Chairman’s Summary
“Proto Resources & Investments Ltd (“Proto” “the Company”)
(ASX:PRW) continued its strategy of pioneering exploration in the Northern Territory by entering into a new project: Rosewood. It is a joint venture where Proto can earn up to 50% by drilling a 600m deep diamond hole into a Norilsk-style target on ground that has never been drilled before. This keeps Proto firmly at the frontier of the search for a new Nickel, Copper, Platinum element region in the Northern Territory. Proto looks forward to commencing the first drilling on the tenement in 2014.
Proto is also currently working on its iron ore strategy for the Barnes Hill project in Tasmania. Iron ore production and sales from the Barnes Hill project are a key part of Proto’s short term strategy with the nearby port of Bell Bay being an ideal shipping point for international commodity markets now that the iron ore price has stabilised. Iron ore prices have stayed strong, and at over $125/t make investment in iron ore production very attractive. Nickel has also shown a strong recovery in recent times, and shows material upside due to the recently implemented Indonesian export ban with price above $14,500 per tonne. This reflects nickel ongoing high value commodity status. Just after the end of this quarter Indonesia finally implemented its export ban on raw nickel, and many nickel companies have been increasing in value at the moment accordingly. Proto has nickel in-ground inventory and processing technology assets and capabilities. A better nickel metal price will help Proto.
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