New Age Exploration Limited · ASX:NAE
New Age Exploration — Investor Presentation (March 2017)
23 slides from New Age Exploration's investor presentation, Mar 24, 2017
Slide 1: Lochinvar Coking Coal Project
For personal use only Lochinvar Coking Coal Project March 2017
Slide 2: Cautionary Statements
Cautionary Statements Information in relation to the Lochinvar Coking Coal Project , including production targets and financial information, included in this presentation is extracted from the NAE Scoping Study Update announcement dated 15 March 2017. The Company confirms that all material For perso
Slide 3: Lochinvar Scoping Study Update - Summary
Lochinvar Scoping Study Update - Summary NAE owns 100% of Lochinvar, a low cost coking coal project, ideally located to supply UK and European steel mills with immediate access to existing rail and port infrastructure For personal use only The 2014 Scoping Study was updated in Feb 2017 using spot co
Slide 4: Geology
Geology • NAE drilling completed in 2013 and 2014 • Scoping Study based on mining Nine Foot Seam For personal use only only • Nine Foot Seam - average 2.2m thickness • Mining planned between 210m and 1,000m depth • Seam dips suitable for longwall mining • Relatively complex structure 4
Slide 5: Resources – Building the Inventory
Resources – Building the Inventory Inferred Resource (Oct 2013) and Indicated Resource (Aug 2014) For personal use only Lochinvar Resource Summary 1 (August 2014) Coal Indicated Inferred Total Seam Resource Resource Resource (Mt) (Mt) (Mt) Nine Foot 37 49 86 Six Foot 13 13 26 Total 49 62 111 • Based
Slide 6: Scoping Study - Outline
Scoping Study - Outline Project Outline Leading Consultants in Specialist Areas For personal use only Accuracy of Estimate Section Consultant Scope of Work • Overall study accuracy of ± 40% •Resource estimate •Mine design Mining Lead •Capex & opex estimates Technical • Modern underground longwall mi
Slide 7: Conceptual Mine and Infrastructure Layout
For personal use only Conceptual Mine and Infrastructure Layout Railway Siding Final Product Stockpile Reject Stockpile CPP Reject Storage Car Park ROM Stockpile Office / Workshops Laydown Area Substation Drift Portal 7
Slide 8: Mining
Mining Mining Parameters Preliminary Mine Layout For personal use only ROM Life of Mine: 47.3 Mt (Run of Mine) Average Production: 1.9 Mtpa Access & Ventilation • Drift: 1 in 8 gradient, 1,700m x 6m, TBM dug, roof supported conveyor • Men and materials vehicular access via drift • Ventilation: 5m ve
Slide 9: Production
Production Production Assumptions Production Schedule1 For personal use only • All longwall moves included in schedule • Productivity de-rated for: – Seam height – Depth – Geological structure – Roof and floor conditions – Gas management – Mechanical availability • Palaris productivity estimates bas
Slide 10: Coal Processing
Coal Processing 1 71% Life of Mine: 33.7 Mt For personal use only High Yield Clean Coal Average ROM to Clean Coal Average Production: 1.4 Mtpa Coal Processing • 60 kt capacity ROM stockpile fed by mine conveyor, front end loader feeds crusher • 400 t/h wash plant to handle up to 2.5 Mtpa, upgraded l
Slide 11: Infrastructure
Infrastructure Simple and low cost development due to excellent transport and other infrastructure in place. Minimal development impact on primarily agricultural land For personal use only RAIL PORT OTHER 7km to the West Coast Main Line Two Preferred Export Options 5km to Gretna Substation Access to
Slide 12: HCC Benchmark Price History & Basis of Estimate
HCC Benchmark Price History & Basis of Estimate HCC Prices have been highly volatile Hard Coking Coal Benchmark Price (2010 – 2017) For personal use only • Since early 2011, Hard Coking Coal (HCC) Benchmark spot prices have varied from peaks of over US$300/t to lows of ~US$70/t (US$172/t average ove
