Bowen Coking Coal Ltd · ASX:BCB
Bowen Coking Coal — Investor Presentation (October 2024)
63 slides from Bowen Coking Coal's investor presentation, Oct 7, 2024
Slide 1: Equity Capital Raising
Equity Capital Raising 7 October 2024 Answering the call for high-quality steelmaking coal ASX BCB
Slide 2: Important Information and Disclaimer
Important Information and Disclaimer About Bowen Coking Coal (‘BCB’) Forward-Looking Statements • Bowen Coking Coal has established a strategic position in Queensland’s Bowen Basin. The Company’s Burton Mine Complex • Certain statements made in this document contain or comprise forward-looking state
Slide 3: Important Information and Disclaimer
Important Information and Disclaimer Listing Rule 5.23 and 5.19.2 Statements • This presentation incorporates material concerning production targets and associated forecast financial information derived from production targets in BCB's ASX announcement dated 4 August 2021 headed “Transformational Ac
Slide 4: Important Information and Disclaimer
Important Information and Disclaimer Disclaimer This Prospectus does not constitute an offer to sell, or a solicitation of an offer to buy, securities in the United States. The New Shares have not been, and will not be, registered under the US Securities Act of 1933 or the securities laws of any sta
Slide 5: Business Overview
Business Overview Answering the call for high-quality steelmaking coal ASX BCB 5
Slide 6: Executive Summary
Executive Summary 01 02 03 04 Record production in Q4 Lower strip ratio at the Cost pressures and cost Reprofiled financing FY24 at the Burton Complex Burton Complex reduction initiatives arrangements • Improving production performance at the Burton • Strip ratio at the Burton Complex saw an improve
Slide 7: Burton Mine Complex
Lenton deposit Burton Mine Complex Lenton JV Unmined pit Bowen 90% | JORC Resource 140Mt* Moranbah Formosa Plastics 10%. Isaac deposit Ellensfield South – producing Unmined pit mine JORC Resource 4Mt* Broadmeadow East - The Burton Mine Complex has production presently on pause, Burton North deposit
Slide 8: Driving sustained value from the Burton Mine Complex
Driving sustained value from the Burton Mine Complex Key production targets – medium term Burton# / Lenton BME Total Life of Mine 8 – 12 years 1 – 2 years ~13 years6 Resources 248Mt1* 30Mt2* 278Mt3* Reserves 33Mt5* 1.5Mt2* 35Mt3* Production (ROM) 2.8 – 4.4Mtpa 0.8 – 1.2Mtpa4 2.8 – 5.5Mtpa Saleable c
Slide 9: Capitalisation and equity raising
Capitalisation and equity raising Answering the call for high-quality steelmaking coal ASX BCB 9
Slide 10: Financing update
Financing update Restructured debt terms estimated savings ~$34 million to June 2027 Heads of Agreement reached on revised debt terms* Debt financing facilities maturity profile (A$)1 • Bowen has executed Heads of Agreement with its senior and subordinated lenders (“Debt Financiers”), Taurus Mining
Slide 11: Financing update continued
Financing update continued Debt facilities Senior Loan Facility* Subordinated Loan Facility* • Following the completion of sale of 10% of Broadmeadow East • Margin reduction achieved to 4.00% p.a. until March 2025, with A$m June 2024 September 2024 project, Bowen used a portion of the sale proceeds
Slide 12: Equity Raising
Equity Raising 1 The Theoretical Ex-Rights Price (‘TERP’) is the theoretical price at which BCB shares should trade immediately after the ex- date of the Entitlement Offer. TERP is a theoretical calculation only and the actual price at which BCB shares will trade on the ASX immediately after the ex-
Slide 13: Exclusive marketing rights agreed with Square Marketing
Exclusive marketing rights agreed with Square Marketing Overview Fees • Bowen has entered into a binding agreement to appoint Square as its exclusive inhouse sales and • Marketing fees to be charged by Square are arms-length, market comparable, fees marketing manager for a seven-year period • There
Slide 14: Performance
Performance Answering the call for high-quality steelmaking coal ASX BCB 14
Slide 15: FY2024 – Production Results
FY2024 – Production Results For the year ended 30 June 2024 Group Burton Complex ROM Coal Mined FY2024 ROM Coal Mined FY2024 2.86Mt 73% Change from prior year 2.52Mt 114% Change from prior year Saleable Coal Produced FY2024 Saleable Coal Produced FY2024 1.94Mt 99% 1.62Mt 150% Change from prior year
Slide 16: Burton Complex
Burton Complex Operating and financial performance • Positive production performance for June quarter, with record ROM mined, low stripping ratio and 60% of coking coal sales mix - signalling turning point in Quarterly EBITDA and FOB Cost Performance operations EBITDA (Equity Share) A$M FOB Cost A$/
