March 2016 -...

GOLD NICKELCOPPER IRON ORE

Au NiCu Fe

PCF Resources ThermometerMarch 2016

PCF Resources Thermometer 2

Contents

SECTION PAGE

Executive Summary 3

PCF Group 150 4

Consensus Commodity Price Forecasts 6

Gold Thermometer 7

Copper Thermometer 13

Nickel Thermometer 18

Iron Ore Thermometer 23

PCF Corporate Advisory

PCF Capital Group

• Public market takeovers

• Corporate mergers and acquisitions

• General corporate advice

• Asset acquisitions and divestment

• Equity capital raising

• Corporate restructuring

• Strategic and technical reviews

• Indicative valuations

• Structured debt and hybrid funding

• Mezzanine, convertible and commodity loans

• Access to non bank funding network

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• Debt sizing

• Cash and short term investment solutions

• Financial models

Liam TwiggerManaging Director

Darren MartinExecutive Director

Graeme TestarDirector

Mike SperinckTechnical Director

MinesOnline.com

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• ~ 4,000 users from over 100 countries

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Liam TwiggerManaging Director

3PCF Resources Thermometer

Executive Summary

We are pleased to present the March edition of the PCF Resources Thermometer including the PCF Group 150, a ranking of the top 150 ASX listed resources companies (excluding oil and gas), by market capitalisation.

During the month of February the value of the PCF Group 150 increased by A$16.7 billion (+9%) to A$208.3 billion, with approximately 75% of companies experiencing market capitalisation uplifts.....is this the bottom?

Gold companies were the greatest beneficiaries with share prices for the producers rallying on average 42% and the developers increasing on average 25%, driven by the spot gold price increasing from A$1,578 to A$1,734 during the course of the month.

A number of the majors released their annual results in February, which served as a reminder of the decline in commodity prices experienced across the board throughout the second half of CY15.

Updated strategies were presented with the common themes focussed on streamlining portfolios and plans to address balance sheet weakness. The question remains, will we see a serious level of M&A?

Information presented in this document references data as at 29 February 2016. Explanatory Notes on page 28 may be of assistance when interpreting information contained throughout this document.

SNAPSHOT

PCF Group 150 • Market value of PCF Group 150 was A$208.3 billion, up A$16.7 billion (+9%) from January.

Price Performance

• All sectors, with the exception of Iron Ore, experienced positive share price movements month on month.

• The Gold producers were the strongest performers, rising 42% on average. • The stand out share price performance for the month of February was Millennium Minerals which

experienced a 176% share price lift following the announcement of strong 2016 guidance, an exploration update and the accelerated debt repayment enabling it to clear its balance sheet of debt.

Peer Company Valuations

• Average peer valuation performances for the month of February were as follows:• In the Gold sector, both producers and explorers experienced positive valuation uplifts due

to strong share price and underlying commodity price performance;• Copper and Nickel company valuations increased month on month. This is the first time since

the November 2015 Edition that Nickel valuations have increased; and • Iron Ore company valuations fell, despite the strong underlying commodity’s price

performance.

Liquidity & Short Positions

• Liquidity levels in the Gold sector increased significantly during the month of February. All companies experienced an increase, bar Gryphon, Excelsior and Austral.

• The Copper sector as a whole experienced an increase in liquidity levels month on month, led by Oz Minerals, whose liquidity was boosted by constant news flow.

• Nickel sector liquidity rose month on month, with Independence and Panoramic showing notable increases.

• In Iron Ore, Atlas’ liquidity rose substantially on the back of its half-year results. Overall the sector’s liquidity level increased month on month.

• Short positions remained relatively stable month on month, with no noteworthy changes.

Transaction Metrics

• During the month of February a number of project level transactions were announced, including, but not limited to: • Riedel Resources’ sale of the Millrose Gold Project to Bowlance Nominees (WA) Limited;• Salt Lake Mining Pty Ltd’s sale of the Widgiemooltha & Carr Boyd exploration projects; and• NuLegacy Gold Corporation’s acquisition of Barrick’s interest in the Redhill property.

• In February a number of project level transactions were completed, including, but not limited to: • McEwen Mining Inc’s acquisition of the Afgan-Kobeh Project from NV Gold Corporation;• Kingsgate Consolidated’s sale of the Challenger Gold Mine;• Metals X’s acquisition of the Comet Gold Project from Silver Lake Resources; and• Orion Gold NL’s sale of the Walhalla Mining Tenement to A1 Consolidated Gold.


By Market Capitalisation. Rank Mkt Cap (A$M) % Rank Mkt Cap (A$M) %

Feb Jan Company 29-Feb-16 31-Jan-16 Change Feb Jan Company 29-Feb-16 31-Jan-16 Change

1 1 BHP Billiton Limited (ASX:BHP) $79,909.6 $77,983.4 2.5% 51 68 Lucapa Diamond Company Ltd (ASX:LOM) $109.3 $74.8 46.0%

2 2 Rio Tinto Ltd. (ASX:RIO) $67,994.5 $63,910.5 6.4% 52 50 Grange Resources Limited (ASX:GRR) $105.3 $100.7 4.6%

3 3 Newcrest Mining Limited (ASX:NCM) $13,413.9 $9,872.7 35.9% 53 60 TNG Limited (ASX:TNG) $103.6 $85.7 20.8%

4 5 South32 Ltd (ASX:S32) $6,654.7 $5,190.7 28.2% 54 46 Magnis Resources Limited (ASX:MNS) $102.4 $123.2 (16.9%)

5 4 Fortescue Metals Group Limited (ASX:FMG) $6,352.1 $5,386.9 17.9% 55 51 Universal Coal plc (ASX:UNV) $101.3 $98.8 2.6%

6 6 Alumina Ltd. (ASX:AWC) $3,873.4 $2,980.6 30.0% 56 111 Millennium Minerals Limited. (ASX:MOY) $100.3 $36.4 175.5%

7 7 Iluka Resources Ltd. (ASX:ILU) $2,817.9 $2,273.5 23.9% 57 61 Alkane Resources Limited (ASX:ALK) $99.4 $84.9 17.1%

