WEEKLY

30th September 2013

WWW.LCC.ASIA

Australian Copper Gold Report

2014 Copper Premiums to Increase by 50%

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 Gold Silver Platinum Palladium Crude Oil Gas H.Hub Uranium

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

(US$/m btu)

(US$/lb)

1,435 1,336 21.8 1,416 726 102 3.50 35

Last Close Price

-11% -20% -28% -8% 3% 11% 4% -18%

YTD Change

-8% -4% -7% -7% 1% -3% -5% 4%

4-Week Change

1.2% 0.3% -0.6% -1.2% 0.7% -1.3% -7.1% 0.3%

Week Change

Copper Copper Cobalt Molybdenum Nickel Lead Zinc Tin

Global Markets

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

3.53 3.29 11.82 9.53 6.30 0.94 0.85 10.64

Last Close Price

2% -8% 2% -19% -19% -11% -8% 0%

YTD Change

-2% 2% -10% -3% 1% -6% -6% 10%

4-Week Change

0.4% -0.6% -8.6% 0.0% -1.5% 0.4% 1.2% 0.4%

Week Change

Currencies & Indices

AUD/USD RMB/USD CAD/USD ZAR/USD ASX Ordinary Gold TSX Global Gold ASX 300 Metals & Mining TSX Global Mining
Gold Price 1700
1600 1500

0.931 0.163 0.970 0.099 2,587 176 3,271 72

-11% 2% -4% -16% -47% -42% -10% -25%

5% 0% 2% 2% -12% -12% 2% 1%

-0.9% 0.0% -0.2% -2.2% -7.9% -1.2% -0.6% -1.0%

Volume ('000 lot) Price (A$/lb)

ASX 200 Dow Jones S&P 500 Index Shang Hai Index Hang Seng Index Nikkei 225 FTSE 100 Index Euro STOXX 50 Index
Price (US$/lb)

5,307 15,258 1,692 2,160 23,207 14,760 6,513 2,919

14% 16% 19% -5% 2% 42% 10% 11%

3% 3% 4% 3% 7% 10% 2% 7%

0.6% -1.2% -1.1% -1.5% -1.3% 0.1% -1.3% -0.3%

LME Copper Price and Volume

Gold Price US$/oz 100-day moving average Gold Price A$/oz

LME Copper Price and Stocks 3.80

3.60 3.40 3.20 800 600 Stocks ('000 lot) Price (A$/lb) Price (US$/lb) 3.80 3.60

400
300 200 100

1400
1300 1200 Jun Jul Aug Sep

400
200 0 Jun Jul Aug Sep

3.40
3.20 3.00

0 Jun 160
120
Total Demand (tonnes) Total Supply (tonnes)

3.00 Jul Aug Sep 3.80

3.60 3.40 3.20

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

1400 1200 1000 800 600 400 200 0

World Gold Demand and Supply

100 80
60 40 20 0 Jun 100

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

3.80
3.60 3.40

80 40
Q4 12 Q2 13

3.20
3.00 Jul Aug Sep 4.50 Stocks ('000 t) Price (US$/lb) SHFE Copper Price and Stocks

Q2 08

Q4 08

Q2 09

Q4 09

Q2 10

Q4 10

Q2 11

Q4 11

Q2 12

0
Jun Jul Aug Sep SHFE Copper Price and Volume

3.00

7000
5000 3000 1000 Sep 12

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

100 80
60 40 20 0 Volume ('000 lot) Price (US$/lb)

4.50 4.30
4.10 3.90 3.70 3.50

80 60
40 20 0 Jun

4.30 4.10
3.90 3.70 3.50

Dec 12

Mar 13

Jun 13

Sep 13

Jun

Jul

Aug

Sep

Jul

Aug

Sep

China Copper Imports 500 400

Tonnes ('000t) Copper Price

4.00 3.80

300
200 100 0 Feb 12 Aug 12 Feb 13

3.60
3.40 3.20 3.00 Aug 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 o f any such information and makes no warranty, guarantee or representation, expressly or impliedly about this research. LCC accepts no ob ligation 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

