Australian Pacific Coal Limited · ASX:AQC
Australian Pacific Coal — Investor Presentation (August 2023)
32 slides from Australian Pacific Coal's investor presentation, Aug 30, 2023
Slide 1: Dartbrook Underground Project: Equity Raising Presentation
Dartbrook Underground Project Bringing a new source of high-quality coal to market Equity Raising Presentation 30 August 2023 Not for release or distribution in the United States
Slide 2: Disclaimer
Disclaimer This presentation (‘the presentation’) has been prepared by Australian Pacific Coal Limited ACN 089 206 those expressed or implied by such forward looking information, including without limitation risks 986 (‘AQC’ or ‘the Company’) in connection with a potential entitlement offer and inst
Slide 3: Disclaimer
Disclaimer LIMITED DISTRIBUTION not measures of financial performance, liquidity or value under the IFRS and may not be comparable to similarly titled measures presented by other entities, nor should the information be construed as an This presentation is not and should not be considered to form any
Slide 4: Table of Contents
Table of Contents Slide 1 Investment Highlights 5 2 Equity Raising Overview 8 3 Thermal Coal Market 11 4 AQC Overview 12 5 Dartbrook Project 15 6 Conclusion 22 7 Appendix 23 Not for release or distribution in the United States 4
Slide 5: Investment Highlights
1 Investment Highlights AQC has an 80% JV interest (70% economic interest1) in the Dartbrook thermal coal project, offering ASX exposure to material near-term production from Australia’s Hunter Valley Mine restart substantially de-risked Fast to market, low-cost restart • Low capital restart (CHPP a
Slide 6: Investment Highlights
1 Investment Highlights AQC has an 80% JV interest (70% economic interest1) in the Dartbrook thermal coal project, offering ASX exposure to material near-term production from Australia’s Hunter Valley Fully permitted with high value extension potential Infrastructure network in-place • Fully permitt
Slide 7: 2023 Achievements
1 2023 Achievements AQC’s management team has delivered significant positive results for shareholders in 2023 YTD • Significantly increased AQC shareholder’s interest in Dartbrook Project – Renegotiated Joint Venture terms and agreement with significant positive outcomes for AQC shareholders – Incre
Slide 8: Equity Raising Overview
2 Equity Raising Overview • Australian Pacific Coal (“AQC” or the “Company”) is announcing an equity raising of up to A$12m (“Equity Raising”) comprising: ‒ A$4m placement (“Placement”) utilising the company’s placement capacity under ASX Listing Rule Equity Raising size and 7.1 structure ‒ Up to A$
Slide 9: Equity Raising Overview
2 Equity Raising Overview • Equity Raising to meet short-term funding and working SOURCES OF FUNDS (A$M) USES OF FUNDS (A$M) capital requirements, while the Dartbrook JV finalises restart Placement 4.0 Mine salaries and wages 3.0 - 4.0 funding Underground ‒ The Dartbrook restart (inclusive of workin
Slide 10: Indicative Equity Raising Timetable
2 Indicative Equity Raising Timetable Event Date Announcement of the Equity Raising Wednesday, 30 August 2023 Placement and Institutional Entitlement Offer closes Wednesday, 30 August 2023 Trading halt lifted – shares recommence trading on ASX on an “ex-entitlement” basis Thursday, 31 August Record
Slide 11: Thermal Coal – Newcastle Index
3 Thermal Coal – Newcastle Index The demand for high quality seaborne traded thermal coal (NEWC – 6000kcal or better) remains robust from across Japan, South Korea, Taiwan and other SE Asia against a backdrop of little new supply and a weakening A$ $/t 800 700 600 Russia invades Ukraine 500 400 Chin
Slide 12: AQC Corporate Overview
4 AQC Corporate Overview Shareholder Register Capital Structure Current share price (29-August) $0.13 Shares on issue 347.3m Market capitalisation $45.2m Cash (30-June) $3.7m Other retail Trepang & 37.4% Debt1 (30-June) $0.0m Associates Enterprise value $41.5m 41.3% Unquoted securities2 Nil Market c
Slide 13: Diverse and Experienced Board
4 Diverse and Experienced Board Mike Ryan, Interim Chair Mr Ryan is a highly accomplished executive and director with background in domestic and international capital markets. He has managerial and operational experience across a range of industries primarily focused on turnaround and growth. Mike’s
Slide 14: Experienced Tetra Operating Team
4 Experienced Tetra Operating Team Prior Experience General Manager Responsibilities: includes: Mine Operator • People Tetra Director • Fitzroy Resources • Leadership Exec Chair • Statutory • AMCI Aust – CEO Michael Mapp Brian McDonald • MIM Holding – CEO Coal Mine HSE/Training Planning/Approval Eng
Slide 15: Dartbrook Project - Overview
5 Dartbrook Project - Overview • A rare ASX exposure to production from the Hunter Valley, the world’s premier thermal coal basin and coal export network • Dartbrook has excellent infrastructure, a large reserve and resource base, proximity to rail and port facilities, and skilled labour availabilit
Slide 16: Dartbrook Project – Cross Section
5 Dartbrook Project – Cross Section New England Highway Main North Railway Hunter River Mine Surface Facilities Blairmore Lane Dartbrook Balloon Loop Western Vent Shaft Hunter Tunnel Not for release or distribution in the United States 16
