Greenx Metals Limited · ASX:GRX
Greenx Metals — Prairie Downs Metals — Investor Presentation (May 2014)
32 slides from Greenx Metals's investor presentation, May 2014
Slide 1: Lublin Coal Project Scoping Study Presentation
ABN 23 008 677 852 LUBLIN COAL PROJECT April / May 2014 - ASX: PDZ SCOPING STUDY PRESENTATION Large Scale Project with Potential High Margin Semi-Soft Coking and Premium Thermal Coal within the Heartland of Industrial Europe
Slide 2: Lublin Coal Project
Lublin Coal Project Prairie Downs Metals Limited (ASX:PDZ) is an ASX listed company developing the Lublin Coal Project in Poland’s world class Lublin Coal basin… Large scale, high quality resource of semi-soft coking and premium thermal coal – JORC Coal Resource Estimate of 1.6 billion tonnes Scop
Slide 3: Poland: A favorable investment jurisdiction
Poland: A favorable investment jurisdiction Poland is a safe, low risk mining jurisdiction with an excellent fiscal regime… One of the most attractive fiscal regimes globally for coal 19% Corporate Tax Rate Poland is a first world country having gone through significant reform since the end of c
Slide 4: The Emergence of the Lublin Coal Basin
The Emergence of the Lublin Coal Basin Initial drilling in the Bogdanka Lists on the Bogdanka Mine Warsaw Stock Exchange in basin in search of commissioned in 1982 2009 gas reserves Bogdanka has been the Modernisation of the Leads to discovery of sole operator in the mine exemplifies the
Slide 5: Polish Coal: A tale of two different coal basins
Polish Coal: A tale of two different coal basins With the Upper Silesian Basin in decline, the Lublin Coal Basin is set to become the pre-eminent coal basin in Europe given favourable geology and mining conditions… Silesian Basin Lublin Basin Size1 5,400km2 Size 9,100km2 Years in Production 250 Year
Slide 6: Lublin Basin: First Quartile Operating Costs
Lublin Basin: First Quartile Operating Costs Low cash costs and high productivities in the basin are primarily a function of favourable geology… Q2 2013 Unit Mining Cash Costs Longwall Plow (Source: Company Filings, 3.15 PLN/USD, 0.74 EUR/USD) Geology and mining conditions are ideal for modern, hi
Slide 7: Key Scoping Study Parameters
Key Scoping Study Parameters Off the shelf, proven mining & processing methods with ready market access… Key Scoping Study Parameters 50% Semi Soft Coking Product Mix 50% Premium Thermal ROM Coal Production (Steady State Average) 7.7 mtpa Clean Coal Production (Steady State Average) 6.0 mtpa Initial
Slide 8: Strong Cash Flows & High Margins
Strong Cash Flows & High Margins Significant cash flow generation potential with EBITDA of up to $391 million per annum on conservative pricing assumptions… 100 93.60 90 10.91 80 13.95 70 6.01 2.35 3.58 Average Cash Margin US$/t Clean Coal 60 1.25 55.55 50 40 Average operating cash cost 30 US$36.80/
Slide 9: Lowest Position on the Cost Curve
Lowest Position on the Cost Curve The Lublin Coal Project is positioned at the bottom of the global cost curve on a delivered into Europe basis… Colombia Russia Rest of World Potential Position on the Global Cash Cost Curve for Coal Delivered into Europe (2013 CFR ARA Energy Adjusted) (Sourced from
Slide 10: Metallurgical & Thermal Potential
Metallurgical & Thermal Potential Coal quality and washability results consistent across the target mining area of the 391 seam… Page 10
Slide 11: Superior Coal Quality
Superior Coal Quality Initial testing has indicated that the Lublin Coal Project potentially hosts metallurgical and premium thermal coals that compare favourably with internationally traded coals Semi-Soft Coking Coal Comparison Lublin Coal Project1 Rio Tinto (NSW) Glencore (NSW) JSW (Poland) Solid
Slide 12: Simple & Effective Coal Processing
Simple & Effective Coal Processing Exceptionally high core yields (up to 97%) from the 391 seam and average CHPP yield of 77.3% with the flexibility to produce a range of semi-soft and thermal coal products to suit prevailing market requirements… Page 12
Slide 13: High Quality Transport Infrastructure
High Quality Transport Infrastructure Rail and port studies confirm ample capacity, accessibility and low cost… Rail Accessibility Underutilised Port Capacity Numerous high quality rail lines servicing Lublin Port of Gdansk located 520km from project by rail region Baltmax and Panamax capable
Slide 14: Strategic European Supply Location
Strategic European Supply Location Significant Optionality with regards to potential target markets and product mix… Page 14
Slide 15: Significant Scale Potential
Significant Scale Potential High quality 1.6 billion tonne global resource base with significant potential to upscale production… High quality 1.6 billion tonne coal resource within 21 seams over the four LCP concessions Mine plan based on just two target seams – the 389 and 391 with 157mt JORC
Slide 16: Low Capital Intensity
