Slide 1: Whitehaven Coal Limited Investor Presentation
For personal use only Whitehaven Coal Limited Investor Presentation March 2008
Slide 2: Disclaimer
For personal use only Disclaimer Statements contained in this material, particularly those regarding the possible or assumed future performance, costs, dividends, returns, production levels or rates, prices, reserves, potential growth of Whitehaven Coal Limited, industry growth or other trend projec
Slide 3: Qualifications and Statement
For personal use only Qualifications and Statement The information in this report that relates to Coal Resources and Reserves of the Whitehaven Group is based on information compiled by Mr David West, who is a Member of the Australasian Institute of Mining & Metallurgy. Mr West MAusIMM is a qualifie
Slide 4: Contents
Contents For personal use only Company Background • A Snapshot • Assets • People FY 2007 Outcomes • Operations • Financials Expansion Programme FY 2008 Outlook • Coal Markets • Financials Looking Ahead March 2008 3
Slide 5: Whitehaven Coal - a snapshot
Whitehaven Coal - a snapshot For personal use only Company founded in 1999 by the Managing Director, Keith Ross, AMCI and other senior coal industry executives. Profitable every year since formation IPO’d in June 2007 at $1.00/share Superior quality coal produced from relatively low cost mines Exist
Slide 6: Whitehaven's assets
Whitehaven’s assets For personal use only Narrabri (92.5%) • Coal Type: Thermal • Underground mine in development Bonshaw (66.7% interest) (North) and exploration project (South) • Coal Type: Coking • Narrabri North Resources of 230 Mt and • Exploration prospect at exploration include Reserves of 10
Slide 7: Whitehaven is the leading developer in the Gunnedah Basin
Whitehaven is the leading developer in the Gunnedah Basin For personal use only Whitehaven has the “first mover advantage” in the Gunnedah Basin Whitehaven’s tenement area exceeds 427 km2 Managed production of ~3.5 Mtpa from 3 mines Three greenfield projects in the pipeline – Belmont – Narrabri Nort
Slide 8: Substantial growth
Substantial growth For personal use only Canyon To go on “stand-by” as new, low strip ratio Belmont mine is developed Tarrawonga Open cut producing 1.5 Mtpa of thermal and PCI/SSCC coal Werris Creek Open cut producing 1.5 Mtpa of thermal and PCI coal Belmont New open cut…first production Q3 CY2008 a
Slide 9: Large portfolio of superior quality coal
Large portfolio of superior quality coal For personal use only Project JORC Resources JORC Marketable Reserves (Mt) (Mt) Whitehaven Mining Precinct 170.8 15.3 Werris Creek 26.3 - Narrabri 438.2 102.7 Total 635.3 118.0 Whitehaven has a history of converting Resources to Reserves Whitehaven’s superior
Slide 10: Whitehaven has +600Mt of JORC Resources
Whitehaven has +600Mt of JORC Resources For personal use only Project Ownership Status Measured Indicated Inferred TOTAL Canyon 100% Operating TBD TBD TBD TBD Tarrawonga Open Cut 70% Operating 8.3 11.0 24.0 43.3 Tarrawonga Seam Underground 100% Feasibility 2.7 8.0 5.0 15.7 Tarrawonga Underground – O
Slide 11: Resources include +100Mt of JORC Reserves
Resources include +100Mt of JORC Reserves For personal use only Reserves (Mt) Project Proved Probable Recoverable From From Marketable (Proved + Proved Probable Probable) Canyon - - - - - - Tarrawonga Open Cut - 8.9 8.9 - 7.7 7.7 Tarrawonga Seam Underground - - - - - - Tarrawonga Underground – Other
Slide 12: Relatively high ROM productivity
Relatively high ROM productivity For personal use only ROM (“Run-of-Mine”) Production / Employee (NSW Opencut Mines) March 2008 11
Slide 13: High yield = high saleable productivity
High yield = high saleable productivity For personal use only Whitehaven mines have average saleable yield of 93% vs. average Hunter Valley yield of ~75% Saleable Production / Employee (NSW Opencut Mines) March 2008 12
Slide 14: Experienced managers/owners
Experienced managers/owners For personal use only Director/Title Experience • Directors have over 200 years of cumulative experience. John Conde AO +30 years commercial experience • Directors have a proven track Non-Executive Chairman record as mine developers and Keith Ross +50 years coal industry
Slide 15: Contents
Contents For personal use only Company Background • A Snapshot • Assets • People FY 2007 Outcomes • Operations • Financials Expansion Programme FY 2008 Outlook • Coal Markets • Financials Looking Ahead March 2008 14
Slide 16: Highlights