30th September 2013

WWW.LCC.ASIA

Australian Copper Gold Report

Markets & Majors

Codelco (10% of global production or 1.7 million tpa copper) could raise premiums by as much as 50% from this year's US$98/t to reach US$130-150/t in 2014. The copper premium is the difference between the benchmark futures price and the cost for delivered copper. Japanese smelters recently shocked the market with a proposed 45% increase in charges to Chinese end users. The size of the premium is an indication of underlying demand for the metal and spot premiums in China, responsible for consuming some 40% of the metal, has tripled so far this year and recently reached decade highs of more than US$200/t. The flash HSBC Purchasing Managers' Index (PMI) climbed to 51.2 in September from August's 50.1, hitting a high not seen since March, with 10 of 11 sub-indices rising. Exports staged a promising comeback in September, the PMI showed, with new export orders jumping 3.6 points to a 10-month peak of 50.8. It was the first time in six months that export orders were above 50 points, the level that indicates expansion. Nearly 11% of Australian minerals sector professionals, including engineers and geoscientists, are unemployed, according to an employment survey of almost 3000 individuals by the Australasian Institute of Mining and Metallurgy. The figure is up from just 2% only 12 months ago, exposing the extreme damage of the mining sector downturn. Two of the world's top copper producers, Anglo American and Southern Copper, are talking about teaming up to develop Anglo's US$3.3 billion Quellaveco mine in Peru. Rising costs that have hit the global mining industry led Anglo American to reach out to Southern Copper about a potential partnership. Quellaveco is expected to start producing 225,000 tpa of copper from 2016. Newmont Mining boss Gary Goldberg is not opposed to copper becoming a larger part of the gold producers portfolio. The company should start a copper oxide leach operation at Phoenix in Nevada before the end of the year and looks at bioleaching sulphides at Yanacocha in Peru. Newmont expects to produce 70-80 million pounds of copper this year at cash costs of US$2.45-2.65/lb. BHP Billiton has priced a four-tranche global bond to raise US$5 billion. The bond comprises US$500 million senior floating rate notes due 2016, paying interest at three-month US dollar LIBOR plus 25 basis points, $500 million 2.05% senior notes due 2018, $1.5 billion 3.85% senior notes due 2023 and $2.5 billion 5% senior notes due 2043. Workers at the Indonesian unit of Freeport McMoRan Copper & Gold Inc. expect to reach an agreement over pay in less than two weeks, according to one union official, cutting the risk of further disruption at the world's second-biggest copper mine after a deadly accident two months ago.

Emerging Copper Companies

Code Company Name Open Close Week Week Price Price High Low Weekly Change Market 52 Week Cash EV Cap Project Range (A$m) (A$m) (A$m) Annual Mineral C1 Production Resource Costs (t) (mt Cu) (US$/lb) 20,000 12,000 4,850 39,000 N/A 28,000 40,000 55,000 246,000 375,000 90,000 100,000 80,000 16,500 N/A 0.610 0.762 0.021 1.000 0.483 0.205 0.623 0.920 13.000 15.000 0.806 6.538 2.000 0.316 0.096 0.49 1.10 1.16 2.04 0.81 1.11 1.20 1.35 0.58 0.46 1.80 1.06 1.20 1.41 N/A Capex (US$m) 180 50 35 358 225 133 360 600 5,300 5,900 1,800 1,320 900 251 N/A

AVI Avalon Minerals 0.01 0.01 0.01 0.01 0.0% 5 1 4 Viscaria AVB Avanco Resources 0.09 0.08 0.09 0.07 -3.5% 92 4 89 Antas North AZS Azure Minerals 0.03 0.03 0.09 0.07 3.3% 20 2 17 Promontorio BTR Blackthorn Resources 0.26 0.30 0.35 0.24 15.4% 49 26 24 Kitumba CDU Cudeco 2.22 2.19 2.25 2.02 -1.4% 449 48 401 Rocklands FND Finders Resources 0.21 0.22 0.22 0.21 7.3% 109 3 115 Wetar (95% ) HAV Havilah Resources 0.28 0.24 0.28 0.24 -12.7% 29 6 23 Kalkaroo HCH Hot Chili 0.44 0.41 0.44 0.40 -8.0% 135 23 112 Productora HIG Highlands Pacific 0.07 0.07 0.07 0.07 -5.8% 51 7 44 Frieda River (18.2% ) IRN Indophil Resources 0.19 0.18 0.19 0.17 -5.4% 211 224 -13 Tampakan (37.5% ) MMC Marengo Mining 0.03 0.03 0.03 0.02 0.0% 28 7 42 Yandera MNC Metminco 0.05 0.04 0.05 0.04 -2.2% 77 13 64 Los Calatos RXM Rex Minerals 0.51 0.54 0.56 0.47 4.9% 101 25 76 Hillside VXR Venturex Resources 0.01 0.01 0.01 0.01 0.0% 14 3 11 Pilbara YTC YTC Resources 0.26 0.25 0.27 0.24 -3.8% 66 16 85 Nymagee (95% ) Source: Capital IQ, ASX announcements, LCC research. C1 costs and capex as estimated and announced by the respective companies.

