Colonial Coal International Corp. · TSXV:CAD
Colonial Coal International — Investor Presentation (August 2014)
28 slides from Colonial Coal International's investor presentation, August 2014
Slide 1: Colonial Coal International Corporation
TSX-V: CAD Colonial Coal International Corporation Western Canada’s Leading Coking Coal Developer August 2014 Investor Presentation
Slide 2: Legal Disclaimers
Legal Disclaimers This presentation may contain forward-looking statements, and forward looking information under applicable securities laws including management’s expectations of future production, cash flow and earnings. These statements are based on current expectations that involve a number of r
Slide 3: Company Snapshot
Company Snapshot Experienced Management Team Strategic Location Dawson David Austin Chief Executive Officer and Chairman Creek John Perry Chief Operating Officer and Director Chetwynd ALBERTA William Filtness, CA Chief Financial Officer Prince Fort Nelson Rupert Perry Braun Business Development Flat
Slide 4: Peace River Coalfield
Peace River Coalfield Atrum Coal PRC Project Quintette (Teck) 1 Exploration Target: 25 Mt Anglo Coal 10 Target Production: 3.0 Mtpa Fort St John Anglo Pacific Belcourt Saxon JV Atrum Coal Suska (8) & Sukunka (9) (Walter (50%) / Anglo (50%)) Belcourt Saxon JV (Glencore / JX Nippon) 2 4 7 Hudson’s Hop
Slide 5: Unparalleled Investment Opportunity
Unparalleled Investment Opportunity ● Invest in one of the largest deposits of premium quality hard coking coal in western Canada The only Canadian listed, publicly traded pure-play coking coal company in western Canada Targeted open pit and underground mineable resource of 397 Mt at Huguenot Pr
Slide 6: Experienced Management and Board
Experienced Management and Board Management Team and Board of Directors David Austin ● Founder of Western Coal, NEMI and now CCIC Chairman, President & CEO ● Over 25 years experience as a director or officer for mining companies William Filtness ● Director of Lions Gate Metals Inc. – former CFO of S
Slide 7: One of the Largest Premium Hard Coking Coal Deposits in the Region
One of the Largest Premium Hard Coking Coal Deposits in the Region Metallurgical Coal Reserve / Resource Size Benchmark ● Huguenot has a contained Select Peace River Coalfield Based Peers 14 00 Huguenot Resource Estimate (mm tonnes) resource of 397 million tonnes, 7,000 Undergroun making it one of t
Slide 8: Strategic Location With Significant Partnership Opportunities
Strategic Location With Significant Partnership Opportunities ● Sharing in the development of joint infrastructure (roads / rail) Potential to Jointly Develop Shared Infrastructure with other potential operators in the region would lower initial capital costs at Huguenot ■ PEA contemplates a third p
Slide 9: Available Rail and Port Capacity to Access Export Markets
Available Rail and Port Capacity to Access Export Markets ● Production from Huguenot would be shipped via rail to export terminals on the west coast of Canada British Columbia Dawson Creek Chetwynd AB ● Rail lines out of the Peace River Coalfield are Peace River Coalfield operated by a Class I Canad
Slide 10: Western Canadian Coal Poised for Growth
Western Canadian Coal Poised for Growth Canadian Met Coal Supply by Project Western Canadian Coal Overview Met Coal Supply No. of Operating Mines ● Western Canada has vast coal resources including some 40 20 of the world’s highest quality coking coals ■ ~21 Mt of met coal exports in 2012 Number of O
Slide 11: World Class Infrastructure
World Class Infrastructure Extensive Regional Infrastructure Unencumbered Access to Export Markets FORT NELSON HAY RIVER ● CN Rail provides access to Ridley Terminals ● Deep-water coal loading facilities at Ridley Ridley Terminals Terminals ALBERT SASKATCHE PRINCE Current capacity 12 Mtpa RUPERT A
Slide 12: Watson Island Investment Upside
Watson Island Investment Upside t nle Tsimpsian I Peninsula ck ● In 2012, Colonial Coal through its subsidiary Watson Island Tu Development Corp. (Watco) entered into an MoU with Lax Kw’alaams Band and Metlakatla First Nations (“Coast Tsimshian Nation”) for the formation of a JV for the potential rt
Slide 13: Exposure to High Growth Asian Markets
Exposure to High Growth Asian Markets Attractive Market Outlook Top 5 Countries by Met Coal Demand (Mt) 1 1 0 .0 ● Favourable global demand dynamics 9 0 .0 87.0 High growth in demand driven by developing countries 71.3 such as China and India 7 0 .0 2013 ● Adverse supply conditions 5 0 .0 42.6 32.
