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

*day of announcement A On market trade | B Off market trade | C Exercise of options | D Rights issue | E Share purchase plan | F Shares issued as a result of the satisfaction of performance shares milestone | G Conversion of performance rights | H On-market trade of shares towards tax liability on shares Please direct enquiries to kirat.kaur@wabn.com.au

WA Business News www.wabusinessnews.com.au February 7, 2013 | 17

CHANGES IN DIRECTORS’ INTERESTS | FOR THE RECORD !

Atlas Pearls and Perfumes Stephen Birkbeck 30-Jan-13 6,018,172 0.050 300,909 36,109,027 0.045 1,624,906 D

Atlas Pearls and Perfumes Geoffrey Newman 30-Jan-13 128,000 0.050 6,400 1,411,295 0.045 63,508 D

Atrum Coal Eric Lilford 30-Jan-13 187,500 nil nil 187,500 0.340 63,750 F

Atrum Coal Gino D’Anna 30-Jan-13 625,000 nil nil 5,743,000 0.340 1,952,620 F

Atrum Coal Russell Moran 30-Jan-13 625,000 nil nil 17,525,000 0.340 5,958,500 F

Atrum Coal James Chisholm 30-Jan-13 625,000 nil nil 18,501,000 0.340 6,290,340 F

BC Iron Morgan Ball 30-Jan-13 3,891 3.040 11,829 136,423 3.520 480,209 E

BC Iron Malcolm McComas 30-Jan-13 3,891 3.040 11,829 33,891 3.520 119,296 E

BC Iron Anthony Kiernan 30-Jan-13 3,891 3.040 11,829 678,354 3.520 2,387,806 E

BC Iron Terrence Ransted 30-Jan-13 3,891 3.040 11,829 626,492 3.520 2,205,252 E

Chalice Gold Mines Tim Goyder 01-Feb-13 255,991 0.180 46,078 33,980,333 0.190 6,456,263 A

Ferrowest Brett Manning 01-Feb-13 80,000 0.030 2,403 4,440,000 0.032 142,080 A

Fortescue Metals Group Neville Power 01-Feb-13 245,369 nil nil 1,111,690 4.790 5,324,995 G

Leyshon Resources Paul Atherley 01-Feb-13 1,800,000 0.229 412,912 31,330,000 0.230 7,205,900 A

Midwinter Resources Adrian Griffi n 01-Feb-13 10,000 0.075 750 1,012,182 0.074 74,901 A

Mirabela Nickel Ian Purdy 30-Jan-13 70,509 nil nil 421,369 0.485 204,364 G

TFS Corporation Frank Wilson 30-Jan-13 38,114 0.498 18,962 46,076,493 0.530 24,420,541 A

Truscott Mining Corporation Peter Smith 01-Feb-13 40,000 0.063 2,520 23,051,203 0.063 1,452,226 A

TUC Resources Anthony Barton 31-Jan-13 200,000 0.120 24,000 12,413,146 0.110 1,365,446 A

Mirabela Nickel Ian Purdy 30-Jan-13 350,000 0.476 166,760 71,369 0.485 34,614 H

WA SCORECARD Compiled by Warrick Ambrosa, Economist, CCI

Monthly Indicators Period Latest Nov 12 Dec 11Unemployment Rate WA Dec 12 4.3% 4.1% 4.2%Seasonally Adjusted Rate Australia Dec 12 5.4% 5.3% 5.2%

Period Latest Month Year

Employment WA Dec 12 1,313,500 0.0% 4.7%Seasonally Adjusted Number Australia Dec 12 11,538,900 0.0% 1.3%ANZ Job Vacancies WA Sep 12 1,174 -10.0% -33.2%Seasonally Adjusted Number Australia Sep 12 6,192 -3.6% -25.1%Residential Building Approvals WA Nov 12 1,906 -1.0% 35.9%Seasonally Adjusted Number Australia Nov 12 13,307 2.9% 13.2%Retail Turnover, Current Prices WA Nov 12 $2.7Bn -0.3% 8.6%Seasonally Adjusted Value Australia Nov 12 $21.5Bn -0.1% 2.9%New Motor Vehicle Sales WA Dec 12 11,590 1.7% 27.8%Seasonally Adjusted Number Australia Dec 12 98,264 2.2% 17.9%Exports WA Nov 12 $9.6Bn 2.0% 2.0%Original value Australia Nov 12 $20.3Bn -0.2% -7.5%Imports WA Dec 12 $2.78Bn -7.1% 6.6%Original value Australia Dec 12 $18.46Bn -19.2% -8.0%Australian Dollar Australia 19 Dec 12 US$1.05 1.4% 5.8%All Ordinaries Index Australia 28 Jun 12 4,085.6 -0.8% -9.5%

Quarterly Indicators Period Latest Quarter YearConsumer Price Index Perth Dec 12 155.5 0.3% 2.1%Index, 1989-90 = 100 Australia Dec 12 155.5 0.2% 2.2%Full Time Ordinary Time Earnings WA Jun 12 $1,515.2 0.0% 2.9%Seasonally Adjusted $ per week Australia Jun 12 $1,351.2 0.4% 3.4%Population WA Jun 12 2,430,252 0.8% 3.3%Original, Number (Millions) Australia Jun 12 22,683,600 0.4% 1.6%Domestic Demand WA Sep 12 $41Bn 2.3% 9.6%Seasonally Adjusted, 2003-04 Prices Australia Sep 12 $326Bn 0.2% 3.7%Business Investment WA Sep 12 $11.9Bn 5.9% 18.3%Seasonally Adjusted, 2003-04 Prices Australia Sep 12 $49.4Bn 2.6% 11.4%Gross Domestic Product WA - - - -Seasonally Adjusted, 2003-04 Prices Australia Sep 12 $325.7Bn 0.5% 3.1%Balance of Payments Goods & services Sep 12 -$4.8Bn -$5.6Bn -$10.2BnSeasonally Adjusted Value Net Income Sep 12 -$10.9Bn -$1.9Bn $2.5Bn

