Altura Mining Limited

AJM.ASX

Thursday 1 December 2011

An emerging near term bulk commodity producer

AJM is an emerging bulk commodity producer from its 100%

interest in the Tabalong thermal coal project in Indonesia and its
30% JV interest in the Mt Webber iron ore project in the Pilbara.

The companys board and management have extensive bulk

commodity project development experience.

Tabalong Coal project

The Tabalong coal project in South Kalimantan, Indonesia is to

produce ~500ktpa of low ash high quality (6400kcal/kg GAR)
thermal coal from the middle of CY2012 increasing to 750ktpa
within 12 months.

Capital costs are not expected to exceed A$10m with all mining,
crushing and trucking conducted on a contract basis. FOB cash
margins are estimated to be ~A$40/t.

At full production the operation is expected to produce 750ktpa

(from a 13.4mt resource). Further expansion plans are contingent
on progressing JV talks to increase the resource base sufficiently
to support target Indonesian production of 3mtpa to 6mtpa.

The company recently received an upgrade of their IUPs (Forestry

Permits still outstanding) to commence production by June 2012.

Mount Webber Iron Ore project

Mt Webber iron ore project in the Pilbara is one of several assets

that JV partner Atlas Iron intends to develop on their path to
15mtpa in FY15 and with first production expected in JQ13.

Mt Webbers current DSO JORC resource of 42mt @ 57.1% Fe is

in line with other Atlas iron projects.

The completion of the DFS is expected MQ12 with the plan to

develop a 3mtpa mine by mid-2013.

We anticipate that the capital intensity for the project

development will be less than A$20/t. We estimate FOB cash
margins to Altura of A$50-60/t in the initial years.

Other Assets

AJM are advancing their Pilgangoora lithium resource in the

Pilbara with the aim of completing a PFS by the end of FY12.

We have valued the companys mining services business at a

conservative 5 times EBITDA.

Recommendation

Price
Price Target
Valuation
Valuation Method
GICS sector
Market Cap*
Shares on Issue*
Enterprise Value*
Previous rating
* Fully diluted for options

After the recent option conversion AJM are fully funded, with
current cash at A$28m, to development of the Tabalong and Mt
Webber projects to first production.

We initiate coverage with a BUY recommendation and a target

price of $0.27 (risked DCF). We value AJM at $0.33 per share
based on our DCF valuation that includes a mine life of 10 years
at Tabalong and 10 years at Mt Webber.
-1-

$0.16
$0.27
$0.33
DCF
Metals & Mining
69
m
446.6
$m
41
Initiating coverage
$m

Year Ended June 30

11a

12e

13e

14e

Mt
Mt
kt
$m
$m
%
$m
$m

0.00
0.00
0.00
8.4
-1.0
-1.8
-1.7

0.00
0.10
0.00
19.4
3.5
18.3
3.2
3.3

0.02
0.55
0.00
70.4
22.4
31.8
18.2
18.3

0.60
0.75
0.00
169.9
69.5
40.9
47.2
47.3

EPS adj

-0.5

0.7

4.1

10.6

EPS adj growth

DPS
Franking
PER
Dividend yield

na
0.0
0%
na
na

na
0.0
0%
20.8
na

450
0.0
0%
3.8
na

158
0.0
0%
1.5
na

na
na
na
0

11.7
8
5
0

1.8
29
22
0

0.6
45
36
0

Production - iron ore (30%)

Production - coal (100%)
Production - LiO Con (100%)
Sales revenue
EBITDA
EBITDA margin
Reported NPAT
Adjusted NPAT

EV/EBITDA
ROA
ROE
Debt / Debt + equity

AJM Vs Small Ordinaries (XSO)

ADD
ADD
ADD
ADD
ADD
ADD
ADD
ADD
ADD
ADD
ADD
ADD
ADD

CHART
CHART
CHART
CHART
CHART
CHART
CHART
CHART
CHART
CHART
CHART
CHART
CHART

Source: IRESS

BUY

Matt Baillie
+61 (0) 2 8252 3275

c
%
x
%
x
%
%
%

Altura Mining Limited

Share Price

Profit & Loss

$ 0.16

Valuation $ 0.33

Market Measures

Year ending June

2011a

2012e

2013e

2014e

Year ending June

Sales

8.4

19.4

70.4

169.9

Op. costs

6.0

11.7

40.4

85.6

Royalty

0.0

0.7

4.2

11.4

Corporate

3.4

3.4

3.4

3.4

CFPS
CF multiple

Exploration Writeoff
EBITDA
Dep/Amtz
EBIT
Net Interest
Pre-Tax Profit
Tax Provision
Net Profit/(Loss)
Abnormals
Reported Net Profit

0.0

0.0

0.0

0.0

-1.0

3.5

22.4

69.5

0.1

1.1

1.9

3.4

-1.1

2.5

20.5

66.1

2013e

2014e

-0.5

0.7

4.1

10.6

EPS growth

na

na

449.7

157.8

PE multiple

na

20.8

3.8

1.5

cps

-1.3

0.3

4.6

12.9

na

na

na

1.2

DPS

cps

0.0

0.0

0.0

0.0

Dividend Yield

na

na

na

na

Enterprise value

$m

66.0

49.3

49.2

44.3

0.5

1.1

1.0

1.4

3.5

21.5

67.5

0.4

0.2

3.2

20.3

2011a

2012e

2013e

2014e

-1.7

3.3

18.3

47.3

ROE

na

22

36

0.0

0.0

0.0

0.0

ROA

na

29

45

-1.8

3.2

18.2

47.2

NPAT / Sales

na

17

26

28

EBITDA / sales

na

18

32

41

Gearing (D/[D+E])

