Slide 1: Full Year 2012 Results
Whitehaven Coal Limited For personal use only Full Year 2012 Results Sydney, Australia 24 August 2012
Slide 2: Disclaimer
Disclaimer For personal use only Statements contained in this material, particularly those regarding the possible or assumed future performance, costs, dividends, returns, production levels or rates, prices, reserves, potential growth of Whitehaven Coal Limited, industry growth or other trend projec
Slide 3: Financial highlights - FY 2012
Financial highlights - FY 2012 For personal use only ► Net profit after tax (NPAT) of $62.5 million1 ► Underlying NPAT (excluding Significant Items) of $57.8 million ► Final Dividend of 3.0 cents per share fully franked, record date 17th September, payment date 30th September ► Average cash cost of
Slide 4: Financial highlights – Significant Items
Financial highlights – Significant Items For personal use only $M ► Gain on sale of Maules Creek JV interest 116.2 ► Due diligence and transaction costs (41.4) ► Loss related to legacy contracts (29.4) ► Acquisition accounting adjustment for fair value of Boardwalk Resources (119.8) ► Recognition of
Slide 5: Operating highlights - FY 2012
Operating highlights - FY 2012 For personal use only ► Safety and environmental performance very good across Whitehaven's operations, with a range of initiatives put in place to promote continuous improvement ► Overburden removal quantity as planned for the year, but coal production adversely affect
Slide 6: Business development highlights - FY 2012
Business development highlights - FY 2012 For personal use only ► Completed the merger with Aston Resources and Boardwalk ► Completed the acquisition of Coalworks to further consolidate Whitehaven’s position in the Vickery and Ferndale projects ► Completed the sale of a 10% JV interest in the Maules
Slide 7: Full year coal sales – FY 2012
Full year coal sales – FY 2012 For personal use only Equity Basis – 000t FY 2011 FY 2012 Change Gunnedah Operations 4,210 3,865 -8% Werris Creek 1,777 1,407 -21% Narrabri 139 261 +88% Whitehaven Total 6,126 5,532 -10% 100% Basis – 000t FY 2011 2012 Change Gunnedah Operations 4,671 4,361 -7% Werris C
Slide 8: Saleable coal production – FY 2012
Saleable coal production – FY 2012 For personal use only Equity Basis – 000t FY 2011 FY 2012 Change Gunnedah Operations 2,303 2,662 +16% Werris Creek 1,722 1,343 -22% Narrabri 143 270 +88% Whitehaven Total 4,168 4,275 +3% 100% Basis – 000t FY 2011 FY 2012 Change Gunnedah Operations 2,761 3,170 +15%
Slide 9: Full year profitability – FY 2012
Full year profitability – FY 2012 For personal use only Reported Financial Performance - A$ millions FY 2011 FY 2012 Revenue 622.2 618.1 NPAT before Significant Items 73.3 57.8 NPAT 9.9 62.5 Earnings per share (cents per share - diluted) 2.0 10.9 Final dividend (cents per share - fully franked) 4.1
Slide 10: Full year cash costs up, due mainly to flood and other production impacts
Full year cash costs up, due mainly to flood and other production impacts and underutilised TOP For personal use only A$/t FOB FY 2011 FY 2012 Coal Sales - 000t (equity basis, excl. purchased coal) 4,243 4,290 Average revenue - (excl. purchased coal & net of NSW royalties) 103.00 104.55 Average cash
Slide 11: Cash flow – FY 2012
Cash flow – FY 2012 A$ millions For personal use only FY 2011 FY 2012 EBITDA pre-significant items 148.0 149.2 Cash impact of significant items in operating cash flows (61.3) (34.4) Movement in working capital1 33.6 (112.3) Cash (used in)/generated from operations 120.3 2.5 Cash paid in respect of t
Slide 12: June financial position
30 June financial position For personal use only A$ millions June 30 - 2011 June 30 – 2012 Cash 207.6 513.6 Current receivables 92.4 70.2 Other current assets 162.3 158.3 Current assets 462.3 742.1 Non-current receivables 2.7 11.1 Other non-current assets 997.4 3,568.4 Total assets 1,462.4 4,321.6 C
Slide 13: Full year capex – FY 2012
Full year capex – FY 2012 For personal use only Capital Investment - $ million 2011 2012 Tarrawonga 1 2.3 1.6 Werris Creek 8.3 9.4 Rocglen 2.4 0.9 Sunnyside 1.9 0.3 Gunnedah CHPP 16.4 2.8 Total Open-cuts 1 31.3 15.0 Narrabri (including capitalised development costs) 1 166.0 181.3 Maules Creek 1 - 20
Slide 14: Fixed price coal contracts and fixed FX status
Fixed price coal contracts and fixed FX status For personal use only ► Whitehaven has a total FX fixed position of US$154.7m at an average exchange rate of 0.9634 US$:A$ as at 30 June 2012 ► All of FY 2013 fixed price sales are covered by FX contracts at ~0.96 A$/US$ FY2013 – 1H FY2013 – 2H TOTAL 00
Slide 15: Narrabri fully operational, all infrastructure in place
Narrabri fully operational, all infrastructure in place For personal use only ► Gas drainage well ahead of development, residual gas content low, no issues for LW ► Roof caving very well, however still operating in pre-conditioned area ► Caving of roof coal looks positive for Top Coal Caving (TCC),
