Quarterly Report 30 June 03
18 Julho 2003 - 5:02AM
UK Regulatory
RNS Number:7035N
Portman Ld
18 July 2003
PORTMAN LIMITED
A.B.N. 46 001 892 995
Level 11, The Quadrant
1 William Street
Perth, Western Australia. 6000
GPO Box W2017, Perth. 6846
Telephone: (08) 9426 3333
Facsimile: (08) 9426 3344
18 July 2003
Electronically Lodged
(13 pages in total)
The Announcements Officer
Australian Stock Exchange (Sydney) Limited
Level 10
20 Bond Street
SYDNEY NSW 2000
Dear Sir
QUARTERLY REPORT FOR THE PERIOD ENDED 30 JUNE 2003
Please find attached Portman's Quarterly Report for the period ended 30 June
2003.
Yours sincerely
G T Clifford
COMPANY SECRETARY
PORTMAN LIMITED
A.B.N. 22 007 871 892
18 July 2003
QUARTERLY REPORT FOR THE PERIOD ENDED
30 June 2003
HIGHLIGHTS
Corporate
* All WA State environmental, heritage and ground disturbance
applications have been approved for the development of the Koolyanobbing
Northern Tenements.
* The only remaining approvals required are Federal heritage and
environmental clearances (for the Windarling W3 deposit). It is anticipated
that the remaining approvals will be forthcoming in the near future.
Koolyanobbing
* A 9% increase in benchmark prices and continued strong demand to
underpin second half sales.
* Development of the high phosphorous fines market continued with the
first sale of a Capesize cargo to a Chinese customer and an additional sale to a
Japanese customer.
* Production and shipments on budget for first 6 months.
* Exploration continues on the Koolyanobbing leases with promising
intersections at B, C and F deposits characterised by high Fe and low
impurities.
Cockatoo Island
* Second quarter operations reduced pending completion of technical
review.
PORTMAN LIMITED
A.B.N. 22 007 871 892
18 July 2003
QUARTERLY REPORT FOR THE PERIOD ENDED
30 June 2003
1.0 CORPORATE
Northern Tenement Approvals - Koolyanobbing
All WA State environmental, heritage and ground disturbances applications have
now been approved for the development of the Northern Tenements at
Koolyanobbing. The only remaining approvals required are heritage and
environmental clearances for work at the Windarling W3 deposit from Environment
Australia in Canberra. These Federal government approvals are expected in the
near future.
Initial activity on the Northern Tenements will be a water exploration program
for haul road construction and the resumption of an exploration program at
Windarling and Mt Jackson. It is likely that both of these activities will
commence during July 2003.
2.0 PORTMAN IRON ORE
2.1 Koolyanobbing Project
Production and shipments for the quarter and year to date were as
follows:
Actual Actual Actual
June Qtr 2003 YTD 2003 June Qtr 2002
Koolyanobbing Iron Ore Project
Tonnes
Ore Mined 1,606,799 2,682,289 1,117,708
Ore Processed - Lump 547,909 1,119,042 506,705
Ore Processed - Fines 667,234 1,305,848 613,909
Ore Processed - Total 1,215,143 2,424,890 1,120,614
Ore Railed - Lump 571,513 1,011,585 499,130
Ore Railed - Fines 512,243 1,157,284 726,884
Ore Railed - Total 1,083,756 2,168,869 1,226,014
Ore Shipped - Lump 644,124 1,050,063 552,415
Ore Shipped - Fines 538,080 1,271,596 851,151
Ore Shipped - Total 1,182,204 2,321,659 1,403,566
2.2 Cockatoo Island Joint Venture (50% Portman 50% Henry Walker Eltin)
2.2.1 Production (100% Figures)
Production and shipments for the quarter and year to date were as follows:
June Qtr 2003 YTD 2003 YTD 2002
Cockatoo Island Iron Ore Project
Tonnes
Ore Produced 90,090 268,025 45,920
Ore Shipped 91,862 314,446 50,568
2.2.2 Project Development
A slip in the Stage 2 seawall and ongoing evaluation of dewatering options
restricted the number of shipments to two during the second quarter.
Major activities during the third quarter are finalisation of the project mine
plan, installation of two test dewatering bores and geotechnical drilling to
confirm project parameters. It is envisaged that testwork will be completed by
the end of August 2003. Production of ore at a reduced rate of 8000 -10,000
tonnes per week will continue during this period.
2.3 Marketing
Traded iron ore continues to be in significant undersupply. This
has resulted in a significant 9% increase in benchmark prices and almost total
elimination of tonnage discounts to Chinese customers. As a result Portman's
unit USD revenues will be higher during the April-December period.
Portman's first Chinese buyer and an additional Japanese buyer of high
phosphorous fines ore have been confirmed. The company is negotiating with a
number of other buyers in China and Japan and is confident of further customer
support for high phosphorous iron ore products.