2011a

2012e

2013e

Profitability & liquidity ratios

Year ending June

2014e

Cash

5.5

19.9

20.1

25.0

Receivables

1.9

1.9

1.9

1.9

Fixed assets

23.6

38.8

59.8

111.2

Mount Webber

Other assets

19.8

11.1

11.1

11.1

MRRT discount

Total Assets

2012e

cps

-1.3

Balance Sheet
Year ending June

2011a

EPS adjusted

Valuation

dr @ 10%

dr @ 5%

Equity

A$m

A$ps

A$m

30%

56.4

0.13

71.8

A$ps
0.16

-5.6

-0.01

-7.2

-0.02

50.8

71.7

92.8

149.1

Tabalong

100%

47.2

0.11

55.6

0.12

Creditors

1.4

1.4

1.4

1.4

Pilgangoora

100%

7.3

0.02

13.2

0.03

Borrowings

2.2

0.0

0.0

0.0

Mining services

100% & 50%

13.4

0.03

13.4

0.03

Other liabilities

6.2

6.2

9.2

18.2

Exploration

10.0

0.02

10.0

0.02

Total Liabilities

9.9

7.6

10.6

19.6

Cash

29.1

0.07

29.1

0.07

Net Assets

40.9

64.1

82.2

129.5

Total Borrowings

-1.4

0.00

-1.4

0.00

Share capital

55.2

73.3

73.3

73.3

Corporate/Other

-8.5

-0.02

-9.5

-0.02

Retained earnings

-14.1

-10.8

7.4

54.6

Total Valuation

174.9

0.39

Shareholders Funds

40.9

64.1

82.2

129.5

147.8

0.33

2011a

2012e

Production
Cashflow

Year ending June

Year ending June

2011a

2012e

2013e

2014e

2013e

2014e

DSO iron ore production (Mt)

0.00

0.00

0.05

2.00

Sales Revenue

8.0

19.4

70.4

169.9

Coal production (Mt)

0.00

0.10

0.55

0.75

Less Outflows

-6.2

-11.7

-40.4

-85.6

LiO Concentrate (kt)

0.00

0.00

0.00

0.00

Prod. costs in exc. sales

0.0

0.0

0.0

0.0

Net interest

0.0

0.0

0.0

0.0

DSO iron ore cash cost (A$/t)

0.0

0.0

60.3

61.9

Income tax paid & other

0.0

0.0

0.0

0.0

Coal cash costs (A$/t)

0.0

53.5

60.1

63.2

-0.6

4.0

23.0

59.7

LiO cash costs (A$/t con)

0.0

0.0

0.0

0.0

Exploration

-2.6

-2.6

-2.3

-2.0

Capex

-0.5

-13.7

-20.6

-52.8

Asset (Purchases)/Sales & other

-8.8

8.8

0.0

0.0

-11.9

-7.6

-22.9

-54.8

Dividends paid

0.0

0.0

0.0

0.0

Benchmark FOB Fines (62% USc/mtu)

Debt (Repay)/Borrowings

0.0

0.0

0.0

0.0

17.0

18.0

0.0

Operational Cash Flow

C/Flow from Investing

Equity Raised
Other
C/Flow from Financing

2014e
0.86

216

200

194

Newcastle benchmark ($US/t)

na

127

125

116

0.0

Assumed discount, FOB barge (%)

na

16%

16%

16%

LiO Concentrate price ($US/t)

na

na

na

400

0.0

0.0

0.0

18.0

0.0

0.0

1.9

5.5

19.9

20.0

3.8

14.5

0.1

4.9

Cash at end

5.5

19.9

20.0

25.0

Managing Director

2013e

194

-0.8

Exchange Rate (A$/US$)

2012e

0.96

Net Increase/(Decrease)

James Brown

2011a

1.07

16.2

Major Shareholders

Year ending June

0.99

Cash at Beginning

Directors

Price Assumptions

Resources
Company

Veritas estimate

Mt

% metal

Mt

Iron Ore

25.2

57.5

42.0

57.5

Tabalong

Thermal Coal

13.4

6400kcal

20.0

6400kcal

Pilgangoora

Lithium Oxide

13.3

1.21

13.3

1.21

NPV valuation for Pilgangoora disounted by 70% due to the exploration nature of the project

Dan O'Neill

% metal

Mount Webber

5%

-2-

Investment Summary
$28m in cash to fund
development of Tabalong
and Mt Webber

We Initiate coverage with a BUY recommendation and place a price target of 27cps based
on our risk adjusted DCF of mining assets. The company has $28m (7cps) in cash and
anticipates first cash flows from Tabalong production in JQ12 and Mt Webber in JQ13. Based
on our cash flow forecasts we see AJM currently trading at an EV/EBITDA of 1.8 times
FY2013 and 0.6x times FY2014.

Tabalong expected to
ramp up to 750kt per
annum in FY13

At the Tabalong coal project (100%), capital expenditure to bring the 13.4mt Tabalong
resource into production is estimated at A$10m, which can be funded from current cash. A
project go-ahead requires Forestry Land Use Permits and negotiations with Pinang Services
Indonesia (Noble group) for access to their haul road and barge loading facilities. We
forecast first production in JQ12 given the short time frame required to bring projects of this
nature into production. We expect the mine to ramp up to 750ktpa within 12 months and
produce at this level for 12 years based on the current resource base.

Management have
extensive coal mining
development experience

Management has a long history of bringing coal projects into production in Australia and
Indonesia, where they were instrumental in the funding, mine and infrastructure
development of what is now Indonesias largest single coal mine, Adaro. The management
team is looking to leverage their development experience by entering into JV agreements
with local companies to develop projects. The key objective is to transform AJM into a
medium sized Indonesian coal producer (3-6mtpa) within the next 3 to 5 years.

Mt Webber capital costs

will be low. First ore
shipment expected JQ13

Exploration is ongoing at
the Pilgangoora Lithium
project

The Mt Webber (30%) DFS is currently being undertaken by AJMs JV partner Atlas Iron and
is due by the end of MQ12 as part of Atlas Pilbara iron ore operations. AJM anticipate that
their share of capital costs will be less than A$20m with first production expected in JQ13,
ramping up to 3mtpa within 12 months. The Mt Webber project JV development will cover
capital costs to the mine gate and is to exclude the development of a centralised crushing
and blending facility (required for AGOs Mt Webber and McPhee Creek projects) and private
haul road which is to be funded separately by Atlas as part of their Pilbara iron ore
operations.
AJM also have an exposure to the growing lithium market with the advanced Pilgangoora
exploration project in north-west WA. Ongoing drilling (extension and infill) is expected to
significantly increase the low strip resource from 13.3mt at 1.21% Li2O.
AJMs 100% and 50% interest in two mining services and exploration companies in
Indonesia generates cash flows in excess of $2m per annum. This has provided sufficient
funds to cover corporate and administrative overheads.

Key Investment Drivers

Near term producer of high quality Indonesian thermal coal

Minority JV exposure to Pilbara iron ore asset with a path to development

Management with extensive development experience in Indonesian coal assets

Fully funded, with $28million in cash and equivalents.

-3-

SWOT Analysis
Strengths

Weaknesses

Small company with multiple assets to develop/fund.

