ASX re Chairman's Address & Presentation 2004 AGM 221004.doc 22 October 2004 Company Announcements Office Australian Stock Exchange Limited 10 th Floor 20 Bond Street SYDNEY NSW 2000 Dear Sir 2004 ANNUAL GENERAL MEETING CHAIRMAN’S ADDRESS AND PRESENTATION Pursuant to ASX Listing Rule 3.13.3, please find attached a copy of the Chairman’s Address to be delivered at today’s 2004 Annual General Meeting. Also attached is a presentation which will be delivered at the meeting. A copy of this presentation will be posted on the Perilya website at www.perilya.com.au. Yours faithfully PERILYA LIMITED JOHN TRAICOS Company Secretary Attachment PERILYA LIMITED ABN 85 009 193 695 Level 2, 31 Ventnor Avenue, West Perth, Western Australia 6005 PO Box 1787, West Perth, Western Australia 6872 Telephone: 61 8 9423 1700, Facsimile: 61 8 9423 1787, Email: perilya@wt.com.au, Website: www.perilya.com.au
PERILYA LIMITED (ABN 85 009 193 695) CHAIRMAN'S ADDRESS TO THE ANNUAL GENERAL MEETING OF SHAREHOLDERS OF PERILYA LIMITED HELD AT THE FUNCTION ROOM, CELTIC CLUB 48 ORD STREET, PERTH, WESTERN AUSTRALIA ON FRIDAY 22 ND OCTOBER 2004 AT 2.00 P.M. Ladies & Gentlemen I am delighted to deliver my Chairman’s Address to you this afternoon and I am delighted because, at Perilya Limited, we have made some significant progress over the last financial year towards building a strong, diversified and sustainable Australian resource company. There are 4 major steps that have contributed towards this progress. Firstly, we have completed our first full production year at the Broken Hill Mine and, in doing this, now have a better understanding of the operations. Secondly, we have secured the right to buy the Daisy-Milano Gold Mine south of Kalgoorlie. This mine is expected to be our next producing operation. Thirdly, we continue to manage our investment portfolio and develop our exploration projects. Finally, with our investment in Strike Oil Limited and Comet Ridge Limited, we have a stake in the Australian energy sector. It has been a difficult year and most of you will know that. But we have kept our focus and made some hard decisions. We have accumulated a group of assets which we are certain will ensure that our future years will be very much better. To begin with, Broken Hill. At Australia’s oldest and one of its best-known mines, we have been busy. Not long after we acquired the project, we commenced an underground equipment replacement programme. This is now completed and our mining productivity has steadily improved. We have also simplified the concentrator to improve recoveries and concentrate quality. Despite these initiatives, the South Mine at Broken Hill, which has provided 95% of the ore, has not performed to the level desired. Our improving operating performance was hurt by several independent and isolated events, such as a skip jam in the haulage shaft and a significant seismic event in the 16 level A Lode stope. We lost production and that loss affected both costs and revenue. As a result, we have reviewed our Broken Hill project and, with the added experience of having operated the mine for two years, have made the decision to reduce the reliance on the South Mine. The mining rate has been dropped from 2.3 million to 1.8 million tonnes per year. We have partially offset this reduction by increasing production at the higher grade North Mine. Our plan to get the Potosi resource into production is continuing. We are working through the necessary regulatory approvals to commence development. When on line, Potosi can provide a third ore source at Broken Hill.
