Cokal Limited · ASX:CKA
Cokal — Investor Presentation (November 2016)
35 slides from Cokal's investor presentation, Nov 14, 2016
Slide 1: Investor Presentation
For personal use only Investor Presentation November 2016 1 Investor Presentation
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 analysts and not as specific advice to any particular party or person. The information is based on publicly availab
Slide 3: Outline
Outline For personal use only BBM Project Corporate Description – Overview Priority Development Other Company Community Activity Development 3 Investor Presentation
Slide 4: Our Focus
Our Focus For personal use only Building a Global Metallurgical Coal Business Positive and Agile Decision Making Respect for all Stakeholders Ethical Decision Making Strong Indonesian Team Technical Skills for Innovative Solutions Results Orientated 4 Investor Presentation
Slide 5: Strong Board Coal Pedigree
Strong Board Coal Pedigree For personal use only Peter Lynch – Non Executive Chairman, Mining Engineer, over 27 years’ experience in mining; MIM, Shell Coal, MacArthur Coal, Open Cut & Underground, TSX and ASX:WCI. Pat Hanna - Executive Director, Geologist, over 40 years’ experience all coal; Global
Slide 6: Diverse & Experienced Management
Diverse & Experienced Management Yoga Suryanegara - Resource Manager Indonesia, Geologist, 20 years’ experience including For personal use only international experience, responsible for overseeing multi-million dollar exploration programs in Queensland and Kalimantan; more than 10 years experience i
Slide 7: Executive Summary
Executive Summary Cokal Limited (CKA) Cokal Capital For personal use only • Listed on the ASX in December 2010 Structure • Developing Metallurgical Coal Projects in Central Kalimantan ASX Code CKA Shares on Issue 593.1M • Objective: Metallurgical coal producer Options on Issue 59.8M Debt – Facility
Slide 8: Project Locations - Indonesia
Project Locations - Indonesia For personal use only 8 Investor Presentation
Slide 9: BBM, TBAR and BBP Tenements
BBM, TBAR and BBP Tenements INDONESIA For personal use only 9 Investor Presentation
Slide 10: BBM – Priority Project
BBM – Priority Project Advanced development plan: For personal use only In Mine Development Stage Near term production High quality coking coal with Low cash significant upside operating cost potential Investment Highlights Experienced Management team Flexible development with a strong record of pla
Slide 11: Study Outcomes
Study Outcomes DFS: Low cost – near term Production For personal use only • Definitive Feasibility Study (DFS) ASSET DESCRIPTION at BBM completed by Resindo Project BBM, Central Kalimantan, Indonesia • Capable of rapid expansion from Total 266Mt 2mtpa to 6mtpa JORC Resources 19.5Mt Measured, 23.1Mt
Slide 12: Definitive Feasibility Study Highlights
Definitive Feasibility Study Highlights • Confirmed that BBM and associated transport system can be developed as For personal use only a low cost operation with moderate operating cost: – BBM Coal will command a high value as a blending feed in the Coking Coal Market – No risks were identified that
Slide 13: Mine Costs
Mine Costs US$ Operating Cost US$ For personal use only Development Capital (Million) (excluding 7% Royalty) /t Avg - Initial Start up 47 Year 1 58.00 - Enhancement 21 - Average first 5 years 70.00 TOTAL *68 Life of Mine 82.00 *Note: Assume that mining, barging and hauling equipment will be provided
Slide 14: Conversion of Loan to a Royalty Arrangement
Corporate Update For personal use only CONVERSION OF LOAN TO A ROYALTY ARRANGEMENT Cokal had reached an agreement with Platinum Partners Value Arbitrage Fund, LP (“Platinum”) on 22nd July 2016 to convert approximately US$15 million of loans owing by Cokal to various funds managed by Platinum or its
Slide 15: BBM Approvals
BBM Approvals All Major Approvals in place For personal use only IUP (Exploration), on ‘Clean & Clear’ List PT BBM approved Foreign Owned company (PMA status) Cokal Shareholding of PT BBM approved by BKPM (Central Government Foreign Investment Co-ordination Board) Exploration Forestry Permit
Slide 16: On the Doorstep of the Biggest MET Coal Markets
On the Doorstep of the Biggest MET Coal Markets For personal use only Fastest and lowest cost shipping to key customers Dalandzangad Mongolia Coos Bay United S. Korea Japan Seoul China Seoul Tokyo States Shanghai India Guangzhou Mumbai Mumbai Mumbai Mumbai Vietnam China
Slide 17: Developing a new Coking Coal Province
Developing a new Coking Coal Province For personal use only Indonesian Coal Reserves 17 Investor Presentation
Slide 18: BBM Resources – 266Mt
BBM Resources – 266Mt1 (status: April 2016) Sufficient Resource to underwrite 2Mtpa initial open cut production plan For personal use only Resources by Seam and Category Seam Measured Indicated Inferred Total Seam Thickness Resources Resources Resources Resources Name (m) (Mt) (Mt) (Mt) (Mt) J 1.33
Slide 19: BBM Premium Quality Coking and PCI Coal
BBM Premium Quality Coking and PCI Coal For personal use only Classified as Bituminous Coal Inherent Volatile Fixed Total Calorific Relative Phos- Ash Product Seam Moisture Matter Carbon Sulphur Value Density phorus ad % ad % ad % ad % ad % ad (Kcal/kg) ad (g/cc) ad % COKING 2 – 4.5 2 15 – 19 75 – 8
