Whitehaven Coal Limited · ASX:WHC
Whitehaven Coal — H1 FY2009 Earnings Presentation
25 slides from Whitehaven Coal's earnings presentation, February 2009
Slide 1: Delivering Growth: First Half FY 2009 Results
Whitehaven Coal Limited Delivering Growth First Half FY 2009 Results February 2009
Slide 2: Disclaimer
Disclaimer Statements contained in this material, particularly those regarding the possible or assumed future performance, costs, dividends, returns, production levels or rates, prices, reserves, potential growth of Whitehaven Coal Limited, industry growth or other trend projections and any estimate
Slide 3: Qualifications and Statement
Qualifications and Statement The information in this report that relates to Coal Reserves of the Narrabri Project is based on information compiled by Mr Graeme Rigg, who is a Member of the Australasian Institute of Mining & Metallurgy. Mr Rigg is a qualified mining engineer and has sufficient experi
Slide 4: Contents
Contents • Highlights • Financial and financial results • Status of growth plans • Outlook • The merger with Gloucester Coal 2009 First Half Results 3
Slide 5: First half highlights
First half highlights ► Net profit after tax (NPAT) of $201.5 million, including NPAT of $181.5 million from the sale of 15% of the Narrabri Joint Venture and other significant items ► NPAT from continuing operations of $20.0 million compared to -$0.4 million last year ► EBITDA of $90.2 million (exc
Slide 6: First half profitability
First half profitability A$ millions FY 2008 FY 2009 Sales tonnes – 000t (equity basis, excluding purchased coal) 910 1,012 Revenue – (excluding purchased coal and net of NSW royalty) 66.3 156.8 Average coal price – A$/t (excluding purchased coal and net of NSW royalty) 72.83 154.95 Operating expens
Slide 7: First half cash flow
First half cash flow A$ millions FY 2008 FY 2009 Cash generated from operations 2.0 31.5 Interest and tax payments (3.7) (8.7) Net cash provided by/(used) in operating activities (1.7) 22.7 Proceeds from sale of assets 3.0 41.7 Capital investment (52.1) (76.2) Other investing activities (6.3) (6.9)
Slide 8: Capex and FX summary
Capex and FX summary Capital Investment - $ million First Half FY 2008 Rocglen Mine 21.6 Sunnyside Mine 4.2 Other Gunnedah Operations (Tarrawonga/Canyon/CHPP) 4.8 Werris Creek 0.9 Narrabri Stage 1 36.5 Land 4.0 Other 4.2 Total 76.2 FX Contract Status 31 December 2008 Total FX contract value – US$ mi
Slide 9: 31 December financial position
31 December financial position A$ millions 30 June 2008 31 December 2008 Cash 80.8 76.6 Current receivables 49.0 172.4 Other current assets 59.2 53.1 Non-current receivables 27.2 157.0 Other non-current assets 407.1 462.7 Total assets 623.3 921.8 Payables 37.9 40.2 Tax payable 10.1 85.9 Interest bea
Slide 10: Coal sales
Coal sales Equity basis (Mt) H1 FY 2008 H1 FY 2009 Change Gunnedah Operations 982 1,160 +18% Werris Creek 240 425 +77% Whitehaven Total 1,222 1,585 +30% 100% basis (Mt) H1 FY 2008 H1 FY 2009 Change Gunnedah Operations 1,141 1,400 +23% Werris Creek 551 425 -23% Whitehaven Total 1,692 1,825 +8% 2009 F
Slide 11: Saleable coal production
Saleable coal production Equity basis (Mt) H1 FY 2008 H1 FY 2009 Change Gunnedah Operations 637 685 +8% Werris Creek 266 466 +75% Whitehaven Total 903 1,151 +27% 100% basis (Mt) H1 FY 2008 H1 FY 2009 Change Gunnedah Operations 800 949 +19% Werris Creek 593 466 -21% Whitehaven Total 1,393 1,415 +2% 2
Slide 12: Contents
Contents • Highlights • Financial and operating results • Status of growth plans • Outlook • The merger with Gloucester Coal 2009 First Half Results 11
Slide 13: Whitehaven is the leading coal producer and developer in the Gunnedah Basin
Whitehaven is the leading coal producer and developer in the Gunnedah Basin 2009 First Half Results 12
Slide 14: Projects are on track and being coordinated with infrastructure development
Projects are on track and being coordinated with infrastructure development 2009 First Half Results 13
Slide 15: Gunnedah operations - Tarrawonga mine
Gunnedah operations - Tarrawonga mine ► 1.5 Mtpa ROM capacity ► PCI & high quality thermal coals ► Saleable yield >90% ► ROM coal trucked to Gunnedah CHPP ► WHC owns 70% of JV 2009 First Half Results 14
Slide 16: Gunnedah operations - Rocglen mine
Gunnedah operations - Rocglen mine ► 1.5 Mtpa ROM capacity ► PCI and thermal coals ► Saleable yield ~85% ► ROM coal trucked to Gunnedah CHPP 2009 First Half Results 15
Slide 17: Gunnedah operations - Sunnyside mine
Gunnedah operations - Sunnyside mine ► Commenced December 2008 ► 1.0 Mtpa ROM capacity ► Thermal coals ► ROM coal trucked to Gunnedah CHPP 2009 First Half Results 16
Slide 18: Gunnedah operations – CHPP and rail loader
Gunnedah operations – CHPP and rail loader ► ~50% ROM coal washed ► Washed yield >80% ► Total yield >90% ► CPP upgrade to 3 Mtpa ► 24-7 rail loading 2009 First Half Results 17
Slide 19: Werris Creek mine
Werris Creek mine ► 1.5 Mtpa capacity ► PCI and thermal coals ► Saleable yield 100% ► Own crushing and rail load-out 2009 First Half Results 18
Slide 20: Narrabri Stage 1 construction on track
Narrabri Stage 1 construction on track Highway Upgrade Access Road Water Management Rail Loop 3.6 km Industrial Area Box Cut 2009 First Half Results 19
Slide 21: Narrabri marketable reserves now 171.9 Mt
WHITEHAVEN Note ². The JORC marketable reserves are based onCOAL LIMITED geological – NARRABRI modelling JORC of the anticipated yieldCOAL RESERVES from recoverable - Million tonnes reserves. Narrabri South marketable reserves now 69.2 Mt Total Narrabri marketable reserves now 171.9 Mt NARRABRI JORC
Slide 22: Contents
Contents • Highlights • Financial and operating results • Status of growth plans • Outlook • The merger with Gloucester Coal 2009 First Half Results 21
Slide 23: Coal market uncertainty
Coal market uncertainty Demand – Cyclical slowdown, but structural uptrend • Global demand for export coking coal is very weak. Thermal coal is better, but weaker than six months ago Supply – Infrastructure constraints, higher costs, mine development slower & more difficult • Port and rail inadequac
Slide 24: Looking ahead
Looking ahead ► Challenging business environment ► Weaker coal demand, lower US$ coal prices, but a weaker A$ ► Continued port and rail congestion ► Increased “take” by NSW Government from higher royalty rates (+20%) ► Whitehaven is well positioned ► Large reserves of high quality coal ► Efficient m
Slide 25: Merger with Gloucester Coal
Merger with Gloucester Coal ► Merger will create a bigger, stronger coal company with substantial benefits for all shareholders of both companies ► Complementary coal quality, operations, infrastructure and cash flows ► Significant value can be added by blending Whitehaven and Gloucester coals ► Com