Regent Pacific Group Limited · HKEX:575
Regent Pacific — Investor Presentation (July 2008)
32 slides from Regent Pacific's investor presentation, Jul 9, 2008
Slide 1: Regent Pacific Presentation
Regent Pacific Presentation 9 July 2008
Slide 2: Disclaimer
Disclaimer The information contained in this presentation has been prepared using the information available to Regent Pacific Group Limited (“Regent”) at the time of preparation and may not include all relevant information regarding Regent or Yunnan Simao Shanshui Copper Company Limited (“Yunnan Sim
Slide 3: Disclaimer continued
Disclaimer continued Any forward-looking statement is subject to known and unknown risks, uncertainties, assumptions and other factors, some of which are beyond Regent’s or Yunnan Simao’s control, including, but not limited to: geopolitical uncertainty, political and economic instability, uncertain
Slide 4: Overview
Beijing CHINA 4 ae INDONE SIA Jakarta ® Copper/Zinc Mine (©) Current Coal Project > Potential Coal Acquisition
Slide 5: About Regent
About Regent • Asian based resources group focused on commodities, particularly thermal coal • A proven operator of resources in China • Operates with JV partners one of the lowest cost VMS open pit mines in the world • Progressing three coal projects in China • Reviewing the acquisition of coal pro
Slide 6: Capital Structure
Capital Structure • Listed on HKEx (575.HK) with market cap of US$264M* • Strong cash position with over US$102M cash* Shares 4,842,915,586 Unlisted share options 225,786,132 Unlisted preference shares 147,931,132 Directors and management 21.6% * As at 8 July 2008 6
Slide 7: Our Vision and Strategy
Our Vision and Strategy • Build a major Asian Mining House • Diversification from a single mine owner, mitigate earnings volatility • Growth by existing coal properties in China • Growth by increasing production at Dapingzhang • Growth by acquisition – accretive acquisition(s) 7
Slide 8: Key Management Team
Key Management Team • Stephen Dattels (Co-Chairman) – Former Executive VP Corporate Finance & Director Financing of Barrick Gold Corporation – Extensive track record of managing successful Expertise mining projects, including co-founder of UraMin Inc. • Jamie Gibson (CEO) – Direct Investment Special
Slide 9: Regent's Coal / Chemical Projects and Pipeline
SECTION TWO Regent’s Coal / Chemical Projects and Pipeline 9
Slide 10: Quality Assets with Strong Growth Potential
Quality Assets with Strong Growth Potential 10
Slide 11: Inner Mongolia – Rail Infrastructure
Inner Mongolia – Rail Infrastructure 11
Slide 12: Ji Ri Ga Lang
Ji Ri Ga Lang Open pit, truck and shovel operations 92.2Mt of JORC Code Resource LOCATION North north-west of Xilinhot, Inner Mongolia RESOURCE 92.2Mt JORC Code Resource. 87% is Measured Resource COAL TYPE Thermal coal / sub-bituminous COST PER TONNE* RMB 35/t LOCAL MARKET PRICE* RMB 120/t EQUITY 51
Slide 13: Project X
Project X Potential open pit, truck and shovel operations Drilling programme planned for 2008 LOCATION Inner Mongolia RESOURCE 6Bt Chinese basis COAL TYPE Thermal coal (4500 kcal/kg) COST PER TONNE* RMB 35/t LOCAL MARKET PRICE* RMB 240/t MARKET Regional power stations TIME TO FIRST COAL* 2011 SEAM T
Slide 14: Ji Lin South
Ji Lin South Potential open pit, truck and shovel operations LOCATION North-east of Xilinhot, Inner Mongolia RESOURCE 2.4Bt Chinese basis COAL TYPE Thermal coal (5000 kcal/kg) COST PER TONNE* RMB 35/t LOCAL MARKET PRICE* RMB 180/t EQUITY 100% MARKET Power station in Inner Mongolia and North-east pro
Slide 15: Zhun Dong
Zhun Dong Underground Mine Open Cut Potential Good Thermal Coal SRK Report Greenfield Exploration OWNERSHIP 100% equity ownership held through Xinjiang Regent Coal Limited, a wholly foreign owned enterprise LOCATION 200km north-east of Urumqi, Xinjiang RESOURCE 3Bt Chinese basis, 300–500Mt JORC COAL
Slide 16: Overview of Indonesian Opportunity
Overview of Indonesian Opportunity • Investment Agreement signed for 75% ownership of existing open pit mine • Preliminary estimate of a coal resource of >40Mt and reserves of >22Mt • <5% explored on 8,870Ha • Strip ratio 9:1 • Multi pit, estimate two coal brands • Pit to ROM ~ 5.2km and ROM to Moth
Slide 17: Indonesian Opportunity (cont'd)
Indonesian Opportunity (cont’d) • 5,400Kcal and 6,000Kcal ADB • ~2Mpta (2009) • Open pit, truck and shovel operation • Contract Mining • Barge to Vessel • Sold FOB • LOM 11.5 years (Estimated information) 17
