloomberg Finance LP

Pausing for breath ASX 100 miners 3 At the end of March 2010, the ASX top 100 miners had a Movements combined market capitalization of $497b which remained steady at the start of October at $495b. This disconnect now There were significant changes over the period for the seems to be moving in the other direction, with lower equity ASX top 100 miners in both the composition and market prices despite better market fundamentals. capitalization benchmark for entry. There were 16 new entrants and the market capitalization threshold increased by A driving factor behind this disconnect in the Australian market 50% to $200m. Those leaving the list were either acquired, is the residual uncertainty resulting from the Government’s merged into new entities, delisted or surpassed in terms announcement in May of this year, of its intentions to introduce of market capitalization. a “resources super profits tax” that would have had broad application to mining companies operating in Australia. This saw The gold price reached US$1,319 per ounce on the combined market value of many miners adversely impacted. 1 October 2010, an increase of 32% on the previous year, and contributed to growth in market capitalization with nine There is continued uncertainty about the introduction of the new entries by gold companies. MRRT (and the extended petroleum resource rent tax for that matter) and the design if it is introduced.

Figure 6: Movements within the ASX top 100 miners*

Entries Exits Entry rank ASX Code Company Commodity Rank ASX Company Commodity Exit reason last Code 26 AZT Aston Resources *New listing Coal year 48 RRL Regis Resources Limited Gold 5 LGL Lihir Gold Limited Gold Acquired by 51 IAU Intrepid Mines Limited Gold and subsequently delisted 59 AMX Ampella Mining Limited Gold 11 FLX Felix Resources Coal Acquired by 69 DML Discovery Metals Limited Base metals Limited Yanzhou Coal Mining Company and 73 GRY Gryphon Minerals Limited Gold subsequently delisted 74 CPL Coalspur Mines Limited Coal 16 SGX Gold Merged with 78 SAR Saracen Mineral Holdings Limited Gold Limited and subsequently delisted 81 ADU Adamus Resources Limited Gold 19 CNT Centamin Egypt Gold Moved listing to 84 MOL Moly Mines Limited Iron ore Limited AIM and subsequently delisted 85 KRM Kingrose Mning Limited Gold 36 MOO Monto Minerals Mineral Fell out of top 100 91 BDR Beadell Resources Limited Gold Limited sands 93 RMS Ramelius Resources Limited Gold 60 DYL Deep Yellow Limited Gold, Fell out of top 100 97 IOH Iron Ore Holdings Limited Iron ore Uranium 99 MNC Metminco Limited Diversified 65 SLV Sylvania Resources PGM Fell out of top 100 Limited 100 TGS Tiger Resources Limited Copper 69 BMN Bannerman Uranium Fell out of top 100 Resources Limited *Companies in trading halt as at 1 October 2010 have not been included in the entries list. 71 AGS Alliance Resources Gold, Fell out of top 100 Limited Uranium 75 ARH Australasian Diversified Fell out of top 100 Resources Limited 80 CQT Conquest Mining Gold Fell out of top 100 Limited 82 BAU Bauxite Resources Aluminium Fell out of top 100 Limited 85 HER Herald Resources Acquired by Calipso Limited Investments and subsequently delisted 88 CXM Centrex Metals Iron ore Fell out of top 100 Limited 94 ATR Astron Limited Mineral Fell out of top 100 sands 97 CTO Citigold Corporation Gold Fell out of top 100 Limited Source: Ernst & Young analyses

