RNS Number:4114U
Portman Ld
20 January 2004







PORTMAN LIMITED

A.B.N. 22 007 871 892





20 January 2004





QUARTERLY REPORT FOR THE PERIOD ENDED

31 December 2003



HIGHLIGHTS



Corporate





*            Two new non-executive directors appointed to the Board on 18
             December 2003.



Marketing



*            Subsequent to the end of the December quarter, 2004 benchmark
             prices settled at an 18.6% increase.



Koolyanobbing Project



*            Annual shipments totalled 4,715,002 tonnes, a new record.



*            Rail services continued to improve with a new quarterly record of
             1,290,059 tonnes railed.



*            Negotiations commenced on long term sales contracts following
             commencement of development activities at Mt Jackson and 
             Windarling.



*            State and Commonwealth Ministerial conditions set during the
             environmental approval process have been satisfied and development 
             of the Mt Jackson and Windarling mining areas commenced.



*            All major construction contracts awarded.



*            Significant progress on haul road and accommodation camp. Both
             contracts are on schedule and within budget.



*            Orebody scheduling in final phase leading to the release of a
             Reserve statement in February 2004.



Cockatoo Island



*            Feasibility study completed with recommendations accepted to
             complete second stage sea wall.


*            Current reserve position of 3.5 million tonnes will support product
             and shipments over the next 40 months.



*            Geotechnical studies have confirmed stability of the sea wall and
             the ability to successfully extract 100% of reserves.



*            Dewatering using sumps and pumps confirmed as fully adequate for
             the task.




PORTMAN LIMITED

A.B.N. 22 007 871 892





20 January 2004







QUARTERLY REPORT FOR THE PERIOD ENDED

31 December 2003





1.0              CORPORATE



Appointment of New Non-Executive Directors



On 18 December 2003 the Company announced the appointment of Ms Fiona Harris and
Mr Malcolm Macpherson to the Company's Board of Directors.



Fiona Harris is a professional non-executive director. Previously she spent 14
years with the international chartered accounting firm, KPMG in Perth, San
Francisco and Sydney. She is a director of Alinta Limited, Burswood Limited and
former Chairman of the Government Employees Superannuation Board. She is also a
State Councillor of the Australian Institute of Company Directors.



Malcolm Macpherson has extensive experience in the resources industry in Western
Australia and was previously Managing Director and Chief Executive of Iluka
Resources Limited. He was President of the Chamber of Minerals and Energy from
1990-1994 and is currently Chairman of Western Power Corporation, a director of
Minara Resources Limited and a State Councillor of the Australian Institute of
Company Directors.



These two appointments will considerably broaden the depth of expertise and
industry knowledge already present at board level in Portman. The Board now
consists of six directors - Mr George Jones - Non-Executive Chairman, Mr Barry
Eldridge - Managing Director and non executive directors Mr Richard Knight, Mr
Michael Perrott, Mr Malcolm Macpherson and Ms Fiona Harris.


2.0       PORTMAN IRON ORE



            2.1       Koolyanobbing Project



2.1.1        Production



Production and shipments for the quarter and the year were as follows:


                                                   Actual              Actual             Actual
                                                Dec Qtr 2003             2003           Dec Qtr 2002
Koolyanobbing Iron Ore Project
Tonnes
Ore Mined                                          1,606,670          6,605,437          1,038,934
Ore Processed - Lump                                 553,171          2,235,861            375,755
Ore Processed - Fines                                675,306          2,678,509            432,302
Ore Processed - Total                              1,228,477          4,914,370            808,057
Ore Railed - Lump                                    521,155          2,066,306            459,861
Ore Railed - Fines                                   768,904          2,680,858            405,012
Ore Railed - Total                                 1,290,059          4,747,164            864,873
Ore Shipped - Lump                                   415,297          1,944,312            456,945
Ore Shipped - Fines                                  672,627          2,770,690            411,822
Ore Shipped - Total                                1,087,924          4,715,002            868,767



The world wide demand for bulk cargo shipping resulted in fewer ships than
expected being available in the 4th quarter. This is turn resulted in a lower
tonnage than forecast being shipped in the quarter.