8 8 Evolution Mining Limited (ASX:EVN) $2,566.5 $2,125.3 20.8% 58 80 Blackham Resources Limited (ASX:BLK) $97.4 $60.5 60.8%

9 9 Northern Star Resources Limited (ASX:NST) $2,340.8 $1,776.1 31.8% 59 90 Kingsgate Consolidated Limited (ASX:KCN) $96.1 $50.3 91.1%

10 12 OZ Minerals Limited (ASX:OZL) $1,529.5 $1,144.1 33.7% 60 69 Kazakhstan Potash Corp. Ltd (ASX:KPC) $93.9 $73.0 28.6%

11 13 Independence Group NL (ASX:IGO) $1,309.2 $1,120.0 16.9% 61 57 General Mining Corporation Ltd (ASX:GMM) $88.8 $91.7 (3.1%)

12 11 Regis Resources Limited (ASX:RRL) $1,289.4 $1,174.5 9.8% 62 59 RAND Mining Ltd. (ASX:RND) $87.2 $87.2 0.0%

13 10 New Hope Corporation Limited (ASX:NHC) $1,105.3 $1,371.2 (19.4%) 63 54 Yancoal Australia Ltd (ASX:YAL) $85.5 $94.5 (9.5%)

14 14 Syrah Resources Limited (ASX:SYR) $1,024.8 $883.4 16.0% 64 58 Berkeley Resources Ltd. (ASX:BKY) $85.5 $87.3 (2.1%)

15 16 ST Barbara Ltd. (ASX:SBM) $928.3 $732.8 26.7% 65 91 Altura Mining Limited (ASX:AJM) $85.4 $50.0 70.9%

16 15 Sandfire Resources NL (ASX:SFR) $895.2 $786.6 13.8% 66 75 Atrum Coal NL (ASX:ATU) $84.9 $68.1 24.7%

17 17 Saracen Mineral Holdings Limited (ASX:SAR) $773.0 $570.8 35.4% 67 84 Axiom Mining Limited (ASX:AVQ) $84.5 $55.0 53.7%

18 21 Whitehaven Coal Limited (ASX:WHC) $564.3 $420.7 34.1% 68 67 Bougainville Copper Ltd. (ASX:BOC) $84.2 $76.2 10.5%

19 19 Western Areas Limited (ASX:WSA) $485.5 $440.0 10.3% 69 70 Austral Gold Limited (ASX:AGD) $83.8 $71.8 16.7%

20 20 Orocobre Limited (ASX:ORE) $452.8 $422.5 7.2% 70 71 Finders Resources Limited (ASX:FND) $81.3 $71.2 14.3%

21 18 Metals X Limited (ASX:MLX) $444.2 $455.9 (2.6%) 71 52 Coal of Africa Limited (ASX:CZA) $80.9 $96.4 (16.0%)

22 22 Aquarius Platinum Limited (ASX:AQP) $384.9 $369.8 4.1% 72 55 Tiger Resources Ltd. (ASX:TGS) $80.8 $83.7 (3.4%)

23 31 Resolute Mining Limited (ASX:RSG) $359.3 $208.5 72.3% 73 63 Kingsrose Mining Limited (ASX:KRM) $80.7 $80.7 0.0%

24 28 Gold Road Resources Limited (ASX:GOR) $356.8 $272.8 30.8% 74 81 Excelsior Gold Limited (ASX:EXG) $73.7 $59.6 23.8%

25 26 Zimplats Holdings Ltd. (ASX:ZIM) $349.8 $312.1 12.1% 75 73 Blackgold International Hold. Ltd (ASX:BGG) $69.3 $69.3 0.0%

26 24 Cudeco Limited (ASX:CDU) $348.5 $348.5 0.0% 76 53 Australian Pacific Coal Limited (ASX:AQC) $69.1 $95.0 (27.3%)

27 23 Paladin Energy Ltd (ASX:PDN) $316.9 $359.7 (11.9%) 77 62 Elemental Minerals Limited (ASX:ELM) $69.1 $82.1 (15.8%)

28 27 Pilbara Minerals Limited (ASX:PLS) $311.7 $290.2 7.4% 78 78 Focus Minerals Limited (ASX:FML) $68.5 $64.0 7.1%

29 29 Terramin Australia Limited (ASX:TZN) $260.3 $251.3 3.6% 79 74 Vimy Resources Limited (ASX:VMY) $62.8 $68.5 (8.3%)

30 34 Doray Minerals Limited (ASX:DRM) $258.3 $184.5 40.0% 80 85 MZI Resources Ltd. (ASX:MZI) $62.1 $54.7 13.5%

31 25 Lynas Corporation Limited (ASX:LYC) $251.2 $331.4 (24.2%) 81 82 Aditya Birla Minerals Limited (ASX:ABY) $61.1 $59.5 2.6%

32 30 Galaxy Resources Limited (ASX:GXY) $217.4 $223.7 (2.9%) 82 98 Red 5 Limited (ASX:RED) $60.9 $43.4 40.4%

33 48 Dacian Gold Limited (ASX:DCN) $209.1 $112.5 85.9% 83 76 Talisman Mining Ltd (ASX:TLM) $60.9 $66.9 (8.9%)

34 32 Mount Gibson Iron Limited (ASX:MGX) $196.4 $201.9 (2.7%) 84 79 Reward Minerals Limited (ASX:RWD) $59.6 $63.3 (5.8%)

35 40 Perseus Mining Limited (ASX:PRU) $195.9 $145.6 34.5% 85 184 Base Resources Limited (ASX:BSE) $56.3 $17.5 222.3%

36 43 Ramelius Resources Limited (ASX:RMS) $187.1 $125.5 49.1% 86 89 Sheffield Resources Limited (ASX:SFX) $56.0 $51.5 8.9%

37 36 Tribune Resources Limited (ASX:TBR) $180.4 $170.3 5.9% 87 112 Gascoyne Resources Limited (ASX:GCY) $53.6 $34.0 57.6%

