CHANGE IN DIRECTORS' INTERESTS | FOR THE RECORD ■

INCREASE HOLDER OR DATE NUMBER PRICE TOTAL CURRENT VALUE TOTAL COMPANY INTERESTED PARTY ACQUIRED PER SHARE ($) COST ($) SECURITIES PER SHARE ($)* VALUE ($)*

South Boulder Mines Ltd Liam Cornelius 02-Feb-12 2,191,468 0.550 1,205,307 13,148,806 1.250 16,436,008 H Strike Energy Ltd Timothy Goyder 02-Feb-12 1,772,292 0.100 177,229 28,356,669 0.135 3,828,150 D Strike Energy Ltd Timothy Clifton 02-Feb-12 1,555,342 0.100 155,534 24,885,459 0.135 3,359,537 D South Boulder Mines Ltd David Hughes 02-Feb-12 234,989 0.550 129,244 1,409,934 1.250 1,762,418 H Strike Energy Ltd Simon Ashton 02-Feb-12 618,598 0.100 61,860 9,897,562 0.135 1,336,171 D South Boulder Mines Ltd Terrence Grammer 02-Feb-12 82,000 0.550 45,100 492,000 1.250 615,000 H Laconia Resources Ltd Ian Stuart 31-Jan-12 1,000,000 0.040 40,000 6,700,000 0.046 308,200 F Mirabela Nickel Ltd Geoffrey Handley 31-Jan-12 40,000 0.976 39,028 60,000 0.920 55,200 A Blackgold International Holdings Ltd James Tong 03-Feb-12 113,718 0.210 23,881 51,050,000 0.190 9,699,500 I Northern Mining Ltd Alan Lockett 20-Jan-12 200,000 0.050 10,000 25,873,565 0.052 1,345,425 A Cazaly Resources Ltd Nathan McMahon 02-Feb-12 29,799 0.202 6,019 15,912,939 0.280 4,455,623 A Aphrodite Gold Ltd Warren Staude 02-Feb-12 50,000 0.056 2,794 1,381,042 0.053 73,195 A Yellow Rock Resources Brenton Lewis 31-Jan-12 83,950 0.011 923 1,083,950 0.013 14,091 A Northern Mining Ltd Alan Lockett 20-Jan-12 17,783 0.040 711 25,673,565 0.052 1,335,025 C Strike Energy Ltd David Wrench 02-Feb-12 2,308 0.100 231 36,919 0.135 4,984 D Mirabela Nickel Ltd Ian Purdy 01-Feb-12 195,860 nil nil 350,860 0.910 319,283 G Coalspur Mines Ltd Eugene Wusaty 02-Feb-12 150,000 nil nil 2,850,000 1.745 4,973,250 G Coalspur Mines Ltd Denis Turcotte 02-Feb-12 25,000 nil nil 925,000 1.745 1,614,125 G Coalspur Mines Ltd Ted Mayers 02-Feb-12 25,000 nil nil 375,000 1.745 654,375 G Coalspur Mines Ltd David Murray 02-Feb-12 25,000 nil nil 25,000 1.745 43,625 G Coalspur Mines Ltd Mark Rodda 02-Feb-12 25,000 nil nil 391,667 1.745 683,459 G

