Weekly Informer · 2014. 12. 18. · Aurora Oil and Gas AUT$3.85 FY’12 Financials Buy Jon Bishop...

Weekly Informer Wednesday 13th March 2013

Research Analysts

Resources

Greg Chessell Andrew Clayton Jon Bishop Michael Skinner Kristan Harvey (Assoc. Analyst)[email protected] [email protected] [email protected] [email protected] [email protected]: +61 8 9488 1409 Ph: +61 8 9488 1427 Ph: +61 8 9488 1481 Ph: +61 8 9488 1431 Ph: +61 8 9488 1463

Industrials

Gavin Allen Richard Hamersley +61 8 9488 1413 +61 8 9488 1414 [email protected] [email protected]

AUSTRALIAN EQUITIES RESEARCH

In this edition

Code Price Rec. Event Analyst Page

Best Buys March 2013 n/a n/a n/a Various 2Rottnest Wrap2013 n/a n/a n/a Various 6

Resources Aurora Oil and Gas AUT $3.85 Buy FY’12 Financials Jon Bishop 28OM Holdings OMH $0.325 Buy Full Year Result Greg Chessell 31Papillon Resources PIR $1.32 Buy Company Update Andrew Clayton 34Sirius Resources SIR $4.50 Spec. Buy More Bollinger Results Greg Chessell 37Sirius Resources SIR $4.06 Hold Bollinger Update Greg Chessell 39

Industrials Brierty BYL $0.45 Buy Contract Win Gavin Allen 41Finbar Group FRI $1.35 Buy 1H 2013 Results Gavin Allen 44iiNet Ltd IIN $4.85 Buy Company Update Gavin Allen 47

In every edition

Weekly Share Price Performance of Companies covered 50Weekly Price and Liquidity Charts of Companies covered 51Commodity Price Charts 52 The Weekly Informer is Euroz Securities’ weekly research clearing document. It includes research notes on stocks within the coverage universe published during the preceding week. The Weekly Informer is published mid-week.

All information and advice is confidential and for the private information of the person to whom it is provided and is provided without any responsibility or liability on any account whatsoever on the part of Euroz Securities Limited or any member or employee thereof. Refer to full disclaimer at the end of this document.

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Euroz Securities declares that it has acted as underwriter to and/or arranged an equity issue in and/or provided corporate advice to Aurora Oil and Gas Ltd, Cooper Energy Ltd and Cedar Woods Properties Ltd during the last year. Euroz Securities has received a fee for these services.

Jon Bishop declares that he has a beneficial interest in Aurora Oil and Gas Ltd.

Analyst: VariousDate: 01 March 2013

Euroz Securities Best Buys note highlights the best trading ideas as foreseen by the research analysts from our coverage universe at the beginning of each month.

Best Buys recognises the catalysts and fundamental value that are expected to drive outperformance in the SHORT TERM.

The following points for each selected stock in the Best Buys portfolio highlight the key drivers. These points are meant to be read in conjunction with the already published full research notes on these companies. These full research notes are available on request or from the Research section of our website.

Our Best Buys for March 2013 are:

• AquariusPlatinum• PapillonResources• AuroraOilandGas• CooperEnergy• CedarWoodsProperties• FinbarGroup

Aquarius Platinum (AQP $0.86) Buy Analyst: Greg Chessell

• Wearebullishaboutthe longtermoutlookforPtpricesforthefundamentalreasons of constrained supply (90% of mine supply is from southern Africa, largely owned by 6 companies) and its usage in clean air technology is increasingly legislated globally. The European downturn has affected the market balance in recent years, however supply side is now responding appropriately.

• AtKroondaltheinvestmentin,andimplementationofthenewgroundsupportmethod, and change to owner mining has been completed successfully. The March Q should reflect a full period of these changes leading to yet another improvement in production. AQP notes these changes have resulted in a more productive and motivated workforce, with fewer Section 54 stoppages and reduced industrial action. This is impressive in the environment of industrial unrest at nearby mines, related to the violence at Lonmin in Sep’12 and Anglo’s threatened closures.

• AQPhasflaggedthatitshouldnowgeneratecashattheminelevelgiventhattheinvestmentatKroondalislargelycomplete

• The Booysendal acquisition (US$133m) is awaiting DMR approval by lateApril’13. Booysendal hosts 31moz PGM and lies down-dip of the Everest mine and infrastructure. It seems improbable that the deal will gain approval, thereby AQP will be relieved of this obligation. Nevertheless it remains a small chance of financing risk in the meantime. The strategy of the acquisition remains sound, however the price is clearly not appropriate in the current environment.

• TheMimosa indigenisation deal agreedwith ZimbabweGov’t is better thanexpected and is now in the documentation stage. Aquarius and Impala (50/50 JV in Mimosa) will sell a 51% stake in Mimosa to indigenous Zimbabweanentities for $550m. In effect AQP/Impala will retain 90% of the dividend flow from the divested 51% of Mimosa until ~$50mpa of annual interest and $550m of principal is repaid.

• AQPremainsleveragedtoanupswinginPGMmetalpricesfromthenearcyclelows presently. Long term supply is severely underinvested in our view.

Price Target $1.52/sh

Best Buys March 2013


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Papillon Resources (PIR $1.275) Buy Analyst: Andrew Clayton

• Fekola is an exceptional discovery with a resource of 4.2moz @ 2.4 g/t Aucontained within a single open pit to a depth of ~ 350m including some 3.5moz in the M&I category.

• Resource is likely to support a ~250-300koz pa operation @ US$600/oz for+10yrs. A PFS is on track to be completed in the 2nd Q CY’13

• A 100,000m extensional drill program has commenced targeting; down dipextensions of the high grade shoot (57m @ 10.7 g/t Au, 94m @ 4.6 g/t Au and 86m @ 6.2 g/t Au ), along strike extensions and five other targets on the lease area.

• Fekolahasboththeproductionsizeandcoststructurethatisappealingtobothinvestors and/or corporate. If the high grade shoot extends at depth a target of +5moz resource is realistic.

• Valuationis$2.16/shanditisthestandoutgoldexplorer/developer.


Aurora Oil & Gas Ltd (AUT $3.85) Buy Analyst: Jon Bishiop

• Thismonth,AUTwillprovideguidanceontheCY’13developmentprogrammeand the Company’s outlook for production and earnings for the year.

• Guidance was delayed to this month to capture the recent acquisition ofadditional Eagle Ford acres around AUT’s existing Sugarkane Field assets.

• Weassessthedealtobeveryaccretive–weanticipateaA$0.15/shincreasetoour underlying A$5.21/sh valuation.

• AUT will also provide detailed summaries from the 40and 60acre pilotprogramme as well as details on the current Pearsall Shale and Austin Chalk pilot studies as part of this month’s market briefing..

• WebelievethattighterspacinghasalreadybeenassumedbytheOperatorandthis has been evidenced by the Independent Reserves Engineer attributing some reserves to 40-acre spacing in the latest report (importantly anticipating no degradation to early well life productivity).

• FollowingAUT’sFY’12US$167mEBITDA(aheadofourUS$165mforecast),wesee+US$350mEBITDAforCY’13withnetafterroyaltyproductionsettodoublefrom2.94mmbboe in 2012 and given current Louisiana Light Sweet price received currently of circa +US$105/bbl.

• We forecastAUT tobecomeoperatingcashflowpositive from late2013andEBITDAgrowthQ-on-Qwillincreasinglypointtothisoverthecourseoftheyear.


Cooper Energy Ltd (COE $0.54) Buy Analyst: Michael Skinner

COE is extremely well funded underpinned by a cash and investment position of $78m, and no debt. This funding capability coupled with increasing high margin oil production underpins material near-term activity -

• Otwaybasinappraisaltargetingconventionaloil,duallyevaluatingthemulti-Tcfunconventional prospectivity of the Casterton Formation.

• Atleast1wellinTunisia(HammametWest-March)targetingagross2Cresourceof 111mmbbls.

• Possible farm-out of the Nabeul Permit (COE 85%) underpinned by newlyacquired3Dseismic.


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Cedar Woods Properties Ltd (CWP $5.25) Buy Analyst: Gavin Allen

• CWPhasre-iteratedguidancelookingfor2013NPATof$35m.

• Twonewprojectscontributein2014inadditiontoexisting2013projects.

• Thelandbanksupportsapprox.5yearsofearningsinmature(zonedandunderconstruction) product

• CWPhasflownundertheinvestmentradarsomewhat,howeverisbeginningtoreceive the attention it deserves and a number of presentation opportunities in March should see this increase further.

• Inthemeantimeityields5%fullyfranked,issupportedby$5.30ofNTAandachange in sentiment towards property should see it begin to trade on earnings rather than NTA.

• Thesectorhashistoricallytradebetween10and12xforwardearningsandthisdrives value in the range of $5.70 to $6.84. a realistic 6 to 12 month aim.

Price target $5.70/sh

Finbar Group Ltd (FRI $1.45) Buy Analyst: Gavin Allen

• FRIhasre-iteratedguidancelookingforatleast$28min2013(versusourforecastof $32m)

• Thisisimportantasinmanyways2014presentsmoreearningscertainty,withvirtually all major projects that will contribute to 2014 primarily presold.

• FRI has, like CWP, flown under the investment radar somewhat, however isbeginning to receive the attention it deserves and presentation opportunities in March should see this increase further.

• Thestockyields6.4%fullyfranked.

• Thesectorhashistoricallytradedbetween10and12xforwardearningsandthisdrives value in the range of $1.70 and $2.04, should our 2014 forecasts prove correct.

Price target $1.70/sh

Best Buys Historical Performance

The historical performance of our Best Buys selection for previous months is shown in the charts below:

Source: IRESS


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Euroz Best Buys – February 2013

The average performance of the Euroz Best Buys portfolio in January was 1% compared to the ASX Small Ordinaries 2.2%.

Source: IRESS


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Analyst: Various Date: 13 March 2013

Resources Companies

Aquarius Platinum Ltd (AQP $0.80) Buy Analyst: Greg Chessell

Presenter: Jean Nel, CEO

• A supply deficit is looming in Platinum. The PGM market has largely been in oversupply due to European auto sales decline for the last 5 years. However supply-side adjustments (deferred capex, mine closure and production disruption) have turned primary market balance into deficit in 2012. Inventory (with auto manufacturers and ETF) is presently keeping the market supplied, temporarily. Further supply-side cuts and/or recovery of European diesel auto demand could see Pt price rise.

• SupplyissourcedfromonlySthAfrica(70%),Zimbabweandscrapmarket.Costescalation at above CPI rates in Sth Africa has squeezed margins for all Pt miners. Some 30%-40% of the cost curve is loss making at current prices.

• AngloPlat has committed to a 400kozpa production cut from its Rustenberg ops, including the loss of 14,000 jobs. In consultation with Gov’t it has deferred implementation by 90 days. The plan will become effective in May. Impala and Lonmin are also guiding lower on the production outlook. Primary supply deficit is likely to continue.

• Aquarius’ Kroondalmine lies in the lowerhalf of the cost curve, andMimosawithin the lower quartile of the cost curve.

• Production at Kroondal has improved markedly over the Dec H’12. AQP’sattributableprod’nfromKroondalshouldbe~200kozpahereon.Kroondalisnotimmune from the theme of cost inflation, expect ~10% pa.

• Mimosa production has been consistent, attributable to AQP at 105koz pa. Cost inflation is slightly less of an issue, partly due to one-off nature of some items in DecH’12.

• Aquarius has three key risks over the medium term.

• The Booysendal acquisition, the most significant, is hoped not to receive permitting for the transaction by the drop dead date end April’13 (US$130m payable for 31moz deposit, adjacent to its Everest mine).

• Wage negotiations are due for Pt industry-wide bi-annual negotiation in mid’13. Risk of protracted negotiations. While the business has less capacity to absorb high wage demands, “noisy” labour negotiations are not unusual in Sth Africa, and an acceptable settlement should eventually occur. AQP should be in a better position than its peers because as its workforce is exclusively NUM union membership, in contrast to competitors with a combination of the conflicting NUM & AMCU workforce.

• AQP-Impala agreed a termsheet for Indiginisation of its Mimosa mine in ZimbabweinDec’12,andisnowindocumentation.AngloPlatsandZimplatshavealso agreed terms for their mines. The looming referendum (March) and general election (mid’13) could see Indiginisation used as a political “football”. Recent commentsbyMugabeagainstZimplatshascausedconcern.WethinkZimplatsis a specific target because of its vast holding of prospective ground. We think this scene will continue to be “noisy” but ultimately the Indiginisation deal will occur. We note that Mimosa ownership, and operations, have continued largely uninterrupted over the last 5 years while the Indiginisation “noise” has emerged. PoliticalissuesasidePtmininginZimbabweisstructurallymoreattractive.

• Our valuation is $1.52/sh.

Rottnest WrapEuroz 2013 Institutional ConferenceRottnest Island

Euroz Securities declares that it has acted as underwriter to and/or arranged an equity issue in and/or provided corporate advice to Aurora Oil & Gas Ltd, Base Resources Ltd, Cedar Woods Properties Ltd, Cooper Energy Ltd, Gryphon Minerals Ltd, New Standard Energy Ltd and Red Fork Energy Ltd during the last year. Euroz Securities has received a fee for these services.

These analysts also declares that he has a beneficial interest in Aurora Oil & Gas Ltd, Clough Ltd, Empired Ltd, Gryphon Minerals Ltd, MACA Ltd, RCR Tomlinson Ltd and Teranga Gold Corporation Ltd.

From time to time Euroz may act as the buy-back broker with respect to an on-market buy-back that is being conducted by the company iiNet Ltd that is one of the subjectofthisresearchreport. Duringtheperiodwhensuch a buy-back is being conducted, if you wish to sell into the buy-back and speak to your Euroz adviser about this issue, you will be informed that that Euroz is acting for the company that is undertaking the buy-back and that your adviser is therefore unable to give you advice in respect of the proposed sale.


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Rottnest WrapEuroz 2013 Institutional ConferenceRottnest IslandAquila Resources Ltd (AQA $2.47) Buy Analyst: Greg Chessell

Presenter: Martin Alciaturi, General Manager, Finance and Corporate

• ConstructionoftheEagleDowns(AQA50%)cokingcoalmineisunderwaywithlongwallproductionduetocommenceinDecH’16.Expecttoawardthecontractfor the boxcut in April-May’13. The subdued construction market should allow improvement on the previously estimated $1.7b investment.

• AquilaispossiblylookingtodivestaportionofitsstakeinEagleDownstoanend-user as a means of funding its remaining equity contributions. This decision is dependent on the future of its WPIOP. Relationship with JV partner Vale is improving.

• The WPIOP (AQA 50%) is stalled since both parties have not been able to agree on FY’13 budget. The arbitration process has been abandoned. We suspect some form of ownership change is necessary for this project to move forward.

• Aquila’s strategy remains to dispose of its other non-core assets: coal in Qld and manganese and iron ore in Sth Africa.

• Aquila has ~$610m in cash, say $550m net of tax payable. The EV on its remaining assets is $500m. It is possible that transactions on any of them could occur in the medium term, including disposal by AQA, which would suggest a greater valuation than implied by the market. We note that AQA sold its 50% of Isaac Plains coal mine in Qld 12 months ago for $430m, well ahead of market expectation. Meanwhile AQA offers low risk exposure to Iron Ore and Coking Coal.

• Management owns 40% of Aquila and is motivated to enhance value while mitigating risks.

• Our valuation remains $3.96/sh.


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Aurora Oil and Gas Ltd (AUT $3.66) Buy Analyst: Jon Bishop

Presenter: Jonathan Stewart, Executive Chairman

• Productiontodouble in2013drivingdoublingofEBITDAXpostacquisitiontocirca $390m (96% liquids) from 35-40 net wells (this number of wells is likely to inc) this CY.

• EbITDAX/boeof$43/boeandoperatingnetbackof$47/boein2012.

• Unequivocally will be down spacing and developing on multiple horizon - Reserve engineers recognise that down spacing has no negative impact on initial recovery/rates of production therefore with fast of capital recovery, this has huge impact to early cash flow and long term field recovery factors.

• Demonstrationofoperatingcapabilitywithrecentacquisitionexpandavenuesto grow the business - Maintain ambition to grow via acquisition (op or non-op) within and around core asset area .

• 2013 key targets:

- becomeop.cashflowpositiveasofDecQ;

- longerlaterals;

- paddevelopmentloweringcapex;

- steep ramp in production at exit of 2013 as the development spacing is implemented into the dev programme and AUT starts developing the recentacquisition;

- Pearsall and Austin Chalk pilot studies.

• No infrastructure bottlenecks currently and new pipeline infrastructure underway to alleviate NGL localised oversupply by yr end - this is already translating into an increase to NGL prices received.

Recent Acquisitions:

• Commence operations in the Sep Q using zipper fracks and longer laterals.

• Issue new bonds in March to replace bridge finance used for the deal - AUT will not issue equity to close this acquistion and AUT has sufficient liquidity (circa +$600m in cash, debt and op. cash flow) available to fund development.

• Beyond downspacing Axel tree is prospective for Austin chalk and Pearsall and Heard Ranch prospective for Pearsall thus significant upside to 1P reserves acquired of 7mmbboe and 14mmbboe 2P (we est. 20mmbboe 3P).

• Price target - $6.00/sh.


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Base Resources Ltd (BSE $0.41) Buy Analyst: Andrew Clayton

Presenter : TimCarstens,MD

• Kwale development is progressing well. Have committed the total $298m incapitalanddrawndownthe2ndtrancheofdebt–nowtotal~US$125m.

• The IntegratedManagement team is working well but sees two risk areas –shiploaderandthecompletionoftheDamtocatchthewinterrains.

• Shiploader now working directly with the Sth African construction group and theDamisbehindscheduleasithastobedesignedfora1in1000yrfloodevent.Aim for closure by end of April to catch the winter rains but if delayed then could translate into project delays.

• Have a target commission date of 24th of August with first shipment scheduled for the week of the 7-14th of Nov.

• Ilmenite and Rutile production should ramp up reasonably quickly, ie a few months whilst zircon production should get to 20kt reasonably quickly then take a yr to get to 30kt.

• KwaleremainsaveryrobustprojectwithverymuchfrontendedCF.BSEestimatea US$350m surplus after 5 yrs.

• Safetyrecordhasbeenimpressive–1,500peopleofsiteand2.8mhrsworkedwith1LTI.Strongengagementwithlocalcommunitywhichispayingbenefits–ie all food sourced locally,

• Offtakenegotiationscontinue–rutileallcontracted,ilmenitehasseenapickupin level of enquiry fromChinese. Zircon have contracted 50%may sell somemore prior to commissioning.

• ElectionshavegonereasonablysmoothlybutsomerisksifKenyattaiselectedas he has also been charged by the ICC for crimes against humanity. The ICC trial has been postponed.

• The 35% local equity participation issues appears to have been resolved with the AttorneyGeneral’sletterthatthisdoesn’tapplytoKwale.Thebacklashagainstthe Mines Minister who proposed this equity participation has been strong and they understand he has been marginalized.

• PT $0.70/sh.