Slide 17: Burton Complex Quarterly
Burton Complex Quarterly ROM volumes (Kt), strip ratio (BCM/t), saleable coal production (Kt) coking and thermal product split Actuals Forecast 900 15.1 800 12.1 700 11.0 600 500 6.7 6.4 400 59% 40% 300 43% 40% 59% 71% 40% 40% 200 43% 71% 60% 100 57% 60% 41% 29% 60% 0 41% 29% 57% FY24 Q1 FY24 Q2 FY2
Slide 18: Cost reduction initiatives
Cost reduction initiatives Status of the progress made in reducing cost of operations Opportunity Status Annual saving per annum Saving per tonne Standard haul trucks complete $6m $3-$4 Direct ROM haulage underway $4m $2-$3 Rejects crusher commissioning FY2025 Q1 $4.5m $2-$3 Automated bin loading pr
Slide 19: Shipping
Shipping Significant progress has been made Shipping Cadence in the quarter after only one vessel shipped in July 2024, with three 100000 vessels being shipped in August 90000 2024 and five cargoes sailed in 80000 September 2024 70000 • Total cargoes sold for the quarter was nine 60000 • October 202
Slide 20: Outlook
Outlook Answering the call for high-quality steelmaking coal ASX BCB 20
Slide 21: FY25 Plan and Production Overview
FY25 Plan and Production Overview Volume increase and unit cost reduction FY25 Plan from ongoing operations1 Commentary • BCB has planned for a long-term Burton Complex FOB cost^ of A$145/t - $155/t Item Unit FY25 Plan FY24 Actual (ex royalties) from FY26 reflecting the transition to steady state op
Slide 22: Production performance
Production performance FY2024 actuals and FY2025 outlook ROM production volumes and ROM strip ratio (100%, Kt) Actuals Outlook 1,000 16.7x 900 800 700 11.0x 11.0x 600 500 6.7x 7.0x 6.4x 6.4x 6.6x 400 300 3.8x 3.6x 200 2.4x 100 - FY24 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY25 Q1 FY25 Q2 FY25 Q3 FY25 Q4 Bluff B
Slide 23: FOB Cash Cost per Sales Tonne (ex Royalty)
FOB Cash Cost per Sales Tonne (ex Royalty) 1 FY25 Plan excludes Bluff and Broadmeadow East mines that have transitioned into care and maintenance and corporate overheads FY2024 actuals and FY2025 outlook 2 Unit costs (FOB) are in real terms and exclude State royalties Actuals Outlook 250 218 200 188
Slide 24: Burton Complex 5-year Mine Plan
Burton Complex 5-year Mine Plan ROM production volumes and ROM strip ratio (100%, Kt) 3,500 3,000 6.6x 7.1x 6.8x 2,500 5.8x 5.2x 2,000 1,500 1,000 500 - FY2025 FY2026 FY2027 FY2028 FY2029 Ellensfield Plumtree Strip Ratio Answering the call for high-quality steelmaking coal ASX BCB 24
Slide 25: Burton Complex 5-year Production Plan
Burton Complex 5-year Production Plan 1 Refer ASX release 4 August 2021, expansion case subject to investment decision, detailed mine plans, capital estimates, board and regulatory approvals (EPBC required for Lenton) Optionality to increase volumes 2 Refer ASX release 1 November 2023 for informatio
Slide 26: Operating overview
Operating overview Answering the call for high-quality steelmaking coal ASX BCB 26
Slide 27: Burton Mine Complex
Burton Mine Complex Ellensfield South Mine Remaining strip ratio* (BCM/t) Remaining coal Reserves*# 3.1:1 2.1Mt ROM coal mined YTD FY2025 Q1* Coal sales YTD FY2025 Q1* 575Kt 200Kt • Production from the mining complex has been strong in the quarter to date, reporting 15% above targeted ROM production
Slide 28: Plumtree North Mine
Burton Mine Complex Plumtree North Mine JORC Reserve*# Annual ROM production target* 11Mt 2.0 – 2.4Mt Life of mine1 First coal expected ~5 years FY2025 Q3 • Started clear and grub in advance of future mining activities • Topsoil removal has commenced in the current quarter • Waste removal by a free
Slide 29: Coal Handling & Prep Plant
Coal Handling & Prep Plant . 5.5Mt Nameplate Capacity* CHPP Availability YTD FY2025 Q1 # CHPP Utilisation YTD FY2025 Q1# 95% 94% • CHPP availability is above the 90% target while ROM feed tempo is consistent with Module 1 capacity at ~400t/hr • Current washing plan is focussed on producing as much c
Slide 30: Marketing
Marketing Europe Bowen has secured contracts for Burton hard coking coal with major Tier 1 steelmakers in Japan, Korea, China and Europe through 2024 and first quarter of CY2025. Japan Korea China Answering the call for high-quality steelmaking coal ASX BCB 30
Slide 31: Positive coal metrics
Positive coal metrics Global pricing highs through FY22 / FY23 Pricing ($US/tonne, nominal)1 600 500 400 300 200 100 - Newcastle Thermal Coal Premium Hard Coking Coal Australia FOB 1 Sources: S&P Capital IQ / CRB Answering the call for high-quality steelmaking coal ASX BCB 31
Slide 32: Met coal is essential for steel making
