one hell of a ride so far

Well worth reprinting todays ann

$110 mill in the bank, 37.5% ownership with Xstrata in a $80 billion dollar resource

And growing

Annual General Meeting of Shareholders
1 May 2007
Chairman’s Address

Ladies and gentlemen – fellow shareholders,
When last we met for the 2006 Annual General Meeting, we had just
announced the revised mineral resource for the Tampakan Copper Gold
Project in the southern Philippines.
That resource is a JORC compliant two billion tonnes, at a 0.3% copper cutoff
grade, containing 11.6 million tonnes of copper and 14.6 million ounces
of gold – a world-class deposit by any measure, and worth around US$80
billion in situ at current prices.
Continued drilling has extended the zone of greater than 0.5% copper
mineralisation in the north-east of the Tampakan deposit, and this new
information will be included in the next resource estimate, expected to be
available in the second half of this year.
Over the18 months to September 2006, we used the known resource base
to complete – on time and on budget – the A$27 million pre-feasibility study
into the Tampakan project. While Indophil’s Managing Director, Tony
Robbins, will provide more detail on the study work program following the
conclusion of the meeting, permit me one insight – based on the study’s
optimum milling rate of 30 million tonnes per annum, if Tampakan was in
production today it would rank in the top 20 copper producers in the world.
The past 12 months have been very busy for your Board and Management
team. Under the leadership of Tony Robbins, Indophil has achieved a great
deal.
It is worth taking a moment to remind ourselves of the journey. Tampakan
was discovered late in 1992, under the watch of Tony Robbins. It has stood
the test of many trials, including challenges to ownership in the highest
courts in the Philippines, but it has come through and proved its worth.
The efforts of Tony and his team, including the likes of Indophil’s cofounder
Chris Middleton over these many years, were recognised in 2006
through a Presidential Award in the Philippines and by industry peers when
they voted Indophil, and specifically Tony Robbins, as the world’s most
persistent minerals explorers and developers at the 2006 London Mining
Journal awards.
I would like to underpin my remarks by recognising the efforts of all of our
people during the past year, because they have performed above and
beyond the call of duty. They have not missed a beat, and their efforts are
greatly appreciated.
Under Indophil’s management during the past year, we had on our payroll
at any one time in Australia and in the Philippines more than 600 staff,
contractors and rotational workers, recording well over one million hours
of work. Two lost-time injuries and one medically-treated injury with no
shift losses were reported. While not perfect, there were no serious injuries
to our people in the period, and I am pleased to report that the positive
culture of workplace safety has continued into the 2007 year.
We invested significant time and effort to complete the Tampakan prefeasibility
study in a well-ordered manner to allow Xstrata Copper to
determine whether it would exercise its option to acquire a 62.5% interest
in the Tampakan project. On 21 December 2006, Xstrata Copper advised
that it would exercise this option, and on 30 March this year that
transaction was successfully completed.
For Indophil and Tampakan, securing the direct involvement of Xstrata, one
of the world’s major mining houses, was crucial to advancing the Full
Feasibility Study and future development at Tampakan. It brings greater
certainty to the project and it delivers a vote of confidence in the
Philippines as a place for minerals development.
With a 32.5% Tampakan project interest, leading through arrangement with
Filipino partner Alsons Corporation to a 37.5% interest over time, Indophil
is positioned as a significant shareholder in one of the world’s potentially
most cost-competitive undeveloped copper-gold deposits.
During the past year, there were changes to the Board and Senior
Management. Peter Maloney retired from the Board after four years’
service. Louis Irvine joined the Board early in 2006 as Xstrata Copper’s
representative, and shortly after Xstrata had exercised its Tampakan
interest, he stepped down as a director in April this year. D ick Potts and
Kyle Wightman joined the Board, and we welcome them. Scott Caithness
joined the Senior Management team as General Manager Exploration and
Business Development, filling a role that will be central in helping us build
the Company beyond our Tampakan interest.
Indophil is in a healthy financial position. Early in 2006, Indophil raised
additional equity to better position the Company to meet its Tampakan
commitments and to allow consideration of new business opportunities.
Combining those cash reserves with the A$49.3 million paid to us by
Xstrata Copper in March this year, Indophil has A$110 million in the bank.
That puts us in a sound position to grow the Company.
We have commitments to meet in respect of the Tampakan project as the
study work program progresses towards finality, and Tampakan remains
our flagship asset.
As the 62.5% shareholder of Sagittarius Mines, the operating arm for
Tampakan, Xstrata Copper has taken on the role as manager of Sagittarius
and the Tampakan project, inheriting the sound social and environmental
foundations laid over the years by Tony Robbins and our people.
Outside our Tampakan work program commitments, Indophil has already
identified some exciting opportunities that can be considered with the
underpinning of a healthy balance sheet.
Calendar year 2007 has started apace and strongly for Indophil Resources.
We do not intend to ease off on the reins as we strive to grow the Company
and improve shareholder value.
Thank you.
Brian Phillips