Slide 18: ACIL Project – Coke to Chemical
ACIL Project – Coke to Chemical Products Project I Coke 1.05Mt Coal Tar 30,000t Crude Benzene 9,000t Ammonium Sulfate 8,000t Methanol 80,000t Synthetic Ammonia - Production In full Timetable production Regent Ownership 25% 18
Slide 19: Coal Markets – Unprecedented Times
Coal Markets – Unprecedented Times • Tight coal markets being squeezed by slower growth and stronger demand from Asia, especially China and India • Tightness exacerbated by problems in China, South Africa and Australia • Expect continued tightness extending to 2010 • China transformed into a net imp
Slide 20: Coal Markets – Unprecedented Times (cont'd)
Coal Markets – Unprecedented Times (cont’d) • China will still focus on coal fired electricity generation – (China’s energy white paper – Dec 2007) • China added 90GW in power in 2007 – 14.4% increase = size of UK’s entire grid • Expect 14% power capacity growth in 2008 and – 13% thereafter until 20
Slide 21: Strong Coal Demand
Strong Coal Demand China is the World’s Largest Coal China Continues to Lead Strong Coal Consuming Country Demand Growth 2006 World Coal Consumption (Million tonnes oil equivalent ) China US % CAGR: 13.7 38.6% 18.4% 1,191 1,096 978 853 India 712 7.7% Other 35.3% 2002 2003 2004 2005 2006 Rich Coal Re
Slide 22: Dapingzhang
SECTION THREE Dapingzhang 22
Slide 23: Regent – Quality Asset with China Focus
Regent – Quality Asset with China Focus 40% Owner of the Dapingzhang JV • JV in operation since April 06 • Cash flow positive since operation Dapingzhang JV hosts resources of 374,000t Cu + 260,000t Zn + Au-Ag-Pb • Open pit, truck and shovel operations 97.5% Owner and operator of the Yinzishan JV •
Slide 24: Dapingzhang JV – VMS Deposit with Significant Upside
Dapingzhang JV – VMS Deposit with Significant Upside • 40% equity interest via Sino- foreign JV Company • 20 year operating term • World class VMS system • Excellent potential for becoming a VMS camp • Developed infrastructure • Operational improvements ongoing • Expansion of production under design
Slide 25: Dapingzhang Mine – Mill Infrastructure
Dapingzhang Mine – Mill Infrastructure New Mine Office & Accommodation No.3 Mill Plant 500 tpd No.2 Mill Plant 500 tpd New Concentrate Filtration Plant No.4 Mill Plant 2,000 tpd New Zinc Circuit Tailings Dam Capacity 16M tonnes 25
Slide 26: Dapingzhang Mine – Potential to Add Significant Resources and Extend Mine Life
Dapingzhang Mine – Potential to Add Significant Resources and Extend Mine Life 26
Slide 27: Dapingzhang Mine – Potential to Add Significant Resources and Extend Mine Life
Dapingzhang Mine – Potential to Add Significant Resources and Extend Mine Life 27
Slide 28: Dapingzhang Mine – Copper and Zinc Operation in China
Dapingzhang Mine – Copper and Zinc Operation in China COPPER OPERATION ZINC OPERATION Mining: Open Pit Open Pit Processing: Conventional flotation Conventional flotation Product: Copper concentrate with Zinc concentrate gold & silver credits Forecast Metal Sold 2008: 10,000t/a* 32,000t/a Resources (
Slide 29: Dapingzhang Mine – Mineral Resources
Dapingzhang Mine – Mineral Resources Mineral Resource Statement as at September 2007 Dawaz Measured Resource Copper Zinc Gold Silver Lead Tonnes Grade Grade Grade Grade Grade (Mt) (%Cu) (%Zn) (Au g/t) (Ag g/t) (%Pb) Massive 0.98 0.47 4.18 0.12 30.02 0.55 Disseminated 0 0 0 0 0 0 Total Massive & 0.98
Slide 30: Regent's Base Metal Land Bank
Regent’s Base Metal Land Bank REGENT JV’s LAND HOLDINGS ARE: Location / Name Licence Type Regent Effective Ownership (%) Area Km2 Dapinghzhang JV Exploration 40 16.22 Exploration 40 31.25 Exploration 40 36.02 Exploration 40 7.532 Exploration 40 3.84 Mining 40 2.751 Sub-total 97.613 Yinzishan JV Expl
Slide 31: Conclusion
Beijing CHINA 4 ae INDONE SIA Jakarta ® Copper/Zinc Mine (©) Current Coal Project > Potential Coal Acquisition
Slide 32: Attractive Investment Opportunity – Why?
Attractive Investment Opportunity – Why? Growth Opportunity • Significant demand for thermal coal • Start coal production in 2008 with rapid expansion from 2009 • Proven ability to source, acquire and develop assets • On-the-ground management team World Class Projects • Potential for significant coa
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