Cokal Limited · ASX:CKA
Cokal — Investor Presentation (September 2015)
36 slides from Cokal's investor presentation, September 2015
Slide 1: Investor Presentation
Investor Presentation September 2015 1 Investor Presentation
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by the management of Cokal Limited (the Company) in connection with meetings with institutional investors, for the benefit of brokers and analysts and not as specific advice to any particular party or person. The information is based on publicly availab
Slide 3: Outline
Outline BBM Project Corporate Description – Overview Priority Development Other Company Community Activity Development 3 Investor Presentation
Slide 4: Our Focus
Our Focus Building a Global Metallurgical Coal Business Positive and Agile Decision Making Respect for all Stakeholders Ethical Decision Making Strong Indonesian Team Technical Skills for Innovative Solutions Results Orientated 4 Investor Presentation
Slide 5: Strong Board Coal Pedigree
Strong Board Coal Pedigree Peter Lynch - Chairman and CEO, Mining Engineer, 25 years experience in mining; MIM, Shell Coal, MacArthur Coal, Open Cut & Underground, TSX and ASX:WCI. Pat Hanna - Executive Director, Geologist, over 30 years experience all coal; Globally consulting on over 40 projects;
Slide 6: Diverse & Experienced Management
Diverse & Experienced Management Yoga Suryanegara - Resource Manager Indonesia, Geologist, international experience, responsible for overseeing multi-million dollar exploration programs in Queensland and Kalimantan; more than 10 years experience in Berau Coal (fifth largest open cut thermal coal in
Slide 7: Executive Summary
Executive Summary Cokal Limited (CKA) Cokal Capital • Listed on the ASX in December 2010 Structure • Developing Metallurgical Coal Projects in Central ASX Code CKA Kalimantan Shares on Issue 499.3M • Objective: Metallurgical coal producer by H2 2016 Options on Issue 66.15M Debt – Facility US$13.5 M
Slide 8: Project Locations - Indonesia
Project Locations - Indonesia 8 Investor Presentation
Slide 9: BBM, TBAR and BBP Tenements
BBM, TBAR and BBP Tenements INDONESIA 9 Investor Presentation
Slide 10: BBM – Priority Project
BBM – Priority Project Advanced development plan: In Mine Development Stage Near term production High quality coking coal with Low cash significant upside operating cost potential Investment Highlights Experienced Management team Flexible development with a strong record of plans – low delivering hi
Slide 11: Study Outcomes
Study Outcomes DFS: Real NPV of $US366M (100% Project) • Stand-alone DFS at BBM ASSET DESCRIPTION completed by Resindo Project BBM, Central Kalimantan, Indonesia • Capable of rapid expansion 266Mt JORC Resources 19.5Mt Measured, 23.1Mt • Confirms low initial capital Indicated + 224Mt Inferred) expen
Slide 12: Definitive Feasibility Study Highlights
Definitive Feasibility Study Highlights • Confirmed that BBM and associated transport system can be developed as a low cost operation with moderate to medium range operating cost: – BBM Coal will command a high value as a blending feed in the Coking Coal Market – No risks were identified that would
Slide 13: Mine Costs
Mine Costs US$ Operating Cost US$ Development Capital (Million) (excluding 7% Royalty) /t Avg - Initial Start up 50 Year 1 65.00 - Enhancement 25 - Average first 5 years 82.00 TOTAL *75 Life of Mine *97.00 *Note: Based on contract mining and barging Highly Competitive • Capital Investment • Operatin
Slide 14: Cakra Mineral Tbk and Cokal Limited - Take Over Bid
Cakra Mineral Tbk and Cokal Limited - Take Over Bid PT Cakra Mineral Tbk (CKRA) and Cokal Limited (ASX:CKA) have entered into a Bid Implementation Agreement under which CKRA will make a conditional off market takeover bid for all of the shares in Cokal (Offer). Bid consideration : Under the Offer, C
Slide 15: Cakra Mineral Tbk and Cokal Limited - Take Over Bid
Cakra Mineral Tbk and Cokal Limited - Take Over Bid CKRA funding CKRA intends to raise approximately US$100 million by way of a rights issue underwritten (as a standby buyer) by PT. Sinarmas Sekuritas2 (Underwriter), On the 1st June, CKRA has advised Cokal that it had executed an underwriting agreem
Slide 16: Cokal's Target Statement – 28th August
Cakra Mineral Tbk and Cokal Limited - Cokal’s Target Statement – 28th August • Cokal shareholders should have already received Cakra’s Bidder’s Statement. Cakra is offering a choice of: – (all cash consideration) A$0.16 per Cokal share; or – (all share consideration) 10.327 Cakra Shares for every 1
Slide 17: BBM Approvals
BBM Approvals All Approvals IUP (Exploration), on ‘Clean & Clear’ List PT BBM approved Foreign Owned company (PMA status) Cokal Shareholding of PT BBM approved by BKPM (Central Government Foreign Investment Co-ordination Board) Exploration Forestry Permit (IPPKH Izin Pinjam Pakai) Environm
Slide 18: On the Doorstep of the Biggest MET Coal Markets
On the Doorstep of the Biggest MET Coal Markets Fastest and lowest cost shipping to key customers Dalandzangad Mongolia Coos Bay United S. Korea Japan Seoul China Seoul Tokyo States Shanghai India Guangzhou Mumbai Mumbai Mumbai Mumbai Vietnam China Seoul Ho Chi Min
Slide 19: Developing a new Coking Coal Province
Developing a new Coking Coal Province Indonesian Coal Reserves 19 Investor Presentation
Slide 20: BBM Resources – 266Mt
