Our Company
| Corporate Overview |
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Territory Resources Limited (ASX Ticker: TTY) is an Australian resources company whose core strengths are in the development and operation of bulk commodity operations such as its 100%-owned Frances Creek Iron Ore Mine, located in the Northern Territory. Territory has been mining, railing and shipping high-grade hematite from Frances Creek since September 2007 with current production now at steady-state level of 2.2 million tonnes per annum (Mtpa) by mid-2009. Over the past 12 months, Territory’s growth strategy has centred on a plan to improve efficiency at Frances Creek, with the twin aims of achieving a significant increase in export volumes together with a substantial decrease in production costs. This has involved a comprehensive “Pit-to-Port” review, including analysis of pit optimisation plans, mining techniques, transport and off-site overheads. By the end of 2009, Territory had completed 40 shipments to China totalling over 3 million tonnes of high grade lump and fines product, enhancing the Company’s market reputation for quality and reliability. Operating costs at the Frances Creek operation have also been reduced significantly, averaging less than $55 per tonne over the 2009 calendar year. Territory is aiming to maintain a consistent cash operating cost of below A$55/tonne over the long term. The Company is in a unique position among Australia’s iron ore juniors, with a life-of-mine marketing agreement in place with its cornerstone shareholder, the leading Hong Kong-based supply chain management company Noble Group Limited, and access to world-class infrastructure in the Adelaide-to-Darwin rail line and Darwin Port, which have no capacity constraints. Territory has devised a two-pronged plan to deliver consistent growth in the years ahead. First, the Company is aiming to extend the mine life at Frances Creek, which is estimated at less than three years based on current reserves and operating levels. A wide-spaced ground gravity survey is proposed to identify Helene 6/7 sized ore bodies hidden undercover., and a sales scheme is being developed for low to moderate-manganese iron mineralisation and a review of lower-grade stockpiles at the minesite with a view to potential beneficiation. Territory’s second strategy is to embark on an acquisition program backed by Noble Group aimed at securing a new pipeline of exploration and development assets for carbon steel-related raw materials – particularly iron ore, manganese and chromite. During the next two years, Territory is aiming to secure at least three preliminary exploration projects, one mid-stream project with a confirmed JORC resource, and one advanced project ready for production within two to three years. Leveraging from the Company’s mining and development experience at Frances Creek and its reputation as a reliable, high quality iron ore exporter, this acquisition program is designed to position Territory as a major supplier of raw materials to the rapidly-expanding Asian steel industry over the next decade. |