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Cooper Energy Ltd (COE $0.54) Buy Analyst: Michael Skinner

Presenter:DavidMaxwell,MD

• COEisextremelywellfundedunderpinnedbyacashandinvestmentpositionof$78m, and no debt.

• COEhas recentlystrengthenedtheboardwithadditionofChairmanMrJohnConde, a previous director of BHP Billiton Ltd.

• Production averaging 1,160boepd in the H is primed to increase above1,800boepd within the coming two Q’s (a 40+% H on H increase).

Corporate Strategy

• COE’s forward strategywill largely focus on the EastAustraliandomestic gasexploration and development, primarily in the basins of the Cooper, Otway, Gibbsland and Surat.

• Afocuswillbeonnear-termcommercialisationopportunitiesandcosteffectiveexploration.

• FacilitatingthisconcentriccorporatestrategymonetisationofbothTunisianandIndonesian assets is anticipated over the coming 18mnth period.

Near-term Catalysts

• The Otway Basin (Sawpit) well (currently drilling) targeting conventional oilwhilst dually evaluating the multi-Tcf unconventional prospectivity of the Casterton Formation. Risked assessment of the Otway Basin in-place potential is 18-45Tcf. The well encountered little hydrocarbon presence in the conventional target, and is now drilling ahead for unconventional data acquisition.

• Atleast1wellinTunisia(HammametWest-March)targetingagross2Cresourceof 111mmbbls. COE is free-carried at 30% interest.

• Possiblefarm-outoftheNabeulPermitTunisia(COE85%)underpinnedbynewlyacquired3Dseismic.

• Price Target $0.80/sh.


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Gryphon Minerals Ltd (GRY $0.35) Buy Analyst: Andrew Clayton

Presenter: SteveZaninovich,ChiefOperationsOfficer

• RecentsaleofPIRinteresthasseencashbalanceincreaseto~$75m.

• RanthroughBFSnumbersandthetimetabletoproductionwiththetargetoffirst gold by Q4 CY’14 and his plans for development and the team to take it through to production.

• Comfortable with capex and opex numbers. Lycopodium, GRY’s projectengineers have just built the Bissa project in Burkina. This has successfully ramped up to nameplate capacity.

• Banfora has been designed so it can be easily expanded to 4mtpa via anadditional ball mill and CIL expansion.

• OncomparativemeasuresisverycheaponEV/rscof$13/ozvssectoraverageof$119/oz.

• Willlooktospend$10moninfilldrillingaroundNogbele,SamavogoandStingerwith the aim of defining additional reserves.

• Permitting process only takes six months and targeting Q3. Its strong cashposition will allow early construction works and purchase of long lead items.

• Heap leach studies underway and results expected Q2. Initial results wereexcellent–90%recoveriesafter45days.

• Formalfinancingprocesstocommenceshortlywithexpectationofselectingasyndicate by Q2. Expect project could support a minimum of 50/50 debt: equity.

• PT$1.10/sh.


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Independence Group Ltd (IGO $4.20) Buy Analyst: Jon Bishop

Presenter:AndrewEddowes,BusinessDevelopmentManager

Tropicana

• $170m strategic debt facility to facilitate funding flexibility around Tropicana, specifically around enhancement studies (pipeline gas; inc through put;underground/open cut optimisation) - Anglo clearly see capacity to increase the scale of the Tropicana development.

• The footprint and redundant capacity evident from the site visit strongly supports this assertion.

• Tropicana targeting dry circuit commissioning from July (Anglo maintain public guidanceofDecQ);90%projectcapexcommitted.

• Tropicana will dwarf current base metal operating cash flows - roughly 66% of projected Group $200m cash flows once in production i.e CY’14.

• Havana Deeps optimisation study due for completion in Dec H to Inc. totalopen pit component (provide a proxy mineable inventory) and extend early 470-500kozpa profile; we anticipate res’v to Inc. to circa 6moz (vs. 3.9 mozcurrently).

• ExtensionofcurrentpitshellsevidentateachofHavanaDeeps,TropicanaandBoston Shaker - 15-20m widths carrying +5g/t.

• Significant regional exploration anomaly and preliminary drilling results warranting follow-up.

• Total project expenditure this yr of $13m on brown fields exploration and $7m on regional exploration.

Long

• Long ore now dominantly from Moran and McLeay and drilling continuing to demonstrate extension with good grade.

Teutonic Bore

• Bentley already getting 30% overcall to reserve grade from mining and the asset is operating cashflow positive and costs are continuing to fall - IGO are clearly very good operators.

• Bentley south south - diamond drilling commencing this month. Air core drilling showing strong correlation with geochem and geochem signatures of Bentley and Jaguar.



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Indophil Resources NL (IRN $0.37) Speculative Buy Analyst: Andrew Clayton

Presenter: RichardLaufmann,ManagingDirectorandChiefExecutiveOfficer

• A fascinating presentation with the key message that IRN can’t wait for the Glencore/Xstrata merger to go through and engage with Glencore directly. IRN has been very frustrated with Xstrata’s lack of progress on many issues esp engagement with both the local and national govt.

• Glencore will not stand still and look to add value as it either sells its interest, buysIRNstakeorreducesinterestinproject–eitherwayIRNseebigupsidefromcurrent prices.

• Glencore 78% has operated the Pasar smelter in the Philippines since 1999 and understand the nuances of working there and it currently sources no local ore.

• IRN has already been in discussion with Glencore regarding Tampakan and have been very encouraged with initial discussions.

• In thePhilippines theOpenpitban isnot regardedasan issue– justpolitics,however, from a market view it has been very damaging. IRN are very encouraged withthegovtengagingonthedirectivetotheDENRtoissuetheECC.Thelocalelections due in May may see national govt action (legal?) against the local incumbents.

• IRN has built some powerful in country alliances with the Alson Group, Cy family viaBDOUnibank,SanMiguelandPhilexMining.30%ofIRNisownedbythesegroups.

• Tampakan is one of the 10 largest Cu projects in the world but the only one not ownedbyamajor.ThebenefitstothePhilippinesissignificant–extra1%ofGDPemployment of 10,000 people in construction, 2000 in production etc.

• PT $0.50/sh.


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Metals X (MLX $0.17) Buy Analyst: Andrew Clayton

Presenter: PeterCook,ManagingDirector

• After significant capital investment Renison is in the best shape since MLX took control of this asset 10 yrs ago and is generating positive CF. Excellent leverage to tin price generates EBITDA of$52m @ A$20,000/t increasing to $112m atA$30,000/t–currenttinprice~$24,000/t.Replacementvaluewouldbe+$300mand very few listed exposures to tin.

• MLX has the largest and highest grade tin deposits in Australia. Renison was the first mechanized mine in Australia and as Peter said ‘ old mines don’t die, they just get deeper’.

• Recent exploration success around Area 4 and the Houn lodes plus the discovery of stratabound mineralization on the NE extension of the fault point to strong possibility of further reserve growth. Exploration target is to add 3.7m @ 1.6 % Sn (5yrs) this yr.

• RentailsisasolidgrowthoptionandcouldbefullybackedbyChinesepartner–potential to increase production to 12.5kt of Sn pa.

• Tin market looks positive driven by increased demand (tin soldering, electronics) and lack of supply with Indonesian artisanal supply depleted and hard rock mines scheduled to close in the next few yrs. ITRI forecast a tin price of US$40,000/t in CY’15.

• Wingellina has potential to add multiples to the current price. One of the largest undeveloped Ni projects in the world and one of the last 100% owned by a junior.Isupdatingfeasibility–dueNov’13andthenlooktostructuredealwithSamsung to free carry MLX 30% through to production.

• The Central Murchison Gold BFS was fair but unlikely to build a standalone mill when there are 6 plants in the region, 3 of them operating below capacity.

• Will look to put down an exploration decline at Rover 1 project and then drill from U/G with the target of delivering a positive BFS and then using this as a production decline. Numerous other targets to test, high grade Cu/Au deposits are the target.

• Lots of options with MLX. Has cash of $85m, no debt, generating solid free cash, $150m in tax losses, a globally significant nickel project and 6moz resource inventory.

• PT $0.27/sh.


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Mineral Deposits Ltd (MDL $3.85) Buy Analyst: Andrew Clayton

Presenter: Nic Limb, Executive Chairman

• Presentation was split 50/50 with focus on the highly strategic and complementary nature of its two assets.

• An overview of the feedstock sector demonstrates in the sulphate slag producers TiZirisakeyplayerandcustomersdowantsomediversificationawayfromtheRIO. It is the 4 largest feedstock producer.

• Tyssedal is only 1 of 5 facilities globally and benefits from very low power (3 c pr Kwhr)andexcellentlogistics–edgeoffjordandclosetocustomersetc.

• TyssedalgeneratedEBITDAofUS$110mlastyearbutpricesare~20-25%lowerthisyrimplyingEBITDAofUS$85m–similartoourforecastUS$82m.

• Feasibility is underway for a 2nd furnace to increase production to ~ 500kt of slag pa using the Chloride route and with Grand Cote ilmenite as the primary feedstock. Investment decision by mid 2014 with 2016 first production. Very early capex estimate of ~ $350m.

• Grand Cote construction is progressing well. It is a large scale project, simple orebody, +20yr mine life with excellent logistics.

• The scale is not to be underestimated with 8,000t of steel floating on pontoon etcbuthavebeenpleasedwiththeprogresstodate.Dredgeisallbutfinishedand ready to be commissioned.

• InfullproductionGCwillproduce85ktofZircon,575ktof ilmeniteandminorrutileandleucoxene.Zirconisapremiumproductwithverylowimpuritiesetc.

• At this stage commissioning is on track for Q4 CY’13 with ramp up to full production over the course of CY’14.

• Longer term vision is in 5 yrs time potential revenues of US$1bn (5x CY’12 rate) with slag accounting for 68%, zircon, 11% and Pig Iron 14%.

• PT $7.00/sh


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New Standard Energy Ltd (NSE $0.18) Speculative Buy Analyst: Michael Skinner

Presenter:SamWillis,ManagingDirector

• We remain fundamentally positive on NSE’s asset portfolio which represents very good value as the company trades at or below cash backing (19cps).

• Upside potential outweighs minor downside risk facilitated by the positive catalystsof;anewdrill rigcontract,possiblepermit farm-outs,andexecutionof 3 consecutive appraisal programs (Goldwyer, Merlinleigh and Laurel) over the coming 18mnth period.

• Current EV stands at a mere $2m.

Goldwyer Review

• NSE + JV partner COP have recently terminated the Goldwyer project rig contract with MB century due to safety concerns and reliability assurance.

• The decision will unfortunately delay the Goldwyer appraisal program, however does bring confidence that safety, cost and reliability will not be comprised by the JV.

• Once a suitable rig is secured and mobilised to site, it is expected that the Gibb Maitland #1 will be re-commenced. This will likely be sidetracked from 900m (avoiding current equipment down hole), a 30-45 day appraisal time is estimated.

• Completion of full data analysis from Phase 1 (inc the 2nd, and 3rd wells to be drilled) is now anticipated for CY’13 end at the very earliest.

• The entrance of PetroChina into the Goldwyer joint venture (purchasing 29% equity from JV partner ConocoPhilips as part of a larger commercial arrangement) largely validates and further endorses the potential, size and prospectively of the Goldwyer project.

• Phase 2 approval looks ever more likely with the presence of now two major farm-in partners.

Merlinleigh & Laurel Review

• 2DseismicacrosstheMerlinleighpermitmidCY’13.

• Seismic processing at Laurel mid CY’13.

• Appraisal of both the Merlinleigh & Laurel is anticipated for CY’14, possible farm-out of the permits may occur in the interim.



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Papillon Resources Ltd (PIR $1.33) Buy Analyst: Andrew Clayton

Presenter:MarkConnelly,ManagingDirector

• A high quality presentation which coincided with the release of further drill results showing the high grade Fekola mineralization extends at depth and a new IP anomaly, 1.5km to the south, looks particularly interesting.

• Mark explained his philosophy of operating in Africa is to outsource where possible ie contract mining and take control of the feasibility process - pay for the process plant IP but not for accommodation villages etc.

• Mali situation was discussed but the political situation has not affected drilling/PFS work.

• PFS is well underway and is slated for completion by April. Initial pit optimization show a +80% conversion of M&I resource conversion to reserves. Preliminary design of pit would be some 1.3km long, 265m deep and 450m wide with a strip of 2.1:1.

• Is targetingproductionof~300kozpa–maymean increasingplantcapacityto 4.3-4.4mtpa and operating costs of ~ US$600/oz with a capital cost of ~ US$300m.

• Oreishardandislookingatvariousmillconfigurations–3stagecrushingvs2stageandSAGetcwillneed25-30Mwofpowersoweighingupfueloptions–whethertogoHFOvsdiesel–HFOgreatercapexof1.5xdieselbutcheaperfuel.

• Currentlyhave5rigsonsite(2xDD,2xRCand1multipurpose)withtheaimof drilling 100,000m until July/August. Initial results confirm high grade shoot extends at depth with an intersection of 73m @ 3.11 g/t Au from 284m.

• In addition a re-interpretation of the geophysics has identified a large IP anomaly southofFekola.–thisiscurrentlybeingdrilled.

• There are 5 key target areas in the Fekola corridor which extends for ~ 12km – have only targeted 20%of thus far. Some shallowdrilling to the north hasprovided further encouragement.

• Whilst there is significant depth potential (Gounkoto 50km to the north has resource to 800m) the target is to focus on open pit mineable ounces.

• PIR has been beefing up mgt team capable of taking this project through to production. ItsMD inMali –GuydeGrandpre has 10 yrs experience inWestAfricaandmostrecentlywithKinross.

• Has sufficient cash of $15m to continue aggressive exploration and complete PFS study.


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Red Fork Energy Ltd (RFE $0.63) Buy Analyst: Jon Bishop

Presenter:DavidPrentice(MD),ChrisGiourard(COO)andKevinHumphrey(CFO)

• Since the start of the CY dev execution has picked up dramatically - 10-12 new wellswillbecompletedbyMar31(vs10completedtoDec31).Theopsteamisturning around on development plan.

• Production has inc from 300boepd this time last year to 1800 today pre-royalty from just the Mississippi and at 80% oil (location is the key).

• East of Nemaha Ridge is key address due to oil nature and recent ramp up in activityendorsesthisthesis(DevonandRangeasthekeyplayersvsChesapeakeand SandRidge to the west).

• RFEwillbeanon-opparticipantinaportionofDVN’s400Mississippihzntlwellprogramme this CY.

• Reserve growth will underpin RBL in the short-term to complement pace of development-termsheetsinfrom5banks;expectfacilityinplaceinthenextmonth($20minitiallyfrom10wellsatDec31growingtowards$50mbyJun30).

• Woodford Shale oil remains untapped potential.

• RFE’s results to date - 7 RFE wells rank in the top 25 30 day IP results east of the Nemaha Ridge.

• The majority of RFE’s inventory of producing wells are “cume-ing” more in the first 90 days than the type curve.

• Spud to spud times have more than halved since Unit rigs arrived - well capex is converging on $3m/well (vs $3.5m we assume in our model).

• Completion optimisation programme has commenced and seeing improved completion to sales cycle times - cashflows are being brought fwd.

• ExitratesguidedforendCY‘13of3400boepdpreroyalty;5500boepdend‘14;+8000boepd end 15.



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Regis Resources Ltd (RRL $4.50) Buy Analyst: Andrew Clayton

Presenter:MarkClark,ManagingDirector

• Moolart Well expect to add 2/3 yrs of additional life through drill out of the oxide resource (20-80m deep) to replace production and deliver a mine life of 6-7 yrs. Oxide ounces will be higher cost in the $700-750/oz range.

• Explained the poor Garden Well grade reconciliation issue. Original grade control pattern was 20m x 5m but now reduced this to 10m x 5m and if overlain on the 20m x 5m shows internal dilution of 25%. Still early days and yet to say this is the definitive answer but early signs are encouraging.

• Issue is had already mined 700kt for the commissioning of GW.

• Plant operating well at 5mtpa and 2nd H guidance assume t’put of 5mpta at a gradeof1.6g/tAu–thiscomparestoorereservegradesome10-15%higher.

• UpdatedGWresource/reservebytheendofMarch– incorporatingadditional600m of strike. Still open at depth and along strike. Will make any adjustments required with current poor reconciliation but did stress the remaining oxide is ~9% of current reserves.

• Don’texpecttohavethisissueintheprimaryorebuthaveyettogradecontrolany primary ore.

• Rosemontdevelopmentunderway–commissioninginSeptandhavealreadyspent $5-10m.

• Regional exploration will hit hard for 18 months and if no significant discoveries will focus back on drilling out the know satellite deposits.

• McPhillamys drilling underway with aim of infill current 100m x 100m spaced resource to 50m x 50m. Target updated resource and maiden reserve in Sept’Q. Geology similar to Mt Rawdon.

• Investigatingmetallurgicaloptions–finergrindetc.Gridpowercostsverylowat<10cpKwhrvs25cdieselgeneratedpower.

• Have acquired some farms around the deposit and have engaged govt/local council as permitting will be a key issue.

• McPhillamys has potential to be a 4mtpa operation producing 140-160koz pa for 10yrs with a capital cost of ~ $150-170m and operating costs of $$700-750/oz.

• Growth profile remains intact - ~ 300koz in FY’13 increasing to ~ 400koz in FY’14 and then +500koz in FY’17 as McPhillamys comes on. Target is a 20cps dividend in Sept and then 60% payout ratio.

• Target Price is $5.10/sh.


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Resolute Mining Ltd (RSG $1.39) Buy Analyst: Jon Bishop

Presenter: Peter Sullivan, Chief Executive Officer

• Generating strong cashflows and cash build.

• Keyprojects-NyakafurustudytoreplaceGoldenPrideandNMGaspotentialtofill production profile to sustain +400kozpa from FY’15.

Syama

• Has and continues to be unaffected by the Islamic insurgent activity to the north.

• Furthermore it appears that the allied forces have the issue contained.

• Expansion remains on time -

- Syama oxide circuit to process +500moz oxide reserve from dec H ‘14

- oxide strike extension largely untested

- Grid power to lower cash costs from mid CY14 by $50/oz

- Pit cut back to access full 3.6moz inventory underway

Queensland

• Mt Wright depth extension drilling underway as is resource definition drilling at Welcome Breccia.

• Sarsfield pit reopening optimisation studies ongoing to supplement 3yrs reserve life remaining at mt wright. No requirement for a fully lined tails dam as a key potential saving - fundamentally the project needs to find at least $50m of savings (as per the full feasibility study) in order to deliver a strong enough economics to proceed.

• NMG - see project size and all but completed operation as offering huge leverage. $15m capex at the front end to get into commissioning 100koz of oxide over next 6mnths. Then cutback on main ore body of circa $100m.

• Theoretically can deliver RSG an asset of 100kozpa within 12mnths for a very low acquisition cost.

• This will replace Golden Pride.



