30th Jan 2009 07:11
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ALBIDON LIMITED |
Level 1 |
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62 Colin St |
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West Perth 6005 Western Australia ARBN 107 288 755 Tel:+6189211 4600 Fax: +6189211 4699 Email:[email protected] ASX Code: ALB AIM Code: ALD |
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30 January 2009
QUARTERLY ACTIVITIES REPORTFor the period ended 31 December 2008
Munali Nickel Project, Zambia
Albidon Limited 100%
Summary production statistics from the Company's Munali Nickel Project are included in the following table:
|
Dec Qtr |
YTD |
||
|
Mined ore |
dmt |
85,562 |
270,376 |
|
Ni grade |
% |
0.72 |
0.56 |
|
Mill feed |
dmt |
116,689 |
265,783 |
|
Ni grade |
% |
0.59 |
0.56 |
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Bulk concentrate |
dmt |
4,991 |
10,911 |
|
Ni grade |
% |
7.27 |
6.88 |
|
Contained Ni in concentrate |
dmt |
363 |
751 |
Operational highlights for the quarter included:
Mining during the quarter was affected by the unreliability of underground mining equipment and lack of critical spares on a timely basis. This impacted development requiring lower grade/high MgO stopes to be accessed rather than the planned higher grade/lower MgO stopes.
Milling operations were impacted by the lower than expected ore feed tonnages and higher MgO content. This impacted overall recoveries and the quality of bulk concentrate production. By-product credits have been higher than anticipated.
From a safety perspective, the Munali Nickel Project reached 1 million man-hours worked without a lost time injury.
On 20 January 2009 the Company announced that it has introduced a new mine plan which has seen the suspension of development of the Northern Decline and the accelerated development of the Southern Decline. Please refer to that announcement for the impact of the revised mine plan on the Munali Nickel Project.
Nickel Projects, Tanzania
Songea JV
Albidon Limited 100%, currently funded and operated by BHP Billiton to earn an initial 30% interest under the Africa Exploration Co-operation Agreement
Drilling on the Songea JV with BHP Billiton is waiting on drilling permits. The 3000m drill program has been postponed until the second half of 2009. No significant work was performed in the quarter.
IIagala Project
Albidon Limited 100%
The first two applications at IIagala were approved by the Ministry. JOGMEC has indicated an interest in funding the project to earn a majority interest and discussions are ongoing.
The license area lies between the Xstrata Kabanga nickel project and Goldstream's Mibango Cu-Ni PGM prospect on Lake Tanganyika in northeast Tanzania. Soil survey programs are being planned to follow-up historical reports of nickel and copper in soil greater than 150ppm Ni and 150ppm Cu over 10 kilometres of strike length with highs up to 3000ppm Ni and 1000ppm Cu.
Nickel Projects, Botswana
Selebi-Phikwe Nickel-Copper Project
Albidon Limited 100%
Field follow-up on the VTEM anomalies at the Selebi-Phikwe project in Botswana, showed the majority of conductors to be explained by banded iron formation and hematite within the stratigraphy.
The Sunnyside West area remains a potential drill target based on the presence of an IP conductor, Ni and Cu in soils and the presence of dunite.
IAMGOLD Maitengwe JV, Botswana
Ground EM and soil sampling was completed over the Maitnegwe greenstone target. No conductors were identified and no nickel targets were generated from the soil programme.
Zinc Projects, Tunisia
Fernana-Nefza Zinc-Lead and Copper-Gold Project
Albidon Limited 100% diluting to 30%, funded and operated by Zinifex Limited under an option and farm-in agreement
Drilling in the quarter on the Khatkhada prospect, within the Bou Aouane District, intersected 44.9 meters of low grade zinc @ 2.64% Zn from 7.5 meters.
Initial drilling in March 2008 intersected 8.1m @ 11.7% Zn from 21m within the same Khatkhada prospect and the latest drilling confirms the prospectivity of the area for a small open pit resource.
All drilling is completed for the year. Significant intercepts for the quarter include:
|
Khatkhada |
BADD016 |
7.5m |
51.4 |
43.9 |
2.64%Zn |
*0.5% Zn cutoff
Corporate
The cash position at 31 December 2008 was US $8.1 million.
Albidon secured US$16 million in funding and US$5 million in subordinated debt conversion during the quarter.
The Company entered into a Subscription Agreement to place 19,469,750 shares at A$0.40 (or US$0.26) per share to Jinchuan Group Limited (Jinchuan) to raise US$5 million.
The Company and Jinchuan also entered into a Conversion Agreement to convert US$5 million of subordinated debt by issuing 10,000,000 ordinary shares at $A0.78 (or US$0.50) per share thereby reducing the Company's subordinated debt to US$15 million.
