Stanmore Resources Ltd · ASX:SMR
Stanmore Resources — Stanmore Coal — Noosa Mining Conference 2016
22 slides from Stanmore Resources's conference presentation, Jul 21, 2016
Slide 1: Delivering Value: Australia's newest coking coal producer
DELIVERING VALUE For personal use only Successful transition to Australia’s newest coking coal producer Investor Presentation Noosa Mining Conference July 2016
Slide 2: Important Information
IMPORTANT INFORMATION For personal use only This document has been prepared by Stanmore Coal preparation of forward looking statements, such The information in this report relating to coal resources for Limited (“Stanmore Coal”) for the purpose of providing a statements, opinions and estimates are b
Slide 3: Delivering value as Australia's newest coking coal producer
STANMORE COAL DELIVERING VALUE AS AUSTRALIA’S NEWEST COKING COAL PRODUCER For personal use only ONLY ASX-LISTED MET COAL PURE PLAY ✓Re-commencement of mining achieved Isaac Plains Coal Mine officially re-opened by Queensland State Premier in May 2016. Recommissioning of dragline, washplant and gener
Slide 4: Coking Coal: An Essential Resource for the Future
COKING COAL AN ESSENTIAL RESOURCE FOR THE FUTURE For personal use only Queensland’s Bowen Basin is the largest exporter of high quality export coking coal to the global steel industry. Each tonne of new steel requires 800kgs of coking coal1. Stanmore is producing coking coal in each month sufficient
Slide 5: Stronger Pricing Outlook
STRONGER PRICING OUTLOOK RECENT STRENGTH IN COKING COAL MARKET For personal use only Historical spot coking and thermal coal price Japanese contract prices have settled with 2 consecutive quarters of increases – hard coking coal up USD 11.50/t, semi soft coking coal up USD 8/t from the bottom Co
Slide 6: The Tightly Held Bowen Basin
THE TIGHTLY HELD BOWEN BASIN STANMORE IS THE ONLY ASX LISTED MET COAL PRODUCER IN QUEENSLAND For personal use only 6
Slide 7: Isaac Plains - A Transformational Investment
For personal use only ISAAC PLAINS - A TRANSFORMATIONAL INVESTMENT 7
Slide 8: Transaction Highlights
TRANSACTION HIGHLIGHTS For personal use only Two strategic transactions completed in 2015 to present multiple pathways to enhance shareholder value Established coking coal mine with existing infrastructure Adjacent low strip ratio resource Delivered without dilution to existing shareholders
Slide 9: Isaac Plains Coking Coal Mine Transaction Overview
ISAAC PLAINS COKING COAL MINE TRANSACTION OVERVIEW For personal use only ACQUISITION OF ESTABLISHED TRANSACTION MET COAL MINE OVER $350M REPLACMENT VALUE OF AQUIRED ASSETS COMPLETED Existing open-cut operation Dragline - Bucyrus BE1370 commenced production in 2006 500tph Coal Handling and Prep
Slide 10: Isaac Plains East: Low Strip Ratio, Adjacent Resource
ISAAC PLAINS EAST LOW STRIP RATIO, ADJACENT RESOURCE For personal use only Acquired from Peabody Energy in July 2015 Coking coal adjacent tenures – improved coking properties and coking fraction compared to existing Isaac Plains operation Low strip ratio coal starting <6:1, average over first
Slide 11: Combined Isaac Plains Complex
COMBINED ISAAC PLAINS COMPLEX SIGNIFICANT SYNERGIES & MINE LIFE OPTIONS For personal use only Growth opportunities to utilise Isaac Plains infrastructure including underutilised CHPP and rail loop CURRENT ISAAC PLAINS OPEN CUT 3 years at 1.5mtpa ROM production rate ISAAC PLAINS EAST – OPEN CUT EXT
Slide 12: Creating a Low Cost Operation
CREATING A LOW COST OPERATION ISAAC PLAINS COSTS REDUCED BY 35%1 For personal use only ISAAC PLAINS MINE – OPTIMISED Global seaborne coking coal cost curve – 2016 Right sized production for dragline 200 and mine nTotal Cash Competitive mining costs locked in via Cost 150 three year contract Isaa
Slide 13: Production Update
PRODUCTION UPDATE ISAAC PLAINS OPERATIONS For personal use only Safety record strong – no lost time injuries to date 156kt over 5 shipments sailed in June quarter, no issues achieving product specifications of buyers. Anticipate >9 shipments in September quarter Overburden and coal mining acti
Slide 14: Our Contribution
OUR CONTRIBUTION Stanmore Coal is a Queensland Company that takes its responsibilities seriously For personal use only JOBS 150 jobs in the Isaac region created by the mine restart ROYALTIES Over $7m per year of payments to the State with potential to increase THE ENVIRONMENT Macroinvertebrate s
Slide 15: Delivering on Key Milestones
DELIVERING ON KEY MILESTONES CURRENT MARKET CAP: A$59M For personal use only Acquire Acquire Optimise IP Sign Additional Isaac Isaac mine plan to Offtake for JORC Plains Plains reduce coking coal Resources East for $1 production with leading & Extension cost by 35% – Asian Reserves 0.4 award mining
Slide 16: Value Drivers: Upcoming Milestones and Opportunities
VALUE DRIVERS UPCOMING MILESTONES AND OPPORTUNITIES For personal use only Complete ramp up to steady state production in September quarter Finalise submission for low cost Isaac Plains East mining lease application, lodgement in Dec 2016 quarter Assess potential underground mining in eastern z
Slide 17: Appendices
For personal use only APPENDICES 17
Slide 18: Strong Board and Management Team
STRONG BOARD AND MANAGEMENT TEAM For personal use only Over 150 years of coal exploration, development and operational experience KEY MANAGEMENT Nick Jorss Mike McKee Andrew Roach Nigel Clifford Managing Director Chief Operating Officer Chief Financial Officer Senior Geologist 20 years in engineerin
Slide 19: Overview of Stanmore Coal
OVERVIEW OF STANMORE COAL For personal use only Queensland based coal Advanced metallurgical Highly experienced Board Low overhead cost base development company, and thermal coal and management team Actively pursuing further successful transition to development projects in with proven trac
Slide 20: Overview of Stanmore Assets
OVERVIEW OF STANMORE ASSETS For personal use only BOWEN BASIN – Coking Coal MACKENZIE – 85% ISAAC PLAINS – 100% Coking Coal Total Resources 143 Mt Total Resources 48.2 Mt Exploration Total Reserves 5.0 Mt Operating asset SURAT BASIN – Thermal Coal ISAAC PLAINS EAST – THE RANGE – 100% 100
Slide 21: High Quality Coking Coal
HIGH QUALITY COKING COAL ISAAC PLAINS COAL - PRE-SOLD TO MAJOR ASIAN STEEL MAKERS For personal use only JPY 2016 contracts signed with top tier Parameter1 Isaac Plains Isaac Plains Japanese and Korean steel mills on annual East (Indicative) benchmark contracts for 900,000t of coking coal (fully so
Slide 22: Global Cost Curve Support
GLOBAL COST CURVE SUPPORT MACRO FACTORS SUPPORT A POSITIVE OUTLOOK FOR METALLURGICAL COAL For personal use only INCENTIVE PRICE FOR METALLURGICAL COAL PROJECTS Incentive price curve (US$/TONNE, 15% IRR) shows almost no new projects would 350 nAustralia be developed in 25% < US$126/t 50% > US$145/t