Stanmore Resources Ltd · ASX:SMR
Stanmore Resources — Stanmore Coal — Investor Presentation (March 2020)
24 slides from Stanmore Resources's investor presentation, Mar 2, 2020
Slide 1: Investor Presentation 2-3 March 2020
For personal use only INVESTOR PRESENTATION 2-3 MARCH 2020 0
Slide 2: Important information
Important information For personal use only This document has been prepared by Stanmore and needs and seek appropriate advice, including projections, guidance on future Coal Limited (“Stanmore Coal”) for the purpose including financial, legal and taxation advice earnings and estimates are provided a
Slide 3: Certainty and Performance
Certainty and Performance For personal use only PROJECT / INVESTMENT PIPELINE – SOURCE ROM COAL PIPELINE WITH DISCIPLINE – Isaac Plains Mine -> Isaac Plains East -> Isaac Downs COAL QUALITY – improving the mix of metallurgical coals -> average coal price preserved in a falling market Isaac Plains –
Slide 4: Stanmore Coal Overview - Certainty & Value
Stanmore Coal Overview - Certainty & Value For personal use only ASX CODE SHARE PRICE Independent Australian metallurgical coal company based in Queensland SMR A$0.781 Positioned with a focus on metallurgical coal (coal used in steel making) with a track record of delivery SHARES MARKET CAP 256,094,
Slide 5: Excellent Financial performance with a 26% increase in Net Profit After Tax
Excellent Financial performance with a 26% increase in Net Profit After Tax with a fully franked 3 cents per share interim dividend declared Stanmore Coal targets a dividend policy of 20-30% of Net Profit After Tax - option for shareholders to re-invest with a Dividend Re-investment Plan at attracti
Slide 6: Overview of Stanmore Operations and Projects
Overview of Stanmore logistics Operations and Projects For personal use only BOWEN Foundations in Metallurgical Coal ABBOT POINT THIS • Isaac Plains Complex (IPC) operational with CHPP MAP capacity of 3.5Mt ROM1 TOWNSVILLE (target 2.4Mt product) ROCKHAMPTON • IPC Marketable Reserves of 35.1Mt 2 MACK
Slide 7: Isaac Plains Complex – value accretive platform
Isaac PlainsComplex – value accretive platform For personal use only Operations Development / Projects • Expansion with Isaac Plains East • Isaac Downs acquired in 2018. completed 2018 taking production Consenting and approvals on track from 1.2Mtpa to 2.4Mt product in FY19 • IPE coking coal quality
Slide 8: Overview – Stanmore customer base
Overview – Stanmore customer base For personal use only Blue Chip Customer Base Focused on metallurgical coal • Over 95% of coal production is for steel making • Key customer base is covered by EUROPE benchmark term contracts with Stanmore Coal increasing into Japan / Korea / India and now Europe KO
Slide 9: Certainty in strategy
Certainty instrategy THE COMBINED EFFECT For personal use only PROJECT / INVESTMENT PIPELINE – SOURCE ROM COAL PIPELINE WITH DISCIPLINE MET COAL QUALITY | COST STRUCTURE | STRIP RATIO | MULTIPLE SOURCES New sources of Isaac Plains Complex Regional Coal Hub metallurgical coal the 2.0Mt 2.4Mt 2.4Mt 5.