4 Pausing for breath ASX top 100 miners And the winner is…

Gold — all that glitters Coal — defying the trend Iron ore — the red gold Gold miners dominated on the back of a Conversely, the thirteen coal companies There were 12 iron ore companies listed booming gold price comprising 56% of in the ASX top 100 miners saw their cash in the ASX top 100 miners with Fortescue new entrants. The gold miners also levels increase by 2% compared to 26% Metals Group by far the largest pure play continued to outperform the index, for the index as a whole, and their total in terms of market capitalization. Iron ore with average improvement in market debt levels increase by 11% compared companies performed well over the capitalization of gold companies — 218%3 to a 41% decrease respectively. The period with both market capitalization compared to 104% for the exchange as a following factors played a role in this: and cash increases greater than the whole. The impact of the strong gold ASX top 100 miners as a whole. This • There was an increase in capital price on gold miners is demonstrated by can be attributed to the broad economic investment for expansion to support their relative performance above the recovery which saw iron ore prices gain increased demand from the industry ASX top 100 miners such that: significant ground in the first half of • Benchmark pricing meant many coal 2010. Key findings showed: • Total debt to market capitalization companies did not start enjoying the ratio for the gold miners is only 5%, impact of higher prices until May. For • Total debt to market capitalization compared to 9% for the ASX top the first four months of the year, many ratio for the iron ore miners at 100 miners of these coal companies were receiving 7%, compared to 9% for the ASX top 100 miners • Only three of the 27 gold mining the lower 2009 prices. Japanese Fiscal companies within the ASX top 100 Year (JFY) 2009 coking prices were • Total debt was up for the iron miners saw falls in market US$128-129/tonne, compared to ore miners by 8% compared with a capitalization and ranking US$200/tonne in JFY 2010 and JFY 41% decrease in total debt for the 2009 thermal prices were US$70/ remaining ASX top 100 miners, which • Cash levels of the gold miners in the ASX top 100 miners increased by 104% tonne, compared to US$98/tonne in similarly to coal, requires significant compared to 26% for the overall index JFY 2010. capital investment • Coal and iron ore companies were • Cash levels of the iron ore miners in impacted by the proposed tax changes the ASX top 100 miners increased by and associated uncertainty 57% compared to 26% for the overall index due largely to increases by

3 Beadall Resources dramatically skewed this figure with growth of 1,893%

Pausing for breath ASX 100 miners 5 Debt recalibration

Uncertainty aside, the recovery post Figure 7: Changing debt levels of the ASX top 100 miners financial crisis has been mixed across 45 both geographies and sectors. The Australian mining sector has considerably improved its position since 2009, with debt and cost reductions. The combined 36 total debt level of the ASX top 100 miners has fallen by over 40% to just $47b compared with over $79b in 2009. 27 The debt reduction has occurred largely at the top end where companies with $100m to $1b in total debt have 18 reduced total debt levels significantly. This dramatic reduction has occurred companies of Number on a global scale in the mining sector. It commenced in 2009 when the value of 9 new borrowing in the industry fell by 64% year on year to US$62b from US$172b in 20084 when arranging loans became 0% increasingly difficult and the cost of No debt A$0-10m A$10-50m A$50-100m A$100m-1b A$1b+ borrowing soared.

2010 has seen the first tentative signs 2010 2009 of debt re-emerging for the ASX top 100 Source: Ernst & Young, Bloomberg Finance LP miners. For example ASX top 100 miner Integra Mining secured loans worth over $50m in April this year. While equity remains key, market conditions have eased and debt has again become Figure 8: Debt levels of the ASX top 100 miners at 30 June 2010 selectively available. With the rise in capital expenditure to increase production, we have seen a reduction in 3% the number of ASX top 100 miners with zero debt and also a slight increase of 16% those carrying total debt in the lower No debt 34% categories. For some, the reduction of A$0-10m high levels of total debt is still a priority, A$10-50m though the number of companies holding 14% total debt in the $100m to $1b category A$50-100m is falling. A$100m-1b A$1b+ 11% 22%

Source: Ernst & Young, Bloomberg Finance LP

4 Life after Debt, Ernst & Young 2010

6 Pausing for breath ASX top 100 miners Mining and metals: Life after debt This report investigates the recent drastic reduction in net debt and record levels of equity issuance in the industry and follows on from our 2009 paper Mining and metals: the wall of debt. In this new report we examine the industry’s dramatic response to the wall of debt and consider how this will impact the way in which the industry pursues and finances growth. We explore the concept of a return to debt-financed mergers and acquisitions, and how companies will approach the fundamental issue of capital allocation. To read the full report, please visit our website at www.ey.com/miningandmetals

Figure 9: Global mining and metals loan proceeds, 2000-2010 (Q3)

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Proceeds US$m BHP Billiton loan Number of loans Source: Ernst & Young, Thomson Financial