Current Account Sep 12 -$15.9Bn -$7.4Bn -$7.6Bn

Sources: Australian Bureau of Statistics, Reserve Bank of Australia, Yahoo! Finance, Real Estate Institute of Australia, International Monetary Fund, Economic & Social Research Institute of Japan, US Bureau of Economic Analysis, EuroStat.

change during past:

Previous levels

change during past:

DECREASE HOLDER OR DATE NUMBER PRICE TOTAL CURRENT VALUE TOTAL COMPANY INTERESTED PARTY DISPOSED PER SHARE ($) REALISED ($) SECURITIES PER SHARE ($)* VALUE ($)*

Credit growthTOTAL credit outstanding in the national economy rose by 0.4 per cent in December, to stand 3.6 per cent higher over the year, according to the Reserve Bank. However, the housing credit rut continues, with housing debt growing by just 4.5 per cent over the past 12 months. Other household credit, such as credit card balances and personal loans, rose slightly on the month, but still declined by 0.3 per cent over the year.Source: Reserve Bank of Australia

Terms of tradeAUSTRALIA’S terms of trade – the price of our exports divided by the price of our imports – fell by 2.7 per cent in the December quarter, the fifth consecutive quarterly decline since the terms of trade peaked in September 2011. The fall was largely driven by a decline in export prices. For export prices, the most significant fall was for coal, which were off by 10.1 per cent in December, while metal ore prices declined by 4.2 per cent. Grain prices rose 10.2 per cent.Source: ABS Cat. 6457.0

US real GDPON a full-year basis (that is, comparing the full-year 2012 to full-year 2011), the US economy grew by 2.2 per cent – above the 10-year average of 1.7 per cent. Most US growth in full-year 2012 was driven by domestic private sector activity. Household spending and business investment, which make up 90 per cent of activity, added 2.6 percentage points to GDP over the year. Government spending shaved 0.3 percentage points off growth; the trade balance was flat.Source: Bureau of Economic Analysis

40

50

60

70

80

90

100

110

40

50

60

70

80

90

100

110

Dec 92 Dec 96 Dec 00 Dec 04 Dec 08 Dec 12

TERMS OF TRADEAustralia, 2011-12=100

-10%-5%0%5%10%15%20%25%30%

-10%-5%0%5%

10%15%20%25%

Dec 02 Dec 04 Dec 06 Dec 08 Dec 10 Dec 12

VALUE OF CREDITAustralia, Annual % Change

Total Housing Business

-6%

-4%

-2%

0%

2%

4%

6%

-6%

-4%

-2%

0%

2%

4%

6%

Dec 02 Dec 04 Dec 06 Dec 08 Dec 10 Dec 12

GROSS DOMESTIC PRODUCTUnited States, % Change

Quarterly Annual

Stephen BirkbeckManaging Director

Atlas Pearls and Perfumes*

Shares acquired 6,018,172

Total cost of purchases$300,909

Value of total shareholding

$1.62m* Formerly Atlas South Sea Pearl

Frank WilsonManaging Director

TFS Corporation

Shares acquired

388,000*

Total cost of purchases

$168,746*

Value of total shareholding

$24.42m* 3 trades over past month

18 | February 7, 2013 www.wabusinessnews.com.au WA Business News

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COMINGS AND GOINGS

Comings & Goings for WA’s listed companies have been sourced from the WA office of the ASX.

• Adavale Resources Richard Poole, Roger Steinepreis and Phillip Suriano have resigned as non-executive directors and will be replaced by Albert Cheok and Saharto Sahardjo.

• Ascot ResourcesJoseph van den Elsen has been appointed as a non-executive director.

• Astro Resources Michael Povey has been appointed as a non-executive director.

• Auroch MineralsDean Cunningham, Jan Nelson and Glenn Whiddon have been appointed to the board, following the resignations of Benjamin Bussell, Robert Jewson and Matthew Foy.

• Caravel Minerals AFG managing director Brett McKeon has been appointed to the board. Chairman David Archer and non-executive director Matthew May have resigned.

• Central Asia ResourcesNon-executive director Mike Michael has resigned.

• Centrepoint AllianceNon-executive director Christopher Castles has resigned.

• CMATrevor Schmitt has resigned as chief financial officer, director and company secretary. Chief executive officer John Pedersen will take on the responsibilities of CFO until a replacement is appointed.

• Coziron Resources Robert Ramsay has been appointed to the board, while Eddie Soong has resigned as a director.

• Coventry ResourcesCanada-based Aura Silver Resources president and chief executive Robert Boaz has been appointed as an independent director.

• Eclipse MetalsNon-executive director Shane Casley has resigned.

• Emu NickelGavin Rutherford has been appointed as a non-executive director.

• Gladiator ResourcesDavid Argyle and Alec Pismiris have been appointed to the board, following the resignation of non-executive director Stuart Hall. Mark Gordon has been appointed as non-executive director following the resignation of Len Dean.

• Kairiki EnergyIMC Pan Asia Alliance (Singapore) director Steven Wood has been appointed as a non-executive director.

