Tyssedal

?         Titanium slag production: first half 2013 was 99.3kt, 28% higher than first half 2012, following production of 48.6kt in the second quarter, which was 52% higher than second quarter 2012 and 4% lower than first quarter 2013. The production performance reflected the plant operating at effective capacity during first half 2013, and a one month shutdown of pre-reduction in second quarter 2012 which curtailed production at that time.

?         Titanium slag sales: first half 2013 was 80.6kt, 11% higher than first half 2012, with sales of 43.3kt in the second quarter, 49% higher than second quarter 2012 and 16% higher than first quarter 2013.

?         Titanium slag pricing: during first half 2013 was on average approximately 30% lower than average full-year 2012 levels, with prices softening through the half.

?         High purity pig iron (HPPI) sales volumes: first half 2013 was 66.3kt, 27% higher than first half 2012, with sales of 36.6kt in the second quarter, which were 55% higher than second quarter 2012 and 23% higher than first quarter 2013. The increased sales volumes partially reflect the introduction of an intermediate grade product that is accessing a different customer segment.

?         HPPI pricing: first half 2013 was approximately 20% lower than average full-year 2012 levels, partially a result of the introduction of the intermediate grade product, with prices softening during the half.

Grande C?te

?         Construction completion: now over 80%.

?         Structural steel: the previous lack of pre-fabricated structural steel on-site, which was curtailing construction works of the wet concentrator plant (WCP) and mineral separation plant (MSP), is no longer an issue. Large quantities of steel are now on-site which is allowing multiple work fronts to progress with increased productivity.

?         Work completed or near completed: the dredge is fully constructed and in the start-up pond; the power station is complete and fully commissioned; the last of the 12 deep water bores (which have taken 18 months to drill) is nearing completion; and the rail and port are on-track for completion in September/October.

?         Work to do: the majority of the final construction phase centres on the WCP (which includes the tails densification module) and the MSP, with piping and electricals being the major works to be undertaken.

?         Schedule: commissioning of the WCP and MSP is scheduled during the March 2014 quarter, which is unchanged from the March 2013 quarterly report.

TiZir

(50% owned
by MDL)

?         EBITDA (unaudited): first half 2013 was US$39.7 million, 21% lower than first half 2012.

?         Equity injection: the remaining US$50 million of committed equity was injected by MDL and Eramet during the second quarter.

?         Funding: cash at June-end was US$47.5 million; a US$50 million working capital facility was finalised during the quarter; and US$45 million of unsecured debt remains to be injected by Eramet - giving US$142.5 million in total.

Outlook

?         Titanium slag sales volumes: approximately 100kt is anticipated in second half 2013, some 25% higher than first half 2013.

?         HPPI sales volumes: approximately 55kt is anticipated in second half of 2013, compared to 66.3kt in first half 2013.