Wolfden Resources Corp. · TSXV:WLF
Wolfden Resources — Oxiana — Merger or Acquisition (March 2008)
30 slides from Wolfden Resources's merger presentation, March 2008
Slide 1: Oxiana and Zinifex merger
Oxiana and Zinifex merger Strength — Diversity — Growth March 2008 Page 1
Slide 2: Important notice
Important notice The purpose of this material is to provide general information about the proposed transaction between Oxiana Limited (“Oxiana”) and Zinifex Limited (“Zinifex”). This material is not and does not constitute an offer, invitation or recommendation to subscribe for, or purchase any shar
Slide 3: Presenters
Presenters Mr Owen Hegarty Mr Andrew Michelmore Chief Executive Officer and Chief Executive Officer and Managing Director Managing Director Oxiana Zinifex Page 3
Slide 4: Agenda
Agenda 1. OPENING REMARKS 5 2. MERGER SUMMARY 6 3. TRANSACTION RATIONALE 7 4. QUESTIONS & ANSWERS Page 4
Slide 5: Building a platform for growth
1 Building a platform for growth Combined vision to build a major diversified mining company A true 50 / 50 “merger of equals”—equal sharing of benefits Zinifex Scheme of Arrangement—3.1931 Oxiana shares per Zinifex share Combines two highly complementary asset portfolios, growth profiles, c
Slide 6: Merger summary
2 Merger summary Merger terms ♦ 3.1931 Oxiana shares for every Zinifex share Ownership ♦ Oxiana 50% / Zinifex 50% Structure ♦ Merger unanimously recommended by both Boards ♦ Implemented via Zinifex Scheme of Arrangement ♦ Approximately 3,101 million shares outstanding upon completion ♦ Mutual break
Slide 7: Creating a major diversified mining company
3 Creating a major diversified mining company A strong platform to deliver superior growth A Enhanced market position B Complementary portfolios C High quality assets D A diversified company E Strong cash flows and balance sheet F Sustainable demand for commodities G Strategic focus H Strong and com
Slide 8: A Enhanced market position
A Enhanced market position Top 25 ASX company and 3rd largest Australian diversified mining company S&P/ASX 200 (Resources companies¹) Global mining peers * BHP Billiton 209.3 Grupo Mexico 19.3 * Rio Tinto 160.5 Teck Cominco 18.6 Fortescue Metals 22.0 Antofagasta 17.0 Newcrest 17.3 Vedanta 13.4 * Co
Slide 9: B Complementary portfolios
B Complementary portfolios Complementary asset portfolios with leverage to continued global growth Operations Australia 1. Century (zinc/lead) 2. Golden Grove (zinc/copper/gold/silver) 3. Rosebery (zinc/lead/copper/gold/silver) Laos 10 11 4. Sepon Copper (copper) 5. Sepon Gold (gold) Projects under
Slide 10: C High quality assets
C High quality assets Diversified portfolio with attractive asset characteristics Significant scale – World’s second largest zinc producer by mine production – 200kt pa copper producer post Prominent Hill High grade mines – High quality / low impurities concentrate – Copper cathode production at
Slide 11: D A diversified company
D A diversified company Broader operational and geographic footprint provides stability 20071 gross revenue by metal2 Copper Gold Silver Copper Copper 53% Zinc 1% 4% 1% 23% 30% Lead Prominent Hill 7% + = development Silver 4% Lead 4% Gold Zinc 5% 63% Gold Lead Silver 10% Zinc 6% 4% 87% 20071 gross r
Slide 12: E Strong cash flows and balance sheet
E Strong cash flows and balance sheet Financial strength to support growth strategy Combined pro forma EBITDA of $1,666 million for 2007¹ Combined pro forma NPAT of $918 million for 2007¹ Combined cash on hand of $2,474 million as at 31 December 2007 Combined interest-bearing debt of $539 mi
Slide 13: F Sustainable demand for commodities
F Sustainable demand for commodities Well positioned to capture continued strong global growth in demand Market fundamentals remain attractive Growth in China remains robust – Supported by increasing growth from India, Brazil, Russia and the rest of Asia Comparative copper intensity Comparative
Slide 14: G Strategic focus
G Strategic focus Pursue the shared vision of becoming a major global diversified mining company, with growing, competitive and sustainable operations Maintain and grow the core base and precious metals businesses and increasingly diversify the operations across different commodities and geograp
Slide 15: H Strong and complementary development pipeline
H Strong and complementary development pipeline The combined company is well positioned to deliver superior growth Prominent Hill Martabe Rosebery Copper / gold Gold / silver Upgrade project project Sepon Copper Prominent Hill Izok Lake Prominent Hill Copper expansion UG expansion Zinc / copper UG e
Slide 16: I Experienced Board and management team
I Experienced Board and management team Highly experienced Board Board of Directors and CEO Innovative and experienced management team Barry Cusack, Chairman Extensive global and domestic mining expertise Combination of two individual Boards Proven track record in operating global assets And
Slide 17: Oxiana and Zinifex merger
Oxiana and Zinifex merger Strength — Diversity — Growth Page 17
Slide 18: Appendix A: Pro-forma overview
APPENDIX A Pro-forma overview1 Note: 1. Excludes impact of Allegiance Page 18
Slide 19: Pro forma reserves & resources
Pro forma reserves & resources Reserves1 Resources 1, 2 Oxiana Zinifex Combined Oxiana Zinifex Combined Zinc (Kt) 606.0 5,629.0 6,235.0 Zinc (Kt) 1,196.2 16,611.4 17,807.6 Copper (Kt) 1,862.7 15.3 1,878.0 Copper (Kt) 4,002.6 813.1 4,815.7 Gold (Moz) 4.1 0.2 4.3 Gold (Moz) 14.3 1.7 16.0 Silver (Moz)
Slide 20: Pro forma financials & production
Pro forma financials & production Pro forma financials (2007 calendar year) Oxiana Zinifex1 Combined Gross revenue ($m) 1,196.3 1,638.5 2,834.8 EBITDA ($m) 595.1 1,071.4 1,666.5 NPAT ($m) 305.8 612.2 918.0 Cash on hand ($m) 246.1 2,228.0 2,474.1 Interest-bearing debt ($m) 420.8 118.1 538.9 Notes: 1.