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Sirius Resources (SIR $4.45) Speculative Buy Analyst: Greg Chessell

Presenter: MarkBennett,MD

• Recent discovery of the Bollinger-Conductor 6 zone has changed the complexion. Five holes completed to date successfully intersecting potentially high grade mineralisation;

- Hole262:32mofmassiveandbrecciasulphidefrom402m;

- Hole259:14mofmassiveandbrecciasulphidefrom450m;

- Hole258,42mofmassiveandbrecciasulphidesfrom432m;

- Hole256,32mofstringerandbrecciasulphidesfrom383m;

- Hole 254, 2.5m massive sulphides from 403m.

• There is now a roughly 150m x 200m zone of mostly massive-breccia Ni-Cu mineralisation with an average thickness of ~19m defined by these holes in a horizontal orientation. This could host 2.5mt of high grade ore. Assays are awaited on all drilling, however Sirius comments that the mineralisation appears identical to that at Nova. We estimate the massive-breccia combination might average 2.5-3.5% Ni & 1.0-1.5% Cu, similar to our estimate of the grade at Nova.

• The market has a high expectation of ongoing success at Bollinger. Sirius is valued by the market at $1.19b, implying the Fraser Range JV (100% basis incl Nova-Bollinger) valuation of $1.6b.

• Our preliminary modelling suggests this valuation could be supported by typical marketmultiples (sayEV:EBITDA3-5x) foraminedevelopmentsay50%largerthan we have previously suggested. A development of this scale could produce ~US$400mofEBITDA(previouslyUS$270m).WenotethathighqualityassetslikeNova-Bollinger will usually attract a market premium reflecting their expected low cost and long life characteristics.

• The maiden resource at Nova remains due in late March’13. We continue to expect 8-10mt grading 2.5%Ni and 1.2% Cu. The resource estimate is now less of a market driver since the discovery of Bollinger, but remains a vital technical milestone nonetheless.



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Sun Resources NL (SUR $0.05) Speculative Buy Analyst: Michael Skinner

Presenter: MatthewBattrick,ManagingDirector

• SUR has delivered early stage flow rates at our economic threshold (~200boepd), the company now needs to deliver profitable flow rates near too (or ideally above) 400boepd.

• The demonstration of flow at 400boepd is expected to generate market interest via the implied field scalability potential.

• Evaluation information to date within the Amerril project area builds confidence that these rates are achievable short-term, anticipated from April through May.

Amerril Project (SUR 50%)

• Seale#1(vertical)-ThewellhasreachedTDandwirelinecompleted-5differingstacked formations have been positively identified. The well will be fracced in the coming months with multi-zone production to follow.

• T.Keeling#1H-Thewellhasbeendrilledsuccessfullyandnowawaitscompletion(fraccing).

• Seale #1 H - The well is currently drilling, strong oil shows has led to increased prioritisation, the well will now be the first well in the Amerril project area to be fracced, with flow rates anticipated in April.

• A delay to the program of ~2weeks has occurred due to borehole instability issues, this represents solely a timing delay and does not affect reservoir or flow potential.

Richland Oil (SUR 16.65%)

• Beeler #1H - The well was recovering fluid (approx. 10%) when a paraffin build-up required flow to be shut-in, installation of a rod pump and treatment will now occur to resolve the problem. An IP rate will be released once production has resumed and stabilised.

• John Beeler #1H - Flowing back fluid with a current peak rate of 880bbls/d inclusive176bbls/dofoil.Installationofgaslifthasnowbeencompleted;thisisexpected to further increase rates over the coming month.

• Ellis #1H - Flowed back fluid at a peak rate of 1,000bbls/d inclusive 250bbls/d of oil. A jet pump is being installed presently, and is anticipated to further aid fluid recovery and increase oil production rates.

• John Beeler #2 (vertical) - The well has been fracced and completed, 4 primary zones flowing back fluid (14% recovery to date). An IP rate will be released once production has stabilised.



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Teranga Gold Corporation Ltd (TZG $1.25) Buy Analyst: Andrew Clayton

Presenter: Richard Young, President and CEO

• Rather than a formal presentation, Richard talked about the key issues affectingTGZnamely;lackoffreeCFinCFY’13,reserves/explorationandlackofconsolidation.

• InlightoflowergoldpricesTGZwilllookatdiscretionaryspendinginCY’13andability to reduce the capex associated with Gora etc. It may look to lease mobile equipment for Gora rather than buy it outright. Exploration expenditure will be underreview–especiallyonregionaltargetswhichhasbeendisappointingthusfar.

• Mine Lease exploration will focus on Niakifiri which has a global resource of 800koz and is oxide.

• Will be an reserve update mid yr with final pit design and 43 101. Basically the economicsofdeepening thepit to incorporate theLFZandmostof theMFEdoesn’tstackup.Willincreasereservesbutnotthe‘superpit‘ithadhopedfor–also will be a portion of underground reserves.

• Regional exploration started with +100 targets and drilled 25 prospects last year have narrowed this down to 12 targets this yr

• TGZstillbelieveproductioncanincreaseto~250kozwiththeintroductionofGora next yr. Gora should deliver production of ~ 60koz pa over a 4yr life @ US$675-700/oz. Permitting remains the major uncertainty.

• Cost will increase this yr as it increases mining to get an additional 30koz production into the tax free period until May’15.

• The lack of consolidation in the region (originallywhy TGZwas formed)wasaddressed. When a permit changes from exploration to mining/exploitation the govt/or a Senegalese citzen has the right to buy a 20-30% interest. Sabodala rec’d an exemption.

• TGZ is aiming for agrandplanwhere thisoption is removed in return for anincrease in royalties from 3% to 5% and allows the inevitable consolidation of this region to occur. They did state originally the govt had visions of a Burkina Faso growth of 6 new mines in 5 yrs etc and it has taken a long while to educate the govt these projects are not stand alone.

• TGZ stated if it did nothing, treated current reserves of 1.55moz, LOM costof US$800-850/oz with total all up capital of US$130m then at a gold price of US$1,600/oz NPV5 is $2.10/sh.

• TGZ have additional debt facilities in place but would only draw on thesepending a deal etc. Otherwise look to repay the Macquarie facility in mid CY’14.

• PT $2.50/sh.


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Industrials Companies

Amcom Telecommunications Ltd (AMM $1.67) Buy Analyst: Richard Hamersley

Presenter:CliveStein,MD

• As usual, a very positive and enthusiastic presentation from Clive.

• FocusofpresentationwasthesignificantgrowthopportunityaheadwithCisco,whereby AMM has struck an agreement to manage the rollout of Cisco’s new age telephones to corporations across Australia.

• Whilstearlydays,theopportunityfornewbusinessthroughCisco’scustomerbase is significant and will play out over the next +5 years.

Automotive Holdings Ltd (AHE $4.04) Hold Analyst: Richard Hamersley

Presenter: Phil Mirams, CFO

• AverygoodpresentationfromPhil;averysuccinctinformativestyle.

• Well placed for growth in the logistics division, particularly transport & coldstorage.

• Victoriaisthenextgrowthregionfortheautomotivedivision.

• A reasonable yield play with low-moderate organic growth, but looks fullyvalued at this stage.

Cedar Woods Properties Ltd (CWP $5.80) Buy Analyst: Gavin Allen

Presenter: PaulSadleir,MDandCEO

• Re-iteratedguidancelookingfor2013NPATof$35m(arecord)

• Presalessupportingthishavealreadybeenachieved

• InWA,seeingstrongdemandacrossanumberofprojectswithmodestpricegrowth expected.

• Victoriasubdued,howeverCWPprojectsgoingwellinachallengingmarket.

• Approx5,000 lots inmatureprojects are available fordevelopmentover thenext 5 years, meaning CWP can be opportunistic in replenishing the long term project pipeline.

• $80mofproductpresoldfor2014,agoodstart

• Approachingour12monthpricetargetof$5.70,howeverweviewthiswithanupward bias and $6.80 is a realistic expectation with further re-rate.


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Clough Ltd (CLO $1.34) Buy Analyst: Gavin Allen

Presenter: Neil Siford, CFO

• Re-iteratedstrongfirsthalfandrecordEBIT(exForge)of$38mfromrevenuesof$660m, with $1.37b secured for 2013 and $1b secured for 2014.

• Focusonperformancetheprimarymandate.

• Costscontinuetocomeoutofthebusinessand77%oftheorderbookiscostreimbursable.

• RobusttenderpipelinewithneartermopportunitiesonLNGinPNG,QueenslandandonWheatstoneandonasizableFEEDopportunityforArrowEnergy.

• 7%EBITtargetwasre-iterated.

• Balancesheetstrengthprovidesflexibilitytopursuegrowthoptions.

• Strategically looking forgrowth in Engineering andAsset Supportover timeand expansion into mining and minerals.

• InthemeantimewillharvestCSG/LNGopportunitiesandtheseopportunitiescurrently support a robust outlook.

• PTretainedat$1.60.

CTI Logistics Ltd (CLX $1.95) Buy Analyst: Richard Hamersley

Presenter:BruceSaxild,JointManagingDirector

• Thissolidbusinesswaswellreceived.AverygoodpresentationfromBruce–very in depth overview of the company which was needed given most investors were seeing this company for the first time.

• Earningsarehighqualityandgrowthisreasonablystrong.

• Keydriversforgrowthare1)warehousestorage&distributionforkeyretailersin WA and 2) logistics to the LNG service providers.

• Qualitymanagementteam–veryexperienced.

• Agoodyieldplaywithgrowth.

Empired Ltd (EPD $0.60) Buy Analyst: Richard Hamersley

Presenter:RussellBaskerville,MD

• Firsttimeseenformanyinvestors,averyenergeticpresentation.

• Wellplacedforstronggrowth;strongmanagementteamcapableofwinninglarger contracts which is what we are looking for.

• Targetsector(ITmanagedservicesfortheresourcessector)isgrowing,EPDwellplaced to benefit.

• Acquisitions remain a key part of EPD’s strategy – particularly to add newcapability. Would perhaps need to raise capital on the back of a sizeable acquisition.


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Finbar Group Ltd (FRI $1.42) Buy Analyst: Gavin Allen

Presenter:DarrenPateman,MD

• GuidancemaintainedatfullyearNPATofatleast$28m.

• The2013resultwillbe impactedbyhighendproject,Adagio,whichhas justcompleted.

• Recentsalespostcompletionhavebeenencouragingandwethinkthe$28mguidance is in good shape.

• In many ways the visibility in relation to 2014 earnings is clearer still, withprojects to be delivered next year primarily presold and under construction.

• FRIreleasedofftheplanmarketingonanewproject,theSprings,inFebruary2014 and has achieved 44 sales of 188 apartments in three weeks, indicative of a supportive market.

• While the demand for final product is strong, FRI remains able to pick upundeveloped land at attractive prices, as the banks remain cautious in funding development projects without long term proven relationships. Consequently the medium term outlook for margin is positive.

• 12monthpricetargetof$1.70

Forge Group Ltd (FGE $6.60) Buy Analyst: Richard Hamersley

Presenter:DavidSimpson,MDandCEO

• NowbecomingveryclearthatFGEiswellplacedforgrowthinFY14–investorsare finally waking up to this.

• Theorder book is likely tobe+$700malready locked away for FY14 shortly,versus our forecast of $950m revenue for FY14. We can only see upside risk to our forecast.

• Secondstagetoexistingpowerstationcontractslikelytofilltheremainderofour forecast plus more for FY14.

• Businesshassuccessfullyevolvedintoapowerstationcontractor–itsmoduleplant offering provides a competitive cost offering and is well placed to expand overseas, particularly South East Asia in the short term.

iiNet Ltd (IIN $4.87) Buy Analyst: Gavin Allen

Presenter:MichaelMalone,MDandDavidBuckingham,CEO

• Reiteratedstrongfirsthalf,generatedfromsuccessful integrationofpreviousacquisitions and increasing services per subscriber.

• Recent advertising campaigns have begun to generate broadband salesmomentum.

• Positivesidentifiedincludeimprovedproductspercustomer,growthinbusinesssegment, further costs out and NBN expansion.

• ChallengesincludeerodingfixedlinetelephoneandoffnetARPU.

• Thebusinesscontinuestogeneratestrongcashflows,andwillfurtherreducedebt and increase the dividend over time.

• PTretainedat$5.49


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MACA Ltd (MLD $2.82) Buy Analyst: Gavin Allen

Presenter: Ross Williams, CFO

• Record half year result re-iterated, including strong cash from operatingactivities of $42m.

• 2H2013tobestrongerstillwith rampupofRegisatRosemont,Atlas IronatAbydosandcrushingatPeculiarKnobcontributingforthefullhalf.

• Runratesupports$470minrevenuesfor2013andbeyond$550mfor2014.

• ExpectSinoSteeltoreengageonBlueHillsandParooStationtorecommenceQ4 fiscal 2013.

• Further opportunities exist at Mt Weber for Atlas (competitive bid) and onvolume growth for Regis.

• Arecentcapitalraiseimpliesastrongexpectationforgrowthin2013and2014.

• PTretainedat$3.48.

RCR Tomlinson Ltd (RCR $2.13) Buy Analyst: Gavin Allen

Presenter:PaulDalgleish,MDandCEO

• Re-iteratedrecordhalfyearresultandabalanced$465morderbook.

• Haveseenrecentupswinginmininggearordersafterapauseposttheironoreprice drop last year.

• The energy group have rejoined tendering lists for the majors in powergeneration capability and have seen tendering activity increase.

• The resources division is finishing Firetail for FMG and will move to Kings;expected completion date is October 2013. Any performance bonus would be generated then.

• Opportunities also exist to subcontract on the major LNG projects asconstruction on these projects begins in earnest.

• DivisionverybusyuntilOctober,replacementworkrequiredafterthat.

• Strongbalancesheet($53mcash),supportspossiblegrowthbyacquisition,withafocus on technology based infrastructure (rail, water, high voltage power, ports)

• 12monthPTretainedat$2.92

Southern Cross Electrical Engineering Ltd (SXE $1.32) Buy Analyst: Gavin Allen

Presenter:SimonHigh,MD

• Firsthalfwasatthelowendofexpectationshoweverasignificantlystrongersecond half is expected.

• Indicatively, $14mof revenueswere reported inDecember, rampingup to apossible $35m by May 2013 as RIO and Tropicana peak.

• Whiletimingofprojectswillultimatelydeterminerevenuelevels in2014,SXEwill have a good start and there are plenty of opportunities in Iron Ore, CSG and LNG to fill the pipe.

• In particular, if SXEwin Phase B at Cape Lambert for RIO (they are currentlyworking on Phase A) 2014 should be another strong year in the lead up to what could prove step change growth as the LNG projects ramp up in 2015 and 2016.

• SXEhashadrecentsuccessingrowingitsmaintenancedivisionwith work won for BHP, a strategic focus.

• 12monthpricetargetof$1.79.


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$2.50

$3.00

$3.50

$4.00

$4.50

Mar-12 Jun-12 Sep-12 Dec-12

$/sh AUT 12 Month Price History

Analyst: Jon Bishop

Aurora Oil & Gas Ltd Year end 31 DECShare Price 3.85 A$/sh

Price Target 6.00 A$/shMethodology npvValuation 5.39 A$/sh (npv 10% nom) Shares on issue 448 m, diluted * Market Capitalisation 1724 A$m Enterprise Value 2226 A$m Debt 570 A$mCash 68 A$m LargestShareholder Dir&Management 10.0%

Production F’cast 2011a 2012a 2013f

Total Attrib (net mmbboe) 0.75 2.84 6.53Op Costs US$/boe 5.70 9.98 9.55

Assumptions 2011a 2012a 2013f

Avg Oil Price (US$/bbl) 95 94 95Avg Oil Price Rec’d (US$/bbl) 94 94 101Avg Gas Price Rec’d (US$/mcf) 3.67 3.00 3.06Avg LPG Price Rec’d (US$/bbl) 55 42 30AUDUSD 1.03 1.04 1.04

Key Financials 2011a 2012a 2013f

Revenue (US$m) 62 220 472EBITDA(US$m) 40 166 392NPAT (US$m) 29 59 162Cashflow (US$m) -42 -259 -125 CFPS (Ac) -10 -56 -27P/CFPS (x) na na na EPS (Ac) 7 13 35EPS growth (%) na 86% 173%PER (x) 55.8 30.3 11.1 EV:EBITDA(x) 38.1 12.4 5.9EV:EBIT (x) 60.8 17.4 7.5 DPS(Ac) 0.0 0.0 0.0DividendYield(%) 0% 0% 0% ND:NetDebt+Equity(%) na 42% 51%Interest Cover (x) na na na

Share Price Chart

Disclosure

Euroz Securities declares that it has acted as underwriter to and/or arranged an equity issue in and/or provided corporate advice to Aurora Oil and Gas Ltd during the last year. Euroz Securities has received a fee for these services.

This analyst also declares that he has a beneficial interest in Aurora Oil and Gas Ltd.

Analyst: Jon BishopDate: 28 February 2013

FY’12 Financials

Price Target: $6.00/sh

Investment Case:

AUThasdeliveredaverystrongFY’12:EBITDAofUS$165mandNPATofUS$59m.TheCompany remains on a steep production and earnings growth profile and can double net production from CY’12 to ’13. Furthermore, the Operator is achieving improved well productivity, thus delivering production growth from essentially lower capital outlay. Falling well capex should be an increasing theme as operations switch to pad-based drilling. Additional reserve and field upside potential are realistic outcomes from the down-spacing, Austin Chalk and deeper horizon pilot programmes. The Company remains peerless in this regard. Buy.

Key Points:

FY’12 highlights:

• US$217mafterroyaltyrevenues(US$294mgross)fortheyeartodate,aheadofEZLUS$206mest.

• EBITDAofUS$167m(aheadofEZLforecastof$165m);

• NPATofUS$59m(aheadofEZLforecastofUS$55m);

• CYendexitof18.8kbboepd(13.9kbboepdpost royalty)aheadof18kbboepdguided.

• BorrowingbasehasincreasedtoUS$275mfrom$150m(ofUS$300m).US$212mremains undrawn.

• AtcurrentblendedpriceachievedofWTI+US$6/bbldriving+85%ofrevenueswe retain our forecast for positive operating cash flow from late CY’13.

Deeper Pearsall shale pilot programme has commenced; results due after fullevaluation

Shallower Austin Chalk pilot programme – two 60 acre offsetting current AustinChalk production

We retain a $6/sh price target to reflect downspacing, well optimisation and additional development horizons.

Analysis:

AUT has consistently delivered Q-on-Q growth over the past 2.5yrs and should more than double net cumulative production from CY’12 to ’13: Low risk production rates of this magnitude would otherwise seem compelling in our experience.

We are strongly of the view that as 2013 unfolds, the continued strong growth in earnings will point towards AUT becoming operating cashflow positive around CY’end.

Webelievethatthecompellingforwardearningsmultiples–12xCY’13fallingto7xCY’14–willdrivestronginterest.

Furthermore, cheap earnings multiples are favourably augmented by the fact that AUT continues to offer long term projected growth: We est. current peak production

Aurora Oil and Gas Ltd(AUT $3.85) Buy


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Analyst: Jon Bishop


of 38kbboepd after royalty in 2019.

And that the development is a repeatable and scalable.

