Portman Halbjahresbericht -C- - 500 Beiträge pro Seite

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Half Yearly Report/ASIC Half Yearly A/Cs & Media Release


Document date: Wed 30 Aug 2000 Released time: Wed 30 Aug 2000 19:30:21
Document No: 183231 Document part: C
Market Flag: Y
Classification: Half Yearly Report, Half Yearly Audit Review, Half Yearly Directors` Statement, ASC Half Yearly Accounts
PORTMAN LIMITED 2000-08-30 ASX-SIGNAL-G

HOMEX - Perth

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CHAIRMAN`S LETTER TO SHAREHOLDERS

It is with great pleasure that I submit, on behalf of your Board of
Directors, the Company`s Half Year Report to 30 June 2000 - the first
under our new banner of Portman Limited. This report comes at a time
of renewed interest and activity in the bulk commodities trading
sector, and our decision to change the name of the Company reflects
our strategy of developing into a more broadly based investment
group.

IRON ORE

With the recovery in the Asian markets now underway for some time and
demand for bulk commodities and strategic minerals increasing
steadily, your Company is well placed to identify and pursue
opportunities with the potential to enhance the value of Portman and
provide real returns to shareholders.

The expansion of Portman`s Koolyanobbing Iron Ore Project in Western
Australia has been proceeding well and on budget. The resulting
increase in production and infrastructure capacity will enable
Portman to establish itself as a substantial and profitable
independent exporter of iron ore from Australia into Asian markets.

In January of this year, we announced a key step in our iron ore
growth strategy by taking 100 percent ownership of the Koolyanobbing
Iron Ore Project through a restructuring of the Koolyanobbing Iron
Ore Joint Venture with China`s Anshan Iron and Steel Complex. The
agreement was ratified on 15 July 2000, coinciding with the opening
of the new No 2 Shed iron ore storage facility at the Port of
Esperance - which marked the completion of Stage 1 of the project`s
expansion.

The new storage shed, which doubles Portman`s stockpile capacity at
Esperance to 280,000 tonnes, is an important component of the new
infrastructure required to underpin your Company`s plans to boost
iron ore output from Koolyanobbing to 8 million tonnes per annum over
the next five years.

Formal agreement has now been signed with the Esperance Port
Authority to finalise the full scope of the proposed port expansion
to accommodate the increased production from Koolyanobbing. A
dredging program to enable the full loading of Panamax vessels is
targeted to be complete in October 2000. The program to enable the
port to load Capesize ships in late 2001 is now expected to commence
as soon as environmental approvals are finalised. The Esperance Port
Authority is funding the works at Esperance and will own, operate and
manage the expanded facility, which will also meet the needs of other
existing and future port users.

In addition, a further 50 locally built ore wagons have now been
delivered and are fully operational on the line between Koolyanobbing
and Esperance.

Portman`s iron ore developments are supported by customer demand for
new supply of high quality lump and low impurity sinter fines.

At our Cockatoo Island iron ore operations, also in Western
Australia, a decision was made in February this year to extend the
life of the project and, in so doing, to offer a new premium sinter
fines product to Asian markets. It is expected that the addition of
this premium grade export product to Portman`s inventory will further
assist in boosting the Company`s profile in the region.

The Cockatoo Island project is structured through a 50:50 joint
venture with the contracting group, Henry Walker Eltin. The first
shipment of this new product is scheduled for September this year.

SILICON METAL

In New South Wales, Portman`s Lithgow Silicon Project continues to be
progressed by the project management company, Australian Silicon Pty
Ltd, a joint venture with Doral Mineral Industries Pty Ltd.
Australian Silicon has been working closely with the New South Wales
Government to secure all statutory approvals necessary for the
project.

An Engineering, Procurement and Construction Contract (EPC) proposal
has been received from Thiess Contractors and Kaiser Engineers and is
now being evaluated. A timber supply proposal received from the State
Forest of New South Wales is also under evaluation.

An additional joint venture partner is being sought to participate in
the development and ongoing ownership of the project. It is highly
likely that this partner will be an existing silicon metal industry
participant and will hold approximately 40% equity in the project.

A decision on the go-ahead of the Lithgow Silicon Project is expected
once all components have been advanced to a high level of confidence.

FORESTRY AND TIMBER INVESTMENT

I am also pleased to report on an important strategic decision by
your Company to establish a new Managed Investment Scheme (MIS)
forestry business alongside Portman`s existing iron ore and silicon
metals divisions.

The new division, which aims to launch its first investment project
within six to eight months, is regarded by your Board as having the
potential to develop into a highly profitable business for Portman
for a relatively modest capital outlay.

It is complementary to Portman`s core activities in project
development, management and marketing and in line with our stated
growth strategy. In the longer term, the development of a profitable
MIS timber division will provide Portman with significant
opportunities for vertical integration and downstream processing to
support our other projects, particularly sustainable timber supplies
for the Lithgow Silicon Project, which requires charcoal as a key
input.

Portman aims to quickly establish itself as a premium player in the
Australian MIS timber business. In doing so, Portman will draw on the
potential to access land in strategic locations, expertise in the
marketing of bulk commodities, the synergies with the existing
Esperance operation and the proposed Lithgow Silicon Metal Project,
proven skills in project management and access to markets and
investment distribution systems.

This is an exciting new opportunity for Portman and I look forward to
reporting on the progress in this important new business area.

CORPORATE

Portman listed on the Third Market Segment of the Frankfurt Stock
Exchange on 4 February 2000 and, since that time, has received strong
offshore investor support. At the time of writing this report,
offshore investors accounted for 22% of Portman`s issued capital.
Other opportunities for listing on offshore markets are also under
consideration given the strong investor interest from Europe.

At 30 June 2000, Portman`s net cash position was A$117.733 million,
putting the Company in an excellent position to progress its current
projects and seek additional appropriate growth opportunities. The
net operating profit for the period of $1.016 million before tax and
$0.667 million after tax was in line with expectations after the
Burton Coal project sale and during the redevelopment of the Iron Ore
projects.

We anticipate that the second half of 2000 will continue to improve
with a strong profit result projected for 2001 as the iron ore
expansion gathers pace.

I would like to thank my fellow Board members and our excellent
management and staff for their support and continuing contribution to
the advancement of Portman.


G Jones
CHAIRMAN

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