Whitehaven Coal Limited · ASX:WHC
Whitehaven Coal — Shareholder Meeting (October 2021)
34 slides from Whitehaven Coal's shareholder meeting presentation, Oct 27, 2021
Slide 1: 2021 AGM Addresses and CEO Presentation
27 October 2021 For personal use only TO: ASX Market Announcements FROM: Company Secretary SUBJECT: 2021 Annual General Meeting – Addresses and Managing Director and CEO Presentation Please find attached the following which will be delivered at the Company’s Annual General Meeting being held today a
Slide 2: Chairman's Address to the Annual General Meeting
The Hon. Mark Vaile AO Chairman, Whitehaven Coal For personal use only Address to the Whitehaven Coal Annual General Meeting 27 October 2021 Ladies and Gentlemen This year presented a unique set of challenges for our business as Australia and other nations sought to navigate the way out of the COVID
Slide 3: Chairman's Address (continued)
Project, and both Vickery and Winchester South continue to progress in-line with the Board’s cautious approach to capital allocation. For personal use only No dividends were declared in FY21 but historic highs in coal prices foreshadow a return to dividend paying status in the near future with the b
Slide 4: Managing Director and CEO Address
For personal use only Paul Flynn Managing Director and CEO, Whitehaven Coal Address to the Whitehaven Coal Annual General Meeting 27 October 2021 Thank you, Chairman. Welcome everyone to Whitehaven Coal’s 2021 virtual Annual General Meeting. Today I’ll re-cap on Whitehaven’s financial year results a
Slide 5: CEO Address: Sustainability and Financial Performance
assets. We have highlighted here some of the metrics we have outlined in our 2021 Sustainability Report which demonstrate our approach to sustainability in action and I commend this report to you. For personal use only Whitehaven acknowledges that our operations and consumption of coal generates gre
Slide 6: CEO Address: Operations Update
For FY21 our Gunnedah Open cut mines, Werris Creek and Tarrawonga, achieved a combined ROM coal production total of 3.8 million tonnes, which is in line with the prior year. For personal use only For this new year FY22, we are guiding ROM production of 3.6 to 4.0 million tonnes. Werris Creek is now
Slide 7: CEO Address: Coal Market Outlook
On the supply side, which is mostly structurally constrained already, coal-producing jurisdictions have seen numerous disruptions. Indonesia has experienced heavy rainfall, equipment availability issues impacting production and redirection of coal supply to domestic power generators. Russian and Sou
Slide 8: Whitehaven Coal Ltd October 2021
For personal use only Whitehaven Coal Ltd 2021 AGM Presentation 27 October 2021 Authorised for release by the Board of Whitehaven Coal Limited Investor contact Media contact Sarah McNally Michael van Maanen +61 2 8222 1155, +61 477 999 238 +61 8222 1171, +61 412 500 351 smcnally@whitehavencoal.com.a
Slide 9: Disclosure
For personal use only Disclosure FORWARD LOOKING STATEMENTS 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 g
Slide 10: Our strategy
For personal use only Our strategy is to own and sustainably operate large, lower-cost mines producing a mix of high-CV thermal coal and premium semi-soft coking coal, and to increase our share of the growing market for these products in our region. 3
Slide 11: Our purpose and principles: STRIVE
Guided by our principles: STRIVE For personal use only Our purpose is to Safety support regional The safety of our people, workplaces and the communities around us comes first. We are communities committed to Zero Harm. Teamwork We exist to support and sustain We work collaboratively and support one
Slide 12: FY21 performance
5 For personal use only FY21 performance
Slide 13: Safety performance