We also believe that the down-spacing and additional reservoir development horizons will be more favourably factored into mkt estimations of value given that the initial phase of development has proven that is highly economic.

The net result being that the market will have greater comfort in forecasting longer plateau production attributable to AUT and with production growth through either development acceleration and/or additional development horizons (Austen Chalk and Pearsall).

We highlight that the independent reserves engineers have already factored-in an initial production profile for 40-acre and 60-acre spaced wells consistent with the 80-acre type curve.

AUTisconfortablyfunded:CashofUS$68matDec31andcurrentundrawncapacityof US$212m is more than sufficient on our assumptions to see AUT through to self-sustaining cashflow.

AUT’s reserves have once again shown healthy growth: The 1 and 2P numbers post royaltywere in-linewith EZL estimates (after factoring acquisitions)whilst the 3Pexceeded our forecast by 15mmbboe.

2P and 3P categories consider development of the Austin Chalk over part of AUT’s acreage.

We maintain our A$6/sh price target as AUT’s production and cashflow remains on a steep upward trend with downspacing and Austin Chalk (plus other horizons) already showing development potential.


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Analyst: Jon Bishop

PROFIT AND LOSS (A$m) 2011a 2012a 2013f 2014f

Sales Revenue (post royalty) 55 197 454 731 Hedging Revenue - - - - DeferredRevenue 3 15 - -Interest Revenue 2 4 3 4 Other Revenue 1 - 15 - TOTAL REVENUE 62 220 472 734 Operating Costs 7 35 64 103 Dep/Amort 14 39 76 152O/H+NewBusDev 13 15 12 12W/O & Provisions 1 9 11 11 EBITDA 40 166 392 615EBIT 25 118 306 452 Interest Expense 0 28 60 68 NPBT 28 91 249 388 Tax (2) 32 87 136 NPAT 29 59 162 252 Minorities - - - - NET PROFIT 29 59 162 252

CASH FLOW (A$m) 2011a 2012a 2013f 2014f

Net Profit 29 59 162 252 + Working Capital Adj. (8) - (12) - +Dep/Amort 14 39 76 152+ Provisions 1 9 11 11 + Tax Expense (2) 32 87 136 - Tax Paid - 3 33 110 Operating Cashflow 35 143 291 441 -Capex+Development 77 402 416 410-Exploration 2 1 1 1 -Assets Purchased - 197 117 - +Asset Sales - - - - +Other 2 (8) - - Investing Cashflow (78) (608) (534) (411) +Equity Issues 39 115 - - +LoanD’down/Receivable 28 396 235 50+Other - (12) - - -Loan Repayment - 39 - - -Dividends - - - - Financing Cashflow 66 460 235 50 Period Sur (Def) 24 (5) (8) 80 Cash Balance 70 67 59 139

BALANCE SHEET (A$m) 2011a 2012a 2013f 2014f

Assets Cash 70 67 59 139 Current Receivables 15 90 90 90 Other Current Assets - - - - Non-Current Assets 296 954 1,294 1,552 Total Assets 381 1,111 1,443 1,780 Liabilities Borrowings 30 390 630 680 Current Accounts Payable 74 181 181 181 Non-Current Liabilities 2 85 85 85 Other Liabilities - 2 2 2 Total Liabilities 106 658 898 948 Net Assets 275 453 545 833

RESERVES AND RESOURCES

Liquids Gas Total EV/boeSugarkane mmbbls bcf mmboe A$ 1P 52.3 105.5 76.6 29.1 2P 56.0 119.6 90.0 24.7 3P (est. inc. Heard&Axel Ranch) 85.0 233.9 144.0 15.5 Austin Chalk 3C Resource 18.6

MARKET STATISTICS YEAR END 31 DEC

ASSET VALUATION A$m A$/sh

Sugarkane - Sugarloaf 923 2.06 Sugarkane - Axel Tree 159 0.35 Sugarkane - Heard Ranch 199 0.44 Sugarkane - Longhorn 1,233 2.75 Sugarkane - Ipanema 180 0.40 Sugarkane - Excelsior 168 0.37 Listed Inv. & Res’v upside 100 0.22 Corporate (54) (0.12)Unpaid Capital 2 0.00 Debt (570) (1.27)Cash 68 0.15 Total @ 10% nom 2,408 5.39

F/CAST PRODUCTION (A$m) 2011a 2012a 2013f 2014f

Attrib. Prod’n (kbbls/bcf) Well Count per year (gross) 74 157 140 159Sugarkane - Sugarloaf cond. 51.3 319.3 1,258.7 1,727.2 28.1% gas 0.2 1.2 3.5 6.3 LPG 111.5 437.5 593.7 Sugarkane - Longhorn cond. 206.4 904.2 1,781.7 2,485.5 31.9% gas 2.1 3.3 4.5 9.0 LPG 314.3 610.1 860.5 Sugarkane - Ipanema cond. 27.5 119.5 394.5 502.7 36.4% gas 0.3 0.4 1.0 1.8 LPG 42.7 135.5 173.2 Sugarkane - Excelsior cond. 37.3 71.6 150.8 304.3 9.1% gas 0.2 0.3 0.4 1.1 LPG 25.2 52.8 106.1 Sugarkane - Axel Tree mmbboe 0.3 0.6 Sugarkane - Heard Ranch mmbboe 0.2 0.7 Total Attrib (net mmbboe) 0.8 2.8 6.5 10.3 Assumptions Avg Oil Price (US$/bbl) 95.4 94.3 95.0 97.5 Avg Oil Price Rec’d (US$/bbl) 93.9 94.3 101.0 102.5 Avg Gas Price Rec’d (US$/mcf) 3.7 3.0 3.1 3.1 Avg LPG Price Rec’d (US$/bbl) 55.0 42.3 29.6 46.5 US$:A$ 1.03 1.04 1.04 1.00

RATIO ANALYSIS (A$m) 2011a 2012a 2013f 2014f

CF (US$m) normalised (42) (259) (125) 31 CF / Sh (Ac/sh) (10) (56) (27) 7 CF Ratio (x) na na na 55.7 Earnings (US$m) 29 59 162 252 EPS (Ac/sh) 7 13 35 56 EPS Growth (%) na 86% 173% 62%Earnings Ratio (x) 55.8 30.3 11.1 6.8 E’prise Val. (A$m) 1,537 2,047 2,295 2,265 EV:EBITDA(x) 38.1 12.4 5.9 3.7EV : EBIT (x) 60.8 17.4 7.5 5.0 NetDebt/ND+Eq(%) na 42% 51% 39%NetDebt/Eq(%) na 71% 105% 65%NTA / sh (A$/sh) 0.64 0.98 1.17 1.86 Interest Cover (x) na na na 0 EBIT Margin (%) 42% 55% 65% 62%ROE (%) 11% 13% 30% 30%ROA (%) 7% 11% 21% 25%Div.(Ac/sh) - - - -Div.payoutratio - - - -Div.Yield - - - -Div.Franking - - - -

DirectorsJ. Stewart Exec. Chair’nI.Lusted Tech.Dir.G.Dowland Fin.DirG.Schoch DirA.Watson DirF.Harris DirW.Molson Dir

ShareholdersDir&Management 10.0%CI Investments 8.7%JP Morgan 6.5%

Share Price $3.85 A$/sh Issued Capital

FP Ord 444.8 m Opt (@$var/sh) 3.7 m Total Dil. FPOrd 448.4 m Market Capitalisation $1,724 mEnterprise Value $2,226 mDebt $(570)mCash $68 m



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$/sh OMH 12 Month Price History

This analyst declares that he has a beneficial interest in OM Holdings.

OM Holdings Ltd Year end 31 DEC

Share Price 0.33 A$/sh

Price Target 0.53 A$/shMethodology npvValuation 0.53 A$/sh Shares on issue 673 m, diluted * Market Capitalisation 219 A$m Enterprise Value 309 A$m Debt 179 A$mCash 89 A$m LargestShareholder Dir&Mgt-19.8%

Production F’cast 2012a 2013f 2014f

OMM Bootu Ck (kt) 774 800 822Cash Costs A$/dmtu 3.95 3.96 4.26

Assumptions 2012a 2013f 2014f

Mn cif USc/dmtu 5.07 5.83 6.00Mn rec’d fob USc/dmtu 3.84 4.30 4.45AUDUSD 1.04 1.04 1.00

Key Financials 2012a 2013f 2014f

Revenue (A$m) 418 678 822EBITDA(A$m) -30 34 32NPAT (A$m) -14 10 9Cashflow (A$m) 61 21 21 CFPS (Ac) 9 3 3P/CFPS (x) 2.8 10.5 10.3 EPS (Ac) -2 1 1EPS growth (%) -85% -170% -2%PER (x) na 22.5 23.1 EV:EBITDA(x) na 8.8 8.7EV:EBIT (x) 8.1 13.0 13.7 DPS(Ac) 0.0 0.0 0.0DividendYield(%) 0% 0% 0% ND:NetDebt+Equity(%) 22% 19% 16%Interest Cover (x) 2.3 2.3 3.0

Share Price Chart

Disclosure

Analyst: Greg Chessell

Analyst: Greg ChessellDate: 06 March 2013

Full Year Result


Investment Case:

This result shows that OMH has survived another difficult year in Manganese, still in ok shape. Its integrated structure has continued to generate income at the downstream end of the business, offsetting the tougher upstream environment. There is still much work to be done on improving the balance sheet. We expect an improvement in both ore and alloy prices in 2013 which should also assist in the credit conditions for OMH customers leading to a tidier balance sheet. The Mn ore price is showing green shoots, consistent with higher iron ore and steel prices. Tight inventory levels should see modest price gains continue for the mid-term. Completion of financing the Sarawak alloy smelter project (1-2 months) could be a near term catalyst too. The downturn, and financing Sarawak & Tshipi has seen OMH’s balance sheet become stretched, creating risk for investors which is discounted into the share prices. The Executive Chairman (NT Low) increased his stake significantly at $0.40/sh in the rights issues in Sep’11. We think on balance OMH currently offers upside, our valuation is $0.53/sh.

Key Points:

• UnderlyingEBITDAfortheDecH’12of$12mwassimilartothe$10mfortheJuneH’12.

• HeadlineNPATwasa lossof$61mfor theyearasa further$21mimpairmentwasrecordedontheinvestmentsinNFE(&SRR)intheDecH’12,inadditiontothe $31m impairment charge in the June H’12. In effect the result was pre-tax breakeven before the impairment. This reflects the difficult year in manganese prices.

• Cashflowshowedgoodimprovementto$42mforDecH’12,from$19minJuneH’12 due to reduction in inventory by a similar amount.

• Totalborrowingsremainhighat$179m,backedbycashof$89mandnetotherworking capital (rec+inv-pay) of $118m.

• The$27mholding inNFE ispledgedagainst the$53mSCBdebt facility. Theshort term debt of $64m is backed by Chinese bank draft pledges and $26m of trust receipts are to be serviced from receivables. A further $18m debt refers to the Hanwa convertible note, as part of the equity funding for the Sarawak smelter project.

• The divisional split shows that the Marketing and Alloying businesses areprofitable while the Bootu Creek mine remains loss making. It must be remembered that OMH is an integrated producer and all division are related parties, resulting in less meaningful divisional splits.

• OMHremainsindisputewiththeNTGov’toverroyaltyliabilitiessince2006.A$15m charge was expensed and $9m is payable, although OMH disputes the NT Gov’t claims and a process to resolve the issue is underway.

• MnorepriceshitanadirofUS$4.75/dmtuinearly2012afteratwoyeardecline.AmoderateincreaseinDecH’13coincidedwiththedownturnintheChinesesteel sector and iron ore prices, effectively masking the Mn recovery. BHP has moved to weekly pricing mechanism for Mn ore in 2013 with the most recent settlement of US$5.65/dmtu cif for 1st wk March (set prior to Chinese New Year). NB. Mn reference price has subsequently risen again to US$5.85/data for deliveries in April ‘13

OM Holdings Ltd(OMH $0.325) Buy


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Analyst: Grec Chessell


• Chinese Mn ore port stocks have been stable at 2.3-2.5mt since June 2012,well down on the near 4mt a year earlier. The stock to consumption ratio of 2.3 months is as low as it was when Mn ore was priced at US$8.70/dmtu in mid 2010.

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Mn ore China Port Stocks, Imports & PriceSeries1 Chinese Port Stocks IMnI Chinese Port Stocks TEXStock to cons ratio Mn ore ref pricemt & mths US$/dmtu cif

D H’12 J H’12 D H’11 J H’11Mn Ore CIF China 5.28 4.86 5.30 5.93(US$/dmtu)GP 26 25 26 33EBITDA 12 10 -6 17EBIT 4 4 -13 12NPAT -32 -29 -22 10CF 42 19 23 -4

Revenue Mining 68 41 66 67Alloys 66 62 75 44Marketing 263 233 243 191Other 263 233 243 191Total

PBITMining -13 -15 -32 -3Alloys 4 4 -2 2Marketing 13 14 4 13Other -23 -32 -3 -5Total -20 -29 -33 8

DebtSCB 53 71 90 Johor 14 15 16OMQ 4 11 11HANWA 18 18 0STDebt 64 71 50Trust Receipts 26 0 0Total 179 185 167 137

Receivable 89 75 89 59Inventory 119 144 158 171Payables 90 80 120 83Net WC 118 139 127 148Cash 89 68 32 35New Equity 26 35Dividends 10


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PROFIT AND LOSS (A$m) 2012a J H’13f 2013f 2014f 2015f

Mining Revenue 280 64 137 160 183 Trading Revenue - 188 396 506 602 FerroAlloy Revenue 127 70 142 153 164 Forex Hedging Revenue - 0 0 0 0 Interest Income - 2 3 3 2 Other Revenue 10 - - - - TOTAL REVENUE 418 324 678 822 951 Operating Costs 439 304 630 776 880 Dep/Amort 14 5 10 11 11W/O & Provisions (45) 0 1 1 1 Corp O/H 9 5 10 10 14 EBITDA (30) 13 34 32 54EBIT 32 8 23 21 42 Interest Expense 6 6 12 10 9 NPBT (6) 3 14 14 36 Tax 7 1 4 4 11 Minority Interest 0 - - - - NET PROFIT (14) 2 10 9 25 Net Abnormal Gain/(Loss) - - - - - NET PROFIT After Abn’l (14) 2 10 9 25

CASH FLOW (A$m) 2012a J H’13f 2013f 2014f 2015f

Net Profit (14) 2 10 9 25 + Working Capital Adj. 106 - - - - +Dep/Amort 14 5 10 11 11+ Provisions/WO (45) 0 1 1 1 + Tax Expense 7 1 4 4 11 - Tax Paid 7 1 4 4 11 Operating Cashflow 61 8 21 21 37 -Capex+Development 2 12 14 5 3-Exploration 3 - - - - -Assets Purchased 53 - - - - +Asset Sales 3 - - - - Investing Cashflow (53) (12) (14) (5) (3) +Equity Issues 61 - - - - +LoanD’down/Receivable 20 - - - -+Other 5 - - - - -Loan Repayment 37 10 20 39 - -Dividends - - - - -Financing Cashflow 49 (10) (20) (39) - Period Sur (Def) 57 (14) (13) (23) 34 Cash Balance 89 75 75 52 86

BALANCE SHEET (A$m) 2012a J H’13f 2013f 2014f 2015f

Assets Cash 89 75 75 52 86 Current Receivables 88 88 88 88 88 Other Current Assets 150 150 150 150 150 Non-Current Assets 300 307 304 298 290 Total Assets 626 619 617 588 614 Liabilities Borrowings 179 165 155 116 116 Current Accounts Payable 90 90 90 90 90 Other Liabilities 35 35 35 35 35 Total Liabilities 304 290 280 241 241 Net Assets 322 329 337 347 373


Reserves Resources mt Mn% mt Mn%Measured / Proved 6.9 20.3 7.2 21.6Indicated / Probable 10.5 21.0 24.1 22.5Inferred 1.0 21.9Total 20.5 21.3 32.3 22.3

MARKET STATISTICS YEAR END 31 DEC


Bootu Ck 52 0.08 OMH Trading 131 0.19 OMH Quinzhou 56 0.08 Sarawak Smelter 96 0.14 Tshipi (13%) 60 0.09 Johor 16 0.02 Hedging 0 0.00 Corporate (31) -0.05 Other - - Investments 27 0.04 Working Capital 41 0.06 Unpaid Capital 1 0.00 Debt (179) -0.27Cash 89 0.13 Total 358 0.53

F/CAST PRODUCTION (A$m) 2012a J H’13f 2013f 2014f 2015f

OMM Bootu Ck (100%) Lump Mn Ore Shipped kt 508 256 512 521 521 Fines Mn Ore Shipped kt 121 70 138 151 151 SPP Mn Ore Shipped kt 145 75 150 150 150 Total Mn Ore Shipped kt 774 401 800 822 822 Total Cash Costs (C1) A$/dmtu 3.95 3.95 3.96 4.26 4.27 Tshipi (26% x 50.1%) Total Mn Ore Shipped kt 156 468 1,092 1,248 1,872 Attr. Mn Ore Shipped kt 20 61 142 162 243 Total Cash Costs (C1) A$/dmtu 2.94 2.71 2.69 2.79 2.91 OMS Marketing Mn Ore kt 1,129 665 1,383 1,460 1,679 Cr Ore kt 80 40 80 80 80 Mn Alloy kt 40 20 40 40 40 Cr Alloy kt 20 10 20 20 20 Revenue A$m 402 188 396 506 602 Gross Margin % 12.9% 14.0% 14.0% 13.0% 13.0%OM Quinzhou Revenue A$m 128 70 142 153 164 Gross Margin % 14% 10% 10% 10% 8%Assumptions Mn price ass. (lump cif ) USc/dmtu 5.07 5.67 5.83 6.00 6.00 Mn price rec’d (lump fob) USc/dmtu 3.84 4.15 4.30 4.45 4.45 Ass’d Spot Rate US$:A$ 1.04 1.04 1.04 1.00 0.95 Avg Rate Ach’d US$:A$ 1.04 1.04 1.04 1.00 0.95

RATIO ANALYSIS (A$m) 2012a J H’13f 2013f 2014f 2015f

CF (A$m) 61 21 21 37 CF / Sh (Ac/sh) 9 3 3 6 CF Ratio (x) 2.8 10.5 10.3 5.9 Earnings (A$m) (14) 10 9 25 EPS (Ac/sh) (2) 1 1 4 EPS Growth (%) -85% -170% -2% 167%Earnings Ratio (x) na 22.5 23.1 8.6 E’prise Val. (A$m) 262 299 283 249 EV:EBITDA(x) na 8.8 8.7 4.6EV : EBIT (x) 8.1 13.0 13.7 5.9 NetDebt/ND+Eq(%) 22% 19% 16% 7%Interest Cover (x) 10 2 3 6 EBIT Margin (%) 8% 3% 3% 4%ROE (%) -4% 3% 3% 7%ROA (%) 5% 4% 3% 7%

DirectorsLow Ngee Tong Ex. Chair’nPeter Toth CEOTanPengChin DirJulieWolseley DirWongYuLoon DirThomasTeoLiangHuat DirZainulAbidinRasheed DepChPeterChurch DirPaul Thomas CEO, OMMShareholdersSKHeng 9.8%NT Low 10.0%Huang Gang 10.1%

Share Price $0.33 A$/sh Issued Capital FP Ord 673.4 mOpt ($1.64/sh) 4.0 mOpt ($1.75/sh) 4.0 mOpt ($1.87/sh) 4.0 mOpt ($2.49/sh) 9.0 mTotal Dil. FPOrd 673.4 m Market Capitalisation $219 mEnterprise Value $309 mDebt $(179)mCash $89 mCurrency Hedging nil


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$/sh PIR 12 Month Price History

Papillon Resources Ltd Year end 30 June


Price Target 2.20 A$/shMethodology Valuation 2.16 A$/sh (npv 10% nom) Shares on issue 268 m, diluted * Market Capitalisation 410 A$m Enterprise Value 390 A$m Debt 0 A$mCash 20 A$m Largest Shareholder GCIC - 7.7%

Production F’cast 2013f 2014f 2015f

Attrib. Prod’n (koz) 0 0 190Cash Cost (A$/oz) n/a n/a 604Total Cost (A$/oz) 544 645 806

Assumptions 2013a 2014f 2015f

Gold US$/oz 1668 1625 1550AUDUSD 1.04 1.02 1.00


Revenue (A$m) 1 1 292EBITDA(A$m) -10 -10 165NPAT (A$m) -9 -16 75Cashflow (A$m) -9 -224 53 CFPS (Ac) -3 -62 14P/CFPS (x) na na 9.4 EPS (Ac) -3 -4 21EPS growth (%) na na naPER (x) na na 6.4 EV:EBITDA(x) na na 3.0EV:EBIT (x) na na 3.8 DPS(Ac) 0.0 0.0 0.0DividendYield(%) 0% 0% 0% ND:NetDebt+Equity(%) 309% 29% 5%Interest Cover (x) na na 4.4

Share Price Chart

Analyst: Andrew Clayton

Analyst: Andrew ClaytonDate: 08 March 2013

Further mineralization identified at Fekola


Investment Case:

Drill results demonstrate mineralization extends beneath the current 4.2mozresource and the newly defined IP anomaly 1.4km south of Fekola represents an exciting target. A PFS should confirm Fekola as a Tier 1 project and one of the most exciting new gold developments of the past 5 yrs. We maintain our $2.20/sh PT and believe PIR has both the production size and costs structure that will be appealing to both investors and/or acquisitive corporate’s.