2.4 Exploration
2.4.1 Koolyanobbing
The Company continued to focus on the identification of additional
mineral resources along the Koolyanobbing Range. Reverse circulation drilling
continued throughout the quarter evaluating the extensions to the B deposit
whilst mapping at F Prospect has identified zones of high-grade surface
mineralisation which require further drilling.
B Deposit
A total of 6,048 metres of RC drilling was completed during the quarter at B
Deposit. Follow up drilling of the hanging wall mineralisation identified last
quarter has defined a 20 to 30 metre thick mineralised zone with a strike length
of greater than 300 metres. The mineralisation is typically of moderate iron
grades (>61%), low phosphorous (68%Fe. Typical results obtained include CDRC
010; 12m @ 68.86%Fe and 14m @ 68.58%Fe, CDRC 017; 16m @ 68.94@Fe, CDRC 028; 23m
@ 69.00%Fe, CDRC 021; 27m @ 68.42%Fe, CDRC 043; 22m @ 68.33%Fe and CDRC 052;
29m @ 69.10%Fe. Assay results for other elements are low to very low. Drill hole
locations are shown on the attached plan. Significant intercepts greater than 5m
in thickness and above 66% Fe are listed in Table 2 (see pages 8 and 9).
2.4.3 Exploration Expenditure
June Qtr 2003 YTD 2003 YTD 2002
Koolyanobbing Project 1,048,983 1,764,602 1,794,165
Cockatoo Island 9,431 42,041 -
Table 1. Significant intercepts table - Koolyanobbing (intercept cut-off 58% Fe)
Hole ID Easting Northing RL Dip Azimuth Intercept Details
mE mN m From Width Fe Phos S Al2O3 SiO2
m m % % % % %
B
Deposit
KBRC070 743217 6585590 407 -60 226 30 30 58.82 0.036 0.086 2.09 5.25
KBRC072 743035 6585411 430 -90 360 18 28 61.4 0.038 0.031 0.27 2.55
KBRC073 743018 6585429 426 -90 360 16 32 61.61 0.018 0.033 0.58 1.97
KBRC075 743089 6585428 404 -60 224 14 22 63.35 0.012 0.068 0.44 2.38
KBRC076 743012 6585493 408 -60 224 30 12 60.38 0.057 0.016 0.35 4.26
KBRC077 743114 6585452 500 -60 226 46 18 61.82 0.014 0.077 0.68 3.02
KBRC078 743097 6585470 500 -60 226 72 10 61.47 0.034 0.111 0.21 3.57
KBRC079 743081 6585488 399 -60 226 46 50 61.66 0.013 0.114 0.44 2.6
KBRC080 743106 6585410 500 -60 226 12 30 63.18 0.011 0.070 0.43 2.66
KBRC081 743131 6585434 500 -60 226 36 30 61.96 0.013 0.073 0.43 3.05
KBRC082 743123 6585392 500 -60 226 24 12 60.68 0.029 0.114 0.69 4.89
KBRC083 743158 6585356 500 -60 226 20 24 62.9 0.010 0.144 0.75 2.42
KBRC084 743158 6585356 500 -60 226 28 18 61.04 0.015 0.099 0.41 5.33
KBRC085 743176 6585338 500 -60 226 22 18 63.11 0.008 0.091 0.53 2.35
KBRC086 743193 6585320 500 -60 226 28 10 61.85 0.003 0.043 0.56 4.87
42 14 59.78 0.019 0.064 0.6 5.78
KBRC087 743210 6585302 500 -60 226 28 28 62.15 0.008 0.072 0.39 3.06
KBRC088 743228 6585284 500 -60 226 28 10 60.25 0.027 0.085 1.07 4.71
44 12 61.13 0.012 0.102 0.29 4.29
KBRC089 743201 6585362 500 -60 226 36 38 62.48 0.006 0.095 0.56 2.79
KBRC090 743149 6585416 500 -60 226 30 30 62.52 0.021 0.099 0.73 2.26
KBRC091 743166 6585398 600 -60 226 46 20 62.91 0.018 0.110 0.43 2.15
KBRC092 743183 6585380 600 -60 226 38 46 60.82 0.008 0.107 0.62 5.23
KBRC094 743057 6585497 399 -60 226 44 20 62.34 0.005 0.071 0.62 3.69
KBRC096 743036 6585516 399 -60 226 72 10 61.4 0.027 0.070 0.61 4.49
