Bowen Coking Coal Ltd · ASX:BCB
Bowen Coking Coal — Merger or Acquisition (June 2020)
24 slides from Bowen Coking Coal's merger presentation, Jun 24, 2020
Slide 1: Acquisition of Broadmeadow East Coking Coal Project
Acquisition of Broadmeadow East Coking Coal Project Committed to growth through Investor Presentation quality asset development June 2020
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by Bowen Coking Coal Limited (BCB, reliance on forward-looking statements. Any forward-looking statements in this ASX:BCB or Bowen). This document contains background information about presentation speak only at the date of issue of this presentation. B
Slide 3: Aspiring to be Australia's next mid tier coking coal producer
Aspiring to be Australia’s next mid tier coking coal producer Acquiring Broadmeadow East, an advanced coking coal project in the Bowen Basin Transition from Explorer/ Coking coal focus Developer to Producer within #1 coking basin in the world Multi coking coal project portfolio with 3 advanced open
Slide 4: Capital structure (Post Placement)
Capital structure (Post Placement) Share distribution ASX: BCB Shares on issue post 45m placement 848,762,262 Price as at 19 June 2020 $0.054 Market capitalisation $45.83m Cash as at 31 March 2020 >$2.87m Cash raised in placement (before cost) $2.25m 38% 35% Enterprise value $40.71m Unlisted options
Slide 5: Coking coal projects in premium locations within the Bowen Basin
Coking coal projects in premium locations within the Bowen Basin 5
Slide 6: Staged asset development to target quickest way to production
Staged asset development to target quickest way to production Broad Meadow East Open Cut (Conditional Isaac River Open Cut (100%) Acquisition) 1 • 8.7Mt JORC. Stage 1 small open pit project. • Granted Mining Lease (unmined) Fast tracking development • 33Mt JORC. 11Mt shallower than 100m fully explor
Slide 7: Broadmeadow East – ML70257 (conditional acquisition)
Broadmeadow East – ML70257 (conditional acquisition) Advanced Project JORC Resource Granted Mining Lease estimate of 33Mt (unmined) (6.5Mt Measured, 4.1Mt Land Access Agreement Indicated and 23Mt in place Inferred) De-amalgamation from approved Burton EA Access for 1Mtpa, up to 11Mt shallower than 2
Slide 8: Broadmeadow East
Broadmeadow East • Transaction still conditional*: - $1m cash on completion - Royalty of $1 per tonne, capped at 1.5Mt - Land access of $500k (Peabody is the land owner) - Assumption of environmental rehabilitation obligations (minimal as previously unmined) - 1Mtpa access to New Lenton Joint Ventur
Slide 9: Broadmeadow East Coal Quality
Broadmeadow East Coal Quality • Options to wash a primary coking product with high energy secondary thermal coal • Coking coal to thermal coal ratio ranging between 75% and 86% • Total yields ranging between 40% and 90% depending on area and final product ash selection • Studies underway to test was
Slide 10: Broadmeadow East Next Steps
Broadmeadow East Next Steps • Completion underway, expected within 3–6 months • Evaluate several mine operation options to determine the best value proposition • Conduct formal mine planning and marketing studies to support financial modelling • Advancing Environmental Studies to support major EA am
Slide 11: Isaac River – MLA700062/EPC 830
Isaac River– MLA700062/EPC 830 Premier location: Goonyella rail system Along strike of BMA’s within 3km. Several Daunia mine wash plants with additional capacity Higher rank Rangal coal available in the area JORC Resource Leichhardt seam estimate of 8.7Mt (Rangal Coal Measures) (5.7Mt Measured, 2.6M
Slide 12: Isaac River Development and Permitting
Isaac River Development and Permitting • Mining License Application lodged • Environmental authorisation application near completion • Various mine planning scenarios completed, with Contractor Miner, off site infrastructure sited as best development option • Costing up of mine plans and discussions