Key Points:

• 7holesreleasedfromthe2013drillprogramshowingmineralizationextendsoutside the current resource estimate.

• Betterresultsinclude;

73m @ 3.11 g/t Au from 284m

16m @ 3.85 g/t Au from 392m

13m @ 6.49 g/t Au from 483m

• Resultsconfirmthecontinuityofthehighgradeshoottothenorth.

• Initial results from shallow drilling within the Fekola corridor providedencouraging intersections with a best intercept of 4m @ 3.85 g/t Au from 10m.

• Re-interpretation of geophysical data has highlighted a priority explorationtarget 1.4km from Fekola. This Induced Polarisation (‘IP’) target compares well in both size and intensity to the IP anomalism of Fekola.

• APFSisduetobereleasedearlyinQ2.Thisshouldshowaveryrobustprojectcapable of producing ~ 250-300koz pa for +10yrs at operating costs of ~ US$600/oz with a capital cost of ~ US$300m.

Analysis:

These results demonstrate that the current 4.2moz resource will grow and with +200 gram per metre intersections, highlights the world class nature of this deposit. The potential for resource growth to +5moz is clear.

The results from the initial shallow drilling along strike are also encouraging and similar to the tenor of early results at Fekola.

The IP anomaly to the south of Fekola is a priority target as Fekola discovery was the result of a similar geophysical anomaly. This anomaly could be associated with the same disseminated sulphide gold bearing mineralization at Fekola.

The PFS remains on track to be completed early in Q2 and should demonstrate a very robustproject.Webelieveultimatelyproductionwillbecloserto300kozpa–maybeby pushing mill throughput to ~ 4.3-4.4mtpa. We would expect a high conversion of the M&I 3.5moz resource and say 80% to deliver initial reserves of ~ 3moz.

TheDFSisslatedtobefinishedinearlyCY’14withpermittingtargetedformidCY’14and production in mid-late CY’15.

Papillon Resources Ltd(PIR $1.32) Buy


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PIR has the mgt team to take this through to production. The recent appointment of Mark Connelly who built the Nzema mine in Ghana on time and budget and was the COO of Endeavour Mining is a huge positive and his experience of outsourcing all things possible ie contract mining, power etc should lead to a highly successful development in due course.

A combination of poor gold sentiment and the concern over the Mali situation has seenPIRat8monthlows–thisisagoodbuyingopportunity.

We maintain our Buy on PIR with a PT of $2.20/sh. It our preferred explorer/developer with the recent exploration results highlighting the resource growth potential and prospectivity of this Fekola corridor.


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PROFIT AND LOSS (A$m) 2012a 2013f 2014f 2015f 2016f

Gold Revenue 0 0 0 290 414 Hedging Revenue - - - - - Interest Revenue 1 1 1 2 5 Other Revenue - - - - - TOTAL REVENUE 1 1 1 292 419 Operating Costs 0 0 0 115 161 Dep/Amort 0 0 0 38 56W/O & Provisions - - - - - Corp O/H 10 10 10 10 10 EBITDA (10) (10) (10) 165 243EBIT (10) (10) (10) 127 187 Interest Expense - - 15 14 8 NPBT (9) (9) (25) 115 184 Tax - - (9) 40 64 Minorities - - - - - NET PROFIT (9) (9) (16) 75 120 Net Abnormal Gain/(Loss) - - - - - NET PROFIT After Abn’l (9) (9) (16) 75 120

CASH FLOW (A$m) 2012a 2013f 2014f 2015f 2016f

Net Profit (9) (9) (16) 75 120 + Working Capital Adj. - - - - - +Dep/Amort 0 0 0 38 56+ Provisions - - - - - + Tax Expense - - (9) 40 64 - Tax Paid - - (7) - 52 -DeferredRevenue - - - - - Operating Cashflow (9) (9) (18) 153 189 -Capex+Development - - 211 102 3-Exploration 20 10 10 10 10 -Assets Purchased - - - - - +Asset Sales - - - - - + Other - - - - - Investing Cashflow (20) (10) (221) (112) (13) +Equity Issues - 10 100 - - +LoanD’down/Receivable - - 200 - --Other (share buy back) 0 0 0 0 0-Loan Repayment - - - 59 62 -Dividends - - - - - Financing Cashflow - 10 300 (59) (62) Period Sur (Def) (19) 1 71 (8) 123 Cash Balance 14 15 86 78 202

BALANCE SHEET (A$m) 2012a 2013f 2014f 2015f 2016f

Assets Cash 14 15 86 78 202 Current Receivables 5 5 5 5 5 Other Current Assets 10 10 10 10 10 Non-Current Assets 50 50 480 606 500 Total Assets 79 80 366 636 770 Liabilities Borrowings - 154 160 105 44 Current Accounts Payable 5 5 5 5 5 Other Liabilities 15 15 15 15 15 Total Liabilities 20 174 180 125 64 Net Assets 59 (94) 186 511 705


Reserves Resources mt g/t koz mt g/t kozFekola (90%) 55.0 2.4 4,210 Total (koz) 0 4210 EV per oz 103

MARKET STATISTICS YEAR END 30 JUNE


Fekola gold project (risk adj 80%) 580 1.57 Hedging - - Corporate (68) (0.18)Fekola Exploration 150 0.41 Unpaid Capital 100 0.27 Opts (various) 16 0.04 Debt - -Cash 20 0.05 Total @ 10% nom 798 2.16

F/CAST PRODUCTION (A$m) 2012a 2013f 2014f 2015f 2016f

Fekola koz 0 0 0 190 276 Avg Cash Cost US$/oz n/a n/a n/a 604 583 Avg Total Cost US$/oz 636 544 645 806 787 Avg Spot Price US$/oz 1,673 1,668 1,625 1,550 1,500 Avg Price Rec’d US$/oz 1,673 1,668 1,625 1,550 1,500

RATIO ANALYSIS (A$m) 2012a 2013f 2014f 2015f 2016f

CF (A$m) (8) (9) (224) 53 201 CF / Sh (Ac/sh) (3) (3) (62) 14 50 CF Ratio (x) na na na 9.4 2.6 Earnings (A$m) (8) (9) (16) 77 129 EPS (Ac/sh) (3) (3) (4) 21 35 EPS Growth (%) na na na na 69%Earnings Ratio (x) na na na 6.4 3.8 E’prise Val. (A$m) 198 546 547 500 316 EV:EBITDA(x) na na na 3.0 1.2EV : EBIT (x) na na na 3.8 1.6 NetDebt/ND+Eq(%) na 309% 29% 5% naInterest Cover (x) na na na 4.4 70.4 EBIT Margin (%) na na na 44% 45%ROE (%) -15% 10% -9% 15% 17%ROA (%) -13% -13% -3% 20% 24% Div.(Ac/sh) - - - - -Div.payoutratio(x) - - - - -Div.Yield(%) 0% 0% 0% 0% 0%Div.Franking(%) 0% 0% 0% 0% 0%

DirectorsI. Middlemas Chr’nM.Connelly MD/CEOR.Behets NEDirP.Woodman NEDirA.Pismiris NEDir

ShareholdersDirectorsandAssociates 12.7%GCIC 7.7%Gryphon Minerals 6.6%

Share Price $1.32 A$/sh Issued Capital

FP Ord 268.2 m Opt (@$0.20/sh) 32.3 m Options(ex @ 0.83/sh) 20.0 m Total Dil. FPOrd 320.5 m Market Capitalisation $410 mEnterprise Value $390 mDebt $-mCash $20 mHedging Nil




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$/sh SIR 12 Month Price History


Sirius Resources NL Year end 30 June

Share Price $4.50 A$/sh

Price Target $5.00 A$/sh Shares on issue 263.6 m, diluted * Market Capitalisation 1,190 A$m Enterprise Value 1,130 A$m Debt Nil A$mCash $60m A$m Largest Shareholder Yandal 20.3%

Share Price Chart


More Bollinger Results


Investment Case:

We continue to be impressed with the Bollinger discovery with two new holes released yesterday. It appears that Bollinger might add significantly to the Nova development. We estimate say 2.5m tonnes of massive-breccia mineralisation within the area already drilled at Bollinger at a similar grade to Nova, and it remains open in all directions. The current market value could be supported if Bollinger were to say double in size from our estimate, leading to a larger than previously considered development scenario. The immediate future is for drilling to scope out the ultimate size of Bollinger. Obviously the outcome is highly speculative, and the possibility of more impressive results is good, which could yet drive the stock higher, but is not without some risk. The impending maiden Nova resource estimate is now less of a market driver since the discovery of Bollinger, but remains a vital technical milestone nonetheless. We also acknowledge that high quality assets like Nova-Bollinger will usually attract a market premium reflecting their expected low cost and long life characteristics. We now think our previous change in recommendation to Hold was premature and hereby upgrade to Speculative Buy.

Key Points:

Sirius has completed two new holes into the Bollinger-Conductor 6 zone, adjacent to Nova. The key intersections are:

• Hole262:32mofmassiveandbrecciasulphidefrom402m;

• Hole259:14mofmassiveandbrecciasulphidefrom450m.

These are excellent results once again.

These two holes are located south of the E-W line of prior drilling where massive-breccia sulphides were reported last week (Hole 258: 42m, Hole 254: 2.5m, Hole 167: 5m massive & 25m breccia-matrix).

There is now a roughly 150m x 200m zone of massive-breccia Ni-Cu mineralisation with an average thickness of ~19m defined by 5 drill holes. Assays are awaited on all drilling, however Sirius comments that the mineralisation appears identical to that at Nova. We estimate the massive-breccia combination might average 2.5-3.5% Ni & 1.0-1.5% Cu, similar to our estimate of the grade at Nova.

We estimate some 2.5m tonnes of massive-breccia sulphide ore could be contained within the area drilled at Bollinger so far, if continuity is proved. It is possible this could grow. In our view, if it were to say double in size to 5m tonnes, there would be potential to upscale the mine development considered at Nova by say 50% to 1.5mt pa. We have previously speculated a 1.0mt pa operation producing 23kt Ni & 11kt Cu.

Drilling is continuing to scope this zone out, including the large gravity anomalywhich is centred adjacent to the Bollinger zone. This anomaly may represent massive sulphides or rocks capable of hosting massive sulphides. The former would deliver yet further significant upside to shareholders.

The market has a high expectation of ongoing success at Bollinger. Sirius is valued by the market at $1.19b, implying the Fraser Range JV (100% basis incl Nova-Bollinger) valuation of $1.6b.

Sirius Resources NL(SIR $4.50) Speculative Buy, change from Hold


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Sirius Resources NL(SIR $4.40) Speculative Buy, change from Hold


Our preliminary modelling suggests this valuation could be supported by typical marketmultiples(sayEV:EBITDA3-5x)foraminedevelopmentsay50%largerthanwe have previously suggested. A development of this scale could produce ~US$400m ofEBITDA(previouslyUS$270m).

As mentioned above, Bollinger has the potential to grow in size such that a larger development could be considered. Our estimates are speculative and are subject to more detailed results including assay results.

Yet to be considered is the value of the low grade halo at Bollinger, with thick intersections of disseminated mineralisation noted (eg 90m of disseminated and stringer sulphides in Hole 262, lying above the massive sulphide zone). Assays results are required to value the low grade. We assume the market excitement is not driven by the large low grade aspect of the discovery.

The maiden resource at Nova remains due in late March’13. We continue to expect 8-10mt grading 2.5%Ni and 1.2% Cu.

Sirius Resources ASX/Media Announcement 3

Figure 1. Photo of massive and breccia sulphides from SFRD0262.

Figure 2. Plan projection showing new drilling at conductor 6 the southerly expression of the Bollinger zone. Figure: Plan projection showing new drilling at conductor 6 - the Southerly expression of the Bollinger zone.


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$/sh SIR 12 Month Price History

Sirius Resources NL Year end 30 June


Price Target 3.60 A$/sh Shares on issue 264 m, diluted * Market Capitalisation 1072 A$m Enterprise Value 991 A$m Debt - A$mCash 60 A$m Largest Shareholder Yandal Inv 20.3%

Share Price Chart

Sirius Resources NL(SIR $4.06) Hold, downgrade from Buy


Bollinger Update


Investment Case:

Bollinger is shaping up as an outstanding Ni discovery. We are excited to see this deposit unfold.

We have upgraded our valuation from $3.20/sh to $3.60/sh, in effect recognizing $400m of “exploration” value in Sirius inclusive of Bollinger.

Nevertheless we downgrade Sirius to a HOLD. The geological risk relative to theimplied value add in recent days is not to be ignored. Investors should wait for either more information to reduce risk, or for the stock to pull back to nearer our $3.60/sh valuation. We recall the market was overly excited in the early discovery of Nova, with the stock eventually settling at about 65% of its peak valuation.

Key Points:

Sirius has released four new visual drill hole results from the newly discovered BollingerzonewhichisnowknowntoconnectwiththeEasternBrecciaZoneofNova.

• Hole258,42mofmassiveandbrecciasulphides(Eurozest+2.5%Ni)from432mdepth, located 60m west of discovery hole.

• Hole 257, 30m of disseminated to stringer sulphides (Euro zest ~1%Ni) from431m depth.

• Hole256,32mofstringerandbrecciasulphides(Eurozest.1-2%Ni)from383mdepth.

• Hole 254, 21mof stringer anddisseminated sulphides (Euro zest~1%Ni) and2.5m massive sulphides (Euro zest. +3%Ni) from 403m depth.

A new EM anomaly, Conductor 6, as strong as Nova EM anomaly, is identified immediately south of the Bollinger Zone. It is possible this joins Bollinger andConductor 5 further to the north.

The Gravity anomaly margins coincident with Bollinger are not yet understood. The cause of the anomaly may be either dense barren rock or a large sulphide accumulation. In our view the latter, while preferable, is probably unlikely to be this large and simplistic.

Sirius has shown it can drill any new target expediently. Six rigs are now scoping out thesizeofBollinger,withproductivityof8–10holesperweek.With$60mcash,anda $3m/mth burn rate, Sirius has ample funding to explore all targets aggressively.

Until a week ago Sirius was valued by the market at $550m ($2.10/sh) for its 70% share of the Nova deposit, including $60m cash. Our estimate for Nova resources is 8-10mt grading 2.5% Ni and 1.2% Cu. In our view the market was ignoring any value in the exploration upside, which we estimated at $200m (SIR share).

Since then 2 key drill holes (hole 167 & hole 258) have added $500m market value, or $700m on 100% basis.

Our view is that the market may be right in due course, however with just 2 key drill holes into Bollinger, we think this is too big a leap of faith.



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Sirius Resources NL(SIR $4.06) Hold, downgrade from Buy

We are confident that Sirius will continue to find more Nickel at Bollinger. The Bollinger intersections are as thick as Nova but it is still possible that Bollinger turns out to be either smaller, more geologically complex, lower grade, or a combination of all. At this stage we do not rate Bollinger ahead of Nova.


Figure 1. Cross section on line 700N showing Nova (left), feeder zone (centre) and Bollinger (right) drilling.

Figure 2. Photo of massive and breccia sulphides from SFRD0258, located 60 metres west of the Bollinger discovery hole.

Figure 1. Cross section on line 700N showing Nova (left), feeder zone (centre) and Bollinger (right) drilling.


Figure 3. Plan projection showing new drilling at Bollinger and the feeder zone, the location of conductor 6, and the latest assayed intersections of Nova infill holes.

Figure 4. Schematic diagram of Nova (left), Bollinger (right) and the interconnecting feeder zone (centre).

Figure 2. Plan showing Nova, Bollinger and the feeder zone.

