MRX 0.00% 0.7¢ matrix metals limited

still more volume

  1. 3,582 Posts.
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    Another 4m today.

    The copper price is moving in the right direction and there should be results shortly from drilling @ Mt Cuthbert. They are drilling White Range atm.

    Here is the Chairman's address from the recent AGM. Hope this helps:


    HOMEX - Perth


    For the 3rd Annual General Meeting of Matrix Metals Limited to be
    held at The Celtic Club, 48 Ord Street, West Perth WA 6005 on Friday
    22 November 2002 commencing at 11.00 am.

    Good morning ladies and gentlemen. Welcome to the third Annual
    General Meeting of Matrix Metals Limited It being 11:00 am and the
    necessary quorum being present, I now declare this annual general
    meeting of Matrix Metals Limited open.

    My name is David Humann and I am the Chairman of your Board of

    I should like to introduce my fellow Director who is present on my
    right, Mr Andrew Chapman, our Managing Director and Chief Executive

    I should also like offer the apologies of our two other Directors Mr
    Gregory A Hahn and Mr J Christopher Mitchell, representatives of
    Constellation Copper Corporation, who because of the distance from
    their base in Denver, Colorado, cannot be with us today Mr Hahn and
    Mr Mitchell take a close interest in the affairs of your Company and
    they visited the mine and exploration sites in Queensland in October
    this year to review our plans and strategy.

    I should also like to introduce our Company Secretary and Chief
    Financial Officer, Mr Shane McBride.

    We have with us today Mrs Alison Kitchen a partner of KPMG, Perth,
    who is our auditor. Mrs Kitchen is available to answer any questions
    you may have concerning the financial statements and auditors' report
    on the Company's financial affairs.

    We also have Mr Roger Davies our legal representative from Blake
    Dawson Waldron.

    As discussed in my Chairman's letter included in the 2002 Annual
    Report the World economy was in a subdued state during the year and
    these conditions still prevail.

    Copper prices were at historic lows for half the year at around US 58
    cents per pound. In recent times the price has recovered to a range
    of US 65 to 70 cents per pound. At these prices coupled with the
    prevailing production throughput rate, the Mount Cuthbert heap leach
    electrowinning operation is not economic.

    Because of these circumstances, in mid 2002 we had to re-focus onto
    four main strategies to advance the Company in future years.

    1. To raise more capital to provide adequate funds to develop and
    sustain our company.

    2. To commence intense exploration programmes at the Mount Watson and
    White Range areas, with a view to substantially increasing copper ore
    resources and reserves.

    3. Restart operations at Mt Cuthbert/Mt Watson at an increased
    production throughput rate which will provide economics of scale and
    enable the operation to be profitable even at current copper prices.

    4. To increase the resources and reserves at the White Range project
    and bring it into production at an economic production rate.

    in regard to the recently completed capital raising, you will have
    read in the Directors Report Contained in the 2002 Annual Report that
    we announced a pro-rata rights issue entitlement to all shareholders
    in July 2002. The issue was underwritten by Hartley's Limited and was
    completed, fully subscribed on 5th September 2002, raising
    $8,252,732, before applying costs of the issue.

    I would like to thank our shareholders and Hartley's for supporting
    the issue and ensuring its success. It should also be acknowledged
    that Constellation Copper Corporation, our major shareholder,
    contributed $3,000,000 in new cash to this rights issue.

    This, together with the conversion of the Constellation Copper
    Corporation loan of A$3,250,000 (US$1,673,900) into ordinary shares
    which were issued at A$0.16 per share, has eliminated all debt and
    provided sufficient funds to carry out comprehensive exploration
    programmes. It should be noted that this loan conversion was
    completed at three and a half times the rights issue price. The fund
    raising and debt conversion has greatly strengthened our balance
    sheet and our financial ability to carry out effective exploration
    and pre-development programmes.

    Our producing copper mine at Mt Cuthbert suspended production in late
    2002, however, as I have explained this is only a temporary measure
    pending determination of results of planned exploration programmes
    and upgrading of the plant. The results of exploration programmes to
    date as published in our quarterly reports are very encouraging and
    we have reported a doubling of the Mount Watson reserve to 1.6
    million tonnes grading 1.1% copper.

    We will keep you informed on the progress of our exploration
    programmes and provide news of the recommencement of copper
    production which, subject to all vagaries of the market, is targeted
    to occur during 2003 at the increased production rate.

    Another item of good news was the completion on 28 October 2002 of an
    Indigenous Land Use Agreement ("ILUA") with the Kalkadoon people for
    the granting of mining leases at the Mount Watson and Mount Cuthbert
    areas. This is the result of nearly three years intensive effort by
    your managing director and is a unique achievement in Queensland. We
    only achieved this by exhibiting respect for the people involved. We
    listened to them, kept them fully informed and agreed to provide
    work, education and commercially based outcomes. We kept the legal
    process to a minimum and relied on the relationship to achieve this
    very important result.

    This ILUA agreement has unlocked significant value for your Company.

    In Summary, we now have a company with a strong balance sheet, no
    debt, cash in the bank and a clear strategy of focussed exploration
    which is targeted to lead to increased resources and reserves and a
    return to copper production at an increased rate within the
    foreseeable future. We have a proven production process and the
    advantage of producing London Metals Exchange premium quality copper
    on site. Our delivery and marketing structure is well established and
    this will enable prompt conversion of copper produced into cash from

    In closing I would like to thank our advisers, underwriters and in
    particular the hard working and enthusiastic staff for their
    endeavours during the year.

    We now have, a sound basis for achieving our objective of becoming a
    medium sized and profitable copper producer. A force to be reckoned

    D I Humann
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