White Energy Company Limited · ASX:WEC
White Energy — Merger or Acquisition (February 2011)
35 slides from White Energy's merger presentation, Feb 23, 2011
Slide 1: Road Show Presentation: Cascade Coal – A Company Making Transaction
For personal use only Road Show Presentation Cascade Coal – A Company Making Transaction 23 February 2011
Slide 2: Transaction Overview
For personal use only Transaction Overview White Energy’s Acquisition of Cascade Coal Strategic Rationale Cascade Coal - A Company Making Transaction Combination Rationale White Energy and Cascade Coal Combined Detailed Asset Overview The Cascade Coal Assets 2 Page 2
Slide 3: Why Cascade Coal?
Why Cascade Coal ? For personal use only Company-Making Transaction, Transforming White Energy into a Leading Mid-Tier Coal 1 Company Rare Opportunity to Acquire a Large, Scarce, Export Quality, Open-Cut Coal Mining Asset in 2 NSW Purchase Price of A$486m for 100% of the Equity in Cascade Coal is “F
Slide 4: Transaction Overview: White Energy's Acquisition of Cascade Coal
Transaction Overview White Energy’s Acquisition of Cascade Coal For personal use only White Energy is a Coal Technology and Coal Mining company. – Coal Technology: Exclusive worldwide license holder of the patented BCB Coal Technology, a mechanical process which uses drying and briquetting to White
Slide 5: Transaction Overview (cont'd)
Transaction Overview (cont’d) White Energy’s Acquisition of Cascade Coal For personal use only Cascade Coal is owned by a group of investors including entities associated with current White Energy management and Directors including: – Travers Duncan (Chairman), Brian Flannery (CEO), John McGuigan (D
Slide 6: Transaction Structure
Transaction Structure White Energy’s Acquisition of Cascade Coal For personal use only White Energy and Cascade Coal have common shareholders including the Chairman, CEO and 3 other Directors of White Energy. Currently this group hold ~24% of White Energy and ~60% of Cascade Coal, and will hold ~35%
Slide 7: Next Steps and Expected Timetable to Completion
Next Steps and Expected Timetable to Completion For personal use only The Cascade Coal transaction is expected to complete in April 2011. Notice of Meeting and Explanatory Memorandum sent to Early March 2011 shareholders Time and date for determining eligibility to vote at the Meeting 7.00pm (Sydney
Slide 8: Transaction Overview
For personal use only Transaction Overview White Energy’s Acquisition of Cascade Coal Strategic Rationale Cascade Coal - A Company Making Transaction Combination Rationale White Energy and Cascade Coal Combined Detailed Asset Overview The Cascade Coal Assets 8 Page 8
Slide 9: Company-Making Transaction, Transforming White Energy into a Leading Mid-Tier Coal Company
Company-Making Transaction, Transforming White Energy into a Leading Mid-Tier Coal Company For personal use only The acquisition of Cascade will further enhance White Energy’s operational scale, market position and further diversifies White Energy’s revenue base. Australian coal peers – market capit
Slide 10: A Rare Opportunity to Acquire a Large, Scarce, Export Quality, Open-Cut Coal Mining Asset in NSW
A Rare Opportunity to Acquire a Large, Scarce, Export Quality, Open-Cut Coal Mining Asset in NSW For personal use only Extensive M&A activity in the Australian coal sector has resulted in limited availability of quality coal assets in the market. Consolidation has driven appreciating coal valuations
Slide 11: Purchase Price of A$486m is Fair and Reasonable
Purchase Price of A$486m for 100% of the Equity in Cascade Coal is “Fair and Reasonable” and at the Lower End of IE Valuation Range of A$459m to A$587m For personal use only White Energy is acquiring Cascade Coal at the bottom of the Independent Expert’s valuation range. The transaction has also bee
Slide 12: Mt. Penny is Competitively Positioned Within the Australian Export Thermal Coal Landscape
