High Peak Royalties Limited · ASX:HPR
High Peak Royalties — Shareholder Meeting (November 2019)
20 slides from High Peak Royalties's shareholder meeting presentation, Nov 29, 2019
Slide 1: AGM Presentation
For personal use only AGM Presentation 29 November 2019
Slide 2: Disclaimer
Disclaimer For personal use only The material in this presentation (material) is not and does not constitute an offer, invitation or recommendation to subscribe for, or purchase any security in High Peak Royalties Limited (HPR) nor does it form the basis of any contract or commitment. HPR makes no r
Slide 3: Corporate Overview
Corporate Overview For personal use only Capital Structure – HPR.ASX Share price from November 2017 to date As at 25 November 2019 Ordinary Shares on Issue 189m Market Capitalisation at $0.10/share $18.9m Cash Balance $1.1m Royalco Resources stake (ASX: RCO) $1.3m Board Andy Carroll Non-Executive Ch
Slide 4: Why royalties?
Why royalties? For personal use only Investing in energy sector without the Capex and Opex risks. Generate strong cash flows and high yield returns. Royalty companies have achieved high Price/earning multiples. Directly linked to commodity prices. Highly scalable with low fixed-overhead cost structu
Slide 5: Three interesting models in the royalty market
Three interesting models in the royalty market For personal use only • Franco Nevada acquired the • London based royalty • Established in Sydney, 2019 first royalty for US$2 company (LSE:APF) paid 6% • Target $150m and IPO million. Goldstrike has since dividend based on Kestrel coal • Has raised cir
Slide 6: Why High Peak Royalties?
Why royalties? Why High Peak Royalties? For personal use only Specialists in identifying and acquiring low-cost opportunities with significant upside. Proven deal finders and better deal makers. A broad portfolio of royalties across Australia and the USA. A balanced portfolio of exploration, develop
Slide 7: Not if, but when.
For personal use only Not if, but when.
Slide 8: Royalties often unloved or undervalued at early stages
Royalties often unloved or undervalued at early stages or fully-priced when in production. For personal use only EXPLORING DISCOVERY PRE-PRODUCTION PRODUCTION “If” “When” “Soon” “Now” PRICE TIME
Slide 9: Difficult to value at pre-production; this is where the opportunity lies
Difficult to value at pre-production – requires in-depth industry understanding of risks and potential. However, this is where the opportunity lies. For personal use only EXPLORING DISCOVERY PRE-PRODUCTION PRODUCTION “If” “When” “Soon” “Now” PRICE OPPORTUNITY TIME
Slide 10: HPR has a balanced portfolio.
HPR has a balanced portfolio. For personal use only EXPLORING DISCOVERY PRE-PRODUCTION PRODUCTION “If” “When” “Soon” “Now” WA 482P PL 101 PL 101 PL 101 PRICE Amadeus WA 315 VIC L29 USA EP 115 PL 171 ATP 299P ATP 574 USA Amadeus TIME
Slide 11: Revenue of current royalties increases over time.
Revenue of current royalties increases over time. Dukas For personal use only CTP exploration Browse Shell CSM ETC REVENUE TIME *Revenue approximate, not to scale
Slide 12: Revenue increasing. Costs under control.
Revenue increasing. Costs under control. For personal use only
Slide 13: Case history 1. USA production.
Case history 1. USA production. For personal use only • Acquisitions through personal connections and local knowledge • Oil and gas production • Steady contribution to revenue • Acquisition of Planet Gas completed Dec 2018 – Boosted revenues. – Cost $1 plus assumption of debt.
Slide 14: Case history 2. Amadeus Basin, Northern Territory.
Case history 2. Amadeus Basin, Northern Territory. For personal use only • HPR has royalties covering much of Amadeus basin • Increasing drilling activity: • 2019 Santos drilled Dukas; “suspended, positive indicators” • 2020 active drilling by Central Petroleum including 29 million bbl target Mamlam
Slide 15: Case history 3. Queensland.
Case history 3. Queensland. For personal use only • Shell operated CSM – Large resource to be developed • Origin operated PL 101 – Revenue from Peat Gas Field has already paid off 83% of acquisition – Deep Bowen Basin drilled, will be flow-tested December 2019 – Origin announced 6-10 fold increase i
Slide 16: What to expect in 2020...
What to expect in 2020... For personal use only • Fitzroy (ASX: FZR) takeover bid for RCO provides potential profit and $1.3 million cash if HPR accepts and bid completes • Origin due to flow test deep Bowen Basin well in December 2019 • Origin has announced 6-10 fold increase in the Peat Gas Field
Slide 17: High Peak Royalties. Poised for growth.
High Peak Royalties. Poised for growth. For personal use only 1. Invest in energy sector without Capex and Opex risks. 2. High Peak has a compelling and proven business model. 3. Strong board and management team with proven track record. 5. A well balanced portfolio with significant upside. 6. Multi
Slide 18: Summary of Royalty Interests
Summary of Royalty Interests Project / Property Royalty Operator / State Location Production / Near Term Production Interest Owner Peat Gas Field (PL 101) QLD Onshore, Bowen Basin 2.13% Origin For personal use only Longtom Gas Condensate Field (VIC L29) VIC Offshore, Gippsland Basin 0.30% SGH Energy
Slide 19: Thank you
Thank you For personal use only Contact details for further information or enquiries: Andrew Carroll Jarrod White Philip Leighfield 0418 234 526 02 8296 0000 02 8296 0000 andrew.carroll@highpeak.com.au jarrod.white@highpeak.com.au philip.leighfield@highpeak.com.au Chairman Chief Financial Officer Jo
Slide 20: High Peak Royalties. Where to from here?
For personal use only High Peak Royalties. Where to from here?
High Peak Royalties — Shareholder Meeting (November 2019) on 6ix