• KalNorth Gold MinesChairman Laurence Freedman intends to retire in two months’ time.

• Lochard Energy GroupDirectors Peter Youd and Mike Rose have

resigned, following the company’s decision to relocate to the UK and delist from the ASX.

• Navigator ResourcesNon-executive director Ian Macpherson has resigned.

• NSL ConsolidatedDirector Peter Wall has resigned.

• ORHKevin Dundo has been appointed as a non-executive director, following the resignation of Geoff Hann.

• Parker ResourcesDirector Jay Stephenson has resigned from the board, but remains as joint company secretary.

• QuestusCrest Capital Asia managing partner Peter Chan and investment manager Katherine Ang have been appointed to the board.

• Red5Former Macmahon Holdings executive Johannes Norregaard has been appointed as managing director. The position is Perth-based, but it is anticipated a considerable portion of the first six months will be in the Philippines.

• Red Fork EnergyPerry Gilstrap is retiring from the board, effective Feb 18, but he will continue in a consulting role for the next 12 months.

• Redcliffe ResourcesSimon Griffiths has been appointed as a non-executive director.

• Seven West MediaNon-executive director Sam Walsh has resigned, following his appointment as chief executive of Rio Tinto and his relocation to the UK.

• South Boulder MinesChief operating officer and former BHP Billiton senior manager Paul Donaldson has been appointed as chief executive officer, following the resignation of managing director Lorry Hughes. Mr Hughes will support the transition of the newly appointed CEO for a period of up to six months.

• Sun BiomedicalHoward Digby has been appointed as chairman, replacing Terry Cuthbertson, who remains as a non-executive director. Peter Webse has been appointed as a non-executive director.

• United OrogenJohn Wyatt has been appointed as a director, following the resignation of John Karajas.

• VmotoFormer Coal of Africa managing director Simon Farrell has been appointed as non-executive chairman. Chief financial officer Ivan Teo has been appointed as finance director.

Gillam moves to KellyKurt Gillam has been appointed as Western Australian state manager at global recruitment firm Kelly Services. Mr Gillam was previously the general manager of Alliance Recruitment and Lloyd Morgan.

Egger promoted at APPSteve Egger has been promoted to manager WA, urban development and property at APP Corporation, following the transfer of Kith Clark back to the company’s Sydney office. Mr Egger was previously a project director at the property and infrastructure consultancy.

Keay-Smith to Impact at WorkLois Keay-Smith has been appointed as principal consultant for Impact at Work, specialising in employee and CSR engagement. Ms Keay-Smith has previously held stakeholder engagement roles at the ASX, Rugby WA and was WA manager of the Australian Business and Community Network.

Gunstone to StochasticUpstream oil and gas software company Stochastic Simulation has appointed Michelle Gunstone as digital content and marketing specialist. Ms Gunstone will lead the company’s strategic marketing plan, including for the forthcoming launch of its reservoir modelling software (SRE) and integrated gas field modelling software (ProGen).

Sanderson prof at CurtinCurtin University has appointed Kerry Sanderson to the position of adjunct professor in the Curtin Business School. Ms Sanderson is currently chairperson of Gold Corporation and a non-executive director of Atlas Iron, Downer EDI and St John of God Healthcare. She will act as an adviser on leadership at CBS, including strategic positioning, governance and economic development from a domestic and international perspective.

Squire Sanders grows team Law firm Squire Sanders has expanded its construction team with the appointment of Joe Bennett (pictured) as of counsel in the Perth office, specialising in front-end construction, engineering and infrastructure work. Mr Bennett returns to the firm after five years in the UK and Sydney, most recently as in-house legal counsel and commercial manager for Brookfield Multiplex. Cris Cureton, formerly of Minter Ellison, has joined the Squire Sanders construction team as a partner and will be based in Darwin and Perth.

Raphael returns to MinterMinter Ellison has welcomed back Nada Raphael as special counsel to the Perth office of the law firm. Ms Raphael was most recently senior legal counsel at Fortescue Metals Group, advising on statutory approval processes and compliance.

New WA consultancy businessRussell Rieck, Lynda Bell and Jack Somerville have been appointed as partners at Somerville Partners, a new WA business consultancy that focuses on performance including profit, productivity and risk. Mr Rieck also continues on as chairman of 4HR Consulting Group.

WA Business News www.wabusinessnews.com.au February 7, 2013 | 19

| FOR THE RECORD !

FACT FILE Compiled by Dan Wilkie from daily news reports at www.wabusinessnews.com.au

Continued page 20

lead broker to both the placement and purchase plan.Managing director Phil Gallagher said the company was eager to com-mence drilling as soon as possible following the successful raising.

Northern Minerals secures $58m for Browns Range01-February-2013 by Dan WilkieNorthern Minerals has announced $58 million in financing arrange-ments to fund the completion of a feasibility study at its Browns Range heavy rare earths project near Halls Creek.The funding package includes the sale of a 16 per cent stake in the Browns range project to major shareholder Australian Conglin International Investment Group to raise $26 million, including an offtake agreement covering an ad-ditional 20 per cent of production from the mine.Conglin will also pay $2 million for Northern Minerals’ Gardiner-Tanami gold assets, subject to shareholder approval.Northern Minerals will also launch a share placement priced at 20 cents to raise $3.76 million, and will also kick off a $26.5 million rights issue, which has been fully underwritten by Conglin.Managing director George Bauk said the arrangements would provide the company with security of funding to the start of construc-tion at Browns Range.