Subject to investment timing of JV partner AGO at Mt

Webber

Current funding plan requires staggered

development of Tabalong and Mt Webber.

Near term producer of Coal/Iron ore and advanced

Lithium exploration project

Strong cash margins at current prices

Cash flow from services business

Multiple projects to develop with complementary

cash flows

Management experienced developers of Indonesian

(and Australian) coal assets

Debt free, $28m in cash and equivalents

Opportunities

Threats

Resource and reserve growth from existing assets

JV opportunities with other tenement holders

surrounding Tabalong

Permitting delays at Tabalong. IUP Operator status

upgrade has been received. AJM now require
Forestry permits to proceed

Leverage off services business for early stage

development of assets and news flow

Capital cost inflation

Company taken out prior to realizing full value from

coal and iron ore assets

Significant, unexplored tenements

Company Background
AJM is an emerging bulk
commodity producer
seeking to bring two
assets into production in
CY2012 and CY2013

Altura Mining Limited (AJM) is an ASX listed miner with advanced coal, iron ore and lithium
projects. Complementing their portfolio of projects (also including a garnet project and
uranium, base metals precious metals exploration projects), the company owns two
Indonesian mining services companies.
AJM is continuing to progress its two key assets towards production while further developing
their WA based Pilgangoora Lithium project. The company is seeking to move their 100%
owned Tabalong thermal coal project in Indonesia into production during CY2012 and their
Mt Webber iron ore project (30% JV with Atlas Iron) into production in early CY2013.
AJM recently announced a 95% take up of outstanding 31 August 15c options; raising
$18.6m to take total cash on the balance sheet to $28m. We anticipate that current cash
will cover the majority of the capital expenditure required for the development of Tabalong
and Mt Webber. The company currently has no debt.

Tabalong Coal project, Indonesia (100%)

Project Summary
Tabalong coal is a high
quality low ash thermal
coal. Currently a 13.4mt
resource.

Located in the province of South Kalimantan (Indonesia's Tabalong district), the Tabalong
coal project incorporates two adjacent mining permits covering an area of 63km 2 in the coal
bearing area of the Tanjung Formation. To date the company has defined a JORC Resource
of 13.4mt of outcropping, high calorific value (GAR 6350), low ash, mid-sulphur coal and
continues to explore within their concessions, targetting an overall resource of 20-25mt.

-4-

AJM have commenced the

process to obtain required
the Forestry permits
Coal will be trucked to the
Barito River and sold on
barge

A recent upgrade to the companys IUP (Izin Usaha Pertambangan) permits to Operation
Production status moves the company closer to first production. A Forestry permit will also
be required prior to the commencement of mining.
The company intends to mine, crush and truck the crushed coal 110km on designated haul
roads to a third party barge loading facility on the Barito River where it will be sold FOB at
an initial production rate of 500ktpa, ramping up to 750ktpa. A 30km section of road to
Pinang Services Indonesias (PSI) existing haul road will require upgrading, assesment and
negotiation (with PSI) is currently being undertaken. Mining, coal preparation, trucking and
barge loading will be conducted on a contracting basis.

Location
Located in South Kalimantan, the
Tabalong Coal project sits within
a highly prospective region of
Kalimantan for thermal and
coking coal.
The Tabalong project lies 60km
north of the Adaro operation and
110km by haul road to the Barito
River. Coal will be sold FOB at
barge, where it will travel
~280km down river to be transshipped to Panamax vessels.

Source: AJM company presentation

Resource description
AJMs Indonesian coal tenements were acquired as part of the purchase of Minvest
International Corporation in September 2007. At the time of the acquisition Minvest had
secured options to acquire all the shares in PT Suryaraya Permata Khatulistiwa (SPK) and PT
Suryaraya Cahaya Cemerlang (SCC), each of which held a Kuasa Pertambangan (KP or
Mining Right) for coal in South Kalimantan.
In two distinct areas, AJM has defined Area A which consists of the SPK IUP in the north and
SCC IUP in the south which holds the current Tabalong resource. Area B, to the east of Area
A is the second SCC IUP area and yet to have a resource defined.
The deposit comprises six seams (A to F) outcropping in the east of the IUP's and dipping
generally around 30 degrees to the west. Seam B is the main target within the initial mining
area with seam thickness ranging from 1.0 to 18 metres.
This region of Kalimantan has been the focus on intense exploration for coal, resulting in
numerous occurrences of coking coal products (to the north and west of Tabalong) and high
energy thermal coals. Analysis of Tabalong coal has to date identified the presence of high

Source: AJM company

presentation

-5-

quality thermal coals. All coal samples recovered will continue to be analysied for coking
properties.
Pre-development drilling is ongoing in the northern section of SPK to provide extended coal
quality data for the initial mining area. This information will supplement marketing data to
enable specific coal offtake arrangements.
Tabalong coal typical cross section

Coal seams dip at 30o. The

strip ratio is forecast to be
11 to 1

Source: AJM company announcement

Tabalong coal resource

Source: AJM company announcement

Permitting
Upgrade to the IUPs have
been received this quarter

Both IUPs have recently been upgraded to Operation Production status. Subsequent to the
IUP upgrade the company will require Forestry land Use Permits (Pinjam Pakai) from the
Forestry Minister prior to commencement of mining.
Forestry Land Use Permits are the final permitting hurdle required prior to first production.

Production profile
First production is expected
JQ2012

The company is actively

pursuing JV opportunities to
grow resources and
ultimately production

The company aims to develop Tabalong as a stand-alone operation initially at a planned

annual production rate of 500kpta and up to 750ktpa of premium thermal grade coal, with
first production in the June quarter of 2012.
The area surrounding Tabalong contains numerous other smaller resource areas that have
the potential to be operated simultaneously to provide increased tonnages and blended coal
products. AJM is considering a number of potential adjacent projects that would likely be
amalgamated and developed under a JV agreement. Ideally, we would see production grow
to 2-3mtpa in the Tabalong region.
-6-

Capex, Costs and margin

FOB barge costs of US$60/t
estimated. FOB barge price
expected ~US$100/t

Capital costs will be low.

