Whitehaven Coal Limited · ASX:WHC
Whitehaven Coal — Coalworks — Investor Presentation (May 2010)
31 slides from Whitehaven Coal's investor presentation, May 2010
Slide 1: Driving Into A New Coal Era
Driving Into A New Coal Era PRESENTATION May 2010 1
Slide 2: Disclaimer
DISCLAIMER The information in this presentation does not purport to contain all the information that may be required to evaluate the prospects of Coalworks and in particular only discloses material information within the knowledge of Coalworks. You should seek independent professional advice in rela
Slide 3: Executive Summary
EXECUTIVE SUMMARY Core business: Thermal and Coking Coal Listed in June 2008 Cash $10M as at Jan 2010 Shares on Issue ~103.8M Current Share Price ~$0.40 Market Cap ~$42M Resources: Vickery South – 42 Mte JORC Inferred Semi-soft Coking Coal, PCI and Thermal Coal. Ferndale – 250 to 300 Mte Exploration
Slide 4: Project Stage
PROJECT STAGE Project Stage: Oaklands North coal – BFS underway Vickery South coal – PFS underway Ferndale coal – PFS to commence Q3 2010 Hodgson Vale coal – Further drilling planned Ashford Lime – Further drilling planned 4
Slide 5: Quality Projects, World Class Provinces
RESOURCES & TARGETS • QUALITY PROJECTS • WORLD CLASS PROVINCES • POTENTIAL FOR LARGE PRODUCTION • SEMI-‐SOFT COKING, PCI & THERMAL POTENTIAL 5
Slide 6: World Class Coal Provinces
WORLD CLASS COAL PROVINCES COALWORKS PROJECT NEAREST MAJOR EXISTING OR DEVELOPING COAL MINE VICKERY SOUTH (100% reducing to 51%) VICKERY (WHITEHAVEN – EX RIO TINTO) -‐ JV farm in with ITOCHU signed TARRAWONGA (WHITEHAVEN) ROCGLEN (WHITEHAVEN) CANYON(WHITEHAVEN) WATERMARK (SHENHUA) ASTON (EX RIO TIN
Slide 7: Coking & Thermal Coal Markets Rising
COKING & THERMAL COAL MARKETS RISING • Coal is main electricity fuel for China, India, USA & others • Underinvestment in coal indicates long term growth and market rebound • Coal is low cost and reliable • ABARE predicts conanued strong demand from China to increase world coking coal trade by 8% to
Slide 8: Strong Management
STRONG MANAGEMENT Wayne Mitchell AASA, AAIM (Appointed Chairman November 2007) Mr Mitchell is a qualified accountant with over 20 years extensive senior management experience in the natural resource sector, both in Australia and in South East Asia. Mr Mitchell and two partners were the initial promo
Slide 9: Strong Management
STRONG MANAGEMENT Chris Hagan – Senior Consultant BA, LLB, Acc.Spec. (Bus) Mr Hagan has over 25 years’ experience advising publicly-listed and private companies on legal and corporate affairs, including large scale capital raising strategies, IPOs and restructures. His career include co- founding an
Slide 10: Strong Management
STRONG MANAGEMENT Matt Morgan - Exploration Manager BSc (Geology) Mr Morgan has 15 years experience in coal, gold, antimony, and iron ore mining & exploration, both Open Cut and Underground. He has a diverse set of skills covering mine geology, quality control and mining engineering, and mine manage
Slide 11: Corporate Milestones Achieved
CORPORATE MILESTONES ACHIEVED 2008: • Listed in June 2008 – Oaklands – 280 Mt • Mine Concept Study – Connell Hatch • Rail Study – Connell Hatch • Pre Feasibility Coal Gasificaaon & Liquid Fuels Study –Uhde Shedden • 8m coal seams intersected at Hodgson Vale drilling • Oaklands resource increased to 6
Slide 12: Vickery South Coal Project
VICKERY SOUTH COAL PROJECT • Vickery South EL in coal-rich Gunnedah Basin, NSW • JV farm in with ITOCHU signed • Thermal, PCI & SS coking coal identified • Production target 2Mtpa ROM • Proximity operating mines • Railway to Newcastle • 42 Mte inferred resource • Open Pit Mine is being designed • Ne
Slide 13: Vickery South Coal Project
VICKERY SOUTH COAL PROJECT 13
Slide 14: Vickery South: Project Comparisons
VICKERY SOUTH : PROJECT COMPARISONS • Vickery South has a mix of Thermal, PCI and semi-‐soo coking coal similar to exisang mines in the Gunnedah Basin • Gunnedah Projects comparison: • Maules Creek (398Mt coal-‐sold $A480m) ~ A$1.20/t [Source: The Aust. 5.11.2009] • Narrabri (400Mt -‐7.5% -‐sold
Slide 15: Vickery South Development Timetable
VICKERY SOUTH DEVELOPMENT TIMETABLE ACTIVITY 2009 2010 2011 2012 2013 Vickery South EL Granted Initial drilling & JORC Inferred Resource Indicated Resource Measured Resource Scoping / prefeasibility study Sample testing EA base data Mine Plan Environmental assessment Final feasibility (Bankable) Min
Slide 16: Ferndale Coal Project
