Globe Metals & Mining Limited : Chairman's Address - Annual General Meeting

Globe Metals & Mining Limited Annual General Meeting Chairman's Address

On behalf of the Globe Board of Directors, it is my pleasure to welcome all shareholders to the 2012 Annual General Meeting for Globe Metals & Mining Limited.
In the last year, by taking advantage of sufficient capital and funds provided by ECE-Globe transaction, we have firmly pushed forward the Definitive Feasibility Study ("DFS") at the Kanyika Niobium Project in Malawi, Africa. The company will gradually establish the strategy that Globe will become the major supplier and producer of Niobium and Tantalum in Southern and Eastern Africa. Currently, while using the sufficient capital and funds to deliver the Kanyika DFS, Globe also pays attention to the possibility of establish a Niobium and Tantalum refinery
plant in Southern and Eastern Africa.
In FY2012 and to date in FY2013, Globe continued its focus on the flagship
Kanyika Niobium Project, with key objectives including completion of the DFS
and Decision to Mine. Globe has completed a highly active exploration program in 2012 with encouraging results to date. This is evidenced by the results from the
15,000m in-fill drilling program recently received from Kanyika, and the progress made on key aspects of mining studies and plant-site infrastructure, refinery test
work, and metallurgy. Recently, further discussions were held with the Malawian Government regarding the Development Agreement submitted earlier this year, and the Board remains confident that final authorization will be received in the near future.
To support the operational advancement at Kanyika, Globe's Board and Management team has worked to reach commercial pre-development milestones including signing a Memorandum of Understanding (MoU) with the China Development Bank, one of China's leading state financial institutions. In addition to that, Globe has closely co-operated with technology partners with experience in refining and processing methods, infrastructure providers, and other technical institutes that have assisted Globe's operational teams to address key elements of the Kanyika DFS.
In the progress of establishing Globe's new development strategy, Globe successfully earned a 70% interest in the Mount Muambe Project in Mozambique by meeting the earn-in milestone through the delivery of a high-grade maiden inferred fluorite resource under the joint venture agreement with local partners. Further drilling activities also identified new zones of thick, high-grade fluorite associated with reported rare earth elements discovered during the first quarter of 2012.
The Company's exploration program at the Memba Titanium-Iron Project has progressed well with excellent results from rock-chip sampling showing high grade mineralisation with samples returning near-pure magnetite samples and iron values averaging 66.8%. Meanwhile, 100% Globe owned Chiziro Graphite project in Malawi, Africa presents a high value of exploration as well. The exploration of these projects will enhance the implement of Globe's new strategy.
I am also pleased to re-iterate Globe's commitment to fostering relations with the local communities in Malawi and Mozambique. Globe remains steadfast in advancing the Company's relationships with local communities and will continue to have a meaningful community engagement program in the year ahead.
To improve and strengthen the Company's senior management and internal controls as the company makes the significant transition from advanced exploration Company to producer, while defining the new Niobium and Tantalum strategy, the changes in internal management mode and managerial system are needed to cut down the management cost. Therefore, the Globe Board has implemented a number of changes at both Board and Senior Management level.
The Globe Board was strengthened with the appointment of Mr Tian Jingbin and Mr Peter Stephens as Non-Executive Directors. Executive Director, Ms Shasha Lu was appointed as Deputy CEO in January 2012 to further support the management team. After the resignations of Mr. Julian Stephens from non- executive director, Mr. Mark Sumich from Chief Executive Officer and Mr Brad Wynne from Chief Finance Officer, Globe appointed experienced Geologist and Globe Exploration Manager, Mr. Fergus Jockel, to the role of Acting Chief Executive Officer. Mr. Jockel will also remain as Exploration Manager. In addition, Ms. Kerry Angel was appointed as Chief Financial Officer and Company Secretary. Ms. Angel brings over 18 years of experience working in senior finance roles with ASX listed companies.
In summary, during the past year, we have gradually established a strategy that has never been set since the beginning of the company, which is to become the major supplier and producer of Tantalum and Niobium in South and East Africa. Globe's management mode and rules and regulation have been refined. The management team has been updated and adjusted. While the flagship project
- Kanyika's DFS has been pushed forward firmly, the other exploration projects also have acquired valuable exploration results. These changes and actions have ensured Globe to be successfully transformed from the explorer to the producer with a healthy cash position and zero debt.
I thank our shareholders, partners, staff and stakeholders for their ongoing support and those who have served Globe and correctly fulfilled their responsibilities. I also welcome the ladies and gentlemen who recently joint our management team. We hope for another year of significant milestones for the company on top of last year's extraordinary performance.