Mining, coal prep and
trucking conducted on a
contract basis

The current cost of production estimate (FOB barge, including royalty) is US$60 per tonne.
Thermal coal prices have firmed in Indonesia during the year with coal of similar qualities
selling for US$115-120/t (FOB equivalent). Initially, AJM intend to sell coal at the barge load
out point to a third party. We estimate that marketing costs will be US$2/t and
barging/trans-ship costs $US15/t leaving an operating margin of $US38-43/t.
Capital costs for land acquisitions, pre-production earthworks, site infrastructure, road
upgrades and barge load out facilities have been estimated at $US10m. Volumes of product
will initially be small and all mining, crushing and transportation will be conducted on a
contract basis keeping capital requirements down, however this figure is not definitive and
subject to change.

Offtake Contracts
We view Tabalong coal as an excellent high quality export product. In our view this will
make it highly desirable for existing coal export groups to blend with other high quality coal
or to sweeten shipments of lower Kcal Indonesian coal of which there is no shortage. AJM
are currently negotiating access to Pinang Services Indonesias private haul road and barge
loading facilities on the Barito River, in our opinion Noble would be the logical buyer of
Tabalong coal. The company has indicated that initially they would sell coal at the barge
loading point (FOB barge).

Commodity pricing/market
Tabalong coal expected to
price in line with Newcastle
on a US$/t basis

The Tabalong Coal Resource indicates a marketable product with high energy, low ash and
low to medium sulphur characteristics. A significant proportion of the measured resource is
categorised as Indonesian Coal Index (ICI) Type 1 coal. Index pricing for this coal adjusted
to typical Tabalong district coal CV is in line with Newcastle spot prices and provides a
promising outlook for Tabalong as it moves to production.

140

120
110
100
90

Source: Bloomberg, Veritas

Newcastle 6700 Price

-7-

ICI-1 6322Kcal/kg (GAR)

5/11/2011

5/10/2011

5/09/2011

5/08/2011

5/07/2011

5/06/2011

5/05/2011

5/04/2011

5/02/2011
5/03/2011

5/01/2011

5/12/2010

5/11/2010

5/10/2010

5/09/2010

5/08/2010

5/07/2010

5/06/2010

5/05/2010

5/04/2010

80

5/03/2010

The discount to Newcastle

spot price has closed up in
2011

Coal Price (US$/t FOB)

130

State royalties of 5% will be

paid on FOB barge price
received

Benchmark pricing in Indonesia for tax and royalty calculations is based off an index (HBA
6322kcal) that uses the previous 3 month average for a combined group of pricing measures
(Indonesia Coal Index, Platts-1, Newcastle Export Index and the Newcastle Export Index
from the previous month). This price is then adjusted up to the key Prima brand coal and
Tanjung formation coals are then priced off this using the formula P = 0.969*Prima 3.2.
The Tanjung formation coal price has averaged 0.9% discount to the HBA over CY2011.

140
130

Coal Price (US$/t FOB)

A royalty a US$2/t is also

payable to the previous
owners of the concession

120
110
100
90
Source: Bloomberg, Veritas

Newcastle 6700 Price

HBA 6322 Price

5/11/2011

5/10/2011

5/09/2011

5/08/2011

5/07/2011

5/06/2011

5/05/2011

5/04/2011

5/02/2011
5/03/2011

5/01/2011

5/12/2010

5/11/2010

5/10/2010

5/09/2010

5/08/2010

5/07/2010

5/06/2010

5/05/2010

5/04/2010

5/03/2010

80

Prima 6700 Price

Mount Webber DSO iron ore project, WA (30%)

Project Summary
The Mt Webber iron ore project sits within AJMs north-east Pilbara tenements. To date the
JV (30% AJM and 70% Atlas Iron) has defined a 25.2mt reserve (57.5% Fe) and a 42mt
resource that will support a
3mtpa operation for 8 years.
AJM is a 30% JV partner
with Atlas Iron (70%)

Will be developed as part of

Atlas Pilbara mining
operations

AJMs JV partner Atlas Iron is

a successful new iron ore
entrant into the Pilbara with
two operating assets; Pardoo
and Wodgina producing
6mtpa of DSO. Atlas plans to
increase group production to
12mtpa in FY13 with
additional production from
Abydos, Mt Dove and Mt
Webber. All production from
the Atlas mines will be
crushed, screened and then
-8-

Source: Bloomberg, Veritas Securities

Source: Atlas Iron presentation

Initial production target of

3mtpa. DFS due in MQ12

trucked to Port Hedland on designated Atlas haul roads. Initial plans involved the trucking of
ore from Mt Webber to a central processing facility (The Turner River Hub), however after
recent agreement changes between Atlas and a third party we anticipate that crushing and
screening of Mt Webber ore to will occur at site, but outside the AJM/Atlas JV. We anticipate
the delivery of the DFS for the project prior to the end of MQ12.
Partnership with an existing operator provides AJM with access to management experienced
in developing and operating iron ore mines as well as access to infrastructure and a proven
path to market. We expect that AJMs share of production will be sold to Atlas at the mine
gate at an FOB price net of freight, handling and infrastructure costs. AJM will incur all
haulage, handling and ship loading cash costs plus an additional asset utilisation or
infrastructure fee.
AJM is currently negotiating the Joint Operations Agreement with Atlas Iron the terms of
which, once agreed by both parties, will allow the project to advance towards development
and first production.

Location

150km SSE from Port

Hedland ore will be trucked
from the mine to the multiuser Utah Port facility

AJMs tenements totalling 333 square kilometers are located in the north-west of the Pilbara,
close to existing rail infrastructue and truckable 150km south-southeast of Port Hedland.
While the most logical route to Port Hedland is via the existing rail infrastructure (40km to
the west of Mt Webber) to date, favourable access agreements have failed to be negotiated.
The medium term transport solution will be to truck Mt Webber iron ore along private haul
roads to Port Hedland, with AGO continuing to review rail options for their North Pilbara
operations. Mt Webber ore will be blended with ore from other Atlas Iron mines and
shipped via the multi-user Utah Port facility.
AJM is the minority partner with Atlas in the development of the Mt Webber project however
it retains 100% title ownership in all of the joint venture tenements.

Atlas Turner River Hub now

likely to become the Mt
Webber Hub

Source: AJM company reports

-9-

Resource description
Resource estimate of 41.9mt
at 57.1% Fe

Drill testing of the first Mt Webber DSO targets commenced in May 2009 with the first
significant intersections returning up to 66 metres at 58.5% Fe from surface. The project
now has a combined mineral resource estimate for the project of 41.9mt at an average
grade greater than 57.1% Fe. Exploration of other prospects in the area is ongoing.