Pausing for breath ASX 100 miners 7 Stockpiling cash

The current ASX top 100 miners Figure 10: Cash levels of the ASX top 100 miners at 30 June 2010 increased their cash levels in the year to 30 June 2010 by over 26% to $30.5b. As a result of the credit crisis when debt 5% 11% became less available, companies have been increasingly forced to fund their A$0-10m growth with equity. 26% 14% A$10-20m The year has again seen a strong A$20-50m increase in companies raising funds via follow on/rights issues. Of the 491 follow A$50-100m on/rights issues by Australian mining and A$100-500m metals companies, 91% listed the primary A$500m+ use for the raised funds as working 18% 26% capital. Eighty-four of the follow on/rights issues were raised by ASX top 100 miners for a total of US$2.4b.

Source: Ernst & Young, Bloomberg Finance LP

Figure 11: Australian mining and metals follow on and rights issues*

4,500 100

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*Issues to different classes of shareholder (i.e., Institutional, retail, sophisticated investor) within a company’s capital raising program are counted individually, which increases the quantity of raisings/issues reflected in the analysis.

Source: Ernst & Young, Thomson Reuters

8 Pausing for breath ASX top 100 miners Diversification drives transaction activity

While we have not yet returned to the As an acquiring nation, Australia has In 2009, Australia was the leading heady days of 2007 and 2008 pre-GFC risen through the ranks from 15th in destination for M&A investment. merger and acquisition (M&A) activity, 2009, to 2nd in the first nine months of However, despite the improving 2010 showed a steady recovery. 2010. There have been 211 Australian fundamentals, uncertainty around Improved earnings and stronger balance deals completed in the first nine months Australia’s proposed new tax policies sheets have seen confidence return of 2010, up 9% on 2009. The value of and the Federal election appears to have to the more traditional players, with these deals has far outpaced the rest of impacted the flow of Australian activity. Canada, Australia and the United States the world, rising 181% to $17.6b. In leading activity. value terms, this growth was mainly attributable to the Newcrest acquisition In the first nine months of 2010, deal of Lihir, in comparison to volume terms volumes were up 10% and deal values up where the growth was driven by over 87% on the same period in 2009. Australian miners looking abroad to diversify their geographic reach and product portfolios.

Figure 12: Australian deals in the first nine months of 2010

Value of Australian deals US$m Volume of Australian deals 9m 2009 9m 2010 Growth 9m 2009 9m 2010 Growth Outbound 43 9,679 22409% Outbound 10 35 250% Inbound 5,661 5,458 -4% Inbound 57 80 40% Domestic 574 2,495 335% Domestic 144 115 -20% Total Australia 6,278 17,632 181% Total Australia 211 230 9% Total global 42,077 78,865 97% Total global 754 827 10%

Source: Thomson Financial

Coming soon…2010 Global transactions review Our report examines the key challenges, issues and trends surrounding deal-making in the mining and metals sector in 2010. The report provides a detailed analysis of global trends in transactions and financing, including: mergers and acquisitions, equity capital, bonds, loans and project finance. To pre - register for a copy of this paper email [email protected]

Pausing for breath ASX 100 miners 9 Battle of the exchanges

“Hong Kong is really making There is currently discussion around the Already, the Australian subsidiary of most attractive equity capital market for China Minmetals Corporation, which a strong push to become mining and metals companies seeking to holds certain assets previously owned by one of the world’s leading raise funds. The ASX remains one of the OZ Minerals (acquired in 2009) has capital markets for the most attractive capital markets for announced its intention to by-pass the mining companies, leading the global ASX and list on the HKSE. The HKSE saw resources sector. They have mining sector in 2010 by volume with the greatest value of issues by proceeds been quite successful this 41 new listings in the nine months prior due mainly to the US$2.2b listing by UC to 30 September 2010. However, only Rusal. The HKSE is also proving to be the year in attracting new floats.” one of these new listings made it onto exchange of choice for the listing of Mike Elliott the ASX top 100 miners. The ASX ranked Mongolian assets. If the proposed ASX/ Global Mining & Metals Leader fourth globally in terms of capital raised Singapore Stock Exchange merger were during the period. to complete, the increased liquidity of the two markets may challenge the growth While we expect to see further on the HKSE. international listings by mining companies on the (HKSE) following Russia’s UC Rusal listing, there remains an element of “wait and see”. The HKSE may prove to be an attractive exchange to those mining companies seeking greater access to capital in Asia as well as Asian companies seeking capital to expand their operations.

