Mining mogul unhappy with Monarch GoldWell known Perth-based...

Mining mogul unhappy with Monarch Gold

Well known Perth-based mining executive Michael Kiernan is not happy with the recent performance of his two key companies, Monarch Gold Mining Company Ltd and Territory Resources Ltd.

Mr Kiernan told shareholders at Territory's general meeting in Perth on Friday that iron ore production from its Frances Creek mine in the Northern Territory during the March quarter was "disappointing due to an out-of-balance mine plan".

"This issue is currently being addressed and will be rectified during the current quarter to ensure production is back on track," he said.

"During the current quarter, a third mining fleet will be engaged to increase production.

"Production is incrementally being increased, with a target by December 2008 of an annualised rate of 2.4 million tonnes and by June 2009 of three million tonnes."

He said $8 million would be spent over the next six months increasing Territory's stockpile area at Darwin port to 450,000 tonnes.

A wet-processing plant at the port will be installed during the next three to four months to eliminate wet ore difficulties and enable a cleaner, higher-grade ore to be produced.

Shares in Territory finished 6.5 cents, or 7.69 per cent, higher at 91 cents.

Mr Kiernan was philosophical this week when Territory's on-market $15.53 million takeover bid for mineral sands miner Olympia Resources Ltd expired, falling well short of the 90 per cent benchmark set for the bid.

He said Territory amassed a 64.76 per cent stake in its target, despite Olympia's board rejecting the offer.

Mr Kiernan said he was considering turning his attention to acquiring another mineral sands miner, Matilda Minerals Ltd, in which Territory has a 34.58 per cent stake.

Mr Kiernan told shareholders at Monarch's general meeting in Perth on Thursday that gold production for the March quarter was disappointing and less than forecast.

"The production target for May 2008 is 7,200 ounces, which is marginally above break-even point and therefore the company should become cash neutral during the month," he said.

"Development has been three to four months behind schedule.

"The board's prime focus is to ensure production initially reaches a break-even level and then ultimately reaches production targets to ensure a reasonable margin and return."

He said the target for the company's Davyhurst and Mt Magnet gold projects in Western Australia, at full production, was 250,000 ounces a year.

Shares in Monarch, which is 20 per cent held by Territory, closed steady at 29 cents.

"The board is most disappointed that the current share price has fallen significantly and is obviously a reflection of the lack of confidence in the company, going forward," Mr Kiernan said.

Disappointment is a rare feeling for Mr Kiernan