Met coal is essential for steel making Structural shortfall expected, Australia and specifically the reaching 74Mt per year in 20404 Bowen Basin dominates seaborne trade Growing demand: • Australia is a market leader in the global seaborne trade of metallurgical coal, comprising c.42% of global expo
Slide 33: Key risks
Key risks Answering the call for high-quality steelmaking coal ASX BCB 33
Slide 34: Risks
Risks You should be aware that an investment in BCB involves various risks. This section sets out This document is not financial product advice and has been prepared without taking into some of the key risks associated with an investment in BCB. A number of risks and account your investment objectiv
Slide 35: Risks continued
Risks continued Risk Business risks Occupational health BCB’s operations are subject to a variety of industry specific health and safety laws and regulations which are formulated to improve and to protect the safety and health of employees. and safety Mining operations are potentially hazardous and
Slide 36: Risks continued
Risks continued Risk Business risks Geological Mineral resource and ore reserve estimates are a subjective process based on drilling results, past experience with mining properties and modifying factors, knowledge, industry practice and many other factors. Estimates which are valid when made may cha
Slide 37: Risks continued
Risks continued Risk Business risks Insurance BCB’s business is subject to a number of risks and hazards generally that could result in damage to mining or production facilities, personnel injury or death, environmental damage to BCB’s properties and the properties of others, delays in development o
Slide 38: Risks continued
Risks continued Risk Business risks Personnel risk BCB’s operations rely on the ability to attract and retain skilled labour. BCB manages this risk through working with the major service providers to set pay levels close to market, improving site culture and providing employees with high quality fac
Slide 39: Risks continued
Risks continued Risk Business risks Going concern For the year ended 30 June 2024 the Group generated a consolidated loss of $95.5 million (2023: $162.9 million) and incurred operating cash outflows of $5.0 million (outflow in 2023: $105.1 million). As at 30 June 2024 the Group has cash and cash equ
Slide 40: Risks continued
Risks continued Risk General Investment Risks Liquidity risk BCB shareholders who wish to sell their BCB shares may be unable to do so at an acceptable price, or at all, if insufficient liquidity exists in the market for BCB shares. BCB does not guarantee the market price or liquidity of BCB shares
Slide 41: Risks continued
Risks continued Risk General Investment Risks Liquidity There may be relatively few or many potential buyers or sellers of the Shares on the ASX at any time, which may increase the volatility of the market price of the Shares, prevent investors from acquiring more Shares or disposing of Shares they
Slide 42: Risks continued
Risks continued Risk General Investment Risks Renouncement risk If a shareholder does not take up its entitlement under the Entitlement Offer, then its entitlements will be treated as renounced and there is no guarantee that any value will be received for their renounced entitlement through the book
Slide 43: Risks continued
Risks continued Risk General Investment Risks Australian Accounting Changes to the AAS are determined by the AASB. The AASB may, from time to time, introduce new or refined AAS, which may affect the future measurement and recognition of key Standards income statement and balance sheet items, includi
Slide 44: Important Notices and Disclaimer
Important Notices and Disclaimer Answering the call for high-quality steelmaking coal ASX BCB 44
Slide 45: Important Notices and Disclaimer
Important Notices and Disclaimer This document does not constitute an offer of new ordinary shares (“New Shares”) of the Company in any European Union (excluding Austria) jurisdiction in which it would be unlawful. In particular, this document may not be distributed to any person, and the New Shares
Slide 46: Important Notices and Disclaimer
Important Notices and Disclaimer Malaysia Singapore This document may not be distributed or made available in Malaysia. No approval from, or recognition by, the This document and any other materials relating to the New Shares have not been, and will not be, lodged or Securities Commission of Malaysi
Slide 47: Important Notices and Disclaimer
Important Notices and Disclaimer Taiwan United States The New Shares have not been registered in Taiwan nor approved by the Financial Supervisory Commission (“FSC”) The New Shares have not been, and will not be, registered under the US Securities Act of 1933 or the securities of Taiwan. The New Shar
