Half Year Results 1999 2000

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Half Year Results 1999 / 2000
P R E S E N T E D B Y
Nick Stump Deborah OToole Vince Gauci John Goo
ding
Mike Menzies 31 January 2000
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Overview
P R E S E N T E D B Y
Nick Stump Chief Executive 31 January 2000
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The Half In Review
MIMs Share (M)
June 99 Half
Dec 98 Half
Dec 99 Half
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The Result - MIMs share

• Improved operating profit pre-abnormals of
  52.2 million
  
• Abnormal items after tax 55.1 million -
  largely tax benefits
  
• Net profit of 107.3 million
• Strong cashflow from operations
• 195 million plus 255 million from forward sale
  of silver
  
• Debt and gearing lower
• Interim dividend 1.25 cents per share

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Major Factors
PRODUCTION

• Up on December 1998 half
• June 1999 half
• Isa anode up, total copper down
• Isa lead bullion up, zinc concentrate down
• Coal - slightly down due to market related
  variations
  
• Up for all products on December 1998 half
• Down for all but lead on June 1999 half peaks

SALES VOLUMES
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Major Factors
PRICES EFFECT

• Net effect of price and exchange
• Negative December on December
• Positive December 99 on June 99

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Price and Volume Effect on Revenue
M
(122.1)
(126.1)
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Major Factors
COST AND PRODUCTIVITY IMPROVEMENTS

• Mount Isa EBIT turnaround
• Alumbrera EBIT up
• McArthur River EBIT up
• Coal improvement offset by low prices

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Alumbrera

• 63.7 million EBIT (MIMs share)
• MIMs share of net profit 26.2 million
• Strong unit cost performance, less than
  US30/lb
  
• Production affected by
• Scheduled lower grades
• Lower recoveries from weathered ore as pit
  expanded
  
• Maintenance time on mills
• Power failure outages
• Completed project financing tests

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Alumbrera - going forward

• New mine plan being implemented
• Mining and milling rate being increased
• Lower scheduled grades this half
• Unit cost effect
• Exploration - surrounding area

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Cost of Copper Production
US/lb
Year ending 30 June
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Europe
NORTHFLEET

• EBIT 8.7 million
• Improved availability of lead stocks from ISA
• Difficult market conditions

AVONMOUTH

• EBIT 1.7 million
• Performance constrained by plant and equipment
  
  
• reliability and sinter plant availability

DUISBURG

• Break even EBIT
• Low utilisation of high margin secondaries

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Financial Results
P R E S E N T E D B Y
Deborah OToole Executive General Manager Fina
nce
31 January 2000
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Financial ResultsConsolidated
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Financial ResultsConsolidated Vs MIMs Share
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Financial ResultsMIMs Share (Unaudited)
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Sales VolumeMIMs Share
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Sales VolumeMIMs Share
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Average Prices Received - USMIMs Share
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Average Prices Received - AUDMIMs Share
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Sales RevenueConsolidated
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Copper-GoldSales Revenue (Including Group Sales)
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Zinc-Lead-SilverSales Revenue (Including Group
Sales)
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Sales Revenue (Including Group Sales)Coal
Other
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Sensitivity to Price Movements Net Profit After
Tax
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Hedging
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Earnings Before Interest, Tax, Abnormals and
Exchange
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Earnings Before Tax and Abnormals
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Copper-GoldEarnings Before Interest, Tax,
Abnormals Exchange
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Zinc-Lead-SilverEarnings Before Interest, Tax,
Abnormals Exchange
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CoalEarnings Before Interest, Tax, Abnormals
Exchange
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OtherEarnings Before Interest, Tax, Abnormals
Exchange
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Summarised Cashflow Consolidated Vs MIMs Share
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Cashflow MIMs share (Unaudited)
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Capital ExpenditureMIMs Share (Unaudited)
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Capital ExpenditureMIMs Share (Unaudited)
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Sustaining Capital ExpenditureMIMs Share
(Unaudited)
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Sustaining Capital ExpenditureMIMs share
(Unaudited)
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Copper-goldSustaining Capital ExpenditureMIMs
Share (Unaudited)
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Zinc-Lead-SilverSustaining Capital Expenditure
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CoalSustaining Capital Expenditure
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Growth Capital ExpenditureMajor ProjectsMIMs
Share (Unaudited)
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Growth Capital ExpenditureMount Isa - Major
Projects
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Total Debt - MIMs Shareat 31 December 1999
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Gearing for Debt Covenantsat 31 December 1999
Gearing () - debt / (debt tangible net worth)
Based on MIMs Share
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Corporate Credit Linesat 31 December 1999
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Balance Sheet
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Net Property,Plant Equipment Consolidatedat 31
December 1999
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Copper-GoldNet Property, Plant Equipment at
31 December 1999
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Zinc-Lead-SilverNet Property, Plant
Equipmentat 31 December 1999
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Net Property, Plant Equipmentat 31 December
1999Coal
Other
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Depreciation AmortisationConsolidated
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Copper-GoldDepreciation Amortisation
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Zinc-Lead-SilverDepreciation Amortisation
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Depreciation Amortisation Coal
Other
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Australian Operations
P R E S E N T E D B Y
Vince Gauci Group Executive 31 January 2000
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Copper - Mount Isa