Deposit is a flat lying, low

strip banded iron formation

Source: Atlas Iron, 4 August 2009 Maiden Resource for Mt Webber DSO Project

Ibanez deposit resource to

reserve conversion of 97%

The Ore Reserve estimate represents a very high conversion of over 97% of the Indicated
Mineral Resource at the Ibanez deposit located within the Mt Webber project area (see
Table below).

Source: AJM company announcement

- 10 -

The latest Mineral

Resource estimate
(prepared by Atlas Iron)
was completed in June
2010.

Reserves are expected to

grow from 25.2mt with
further infill drilling of the
Gibson and Fender deposits

The subsequent Ore

Reserve estimate of 25.2
million tonnes @ 57.5%
(also prepared by Atlas)
was completed in August
2011 (see table above).
The August reserve
upgrade was the result of
an infill and evaluation
drilling program conducted on the Ibanez and Gibson deposits. Further upgrades are
expected following additional drilling programs on the Gibson and Fender deposits during
the current financial year. Exploration of other prospects in the area is ongoing.

Capex costs and margins

Capex estimate of <$20m to
AJM. Operating costs
estimated at $60/t FOB

Atlas Iron estimate FOB cash costs of $42-45/t for FY2012. As AJM iron ore will be
transported from mine to ship by Atlas Iron an asset utilisation fee will be charged to the
company. Company estimates of $15-20/t for this fee (we view this as conservative)
increase expected cash costs to AJM of ~$60/t. With current benchmark pricing for iron ore
in excess of $150/t AJM should enjoy robust cash margins.
The DFS and final capital costs are yet to be released. Using previous capital costs on
Pardoo ($18/ annual tonne) and estimated stand-alone capital costs for Abydos (up to
$20/annual tonne) it is likely that the capital costs for Mt Webber as a stand-alone operation
will be in line/above these figures (plus inflation). We estimate capital costs of $18$23/annual tonne or $54-$69m. We estimate capital expenditure of $60m in our modeling of
the project as it is likely that all crushing and screening capital will be provided by Atlas,
AJMs capital requirements may be lower than assumed.

Production profile
AJM share of production to
be sold at the mine gate
(subject to agreement)

Production of iron ore from Mt Webber is likely to commence in CY2013, subject to receiving
all necessary approvals, negotiation of operating and offtake agreements, and completion of
a favourable DFS. When fully operational, Mt Webber will have an initial production rate of
3mtpa (AJM share 900ktpa).

Offtake agreements
As AJM is the 30% JV partner to a larger group operating multiple mines, processing and
blending facilities, the logical buyer of AJMs share of Mt Webber iron ore is Atlas Iron. The
company has indicated that, subject to agreement, AJMs share of production will be sold at
mine gate to Atlas at the FOB price.

- 11 -

Iron ore pricing

We have modeled declining iron ore pricing through to 2015 from US$116/t in 2013 to
US$83/t in 2015 on the basis of strong supply growth and forced closure of low grade
Chinese iron ore producers. What we cannot forecast is the percentage of forecast
production growth that will not be brought on in the next few years.
Benchmark iron ore has priced well above US$150/t CFR North China for the majority of the
past 12 months, dipping sharply in the past six weeks to $117/t.
200

Robust iron ore pricing will

provide strong cash flow to
AJM

US$/DMT, CFR North China

180
160
140
120
100
80
60

62% Fe CFR China

Nov-11

Sep-11

Jul-11

May-11

Jan-11

Mar-11

Nov-10

Sep-10

Jul-10

May-10

Jan-10

Mar-10

Nov-09

Sep-09

Jul-09

Mar-09

May-09

Jan-09

40

58% Fe CFR China

Source: Bloomberg

Pilgangoora Lithium project, WA (100%)

Project Summary
Pilgangoora advanced
Lithium exploration asset

Located between Mt Webber

and Port Hedland

Pilgangoora is an early stage hard rock lithium project located in the north of the Pilbara.
AJM has identified an initial JORC Mineral Resource estimate of 13.3 million tonnes of
mineralised spodumene pegmatites at 1.21% Li2O, containing 160kt of lithium oxide (Li2O).
The company continues to explore and develop this orebody, with an exploration target of
18-25mt. Following the current exploration program the company anticipates completion of
a PFS by the end of FY2012.

Location
The Pilgangoora project is located in North West WA (North Pilbara) 80km south-south east
of Port Hedland.

- 12 -

Resource description
Cross section of the Pilgangoora deposit (C1)
Resource outline

Source: AJM company announcement

The Pilgangoora deposit is characterised by thick open-ended mineralised pegmatites
outcropping at surface. Grades typically range from 1.3% to 1.6% Li2O. The shallow nature
of the deposit will result in a low strip ratio and enhances the economics of the project.
The drilling program to date has identified several mineralised pegmatite zones, namely C1,
E1, N1 and S1. All of these zones have been shown to be highly prospective. AJM currently
have 1 rig on site.
Cross section (S1, east-west)

The focus of recent drilling was to establish the pegmatite resources for the S1 area and to
establish the geological continuity with the C1 area located 500m to the north. In addition to
this activity, drilling will continue to prove up the down dip resources for the C1, E1 and N1
areas.
AJM recently signed a two year option agreement over the lithium rich pegmatites that
extend from AJMs E45/2758 tenement into tenement E45/2363 (Atlas).

Source: AJM company

announcement
Exploration drilling ongoing.
PFS will commence towards
the end of CY2011

Capex estimated at $50m,

operating costs of $250$275/t. Operating margin of
31-38% modeled

For the remainder of CY2011, further drilling will be undertaken at the site to expand the
resource. AJM intends to complete all feasibility and mining applications for the project prior
to the end of CY2012.
Based on the successful completion of the previous stages and subject to statutory
approvals and permitting, AJM intends to commence development of Pilgangoora in FY2014,
with first production expected in FY2015.

Capex costs and margins

This project is pre-PFS and as such no official cost estimates have been provided by the
company. As a comparison and for valuation purposes we have assumed an 800ktpa plant
size (80% of the Galaxys Mt Cattlin plant) and operating costs in line with the Mt Cattlin
operation per Snowdens 2010 Independent Technical Expert Report.
Using an assumed strip ratio of 1:1, average mining costs of A$4/t, crushing and separation
costs of $A18/t, administration & transport charges of A$10/t and a recovery of 80% we
calculate a concentrate (6.5% Li2O) cash cost of A$250-275/t. Lithium concentrate is a small
market and as such there is no public pricing. AJM believe that the current price for Li2O
concentrate is in the vicinity of US$400/t. At this price we model an operating margin of 3138%.
- 13 -

Testing indicates a
concentrate of 6.5-7% Li2O
is possible

In the 2010 Independent Technical Expert Report for the Mt Cattlin mine Snowden
estimated a capital cost of $60m for a 1mtpa processing plant. We are modeling an 800ktpa
plant based on the current resource and exploration upside for a 14 year mine life.