DECREASE HOLDER OR DATE NUMBER PRICE TOTAL CURRENT VALUE TOTAL COMPANY INTERESTED PARTY DISPOSED PER SHARE ($) REALISED ($) SECURITIES PER SHARE ($)* VALUE ($)* Cape Lambert Resources Ltd Brian Maher 02-Feb-12 500,000 0.578 289,156 515,000 0.575 296,125 A Gindalbie Metals Ltd Michael O’Neill 31-Jan-12 200,000 0.648 129,671 1,437,655 0.625 898,534 A Otto Energy Ltd Ian Macliver 03-Feb-12 750,000 0.080 60,000 4,549,721 0.095 432,223 J Red River Resources Ltd David Zohar 03-Feb-12 110,000 0.052 5,720 11,358,037 0.052 590,618 A RANKED BY VALUE OF TRANSACTION *day of announcement A On market trade | B Off market trade | C Exercise of options | D Rights issue | E Share purchase plan | F Shares acquired pursuant to a placement | G Conversion of performance rights H Shares issued pursuant to participation in entitlement offer | I Shares acquired in on market trade on 1 April 2011 that Mr Tong failed to disclose earlier | J Off-market transfer as a result of restructuring shareholding within holding entity (Grange Consulting Group, of which Mr Macliver is a director and shareholder). No change in ultimate benefi cial ownership. Please direct enquiries to [email protected] South Boulder raises stakes South Boulder Mines share price $2.00 – SOUTH Boulder Mines directors Liam 10 shares held at $1.10 each on December 7 $1.80 – Cornelius, David Hughes and Terrence last year, but had to cut the price of the capital Grammer have chipped in to help complete raising by half later that month, to a one for $1.60 – a successful $10 million capital raising for five offer at $0.55 per share, in order to secure the gold, nickel and potash explorer. the funds, due to weak market conditions. $1.40 – Executive director Liam Cornelius acquired South Boulder’s shares had been trading Price ($A) $1.20 – 2.2 million shares pursuant to his participation in the range of $2 to $2.50 in the third quar- in the entitlement offer. His total stake in the ter of 2011, but fell to $1.39 the day before $1.00 – company is now 13.1 million shares currently the capital raising was announced. The share $0.80 – valued at $16.4 million. Managing director price subsequently hit a low of 79 cents on Source: ASX NovemberNovember DecemberDecember 2012 FebFebruaryru David Hughes acquired 234,989 shares, while December 22, when the company announced executive chairman Terry Grammer received changes to the terms of the offer, and has been fully underwritten offer, the company will feasibility study on the Colluli open cut pot- 82,000 shares. picking up ever since. have approximately $21 million in cash. ash Project in Eritrea. South Boulder Mines’ The company announced the non-renouncea- The entitlement offer closed on January 25 The funds raised will be used primarily shares closed at $1.24 last Friday. ble entitlement offer of one new share for every following allotment of all shares. Under the to expedite the completion of the definitive ■ Kirat Kuar

discoveryProsperity through with continued exploration success and corporate growth, Independence Group NL is shaping the future of world-class gold and nickel.

www.igo.com.au bnd4235 WA Business News www.wabusinessnews.com.au February 9, 2012 | 17 ■ APPOINTMENTS | [email protected]

Skipworth WA Agent General Murrell new GMA president Kevin Skipworth has been appointed to replace 8M Media and COMINGS AND GOINGS Kerry Sanderson as WA’s agent general in London, Communications CEO for a two-year term from March. Mr Skipworth was Thomas Murrell (top) has official secretary to the last five WA governors, and been elected as president of has held senior roles in the Department of the the Graduate Management Looking for a board position? Premier and Cabinet. He has been charged with Association, the peak body companydirectors.com.au/Member-Services/Directorship-Opportunities building WA’s links with African nations. representing alumni and postgraduate students at Harrison joins AMEC the UWA Business School. ƒ Arafura Resources appointed as a non-executive director. Mr Murrell replaces Ernst & Ian Kowalick has