Slide 21: Appendix B: Asset overviews
APPENDIX B Asset overviews Page 21
Slide 22: Century (Zinifex)
Century (Zinifex) Location Overview Location Queensland, Australia Ownership 100% Reserves 46.2Mt @ 11.2% Zn, 1.1% Pb, 25.0g/t Ag Resources1 54.6Mt @ 12.5% Zn, 1.4% Pb, 34.1g/t Ag CY2007A 527 Kt Zn production 44 Kt Pb 4 Moz Ag Estimated mine 7+ years life Note: 1. Measured, indicated and inferred Ce
Slide 23: Golden Grove (Oxiana)
Golden Grove (Oxiana) Location Overview Location Western Australia, Australia Ownership 100% Reserves 9.9Mt @ 2.0% Cu, 6.1% Zn, 0.7% Pb, 0.9g/t Au, 46.2g/t Ag Resources1 29.8Mt @ 1.9% Cu, 4.0% Zn, 0.4% Pb, 0.8g/t Au, 40.6g/t Ag CY2007A 132 Kt Zn production 15 Kt Cu 8 Kt Pb 49 Koz Au 3 Moz Ag Estimat
Slide 24: Rosebery (Zinifex)
Rosebery (Zinifex) Location Overview Location Tasmania, Australia Ownership 100% Reserves 3.8Mt @ 11.9% Zn, 3.2% Pb, 115.0g/t Ag, 1.7g/t Au, 0.4% Cu Resources1 12.8Mt @ 12.1% Zn, 3.6% Pb, 135.2g/t Ag, 1.8g/t Au, 0.4% Cu CY2007A 84 Kt Zn production 22 Kt Pb 3 Moz Ag 31 Koz Au 2 Kt Cu Estimated mine 1
Slide 25: Sepon (Oxiana)
Sepon (Oxiana) Location Overview Location Sepon, Laos Ownership¹ 90% Reserves Sepon Gold: 3.9Mt @ 1.6g/t Au, 2.8g/t Ag Sepon Copper: 17.1Mt @ 4.6% Cu Resources2 Sepon Gold: 60.2Mt @ 1.8g/t Au, 6.4g/t Ag Sepon Copper: 67.5Mt @ 2.4% Cu, 12.0g/t Ag CY2007A 102 Koz Au production 145 Koz Ag 63 Kt Cu Esti
Slide 26: Prominent Hill (Oxiana)
Prominent Hill (Oxiana) Location Overview Location South Australia, Australia Ownership 100% Reserves 68.8Mt @ 1.3% Cu, 0.6g/ Au, 3.2g/t Ag Resources1 Copper/Gold: 152.8Mt @ 1.2% Cu, 0.5g/t Au, 2.9g/t Ag Gold Only: 38.2Mt @ 1.1g/t Au, 1.2 g/t Ag Expected first Second half 2008 production CY2008E 25
Slide 27: Martabe (Oxiana)
Martabe (Oxiana) Location Overview Location North Sumatra, Indonesia Ownership 100%1 Reserves 37.7Mt @ 1.9g/t Au, 24.9g/t Ag Resources2 138.2Mt @ 1.3g/t Au, 13.5g/t Ag Project status Approved Expected first 2010 production Estimated 200 Koz Au production 2 Moz Ag Estimated mine 9 year initial mine l
Slide 28: Dugald River (Zinifex)
Dugald River (Zinifex) Location Overview Location Queensland, Australia Ownership 100% Reserves na Resources1 47.9Mt @ 12.1% Zn, 2.1% Pb, 44.0g/t Ag Project status Development Expected first 2011 production Estimated mine 15+ years life Note: 1. Measured, indicated and inferred Dugald River Page 28
Slide 29: High Lake (Zinifex)
High Lake (Zinifex) Location Overview Location Nunavut, Canada Ownership 100% Reserves na Resources1 17.3Mt @ 3.4% Zn, 0.3% Pb, 70.1g/t Ag, 1.0g/t Au, 2.3% Cu Project status Development Expected first 2016 production Estimated mine 12+ years life Note: 1. Measured, indicated and inferred High Lake P
Slide 30: Izok Lake (Zinifex)
Izok Lake (Zinifex) Location Overview Location Nunavut, Canada Ownership 100% Reserves na Resources1 14.8Mt @ 12.7% Zn, 1.3% Pb, 70.5g/t Ag, 2.5% Cu Project status Development Expected first 2014 production Estimated mine 10+ years life Note: 1. Measured, indicated and inferred Izok Lake Page 30