Southgobi Resources Ltd. · TSXV:SGQ
Southgobi Resources — Investor Presentation (September 2019)
22 slides from Southgobi Resources's investor presentation, September 2019
Slide 1: Corporate Presentation
CORPORATE PRESENTATION September 2019
Slide 2: Disclaimer
DISCLAIMER The information contained in this document is strictly confidential, is not for public dissemination and is for the exclusive use of the persons who are authorized to receive this document. You are authorized to use the information contained herein solely for the purpose of considering wh
Slide 3: SouthGobi at a Glance
SOUTHGOBI AT A GLANCE SouthGobi Resources Ltd. (“SouthGobi”) is A dual-listed company, primary listed on the Toronto Stock Exchange and secondary listed on the Hong Kong Stock Exchange TSX: SGQ HKEX: 1878 An integrated coal mining enterprise, owns and operates a flagship coal mine in Mongolia an
Slide 4: Corporate Overview
CORPORATE OVERVIEW Shareholding Structure China Investment Corporation Others 23.75% 59.25% China Cinda Asset Management Co. Ltd 17.00% www.southgobi.com 4
Slide 5: Competitive Location
COMPETITIVE LOCATION SouthGobi has the closest coal mine to the world largest coal consumer, China; and is located 45 km from the China-Mongolia 45km to border. China There are two railways for transportation of coal at Ceke Port, a 440 km designated railway from Ceke to Gansu Province with the annu
Slide 6: Infrastructure and Operations
INFRASTRUCTURE AND OPERATIONS Coal Production Coal Washing Paved highway Workforce of 447 to the border of employees as of China Q2 2019 www.southgobi.com 6
Slide 7: Ovoot Tolgoi Coal Mine
OVOOT TOLGOI COAL MINE The Ovoot Tolgoi Coal Mine comprises of the Sunset Coalfield in the West and the Sunrise Mining license Coalfield in the East. Products from the Ovoot Tolgoi Mine include coals with coking (or metallurgical) properties, primarily a raw semi-soft coking coal together with raw m
Slide 8: Abundant Reserves & Resources
ABUNDANT RESERVES & RESOURCES SouthGobi has a total 496 million tonnes of coal resources under the NI43-101 resource reporting standard. The Ovoot Tolgoi Mine contains 391 million tonnes of resources, in which 114 million tonnes are reserves. Resources Summary Mining License Summary Million tonnes M
Slide 9: World-Class Equipment
WORLD-CLASS EQUIPMENT Machines & Specification Quantity Total Liebherr Excavator - R996（36m3） 1 Liebherr Excavator - R996B（33m3） 1 8 Liebherr Excavator - R9250（15m ） 3 3 Liebherr Excavator - R974（5.2-8.25m3） 2 Other Excavator 1 Terex Dump Truck - TR100（91t） 9 27 Terex Dump Truck - MT4400（240t） 18 At
Slide 10: Coal Washing Plant
COAL WASHING PLANT SouthGobi owns a captive coal washing plant at Ovoot Tolgoi mine site, with annual processing capacity of approximately 2 million tonnes. www.southgobi.com 10
Slide 11: SouthGobi Value Creation Catalysts
SOUTHGOBI VALUE CREATION CATALYSTS Increasing production volume QUALITY AND VOLUME QUALITY Boosting product quality by washing COST CONTROL GROWTH PRODUCTS Expanding customer base in China TALENTED CUSTOMER BASE WORKFORCE EXPANSION Improving cash flow and reducing debt STRONG FINANCIAL MANAGEMENT Ta
Slide 12: Our Experienced Board of Directors
OUR EXPERIENCED BOARD OF DIRECTORS MR. SUN MAO MR. WANG SHOUGAO MR. YAO WEN MR. CHEN ZHIWEI Lead Director & Executive Director & Non-executive Non-executive Independent Non- Chief Executive Officer Director Director executive Director Over 20+ years’ experience in the accounting Over 30+ years’