been appointed as non- ƒ Legacy Iron Ore Engineering and project Young senior consultant Paul executive chairman. Interim chair Chris Former non-executive chairman Timothy management consultancy Tonkin has stepped down, but remains a Turner has been appointed as a non- McCann in the role. Ernst AMEC has appointed Paul non-executive director. executive director. & Young Business Advisory Harrison as managing ƒ Attila Resources ƒ Pelican Resources Services senior consultant director for oil and gas, ASEA Boss Resources managing director Leigh Non-executive director Mike Bue will take on Tracy Deveugle-Fink has been (Australia and Southeast Ryan has been appointed as a non-executive an executive role, following the resignation elected vice-president. Asia) in its Perth office. Mr director. of CEO Stuart Bell. Australian Mines pieNETWORKS Harrison was formerly chief ƒ ƒ Chief executive officer Benjamin Bell has Non-executive director Craig Ferrier has operating officer at Logicamms and has also Radcliffe joins Aurecon been appointed as managing director. resigned. worked for Marathon Oil, Occidental, Elf Petroleum Engineering and technical services provider ƒ Evolution Mining ƒ Ram Resources and WorleyParsons in the UK, Southeast Asia and Aurecon has appointed David Radcliffe as rail Managing director responsibilities have been Non-executive director James Lumley has Australia. leader, resources & manufacturing based in combined into those of executive chairman been appointed as managing director, Perth. Mr Radcliffe previously worked on the Rio Jake Klein, following the resignation of following the resignation of Michael Drew. MacRury back at WAMMCO Tinto heavy haul rail system expansion, Perth Bruce McFadzean. James Scott has been appointed as a non- ƒ Golden West Resources executive director. The Western Australian Meat Marketing electrification, and the extension of the Perth network to Joondalup and Mandurah. Chairman David Sanders has retired. ƒ Red October Resources Co-operative has brought Coll MacRury back to ƒ Great Western Exploration Terra Capital founder Jeremy Bond has been Perth as chief executive officer to replace Scott Kevin Somes has been appointed as appointed as a non-executive director. Weir, who held the job for six months. Mr MacRury Siu promoted at A&O chairman, following the resignation of Jitto ƒ Sino Gas & Energy had moved to NSW last year when he was Arulampalam. China strategic consultant and former made managing director at the former Southern Law firm Allen and Overy has promoted Jonathan ƒ Hemisphere Resources Australian ambassador to South Korea Colin Meats Goulburn abattoir, which was acquired by Siu to senior associate. Mr Siu is a banking lawyer General manager – project development Heseltine has been appointed as a non- WAMMCO. in the firm’s Perth office and specialises in asset Jason Greive has been appointed as executive director. finance, offshore oil and gas and shipping. managing director, following the resignation ƒ Strike Resources of Danny Costick, who remains as a non- Southern Cross Goldfields chair Samantha Kalaf heads Lifeline WA executive director. Tim Fairhead has been Tough has been appointed as an independent Fiona Kalaf has been appointed as chief executive Coop to Integral appointed as a non-executive director. non-executive director. officer of suicide prevention services provider Management consultancy ƒ Ironbark Zinc ƒ Volta Mining Lifeline WA, following the resignation of Amanda Integral Development has Former Jabiru Metals managing director and David Wirrpanda has been appointed as a Wheeler, who is moving to Lifeline Australia in appointed Pete Coop as a BGC Contracting CEO Gary Comb has been non-executive director. Canberra. Ms Kalaf is currently chair of the Art consultant. Mr Coop’s main Gallery of WA, and a board member of the newly- area of expertise is as a formed Metropolitan Redevelopment Authority. business solutions specialist. Take up membership now She is a past recipient of the WA Business News 40under40 awards. companydirectors.com.au

