Australian Pacific Coal Limited · ASX:AQC
Australian Pacific Coal — Investor Presentation (November 2016)
28 slides from Australian Pacific Coal's investor presentation, Nov 10, 2016
Slide 1: Engagement of Financial Advisor
ASX RELEASE 09 November 2016 For personal use only ENGAGEMENT OF FINANCIAL ADVISOR Australian Pacific Coal Limited (‘AQC’, or ‘the Company’) (ASX Code: AQC) is exploring options in respect of financing the development of the Dartbrook coal mine. AQC has engaged Clarksons Platou Securites as its fina
Slide 2: Developing a world class thermal coal resource
For personal use only Developing a world class thermal coal resource Investor Presentation November 2016 Sole Manager & Bookrunner ASX code: AQC ABN: 49 089 206 986 1
Slide 3: Disclaimer
Disclaimer This presentation and all attachments and appendices (‘the presentation’) has been prepared by the management of Australian Pacific Coal Limited (‘the Company’) in connection with meetings with investment banks, financial intermediaries and investors and is not intended to, and doesn’t, c
Slide 4: Compliance Statement
Compliance Statement For personal use only Dartbrook Coal Resource Estimate: The information is extracted from the report entitled ‘Australian Pacific Coal Commissioned Coal Resource Estimate at Dartbrook of 1.2 billion tonnes’ created on 24 May 2016 and is available to view on www.aqcltd.com. The c
Slide 5: Background information
Background information Company background For personal use only • Australian Pacific Coal is an Australian ASX listed coal exploration and development company Exploration and • During the H2 2015 Trepang Services Pty Ltd and Bentley development assets Resources Pte Ltd re-capitalised the company. En
Slide 6: Board of Directors
Board of Directors For personal use only Peter Ziegler John Robinson Jnr Paul Byrne The Hon. Shane Stone Non-Executive Chairman Managing Director and CEO Executive Director Non-Executive Director • Mr Ziegler is an experienced • Mr John Robinson is a former • Mr Byrne joined the Company as • Mr Ston
Slide 7: Management
Management For personal use only John Robinson Jnr Kevin Mischewski Greg Kukla Adam Kellermann General Manager – Project Project Manager - Managing Director and CEO Chief Financial Officer Development Underground • Mr John Robinson is a former • Mr Kevin Mischewski is a • Mr Greg Kukla is an experie
Slide 8: AQC's road to acquire 100% of Dartbrook
AQC’s road to acquire 100% of Dartbrook H1 2015 July 2015 December 2015 February 2016 April 2016 For personal use only Australian Pacific Coal Australian Pacific Coal Australian Pacific Coal Australian Pacific Coal is agrees to acquire 83.3% of secures funding of AUD 20 agrees to acquire remaining T
Slide 9: Coal price 2010 – 2016 YTD FOB Newcastle
Coal price 2010 – 2016 YTD FOB Newcastle 140 March 2011 the 6000 kcal FOB For personal use only Newcastle peaks for the period 130 120 29.12.2015, Australian Pacific Coal enters into a 110 110 binding agreement to Thermal coal 6000 kcal FOB Newcastle acquire the Dartbrook asset from Anglo American 1
Slide 10: Company structure & sources/use of funds
Company structure & sources/use of funds For personal use only Background Australian Pacific Coal • Agreement to acquire 100% of Dartbrook JV • Recommencement of the underground 100% mining operations 100% • Application for the proposed open-cut mine • Provision of Environmental Bonds/Financial Dart
Slide 11: Indicative terms | Convertible Bond
Indicative terms | Convertible Bond Issuer: Australian Pacific Coal Ltd. – ASX: AQC For personal use only Issue Amount: AUD 60-90 million Ranking: Senior Maturity: December 2021 [5 years] Indicative Issue Price: [96%] of par value Indicative Coupon: [9%] p.a., semi-annual interest payments Conversio
Slide 12: Investment highlights
Investment highlights • All licenses granted for the Dartbrook underground mining operation with a documented resource of ~1.2 Bn tonnes in accordance with the JORC code For personal use only Reopening of Anglo 1 • Expected production targeting the Kayuga seam of high quality coal based on existing
Slide 13: AQC consulting team
AQC consulting team For personal use only • Specialist mining consultants providing mining, geological, product quality, management, software and project management services to the coal and metalliferous mining industry. Have undertaken assignments in Australia, China, India, South Africa and USA •
Slide 14: Cost curve for seaborne thermal coal