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$/sh BYL 12 Month Price History


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Analyst: Gavin Allen

Brierty Ltd Year end 30 June

Share Price 0.45 A$/sh Price Target (PER) 0.58 A$/shValuation(DCF) 0.65 A$/shWACC 13.5% Terminal Growth 2.0% Shares on issue 115.0 m, dilutedMarket Capitalisation 49.5 A$mEnterprise Value 72.0 A$mDebt(Dec2012) 39.3 A$mCash(Dec2012) 16.7 A$m


Revenue (A$m) 252.6 290.0 290.0EBITDA(A$m) 27.3 29.6 29.0EBIT (A$m) 16.9 17.9 17.0Reported NPAT (A$m) 9.4 10.3 10.4Normalised NPAT (A$m) 9.4 10.3 10.4 Gross Cashflow (A$m) 22.9 22.0 22.3Capex (A$m) -22.9 -21.1 -11.1Op. Free Cashflow (A$m) -0.7 1.6 14.2 Revenue Growth (%) 34% 15% 0%EBITDAGrowth(%) 146% 8% -2%Norm. NPAT Growth (%) 13366% 10% 0% Normalised EPS (Ac) 8.21 9.00 9.03Norm. EPS growth (%) 12780% 10% 0%PER (x) 5.5 5.0 5.0EV:EBITDA(x) 2.6 2.4 2.5EV:EBIT (x) 4.3 4.0 4.2 DPS(Ac) 2.75 3.0 3.4DividendYield(%) 6.1% 6.7% 7.6% NetDebt(A$m) 25.3 27.3 16.9NetDebt:Equity(%) 56% 52% 52%Interest Cover (x) 4.9 5.7 7.7

Share Price Chart

Analyst: Gavin AllenDate: 11 March 2013

Contract Win


Investment Case:

Brierty has won a $15m contract to build 60 kilometres of road for the Abydos Mine for Atlas Iron, valued at $15m. The works will commence immediately and finish by June 2013. The contract goes a long way to filling in remaining holes in our 2013 revenue forecasts and BYL is now a good chance to hit our full year NPAT forecast of $10.3m. With a market capitalization of $50m, BYL trades on a very undemanding PE of 5x, and this is particularly the case given the recent run in the mining services sector. We maintain our 12 month price target of $0.58

Key Points:

• BYLhaswona$15mcivilconstructioncontractwhichgoesalongwaytoshoringup our 2013 forecasts (good execution assumed).

• Whilemore work is required tobewon to supportour2014 forecasts, at5xearnings BYL offers good leverage to success on a fair share of available opportunities.

• BYLhasexcessmininggear,readytobeputtowork,andsuccessatgettingthisgear to work for satisfactory return must be a priority for BYL, and could act as genuine catalyst.

• OpportunitiesforthegearincludeMtWeberforAtlasIronandagoldminingproject for RNI at Grosvenor.

• For2014 furthercivilwork is required tobewonandwhile theenvironmentis competitive, opportunities exist, and BYL is more leveraged than most to comparatively small contract wins.

• Webelieve theywillwina fair shareand if this is thecase,BYLcangenerategenuine share price traction off a low base.

• InthemeantimethestocktradesonaPEof5,yieldof6.7%fullyfrankedandtrades consistent to NTA around $0.45.

Investment thesis:

• Atafundamentallevel,at5xearnings,BYLispricedtoseelongtermearningsreduce substantially in 2014.

• It isalso likely thestocktradesoutsidetheradarsofmostof the institutionalmarket, and lacks relevancy, which may also explain why it trades so cheaply.

• ThedownsideislimitedsomewhatbyNTAofthestockat$0.45andthedeepvalue on which is trades.

Brierty Ltd(BYL $0.45) Buy


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• Wecalculatevalueasfollows:

• IfBYLcansustainearningsatthelevelsweareforecastingfor2013averymodestcapitalization of those earnings generates indicative value of $0.58.

• This is supported by ourDCF calculation coming out at $0.65 (WACC 13.5%,terminal growth 2%)

• To achievebuy in that these earnings are sustainable BYLdoes need towinsome more work, and this is a major potential catalyst for the stock for which there is opportunity but no guarantee.

• If it can do this, the debt levels will continue to decrease, the payout ratiowill increase and once this happens, yield alone will see the stock trade up (indicatively it is currently yielding 6.7% paying out 32% of earnings)

• ThereisclearlyanelementofspeculationtoBYLhoweveronbalanceweretainour buy, backing BYL management to win the work required to fill the order book.

2013 F ($m)EBIT 17.9 Target EV/EBIT multiple 5.0 Enterpise value 89.7 Netdebt(actualDec2012) -22.5Market value 67.2 Shares issued (diluted) 115.0 Target price 0.58 EPS 0.09 Target PE 7.00 Target share price $0.63


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PERFORMANCE RATIOS 11A 12A 13F 14F 15F

Growth & Margins Revenue Growth 37% 34% 15% 0% 5%EBITDAGrowth -31% 146% 8% -2% 5%EBIT Growth -65% 447% 6% -5% 11%Normalized Net Profit Growth -99% 13366% 10% 0% 20%EBITDAmargin 6% 11% 10% 10% 10%EBIT margin 2% 7% 6% 6% 6%Normalized net profit margin 0% 4% 4% 4% 4%Effective tax rate 60% 30% 30% 30% 30%

LiquidityCapex/depreciation (x) 1.7 2.2 1.8 0.9 1.0Current ratio (x) 1.0 1.1 1.3 1.5 1.6Quick ratio (x) 1.0 1.0 1.8 2.4 2.6Receivable days 47 51 52 51 53Inventory days 42 37 26 13 7Payable days 52 61 52 38 37

Risk MeasuresDividendCover(x) 3.7 3.1 3.1 2.8 2.8Payout ratio (%) 27% 32% 32% 36% 36%Net interest cover (x) 1.1 4.9 5.7 7.7 17.5Net debt/equity (%) 66% 56% 52% 29% 15%

ReturnsReturn on average capital employed (%) 6% 23% 18% 15% 13%Return on invested capital (%) 0% 13% 12% 12% 14%WACC (%) Return on assets (%) 2% 8% 9% 8% 9%Return on average equity (%) 0% 23% 21% 19% 20%

SHARE DATA/VALUATION 11A 12A 13F 14F 15F

Share DataIssued shares (m) 110.0 110.0 110.0 110.0 110.0Weighted ave shares (m) 110.0 110.0 110.0 110.0 110.0Fully diluted shares (m) 110.0 115.0 115.0 115.0 115.0Basic EPS (A$) 0.00 0.09 0.09 0.09 0.11YoY change (%) -99% 13366% 10% 0% 20%Fully diluted EPS (A$) 0.00 0.08 0.09 0.09 0.11YoY change (%) -99% 12780% 10% 0% 20%Fully diluted normalised EPS (A$) 0.001 0.082 0.090 0.090 0.108YoY change (%) -99% 12780% 10% 0% 20%Dividend/share(A$) 0.00 0.027 0.030 0.034 0.041Franking (%) 100% 100% 100% 100% 100%Gross cashflow/share (A$) 0.07 0.21 0.20 0.20 0.22NBV/share (A$) 0.34 0.41 0.48 0.54 0.61NTA/Share (A$) 0.34 0.41 0.48 0.54 0.61

ValuationPER (Basic) (x) 706.3 5.2 4.8 4.8 4.0PER (Fully diluted) (x) 706.3 5.5 5.0 5.0 4.2PER (Fully diluted, normalized) (x) 706.3 5.5 5.0 5.0 4.2P/CFPS (x) 6.0 2.2 2.3 2.2 2.1Price/NBV (x) 1.3 1.1 0.9 0.8 0.7Price/NTA (x) 1.3 1.1 0.9 0.8 0.7DividendYield(%) 0.0% 6.1% 6.7% 7.6% 9.1%Fully dil normalized 3 yr EPS CAGR (%) PEG ratio (x) EV/EBITDA(x) 6.5 2.6 2.4 2.5 2.4EV/EBIT (x) 23.3 4.3 4.0 4.2 3.8EV/Revenue (x) 0.4 0.3 0.2 0.2 0.2

OTHER INFORMATION

Estimated free float 50%12-mth High/Low (A$/sh) 0.45 - 0.22Average daily volume (A$m) 0.20ASX Code BYL

COMPANY DESCRIPTION

Brierty is a civil constructor in Western Australia. It manages and delivers civil construction projects for clients in transportation, mining and urban development. Brierty specialises in pavements for large infrastructure projects including highways and roads, airports, car parks and pathways. It also undertakes a wide range of civil infrastructure projects for mining including stripping overburden, plant site works, haul roads, tailing dams and other storage facilities. Brierty has completed selective ore and waste mining contracts and will target further work in the mining sector.

FINANCIAL STATEMENTS YEAR END 30 JUNE

Income Statement 11A 12A 13F 14F 15FRevenue 188.0 252.6 290.0 290.0 304.5Other 0.0 0.0 0.0 0.0 0.0Revenue 188.0 252.6 290.0 290.0 304.5Operating costs -176.9 -225.3 -260.4 -261.0 -274.1EBITDA 11.1 27.3 29.6 29.0 30.5Depreciation -8.0 -10.4 -11.6 -12.0 -11.6Amortisation 0.0 0.0 0.0 0.0 0.0EBIT 3.1 16.9 17.9 17.0 18.9Net Interest income/(expense) -2.9 -3.4 -3.2 -2.2 -1.1Associates 0.0 0.0 0.0 0.0 0.0Other income/(expense) 0.0 0.0 0.0 0.0 0.0Abnormal items (pretax) 0.0 0.0 0.0 0.0 0.0EBT 0.2 13.5 14.8 14.8 17.8Tax expense -0.1 -4.0 -4.4 -4.5 -5.3Minority interest 0.0 0.0 0.0 0.0 0.0PreferenceDividends 0.0 0.0 0.0 0.0 0.0Reported Earnings 0.1 9.4 10.3 10.4 12.4Dividends 0.0 -3.0 -3.3 -3.7 -4.5Adjustments (one off) 0.0 0.0 0.0 0.0 0.0Retained earnings 0.1 6.4 7.0 6.6 8.0Normalized Net Profit 0.1 9.4 10.3 10.4 12.4FullyDilutedNetProfit 0.1 9.4 10.3 10.4 12.4

Cash flow (A$m) 11A 12A 13F 14F 15F

Pretax Profit 0.2 13.5 14.8 14.8 17.8+Depreciation 8.0 10.4 11.6 12.0 11.6- Tax Paid -0.1 -1.0 -4.4 -4.5 -5.3+ inc (- dec) in provisions 0.0 0.0 0.0 0.0 0.0- Profit/+ loss on disposal 0.0 0.0 0.0 0.0 0.0+/- Other 0.2 0.0 0.0 0.0 0.0Gross Cashflow 8.2 22.9 22.0 22.3 24.0- Capital expenditure -13.5 -22.9 -21.1 -11.1 -11.6+/- Changes in working capital -1.0 -0.7 0.7 3.0 -1.1Operating Free Cashflow -6.3 -0.7 1.6 14.2 11.3+/- Investments 0.0 0.0 0.0 0.0 0.0-Dividends -1.7 -1.1 -3.3 -3.7 -4.5+ Proceeds from equiy raised 0.0 0.0 0.0 0.0 0.0- Acquisition 0.0 0.0 0.0 0.0 0.0+Disposal 0.0 1.0 0.0 0.0 0.0+/- Minority interests 0.0 0.0 0.0 0.0 0.0+/- Other -1.1 0.0 0.0 0.0 0.0Net cashflow -9.0 -0.8 -1.7 10.5 6.8NetCash/(Debt)beginningofperiod -15.8 -24.8 -25.6 -27.3 -16.9NetCash/(Debt)atendofperiod -24.8 -25.6 -27.3 -16.9 -10.0

Balance Sheet ($m) 11A 12A 13F 14F 15F

Cash 3.6 2.5 10.7 21.1 28.0Receivables 24.9 45.1 37.7 43.5 45.7Inventories 24.2 26.9 14.5 5.8 6.1Other 1.2 1.2 1.9 1.9 1.9Current Assets 53.9 75.7 64.8 72.3 81.6Other Financial Assets 4.5 1.2 1.2 1.2 1.2Receivables 1.6 0.9 0.9 0.9 0.9Property/Plant/Equipment 41.5 54.0 63.5 62.6 62.6Intangibles 0.0 0.0 0.0 0.0 0.0Other 0.0 0.0 0.0 0.0 0.0Deferredtaxassets 0.1 1.0 1.0 1.0 1.0Non Current Assets 47.7 57.1 66.5 65.7 65.7Total Assets 101.6 132.8 131.3 138.0 147.3Payables -28.4 -47.3 -27.0 -27.1 -28.4Interest bearing liabilities -17.5 -8.0 -8.0 -8.0 -8.0Current tax liabilties 0.0 -4.8 -4.8 -4.8 -4.8Provisions -7.8 -6.9 -8.5 -8.5 -8.5Current Liabilities -53.7 -67.0 -48.3 -48.4 -49.7Payables 0.0 0.0 0.0 0.0 0.0DeferredTax 0.0 0.0 0.0 0.0 0.0Interest bearing liabilities -10.5 -19.8 -30.0 -30.0 -30.0Provisions -0.5 -0.5 -0.5 -0.5 -0.5Non Current Liabilities -11.0 -20.3 -30.5 -30.5 -30.5Total Liabilities -64.7 -87.3 -78.8 -78.9 -80.2Net Assets 36.9 45.5 52.5 59.2 67.1Contributed equity 29.2 29.2 29.2 29.2 29.2Reserves 0.0 0.2 0.2 0.2 0.2Retained profits 7.8 16.1 23.1 29.8 37.7Minority Interests 0.0 0.0 0.0 0.0 0.0Total equity 37.0 45.5 52.5 59.2 67.1




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$/sh FRI 12 Month Price History


Finbar Group Ltd Year end 30 June

Share Price 1.35 A$/sh Price Target (PER) 1.70 A$/shValuation(DCF) 1.65 A$/shWACC 11.5% Terminal Growth 6.0% Shares on issue 214.2 m, dilutedMarket Capitalisation 289.2 A$mEnterprise Value 374.1 A$mDebt 154.4 A$mCash 36.1 A$m


Revenue (A$m) 112.3 190.1 211.7EBITDA(A$m) 38.2 49.1 54.0EBIT (A$m) 38.0 49.0 53.9Reported NPAT (A$m) 28.3 32.4 35.8Normalised NPAT (A$m) 20.2 30.9 35.8 Gross Cashflow (A$m) 9.2 34.5 38.0Capex (A$m) -3.9 -0.5 -0.5Op. Free Cashflow (A$m) -18.3 8.8 16.1 Revenue Growth (%) 72% 91% 10%EBITDAGrowth(%) 45% 29% 10%Norm. NPAT Growth (%) 38% 53% 16% Normalised EPS (Ac) 9.43 14.41 16.72Norm. EPS growth (%) 20% 53% 16%PER (x) 14.3 9.4 8.1EV:EBITDA(x) 9.8 7.6 6.9EV:EBIT (x) 9.9 7.6 6.9 DPS(Ac) 9.00 9.00 9.50DividendYield(%) 6.7% 6.7% 7.0% Net Cash (A$m) -85.0 -88.0 -83.7NetDebt:Equity(%) 45% 42% 35%Interest Cover (x) na na na

Share Price Chart

Analyst: Gavin AllenDate: 28 February 2013

1H 2013 Results


Investment Case:

Finbar has released a record first half of $14m NPAT from revenues of $62m, driven primarilyfromsettlementsachievedonFRI’sfirstforayintoKarratha,PelagoWest.Inthe second half projects Adagio and Lime suggest another strong half and FRI has re-iterated the expectation they will exceed the $28m achieved in 2012. We have no reason to amend our forecasts looking for $32.4m in full year 2013. As mentioned in previous research, in our view 2014 is also very bankable, with much of the product we are looking at to drive these earnings presold and under construction. We maintain our Buy recommendation with a 12 month share price expectation increasing to $1.70

Key Points:

• FRIhasproducedNPATforthehalfof$14m

• Guidancehasbeenre-iteratedfor2013ofNPATbeyond$28mandwehavenoreason to change our $32m forecast.

• A3.5cinterimdividendwasdeclared.Wearelookingforafurther5.5cfullyearimplying current fully franked yield of 6.6%.

• The swing factor for 2013will be sales and settlementon the luxuryAdagioproject for which practical completion is expected in March 2013. $103m of the total $172m value of the project is presold, representing 67 of a total of 115 units.

• TohitournumbersFRIneedtosellafurther8orsoAdagioapartments,whichrepresents some risk to our numbers in this high end product. Upside is clearly available should FRI do better than that.

• For2014,wecontinue to look for furthergrowthdrivenbyprimarilypresoldproduct in projects currently coming out of the ground. Consequently, we have a high degree of confidence in 2014 earnings.

• Overall FRI has a strong track record, generates solid yield and offers goodexposure to the improving residential property market in WA.

Finbar Group Ltd(FRI $1.35) Buy


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Analysis:

We provide below our analysis of full year revenue expectations for FRI (FRI share).

Feb 2013 required% to be sold

2013 2014 2015 2016 presold for f/castConstruction commenced ($m) ($m) ($m) ($m)Fairlanes Residential 9 - - - 100% 100%Lime 25 - - - 91% 100%Adagio 56 30 - - 58% 65%Pelago West 86 - - - 82% 92%Knightsgate - 7 - - 100% 100%St Marks - 46 20 - 96% 70%AU - 35 13 - 91% 73%Ecco - 18 5 - 81% 78%Construction not commenced Dianella - - 25 - Concerto and Harmony - - 20 60 Toccata - - 20 40 The Springs - - 22 42 Pelago East - 59 80 - 33% 43%Revenue forecast 176 196 206 144 Revenues per the above w ill not equate to reported revenues due to the nature of equity accounted developmentsThis does not impact our view of reported profits

Revenue value (FRI share)

• As the above indicates, in order to hit our forecasts FRI need to sell an additional 7% more of Adagio ($12m worth or approx. 8 apartments) and a further 10% of Pelago West (or $8.5m worth or approx. 12 apartments).

• This is not a stretch by any means in the current market, although the high end product such as Adagio is always harder to shift.

• Ironically, there is perhaps less risk to our 2014 numbers (provided the remainder of Adagio sells in the normal course over the next 16 months), with most of 2014 product already sufficiently presold.

Investment Thesis:

• FRI trades on a forward looking 2013 PE of 9.4x and fully franked yield of 6.6% fully franked.

• On 2014 numbers FRI trades on a PE of 8.1x, based on arguably more bankable forecasts.

• It is our view, that as sentiment has improved toward the sector, property developers are beginning to once again trade on earnings.

• The sector has historically traded in a band of between 10 and 12x forward earnings.

• Post this half, and with ultimate delivery of the full year 2013 result, focus will turn to 2014 prospects, forecasts that we have much confidence in.

• The capitalisation of these earnings at 10x equates to $1.70 and we set this as our 12 month price target.

• We believe this is a reasonable expectation for this stock with delivery of earnings per our forecasts.

• Other catalysts include news flow from around April 2013 in relation to the sale ratesatAdagio–asoliduptickwiththerecommencementofmarketinginMarch2013 could generate 2013 earnings surprise. A poor response would see some small down side risk to our forecasts.


