Whitehaven Coal Limited · ASX:WHC
Whitehaven Coal — Coalworks — Investor Presentation (March 2009)
21 slides from Whitehaven Coal's investor presentation, March 2009
Slide 1: Coalworks Ltd Investor Presentation March 2009
COALWORKS LTD Investor Presentation March 2009 COALWORKS Limited
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: Coalworks Overview
COALWORKS OVERVIEW Australian energy company focused on coal • Major asset: • Oaklands, NSW Bowen • Other projects: Basin Surat Basin • Hodgson Vale Coal, Hunter Western Valley QLD Collieries • Ashford Lime, NSW 3 COALWORKS Limited
Slide 4: The Company
THE COMPANY • Large coal resources at Oaklands • Additional emerging coal projects in NSW & QLD • Plans for coal production and value adding • Experienced management team • Well funded • Rapid development program since ASX listing 4 COALWORKS Limited
Slide 5: Significant Events
SIGNIFICANT EVENTS • Oaklands development • Resource upgrade • Two upgrades • Rail study completed • Sampling via Clamshell • Offtake negotiations BFS to commence late April 5 COALWORKS Limited
Slide 6: Resource Upgrade
RESOURCE UPGRADE • March Update Indicated: 212 mt Inferred: 548 mt Total Resource: 760 mt • DPI approvals received to commence measured resource drilling program 6 COALWORKS Limited
Slide 7: Indicated & Inferred Resources
INDICATED & INFERRED RESOURCES Indicated Inferred Total Moisture Raw Volatile Fixed Total Calorific Calorific Seam Zone Resources Resources Moisture (ad%)3 Ash Matter Carbon Sulphur Value Value (Mt)1 (Mt)1 (ar%) 2 (ad%)3 (ad%)3 (ad%)3 (ad%)3 (kcal/kg, (MJ/kg, ad)3 ad)3 Coreen Creek4 North 12 28.6 17
Slide 8: Drilling Program
DRILLING PROGRAM Oaklands EL location map of drill holes 8 COALWORKS Limited
Slide 9: Oaklands Drilling
OAKLANDS DRILLING North South Cross Section of Coal Seam at Oaklands 9 COALWORKS Limited
Slide 10: Coal Technical Studies
COAL TECHNICAL STUDIES • Clamshell drilling nearing completion • Coal sample currently being extracted • ACIRL to test • Coal suitable for clean coal processing Essential mechanical, chemical and engineering information to be quantified 10 COALWORKS Limited
Slide 11: Clamshell Rig
CLAMSHELL RIG 11 COALWORKS Limited
Slide 12: Oaklands Development
OAKLANDS DEVELOPMENT Mine • Preliminary mine plans for the north and south developed • Coal resource mapping continuing • Water studies commenced • Environmental studies commenced • Final drill hole analysis pending to confirm quality model 12 COALWORKS Limited
Slide 13: Rail
RAIL • Rail study completed • Geelong least cost rail option • Requires port infrastructure • PKCT optimum rail / infrastructure option • Discussions continuing with service providers • Potential of MPT in Port Kembla • Freight possibilities • Discussions with existing providers • Discussions with l
Slide 14: Port
PORT • Discussions • PKCT progressing • PK Port Authority progressing • Geelong Port Authorities • PKCT needs to look at expansion • Split tonnage between PKCT and proposed multi-purpose terminal or Geelong • Cost of infrastructure in MPT to be financed 14 COALWORKS Limited
Slide 15: Asian Market Update
ASIAN MARKET UPDATE • India is focus for sub-bituminous producers • Market looking for resource security through long term agreements of 25 years or longer • Energy supply seen as national security issue • Desire to have more stable long term pricing than spot • Major shift in Indonesian Gov’t energ
Slide 16: Coal Pricing
COAL PRICING • Market price has bottomed • Oaklands coal • Ash at 14% OK • Up to US$10 per tonne premium for sulphur <0.3% • Discount for lower calorific value • CWK financial model remains robust on present coal prices • Add premium for low sovereign risk • Indonesian exports may be restricted 16 C
Slide 17: Clean Coal Processing
CLEAN COAL PROCESSING • Udhe Shedden • World experts in coal processing • Access to world’s best gasification & CTL technology • Clean coal starts with gasification as it allows capture of CO2 • Gasification is a proven technology with a number of plants operating successfully • Oaklands coal is ide
Slide 18: Clean Coal Processing
CLEAN COAL PROCESSING 18 COALWORKS Limited
Slide 19: Capital Structure
CAPITAL STRUCTURE • Shares on issue ~ 103M • Cash on hand (31stDec08) ~ $ 21.6M • Cash burn currently ~ A$0.5M/mth Management Private Investors 14% 39% Brokers & Miscell Institutions 6% 41% Management Institutions Brokers & Miscell Private Investors 1 COALWORKS Limited
Slide 20: Summary
SUMMARY • Oaklands on track for BFS • Still have sufficient cash to fund BFS and operations • Still on program for late 2012 shipments • Very positive response in market • At least 1 option for each activity in logistics chain • Opportunity to JV/strategic alliance at all levels of business to share
Slide 21: Questions & Contacts
QUESTIONS & CONTACTS Andrew Firek Chief Executive Officer Graham Coall Chief Operating Officer Wayne Mitchell Chairman Tony Teng Company Secretary / Director Chris Hagan Senior Consultant ************************************************************** COALWORKS LTD LEVEL 5, 44 MILLER STREET NTH SYDNE