INDOPHIL RESOURCES NL 
By indophil resources nl
acn 076 318 173
Quarterly Report
For the three months ending 30 June 2013
Fax: +613 8620 5888
Indophil Services International Pty Ltd Level 3, 107 Aguirre Street Legaspi VillageMakati City 1229
The Philippines
Tel: +632 752 1440
Fax: +632 752 1146
www.indophil.com
• Off the back of the Company's Annual General Meeting on 23 May . . . • Indophil enters in-depth discussions with its Tampakan Copper-Gold Project business partner, the newly-merged Glencore Xstrata . . . • With the focus being on how to restructure the Tampakan Project and tackle some well-publicised in-country development challenges.
When Indophil's Chairman, Brian Phillips, addressed shareholders at the Company's AGM in late May this year, he signaled that Indophil 'is involved with several significant events.'
He reminded shareholders that this is a strategic time for Indophil and our shareholder base, and he pointed to the discussions with project partner Glencore Xstrata in respect to restructuring the Tampakan Joint Venture.
He also made the observation that in the current investment climate, many small- and mid-cap resources companies are trading at not much more than cash backing, despite holding a significant position in an important mineralised asset, as does Indophil. With a share price of 24 cents, and cash backing of just over 18.5 cents per share, this is true of Indophil.
The simple fact remains that Tampakan is world-class, and Indophil holds a significant and strategic stake in Tampakan. It is in this context that we address our discussions with Glencore Xstrata.
Glencore Xstrata and Indophil are reviewing
the project work program, and are considering a restructure of the current work plan and budget.
With a 37.5% interest in Tampakan through holding company Sagittarius Mines Inc (SMI),
and a consistent presence through several ownership regimes over the life of the project, augmented by the presence of a number of the Philippines most significant and relevant corporations, Indophil is providing input on
a range of issues and how they should be addressed. Our discussions with Glencore Xstrata regarding these issues are incomplete, but they are moving forward.
Whilst this review of the project is ongoing, on
20 June this year Indophil advised the market that Glencore Xstrata had issued proceedings to enable it to become formally registered in the Philippines as the title holder of 62.5%
of the shares in SMI. Indophil has lodged its defence in the Supreme Court of Queensland.
Indophil is also seeking clarification as to the implications of Glencore's announcement
on 16 April 2013 regarding the Chinese Government's conditions as part of the MOFCOM approval for its merger with Xstrata. The announcement named Tampakan as one of the assets that Glencore Xstrata may be required to divest. As Glencore Xstrata's
JV partner, with pre-emptive rights over Glencore Xstrata's stake in Tampakan, this may be a crucial factor in these discussions.
Richard Laufmann
CEO & MD
30 July 2013
On 9 April 2013, Indophil lodged with the ASX its Annual Report to Shareholders as well as the Notice of Meeting for the Annual General Meeting (AGM).
The Quarterly Report for the period ending 31 March 2013
was lodged with the ASX on 29 April while an updated Investor Relations presentation, for use at the ASX investor conferences in Hong Kong and Singapore in mid-May, was also lodged.
The presentation is available on the Indophil website.
Indophil's AGM was held on 23 May. There were three resolutions put to the AGM - the first on adoption of the Remuneration Report and the other two in relation to
re-election of Directors. All three resolutions carried a greater than 90% approval from shareholders.
On 20 June, Indophil advised shareholders of proceedings having been issued in the Supreme Court of Queensland by Xstrata Queensland (part of Glencore Xstrata since
2 May 2013), seeking the issuance of Share Certificates to confirm that it is registered as the formal holder of the 62.5% share in Sagittarius Mines Inc (SMI) that it acquired from Indophil in 2007. SMI is the holder of the Columbio FTAA in which the Tampakan copper-gold deposit is located.
By way of background, Indophil has been seeking an exemption from capital gains tax on that transfer, available under the terms of a tax treaty between the Philippines and Australia. Indophil has applied for a tax ruling to facilitate registration of Xstrata (now Glencore Xstrata) as the legal owner of those shares in the share register of SMI. For clarity, Glencore Xstrata (and before it Xstrata), has held the
beneficial interest in these shares and management rights in the Tampakan Project since 2007.
Indophil is also seeking clarification regarding the implications of Glencore's announcement on 16 April 2013 regarding the Chinese Government regulator's approval of the merger with Xstrata, subject to certain conditions. The announcement highlighted Ministry of Commerce (MOFCOM) conditions which named Tampakan as one of the assets that the
merged Glencore Xstrata may be required to divest. As Glencore Xstrata's JV partner, and with pre-emptive rights over Glencore Xstrata's stake in SMI and hence Tampakan, this clarity is of crucial interest to Indophil and project stakeholders.
