Salungano Group Limited · JSE:SLG
Salungano — Wescoal Holdings — Corporate Update (March 2020)
19 slides from Salungano's corporate update, Mar 6, 2020
Slide 1: Investor Visit to Vanggatfontein Complex
INVESTOR VISIT TO VANGGATFONTEIN COMPLEX 06 March 2020 LAYING THE FOUNDATION TO GROW SUSTAINABLY
Slide 2: Disclaimer
DISCLAIMER This presentation contains forward-looking statements, including but not limited to, statements with respect to Wescoal Holding Limited’s plans and operating performance, the estimation of coal reserves and resources, the timing and amounts of estimated future production, costs of future
Slide 3: Contents
CONTENTS 1. Welcome (Group CEO) 2. Introduction (Group CEO) 3. Q3 Update (Group CFO) 4. Vanggatfontein (VGF) Complex (Mining CEO) 5. Conclusion (Group CEO) 3
Slide 4: Group Structure
GROUP STRUCTURE Wescoal Holdings Limited (Registration Number: 2005/006913/06) (100%) (100%) 100% (100%) Wescoal Mining (Pty) Ltd Wescoal Mineral Keaton Energy Holdings Limited Wescoal Trading (Pty) Ltd Recoveries (Pty) Ltd (Registration Number: (Registration Number: (Registration Number: 1999/00584
Slide 5: Strategy Overview: Laying the Foundation to Grow Sustainably
STRATEGY OVERVIEW CORE VALUES MISSION VISION Safety • To become a dynamic black- • To play a leading role in owned and black-led coal delivering a reliable energy company which champions socio- source in a manner which adds economic change and transformational value to society. transformation Delive
Slide 6: Strategy Update
STRATEGY UPDATE Sweat current operations, manage business well to maintain Vanggatfontein turnaround steady state • Ramp up in progress and expected to reach over 300kt ROM in March TARGET: 8Mt ROM FY20 Elandspruit STABILITY • Consistently operating at 240kt ROM target from opencast Customer-centric
Slide 7: Q3 Update
Q3 UPDATE Dec 2019 Sep 2019 Dec 2018 Variance Variance Variance Variance Production (Q3 FY’20) (Q2 FY’20) (Q3 FY’19) (Kt) (%) (Kt) (%) (Kt) (Kt) (Kt) Elandspruit 621 697 (76) -11% 681 (60) -9% Khanyisa 219 370 (152) -41% 24 195 813% Intibane Vanggatfontein 621 529 92 17% 563 58 10% Total 1 461 1 596
Slide 8: VGF Complex
WESCOAL Pte ot : ; “f * Ss a | -* GF COMPLEX
Slide 9: Locality Map
LOCALITY MAP WESCOAL Tee Pinewood “Botleng Siuatt\Coallieastion) (oT ane : rig) <n) ; ‘ Whoabsvelden Project g ‘ . *Wangaatfontein Colliery Brakfontein 271k’ ‘Rietkull 278k. ® Google‘Earth
Slide 10: VGF Organisational Structure
VGF ORGANISATIONAL STRUCTURE Mine Manager Thakadu Saasa Chief Safety Officer Mine Engineer Production Geologist Environmental Intern Logistic Coordinator Junior Engineer Superintendent Pieter Pretorius Eshumael Chauke Paul Simelane Rendani Shiwalula Njabulo Mxusile De Wet Lombard Phomolo Lekgae Trai
Slide 11: Safety
SAFETY Lost Time Injury Frequency Rate (LTIFR) Performance Total Recordable Injury Frequency Rate (TRIFR) Performance Q1 FY20 Q2 FY20 Q3 FY20 3.0 2.5 2 2.0 1.5 1 1.3 1.0 1.0 0.2 0.5 0 Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 0.0 Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19
Slide 12: Key Indicators
KEY INDICATORS KEY INDICATORS 17 615 1.9Mt (YTD19: 2.5Mt) 26.3Mt 9 years (FY19: 9 years) 1.2Mt (YTD19: 1.9Mt) LTIFR 0.2 (FY19: 0.24) permanent contractors coal mined reserves LoM sales volume safety Current priorities • Implementation and monitoring of production improvement initiatives • Pit de-cou
Slide 13: ROM & Sales Performance Trend
ROM & SALES PERFORMANCE TREND VGF ROM 300 284 250 228 232 202 211 200 200 158 Kt 150 127 92 100 70 59 50 - Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Actual ROM kt VGF Own Sales 200 183 153 150 150 122 123 123 111 Kt 100 79 69 51 47 50 - Apr-19 May-19 Jun-19 Jul-19
Slide 14: Current and Geological Resources
CURRENT AND GEOLOGICAL RESOURCES Moabsvelden Coal Infrastructure i.e. CHPP, Mine Project Offices, PCD, Discard Facility VG4 Mine out Area Vanggatfontein Colliery VG6 VG3 VG5 VANGGATFONTEIN EXTENSION 14
Slide 15: Development Timelines
DEVELOPMENT TIMELINES Schedule base Reserve Sept 19 (Mt) FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 March 2021 VG3 2.2Mt Ave ROM Depleted steady state 120ktpm Dec 2023 VG4 11.1Mt Depleted Ave ROM steady state 200ktpm Nov 2026 VG5 10.8Mt Depleted Ave ROM steady state 160ktpm Moabsvelden 29.0Mt Ave ROM s
Slide 16: VG5 Common Box Cut
VG5 COMMON BOX CUT Neighboring Wescoal Miner ▪ Extension project to replace VG3 pit during calendar H2 2020 VG5 PRODUTION ▪ Well progressed to open a new box cut for an additional mining pit and coal face Dump m3 ▪ Joint development project, which will further enable extraction of some 450 000 Topso
Slide 17: Moabsvelden Project
MOABSVELDEN PROJECT ▪ Selection of a contract miner concluded following an extensive selection process o Appointment remains subject to conclusion and signature of a contract mining agreement - an advanced stage ▪ Box cut development and related infrastructure activities will commence in March 2020
Slide 18: Moabsvelden Site Plan
MOABSVELDEN SITE PLAN Mine access PCD Mining Box cut Area Access Mining Ramp Area Crushing & Waste Dump Screening Area Area Mine offices & Hardpark 18
Slide 19: Conclusion
CONCLUSION › Most recent performance showing marked improvement, with ROM expected to reach over 300Kt in March › Contractor resourced to achieve plan consistently › Capital investment into de-coupling of pit almost complete › New pit VG5 on track to be handed over seamlessly at the end of VG3 › Moa