Whitehaven Coal Limited · ASX:WHC
Whitehaven Coal — FY2008 Earnings Presentation
26 slides from Whitehaven Coal's earnings presentation, Aug 21, 2008
Slide 1: Amended Presentation notice
WHITEHAVEN COAL LIMITED ABN 68 124 425 396 Ground Floor, Ann Place 895 Ann Street Fortitude Valley QLD 4006 PO Box 2440 Fortitude Valley BC QLD 4006 Ph: 07 3000 5690 Fax: 07 3000 5699 Web: www.whitehaven.net.au 21 August 2008 WHITEHAVEN COAL LIMITED (ASX:WHC) AMENDED PRESENTATION Whitehaven Coal adv
Slide 2: Whitehaven Coal Limited - Delivering Growth
Whitehaven Coal Limited Delivering Growth August 2008
Slide 3: Disclaimer
Disclaimer Statements contained in this material, particularly those regarding the possible or assumed future performance, costs, dividends, returns, production levels or rates, prices, reserves, potential growth of Whitehaven Coal Limited, industry growth or other trend projections and any estimate
Slide 4: Qualifications and Statement
Qualifications and Statement The information in this report that relates to Coal Resources and Reserves of the Whitehaven Group is based on information compiled by Mr David West, who is a Member of the Australasian Institute of Mining & Metallurgy. Mr West MAusIMM is a qualified geologist and is a f
Slide 5: Delivering Growth - Contents
Delivering Growth - Contents Company Background • A Snapshot • Assets • People FY 2008 Outcomes • Operations • Financials Expansion Programme Looking Forward • Coal Markets • Outlook August 2008 3
Slide 6: Whitehaven Coal - a snapshot
Whitehaven Coal - a snapshot Company founded in 1999 by AMCI and senior coal industry executives. Profitable every year since formation IPO in June 07 @ MCAP of ~A$350m, current MCAP ~A$1,400m Large resources (712 Mt) and the major producer/developer in the emerging Gunnedah Basin of NSW Superior qu
Slide 7: Whitehaven's assets
Whitehaven’s assets Narrabri (75%) Bonshaw 100% interest) • Coal Type: Thermal • Coal Type: Coking • Underground mine in • Exploration prospect at development (North) and exploration stage exploration project (South) • Forecast first coal production: Whitehaven Mining Precinct Q1 FY2010 • Ramping up
Slide 8: Whitehaven is the leading producer and developer in the Gunnedah Basin
Whitehaven is the leading producer and developer in the Gunnedah Basin Whitehaven has the “first mover advantage” in the Gunnedah Basin Whitehaven’s tenement area ~ 427 km2 Production capacity of ~4 Mtpa from 3 OC mines Three new mines being developed – Narrabri North UG – under construction – Rocgl
Slide 9: Large resources of superior quality coal
Large resources of superior quality coal Project JORC Resources JORC Marketable Reserves (Mt) (Mt) Whitehaven Mining Precinct 236.7 17.5 Werris Creek 38.0 19.9 Narrabri 438.2 102.7 Total 712.9 140.1 Whitehaven’s superior quality coal translates into higher coal prices than our competitors August 200
Slide 10: Experienced managers/owners
Experienced managers/owners Director/Title Experience John Conde AO +30 years commercial experience • Directors have extensive coal Non-Executive Chairman industry experience. Rob Stewart +20 years mining industry experience • Directors are proven mine Managing Director developers and operators. Nei
Slide 11: Delivering Growth - Contents
Delivering Growth - Contents Company Background • A Snapshot • Assets • People FY 2008 Outcomes • Operations • Financials Expansion Programme Looking Forward • Coal Markets • Outlook August 2008 9
Slide 12: FY 2008 milestones
FY 2008 milestones • FY08 EBITDA and NPAT was $90.7 and $51.9…up 254% and 142% respectively. • FY08 saleable production and coal sales was 2.1Mt and 2.8Mt…up 47% and 91% over FY 07 • Acquired 60% interest in Werris Creek…WHC now owns 100% • Narrabri approved and construction commenced in February 20
Slide 13: FY 2008 financial results