2.1.2    Project Development





During the December quarter significant effort was directed to satisfy
Ministerial conditions imposed following the State and Commonwealth
environmental approval.



Construction of the Windarling to Koolyanobbing haul road commenced in November
and pre-stripping and clearing at Mt Jackson and Windarling commenced in late
December.



The Windarling accommodation camp became operational in mid December.



The project development works are on schedule for initial haulage of ore to
Koolyanobbing in late March 2004.



Detailed orebody scheduling has been undertaken in the past three months. This
work encompasses all deposits at Koolyanobbing, Windarling and Mount Jackson.
The culmination of this work will result in a Reserve statement being released
in February 2004.




2.2       Cockatoo Island Joint Venture (50% Portman 50% Henry Walker Eltin)



                        2.2.1    Production (100% Figures)



Production and shipments for the quarter and the year were as follows:


                                                Dec Qtr 2003                2003                2002
Cockatoo Island Iron Ore Project
Tonnes
Ore Produced                                         163,423             591,185             287,015
Ore Shipped                                          146,180             560,826             227,760



            2.2.2    Project Development



Following finalisation of a life of mine plan, dewatering and geotechnical
evaluations, an ongoing project feasibility plan was prepared.



On the basis of the feasibility recommendations, completion of the second stage
of the seawall will commence early in 2004.



During construction in the first half of 2004, production will be restricted to
between 50,000 and 75,000 tonnes per month increasing to between 100,000 and
125,000 t.p.m after completion of the sea wall.



            2.3       Marketing



Since receiving approvals and commencing new mine development there has been
strong customer interest in both Japan and China for three to five year
contracts. A number are currently under negotiation.



Repeat orders have been received from customers using high phosphorous ore and
overall demand continues to be extremely high.



International ore prices have been settled since the end of the quarter. Sellers
will receive 18.6% more for fine and lump ore in 2004. This represents one of
the largest increases for traded iron ore ever achieved.



During the first quarter of 2004 detailed mine planning and scheduling, review
of product specifications and physical test work will be used to prepare a long
term project plan for discussion with customers during the second quarter.



2.4               Exploration



During the quarter reverse circulation and diamond drilling programmes were
completed at the Windarling (W2, W3 and W5) and Mt Jackson (J2) deposits. Golder
Associates have completed revised in-situ resource estimates for these deposits
in addition to B Deposit at Koolyanobbing and for the recently identified
deposits at the B, E and F.



The Cockatoo Island in-situ resource estimate was finalised by SRK Consulting
during the quarter.







            2.4.1    Koolyanobbing



B Deposit



During the quarter the in-situ resource model for B Deposit was completed by
Golder Associates. RC drilling completed during the 2nd quarter 2003 identified
a new mineralised zone on the northeastern or hangingwall side of the
Koolyanobbing Range. The in-situ resource totals 4.06 million tonnes at 61.27%
iron, 0.023% phosphorous, 0.074% sulphur, 3.93% silica and 0.54% alumina;
representing an increase of 3.86 million tonnes from the previously defined
resource.


Deposit         Classification   Tonnes        Fe%       Phos %     SiO2%     Al2O3%     S%        LOI%
                (JORC)
Koolyanobbing
B               Measured
                Indicated        3,039,000     61.35     0.023      3.76      0.54       0.073     6.56
                Inferred         1,024,000     61.01     0.022      4.44      0.53       0.080     5.65
                Total            4,063,000     61.27     0.023      3.93      0.54       0.074     6.33



Notes:

1.               Tonnage and grade rounded as appropriate.

2.               Cut-off grade 58% iron. No upper limit cut-off grades have been
                 applied to phosphorous, silica, alumina and sulphur.



E Deposit



During the quarter the in-situ resource model for E Deposit was completed by
Golder Associates. The in-situ resource totals 0.57 million tonnes at 60.54%
iron, 0.035% phosphorous, 0.050% sulphur, 4.90% silica and 0.39% alumina.