$59,756,205,212 changed hands in WA corporate deals in 2011

342 equity capital transactions 180 mergers and acquisitions

most active month was December most active accountant did 27 deals

97 directors were involved in multiple transactions Magnus was the fi fth most active PR team

the second most active law fi rm was Freehills one adviser completed 96 transactions

For the comprehensive database of 2011 WA deals visit

helping business grow www.wabusinessnews.com.au/Corporate-Finance

18 | February 9, 2012 www.wabusinessnews.com.au WA Business News | FOR THE RECORD ■

FACT FILE Compiled by Dan Wilkie

Capital Raisings than $1 billion in equipment supply contracts for the Ichthys liquefied WA miners raise $45m natural gas project off the coast of 03-February-2012 by Tim Fettis Western Australia. Five small and mid-cap miners Under the contracts, GE will provide including Papillon Resources, rotating equipment, including gas Coalspur and Condoto Platinum have turbines and compressors for Inpex’s raised a total of $45 million in new proposed LNG processing plant, capital to support operations that which will be constructed at Blaydin stretch from West Africa to Canada. Point near Darwin. Papillon Resources has raised Also, GE will supply subsea $16 million through a placement, production systems for the offshore managed by Azure Capital, of 21 portion of the project, as well as million shares at 76 cents to a large subsea connectors connecting the number of London based institutional gas field, in the Browse Basin, to the investors. LNG plant at Darwin. The raising will allow Papillion to Inpex expects to start producing LNG continue its infill and extension at Ichthys by the end of 2016. drilling program at the Fekola gold GE chief executive Dan Heintzelman project in Mali. said the equipment under the new Bannerman Resources said its contracts would be supplied by share-purchase plan had closed 2014. oversubscribed, raising $4 million Monadelphous adds $180m through the issue of 17.8 million work to busy order book shares at 22 cents. Bannerman has agreed to place a 30-January-2012 by Dan Wilkie further 8 million shares to existing Engineering and contracting group institutional investors at the price of Monadelphous has won two new 22 cents to raise $1.8 million. contracts worth a combined $180 The placement was managed by GMP million with Rio Tinto and Chevron, Securities Australia. a week after announcing it would The SPP and placement brings new exceed its initial profit guidance for equity raised by Bannerman in the the first half of financial 2012. last two months to $14 million. AGREEMENT: Argonaut Securities’ Charles Fear (left) and Eddie Rigg were pleased to For Rio Tinto, Monadelphous will Proceeds from the recent financial construct and install a 10 gigalitre transactions will be used to fund announce Sino Gas and Energy had signed the company as corporate adviser. Photo: Grant Currall per year potable water supply the completion of a feasibility study system, stretching from the Bungaroo on Bannerman’s flagship Etango DJ Carmichael, Casimir Capital, $40 million takeover bid for the base trading, distribution, processing Valley to the West Pilbara Supply Uranium project in Namibia by March Shore Capital and Old Park Lane metals explorer. and manufacturing firm Novo Scheme at Millstream. 2012. Capital acted as brokers to the Magma shares were up five cents, or Group, which is dual listed on the The system will include a bore Condoto Platinum raised $4.2 million placement. 62.5 per cent, at 13 cents at 1251 Hong Kong and Singapore stock field and 87 kilometres of transfer through its placement, managed by AEDT, while Panoramic shares were exchanges. pipeline and a pump station. Veritas Securities, to fund exploration International Petroleum to Under the second contract, for raise $US35m one cent lower at $1.26. The agreement secures all iron ore of its Condoto site in Columbia. Panoramic already holds a 9.34 per produced from the mine for its first Chevron, Monadelphous will prepare and construct a carbon dioxide Canadian-Australian miner Coalspur 31-January-2012 by Staff reporter cent interest in the target, making it two years, and follows a two-year injection pipeline and well sites for said the company’s largest Tony Sage-chaired International Magma’s second-largest shareholder deal signed with a Singaporean the Gorgon liquefied natural gas shareholder, Highland Park Group, Petroleum has reported strong behind Anglo Pacific Group, according trading company. project on Barrow Island. had exercised its share options interest in its recent share to IRESS data. IronClad executive chairman Ian Mr Velletri said the latest contracts to purchase 15 million shares at placement, saying it has received Under the offer, Magma shareholders Finch said inaugural shipments of take the total value of new work 80 cents, compared to Coalspur’s firm commitments to raise $US35 will receive two Panoramic shares for direct shipping ore from Wilcherry Hill secured by the company in financial current trading price of $1.72. million, $US10 million more than every 17 Magma shares held, giving for sale to Chinese steel mills were 2012 to more than $1.5 billion. The investment provides an initially proposed. the target an implied value of 14.94 due to commence in the second additional $12 million of capital for The placement, originally booked to cents per Magma share, based quarter of this year. Thiess JV in $260m Coalspur’s projects, including the raise $US25 million, was priced at on the suitor’s closing share price Wheatstone deal Vista coal project in Alberta, Canada. 