Whitehaven Coal Limited · ASX:WHC
Whitehaven Coal — 2014 Global Metals, Mining & Steel Conference
27 slides from Whitehaven Coal's conference presentation, May 15, 2014
Slide 1: 2014 Global Metals, Mining & Steel Conference
Whitehaven Coal Limited 2014 Global Metals, Mining & Steel Conference Miami Beach, Florida 13 to 15 May 2014
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 Whitehaven Overview Location Key Operating Assets Maules Creek Growth Asset Industry Costs Thermal Coal Market Summary Investor Conference – May 2014 3
Slide 4: Our goal
Our goal To become Australia’s leading independent coal company Investor Conference – May 2014 4
Slide 5: About us
About us Whitehaven is a low cost pure play ASX listed coal mining company currently producing ~10Mtpa of coal The company produces high quality, high CV, low ash and sulphur thermal coal and metallurgical coal products for sale to Japan, Korea, India, China and other Asian countries Whitehaven owns
Slide 6: Whitehaven – Who we are
Whitehaven – Who we are Directors & Senior Management Mark Vaile AO Chairman Corporate Information John Conde AO Deputy Chairman Paul Flynn Managing Director & CEO ASX Code WHC Tony Haggarty Non- Executive Director Philip Christensen Non-Executive Director Shares on Issue 1025.7 m Rick Gazzard Non-
Slide 7: Corporate information
Corporate information Substantial Shareholders Farrallon Capital Management 16.6% Whitehaven Share Register FRC Whitehaven Holdings BV 7.1% Fritz Kundrun 6.8% Hans Mende 6.0% 5% Martua Sitorius 5.8% 13% Prudential PLC 6.0% Institutions Manning & Napier 5.0% Corporates Private Investors 55% 27% Relat
Slide 8: Dominating the Gunnedah Basin
Dominating the Gunnedah Basin Maules Creek (75%) • Reserves to support ~ 30 years • Permitted & under construction : 13 Mtpa ROM • SSCC, PCI and high energy thermal Narrabri (70%) • Reserves to support ~ 25 years • Permitted & Planned : 8 Mtpa ROM • PCI & low ash thermal coals Tarrawonga (70%) • Res
Slide 9: Investment proposition - growth company
Investment proposition - growth company Saleable Production by Mine 25.0 21 20 20.0 Managed production has doubled from two years ago million's tonnes 15.0 14 10 10.0 8 And will double again over the next three years 5.0 Additional growth options include - Vickery at up to 8Mtpa production FY12 FY13
Slide 10: Narrabri – tier 1 underground
Narrabri – tier 1 underground Commercial production commenced in H1 FY2013 with a weekly production record of 193kt, currently mining the third panel Narrabri HY Managed Saleable Coal Production (kt) 3,500 Narrabri mine produces Newcastle benchmark by- pass thermal coal (80%) and a high volatile low
Slide 11: Existing mines underpin growth projects
Existing mines underpin growth projects Whitehaven Open Cut Production (000's t) 3,000 2,500 An expansion at Werris Creek recently increased annual production capacity to 2.5Mtpa 2,000 1,500 Werris Creek and Tarrawonga mines produce both thermal and metallurgical coals 1,000 500 Annualised productio
Slide 12: Maules Creek major growth asset
Maules Creek major growth asset Tier 1 World Class Mine Mine Infrastructure Simple and well understood geology with multiple seams, no major faulting and a low strip ratio of 6.4:1 High quality resource of PCI, SSCC and high energy thermal coal Maules Creek Rail Loop Situated close to existing infra
Slide 13: Maules Creek layout
Maules Creek layout Simple and flexible mine infrastructure layout Investor Conference – May 2014 13
Slide 14: Construction progress Maules Creek
Construction progress Maules Creek First coal sales 100% Maules Creek Coal Overall Project- S-Curve 90% The project is being constructed by 80% the “A” group contractors 70% Legend Actual Total project cost of $767 million with 60% Forecast all major contracts let and costings within budget 50% The
Slide 15: Road and Rail cutting
Road and Rail cutting EN WHITEHAVEN COAL ADO
Slide 16: Photos of construction progress
Photos of construction progress Investor Conference – May 2014 16
Slide 17: Maules Creek production profile
Maules Creek production profile Maules Creek Production Profile (Mt) 14.0 Mining of the initial box cut for the mine is scheduled to commence in August 2014 12.0 Ultra class mining equipment (300t trucks 10.0 and 800t excavators) to mine at an annualised rate of 6.0Mtpa ROM from 8.0 March FY2015 6.0
Slide 18: Independent ranking
Independent ranking Maules Creek will deliver significant value to Whitehaven shareholders High ranking, high value project Investor Conference – May 2014 18
Slide 19: Industry costs and productivity
Industry costs and productivity Inflationary pressures for many Australian miners in the period to FY2012 caused costs to rise as companies focussed on production Productivity declined over a number of years and reached its nadir after the wet season of 2011 All companies are responding to the downt
Slide 20: Whitehaven costs trending down
Whitehaven costs trending down H1 H2 H1 (1) On a like for like basis mine coal sales have FY2014 FY2013 FY2013 (1) increased 63% over the same period last year, driven by the doubling of Narrabri Coal Sales (equity basis, excl. purchased coal) '000t 4,302 3,355 (3) 2,639 production. The coal sales m
Slide 21: Focused on cost reductions
Focused on cost reductions Cost Reduction Opportunities Realisation Rail and road haulage contracts New contracts agreed and commenced January 2014 Port Charges Reduced charges at PWCS and NCIG in Newcastle Larger Trains 8,000t trains being tested and will operate in CY2015 Explosive supply Lower co
Slide 22: Thermal coal costs
Thermal coal costs Energy-adjusted export supply curve for Thermal Coal 120 USA Canada Colombia Russia Indo Bit 115 110 Australia South Africa Vietnam Indo Sub-bit Other 105 100 Delivered Asia Cost ($/t) - 6000NAR basis 95 90 85 A significant portion (about 30%) of the 80 seaborne thermal cost curve
Slide 23: Thermal coal market - supply
Thermal coal market - supply Seaborne Thermal Coal Supply (Mt) 700 600 500 400 300 200 The rate of increase in production from Indonesia and 100 Australia has slowed 0 2008 2009 2010 2011 2012 2013 2014E 2015E High cost US exports have declined. Will they decline Australia Indonesian United States f
Slide 24: Thermal coal market - demand
Thermal coal market - demand ASEAN Thermal Coal Demand (Mt) 250 200 Myanmar Cambodia 150 Vietnam Demand growth in the ASEAN region for high quality coal like Philippines Whitehaven produces is expected to increase by ~50Mtpa over the 100 Thailand next four years 50 Malaysia Indonesia Deferred restar
Slide 25: Coal consumption growth
Coal consumption growth World Electricity Demand 2010 2040 Total Demand (Terrawatt Hours) 18,548 35,242 Coal as % of total 45% 33% Economic growth is fuelled by energy Coal in Terrawatt Hours 8,347 11,630 Growth in Coal Consumption 39% Electricity demand growth of 2% is tied to economic growth outsi
Slide 26: Summary
Summary Whitehaven is a low cost pure play listed coal growth company providing exposure to both thermal and metallurgical coal The company is migrating its business from small mines to large, low cost tier 1 mines producing high quality products Production has doubled and will double again over the
Slide 27: Thank you
Thank you www.whitehavencoal.com.au Investor Conference – May 2014
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