Figure 13: Exchange of issue by proceeds Figure 14: Exchange of issue by number of issues

10% Australia 16% 5% 25% London 5% Australia New York 5% TSXVenture Hong Kongs 7% Toronto Shenzhen 41% 6% Shenzhen 7% Toronto New York Shanghai 22% 8% 8% Other Jakarta 11% Other 14%

Source: Thomson Financial

10 Pausing for breath ASX top 100 miners Continued residual uncertainty over the The S&P/TSX miners outperformed other Although the ASX remains a preferred mining taxation regime in Australia has markets in the period July to September exchange for capital raising at the potentially made exchanges such as as the financial results continue to look smaller end of the market we see the the TSX relatively more attractive to more positive than they did 12-18 HKSE emerging as a potential leader mining investors. This uncertainty months ago. Over the same period, for capital raising for the sector driven differential may have influenced mining stocks outperformed the broader by available liquidity, investors in the greater investment in Canada, cross-sector all-share indices, perhaps an Asian region and proximity to the combined with the TSX strong gold indication that investors are beginning to resource markets. focus which has seen it outperform the embrace risk again in the search for ASX over the last six months. higher returns5.

Figure 15: ASX top 100 miners and peers rebased (2008 - 2010)

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Source: Ernst & Young, Thomson Financial

5 Mining Eye Q3 2010, Ernst & Young 2010

Pausing for breath ASX 100 miners 11 Poised for growth

It has been a strong year for the ASX top The strong Australian dollar may lessen 100 miners with companies consolidating the relative cost of large infrastructure and improving their financial position projects which have been delayed in post-financial crisis. Debt levels are down recent years as a result of the financial and cash and market capitalization both crisis and capital constraints. However, up on the prior year. Despite the skill shortages continue as an issue for challenges and uncertainties, miners large and remote development projects. are keenly poised for future growth. The resolution of the resources rent tax Continuing demand from Asia and remains an issue of influence for coal and potential growth from India, will continue iron ore producers of the ASX top 100 to drive the growth and balance sheets of miners. Investors will be wary of policy Australian mining companies. This changes that may significantly impact growing demand is likely to see miners their expected after tax returns. It will look to expand their operations both be incumbent on all relevant companies organically and through transactions. to provide clear guidance to their However, lessons learnt from the shareholders of expected impacts. financial crisis will see these deals The ASX and TSX have remained the most done in a different way, with much resilient equity capital markets throughout less debt and a return to active capital the volatility of the past few years, but as management at sustainable debt levels. conditions improve we are likely to see the We expect to see continuing activity in emergence of an Asian market, such as the gold sector, creating an environment the HKSE or even a merged index such as where corporate activity, such as an ASX/Singapore equity capital market. consolidation of mid—tier players, Such a market would provide a future will eventuate in the medium—term. source of funds for the capital hungry This can be attributed to continued cash mining and metals sector. generation and stronger balance sheets.

12 Pausing for breath ASX top 100 miners Contacts

If you have any questions regarding the content of this report or would like more information about Ernst & Young’s Transactions Advisory practice, please speak to your local Ernst & Young contact or email any of the leaders listed below.

Paul Murphy Asia Pacific Mining and Metals Transactions Leader Tel: +61 3 9288 8708 [email protected]

Geographic specialists Authors Adelaide Amber Nelson Angus Blackwood Tel: +61 3 8650 7738 Tel: +61 8 8417 2041 [email protected] [email protected] Brisbane Michael Fenech Tel: +61 7 3243 3753 Shaun Chalmers [email protected] Tel: +61 3 9288 8453 [email protected] New South Wales Nick Cardno Tel: +61 2 9248 4817 [email protected] Perth Irshaad Songerwala Tel: +61 8 9429 2245 [email protected] Greg Westwood Tel: +61 2 9248 4589 [email protected] Victoria Paul Murphy Tel: +61 3 9288 8708 [email protected]