BBM Resources – 266Mt1 Sufficient Resource to underwrite 2Mtpa initial open cut production plan Resources by Seam and Category Resources by Category and Depth of Cover 1266Mt Measured, Indicated and Inferred Resource 20 Investor Presentation
Slide 21: BBM Premium Quality Coking and PCI Coal
BBM Premium Quality Coking and PCI Coal Product Quality – BCD Seams Premium Coking Coal Ash CSN Volatile Sulphur Phosphorus Calorific Fixed (% adb) Matter (adb) (% adb) Value Carbon (% adb) (adb) (adb) Range ≤8.0 7.5-8.5 13.9-14.1 0.31-0.34 0.000-0.001 7960-8065 77.0-78.1 Average 8.0 8.0 14.0 0.33 0
Slide 22: BBM Premium Quality Coking and PCI Coal
BBM Premium Quality Coking and PCI Coal BBM PCI Product Coal Ash CSN Volatile Sulphur Phosphorus Calorific Fixed (% adb) Matter (adb) (% adb) Value Carbon (% adb) (adb) (adb) Range 3.5-4.7 1.0-1.5 9.3-10.3 0.39-0.41 0.001-0.004 7676-8204 75.6-84.3 Average 4.5 1.3 9.7 0.42 0.002 8023 81.2 Low insitu-
Slide 23: BBM – Potential to Increase Resource Size
BBM – Potential to Increase Resource Size This potential is in addition to the current 266Mt JORC Measured, Indicated and Inferred Resources Comprised of 13 Seams in the Eastern Block of BBM (40% of the tenement area) 23 Investor Presentation
Slide 24: Planned Mining Operations
Planned Mining Operations Truck / Excavator Operation • Contractor operated • Pit to Jetty Seam Outcrop on the Surface • Significant length of outcrop • J Seam ~ 1.4m thick • In-pit sizing / screening 24 Investor Presentation
Slide 25: Infrastructure and Transport
Infrastructure and Transport Coal to be transported in three phases, accounting for ~ 774km from the mine site to the Java Sea • 55km haul road from mine to the Barito River • 500km down the Barito River to the Intermediate Stockpile Port at Kelanis • Ocean-going barges to transport coal ~ 200km to
Slide 26: Truck Haulage
Truck Haulage • 55km road route, 2 studies done, initial quotation received • Detail work underway • All weather surface • Ease of loading, unloading, reliability • Excellent balance of operating and capital costs 26 Investor Presentation
Slide 27: Barge Loading
Barge Loading • Plan for direct load from trucks to barges • Spare barges enable efficient system • Stockpiling capability • Front End Loader hoppers for re- loading from stockpile • Low capital, low operating cost • Minimises coal degradation 27 Investor Presentation
Slide 28: Shallow Draft Barges
Shallow Draft Barges • River designed barge system for safe, reliable and economic transport • Indonesian system currently uses towed ocean going barges • Mississippi style allows flexibility, for manoeuvring and cargo sizes • JV formed with MDM Meratus highly respected Indonesian river barging comp
Slide 29: Shallow Draft Barges
Shallow Draft Barges • Stage 1 – 6,000t convoys (4 x 1,500t barges) – 500km • Shallow draft: down to 2.3m water level • 3 Studies completed • Full bathymetric survey of river • Daily river height data for over 10 years used • 6 tugs and barge sets for Tug and 4 Barge Convoy 2Mtpa • Spare barge set a
Slide 30: Deep Water Barge to Shiploader
Deep Water Barge to Shiploader Deep Water Barges to Floating Crane in Java Sea • 12,000t now common (matches 2 x 6,000t upper river shallow barge convoys) • Matches common ship hatch size Operators • Many Barge operators at this point • Many Floating crane operators offshore • Low cost, efficient 30
Slide 31: Other Tenements Central Kalimantan, Indonesia
Other Tenements Central Kalimantan, INDONESIA TBAR – Agreement signed 75/25 with local owners. 19,000ha adjoins BBM, which doubles the size of the exploration area available. Potential for BBM seams extend into TBAR Tenement is on the Clean and Clear List issued by the Directorate General of Min
Slide 32: BBM Project Conclusions
BBM Project Conclusions Low capital High quality Low operating investment coking product cost required Good margin Geographically Early and quick well production payback positioned Experienced Potential for Executive expansion team 32 Investor Presentation
Slide 33: Developing Infrastructure
Developing Infrastructure Two river ports and two coal -fired power stations to facilitate metallurgical coal production Working together for mutual benefit with the Murung Raya Regency CSR program on education Peter Lynch, Drs. Perdie MA(Head of Regency),Darmaji (Vice Bupati), Agus Widjojo, Garry K
Slide 34: Corporate Social Responsibility
Corporate Social Responsibility Education • University Scholarship program in conjunction with the Palangkaraya University • General Lecturer at The Palangkaraya University • Sponsored four teachers for the Tumbang Tuan Jnr High School • Environment Awareness Program Health • Medical and Emergency S
Slide 35: Project Location West Kalimantan, Indonesia
Project Location West Kalimantan, INDONESIA Cokal 75.2% interest in PT Silangkop Nusa Raya (SNR) Three IUPs in Singtang Regency, West Kalimantan covers an area of 13,000ha Outcrop samples show high volatile, low ash, moderate sulphur and low phosphorus coking coal 35 Investor Presentation
Slide 36: Summary
Summary Executive Team with strong track record Plans for High Margin becoming a Metallurgical Coal Significant confirmed Metallurgical Coal Producer Assets with Good Plans to develop Potential the portfolio BBM on track for production in 2016, with significant upside potential 36 Investor Presentat