Stanmore Resources Ltd · ASX:SMR
Stanmore Resources — Stanmore Coal — Investor Presentation (December 2011)
30 slides from Stanmore Resources's investor presentation, Dec 8, 2011
Slide 1: Capital Raising Presentation
For personal use only Capital Raising Presentation December 2011
Slide 2: Disclaimer
Disclaimer Disclaimer This investor presentation (Presentation) has been prepared by Stanmore Coal Limited (ACN 27 131 920 968) (Stanmore). The Presentation and information contained in it is being provided to shareholders and investors for information purposes only. Shareholders and investors shoul
Slide 3: Offer Details
Offer Details Stanmore Coal to raise approximately $14 million via an institutional placement (Placement) For personal use only Issue price of A$0.74 per share represents: − 9.8% discount to the latest SMR closing price of A$0.82 per share(1) − 11.7% discount to the 5-day VWAP of A$0.838 per sha
Slide 4: Stanmore Coal Overview
Stanmore Coal Overview Coal development and exploration company Key Metrics For personal use only Portfolio of coking, PCI and export thermal coal targets in ASX Code SMR prime coal areas Shares on issue 127.2m (1) Current share price A$0.82 First coal production scheduled for 2015 – targeting
Slide 5: Strong Board and Management Team
Strong Board and Management Team NEVILLE SNEDDON NICK JORSS STEPHEN BIZZELL VIV FORBES For personal use only Chairman Managing Director Director Director Mining engineer with 37 years 20 years in engineering, project Extensive experience in Over 40 years of Bowen Basin coal experience in coal, forme
Slide 6: Stanmore Coal Projects (all 100% owned)
Stanmore Coal Projects (all 100% owned) The Range For personal use only Open cut export quality thermal coal project located 27km SE of proposed Surat Basin rail line. 94Mt Reserves(1), and 229Mt JORC Indicated + Inferred Resources(2) and 60 -70Mt Exploration Target(3). PFS recently completed. Tar
Slide 7: A clear path to key customers
A clear path to key customers Well located to all key markets including Japan, For personal use only China, Korea and India All projects are located close to existing or planned rail and port facilities Rail The Range: existing QR Moura line and tie-in to Surat Basin Rail (2015) Mackenzie: E
Slide 8: The Range Project – Surat Basin Asset Overview
The Range Project – Surat Basin Asset Overview 100% owned For personal use only Significant Reserve/Resource base − 94Mt JORC Marketable Coal Reserves(1) − 229Mt JORC Resource (151Mt Indicated, 78Mt Inferred) − 60 – 70Mt additional Exploration Target(2) High energy export quality thermal coal
Slide 9: The Range Project Coal quality
The Range Project Coal quality High energy export thermal coal For personal use only A premium export thermal coal in the Surat Basin Surat Basin coals are typically clean burning with good burnout characteristics and low nitrogen Product is a high energy, low ash, low sulphur thermal coal S
Slide 10: The Range Project Pre-feasibility study results
The Range Project Pre-feasibility study results Key Highlights For personal use only Asset Description The Range, Surat Basin Confirmed the technical and economic feasibility of the project Project (Queensland) Increased the life of mine from 18 to 26 years JORC Resources(1) / Coal Reserves(2) 2
Slide 11: The Range Project Site layout
The Range Project Site layout For personal use only Proposed site layout Mine industrial area layout Coal product flow sheet 10
Slide 12: The Range Further upside potential
The Range Further upside potential For personal use only Recent drilling to the west of the pit has intercepted additional sub-cropping coal seams Interpreted to be seams in the Argyle interval of the lower Juandah Coal Measures Hole 83R: 11.8m cumulative coal to a depth of 188m including a se
Slide 13: Mackenzie Project Asset Overview
Mackenzie Project Asset Overview For personal use only Bowen Basin – 100% owned Open cut coking coal deposit − 27km of strike (Burngrove Formation) − Main coal seams occur at depths between 10 – 110m Significant Resource base − 143Mt JORC Resource (25.7Mt Indicated, 117.5Mt Inferred) Recently
Slide 14: The Range and Mackenzie Target Development Timeline
The Range and Mackenzie Target Development Timeline Port and Rail infrastructure expected to be available For personal use only Q2 2011 Q2 2011 Q1 2012 Q3 2012 Q2 2013 Q4 2014 H2 2015 Q3 2015 Initial Resource Submit EIS Complete ML/EA application Complete First coal on Ramp up marketable drilling at
Slide 15: Exploration Projects Belview Overview
Exploration Projects Belview Overview 100% owned For personal use only Recently completed the initial 6 hole drilling program 95Mt initial JORC Inferred Resource − Calculated from the Gemini seam only Exploration Target(1) of 205 – 345Mt(2), covers western 26% of lease Additional drilling pr