Production profile
The current resource would
support an operating life of
14 years to produce 100ktpa
of product

Initial metallurgical testing and processing show a concentrate of 6.5% to 7% lithium oxide
is possible. Current resource estimates support a production capacity of over 100,000 tonnes
per annum of lithium oxide concentrate for 14 years with first production possible in FY2015.

Li2O concentrate pricing

The market for lithium concentrates is small, with little transparency. In our view a price of
US$400/t is achievable (and have modeled the asset using this price), with some market
participants quoting prices as high as US$450-550/t being mentioned.

Mining Services, Indonesia

Coal mining services
businesses in Indonesia
provide valuable cashflow to
AJM

AJM owns two Indonesian mining service companies, acquired as part of the 2007 Minvest
International acquisition; PT Asiadrill Bara Utama (100%) and PT Velseis Indonesia (50%).
Indonesia is experiencing strong growth in the coal sector and AJM's Mining and Exploration
Services division is well placed to capitalise on this growth.
Asiadrill has long-term coal exploration and drilling services contracts with a number of
major mining companies in Indonesia. The company owns and operates a fleet which
includes 16 large drill rigs, 15 man portable rigs, truck and track mounted drills, heli-lift and
man-portable units for environmentally sensitive areas, and associated support vehicles. The
company employs a permanent workforce of 50 people and up to 100 contractors.
AJM also owns a 50% interest in PT Velseis Indonesia, which conducts geophysical services
including seismic and wireline logging. The company currently has 11 wireline units and a
permanent staff of 24.
Revenue from these two business is expected to be A$8-9million for FY2011 with an
operating margin of ~30%. Historically 85-100% of revenues and currently 100% of
contracted capacity has/is being derived from third party contracts.

Valuation
Balance sheet
95% takeup of August 15c
options provided $18m cash
to fund development
projects

With $28 million in cash on the balance sheet following the 95% take up of the 129.5m 15
cent options, AJM is fully funded for the development of their first project. Capital costs for
Tabalong are expected to be at most $10m. Remaining cash, supplemented with cash flow
generated from the coal operation is expected to be sufficient to cover AJMs share of the
capital costs for the Mt Webber JV. We have assumed a capital cost of A$50m for the
development of the Pilgangoora asset within our model, funded with cash flow from Mt
Webber and Tabalong.

- 14 -

DCF Valuation
Unrisked valuations
Tabalong: $47m

Our price target is based on a risked sum-of-parts DCF (10% discount rate) for the mining
assets and an EBITDA multiple of 5 times for the mining services businesses. Our production
assumptions and risk discount for each asset is as follows:

Tabalong We have assumed that AJM receives the required forestry permits prior
to the end of CY 2011, with first production in the June half of FY2012, ramping up
to full production of 750ktpa within 12 months. As there remains a degree of
uncertainty surrounding the timing of final permits and the eventual capital
(expected to be up to a maximum of A$10m) and operating costs, we have applied
a discount of 40% to our NPV.

Mt Webber Development and production schedules will be determined by AJMs

70% JV partner, Atlas Mining and a definitive capital cost and commitment to mine
is yet to be set. Atlas requires this asset to be in production in the near term to
meet their forecast 12mtpa production rate so we view the risk of significant delay
as low. We have modeled the project using a $20m capital cost and expect first
production in the June half of FY 2013 and ramp up to 3mtpa within 12 months.
We have applied a 20% discount to AJMs 30% JV exposure to Mt Webber.

Pilgangoora AJM have indicated the commencement of a feasibility study in early

2012 following the current drilling campaign, with potential first production in
FY2015 probable. We have assumed a throughput of 0.8mtpa and production of
~120kpta Li2O concentrate. Given that this project (which in our view appears
economic) is in an advanced exploration stage we have applied a discount of 70%
to our NPV.

Mt Webber: $54m
Current EV: $39m

NPV/Sum of parts analysis

We have used a DCF methodology to value the mining assets of AJM using a discount rate
of 10%, valuing the assets of the company at $147m or $0.33/share on a 1 times NAV basis
for the coal and iron ore projects. We have used a conservative 5 times EBITDA multiple to
value the mining services businesses and a discount of 70% for the exploration stage
Pilgangoora asset. Our risked valuation on which we base our price target of AJM is $118m
or 27 cents/share.

AJM is currently trading at a

P/NAV (risked) of 0.60

Mount Webber
MRRT discount
Tabalong
Pilgangoora
Mining services
Exploration
Sub Total
Cash
Total Borrowings
Corporate/Other
TOTAL

Discount
20%
20%
40%
70%
5x EBITDA

Risked valuation
NAV
NAV
45.1
-4.5
28.3
7.3
13.4
10.0
99.6
29.1

0.10
-0.01
0.06
0.02
0.03
0.02
0.22
0.07

Un-risked valuation
NAV
NAV
56.4
-5.6
47.2
7.3
13.4
10.0
128.6
29.1

0.13
-0.01
0.11
0.02
0.03
0.02
0.29
0.07

-1.4

0.00

-1.4

0.00

-8.5

-0.02

-8.5

-0.02

118.7

0.27

147.8

0.33

Source: Veritas Securities. As Pilgangoora project is in the exploration stage of development

a discount of 70% has been applied to both our risked and un-risked value.