<. ~ FERNDALE COAL PROJECT Gunnedah Coalfield Hunter Coalfield Newcastle a Fite’ Newcastle Eoalfield 16 & COALWORKS Limited
Slide 17: Ferndale Coal Project
FERNDALE COAL PROJECT • Ferndale EL in Prime Hunter Valley coal province, NSW • Thermal and coking coal resource • Production target 2 – 5 Mtpa • Proximity to a blue chip operating coal mines • Railway to Newcastle • Target: 250 - 300 Mte • Predominantly underground • Newcastle ports expanding capac
Slide 18: Ferndale: Project Comparisons
FERNDALE: PROJECT COMPARISONS • Ferndale has similar thermal and coking coal seams to exisang mines in the Hunter Valley • Hunter Valley Projects comparison: • Mangoola( >1,000Mt coal-‐ sold $468m) ~ A$0.46/t [Source: Xstrata plc Annual Rpt 2007] • Newpac (252Mt –sold A$960m) : ~A$3.80/t [Source: X
Slide 19: Ferndale Development Timetable
FERNDALE DEVELOPMENT TIMETABLE ACTIVITY 2010 2011 2012 2013 2014 2015 2016 Ferndale EL Granted Initial drilling & JORC Inferred Resource Indicated Resource Measured Resource Scoping / prefeasibility study Sample testing EA base data Mine Plan Environmental assessment Final feasibility (Bankable) Min
Slide 20: Oaklands North Coal Resource
OAKLANDS NORTH COAL RESOURCE Oaklands North’s resource has almost TRIPLED since June 2008 Present Oaklands North Resource Measured: 121Mte Indicated: 572 Mte Inferred: 129 Mte Total Resource: 822 Mte • Measured resource drilling program completed in Northern portion • Southern Measured resource pend
Slide 21: Oaklands North Conventional Coal Mine
OAKLANDS NORTH CONVENTIONAL COAL MINE • Preliminary Mine & CTL Study almost complete & Bankable Feasibility Study (BFS) process commenced • Preliminary mine plans for the north and south developed • Landowner Relations – Strategic partnerships formed with key landowners • Community Relations – Regul
Slide 22: Oaklands North: Project Comparisons
OAKLANDS NORTH: PROJECT COMPARISONS • Oaklands as 822 Mte open pit sub-‐bituminous resource compares to Indonesian coal projects • Indonesian Projects comparison: • GPK Coal (247Mt Sub B coal) : A$0.80c/t [Source: Stonebridge Group-‐Analyst -‐2009] • PT Indobara Pratama (50-‐60Mt Sub B) : A$1.10
Slide 23: Oaklands North – CTL Project
OAKLANDS NORTH – CTL PROJECT • Pre feasibility study with Uhde Shedden for Coal to Liquids (CTL) was completed in 2008 • Synthesis Energy Strategic alliance signed in Dec 2009 to develop CTL • CTL Feasibility Study with Synthesis is underway – Oaklands coal tested at GTI found to be ideal for gasifi
Slide 24: Oaklands North Coal Mine and CTL Plant Site Layout
OAKLANDS NORTH COAL MINE AND CTL PLANT SITE LAYOUT 24
Slide 25: Oaklands Development Timetable
OAKLANDS DEVELOPMENT TIMETABLE ACTIVITY 2007 2008 2009 2010 2011 2012 2013 2014 2015 Oaklands El Granted Initial drilling & JORC Inferred Resource Indicated Resource Measured Resource Scoping / prefeasibility study Sample testing EA base data Mine Plan Environmental assessment Final feasibility (Ban
Slide 26: Hodgson Vale Drilling
HODGSON VALE DRILLING Initial Drilling intersected up to 8m coal in two holes Resource targets reviewed 2 main zones targeted for future drilling Licence renewed 26
Slide 27: Ashford Lime
ASHFORD LIME Drilling program completed Grades indicate suitability for selected Ground Calcium Carbonate (GCC) products Further drilling targeted to optimize grades GCC off-take agreements targeted 27
Slide 28: Summary: Coalworks Positioned for Growth
SUMMARY COALWORKS POSITIONED FOR GROWTH – Strong Management team – Focused on the development of the Vickery South, Ferndale and Oaklands North Projects – Focused on coal production and early revenue generation – Recent Corporate Activity has highlighted the prospectivity of the CWK leases – JV farm
Slide 29: Enquiry and Contacts
ENQUIRY AND CONTACTS Andrew Firek Chief Execuave Officer Wayne Mitchell Chairman Tony Teng Company Secretary / Director Geoff Kidd Operaaons Manager Chris Hagan Senior Consultant _____________________________________________________________________________________________ COALWORKS LTD LEVEL 5, 44 MILL
Slide 30: Appendix 1: Oaklands North Measured, Indicated & Inferred Resources
APPENDIX 1: OAKLANDS NORTH MEASURED, INDICATED & INFERRED RESOURCES Resource Seam Mass Average Raw Fixed Total Volatile Gross Total Thickness status (Tonnes) Ash 2 Carbon2 Sulphur2 Matter 2 Calorific Moisture3 (m) Value2 (Kcal/ (%) (%) (%) (%) kg) (% ar) Lanes Measured Shaft 121 Mt 16.7 14.2 44.9 0.
Slide 31: Appendix 2: U-Gas Plant in Commercial Operation
APPENDIX 2: U-GAS PLANT IN COMMERCIAL OPERATION – PROPOSED FOR OAKLANDS NORTH