38 45 Beadell Resources Ltd (ASX:BDR) $179.7 $123.8 45.2% 88 33 Arrium Limited (ASX:ARI) $52.9 $196.8 (73.1%)

39 38 CI Resources Limited (ASX:CII) $178.0 $156.0 14.1% 89 64 Leigh Creeek Energy Limited (ASX:LCK) $51.9 $79.5 (34.8%)

40 35 Energy Resources of Australia Ltd. (ASX:ERA) $176.0 $178.6 (1.4%) 90 86 NKWE Platinum Ltd (ASX:NKP) $51.1 $53.8 (5.0%)

41 41 Avanco Resources Limited (ASX:AVB) $172.0 $142.5 20.7% 91 92 Highlands Pacific Limited (ASX:HIG) $51.0 $49.7 2.6%

42 47 Silver Lake Resources Limited (ASX:SLR) $163.6 $115.7 41.3% 92 72 Tanami Gold NL (ASX:TAM) $50.5 $69.3 (27.1%)

43 39 Newfield Resources Limited (ASX:NWF) $150.4 $150.4 0.0% 93 94 Havilah Resources NL (ASX:HAV) $50.4 $44.6 13.2%

44 56 Neometals Limited (ASX:NMT) $145.4 $92.2 57.6% 94 103 Avenira Limited (ASX:AEV) $50.3 $41.9 20.0%

45 66 Troy Resources Limited (ASX:TRY) $144.8 $76.7 88.9% 95 99 Nagambie Resources Limited (ASX:NAG) $48.3 $43.1 12.0%

46 37 Peninsula Energy Limited (ASX:PEN) $144.7 $161.0 (10.1%) 96 109 Pacific Niugini Ltd (ASX:PNR) $48.1 $36.8 30.8%

47 42 Wolf Minerals Limited (ASX:WLF) $141.7 $133.6 6.1% 97 88 Altona Mining Limited (ASX:AOH) $47.6 $52.9 (10.1%)

48 65 Medusa Mining Limited (ASX:MML) $127.8 $79.0 61.8% 98 96 Danakali Limited (ASX:DNK) $47.5 $43.9 8.0%

49 44 Toro Energy Limited (ASX:TOE) $120.3 $124.3 (3.2%) 99 95 Capral Limited (ASX:CAA) $46.5 $44.1 5.4%

50 49 Dome Gold Mines Limited (ASX:DME) $111.9 $111.9 0.0% 100 83 Iron Road Limited (ASX:IRD) $44.8 $58.2 (23.0%)

PCF GROUP 150Top 150 ASX Listed Resource Companies - 29 February 2016

Source: Bloomberg


New Entrants• 85 - Base Resources Limited (ASX:BSE)• 110 - Wollongong Coal Limited (ASX:WLC)• 112 - Sumatra Copper & Gold plc (ASX:SUM)• 117 - Tanga Resources Limited (ASX:TRL)• 128 - Haoma Mining NL (ASX:HAO)• 129 - Kalnorth Gold Mines Ltd (ASX:KGN)• 131 - Gryphon Minerals Ltd (ASX:GRY)• 140 - Cauldron Energy Limited (ASX:CXU)• 141 - Burey Gold Limited (ASX:BYR)• 142 - Mineral Deposits Ltd (ASX:MDL)• 146 - Stonewall Resources Limited (ASX:SWJ)• 147 - Metaliko Resources Limited (ASX:MKO)• 148 - Cardinal Resources Limited (ASX:CDV)• 150 - Tasman Resources Ltd (ASX:TAS)

Rank Mkt Cap (A$M) % Rank Mkt Cap (A$M) %

Feb Jan Company 29-Feb-16 31-Jan-16 Change Feb Jan Company 29-Feb-16 31-Jan-16 Change

101 102 Xanadu Mines Ltd. (ASX:XAM) $44.5 $42.3 5.3% 126 136 MacPhersons Resources Limited (ASX:MRP) $31.4 $25.4 23.8%

102 131 Azure Minerals Limited (ASX:AZS) $43.6 $27.4 59.1% 127 115 African Energy Resources Limited (ASX:AFR) $30.4 $32.2 (5.6%)

103 93 Intrepid Mines Limited (ASX:IAU) $43.5 $46.3 (6.0%) 128 247 Haoma Mining NL (ASX:HAO) $30.4 $11.4 166.7%

104 97 Talga Resources Limited (ASX:TLG) $43.2 $43.9 (1.7%) 129 435 Kalnorth Gold Mines Ltd (ASX:KGN) $30.4 $4.0 660.9%

105 107 Paringa Resources Limited (ASX:PNL) $41.8 $40.3 3.8% 130 124 Peak Resources Limited (ASX:PEK) $30.2 $29.8 1.4%

106 77 OM Holdings Limited (ASX:OMH) $41.1 $66.0 (37.8%) 131 168 Gryphon Minerals Ltd. (ASX:GRY) $30.1 $19.7 53.1%

107 104 Audalia Resources Limited (ASX:ACP) $40.6 $40.6 0.0% 132 138 Gulf Industrials Ltd (ASX:GLF) $30.0 $24.5 22.2%

108 105 Mineral Commodities Limited (ASX:MRC) $40.5 $40.5 0.0% 133 116 Lithium Australia NL (ASX:LIT) $29.8 $31.4 (5.2%)

109 106 Aguia Resources Limited (ASX:AGR) $40.4 $40.4 0.0% 134 117 Northern Minerals Limited (ASX:NTU) $28.7 $31.4 (8.5%)

110 220 Wollongong Coal Limited (ASX:WLC) $39.6 $13.8 187.0% 135 121 Hot Chili Limited (ASX:HCH) $28.6 $30.4 (5.9%)

111 100 Orinoco Gold Limited (ASX:OGX) $39.0 $40.2 (2.9%) 136 127 Poseidon Nickel Limited (ASX:POS) $28.4 $28.4 0.0%

112 159 Sumatra Copper & Gold plc (ASX:SUM) $38.5 $21.0 83.3% 137 110 Triton Minerals Limited (ASX:TON) $27.8 $36.6 (24.1%)

