key points from last year's agm...

Thanks to Juggernauts who attended the 2008 AGM and posted the following:


Hi guys,

Resolutions were passed quickly without any problems.

Then Ruane went through the latest presentation (from April), everything appears on track with lake disapointment, they had taken the martu people over the site during the week showing them the development spots, no objections were put forward and completeted documentation regarding this was to be recieved late yesterday, this may require a little more work, but doesnt seem far off. (I'm guesssing a couple of weeks).

Produce from Lake Disapointment is to be sold through Asia, to be trucked through Telfer then onto Port Hedland. With regards to the trucking cost he said current costs for the route are around $65/tonne, but are leaving them a contingency to have it cost upto $100/tonne. The production cost is expected to be very similar to the Great Salt Lake deposit and be approx $50/tonne (the Salt lake/mines here produce at around $20/tonne). Its clear from these numbers that the project will be highly profitable even if potash prices fall back.

Regarding the exploration targets, they initial tried drilling one target earlier this year, however the drill rig sourced was inapropriate and the drill company incapable of the job. A representive from the new drilling company attended the meeting, so expect news on commencement of these drilling targets very shortly. The targets have all been pegged and ready to go. To say Ruane is confident about the exploration targets is an understandment. In his speach he covered each in detail, the majority have had previous shows of potash in oil drilling. When (im assuming not if) once of these huge MOP targets gets found it'll propel RWD into the big league.

MR was asked about offtake agreements, hes been approached by a lot of parties with ineterst (understandably). "We've been approached by parties that you wouldnt think would have interest in such a small project" So i assume this may refer to the major canadian players. Our deposit is so valuable because of its shallow depth. He was reasonable coy about an offtake agreement and financing, im expecting these to be linked.

Production costs $120mil, with 50/50 debt equity. Initial 200ktpa, which can be easily ramped upto 400ktpa. Mine Engineer appointed, to be announced shortly.

The geologist then spoke on the process with the Martu people, they were very positive with regards to their meeting this week, however I could sence both his and Michael's frustration with the slow progress.

Other assets to be floated off.

Rio Tinto spending up big with regards to its Argentina deposit as well as obviously the recent BHP acq, potash seemds the industry to be in. Our advantage being our shallow deposit is that we can be producing in 2 years, where as the deeper deposits time to production is more than double this.

Hope this all helps those in other states. I really enjoyed listening to Michael speak, hes an absolute gun and has such an enthusiasum for the projects.