OK, here's my report from the AGM today - you HC boyos need to turn up next year & we can hit the bars!! Obviously you've got the presentation, but hopefully this adds to it.
My comments in "(..)", text is as I wrote down at the time / as I remember it , so please correct me / don't sue me if I'm mistaken:
Mike Young / Chairman
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Was proud of his fantastic team this year, they have done what they said they would do.
They are sitting on a globally significant Ni/Cu deposit.
One day the market will come out of it's slumber & realise
( please re-read these words in a year when the SP is well north of $1 !!!)
They will have better year next year - 2015
CZI have more Doctors than the Medical centre across the road &
Dr Jon Hronsky has a brain the size of a planet!
(wonder if they'll take my Medicare card for my next share purchase then ... ha ha?!)
Richard Bevan / Managing Director
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Is off to "Mines & Money" conference next week n LONDON with Greg Miles / Tech Director
(so better buy now HC-ers,as once the Poms learn of this: BOOM !!!!!)
Have made very significant progress
Introduced Dr Zoran Seat (another one of the Drs!)
Key metrics delivered on - have increased resource @ Nebo
Very strong tech team
Would like share price to be higher, but is tracking with the Ni market
Are progressing other assets in background - West Arunta & Nevada (I think these could surprise?)
Focusing on the upper 250m of the deposits ATM
Succoth is a signifgant Cu resource, hanging off Nebo-Babel
(Greg Miles & Richard were out there recently in 44 C heat - onya guys!)
Open pit Ni-Sulphide deposits are very rare in the world (see slide 8 of AGM presentation) &
Nebo-Babel stacks up well against these -esp. wrt to geometry
Have done 30km of drilling @ Nebo-Babel & Succoth, nearly finished
Nebo-Babel is going to be a "big hole" ( ":^)
Will process Ni & Cu concentrate on site, & will get good recoveries
As to SUCCOTH:
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- they've designed a program to better understand it, had 1Tb of data from BHP (N-B & S)
- data was sparse for Succoth.
- new drill results are "world class"
- 0.8% Cu & close to the surface is signifigant
- PGEs (Platinum etc) add to economics
- they are building up a picture with the drilling
- but focusing on the top part, is to be open pit
- there is signifgant upside to extend the strike distance
- favorable geometry gives a low stripping ratio (woo!!)
Nebo-Babel + Succoth gives a "world class deposit", as the average world resouce grade is 0.5%, & combining these 3 resources will keep capex down
WEST ARUNTA:
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Dr Jon Hronsky did some work on this
They're doing a closed grid soil sample ATM
Results / news soon
Once in , will progress to next level
NEVADA:
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Low cost GOLD exploration environment
No time limit on tenement exploration
Low holding costs
Will report on progress by end of year
Costs of approx. $500/oz (I assume $US)
SUMMARY:
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Have ticked a lot of boxes in the last year
Will have 3-4 more holes from Succoth & all of Babel in next month
Their goal is to start the feasibility study by the end of March 2015, when all info is in
Believes Nebo-Babel will "get up" & that Succoth is a "sleeping giant"
Will have a bigger year in 2015
QUESTIONS from Shareholders:
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? Cash flow, when next doing a CR:
- Steady state costs when not exploring is $1.5M year, $7M in bank, so not a problem, CR "not soon"
? Will they develop N-B & S themselves:
- they're open to it, but 1st need to identify what they have
- Cu market is bigger than the Ni one;
- Dr Jon Hronsky: "geometry is king" , & we have it!
? Why did BHP sell it (my question):
- BHP was offloading exploration & had cut budgets for same
- CZI had West Musgrave Indigengous heritage & drilling experience already
- CZI had contacts at BHP & asked about it
? What of SIR.ax market cap vs. ours (SIR = 50x ours) given Ni/Cu resource (my question):
- Board are very aware of it & it has been discussed often
? What of takeover possibilitys given $20M MC (my question):
- very aware of it
- good that max. holding is only 5%
- 50% held by non-institutional investors
- Institutions that bought in @ last CR still mostly hold
> What is time frame for a mine:
- 3 -4 years
- Mike Young's primary driver is to get a mine going (!!)
? General discussions:
- Dr Jon Hronsky said they'd use the hi-grade res. to unlock the lo-grade
- Dr H said N-B & S had a 2% Cu equiv open-pit resource, based on Ni = 2.5->3x Cu
- looking at possibility gas from Laverton pipeline to provide power
- Australia is a stable country, so makes a big diff. when comparing w. mines
& resources in Africa, People's Republic of Woop Woop etc ...
cheers,
Brett,
HC Roving Correspondent
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