Whitehaven Coal Limited · ASX:WHC
Whitehaven Coal — Investor Presentation (July 2009)
24 slides from Whitehaven Coal's investor presentation, Jul 30, 2009
Slide 1: Whitehaven Coal Limited Capital Raising
Whitehaven Coal Limited Capital Raising 30 July, 2009
Slide 2: Disclaimer
Disclaimer The following disclaimer applies to this presentation and any information provided regarding the information contained in this presentation (the “Information”). You are advised to read this disclaimer carefully before reading or making any other use of this presentation or any information
Slide 3: Overview
Overview Institutional placement Institutional placement of 60.7 million shares to raise approximately $176 million Bookbuild with an underwritten floor price at $2.90 per share Share purchase plan (“SPP”) SPP of up to $15,000 per eligible shareholder1 Capital raising objectives Fund new opportuniti
Slide 4: Capital Raising Objectives
Capital Raising Objectives 1. Fund new opportunities and strategic initiatives Various ‘bolt-on’ acquisitions are being considered NSW government tenders for Exploration Licences Acquire coal trains to support Whitehaven’s growth profile 2. Increase working capital to manage lumpy cashflows Final in
Slide 5: Whitehaven Snapshot
Whitehaven Snapshot ► One of Australia’s largest independent coal companies (market capitalisation of ~$1.3bn before capital raising) ► The leading coal producer and developer in the Gunnedah Basin – portfolio developed over a 10 year period ► Recent transactions have highlighted the value now being
Slide 6: Existing low-risk open cut production base with substantial organic growth from Narrabri project
Existing low-risk open cut production base with substantial organic growth from Narrabri project ► Four open cut mines producing 4Mtpa, with capacity up to 5Mtpa ► WHC has invested in rail track capacity upgrades to support growth plans ► Narrabri Stage 1 under construction ► Growth will be signific
Slide 7: Gunnedah Operations – 3 Open Cut Mines
Gunnedah Operations – 3 Open Cut Mines ► Gunnedah Operations – Open Cut Mines ► Tarrawonga Mine (WHC 70%) Permitted to 2.0 Mtpa ROM PCI & high quality thermal coals Saleable yield >90% ► Rocglen Mine (WHC 100%) Permitted to 1.5 Mtpa ROM PCI and thermal coals Saleable yield ~85% ► Sunnysi
Slide 8: Gunnedah Operations – CHPP and Rail
Gunnedah Operations – CHPP and Rail ► Gunnedah Operations Coal Handling & Preparation Plant (WHC 100%) Permitted to handle and rail 4.0 Mtpa Handles all coal from Tarrawonga, Rocglen and Sunnyside Approximately 50% of ROM coal washed Washed coal yield >80% Saleable yield >90% Not for relea
Slide 9: Werris Creek – Open Cut Mine
Werris Creek – Open Cut Mine ► Werris Creek Open Cut Mine (WHC 100%) Permitted to 2.0 Mtpa ROM PCI and thermal coals No washing…saleable yield 100% Own crushing and rail load-out Not for release or distribution in the United States or to US persons 8
Slide 10: Narrabri provides substantial growth
Narrabri provides substantial growth ► Narrabri Project (WHC 77.5%) Low ash, high energy, low sulphur thermal coal for the export market Surface facilities are nearly complete Drifts expected to reach the coal seam in late 2009 Longwall (Stage 2) to be installed in early 2011 Production of
Slide 11: WHC growth profile is being coordinated with infrastructure development
WHC growth profile is being coordinated with infrastructure development 1. Timing for stage 5 of the rail track upgrade is uncertain – it is expected that it will be completed in line with production requirements Not for release or distribution in the United States or to US persons 10
Slide 12: Rail infrastructure to meet Whitehaven growth
Rail infrastructure to meet Whitehaven growth Whitehaven (60%) and Idemitsu (40%) have sponsored Rail Infrastructure Corporation (RIC) and Australian Rail Track Corporation (ARTC) investment to increase rail track capacity Current track capacity is 6-7 train paths per day to Narrabri 5,400 tonne tra
Slide 13: Port infrastructure to meet Whitehaven growth