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 o f any such information and makes no warranty, guarantee or representation, expressly or impliedly about this research. LCC accepts no ob ligation 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

30th September 2013

WWW.LCC.ASIA

Australian Copper Gold Report

Copper Producers
Code Company Name Open Close Week Week Price Price High Low Weekly Market 52 Week Cash EV EV/ Project Change Cap (A$m) Range (A$m) (A$m) EBITDA Ore Quarterly C1 Costs C3 Costs Reserve (mt Production (t) (US$/lb) (US$/lb) Cu) Nifty 9,873 0.473 2.84 N/A Kylylahti 1,809 0.061 2.23 3.37 Boseto 5,034 0.191 3.45 N/A Kanmantoo 3,590 0.125 2.40 3.19 Osborne 5,451 0.069 2.57 3.70 Prominent Hill 17,379 0.748 1.95 3.56 Phu Kham (90% ) 15,483 1.127 1.45 2.12 DeGrussa 14,293 0.438 1.37 2.21 Tritton 6,271 0.178 2.41 3.87 Kipoi 1 (60% ) 11,116 0.303 1.06 1.35

ABY AOH DML HGO IVA OZL PNA SFR SRQ TGS

Aditya Birla Minerals Altona Mining Discovery Metals Hillgrove Resources Inova Resources OZ Minerals PanAust Sandfire Resources Straits Resources Tiger Resources

0.36 0.15 0.12 0.07 0.21 4.38 2.27 6.76 0.01 0.30

0.35 0.16 0.10 0.07 0.21 4.41 2.18 6.50 0.02 0.31

0.36 0.16 0.12 0.07 0.22 4.43 2.32 6.95 0.02 0.31

0.35 0.15 0.10 0.06 0.21 4.29 2.17 6.45 0.01 0.29

-2.8% 3.3% -16.5% 0.0% 0.0% 0.7% -4.0% -3.8% 21.4% 1.7%

108 82 54 84 153 1,337 1,299 1,012 20 206

86 23 26 79 24 201 17 115 33 120 433 904 94 1,385 77 1,220 41 101 13 193

0.2x 5.5x NM 3.2x NM 7.1x 4.4x 6.1x NM 3.7x

Source: Capital IQ, ASX announcements, LCC research. C1 and C3 costs as reported in last quarter, except for TGS, LCC estimate.

ASX-listed Company News

Sandfire Resources (ASX: SFR) has revised its repayment schedule for the remaining A$285m balance of the project finance facility. While there is no change to the maturity of the facility (December 2015), A$55m of repayments have been moved to the term of the facility. Anglogold Ashanti and Independence Group (ASX: IGO) Tropicana mine in Western Australia poured its first gold last week.

Emerging Gold Producers

Code Company Name Open Price Close Price Week High Week Low Weekly Change -3.2% 0.0% -2.6% -1.6% 30.4% -6.5% 22.2% -3.2% -1.0% -3.9% 0.0% 30.0% 0.0% 12.5% -18.2% -10.4% -1.7% Market Cap 52 Week Cash EV Project Name (A$m) Range (A$m) (A$m) Annual Reserves C1 Costs Capex Production (oz) (moz) (US$/oz) (US$m)

Old Pirate 100,000 Tomingley 55,000 Wa 100,000 Bullabulling 175,500 Borborema 131,000 Andy Well 74,000 Glenburgh 73,000 Banfora 151,000 Tropicana (30% ) 470,000 Mt Kare 130,000 Tumpangpitu 143,000 Woodlark 90,000 Shambesai 55,000 CGMP 95,000 Samira Hill N/A Deflector 80,000 Gidgee 87,000 Mt Henry (70% ) 116,000 PIR Papillon Resources 1.09 1.12 1.15 1.02 2.8% 378 62 317 Fekola 306,000 PVM PMI Gold 0.35 0.35 0.38 0.33 0.0% 145 113 32 Obotan 221,500 PXG Phoenix Gold 0.19 0.17 0.19 0.16 -10.5% 41 16 25 Castle Hill 100,000 ROL Robust Resources 0.26 0.26 0.26 0.23 0.0% 27 19 8 Andash (80% ) 70,000 SIH Sihayo Gold 0.04 0.04 0.04 0.03 -5.0% 32 3 29 Pungkut 46,000 SUM Sumatra Copper & Gold 0.12 0.11 0.12 0.11 -8.3% 46 19 27 Tembang 30,000 Source: Capital IQ, LCC research. C1 costs and capex as estimated and announced by the respective companies. Assumption: A$/US$ exchange rate of 0.90.