- 15 -

Production/cost assumptions

Assumed declining
commodity prices

Production summary

2012

2013

2014

2015

2016

Mount Webber
DSO Iron Ore (100% basis)

000t

2,000

3,000

3,000

Cash costs

A$/t

60.3

50

61.9

61.3

57.3

Price received

A$/t

120.7

127.1

104.2

81.3

Cash margin

A$/t

60.4

65.2

42.9

24.0

550

750

750

750

Tabalong
Thermal coal

000t

100

Cash costs

A$/t

54

60

63

65

66

Price received

A$/t

103

108

112

97

91

Cash margin

A$/t

50

48

49

32

25

80

128

Pilgangoora
Li2O Concentrate

000t

Recovery

80

80

Cash costs

A$/t

257

262

Price received

A$/t

471

471

214

209

Cash margin
Cash flow summary

2012

2013

2014

2015

2016

Operating cash flow

A$ (mill)

4.00

23.00

59.72

37.64

26.21

Investing cash flows

A$ (mill)

-7.55

-22.90

-54.80

-8.80

-8.80

Net cash flow

A$ (mill)

-3.55

0.10

4.92

28.84

17.41

1.07

0.96

0.86

0.85

0.85

Currency assumptions
AUD/USD

Risks
AJM Mining is exposed to the normal risks associated with resource companies in a
development stage. The following are key near term risks to development of the two assets
that underpin the value of the company:
Permitting: A recent upgrade to the companys IUP (Izin Usaha Pertambangan) permits to
Operation Production status moves the company closer to first production. A Forestry permit
will also be required prior to the commencement of mining.
Access agreements: Tabalong requires access to Noble Groups haul road to transport
coal to the Barito river. This agreement is currently being negotiated. As Noble are the most
logical buyer of Tabalong coal we view this risk as small.

- 16 -

Capital costs: Capital costs are yet to be determined for Tabalong or Mt Webber (DFS
pending). If significant increases in the capital requirements or changes to the timing of
these occur, these may have funding implications for the company.
JV agreements: Failure to negotiate a favourable Joint Operations Agreement with Atlas
Iron for Mt Webber would delay the project. Terms that are less than favourable to AJM are
unlikely to be agreed, however the final terms of agreement and the infrastucture charge
applied may have a negative impact on cash flows and our valuation.

Management team
Management have coal mine
development experience in
Indonesia via the
development of NHC JV
Adaro

The management team was responsible for the successful development of the Adaro mine
and port facility in Indonesia, developed as a NHC JV to 25mtpa (now a 45mpta producer of
low Kcal, high moisture coal). In our view this team, with the addition of the right JV partner
(local connections and resource base) has a high probability of success.
The company has stated that their desire is to grow to a 3-6mtpa coal mining operator in
Indonesia from 2-3 operations within the Tabalong area.

Board Structure

Source: AJM company presentation

James Brown, Managing Director
James is a mining engineer with more than 25 years' experience in the coal mining industry
in Australia and Indonesia, including 22 years at New Hope Corporation. James was
appointed as Managing Director of AJM in September 2010 and was previously Group
General Manager since December 2008.
His coal development and operations experience includes New Acland (4 Mtpa), Jeebropilly
(2 Mtpa) and New Oakleigh (0.75 Mtpa) in South East Queensland, PT Adaro (25 Mtpa) and
PT Multi Harapan Utama (2 Mtpa) in Indonesia and Blair Athol (13 Mtpa) in the Bowen Basin.
Paul Mantell, Executive Director
Paul has more than 30 years' corporate experience as an accountant in mining and
associated industries, including 27 years at New Hope Corporation.
Pauls project finance operations experience includes the funding and financial management
of New Hopes coal operations in South East Queensland, PT Adaro (25 Mtpa) and PT Multi
Harapan Utama (2 Mtpa) in Indonesia and PT Indonesia Bulk Terminal and Queensland Bulk
Handling (Brisbane) facilities.
- 17 -

He was appointed a director in May 2009.

Allan Buckler, Non-Executive Director
A qualified mine manager, Allan joined AJM in December 2008, bringing with him over 40
years' experience in the mining industry both in Australia and Indonesia, with specific
expertise in the coal business.
Allan had lead roles in the establishment of several leading mining and port operations in
both Australia and Indonesia.
He is a former Director and Chief Operations Officer of New Hope Corporation Limited and
has lead the development of significant operations including PT Adaro Indonesia, PT
Indonesia Bulk Terminal and PT Mult Harapan Utama in Indonesia.
BT Kuan, Non-Executive Director
BT is a mechanical engineer with considerable experience in bulk handling and terminal
operations, including responsibility for the development and management of the Indonesia
Bulk Terminal at Pulau Laut in South Kalimantan, Indonesia.
He also has experience in Indonesia, Malaysia and Singapore with other minerals and soft
commodities including tin dredging operations, managing rubber, palm oil and cocoa
processing factories, and managing palm oil bulk terminals. BT was appointed a director in
November 2007.
Dan O'Neill, Non-Executive Director
Dan is a geologist with over 30 years' experience in the mining business globally, having
worked across Australasia, Africa, Asia and North America.
Dan has held positions with a number of Australian and multinational exploration companies,
as well as managed exploration programs in a diverse range of environments and locations,
including Botswana, North America, South East Asia, North Africa and Australasia.
During his career, he has held executive management positions with ASX listed companies
and has worked on a range of commodities including diamonds, gold, base metals, coal, oil
and gas. Dan was appointed a director on 18 December 2008.

- 18 -

Industry Comparison
AJM is currently trading at an
enterprise value (EV) of $44m,
including two mining services
companies which we value at
$13.4m.

In our view the most direct

comparison in valuing AJMs 30%
of the Mt Webber project (once
in production) is BC Iron which
recently commenced operations
at their Nullagine DSO project.
The operation is currently
ramping up towards 3mtpa
(50/50 JV with FMG).
BCI is currently trading at A$4.0/
resource tonne.

Iron Ore Producers & Near Term Producers

Company

Code

Share Price

Mcap

Enterprise

Project

Marketable

20/05/11

Diluted

Value

Status

Resources

Av. Resource Grade

Fe

SiO2

Al2O3

EV
P

A$/t
Hematite

(A$)

(A$m)

(A$m)

(Mt)

(%)

(%)

(%)

(%)