Pausing for breath ASX 100 miners 13 The ASX top 100 miners

Rank Rank @ Ticker Company name Primary Market Cap Market Cap % Cash Debt Debt to 1 Oct 09 commodity 1 Oct 10 change yoy ($m) ($m) Mkt Cap 1 1 BHP BHP Billiton Limited Diversified 206,441.73 8% 14,711.23 18,618.16 9% 2 2 RIO Rio Tinto Limited Diversified 140,185.38 30% 3,919.92 18,292.19 13% 3 3 NCM Newcrest Mining Limited Gold 30,579.48 94% 643.30 426.80 1% 4 4 FMG Fortescue Metals Group Limited Iron ore 16,385.48 44% 1,459.24 3,514.42 21% 5 6 CNA Coal & Allied Industries Limited Coal 9,050.70 33% 395.90 35.70 0% 6 10 OZL OZ Minerals Limited Copper 4,572.76 29% 1,432.50 118.20 3% 7 9 AWC Aluminium 4,416.75 0% 268.50 582.70 13% 8 8 NHC New Hope Corp Limited Coal 4,167.76 -10% 103.61 0.00 0% 9 14 MCC Limited Coal 3,460.07 49% 348.22 99.42 3% 10 28 AND Andean Resources Limited Gold 3,395.36 229% 62.47 0.00 0% 11 17 WHC Whitehaven Coal Limited Coal 3,090.25 69% 141.05 94.93 3% 12 12 PDN Limited Uranium 2,701.27 -16% 411.95 862.29 32% 13 18 AQA Aquila Resources Limited Coal 2,676.53 47% 281.17 12.80 0% 14 13 AQP Limited PGM 2,594.09 10% 450.85 308.27 12% 15 20 ILU Limited Diversified 2,524.76 56% 37.20 476.20 19% 16 7 ERA Energy Resources of Australia Limited Uranium 2,512.02 -48% 165.14 0.00 0% 17 27 RIV Riversdale Mining Limited Coal 2,511.40 141% 247.34 0.10 0% 18 23 CEY Centennial Coal Company Limited Coal 2,433.98 99% 45.10 354.50 15% 19 34 LYC Lynas Corp Limited Rare earths 2,236.95 192% 405.25 0.00 0% 20 21 PNA Panaust Limited Copper 1,964.49 34% 85.30 79.76 4% 21 22 MGX Mount Gibson Iron Limited Iron ore 1,883.85 54% 347.40 133.81 7% 22 47 GCL Gloucester Coal Limited Coal 1,646.38 218% 27.81 34.73 2% 23 15 EXT Extract Resources Limited Uranium 1,489.01 -31% 70.12 0.00 0% 24 25 ZIM Zimplats Holding Limited PGM 1,291.65 20% 95.88 156.30 12% 25 38 AGO Atlas Iron Limited Iron ore 1,252.82 91% 154.93 0.00 0% 26 New listing AZT Aston Resources Limited Coal 1,186.26 n/a 3.16 552.90 47% 27 24 IVA Ivanhoe Australia Limited Diversified 1,182.52 2% 11.82 52.57 4% 28 33 KCN Kingsgate Consolidated Limited Gold 1,156.44 46% 49.10 11.06 1% 29 59 PRU Perseus Mining Limited Gold 1,154.38 209% 185.59 0.00 0% 30 45 WEC White Energy Company Limited Nickel 1,154.18 122% 103.19 68.12 6% 31 31 WSA Western Areas NL Nickel 1,112.57 27% 65.37 295.45 27% 32 42 CGG Citadel Resource Group Limited Gold 952.47 69% 259.48 0.00 0% 33 26 MRE Limited Nickel 945.90 -12% 363.00 0.00 0% 34 44 CGX CGA Mining Limited Gold 914.37 75% 103.51 95.43 10% 35 41 MML Medusa Mining Limited Gold 913.54 62% 38.33 0.00 0% 36 64 SFR Sandfire Resources NL Diversified 901.01 178% 55.83 0.35 0% 37 55 AVO Gold 879.92 113% 42.55 65.85 7% 38 32 OMH OM Holdings Limited Manganese 807.55 -5% 55.56 74.99 9% 39 40 GBG Gindalbie Metals Limited Iron ore 781.52 24% 219.95 5.93 1% 40 53 SBM Limited Gold 742.20 74% 102.16 15.91 2% 41 39 MMX Murchison Metals Limited Iron ore 731.45 14% 73.41 0.00 0% 42 66 GRR Grange Resources Limited Diversified 714.29 152% 70.48 56.95 8% 43 30 MBN Mirabela Nickel Limited Nickel 707.30 -21% 47.49 368.03 52% 44 29 CZA Coal Of Africa Limited Coal 700.28 -24% 101.06 26.11 4% 45 48 IGO Independence Group NL Nickel 690.85 36% 143.96 0.00 0% 46 63 SDL Sundance Resources Limited Iron ore 663.95 103% 76.76 0.00 0% 47 49 MDL Mineral Deposits Limited Mineral sands 651.92 31% 16.34 19.41 3% 48 106 RRL Regis Resources Limited Gold 605.59 392% 9.54 14.56 2% 49 57 SMM Summit Resources Limited Uranium 571.18 44% 8.00 0.00 0% 50 46 PAN Panoramic Resources Limited Nickel 563.31 9% 49.78 4.72 1%