113 101 Atlas Iron Limited (ASX:AGO) $37.4 $42.7 (12.5%) 138 137 Tigers Realm Coal Limted (ASX:TIG) $27.8 $25.1 10.7%

114 108 Heron Resources Limited (ASX:HRR) $37.4 $37.4 0.0% 139 120 Champion Iron Limited (ASX:CIA) $27.8 $30.7 (9.7%)

115 113 Equatorial Resources Limited (ASX:EQX) $37.3 $33.6 11.1% 140 153 Cauldron Energy Limited (ASX:CXU) $27.1 $22.0 23.5%

116 123 Stanmore Coal Limited (ASX:SMR) $36.7 $30.0 22.2% 141 188 Burey Gold Limited (ASX:BYR) $27.0 $16.9 60.0%

117 199 Tanga Resources Limited (ASX:TRL) $34.8 $15.9 118.3% 142 156 Mineral Deposits Ltd. (ASX:MDL) $27.0 $21.8 23.8%

118 118 Chalice Gold Mines Limited (ASX:CHN) $33.9 $31.1 9.1% 143 148 Sundance Resources Limited (ASX:SDL) $26.4 $23.1 14.3%

119 133 Panoramic Resources Limited (ASX:PAN) $33.7 $26.4 28.0% 144 114 White Energy Company Limited (ASX:WEC) $26.3 $32.8 (20.0%)

120 132 Copper Strike Ltd. (ASX:CSE) $33.7 $26.7 26.0% 145 130 Kibaran Resources Limited (ASX:KNL) $26.2 $27.9 (6.1%)

121 119 Unity Mining Limited (ASX:UML) $33.1 $30.9 7.4% 146 181 Stonewall Resources Limited (ASX:SWJ) $25.8 $18.2 41.7%

122 122 S2 Resources Limited (ASX:S2R) $32.4 $30.2 7.1% 147 254 Metaliko Resources Limited (ASX:MKO) $25.2 $11.0 128.0%

123 149 World Titanium Resources Ltd. (ASX:WTR) $32.2 $23.0 40.0% 148 160 Cardinal Resources Limited (ASX:CDV) $25.1 $20.8 20.8%

124 134 Mincor Resources NL (ASX:MCR) $32.0 $26.4 21.4% 149 140 Hastings Technology Metals Ltd (ASX:HAS) $24.6 $24.2 1.6%

125 128 Citigold Corporation Limited (ASX:CTO) $31.8 $28.3 12.5% 150 166 Tasman Resources Ltd. (ASX:TAS) $24.5 $19.8 23.3%

New Exits • Prairie Mining Limited. (ASX:PDZ)• Gindalbie Metals Ltd (ASX:GBG)• Western Mining Network Limited (ASX:WMN)• Bannerman Resources Limited (ASX:BMN)• Strategic Minerals Corp. NL (ASX:SMC)• Cradle Resources Limited (ASX:CXX)• Greenland Minerals & Energy Ltd (ASX:GGG)• Arafura Resources Limited (ASX:ARU)• Amex Resources Ltd (ASX:AXZ)• Geopacific Resources Limited (ASX:GPR)• Resource Generation Limited (ASX:RES)• Graphitecorp Ltd (ASX:GRA)• Metro Mining Ltd (ASX:MMI)• Hillgrove Resources Ltd. (ASX:HGO)

Winners and Losers - Market Capitalisation Performance


Source: Bloomberg Consensus Estimates - Median / High / Low as at 1 March 2016.

Consensus Commodity Price Forecasts

Gold (US$/oz) Silver (US$/oz)

Copper (US$/lb) Nickel (US$/lb)

Zinc (US$/lb) Lead (US$/lb)

Iron Ore Fines 62% (US$/MT) Uranium (US$/lb)

AUD:USD NYMEX (US$/bbl)

