Strike Resources Limited · ASX:SRK
Strike Resources — Shareholder Meeting (November 2012)
26 slides from Strike Resources's shareholder meeting presentation, Nov 22, 2012
Slide 1: Strike Resources Limited 2012 Annual General Meeting
For personal use only Strike Resources Limited 2012 Annual General Meeting ASX CODE: SRK November 2012
Slide 2: Disclaimer
Disclaimer For personal use only This material contains certain forecasts and forward-looking information, including regarding possible or assumed future performance, costs, production levels or rates, prices, reserves and resources or potential growth of Strike Resources, industry growth or other t
Slide 3: Meeting overview
For personal use only Meeting overview Chairman: Malcolm Richmond Managing Director: Ken Hellsten Directors: William Johnson Matthew Hammond Samantha Tough Company Secretary: Stephen Gethin Chief Financial Officer: Julian Tambyrajah Notice of AGM: 22 October 2012 Proxies Received:: 63 - representing
Slide 4: Agenda
For personal use only Agenda Chairman’s Address Managing Director’s Presentation Questions for the Managing Director Financial and Directors’ Reports Questions for the Auditor Resolutions 1 – 5 Close 4
Slide 5: Chairman's Address
For personal use only Chairman’s Address November 2012
Slide 6: Managing Director's Presentation
For personal use only Managing Director’s Presentation November 2012
Slide 7: Performance of Strike Resources relative to peers
For personal use only Performance of Strike Resources relative to peers 0.5 Mindax 0.4 Cazaly Ferrowest Legacy Golden West Share price (A$) 0.3 FairStar Venus Metals Jupiter 0.2 Royal Resources SAFM Sherwin Iron Iron Road 0.1 Ferrum Crescent Strike Resources 0.0 Nov 11 Jan 12 Mar 12 May 12 Jul 12 Se
Slide 8: Strong foundations established
For personal use only Strong foundations established 2011/12 Objectives Outcomes Board restructure completed with appointment of additional independent director BUSINESS #5 Establish sound “Lean and keen” technical and commercial business approach at AF by moving to stronger team established in
Slide 9: High quality Apurimac and Cusco Iron Ore
For personal use only High quality Apurimac and Cusco Iron Ore • Apurimac Iron Ore AF Apurimac Opaban Project • 590 km2 of concessions • 269 Mt @ 57.3% Fe at Opaban Cuervo Pictures here. • High-grade, coarse-grained, excellent metallurgy 1.132Mt @ 0.77% Cu • >500 Mt needed to support 15 – 20 Mtpa •
Slide 10: Excellent iron and Copper / gold potential
For personal use only Excellent iron and Copper / gold potential Opaban Nth, • Apurimac Iron Ore Ferrum, Cristoforo Magnetic • 590 km2 of concessions Target • Sillaccassa: two magnetic targets with ironstone Cuervo Colcabamba Pictures here. • Opaban North: 1 km magnetic target + 1.132Mt @ 0.77% Cu i
Slide 11: Cuervo – Bob drilling results
Cuervo – Bob 1 drilling results For personal use only 2 km of strike tested with results for central 800m • 100 – 200 m thick magnetite intersected on all sections • North-south orientation with moderate dips 45 – 60º to west • Open to north and Parco repetition highly prospective Pictures here. Dri
Slide 12: Community approvals – challenging, but improving
Community approvals – challenging, but improving For personal use only • Patience and trust building required, especially following previous AF “disappearance” • Andean community mistrust of outsiders and government authorities – feel abandoned • Southern Peru especially challenging due to Andahuayl
Slide 13: Apurimac Ferrum: status quo pathway
Apurimac Ferrum: SEPTEMBER 2012 For personal use only status quo pathway 2009 JUNE 2011 JUNE 2012 No D&C Top-up for AF D&C 32% D&C Top-up of AF SRK 2009 Settlement or IAC 68% After IAC Transaction Agreement IAC 12% D&C D&C SRK 44% SRK 50% 50% SRK 44% 56% D&C 44% D&C Top-up of US$30.8M to AF Dyer Cor
Slide 14: Apurimac Ferrum "Shoot-out"