Slide 16: Longwall installed and operating
Longwall installed and operating For personal use only ► Engineering teething problems being resolved – e.g. shearer set-up and picks ► Main issues to resolve are automation and hi-pressure leg valves ► Operator skills improving and CAT/Bucyrus supporting until LW reaches design performance 15 FY 20
Slide 17: Longwall ramping up after slow start
Longwall ramping up after slow start For personal use only ► Current 6 Mtpa target based on 65 cutting hours per week ► Industry best practice is ~90 hours per week, stretching to 100 ► Narrabri has UG coal handling capacity and is approved to 8 Mtpa ► Upgrade to Stage 1 thermal coal crushing system
Slide 18: Maules Creek still awaiting Government approvals
Maules Creek still awaiting Government approvals For personal use only ► Maules Creek project registered with NSW Government in August 2010 ► Environmental Assessment completed and lodged in February 2011 ► Aston expected assessment to be completed and approved by end 2011, based on previous operati
Slide 19: Maules Creek one of the best global coal projects
Maules Creek one of the best global coal projects For personal use only ► Economics of Maules Creek are compelling • Competitive capital development costs • Low stripping ratio • High yield (80-90%) of excellent quality SSCC and/or thermal coals • Very competitive cost structure against global compe
Slide 20: Merger has broadened tenement holdings and consolidated Gunnedah Basin holdings
Merger has broadened tenement holdings and consolidated Gunnedah Basin holdings For personal use only 19 FY 2012 Annual Results - August 24, 2012
Slide 21: Gunnedah Basin has sustainable competitive advantages
Gunnedah Basin has sustainable competitive advantages For personal use only Large reserves of ► Low ash excellent quality ► Low sulphur coals ► Low phosphorus ► High energy (Updated JORC statement issued 24th ► Coking properties August 2012) ► Favourable ash and trace element chemistry ► Flexibility
Slide 22: Competitive cost structure in global metallurgical coal
Competitive cost structure in global metallurgical coal For personal use only Global seaborne metallurgical coal - C1 cash cost curve1 2012 (US$/FOB Nominal) 180 160 140 RoW 120 C1 Cash Costs (US$/t) Vietnam USA 100 South Africa N T V Russia 80 M Indonesia V N T M Canada 60 Australia 40 20 - 0 50 10
Slide 23: Competitive cost structure in global thermal coal
Competitive cost structure in global thermal coal For personal use only Global seaborne thermal coal - C1 cash cost curve1 2012, Energy adjusted4 (US$/FOB Nominal) 140 120 100 RoW C1 Cash Costs (US$/t) Vietnam - Energy Adjusted 80 N USA South Africa W N Russia 60 Indonesia W Colombia Australia 40 20
Slide 24: Will be a major supplier of semi-soft coking coal
Will be a major supplier of semi-soft coking coal For personal use only Comments Potential saleable production mix (Mt, 100% basis) ► Metallurgical coal can grow to be up to ~60% Metallurgical coal 23% of managed saleable production by FY2018, Metallurgical coal subject to market opportunity Thermal
Slide 25: Substantial near-term production growth from Narrabri and Maules Creek
Substantial near-term production growth from Narrabri and Maules Creek For personal use only Planned saleable coal production - Mt 5 Note: Data shown for the year ending 30 June. These estimates relate to planned future events and expectations and as such, involve known and unknown risks and uncerta
Slide 26: Infrastructure available to support planned growth
Infrastructure available to support planned growth For personal use only Comments Port capacity and export coal sales (Mt, 100% basis)1 Strategic 11% shareholdings in Newcastle Coal Infrastructure Group Medium to longer term capacity gaps to be secured b accessing surplus capacity from 21 other
Slide 27: Diversified project risk profile provides numerous options for further growth
Diversified project risk profile provides numerous options for further growth For personal use only ► Diversified, attractive portfolio of producing, development and exploration coal assets ► Stable cashflows from existing open cut operations ► Substantial growth in future cashflows from the ramp up
Slide 28: Market Outlook
Market Outlook For personal use only ► Underlying demand growth trend in key coal markets is very positive (China, India), but economic slowdown and supply increases have reduced prices over the last 6 months ► Metallurgical coal demand growth has weakened and prices have fallen significantly. Curre
Slide 29: Whitehaven's response
Whitehaven’s response For personal use only ► Core growth plans proceeding (~$700 million in capex) ► Maules Creek development $575 million (75%) ► Tarrawonga upgrade $100 million (70%) ► Werris Creek upgrade $25 million (100%) ► Whitehaven’s balance sheet is lightly geared with zero net debt ► Curr
Slide 30: Thank you
For personal use only Thank you Any questions?