News

August 19, 2008

Spitfire Resources Looks For A Quick Fire Start On Its Manganese And Coal Projects In Australia

By Rob Davies

Any company that boasts a share price that is the same now as when it listed in December 2007 has clearly got something going for it. A sad reflection of the market, but a positive comment on the state of play at Spitfire Resources. In the case of Spitfire, it’s exposure to two commodities that are very much in demand right now and are enjoying high prices. The market likes the exposure Spitfire offers to manganese and coal, even if it isn’t in production yet. Normally these two bulk commodities occur in large deposits which require massive capital expenditure and long lead times to get them into production. What is special about this company is that there is a good chance for it to fast track into production in a small way, by taking advantage of excellent infrastructure in the two areas it is working in: Western Australia and Tasmania.

While mining investors are happy to invest in Western Australia some have had unhappy experiences in Tasmania. Just ask those who’ve been burned time and again by, amongst other things, government procrastination over the tin and sapphire project owned by Van Dieman Mines. Minews asked James Hamilton, executive chairman of Spitfire, whether he was concerned about the “green risk” in Tasmania, and his reply was that it is “manageable”.

Tasmania is not renowned for its coal, but it is there in...