Deposit         Classification   Tonnes        Fe%       Phos %     SiO2%     Al2O3%     S%        LOI%
                (JORC)
Koolyanobbing
E               Measured
                Indicated        567,000       60.54     0.035      4.90      0.39       0.050     7.37
                Inferred         0             0.00      0.000      0.00      0.00       0.000     0.00
                Total            567,000       60.54     0.035      4.90      0.39       0.050     7.37

Notes:

1.      Tonnage and grade rounded as appropriate.

2.      Cut-off grade 58% iron. No upper limit cut-off grades have been applied
        to phosphorous, silica, alumina and sulphur.



F Prospect

An in-situ resource estimate has been completed on the recently discovered
southern mineralised zone at F  South Prospect located approximately 12
kilometres south of Koolyanobbing. Reverse circulation drilling has defined a
number of sub-parallel mineralised zones with a strike length of approximately
500 metres.

Best intercepts include;

*         32m at 63.94% Fe from 16m KFRC056;

*         52m at 63.09 % Fe from 14m KFRC089 and

*         38m at 63.57% Fe from 46m in KFRC117.

Table 1 summarises significant results returned during the quarter.


Table 1. Significant drill intercepts from F South prospect.
Hole_ID              East      North      From   Intercept           P        S        Al2O3    SiO2   LOI
Koolyanobbing                              (m)
Project
KFRC115              749942    6581046    46     14.0 m @ 64.76 % Fe 0.005    0.055    0.09     3.04   4.04
KFRC117              749691    6581209    46     38.0 m @ 63.57 % Fe 0.010    0.076    0.19     1.54   7.15
                                          94     10.0 m @ 59.56 % Fe 0.007    0.038    0.08     7.19   7.32
KFRC121              749940    6581207    18     22.0 m @ 58.76 % Fe 0.073    0.155    1.11     2.74   11.32
KFRC124              749895    6581146    60     14.0 m @ 63.11 % Fe 0.005    0.075    0.38     1.05   7.80
                                          98     10.0 m @ 59.22 % Fe 0.006    0.986    0.06     3.35   10.65
KFRC125              749850    6581177    66     18.0 m @ 62.68 % Fe 0.005    0.175    0.29     0.80   8.31
KFRC126              749791    6581176    4      10.0 m @ 60.13 % Fe 0.014    0.032    1.26     4.67   7.08
                                          16     44.0 m @ 62.17 % Fe 0.014    0.049    0.62     2.77   7.38
KFRC127              749802    6581205    70     12.0 m @ 63.26 % Fe 0.008    0.071    0.43     5.45   3.01
KFRC135              749751    6581280    20     20.0 m @ 58.16 % Fe 0.075    0.113    1.10     3.94   10.85



The in-situ resource, completed by Golder Associates for the F South Deposit
totals 3.85 million tonnes at 61.55% iron, 0.029% phosphorous, 0.083% sulphur,
3.21% silica and 0.54% alumina.


Deposit         Classification   Tonnes       Fe%       Phos %     SiO2%     Al2O3%     S%       LOI%
                (JORC)
Koolyanobbing
F South         Measured
                Indicated        3,846,000    61.55     0.029      3.21      0.54       0.083    7.75
                Inferred         0            0.00      0.000      0.00      0.00       0.000    0.00
                Total            3,846,000    61.55     0.029      3.21      0.54       0.083    7.75

Notes:

1.      Tonnage and grade rounded as appropriate.

2.      Cut-off grade 58% iron. No upper limit cut-off grades have been applied
to phosphorous, silica, alumina and sulphur.

Exploration continued at F North, located approximately 1 kilometre along the
Koolyanobbing Range northwest of F South. Reverse circulation drilling has
targeted high-grade iron mineralisation along the BIF hangingwall contact.
Significant results returned include;



*         10m at 63.58% Fe, 0.076% P, 0.073% S and 0.63% Al2O3 from 14m in
KFRC140

*         30m at 61.20% Fe, 0.025% P, 0.028% S and 1.87% Al2O3 from 16m in
KFRC145, and

*         14m at 62.00% Fe, 0.052% P, 0.088% S and 1.12% Al2O3 from 40m in
KFRC147



The most encouraging results returned from 'F' North are centred on two major
N-S trending faults which transect the range, smaller scale strike slip faulting
is evident between the major faults resulting in block rotation of the BIF and a
re-orientation of strike to north-south.