The Company entered into two subscription agreements with funds managed by a large UK based equity fund. A total of 15,575,800 shares were issued at A$0.40 (or US$0.26) per share to raise US$4 million (A$6.2 million).
The Company closed out it nickel hedge positions on the 22 September 2008 realising US$50 million in proceeds at the beginning of the quarter. The proceeds were used to decrease senior debt from US$80 million to US$40 million and settle senior debt interest and fees (approximately US$3 million), with the balance of approximately US$7 million being made available for working capital at the Munali Nickel Project.
Paul Chapman
Joint Managing Director
Full details for all projects including location maps, tenement schedules and technical descriptions may be found on the Albidon website at www.albidon.com
The Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the 'JORC Code') sets out minimum standards, recommendations and guidelines for Public Reporting in Australasia of Exploration Results, Mineral Resources and Ore Reserves. The information contained in this announcement has been presented in accordance with the JORC Code and references to "Indicated" and "Inferred Resources" are to those terms as defined in the JORC Code.
Information in this report relating to exploration results is based on data compiled by John Schloderer (a full time employee of Albidon), a member of The Australasian Institute of Mining and Metallurgy. Mr. Schloderer has sufficient experience, which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking, to qualify as a Competent Person under the 2004 Edition of the Australasian Code for reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr. Schloderer consented to the inclusion of the data in the form and context in which it appears.
If you have any queries please contact the Chief Financial Officer, Len Troncone on +61 8 9211 4600 or email lent@albidon.com.
Albidon's nominated adviser is RFC Corporate Finance Ltd, contact Steve Allen +61 8 9480 2500.
Appendix 5B
Mining Exploration Entity Quarterly Report
Introduced 1/7/96. Origin: Appendix 8. Amended 1/7/97, 1/7/98, 30/9/2001.
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Name of entity |
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ALBIDON LIMITED |
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ARBN |
Quarter ended ("current quarter") |
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107 288 755 |
31 December 2008 |
Consolidated statement of cash flows
|
Cash flows related to operating activities |
Current quarter US$'000s |
Year to date US$'000s |
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|
1.1 |
Receipts from product sales and related debtors |
54,293 |
54,293 |
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1.2 |
Payments for: administration development production exploration and evaluation |
(725) (2,437) (10,158) (1,046) |
(5,412) (26,889) (14,248) (4,270) |
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1.3 |
Dividends received |
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1.4 |
Interest and other items of a similar nature received |
77 |
402 |
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1.5 |
Interest and other costs of finance paid |
(2,399) |
(4,216) |
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1.6 |
Income taxes paid |
- |
- |
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1.7 |
Other (provide details if material) |
8 |
10 |
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Net Operating Cash Flows |
37,613 |
(330) |
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Cash flows related to investing activities |
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1.8 |
Payment for purchases of: prospects equity investments other fixed assets |
(759) - (9,404) |
(1,206) - (59,528) |
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1.9 |
Proceeds from sale of: (a) prospects (b) equity investments (c) other fixed assets |
- - _ |
- - 2 |
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1.10 |
Loans to other entities |
- |
- |
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1.11 |
Loans repaid by other entities |
- |
- |
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1.12 |
Recognition of Security Deposits as Cash |
- |
- |
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Net investing cash flows |
(10,163) |
(60,732) |
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1.13 |
Total operating and investing cash flows (carried forward) |
27,450 |
(61,062) |
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1.13 |
Total operating and investing cash flows (carried forward) |
27,450 |
(61,062) |
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Cash flows related to financing activities |
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1.14 |
Proceeds from issues of shares, options, etc. |
9,082 |
29,862 |
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1.15 |
Proceeds from sale of forfeited shares |
- |
- |
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1.16 |
Proceeds from borrowings |
64,001 |
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1.17 |
Repayment of borrowings |
(40,000) |
(40,000) |
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1.18 |
Dividends paid |
- |
- |
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1.19 |
Cost of share issue |
(210) |
(244) |
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Net financing cash flows |
(31,128) |
53,619 |
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Net increase (decrease) in cash held |
(3,678) |
(7,443) |
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1.20 |
Cash at beginning of quarter/year to date |
11,753 |
16,614 |
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1.21 |
Exchange rate adjustments to item 1.20 |
0 |
(1,096) |
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1.22 |
Cash at end of quarter |
8,075 |
8,075 |
Payments to directors of the entity and associates of the directors
Payments to related entities of the entity and associates of the related entities
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Current quarter US$'000s |
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1.23 |
Aggregate amount of payments to the parties included in item 1.2 |
222 |
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1.24 |
Aggregate amount of loans to the parties included in item 1.10 |
- |
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1.25 |
Explanation necessary for an understanding of the transactions |
