Stanmore Resources Ltd · ASX:SMR
Stanmore Resources — Stanmore Coal — Conference Presentation (January 2013)
26 slides from Stanmore Resources's conference presentation, Jan 30, 2013
Slide 1: Australian Thermal Coal Markets Outlook
For personal use only Australian Thermal Coal Markets Outlook Speaker: Mr Nick Jorss Managing Director – Stanmore Coal Limited Speaker: Date: Mr Nick Jorss 30 January 2013 Time: 9.00am Director – Stanmore Coal Limited Managing Date: Location: 30 January Hilton 2013 Hotel, Singapore Time: 9.00am Loca
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: Index
Index For personal use only 1. Background to Stanmore Coal Limited 2. Developing Queensland Basins – What is next? 3. Current resource, production and export targets 4. What role are freight rates playing in Australian thermal coal exports? 5. Strategies to remain competitive Speaker: Mr Nick Jorss
Slide 4: Stanmore Coal Background
Stanmore Coal Background Stanmore Coal is an ASX listed coal explorer and developer that For personal use only understands the dynamics of thermal and coking coal basins in Australia: Owns 100% of The Range Project located in Surat Basin. Bankable Feasibility Study close to completion End user c
Slide 5: About Stanmore Coal
About Stanmore Coal For personal use only ASX code - SMR 94Mt of JORC 975-1,498 Mt(2) of Attractive pipeline Share price - A$0.19(3) Marketable additional of Queensland Reserves(1) exploration target coal projects at Mkt cap - $39.5m(3) various stages of Cash - A$32.4m(4) 686.2Mt of JORC c.75%
Slide 6: Queensland Coal Basins
Queensland Coal Basins Bowen (established) For personal use only Established world class coking coals Many large, diversified resources companies operate in the region Numerous Stanmore coking and thermal coal projects Surat (developing + established) High energy export thermal Clean burni
Slide 7: Belview Coking Coal Project
Belview Coking Coal Project 100% owned Substantial coking coal project in heart of the Bowen For personal use only Basin near existing infrastructure. Initial JORC Inferred Resource 95Mt(1) Acquisition of EPC1186 provides access to shallower coking coal and significant increase in Exploration Ta
Slide 8: The Range Thermal Coal Project
The Range Thermal Coal Project 100% owned For personal use only 5Mtpa open cut export thermal coal mine over 26 years Bankable feasibility study nearing completion ML grant expected 2H, 2013 Adjacent to Xstrata’s Wandoan project - “World’s best undeveloped thermal coal mine”(3) Surat Basin
Slide 9: Developing Queensland Basins – What is next?
For personal use only Developing Queensland Basins – What is next? Speaker: Mr Nick Jorss Managing Director – Stanmore Coal Limited Date: 30 January 2013 Time: 9.00am Location: Hilton Hotel, Singapore
Slide 10: Developing Queensland Coal Basins – Surat Basin
Developing Queensland Coal Basins – Surat Basin Key Facts For personal use only Northern Surat: +400km (via Surat Basin Rail to Gladstone) Distance to port Southern Surat: +250km via Port of Brisbane High energy export thermal coal Typical product 6,000-6,800kcal/kg (ad basis) 9-16% ash (ad basis) P
Slide 11: Coal Quality – Surat Basin (Walloon Coal Measures)
Coal Quality – Surat Basin (Walloon Coal Measures) Surat Basin coals are typically high energy, clean burning coals featuring low impurities and emissions. For personal use only “The Range” Product Specification(1) Gold Silver Comment(1) Ash (%) 10.0 16.0 Low ash product Energy (kcal/kg, a.d.) 6,4
Slide 12: Coal Quality – Surat Basin (Walloon Coal Measures)
Coal Quality – Surat Basin (Walloon Coal Measures) Very low carbon in ash For personal use only Carbon in Ash 20 30.6 19.9 Fly ash is attractive to down-stream users 18 16 WALLOON 14 Carbon in Ash (%) 12 COALS 10 8.6 7.8 7.5 8 6.9 6.5 6.3 6.5 6 6 5 5.3 5.3 5.1 5.1 5.2 4.6 4.7 4.4 4.1 4 4 3.3 3.4 2
Slide 13: Coal Quality – Surat Basin (Walloon Coal Measures)
Coal Quality – Surat Basin (Walloon Coal Measures) Low NOx emissions Low NOx emissions typical due to high VM and low Nitrogen Estimated NOx Emissions For personal use only 240 220 Estimated NOx (ppm, at 6% O2) 200 180 Surat & Moreton Coals Other World Coals 160 NSW Coals Other Queensland Coals 14
