Stirling Resources Limited (ASX:SRE)
Perth, May 28, 2009 AEST (ABN Newswire) - Stirling Resources Limited (ASX:SRE) provide the Chairman's address at the Annual General Meeting (AGM) on the 27 May 2009.
Ladies and gentlemen, because this meeting is procedural in nature, I don't intend to make any formal presentation today.
I will, however, briefly tell you about our vision for the Company's future. Our strategy has been clearly announced previously, and is available on the Company's website. Stirling's intention is to be a holding company, with an equity holding of approximately 40% in several listed entities and covering several different commodities.
We have chosen copper as our first commodity and Redbank Mines Limited as the first one of the subsidiaries. We believe that copper prices will be higher next year, fuelled to a large extent by urbanisation of China and subsequent demand on construction. The same urbanisation, in our opinion, will drive a strong demand for zircon, which is used in the manufacture of tiles and porcelain. We believe that gold will also hold its price, and not only as a perceived safe haven but also for jewellery manufacture in the newly opened Chinese markets. The other two commodities we will be targeting are coal and iron ore. The five commodities I just mentioned will form a balanced portfolio where the changes in commodity prices will be offset and earnings per share remain stable(1).
Our intention is for each subsidiary to distribute 50% of any profits to its shareholders. Stirling's income will come from these dividends which will mean that from every A$1 of profit generated by the subsidiary, 20cents will be distributed to Stirling as a dividend (based on a 40% shareholding). Stirling will then distribute 75% of its profits to our shareholders(2).
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(1) These are simply statements of Stirling's current beliefs based on currently available market and economic information. These statements are not forecasts and should not be relied upon by investors without undertaking your own independent investigations and analysis and seeking appropriate advice.
(2) This is simply Stirling's current intention. Investors should be aware that there is no guarantee that these outcomes will be achieved. In addition, there is no guarantee that Stirling or any of the relevant subsidiaries will be profitable.
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We are making steady progress towards our goal of becoming a copper, zircon, coal, gold and iron ore producer. We have an executive team in place with considerable resource experience and a track record of creating significant shareholder value. We have also established strong strategic partnerships with DCM DECOmetal, a global commodity marketer and a now a major shareholder of the company and with NMDC, a major Indian resource enterprise.
- Through our investment in Redbank Mines Limited, we have accessed a large copper resource and with a new mine scoping study being finalized, we expect to be in production in the first quarter of 2010. In addition, we have significant exciting exploration opportunities across large landholdings for copper and uranium. With a A$4.3million capital raising successfully finalized, we are in a perfect position to exploit these opportunities and have committed to a A$2.5million exploration program, already underway.
- We are also well underway to becoming a zircon producer and achieve our aim of building up production of zircon concentrate, over the next five years, to the equivalent of 50,000 tonnes per annum. We have recently completed a A$10million commercial bond; the funds are used to finalize the acquisition of mineral sands assets from Matilda Minerals, recommence mining at the Tiwi Islands zircon project, undertake a significant exploration program on the highly prospective Cape York tenements and provide funding for Olympia Resources, of which we will initially own 82%.
Contact
Michael Kiernan
Managing Director
Tel: +61-8-6389-6800
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