Archer Exploration Limited (asx:axe) Md Gerard Anderson Updates on the Strategy and Outlook for Graphite and Other Projects.

Archer Exploration Limited (ASX:AXE) MD Gerard Anderson updates on the strategy and outlook for graphite and other projects.

Interview with Gerard Anderson (Managing Director)

In this Market Briefing interview, Gerard Anderson, Archer Exploration's Managing Director, discusses the company's strategic direction and current trading conditions, including:

- The strategic approach and how the current portfolio fits

- Current status of the Eyre Peninsula Graphite Project

- How Archer's graphite will be positioned in the global context

- Potential funding and development options for the Eyre Peninsula Graphite Project

- Current status of the Leigh Creek Magnesite Project

- Update on the pipeline of other potential projects

- Outlook and expected news flow

Market Briefing..

Gerard, Can you outline the Archer Exploration strategic approach?

Gerard Anderson

Our approach is to acquire prospective or unrecognised projects, which we then add value to through firming up resources and putting together project plans. Once we have completed this work we seek to monetise those assets either through divestments, joint ventures, or bringing the projects to production.

To illustrate this process we raised $7 million when we first floated in 2007 and only have 84 million shares on issue. Our balance sheet showed in excess of $5 million in cash at 30 June. This cash balance was largely due to the sale of our Roxby tenements to BHP for $8 million in 2012. This asset sat far better with BHP than with Archer Exploration in terms of its prospective development.

Our approach is where we see a more natural owner for our assets we look to divest them, where we believe we can be involved in bringing a project to production will seek to retain some exposure to that project, either retaining 100%, or possibly a lower exposure with an appropriate joint-venture partner contributing to the project.

Market Briefing..

What is your current portfolio of assets and how are these situated within your strategic approach?

Gerard Anderson

Whilst we have a number of highly prospective tenements across a wide range of commodities, we recognise that we are a small team and need to maintain a tight focus on the portfolio. We direct our attention to the projects that we feel we can develop and monetise most readily, with the least capital commitment and the most tangible potential investment upside.

With this in mind we can consider our portfolio in three main segments. Firstly the Eyre Peninsula Graphite Project, secondly our Leigh Creek cryptocrystalline magnesite project, and thirdly the rest of our tenements which provide a longer-term pipeline of opportunities across precious metals, copper and manganese. All our project tenements are currently within South Australia and each at varying...