INTERVIEW WITH TRENT BAGNALL, MANAGING DIRECTOR, QMASTOR LIMITED (QML)

“QML -- 2008 Full Year Results”

http://www.brr.com.au/event/50304

THURSDAY, AUGUST 28, 2008, 9:00 AM.

            BRR    Good afternoon and welcome to Boardroom Radio. Joining us today is Trent Bagnall, Managing Director at QMASTOR Limited. Good afternoon, Trent.

10                    Thanks for taking the time to speak with me today.

            QML    Good afternoon.

            BRR    Trent, QMASTOR have recently released some record results to the market and it’s been on the back of some high demand in the resources industry.

15                    Can you give us a little bit more detail on what was driving these results?

            QML    We’ve gained strong demand from the coal and iron ore industries particularly with some significant corporate installations particularly in iron ore but also in coal, and we’ve expanded further into some of our, (as present), on non-core mining industries like nickel and copper/gold. We’ve also received quite a few

20                    international contracts during the year with a large South African iron ore installation and a New Zealand coal contract with (Solid Energy). So coming from a diverse range of sources, but on the back of strong resources we’ve actually seen over the last few years.

25        BRR    And, Trent, you mentioned in the press release that you’ll be investing in product and market development. Can you explain this a little bit further for us?

            QML    Sure. In terms of product development, I suppose, QMASTOR have a strong history of innovation and we see that as a key differentiator in the

30                    marketplace. So QMASTOR is currently working on a number of new products that our key customers are interested in us developing further, so we’ve got a strong market. Already there was some strong key one customers, so there are a number synergistic products that we’re developing that we can push down that same distribution channel. In terms of market

35                    development, we’re working hard this year on international expansion. Our products have already handled diverse range of commodities, but in terms of carrying overseas, installations that are all currently done out of Australia, so we’ll be announcing in the new term a new international office and that’s our big push for this current financial year has been -- to the international offices

40                    and further expansion.

            BRR    You mentioned a strong balance sheet in your announcement. How is your cash flow?

            QML    Yeah, the balance sheet has greatly improved. During the past year we’ve

45                    had an opportunity based on the strength of our results and our realized valuation of our intellectual property. So that’s greatly improved the net assets from the balance sheet. That’s why it’s pretty good. It’s been relatively consistent during the previous year, and it’s continued to be improved in this current financial year. So we’re quite happy with our cash flows at the moment.

            BRR    Trent, what are the key challenges in your sector at the moment and how are

5                      you planning to overcome them?

            QML    Key challenges for us at the moment, just meeting customer demand. So, we’ve opened a number of offices recently in Australia to help us cope with that demand. One we recently announced in (Mackay) and the other in Perth, so we’re putting resources into that to help meet that challenge. And our new

10                    challenge, I suppose, is meeting the international demand and as I said previously, that’s what we’re working on at the moment.

            BRR    Finally, what’s the broader outlook for 2009 and beyond?

            QML    We’ve reported to the market that we’re expecting a target revenue of $9

15                    million this current financial year, so about an 80% increase, again, on last year. Hopefully, a strong EPS target of 3.25 cents to 4 cents, so continuing on that growth path. And we see, certainly, for 2010 a similar sort of expansion. So we’re very excited with the current growth pattern of the company and we don’t, at this point, see any reasons for it slowing.

20

            BRR    Trent, thanks for taking the time to speak with me today. Listeners, that was Trent Bagnall, Managing Director at QMASTOR Limited. If you have any questions for Trent or you’d like some more information about this broadcast, please email brr@brr.com.au. I’m Tom McKay. Thanks for listening to

25                    Boardroom Radio.

INTERVIEW CONCLUDED

Contact brr@brr.com.au for more information

DISCLAIMER: Transcripts made available by Boardroomradio.com is a free service whereby the transcripts are created by one or more third party contractors without any involvement or oversight by Boardroomradio.com or the respective company, firm, partnership or individual that is being transcribed.  Boardroomradio.com and its contractors, client companies, firms, partnerships and guest speakers (paid or otherwise) do not invite reliance upon, nor accept responsibility for, the information they provide. Boardroomradio.com makes every effort to provide a high quality service. However, neither Boardroomradio.com, its transcript providers, nor the providers of any other written or oral data made available on the Boardoomradio.com site (and its partner sites) give any guarantees, undertakings or warranties concerning the accuracy, completeness or up-to-date nature of the information provided. Users should confirm information from another source if it is of sufficient importance for them to do so. Boardroomradio.com, its directors and employees do not accept any liability for the results of any actions taken or not taken on the basis of information in this site, or for any negligent misstatements, errors or omissions.