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Growth & Margins Revenue Growth -65% 72% 91% 10% 5%EBITDAGrowth 10% 45% 29% 10% 5%EBIT Growth 10% 44% 29% 10% 5%Normalized Net Profit Growth -35.2% 38.4% 52.9% 16.0% 5.5%EBITDAmargin 37.9% 34.0% 25.8% 25.5% 25.7%EBIT margin 37.9% 33.8% 25.8% 25.4% 25.6%Normalized net profit margin 21.0% 18.0% 16.2% 16.9% 17.1%Effective tax rate 19% 34% 30% 30% 30%

LiquidityCapex/depreciation (x) Current ratio (x) 1.6 1.8 1.5 1.7 2.0Quick ratio (x) 8.7 3.2 3.3 3.0 1.7Receivable days 12 15 17 15 16Payable days 1 2 7 9 10

Risk MeasuresDividendCover(x) n/a n/a n/a n/a n/aPayout ratio (%) 42% 42% 36% 33% 31%Net interest cover (x) na na na na naNet debt/equity (%) 19% 45% 42% 35% 32%

ReturnsReturn on avg capital employed (%) 18% 21% 24% 23% 22%WACC (%) Return on assets (%) 11% 12% 14% 14% 13%Return on average equity (%) 17% 16% 16% 16% 15%


Share DataIssued shares (m) 185.0 214.2 214.2 214.2 214.2Weighted ave shares (m) 185.0 214.2 214.2 214.2 214.2Fully diluted shares (m) 185.0 214.2 214.2 214.2 214.2Basic EPS (A$) 0.13 0.13 0.15 0.17 0.18YoY change (%) -19% 1% 15% 11% 6%Fully diluted EPS (A$) 0.08 0.09 0.14 0.17 0.18YoY change (%) -49% 20% 53% 16% 6%Fully diluted normalised EPS (A$) 0.08 0.09 0.144 0.17 0.18YoY change (%) -49% 20% 53% 16% 6%Dividend/share(A$) 0.085 0.090 0.090 0.095 0.105Franking (%) 100% 100% 100% 100% 100%Gross cashflow/share (A$) 0.14 0.04 0.16 0.18 0.19NBV/share (A$) 0.94 0.88 0.99 1.11 1.24NTA/Share (A$) 0.94 0.88 0.99 1.11 1.24

ValuationPER (Basic) (x) 10.3 10.2 8.9 8.1 7.6PER (Fully diluted) (x) 17.1 14.3 9.4 8.1 7.6PER (Fully diluted, normalized) (x) 17.1 14.3 9.4 8.1 7.6P/CFPS (x) 9.7 31.6 8.4 7.6 7.2Price/NBV (x) 1.4 1.5 1.4 1.2 1.1Price/NTA (x) 1.4 1.5 1.4 1.2 1.1DividendYield(%) 6.3% 6.7% 6.7% 7.0% 7.8%Fully dil normalized 3 yr EPS Cagr (%) n/a n/a n/a n/a n/aPEG ratio (x) n/a n/a n/a n/a n/aEV 322.3 374.1 377.1 372.8 399.4 EV/EBITDA(x) 14.2 9.8 7.6 6.9 6.6EV/EBIT (x) 14.2 9.9 7.6 6.9 6.6EV/Revenue (x) 5.4 3.3 2.0 1.8 1.7

OTHER INFORMATION

12-mth High/Low (A$/sh) $1.20/$0.83Average daily volume (A$m) 0.2ASX Code FRINext result Aug 2013

COMPANY DESCRIPTION

FRI is a WA based property developer


Income Statement 11A 12A 13F 14F 15FSales 54.1 92.9 177.0 195.6 206.1Other 15.5 19.4 13.0 16.2 15.6Revenue 69.6 112.3 190.1 211.7 221.7Operating costs -43.2 -74.1 -141.0 -157.7 -164.8EBITDA 26.4 38.2 49.1 54.0 56.9Depreciation 0.0 -0.2 -0.2 -0.2 -0.2Other non cash 0.0 0.0 0.0 0.0 0.0EBIT 26.4 38.0 49.0 53.9 56.7Net Interest income/(expense) 2.8 0.1 0.1 0.1 0.1Associates 5.8 1.0 0.0 0.0 0.0Other income/(expense) 0.0 0.0 0.0 0.0 0.0Abnormal items (pretax) 0.0 0.0 0.0 0.0 0.0EBT 35.0 39.1 49.1 54.0 56.9Tax expense -6.7 -13.3 -14.7 -16.2 -17.1Discontinuedoperations 0.0 0.0 0.0 0.0 0.0Minority interest -4.2 2.5 -2.0 -2.0 -2.0Reported Earnings 24.1 28.3 32.4 35.8 37.8Dividends -10.2 -11.8 -11.8 -11.8 -11.8Adjustments (one off) 0.0 0.0 0.0 0.0 0.0Retained earnings 14.0 16.5 20.6 24.0 26.0Net Profit (ex valuation) 14.6 20.2 30.9 35.8 37.8


Pretax Profit 35.0 39.1 49.1 54.0 56.9+Depreciation 0.0 0.2 0.2 0.2 0.2- Tax Paid -10.5 -5.1 -14.7 -16.2 -17.1+ inc (- dec) in provisions 0.0 0.0 0.0 0.0 0.0- Profit/+ loss on disposal 0.0 -14.0 0.0 0.0 0.0+/- Other 1.2 -11.0 0.0 0.0 0.0Gross Cashflow 25.7 9.2 34.5 38.0 40.0- Capital expenditure -3.4 -3.9 -0.5 -0.5 -0.5+/- Changes in working capital 0.7 -23.5 -25.2 -21.4 -29.3Operating Free Cashflow 23.0 -18.3 8.8 16.1 10.2+/- Investments 0.0 6.3 0.0 0.0 0.0-Dividends -13.3 -13.3 -11.8 -11.8 -11.8+ Proceeds from equity raised 47.5 0.0 0.0 0.0 0.0+ Acquisition -56.0 0.0 0.0 0.0 0.0+/- Minority interests 0.0 0.0 0.0 0.0 0.0+/- Other 1.5 -26.7 0.0 0.0 0.0Net cashflow 2.6 -52.0 -3.0 4.3 -1.6Cash at beginning of period -35.6 -33.0 -85.0 -88.0 -83.7Net debt at end of period -33.0 -85.0 -88.0 -83.7 -85.2


Cash 61.3 31.7 55.5 54.8 28.3Receivables 8.3 15.4 10.6 12.3 12.3Inventories 2.9 104.7 109.2 122.0 140.1Other 8.4 1.0 1.0 1.0 1.0Current Assets 80.9 152.8 176.4 190.1 181.7Receivables 12.2 9.0 6.2 7.2 7.2Inventories 115.0 39.3 72.8 81.3 93.4Property/Plant/Equipment 3.9 15.2 15.5 15.9 16.2Equity Accounted Investments 0.7 0.5 0.5 0.5 0.5Investment Property 68.0 113.1 113.1 113.1 113.1Deferredtaxassets 0.0 2.4 2.4 2.4 2.4Other 0.0 0.0 0.0 0.0 0.0Non Current Assets 199.8 179.5 210.6 220.4 232.8Total Assets 280.7 332.3 386.9 410.5 414.6Payables -8.0 -14.6 -19.8 -22.3 -23.4Interest bearing liabilities -39.2 -63.2 -90.0 -85.0 -60.0Current tax payable -3.5 -6.8 -6.8 -6.8 -6.8Provisions 0.0 0.0 0.0 0.0 0.0Current Liabilities -50.7 -84.6 -116.6 -114.1 -90.2Payables 0.0 0.0 0.0 0.0 0.0Interest bearing liabilities -55.2 -53.5 -53.5 -53.5 -53.5Tax liabilties -0.3 -5.8 -5.8 -5.8 -5.8Provisions -0.1 0.0 0.0 0.0 0.0Non Current Liabilities -55.6 -59.3 -59.3 -59.3 -59.3Total Liabilities -106.2 -143.9 -175.9 -173.4 -149.5Net Assets 174.4 188.4 211.0 237.1 265.1Contributed equity 128.2 132.7 132.7 132.7 132.7Reserves 2.9 1.5 1.5 1.5 1.5Retained profits 43.3 51.1 73.7 99.7 127.8Minority Interests 0.0 3.1 3.1 3.1 3.1Total equity 174.4 188.4 211.0 237.0 265.1

$2.50

$3.00

$3.50

$4.00

$4.50

$5.00

$5.50


$/sh IIN 12 Month Price History


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From time to time Euroz may act as the buy-back broker with respect to an on-market buy-back that is being conducted by the company that is the subject of this researchreport.Duringtheperiodwhensuchabuy-backis being conducted, if you wish to sell and speak to your Euroz adviser about this issue, you will be informed that that Euroz is acting for the company that is undertaking the buy-back and that your adviser is therefore unable to give you advice in respect of the proposed sale.


iiNet Ltd Year end 30 June

Share Price 4.85 A$/sh Price Target (PER) 5.49 A$/shValuation(DCF) 5.87 A$/shWACC 11.4% Terminal Growth 2.0% Shares on issue 161.2 m, dilutedMarket Capitalisation 779.1 A$mEnterprise Value 980.1 A$mDebt(Dec2012) 223.6 A$mCash(Dec2012) 22.0 A$m


Revenue (A$m) 839.2 947.2 956.7EBITDA(A$m) 145.1 189.8 187.8EBIT (A$m) 79.6 107.0 101.2Reported NPAT (A$m) 37.1 59.4 58.0Normalised NPAT (A$m) 43.6 53.8 58.0 Gross Cashflow (A$m) 122.3 142.2 144.6Capex (A$m) 46.0 50.0 41.0Op. Free Cashflow (A$m) 61.3 84.6 104.6 Revenue Growth (%) 19% 14% 1%EBITDAGrowth(%) 45% 31% -1%Norm. NPAT Growth (%) 12% 23% 8% Normalised EPS (Ac) 27.87 33.36 35.97Norm. EPS growth (%) 8% 16% 7%PER (x) 17.4 14.5 13.5EV:EBITDA(x) 6.8 5.2 5.2EV:EBIT (x) 12.3 9.2 9.7 DPS(Ac) 14.00 18.00 20.00DividendYield(%) 2.9% 3.7% 4.1% NetDebt(A$m) 221.6 181.2 123.9NetDebt:Equity(%) 77% 56% 35%Interest Cover (x) 4.5 4.8 5.5

Share Price Chart

Disclosure

Analyst: 13 March 2013Date: Gavin Allen

ACCC Draft Final Access Determination WDSL


Investment Case:

TheACCC has recently released aDraft Final AccessDetermination setting pricesfor wholesale access to Telstra ports. The determination reduces by approx. $1 per subscriber per month the amount IIN pays Telstra for access to Telstra ports. This gain is offset by an increase in the regulated backhaul price such that IIN makes a net approx. $2.2m per annum gain all things equal (our calculation). IIN will be disappointed in the determination as the rate set bears no relation to the cost of running IIN’s own network, however does not impact our numbers overall and we retain our Buy recommendation with a $5.49 PT.

Key Points:

• Thedeterminationsetsthezone1portpriceat$24.56,downfrom$25.40andthe zone 2/3 port price to $29.81, down from $30.80.

• WeestimatethedecreaseincostassociatedwithIIN’s280,000offnetsubscribersis circa $3m per annum.

• WeestimatetheincreaseinbackhaulcostsassociatedwithanincreasedAGVCprice (per mbps) to be approx. $800,000.

• Consequentlyweseeanetsavingofapprox.$2.2mperannumallthingequal.

• IIN will have been disappointed in this as the methodology used was a“cost-based approach”, which given the significantly lower costs IIN incur in operating their own network, might have implied a lower wholesale price in this determination.

• Overall,however,wehavenoreasontochangeourforecastsatthisstage.

Analysis:

• IIN operates in a competitive market and saw net churn away during the half just gone.

• Notwithstanding this, there remain opportunities for the business to continue to grow earnings going forward including:

o Further addition of services to existing customers

o Additional costs out of the business

o Continued growth in the business segment

o Impact of renewed marketing campaign.

o Leveraging the NBN to provide services to new customer segments

iiNet Ltd(IIN $4.85) Buy



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iiNet Ltd(IIN $4.85) Buy• Just how all of the above will play out is difficult to articulate, however regardless,

the business as is generates significant free cashflow, and if it were to prove ex growth we derive value as follows:

Mature 2013FOperating cashflow* 164.0 less tax (adjusted for depreciation) -40.2 123.8 Less Capital Expenditure (ex growth) -30.0 FCF 93.8 Shares issued 161.2 FCF per share 0.58 Share price 4.85 Price/ Free Cashflow 8.3 Cashflow yield 12.0% FCF per share 0.58 WACC 11.36%Terminal growth 0.00%Value per share (ex growth) 5.70 * forecast 2013 underlying EBITDA less finance lease payments

• The cash flows associated with our 2013 forecasts, assumed as a mature business into perpetuity drives a free cashflow yield of 11.6% and value per share of $5.70.

• Should IIN prove ex growth we see sufficient value in current cashflows to maintain our Buy recommendation.

• This is particularly the case as, notwithstanding subscribers decreasing overall during the half just gone, there are plenty of opportunities for IIN to continue to grow in 2014 as discussed above.

• In the meantime we set our 12 month price target at $5.49 as calculated below:

2013 F/castUnderlyingEBITDA($) 180.8Target EV multiple 6.0 Target Enterprise value ($m) 1,085.0 Netcash(debt)Dec2013’($m) -201.0Market value ($m) 884.0 Shares issued ($m) fully diluted 161.0 Indicative value ($) 5.49

• Our6xEV/EBITDAtargetisconsistentwithhowthissectorhastradedinthepast.

• Share price traction beyond this probably needs a further demonstration of growth beyond 2013.



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Growth & Margins Revenue Growth 48% 19% 14% 1% 1%EBITDAGrowth 23% 45% 31% -1% 0%EBIT Growth 24% 40% 34% -5% 3%Normalized Net Profit Growth 22% 12% 23% 8% 10%EBITDAmargin 14% 17% 20% 20% 19%EBIT margin 8% 9% 11% 11% 11%Normalized net profit margin 6% 5% 6% 6% 7%Effective tax rate 31% 40% 30% 30% 30%

LiquidityCapex/depreciation (x) 1.1 0.7 0.6 0.5 0.5Current ratio (x) 0.6 0.5 0.6 0.7 0.8Quick ratio (x) 0.7 0.9 1.2 1.4 1.6Receivable days 17 24 32 36 36Inventory days 2 5 4 2 2Payable days 52 59 65 67 67

Risk MeasuresDividendCover(x) 2.0 1.8 2.4 2.1 2.1Payout ratio (%) 50% 55% 41% 47% 47%Net interest cover (x) 6.6 4.5 4.8 5.5 7.8Net debt/equity (%) 40% 77% 56% 35% 17%

ReturnsReturn on avg capital employed (%) 18% 19% 21% 20% 20%WACC (%) Return on assets (%) 14% 13% 14% 12% 12%Return on average equity (%) 14% 14% 19% 17% 17%


Share DataIssued shares (m) 152 161 161 161 161Weighted ave shares (m) 152 156 161 161 161Fully diluted shares (m) 153 156 161 161 161Basic EPS (c) 21.9 23.7 36.8 36.0 39.6YoY change (%) -4% 8% 36% -2% 9%Fully diluted EPS (c) 21.79 23.69 36.84 35.97 39.64YoY change (%) -4% 8% 36% -2% 9%Fully diluted normalised EPS (c) 25.52 27.87 33.36 35.97 39.64YoY change (%) 18% 8% 16% 7% 9%Dividend/share(c) 12.00 14.00 18.00 20.00 22.00Franking (%) 100% 100% 100% 100% 100%Gross cashflow/share (c) 58 78 88 90 92NBV/share (c) 159 179 200 219 240NTA/Share (c) -41 -124 -124 -81 -41

ValuationPER (Basic) (x) 22.2 20.5 13.2 13.5 12.2PER (Fully diluted) (x) 22.3 20.5 13.2 13.5 12.2PER (Fully diluted, normalized) (x) 19.0 17.4 14.5 13.5 12.2P/CFPS (x) 8.3 6.2 5.5 5.4 5.3Price/NBV (x) 3.0 2.7 2.4 2.2 2.0Price/NTA (x) -11.7 -3.9 -3.9 -6.0 -11.8DividendYield(%) 2.5% 2.9% 3.7% 4.1% 4.5% Fully dil normalized 3 yr EPS Cagr (%) na na na na naPEG ratio (x) na na na na naEV 838.2 980.4 963.3 906.0 906.0EV/EBITDA(x) 9.8 6.8 5.2 5.2 5.2EV/EBIT (x) 17.3 12.3 9.2 9.7 9.4EV/Revenue (x) 1.4 1.2 1.0 1.0 1.0

OTHER INFORMATION

Estimated free float 60%12-mth High/Low (A$/sh) 5.15 / 2.84Average daily volume (A$m) 3.0ASX Code IIN Next result Aug 2013

COMPANY DESCRIPTION

iiNet Limited (IIN) delivers Internet access services in Australia. With the completion of the OzEmail, Westnet, Netspace and AAPT acquisitions, iiNet is the2ndlargestDSLInternetServiceProviderinAustralia.


Income Statement 11A 12A 13F 14F 15FSales 699.1 831.2 947.2 956.7 966.2Other 1.5 8.0 0.0 0.0 1.6Revenue 700.6 839.2 947.2 956.7 967.8COGS -437.7 -477.4 -493.8 -498.7 -503.7Other -162.8 -216.7 -263.6 -270.2 -275.6EBITDA 100.2 145.1 189.8 187.8 188.5Depreciationandamort -43.5 -65.5 -82.8 -86.6 -83.9EBIT 56.7 79.6 107.0 101.2 104.6Net Interest income/(expense) -8.5 -17.6 -22.2 -18.3 -13.3iHug 0.0 0.0 0.0 0.0 0.0Other income/(expense) 0.0 0.0 0.0 0.0 0.0Abnormal items (pretax) 0.0 0.0 0.0 0.0 0.0EBT 48.2 62.1 84.9 82.8 91.3Tax expense -14.8 -25.0 -25.5 -24.9 -27.4Minority interest 0.0 0.0 0.0 0.0 0.0PreferenceDividends 0.0 0.0 0.0 0.0 0.0Reported Earnings 33.3 37.1 59.4 58.0 63.9Dividends -16.7 -20.3 -24.2 -27.3 -30.3Adjustments (one off) 0.0 0.0 0.0 0.0 0.0Retained earnings 16.7 16.8 35.2 30.7 33.6Normalized Net Profit 39.0 43.6 53.8 58.0 63.9FullyDilutedNetProfit 39.0 43.6 53.8 58.0 63.9


Pretax Profit 48.2 62.1 84.9 82.8 91.3+Depreciation 43.5 65.5 82.8 86.6 83.9-/+ associates profit/loss 0.0 0.0 0.0 0.0 0.0+ associates dividends 0.0 0.0 0.0 0.0 0.0+ Foreign Exchange loss/(gain) 0.0 0.0 0.0 0.0 0.0- Tax Paid -9.9 -13.0 -25.5 -24.9 -27.4+ inc (- dec) in provisions -1.3 7.7 0.0 0.0 0.0- Profit/+ loss on disposal 0.0 0.0 0.0 0.0 0.0+/- Other 8.4 0.0 0.0 0.0 0.0Gross Cashflow 88.8 122.3 142.2 144.6 147.8- Capital expenditure -49.0 -46.0 -50.0 -41.0 -41.0+/- Changes in working capital -4.3 -15.0 -7.6 1.0 0.8Operating Free Cashflow 35.5 61.3 84.6 104.6 107.7+/- Acq of subs/other investments -68.9 -171.0 0.0 0.0 0.0-Dividends -16.7 -20.3 -24.2 -27.3 -30.3+ Proceeds from equiy raised 0.4 33.6 0.0 0.0 0.0+/- Proceeds from disp of subs/FAs 0.0 -9.4 0.0 0.0 0.0+/- IRU Finance leases 0.0 -10.0 -19.0 -20.0 -20.0+/- Other 0.0 -11.8 0.0 0.0 0.0Net cashflow -49.6 -127.6 41.4 57.3 57.3Cash at beginning of period -45.4 -95.0 -222.6 -181.2 -123.9Cash at end of period -95.0 -222.6 -181.2 -123.9 -66.6


Cash 5.5 6.6 17.0 34.3 51.6Receivables 40.0 70.8 94.7 95.7 96.6Inventories 4.6 7.6 2.6 2.6 2.6Current tax assets 0.0 0.0 0.0 0.0 0.0Other 9.6 5.2 5.2 5.2 5.2Current Assets 59.7 90.2 119.4 137.7 156.0Equity accounted investments 0.0 0.0 0.0 0.0 0.0Intangibles 305.5 486.9 523.3 484.7 453.6Property/Plant/Equipment 82.0 179.5 185.3 178.3 166.5Other 9.0 0.0 0.0 0.0 0.0Deferredtaxassets 0.2 0.2 0.2 0.2 0.2Non Current Assets 396.7 666.6 708.8 663.1 620.3Total Assets 456.4 756.8 828.2 800.9 776.3Payables -68.96 -84.50 -90.88 -92.27 -93.51Interest bearing liabilities -1.30 -2.30 -2.00 -1.59 -1.19Unearned revenue -29.40 -51.90 -56.83 -57.40 -57.97Provisions -5.97 -12.60 -12.60 -12.60 -12.60Indefeasible right to lease 0.00 -12.60 -17.60 -17.60 -17.60Other -0.40 -9.00 -9.00 -9.00 -9.00Current Liabilities -106.0 -172.9 -188.9 -190.5 -191.9Interest bearing liabilities -100.6 -225.9 -196.2 -156.6 -117.0Provisions -0.6 -1.7 -1.7 -1.7 -1.7Indefeasible right to lease 0.0 -61.1 -111.1 -91.1 -71.1DeferredTax -6.7 -7.5 -7.5 -7.5 -7.5Non Current Liabilities -107.9 -296.2 -316.5 -256.9 -197.3Total Liabilities -213.9 -469.1 -505.4 -447.4 -389.2Net Assets 242.5 287.6 322.7 353.5 387.1Contributed equity 223.5 250.5 250.5 250.5 250.5Reserves 3.8 5.4 5.4 5.4 5.4Retained profits 15.1 31.7 66.9 97.6 131.2Minority Interests 0.0 0.0 0.0 0.0 0.0Total equity 242.4 287.6 322.8 353.5 387.1

iiNet Ltd(IIN $4.85) Buy


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* Euroz Securities declares that it has acted as underwriter to and/or arranged an equity issue in and/or provided corporate advice to these companies during the last year. Euroz Securities has received a fee for these services.