$1,244$1,100 $1,167 $1,150 $1,095

$0

$500

$1,000

$1,500

$2,000

Spot 2016 2017 2018 2019

$14.95 $14.80 $15.78 $16.00 $16.70

$0

$5

$10

$15

$20

$25

$30

Spot 2016 2017 2018 2019

$2.13 $2.16 $2.38 $2.49 $2.34

$0.00

$1.00

$2.00

$3.00

$4.00

Spot 2016 2017 2018 2019

$3.86 $4.27$5.07

$6.12

$4.89

$0.00

$4.00

$8.00

Spot 2016 2017 2018 2019

$0.80 $0.77$0.87 $0.91 $0.85

$0.00

$0.50

$1.00

$1.50

Spot 2016 2017 2018 2019

$0.80 $0.82 $0.86 $0.89 $0.86

$0.00

$0.50

$1.00

$1.50

Spot 2016 2017 2018 2019

$49.62$42.00 $44.00 $45.00 $45.00

$0.00

$20.00

$40.00

$60.00

$80.00

Spot 2016 2017 2018 2019

$32.00$39.90

$45.00$50.00

$0

$25

$50

$75

Spot 2016 2017 2018

$0.71 $0.70 $0.73 $0.75 $0.77

$0.00

$0.25

$0.50

$0.75

$1.00

Spot 2016 2017 2018 2019

$33.84 $39.00$52.53

$60.00 $60.00

$0

$50

$100

Spot 2016 2017 2018 2019


GOLDThermometer


6% 11% 10%

25%17% 15% 17%

45%40%

21%

91%

62%

-6%

36% 32% 33%

15%

35%49%

40%

10%

72%

35% 41%

27%

39%

89%

-100%

-80%

-60%

-40%

-20%

0%

20%

40%

60%

80%

100%

Pric

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man

ce

176%

-6%

16% 18%7%

0%

22% 17%

73%81%

56%

-30%

64%

-13%

60% 60%

46%

-19%

17%

43%33%

99%85%

14%

89%

-100%

-80%

-60%

-40%

-20%

0%

20%

40%

60%

80%

100%

Pric

e Pe

rfor

man

ce

221% 132% 111%117%

-37%

2%12%

-2%

-38%

-77%

46%

-30%

72%

-46%-37%

-24%

22%

65%

51%

-55%

4%

-30%

35%

70%59%

-20% -23%

-100%

-80%

-60%

-40%

-20%

0%

20%

40%

60%

80%

100%

Pric

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man

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752%229% 132%246%121%

Gold Producers- Relative Performance

1 Month Share Price Performance - Average 42%




-6%

16% 18%

-20%

0%

67%

4%

-13%

98%

10%

32%

60%

30%

7%

-19%

-100%

-80%

-60%

-40%

-20%

0%

20%

40%

60%

80%

100%

Pric

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109% 113%

6% 11% 10%

33% 25%

11%

60%

9%

30%

86%

24%

7%

31%

53%

13%

-27%

-5%

-100%

-80%

-60%

-40%

-20%

0%

20%

40%

60%

80%

100%

Pric

e Pe

rfor

man

ce

-37%

2%12%

-72%

-7%

43%

-11%

-46%

30%

-17%

40%

0%

40%

65%

-35%

-100%

-80%

-60%

-40%

-20%

0%

20%

40%

60%

80%

100%

Pric

e Pe

rfor

man

ce

293%243%

Gold - Developers & Explorers - Relative Performance





$61

$53

$51

$22

$19

$15

$10

$8 $8 $7 $6

$5

-$1

-$2

-$10

$0

$10

$20

$30

$40

$50

$60

$70

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February Resource Metric

January Average $13/oz

February Average $16/oz

Peer Company ValuationsProducers - EV / Resource (A$/oz AuEq)

Producers - EV / Reserve (A$/oz AuEq)

Explorers & Developers - EV / Resources (A$/oz AuEq)

1. OceanaGold - Based on gold assets only and includes Haile (Romarco acquisition) and Waihi. 2. Evolution - Resources and Reserves include the Cowal, Mungari and Phoenix Gold acquisitions. 3. Northern Star - Does not include the Central Tanami acquisition (Tanami Gold) or the Kailis/King of the Hills acquisition (St Barbara). 4. St Barbara – Includes Kailis /King of the Hills Gold Projects.5. Metals X - Based on Gold and Tin Divisions, includes the Mt Henry, Grosvenor, Georges Reward and Comet Gold Project acquisitions.6. Crusader - A producing iron ore company, its gold metrics are derived from its Borborema and Juruena Gold Projects. 7. Tanami - Excludes the 25% interest attributable to NST with regards to the Central Tanami Project.8. Saracen - Does not include Thunderbox Nickel.9. Havilah - Based on Portia, North Portia and Kalkaroo only. Converted to AuEq.

$237

$211

$178

$177

$159

$133

$125

$123

$103

$95

$83

$78

$71

$65

$48

$42

$39

$35

$35

$34

$30

$25

$20

$15

$11

$0

$50

$100

$150

$200

$250

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Red

5

Alac

er

Tera

nga

Reso

lute

Silv

er L

ake

Met

als X

King

sgat

e

Pers

eus

February Resource MetricJanuary Average $66/ozFebruary Average $86/oz

$741

$601

$500

$472

$422

$422

$375

$350

$296

$294

$277

$266

$177

$164

$152

$138

$92

$88

$86

$70

$70

$64

$35

$0$100$200$300$400$500$600$700$800

Nort

hern

Sta

r

Mill

eniu

m

Regi

s

Sara

cen

Evol

utio

n

Oce

anaG

old

Troy

Dora

y

Ram

eliu

s

Alka

ne

Aure

lia

St B

arba

ra

Med

usa

Bead

ell

Aust

ral

Silv

er L

ake

New

cres

t

Red

5

Met

als X

Reso

lute

Alac

er

Tera

nga

King

sgat

e

Pers

eus

February Reserve MetricJanuary Average $223/ozFebruary Average $312/oz

$1,4

17


0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

King

sgat

e

Bead

ell

Troy

Med

usa

Regi

s

Pers

eus

Nort

hern

Sta

r

Sara

cen

New

cres

t

Evol

utio

n

Oce

anaG

old

Gold

Roa

d

Reso

lute

Alac

er

Silv

er L

ake

St B

arba

ra

Met

als X

Alka

ne

Tera

nga

Gryp

hon

% Change Decrease

% Change Increase

1.5% January Average

1.5% February Average

Gold Sector Liquidity / Shorts

Gold Sector Liquidity

Gold Sector Short Positions

Note: Bar chart illustrates monthly share turnover as a percentage of total shares on issue, from largest to smallest. An increase in share turnover (month-on-month) is represented by a light blue bar on top of the prior month’s share turnover (being the dark blue bar). A decrease in share liquidity (month-on-month) is represented by the red bar (representing the prior month’s share turnover) falling to the dark blue bar component (being the current month’s turnover).

Note: Bar chart illustrates reported short positions as a percentage of total shares on issue, from largest to smallest result. An increase in short positions (month-on-month) is represented by a light blue bar on top of the prior month’s short positions (being the dark blue bar). A decrease in short positions (month-on-month) is represented by the red bar (representing the prior month’s short positions) falling to the dark blue bar component (being the current month’s short positions). Compares data from 22/01/2016 to 23/02/2016.

