Whitehaven Coal Limited · ASX:WHC
Whitehaven Coal — UBS Australian Iron Ore & Coal Conference 2013
20 slides from Whitehaven Coal's conference presentation, Nov 27, 2013
Slide 1: UBS Australian Iron Ore & Coal Conference
Whitehaven Coal Limited A Growth Company UBS Australian Iron Ore & Coal Conference Sydney, Australia 27 November 2013
Slide 2: Disclaimer
Disclaimer 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 projections and any estimate
Slide 3: Agenda
Agenda Overview of Whitehaven Narrabri Project Update Maules Creek Project Update Valuation Outlook UBS Iron Ore & Coal Conference November 2013 3
Slide 4: History of Whitehaven Coal
History of Whitehaven Coal Whitehaven was established to develop the Canyon Mine (formerly Whitehaven Open 1999 Cut Mine) 2005 Werris Creek commenced construction 2006 Tarrawonga commenced production 2007 Remaining 60% of Werris Creek acquired 2007 ASX Listing of Whitehaven Coal 2008 Sunnyside comme
Slide 5: Future of Whitehaven Coal
Future of Whitehaven Coal “Creating the Premier ASX Listed Independent Coal Company” by transitioning from small open cut mines to large and highly productive Tier 1 coal mines UBS Iron Ore & Coal Conference November 2013 5
Slide 6: Founded on the Gunnedah Basin
Founded on the Gunnedah Basin Strong history of mining in the region Existing infrastructure – rail connection to the largest coal export port in the world. Local workforce and supportive communities High quality coals compared to other emerging coal basins • High CV • Low ash • Low phosphorus • Low
Slide 7: Gunnedah Basin Assets
Gunnedah Basin Assets Maules Creek (75%) • Reserves to support ~ 30 years • Permitted & Planned : 13 Mtpa ROM • SSCC and high energy thermal Narrabri North (70%) • Reserves to support ~ 25 years • Permitted : 8 Mtpa ROM • Planned : 6 Mtpa ROM • PCI & low ash thermal coals Tarrawonga (70%) • Reserves
Slide 8: Historical Production Growth
Historical Production Growth Whitehaven has been growing its production for a number of years and expects further growth this year (FY2014) with managed saleable coal production expected to be about 10.7Mt (8.4Mt equity share) The step up in FY2013 was due to the start of commercial production from
Slide 9: Narrabri Achievements
Narrabri Achievements Oct 12 Longwall commissioned CHPP mechanical completion and commenced trials of PCI Oct 12 into COREX markets Sufficient mine development in advance facilitates the Feb 13 reduction in development units from 4 to 3 PCI coals successfully trial into COREX markets with term Apr 1
Slide 10: Narrabri – Industry Leading Development
Narrabri – Industry Leading Development First longwall panel completed in June 2013 Underground development already complete for the third panel Mining in longwall panel 102 due to be finished in February 2014 with a 6 week changeout Monthly production has averaged 570kt in the second panel (annuali
Slide 11: Maules Creek the next Tier 1 Asset
Maules Creek the next Tier 1 Asset Formal approval received in July 2013. High quality Resources and Reserves can be mined at relatively low cost. Situated 17km from the main railway line and 380km from Newcastle Low strip ratio of 6.4:1 during the first 20 years Simple geology with multiple shallow
Slide 12: Maules Creek – mine location
Maules Creek – mine location The Maules Creek project is located about 17 kilometres off the main rail line near the small town of Boggabri A new rail line will be constructed by Leighton Contractors in about 13 months linking both the Boggabri Mine and Maules Creek Mine to the main line The Boggabr
Slide 13: Maules Creek – low capital cost
Maules Creek – low capital cost Capital spending for both metallurgical and thermal coal expansions is falling from the peak in 2012 indicating that coal markets should balance in the medium term The cost of adding new coal production increased significantly from 2008 to 2012 The capital cost of Mau
Slide 14: Maules Creek - project schedule
Maules Creek - project schedule Site Access Rail Construction CHPP Construction Box Cut First Coal to Trains 14 months to first coal railed Production to 6Mtpa ROM Production to 13Mtpa ROM CY Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2013 2014 2015 2016 Unchanged schedule UBS Iron Ore & Coal Confere
Slide 15: Implied Valuation – Maules Creek
Implied Valuation – Maules Creek Clermont Maules Creek Marketable Reserves Mt 170 329 Thermal Coal Quality Thermal RIO TINTO recently sold its 50.1% SSCC interest in the Clermont Mine to Annual Production Mt 12.2 12.0 GlencoreXstrata Strip Ratio Bcm/t 3.2 6.4 Project Capex (inc equipment) A$m’s 1207
Slide 16: Whitehaven valuation
Whitehaven valuation Whitehaven Maules Creek Investment Bank Valuation NPV $m’s ($/share) UBS $1,400 3.83 Morgan Stanley $951 2.30 Citi $2,311 3.21 The average investment bank valuation Deutsche Bank $1,515 2.63 for Whitehaven’s interest in the Maules Creek project is $1.19 per share Wilson HTM $1,3
Slide 17: Outlook - production growth
Outlook - production growth Following the development of the Maules Creek open cut mine production will double from the FY2014 level by FY2017 Additional port will be required in FY17 and beyond for Whitehaven to achieve its production targets Rocglen will close in FY2018 following Reserve depletion
Slide 18: Focus for FY 2014 and Beyond
Focus for FY 2014 and Beyond Creating the premier ASX listed independent coal company Focussed on improving safety and environmental performance across all of the operations Narrabri to produce 850kt of PCI coal and Newcastle benchmark thermal coal in FY 2014 and increase production to 6 Mtpa ROM fr
Slide 19: Creating the Premier ASX Listed Independent Coal Company
Creating the Premier ASX Listed Independent Coal Company A low-cost and high quality coal producer The fundamentals of coal as a long-term primary energy source are robust, driven by global population growth and increasing demand for steel and reliable low-cost energy in emerging economies Future en
Slide 20: Thank you
Thank you www.whitehavencoal.com.au
Whitehaven Coal — UBS Australian Iron Ore & Coal Conference 2013 on 6ix