Whitehaven Coal Limited · ASX:WHC
Whitehaven Coal — Aston Resources — UBS Broker Presentation (October 2010)
19 slides from Whitehaven Coal's conference presentation, Oct 14, 2010
Slide 1: Maules Creek Project
ASTON RESOURCES Maules Creek Project UBS Broker Presentation 14 OCTOBER 2010 1
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by Aston Resources Limited (Aston) and consists of written materials/slides for a presentation concerning Aston. By reviewing/attending this presentation, you agree to be bound by the following conditions. No representation or warranty, express or impli
Slide 3: Overview of Aston Resources
Overview of Aston Resources Description ASX-listed coal development company that owns Aston Resources Board 100% of the Maules Creek project - a large-scale, premium quality coal asset Mark Vaile Todd Hannigan Tom Todd Non-Executive CEO CFO Share price A$5.80 Chairman Shares(1) 204.5m Market cap A$1
Slide 4: Maules Creek overview
Maules Creek overview Source: Reproduced with permission of Industry and Investment NSW World class JORC Reserve and Resource 16km from the main railway line Well understood geology enabling simple, base, one of Australiaʼs largest coal high productivity open-cut coal mining 380km from the N
Slide 5: World class reserves
World class reserves Maules Creek is one of the largest Australian coal deposits1 One of the last major undeveloped coal deposits in Maules Creek JORC Reserves New South Wales Mt Recoverable Marketable Reserves Reserves Geology well understood and mine planning Proved 151 69 undertaken with high
Slide 6: Well understood, attractive geological setting
Well understood, attractive geological setting Low risk, simple open cut mining operations Multiple shallow coal seams with no significant faulting identified Shallow-dipping deposit (from west to east) with consistent coal quality across the largely uniform coal seams Low strip ratio of 6.4:1
Slide 7: High quality metallurgical and thermal coal
High quality metallurgical and thermal coal Well suited to the Asian metallurgical and thermal coal markets In-situ coal quality provides flexibility to Maules Creek SSCC qualities in comparison to other regions produce semi-soft coking, high-volatile PCI and premium thermal coals Attractive coa
Slide 8: Leverage to the metallurgical coal market
Leverage to the metallurgical coal market Strong semi-soft coking coal outlook supported by strong fundamentals Tight demand and supply conditions in the metallurgical coal 2008 Global SSCC Suppliers Market Share (34Mt) markets expected to persist for several years Continued scarcity of quality
Slide 9: Significant high quality JORC Reserves
Significant high quality JORC Reserves One of the largest metallurgical-focused coal deposits in Australia Metallurgical coal production (57% of saleable production) compares favourably to ASX listed peers Marketable Reserves of Australian Coal Mines/Projects1 Indicative Production Split of Select
Slide 10: High yields and attractive product mix
High yields and attractive product mix High margin operation expected to produce ~10.8Mtpa saleable production Production expected to commence in 2012, ramping up to Maules Creek Expected Saleable Production steady state production in three years CHPP will be a single stage 1,600tph wash plant d
Slide 11: Compelling project economics
Compelling project economics Average FOB cash costs (pre royalties) expected to be A$56/t1 Maules Creek is expected to be a second quartile producer First 20 Years Average Costs (pre royalties) - (A$/t) of semi-soft coking and HV PCI coals Mining 31.7 12.2mtpa ROM, truck and shovel Strip ratio of
Slide 12: High operating cash margins
High operating cash margins Aston has the potential to generate significant cash margins Indicative Aston cash margin based on JFY 2010 coal prices Astonʼs estimated cash margin is A$75/t(1) - approximately ~2x its peer average last 12 months cash margin of A $32.9/t(2) − Peer cash margin range of
Slide 13: Low capital intensity
Low capital intensity Very low capital intensity when compared to other emerging coal basins - such as the Surat and Galilee Maules Creek Expected Development Capex Development capital until first coal forecast to be A$463 million, including 15% contingency Development Capex Total (A$m)1 Existin
Slide 14: Significant rail capacity expansions
Significant rail capacity expansions Rail expansion initiatives expected to provide sufficient capacity for Maules Creek Maules Creek will be serviced by the Gunnedah and Forecast Production from Gunnedah Basin and Capacity Hunter Valley Rail Systems Current track utilisation on the Gunnedah Rai
Slide 15: Significant port capacity expansions
Significant port capacity expansions Significant port capacity will be available for Maules Creek coal exports Aston plans to export coal out of the Port of Newcastle Port of Newcastle Record levels of capital investment will result in Newcastle port capacity doubling in throughput over five yea
Slide 16: Significant port capacity expansions
Significant port capacity expansions Port capacity at Port of Newcastle could exceed 208Mtpa within 5 years Port of Newcastle Expansion Initiatives Hunter Port of Newcastle Valley CoalHistorical Chain Capacity and Forecast Expansion Capacity 2010 PWCS has just completed its latest stage of expansi
Slide 17: Excess port capacity will likely be available
Excess port capacity will likely be available Even with bullish export assumptions, significant excess port capacity will likely be available HunterForecast Aston Valley Coal PortChain of Newcastle CapacityThroughput Expansion by Coal Producer Based on Astonʼs understanding of the production forec
Slide 18: Indicative development timeline
Indicative development timeline First coal expected in second half 2012 2010 2011 2012 2013–2016 MINE DEVELOPMENT Targeted Drilling Program Potential Reserve Upgrade Part 3A Development Approval Application Process Detailed Engineering Design CONSTRUCTION Early Procurement CHPP, Rail Spur Constructi
Slide 19: Competent Persons Statement
Competent Persons Statement The information in this presentation that relates to Coal Reserves is based on reserve estimates compiled by Mr Paul Westcott, BE (Mining, Hons) FAusIMM, MMICA, is a Fellow of the Australasian Institute of Mining and Metallurgy and a member of the Mineral Industries Consu
Aston Resources — UBS Broker Presentation (October 2010) on 6ix