20 cents per share. yesterday of $1.27. ISS signs on with Oil Search 30-January-2012 by Dan Wilkie Golden Rim Resources was also Mirabaud Securities acted as Magma has not yet responded to 02-February-2012 by Staff reporter successful in its investment raising bookrunner to the placement, while Panoramic’s proposal. Oil Search has signed a contract with A joint venture between Thiess efforts, bringing in $6.9 million Paterson Securities is acting as Perth-based ISS Group for the supply and Belgium’s Besix SA has won a through a placement to fund drilling AHG acquires Victorian dealer selling agent. of management solutions software $260 million contract at Chevron’s and exploration projects in Burkina The Perth-based oil and gas explorer, network for the PNG LNG project in Papua Wheatstone liquefied natural gas Faso and Mali. which is listed on the National Stock 31-January-2012 by Dan Wilkie New Guinea. project. Bell Potter Securities acted as lead Exchange of Australia (NSX) owns Automotive Holdings Group ramped ISS announced today that Oil Search The joint venture will construct the manager to the placement. a series of oil and gas exploration up its push into Victoria, acquiring all had contracted to use its Babelfish breakwater and materials offloading Golden Rim expects to finalise a assets in Russia and Kazakhstan. but one of Jeff Wignall Group’s 10 car suite of products at PNG LNG for facility for Wheatstone under the contract shortly undertaking 1,500 It said it remained focused on dealerships for $14 million. the next nine months, in return for deal, which was announced by Thiess metres of diamond drilling at the exploration at those projects, but The nine JWG dealerships to be $600,000. today. Balogo project in Burkina Faso, after would continue to scour the market acquired comprise four Ford dealers, The contract with Oil Search follows The project will create more than 300 the recent completion of drilling in Russia and Africa for additional four Kia dealers and a Mitsubishi last month’s announcement that jobs, with the majority of the new contracts at the site. acquisition opportunities. dealer, at five locations throughout Chevron had also signed a deal with work based in Onslow. Thiess managing director Bruce Rico, Tangiers launch capital Following completion of the Victoria’s Mornington Peninsula. ISS to use the Babelfish suite of Munro said 80 per cent of the work placement, International Petroleum The acquisition remains subject products. raisings under the contract would take place would have a market capitalisation of to the approval of automotive The software enables real-time 30-January-2012 by Dan Wilkie in Australia. around $224 million. manufacturers, AHG said in a monitoring and data capture for The contract is Thiess’ second win Perth-based resources juniors Rico statement. operations, engineering and business at Wheatstone, having previously Resources and Tangiers Petroleum AHG managing director Bronte management. Mergers and Acquisitions secured a micro-tunnelling deal from have announced plans to boost their Howson said the acquisition was a Chevron. coffers, launching capital raising ElDore in $US4.4m mine significant addition to the group’s Clough wins $350m Thiess is also currently completing initiatives worth nearly $12 million acquisition Victorian operations. Wheatstone deal the accommodation village for combined. 03-February-2012 by Staff reporter 02-February-2012 by Staff reporter Rico said it had successfully raised Chevron, for its Gorgon project at $2.9 million through the direct Perth-based exploration junior ElDore Contracts and Deals Clough has won a $350 million Barrow Island. contract at Chevron’s Wheatstone placement of 17 million shares to Mining has announced a major gold IronClad signs offtake deal for Work on the Wheatstone breakwater sophisticated investors at 17.5 cents mine acquisition in Zimbabwe, that it liquefied natural gas project off the facility is due to start later this year. says paves the way for it to become Wilcherry Hill coast of Western Australia. per share. Argonaut to advise Sino Rico will also offer shareholders a 1 a significant producer in 2012. 02-February-2012 by Dan Wilkie The 40-month deal will see Clough for 28 non-renounceable entitlement ElDore announced to the ASX today IronClad Mining says it will ramp provide labour, materials and a Gas and Energy issue, at the same terms as the that it had signed an agreement to up construction at its Wilcherry Hill support vessel for the offshore hook- 30-January-2012 by Staff reporter placement, to raise an additional acquire the Lonely gold mine, located iron ore joint venture, after signing up and commissioning component of Perth-based advisory and $2.5 million. 80 kilometres north of Bulawayo, a four-year offtake agreement with a the Wheatstone project. stockbroking firm Argonaut has been The company said the raising would for cash and scrip considerations of Chinese firm. Project management will be executed appointed by Sino Gas and Energy allow it to continue to progress its $US4.4 million. Ironclad announced today that Hong from the company’s Perth head Holdings as its corporate advisor. Wonmunna iron ore exploration The Lonely mine has historical Kong-based resources investment office, with engineering and technical In connection with the appointment, project in the Pilbara. underground production of up to 1.1 group New Page Investments, which teams deployed at its fabrication yard Argonaut will receive 30 million Also today, Tangiers Petroleum million ounces, and was the largest invested $6 million in IronClad last in Korea and the offshore platform, options, exercisable at 7.5 cents on announced a private placement book single gold producer in the region month through a share placement, Clough said. or before five years from the date build to raise $6.35 million, priced at until its closure in the mid-1990s. would take 50 per cent of annual Chief executive Kevin Gallagher said of issue. 50 cents per share. production from the Wilcherry Hill the project would see Clough employ Sino Gas said Argonaut would Panoramic in $40m bid for more than 300 people. Tangiers, which is also pursuing Magma Metals mine for its first four years. assist its pursuit of non-dilutive a listing on London’s Alternative Ironclad is developing Wilcherry Hill in GE wins $1bn Ichthys financing opportunities to progress Investment Market, said it would use 03-February-2012 by AAP an 80:20 joint venture with Trafford its exploration projects towards the funds to advance its exploration Shares in Magma Metals have Resources. supply deal development. program in Australia and Morocco skyrocketed after nickel miner New Page Investments is a major 31-January-2012 by Staff reporter and fund the AIM listing. Panoramic Resources launched a shareholder in Chinese steel GE Oil and Gas has won more Continued page 20