FY 2008 financial results A$ millions Actual Result for Actual Result for FY 2007 FY 2008 Coal Sales – Mt 1.5 2.8 Revenue 106.2 256.5 EBITDA 25.6 90.7 NPAT 24.1 51.9 Earnings per Share (Diluted) 8.0¢ 14.4¢ Net Cash Flow 19.4 84.7 Capex 8.3 71.3 End of Year Cash 21.1 105.9 Net Cash/(Net Debt) (55.5)
Slide 14: Delivering Growth - Contents
Delivering Growth - Contents Company Background • A Snapshot • Assets • People FY 2008 Outcomes • Operations • Financials Expansion Programme Looking Forward • Coal Markets • Outlook August 2008 12
Slide 15: Expansion Programme
August 2008 13
Slide 16: Narrabri North Underground Mine
Narrabri North Underground Mine 7 6 5 Production (Mtpa) 4 3 2 1 0 FY2009f FY2010f FY2011f FY2012f Status Good progress with construction with only modest timetable slippage Stage 1 capex is within budget Commenced design work for Stage 2 Preparing Planning Application for Stage 2 Strategic JV partne
Slide 17: Rail infrastructure will meet Whitehaven's growth
Rail infrastructure will meet Whitehaven’s growth Current rail capacity is 7 Mtpa from the Gunnedah Basin… more than sufficient to meet Whitehaven’s current production Planned rail capacity is sufficient for Whitehaven’s needs for the medium term − 15 Mtpa to be installed by the end of 2010 of which
Slide 18: Port infrastructure expected to meet Whitehaven's growth plans
Port infrastructure expected to meet Whitehaven’s growth plans Existing PWCS Terminal − PWCS port at Newcastle is experiencing capacity constraints − PWCS’s capacity of 95 Mtpa in CY2008 with planned expansion in CY2009 to 113 Mtpa − Allocation is pending outcome of Greiner Report Newcastle Coal Inf
Slide 19: New projects are on track and coordinated with infrastructure development
New projects are on track and are coordinated with planned infrastructure development August 2008 17
Slide 20: Delivering Growth - Contents
Delivering Growth - Contents Company Background • A Snapshot • Assets • People FY 2008 Outcomes • Operations • Financials Expansion Programme Looking Forward • Coal Markets • Outlook August 2008 18
Slide 21: Strong markets
Strong markets Demand • Global demand for export coking and thermal coal continues to grow very strongly and forecast of continued strength for some years. Supply • Supply from new Australian developments will fall short of predicted demand. • China’s export thermal coal is severely constrained by i
Slide 22: The next 6 months
The next 6 months ¾Higher coal prices, but still marginally affected by rump of legacy contracts ¾Higher A$ ¾Continued port congestion, but potential for reduced demurrage ¾Increased port allocation ¾Increased rail capacity and lower rail rates ¾Continued high productivity with improvements at Werri
Slide 23: Where to from here? Near Term Objectives
Where to from here? Near Term Objectives • Continue to efficiently manage our existing operations • Werris Creek - improvements and extended life • Rail upgrade – support increased shipping, lower rates • Port – supporting new production – PWCS & NCIG • Deliver Narrabri, Rocglen and Sunnyside on tim
Slide 24: Where to from here? Medium Term Objectives
Where to from here? Medium Term Objectives • Whitehaven has grown rapidly over 5 years. Our growth will continue…we will build on our success and leverage our asset base. • Industry consolidation will continue and Whitehaven will play its part. • Grow earnings and dividends per share, maintain finan
Slide 25: JORC Resources
JORC RESOURCES August 2008 23
Slide 26: JORC Reserves
JORC RESERVES WHITEHAVEN GROUP JORC RESERVES STATEMENT SUMMARY June 2008 Mine/Project Recoverable Reserves (Mt) Marketable Reserves* (Mt) Proved Probable From Proved From Probable Total Canyon - + = = Tarrawonga Open Cut - 75 - 33 3s Tarrawonga Seam - - - - - Underground Tarrawonga Seam-other - - -