Whitehaven Coal Limited · ASX:WHC
Whitehaven Coal — 2019 Global Metals, Mining & Steel Conference
34 slides from Whitehaven Coal's conference presentation, May 15, 2019
Slide 1: Whitehaven Coal – The Growth Mining Company
For personal use only WHITEHAVEN COAL LIMITED AUSTRALIA’S LEADING HIGH QUALITY COAL COMPANY 2019 Global Metals, Mining & Steel Conference Whitehaven Coal – The Growth Mining Company 14 – 16 MAY 2019
Slide 2: Disclosure
DISCLOSURE 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: Agenda
AGENDA AGENDA For personal use only – Whitehaven Snapshot – Outlook for Coal Use and Demand – Growth Assets – Operating Assets – Summary – Appendices 3 // 2019 GLOBAL METALS, MINING & STEEL CONFERENCE
Slide 4: Snapshot: Whitehaven – A Growth Company
SNAPSHOT WHITEHAVEN – A GROWTH COMPANY For personal use only GROWING PRODUCER OF HIGH QUALITY COALS FOR THE PREMIUM ASIAN MARKET Key Details ASX Code and Market Details WHC, 1,026m shares on issue, Market Cap A$4.3b, trades 120 million shares per month Narrabri U/G mine, Maules Creek, Tarrawonga, We
Slide 5: Snapshot: Location
SNAPSHOT LOCATION Winchester South For personal use only – Six mines in the Gunnedah Basin producing high energy thermal coal and metallurgical coal – All coal railed to Newcastle for export with access to two coal terminals – Vickery project near other mines in NSW – The recently acquired Wincheste
Slide 6: Coal Demand Outlook: History of Production Growth
COAL DEMAND OUTLOOK HISTORY OF PRODUCTION GROWTH For personal use only STRONG DEMAND GROWTH IN ASIA UNDERPINS WHITEHAVEN’S GROWTH PROFILE Saleable Production Actual and Forecast (Mt) – Whitehaven produced 5Mt of coal in 40 FY2012 growing to over 20Mt by FY2017 35 as both Narrabri and Maules Creek ra
Slide 7: Underpinning the Growth
UNDERPINNING THE For personal use only GROWTH
Slide 8: Coal Demand Outlook: Growth in Asia Pacific
COAL DEMAND OUTLOOK GROWTH IN ASIA PACIFIC For personal use only COAL DEMAND PROJECTED TO GROW STRONGLY IN WHITEHAVEN’S KEY MARKETS Coal Demand in Asia Pacific Region NPS – Under the New Policies Scenario (NPS), the IEA (Mtce) projects coal demand for both steel and electricity 5000 generation to in
Slide 9: Coal Demand Outlook: SE Asia Electricity Capacity
COAL DEMAND OUTLOOK SE ASIA ELECTRICITY CAPACITY For personal use only GENERATION CAPACITY OF ALL TYPES GROWS STRONGLY IN THE REGION Southeast Asia Generation Capacity (GW) – Under the NPS, the IEA projects that 700 South East Asian generation 600 capacity grows from 248GW in 2017 to 620GW in 2040 5
Slide 10: Growth Assets
For personal use only GROWTH ASSETS
Slide 11: Vickery Extension Project Status
GROWTH ASSETS VICKERY EXTENSION PROJECT STATUS For personal use only MOVING THROUGH THE REGULATORY PROCESS – Public display of EIS completed in September 2018 – 63% of 560 submissions were supportive – Department of Planning and Environment completed Preliminary Issues Report – Independent Planning
Slide 12: Winchester South: Strong Support from Queensland Government
GROWTH ASSETS WINCHESTER SOUTH For personal use only STRONG SUPPORT FROM QUEENSLAND GOVERNMENT – The Queensland Government has declared the project a “Coordinated Project” assisting the approval process – An Initial Assessment Statement provided to the Queensland Governrnent outlines to broad projec
Slide 13: Winchester South – Work Underway
GROWTH ASSETS WINCHESTER SOUTH – WORK UNDERWAY For personal use only A LARGE PROJECT LOCATED IN AN ESTABLISHED COAL MINING DISTRICT – The project has a JORC Resource of 530Mt, see ASX Release from October 2018 – Work has commenced on a quality drilling programme (large cores) to assist with Reserve
Slide 14: Operating Assets
For personal use only OPERATING ASSETS
Slide 15: Maules Creek
OPERATING ASSETS MAULES CREEK For personal use only WHITEHAVEN’S NEWEST AND LARGEST, LONG LIFE HIGH QUALITY COAL MINE – Commercial production began in July 2015 after two Maules Creek Saleable Coal Production (Mt) years of construction and capex of ~$720 million 10.0 – Mine produces metallurgical (S
Slide 16: Narrabri
OPERATING ASSETS NARRABRI For personal use only A HIGHLY PRODUCTIVE LOW COST UNDERGROUND MINE Narrabri Saleable Coal Production (Mt) – Commercial production began in 2012 8.0 – Mine produces PCI coal (sold to Indian steel mills) and a NewC Index (6,000k/cal), low 6.0 ash thermal coal – A 400 metre w
Slide 17: Narrabri Stage 3
OPERATING ASSETS NARRABRI STAGE 3 For personal use only LONG TERM OUTLOOK POSITIVE – FY2019 ROM coal production expected to be in the range of 5.6Mt to 6.0Mt increasing to the range of 6.2Mt to 6.6Mt in FY2020 – Conversion of the southern exploration licence at Narrabri into a mining lease commenced