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Salaries and Directors fees paid to Executive and Non-Executive Directors of the Company, for the period aggregated US$123,847. Administrative and technical services provided by Mitchell River Group Pty Ltd, a company in which Mr. A Cooke is a Director, for the period aggregated US$69,602. Executive services provided by Hartree Pty Ltd, a company in which Mr. A Cooke is a director, for the period aggregated US$16,335. Consultancy fees and reimbursements of bona fide expenses provided by Mineral Commerce Services, a company in which Mr C DeGuingand is a director, for the period aggregated US$30,267. |
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Non-cash financing and investing activities
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2.1 |
Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows |
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At a General Meeting on the 18 December 2008 shareholders approved the conversion of US$5 million of subordinated debt by issuing 10,000,000 shares at US$0.50 to Jinchuan Group Limited. |
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2.2 |
Details of outlays made by other entities to establish or increase their share in projects in which the reporting entity has an interest |
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Nil |
Financing facilities available
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Amount available US$'000s |
Amount used US$'000s |
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3.1 |
Loan facilities Secured Lenders Subordinated Lenders Leased Equipment |
40,000 15,000 18,000 |
40,000 15,000 12,000 |
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3.2 |
Credit standby arrangements |
- |
- |
Estimated cash outflows for next quarter
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US$'000s |
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4.1 |
Exploration and evaluation |
0 |
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4.2 |
Development |
0 |
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Total |
0 |
Reconciliation of cash
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Reconciliation of cash at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts is as follows. |
Current quarter US$'000s |
Previous quarter US$'000s |
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5.1 |
Cash on hand and at bank |
1,661 |
3,643 |
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5.2 |
Deposits at call |
6,174 |
7,166 |
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5.3 |
Bank overdraft |
- |
- |
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5.4 |
Term deposits |
240 |
944 |
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Total: cash at end of quarter (item 1.22) |
8,075 |
11,753 |
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Changes in interests in mining tenements
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Tenement reference |
Nature of interest (note (2) |
Interest at beginning of quarter |
Interest at end of quarter |
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6.1 |
Interests in mining tenements relinquished, reduced or lapsed |
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6.2 |
Interests in mining tenements acquired or increased |
Issued and quoted securities at end of current quarter
Description includes rate of interest and any redemption or conversion rights together with prices and dates.
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Total number |
Number quoted |
Issue price per security (see note 3) |
Amount paid up per security (see note 3) |
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Total number |
Number quoted |
Issue price per security (see note 3) |
Amount paid up per security (see note 3) |
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7.1 |
+ Preference securities (description) |
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7.2 |
Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy-backs, redemptions |
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7.3 |
+Ordinary securities |
210,206,452 |
210,206,452 |
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7.4 |
Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy-backs |
15,575,800 10,000,000 19,469750 |
15,575,800 10,000,000 19,469,750 |
US$0.26 US$0.50 US$0.26 |
US$0.26 US$0.50 US$0.26 |
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7.5 |
+Convertible debt securities (description) |
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7.6 |
Changes during quarter (a) Increases through issues (b) Decreases through securities matured, converted |
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7.7 |
Options (description and conversion factor) |
6,242,667 |
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7.8 |
Issued during quarter |
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7.9 |
Exercised during quarter |
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7.10 |
Expired during quarter |
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7.11 |
Debentures (totals only) |
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7.12 |
Unsecured notes (totals only) |
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Compliance statement
1 This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Act or other standards acceptable to ASX (see note 4).
2 This statement does give a true and fair view of the matters disclosed.
Sign here:
Office held: Director
Print name: Paul Chapman
Date: 30/01/2009
Notes
1 The quarterly report provides a basis for informing the market how the entity's activities have been financed for the past quarter and the effect on its cash position. An entity wanting to disclose additional information is encouraged to do so, in a note or notes attached to this report.
2 The "Nature of interest" (items 6.1 and 6.2) includes options in respect of interests in mining tenements acquired, exercised or lapsed during the reporting period. If the entity is involved in a joint venture agreement and there are conditions precedent which will change its percentage interest in a mining tenement, it should disclose the change of percentage interest and conditions precedent in the list required for items 6.1 and 6.2.
3 Issued and quoted securities: The issue price and amount paid up is not required in items 7.1 and 7.3 for fully paid securities.
4 The definitions in, and provisions of, AASB 1022: Accounting for Extractive Industries and AASB 1026: Statement of Cash Flows apply to this report.
5 Accounting Standards: ASX will accept, for example, the use of International Accounting Standards for foreign entities. If the standards used do not address a topic, the Australian standard on that topic (if any) must be complied with.
== == == == ==
Related Shares:
ALD.L