2000 Annual Reports
Posted on 30/06/2000
Address by the Chairman
It is my pleasure to present to you the Annual Report for the year to 30 June 2000.
In a year that has seen a significant decline in exploration throughout the resource industry, particularly within the small company sector, the Company, through being well cashed up, has achieved a healthy exploration programme of some $2 million.
At Telfer, where Normandy Gold Pty Ltd is carrying the full cost of exploration to the end of this year, the Company, through the payment of $300,000 to Carpentaria Gold Pty Ltd has secured 100% equity over all the tenements in the joint venture. Once Normandy has earned 51% through the expenditure of $5 million, it will then leave the Company with 49%.
In addition, through the expenditure of a further $110,000, the Company has acquired some very prospective ground within the joint venture which was previously excised and it has also bought back the right to some of the potential royalties over further prospective ground in the joint venture.
Of the $2 million spent on exploration, roughly $1.4 million was spent in Western Australia, principally on the Tay and Mount Weld projects and $700,000 was spent on the Tsumkwe Diamond project in Namibia.
At the time of writing, both the Tay and Mount Weld projects have produced some interesting zones of anomalism for nickel and gold respectively. Both of these projects are going to require further follow up work to determine their direction from here.
At Tsumkwe in Namibia, the Company has had some very encouraging results from its diamond exploration joint venture with Kimberlite Resources Pty Ltd. In terms of our agreement, the Company can earn up to 75% of this project. After eighteen months of being involved with this project the Company is at a stage where at the time of releasing this report it will be drilling, or will be very close to drilling, potential kimberlite targets.
At Telfer, Normandy has developed a sound technical approach towards exploration, particularly designed for this Proterozoic environment. The consistent application of this approach has resulted in successfully delineating a number of high priority targets which are currently in the process of being tested.
In September 1999, the Company decided to take advantage of the low level of market interest in the resource sector by embarking upon a 10/12 buyback of its shares on the open market. In so doing, it has reduced the level of the Company’s issued share capital by some 8% at prices which at the time of purchase were little above cash backing.
Since the end of the financial year the Company has seen a change to the Board of Directors. Mr Jenkins who has been with the Company since 1991 has resigned and Mr Ronald O’Regan has been appointed in his stead.
I should like to thank Mr Jenkins for his contribution to the Company over the past nine years and welcome Mr O’Regan to the Board.
Mr O’Regan is a member of the London Stock Exchange and Compliance Director of Astaire & Partners, a firm of London stockbrokers. He has maintained a keen interest in the Company since it listed in 1985 and will bring a wealth of corporate experience to the Board.
Finally, I should like to thank my fellow directors and all staff for their commitment to the Company during the year.
N R FORRESTER
CHAIRMAN
In a year that has seen a significant decline in exploration throughout the resource industry, particularly within the small company sector, the Company, through being well cashed up, has achieved a healthy exploration programme of some $2 million.
At Telfer, where Normandy Gold Pty Ltd is carrying the full cost of exploration to the end of this year, the Company, through the payment of $300,000 to Carpentaria Gold Pty Ltd has secured 100% equity over all the tenements in the joint venture. Once Normandy has earned 51% through the expenditure of $5 million, it will then leave the Company with 49%.
In addition, through the expenditure of a further $110,000, the Company has acquired some very prospective ground within the joint venture which was previously excised and it has also bought back the right to some of the potential royalties over further prospective ground in the joint venture.
Of the $2 million spent on exploration, roughly $1.4 million was spent in Western Australia, principally on the Tay and Mount Weld projects and $700,000 was spent on the Tsumkwe Diamond project in Namibia.
At the time of writing, both the Tay and Mount Weld projects have produced some interesting zones of anomalism for nickel and gold respectively. Both of these projects are going to require further follow up work to determine their direction from here.
At Tsumkwe in Namibia, the Company has had some very encouraging results from its diamond exploration joint venture with Kimberlite Resources Pty Ltd. In terms of our agreement, the Company can earn up to 75% of this project. After eighteen months of being involved with this project the Company is at a stage where at the time of releasing this report it will be drilling, or will be very close to drilling, potential kimberlite targets.
At Telfer, Normandy has developed a sound technical approach towards exploration, particularly designed for this Proterozoic environment. The consistent application of this approach has resulted in successfully delineating a number of high priority targets which are currently in the process of being tested.
In September 1999, the Company decided to take advantage of the low level of market interest in the resource sector by embarking upon a 10/12 buyback of its shares on the open market. In so doing, it has reduced the level of the Company’s issued share capital by some 8% at prices which at the time of purchase were little above cash backing.
Since the end of the financial year the Company has seen a change to the Board of Directors. Mr Jenkins who has been with the Company since 1991 has resigned and Mr Ronald O’Regan has been appointed in his stead.
I should like to thank Mr Jenkins for his contribution to the Company over the past nine years and welcome Mr O’Regan to the Board.
Mr O’Regan is a member of the London Stock Exchange and Compliance Director of Astaire & Partners, a firm of London stockbrokers. He has maintained a keen interest in the Company since it listed in 1985 and will bring a wealth of corporate experience to the Board.
Finally, I should like to thank my fellow directors and all staff for their commitment to the Company during the year.
N R FORRESTER
CHAIRMAN