Navigator secures $3m to deal with crushing plant failure31-January-2013 by Dan WilkieNavigator Resources has sourced an additional $3 million in working capital from major shareholder Au Mining, to cover a funding short-fall created by operational issues at its Bronzewing gold mine north east of Leinster.Navigator announced today that Au Mining had agreed to increase the project’s working capital facil-ity from $5 million to $8 million.The company said mechanical issues with its crushing facility at Bronzewing required the introduc-

tion of a mobile crushing plant at the site.The mobile facility will allow Navi-gator to perform maintenance on the crusher at Bronzewing while maintaining supply of crushed ore to the mill.Also today, Navigator said discus-sions with Au mining surround-ing an additional $20 million in project finance had advanced, with an agreement expected to be reached “promptly”.“Due to the cash flow impact of the current issues at the Bronzewing processing facility, approximately $5 million of the $20 million will cash needs in February 2013,” the company said in a statement.

Mergers and AcquisitionsRinehart puts Downer on Lakes Oil board01-February-2013 by AAPMining magnate Gina Rinehart has chosen former foreign minis-ter Alexander Downer as her sec-ond representative on the board of oil and gas explorer Lakes Oil.Mrs Rinehart’s Hancock Prospect-ing company snared an 18.6 per cent stake in Lakes Oil earlier this week.As part of the deal, Lakes Oil agreed to appoint climate change sceptic and mining geologist Pro-fessor Ian Plimer to its board.Lakes Oil said Mr Downer had also been nominated by Hancock Prospecting to join the board as a non-executive director.

Kresta gets $3.8m for Malaga factory31-January-2013 by Dan WilkieWindow coverings manufacturer and retailer Kresta has completed the sale of a factory unit in Malaga for $3.8 million.Kresta said $3.1 million of the proceeds from the sale of 391 Victoria Road had been applied to reduce bank debts, while the remaining $700,000 will provide additional working capital.“The factory unit was surplus to

the company’s needs due to the recent rationalisation of manufac-turing operations in Malaga,” the company said in a statement.The company said a further sale of surplus factory units at 38 Mulgul Road is scheduled for set-tlement February 1.Kresta said $1.1 million of the $2.3 million proceeds from that sale would be applied to reducing its bank debts.

Clough acquires commis-sioning contractor e2031-January-2013 by Dan WilkieEngineering and project services group Clough has acquired energy and resources sector commission-ing, completions and hazardous in-spections firm e20 for $14 million.Clough announced the acquisi-tion today, with $9 million in cash being paid on settlement of the deal, and a further $5 million in cash and shares to be paid over a three-year period.e20 is currently working on com-missioning scopes at Chevron’s Wheatstone LNG project, Origina’s Australia Pacific LNG, and Santos’ Gladstone LNG projects.“The acquisition of e20 aligns with our growth strategy, support-ing our plan to strengthen exper-tise in our commissioning and asset support business and to become the pre-eminent commis-sioning contractor in Australia,” Clough managing director Kevin Gallagher said.

Straits to spin off copper, gold assets30-January-2013 by Dan WilkieStraits Resources has announced a plan to separate its gold and copper assets into two ASX-listed entities, while also downgrading its production forecasts.The company said its board of directors gave its nod to the plan today, following a strategic review of operations.The board sees the demerger as an effective way of unlocking value from Straits’ copper and gold producing assets.Shares in the newly created gold miner would be returned to secu-

IPOsNegative outlook for IPOs30-January-2013 by By Shanna CrispinThe upcoming State and Federal elections are adding to the low-est levels of IPO activity seen in years, according to business and financial advisors HLB Mann Judd.The firm today released its IPO Watch report for emerging compa-nies. It reveals a dismal 2012 in which market sentiment weighed negatively on the appetite for new listings and resulted in a 55 per cent drop in the number of suc-cessful IPOs.About 90 per cent of new listings were small cap companies with the majority based in Western Australia.HLB Mann Judd partner Norman Neill said the outlook for 2013 did not indicate a significant improve-ment as uncertainties in both North America and Europe, as well as commodity markets, would continue to weigh on the potential for new IPOs.“Both the state and federal elec-tions may also be weighing on people’s minds as well,” Mr Neill said.“But it may be that activity in-creases during the second half of this year when those things are resolved.”Mr Neill said the firm had noticed a significant downturn in the amount of business it was getting in for IPOs in Western Australia.“It’s probably the quietest it’s been for a long time; we were sitting here this time last year and we were relatively confident with what was in the pipeline, but we are not having those conversa-tions now.”Mr Neill said of most concern was the significant drop in the number of small caps reaching their initial subscription rate targets - only 57 per cent met their targets, down from 71 per cent in 2011 and 78 per cent in 2010.There are currently 11 listings planned Australia wide (down from 26 last year) and only three have indicated a listing date.

Capital RaisingsTanami to raise $65.3m for NT project04-February-2013 by Dan WilkieTanami Gold has announced a $65.3 million capital raising at a massive discount to its current share price, in order to repay its debts and complete a definitive feasibility study at its Central Tanami gold project in the North-ern Territory.The gold miner announced today it would seek to raise the funds through an entitlements issue for existing shareholders at 20 cents per share, which has been fully underwritten by lead manager Patersons Securities.The funds will be used to repay the company’s debts with AP Finance Limited, complete a de-finitive feasibility study for Central Tanami, and provide additional working capital.