** The analyst declares that he has a beneficial interest in this stock.

Resources Industrials

Weekly Share Price Data

Weekly Share Price Data for Stocks Covered by Euroz

Weekly Share Weekly Price Euroz Last Analyst Change Price VWAP Target Recom. Note $/sh $/sh $/sh Mining Contractors

BYL 4% 0.44 0.43 0.58 Buy Mar-13 GANWH** -6% 1.92 2.00 3.33 Buy Feb-13 GA

Engineering & Construction Contractors CLO** 0% 1.32 1.33 1.60 Buy Feb-13 GAFGE -4% 6.60 6.77 7.74 Buy Feb-13 RHGNG 0% 0.91 0.91 1.13 Buy Feb-13 RHMCE -5% 1.28 1.30 1.75 Hold Jan-13 GAMLD** -3% 2.85 2.87 3.58 Buy Jan-13 GARCR** -5% 2.17 2.26 2.92 Buy Feb-13 GASXE 3% 1.35 1.32 1.79 Buy Feb-13 GA

IT Services AMM -5% 1.71 1.73 1.85 Buy Aug-12 RHEPD* 3% 0.60 0.59 0.55 Buy Aug-12 RHIIN -6% 4.79 4.89 5.49 Buy Mar-13 GA

Property CWP* 3% 5.77 5.62 5.70 Buy Feb-13 GAFRI 0% 1.43 1.42 1.70 Buy Feb-13 GA

Other Industrial ASB -2% 0.66 0.67 0.93 Spec Buy Feb-13 RHAHE -4% 4.08 4.21 3.71 Hold Feb-13 RHCLX 13% 1.94 1.86 1.95 Buy Jan-13 RHIMD -3% 1.47 1.48 2.15 Hold Oct-12 RHRQL -2% 0.22 0.22 0.26 Hold Feb-13 RH

Weekly Share Weekly Price Euroz Last Analyst Change Price VWAP Target Recom. Note $/sh $/sh $/sh Precious Metals

AQP -5% 0.79 0.80 1.52 Buy Mar-13 GCBSR* ** -7% 0.03 0.03 TBA Spec Buy Sep-12 ACGRY* ** 3% 0.35 0.35 1.00 Buy Mar-13 ACIGO 0% 4.22 4.21 5.50 Buy Mar-13 JBLGM* -7% 0.03 0.03 0.10 SpecBuy Dec-12 JBMML 5% 4.18 4.10 4.50 Hold Mar-13 JBPIR 11% 1.35 1.31 2.20 Buy Mar-13 ACPVM* 13% 0.63 0.59 1.20 Buy Mar-13 ACRRL** 9% 4.56 4.39 5.10 Buy Mar-13 ACRSG 4% 1.40 1.39 2.00 Buy Mar-13 JBSAR 5% 0.33 0.33 0.40 Hold Mar-13 ACTGZ** 0% 1.25 1.24 2.50 Buy Mar-13 ACTRY 4% 2.98 2.92 3.65 Buy Mar-13 JB

Oil & Gas AUT* ** -4% 3.58 3.68 6.00 Buy Mar-13 JBBPT -3% 1.41 1.47 1.74 Buy Mar-13 JBCOE* -4% 0.53 0.55 0.80 Buy Mar-13 MSDLS -10% 1.25 1.31 1.90 Buy Mar-13 MSETE -14% 0.06 0.06 0.13 Spec Buy Jan-13 JBHZN -7% 0.43 0.45 0.51 Buy Mar-13 MSNSE -5% 0.19 0.19 0.70 Spec Buy Mar-13 MSOEL -4% 0.09 0.09 0.17 Spec Buy Jan-13 MSRFE -5% 0.63 0.65 1.45 Buy Mar-13 JBRIA* ** 10% 0.08 0.07 TBA Spec Buy Jan-13 JBSEA** -2% 1.02 1.04 1.32 Buy Mar-13 JBSUR 0% 0.05 0.05 0.12 Spec Buy Mar-13 MSTAP -3% 0.65 0.66 1.15 Buy Mar-13 MS

Base Metals HIG -11% 0.13 0.13 0.40 Spec Buy Sep-12 ACIRN 6% 0.37 0.37 0.50 Spec Buy Mar-13 ACMLX 0% 0.17 0.17 0.27 Buy Mar-13 ACSIR 14% 4.47 4.24 5.00 Spec Buy Mar-13 GCSRQ* ** -2% 0.05 0.05 0.08 Hold Feb-13 GCSUH** -19% 0.11 0.11 0.30 Spec Buy Feb-13 GC

Bulks AQA -5% 2.45 2.55 3.96 Buy Mar-13 GCBSE 15% 0.42 0.38 0.70 Buy Mar-13 ACFMS -8% 0.07 0.07 0.20 Spec. Buy Sep-12 GCIKW** 18% 0.07 0.06 0.20 SpecBuy Jan-13 GCILU -1% 9.90 10.04 10.50 Hold Mar-13 ACMDL -1% 3.95 3.93 7.00 Buy Mar-13 ACNFE* ** -6% 0.47 0.49 0.80 Buy Mar-13 GCOMH** 3% 0.34 0.33 0.53 Buy Mar-13 GCREY* ** 0% 0.05 0.05 0.06 Sell Nov-12 GCVMS 0% 0.21 0.21 0.50 Spec Buy Sep-12 AC


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Resources Industrials


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Weekly Price & Liquidity Tables

Source: IRESS/Euroz

Weekly Price & Liquidity Tables for Stocks Covered by Euroz

18%

15%14%

13%11%

10%9%

6% 5% 5% 4% 4%3% 3%

0% 0% 0% 0% 0% 0%

-1% -1%-2% -2%

-3% -3% -4% -4% -4% -5% -5% -5% -5% -6% -7% -7% -7%-8%

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IKW

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RR

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YO

MH

GR

YIG

OM

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UR

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PB

PT

AU

TC

OE

OE

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AN

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NLG

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FM

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LS HIG

ET

ES

UH

Performance (%) Weekly Share Price Performance

240 1240

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ILU

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NR

FE

SE

AN

FE

NS

EIR

NT

GZ

RIA

BS

EC

OE

PV

MS

UR

TA

PM

LXS

RQ

OM

HE

TE

VM

SO

EL

HIG

RE

YB

SR

IKW

SU

HLG

M

$m Absolute Weekly Turnover Av. 12mnthCurrent Week

13%

4% 3% 3% 3%

0% 0% 0%

-2% -2% -3% -3%

-4%-4% -5% -5% -5% -6%

-6%

-10%

0%

10%

20%

CLX

BY

L

EP

D

SX

E

CW

P

CLO FR

I

GN

G

RQ

L

AS

B

IMD

PB

D

AH

E

FG

E

AM

M

MC

E

RC

R IIN

NW

H

Performance (%) Weekly Share Price Performance

0

5

10

15

20

25

30

35

40

NW

H

IMD IIN

FG

E

AH

E

MLD

RC

R

AM

M

CLO

MC

E

AS

B

CW

P

SX

E

FR

I

RQ

L

GN

G

BY

L

CLX

EP

D

$m Absolute Weekly Turnover Av. 12mnthCurrent Week

0%

2%

4%

6%

8%

10%

12%

14%

SIR ILU

BP

TR

SG

GR

YF

MS

SA

RD

LSR

RL

NS

EA

QP

MM

LIG

OS

EA

RIA

AU

TT

RY

RF

EP

IRM

DL

HZ

NE

TE

BS

ES

UR

NF

ER

EY

CO

EB

SR

AQ

AP

VM

TA

PIR

NLG

MT

GZ

OE

LS

UH

VM

SM

LXS

RQ

OM

HH

IGIK

W

% of Issued Capital Relative Weekly Turnover Av. 12mnthCurrent Week

0%

1%

2%

3%

4%

5%

6%

NW

H

IMD

RC

R IIN

FG

E

AM

M

MLD

AS

B

MC

E

BY

L

AH

E

RQ

L

EP

D

CLO

CW

P

SX

E

FR

I

GN

G

CLX

% of Issued Capital Relative Weekly Turnover Av. 12mnthCurrent Week


51 of 56


52 of 56

Commodity Price Charts

Commodity Price Data

Source: IRESS/Euroz


52 of 56

Commodity Recent Price Previous Week Previous Month

12/03/2013 5/03/2013 12/02/2013

Gold US$/oz 1592 1575 1651

Silver US$/oz 29.1 28.7 31.1

Platinum US$/oz 1595 1586 1717

Palladium US$/oz 776 735 771

Rhodium US$/oz 1250 1250 1200

PGM Basket Price US$/oz 1317 1299 1384

800

1000

1200

1400

1600

1800

2000

Mar-09 Mar-10 Mar-11 Mar-12 Mar-13 Mar-14

US$/oz Gold

Eurozforecast

10

20

30

40

50


US$/oz Silver

EurozforecastEuroz

forecast

1000

1200

1400

1600

1800

2000


US$/oz Platinum

EurozforecastEuroz

forecast

0

200

400

600

800

1000


US$/oz Palladium

Eurozforecast

1000

1500

2000

2500

3000


US$/oz Rhodium

Eurozforecast

4000

6000

8000

10000

12000

14000

16000

600

800

1000

1200

1400

1600

1800


R/ozUS$/ozPGM Basket Price

US$/oz R/ozEuroz

forecast


53 of 56



Source: IRESS/Euroz


53 of 56


12/03/2013 5/03/2013 12/02/2013

Copper US$/lb 3.54 3.50 3.72

Nickel US$/lb 7.70 7.49 8.30

Zinc US$/lb 0.89 0.90 0.99

Lead US$/lb 1.01 1.00 1.09

Tin US$/lb 10.81 10.67 11.28

Aluminium US$/lb 0.88 0.88 0.94

0

200

400

600

800

1.00

2.00

3.00

4.00

5.00


Tonnes 000'sUS$/lb

Copper

Eurozforecast

LME Inventory

0

100

200

300

0

5

10

15


Tonnes 000'sUS$/lb

Nickel

Eurozforecast

LME Inventory

0

500

1000

1500

2000

0.40

0.60

0.80

1.00

1.20


Tonnes 000'sUS$/lb

Zinc

Eurozforecast

LME Inventory

0

300

600

900

0.00

0.50

1.00

1.50


Tonnes 000'sUS$/lb

Lead

Eurozforecast

LME Inventory

0

20

40

60

80

0

4

8

12

16


Tonnes 000'sUS$/lb

Tin

LME Inventory

Eurozforecast

0

2000

4000

6000

8000

10000

0.40

0.60

0.80

1.00

1.20

1.40


Tonnes 000'sUS$/lb

Aluminum

LME Inventory


54 of 56



Source: IRESS/Euroz


54 of 56


12/03/2013 5/03/2013 12/02/2013

Iron Ore Spot CIF China US$/dmt 143.4 145.2 155.1

Manganese Ore 44% China US$/dmtu 5.68 5.68 5.60

Steel - Hot Rolled Coil US$/t 608 608 592

BalticDryIndex 847 806 747

Thermal Coal - Newcastle US$/t 90.0 91.6 96.8

50

100

150

200


US$/dmt Iron Ore

Spot CIF China

Notional Spot FOB Pilbara

Eurozforecast

0

2

4

6

8

10

0

2

4

6

8

10


US$/dmtuManganese Prices

BHP Mn Ore 44% (LHS)

Mn Ore 44% CIF China Spot Price (LHS)

Eurozforecast

Chinese Port Inventory (RHS)

mt

300

400

500

600

700

800


US$/t Hot Rolled Coil - World Export Market

0

1000

2000

3000

4000

5000


Baltic Dry Index

50

75

100

125

150


US$/t Thermal Coal

Thermal Coal (Newc)Thermal Coal (RB)

Eurozforecast


55 of 56



Source: IRESS/Euroz


55 of 56


12/03/2013 5/03/2013 12/02/2013

Oil US$/bbl 92.6 90.7 97.5

AUDUSD 1.03 1.03 1.03

USDZAR 9.17 9.03 8.91

USDEUR 0.77 0.77 0.74

DowJones 14450 14254 14019

All Ords 5129 5088 4982

Small Ords 2367 2346 2403Small Resources 3388 3350 3707

30

60

90

120


US$/bbl Oil (WTI)

Eurozforecast

0.60

0.80

1.00

1.20


AUD:USD

Eurozforecast

6

7

8

9

10


USD:ZAR

Eurozforecast

1.20

1.30

1.40

1.50


EUR:USD

2000

4000

6000

8000

6000

9000

12000

15000


DJI v ASX All Ords

DOW Jones (LHS) ASX All Ords (RHS)

0

2000

4000

6000

8000


ASX Small Ords v Small Resources

ASX Small Ords ASX Small Resources


56 of 56

DisclaimerCopyright & Distribution

The material contained in this communication (and all attachments) is prepared for the exclusive use of clients of Euroz Securities Ltd (ACN 089 314 983) (“Euroz”) only. Euroz is the holder of an Australian Financial Services Licence (AFSL 243302) issued by the Australian Securities and Investments Commission (“ASIC”) and is a participant of the Australian Securities Exchange Group (“ASX Group”).

The information contained herein is confidential and may be legally privileged. If you are not the intended recipient no confidentiality is lost nor privilege waived by your receipt of it. Please delete and destroy all copies, and contact Euroz on (+618) 9488 1400. You should not use, copy, disclose or distribute this information without the express written authority of Euroz.

Disclaimer & Disclosure

Euroz and its associates declare that they deal in securities as part of their securities business and consequently may have a relevant interest in the securities recommended herein (if any). This may include providing equity capital market services to their issuing company, hold a position in the securities, acting as principal or agent, or make a market therein and as such may effect transactions not consistent with the recommendation (if any) in this report.

Euroz declares that it may have acted as an underwriter, arranger, co-arranger or advisor in equity capital raisings, and will have received a fee for its services, for any company mentioned within this report during the last 12 months.

You should not act on any recommendation issued by Euroz without first consulting your investment advisor in order to ascertain whether the recommendation (if any) is appropriate, having regard to your investment objectives, financial situation and particular needs. Nothing in this report shall be construed as a solicitation to buy or sell a security, or to engage in or refrain from engaging in any transaction.

Euroz believes that the information and advice contained herein is correct at the time of compilation, however we make no representation or warranty that it is accurate, complete, reliable or up to date, nor do we accept any obligation to correct or update the opinions in it. The opinions expressed are subject to change without notice. No member of Euroz accepts any liability whatsoever for any direct, indirect, consequential or other loss arising from any use of this material.

We cannot guarantee that the integrity of this communication has been maintained, is free from errors, virus interception or interference.

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AdvisorsTim Bennett +61 8 9488 1432Rob Black - Institutional +61 8 9488 1423TImothy Bunney- Institutional +61 8 9488 1461Richard Caldow +61 8 9488 1403James Clement- Institutional +61 8 9488 1408PeterDiamond-Institutional +61894881405Richard Gardner +61 8 9488 1444Nicholas Gorton +61 8 9488 1473Stephen Grove +61 8 9488 1410Jay Hughes - Institutional +61 8 9488 1406RussellKane-Institutional +61894881426Ben Laird - Institutional +61 8 9488 1429Jamie Mackie +61 8 9488 1416Giles McCaw +61 8 9488 1462AndrewMcKenzie-Institutional +61894881407 Cameron Murray +61 8 9488 1440Joel Pember +61 8 9488 1476Lucas Robinson +61 8 9488 1424Tom Ruello +61 8 9488 1420Peter Schwarzbach - Institutional +61 8 9488 1492Brett Stapleton +61 8 9488 1435Ben Statham +61 8 9488 1417Ryan Stewart +61 8 9488 1441Leigh Travers +61 8 9488 1482Jonathan van Hazel - Institutional +61 8 9488 1443Matt Williamson +61 8 9488 1466Simon Yeo +61 8 9488 1404ChristianZerovich +61894881436Hugo Packer +61 8 9488 1419

Research AnalystsJon Bishop - Resources +61 8 9488 1481Greg Chessell - Resources +61 8 9488 1409Andrew Clayton - Resources +61 8 9488 1427Michael Skinner - Resources +61 8 9488 1431 Gavin Allen - Industrials +61 8 9488 1413Richard Hamersley - Industrials +61 8 9488 1414KristanHarvey-Assoc.Analyst +61894881463

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Weekly Informer · 2014. 12. 18. · Aurora Oil and Gas AUT$3.85 FY’12 Financials Buy Jon Bishop...

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