Stanmore Resources Ltd · ASX:SMR
Stanmore Resources — Stanmore Coal — Technical Presentation (November 2016)
18 slides from Stanmore Resources's technical presentation, Nov 23, 2016
Slide 1: Isaac Plains Coking Coal Mine Site Visit
ISAAC PLAINS Coking Coal Mine Site Visit 23 November 2016
Slide 2: Important Information
IMPORTANT INFORMATION This document has been prepared by Coal shares and has been prepared Indications of, and guidance on, future will not in any way rely upon this Stanmore Coal Limited (“Stanmore without taking into account the earnings and financial position and document. Coal”) for the purpose
Slide 3: Stanmore Coal Company Overview
STANMORE COAL COMPANY OVERVIEW The business at a glance: Independent coal company with focus on coking coal Isaac Plains operational with ramp-up achieved 1-2Mtpa sales opportunity (FY17 1.25Mt) December 2016 quarter SSCC settled at USD 130 per tonne Mining, port and rail contracts in place Mid-rang
Slide 4: Overview of Stanmore Assets
OVERVIEW OF STANMORE ASSETS BOWEN BASIN – Coking Coal ISAAC PLAINS – 100% MACKENZIE – 85% Operations Exploration ISAAC PLAINS EAST – SURAT BASIN – Thermal Coal 100% Development THE RANGE – 100% Development pending infrastructure path to market SURAT BASIN BELVIEW – 100% CLIFFORD – 60%* Exploration E
Slide 5: Development History: The History of Isaac Plains
DEVELOPMENT HISTORY THE HISTORY OF ISAAC PLAINS Located near Moranbah in the heart of the Bowen Basin, 172 km from Dalrymple Bay Coal Terminal (DBCT) via Goonyella rail line Commenced production in 2006 as a truck shovel operation 4.0Mtpa run of mine (ROM) production approvals currently in place Dra
Slide 6: Combined Isaac Plains Complex
COMBINED ISAAC PLAINS COMPLEX SIGNIFICANT SYNERGIES & MINE LIFE OPTIONS Opportunities to utilise Isaac Plains infrastructure including underutilised CHPP and rail loop CURRENT ISAAC PLAINS OPEN CUT Current 3 year mining services contract producing coal ISAAC PLAINS EAST – OPEN CUT EXTENSION Extends
Slide 7: Geology
GEOLOGY The Leichhardt seam (Rangal Coal Measures) averages 3.5m thick across the deposit. The seam splits into an upper and lower section in the far northern area Within the open-cut, depth of cover commences at 60m, dipping to the east (~5 degrees), before stepping back up over a 15- 20m upthrust
Slide 8: Site Operations: Contracting Structure
SITE OPERATIONS CONTRACTING STRUCTURE Stanmore Coal PRINCIPAL CONTRACT OVERVIEW Owner Head Contractor paid on a rolled-up rate basis a, which requires assumption of certain efficiency and operational risks Golding Waste rate ($/bcm) covering blasting Head Contractor and all overburden removal. Goldi
Slide 9: Open Cut Mining
OPEN CUT MINING AN OPTIMISED APPROACH Open cut coal mining Northern pits, N1 North (N1N) and N1 South (N1S) which are the main operating pits The mining flow is typically south to north until the economic coal from N1N and N1S is extracted, before mining out the identified graben zone toward the end
Slide 10: Dragline
DRAGLINE STANMORE OWNED DRAGLINE Dragline purchased in 2006. Relocated to site in 2008 and originally refurbished and recommissioned 2011 Contractor is responsible for planning and carrying out minor maintenance of the dragline. All maintenance activities are based on a plan developed jointly betwee
Slide 11: Coal Handling & Processing Plant
COAL HANDLING & PROCESSING PLANT STANMORE OWNED Designed nameplate feed capacity of 500tph “Dry” Rejects (i.e. no tailings dam) System uses: • A 2 Stage Dense Medium Cyclone • Jamieson Cell technology • Teetered Bed Separation CHPP MONTHLY PRODUCTION STATISTICS Overall CHPP performance and 100.0% 90
Slide 12: Sales & Marketing
SALES & MARKETING Produced around 75% semi-soft coking coal Indicative Parameter1 Isaac Plains and 25% thermal, with a total product yield of Coking Thermal 74% (project to date) Product split (%) 80% 20% Inherent Moisture (%) 2.5 3.1 FY17 year to date show an improvement in Ash (%) 9.4 14.0 coking
Slide 13: Isaac Plains East: Low Strip Ratio, Adjacent Resource
ISAAC PLAINS EAST LOW STRIP RATIO, ADJACENT RESOURCE Coking coal adjacent tenures – improved coking properties and coking fraction compared to existing Isaac Plains operation Low strip ratio coal starting <6:1, average over first 4 years sub 10:1 (lower than Isaac Plains) Environmental Authority ame
Slide 14: Isaac Plains East: De-risking the Project
ISAAC PLAINS EAST DE-RISKING THE PROJECT Significant number of holes drilled by former owners in the 1980’s Staged de-risking of the project by undertaking an initial exploration program in late 2015 Further drilling campaign commencing December 2016, providing closer points of observation for detai
Slide 15: Isaac Plains Underground: Project Overview
ISAAC PLAINS UNDERGROUND PROJECT OVERVIEW Concept mining studies indicated operation via bord & pillar operation most viable Further exploration activities are planned in 2017 to de- risk the project 15
Slide 16: Stronger Pricing Outlook
STRONGER PRICING OUTLOOK CONTINUED STRENGTH IN COKING COAL MARKET Contracted December quarter reflecting trend in spot market Historical coking coal prices 350 Hard coking coal USD200 (up 300 USD107.50 from Sep QTR) 250 Semi soft coking coal USD130 (up US$/tonne USD56 from Sep QTR) 200 Thermal coal
Slide 17: Strategic Objectives
STRATEGIC OBJECTIVES Time horizon Internal External Short Establish reliability and Assess potential assets in repeatability of production proximity to IP Complex from Isaac Plains Medium Develop Isaac Plains East Pursue realistically and complete assessment attainable assets with of Isaac Plains pr
Slide 18: JEQIBJOWUPYS
JEQIBJOWUPYS
Stanmore Coal — Technical Presentation (November 2016) on 6ix