Mt. Penny is Competitively Positioned Within the Australian Export Thermal Coal Landscape For personal use only Mt Penny Open-Cut 1 is attractively positioned in the second quartile of Australian export thermal coal mines. This provides the project with flexibility in varying coal markets and allows
Slide 13: Mt. Penny Open-Cut is Being Fast-Tracked to Production in 2013
Mt. Penny Open-Cut 1 is Being Fast-Tracked to Production in 2013 For personal use only The Mt. Penny project is expected to come online in 2013 and ramp-up to 9.2Mtpa ROM production in 2018. This positions the asset to significantly benefit from existing and expected buoyant coal markets. Production
Slide 14: Attractive Asset in Leading Thermal Coal Basin With Existing Rail Connection
Attractive Asset in Leading Thermal Coal Basin With Existing Rail Connection to Port of Newcastle For personal use only Cascade Coal Overview Location Private Australian coal developer, with two properties in the Hunter Valley region of New South Wales. Mt Penny is a proposed open-cut and undergroun
Slide 15: Mt Penny Open-Cut Expected to Receive Final Approvals by 2012
Mt Penny Open-Cut 1 is Expected to Receive Final Approvals by 2012 and Producing Coal in 2013 For personal use only 2010 2011 2012 2013 2014 Continued Geological Investigations within EL 7406 Stakeholder Consultation Mine Development Part 3A Major Project Approval Detailed Mine Planning and Design E
Slide 16: Board/Management with Demonstrated Ability to Bring Coal Assets into Production
Board/Management with Demonstrated Ability to Bring Coal Assets into Production For personal use only A highly regarded board and management team with an industry wide reputation for delivery and execution of major coal projects. The ownership of a NSW coal asset leverages the skills of the White En
Slide 17: Why Cascade Coal?
Why Cascade Coal ? For personal use only Company-Making Transaction, Transforming White Energy into a Leading Mid-Tier Coal 1 Company Rare Opportunity to Acquire a Large, Scarce, Export Quality, Open-Cut Coal Mining Asset in 2 NSW Purchase Price of A$486m for 100% of the Equity in Cascade Coal is “F
Slide 18: Transaction Overview
For personal use only Transaction Overview White Energy’s Acquisition of Cascade Coal Strategic Rationale Cascade Coal - A Company Making Transaction Combination Rationale White Energy and Cascade Coal Combined Detailed Asset Overview The Cascade Coal Assets Page 18 18
Slide 19: The Continuing Evolution of White Energy
The Continuing Evolution of White Energy For personal use only The Cascade Coal acquisition represents the next step in the continuing evolution of White Energy into a diversified coal company. Continue with joint Acquisition of venture business SACL provides model development options BCB Coal Upgra
Slide 20: White Energy and Cascade are an Attractive Combination of Assets
White Energy and Cascade are an Attractive Combination of Assets For personal use only An acquisition of Cascade Coal will position White Energy as an attractive mid-tier Australian coal company with a number of options to optimally develop its diverse set of coal properties. This strategy has been
Slide 21: White Energy Will Continue to Focus on its Market Leading Coal Upgrading Platform
White Energy will Continue to Focus on its Market Leading Coal Upgrading Platform For personal use only White Energy’s coal upgrading technology will remain a central pillar to its long-term strategy and future growth. White Energy’s upgrading process has been developed over 20 years, by a consortia
Slide 22: White Energy's Facility in Tabang is the World's First Commercial Scale Coal Upgrading Plant
White Energy’s Facility in Tabang is the World’s First Commercial Scale Coal Upgrading Plant For personal use only White Energy’s industry leading plant in Tabang, Indonesia is now in production and has the capability to produce 1Mtpa of upgraded coal. Joint Venture Structure Kaltim Supacoal (KSC) i
Slide 23: White Energy's Takeover of South Australian Coal Delivered its First Coal Asset
