Stanmore Resources Ltd · ASX:SMR
Stanmore Resources — Stanmore Coal — Investor Presentation (May 2011)
30 slides from Stanmore Resources's investor presentation, May 16, 2011
Slide 1: Asian Investor Presentation May 2011
For personal use only ASIAN INVESTOR PRESENTATION May 2011
Slide 2: Important information
Important information For personal use only This document has been prepared by Stanmore Coal Limited (“Stanmore Coal”) for the purpose of providing a company and technical overview to interested analysts/investors. None of Stanmore Coal, nor any of its related bodies corporate, their respective dire
Slide 3: Stanmore Coal overview
Stanmore Coal overview For personal use only • Coal exploration and development company • Currently drilling a significant, fully funded program to test exploration targets • All projects 100% owned • 318 Mt JORC Inferred Resource with drilling underway to upgrade classification • First coal product
Slide 4: Current Inferred Resource and exploration targets
Current Inferred Resource and exploration targets For personal use only Project JORC Inferred Resource (1) Exploration Target (2) Low High Mackenzie Coking 99 70 80 The Range Thermal 219 Tennyson Thermal/Coking 220 290 Totals 318 290 370 Additional Exploration Projects Belview Coking Kerlong Coking/
Slide 5: Continued performance and activity
Continued performance and activity For personal use only Coal seams Wet Season intercepted $1.50 Capital raising at Tennyson $1.40 $1.30 Initial Inferred Mackenzie Resource at Inferred $1.20 The Range Resource2 $1.10 Drilling Tennyson Upgrade at Concept Mining Lease resumes $1.00 desktop study The R
Slide 6: Stanmore Coal ownership status
Stanmore Coal ownership status For personal use only Key Metrics ASX Code SMR Shares on issue 124m Retail, Private Current share price1 A$1.21 and Other Board and 46% Mgmt Market Capitalisation A$150m 33% Cash Position2 A$23.7m (no debt) Shareholders St Lucia Resources 25.4% Comet Vendors Stephen Bi
Slide 7: Strong Board and Management Team
Strong Board and Management Team For personal use only NEVILLE SNEDDON NICK JORSS STEPHEN BIZZELL VIV FORBES Chairman Managing Director Director Director Mining engineer with 37 years experience 20 years in engineering, project Extensive experience in commercialising Over 40 years of Bowen Basin coa
Slide 8: Exposed to high growth markets
Exposed to high growth markets For personal use only 140.0 Global Coking Coal Demand Growth1 (Mt) Global Thermal Coal Demand Growth1 (Mt) 120.0 300 100.0 250 200 80.0 150 60.0 100 40.0 50 20.0 ‐ 0.0 2010F 2011F 2012F 2013F 2014F 2015F 2010F 2011F 2012F 2013F 2014F 2015F (50) Europe China India Other
Slide 9: A clear path to the customer
A clear path to the customer For personal use only All projects are located adjacent to existing or planned rail and port facilities 9
Slide 10: Mackenzie Project
Mackenzie Project For personal use only Bowen Basin – 100% owned • Open pit coking coal • Currently 99Mt JORC Inferred Resource with further drilling underway • Located on existing railway line to coal ports at Gladstone • 25km of strike (Burngrove Formation) • Adjacent to Aquila Resources’ advanced
Slide 11: Mackenzie Drilling underway
Mackenzie Drilling underway For personal use only Currently drilling with two rigs Aquarius Washability (Fl 1.50 adb) • 26 hole program to upgrade existing resource to Indicated level Coking Properties • Program will also test exploration target2 of 70–80Mt in northern area and Leo seam CSN (ave) 6.