ABU ALK AZM BAB CAS DRM GCY GRY IGO IDC IAU KGD MSR MLX MDI MYG PAN

ABM Resources Alkane Resources Azumah Resources Bullabulling Gold Crusader Resources Doray Minerals Gascoyne Resources Gryphon Minerals Independence Group Indochine Mining Intrepid Mines Kula Gold Manas Resources Metals X Middle Island Resources Mutiny Gold Panoramic Resources

0.03 0.41 0.04 0.06 0.23 0.70 0.18 0.16 4.02 0.08 0.27 0.10 0.05 0.12 0.11 0.05 0.29

0.03 0.41 0.04 0.06 0.30 0.65 0.22 0.15 3.98 0.07 0.27 0.13 0.05 0.14 0.09 0.04 0.29

0.03 0.43 0.04 0.06 0.30 0.70 0.22 0.16 4.21 0.08 0.28 0.13 0.06 0.14 0.11 0.05 0.31

0.03 0.39 0.04 0.06 0.23 0.64 0.18 0.14 3.89 0.07 0.24 0.10 0.05 0.12 0.09 0.04 0.28

98 153 12 22 38 92 35 60 929 64 147 16 14 223 11 22 74

8 64 4 1 3 26 3 52 27 2 94 4 6 75 6 2 23

90 89 8 21 35 67 32 8 921 62 54 13 8 149 6 21 51

0.3 0.2 0.7 2.4 1.6 0.3 0.3 1.1 3.9 1.1 1.5 0.8 0.3 1.2 0.3 0.4 0.6 0.9 3.0 2.4 0.7 0.4 0.3 0.4

383 882 700 843 558 592 819 774 558 800 376 730 387 881 N/A 574 783 837 580 626 756 27 635 487

27 96 160 367 169 53 54 208 752 218 204 160 41 105 1 56 114 176 292 297 118 96 60 40

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 o f any such information and makes no warranty, guarantee or representation, expressly or impliedly about this research. LCC accepts no ob ligation 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

30th September 2013

WWW.LCC.ASIA

Australian Copper Gold Report

Mergers & Acquisitions

A1 Consolidated Gold (ASX: AYC) has reached an agreement with LionGold Corporation for an investment of A$4 million to fund the development of the A1 gold mine through to production. If approved by shareholders, the placement will result in LionGold Corp owning 19.92% of AYC. Cape Alumina (ASX: CBX) and MetroCoal (ASX: MTE) have signed an agreement to merge to create a diversified bauxite and thermal coal business with a staged development pipeline. The combined entity should benefit from: an improved cash position of A$12 million (as at 31 August) to accelerate development of near-term bauxite projects in strong and growing global market and a larger market capitalisation of over A$28 million with increased liquidity for shareholders. Metals X has reached an agreement with Alacer Gold Corporation to acquire the whole of its Australian gold operations for A$40 million. The assets include the Higginsville Gold Operations, which consists of a 1.35 mtpa gold plant, the Trident and Chalice underground mines (total mineral resource as at 31 Dec 2012 is 15.9 mt at 3 g/t for 1.55 moz gold), and the South Kalgoorlie Operations, which consists of a 1.2 mtpa gold plant and a diverse list of open pit and underground mining opportunities (total mineral resource as at 31 Dec 2012 is 87.8 mt at 2.0 g/t for 5.69 moz gold. The purchase price represents a multiple of A$5.5/oz. Alacer incurred an impairment loss of US$412 million in the June quarter in relation to the Australian gold assets.