KBRC097 743057 6585496 399 -60 226 44 42 62.31 0.011 0.079 0.51 2.43
KBRC098 743252 6585304 401 -60 226 50 16 61.46 0.017 0.113 0.31 4.91
KBRC099 743273 6585292 399 -60 226 66 12 59.4 0.045 0.147 0.28 7.28
KBRC107 743137 6585314 429 -90 0 38 12 62.09 0.012 0.057 0.17 2.56
KBRC108 743158 6585299 427 -90 0 38 14 59.46 0.011 0.024 0.13 6.33
KBRC109 743157 6585285 430 -90 0 20 30 61.92 0.008 0.082 0.28 4.27
F
Prospect
KFRC093 749493 6581069 495 -60 215 26 18 61.92 0.009 0.049 0.33 3.6
78 12 63.13 0.004 0.052 0.06 1.8
KFRC096 749023 6581541 495 -60 215 24 10 58.78 0.074 0.133 1.09 2.47
KFRC097 749037 6581540 475 -60 215 18 12 59.02 0.076 0.142 1.01 2.89
KFRC098 748986 6581566 485 -60 215 10 10 58.39 0.081 0.116 1.51 3.39
KFRC099 749257 6581514 448 -60 215 40 26 63.39 0.011 0.078 1.12 2.15
Table 2. Significant intercepts table - Cockatoo Island (intercept cut-off 66% Fe)
Hole ID Easting Northing RL Dip Azimuth Intercept Details
mE mN m From Width Fe Phos S Al2O3 SiO2
m m % % % % %
Cockatoo
Island
CDRC001 564585 8220314 8.5 -90 0 35 28 68.63 0.006 0.010 0.59 0.69
CDRC002 564592 8220327 9.3 -90 0 22 5 68.58 0.004 0.010 0.32 0.58
28 13 68.90 0.007 0.010 0.34 0.32
CDRC004 563936 8220682 4.4 -90 0 16 15 68.45 0.010 0.010 0.54 0.68
CDRC005 564066 8220641 -4.3 -90 0 0 11 68.33 0.009 0.008 0.68 0.87
CDRC007 564052 8220618 -4.1 -90 0 0 34 68.56 0.009 0.010 0.60 0.67
45 11 67.50 0.009 0.014 1.14 1.31
CDRC008 564021 8220644 -3.9 -90 0 4 16 67.88 0.010 0.012 0.79 1.05
32 5 66.91 0.013 0.011 1.50 1.76
CDRC010 564006 8220628 -4.7 -90 0 6 9 67.55 0.009 0.006 0.81 1.88
17 12 68.86 0.007 0.005 0.47 0.52
31 14 68.58 0.008 0.009 0.46 0.59
CDRC012 563968 8220654 -0.7 -90 0 15 8 68.92 0.005 0.005 0.43 0.65
25 13 68.60 0.013 0.010 0.45 0.55
CDRC013 563963 8220646 -1.2 -90 0 22 13 68.71 0.008 0.007 0.48 0.56
CDRC014 563928 8220671 6.4 -90 0 23 16 68.43 0.007 0.006 0.56 0.85
41 7 68.08 0.020 0.009 0.55 0.78
CDRC015 564189 8220534 -7.1 -90 0 2 34 68.85 0.018 0.007 0.39 0.48
CDRC016 564201 8220557 -7.6 -90 0 2 12 68.80 0.006 0.003 0.57 0.66
CDRC017 564197 8220546 -7.6 -90 0 1 16 68.94 0.025 0.006 0.85 0.92
CDRC018 564602 8220343 9.9 -90 0 15 28 68.78 0.018 0.011 0.62 0.82
CDRC020 564681 8220276 9.1 -90 0 32 8 68.22 0.005 0.009 0.41 1.19
CDRC021 564688 8220293 10.0 -90 0 3 27 68.42 0.007 0.009 0.63 0.80
CDRC022 564697 8220311 10.3 -90 0 5 13 69.03 0.003 0.003 0.39 0.55
CDRC023 564158 8220582 -7.3 -90 0 4 8 68.48 0.011 0.007 0.59 0.77
CDRC024 564153 8220568 -7.2 -90 0 0 8 68.08 0.022 0.007 0.62 1.39
CDRC025 564151 8220568 -7.4 -90 0 0 19 68.37 0.015 0.006 0.62 0.73
20 8 68.52 0.010 0.007 0.56 0.65
CDRC027 564419 8220441 0.5 -90 0 3 12 69.21 0.011 0.005 0.31 0.33
CDRC028 564412 8220434 -0.3 -90 0 2 23 69.00 0.011 0.007 0.29 0.43
CDRC029 564327 8220489 -7.6 -90 0 0 6 68.92 0.007 0.005 0.44 0.54
CDRC030 564327 8220490 -7.6 -90 0 0 8 68.56 0.008 0.005 0.64 0.75
CDRC031 564318 8220476 -7.7 -90 0 0 30 68.74 0.031 0.007 0.33 0.43
CDRC032 564257 8220525 -8.0 -90 0 0 17 68.80 0.008 0.004 0.41 0.58
CDRC033 564249 8220512 -7.9 -90 0 3 10 68.87 0.011 0.005 0.64 0.83
14 12 68.11
27 8 68.18
CDRC034 564238 8220491 0.9 -90 0 31 5 68.00 0.007 0.004 0.56 1.03
38 22 68.35 0.018 0.009 0.63 0.98
