Stanmore Resources Ltd · ASX:SMR
Stanmore Resources — Stanmore Coal — Investor Presentation (November 2013)
23 slides from Stanmore Resources's investor presentation, Nov 13, 2013
Slide 1: Investor Presentation November 2013
For personal use only INVESTOR PRESENTATION November 2013
Slide 2: Important Information
IMPORTANT INFORMATION For personal use only This document has been prepared by Stanmore Coal Limited (“Stanmore Although due care and attention has been used in the preparation of Marketable Reserves Note: The Marketable Coal Reserves of 94Mt is Coal”) for the purpose of providing a company and tech
Slide 3: About Stanmore Coal
ABOUT STANMORE COAL For personal use only Queensland based coal Emerging coking coal Strong Board and Well funded with a strong development company producer at Belview management team with shareholder base proven track record of Founded in 2008 Additional pipeline of No take or pay obl
Slide 4: Strong Board and Management Team
STRONG BOARD AND MANAGEMENT TEAM For personal use only Neville Nick Stephen Viv Andrew Sneddon Jorss Bizzell Forbes Martin Chairman Managing Director Director Director Director Mining engineer with 20 years in Extensive experience Over 40 years of 15+ years in 37 years experience in engineering, pro
Slide 5: Strong Board and Management Team
STRONG BOARD AND MANAGEMENT TEAM For personal use only Over 150 years of coal exploration, development and operational experience Chris Doug Vaughan Mike McKee McAuliffe McAlpine Wishart Chief Operating Director Chief Financial General Manager Officer Officer and Project Company Secretary Developmen
Slide 6: Located in Queensland's Premier Coal Basins
LOCATED IN QUEENSLAND’S PREMIER COAL BASINS For personal use only Emerging Bowen Basin coking coal producer at Belview Belview hosts high quality underground coking coal on existing rail line First coking coal exports planned from Belview in 2017 Pipeline of additional coal projects Lilyvale h
Slide 7: Belview Project
BELVIEW PROJECT For personal use only Significant coking coal project in the Bowen Basin 100% owned Substantial coking coal deposit in heart of the Bowen Basin – initial 322 Mt JORC Inferred Resource Coal quality results to date confirm attractive coking properties across multiple seams Infras
Slide 8: Belview Project: Initial coal quality test results
BELVIEW PROJECT For personal use only Primary Secondary Initial coal quality test results are very positive Parameter1 HCC PCI Product Product Product Split % 62 38 Initial coal testing from bore cores indicate that Belview will produce a Hard Coking Coal (“HCC”) primary product and a Inherent Moi
Slide 9: Belview Project: Exploration Target
BELVIEW PROJECT Exploration Target 1 JORC Inferred Thickness For personal use only Seam Resource (Mt) (m) Low High Aries - n/a 102 152 High quality underground coking coal Castor 107 2.6 33 48 project Pollux 166 3.2 Substantial resource base with potential for growth Gemini 23 6.7 with more drilli
Slide 10: Belview Project: First coal target 2017
BELVIEW PROJECT For personal use only First coal target 2017 Inferred drilling program recently completed Mining Lease Application submitted Coal quality update expected shortly from recent drilling within MLA area Value engineering and cost reduction program commenced with an objective of a
Slide 11: Belview Project: Clear path to production
BELVIEW PROJECT For personal use only Clear path to production Low risk/relatively straightforward approvals – no strategic cropping land Access to existing rail line and port 2013 2014 2015 2016 2017 2018 2019 Item Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
Slide 12: Queensland Coking Coal Market
QUEENSLAND COKING COAL MARKET For personal use only Coking coal price is Cost environment is Currency dynamics The Bowen Basin recovering improving have started to remains the premier Recent settlement at $152/t Construction market has normalise source of hard coking for hard coking coal – spot
Slide 13: Queensland Coking Coal Market
QUEENSLAND COKING COAL MARKET “ For personal use only Strong outlook for Met coal supply growth in recent years has been strong, recovery particularly from Australia, Canada and the USA, Asian off-take interest in resulting in a glut of supply on the seaborne market. Queensland coking coal remains
Slide 14: Lilyvale Project
LILYVALE PROJECT For personal use only Coking coal project The Lilyvale Project is targeting the German Creek seam which is mined as a prime coking coal at nearby operating mines: - Kestrel UG Longwall (Rio Tinto) - Crinum UG Longwall (BMA) Historical drilling results and knowledge of surroundin
Slide 15: The Range Thermal Coal Project
THE RANGE THERMAL COAL PROJECT For personal use only Open cut, high energy, export grade thermal coal mine 100% owned Feasibility Study complete on 5 Mtpa open cut export thermal coal mine over 25 years High energy, low emission thermal coal sought after in Asia EIS completed and Mining Lease
Slide 16: The Range Thermal Coal Project: High energy export thermal coal
THE RANGE THERMAL COAL PROJECT For personal use only High energy export thermal coal Quality Surat Comment Surat Basin coals are typically clean burning with good burnout Walloon characteristics and low nitrogen, ash and sulphur Coals Suitable for all key markets including Japan, China, Korea an
Slide 17: Stanmore Coal's Strategy
STANMORE COAL’S STRATEGY For personal use only Driving towards production with disciplined growth The Company’s strategy over the next twelve months is to: Deploy capital Undertake value Selectively pursue low Minimise overhead judiciously, where long engineering for key capital, high-value costs te
Slide 18: Reserves, Resources and Targets
RESERVES, RESOURCES AND TARGETS For personal use only JORC JORC Marketable Recoverable JORC JORC JORC Coal Coal Measured Indicated Inferred Total JORC Additional Exploration Project Reserve1,2 Reserve1,2 Resource1 Resource1 Resource1 Resource1 Target3 Low High The Range Thermal 94.2 117.5 18.0 187.0
Slide 19: Coking Coal Market Background
For personal use only COKING COAL MARKET BACKGROUND 19
Slide 20: Efficient Development
EFFICIENT DEVELOPMENT For personal use only Juniors have efficiently developed the Nominal majority of greenfield developments Initial production New mine First year of explorer/develop Current capacity in QLD over the last decade development production er owner (Mtpa) Of the 11 greenfield operati
Slide 21: Efficient Development: Capital intensity for all projects
EFFICIENT DEVELOPMENT For personal use only Capital intensity for all projects Source: Wood Mackenzie, Company announcements. Note: Bubble size is proportional to production. 21
Slide 22: Steel Production Strength
Global metallurgical coal demand (million tonnes) STEEL PRODUCTION STRENGTH For personal use only Steel production strength is likely to continue as the urbanisation of China continues The urbanisation of China will continue to underpin strong steel demand, particularly in the lesser developed cen
Slide 23: Supply Growth
At 15% IRR, ~60% of new metallurgical production at risk SUPPLY GROWTH For personal use only Future coking coal supply growth is likely to come from Australian prime deposits The Bowen Basin exports quality hard coking coals which will continue to be among the most highly valued in the global mark
Stanmore Coal — Investor Presentation (November 2013) on 6ix