WA Business News www.wabusinessnews.com.au February 9, 2012 | 19 ■ FOR THE RECORD | SALES SESSIONS

FACT FILE

From page 19 last month that the Telfer drilling the company to progress feasibility program had been terminated early. studies and the procurement Sino Gas’ main assets are located Coretrack advised that the drill of long lead time items. It will Jeffrey Gitomer in China’s Shanxi province, covering rig would require costly and time also allow for dredging to begin, an area of 3,000 kilometres in the consuming modifications to meet subject to the necessary regulatory Ordos Basin, China’s second largest the required level of output. approvals. onshore oil and gas producing area. The termination of the licensing In parallel with this work, The company has drilled a total of agreement means Coretrack would engineering studies are underway to 15 wells in the basin as it looks to Best value is about be unable to secure funding to match mine and rail expansions to ramp up exploration efforts. address the drill rigs’ apparent the expanded port capacity. limitations, required for Newcrest’s Briefs specifications. BHP may cut 155 Nickel more than just price Coretrack CEO Bernie Kelly said the West jobs Coretrack and Strange in company would look to move away 01-February-2012 by AAP licensing dispute from its Globe Drill business. WHY are you fighting with procurement and purchasing? (The following BHP Billiton may cut up to 155 jobs 02-February-2012 by Tim Fettis article is a reality and a strategy, not defamation or a tactic.) Port Hedland expansion gets from its Nickel West business as it The concept: Why purchasing and procurement departments should be Coretrack is planning to wind $US917m commitment curbs activity and restructures roles down its Globe Drill business after avoided, and how to do it. 02-February-2012 by Staff in reaction to a depressed nickel The reality: Purchasing and procurement are a way of life. disclosing a legal dispute over price and a strong Australian dollar. its license agreement and poor reporters and AAP Your reality: Your total lack of C-level relationships makes your life a BHP Billiton said in an emailed performance of its GT3000 drill rig. BHP Billiton and its partners have sell-from-the-bottom-up proposition. statement that Nickel West was The company said that Strange committed $US917 million ($A866 restructuring functional support Here’s your self-test Investments has terminated the million) to a port project that could • Are you relegated to ‘purchasing’ as part of corporate policy? areas of its business in Western IP license agreement (signed in increase its Western Australian iron Australia, mostly based in Perth, to • Are you prevented from talking to the person who actually uses the January 2010), which permitted ore exports by 100 million tonnes streamline the company. product you’re trying to sell? the manufacture and use of the each year. About 120 employees and GT3000. The funds are for an outer harbour • Are you making decisions as to how much profit you’re willing to contractors may be affected by the Coretrack has said that it will development at Port Hedland that sacrifice to secure the business? restructure. commence legal action immediately would include a four-kilometre jetty, • Are you bullied into ‘matching price’ to get the order? Nickel West also intends reduce • Are you being ‘told’ what your price will be in order to do business? against Strange Investments for a four-berth wharf, 32 kilometres loss of earnings and damages. of dredged departure channel and the rate of mining at its Mt Welcome to the club of losers. Not people, profit. Strange Investments has alleged infrastructure such as stockyards Keith operation in WA’s Northern The purchasing department or the procurement department has one Coretrack breached the IP license and a rail spur. Goldfields for about 12 months, major job – to save their company money. Oh wait, let me complete that agreement by fitting improvements BHP’s share of the project is potentially affecting about 30 jobs. sentence as it relates to you ... to save their company money, at your or accessories to the rig and US$779 million while its partners, BHP Billiton said the success of its expense. promoted and used the GT3000 Itochu Minerals and Energy of Talc Redesign project, which enables In general, when you deal with the procurement department and their for its contract at Newcrest’s Australia, Mitsui-Itochu Iron and the Mt Keith concentrator to process people, keep in mind: Telfer gold mine without licensor Mitsui Iron Ore Corporation, have talc-bearing ore types, will allow • they don’t care about quality; agreement. also committed funds to the mining activity to be reduced. However, production will be • they don’t understand outcome; Coretrack disputed the alleged project, taking the total value to maintained through the use of • they don’t understand the need for service after the sale; breaches. $US917 million. However it also confirmed that a stockpiled ore. • they don’t understand productivity; BHP said company said the project review of the performance of the is expected to be reviewed for full The mining giant says it will try • they don’t care about morale; GT3000 drill rig, when deployed approval in the fourth quarter of to transfer as many affected • they don’t care about outcome; at Telfer, found that the rig did not calendar year 2012, has an option staff as possible to other parts • they don’t care about vendor relationships; meet its technical and functional to expand by a further 100 million of the company, potentially to its • they don’t care about vendor profitability; specifications. tonnes per year. lucrative iron ore mines in WA’s • they don’t care about you; and This followed an announcement The funds approved will enable Pilbara region. • they never look for the best, just