Ozie, ozie,ozie. Troy, troy,troy!!, page-4

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Date Posted: 19:20:47 04/06/02 Sat
Author: Steve Bonkers.
Subject: 10. Troy Resources BRW 7/4/2002.

http://www.brw.com.au/stories/20011108/12243.asp
10. Troy Resources
Started: The gold producer and mineral explorer was founded in 1984 by a prospector, Gill Chapman, and a broker and current director, Alan Naylor. It listed on the Australian Stock Exchange in 1987 after its current chairman John Jones invested in it. Its shares listed at 25 cents each and now trade at 91 cents.

Strategy: The company focuses on high-grade deposits that are moderate to low risk, and has mines and exploration sites in Western Australia, the Northern Territory, Sweden and Mongolia. About 30% of its shareholders are based in Britain, a result of Jones raising funds there in the early 1990s.

Edge: The chief executive of Troy, Ken Nilsson, says the company is the lowest-cost gold producer in Australia. "We have a flat management structure, our administration costs are low and most of us are very experienced."

Result: Troy turned over $36.3 million in 2000-01, up from $4.1 million in 1997-98. It recorded a $6.8 million net profit in 2000-01, down 23% from $8.8 million in 1999-2000.

Smartest move: Acquiring the Bulchina gold mine in Western Australia in 1998 for a "bargain basement price", says Nilsson. The mine is now Troy's main revenue source. Nilsson says: "It was a virgin ore body that nobody had stuffed up." Ore is accessible from the surface at Bulchina. A nearby mill keeps infrastructure costs low.