Slide 14: Developing Queensland Coal Basins – Galilee Basin
Developing Queensland Coal Basins – Galilee Basin Key Facts For personal use only Distance to port +495km to Abbot Point Moderate energy thermal coal Typical product 4,900-6,300kcal/kg (ad basis) 9-20% ash (ad basis) Potential output +200Mt Alpha (GVK/Hancock) Carmichael (Adani) Galilee Coal (Warata
Slide 15: Current resource, production and export targets
For personal use only Current resource, production and export targets Speaker: Mr Nick Jorss Managing Director – Stanmore Coal Limited Date: 30 January 2013 Time: 9.00am Location: Hilton Hotel, Singapore
Slide 16: Energy Demand is driven primarily by Asia…
Energy Demand is driven primarily by Asia… For personal use only Speaker: Mr Nick Jorss Managing Director – Stanmore Coal Limited Date: 30 January 2013 Time: 9.00am Location: Hilton Hotel, Singapore Source: Wood Mackenzie Global Energy & Metals Forum 2012 16
Slide 17: … with the bulk of supply coming from Pacific basin coal
… with the bulk of supply coming from Pacific basin coal IEA forecasts coal demand to grow 65% by 2035, overtaking oil as the largest supply of energy Demand for energy coal, as a For personal use only result of increased power- generation requirements, will be met by the seaborne market Thermal
Slide 18: QLD coals in particular will fill the supply gap
QLD coals in particular will fill the supply gap Australia will increase its share of the export market… Australian coals will increase their share of For personal use only the global seaborne market from 20% to 28% due to factors such as: superior coal quality; proximity to end-user market (A
Slide 19: What role are freight rates playing in Australian thermal coal exports?
For personal use only What role are freight rates playing in Australian thermal coal exports? Speaker: Mr Nick Jorss Managing Director – Stanmore Coal Limited Date: 30 January 2013 Time: 9.00am Location: Hilton Hotel, Singapore
Slide 20: Long term freight rate fundamentals favour Australian coal
Long term freight rate fundamentals favour Australian coal Recent freight rate pricing has been volatile with historic freight differentials less pronounced… In the short term, low freight rates, when For personal use only Shipping rates from export origin to China(1) combined with low natural gas
Slide 21: Strategies to remain competitive
For personal use only Strategies to remain competitive Speaker: Mr Nick Jorss Managing Director – Stanmore Coal Limited Date: 30 January 2013 Time: 9.00am Location: Hilton Hotel, Singapore
Slide 22: Long term competitive position for Australia
Long term competitive position for Australia QLD port under construction – Wiggins Island For personal use only High quality, high energy coal with favourable clean burning characteristics Close proximity to target Asian markets Substantial current and planned infrastructure to transport coal
Slide 23: Summary
Summary For personal use only 1 Pipeline of Queensland coal projects within key coal basins 2 On the path to becoming a significant coal producer 3 Access to market through development of infrastructure parallels proposed mine developments in the basin 4Speaker: Mr Nick Focused on delivering Jorss l
Slide 24: Supplementary Slides
For personal use only SUPPLEMENTARY SLIDES Speaker: Mr Nick Jorss Managing Director – Stanmore Coal Limited Date: 30 January 2013 Time: 9.00am Location: Hilton Hotel, Singapore
Slide 25: Reserves, Resources and Targets
Reserves, Resources and Targets For personal use only JORC JORC JORC Measured JORC Indicated JORC Inferred Total JORC Additional Exploration Project Marketable Coal Recoverable Resource (1) Resource (1) Resource (1) Resource (1) Target (3) Reserve (1) (2) Coal Reserve (1) (2) Low High The Range Ther
Slide 26: For personal use only
For personal use only Speaker: Mr Nick Jorss Managing Director – Stanmore Coal Limited Date: 30 January 2013 Time: 9.00am Location: Hilton Hotel, Singapore
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