Slide 10: Safety, Environment & Community Performance
Safety, Environment & Community Performance Stanmore Coal Safety Statistics Past 12 Months to Date For personal use only 18.0 16.0 14.0 12.0 10.0 8.0 6.0 4.0 2.0 0.0 Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 TRI Frequency Rate (Rolling 12 Months) Industry Av
Slide 11: Continuing Strong Operational Performance and Run Rates Pushing Infrastructure Capacities
Continuing Strong Operational Performance and Run Rates Pushing Infrastructure Capacities First half FY20 performance is on track to meet FY20 guidance of 2.35Mt production and underlying FOB costs of $107/t (ex. royalty) compared to H1FY20 costs For personal use only of $106/tonne (ex. royalty). OP
Slide 12: Key Operating Performance Improvement pivotal
Key Operating Performance Improvement pivotal For personal use only Isaac Plains East mine delivered significant improvements in total overburden removal over last year with a 56 per cent increase in dragline system prime performance (dragline, blast cast and dozer push) from 9.862m bcm to 15.421m b
Slide 13: Development and Outlook
For personal use only Development and Outlook
Slide 14: Outlook and Guidance
Outlook and Guidance Coal Type Price Stanmore Coal Ltd (ASX:SMR) share price For personal use only 350 1.60 35 1.40 30 300 Volume traded (m) 25 Price (A$/share) 250 1.20 US$/tonne 20 200 1.00 15 150 0.80 10 100 0.60 5 50 0.40 - Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Apr-19 Aug-19 Sep-19 Oct-19 Nov-19 De
Slide 15: Isaac Downs Project Execution Timeline
Isaac Downs Project Execution Timeline For personal use only Jun ‘18 Dec’18 Jun’19 Dec’19 Jun’20 Dec’20 Jun’21 Acquisition Environmental Studies – complete Environmental studies • All environmental, social and economic studies have been completed EIS Terms of Reference (ToR) EIS Preparation & EIS pr
Slide 16: Isaac Downs Progress
Isaac Downs Progress…. For personal use only Schedule • Final ToR (Terms of Reference) published by government on 1 October 2019 • EIS lodged on 29 October 2019 and subsequent work underway to update based on DES review • Approval process according to plan – EIS will be on public display shortly • P
Slide 17: The 'Combined Effect' gives returns
The ‘Combined Effect’ gives returns Headline Investment Criteria For personal use only • Underutilised infrastructure • SMR presence • Multi – operator region • Met coal for steel making • Assets others don’t want or can’t develop Added value is essential • Infrastructure / asset grouping synergies
Slide 18: Background Information
For personal use only BACKGROUND INFORMATION
Slide 19: Board of Directors
Board of Directors Wealth of experience creating the building blocks for a growing organisation For personal use only STEWART BUTEL STEPHEN BIZZELL NEAL O’CONNOR JIMMY LIM MARCELO MATOS Non-executive Chairman Non-executive Director Non-executive Director Non-executive, Director Non-executive, Direct
Slide 20: Leadership team
Leadership team For personal use only JON ROMCKE IAN POOLE BERNIE O’NEILL BRENDAN SCHILLING Interim Chief Executive Officer Chief Financial Officer General Manager – Operations Group Manager – Marketing • Current GM Development at Stanmore • 30 years’ experience in financial • More than 30 years’ ex
Slide 21: Additional Information
Additional Information For personal use only For further information, please contact: Jon Romcke Ian Poole Interim Chief Executive Officer Chief Financial Officer & Company Secretary 07 3238 1000 07 3238 1000 About Stanmore Coal Limited (ASX: SMR) Stanmore Coal operates the Isaac Plains coking coal
Slide 22: Appendix A
For personal use only Appendix A
Slide 23: Resources
Resources Stanmore Coal - Coal Resources, June 2019 Coal Measured Indicated Inferred Total Competent Report Project Name Tenement Type * Resources Resources Resources Resources Person Date For personal use only ML 70342, Isaac Plains ML 700018, C,T 22.2 21.3 9 52 A May-18 ML 700019 ML 700016, ML 700
Slide 24: Reserves
Reserves Stanmore Coal - Coal Reserves, June 2019 Coal Reserves Marketable Reserves Competent Report For personal use only Project Name Tenement Proved Probable Total Proved Probable Total Person Date Isaac Plains ML 70342 1.0 0.1 1.1 0.7 0.0 0.7 E Aug-19 Open-cut ML 700016, Isaac Plains East ML 700