Slide 16: Exploration Projects Tennyson Overview
Exploration Projects Tennyson Overview 100% owned For personal use only Prospective for underground coking and export thermal coal Located adjacent to Emerald Initial scout drilling program complete Exploration Target(1) of 220 – 290Mt Further drilling programme planned for H2 2011 Targe
Slide 17: Exploration Projects Kerlong Overview
Exploration Projects Kerlong Overview 100% owned For personal use only Targeting high quality, underground coking and PCI coal Drilling programme commenced Target seams mined nearby including: − Burton (Peabody) − South Walker Creek (BHP Mitsubishi) − Carborough Downs (Vale) − Coppabella (Maca
Slide 18: Exploration Projects New Cambria Overview
Exploration Projects New Cambria Overview 100% owned For personal use only Potential for low-volatile, high energy, low to medium ash PCI coal Exploration program planned for 1H 2012 Along structural trend from Yarrabee Mine (Felix Resources/Yancoal) Targeting up-thrust Rangal Coal Measures
Slide 19: Attractive dynamics for metallurgical and thermal coal markets
Attractive dynamics for metallurgical and thermal coal markets Coal Market Overview Growth in metallurgical coal market For personal use only Metallurgical coal demand driven by increasing steel production and Forecasts consumption in Asia, particularly China and India. China expected 350 Metallur
Slide 20: Key Milestones
Key Milestones Next 12 months For personal use only H2 2011 H1 2012 H2 2012 2015 Commence definitive Pre Feasibility Study feasibility study at The Continued drilling at Target first coal completed at The Range The Range to production Range upgrade Reserves from both Projects Select strate
Slide 21: Investment Highlights
Investment Highlights 1 Attractive pipeline of Queensland coal projects at various stages of development For personal use only − Two development projects located in the Bowen and Surat Basins to produce coking and export thermal coal − Five Bowen Basin exploration projects comprising predominantly
Slide 22: Equity Raising Overview
Equity Raising Overview Offer structure Institutional Placement of 19.1 million shares to raise approximately $14 million For personal use only SPP open to eligible shareholders on the register on 7 December 2011 to raise up to a further $10 million (up to $15,000 per shareholder) Issue price
Slide 23: Equity Raising Timetable
Equity Raising Timetable For personal use only Placement Date Trading halt commences Wednesday, 7 December 2011 Bids into Placement book 4:00pm Sydney time, Wednesday, 7 December 2011 Trading halt lifted; announcement of capital raising Thursday, 8 December 2011 Placement settlement Tuesday, 13 Dece
Slide 24: Summary of Key Risks
Summary of Key Risks There are various risks associated with investing in Stanmore Coal, as with any stock investment and, specifically, because of the nature of Stanmore’s coal exploration business and the present stage of development of Stanmore’s operations. Potential investors should consider
Slide 25: Summary of Key Risks (cont'd)
Summary of Key Risks (cont’d) Land access is critical for exploration and evaluation to succeed. Access to land for exploration purposes can be affected by land ownership, including private (freehold) land, pastoral lease and native title land or claims under the Native Title Act 1993 (Commonwealt
Slide 26: Summary of Key Risks (cont'd)
Summary of Key Risks (cont’d) On 2 July 2010, the Australian government announced that a minerals resource rent tax (MRRT) will apply to coal and iron ore from 1 July 2012. A draft package of legislation for the MRRT was released in June 2011 and in September 2011 a second round of exposure draft
Slide 27: Supplementary Slides
For personal use only Supplementary Slides 26
Slide 28: Reserves, Resources and Exploration Targets
Reserves, Resources and Exploration Targets JORC Marketable JORC Recoverable JORC Indicated JORC Inferred Additional Exploration For personal use only Project Coal Reserve (1) (2) Coal Reserve (1) (2) Resource (1) Resource (1) Target (3) Low High The Range Thermal 94.2 117.5 151.0 78.0 60 70 Mackenz
Slide 29: Foreign Selling Restrictions
Foreign Selling Restrictions The contents of this Presentation have not been reviewed or approved by any regulatory authority in Hong Kong. The information in this Presentation has not been, and will not be, For personal use only registered as a prospectus in Hong Kong under the Companies Ordinance
Slide 30: Foreign Selling Restrictions (cont'd)
Foreign Selling Restrictions (cont’d) The information in this Presentation has been prepared on the basis that all offers of New Shares will be made pursuant to an exemption under the Directive 2003/71/EC For personal use only ("Prospectus Directive"), as implemented in Member States of the European
Stanmore Coal — Investor Presentation (December 2011) on 6ix