Stanmore Resources Ltd · ASX:SMR
Stanmore Resources — Stanmore Coal — Investor Presentation (October 2016)
18 slides from Stanmore Resources's investor presentation, Oct 31, 2016
Slide 1: Delivering Value: A growing independent coking coal producer
DELIVERING VALUE For personal use only A growing independent coking coal producer Investor Presentation October 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 an independent coking coal producer
STANMORE COAL DELIVERING VALUE AS AN INDEPENDENT COKING COAL PRODUCER For personal use only ASX-LISTED MET COAL PURE PLAY ✓Continued ramp-up of production in Sep quarter 280kt produced in September quarter. 511kt produced since re-commencement of mining in May 2016 ✓Production of 1.25Mt anticipated
Slide 4: Stronger pricing outlook: continued strength in coking coal market
STRONGER PRICING OUTLOOK CONTINUED STRENGTH IN COKING COAL MARKET For personal use only Japanese December quarter contract prices have settled with considerable price strength Historical spot coking coal price reflecting trend in spot market Hard coking coal USD200 (up USD107.50 from Sep QTR) Semi s
Slide 5: Production update: Isaac Plains operations
PRODUCTION UPDATE ISAAC PLAINS OPERATIONS For personal use only Safety record strong – no lost time injuries to date 286kt over 8 shipments sailed in the September quarter. Total sales since re- opening 442kt (to end Sep 16) Overburden and coal mining activities continued ramp up during September. M
Slide 6: The tightly held Bowen Basin
THE TIGHTLY HELD BOWEN BASIN PRIME COKING COAL EXPORT REGION DOMINATED BY MAJORS For personal use only 6
Slide 7: Isaac Plains - A Transformational Investment
For personal use only ISAAC PLAINS - A TRANSFORMATIONAL INVESTMENT 7
Slide 8: Isaac Plains Coking Coal Mine: Transaction Recap
ISAAC PLAINS COKING COAL MINE TRANSACTION RECAP 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 November Located near Moranbah in 500t
Slide 9: 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 4 year
Slide 10: Combined Isaac Plains Complex: significant synergies & mine life options
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 EXTEN
Slide 11: 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 (increased to $12m per year with price
Slide 12: Delivering on key milestones
DELIVERING ON KEY MILESTONES CURRENT MARKET CAP: A$149M1 For personal use only Acquire Acquire Highwall 0.9 Isaac Optimise IP Sign Additional Isaac mining Plains mine plan to Offtake for JORC Plains commenced 0.8 East reduce coking coal Resources for $1 Extension production with leading & 0.7 cost b
Slide 13: Value drivers: upcoming milestones and opportunities
VALUE DRIVERS UPCOMING MILESTONES AND OPPORTUNITIES For personal use only Submitted Isaac Plains East mining lease and environmental application in October 2016. Assess potential underground mining in eastern zone of Mining Lease – over 20Mt Indicated and Inferred Resource in this area Assess operat
Slide 14: Appendices
For personal use only APPENDICES 14
Slide 15: 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 16: 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 track record o
Slide 17: 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% Total Reso
Slide 18: High quality coking coal: pre-sold to major Asian steel makers
HIGH QUALITY COKING COAL ISAAC PLAINS COAL - PRE-SOLD TO MAJOR ASIAN STEEL MAKERS For personal use only JPY 2017 contracts already signed with top Parameter1 Isaac Plains Isaac Plains tier Japanese and Korean steel mills on East (Indicative) annual benchmark contracts for 900,000t of coking coal (fu