Evaluation of the F North mineralised zones will recommence in early 2004.



Table 2. Significant drill intercepts returned from the F North mineralised
during the quarter.


Hole_ID              East      North      From   Intercept           P        S        Al2O3    SiO2   LOI
Koolyanobbing                              (m)
Project
KFRC120              749035    6581907    2      12.0 m @ 61.70 % Fe 0.083    0.046    1.08     3.11   7.13
KFRC138              748990    6581766    8      16.0 m @ 62.88 % Fe 0.066    0.065    0.91     3.29   5.00
KFRC140              748963    6581837    14     10.0 m @ 63.58 % Fe 0.076    0.073    0.63     2.67   5.15
KFRC142              749002    6581878    2      16.0 m @ 59.44 % Fe 0.045    0.186    1.69     2.48   9.85
KFRC144              749097    6581848    10     20.0 m @ 61.69 % Fe 0.057    0.038    1.43     1.67   8.38
KFRC145              749371    6581583    16     30.0 m @ 61.20 % Fe 0.025    0.028    1.87     2.84   7.41
KFRC146              749335    6581612    10     36.0 m @ 58.76 % Fe 0.052    0.042    1.79     5.14   8.53
KFRC147              749314    6581624    10     10.0 m @ 58.66 % Fe 0.024    0.043    2.15     4.60   8.83
                                          40     14.0 m @ 62.00 % Fe 0.052    0.088    1.12     3.33   6.14





2.4.2    Windarling and Mt Jackson Deposits



During the quarter reverse circulation and diamond drilling programmes were
completed at Windarling and Mt Jackson. A total of 7,400 metres of reverse
circulation and 966.3 metres of PQ diamond drilling has been completed at the Mt
Jackson (J2) and Windarling (W2, W3 and W5) deposits.



In-situ resource estimates for the Windarling W2, W3 and W5 and Mt Jackson J2
deposits were completed by Golder Associates during the quarter.





Mount Jackson



The Mount Jackson deposits (J1 to J4), located approximately 70 kilometres north
northwest of Koolyanobbing occur in the Mt. Jackson Range which is comprised of
Archean iron formation, mafic volcanics and metasediments. In-fill reverse
circulation and diamond drill programmes were completed at the larger high-grade
J2 Deposit during the quarter. Table 3 summarises significant results returned
during the quarter.






Table 3. Significant results returned from reverse circulation drilling on the
Mt Jackson J2 Deposit.

                     East      North      From   Intercept            P        S        Al2O3    SiO2   LOI

Hole_ID
Mt Jackson Deposits                        (m)
J2RC043              715895    6649782    3      13.0 m @ 59.81 % Fe  0.022    0.065    1.49     2.69   5.71
J2RC044              715853    6649984    18     15.0 m @ 59.23 % Fe  0.040    0.048    2.19     4.18   5.29
J2RC045              715900    6649884    21     22.0 m @ 58.95 % Fe  0.011    0.038    2.29     2.75   10.12
                                          53     33.0 m @ 60.44 % Fe  0.040    0.091    2.24     3.94   4.30
J2RC046              716005    6649885    9      39.0 m @ 61.16 % Fe  0.019    0.091    3.12     5.07   3.82
                                          50     18.0 m @ 61.91 % Fe  0.014    0.072    1.86     1.44   7.68
J2RC047              716060    6649878    9      30.0 m @ 60.22 % Fe  0.017    0.051    2.96     3.78   6.61
                                          64     24.0 m @ 58.33 % Fe  0.020    0.277    3.40     4.85   5.42
J2RC048              715905    6649835    97     12.0 m @ 62.21 % Fe  0.009    0.157    1.26     2.28   4.85
J2RC049              716197    6649946    3      69.0 m @ 61.11 % Fe  0.036    0.096    1.15     1.98   8.48
J2RC050              716192    6649896    0      20.0 m @ 62.13 % Fe  0.133    1.945    1.00     2.29   6.85
                                          26     60.0 m @ 62.63 % Fe  0.076    0.090    0.88     2.66   5.23
J2RC051              716149    6649883    2      77.0 m @ 62.77 % Fe  0.031    0.089    0.74     1.72   5.97



During the quarter the in-situ resource model for the J2 Deposit was completed
by Golder Associates. The in-situ resource totals 14.6 million tonnes at 62.10%
iron, 0.040% phosphorous, 0.100% sulphur, 2.10% silica and 1.23% alumina;
representing an increase of 1.7 million tonnes from the previously defined
resource.


