TerraCom Limited · ASX:TER
TerraCom — Guildford Coal — Galilee Basin Coal and Energy Conference 2012
33 slides from TerraCom's conference presentation, Nov 9, 2012
Slide 1: Galilee Basin Coal & Energy Conference Presentation
Suite C1, 1 Honeysuckle Drive, ‘The Boardwalk’ Newcastle NSW 2300 PO Box 509, Newcastle NSW 2300 Telephone: 02 4914 5910 Facsimile: 02 4925 3505 www.guildfordcoal.com.au 9 November 2012 Company Announcements Platform Australian Stock Exchange 10th Floor, 20 Bond Street Sydney NSW 2000 Galilee Basin
Slide 2: Galilee Basin Coal and Energy Conference
Galilee Basin Coal and Energy Conference Chief Operating Officer - Mark Turner 12 and 13 November 2012
Slide 3: Cautionary Statement
2 CAUTIONARY STATEMENT The information contained in this document (Presentation) has been prepared by Guildford Coal Limited (Company). This Presentation does not constitute an offer or invitation to any person to subscribe for or apply for any securities in the Company. This Presentation contains s
Slide 4: Competent Persons Statement
3 Competent Persons Statement # Exploration Target References to Exploration Targets in this document are in accordance with the guidelines of the JORC Code (2004). As such it is important to note that in relation to reported Exploration Targets any references to quality and quantity are conceptual
Slide 5: Agenda
4 Agenda 1 Executive Summary 2 Guildford Coal in Australia 3 The Greater Northern Galilee Coal Project 4 Summary of the Guildford Coal Investment Proposition A Table of Resources
Slide 6: Executive Summary
5 1 Executive Summary
Slide 7: Executive Summary
6 Executive Summary • Guildford has two independent divisions; Queensland and Mongolia • Major strategic regional tenement holding of approx. 16,500km2 in the Northern Galilee Basin Queensland • Near term coking coal production in Mongolia • Large proven resource in excess of 2 billion tonnes of the
Slide 8: Board of Directors
7 Board of Directors Hon. Peter Lindsay Independent Chairman Peter served as a member of the Australian Liberal Party for more then 25 years. Peter was first elected to the Townsville City Council in 1985 and served five terms undefeated. In 1996 he was elected to the Australian Parliament and again
Slide 9: Board of Directors (continued)
8 Board of Directors (continued) Louis Chait Chief Financial Officer, Director and Joint Company Secretary Louis has an accounting and mining background, and previously worked for a blue chip coal mining company for over a decade, where he held several senior executive finance and management positio
Slide 10: Corporate Snapshot
9 Corporate Snapshot Capital Structure Share Price Chart ASX Code GUF 1.40 16.0 Listed on ASX 22 July 2010 1.20 Shares on Issue 521.0m 12.0 Volume traded (m) 1.00 Share Price (31 Oct) A$0.50 A$/sh 0.80 8.0 Market Cap A$260m 0.60 4.0 Options on Issue Nil 0.40 Cash (30 Sept 2012) A$10.0m 0.20 0.0 Sep-
Slide 11: Corporate Overview
10 Corporate Overview Mongolia • Interests in Mongolia are held through 75% owned subsidiary, Terra Energy1 • Coal projects located in the South Gobi and Mid Gobi coal basins which contain coking and thermal coals respectively • South Gobi Project • Situated approximately 60km from the Chinese borde
Slide 12: Guildford Coal in Australia
11 2 Guildford Coal in Australia
Slide 13: Queensland—Project Snapshot
12 Queensland—Project Snapshot Summary of Portfolio Estimated 20,000km2 of exploration tenements located across Queensland’s major coal bearing basins including: Guildford - Bowen Queensland - Galilee Projects - Maryborough Target Coal Products - Hard Coking - Thermal - PCI Priority Projects - Hughe
Slide 14: Queensland—Goals for 2012
13 Queensland—Goals for 2012 Following completion of successful dry season drilling program, drilling has been scaled back to 2 drills with the remaining units to complete drilling on White Mountain Project and Springsure Project before the onset of Wet Season Complete the feasibility on the Hughend
Slide 15: The Greater Northern Galilee Coal Project
14 3 The Greater Northern Galilee Coal Project
Slide 16: Greater Northern Galilee Coal Project
15 Greater Northern Galilee Coal Project Greater Northern Galilee Coal Project White Mountain Project Hughenden Project Pentland Project 100%)
Slide 17: Large Scale Opportunity Close to Infrastructure
16 Large Scale Opportunity Close to Infrastructure Covering approximately 16,500 km2, the project has the potential to support multiple 1 open cut and underground mining operations Two deposits delineated during 2012, White Mountain OC / UG & Hughenden UG 2 covering over 2 Bt Inferred Resource of th
