Cokal Limited · ASX:CKA
Cokal — Investor Presentation (October 2013)
32 slides from Cokal's investor presentation, Oct 18, 2013
Slide 1: Investor Presentation October 2013
For personal use only Investor Presentation October 2013 1 Investor Presentation
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by the management of Cokal Limited (the Company) in connection with meetings with institutional investors, for the benefit of brokers and analysts and not as specific advice to any particular party or person. The information is based on publicly availab
Slide 3: Outline
Outline For personal use only BBM Project Corporate Description – Overview Priority Development Other Company Community Activity Development 3 Investor Presentation
Slide 4: Our Focus
Our Focus For personal use only Building a Global Metallurgical Coal Business Positive and Agile Decision Making Respect for all Stakeholders Ethical Decision Making Strong Indonesian Team Technical Skills for Innovative Solutions Results Orientated 4 Investor Presentation
Slide 5: Strong Board Coal Pedigree
Strong Board Coal Pedigree For personal use only Peter Lynch - Chairman and CEO, Mining Engineer, 25 years experience in mining; MIM, Shell Coal, MacArthur Coal, Open Cut & Underground, TSX and ASX:WCI. Pat Hanna - Executive Director, Geologist, over 30 years experience all coal; Globally consulting
Slide 6: Diverse & Experienced Management
Diverse & Experienced Management Yoga Suryanegara - Resource Manager Indonesia, Geologist, international experience, responsible for For personal use only overseeing multi-million dollar exploration programs in Queensland and Kalimantan; more than 10 years experience in Berau Coal (fifth largest ope
Slide 7: Executive Summary
Executive Summary Cokal Limited (CKA) Cokal Capital For personal use only • Listed on the ASX in December 2010 Structure • Developing Metallurgical Coal Projects in Central ASX Code CKA Kalimantan Shares on Issue 455.4M • Objective: Metallurgical coal producer by H1 2014 Options on Issue 22.1M Debt
Slide 8: Project Locations – Indonesia
PROJECT LOCATIONS – INDONESIA For personal use only 8 8 Investor Presentation
Slide 9: BBM & TBAR and BBP Tenements, Indonesia
BBM & TBAR and BBP TENEMENTS, INDONESIA For personal use only 9 9 Investor Presentation
Slide 10: BBM – Priority Project
BBM – Priority Project Advanced developm ent plan: For personal use only I n Feasibility phase Near term production High quality coking coal with Low cash significant upside operating cost potential Investment Highlights Experienced Management team with Flexible development a strong record of plans
Slide 11: BBM – Project Timeline
BBM – Project Timeline For personal use only Stage 2 is an aspirational plan. There is insufficient Resource to support this plan at present. Current logistics planning takes into account possible expansion at a time when Studies and data support such an expansion plan. 11 Investor Presentation
Slide 12: Study Outcomes
Study Outcomes Stage 1: Real NPV of $US497M (100% Project) For personal use only • Stand-alone Development ASSET DESCRIPTION Study at BBM recently Project BBM, Central Kalimantan, completed by SMEC Indonesia 77Mt • Capable of rapid expansion JORC Resources (70Mt Inferred + 7Mt Indicated) (Stage 2) J
Slide 13: Mine Costs
Mine Costs US$ Operating Cost US$ For personal use only Development Capital (Million) (excluding 7% Royalty) /t Avg Stage 1: Direct ship to start Stage 1: Direct ship to start 50 72.17 production production - Ramp up to 2Mtpa 50 - Average first 5 years 67.84 TOTAL 100 Stage 1 Stand-alone case (LOM)
Slide 14: BBM Approvals
BBM APPROVALS For personal use only Current Approvals IUP (Exploration), on ‘Clean & Clear’ List PT BBM approved Foreign Owned company (PMA status) Cokal Shareholding of PT BBM approved by BKPM (Central Government Foreign Investment Co-ordination Board) Exploration Forestry Permit (IPPKH Izi
Slide 15: On the Doorstep of the Biggest Met Coal Markets
ON THE DOORSTEP OF THE BIGGEST MET COAL MARKETS For personal use only Fastest and lowest cost shipping to key customers Dalandzangad Mongolia Coos Bay United S. Korea Japan Seoul China Seoul States Tokyo Shanghai India Guangzhou Mumbai Mumbai Mumbai Mumbai Vietnam China
Slide 16: Developing a New Coking Coal Province
DEVELOPING A NEW COKING COAL PROVINCE For personal use only Indonesian Coal Reserves 16 Investor Presentation
Slide 17: BBM Resources – 77Mt
BBM Resources – 77Mt1 For personal use only Resources by Seam Resources by Depth Seam Seam Indicated Inferred Total Depth Indicated Inferred Total Name Thickness Resources Resources Resources Range (m) Resources Resources Resources (m) (Mt) (Mt) (Mt) (Mt) (Mt) (Mt) J 1.40 7.0 10.0 17.0 0-50 4.0 8.0
Slide 18: BBM Premium Quality Coking and PCI Coal