Port infrastructure to meet Whitehaven growth ► Existing Port Waratah Coal Services (PWCS) terminal ■ Ongoing capacity constraints at PWCS ■ PWCS has expansion plans to 145 Mtpa ► Newcastle Coal Infrastructure Group (NCIG) ■ Whitehaven owns 11% of NCIG...Stage 1 due to be commissioned in Q1 2010…in
Slide 14: Experienced Board & Management
Experienced Board & Management Director/Title Experience John Conde AO +30 years commercial experience Non-Executive Chairman Neil Chatfield +25 years in transport and resources Non-Executive Director industries Allan Davies +25 years coal industry experience Executive Director - Operations ► Direct
Slide 15: Outlook and positioning
Outlook and positioning Demand – Cyclical slowdown, but structural uptrend Global demand for thermal coal remains strong China currently importing much larger tonnages of Australian thermal coal, India following Supply – Constrained by infrastructure, general trend to higher production costs, slower
Slide 16: Near and medium term objectives
Near and medium term objectives 9 Continue to manage existing open cut operations efficiently 9 Deliver Narrabri on schedule and budget 9 Active exploration within Gunnedah lease/EL areas 9 Increase coal reserves and extend mine life at Werris Creek and Tarrawonga 9 Look for bolt-on acquisitions 9 G
Slide 17: Whitehaven market update
Whitehaven market update Strong performance for Q4, FY2009 (refer June quarterly report of 24 July 2009) ► Operations are performing well – record saleable coal production for the June quarter, up 36% on pcp ► Narrabri development is going well – stage 1 continues to progress on plan FY2009 earnings
Slide 18: Offer Details
Offer Details Institutional Placement Institutional placement to raise approximately $176 million 60.7 million shares representing 14.9% of existing shares on issue Bookbuild with an underwritten floor price at $2.90 per share New shares will rank equally with existing shares and will be entitled to
Slide 19: Capital Raising Timetable
Capital Raising Timetable Date Event 30 July ► Trading Halt 30 July ► Institutional Placement 31 July ► Details of Institutional Placement & SPP announced 4 August ► Record date for SPP participation 6 August ► Settlement of Institutional Placement shares 7 August ► Allotment and trading of Institut
Slide 20: Risks
Risks Coal sales Whitehaven derives its revenue from sale of coal. Its coal supply agreements are generally renegotiated annually. Difficulties encountered in those negotiations may adversely affect Whitehaven’s financial performance if the price that customers are willing to pay and/or the quantity
Slide 21: Selling Restrictions (Page 1 of 4)
Selling Restrictions (Page 1 of 4) United Kingdom Neither the information in this presentation nor any other document relating to the offer has been delivered for approval to the Financial Services Authority in the United Kingdom and no prospectus (within the meaning of section 85 of Financial Servi
Slide 22: Selling Restrictions (Page 2 of 4)
Selling Restrictions (Page 2 of 4) European Economic Area (which includes Belgium, the Netherlands and Germany) The information in this presentation has been prepared on the basis that all offers of Securities will be made pursuant to an exemption under the Directive 2003/71/EC (“Prospectus Directiv
Slide 23: Selling Restrictions (Page 3 of 4)
Selling Restrictions (Page 3 of 4) France The Securities are not admitted to listing on a regulated market in France and no such admission to listing in France is currently being considered. This presentation (including any amendment, supplement or replacement thereto) is not being distributed in th
Slide 24: Selling Restrictions (Page 4 of 4)
Selling Restrictions (Page 4 of 4) China The offering and sales of the Securities have not been and will not be approved by any relevant banking or securities regulatory authority of the People’s Republic of China (the “PRC”) to circulate or distribute publicly in the PRC in accordance with the Secu