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

BDR Beadell Resources 0.82 0.89 0.92 0.82 8.5% 702 28 141 815 73.2x BEZ* Besra Gold 0.06 0.06 0.06 0.05 -8.3% 21 4 43 60 8.1x CTO Citigold Corporation 0.05 0.05 0.06 0.05 -5.7% 68 1 0 67 NM DRA Dragon Mining 0.22 0.24 0.24 0.22 6.8% 21 7 0 14 67.3x EVN Evolution Mining 0.83 0.87 0.89 0.81 4.2% 613 14 141 740 3.7x EDV* Endeavour Mining Corp 0.69 0.68 0.73 0.66 -1.4% 281 82 222 422 6.4x FML Focus Minerals 0.01 0.01 0.01 0.01 0.0% 128 114 11 25 NM GDO Gold One International 0.23 0.23 0.23 0.23 0.0% 320 8 238 550 7.0x KCN Kingsgate Consolidated 1.75 1.69 1.75 1.68 -3.4% 257 42 200 416 3.8x KRM Kingsrose Mining 0.41 0.40 0.42 0.39 -2.4% 134 1 6 139 NM LSA Lachlan Star 0.21 0.21 0.22 0.21 0.0% 21 3 26 44 NM MML Medusa Mining 2.23 2.18 2.24 2.11 -2.2% 412 8 16 419 5.8x MOY Millennium Minerals 0.33 0.32 0.34 0.31 -4.5% 69 5 54 118 3.4x NCM Newcrest Mining 12.50 11.47 12.55 11.41 -8.2% 8,782 69 4,210 12,923 4.8x NGF Norton Gold Fields 0.13 0.14 0.14 0.13 7.7% 130 56 115 189 7.7x NST Northern Star Resources 0.85 0.87 0.88 0.82 3.0% 369 61 12 320 4.5x OGC* OceanaGold Corporation 1.60 1.56 1.64 1.50 -2.5% 458 18 247 687 3.7x PGI PanTerra Gold 0.08 0.08 0.08 0.08 -3.7% 59 4 0 56 NM PRU Perseus Mining 0.57 0.55 0.59 0.53 -4.4% 250 35 0 214 3.0x RDR Reed Resources 0.02 0.02 0.02 0.02 5.0% 11 19 0 -8 NM RED Red 5 - suspended 8 23 16 NM RMS Ramelius Resources 0.17 0.16 0.17 0.15 -6.1% 56 37 4 23 1.0x RRL Regis Resources 4.01 4.09 4.14 3.95 2.0% 2,029 81 0 1,949 8.1x RSG Resolute Mining 0.63 0.63 0.66 0.62 0.0% 404 156 91 339 1.9x SAR Saracen Mineral Holdings 0.24 0.24 0.25 0.23 2.1% 143 13 22 151 2.5x SBM St Barbara 0.57 0.55 0.58 0.54 -2.7% 268 129 328 467 NM SLR Silver Lake Resources 0.81 0.79 0.82 0.77 -1.9% 344 19 33 357 NM TBR Tribune Resources 2.06 2.07 2.07 2.03 0.5% 104 9 14 109 2.0x TGZ* Teranga Gold Corp 0.73 0.70 0.73 0.66 -4.1% 206 54 82 235 1.1x TRY Troy Resources 1.56 1.54 1.58 1.51 -1.0% 258 41 0 217 3.7x UML Unity Mining 0.08 0.07 0.08 0.07 -2.6% 52 28 0 24 3.3x VGO Vantage Goldfields 0.05 0.05 0.05 0.05 -3.8% 12 1 0 12 3.9x Source: Capital IQ, 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.

1.9 0.1 0.3 0.1 3.1 2.5 0.5 2.7 2.9 N/A 0.4 0.6 0.7 87.3 1.1 0.3 3.6 0.6 4.0 0.8 0.7 0.6 3.0 4.4 1.1 5.7 1.7 0.2 1.7 0.4 0.4 0.5

36,179 18,500 773 17,223 112,559 73,700 25,172 68,208 61,793 1,395 16,160 15,642 16,441 642,032 41,464 25,421 68,353 6,661 47,565 12,918 3,169 18,988 72,134 102,685 37,259 107,363 55,600 19,133 49,661 27,808 13,212 5,756

679 793 529 928 686 809 1,709 1,071 824 6,445 1,137 355 685 675 926 684 682 1,037 1,181 1,642 689 1,382 601 757 742 862 645 401 642 813 881 1,264

N/A 1,330 N/A N/A 1,229 975 1,765 1,244 1,272 N/A N/A N/A 844 936 1,181 988 1,000 N/A 1,405 1,700 1,039 N/A N/A 963 1,087 N/A 981 N/A 1,063 N/A N/A 1,464

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 o f any such information and makes no warranty, guarantee or representation, expressly or impliedly about this research. LCC accepts no ob ligation 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