Low Capital Intensity Low capital intensity when compared to other recent and emerging underground coal projects… Capital Cost Summary (US$ million) Recent Global Underground Longwall Capital Intensities (US$m per 1Mtpa ROM Production) Shaft Costs 227.4 (Sinking & Furniture) Underground Development
Slide 17: Polish Executive Team
Polish Executive Team Respected and established Polish team… Geologist with over 30 years experience and a proven ability in the identification, exploration and appraisal of international resource projects. Held positions at Ashton Mining, BHP Billiton and Striker Resources (North Australian Diamo
Slide 18: Experienced Board and Management
Experienced Board and Management Strong board & management with proven development experience… Highly respected, London based, mining engineer and investment banker Eight years’ experience in underground longwall coal mining operations with BHP Billiton; Holds an Australian Ben Stoikovich (NSW)
Slide 19: Corporate Structure
Corporate Structure Prairie Downs Metals Limited (ASX: PDZ) @ 29th April 2014 Current Issued Capital 132.3 million Options & Performance Rights 26.6 million Market Capitalisation (Undiluted @ A$0.46) A$63.5 million Cash and Listed Securities Held1 at 31 March 2014 A$16.7 million Enterprise Value A$4
Slide 20: Significant Re-rating Potential
Significant Re-rating Potential Near term news flow and milestones during 2014…. Results from coal quality and coal washability testing Completed Commence ESIA & Permitting Completed Transport infrastructure study Completed JORC Resource estimate upgrade Completed Results of Lublin Coal Pr
Slide 21: Lublin Coal Project: Strong Fundamentals
Lublin Coal Project: Strong Fundamentals Lublin Coal Project is set to become a strategic new supply of coal in the heartland of industrial Europe… Large scale 6Mtpa steady state production Significant Cash flow / High US$332mpa¹ Peak EBITDA of US$391mpa Margin Asset EBITDA High margin of US$5
Slide 22: Additional Slides
ADDITIONAL SLIDES Europe’s next www.prairiedownsmetals.com.au
Slide 23: Bogdanka at a Glance
Bogdanka at a Glance Key Bogdanka Statistics Bogdanka Coal Mine Initial Listing/Privatisation 2009 Warsaw Stock Exchange Enterprise Value ~US$ 1.6 billion EBITDA Margin 40% (2013) Dividend Yield ~5% (2013) 8.4 mt (2013) Coal Production 12 mtpa by 2015 Cash Operating Costs US$43/tonne free-on-rail Bo
Slide 24: Global Coal Producer Comparables
Global Coal Producer Comparables Page 24
Slide 25: Underground Development Equipment
Underground Development Equipment Joy 12CM 30 Continuous Miner Roadheader – Sandvik AM75 JOY 10SC 32 Shuttle Car Page 25
Slide 26: Underground Longwall Equipment
Underground Longwall Equipment Conventional Longwall Shearer Conventional Hydraulic Roof Support & Armoured Face Conveyor Complete Longwall System Longwall Plow Face Page 26
Slide 27: Thermal Coal – Fundamental to Europe’s Energy Matrix
Thermal Coal – Fundamental to Europe’s Energy Matrix During 2012, Europe1 consumed over 770mt of coal for power generation, of which 265mt was thermal coal. Thermal coal imports amounted to 172mt, accounting for 22% of globally traded thermal coal… European Thermal Coal Imports & Production by Count
Slide 28: Europe – Declining Domestic Coal Production
Europe – Declining Domestic Coal Production Europe’s hard coal production continues to decline as viable coal resources deplete European Hard Coal1 Production (million tonnes) 400 365mt (total) Rest of EU 350 Czech Republic 295mt Germany 300 United Kingdom 250 227mt Poland 200 189mt 155mt 150 127mt
Slide 29: Increasing Reliance on Imported Thermal Coal
Increasing Reliance on Imported Thermal Coal Imports from Russia, Colombia, the US and others are fundamental for European thermal coal supply… USA Russia Export to EU (2012) 35.8mt Export to EU (2012) 60.3mt % Total of EU Imports 19% % Total of EU Imports 33% Calorific Value (Kcal/kg) 6,676 Calorif
Slide 30: Strong Regional Coking Coal Demand
Strong Regional Coking Coal Demand Greater Europe (EU inc Turkey) consumes over 70mt of metallurgical coal per year Seaborne Metallurgical Coal Demand – 2013 & Growth to 2035 Poland is Europe’s largest producer and exporter of coke, producing over 10mt in 2011 from the Silesian basin Silesian mi
Slide 31: Disclaimer
Disclaimer Cautionary Statements and Important Information This presentation has been prepared as a summary only, and does not contain all information about Prairie’s assets and liabilities, financial position and performance, profits and losses, prospects, and the rights and liabilities attaching t
Slide 32: Prairie Downs Metals Limited
Prairie Downs Metals Limited Head Office London Office Poland Office Level 9, BGC Centre Unit 1C, Princes House PD CO Sp z o.o. 28 The Esplanade 38 Jermyn Street Rondo ONZ 1, Floor 5A PERTH WA 6000 LONDON, SW1Y 6DN 00-124 WARSAW AUSTRALIA UNITED KINGDOM POLAND P: +61 8 9322 6322 P: +44 207 478 3900
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