Business Description:
Australasian Resources Limited (ARH) is a minerals exploration company with projects prospective for iron ore, nickel and uranium primarily located in WA.

Strategy Analysis:
ARH will be focusing on the development of its Balmoral South Iron Ore project and Sherlock Bay Nickel project. An important step in the development process was the recent finalization of the acquisition of International Minerals Pty Ltd, which holds the right to mine 1 billion tonnes of magnetite iron ore from part of the southern block of the Balmoral Project, on lease held by Mineralogy. A strategic relationship has been signed with Shougang Corporation, China's 4th biggest steel producer, with an issue worth $56 million being sold to Shougang related entities. Following the completion of a feasibility study and an election to proceed by Shougang Corporation to full-scale project development, Shougang related Entities will earn a 50% interest after financing 100% through an interest free loan, guaranteeing the purchase of all iron ore products from the project and guaranteeing construction by another suitable constructor . Australasian Resources reported negative cash flow of $771,000 for quarter ended 30 September 2011. Operating cash flow for the period was $(771,000). Payments for exploration and evaluation were $(232,000). Investing cash flow was nil. Financing cash flow was nil. Cash in hand at the end of the quarter was $883,000.