Whitehaven Coal Limited · ASX:WHC
Whitehaven Coal — Aston Resources — Investor Presentation (September 2011)
20 slides from Whitehaven Coal's investor presentation, September 2011
Slide 1: Aston Resources Investor presentation
Aston Resources Investor presentation September 2011
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: Agenda
Agenda Maules Creek overview Full year results Project update − Design update − Planning update − First 5 Mtpa of rail capacity secured 2
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 Australia’s largest coal high productivity open-cut coal mining 380km from the N
Slide 5: FY11 results
FY11 results Summary of FY2011 results Attributable cumulative capex spend (1) (1) Pre-tax profit of $328.3m, including: (A$ in millions) 600 − Gain on sale of stake to ITOCHU: $253.9m − FX gains: $82.0m $48.2m of capex spent Pro-forma cash on hand of $118.5m(2) Undrawn debt facilities of $3
Slide 6: Maules Creek Project
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Slide 7: Detailed design nearing completion
Detailed design nearing completion Design completion Project Status Comments CHPP Procurement and tender process Design and procurement for the CHPP was led by Sedgman now in final stages Small scope changes have increased capacity of key CHPP Complete A$40m of critical, long lead time, elem
Slide 8: Capital expenditure to first coal
Capital expenditure to first coal Maules Creek remaining development capex (2) (2) Low capital intensity compared to other projects (A$ in millions) A$m CHPP 215 − Development capex of ~A$651m, including contingency Raw Coal Handling 35 (Aston share ~A$553m) CPP 38 Product Handling, Tailings and T
Slide 9: CHPP design nearing completion
CHPP design nearing completion CHPP, looking south Class-leading CHPP design by Sedgman Bypass system rated for 1,600 tph (11.8 Mtpa) Wash plant system rated at 1,600 tph (11.8 Mtpa) Critical, long lead time, equipment ordered Facilities designed for future expansion − Provides operational
Slide 10: Operating costs – first quartile
Operating costs – first quartile Average real FOB cash costs (pre royalties) expected to be A$62.9/t Forecast operating costs Projected 20 year average FOR cash cost for the mining operation is A$42.7/tonne A$/t Mining 37.5 12Mtpa ROM, truck and shovel Strip ratio of 6.4:1 over first 20 years − Lo
Slide 11: Attractive operating cash margins
Attractive operating cash margins Cash margins reflect high proportion of metallurgical product, high quality of coal and competitive cost structure Indicative Aston cash margin at Q3 2011 (Q2 JFY) prices Aston’s estimated cash margin is A$136/t(1) at 2011 Q3 (Q2 JFY) prices 250 Costs reset to r
Slide 12: Planning and production profile
Planning and production profile Maules Creek is well advanced in the planning approval Forecast saleable product process (Mt, YE 31-Dec) 12.0 − Public exhibition commenced August 2011 and will close October 2011 − Planning Assessment Committee (“PAC”) recommendation 10.0 due December 2011 − Expect
Slide 13: Timeline to first coal
Timeline to first coal Aug 2010 Feb 2011 Q1 2012 Approvals Lodge Part 3A Lodge EA Receive Environmental Approvals project Application and preliminary EA report to Department Dec 2011 of Planning (“DOP”) PAC recommendation Feb 2010 Noonday acquisition financing Aug 2010 IPO (A$400m) Financing May 201
Slide 14: Rail capacity expansion in progress
Rail capacity expansion in progress In August 2011 Aston secured the first 5 Mtpa of below-rail ARTC rail upgrades in the Hunter coalfields capacity − Expects to secure remaining capacity in the near term ARTC has exercised its option to lease the section of track north of The Gap (now part of t
Slide 15: Step change in port capacity
Step change in port capacity Aston expects significant spare port capacity at Newcastle from 2011 onwards Even assuming highly bullish production growth Port of Newcastle historical and forecast capacity from NSW coal producers over the next five 280 Forecasts years, there is still likely to be si
Slide 16: 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 468 Mt Coal Low strip ra
Slide 17: Superior coal quality confirmed
Superior coal quality confirmed Drilling program and detailed coal quality testing and analysis has led to a significant upgrade in coal quality Quality parameters Comprehensive seam-by-seam, ply-by-ply coal 50 quality testing undertaken − Coal quality analysed and independently verified Low ash
Slide 18: World class reserves
World class reserves Maules Creek is one of the largest Australian coal deposits(1) Maules Creek JORC Reserves One of the last major undeveloped coal deposits in NSW Recoverable Marketable(2) Geology well understood and mine planning undertaken with high degree of confidence − Definitive feasibi
Slide 19: Maules Creek – a world class coal project
Maules Creek – a world class coal project Fourth largest metallurgical coal mine in Australia Metallurgical coal production (84% of saleable production) leads to high margins and high returns Marketable Reserves of Australian Coal Mines/Projects(1) Indicative Production Split of Selected Australia
Slide 20: Competent Persons Statement
Competent Persons Statement The information in this report that relates to Coal Reserves is based on reserve estimates compiled by Mr Doug Sillar, BE (Mining, Hons) MAusIMM. The estimates are based on information compiled and reviewed by Mr Westcott. He is an employee of MMC and has sufficient exper
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