Deposit          Classification   Tonnes        Fe%       Phos %    SiO2%     Al2O3%    S%       LOI%
                 (JORC)
Mt Jackson
J2               Measured
                 Indicated        14,433,000    62.12     0.040     2.08      1.19      0.101    7.03
                 Inferred         188,000       60.87     0.022     3.42      4.08      0.055    5.37
                 Total            14,621,000    62.10     0.040     2.10      1.23      0.100    7.01



Notes:

1.      Tonnage and grade rounded as appropriate.

2.      Cut-off grade 58% iron. No upper limit cut-off grades have been applied
to phosphorous, silica, alumina and sulphur.





Windarling Project



The Windarling W2, W3 and W5 deposits form a prominent E-W oriented range
approximately 27 kilometres north of Mount Jackson. Following on from the
completion of the reverse circulation and diamond in-fill drill programmes in
the September quarter, in-situ resource models for the W2, W3 and W5 deposits
have now been completed by Golder Associates. Due principally to the
environmental restrictions imposed on the development of the W3 and W5 deposits,
the total in-situ resource for the Windarling deposits combined is now 37.7
million tonnes, a net reduction of 10.1 million tonnes to the Windarling
resource figure previously reported. The environmental restrictions imposed on
the W3 and W5 deposits account for 90% (8.8 million tonnes) of the net reduction
above. The revised in-situ resources for the deposits are tabulated below.


Deposit           Classification   Tonnes        Fe%       Phos %     SiO2%     Al2O3%     S%       LOI%
                  (JORC)
Windarling
W2                Measured
                  Indicated        14,816,000    65.53     0.082      1.87      1.26       0.031    2.47
                  Inferred         1,918,000     65.59     0.091      2.09      1.27       0.022    2.99
                  Total            16,734,000    65.54     0.083      1.90      1.26       0.030    2.53
W3                Measured
                  Indicated        9,388,000     64.41     0.130      1.54      1.28       0.014    4.16
                  Inferred         3,870,000     64.86     0.127      1.14      0.97       0.011    4.63
                  Total            13,258,000    64.54     0.129      1.42      1.19       0.013    4.30
W5                Measured
                  Indicated        6,215,000     63.67     0.115      3.16      2.08       0.024    2.95
                  Inferred         1,530,000     63.34     0.121      3.18      1.61       0.019    3.22
                  Total            7,745,000     63.60     0.116      3.16      1.99       0.023    3.00



Notes:

1.      Tonnage and grade rounded as appropriate.

2.      Cut-off grade 58% iron. No upper limit cut-off grades have been applied
to phosphorous, silica, alumina and sulphur.

3.      W3 resource estimate takes into account all environmental restrictions
imposed on the development of resource.



Metallurgical Test Work



A programme of large diameter (PQ) diamond drilling designed to collect samples
for metallurgical ore characterisation test work, to confirm the geological
interpretation and the structure of the mineralised zones was completed during
the quarter. Eleven diamond holes totalling 966.3 metres were completed at the
Windarling (W2, W3 and W5) and Mt Jackson (J2) deposits.

Physical and metallurgical test work is near completion for both Windarling and
Mt Jackson. Results received to date have indicated a higher percentage lump
component for both the Windarling and Mt Jackson ores when compared with
Koolyanobbing K Pit lump / fines split. Results of test work, including thermal
test work and blend interpretations are expected to be finalised in the 1st
quarter 2004.



2.4.3       Cockatoo Island (50% Portman Iron Ore Limited / 50%

                                    Henry Walker Eltin)



SRK Consulting has completed an in-situ resource estimate for the Cockatoo
Island project. The in-situ resource totals 5.19 million tonnes at 68.17% iron,
0.014% phosphorous, 0.009% sulphur, 0.98% silica and 0.61% alumina.


