Cokal Limited · ASX:CKA
Cokal — Shareholder Meeting (November 2018)
38 slides from Cokal's shareholder meeting presentation, Nov 30, 2018
Slide 1: AGM CEO Presentation
AGM For personal use only CEO PRESENTATION 30 November 2018 1 AGM November 2018
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 For personal use only analysts and not as specific advice to any particular party or person. The information is bas
Slide 3: Outline
Outline For personal use only 1 Organisation structure 2 Potential partners 3 BBM development 4 Shallow draft barging Page 3 AGM November 2018
Slide 4: Organisation Structure
Organisation Structure For personal use only 1 Organisation structure Page 4 AGM November 2018
Slide 5: Organisation Structure - CEO
Organisation Structure - CEO For personal use only Jim Coleman • 50 years experience in open cut and underground mining including mine management, project development and operations • Integrated project development in Australia, Mozambique, Thailand, The Philippines, India and throughout SE Asia Pag
Slide 6: Organisation Structure - CEO
Organisation Structure - CEO For personal use only Jim Coleman • Evaluated 500 km shallow water barging on the Zambezi River in Mozambique • Hands on knowledge of most mining methods • Reputation for innovative yet practical solutions • Ability to lead a multi-faceted technical and operating team in
Slide 7: Organisation Structure
Organisation Structure For personal use only Domenic Martino, Pat Hanna, Garry Kielenstyn Board of Cokal Limited Sec. Louisa Youens Jim Coleman CEO CFO Govt Relations Finance Manager Mine Site Manager LT Mine Planning Chief Geologist Consultant Consultant Community Relations Administration Contract
Slide 8: Organisation Structure: Sydney Office
Organisation Structure For personal use only Sydney Office • Cokal Chairman • Non Executive Director • CFO • CEO (time split between Sydney and Jakarta) Page 8 AGM November 2018
Slide 9: Organisational Structure: Jakarta Office
Organisational Structure For personal use only Jakarta Office • CEO (time split between Sydney and Jakarta) • Finance Manager • Chief geologist • Long Term Mine Planning • Garry Kielenstyn – Adviser on Indonesian Affairs Page 9 AGM November 2018
Slide 10: Organisational Structure: Mine Site
Organisational Structure For personal use only Mine Site • Mine Site Manager • All mine staff report directly to Mine Site Manager • Mine staff work 6 weeks on 2 weeks off • Mine staff work 6 days a week Page 10 AGM November 2018
Slide 11: Potential Partners
Potential Partners For personal use only 2 Potential Partners Page 11 AGM November 2018
Slide 12: Potential Partners: Aahana Global Resources
Potential Partners For personal use only 1. Aahana Global Resources & Investment Pte Ltd • Negotiated by Principal Karan Bangur • Site visit undertaken • Moving to secure its position Page 12 AGM November 2018
Slide 13: Potential Partners: PT Bara Mineral Asri (BMA)
Potential Partners For personal use only 2. PT Bara Mineral Asri (BMA) • BMA has indicated its desire to partner with BBM for mine development and operation • BMA will separately purchase shares in Cokal • Due Diligence commenced, 2 drill rigs on site to undertake 2,000m drilling • Technical and com
Slide 14: BMA (continued)
Potential Partners For personal use only BMA (continued) Cokal informed BMA: Ø Existing port flawed but functional in short term Ø Cokal will develop Krajan port 4kms from existing port to avoid rocky outcrops Ø Purnama port and 52km road not required Ø Blending stockpile at Krajan on BBM lease Ø Kr
Slide 15: Potential Partners: Meratus Advance Maritime
Potential Partners For personal use only 3. Meratus Advance Maritime (MDM) • Confirmed desire to cooperate in shallow draft barging • Agreed to renew relevant agreements • Cokal informed MDM that Purnama port no longer required • MDM committed to try to secure appropriate shallow draft vessels to us
Slide 16: Potential Partners: LG International
Potential Partners For personal use only 4. LG International • Met with Head of Coal Investment Team 1 in the Coal Business Division of LG International • LG Group expressed interest in developing BBM and investing in Cokal • Explained Cokal is in DD period with another investor and partner for Coka
Slide 17: Potential Partners: Sojitz
Potential Partners For personal use only 5. Sojitz • Cokal and Sojitz have close relationship since Cokal inception • Sojitz signed a LOI to market BBM coal products • Target Asian markets including Japan, Korea, India, China and Vietnam Page 17 AGM November 2018
Slide 18: Potential Partners: Others in Contact
