New Age Exploration Limited · ASX:NAE
New Age Exploration — Investor Presentation (June 2012)
21 slides from New Age Exploration's investor presentation, Jun 19, 2012
Slide 1: Lochinvar – A major new coking coal project
Lochinvar – “A major new For personal use only coking coal project” Investor Presentation June 2012
Slide 2: Important Notices and Forward Looking Statements
IMPORTANT NOTICES AND FORWARD LOOKING STATEMENTS This presentation is for limited circulation to selected recipients. It is provided on a strictly private and confidential basis to be used solely by the recipient and their professional advisors. It must not be made available to, or discussed with, a
Slide 3: NAE - Corporate Profile
NAE - CORPORATE PROFILE Corporate Snapshot Share Price Performance For personal use only 14.0 $0.18 ASX Code NAE $0.16 12.0 NAE share price (as at 14 June 2012) A$0.095 $0.14 10.0 Share price (A$/share) Total shares on issue 142.9m $0.12 8.0 Volm (m) $0.10 Unlisted options on issue1 19.15m 6.0 $0.08
Slide 4: NAE Coal Project Portfolio
NAE COAL PROJECT PORTFOLIO For personal use only United Kingdom • Lochinvar Coking Coal Project - 67km2 licence on Scottish / English border granted in June 2012 - 330-410Mt potential coking and PCI coal exploration target Colombia • Terranova Coking Coal Project (Central Colombia) - Concession 887T
Slide 5: Lochinvar Coking Coal Project, UK
For personal use only Lochinvar Coking Coal Project, UK 5
Slide 6: Lochinvar Coking Coal Project - Introduction
LOCHINVAR COKING COAL PROJECT - INTRODUCTION For personal use only Lochinvar Sir Walter Scott O young Lochinvar is come out of the west, Through all the wide Border his steed was the best; And save his good broadsword he weapons had none. He rode all unarm'd, and he rode all alone. So faithful in lo
Slide 7: Background
BACKGROUND • Historic exploration by NCB at Canonbie coalfield 1950’s -1980’s proved For personal use only existence of the coal previously mined at Rowanburn Colliery (closed 1922) • Canonbie coalfield discovered at a time of major decline in UK coal industry: - 1984 NCB announce closure of 20 mine
Slide 8: Seam Contour and Borehole Location Plan
SEAM CONTOUR AND BOREHOLE LOCATION PLAN • Conceptual Exploration Target (incl. Six Foot, Nine Foot, Five Foot and Black Top For personal use only seams) of 330 - 410 Mt potential coking and PCI coal • Exploration Target based on 13 boreholes and 55km of seismic lines completed by the NCB • Coal seam
Slide 9: Cross Sections and Stratigraphic Column
For personal use only CROSS SECTIONS AND STRATIGRAPHIC COLUMN • Multiple seams including the Nine Foot Seam with estimated average thickness 2.0m • Shallow dips 5°to 10° • Mining conditions likely to be suitable for longwall and continuous miner operations 9
Slide 10: Lochinvar Coal Quality
LOCHINVAR COAL QUALITY • High volatile, low ash, high CV coal with high swell index expected based on For personal use only results of previous drilling: Coal Proximate Analysis (adb) Gross Thickness Ash Sulphur CV(adb) Grey Seam SG (m) % % VM% Moisture% kcal/kg King Swell Six Foot 1.35 1.5 7.0 2.5
Slide 11: Lochinvar Infrastructure
LOCHINVAR INFRASTRUCTURE • Close proximity to all major infrastructure For personal use only • Major London to Glasgow railway and London to Glasgow motorway within 16km Port Talbot Steelworks (Wales)
Slide 12: Potential Markets
POTENTIAL MARKETS • Europe currently imports ~46 Mtpa coking coal For personal use only ~76% sourced from distant suppliers (e.g. Australia, Canada and US) • UK imports ~8mtpa coking coal • 2011 UK Landed prices: ~US$280/t for Australian and Canadian supplies ~US$250/t for US supplies • Advantage to
Slide 13: Lochinvar Work Program
LOCHINVAR WORK PROGRAM • Undertake comprehensive review of Lochinvar historic exploration data For personal use only - Reprocess 55km seismic data - Investigate missing coal analysis data (7 boreholes) • Commence drilling program targeting JORC resource within one year • Establishment of project tea
Slide 14: Peer Comparison - ASX Coking Coal Companies
PEER COMPARISON - ASX COKING COAL COMPANIES For personal use only Weighted Average Source: Patersons Securities Limited • Only 25% of NAE’s coking coal Conceptual Exploration Target included (Lochinvar 92Mt, Terranova 15Mt) • Average EV/t of peer companies is A$1.09/t. NAE EV/t is A$0.08/t. • NAE ha
Slide 15: Colombian Projects
For personal use only Colombian Projects 15
Slide 16: NAE's Colombian Strategy
NAE’S COLOMBIAN STRATEGY 1. Delivery of existing Coal Projects For personal use only • Three coking coal and two thermal coal acquisitions completed in 2011 • Terranova Project – Targeting long term production from 2014 - Concession 887T (3.6Mt hard coking coal JORC resource) - Adjacent Concessions
Slide 17: Terranova Coking Coal Project
TERRANOVA COKING COAL PROJECT Targeting Long Term Production Terranova Coking Coal Project For personal use only • 887T Concession - 3.6Mt JORC Resource - Progressing approval of mine extension - Feasibility Study well progressed • FL2 -151 Concession - 10-18Mt hard coking coal exploration target -
Slide 18: Cesar Export Thermal Coal Projects
CESAR EXPORT THERMAL COAL PROJECTS Corporate Activity in the Cesar Basin • Cesar Basin contains multiple economic export For personal use only quality seams 2-6m thick with total coal thickness up to 35m • Significant corporate activity in Cesar Basin (Itochu acquired 20% of Drummond for US$1.5B in
Slide 19: La Miel Phase Drilling
LA MIEL PHASE 1 DRILLING • Drilling commenced (at depth of 60m on first For personal use only hole on 12 June) • Rains and flooding in the area have caused delays and re-location of Phase 1 holes • Phase 1 will now include the following boreholes: Borehole Est. Completion BH2 Mid August BH5 Mid Oct
Slide 20: Investment Case Summary
INVESTMENT CASE SUMMARY 1. Emerging global coking coal producer For personal use only 2. Geographic diversity across UK and Colombia 3. Lochinvar Coking Coal Project - Commencing JORC drilling in 2012 (exploration target of 330Mt to 410Mt coking and PCI coal) 4. Terranova Coking Coal Project advanci
Slide 21: For Further Information Please Contact
For personal use only FOR FURTHER INFORMATION PLEASE CONTACT: Gary Fietz, Managing Director New Age Exploration Telephone: + 61 3 9614 0600 Email: [email protected] Image: M3 Hard Coking Coal Seam, Terranova. Seam height approx. 1.6m 21
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