In conjunction with the change in the production profile, we continue to implement cost and efficiency improvements. Our objective is simply to improve cash generation and we will do this by increasing head grade and reducing operating costs. We will carry out this process without compromising the health and safety of our employees or in any way damaging the environment. The Broken Hill operation is an important part of our strategy. It has a tremendous asset base to grow Perilya. To my second significant step, Daisy-Milano. At Daisy-Milano we have carried out a surface diamond drill programme to test the orebody below the existing workings. We commenced development of the decline from the existing 6 level, with the aim of developing a new 12 level ore drive by December 2004. If this development confirms our diamond drilling results, and we expect it to, our plan is to take up the option to purchase in the New Year. We are optimistic about the future value of this project to Perilya’s financial well being. My third point, exploration projects and asset portfolio. Exploration and evaluation at our operations and across our portfolio of base metal and gold assets returned success. We are making progress to bring our Flinders zinc oxide project into production early next year and have some exciting gold assays from drill results at our Honeymoon Well Joint Venture near Wiluna. Perilya shareholders have exposure to a wide range of gold, silver, lead, zinc, copper, nickel, oil and gas projects. This is because we have had, for a long time, a strategy of acquiring projects with strong growth potential during cyclical lows in the mining industry. Similarly, during market highs, we are equally happy to sell non core holdings. This strategy is now bearing fruit. Perilya is asset-rich at a time when asset prices are rapidly increasing. We have the potential within this portfolio for substantial growth in shareholder value. We do not buy-and-sit or sell-and-forget our assets and investments. We continue to actively manage them. We recently increased our interest to 100% in the promising Mount oxide copper project in Queensland, for example, and we sold our shares in Independence Group to add $29 million to our treasury. Most significantly, we continue our stake in the energy sector. We hold 20% of Strike Oil Limited, which listed on the Australian Stock Exchange two months ago, and 16% of Comet Ridge Limited. As a result, our shareholders have significant exposure to the Australian oil and gas sector at a time of near record oil prices. We have high hopes of success with these investments. Turning to Board matters. Following the 2003 Annual General Meeting, Colin McIntyre took on the role of acting Chairman and in May 2004, I was appointed Chairman. Barry Cahill, Operations Director, resigned from the Company and the Board in March 2004. We would like to acknowledge Barry’s contribution to the Company, particularly for his role in directing the commissioning of the Broken Hill Operations. We would like to acknowledge the dedication and hard work of our employees throughout the year. They have done a sterling job. Their contribution and continuing commitment to maintaining our core values are vital factors in delivering Perilya’s high performance. As I said at the start, I was delighted to be delivering my Chairman’s Address to you this afternoon. We have made progress. During the year Perilya made $12.9 million profit. We have a sound balance sheet. We have good projects and great prospects. I believe we are on the way to becoming a strong, diversified and sustainable Australian resource company.
Click to edit Master title style 2004 ANNUAL GENERAL MEETING S lide 1
The Board - Introductions Phil Lockyer CHAIRMAN Tim Clifton MANAGING DIRECTOR Colin McIntyre NON- EXECUTIVE DIRECTOR Guy Travis NON- EXECUTIVE DIR ECTOR Peter Harley NON- EXECUTIVE DIRECTOR J ohn Traicos COMPANY SECR ETARY S lide 2
Today’s proceedings Chairman’s address Formal business Presentation on Perilya’s mining and exploration activities Questions Refreshments 2004 S lide 3
Chairman’s address Perilya is asset rich at a time when asset prices are rapidly increasing. We have the potential, within this portfolio for substantial growth in shareholder value. S lide 4
Resolutions ! Financial Report for year ended 30 J une 2004 ! Re- election of Mr Guy Travis ! Election of Mr Phil Lockyer ! Election of Mr Peter Harley S lide 5
lide 6 S GENERAL MANAGER BROKEN HILL Barry Mitchell
lide 7 S Broken Hill
Geological Ore Reserve – Long Section SOUTHERN NORTH MINE POTOSI OPERATIONS Surface Resource 1.6Mt 12.7% Pb, 2.8% Zn Reserve 11.5M t Reserve 4.1% Pb, 7.8% Zn 190K t Lease Boundary 6.9% Pb, 7.2% Zn Total Resource 21.1M t 0 1 2 5.7% Pb, 10.2% Zn km S lide 8
Long Section – Production Areas Freeman's Shaft Portal Service / Haul Shaft Southern Cross Shaft S lide 9
lide 10 Sep-04 Aug-04 Southern Operations - Production Profile - July 2002 - September 2004 S Jul-04 Jun-04 May -04 Apr-04 Production Tonnage Profile Mar-04 Feb-04 Jan-04 Dec -03 Nov -03 Oc t-03 Sep-03 Months Aug-03 Ton nes Jul-03 Jun-03 May -03 Apr-03 Mar-03 Feb-03 Jan-03 Dec -02 Nov -02 Oc t-02 Sep-02 Aug-02 Jul-02 250,000 200,000 150,000 100,000 50,000 0 Total Tonnes
Safety LTI, MTI and TRI Stats Ending September 2004 17 40.0 16 15 35.0 14 Number of Incidents 13 30.0 Frequency Rates 12 11 25.0 10 9 20.0 8 7 15.0 6 5 10.0 4 3 5.0 2 1 - - Oct-03 Nov-03 D ec-03 Jan-04 Feb-04 Mar-04 Apr-04 M ay-04 Jun-04 Jul-04 Aug-04 Sep-04 LTI MTI TRI LTIFR M TI FR TRIFR S lide 11
Recommend
More recommend