Canyon to raise $2.2m for gold exploration01-February-2013 by Dan WilkieCanyon Resources has announced a $2.2 million capital raising to fund exploration programs at its Tao and PInarello gold projects in Burkina Faso.Canyon announced today it would raise $1.2 million through a placement priced at 13 cents, and up to $1 million through a share purchase plan for eligible share-holders, at the same price.Stockbroker Hartleys is acting as

CONCENTRATE: Western Areas managing director Dan Lougher says nickel concentrate from the miner’s renegotiated offtake deal with China’s Jinchuan Group will be shipped from Esperance.

rity holders under the demerger.“This decision is a significant step forward in our plan to unlock the potential value opportunity within both the gold and copper busi-nesses,” managing director Andre Labuschagne said.

Contracts and DealsFortescue and IOH terminate option04-February-2013 by AAPFortescue Metals Group has agreed to stop work on the de-velopment of Iron Ore Holding’s Iron Valley deposit in Western Australia.The company said both parties had agreed to the early termina-tion of Fortescue’s exclusive option on Iron Valley as previously agreed under the Memorandum of Understanding signed on February 10 last year.Iron Valley is contiguous to Fortes-cue’s Nyidinghu deposit and the iron ore resource at Nyidinghu extends into Iron Valley in the Pilbara.The option was due to expire on March 31.

Western Areas renews offtake deal with Jinchuan30-January-2013 by Dan WilkieWestern Areas has announced a renegotiated offtake deal with China’s Jinchuan Group, covering up to 26,000 tonnes of nickel concentrate over a two-year period.Managing director Daniel Lougher said the new deal comprised improved payability terms for Western Areas over the existing agreement.Western Areas has been selling nickel concentrate to Jinchuan since July 2010.Detailed terms of the new agree-ment remain confidential, while the concentrate will be shipped from the Port of Esperance.Mr Lougher said a tender process for the concentrate attracted a number of bids from global invest-ment and trading groups.

LG the next to stream Quickflix29-January-2013 by Dan WilkiePerth-based online streaming en-tertainment provider Quickflix has again broadened its reach, signing a deal with LG Electronics to pro-vide content through LG-branded televisions and Blu-ray players.The partnership covers both Australia and New Zealand, and will launch during the first quarter of this year.Quickflix streaming services are also available through Sony televi-sions, Blu-ray players and Playsta-tion 3 gaming consoles, as well as Samsung televisions and Blu-ray players.The company’s network of distribu-tion partners also includes Optus, ninemsn, Yahoo!7 and Hoyts.“We estimate the potential ad-dressable audience for Quickflix streaming to now be in the many millions,” Quickflix chief executive Stephen Langsford said.“We are delighted to be making Quickflix available to owners of LG televisions and Blu-ray players.”

Austco wins $1.8m Canada contract29-January-2013 by Dan WilkiePerth-based Austco Communica-tions has received a $US1.8 million purchase order from Canada’s Hon-eywell to provide nurse call systems for Ontario’s new Oakville Hospital.Austco, which is a subsidiary of ASX-listed Azure Healthcare, will supply and install its Tacera nurse call system under the contract,

20 | February 7, 2013 www.wabusinessnews.com.au WA Business News

FACT FILE

The Tacera system allows nurse call alerts to be displayed on pagers and mobile telephones, without the need for third-party infrastructure.Clinical alarm systems, such as pa-tient monitoring, ventilators and IV pumps can also be integrated into the Tacera system.The $2 billion Oakville hospital is expected to be completed by the summer of 2015.

Tassie cops sign up iiNet for NBN29-January-2013 by Dan WilkiePerth-based internet service provider iiNet has been appointed preferred national broadband network supplier by Tasmania’s Department of Police & Emergency Management.iiNet said the upgrade to NBN services would be rolled out over a three-year period.“The department’s decision to move to the NBN now makes it an early adopter of Australia’s newest transformational technologies,” iiNet chief business officer Greg Bader said.iiNet has been providing the department with network services since 2010.Commercial terms of the contract were not disclosed.

Finbar to manage South Perth apartments project29-January-2013 by Dan WilkieFinbar Group has announced it will manage the development of an $18.5 million luxury apartment build-ing on Mill Point Road in South Perth.The developer announced today that its project management sub-sidiary would manage the construc-tion and delivery of eight luxury apartments in an eight-storey building at 52 Mill Point Road.Finbar said it would not be required to contribute capital to participate in the development, and will earn a project management fee equivalent to half of the project’s overall profit.Managing director Darren Pateman said Finbar was delighted to return to familiar territory in South Perth with the company-first agreement.“The arrangement allows Finbar to leverage entirely off our intellectual property and provides a benefit similar to that of a project where we would normally be committing capital,” he said in a statement to the ASX.

TNG to discuss European backing for processing tech29-January-2013 by Dan WilkieTNG has begun discussions with a European engineering and metallurgical technology group

over the commercialisation of the Perth-based vanadium miner’s proprietary TIVAN hydrometallurgi-cal process.TNG said a non-binding memoran-dum of understanding, announced today, would cover the future involvement of the engineering group in the commercialisation of the TIVAN process, as well as the potential award of an engineering, procurement and construction deal for a TIVAN processing plant.TNG did not reveal the identity of the Europe-based group, but described it as a leading engineering and design company with revenue of between EUR3 billion and EUR4 billion.The TIVAN process comprises a combination of acid leaching, solvent extraction and chemical stripping to extract minerals from ore, replacing traditional energy-intensive roasting techniques.The process was developed in 2010 to extract commercial grades of vanadium, titanium and iron from TNG’s Mount Peake project in the Northern Territory.TNG completed a pilot plant test program last year as part of the Mount Peake pre-feasibility study.Further test work is scheduled to commence in June at the CSIRO in Perth.