Slide 18: White Mountain Coal Project
17 White Mountain Coal Project White Mountain Coal Project located in EPC1250 and EPC1260, owned by White Mountain Pty Ltd Guildford recently increased its stake in White Mountain to 62.7% (from 59.7%) by taking up a full allotment of the second rights issue Located on the north eastern edge o
Slide 19: White Mountain Coal Project
18 White Mountain Coal Project Interpreted Betts Average Grid Creek Beds Seam Thickness (m) Seam A 0.68 Seam B 2.53 Seam C 1.14 Seam D 6.12 TOTAL 10.47 JORC Inferred Resource Maiden Inferred Resource (announced 5 March 2012) of 262Mt Upgraded to 623Mt (announced 17 October 2012), an increase of
Slide 20: White Mountain Coal Project
19 White Mountain Coal Project Coal seams found in the Greater Northern Galilee Coal Project area are consistent with those published by other Galilee Basin explorers such as Adani, Hancock Coal, Blackwood Corp, Vale and China First/Waratah (cross section modified from Blackwood Corporation’s ASX
Slide 21: Hughenden Coal Project
20 Hughenden Coal Project Inferred Resource of 1.619Bt of thermal coal Maiden Indicated Resource of 123.63Mt announced July 2012 Geostat study supports increased distance of 1,200m between points of observation Seam continuity and benign geological conditions are expected to support a high p
Slide 22: Pentland Coal Project
21 Pentland Coal Project Pentland Coal Project contained in six tenements adjacent to the Hughenden Coal Project Covers 4,800 km2 with a variety of coal targets from: • Permian Betts Creek Beds • Triassic Warang Sandstone • Jurassic Wallumbilla • Blantyre Sandstone • Ronlow Beds Potential earl
Slide 23: Greater Northern Galilee Coal Project – Start Up Mine Concept
22 Greater Northern Galilee Coal Project – Start Up Mine Concept Multi Pit with Centralised Infrastructure • Start Up Project Development would consist of the following: • Open Cut Mine at White Mountain ( EPC1260) • Highwall entry Longwall Mine at White Mountain ( EPC1260) • Longwall Mine at Hughen
Slide 24: Greater Northern Galilee Coal Project – Start Up Mine Concept
23 Greater Northern Galilee Coal Project – Start Up Mine Concept PROJECT CONCEPTUAL GENERAL ARRANGEMENTS
Slide 25: Infrastructure – Port of Townsville
24 Infrastructure – Port of Townsville Port of Townsville working hard to increase throughput $190M Townsville Port Access Road currently under construction to provide dedicated efficient transport connectivity – fully operational early 2013 Future Eastern Access Rail Loop will provide increas
Slide 26: Infrastructure – Townsville State Development Area
25 Infrastructure – Townsville State Development Area Source: Port of Townsville October 2012
Slide 27: Infrastructure – Mount Isa to Townsville Rail Line
26 Infrastructure – Mount Isa to Townsville Rail Line Hauling from Kimburra siding (near Pentland) to Port of Townsville Concept study undertaken by QR National to identify most efficient above and below rail solution Rail Capacity and Infrastructure Analysis recently completed by Queensland R
Slide 28: Summary of the Guildford Coal Investment Proposition
27 4 Summary of the Guildford Coal Investment Proposition
Slide 29: Summary of the Guildford Coal Investment Proposition
28 Summary of the Guildford Coal Investment Proposition 1 South Gobi Project: material near-term production and cash flows expected 2 Multiple, high quality, low cost brown field expansion opportunities at South Gobi Project Expected lowest quartile cash costs and forecast production of coking coal
Slide 30: Differentiating through Cash Flow
29 Differentiating through Cash Flow Guildford holds a number of key advantages over its 4,000 ASX listed peers • Proximity to market and infrastructure solutions in place for priority projects in Mongolia and Queensland 3,000 • Low capital intensity options for brown field Market cap (A$m) expansio
Slide 31: Thank you
GUILDFORD
Slide 32: A Table of Resources
31 A Table of Resources
Slide 33: Appendix A - Mineral Resource Summary
32 APPENDIX A - MINERAL RESOURCE SUMMARY JORC Resources Exploration Target# (Mt) (Mt) Potential Coal Independent Guildford Coal Type Geologist Measured Indicated Inferred Total Lower Upper Hughenden* 123.6 1,495.4 1,619 285 2830 Thermal MDM Pentland% 295 2890 Thermal MDM White Mountain@ 623 623 40 8
Guildford Coal — Galilee Basin Coal and Energy Conference 2012 on 6ix