Slide 13: Market for Lochinvar Coal
Market for Lochinvar Coal European Demand for HV HCC 1 Europe – Forecast HV HCC Import Growth1 For personal use only • European Metallurgical Coal imports forecast to grow from around 52Mt (2017) to 61Mt (2035) • Lochinvar Coal is comparable to US High Volatile A Hard Coking Coal - highly sought aft
Slide 14: Lochinvar Indicative Coal Quality
Lochinvar Indicative Coal Quality Lochinvar Coal is comparable to highly sought after US High Volatile A Hard Coking Coal 1 For personal use only Wood Mackenzie have made an assessment of the expected Lochinvar coal specification compared with commonly traded industry standard benchmark coking coals
Slide 15: Lochinvar Coal Pricing – 94% of HCC Benchmark
Lochinvar Coal Pricing – 94% of HCC Benchmark Area Coal Type TM IM ASH VM FC TS P CSN CSR2 Ro.Max Max Fluidity For personal use only Lochinvar Indicative Specs. 8.0 3.0 5.0 35.0 57 1.4 0.010 7 50 0.84 500 -11,000 US Hampton Roads High Vol A CC 7.5 - 8.6 33.2 49.9 0.81 0.015 8.4 53.0 1.0 27,247 US Ha
Slide 16: Lochinvar 2017 Scoping Study Update
Lochinvar 2017 Scoping Study Update Scoping Study Update Scope 2014 Study 2017 Study An update to the 2014 Scoping Study1 was For personal use only completed in March 20172 including: Production Life-of-Mine (LOM) ROM Mt 47 47 • Update of the Operating and Capital Costs LOM Saleable Coal Mt 34 34 co
Slide 17: Project Economics
Project Economics Lochinvar delivers excellent and robust returns on investment in a low risk country with lowest quartile operating costs and a low construction cost For personal use only Valuation Summary NPV Sensitivity Production Life-of-Mine (LOM) ROM Mt 47 LOM Saleable Coal Mt 34 Life of Mine
Slide 18: Operating Costs
Operating Costs Operating Costs - Low Cost / High Margin US$/Tonne Clean Coal For personal use only Cost Area US$/t ROM US$/t Clean Coal Development 8.2 6.6 Longwall 4.7 11.6 Outbye 6.3 8.8 Technical Support 3.0 4.2 Operations Support 3.2 4.5 ROM Cash Costs 25.4 35.7 Coal Handling & Processing 5.8 8
Slide 19: Capital Costs
Capital Costs Capital Costs – Low development capital Capital Intensity – Recent peer coal projects1 For personal use only Category Capital Estimate (US$ M) Drift and Shafts 42 Longwall Equipment etc. 36 Lochinvar Underground Infrastructure 32 Capitalised Development 1 Total Underground Development
Slide 20: Indicative Schedule
Indicative Schedule • Completion of Scoping Study Update marks first major milestone in re-start of activities announced 14 Nov 2016 For personal use only • A potential indicative timeline of 4 years to production has been assumed for the 2017 Scoping Study Update valuation 1 • An additional 1 year
Slide 21: Summary
Summary • Lowest quartile of Global Seaborne Met Coal cost curve Low Cost Favourable FX, Low UK royalties, labour costs and taxes For personal use only • • Short rail distance to UK customers and export ports • 7km to existing rail network Adjacent to Infrastructure • Available rail and port capacit
Slide 22: Competent Persons Statement
COMPETENT PERSONS STATEMENT The Resources estimate is based on information compiled by Dr John Bamberry, who is a Member of the Australasian Institute of Geoscientists (Member No. 4090). Dr Bamberry is For personal use only the Principal Geologist at Palaris. He has sufficient experience relevant to
Slide 23: New Age Exploration Limited
For personal use only New Age Exploration Limited ABN 64 004 749 508 Level 3, 480 Collins Street Melbourne, VIC 3000 Australia Phone: +61 3 8610 6494 Fax: +61 3 8610 6334 Email: info@nae.net.au Website: nae.net.au
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