re: Ann: Managing Director's Presentation...
Hi guys,
Just got back from the AGM now. It looks like PJ has done me the honour by saving me the time to parrot of most of what I heard today, which is great I have a cold and was trying to jot down as much information as possible but it was difficult. I also had to get back to work so was unable to have chat afterwards.
If any of this is in the presentation, I’m sorry in advance but I will try and not repeat what is in the presentation.
• Mentioned that the recent capital raising was aligned to a development plan and stressed they don’t like to over capitalise. • So far funds for cap raising have had 0.3m for drilling, analysis 0.4m, costs 0.2m and Land Acquisition 6.7m.
South Africa
• SA is the current priority as it is a world class deposit. • The resource is wall to wall. • First of Two 1SS Approvals for Waterburg • Currently finalising settlement of Land Acquisition • The footprint is similar to Exarros mine is size • The L Tenements have had 24 holes drilled • Expect a reserve statement around end of January 2010 for Ledjadja • Two labs working around the clock for L statement and stressed this is a long process. • Waterburg estimate only to be increased in the next 12 months • Currently progressing with mining rights but need to finalise a few components prior to achieving this. • Are trying to make sure that Offtake agreements and Funding are done around the same time. • Funding for the project was mentioned as Debt & Equity mix – currently being discussed with possible 3 separate parties • Currently negotiating 5 properties – they are key to infrastructure of the mine. • Dams for water have been designed. • Aiming for strong domestic products as well as export grade thermal market. • Around 14% for export grade coal and 34% for domestic market. • Are aiming to do selective mining not bulk mining as the top 16m high situe export grade quality coal is first, then under that is the domestic product and then under that is further export grade coal. • The Pre Bankable Feasibility in run in tandem with mining rights application as is well underway. • Stressed that Bankable Reserve is the backbone and will continue to improve the reserve base of 300mt at W. • For ports, there are 5 east coast & 1 west coast possibilities and discussions are underway for all of them to gain access. A number of options were available for export.
Tasmania
• The main for focus is the Woodbury Tenement • Hopefully exploration will commence just prior to Christmas and will take 6 months before completion.
Well that’s about all I could muster, the presentation provided gives all the other information in my notes in much more detail and precision.
Hope this helps guys, we just got to keep the faith as I can see things are starting to kick into gear for us.
Cheers
RES Price at posting:
58.5¢ Sentiment: LT Buy Disclosure: Held