BBM Premium Quality Coking and PCI Coal For personal use only Coal Quality / Coking of B, C, D and J Seams Low insitu-ash Inherent Volatile Fixed Total Calorific Relative allows direct Seam Ash CSN Phosphorus Moisture Matter Carbon Sulphur Value Density shipping potential B 0.5 12.6 15.5 73.1 0.23 7
Slide 19: BBM – Potential to Increase Resource Size
BBM – POTENTIAL TO INCREASE RESOURCE SIZE For personal use only Exploration Target1 of 200 – 350Mt down to 200m depth. This potential is in addition to the current 77Mt JORC Indicated and Inferred Resources Comprised of 13 Seams in the Eastern Block of BBM (40% of the tenement area) 19 Investo
Slide 20: Planned Mining Operations
Planned Mining Operations For personal use only Truck / Excavator Operation • Contractor operated • Direct Ship from Pit to Jetty Seam Outcrop on the Surface • Significant length of outcrop • J Seam ~ 1.4m thick • In-pit sizing / screening 20 Investor Presentation
Slide 21: Infrastructure and Transport
Infrastructure and Transport For personal use only Coal to be transported in three phases, accounting for ~ 774km from the mine site to the Java Sea • 55km haul road from mine to the Barito River • 500km down the Barito River to the Intermediate Stockpile Port at Kelanis • Ocean-going barges to tran
Slide 22: Truck Haulage
Truck Haulage • 55km road route, 2 For personal use only studies done • Detail work underway • Maximum grade planned @ 8% • All weather surface • 120t per truck planned • Dual trailer, side tipping proposal • Ease of loading, unloading, reliability • Excellent balance of operating and capital costs
Slide 23: Barge Loading
Barge Loading • Plan for direct load For personal use only from trucks to barges • Spare barges enable efficient system • Stockpiling capability • Front End Loader hoppers for re- loading from stockpile • Low capital, low operating cost • Minimises coal degradation 23 Investor Presentation
Slide 24: Shallow Draft Barges
Shallow Draft Barges • River designed barge system for safe, reliable For personal use only and economic transport • Indonesian system currently uses towed ocean going barges • Mississippi style allows flexibility, for manoeuvring and cargo sizes USA: 40,000 km of rivers; 2.7m draft; $5B economic im
Slide 25: Shallow Draft Barges
Shallow Draft Barges For personal use only • Stage 1 – 6,000t convoys (4 x 1,500t barges) – 500km • Shallow draft: down to 2.3m water level • 3 Studies completed • Full bathymetric survey of river • Daily river height data for over 10 years used • 6 tugs and barge sets for Tug and 4 Barge Convoy 2Mt
Slide 26: Deep Water Barge to Shiploader
Deep Water Barge to Shiploader For personal use only Deep Water Barges to Floating Crane in Java Sea • 12,000t now common (matches 2 x 6,000t upper river shallow barge convoys) • Matches common ship hatch size Operators • Many Barge operators at this point • Many Floating crane operators offshore •
Slide 27: Other Tenements
Other Tenements Central Kalimantan, INDONESIA For personal use only TBAR – Agreement signed 75/25 with local owners. 19,000ha adjoins BBM, which doubles the size of the exploration area available. Potential for BBM seams extend into TBAR Tenement is on the Clean and Clear List issued by the Dire
Slide 28: BBM Project Conclusions
BBM Project Conclusions For personal use only Low capital High quality Low operating investment coking product cost required Good margin Geographically Early and quick well production payback positioned Experienced Potential for Executive expansion team 28 Investor Presentation
Slide 29: Developing Infrastructure
Developing Infrastructure For personal use only Two river ports and two coal -fired power stations to facilitate metallurgical coal production Working together for mutual benefit with the Murung Raya Regency Dr Willy Yoseph (Head of Regency), Jim Middleton (Cokal) and Domenic Martino (Cokal Director
Slide 30: Corporate Social Responsibility
Corporate Social Responsibility For personal use only Local Schools • Assisted with materials and labour to make repairs to the Tumbang Tuan Village Jnr Elementary School • Provided an emergency generator to ensure reliable electricity for the local school • Sponsored four teachers for the Tumbang T
Slide 31: Project Location – West Kalimantan, Indonesia
Project Location West Kalimantan, INDONESIA For personal use only Cokal 75.2% interest in PT Silangkop Nusa Raya (SNR) Three IUPs in Singtang Regency, West Kalimantan covers an area of 13,000ha Outcrop samples show high volatile, low ash, moderate sulphur and low phosphorus coking coal 31 Investor P
Slide 32: Summary
Summary For personal use only Executive Team with strong track record Plans for High Margin becoming a Metallurgical Coal Significant confirmed Metallurgical Coal Producer Assets with Good Plans to develop Potential the portfolio BBM on track for production in 2014, with significant upside potential