Cost curve for seaborne thermal coal Seaborne thermal coal cost curve For personal use only 80 70 1st Quartile 2nd Quartile 3rd Quartile 4th Quartile 60 Cash Costs (US$/ton) 50 40 30 20 10 0 0 75 150 225 300 375 450 525 600 675 750 825 900 975 Annual Production (mm tons) Indonesia South Africa Austr
Slide 15: Dartbrook asset
Dartbrook asset Background For personal use only • The Dartbrook asset is a coal resource located in the renowned coal region of the Hunter Valley of New South Wales, Australia – Several mining operations in the immediate area surrounding the project, including the Bengalla JV (Rio Tinto and Wesfarm
Slide 16: Dartbrook history
Dartbrook history Comments For personal use only Mining lease and development • Anglo American acquired control of the Dartbrook mine in 2001 from Shell and Development consent Showa commenced 1991 – Acquired a 5.83% from SsangYong in 2009 1994 • The mine produced ~29 Mt ROM from 1997 – 2006, from v
Slide 17: Location Hunter Valley region
Location Hunter Valley region Comments For personal use only • The Dartbrook project is located in the renowned coal region of the Hunter Valley, New South Wales. The location ideally places Dartbrook near world-class infrastructure, a highly skilled workforce and support industries used by major mi
Slide 18: Dartbrook – asset overview
Dartbrook – asset overview High quality coal Infrastructure For personal use only • Dartbrook can produce a high quality thermal coal product • Coal Handling and Processing Plant (‘CHPP’) has been well comparing favourably with adjacent thermal coal operations and maintained and is in good condition
Slide 19: Dartbrook – asset overview (continued)
Dartbrook – asset overview (continued) Mining & Development strategy Dartbrook Land Holding and Tenure For personal use only • Aim to seek approvals for the development of an open- cut mining operation within 3 years • Presence of existing infrastructure will significantly reduce development costs •
Slide 20: Limited capex with infrastructure in place
Limited capex with infrastructure in place Key Differentiator Overview of the Dartbrook mine infrastructure area For personal use only 1. Cost Competitive – Competitive cost structure utilizing existing infrastructure – Labor market has a surplus of skilled and experienced personnel available at rea
Slide 21: Community perception and support
Community perception and support State Community For personal use only • The New South Wales state and local governments • A Galaxy Research study was commissioned by have supported the coal industry for over 50 years Australian Pacific Coal in January 2016 to determine • Billions of dollars are pum
Slide 22: Infrastructure replacement value of AUD million
Infrastructure replacement value of AUD 281 million Australis Valuation Report Comments For personal use only • In April 2016 Australis Asset Advisory Group conducted a valuation report for Australian Pacific Coal • The report was conducted for the purpose of identifying the replacement value of the
Slide 23: Coal resource and open-cut resource
Coal resource and open-cut resource Resource For personal use only • Australian Pacific Coal commissioned JB Mining Services Pty Ltd to undertake an independent resource assessment on behalf of the Company ahead of completion of the Dartbrook acquisition • Identifies a total Coal Resource Estimate o
Slide 24: Additional photos
Additional photos For personal use only Source: Australian Pacific Coal Ltd. 23
Slide 25: Risk factors Introduction
Risk factors 1 Introduction For personal use only The activities of the Company, as in any business, are subject to risks which may impact on its future performance. The Company has appropriate actions, systems and safeguards for known risks, however, some are outside its control. Prior to making an
Slide 26: Risk factors (cont'd 1)
Risk factors (cont’d 1) Aboriginal Sites of Significance Commonwealth and State Legislation in Australia allow for the protection of sites of significance to Aboriginal custom and tradition. The Company proposes to carry out “clearance surveys”, also known as “heritage surveys”, prior to conducting
Slide 27: Risk factors (cont'd 2)
Risk factors (cont’d 2) Coal Price The ability of the Company to successfully monetise its projects (whether by way of sale of the projects, joint venture arrangements or development and sale of coal) will depend upon the market for coal and the price for coal. The Company’s possible future revenues
Slide 28: Developing a world class thermal coal resource
For personal use only Developing a world class thermal coal resource 27
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