From page 19

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! FOR THE RECORD | GROWING BUSINESS

Continued page 21

Rupen Kotecha

WITH better accounting systems and management information these days, it�’s easy to be bombarded with loads of numbers and data about your business, without really appreciating what are the most important numbers to keep track of to make sure your business is thriving, not just surviving financially. For business owners there are six key numbers that will enable you to keep a clear focus on what really matters. Understanding them is important and improving them will create success.Sales revenue Sales revenues are the lifeblood of any business. You should be comparing each month how you have done versus last year, your budget, any revised sales forecast and how this compares to your break-even point. If yours is a fast-moving business, the more regularly you report sales revenue the better. Weekly and daily reporting should be adopted where possible.Break-evenBreak-even is the level of sales you need to achieve so that you are not losing money. Running a business at a loss for a sustained period is just not tenable. Break-even is calculated when you split your cost structure into fixed and variable costs. Fixed costs typically include things such as cost of renting offices, factory or warehouse space, the cost of employing staff or anything that you can�’t vary in the short term. Variable costs vary with sales. Typical examples are distribution costs, costs of product sold, any labour costs related to production; in fact all costs that vary as sales go up or down.Getting your break-even point as low as possible will give your business more flexibility.Gross margin The gross margin measures sales less the variable costs of producing these sales. The absolute level of money is important to monitor, but the percentage gross margin is key. The higher you can get this the better, as it shows the profit benefit for each additional unit of sale made.For example, if you have a business that generates 40 per cent gross margin, for each additional $1,000 of sales, you should expect an additional $400 of profit to flow directly through to your profit line, as other fixed costs shouldn�’t vary very much in the short term. If the gross margin of your business is only 20 per cent, obviously you have got to sell twice as much to get the same profit effect.Fixed overhead levels Monitoring the fixed overhead level is important, as are the ways to always be looking at how you can reduce these levels without harming the ability of your business to serve customers.Net profitsAs most businesses need to make a profit to survive, comparisons to budget, forecast and history and inter-firm comparisons are important, as is comparing your profit to sales percentage and with the funds you have invested in the business. The higher your profit percentage, the higher return you are making. What you think this should be is vital when it comes to setting targets for your business. Rather than just taking your costs away from what you think sales will be to get a profit the business delivers, try turning this around. Based on appropriate research, decide what you think your profit percentage to sales and funds invested should be, and then consider what you need to do with either your variable cost or fixed overheads to deliver your target profit. You may be surprised to see what this simple change in thinking can deliver.Cash headroomThere are a number of differences between the profit your business is making and the cash it�’s generating, or not, as the case may be. Make sure you understand those differences and keep monitoring your cash position. Most businesses go bust simply because they run out of cash, particularly growing businesses. The absolute level of cash or overdraft you have is critical, but the �‘headroom�’ you have in your funding facilities is the key number to monitor. Headroom is the difference between your cash balances and the maximum borrowing limits you have set up.

Rupen Kotecha is regional director WA at The CFO Centre, which aims to help small and medium sized businesses find tangible value-add solutions to their financial issues.

Contact Rupen on: 1300 447 740 | rupen.kotecha@cfocentre.com.au | www.cfocentre.com.au

Six key numbers for businesses to watch

WA Business News www.wabusinessnews.com.au February 7, 2013 | 21

Jeffrey Gitomer

WHEN someone tells me to �‘have a nice day�’, I don�’t think they mean it. I think they�’re just saying it as a kind of mundane, almost impolite, form of politeness. Forced nicety. Said out of habit, not sincerity. To me, it�’s not just thoughtless, it�’s also meaningless; half the time people don�’t even look at you when they say it.They don�’t mean it as an insult. People say �‘have a nice day�’ because they don�’t know what else to say, or don�’t care what they say, or they are trained to say it.But think about it. Do they only mean that day? Do they want me to have a crappy tomorrow? Or maybe they will go so far as to say �‘have a good rest of the week�’. What does that mean, I�’m going to have a horrible weekend? Or month? Or year? Or life?If you are going to say something to me, or your customer, make it sincere, make it meaningful, and make it relevant. Otherwise, I mentally check you off �– the same way you check people off. And the question here is, are you being checked off?Consistency of message and expression is important �– but not robotic. Give people leeway to be human.Boring and insincere typically has a way of permeating everything else in a company: the color of your logo; the political correctness of your slide show; the stuffiness of your business card; or the boringness of your job title.Who cares? Only you! (Your marketing people, your ad agency etc). Anyone preparing �‘boring�’ marketing tools in this day and age should be forced to take that rubbish out on a sales call and see how customers perceive it or care 10 cents about it.The key word is sincerity.The secondary word is differentiation.Here are some golden opportunities to be creatively sincere.�• At the fast-food window.�• When customers walk in your store.�• When customers pay for something.�• When customers board the plane.�• When customers are about to order in a restaurant.�• When customers are sent an invoice.These are all opportunities to prove differentiation, be sincere, and even wow the customer. Marketing and HR people: Get off your corporate hobbyhorse and saddle up your creative brain. Employees: You�’re an individual, not some kind of automated answering device. Use your friendliness and creativity to craft a message that the customer perceives as real.Forced corporate politeness: I love it when service reps or managers say their canned piece (our policy, blah, blah), the customer is clearly right but the manager won�’t admit it because they are under corporate edict to be professional and polite (not friendly). Then they tersely ask, �‘Will there be anything else?�’ Makes me smile and feel sad all at once.Southwest Airlines is anything but politically correct. Its people are happy, its customers are happy, its message is clear, and it makes a lot of money. Jeez, I wonder if there�’s a correlation?What about you? How sincere are you?Here are four things you can do tomorrow without anyone�’s permission.�• Look me in the eye. Make sure there�’s a locked-in moment.�• Say something slightly different. �‘You�’re all set�’ instead of �‘Thanks for your business�’.�• Shake my hand like you mean it; firm, with eye contact.�• Smile. When you smile, it makes others smile.Idea: Make a goal to create 12 smiles a day through your words, actions or deeds. Creativity and sincerity will automatically materialise.Have a nice day.

