New Age Exploration Limited · ASX:NAE
New Age Exploration — Investor Presentation (July 2011)
17 slides from New Age Exploration's investor presentation, Jul 6, 2011
Slide 1: Colombian Coal Investor Presentation
For personal use only Colombian Coal Investor Presentation July 2011
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: Investment Summary
INVESTMENT SUMMARY • Focussed on pursuing coal, iron ore and base metal opportunities For personal use only • NAE’s strategy is to build a material Colombian coal business with a production base of at least several million tonnes export coal • NAE has identified multiple coking and thermal coal oppo
Slide 4: Corporate Profile
CORPORATE PROFILE Corporate Snapshot Share Price Performance For personal use only ASX Code NAE 16000 $0.16 La Miel Acquisition Current share price (as at 1st July 2011) A$0.13 14000 $0.14 Cesar Project Announced 12000 $0.12 Total shares on issue 97.1m Share price (A$/share) 10000 $0.10 Listed optio
Slide 5: Colombia – An Emerging Investment Destination
COLOMBIA – AN EMERGING INVESTMENT DESTINATION • Colombia in South & Central America For personal use only Fraser Institute Ranking of South and Central American Countries (2010) – Democracy & free market economy 90 – Investment grade sovereign debt rating 76 78 79 80 75 (S&P: BBB-) in line with Braz
Slide 6: Colombian Coal Overview
COLOMBIAN COAL OVERVIEW • #1 South American coal resource base Major Colombian Coal Basins For personal use only Thermal Coal 5.0 billion tonnes Coking coal & anthracite 1.4 billion tonnes Sub bituminous 0.4 billion tonnes Total coal 6.8 billion tonnes Source: Colombian Ministry of Mines & Energy •
Slide 7: Thermal Coal - Corporate Activity in the Cesar Basin
THERMAL COAL - CORPORATE ACTIVITY IN THE CESAR BASIN • World class Cesar thermal coal basin: For personal use only – Current production ~40Mtpa – Forecast to reach 70Mtpa by 2015 – High quality, low sulphur export thermal coal • Itochu acquired 20% of Drummond (June 2011) – 20% interest of Drummond’
Slide 8: NAE Cesar Basin Thermal Coal Project
NAE CESAR BASIN THERMAL COAL PROJECT Cesar Basin Concessions • NAE has acquired three concessions in Cesar thermal For personal use only coal basin • GIK-103 & GHN-121 (announced 11 May 2011) – Contiguous with Drummond & Vale concessions – Area of 4,141 hectares – Conceptual exploration target of 20
Slide 9: Cesar Project – Logistics
CESAR PROJECT – LOGISTICS • Rail concession is operated by FENOCO until 2030 For personal use only – Line capacity is currently operating at full capacity – Goldman Sachs is currently trucking coal to Santa Marta (estimated cost of US$20-25/tonne) – Capacity increase (twin tracking line) to 100Mtpa
Slide 10: Cesar Project – Next Steps
CESAR PROJECT – NEXT STEPS Historical Seismic Lines (GHN-121 & GIK-103) For personal use only • NAE has commenced acquiring relevant historical seismic data – Dates from 1970s-1990s – Hydrocarbon and coal exploration • Engaging UK based consultancy to review data, reprocess and reinterpret • Conduct
Slide 11: NAE's Coking Coal Strategy
NAE’s COKING COAL STRATEGY • Majority of coking coal found in mountainous regions: limited open pit opportunities For personal use only • Mines developed ‘down-dip’ from outcrop, seam thickness from 1-3m and dips from +5o Current Colombian Operations Proposed NAE Operations Moderate safety record Fo
Slide 12: Typical Coking Coal Opportunity
TYPICAL COKING COAL OPPORTUNITY • Opportunities exist to acquire substantial down dip coking coal resources For personal use only • Develop fully mechanised UG operations • Short wall mining system, conveyor haulage & wash plant Typical Coking Coal Project Parameters Capital cost US$30-50m Mine gate
Slide 13: Colombian Logistics
COLOMBIAN LOGISTICS Current For personal use only • FENOCO operated concession • Extensive highway network and large trucking fleet – coal and coke trucked to Atlantic and Pacific export ports (up to 1,000km) • Multiple port options Future • FENOCO railway expansion to 100Mt by 2015 • CARARE railway
Slide 14: Aurora Partnership
AURORA PARTNERSHIP • Exclusive Colombian partnership with Aurora to acquire & develop resource projects For personal use only • NAE has an initial 90% interest in projects acquired, Aurora has a 10% interest • Aurora is a JV between the major shareholders of C.I Entrelink S.A. (trading as Polminera)
Slide 15: NAE Partners - Unlocking the Challenge
NAE PARTNERS - UNLOCKING THE CHALLENGE • Aurora exclusive agency arrangements with European equipment suppliers / consultants • Can provide ‘in-house’ solution to mechanisation of existing operations For personal use only – Mining contractors/consultants (BBB) have reviewed Colombian operations – Sh
Slide 16: Investment Case Summary
INVESTMENT CASE SUMMARY • Focus on building portfolio of Colombian coking and thermal coal projects For personal use only • Exclusive in country Colombian partnership with Aurora - leveraging off Aurora’s extensive contacts to access opportunity pipeline • Aiming to acquire and build a production ba
Slide 17: For Further Information Please Contact
FOR FURTHER INFORMATION PLEASE CONTACT: Gary Fietz, Managing Director, New Age Exploration For personal use only Telephone: +61 3 9614 0600 Email: [email protected] 17
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