RAGUSA MINERALS LTD — AGM Information 2012

Nov 14, 2012

ABN 39 143 194 165

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15 NOVEMBER 2012

Level 2, 350 George Street SYDNEY NSW 2000 PO Box R1695, Royal Exchange NSW 1225 Telephone: (612) 9080 2377 Facsimile: (612) 9080 2378

ANNUAL GENERAL MEETING

CHAIRMAN AND MANAGING DIRECTOR’S ADDRESS

Welcome ladies and gentlemen, I would like to start by thanking you for your continued investment in, and support of our company. My name is Steuart Roe and I am the Chairman and Managing Director of Aurora. Following my address, I will invite questions from the floor before requesting votes on the matters outlined in the Notice of Meeting.

Please let me introduce you to my fellow directors. They are, Mr John Corr, who is also our Chief Investment Officer, Mr Richard Matthews who is also our Chief Operating Officer, Mr Alastair Davidson who is also the head of development for our institutional business and Mr Simon Lindsay who is also head of development for our retail business. We also have here today our Chief Financial Officer, Mr Chrys Wickremeratne, and representatives from our auditor PwC.

For the financial year ending 30 June 2012, Aurora recorded a loss before tax of $1,011,364 (2011: ($4,659,717)). This included non-cash items of a write down of goodwill of $143,785 to reflect the market’s change in value of asset management businesses, a share based payment of $500,000 as explained in our 2010 prospectus, and $23,607 in depreciation. Net, our loss for the year was $343,972 (2011: (888,950)).

The turnaround in performance over the 2[nd] half of the year was particularly pleasing. The Company recorded a small profit for the 6-months of $6,005 after adding back non-cash items. This 2[nd] half turnaround reflects:

• an increase in funds under management and modest performance fee income; an

• internal restructure and reduction in staff costs; and

• reduced fund administration costs and improved operational efficiencies.

As at 30 June 2012 our net cash reserve was approximately $1,585,969 million. Accordingly, the directors will continue to work hard to minimise expenses whilst seeking opportunities to increase FUM, and Fund performance.

Our funds under management over the financial year was relatively volatile fluctuating between a high of $537 million in October 2011 and a low of $421 million in November 2011. The 2[nd] half provided indications of some stabilisation of fund flows with FUM finishing the financial year at $480 million. We have been further encouraged by the growth in FUM in the 2013 financial year to date.

Our Institutional business has provided most inflow, with the Wholesale/Retail business showing some early signs of growth. The overall composition of the Company’s funds amongst our retail, institutional and responsible entity businesses is depicted in Chart 1.

Chart 1. Funds under management and administration.

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Please be aware that for a company of our size, the appointment or loss of a single institutional mandate can make a material impact on our on our funds under management and our revenue.

The performance of our other internally managed funds, generally continue to perform well relative to their respective benchmarks. The details of their performance are contained in Table 1. This good performance provides some optimism towards the Company being in the position to continue to generate performance fee income over the next 12 months.

Table 1. Historic fund performance to 31 August 2012

		1 Year		3 Year	Since Inception (p.a)	Since Inception (p.a)
	Fund	Benchmark	Fund	Benchmark	Fund	Benchmark
Dividend Income Trust	9.3%	5.4%	3.3%	4.2%	6.7%	4.5%
Absolute Return Fund	5.18%	4.20%	5.88%	4.33%	3.36%	5.15%
Fortitude Absolute Return Trust	5.16%	4.20%	4.26%	4.33%	8.51%	5.23%
Global Income Trust	1.6%	4.4%	2.3%	4.5%	4.5%	4.7%
Property Buy-Write Trust	10.3%	21.7%	8.6%	7.9%	-1.8%	-10.8%

Note: past performance is not indicative of future performance

The last 12 months (our second as an ASX listed entity) have been one of hard work and consolidation. Global financial market conditions have continued to be very challenging for asset management businesses, both big and small. Accordingly, we have been pleased with the progress that has been made towards reducing our cash burn, whilst increasing marketing to institutional and wholesale/retail counterparties.

Shareholders can be assured of our continued efforts over 2013.

I would also like to take this opportunity to again thank my fellow directors and staff for their efforts during the last 12 months.

I now open the meeting to questions from the floor.

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