Trafford’sluckyseven
Ian Finch
Managing Director
Trafford Resources Ltd
Working creatively and flexibly towards its vision of becoming
a fully self-funded exploration company since listing in 2006,
Trafford has insulated itself against the difficult period the
industry is currently experiencing through their diverse portfolio
and liquid asset base. After paying a dividend in 2010 (a rare
feat for an exploration company), it is now well positioned to
share even more good news, having arrived in 2013 – its lucky
seventh year.
Ian compares Trafford’s situation to that of Western Mining in
the 1960s, putting a lot of emphasis on exploration with the intent
of going into production. The company ran into the nickel boom in
Australia and subsequently went on to great things.
“
It took Western Mining seven years to get the cash flow
moving,” said Ian. “Similarly at Trafford we are seven years
in and a number of our assets are maturing. For example our
iron ore arm, IronClad Mining, is about to go into operation at
Wilcherry Hill in South Australia and start returning income to
the business. This may be slower than we would have liked due
to the industry climate, but we are dedicatedly driving it into
production and cash flow.”
By maintaining a diverse and flexible portfolio of assets
Trafford has overcome the conundrum of exploration – investing
without earning income at a time when investors generally are
not investing. Trafford, however, has a good relationship with its
investors, said Ian, “and we have diversity, with different projects
in different commodities in different jurisdictions”.
These projects include the third largest stake of exploration title
in South Australia by any company, and licences for gold and iron
ore exploration here in the West. Added to this is their initial stake
in South America’s gold exploration through Orinoco Resources
in Brazil. On the back of the Orinoco success, Trafford has also
just expanded its operations into Colombia with the establishment
of an office from which it is assessing worthy exploration targets.
Trafford is also flexible enough to respond to changing
conditions. “Our broad portfolio and liquid assets allow us to move
quickly when the next commodity hits the big time and becomes
the market darling overnight.”
Regardless of which commodity luck favours, going forward
Trafford remains well positioned for opportunities presented by
any market conditions, just as it was when the softer market at
the cusp of the GFC provided the right environment for Trafford to
invest in Robust Resources. This returned millions in dividends to
the company and shareholders as the projects were realised.
Another significant investment which it believes will pay
similar dividends down the track is Trafford’s stake in the
Brazilian gold exploration company, Orinoco Resources.
Enduring exploration company shares more good news
Twin Peaks, WA. Trafford Resources 80%/20% joint venture with Independence Group; 20 kilometres mapped strike length, 17 prospects identified
Trafford Resources Managing Director, Ian Finch, was a spectator
in the gallery when world champion golfer Gary Player played his
most astonishing shot. Sinking the hole by bouncing the ball off
the flag from out of a bunker, Player quipped, “The harder I work,
the luckier I get”. The business of resource exploration is a lot like
golf, Ian reflected when talking to
Minesite
,
because it requires the
same dedication and skill. That is why Player’s adage has been
adopted by the Trafford team.
Minesite 2013
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