Inject a little bit of sincerity into your day

SALES SESSIONS | FOR THE RECORD !

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FACT FILE

BriefsSoft market kills off Resource Equipment profit growth01-February-2013 by Dan WilkieResource Equipment shares have slipped on the ASX, after the com-pany announced that weak market conditions would result in the company experiencing zero profit growth in financial year 2013.REL said weak sales activity and cost and timing overruns on a pipe-line installation deal had negatively impacted its first half result.REL previously advised the market that its net profit to October 31, 2012 was around 30 per cent high-er than at the same time in 2011.The company said it now expected first half EBITDA to be around 15 per cent ahead of the same period in last year and net profit to remain steady around $6.5 million.“A number of shorter term, one off projects have recently come to an end or been cancelled and at the same time the company is incur-ring costs of previously announced long-term strategic initiatives, such as the establishment of an operation in Indonesia, which is yet to commence active trading,” REL said in a statement.

Skywest sheds 18 workers ahead of Virgin tie-up01-February-2013 by Rebecca LawsonThe Australian boss of Skywest has confirmed 18 redundancies have been made as part of meas-ures to make the regional airline more efficient and streamlined.Chief executive Jason Bitter told WA Business News the redundancies were across the board, and no more would take place, leaving some 800 staff working for the airline.He added it was a “coincidence” the redundancies occurred in the same week that Virgin Australia was given the all clear by the Aus-tralian Competition and Consumer Commission to acquire Skywest.The acquisition has been valued at $98 million, and still needs ap-proval from the Foreign Investment Review Board, Singapore’s High Court and Skywest shareholders. Virgin hopes the Skywest takeover will give it a slice of the lucrative fly-in, fly-out market.

Gryphon says Banfora gold mine to cost $US208m31-January-2013 by Dan WilkieGryphon Minerals says its Banfora gold project in Burkina Faso will cost $US208 million to develop, with first production from the mine to occur in the fourth quarter of 2014.Perth-based Gryphon released a bankable feasibility study for the Banfora project today, which flagged annual production of 151,000 ounces of gold for the

first 5 years, with average cash costs of $US734 per ounce.The mine will have a construction period of 15 months, Gryphon said.“The completion of this BFS is a significant step towards the Ban-fora gold project becoming a major mining operation and towards Gryphon’s transformation into a gold producer,” managing director Steve Parsons said.

Buswell gives go-ahead for Esperance port upgrade 31-January-2013 by Dan WilkieThe state government is formally seeking partners to design, finance and construct a multi-user iron ore facility at the Port of Esperance. Transport Minister Troy Buswell announced today that potential developers could apply for pre-qualification to participate in a request for proposal process.Mr Buswell said proponents would be shortlisted and the successful applicant would be revealed later this year.“All project funding and associated costs will be the responsibility of the private sector proponent ulti-mately selected through the RFP process,” he said in a statement.The size of the expansion is yet to be determined, but a study released by the Yilgarn Iron Produc-ers Association flagged a 10 mil-lion tonne per year upgrade would cost less than $200 million.The port has a current capacity of 11.5 million tonnes per year.Mr Buswell said today’s move would facilitate the growth of the Yilgarn iron ore sector.The YIPA released a report earlier this month flagging an initial $550 million economic benefit from an expanded port at Esperance, as well as an expected $641 million flow-on effect to industry.An additional 10 million tonnes per year mined from the Yilgarn region would contribute up to $95 million per year to state coffers, assuming the iron ore price remains around $120 per tonne, YIPA said.Developers have until March 1 to register interest.

BOC to upgrade Kwinana facility30-January-2013 by Dan WilkieGases and engineering group BOC has announced two new upgrades at its Kwinana gas plant, as part of a $100 million-plus capital works program it is rolling out across Western Australia.BOC said it would construct a new air separation unit as well as a nitrogen liquefaction unit at the Kwinana plant, with works expect-ed to be complete by 2014.BOC South Pacific managing direc-tor Colin Isaac said the new facili-ties would increase production at the site, doubling the current liquid oxygen capacity and a 50 per cent increase in capacity for nitrogen liquefaction.

“This increased output capabil-ity will make us self-sufficient in WA, eliminating the need to import product into Perth from our network of plants in the eastern states,” Mr Isaac said.Mr Isaac said the project was a key milestone in BOC’s rollout of more than $100 million in capital expenditure in Western Australia.

Pilbara workers win back pay after Fair Work investigation29-January-2013 by Dan WilkieSix Pilbara workers have been awarded a total of $18,964 in unpaid redundancy entitlements at Fortescue Metals Group’s Solomon iron ore project in the Pilbara.Fair Work Building and Construction chief executive Leigh Johns said an investigation by building industry inspectors found the workers were not paid the required amount of redundancy entitlements.The workers, who were employed by a subcontractor at the mine, were made redundant towards the end of last year.“The mistake occurred because the employer did not fully under-stand its obligations and uninten-tionally miscalculated the amounts it owed to the six workers,” Mr Johns said.“The employer was cooperative with FWBC and reimbursed the six workers the required amount.”Mr Johns said the FWBC had recovered $726,293 for 510 con-struction workers since beginning operations in June last year.