Glencore Xstrata, on behalf of the operator SMI in which Indophil holds its Tampakan interest, manages activities at the Tampakan Project.
The current work program and budget are under review. During the quarter, studies to develop a power station and
the associated infrastructure corridor continued. The majority
of the technical studies for the Off Lease Infrastructure and Corridor Environmental Impact Assessment were completed and internally reviewed.
The Environmental Protection and Enhancement Program as well as the Final Mine Rehabilitation and Decommissioning Plan were further developed. These form part of the obligations under the Environmental Compliance Certificate for the mine site.
The Tampakan copper and gold deposit, discovered in
1992, is one of the largest-known undeveloped copper-gold deposits in the world. Tampakan is a 2.94 billion tonne mineral resource at 0.51% copper when measured at a 0.2% copper cut-off grade. It is estimated to contain 15 million tonnes of copper and almost 18 million ounces of gold, with potential
for growth.
The Tampakan Mine Project Feasibility Study, completed in April 2010, outlined a proposed mining operation that involves:
• An initial 17 year life-of-mine, with potential for extension;
• A start-up mining and milling capacity of 66 million tonnes per annum;
• Annual copper production of 450,000 tonnes and annual gold production of 435,000 ounces over the first five years of operation;
• An average life-of-mine copper production rate of 375,000 tonnes per year;
• An average life-of-mine gold production rate of 360,000 ounces per year; and
• A development cost of US$5.9 billion, including the provision of US$900 million for a power station.
Indophil holds a strategic 37.5% stake in SMI and hence in the Tampakan Project while Glencore Xstrata holds the balance. In turn, as the holder of the Columbio Financial and Technical Assistance Agreement, SMI acts as a contractor
to the Philippines Government on behalf of the people of the
Philippines.
Indophil's cash balance at the end of the June 2013 quarter was $223.6 million (previously $229.9 million). Interest earned from cash-at-hand during the quarter was $2.3 million. The Company's main expenditure commitment for the quarter - approximately $4.9 million - was to the Tampakan Project.
EXPLORATION PROGRAM - THE PHILIPPINES
At Indophil's Itogon Gold Project in Northern Luzon, assay results for the final hole in the current program (ITDH049), completed in the previous quarter, were received.
The hole was designed to intersect the Frog Vein system below the 1300 level. The hole successfully intersected the Frog structure, but the main zone contained an intrusive andesite dike and the assays were disappointing.
However, the hole also intersected a previously-unknown structure in the Taka Barr vein footwall, with significant gold mineralisation. The structure is sub-parallel to the core, so the true intersection width is probably narrow. A comprehensive technical review of the project is in progress. The Company continues to progress the requirements to complete title renewal. No fieldwork can take place until the title is renewed.
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www.indophil.com
Hole ID From (m) To (m) Interval (m) Au g/t Ag g/t
Vein
Structure Lithology
Gabbroic Diorite
ITDH049 176.50 179.10 2.60 6.96 174.09 Unknown
Taka Barr
(Vein Zone)
Gabbroic Diorite
ITDH049 232.85 235.50 2.65 19.00 5.40
ITDH049 250.00 256.15 6.15 13.66 22.61
Vein HWS
Taka Barr
Vein HWS
Gabbroic Diorite
(Vein Zone)
Note: Gold assays cut to 40g/t
In Eastern Mindanao, Indophil holds an interest in the Manat Gold Project. The Declaration of Mining Project Feasibility (DMF) has been submitted to the Philippines Government. On 9 January 2013, the DMF successfully passed through the regional MGB process and was referred to the MGB Central Office in Manila. This has been provisionally approved, subject to the submission of additional data.
CORPORATE INFORMATION
ASX listed code IRN
Total listed shares 1,203,146,194
Unlisted options 3,374,750
Share price trading range for the June 2013 quarter: High 35c
Low 20c
Current 24c
All currencies in Australian dollars unless stated otherwise.
Directors
Non-Executive Chairman Brian Phillips
CEO and Managing Director Richard Laufmann
Executive Director Tony Robbins
Non-Executive Director Kyle Wightman Non-Executive Director David Carland Non-Executive Director Nicasio Alcantara
Non-Executive Director Frederic DyBuncio
Company Secretary Kay Donehue
Chief Financial Officer Anita Addorisio (nee Krauser)
Gavan Collery
Manager Corporate Affairs
Indophil Resources NL
Email: gavan.collery@indophil.com
Office: +61 (03) 8620 5800
Mobile: +61 (0) 419 372 210
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www.indophil.com
Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report
