Stanmore Resources Ltd · ASX:SMR
Stanmore Resources — Stanmore Coal — Investor Presentation (February 2014)
24 slides from Stanmore Resources's investor presentation, Feb 7, 2014
Slide 1: Investor Presentation February 2014
For personal use only INVESTOR PRESENTATION February 2014
Slide 2: Important Information
IMPORTANT INFORMATION For personal use only This document has been prepared by Stanmore Coal Limited (“Stanmore Although due care and attention has been used in the preparation of Competent Persons Statement: Coal”) for the purpose of providing a company and technical overview to forward looking sta
Slide 3: About Stanmore Coal
ABOUT STANMORE COAL For personal use only Queensland based coal Emerging coking coal Strong Board and Well funded with a strong development company producer at Belview management team with shareholder base proven track record of Founded in 2008 Additional pipeline of No take or pay obl
Slide 4: Strong Board and Management Team
STRONG BOARD AND MANAGEMENT TEAM For personal use only Neville Nick Stephen Viv Andrew Sneddon Jorss Bizzell Forbes Martin Chairman Managing Director Director Director Director Mining engineer with 20 years in Extensive experience Over 40 years of 15+ years in 37 years experience in engineering, pro
Slide 5: Strong Board and Management Team
STRONG BOARD AND MANAGEMENT TEAM For personal use only Over 150 years of coal exploration, development and operational experience Chris Doug Vaughan Mike McAuliffe McAlpine Wishart McKee Director Chief Financial General Manager Chief Operating Officer and Project Officer Company Secretary Developmen
Slide 6: Located in Queensland's Premier Coal Basins
LOCATED IN QUEENSLAND’S PREMIER COAL BASINS For personal use only Emerging Bowen Basin coking coal producer at Belview Belview hosts high quality underground coking coal on existing rail line First coking coal exports planned from Belview in 2017 Pipeline of additional coal projects Lilyvale h
Slide 7: Belview Project
BELVIEW PROJECT For personal use only Significant coking coal project in the Bowen Basin 100% owned Substantial coking coal deposit in heart of the Bowen Basin – initial 322 Mt JORC Inferred Resource Coal quality results to date confirm attractive coking properties across multiple seams Infras
Slide 8: Belview Project: Coal Quality Results
BELVIEW PROJECT For personal use only Primary Secondary Initial coal quality test results are very positive Parameter1 HCC PCI Product Product Product Split % 62 38 Initial coal testing from bore cores indicate that Belview will produce a Hard Coking Coal (“HCC”) primary product and a Inherent Moi
Slide 9: Belview Project
BELVIEW PROJECT JORC Inferred Thickness Seam Resource (Mt) (m) For personal use only Aries - n/a High quality underground coking coal Castor 107 2.6 project Pollux 166 3.2 Substantial resource base with potential for growth Gemini 23 6.7 with more drilling Pisces Upper 26 2.1 Entry point is shal
Slide 10: Belview Project: First Coal Target 2018
BELVIEW PROJECT For personal use only First coal target 2018 Inferred drilling program recently completed Mining Lease Application submitted Value engineering and cost reduction program commenced with an objective of a material reduction in project capital costs Funding from Taiheiyo Kouhats
Slide 11: Belview Project: Clear Path to Production
BELVIEW PROJECT For personal use only Clear path to production Low risk/relatively straightforward approvals – no strategic cropping land Access to existing rail line and port 2014 2015 2016 2017 2018 2019 Item Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Pre-Feasibili
Slide 12: Lilyvale Project
LILYVALE PROJECT For personal use only Coking coal project The Lilyvale Project is targeting the German Creek seam which is mined as a prime coking coal at nearby operating mines: - Kestrel UG Longwall (Rio Tinto) - Crinum UG Longwall (BMA) Historical drilling results and knowledge of surroundin
Slide 13: Queensland Coking Coal Market
QUEENSLAND COKING COAL MARKET For personal use only Demand drivers still Cost environment is Currency dynamics The Bowen Basin strong improving have started to remains the premier Oversupply still exists but is Construction market has normalise source of hard coking forecast to reduce over time
Slide 14: Queensland Coking Coal Market
QUEENSLAND COKING COAL MARKET “ For personal use only Strong outlook for Met coal supply growth in recent years has been strong, recovery particularly from Australia, Canada and the USA, Asian off-take interest in resulting in a glut of supply on the seaborne market. Queensland coking coal remains
Slide 15: The Range Project
THE RANGE PROJECT For personal use only Open cut, high energy, export grade thermal coal mine 100% owned Feasibility Study complete on 5 Mtpa open cut export thermal coal mine over 25 years High energy, low emission thermal coal sought after in Asia EIS completed and Mining Lease grant expecte
Slide 16: The Range Project: High Energy Export Thermal Coal
THE RANGE PROJECT For personal use only High energy export thermal coal Quality Surat Comment Surat Basin coals are typically clean burning with good burnout Walloon characteristics and low nitrogen, ash and sulphur Coals Suitable for all key markets including Japan, China, Korea and India Low
Slide 17: Clifford Project
CLIFFORD PROJECT For personal use only Large exploration area with open cut potential Substantial exploration opportunities within the 1,161km2 Clifford Project Area Potential to host a substantial thermal coal deposit suitable for open cut mining Substantial synergies with the Range JOGMEC
Slide 18: Stanmore Coal's Strategy
STANMORE COAL’S STRATEGY For personal use only Driving towards production with disciplined growth The Company’s strategy over the next twelve months is to: Deploy capital Undertake value Selectively pursue low Minimise overhead judiciously, where long engineering for key capital, high-value costs te
Slide 19: Reserves and Resources
RESERVES AND RESOURCES For personal use only JORC JORC Marketable Recoverable JORC JORC JORC Coal Coal Measured Indicated Inferred Total JORC Project Reserve1,2 Reserve1,2 Resource1 Resource1 Resource1 Resource1 The Range Thermal 94.2 117.5 18.0 187.0 82.0 287.0 Mackenzie Coking - - - 25.7 117.5 143
Slide 20: Coking Coal Market Background
For personal use only COKING COAL MARKET BACKGROUND 20
Slide 21: Efficient Development
EFFICIENT DEVELOPMENT For personal use only Juniors have efficiently developed the Nominal majority of greenfield developments Initial production New mine First year of explorer/develop Current capacity in QLD over the last decade development production er owner (Mtpa) Of the 11 greenfield operati
Slide 22: Efficient Development: Capital Intensity
EFFICIENT DEVELOPMENT For personal use only Capital intensity for all projects Source: Wood Mackenzie, Company announcements. Note: Bubble size is proportional to production. 22
Slide 23: Steel Production Strength
Global metallurgical coal demand (million tonnes) STEEL PRODUCTION STRENGTH For personal use only Steel production strength is likely to continue as the urbanisation of China continues The urbanisation of China will continue to underpin strong steel demand, particularly in the lesser developed cen
Slide 24: Supply Growth
At 15% IRR, ~60% of new metallurgical production at risk SUPPLY GROWTH For personal use only Future coking coal supply growth is likely to come from Australian prime deposits The Bowen Basin exports quality hard coking coals which will continue to be among the most highly valued in the global mark
Stanmore Coal — Investor Presentation (February 2014) on 6ix