Altura Mining Limited

AJM

0.16

70

42

Feasibility

12

56.8

6.56

2.25

0.09

Mount Gibson Iron

MGX

1.29

1,399

1,055

Production

103

61.5

8.21

1.26

0.03

10.2

BC Iron

BCI

2.36

225

213

Production

53

54.1

4.28

3.57

0.02

4.0

Atlas Iron **

AGO

2.99

2,993

2,597

Production

1,034

56.5

6.5

3.0

0.10

2.5

Sundance Resources

SDL

0.39

1,144

1,084

Feasibility

521

60.7

6.90

2.30

0.10

2.1

Centaurus Metals *

CTM

0.53

80

56

Feasibility

50

65.2

4.10

0.92

0.02

1.1

Murchison Metals

MMX

0.38

173

216

Production

111

56.9

7.4

0.70

0.06

2.0

Fortescue Metals Group

FMG

4.74

14,801

17,011

Production

11,420

56.7

6.19

4.54

0.07

1.5

South American Ferro Metals *

SFZ

0.16

74

71

Production

78

65.5

4.00

1.00

0.05

0.9

Gindalbie Metals *

GBG

0.52

598

765

Development

1,027

68.6

4.75

0.10

0.01

0.7

Golden West Resources

GWR

0.40

81

51

Feasibility

130

60.0

7.40

2.40

0.06

0.4

Richmond Mining *

RHM

0.24

20

16

Development

44

67.5

2.75

1.00

0.01

0.4

Brockman Resources *

BRM

1.97

294

254

Feasibility

696

61.0

6.25

2.75

0.02

0.4

Centrex Metals

CXM

0.29

90

Feasibility

55

67.8

4.50

0.30

0.03

0.1

Iron Ore Holdings

IOH

1.30

225

188

Feasibility

934

57.2

7.00

2.44

0.15

0.2

Red Hill Iron

RHI

2.33

102

99

Feasibility

472

56.6

6.03

3.75

0.07

Industry Average

0.2
1.78

Notes: * SFZ, BRM, CTM, GBG. and RHM are beneficiated resources. ** Incorporates 100% of FerrAus
Source: Company Reports, Veritas estimates, Nov 2011

Coal Producers & Near Term Producers

Company

On a margin basis Indonesian

coal producer Sakari Resources
provides a reasonable
comparison to AJMs Tabalong
asset (once in production).
With an extensive resource base
SAR is trading at $1.30/resource
tonne.

Code

Altura MiningX
New Hope Corporation&

Price

Mcap

EV

(Dil.)

(Dil.)

Status

Reserves

Resources

($m)

($m)

AJM

0.16

70

42

Advanced Exploration

20

EV/

EV/

Resources

Reserves

($t)

($t)

7.5

NHC

5.97

4,957

4,863

Production

648

2048

2.4

Adaro

ADRO (IJ)

0.21

6,818

7,768

Production

938

4400

1.8

8.3

Sakari Resources

SAR (SP)

1.52

1,724

1,905

Production

130

1510

1.3

14.7

Gloucester Coal

GCL

6.92

1,415

1,358

Production

275

1512

0.9

4.9

Coal of Africa**

CZA

0.81

447

471

Production

53

527

0.9

8.8

Coalspur#

CPL

1.89

1,303

1,243

Pre-DFS

260

1460

0.9

4.8

BUMI (IJ)

0.23

4,719

8,402

Production

2900

12900

0.7

2.9

Stanmore Coal

SMR

0.78

111

99

Exploration

94

328

0.3

1.1

Realm ResoucesX

RRP

0.09

25

Feasilbilty

30

0.3

na

Cockatoo Coal

COK

0.38

402

478

Production

74

1752

0.3

6.4

Continental Coal

CCC

0.22

103

120

Production

64

565

0.2

1.9

Bandanna Energy#

BND

0.85

456

318

Pre-DFS

147

1534

0.2

2.2

Kangaroo Resources

KRL

0.16

555

553

Production

442

3146

0.2

1.3

Endocoal

EOC

0.39

68.6

58.9

Exploration

349

0.2

na

REY Resources

REY

0.17

63

57

Development

18

535

0.1

3.2

Resource Generation

RES

0.51

136

113

Development

745

6400

0.0

0.2

Mantle Mining

MNM

0.07

14

13

Exploration

na

na

0.7

4.9

BUMI**

Industry Averages
#

Marketable Reserves, actual Reserves are: CPL 521.7mt, SMR 117.4

**non-JORC reserve/resource
&

Includes 100% of NEC Resources

Resource Target

Source: Company reports, Veritas estimates Nov 2011

- 19 -

Sales

Research

Robert Scappatura +61 2 8252 3240

Resources

Tony Bonello +61 2 8252 3230

Piers Reynolds +61 3 8601 1196

Andrew McCauley +61 2 82523260

Mathew Baillie + 61 2 8252 3275

Patrick Ford +61 2 8252 3211

Sam Streeter +61 2 8252 3235

Industrials

Willem Ter Avest +61 2 8252 3270

Brent Mitchell +61 3 8605 4830

Clay Melbourn +61 2 8252 3220

Levi Hawker +61 3 8676 0689

Bryce Reynolds +61 2 8252 3215

Stephen Murphy +61 8 9380 8351
RATING
BUY anticipated stock return is greater than 10%
SELL anticipated stock return is less than -10%
HOLD anticipated stock return is between -10% and +10%
SPECULATIVE High risk with stock price likely to fluctuate by 50% or more

This report has been issued by Veritas Securities Limited A.B.N. 94 117 124 535, Australian Financial Services Licence Number 297043.
Disclaimer. The information contained in this document is general information only and is not financial or investment advice, and does not take into account your specific
financial situation, particular needs and investment objectives. This document has been prepared from sources which Veritas Securities Limited (Veritas) believes to be
reliable, but none of Veritas, its directors, employees and associates (Veritas Parties) give or make any representation or warranty that any such information is accurate,
complete, reliable or up-to-date, and Veritas disclaims all liability for loss or damage, direct or indirect, suffered by any person arising from any use of or reliance on such
information. Veritas recommends that you consult your financial adviser before making any financial or investment decision. Veritas does not accept any responsibility to
inform you of any matter that subsequently comes to its notice, which may affect any of the information contained in this document.
Disclosure of interest. Veritas Parties may receive or may have received fees, commissions and brokerage by acting as corporate adviser or broker for companies described
in this document, and may hold directorships or other offices with such companies. Veritas Parties may hold an interest in securities or financial products described in this
document, may benefit from an increase in the price or value of them, and may effect or participate in transactions which are inconsistent with any statement made in this
document.
Veritas Securities Limited

Sydney

Melbourne

Perth

A.B.N. 94 117 124 535

Level 4, 175 Macquarie Street

Level 8, 350 Collins Street

Suite 5, 531 Hay Street

AFSL No. 297 043

Sydney, NSW, 2000

Melbourne, VIC, 3000

Subiaco, WA, 6008

GPO Box 4877, Sydney, NSW, 2001

Tel: (02) 8252 3200

Tel: (03) 8601 1196

Tel: (08) 9380 8351

www.veritassecurities.com.au

Fax: (02) 8252 3299

Fax: (03) 8601 1180

Fax: (08) 9380 8300

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