James River Coal — Corporate Update (November 2013)
19 slides from James River Coal's corporate update, Nov 7, 2013
Slide 1: Shareholder Update November 2013
Shareholder Update November 2013
Slide 2: Forward Looking Statements
Forward Looking Statements Certain statements in this investor presentation and other written or oral statements made by or on behalf of us are "forward - looking statements" within the meaning of the federal securities laws . Statements regarding future events and developments and our future perfor
Slide 3: Agenda
3 Agenda ● Opening Comments ● Operations Review ● Market Review ● Miscellaneous 3
Slide 4: Opening Comments Summary
Opening Comments Summary ● Reduced Mining Costs in CAPP From $87.15 in Q - 3 2012 to $77.80 in Q - 3 2013 ● In Response to Continued Weak Markets Conditions, Idled Four Mines in CAPP On November 6; Furloughed Approximately 200 Employees and Contractors ● Completed Exchange Transactions in 2013, Whic
Slide 5: Agenda
5 Agenda ● Opening Comments ● Operations Review ● Market Review ● Miscellaneous 5
Slide 6: Operations Review: Safety
Operations Review Safety 8.40 2.13 5.00 2.14 - 2.00 4.00 6.00 8.00 2004 2005 2006 2007 2008 2009 2010 2011 2012 Q1 2013 Q3 2013 Q2 2013 JRCC National Average Non - Fatal Days Lost 6 Awarded Two Safety Awards by Ky. Office of Mine Safety and Licensing & Ky. Coal Association : Garmeada #2 – Safest Und
Slide 7: Operations Review: Central Appalachia
Operations Review Central Appalachia ● Costs and Production Are Better Than Expectations ● Cash Costs in CAPP Fall From $87.15 Per Ton in Q - 3 2012 to $77.80 Per Ton in Q - 3 2013 ● Our Biggest Focus Today is Reducing the Impact of Holding Costs From Idled CAPP Operations (≈ $3.00 Per Ton in Q - 3
Slide 8: Operations Review: Central Appalachia
Operations Review Central Appalachia ● Inventory Management: – All Operations Idled One Week in July – Blue Diamond Mines Working Four Day Weeks – Idled Bledsoe, McCoy Operations and Long Branch Surface Mine on September 16 th • Approximately 525 employees Laid Off – Idled Two Underground and Two Su
Slide 9: Operations Review: Midwest
Operations Review Midwest ● Continued to Match Production to Shipments ● Freelandville West Underground Lost Six Shifts Due to Roof Conditions ● Reached Price Agreement on 800,000 Tons for 2014 9
Slide 10: Agenda
10 Agenda ● Opening Comments ● Operations Review ● Market Review ● Miscellaneous 10
Slide 11: Market Review Summary
Market Review Summary 11 • Met Markets Have Stabilized, But Remain Oversupplied • International Thermal Markets Have Started to Improve • Domestic Thermal Markets Continue to Be Impacted By Weak Power Generation
Slide 12: Market Review: Seaborne Metallurgical Coal Pricing
Market Review Seaborne Metallurgical Coal Pricing 12 • Pricing Has Bounced Off the Bottom • May Now Be in a Trading Range • Too Much USA Met Coal is Sold at a Discount to the Benchmark • The “Trading Range” for US Met Coal is Too Low for US to Maintain Market Share
Slide 13: Market Review: Seaborne Metallurgical Coal Volume
Market Review Seaborne Metallurgical Coal Volume 13 • North America Stable • South America Stable • India Stable • China Volatile – Seasonal Issue, Ocean Freight Market and FOB Price • Europe Improving Slightly
Slide 14: Market Review: Domestic Thermal Coal
Market Review Domestic Thermal Coal ● Remaining Sluggish During the Quarter Due to: – Tepid Economy – Mild Weather – Competition From Natural Gas ● Demand Switching Between Coal Basins is Continuing 14
Slide 15: Market Review: Future JRCC Product Profile
Market Review Future JRCC Product Profile – Metallurgical – PCI – Stoker – PCI – Industrial – Domestic Thermal • Rail – Advantaged Plants – Export Thermal 15 CAPP – West Virginia Midwest – Steady Thermal Market CAPP – Kentucky Our Production and Sales Profile Continues to Evolve
Slide 16: Agenda
16 Agenda ● Opening Comments ● Operations Review ● Market Review ● Miscellaneous 16
Slide 17: Miscellaneous: Balance Sheet
Miscellaneous Balance Sheet 17 ● Completed Public Exchange in Q - 3 of $42.2 Million of Convertible Debt for $19.3 Million of New Convertible Debt ● Total 2013 Exchange Transactions Reduced Debt by Approximately $143 Million
Slide 18: Miscellaneous: Liquidity
Miscellaneous Liquidity 18 ● The Process Has Been Slightly Delayed Due to: – We Wanted to Announce the Second, and Hopefully Final, Significant Change to CAPP Mine Operations. These Are Announced Today – We Wanted to See if the Met and Thermal Markets Would Stabilize. They Have. ● We Are Actively En
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