Slide 17: Dartbrook Project – Key Metrics
5 Dartbrook Project – Key Metrics Longwall underground mining operations commenced in 1994, under the previous ownership of Anglo, with production reaching over 5.5Mtpa ROM coal in 2005. The mine was placed into care and maintenance in 2006 following volatile commodity prices. Key features and advan
Slide 18: Dartbrook Project – Key Financials
5 Dartbrook Project – Key Financials1 Expected ROM Production Revenue Mt 3.0 • Average blended product over the licence term is expected 2.5 to be broadly consistent with NEWC thermal benchmark 2.7 product and pricing (current spot prices >US$150/t) 2.0 2.2 2.3 1.5 • Mine had produced historically i
Slide 19: Dartbrook Project – Timeline
5 Dartbrook Project – Timeline Rapid restart of past producing and highly profitable thermal coal mine Acquisition and Study Phases Permit Review and Extension Restart Ready 1H 2022 Dartbrook 5 1H 2017 Year Extension Q2 2023 Dartbrook Acquisition 2018 - 2019 • 5 Year • Joint Venture • Acquired asset
Slide 20: Significant Progress to Date
5 Significant Progress to Date Project substantially de-risked and approaching restart1 Application for MOD8 (extension to Dec-33) subject AQC funded restart operations via loan to Dartbrook to market conditions and operational performance Pre-2023 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Dartbrook JVA execu
Slide 21: Committed to Operate Sustainably
5 Committed to Operate Sustainably • Committed to co-exist with surface cattle grazing operations (landowner, Trepang, also largest shareholder) • Committed to minimise water use under agreement with landowner • Underground mining operations and technologies allows for improved utilisation of greenh
Slide 22: Conclusion
6 Conclusion Exposure to near-term and high-margin coal production with a current market capitalisation of only A$45m • Excellent location – world’s premier thermal coal basin / network • Fast to market / low-cost restart – production targeted for Q4 20231 and expected to reach sales volumes of appr
Slide 23: Appendix
AA ww Australian Pacific Coal Appendix ABN; 49.088 206986 ASX ry
Slide 24: Glossary
Glossary Term Meaning Term Meaning AAS Australian accounting standards Mt million metric tonnes AQC or the Company Australian Pacific Coal Limited Mtpa million metric tonnes per annum ASX Australian Securities Exchange Limited or the New Shares the ordinary shares in the Company for offer securities
Slide 25: JORC Resource and Coal Quality
JORC Resource and Coal Quality Marketable Reserves Note AQC has had the following technical JORC Resource Mt The Dartbrook Marketable Coal Reserve of 370Mt is derived from a ROM Coal Reserve of 470 Mt estimated reports conducted for Dartbrook: Classification in accordance with the JORC Code with a p
Slide 26: Foreign Offer Restrictions
Foreign Offer Restrictions This presentation does not constitute an offer of New Shares of the Company in any No advertisement, invitation or document relating to the New Shares has been or will be jurisdiction in which, or to any person to whom, it would be unlawful to make such an offer. In issued
Slide 27: Foreign Offer Restrictions Cont’d.
Foreign Offer Restrictions Cont’d. Singapore general circulation in Switzerland. This presentation and any other materials relating to the New Shares have not been, and will United Kingdom not be, lodged or registered as a prospectus in Singapore with the Monetary Authority of Neither this presentat
Slide 28: Key Risks
Key Risks This section discusses some of the key risks associated with any investment in AQC, which Mining risks may affect the value of AQC's securities. The risks set out below do not constitute an exhaustive list of all risks involved with an investment in AQC. Before investing in AQC, you (i) Th
Slide 29: Key Risks
Key Risks Plant and Equipment risks The Company’s notice of meeting indicated that, in the event the issuance of the 12,427,279 options was Prior to the Dartbrook Project recommencing production, there are a number of issues relating to the not approved, that issuance could not occur, as the Company
Slide 30: Key Risks
Key Risks Compliance with health and safety laws and regulations may cover land that is subject to a claim for native title or land where native title has already been AQC is subject to extensive laws and regulations governing health and safety at coal mines in Australia. As a determined to exist. N
Slide 31: Key Risks
Key Risks General Risks 5, the NSW royalty regime (where the Dartbrook Project is located) is more favourable than that applying in Nature of investment Queensland. There is a risk that the regime is amended to raise royalties, which would cause a significant Any potential investor should be aware t
Slide 32: Contact Information
Contact Information General Enquiries: Investors: ASX code: AQC Murray Aitken Matt Sullivan Senior Commercial Manager Meridian Investor Relations M. +61 (0)408 932 158 M. +61 (0)412 157 276 E. maitken@aqcltd.com Not for release or distribution in the United States 32
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