CDRC037 564698 8220314 10.5 -90 0 6 9 67.61 0.012 0.009 0.87 1.40
CDRC038 564609 8220354 11.1 -90 0 6 20 68.95 0.007 0.005 0.32 0.52
CDRC039 564519 8220405 10.8 -90 0 6 11 68.66 0.003 0.005 0.32 1.01
CDRC040 564511 8220390 9.6 -90 0 6 16 68.77 0.010 0.006 0.39 0.71
CDRC041 564502 8220375 9.2 -90 0 13 13 68.83 0.011 0.006 0.23 0.43
CDRC042 564869 8220213 10.0 -90 0 12 11 67.94 0.012 0.006 0.70 1.42
CDRC043 564845 8220181 8.2 -90 0 14 22 68.33 0.010 0.007 0.54 1.06
CDRC045 565185 8220020 13.9 -90 0 13 24 69.40 0.001 0.003 0.16 0.51
CDRC046 565005 8220118 14.6 -90 0 16 10 68.72 0.021 0.006 0.41 0.58
CDRC047 564998 8220105 14.5 -90 0 11 13 69.06 0.003 0.003 0.26 0.87
CDRC048 565013 8220130 14.8 -90 0 18 6 69.10 0.006 0.003 0.35 0.69
CDRC049 564857 8220196 8.5 -90 0 13 23 69.03 0.014 0.006 0.31 0.45
CDRC050 565082 8220039 13.8 -90 0 22 26 68.63 0.007 0.006 0.41 0.66
CDRC052 565089 8220053 14.3 -90 0 10 29 69.10 0.002 0.006 0.16 0.74
CDRC053 565096 8220066 14.5 -90 0 11 26 69.20 0.006 0.007 0.15 0.39
CDRC055 565103 8220079 14.5 -90 0 14 7 67.48 0.003 0.004 0.62 2.28
22 8 67.86 0.008 0.006 0.88 1.17
CDRC057 564773 8220245 9.9 -90 0 18 18 68.11 0.013 0.010 0.61 0.94
CDRC061 564693 8220305 9.5 -90 0 7 10 69.42 0.005 0.005 0.16 0.31
3.0 FOREIGN EXCHANGE HEDGING
Total residual foreign exchange cover for the Portman Group at 30 June 2003 was
US$100.500M.
YEAR 2003 2004 2005 2006 TOTAL
2003-6
Face Value US$M 32.000 53.000 8.500 7.000 100.500
Weighted Avg 'Worst" Case Hedge
Rate .5490 .5500 .5562 .5849 .5525
Portman Group's current Foreign Exchange Policy, for all new hedging, provides
for:
* Up to 12 months maturity: committed and/or uncommitted FX
Hedging up to a maximum of 75% of forecast USD sales.
* 12 to 24 months maturity: committed and/or uncommitted FX
Hedging up to a maximum of 75% of forecast USD sales and subject to the
committed FX Hedging component not exceeding 25% of forecast USD sales.
* 24 to 36 months maturity: committed and uncommitted FX Hedging
up to a maximum of 75% of forecast USD sales and subject to the committed FX
Hedging component not exceeding 12.5% of forecast USD sales.
PORTMAN LIMITED
A.C.N. 007 871 892
Corporate Information
Directors
George Jones Chairman
Barry Eldridge Managing Director/CEO
Michael Perrott Director
Richard Knight Director
Martin Albrecht Director
Company Secretary
Geoffrey Clifford
Registered Office
Level 11, The Quadrant
1 William Street
Perth 6000
WESTERN AUSTRALIA
Telephone: (08) 9426 3333
Facsimile: (08) 9426 3344
Internet site: www.portman.com.au
Issued Capital
At 30 June 2003 there were 173,385,712 Ordinary shares on issue.
Substantial Shareholders as at 30 June 2003
Thiess Pty Ltd
ING Australia Ltd
Sagitta
ANZ Nominees Limited
JP Morgan Nominees Australia Ltd
AMP Life Limited
Reporting Calendar
Anticipated release dates for information in 2003 and other important
anticipated dates are as follows:
* ASX Appendix 4D Half Yearly Report 29 August 2003
* Half Yearly Report to Shareholders 19 September 2003
* September 2003 Quarterly Report 16 October 2003
This information is provided by RNS
The company news service from the London Stock Exchange
END
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