14 Pausing for breath ASX top 100 miners Rank Rank @ Ticker Company name Primary Market Cap Market Cap % Cash Debt Debt to 1 Oct 09 commodity 1 Oct 10 change yoy ($m) ($m) Mkt Cap 51 102 IAU Intrepid Mines Limited Gold 561.24 337% 21.44 0.00 0% 52 43 MRU Mantra Resources Limited Uranium 550.87 5% 78.69 0.74 0% 53 76 BRM Brockman Resources Limited Diversified 543.70 135% 84.23 0.00 0% 54 78 RSG Resolute Mining Limited Gold 542.17 144% 18.26 122.75 23% 55 52 NFE Northern Iron Limited Iron ore 525.97 21% 10.25 127.78 24% 56 72 BOC Bougainville Copper Limited Copper 525.39 118% 0.75 0.00 0% 57 61 AVM Anvil Mining Limited Diversified 520.39 52% 74.95 0.26 0% 58 50 GNM Gujarat Nre Coking Coal Limited Coal 516.06 4% 4.06 131.85 26% 59 151 AMX Ampella Mining Limited Gold 497.55 572% 12.14 0.00 0% 60 89 GIR Giralia Resources NL Diversified 489.97 189% 56.93 0.00 0% 61 77 ALD Limited Gold 488.86 115% 85.53 6.24 1% 62 56 SRL Straits Resources Limited Diversified 465.75 16% 192.15 109.49 24% 63 37 KZL Kagara Limited Base metals 460.06 -31% 82.69 36.93 8% 64 93 SPH Sphere Minerals Limited Iron ore 440.36 203% 38.69 0.41 0% 65 99 SLR Silver Lake Resources Limited Gold 430.81 216% 29.50 0.68 0% 66 95 IGR Integra Mining Limited Gold 423.24 200% 30.30 12.17 3% 67 84 COK Cockatoo Coal Limited Coal 412.54 122% 32.16 5.00 1% 68 92 MLX Metals X Limited Tin 396.04 167% 29.50 2.83 1% 69 140 DML Discovery Metals Limited Base metals 388.33 382% 39.34 0.00 0% 70 51 MCR Mincor Resources NL Nickel 378.15 -24% 126.80 0.94 0% 71 62 IRN Indophil Resources NL Copper 374.73 12% 16.68 0.00 0% 72 54 ABY Aditya Birla Minerals Limited Copper 374.48 -10% 2.20 7.31 2% 73 150 GRY Gryphon Minerals Limited Gold 373.58 399% 19.34 0.00 0% 74 110 CPL Coalspur Mines Limited Coal 362.03 204% 21.23 0.00 0% 75 68 ARU Arafura Resources Limited Diversified 344.41 37% 23.54 0.04 0% 76 86 CAH Catalpa Resources Limited Gold 320.62 82% 35.11 61.18 19% 77 100 NKP Nkwe Platinum Limited PGM 318.89 135% 6.78 0.00 0% 78 105 SAR Saracen Mineral Holdings Limited Gold 314.87 153% 28.94 8.08 3% 79 90 TRY Troy Resources NL Gold 292.16 86% 16.43 1.31 0% 80 87 RXM Rex Minerals Limited Diversified 291.11 67% 31.48 0.00 0% 81 107 ADU Adamus Resources Limited Gold 278.36 127% 23.01 1.33 0% 82 91 GXY Limited Tantalum 274.40 79% 18.35 0.00 0% 83 35 CDU Cudeco Limited Copper 272.18 -64% 36.43 0.00 0% 84 135 MOL Moly Mines Limited Iron ore 271.19 209% 47.88 70.33 26% 85 103 KRM Kingsrose Mining Limited Gold 260.89 103% 7.83 8.60 3% 86 58 DOM Dominion Mining Limited Gold 258.32 -32% 15.88 0.08 0% 87 79 JML Jabiru Metals Limited Base metals 251.44 20% 34.34 4.09 2% 88 81 FMS Flinders Mines Limited Iron ore 245.72 27% 54.81 0.00 0% 89 83 PEM Perilya Limited Zinc 236.73 24% 119.40 63.62 27% 90 73 GDO Gold One International Limited Gold 233.82 -2% 7.03 81.04 35% 91 418 BDR Beadell Resources Limited Gold 233.23 1893% 23.70 0.00 0% 92 67 CFE Cape Lambert Resources Limited Iron ore 231.53 -12% 135.71 0.00 0% 93 129 RMS Ramelius Resources Limited Gold 228.76 137% 80.23 0.00 0% 94 98 HIG Highlands Pacific Limited Base metals 225.43 65% 24.45 0.00 0% 95 70 PLA Platinum Australia Limited PGM 211.95 -14% 12.37 15.98 8% 96 74 TAM Tanami Gold NL Gold 211.37 -11% 6.73 55.24 26% 97 142 IOH Iron Ore Holdings Limited Iron ore 209.84 168% 17.35 0.00 0% 98 96 BKY Berkeley Resources Limited Uranium 202.26 44% 10.24 0.00 0% 99 143 MNC Metminco Limited Diversified 200.46 156% 2.16 6.85 3% 100 197 TGS Tiger Resources Limited Copper 199.785 302% 10.20 5.78 3%

