All,
I was there and this is my account of it;
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TMR - May 2007 AGM – Notes by InHindSight
HC Presentation – Please read on line. It was distributed as an ASX document.
MF Presentation - Please read on line. It was distributed as an ASX document.
Other bits and Q&A – not really included in presentations
Secondary Listing is being considered. Think London, Toronto or New York. The fund managers LIKED the story. HC said “Expect significant re-rating”.
Executive Team is moving to London in the next 6-12 months. (To low cost suburb).
A question was raised about why Peter Evans was still on the board. Answer: He is resigning in about a month.
Charters Towers – Mill is going to Armenia. The Richton leases will probably be sold, but with a royalty clause.
HC sees to merged entity becoming a global mid-tier metals company. HC’s definition of this is $US 500 Million. The merged entity would have a capex of $ 250 Million.
HC has been quoted as saying he believes the company will be worth 1 Billion by end of 2010.
The 1st Qtr of this year yielded $5.5Million, based on 1,250 tpd throughput and an average POC of US$3.01.
The current throughput is 1,500 tpd. By end of year it will be 3,000tpd.
This means 1 Qtr of 2008 will yield 2.4 times the $5.5Million EBIT, based on the same POC.
By January 2008 TMR will produce 26-28 Million lb of Cu annually.
But if the same POC is used the 2008 1st Qtr EBIT will be greater than 2.4, because the cost per pound of copper is going down with higher throughput. Let’s say 2.6. This means $14.3 Million EBIT.
On a yearly base this would mean $57 Million for year 2008.
Folks! This is from Cenabrio only.
Add to this the other assets of the combined entity and you are looking at some very nice numbers.
The March quarter saw an improvement from 19% to 25% in concentrate grade.
The June quarter will see an improvement from 70-72% to 78% recoveries. The reason for this is that as they dig deeper and go through the initial Oxide layer they reach the ore body.
Merger Talks
The offer will not be changed.
Current uptake is approx 75%.
Two institutional investors are accepting, but cannot until the last day of the offer. This is due to their charter. These two would add another 11%, taking us to 86%, which is only 4% short of the magic 90%.
However, should the 90% not be achieved, TMR will still go ahead as if there was one physical company.
There would be some additional admin to manage the two entities and to ensure the minority holders are being looked after. HC said one very interesting thing on this topic. Suppose there are minority holders still out there when the company decides to invest in a project – what then? Well, the minority interest would be asked to cough up their part of the money required.
This alone is enough reason to stop fighting the merger. Not to mention the illiquidity, this would occur.
HC - “Iberian is clearly NOT in production”.
Armenia
Lichkvaz - Extensive mineralisation.
Extensive drilling to be done Qtr 3 -4 /2007.
Resource target is +4 Million Oz of Au
Potential of > 100,000 Oz of Au pa
Current structure is that the ore body consists of ‘lenses’ of high grades. The new
thinking is to include the lower grades surrounding the lenses. This would lead to a
resource upgrade.
Portugal
Montemor - Resource close to surface
50,000 meters of RC and diamond core completed.
Moving to full feasibility.
Objective is to prove +2 Million Oz of Au
Looking at production of 70-80,000 Oz pa from 2008-09.
Tungsten - No real update
End of Report
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Cheers,
IHS
IBR
iberian resources limited