the lowest price. Procurement departments operate under the general principle of, and are measured and rewarded by, ‘We saved a dollar’ but the outcome of the ‘saved dollar’ may be that everyone in the company is unhappy, the product is crappy and breaks down, the service response is slow. Note to BUSINESSES FOR SALE www.buyabusiness.com.au purchasing: It’s also likely the productivity, and low quality, and loss of morale, cost your company 500 times more than what you saved. There’s a ‘rock, paper, scissors’ game of business: CEOs cover purchasing and procurement. If the CEO calls down to purchasing and Manufacturing & service cars, forklifts, bobcat solids netting about $400,000 plus. For says, ‘We’re going with ACME Widgets’, the procurement person says, Price: $3.8m plus stock. and pneumatic tyres. True owner operator. ‘ACME boss? Okay boss’ And that’s it. No proposal, no bid, no price Well-equipped fabrication wholesaler, supplying tyre Jan Gunnink: 08 9486 1000, cutting, no ‘match this price’. Just a purchase order. workshop with core market family reseller etc. Currently operating [email protected] Note well: This is only possible if you have a relationship with the CEO.. connected to the WA mining under full management with Gunnink & Co. Business Brokers Attention purchasing: Here are a few recommendations that eliminate industry. Broad business has very low staff. Trading five days ‘lowest price’ from the final decision. key relationships with mine-site per week only. Price includes Supermarket, liquor 1. Demand testimonials. Don’t just bid. Prove what you promise. infrastructure suppliers. Strong substantial stock ($300,000) store, newsagency 2. Create a range of price acceptance. If the price is within 10 per cent of growth since 2008 and strong and plant ($90,000). Growing Price: $870,000 psav. the lowest bid, the purchasing agent can (and should) choose what he or order book with a turnover of profits. Located in the state's Mid West. she believes is the best product or service. $8.5 million in 2010-11 financial Tony Batista: 08 9481 4422, Large store, very solid business 3. Let your people test the product. year. fax 08 9481 4441 and a reliable investment. Run Goodwin Mitchell O’Hehir 4. Let your people tell you what they want. Kerry O’Hehir: 08 9481 4422, under management. $50,000- 5. Let your people tell you whom they want to do business with. fax 08 9481 4441 Wholesale/distribution 60,000/week. Includes property. The strategy to eliminate, or at least mitigate, the process of starting with Goodwin Mitchell O’Hehir Price: $1.85m. Wayne Cooper: 0407 99 7777 purchasing, is to have a relationship with the person or people that direct Civil engineering/ This business has developed a Statewide Business Brokers them. You can be recommended and you can be the standard used for earthmoving strong distribution network in a Pilbara logistic & selection. niche market segment. Supplies Price: $2.8m. You can have a history of success at other companies based on quality, independent supermarkets transport Over 30 years in the industry; among other specialist outlets. Price: $7.3m. productivity, results, and profitability – and present proof of this as a 6,000sqm facility including Well-structured management is in Professional, modern operation, price alternative. You can have a social media presence that allows your workshop. Gantry crane offices place. Sales are in excess of $6 servicing speciality oil, gas and customers to provide feedback. and hardstand. Extensive P & E, million per annum and growing. mining sectors; major client base. You can write value-based articles that C-level people might read. This experienced staff. Administrative This business will not disappoint. Large turnover,good profitability. can get you in direct contact with decision makers. owner. Subdivisions, roadworks, Con Mast: 08 9481 4422, Good reputation. Fully equipped Note well: These 750 words are not going to resolve the issue, and are earthworks, drainage, house fax 08 9481 4441 workshops, stable workforce. certainly not going to eliminate the purchasing department. In most cases, pads, dams, clearing, bitumen Goodwin Mitchell O’Hehir Wayne Cooper: 0407 99 7777 purchasing and procurement are a vital part of any large company. The paving. P & E valued at over $2.6 Statewide Business Brokers challenge I’m issuing is that it is not just a price decision. ‘Bidding’ is a million. Recycling & disposal losing proposition. ‘Best’ and ‘value’ are the winners. Miles McNaughton: 08 9481 Import/distribution 4422, fax 08 9481 4441 (e-waste) If you’re a purchasing agent and you personally need heart surgery or a Price: $900,000. Price $2.95m including stock. Goodwin Mitchell O’Hehir hip replacement, do you want best, or lowest price? Think about it. Unique business that has grown Well established, market leader. Wholesale/import every year for the past four years High GP, only three staff, could be Jeffrey Gitomer is the author of The Sales Bible, Customer Price: $675,000. since it was established. All merged. Turnover $5.46m, EBITDA Satisfaction is Worthless Customer Loyalty is Priceless, The Little Industrial and commercial tyre indicators show it is growing this $950,000. Red Book of Selling, The Little Red Book of Sales Answers, The Little wholesaler/importer. WA;s financial year another 15 to 20 David Knowles: 0412 195 402 Black Book of Connections, The Little Gold Book of YES! Attitude, sole brand importer. Trucks, per cent turnover. The business is Zircom The Little Green Book of Getting Your Way, The Little Platinum Book of Cha-Ching, The Little Teal Book of Trust, The Little Book of Leadership, and Social BOOM! His website, www.gitomer.com , will lead you to more information about training and seminars, or email “Profit From Our Experience” phone 9481 4422 [email protected] © 2012 all rights reserved

