White Energy Company Limited · ASX:WEC
White Energy — Investor Presentation (June 2010)
24 slides from White Energy's investor presentation, Jun 23, 2010
Slide 1: Company Presentation June 2010
Company Presentation June 2010
Slide 2: White Energy
White Energy A diversified coal company listed on the ASX with significant global growth opportunities White Energy is exclusive worldwide licensee of a patented technology which upgrades high moisture low value sub-bituminous and lignite coals through a low cost process of dehydration and compactio
Slide 3: White Energy Upgraded Coal
White Energy Upgraded Coal Value proposition – access low cost / low rank coals and upgrade into higher energy coal, whilst maintaining the environmentally positive attributes of the feedstock coal Product Upgrade Historical Price Arbitrage Feedstock coal Upgraded high energy Historical Coal Prices
Slide 4: Coal is a Major Energy Source
Coal is a Major Energy Source The primary source of energy in the US, China, India and other key regions is coal Coal is currently the world’s largest single source of energy used to produce electricity Demand for coal is increasing, particularly in the growing economies of China and India Global co
Slide 5: World Coal Reserves – Abundant but Low Rank
World Coal Reserves – Abundant but Low Rank White Energy’s coal upgrading technology is well positioned to take advantage of the large global deposits of high moisture coal, which represents ~50% of overall global coal reserves % of Global Reserves Global coal deposits by location and type, 2006, Bi
Slide 6: U.S. Coal Reserves – Abundant but Low Rank
U.S. Coal Reserves – Abundant but Low Rank Low rank coal dominates U.S. resources More than 50% of U.S. coal reserves are sub-bituminous or lignite High quality bituminous coal reserves are declining and costs are increasing Increasingly stringent regulatory restrictions further endanger U.S. bitumi
Slide 7: U.S. Political Appetite for Coal
U.S. Political Appetite for Coal All studies point to the need for continued coal consumption in the U.S. Despite broad support for a variety of perceived alternative energy products, no clear preferred or practical substitute for coal has emerged In the absence of economical and scalable alternativ
Slide 8: Need for Cleaner Coal Solutions
Need for Cleaner Coal Solutions The current and future dependence on coal will require technologies that can reduce emissions and mitigate the negative effects of coal use In addition to being the world’s largest single source of energy used to produce electricity, coal combustion is also the larges
Slide 9: White Energy’s Upgrading Process
White Energy’s Upgrading Process White Energy’s upgrading process was developed over 20 years, by a consortia led by the CSIRO, Australia’s pre-eminent government research organisation Graphical Depiction of the White Energy Process Steps in the White Energy Process 1. Raw feed coal is crushed to <3
Slide 10: Key Benefits
Key Benefits White Energy’s technology is based on a mechanical process, which is scalable in 1 MTPA plant modules No expensive binding agents used to stabilise the upgraded product which Simple Mechanical ensures combustion characteristics are optimised and no pollutants are added Process to the pr
Slide 11: White Energy Upgraded Coal vs Sub-Bituminous Coal
White Energy Upgraded Coal vs Sub-Bituminous Coal Upgraded White Energy coal has an improved energy content and enhanced transportation efficiencies when compared to lower rank feedstock coal Benefits of Upgraded Coal compared to Sub-Bituminous feedstock Higher energy content 30% - 200% increased en
Slide 12: White Energy Upgraded Coal vs Bituminous Thermal Coal
White Energy Upgraded Coal vs Bituminous Thermal Coal Upgraded White Energy coal has an improved pollution profile as it maintains the positive environmental attributes of the lower rank feedstock coal Superior environmental performance as compared to Australian thermal coal Significant reduction in
Slide 13: Growth Platform for White Energy Upgraded Coal
Growth Platform for White Energy Upgraded Coal Significant progress has been made in our prioritised coal markets Indonesia United States Africa China Australia Key • Bayan • Peabody Energy • Black River • In commercial • South Australian Partners Resources • Buckskin discussions Coal Limited • Kent
Slide 14: Tabang – The First Commercial Scale White Energy Upgraded Coal Plant
Tabang – The First Commercial Scale White Energy Upgraded Coal Plant Using White Energy’s design and project management skills, construction of the world’s first 1 million tonne per annum coal upgrading plant has been completed Located in East Kalimantan, Indonesia Owned and operated by KSC, White E
Slide 15: Update on KSC’s Tabang Operation
Update on KSC’s Tabang Operation KSC is currently ramping-up production with a focus on improving product quality and production rates Emphasis is now on continuing to improve production rates and product quality of the upgraded coal Coal injection system now proven to be operable above key 50% thre
Slide 16: Takeover of South Australian Coal Limited
Takeover of South Australian Coal Limited The proposed SACL acquisition will create significant value through the merger of the White Energy's Upgraded Coal Technology and a large sub-bituminous coal field in South Australia Attractive portfolio of Industry leading coal upgrading technology coal ass
Slide 17: Transaction Mechanics
Transaction Mechanics The off market takeover will occur via a mainly scrip offer (with a minimum cash alternative), and include a mix of upfront consideration and performance entitlements Offer Terms • Mainly scrip consideration, with SACL Shareholders receiving WEC shares based on valuation of SAC
Slide 18: South Australian Coal Limited
South Australian Coal Limited SACL owns a large reserve of sub-bituminous coal. SACL is an unlisted public company that is controlled by the ex-Felix Resources board and management team SACL owns Exploration Licence 3386 containing the Lake Phillipson Coal Deposit with an inferred and indicated sub-
Slide 19: Potential Uses of South Australian Coals Lake Phillipson Deposit
Potential Uses of South Australian Coals Lake Phillipson Deposit Lake Phillipson Coal Deposit Gawler Craton Upgrade coal via Sell high Develop White Energy's Identify new coal moisture coal minerals and Upgraded Coal technologies domestically base metals Technology The high moisture South Australia
Slide 20: Coal Industry Specialist Board
Coal Industry Specialist Board A highly regarded board and management team with an industry wide reputation for delivery and execution of major coal projects Post Acquisition Board of Directors and CEO Travers Duncan Chairman Highly experienced Board and management team Ex-Felix Resources Chairman,
Slide 21: Strong Platform for Growth
Strong Platform for Growth WEC’s acquisition of SACL and accompanying capital raising provides a strong platform for growth and allows for participation in future coal sector opportunities The addition of the ex-Felix Resources Board and management team further demonstrates the confidence in the Whi
Slide 22: Competent Person Statement
Competent Person Statement The information in this presentation which relates to the Exploration Results, Mineral Resources or Ore Reserves at EL 3386, for coal, is based on information compiled by Jonathan Barber, who is a member of the Australasian Institute of Mining and Metallurgy. Jonathan Barb
Slide 23: Forward Looking Statements
Forward Looking Statements Except for the historical information contained herein, the matters discussed in this presentation contain forward- looking statements, including statements, containing the words “planned”, “expects”, “believes”, “strategy”, “opportunity”, “anticipates”, and similar words.
Slide 24: Maritime Trade Towers, Sydney – Contact Details
Maritime Trade Towers White Energy Coal North America, Inc. Level 20, 201 Kent Street One Church Street, Suite 200 Sydney, NSW 2000 Rockville, Maryland 20850 Telephone: +61 2 9959 0000 Telephone: (301) 917-6700 Facsimile: + 61 2 9959 0099 Facsimile: (301) 917-6701 Email: info@whiteenergyco.com Email
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