Area              Category     Tonnes        Fe%       Phos      SiO2%     Al2O3%     S%       LOI
Cockatoo Is.      Measured
(100%)
                  Indicated    4,736,000     68.22     0.014     0.95      0.59       0.009    0.35
                  Inferred     452,000       67.61     0.013     1.29      0.86       0.010    0.45
                  Total        5,188,000     68.17     0.014     0.98      0.61       0.009    0.36

Portman (50%)     Total        2,594,000     68.17     0.014     0.98      0.61       0.009    0.36





Notes:

1.      Tonnage and grade rounded as appropriate.

2.      In-situ resource reported within following limits:

Stage 1 development area(1150mE to 1750mE, surface to -24mRL) and,

Stage 2 development area (1750mE to 2350mE, surface to -34mRL).



The information relating to Mineral Resources and exploration results within
this report is based on information compiled by Mr S H Tuckey B.Sc, MBA, MAusIMM
(Manager Exploration) from sources within Portman Limited and from mining
consultants Golder Associates and SRK Consulting. Mr Tuckey is employed by
Portman Limited and has the relevant experience in relation to the
mineralisation being reported on and techniques used in the estimation process
to qualify as a Competent Person as defined in the Australasian Code for
Reporting of Mineral Resources and Ore Reserves.





2.4.4    Exploration Expenditure


                                                 Dec Qtr 2003             2003                2002
Koolyanobbing Project                               1,162,072            4,213,856          3,116,114
SA Iron                                                 4,095              422,731          1,774,302
Lignite                                                 4,374               37,076          1,229,661
Cockatoo Island                                         1,909               55,026             55,116





3.0       FOREIGN EXCHANGE HEDGING



Total residual foreign exchange cover for the Portman Group at 31 December 2003
was US$89.136M.




YEAR                                    2004           2005           2006           TOTAL

                                                                                     2004-6
Face Value US$M                        55.636         26.500         7.000           89.136
Weighted Avg 'Worst" Case Hedge        .5603          .6037          .5849           0.5745
Rate





Portman Group's current Foreign Exchange Policy, for all hedging, provides for:



*    Up to 12 months maturity:  committed and/or uncommitted FX Hedging up to a
maximum of 75% of forecast USD sales.



*    12 to 24 months maturity:  committed and/or uncommitted FX Hedging up to a
maximum of 75% of forecast USD sales and subject to the committed FX Hedging
component not exceeding 25% of forecast USD sales.



*    24 to 36 months maturity:  committed and uncommitted FX Hedging up to a
maximum of 75% of forecast USD sales and subject to the committed FX Hedging
component not exceeding 12.5% of forecast USD sales.

PORTMAN LIMITED

A.C.N. 007 871 892





Corporate Information



Directors

George Jones                       Chairman
Barry Eldridge                     Managing Director/CEO
Michael Perrott                    Director
Richard Knight                     Director
Fiona Harris                       Director
Malcolm Macpherson                 Director



Company Secretary



Geoffrey Clifford



Registered Office



Level 11, The Quadrant
1 William Street
Perth  6000
WESTERN AUSTRALIA



Telephone:        (08) 9426 3333
Facsimile:        (08) 9426 3344



Internet site:      www.portman.com.au



Issued Capital



At 31 December 2003 there were 174,425,712 Ordinary shares on issue.



Substantial Shareholders as at 31 December 2003



ING Australia Ltd
ANZ Nominees Ltd
Westpac Custodian Nominees Ltd
National Nominees Ltd
UBS Global Asset Management



Reporting Calendar



Anticipated release dates for information in 2004 and other important
anticipated dates are as follows:



*   ASX Appendix 4E Preliminary Final Report               Late February 2004
*   Annual Report to Shareholders                          Late March 2004
*   March 2004 Quarterly Report                            20 April 2004
*   Annual General Meeting                                 Late May 2004


                      This information is provided by RNS
            The company news service from the London Stock Exchange
END

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