Whitehaven Coal Limited · ASX:WHC
Whitehaven Coal — Aston Resources — Investor Presentation (January 2011)
19 slides from Whitehaven Coal's investor presentation, January 2011
Slide 1: Disclaimer
Disclaimer This presentation has been prepared by Aston Resources Limited (Aston) and consists of written materials/slides for a presentation concerning Aston. By reviewing/attending this presentation, you agree to be bound by the following conditions. No representation or warranty, express or impli
Slide 2: Overview of Aston Resources
Overview of Aston Resources Description ASX-listed coal development company that owns Aston Resources Board 100%(1) of the Maules Creek project - a large-scale, premium quality coal asset Mark Vaile Todd Hannigan Tom Todd Non-Executive CEO CFO Share price A$8.54 Chairman Shares(2) 204.5m Market cap
Slide 3: ITOCHU investment
ITOCHU investment ITOCHU to acquire 15% of Maules Creek for A$345m Key terms of the transaction Benefits for Aston A$345m payable in a single tranche upon transaction completion 100% upfront payment significantly enhances funding position Transaction subject to: − FIRB approval − ministerial c
Slide 4: Maules Creek overview
Maules Creek overview Source: Reproduced with permission of Industry and Investment NSW World class JORC Reserve and Resource 16km from the main railway line Well understood geology enabling simple, base, one of Australiaʼs largest coal high productivity open-cut coal mining 380km from the N
Slide 5: First commercial coal by 2012
First commercial coal by 2012 Aston has met all IPO milestones to date; Maules Creek remains on target Financing Approvals Noonday acquisition financing Feb 2010 Lodge Part 3A Project Application and preliminary EA Aug 2010 report to Department of Planning (“DOP”) Pre-IPO financing May 2010
Slide 6: High yields and attractive product mix
High yields and attractive product mix High margin operation expected to produce ~10.8Mtpa saleable production Production expected to commence in 2012, ramping up to Maules Creek Expected Saleable Production steady state production in three years CHPP will be a single stage 1,600tph wash plant d
Slide 7: Sufficient rail capacity for full ramp-up
Sufficient rail capacity for full ramp-up Rail expansion initiatives will provide sufficient rail capacity for Maules Creek Rail capacity is unlikely to be a constraint Forecast Production from Gunnedah Basin and Capacity − Rail capacity can be increased and at relatively low cost − Miners are not
Slide 8: Significant port capacity expansions
Significant port capacity expansions Significant port capacity will be available for Maules Creek coal exports Aston has accepted a take or pay allocation from PWCS Port of Newcastle − 1.7Mtpa from 2013 − 5.0Mtpa from 2015 (capacity to be sourced from T4) PWCS – Kooragang Coal Terminal Aston was
Slide 9: Significant port capacity expansions
Significant port capacity expansions Port capacity is likely to exceed 260Mtpa within 5 years Port of Newcastle Expansion Initiatives Hunter Port of Newcastle Valley CoalHistorical Chain Capacity and Forecast Expansion Capacity Current PWCS has completed its latest stage of expansion, Project 3Exp
Slide 10: Excess port capacity will be available
Excess port capacity will be available Significant excess port capacity will be available HunterForecast Aston Valley Coal PortChain of Newcastle CapacityThroughput Expansion by Coal Producer Aston expects there to be significant spare port capacity at Newcastle from 2011 onwards Despite the “no
Slide 11: Low capital intensity
Low capital intensity Very low capital intensity when compared to other emerging coal basins - such as the Surat and Galilee Maules Creek Expected Development Capex Development capital until first coal forecast to be A$463 million, including 15% contingency Development Capex Total (A$m)1 Existin
Slide 12: Compelling project economics
Compelling project economics Average FOB cash costs (pre royalties) expected to be A$56/t1 Maules Creek is expected to be a second quartile producer First 20 Years Average Costs (pre royalties) - (A$/t) of semi-soft coking and HV PCI coals Mining 31.7 12.2mtpa ROM, truck and shovel Strip ratio of
Slide 13: High operating cash margins
High operating cash margins Aston has the potential to generate significant cash margins Indicative Aston cash margin at 2011 Q1 prices Astonʼs estimated cash margin is A$94/t(1) at 2011 Q1 prices Assuming long-term consensus coal prices and FX, Astonʼs cash margin is $55/t(2) Reflects high pr
Slide 14: Well understood, attractive geological setting
Well understood, attractive geological setting Low risk, simple open cut mining operations Multiple shallow coal seams with no significant faulting identified Shallow-dipping deposit (from west to east) with consistent coal quality across the largely uniform coal seams Low strip ratio of 6.4:1
Slide 15: High quality metallurgical and thermal coal
High quality metallurgical and thermal coal Well suited to the Asian metallurgical and thermal coal markets In-situ coal quality provides flexibility to Maules Creek SSCC qualities in comparison to other regions produce semi-soft coking, high-volatile PCI and premium thermal coals Attractive coa
Slide 16: Leverage to the metallurgical coal market
Leverage to the metallurgical coal market Strong semi-soft coking coal outlook supported by strong fundamentals Tight demand and supply conditions in the metallurgical 2008 Global SSCC Suppliers Market Share (34Mt) coal markets expected to persist for several years − Recovery growth across develop
Slide 17: World class reserves
World class reserves Maules Creek is one of the largest Australian coal deposits1 One of the last major undeveloped coal deposits in New Maules Creek JORC Reserves South Wales Recoverable Marketable Mt Reserves Reserves Geology well understood and mine planning undertaken Proved 151 69 with high
Slide 18: Maules Creek – a world class coal project
Maules Creek – a world class coal project One of the largest metallurgical coal deposits in Australia Metallurgical coal production (57% of saleable production) compares favourably to ASX listed peers Marketable Reserves of Australian Coal Mines/Projects1 Indicative Production Split of Selected Au
Slide 19: Competent Persons Statement
Competent Persons Statement The information in this presentation that relates to Coal Reserves is based on reserve estimates compiled by Mr Paul Westcott, BE (Mining, Hons) FAusIMM, MMICA, is a Fellow of the Australasian Institute of Mining and Metallurgy and a member of the Mineral Industries Consu
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