perth agm

Good evening fellow SDL shareholders,
Well after a lot of mucking around I managed to attend the agm today. GJ's report has already been released to the ASX along with what Don Lewis had to say, so I wont go into that too much.
Firstly George Jones left the Taj Hotel in Mumbai 12 Hours before the terrorist attack, and the floor he was staying on was one of the floors bombed by the terrorists. I think we are all very lucky that He wasn't booked on a later flight.
GJ said that he expects 2009 to be a difficult year, however he expects the SP to increase as at 9 cents the market cap is way below what the resource is worth. GJ's words, "Our current market cap is a joke."
As outlined they have taken steps to reduce opperating costs to see that our cash at bank gets us through the next 12 months. When questioned later Don Lewis let it slip that there will be an announcement either today, or Monday, regarding the reduction of operating costs.
GJ's view of the I.O. market going forward, " there is a solid base demand that will continue to sustain quality I.O. projects, marginal producers (and I wont name them) look out".
Current IO cutbacks by BHP RIO and Vale are short term only.
Current delays in expansion of existing projects and the commencement of new projects will see a decrease in supply that otherwise would have been available in 2012, playing in SDL's favour.
The board has decided that non-exec. directors will only be paid in cash, and bonuses will only be payed on achieving set goals. Did not expand on the goals if they were operational, or corporate.
All 4 resolutions were passed.
Resolution 4: G.J. said "the board had no intention to increase the salary package of existing directors, but the resolution was necessary to attract quality directors and to possibly add to the board as required.

Don Lewis then spoke. His big point was the increase from 35mtpa to 50mtpa. 2012 expected production about 16mtpa ramping up 50mtpa by 2016. The increased cashflow of the additional 15mtpa to be used to retire debt earlier.
DSO at mbarga top 50 metres of "soil" almost a zero stripping ratio. "If we had ifrastructure in place we could start shipping tomorrow"
Benefication plant to be on site. Rainfall high enough that they can build a dam for benefecation. H20 not a problem.
Seismic testing along the rail route has proven the railway line will be less expensive to build than originally thought
Testing on the site of the port at Kribi has also suggested that the port infrastructure will require a much lower cappex, and will be built along similar lines to existing port infrastructure in the Pilbra.

MOU still being negotiated. Sounds like it could be a bit of a sticking point. Wont be signed until at least early 2009 ( I got the feeling that that was being very optomistic based on previous statements made by GJ).
When I asked GJ about his comments on TV re the tax and royalty regime in Cameroon making SDL uncompetitive, he said words to the effect; "that interview was given immediatly after meeting with the PM and the minister for mines. We are still in negotiations, and both parties want this project to go ahead. Cameroon understand that this project will account for 8% of GDP. There is already a company that has signed a MOU with the Cameroonian(?) Gov't. They are listed on the TSX and the MOU is a public document." (Sorry can't read the name of the commpany)
GJ not in favour of a consolidation of shares, unless it is done in conjunction with something else.
When I asked GJ if under the current market conditions, with a decreased demand for IO over the forseeable future was 2012 still achievable, his first words were "at a stretch". He then went on to say that both the board and the Cameroonian Gov't wanted this project to go ahead as soon as practical, and that he couldn't retire until after they started shipping ore.
Negotiations for off take agreements are underway with several parties, SDL looking for somebody that can add to their expertise as well as capital.
All in All I got a "good vibe" from the meeting.
Hope I haven't bred you all, if I have sorry.
All the best HB.