Pausing for breath ASX 100 miners 15 16 Pausing for breath ASX top 100 miners Pausing for breath ASX 100 miners 17 [email protected] Tel: +91 982 061 4141 Anjani Agrawal India [email protected] Tel: +224 30 41 21 82 Christian Mion France and Luxemburg [email protected] Tel: +7 495 648 9624 Evgeni Khrustalev Independent States Commonwealth of [email protected] Tel: +27 11 772 3052 Adrian Macartney Africa [email protected] Tel: +44 20 7951 3064 Michael Lynch-Bell Africa Leader Europe, Middle East, India and [email protected] Tel: + 81 3 5401 6407 Kentaro Nakamichi Japan [email protected] Tel: +86 21 2228 2616 Peter Markey China [email protected] Tel: +61 8 9429 2265 Scott Grimley Oceania [email protected] Tel: +61 2 9248 4588 Mike Elliott Global Mining & Metals Leader your goals and compete more effectively. It’s how theErnst issues & Young of today makes and anticipatea difference. those of tomorrow.The Ultimately Centre isit whereenables people us to and help ideas you come meet together to help mining and metals companies meetassurance, tax, transactions and advisory services to theto mining help youand metalsachieve sector. your potential — a team with deep technicalErnst & experienceYoung’s in Globalproviding Mining & Metals Centre brings together a worldwide team of professionalsthe maintenance of its social license to operate and meetingoptimization. government The revenue sector isexpectations. also faced with the increased growthchallenge through of changing expanded expectations production, in without losing sight ofWith operational a strong efficiencyoutlook in the and sector, cost the global mining andErnst metals & Young’s industry is focusedGlobal Mining on future & Metals Center

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