Slide 12: Mackenzie – path to production
Mackenzie – path to production For personal use only Mackenzie: 2011 2012 2013 2014 2015 Indicative Development Plan * Year 2 Year 3 Year 4 Year 5 Year 6 Item Activity Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep 1 ML/EA application 2 EIS 3 Notification & approvals pro
Slide 13: Infrastructure for Mackenzie and The Range
Infrastructure for Mackenzie and The Range For personal use only Rail Port Mackenzie (2 Mtpa) • Participating in Wiggins Island Coal • Existing Queensland Rail Blackwater Terminal (WICET) Gladstone – Stage II line to Gladstone planned expansion (2015) • Upgrade planned in line with WICET 310 km • Ba
Slide 14: The Range Project
The Range Project For personal use only Surat Basin – 100% owned • Export quality thermal coal • 219 Mt JORC Inferred Resource • Open pit mine planned producing 5Mtpa of high energy thermal coal from 1H 2015 • Conceptual mining study completed • NPV of A$298m at US$95/t1 • NPV of A$532m at US$105/t1
Slide 15: The Range Project – conceptual mining study results
The Range Project – conceptual mining study results For personal use only Cost estimates Opportunity for FOB Reduction Owner/ Contract • Bypass coal – clean coal which does not 12% Product Operator Mining require washing. Recent drilling results Ash Case Option Option support this including: Develop
Slide 16: The Range Project Drilling resumed
The Range Project Drilling resumed For personal use only Infill drilling recommenced following wet season • 28 hole program to obtain Indicated Resources around 30% complete • Results are generally as anticipated • Recent drilling results support the potential for selective bypass of the washplant •
Slide 17: Environmental and infrastructure work in progress
Environmental and infrastructure work in progress For personal use only EIS studies commenced and include: Site infrastructure study commenced • Soil and landform assessment including: • Hazard and risk • Water • Ground water monitoring • Power • Visual impact • Transport corridor to SBR • Flood ass
Slide 18: The Range Project – first coal targeted for H1 2015
The Range Project – first coal targeted for H1 2015 The Range 2011 2012 2013 2014 2015 For personal use only Indicative Development Plan* Year 2 Year 3 Year 4 Year 5 Year 6 Item Activity Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun 1 ML/EA application 2 EIS 3 Notifications
Slide 19: Tennyson Project
Tennyson Project For personal use only Bowen Basin (100% owned) (Previously Emerald) • Targeting underground coking and export thermal coal • Early drill intersections include: • 2.7m Aries Seam (Rangals) • 2.6m Corvus Lower Seam (German Creek) • Early results from Rangals comfortably support the Ex
Slide 20: Belview Project
Belview Project For personal use only Bowen Basin (100% owned) • Drilling commencing at underground prime coking coal target • Potential for significant deposit of underground prime coking coal • Target seams mined in nearby Cook Colliery and Leichhardt Colliery and shown to extend into EPC with sea
Slide 21: Kerlong Project
Kerlong Project For personal use only Bowen Basin (100% owned) • Targeting underground coking/PCI coal • Targeting high quality, underground coking and PCI coal • Target seams mined nearby including: • Burton (Peabody) • South Walker Creek (BHP Mitsubushi) • Carborough Downs (Vale) • Coppabella (Mac
Slide 22: New Cambria Project
New Cambria Project For personal use only Bowen Basin (100% owned) • Targeting low-volatile PCI coal • Targeting low-volatile, low to medium ash PCI coal along structural trend from Yarabee Mine (Felix Resources/Yancoal) • High energy (7,200+ kcal/kg) coal mined historically at adjoining Excel Colli
Slide 23: Key milestones – next months
Key milestones – next 12 months For personal use only Q2 2011 Q3 2011 Q4 2011 H1 2012 2015 • Resource drilling • Resource upgrade • Mining Lease • Target financial • First coal Mackenzie and Mackenzie (additional application at close for WICET 2 production exploration target1 of The Range Mackenzie
Slide 24: Pipeline of projects
Pipeline of projects For personal use only The Range 2011 2012 2013 2015 Mackenzie 2011 2012 2013 2015 Tennyson 2011 Belview 2011 Kerlong 2011 New Cambria 2011 Pre-feasibility Feasibility Exploration Development Production study study 24
Slide 25: Production profile versus market capitalisation
Production profile versus market capitalisation For personal use only • Targeting significant production of 7Mtpa • Pipeline of additional projects aiming to grow production profile over time 10 10 Other Projects 9 9 Market Capitalisation (A$ billion) 8 8 Targeted annual production (Mt) 7 7 6 6 5 5
Slide 26: Summary
Summary For personal use only • Mackenzie and The Range projects targeting production from 2015 • Five Bowen Basin exploration projects, predominantly coking coal • Current total JORC Inferred Resource 318Mt with additional exploration target of 290 – 370Mt1 • Strong Board and management team experi
Slide 27: Supplementary Slides
For personal use only Supplementary Slides 27
Slide 28: The Range Project – Export Thermal Coal
The Range Project – Export Thermal Coal For personal use only Key coal parameters Product Quality 10% ash 12% ash option (adb) option • Average total coal thickness 6.1m (max. 9.0m) Energy • Coal depth: 9m–100m; and continues at kcal/kg 6,470 6,280 depth Btu/lb 11,650 11,300 • Dips at 1° to west Ash
Slide 29: The Range Project – Conceptual Mining Study key metrics
The Range Project – Conceptual Mining Study key metrics For personal use only Plant Yield ROM Strip Ratio 80% 7.4 64% 68% 69% 68% 68% 67% 8.0 6.6 6.5 6.6 6.6 63% 63% 6.1 5.6 5.6 60% 6.0 40% 4.0 20% 2.0 0% ‐ 2015 2016 2017 2018 2019 2020 2021 LOM 2015 2016 2017 2018 2019 2020 2021 LOM FOB Cost1 $77.8
Slide 30: The Range Project site layout
The Range Project site layout For personal use only • Three options for Coal Handling and Prep Plant (CHPP) location • 20 - 27km transport link to Surat Basin Rail • Twin pits mined in parallel • 18 year mine life 30