White Energy’s Takeover of South Australian Coal Delivered its First Coal Asset For personal use only Potential Uses of the Lake Phillipson Deposit. Lake Phillipson Coal Deposit Gawler Craton Upgrade coal via Sell high moisture Identify new coal Drilling program Develop minerals BCB Technology coal
Slide 24: Transaction Overview
For personal use only Transaction Overview White Energy’s Acquisition of Cascade Coal Strategic Rationale Cascade Coal - A Company Making Transaction Combination Rationale White Energy and Cascade Coal Combined Detailed Asset Overview The Cascade Coal Assets Page 24 24
Slide 25: Cascade Coal Background
Cascade Coal Background For personal use only Cascade Coal Pty Ltd (“Cascade”) was established in 2008 to engage in greenfield coal exploration and developments within NSW. Cascade Coal Corporate Structure Key Events in Cascade Development Cascade bid was in a public tender and was granted coal expl
Slide 26: Mount Penny – EL 7406
Mount Penny – EL 7406 For personal use only The Mount Penny coal deposit, EL 7406, is located in the NSW Western coal field. NSW Coal Fields NSW Coal & Rail System Mt Penny Rail access to Port Kembla Page 26 26
Slide 27: Exploration Tenement Details
Exploration Tenement Details For personal use only Cascade has developed a detailed mine plan for Open-Cut 1 The Mt Penny coal project contemplates 4 x Open-Cut and 1 Underground mine Mt Penny has access to quality infrastructure with the Sandy-Hollow – Ulan Rail line cutting across the EL Page 27 2
Slide 28: Exploration Tenement Details
Exploration Tenement Details For personal use only The Mt Penny coal deposit has a JORC compliant resource of 174 Mt. EL 7406 – JORC coal resource Coal Description The mine plan for Open-Cut 1 contemplates a 5.2Mtpa ROM open-cut mine producing 3.6 - 3.8Mtpa of Rese rve s Resource s saleable coal mt
Slide 29: Exploration Tenement Details
Exploration Tenement Details For personal use only Core mine infrastructure such as rail loop, materials handling plant, haul road and administrative centre is to be constructed in close proximity to Open-cut 1. Page 29 29
Slide 30: Infrastructure and Utilities
Infrastructure and Utilities For personal use only Mt Penny is well positioned with respect to rail and utility infrastructure. Rail Port Power Water Staged bi-directional Port Waratah Coal Power requirements of Water requirements for loop proposed – Service Terminal has approximately 6.5 Mva Open-C
Slide 31: Land Access and Encumbrances
Land Access and Encumbrances For personal use only Cascade Coal’s subsidiary Mt Penny Properties Pty Ltd has secured put and call options to purchase land located within Open-Cut 1 and over the relevant infrastructure areas Controlled Land Native Title Based on searches of the register administrated
Slide 32: Glendon Brook – Asset Snapshot
Glendon Brook – Asset Snapshot For personal use only Cascade was granted Glendon Brook in October 2009 for a period of 5 years. Glendon Brook is located in the Hunter Valley Coalfield approximately 12km east of Singleton and immediately south of ML 1309 “Mitchell’s Flat” held by Xstrata PLC. ML1309
Slide 33: Forward looking statements
Forward looking statements For personal use only Except for the historical information contained herein, the matters discussed in this presentation contain forward-looking statements, including statements, containing the words “planned”, “expects”, “believes”, “strategy”, “opportunity”, “anticipates
Slide 34: Competent Person Statement
Competent Person Statement For personal use only Cascade Coal Pty Limited The information in this presentation concerning the proposed acquisition of Cascade by White Energy, which relates to Coal Reserves and Coal Resources at EL7406 and EL7405 is based on information compiled by Mr Michael Johnsto
Slide 35: For personal use only
For personal use only Maritime Trade Towers Level 20, 201 Kent Street Sydney, NSW 2000 Telephone: +61 2 9959 0000 Facsimile: + 61 2 9959 0099 Email: info@whiteenergyco.com ABN 62 071 527 083
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