Slide 14: Huguenot Coking Coal Project – 100% Interest
Huguenot Coking Coal Project – 100% Interest Project Location Project Summary ● Located adjacent to the proposed Belcourt South open pit (owned by Belcourt Saxon Coal Ltd. – Anglo/Walter JV) Similar coal characteristics ● Amenable to open pit and underground mining ● 1.5% royalty FOB port ● Locate
Slide 15: Huguenot – Premium Coking Coal Characteristics
Huguenot – Premium Coking Coal Characteristics ● Premium product clean coal product with low ash, low sulfur, low phosphorus, and High FSI ● Weight averaged theoretical yield of 74% Clean Coal Quality Summary (dry basis) Ash VM FC S %P Theoretical Seam FSI % RoMax % % % % (in coal) Yield % 10 8.58 2
Slide 16: Flatbed Coking Coal Project – 100% Interest
Flatbed Coking Coal Project – 100% Interest Project Location Project Summary ● Property adjacent to Trend and Quintette mines ● Potential for large tonnage deposit 100+ Mt coking coal resource target ● Property located 15 Km from Quintette load out ● Potential for a 3rd pipeline crossing of Rocky
Slide 17: Development Timeline
Development Timeline Key Milestones Achieved Initial 43-101 Resource Estimate – Huguenot (North Block) Q3 – 2010 Commenced Environmental Baseline Studies – Huguenot Q2 – 2011 Applied For Additional Coal Licenses (16,425 ha) – Huguenot Q2 – 2011 Commenced Drilling Program – Huguenot (Middle & South B
Slide 18: Financial Snapshot
Financial Snapshot Capital Structure Price - Volume Chart Share Capital $1.00 2.0 Share Price (August 5, 2014) (C$) $0.18 Basic Shares Outstanding (mm) 65.1 FD ITM Shares Outstanding (mm) 65.1 Gross Equity Value (C$ mm) $11 52-Week High (C$) $0.55 $0.75 1.5 52-Week Low (C$) $0.15 Volume (millions) 2
Slide 19: Unparalleled Investment Opportunity
Unparalleled Investment Opportunity ● Invest in one of the largest deposits of premium quality hard coking coal in western Canada The only Canadian listed, publicly traded pure-play coking coal company in western Canada Targeted open pit and underground mineable resource of 397 Mt at Huguenot Pr
Slide 20: Rights of Action for Purchasers
Rights of Action for Purchasers Ontario, Nova Scotia, New Brunswick, Newfoundland and Labrador, Price Edward Island, Manitoba and Saskatchewan: Securities legislation in Ontario, Nova Scotia, New Brunswick, Newfoundland and Labrador, Prince Edward Island, Manitoba and Saskatchewan provides investors
Slide 21: Rights of Action for Purchasers, continued
Rights of Action for Purchasers, continued Ontario. If this presentation, together with any amendment to this presentation, contains a Misrepresentation, an investor in the Province of Ontario will have, without regard to whether the Misrepresentation was relied upon by the investor, a statutory rig
Slide 22: Rights of Action for Purchasers, continued
Rights of Action for Purchasers, continued Nova Scotia. If this presentation, together with any amendment to this presentation or any advertising or sales literature (as defined in the Securities Act (Nova Scotia) (the “Nova Scotia Act”)), contains a Misrepresentation and it was a Misrepresentation
Slide 23: Rights of Action for Purchasers, continued
Rights of Action for Purchasers, continued New Brunswick. If this presentation, together with any amendment to this presentation, delivered to an investor resident in New Brunswick contains a Misrepresentation that was a Misrepresentation at the time of purchase, the investor will be deemed to have
Slide 24: Rights of Action for Purchasers, continued
Rights of Action for Purchasers, continued Newfoundland and Labrador. If this presentation, together with any amendment to this presentation or any record incorporated by reference in, or considered to be incorporated into this presentation contains a Misrepresentation and it was a Misrepresentation
Slide 25: Rights of Action for Purchasers, continued
Rights of Action for Purchasers, continued Prince Edward Island. A “Misrepresentation” for purposes of the Securities Act (Prince Edward Island) also includes an omission to state a material fact that is required to be stated by the Securities Act (Prince Edward Island). If this presentation, togeth
Slide 26: Rights of Action for Purchasers, continued
Rights of Action for Purchasers, continued Manitoba. If this presentation or any amendment hereto contains a Misrepresentation, an investor is deemed to have relied on the Misrepresentation and has a right of action for damages against the Company and, subject to certain additional defences, every d
Slide 27: Rights of Action for Purchasers, continued
Rights of Action for Purchasers, continued Saskatchewan. If this presentation, together with any amendment to this presentation, is sent or delivered to an investor resident in Saskatchewan and contains a Misrepresentation at the time of purchase, the investor is deemed to have relied upon that Misr
Slide 28: Rights of Action for Purchasers, continued
Rights of Action for Purchasers, continued Rights for Purchasers in Alberta, British Columbia and Quebec By purchasing the securities of the Company hereunder, purchasers in the provinces of Alberta, British Columbia and Quebec who are not entitled to the statutory rights described above, in conside
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