Stanmore Resources Ltd · ASX:SMR
Stanmore Resources — Investor Presentation (January 2022)
20 slides from Stanmore Resources's investor presentation, Jan 31, 2022
Slide 1: Creating a leading global metallurgical coal producer
Creating a leading global metallurgical coal producer 31 January 2022
Slide 2: Important Information
Important Information This presentation should be read in conjunction with the announcement “Stanmore Resources to Acquire BHP’s 80% interest in BMC” released on 8 November 2021, which is available on Stanmore Resources Limited’s (“Stanmore”, “Company”) website: https://stanmore.net.au/. This presen
Slide 3: Ore reserves and mineral resources reporting
Ore reserves and mineral resources reporting This presentation contains estimates of Stanmore's ore reserves and mineral resources, as well as statements about BMC's mineral resources and ore reserves. The information in this presentation that relates to the ore reserves and mineral resources of Sta
Slide 4: Stanmore ASX Snapshot
Stanmore ASX Snapshot Overview Stanmore current ownership (%) • Australian incorporated public company listed on the ASX in 2009 5.5 4.8 • Supportive major shareholder: Golden Energy and Resources Limited (GEAR), an established and successful SGX listed mining investment house 14.4 GEAR Latimore • O
Slide 5: Experienced board and management team
Experienced board and management team Stanmore is led by and managed by an experienced board and management team BOARD Dwi Suseno Jimmy Lim Mark Trevan Richard Majlinder Chairman Director Director Director Mr Dwi Suseno is the Executive Director and Mr Lim has over 20 years of experience in Mr Treva
Slide 6: Overview of Stanmore
Overview of Stanmore Stanmore is on track to become a leading Australian supplier of metallurgical coals to global markets • Definitive agreement with BHP to acquire its 80% interest in BMC (8 Nov 21), which owns the South Walker Creek and Poitrel operating mines and the Ward Well underground develo
Slide 7: CY21 Production Update
CY21 Production Update Stanmore Production Update • Although production was impacted from the onset of La Nina weather systems, Q4 coal sales of 632kt (610kt coal produced) were achieved at significantly attractive coal prices • H2 2021 ROM production at c.95% of current nameplate capacity of the Is
Slide 8: Business Update
Business Update 2021 was a transitional year for Stanmore, ending with the successful transition to Isaac Downs and the transformational agreement to acquire an 80% interest in BMC GEAR Completes acquisition of Start of Isaac Downs Exploration Bulk Sample Isaac Downs mining lease BMC Acquisition 75%
Slide 9: Transaction summary
Transaction summary Stanmore has signed a definitive share purchase agreement with BHP to acquire BHP’s 80% interest in BMC Transaction Summary Transaction Structure • Stanmore has signed a definitive share purchase agreement with BHP Minerals Pty Ltd (“BHP”) to acquire BHP’s 80% interest in BMC thr
Slide 10: Acquisition funding
Acquisition funding The Acquisition is fully funded by a combination of committed debt and equity • The Transaction is intended to be funded through a combination of: Acquisition Uses of Funds US$m Funding – A new US$625 million senior acquisition debt facility with a consortium of lenders; Transact
Slide 11: Overview of BMC
Overview of BMC BMC is an established business which has been in continuous operation for over 25 years Asset Overview Asset Location South • Open-cut coal mine located approximately 35km west of Nebo North Queensland Export Terminal Walker in the northern region of the Bowen Basin • It produces hig
Slide 12: BMC historical operating and financial performance
BMC historical operating and financial performance1 Saleable Production (Mt) – 100% Basis Revenue (US$m) – 100% Basis 2 262 10.3 9.7 9.5 8.7 8.5 203 205 1,538 6.2 1,363 1,446 143 6.0 5.4 122 4.9 5.8 971 813 827 1,130 778 519 422 3.7 4.1 4.1 3.9 2.7 550 619 452 356 408 FY18 FY19 FY20 FY21 QE Sep-21 F
Slide 13: Strong strategic acquisition rationale given proximity of BMC to Stanmore's existing assets
Strong strategic acquisition rationale given proximity of BMC to Stanmore’s existing assets Value Proposition and Upsides Location of BMC and Stanmore Assets • The Transaction is consistent with Stanmore’s long-term strategy to develop a competitive and substantial metallurgical coal portfolio in BO
Slide 14: C1 Cash Cost (US$/t)
Poitrel and South Walker Creek are top tier coking coal assets that sit low on the metallurgical cost curve Commentary Wood Mackenzie Australian Metallurgical Coal C1 Cash Cost Curve (US$/t, 2022) 1 • The BMC assets have attractive FOB cash costs, 200 positioning Poitrel and South Walker Creek low o
Slide 15: The Transaction will position Stanmore among Australia's largest producers of metallurgical coal
The Transaction will position Stanmore among Australia’s largest producers of metallurgical coal Australian Recoverable Australian Australian FY21 Reserves (Mt, 100% Basis) 1,2,5 Resources (Mt, 100% Basis) 1,3,5 Production (Mt, 100% Basis) 1,4 3,281 5,00 0 11,311 40 64 1,00 0 4,50 0 900 35 4,00 0 80
Slide 16: World class product
World class product Strong market outlook for metallurgical coal, including PCI Wood Mackenzie forecast metallurgical coal supply & demand 1 Supply and demand outlook ✓ Long-term demand for metallurgical coal is expected to continue to grow ✓ Wood given Mackenzie its role in steelforecasts productio
Slide 17: Strong coal market dynamics
Strong coal market dynamics Record US$ prices, unprecedented A$ prices Historical benchmark prices (US$/t, nominal) 1 Commentary 2 500 • Global coal production approximately 7.6 bn tonnes, including 1.15 bn tonnes of metallurgical coal of which 320Mt was exported 450 – Seaborne metallurgical coal 28
Slide 18: Appendix A
APPENDIX A STRICTLY PRIVATE AND CONFIDENTIAL
Slide 19: Overview of Golden Energy and Resources
Overview of Golden Energy and Resources Supportive major shareholder – an established and successful mining investment house Overview Group Overview 3 • Singapore listed investment company with investments including mining of coal through GEMS and Stanmore, and gold through JV company Ravenswood Gol
Slide 20: Status of transaction conditions
Status of transaction conditions Stanmore is in the process of satisfying each of the Conditions Precedent FIRB • Stanmore has now applied to the Australian Foreign Investment Review Board (“FIRB”) for approval to proceed with the Acquisition and anticipates receiving a response from FIRB by Februar
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