Slide 20: BBM J Seam - Premium Quality Coking Coal
BBM J Seam - Premium Quality Coking Coal For personal use only Inherent Volatile Fixed Total Calorific Relative Phos- Yield Ash Product Moisture Matter Carbon Sulphur Value CSN Density phorus % ad % ad % ad % ad % ad % ad (Kcal/kg) ad (g/cc) ad % Raw 100 1.0 13.2 17.6 68.2 0.38 7,412 9 1.39 0.007 Co
Slide 21: BBM – Potential to Increase Resource Size
BBM – Potential to Increase Resource Size For personal use only This potential is in addition to the current 266Mt JORC Measured, Indicated and Inferred Resources Comprised of 13 Seams in the Eastern Block of BBM (only 40% of the tenement area) 21 Investor Presentation
Slide 22: Planned Mining Operations
Planned Mining Operations For personal use only Truck / Excavator Operation • Contractor operated • Pit to Jetty Seam Outcrop on the Surface • Significant length of outcrop • J Seam ~ 1.4m thick • In-pit sizing / screening 22 Investor Presentation
Slide 23: Infrastructure and Transport
Infrastructure and Transport For personal use only Coal to be transported in three phases, accounting for ~ 774km from the mine site to the Java Sea • 55km haul road from mine to the Barito River • 500km down the Barito River to the Intermediate Stockpile Port at Kelanis • Ocean-going barges to tran
Slide 24: Truck Haulage
Truck Haulage For personal use only • 55km road route, 2 studies completed, initial quotation received • All weather surface • Ease of loading, unloading, reliability • Excellent balance of operating and capital costs 24 Investor Presentation
Slide 25: Barge Loading
Barge Loading For personal use only • Plan for direct load from trucks to barges • Spare barges enable efficient system • Stockpiling capability • Front End Loader hoppers for re- loading from stockpile • Low capital, low operating cost • Minimises coal degradation 25 Investor Presentation
Slide 26: Shallow Draft Barges
Shallow Draft Barges • River designed barge system for safe, reliable For personal use only and economic transport • Indonesian system currently uses towed ocean going barges • Mississippi style allows flexibility, for manoeuvring and cargo sizes • JV formed with MDM Meratus highly respected Indones
Slide 27: Shallow Draft Barges
Shallow Draft Barges For personal use only • Stage 1 – 6,000t convoys (4 x 1,500t barges) – 500km • Shallow draft: down to 2.3m water level • 3 Studies completed • Full bathymetric survey of river • Daily river height data for over 10 years used • 6 tugs and barge sets for Tug and 4 Barge Convoy 2Mt
Slide 28: Deep Water Barge to Shiploader
Deep Water Barge to Shiploader For personal use only Deep Water Barges to Floating Crane in Java Sea • 12,000t now common (matches 2 x 6,000t upper river shallow barge convoys) • Matches common ship hatch size Operators • Many Barge operators at this point • Many Floating crane operators offshore •
Slide 29: Other Tenements
Other Tenements Central Kalimantan, INDONESIA For personal use only TBAR – Agreement signed 75/25 with local owners. 19,000ha adjoins BBM, which doubles the size of the exploration area available. Potential for BBM seams extend into TBAR Tenement is on the Clean and Clear List issued by the Dire
Slide 30: BBM Project Conclusions
BBM Project Conclusions For personal use only Low capital High quality Low operating investment coking product cost required Good margin Geographically Early and quick well production payback positioned Experienced Potential for Executive expansion team 30 Investor Presentation
Slide 31: Developing Infrastructure
Developing Infrastructure For personal use only Two river ports and two coal -fired power stations to facilitate metallurgical coal production Working together for mutual benefit with the Murung Raya Regency CSR program on education Peter Lynch, Drs. Perdie MA(Head of Regency),Darmaji (Vice Bupati),
Slide 32: Corporate Social Responsibility
Corporate Social Responsibility Education For personal use only • University Scholarship program in conjunction with the Palangkaraya University • General Lecturer at The Palangkaraya University • Sponsored four teachers for the Tumbang Tuan Jnr High School • Environment Awareness Program • CERDAS S
Slide 33: Corporate Social Responsibility
Corporate Social Responsibility For personal use only Safety Awareness and Support Campaign • Safety Socialisations Programmes for local students • Safety Trainings Programmes for local government • Safety tools & equipment support for local airstrip • Face Mask N95 type support for local government
Slide 34: Corporate Social Responsibility
Corporate Social Responsibility For personal use only BOSF Orangutan Release • Commenced release of 12 Orangutan on 21 April 2016 • Accommodated and assisted approximately 20 BOSF Staff during release period • Primates held at staging area at BBM Port Site • Release procedure overseen by Jamarin Sih
Slide 35: Summary
Summary For personal use only Executive Team with strong track record Plans for High Margin becoming a Metallurgical Coal Significant confirmed Metallurgical Coal Producer Assets with Good Plans to develop Potential the portfolio BBM on track for quick production, with significant upside potential 3