chairmans plan for outback metals

Chairman’s Address to OUM AGM 2012



Dear Fellow Shareholders
2012 has been another tumultuous year in world markets, making planning for productive outcomes quite difficult. Outback Metals’ share price reflects the continuing uncertainty of the future world economy.
The Board believes Outback’s share price significantly undervalues the present value of your Company.
Our share price is disappointing but it is in line with many other Australian listed companies. An increased share price will also come from greater certainty in relation to Outback’s underlying assets. Our strategy in the coming year is therefore to build fundamental strength in Outback and its assets while continuing to talk to parties interested in Outback and its assets.
Despite the global uncertainty, considerable advances have been made with Outback Metals’ projects, particularly with the Mt Wells and Mt Diamond projects, where additional field work has indicated potential extensions of the known mineralisation, and also at our significant Maranboy and Yeuralba projects.
We are also heartened at the recent increases in the world tin price (now above US$20,000-/tonne) and also increase in the copper and gold prices.
During the year, many discussions were held with parties interested in involvement in Outback’s projects, including a number interested in purchasing projects. Interest from a number of parties regarding numerous scenarios is ongoing.
As previously reported, a sale was made during the year of the Company’s Wingate Gold Project to a Chinese company. This sale has provided much-needed cash to the Company to progress not only Outback’s existing projects but also to allow us to commence looking for new exploration projects to secure Outback’s future.
New projects currently being examined include iron ore, tin and gold, but involvement in other commodities is also of interest and being researched. Conceptually, any involvement could take place by way of acquisition, joint venture or merger.
It is probable agreements relating to either divesting existing projects or acquiring substantial new projects will be required to be put to shareholders for approval.
I would like to take this opportunity to thank all directors and staff who ably assisted Outback with its endeavours this year. In addition, special thanks go to Aaron Steinert for a job well done. Aaron is now acting in a consulting role to Outback, and we are grateful for his diligence and efforts during the year.
Where to from here for Outback Metals? I have no doubt 2013 will comprise continuing uncertainty and turmoil in world markets. But in these conditions, opportunities will emerge, and Outback intends to position itself to take advantage of as many opportunities as it can while preserving its cash for focussed exploration on the Company’s existing projects.
Finally, thanks to shareholders for your continuing support of your company during these tough times.
Graham Chrisp Executive Chairman