Potential Partners For personal use only 6. Others in Contact 6.1 PT Toyota Tsusho Indonesia (TT) Ø Trades in niche markets Ø Trades 2.5 – 3Mt/yr from Indonesia Ø Shipments to Japan viable in dedicated 6kt vessels 6.2 PT Mitsubishi Corporation Ø Marketing Senior Manager Metals Group expressed intere
Slide 19: BBM Development
BBM Development For personal use only 3 BBM Development 3 Page 19 AGM November 2018
Slide 20: BBM Development
BBM Development For personal use only BBM Development • STAGE 1 – 7,500 tonnes* per month from Pit 2 in Q1 2019 • STAGE 2 – Commission Krajan Port and mine coking coal from Pit 3 in Q3 2019 • STAGE 3 – Expand to 166,000 tonnes* per month (2mtpa) by Q4 2020 *Refer to media release “COKAL ANNOUNCES RE
Slide 21: Stage 1 – Develop Pit
BBM Development STAGE 1 – Develop Pit 2 For personal use only • Construct 800m road to temporary port • Mine PCI coal in Strip 1 Pit 2, free dig, 7,500 tonnes*/ month in Q1 2019 • Strip 2 Pit 2 not free dig but can rip overburden • Strip 2 design dependent on geotechnical analysis within DD • Obtain
Slide 22: BBM Pit Access Road
BBM Development BBM Pit 2 Access Road For personal use only Page 22 AGM November 2018
Slide 23: Barito River near BBM Pit and Temporary Port Site
BBM Development Barito River near BBM Pit 2 For personal use only and Temporary Port Site Page 23 AGM November 2018
Slide 24: Stage 2 - Develop Krajan Port and Pit
BBM Development For personal use only Stage 2 - Develop Krajan Port and Pit 3 • develop blending stockpile 2 x 80,000t • truck dump hopper, feeder breaker and stacker • coal beneficiation required for coking coal from Pit 3, could be wet screen or jig • 1,200m long 1,000 t/h conveyor to barge loader
Slide 25: Stage 2 (continued)
BBM Development For personal use only Stage 2 (continued) • Upgrade 6.3km exploration road from Pit 3 to Krajan Port • Includes culverts and a bridge • Mining in Pit 3 at 20:1 strip ratio for first million tonnes • Mining Pit 3 coking coal dependent on Krajan Port • Mine 7,500 tonnes*/month from Pit
Slide 26: Krajan Camp
BBM Development For personal use only Krajan Camp Page 26 AGM November 2018
Slide 27: Stage 3 – Expansion of Pit
BBM Development For personal use only Stage 3 – Expansion of Pit 2 and Pit 3 • Pit 2 extended into the eastern area and expanded to 50,000 tonnes*/month • Pit 3 expanded to 116,000 tonnes*/month by end 2020 • Total BBM production 2 Mt/a in Q4 2020 *Refer to media release “COKAL ANNOUNCES RESERVE UPD
Slide 28: The Mine Plan
BBM Development The Mine Plan For personal use only 28 AGM November 2018
Slide 29: Review BBM Long-term Mine Planning
BBM Development Review BBM Long-term Mine Planning For personal use only • Pit optimisation will be revised using actual contract mining and transport costs • Eliminate cost of Purnama Port and 52km road • Revised mine plan to be developed to produce 2 Mt*/a • PCI coal, coking coal and anthracite •
Slide 30: Carbonaceous Zone above Seam D
BBM Development For personal use only Carbonaceous Zone above Seam D Page 30 AGM November 2018
Slide 31: Shallow Draft Barging
Shallow Draft Barging For personal use only 4 Shallow Draft Barging Page 31 AGM November 2018
Slide 32: Channel Improvement
Shallow Draft Barging For personal use only Channel Improvement • Cokal has identified 28 sites along the upper Barito River for channel improvement • All have been located and described using survey and bathymetric data • Most require dredging, a few require rock removal • These improvements can be
Slide 33: Channel Improvement (continued)
Shallow Draft Barging For personal use only Channel Improvement (continued) • Cokal anticipates progressive improvement of the Barito River channel over two years • Estimate capital costs of improving the river channel a lot less than the cost of the 52km haul road to Purnama • Estimate the operatin
Slide 34: Upper Barito River near BBM site
Shallow Draft Barging For personal use only Upper Barito River near BBM site Page 34 AGM November 2018
Slide 35: Vietnamese Barging Company
Shallow Draft Barging For personal use only Vietnamese Barging Company • Cokal has identified a Vietnamese company with shallow draft barges and push boats capable of operating in only 2.2m water depth • This is similar to the Cokal plans for barging on the Barito River • The Cokal CEO will meet the
Slide 36: Shallow Draft Barging in Vietnam
Shallow Draft Barging in Vietnam For personal use only Page 36 AGM November 2018
Slide 37: Wrap Up
Wrap Up: • Cokal has a new operating structure For personal use only • Mines in BBM are planned to produce 2Mt*/a (PCI coal and coking coal) • Barge direct from Krajan Port (the mine site) obviating the need for Purnama Port and 52km road • Mine PCI coal in Q1 2019 • Mine coking coal in Q3 2019 • Co
Slide 38: Thank You
Wrap Up: For personal use only THANK YOU Happy to take questions Page 38 AGM November 2018