Slide 48: Underwriting Agreement
Underwriting Agreement Answering the call for high-quality steelmaking coal ASX BCB 48
Slide 49: Underwriting Agreement
Underwriting Agreement Key terms of the Underwriting Agreement Each of the Joint Lead Managers’ obligations under the Underwriting Agreement, including to partially underwrite and manage the Entitlement Offer, are conditional on certain matters, including (but not limited to): • certain disclosure m
Slide 50: Underwriting Agreement
Underwriting Agreement • there are delays in the Timetable for the Entitlement Offer for more than one business day without consent of the Joint Lead Managers; • the commencement of certain material legal proceedings against any member of the Company or any director or other officer of the Company;
Slide 51: Underwriting Agreement
Underwriting Agreement The ability of an Underwriter to terminate the Underwriting Agreement in respect of some events will depend on whether the Underwriter has reasonable grounds to believe and determines in good faith that the event: • has or could have a material adverse effect on the: • success
Slide 52: FY24 Financial Results
FY24 Financial Results Answering the call for high-quality steelmaking coal ASX BCB 52
Slide 53: Summary Financial Performance
Summary Financial Performance Profit and Loss ($’m) FY23 FY24 $ Change % Change Revenue Quarterly EBITDA by Segment ($m) Revenue from contracts with customers 204.5 441.9 237.4 116% Other income 5.5 8.4 2.9 53% 6.0 Total income 209.9 450.2 240.3 114% 0.2 3.1 Expenses 9.2 3.4 3.7 Employee benefits ex
Slide 54: Summary Financial Position
Summary Financial Position Balance Sheet ($’m) Current assets FY23 FY24 $ Change % Change Cash and cash equivalents 48.9 21.7 (27.3) (56%) Trade and other receivables 36.5 21.7 (14.8) (41%) Inventories 60.5 27.0 (33.5) (55%) Other assets 4.3 4.9 0.7 16% Assets held for sale - 0.1 0.1 n.a. • At 30 Ju
Slide 55: Summary Cash Flows
Summary Cash Flows Cash Flow Statement ($’m) Cash flows from operating activities FY23 FY24 $ Change % Change Receipts from customers 185.5 467.2 281.8 152% Payments to suppliers and employees (inclusive of GST) (287.1) (466.0) (178.8) 62% Interest received 0.1 0.2 0.1 81% Other income 3.6 8.2 4.6 1
Slide 56: Group Cash
Group Cash FY24 Cash Movements A$m The Group placed the Bluff asset into care and maintenance in November 2023 following a rapid decline in PCI coal prices from April 2023 coupled with an increasing input cost environment 1 Jul-23 Burton Capex & Corporate Bluff Interest and Net Share Debt & Exchange
Slide 57: Royalty Deferral Payment Plan
Royalty Deferral Payment Plan Royalty Deferral Payment Plan Overview Royalty Deferral Payment Plan Schedule ($m) • BCB agreed royalty deferral arrangements with the Queensland Revenue Office (“QRO”) in Q1 FY24 and Q2 FY24 to preserve cash, maintain liquidity and manage its working capital position •
Slide 58: Appendices
Appendices Answering the call for high-quality steelmaking coal ASX BCB 58
Slide 59: Board and CEO
Board and CEO Our team has a strong combination of technical, managerial and capital markets experience, particularly in coal mining in Queensland Nick Jorss Neville Sneddon Malte von der Ropp Daryl Edwards Executive Chairman Non-Exec Director Non-Exec Director Chief Executive Officer Mr Jorss was t
Slide 60: Burton Mine Complex provides long-term growth options
Burton Mine Complex provides long-term growth options Indicative Timeframe1 Pit FY2024 FY2025 FY2026 FY2027 FY2028 FY2029 FY2030 FY2031-2035 Ellensfield South Plumtree North Broadmeadow East Lenton Hillalong Isaac Pit Burton North Burton South Teviot Creek Other projects 1 Lenton, Isaac, Hillalong,
Slide 61: Reserves and Resources
Reserves and Resources Reserves supporting the Production Targets (Mt)1,2 Resources supporting the Production Targets (Mt)1,2 Project Proven Probable Total BCB Ownership Project Measured Indicated Inferred* Total Broadmeadow East 1.0 0.5 1.5 90% Broadmeadow East 3.7 4.1 23 30 Burton & Lenton 25.0 8.
Slide 62: Burton Mine Complex
Burton Mine Complex Burton Mine Complex JORC Resources 278Mt JORC Reserves 35Mt Mineral Resource Estimate | Mt1,2,3,4 Mineral Reserve Estimate | Mt1,2,3,4,5 Measured Proved and Seam Proved Probable Seam Measured Indicated & Indicated Inferred M, I and I Probable Ellensfield South 10.9 5.6 17 3.1 20
Slide 63: Contact
Contact Bowen Coking Coal Ltd Level 4, 167 Eagle Street info@bowencokingcoal.com ABN 72 064 874 620 Brisbane, Queensland 4000 bowencokingcoal.com.au Phone+61 7 3191 8413 Australia ASX:BCB Answering the call for high-quality steelmaking coal ASX BCB
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