Mining boom to peak in late 2013: Deloitte29-January-2013 by AAPAustralia’s mining construction boom is expected to peak in late 2013 and government spending cuts are making it harder to find a new driver of economic growth, economics advisory group Deloitte Access Economics says.Deloitte says in its December 2012 quarter Business Outlook the mega-mining construction projects which accounted for much of Australia’s production growth in recent years will likely peak in late 2013.“The strongest contributor to Australian growth will peak, so the rest of the economy needs to fill a potential pothole,” Deloitte said.“But federal and state government cuts have deepened that pothole.“And although interest rate cuts will help retail spending and hous-ing construction more than is yet realised, that won’t be enough of itself.”Deloitte said a lower Australian dol-lar was needed to ease pressure on the manufacturing, tourism and international education sectors, but so far that had not happened.Consequently, growth was likely to continue to labour in the short term amid damage from the dollar.

From page 20

Jeffrey Gitomer is the author of The Sales Bible, Customer Satisfaction is Worthless Customer Loyalty is Priceless, The Little Red Book of Selling, The Little Red Book of Sales Answers, The Little Black Book of Connections, The Little Gold Book of YES! Attitude, 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, seminars, and webinars – or email him personally at salesman@gitomer.com © 2013 All Rights Reserved. Don't reproduce this document without written permission from Jeffrey H. Gitomer and Buy Gitomer. 704/333-1112 www.gitomer.com.

22 | February 7, 2013 www.wabusinessnews.com.au WA Business News

‘‘It was always a wish for me to discover the country [Australia] and to be an artistic director.’’ - Aurelien Scannella

Ballet chief admires Perth’s cultural capitalWEST Australian Ballet�’s new artistic director, Aurelien Scannella, says his first Australia Day celebra-tion in Perth was an eye opener, not just for the fireworks or flag-wav-ing, but also because of the sheer number of cultural events taking place across the city.

The events, which are part of the Fringe World Festival, confirmed to Mr Scannella, a Belgian ballet master, that Perth is a hotbed of cultural activity.

! Cherie Wheeler

REPUTATION: Aurelien Scannella says Perth is well-known in Europe, particularly France, for its support of the arts. Photo: Annaliese Frank

Mr Scannella said the city was well-known throughout Europe, particularly in France, where it was often termed the �‘�‘Saint-Tropez of Australia�’�’.

�“Perth is known as a varied city and an artistic capital,�” Mr Scannella told WA Business News.

�“For us Australia is seen as a young country with a lot of energy�”.

Arts funding and activity has fallen off dramatically in Europe because of the financial malaise afflicting the continent.

By contrast, the Western Australian economy is in good shape and the arts sector is a major benefi-ciary of this.

Mr Scannella said while Australians had a tendency to look to Europe when it came to art, we should look in our own backyard instead.

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He has spent the past 20 years travelling the globe, performing and teaching in ballet companies in France, Hong Kong, Belgium and Sweden. For the past five years he has been freelancing, travelling with-out his wife and dance partner, Sandy Delaselle, and young son, Matteo.

Now he has decided to settle down with his family in Perth, tak-ing on an artistic director�’s role for the first time.

�“Australia is the only part of the world where I have never

performed or visited,�” said Mr Scannella, who was appointed in August last year but only took up his new role last month.

�“It was always a wish for me to discover the country and to be an artistic director.�”

His predecessor at West Australian Ballet, Ivan Cavallari, resigned mid last year as the company celebrated its 60th anniversary. Mr Cavallari will lead the Ballet du Rhin in Alsace, France, in order to be closer to his family.

Under his direction, the company underwent significant change, not only in terms of the size of the com-pany but also in its reputation.

The West Australian Ballet now boasts 36 performers, almost double the original number, and has gained international recognition.

Mr Cavallari sealed his six-year legacy with the move to refurbished premises in Maylands in April 2012. The heritage-listed site was formerly occupied by the WA Royal Institute and Industrial School for the Blind

but now fulfils the company�’s long-overdue need for a professional facility and proper home.

�“I just know one company in Europe which has something like this �– the ballet in Monte Carlo,�” Mr Scannella said.

�“Otherwise, no-one has such a facility.�”

Mr Scannella said European bal-let companies often shared facili-ties with opera companies and were allocated small studios within old, dilapidated opera houses.

The dancers were expected to par-ticipate in the background of opera productions, whereas Australia�’s com-parative lack of an opera scene offered greater opportunities for dancers to perform as independent acts.

After only four weeks in the role, Mr Scannella is already planning ahead for the next few years.

Despite Perth�’s healthier eco-nomic climate, the West Australian Ballet is still facing monetary issues, which Mr Scannella hopes to overcome by collaborating with international companies to share the financial burden.

Mr Scannella is not the only European to make the move to Perth for an artistic career over the past few years.

Italian-born Stefano Carboni was appointed as director of the West Australian Art Gallery, and Scotsman Alec Coles became the West Australian Museum director in 2009.

Australian Business Arts Foundation director for WA , Henry Boston, believes the European influx is motivated by Perth�’s climate and strong economy.

Mr Boston argues that perhaps technology advancements and the development of Australia�’s creative profile are also responsible.

This has encouraged international artists to not think of Australia as �“out of the loop�”.