Apurimac Ferrum “Shoot-out” only SRK gives Shoot- SRK prices bid Process out advice personal use March 2012 May 2012 June 2012 August 2012 October 2012 D&C receives approx. US$3.2M SRK 100% ForOutcomes D&C pays SRK D&C 44% SRK 56% D&C SRK US $1.9m for 50% 50% 6% AF D&C 100% SRK receives * Strike to
Slide 15: Shoot-out – current status and way forward
Shoot-out – current status and way forward For personal use only D&C has defaulted • Counter offer of US$27 M plus loan repayment not honoured • Purchase of SRK AF shares for US$100 plus repayment of loans not honoured Pictures here. Strike Response • Default provision triggered and partners’ shares
Slide 16: Beyond the Shoot-out – the way forward
Beyond the Shoot-out – the way forward For personal use only AF Projects are capital intensive and require significant patience SRK can fund in short term, but strong funding partner needed Pictures here. Resolve AF ownership – move to 100% ownership Commercial settlement or arbitrated resolution Pr
Slide 17: Formal Business
For personal use only Formal Business November 2012
Slide 18: Formal business
Formal business For personal use only Consider Financial Statements and Directors’ and Auditor’s Reports Resolutions: Pictures here. 1 Elect Samantha Tough as a Director 2 Re-Elect William Johnson as a Director 3 Approve Employee Long-Term Incentive Plan 4 Ratify Issue of Options to CFO 5 Adopt Remu
Slide 19: Resolution – Elect Samantha Tough as a Director
Formal business For personal use only Resolution 1 – Elect Samantha Tough as a Director Proxy Summary For Against Abstain Open Totals Pictures here. All Proxies 42,654,904 55,051 261,435 637,730 43,609,120 Chairman’s 22,387,213 55,051 261,435 602,730 23,306,429 Proxies 117Mt @ 1.15% Cu Pictures here
Slide 20: Resolution – Re-elect William Johnson as a Director
Formal business For personal use only Resolution 2 – Re-elect William Johnson as a Director Proxy Summary For Against Abstain Open Totals All Proxies 41,999,510 918,880 50,000 Pictures here. 640,730 43,609,120 Chairman’s 21,734,819 918,880 50,000 602,730 23,306,429 Proxies 20
Slide 21: Resolution – Approve Employee Long-Term Incentive Scheme
Formal business For personal use only Resolution 3 – Approve Employee Long-Term Incentive Scheme Proxy Summary For Against Abstain Open Totals All Proxies 26,007,927 231,021 41,640 Pictures here. 17,328,532 43,609,120 Chairman’s 22,434,038 228,021 41,640 602,730 23,306,429 Proxies 117Mt @ 1.15% Cu P
Slide 22: Resolution – Ratify Issue of Options to CFO
Formal business For personal use only Resolution 4 – Ratify Issue of Options to CFO Proxy Summary For Against Abstain Open Totals All Proxies 25,779,741 459,207 41,640 Pictures here. 17,328,532 43,609,120 Chairman’s 22,205,852 456,207 41,640 602,730 23,306,429 Proxies 117Mt @ 1.15% Cu Pictures here.
Slide 23: Resolution – Adopt Remuneration Report
Formal business For personal use only Resolution 5 – Adopt Remuneration Report Proxy Summary For Against Abstain Open Totals All Proxies 25,787,309 463,769 29,510 Pictures here. 17,328,532 43,609,120 Chairman’s 22,213,420 460,769 29,510 602,730 23,306,429 Proxies 117Mt @ 1.15% Cu Pictures here. 23
Slide 24: Thank you
For personal use only Thank you November 2012
Slide 25: Appendix – JORC Code Information
Appendix – JORC Code Information For personal use only Resource Breakdown AF Projects Project Classification Tonnes (Mt) Head Fe (%) Inferred 127.2 56.7 Apurimac Indicated 142 58 Cusco Inferred 104.4 32.6 The 68Mt DSO component of the Apurimac resource is comprised of a 27 Mt inferred resource at 61
Slide 26: Appendix – JORC Code Information (cont'd)
Appendix – JORC Code Information For personal use only Resource Breakdown (cont’d) Cerro Ccopane Project (Cuervo Resources, Inc) The resource estimate for Cuervo’s Orcopura prospect stands at 19.7 Mt at 48.3% Fe (measured resource), 35.9 Mt at 45.9% Fe (indicated resource) and 50.8 Mt at 43.7% (infe
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