egm notes

hi everyone,

well i went to the meeting this morning and i'm happy to share my notes in full. i'm no expert at this so they are a bit all over the place, but should clear things up a bit for those who did not attend.

as paul said it was really just meant to be a meeting to pass the resolution, but once someone asked a question they didn't really stop rolling for the next 30 minutes or so and covered anything and everything. i wouldn't say that people were irate, but there was definitely a mood of 'what are you guys doing to get this moving in the right direction?'.

also, in my opinion there was nothing shocking mentioned during the meeting that could explain today's drop.

anyway they said the next big update is in the quarterly, here are my notes.

cheers.





Michael Fischer and Glenn Kondo were the only management present, this was due to some mgmt being in London, Chile etc. GK represented the board and fielded the majority of the questions.

Why is share price where it is?
Two main reasons.
1. Punitaqui - Delayed delivery of project 3000 and cash costs.
2. Concerns around future debt funding of Iberian assets.
Also acknowledged after a question that the large shareholder base means it is traded frequently and short selling occurs.

Quarterly
Will be comprehensive. Expect an improvement this quarter but next two quarters should see more significant improvements. Likely to be an international roadshow and positive media once they have completed the next two quarterlies. They continually stressed that they expect the next two quarterlies to be quite positive regarding cash costs, mine net revenue etc which should see the company regain some credibility in the market and would expect to see the sp appreciate as a result.

Punitaqui/Chile
This quarter will show an improvement in net mine revenue, then next will be more then next will be more again.
Have had an increase in recovery rates but looking for more.
Noted that conditions in Chile are difficult at the moment particularly for smaller companies, water and electricity costs. However, their aim is to reduce their costs so as to be lower than their local competitors.
Chris Harrison, General Manager, has brought in some good staff underneath him who have been concentrating on reducing costs.
They have had some sustainability issues maintaining the 3000tpd, didn’t elaborate on this, may be in the past now.
The ore they are hitting is still pretty hard.
They have been concentrating on improving flotation cycles.
Eric Roth has performed a thorough analysis of the Lat properties as to what should be a priority with regards to drilling, what sequence they should be drilled.

TSX
Question asked if it will be in October, as mentioned by HC at last AGM. They didn’t exactly say no, but did say they want to time it right. They are in constant contact with the Canadian brokers and aren’t going to go there if the market isn’t right and there isn’t the demand. Also hesitant to go do the TSX so soon after doing the placement.

Armenia
Being wound down to pure exploration and as a result there will be a second round of staff cuts coming up.
Drilling update to be in the quarterly.
Plant from Charters Towers is supposedly sitting on the docks at Townsville and is up for sale. They are waiting for the right price and are in no rush. About ten companies have taken a look at it so far.


BBY
Had a representative there who was asked almost as many questions as mgmt.
They fully back TMR and are as bemused as anyone else as to why the price is so low.
HC and MF have visited BBY clients in NY and London over the past 6-8 months.
Clients are also supportive and BBY have not witnessed any of their clients selling into the market.
He was asked a number of questions about a potential international road show. Said this would only happen after a couple of solid quarters ie. the two following the upcoming quarterly. Mgmt agreed.
BBY are expecting cash costs to be marginally better this quarter with larger improvements to come over the next two quarters.


Summary
Focus is on improving operational performance at Punitaqui, increasing revenue and decreasing costs to produce a couple of strong quarters which should produce a market rerating.