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

Tera

nga

Bead

ell

Troy

Silv

er L

ake

Nort

hern

Sta

r

Regi

s

Ram

eliu

s

Mill

eniu

m

Alac

er

Dora

y

Pers

eus

New

cres

t

St B

arba

ra

Evol

utio

n

Med

usa

King

sgat

e

Blac

kham

Reso

lute

Dacia

n

Sara

cen

Met

als X

Gold

Roa

d

Gryp

hon

ABM

Red

5

Oce

anaG

old

Alka

ne

Wes

t Afri

can

Azum

ah

Aure

lia

Exce

lsior

Chal

ice

Crus

ader

Anov

a

Havi

lah

Tana

mi G

old

PanT

erra

Focu

s

Aust

ral

% Change Decrease

% Change Increase




Gold Transaction Metrics - Resource and Reserve Multiples

Development (US$/oz AuEq)

Care & Maintenance (US$/oz AuEq)

Exploration (US$/oz AuEq)

Operation (US$/oz AuEq)

$15

$13

$9*

$31*

$23*

$0

$5

$10

$15

$20

$25

$30

$35

5 yr average 3 yr average 1 yr average

$68$79 $85

$174$164

$283*

$0

$50

$100

$150

$200

$250

$300


$54

$29

$13*

$84

$72 $72*

$0

$10

$20

$30

$40

$50

$60

$70

$80

$90


$21

$15

$5

$0

$5

$10

$15

$20

$25


1. Completed transactions only*Denotes metric is derived from four transaction results or less

Resource Reserve

N/a


COPPERThermometer


-6%

2%

-19%

32%

-8%

-40%-49%

-9%-19%

25%

-43%

-23%

8%

-5%

5%

-20% -20%-15% -19% -20%

-100%

-80%

-60%

-40%

-20%

0%

20%

40%

60%

80%

100%

Pric

e Pe

rfor

man

ce

-37%

-21%-11% -8%

-71%

-53%

2%

-41%

32%

-74%

-41%

30%

3% 5%

-85%

-21%-32% -33%

-100%

-80%

-60%

-40%

-20%

0%

20%

40%

60%

80%

100%

Pric

e Pe

rfor

man

ce

141%133%

6% 3%

-10%

21%

59%

-30%

-8% -2% -2%

34%

-8% -5%

14%

40%

2% 0%

-9% -8% -12%-20%

-100%

-80%

-60%

-40%

-20%

0%

20%

40%

60%

80%

100%

Pric

e Pe

rfor

man

ceCopper Stocks Relative Performance


3 Month Share Price Performance - Average -13%




EV / Resource (A$/lb CuEq)

EV / Reserve (A$/lb CuEq)

1. Azure Minerals EV/Resource metric attributes 100% of the Promontorio Project. Rio Tinto has an option to earn up to 80% of the Project over 6 years.

$0.2

37

$0.0

90

$0.0

77

$0.0

73

$0.0

52

$0.0

38

$0.0

28

$0.0

16

$0.0

15

$0.0

07

$0.0

04

$0.0

02

$0.0

01

$0.0

01

-$0.

009

-$0.05

$0.00

$0.05

$0.10

$0.15

$0.20

$0.25

$0.30

Sand

fire

Azur

e

Tige

r

Aeris

Avan

co

Hillg

rove

Oz M

in

Stav

ely

KGL

Hot C

hili

Synd

icat

ed

Vent

urex

Rega

l

Alto

na Rex

Intr

epid


January Average $0.064/lb

February Average $0.077/lb

$0.5

93

$0.9

05

$0.5

56

$0.1

96

$0.1

22

$0.1

09

$0.0

81

$0.0

58

$0.0

36

$0.0

09

$0.0

05

$0.0

03

-$0.

009

-$0.20

$0.00

$0.20

$0.40

$0.60

$0.80

$1.00

Sand

fire

Avan

co

Aeris

Tige

r

Oz M

in

Hillg

rove

KGL

Hot C

hili

Vent

urex

Alto

na Rex

Intr

epid

February Reserve Metric




0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

Oz M

in

Sand

fire

Tige

r

Rex

Aeris

% Change Decrease

% Change Increase



Copper Sector Liquidity / Shorts

Copper Sector Liquidity

Copper Sector Short Positions



0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

Oz M

in

Sand

fire

Azur

e

Talis

man

Alto

na

Intr

epid

Tige

r

Rex

Rega

l

Aeris KG

L

Thun

dela

rra

Hillg

rove

Synd

icat

ed

Avan

co

Hot C

hili

Vent

urex

Stav

ely

% Change Decrease% Change Increase2.4% January Average3.1% February Average


Copper Transaction Metrics - Resource and Reserve Multiples

Development (US$/lb CuEq)

Care & Maintenance (US$/lb CuEq)

Exploration (US$/lb CuEq)

Operation (US$/lb CuEq)

$0.026

$0.020

$0.003

$0.000

$0.005

$0.010

$0.015

$0.020

$0.025

$0.030


$0.045$0.051

$0.016*

$0.163

$0.141*

$0.000

$0.020

$0.040

$0.060

$0.080

$0.100

$0.120

$0.140

$0.160

$0.180


$0.191 $0.190 $0.195*

$0.367

$0.394

$0.264*

$0.000

$0.050

$0.100

$0.150

$0.200

$0.250

$0.300

$0.350

$0.400

$0.450


$0.034*

$0.008* $0.008*

$0.192* $0.192* $0.192*

$0.000

$0.050

$0.100

$0.150

$0.200

$0.250



N/a

Resource Reserve


NICKELThermometer


-6% -4%

12%17%

-19%

6%

-31%

-52%

-23% -27%

-50%

-6%

-100%

-80%

-60%

-40%

-20%

0%

20%

40%

60%

80%

100%

Pric

e Pe

rfor

man

ce

-37% -40%

-62%

-21%-5%

-55%

-75% -83%-73%

-60%

-83%

-51%

-100%

-80%

-60%

-40%

-20%

0%

20%

40%

60%

80%

100%

Pric

e Pe

rfor

man

ce

6%

-1%

53%

93%

2%

17% 21% 28%

0%

22%

0%10%

-100%

-80%

-60%

-40%

-20%

0%

20%

40%

60%

80%

100%

Pric

e Pe

rfor

man

ceNickel Stocks Relative Performance






EV / Resource (A$/lb NiEq)

EV / Reserve (A$/lb NiEq)

$0.6

16

$0.4

81

$0.1

59

$0.0

73

$0.0

69

$0.0

28

$0.0

25

$0.0

13

$0.0

05

$0.0

01

$0.00

$0.10

$0.20

$0.30

$0.40

$0.50

$0.60

$0.70

Inde

pend

ence

Wes

tern

Are

as

High

land

s

Rox

Pose

idon

Duke

ton

Min

cor

Pano

ram

ic

Segu

e

Cass

ini




$1.0

19

$0.9

73

$0.5

83

$0.3

87

$0.1

97

$0.0

69

$0.00

$0.20

$0.40

$0.60

$0.80

$1.00

$1.20

Wes

tern

Are

as

Inde

pend

ence

Pose

idon

High

land

s

Min

cor

Pano

ram

ic

February Reserve Metric



1. Nickel Metrics derived from:- Panoramic - Savannah, Copernicus and Lanfranchi Nickel Projects.- Independence - Tropicana, Long, Jaguar, Stockman and Nova - converted into a NiEq.- Rox - Fisher East Project.- Highlands - JV interest in the Ramu Nickel Project.- Poseidon - All projects, excluding Windarra Gold Tailings.- Mincor - All Projects, excluding Tottenham Copper-Gold Project.