Slide 13: Mt Hillalong JV (Sumitomo 10%)
Mt Hillalong JV (Sumitomo 10%) Hillalong Acquired EPC1824 from Maiden North and North Australian Pacific Coal South drilling programs (ASX: AQC); EPC2141 complete from Rio Tinto Hillalong Premier location Maiden JORC Resource South proximate to Glencore’s of 43Mt @ Hillalong Hail Creek JV (82%) Nort
Slide 14: Hillalong North Program
Hynds Upper Resource Area and Depth of Cover Hillalong North Program • Phase 1 program designed with Xenith and Sumitomo, to maximise coverage and definition for low cost open pit start • Coal intersected at 26 of the 27 sites drilled, less than 10% of the tenement surface area. • 6 sites successful
Slide 15: Hillalong North Maiden Resource Statement
Hillalong North Maiden Resource Statement Depth Seam Indicated Inferred Total <150m Elphinstone 4.0 4.5 8.5 Hynds Upper 9.1 1.9 11.0 Subtotal 13.1 6.4 19.5 >150m Hynds Upper 7.7 15.9 23.7 Subtotal 7.7 15.9 23.7 TOTAL 21.0 22.0 43.0 Note – Some rounding to the nearest significant figure has occurred
Slide 16: Hillalong South Program
Hillalong South Program • Target seams intersected in four of the five target sites • Cumulative coal seam thickness per hole ranged between 6.5m and 14m • Two additional holes (HILL018 & HILL019) drilled above interpreted sub‐crop line did not encounter any coal, thus confirming the geological inte
Slide 17: Hillalong South Coal Quality
Hillalong South Coal Quality* • Primary coking coal with secondary PCI for a combined yield of up to 89%, or a primary coking coal with secondary energy coal for a combined yield of up to 87%, from the two holes not materially affected by igneous intrusions Primary coking coal with secondary PCI opt
Slide 18: Cooroorah
Cooroorah ‘BOWEN COKING | Cooroorah COAL | Neighbourhood 4 ca [5 eccmor sss (Coronede MOLI62 Roads and rocks Drainage @)
Slide 19: Cooroorah Project
Cooroorah Project Down dip from Coronado Global Also adjacent to Jellinbah Mine Potential for large scale Resources’ (ASX:CRN) Curragh Mine (Anglo, Sojitz, Sam Chong and underground coal mine producing that produced Hard Coking Coal, Marubeni) that produces low vol PCI HCC, with secondary PCI, or PC
Slide 20: Mammoth Seam – exceptional metallurgical coal
Mammoth Seam – exceptional metallurgical coal • Potential for a 3.5% ash, 8–9 CSN Mammoth Seam coking coal fraction compared to a range of international coking coal with secondary 10% traded coking coals (ad) ash 7560K/kcal/kg PCI for a combined lab yield of more than 90% (ad) • Mammoth seam has som
Slide 21: Carborough (EPC1860)
Carborough (EPC1860) Acquired from Rio Tinto Historical drilling as part of Hillalong intersected coalesced Elphinstone and Hynds seams Historical quality in regional drill holes are encouraging Rio Tinto agreement Potential synergies with renegotiated to remove neighbouring buy back and EPC1860 ope
Slide 22: Marketing Joint Venture and Funding Facility with M Resources
Marketing Joint Venture and Funding Facility with M Resources* 50:50 Joint Venture Market co will engage M Market co could source Formal agreements between BCB and M Resources to operate and externally produced coal complete, and shareholder Resources (“Market co”) to administer the JV under for ble
Slide 23: Short/medium term action plan
Short/medium term action plan Isaac River Lodge Advance Environmental Advance infrastructure Authority pre-feasibility Mining contractor Advance funding discussions Application studies discussions discussions Finalise off-take Environmental Authority and ML Application (ongoing process in parallel)
Slide 24: Contact
Contact Gerhard Redelinghuys Blair Sergeant Managing Director Director: Corporate Development T: +61 7 3360 0837 M: +61 413677110 E: gerhard@bowencokingcoal.com E: blair@bowencokingcoal.com COMPETENT PERSON STATEMENT The information in this report relating to this announcement relating to Mineral Re
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