Slide 13: Our Experienced Management Team
OUR EXPERIENCED MANAGEMENT TEAM MR. WANG SHOUGAO MR. ZHANG WEIGUO MR. GUO AIMING MR. ZHANG TAO Executive Director & Chief Financial Officer Chief Operating Officer Vice President Chief Executive Officer Over 30+ years’ experience in the mining Over 30+ years’ experience in financial Over 20+ y
Slide 14: Corporate Culture
CORPORATE CULTURE WORK WITH CONSCIENTIOUS FOSTER MUTUAL TRUST AND BE DUTIFUL AND PROMOTE COOPERATION TAKE RESPONSIBILITY FACILITATE MUTUAL RESPECT AND UPHOLD HARMONIOUS AND DEVELOP MUTUAL BENEFICIAL DEVELOPMENT COOPERATION BE TRUSTWORTHY AND COMPLIANCE WITH THE REGULATIONS www.southgobi.com 14
Slide 15: Rewards & Recognitions in Mongolia and Inner Mongolia
REWARDS & RECOGNITIONS IN MONGOLIA AND INNER MONGOLIA Best Social Responsibility Best Social Responsibility Enterprise of 2017 – Top National Employer- Enterprise of 2016 – Silk Road Award Best Social Social Insurance Payer Silk Road Award Outstanding Operations Award in Insurance Payer
Slide 16: Leadership Role in Environmental Protection
LEADERSHIP ROLE IN ENVIRONMENTAL PROTECTION SouthGobi has adopted a Biodiversity Offset Scheme, focusing on mitigation of potential environmental impacts in the desert-steppe zone within the Company’s operational area. The Biodiversity Offset Scheme includes: Environmental monitoring program Reh
Slide 17: Occupational, Health and Safety - Highlights
OCCUPATIONAL, HEALTH AND SAFETY - HIGHLIGHTS The health and safety of the Company’s employees is the top priority. SouthGobi commits to create safe and healthy workplaces and will continue to promote an effective safety culture throughout the corporation. Award-winning in Integrity and Health and sa
Slide 18: Community Development - Highlights
COMMUNITY DEVELOPMENT - HIGHLIGHTS SouthGobi remains committed to contributing in the development of communities including: Public welfare donations National and local communities’ development Collaboration with our stakeholders, Career opportunities and skills trainings to the citizens from
Slide 19: Employee Engagement and Growth
EMPLOYEE ENGAGEMENT AND GROWTH Hold regular Adopt diversity and Maximize all Enhance employee Enhance employees’ professional skills equal opportunity employees’ expertise engagement productivity training policy and abilities www.southgobi.com 19
Slide 20: Improving Operations & Financials
IMPROVING OPERATIONS & FINANCIALS Revenue Coal Production (in USD$ million) (in million tonnes) 69.3 2.4 43.7 1.4 H1 2018 H1 2019 H1 2018 H1 2019 Operating Cash Flow (in USD$ million) Washed Coal Sales in H1 2019 was 0.18 million tonnes 18.9 13.2 (around 7.5% of overall coal production) H1 2018 H1 2
Slide 21: Expanding Opportunities
EXPANDING OPPORTUNITIES In H1 2019 In H2 2019 2020 & Beyond Sustainable production Expansion of its resource opportunities in Mongolia and Inner Mongolia, China The total coal SouthGobi’s coal SouthGobi accounted SouthGobi remains as a Improvement in financial position imports in Ceke Port sal
Slide 22: SouthGobi Resources Ltd.
SouthGobi Resources Ltd. Canada Office: 20th Floor, 250 Howe Street, Vancouver, B.C., V6C 3R8 Hong Kong Office: Unit 1208-10, Tower 1, Grand Century Place,193 Prince Edward Road West, Mongkok, Hong Kong Tel: +852-2156-1438 Fax: +852-2156-1439 Email: info@southgobi.com www.southgobi.com 22
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