0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

18.0%

Wes

tern

Are

as

Inde

pend

ence

Pano

ram

ic

Min

cor

% Change Decrease

% Change Increase



Nickel Sector Liquidity / Shorts

Nickel Sector Liquidity

Nickel Sector Short Positions



0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

18.0%

20.0%

Inde

pend

ence

Wes

tern

Are

as

Pano

ram

ic

Pose

idon

Duke

ton

Min

cor

Rox

Cass

ini

Segu

e

High

land

s

% Change Decrease

% Change Increase




Nickel Transaction Metrics - Resource and Reserve Multiples

Development (US$/lb NiEq)

Care & Maintenance (US$/lb NiEq)

Exploration (US$/lb NiEq)

Operation (US$/lb NiEq)

$0.035*

$0.010*

$0.000

$0.005

$0.010

$0.015

$0.020

$0.025

$0.030

$0.035

$0.040


$0.636* $0.636*

$0.000

$0.100

$0.200

$0.300

$0.400

$0.500

$0.600

$0.700


$0.222*

$0.000

$0.050

$0.100

$0.150

$0.200

$0.250


$0.065 $0.065

$0.015*

$0.000

$0.010

$0.020

$0.030

$0.040

$0.050

$0.060

$0.070


1. Completed transactions only*Denotes metric is derived from four transaction results or less2. Nickel Development metrics are based on Sirius Resources‘s purchase of 30% of Nova & Lundin Mining’s purchase of Eagle Mine.

N/a N/a N/a

N/a N/a N/a

N/a N/a N/a

N/a N/a N/a

Resource Reserve


IRON OREThermometer


-37%-23%

-69%

-93%-79%

-85%

-65%-46% -53%

-18%

-33%

-13%

-49%

-28%

-83%-73%

-100%

-80%

-60%

-40%

-20%

0%

20%

40%

60%

80%

Pric

e Pe

rfor

man

ceIron Ore Stocks Relative Performance




6%17%

-60%

-13%

31%

-20%

17%

30%

-13%

18%

0% 5%

-23%

-3%

-36%

0%

-100%

-80%

-60%

-40%

-20%

0%

20%

40%

60%

80%

Pric

e Pe

rfor

man

ce

-6%

16%

-60%

-33%

-56%

-43%

-13% -13%

-46%

4%

-41%-24% -23%

-5%

-63%

-33%

-100%

-80%

-60%

-40%

-20%

0%

20%

40%

60%

80%

Pric

e Pe

rfor

man

ce



EV / Resource (A$/dmt Fe)

EV / Reserve (A$/dmt Fe)

1. FMG’s metrics are significantly higher than those of its ‘peer’ group and have therefore been excluded from the calculation of the ‘Average A$/dmt’ metric in each category.2. FMG’s metrics are based on its Solomon and Chichester Hubs only and excludes development properties. 3. Crusader’s Iron Ore metrics are derived from its Posse Iron Ore Project. 4. BC Iron’s metrics are based on Buckland and Nullagine (75%) only, Iron Valley has been excluded. 5. Mount Gibson’s metrics have been excluded from the calculation of the ‘Average A$/dmt’ metric.

$1.7

5

$1.3

2

$0.4

4

$0.2

0

$0.1

1

$0.0

6

$0.0

5

$0.0

3

$0.0

3

$0.0

2

-$0.

07

-$0.

09

-$2.50

-$2.00

-$1.50

-$1.00

-$0.50

$0.00

$0.50

$1.00

$1.50

$2.00

$2.50

FMG

Amex

Crus

ader

Atla

s

Cozir

on

Taw

ana

Iron

Road

Sund

ance

Flin

ders

Gind

albi

e

Cent

auru

s

Gran

ge

BC Ir

on

Mt G

ibso

n


January Average $0.18/t

February Average $0.10/t

$4.8

3

-$2.

56

$1.0

5

$0.3

1

$0.1

4

$0.1

3

$0.1

1

-$0.

18

-$0.

22

-$3.00

-$2.00

-$1.00

$0.00

$1.00

$2.00

$3.00

FMG

Atla

s

Sund

ance

Iron

Road

Gind

albi

e

Cent

auru

s

BC Ir

on

Gran

ge

Mt G

ibso

nFebruary Reserve Metric

January Average $0.20/t

February Average $0.19/t

-$35

.83

$10.

71


0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

10.0%

FMG

Mt G

ibso

n

BC Ir

on

Sund

ance

Atla

s

Gran

ge% Change Decrease

% Change Increase



0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

18.0%

20.0%

Atla

s

FMG

BC Ir

on

Sund

ance

Crus

ader

Mt G

ibso

n

Taw

ana

Gind

albi

e

Cent

auru

s

Gran

ge

Flin

ders

Cozir

on

Amex

Iron

Road

% Change Decrease

% Change Increase



Iron Ore Sector Liquidity / Shorts

Iron Ore Sector Liquidity

Iron Ore Sector Short Positions




Iron Ore Transaction Metrics - Resource and Reserve Multiples

Development (US$/dmt Fe)

Care & Maintenance (US$/dmt Fe)

Exploration (US$/dmt Fe)

Operation (US$/dmt Fe)