20 | February 9, 2012 www.wabusinessnews.com.au WA Business News | COMMUNITY & ARTS SECTOR ■ Fitness and fundraising the perfect pairing

■ Emily Morgan

THE combination of physical activ- ity and fundraising for a good cause has proved a near-faultless model in recent years, with swimming, run- ning and cycling among the many ways of raising a dollar. Of course there are the long- running events such as the Rottnest Channel Swim, which raises funds for Royal Flying Doctors Service, the Fremantle Volunteer Sea Rescue Crew and the sick children’s support organisation, Starlight Foundation. Its smaller cousin, the Swim Thru Rottnest, was started in 1977 and is run by the Cottesloe Crabs Winter Swimming Club, which has raised $136,000 for the Royal Perth Hospital Bone Marrow Transplant Unit since 1989. The Activ Foundation started a fun run in 1975 that became the City to Surf. Last year, a new structure was introduced to allow participants to IN THE SADDLE: Rodney Olsen is passionate about cycling and raising cancer awareness and funds for the Cancer Council. raise funds through sponsorship for Photo: Grant Currall their chosen charity. The sponsorship of events like these is a big drawcard for event Cycling fundraisers may have “It would be wonderful with the organisation and support would be we have a really good vehicle to organisers and charitable organisa- been around for more than 30 years cancer rides if we could just say to needed beyond 20 riders. raise awareness in that we have a tions. Chevron signed on as the City or more, but the number of events people, ‘we really need money for During the event, Mr Olsen radio program for a week that is to Surf naming rights sponsor last in Western Australia has grown in the Cancer Council’ and they would broadcasts his Morning Café pro- really discussing those types of year, taking over from Rebel Sport, recent years, with two rides in aid sign on the dotted line and give gram from the different locations issues.” while the Rottnest Swim naming of cancer research coming online money, but sometimes it is helpful and towns the riders visit, and Another fundraising bike ride to rights sponsor is HBF, which also – what one American organisation to have other things happening so information is relayed to listeners be held this year will be the WA gives its name to the HBF Run for calls the Tour de Cure. that it inspires people,” he said. about cancer research and stories Institute for Medical Research’s a Reason. Sonshine FM presenter Rodney Mr Olsen, who organises the of individuals affected by cancer; Sunsuper Ride to Conquer That event aims to raise $400,000 Olsen founded a fundraising ride event with the help of other volun- it is an element that creates a point Cancer. Organisers are hoping to for charities, mainly Lifeline WA, between Albany and Perth in teers, said he can carry the weight of difference for the event, he said. attract 1500 riders to the event, a Heart Foundation WA, Diabetes WA 2009 to raise funds for the Cancer of the organisation until it grows “To give people an understanding 200-kilometre ride over two days or Cancer Council WA. Council. to 20 participants, which will most that if they are going through some- in October. Autism West’s main fundraising Mr Olsen said sporting fund- likely happen this year. thing like that (cancer) or someone Another event, the Santos Great event is the iiNet Team Sprint Cup, raisers were a great way to raise At the moment the riders gain a they love is going through some- Bike Ride for Charity, was estab- a team-based relay sprint race that awareness of cancer and the issues lot of support from local people in thing like (cancer) was a big part of lished by the Rotary Club of Perth raised $150,000 for the organisation surrounding the disease, and that the towns they pass through on their what I wanted to do, get that infor- in 2004 and raises funds for St John last year and $400,000 over the past the effort by participants in an way from Albany to Perth in the mation out there,” Mr Olsen told of God Healthcare’s youth support four years, all to raise awareness of arduous ride from Albany to Perth way of accommodation and meals, WA Business News. and outreach arm, Horizon House, the challenges facing families with a ‘compelled’ people to donate to the which keeps the cost of the event to “The two sides are equal, raising as well as Hope for Children and child on the autism spectrum. cause behind the event. a minimum, but a greater level of funds and raising awareness, and Heart Foundation. B MK_LOTC0007_F

When you give you always get so much more

Since 1994, Foodbank has rescued over 22 million kilos of fresh food that was once destined as landfi ll. With help from a Lotterywest grant, a dedicated team of staff and volunteers collect unwanted goods from food company partners and distribute it around WA to various community organisations. In doing so, they provide regular nutritious meals to tens of thousands of Western Australians in need. So while it’s easy to put a price on our support, it’s impossible to measure the true worth to WA’s community.

WA Business News www.wabusinessnews.com.au February 9, 2012 | 21