• EBIT 35 million
• Copper sales volumes up 14 - Increasing anode
  production adding value
  
• AQC smelter interruptions double anticipated
  rate
  
• To reduce with acid plant commissioning
• Cash costs US49/lb (US51/lb June 1999 half)
• Enterprise mine commissioning on track
• New milestone in smelter refractory brick life
  
  
• Reline shutdown deferred

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Copper Smelter - Anode Production

• December 99 half - 109,500 tonnes
• 1998 - 1999 full year - 158,500 tonnes

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Copper Smelter Production

• Achieved without anticipated benefits from
  Acid Plant reduction in Air Quality Control
  shutdowns.
  
• Total commitment from Copper Smelter
  workforce
  
• Involvement with standardisation procedures
• Training
• Ownership and pride
• Housekeeping
• Absenteeism
• Costs
• Safety
• Morale

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CIF Bath Area Brick Thickness
(estimated on first day of month)

• Previous rebrick lasted 8 months
• Current rebrick life has lasted 16 months with
  rebrick tentatively scheduled for mid
  calendar year ie - 22 month life.

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Ernest Henry
MIM 51 SHARE

• EBIT 6.1 million
• Mill throughput rate sustained - grade reduced
  as forecast
  
• Sales revenue down 8 on December 1998 half, up
  on June 1999 half
  
• Change to owner operator

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Zinc-Lead-Silver Mount Isa

• EBIT 14.9 million
• Sales revenue increased on zinc price and lead
  volumes
  
• Hilton mine output high, Isa lead mine lower
  than expected
  
• George Fisher on track - 70 complete, first
  mine stope producing
  
• Upgrade of lead zinc concentrator complete,
  improved
  
• zinc recovery

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McArthur River
MIM 70 SHARE

• EBIT 14.5 million - highest to date
• Increase due mainly to continued operational
  and cost improvements and zinc price increase
  from June 99 half
  
• Continued strong metallurgical performance
• A zinc price higher
• Revenue up 23 on December 1998 half (down
  on June 1999 half)

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Cost of Zinc Mine Production
US/lb
Year ending 30 June
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Gold - Ravenswood
MIM 50.1 SHARE

• EBIT 4.0 million
• Strong production performance, 22 increase in
  sales
  
• Cost reduction initiatives including change to
  MIM managing mining operations
  
• Gold mining to continue into MIMs Sarsfield
  area

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Coal Operations
MIM 75 SHARE

• EBIT 22.2 million
• Adverse impact of lower US prices and stronger
  A lessened by good operating performance

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Cost of Coal Production
A/T
Year ending 30 June
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Newlands-Collinsville-Abbot Point
MIM 75 SHARE

• EBIT 17.2 million
• Average A price received down 12
• High level of production at Newlands
• Production from lower unit cost longwall
  maximised
  
• Longwall productivity matching worlds best
• Collinsville output down to meet market

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Oaky Creek
MIM 75 SHARE

• EBIT 5.0 million
• Sales volumes up 38 on December 1998 half
• A average price received down 23
• Production suspended at Oaky North, due to poor
  ground conditions
  
• Demonstrated production flexibility
• Excellent performance at Oaky No. 1

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Oaky North Longwall
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Oaky North Longwall Recovery
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Outlook

• Further improving operations
• Reducing operating costs
• Increasing production by
• Completing major projects on time

• Copper - Enterprise Mine

- Acid Plant Gas Connection

• Zinc-lead-silver - George Fisher

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Outlook - Mount Isa Zinc-Lead-Silver
Ore tonnes (000s)
4,000
2000 estimate
3,500
1999 estimate
3,000
2,500
Isa
2,000
1,500
George Fisher
1,000
500
Hilton
0
2003
2001
2002
2004
2009
2011
1999
2000
2005
2006
2007
2008
2010
Year ending 30 June
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