Highlights For personal use only • ASX listing in June 07 at $1.00/share • Canyon and Werris Creek mines have performed well, producing 2.2 Mtpa • Tarrawonga Mine was successfully commissioned, now producing 1.5 Mtpa • Acquired remaining 60% interest in Werris Creek…WHC now owns 100% • Acquired sign
Slide 17: FY 2007 financial results
FY 2007 financial results * For personal use only Measure Prospectus Forecast Actual Result for for FY2007 FY2007 NPAT $10.2M $24.1M Revenue $120M $106M EBITDA $25.8M $39.4M Earnings per Share 3.2¢ 8.0¢ Net Cash Flow $12.5M $19.4M Capex $53M $54M End of Year Cash $21.1M Net Debt $56M Gearing 18% * P
Slide 18: Contents
Contents For personal use only Company Background • A Snapshot • Assets • People FY 2007 Outcomes • Operations • Financials Expansion Programme FY 2008 Outlook • Coal Markets • Financials Looking Ahead March 2008 17
Slide 19: Established production with high growth
Established production with high growth For personal use only Planned Production by Mine (100% basis) Planned Production by Coal Type (100% basis) 14 14 12 12 Production (Mtpa) Production (Mtpa) 10 10 8 Narrabri North 8 Werris Creek 6 6 Sunnyside Tarrawonga o/cut Thermal 4 4 Belmont Semi-soft 2 Cany
Slide 20: New projects are on track and coordinated with infrastructure development
New projects are on track and is coordinated with planned infrastructure development For personal use only March 2008 19
Slide 21: Narrabri North Coal Project
Narrabri North Coal Project For personal use only 8 7 6 Production (Mtpa) 5 4 3 2 1 0 FY2006a FY2007f FY2008f FY2009f FY2010f FY2011f FY2012f Location Adjacent to existing rail, power and road infrastructure Strategic JV partner Yudean is a major Chinese generator with a 7.5% JV stake and committed
Slide 22: Rail infrastructure will meet Whitehaven's growth
Rail infrastructure will meet Whitehaven’s growth For personal use only Current rail capacity is 4 Mtpa north of Werris Creek and 7 Mtpa south of Werris Creek…sufficient to meet Whitehaven’s current production Planned rail capacity is sufficient for Whitehaven’s needs for the medium term − 15 Mtpa t
Slide 23: Port infrastructure expected to meet Whitehaven's growth plans
Port infrastructure expected to meet Whitehaven’s growth plans For personal use only Existing PWCS Terminal − PWCS port at Newcastle is experiencing capacity constraints − PWCS’s capacity of 95 Mtpa in CY2008 with planned expansion in CY2009 to 113 Mtpa Newcastle Coal Infrastructure Group (“NCIG”) −
Slide 24: Contents
Contents For personal use only Company Background • A Snapshot • Assets • People FY 2007 Outcomes • Operations • Financials Expansion Programme FY 2008 Outlook • Coal Markets • Financials Looking Ahead March 2008 23
Slide 25: Strong markets
Strong markets For personal use only Demand • Global demand for export coking and thermal coal continues to grow very strongly and is forecast of continued strength for some years. Supply • Supply from new Australian developments will fall short of predicted demand. • China’s export thermal coal is
Slide 26: FY 2008 - Months to December 2007
FY 2008 – 6 Months to December 2007 For personal use only YTD Dec 07 YTD Dec 06 Saleable Production (kt) 903 638 Sales (kt) 910 598 Stock (kt) 352 198 EBITDA (A$000’s) 13,128* 12,061 NPAT (A$000’s) (372) 9,922 * Before non-cash share based payments ADVERSE IMPACTS ¾Demurrage ¾Depreciation adjustment
Slide 27: Contents
Contents For personal use only Company Background • A Snapshot • Assets • People FY 2007 Outcomes • Operations • Financials Expansion Programme FY 2008 Outlook • Coal Markets • Financials Looking Ahead March 2008 26
Slide 28: The next months
The next 6 months For personal use only ¾Higher coal prices, but still affected by rump of legacy contracts ¾Higher A$, but offset by in-the-money FX contracts ¾Continued port congestion, but potential for reduced demurrage ¾Increased port allocation ¾Increased rail capacity and lower rail rates ¾Co
Slide 29: Where to from here? Near Term Objectives
Where to from here? For personal use only Near Term Objectives • Continue to efficiently manage our existing operations • Werris Creek - improvements and extended life • Rail upgrade – support increased shipping, lower rates • Port – supporting new production – PWCS & NCIG • Deliver Narrabri, Belmon
Slide 30: Where to from here? Medium Term Objectives
Where to from here? For personal use only Medium Term Objectives • Whitehaven has grown rapidly over 5 years. Our growth will continue…we will build on our success and leverage our asset base. • Industry consolidation will continue and Whitehaven will play its part. • Grow earnings and dividends per