$0.50$0.47*

$0.32*

$0.00

$0.10

$0.20

$0.30

$0.40

$0.50

$0.60


$7.41

$3.00*

$17.35*

$0.00

$2.00

$4.00

$6.00

$8.00

$10.00

$12.00

$14.00

$16.00

$18.00

$20.00


$8.37

$6.37*

$28.95

$24.00*

$0.00

$5.00

$10.00

$15.00

$20.00

$25.00

$30.00

$35.00


$0.00

$0.10

$0.20

$0.30

$0.40

$0.50

$0.60

$0.70

$0.80

$0.90

$1.00



No transactions recorded

N/a N/a N/a N/a

Resource Reserve

N/a

N/a


Market Analysis

Price Performance

• 1, 3 and 12 month share price performance in percentage terms is illustrated for each sector along with relevant commodity price and index performance for comparison purposes


• Market-based valuation metrics (or ‘peer’ metrics) are calculated based upon:• end-of-month market capitalisation (MC) data;• most recent balance date net debt (cash) figures to determine enterprise

value (EV); and• most recent published Mineral Resources or Ore Reserves (where appropriate)

Liquidity

• Liquidity is calculated as the number of shares traded in the month as a percentage of total shares on issue. Liquidity bar charts illustrate the change in liquidity from the previous to the current month

• Companies are presented in order with the most liquid company in the current month on the LHS of the bar chart

Short Positions

• ‘Short’ data is sourced from the ASIC published short position data• Short Positions are calculated as the number of shares traded and reported as a

‘short sale’ in the month, as a percentage of total shares on issue. Short Position bar charts illustrate the change in Short Positions from the previous to the current month

• Companies are presented in order with the most ‘shorted’ company in the current month on the LHS of the bar chart

Transaction Metrics

• Transaction Metrics relate to completed asset (or project) transactions. Corporate-level transactions (such as ‘change of control’ transactions), as well as Options and JV/Farm-In style transactions do not form part of this analysis

• Announced transactions still in progress and yet to complete do not form part of this analysis

Information presented in this pack references data to 29 February 2016.The following notes may be of assistance when interpreting information contained throughout this pack.

Explanatory Notes

PCF notes that reference to metal equivalents (AuEq, CuEq, NiEq) does not comply with JORC (2012) Guidelines. Metal equivalents are used throughout this pack to provide a level of comparative analysis between companies with assets of varying commodity types.


Company List

Gold Producers

• Alacer Gold Corp• Alkane Resources Ltd• Aurelia Metals Ltd• Austral Gold Ltd• Beadell Resources Ltd• Doray Minerals Ltd• Evolution Mining Ltd• Kingsgate Consolidated Ltd• Medusa Mining Ltd• Metals X Ltd²• Millenium Minerals Ltd• Newcrest Mining Ltd• Northern Star Resources Ltd

• OceanaGold Corp• PanTerra Gold Ltd• Perseus Mining Ltd• Ramelius Resources Ltd• Red 5 Ltd• Regis Resources Ltd• Resolute Mining Ltd• Saracen Mineral Holdings Ltd• Silver Lake Resources Ltd• St Barbara Ltd• Teranga Gold Corp• Troy Resources Ltd

Gold Explorers/Developers

• ABM Resources NL• Anova Metals Ltd• Azumah Resources Ltd• Blackham Resources Ltd• Chalice Gold Mines Ltd• Crusader Resources Ltd2

• Dacian Gold Ltd

• Excelsior Gold Ltd• Focus Minerals Ltd• Gold Road Resources Ltd• Gryphon Minerals Ltd• Havilah Resources Ltd• Tanami Gold NL• West African Resources Ltd

Copper

• Aeris Resources Ltd (previously Straits Resources Ltd)

• Altona Mining Ltd• Avanco Resources Ltd• Azure Minerals Ltd• Hillgrove Resources Ltd• Hot Chili Ltd• Intrepid Mines NL • KGL Resources Ltd• Oz Minerals Ltd

• Regal Resources Ltd• Rex Minerals Ltd • Sandfire Resources NL• Stavely Minerals Ltd• Syndicated Metals Ltd• Talisman Mining Ltd• Thundelarra Ltd• Tiger Resources Ltd• Venturex Resources Ltd

Nickel

• Cassini Resources Ltd• Duketon Mining Ltd• Highlands Pacific Ltd• Independence Group NL• Mincor Resources NL

• Panoramic Resources Ltd• Poseidon Nickel Ltd• Rox Resources Ltd• Segue Resources Ltd• Western Areas Ltd

Iron Ore

• Amex Resources Ltd• Atlas Iron Ltd• BC Iron Ltd• Centaurus Metals Ltd• Coziron Resources Ltd• Crusader Resources Ltd• Flinders Mines Ltd• Fortescue Metals Group Ltd

• Gindalbie Metals Ltd• Grange Resources Ltd• Iron Road Ltd• Mt Gibson Iron Ltd• Sundance Resources Ltd• Tawana Resources NL

Explanatory Notes

1. Abbreviated company names have been used throughout this presentation in the interest of visual reference.

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This publication has been prepared by PCF Capital Group Pty Ltd (“PCF“). The publication has been prepared solely for the internal use of PCF clients and may not be relied upon for any other purpose. It cannot be reproduced, copied or provided to a third party without the prior written consent of PCF.

To whom this information is provided

This publication is only made available to persons who are wholesale clients within the meaning of section 761G of the Corporations Act 2001. This publication is supplied on the condition that it is not passed on to any person who is a retail client within the meaning of section 761G of the Corporations Act 2001.

No warranties made as to content

The information contained in this presentation is provided for information purposes only. Accordingly, it is provided on the basis of no liability whatsoever to PCF, or the directors, officers and employees of PCF who will not be responsible for any damages arising from any use made of the information herein. While all care has been taken in its preparation, this information has not been independently audited and PCF, or the directors, officers and employees of PCF make no representation and give no warranty or undertaking, express or implied, nor assume any responsibility for the authenticity, origin, validity, accuracy or completeness, or for any errors or omissions contained in the information. The assumptions that were made in its preparation were based on publicly available information which has not been verified by PCF, or formally audited.

Copyright

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