Slide 18: Gunnedah Mines
OPERATING ASSETS GUNNEDAH MINES For personal use only STABLE PLATFORM OVER MANY YEARS – The Gunnedah mines comprise Werris Creek Gunnedah Open Cuts Saleable Coal Production (Mt) (2.1Mtpa), Rocglen (0.7Mtpa), Tarrawonga 6.0 (2.4Mtpa) and Sunnyside rehab project (0.4Mt) 5.0 – Reserves at Rocglen deple
Slide 19: Summary
For personal use only SUMMARY
Slide 20: Financial Performance: Key Financial Highlights – H1
FINANCIAL PERFORMANCE KEY FINANCIAL HIGHLIGHTS – H1 For personal use only STRONG FINANCIAL POSITION SUPPORTING GROWTH AMBITIONS H1 H1 Profit and loss Comment FY2019 FY2018* Net profit after tax (A$’m) 305.8 256.2 – Record result Underlying EBITDA before significant items (A$’m) 550.8 493.7 – Record
Slide 21: Shareholder Distributions
SUMMARY SHAREHOLDER DISTRIBUTIONS For personal use only RETURNING CASH TO SHAREHOLDERS Shareholder returns paid between November 17 – Whitehaven has committed to returning and March 19 (A$m) 198 793 9 excess cash to shareholders and does not intend to build cash on the balance sheet 268 – Total retu
Slide 22: Whitehaven's Production Profile
SUMMARY WHITEHAVEN’S PRODUCTION PROFILE For personal use only PRODUCTION FORECAST TO GROW WITH VICKERY & WINCHESTER SOUTH PROJECTS Whitehaven Saleable Coal Production Profile – Managed saleable coal production (100%, Mt) is forecast to grow strongly from 40 the startup of the Vickery and 35 Winchest
Slide 23: Summary: Whitehaven – A Growth Mining Company
SUMMARY SUMMARY For personal use only WHITEHAVEN – A GROWTH MINING COMPANY – Whitehaven has an actionable pipeline to fulfil its commitment to grow the company into the future – Whitehaven is targeting growth in Asian demand for energy – Demand for coal in Asia is expected to grow for decades as pro
Slide 24: Thank You
For personal use only THANK YOU www.whitehavencoal.com.au
Slide 25: Appendices
For personal use only APPENDICES
Slide 26: Winchester South Project
APPENDICES WINCHESTER SOUTH PROJECT For personal use only ACQUISITION OF HIGH QUALITY METALLURGICAL COAL PROJECT COMPLETED 26 //2019 GLOBAL METALS, MINING & STEEL CONFERENCE
Slide 27: Mine Summary Data: Maules Creek and Narrabri
APPENDICES MINE SUMMARY DATA For personal use only Key Attributes Maules Creek Open Cut Narrabri Underground Ownership WHC 75%, Itochu 15%, J Power 10% WHC 70%, J Power 7.5% 3 others each with 7.5% JORC Resources 620Mt 645Mt JORC Reserves Marketable Proved & Probable 440Mt Marketable Proved & Probab
Slide 28: Mine Summary Data: Tarrawonga and Werris Creek
APPENDICES MINE SUMMARY DATA For personal use only Key Attributes Tarrawonga Open Cut Werris Creek Open Cut Ownership WHC 100% WHC 100% JORC Resources 58Mt 15Mt JORC Reserves Marketable Proved & Probable 32Mt Marketable Proved & Probable 12Mt Estimated LOM ~12 Years ~7 years Approved ROM 3.0Mt 2.5Mt
Slide 29: Mine Summary Data: Rocglen and Sunnyside
APPENDICES MINE SUMMARY DATA For personal use only Key Attributes Rocglen Open Cut Sunnyside Open Cut Ownership WHC 100% WHC 100% JORC Resources 8Mt Minor Remnant Coal JORC Reserves Marketable Proved & Probable 1Mt Minor Remnant Coal Estimated LOM Production ends June 2019 Rehab Project Approved ROM
Slide 30: Project Summary Data: Vickery and Winchester South
APPENDICES PROJECT SUMMARY DATA For personal use only Key Attributes Vickery Open Cut Project Winchester South Open Cut Project Ownership WHC 100%, may form a JV by selling up to 30% WHC 100% JORC Resources 505Mt 530Mt JORC Reserves Marketable Proved & Probable 178Mt Reserves yet to be released Esti
Slide 31: Resources
APPENDICES RESOURCES For personal use only 31 //2019 GLOBAL METALS, MINING & STEEL CONFERENCE
Slide 32: Reserves
APPENDICES RESERVES For personal use only Note: See Competent Person Statement on Slide 2 32 //2019 GLOBAL METALS, MINING & STEEL CONFERENCE
Slide 33: Winchester Resources
APPENDICES WINCHESTER RESOURCES For personal use only Information in this report that relates to Coal Resources is based on and accurately reflects reports prepared by the Competent Person named beside the respective information. Troy Turner is the Managing Director of Xenith Consulting Pty Ltd. The
Slide 34: IEA New Policies Scenario
APPENDICES IEA NEW POLICIES SCENARIO For personal use only The New Policies Scenario provides a measured assessment of where today’s policy frameworks and ambitions, together with the continued evolution of known technologies, might take the energy sector in the coming decades. The policy ambitions
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