For personal use only Safety performance Safety is always a key focus for Whitehaven 25 20 ROM coal production (Mt) 15 and TRIFR Whitehaven recorded 10 a TRIFR of 5.9 5 as at 31 September 2021* 0 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 Q1 FY22 ROM coal production (Mt) Total
Slide 14: Continuity during COVID-19
For personal use only Continuity during COVID-19 By developing and implementing an early response plan, continued careful planning, and advocacy at industry and government level, the impacts of COVID-19 on our business operations have been limited. Keeping our people safe Changing global energy Cont
Slide 15: Sustainability headlines FY21
For personal use only Sustainability headlines FY21 Approx. 75% 9% $344.7 million 267ha of 2,500-strong of workforce spent with of land workforce based in identifies as local suppliers rehabilitated regional areas Aboriginal and/or Torres Strait Islander $392,300 $5.15 million Business resilience 12
Slide 16: Financial headlines
For personal use only Financial headlines Profit and Loss ($m) FY21 FY20 Comment Reflects impact of strengthening AUD on realised EBITDA 204.5 306.0 coal price Net (loss)/profit after tax before significant items (87.3) 30.0 Net (loss)/profit after tax (543.9) 30.0 Reflects impairment of assets Cash
Slide 17: FY21 significant items
For personal use only FY21 significant items Asset impairments at Narrabri and Werris Creek • Narrabri ($548.7 million) - reduction in the JORC coal reserves for the current Narrabri mining lease, arising out of an optimisation plan which has been developed to focus on the production of higher quali
Slide 18: Financing
For personal use only Financing Diversified sources of capital Senior debt Export Leased Bank Debt Capital facility Credit 2 equipment guarantees3 Markets as at 30 June 2021 as at 30 June 2021 as at 30 June 2021 as at 30 June 2021 2022 $688m drawn $58m $263m $469m drawn • $1bn syndicated facility •
Slide 19: ROM coal production profile FY15 – FY22e
For personal use only ROM coal production profile FY15 – FY22e 23.1 23.0 23.2 20.0 - 21.5 20.5 20.7 20.6 Managed ROM coal production (Mt) 9.7 11.0 11.7 15.8 7.8 10.7 2.6 12.7 7.7 6.9 7.3 6.3 6.4 6.1 4.1 5.5 5.8 6.1 5.7 5.1 3.9 3.8 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22e Gunnedah Open Cuts Narrabri
Slide 20: Open cut mines
For personal use only Open cut mines ROM production profile Maules Creek Gunnedah Open Cut – Tarrawonga and Werris Creek 12.1-12.5Mt Managed ROM coal production (Mt) Managed ROM coal production (Mt) 3.6 – 4.0Mt 12.7 11.7 11.0 10.7 9.7 4.4 4.5 4.5 4.3 7.8 3.9 3.8 3.8 2.6 FY15 FY16 FY17 FY18 FY19 FY20
Slide 21: Underground mine
For personal use only Underground mine Narrabri ROM production profile Managed ROM coal production (Mt) 4.3 - 5.0Mt 7.7 7.3 6.9 6.3 6.4 6.1 5.0 4.1 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22e Less than 250m depth Greater than 250m of cover depth of cover 14
Slide 22: Narrabri FY22 mining areas
For personal use only Narrabri FY22 mining areas 15
Slide 23: Narrabri FY23 mining areas
For personal use only Narrabri FY23 mining areas 16
Slide 24: Our Markets
17 For personal use only Our Markets
Slide 25: Our customer base
For personal use only 18 Our base customer
Slide 26: Record thermal coal prices
For personal use only Record thermal coal prices 300 250 Both 6000CV USD/metric tonne FOB Australia 200 and 5500CV coal prices 150 have reached historical highs 100 50 0 gC NEWC API 5 19
Slide 27: Energy demand the driver of thermal coal consumption
For personal use only Energy demand the driver of thermal coal consumption Global coal-fired generation, 1985-2020 Regional electricity generation by coal 2020 Annual TWh generation per region 8000 7,386 100% Asia 90% 7000 80% 6000 70% 5000 60% 58% 4000 50% North America 40% 3000 Europe 30% Africa 3
Slide 28: Emerging supply gap in thermal seaborne coal
For personal use only Emerging supply gap in thermal seaborne coal Global seaborne supply meets demand only once “Highly Probable and Probable” new mines have been built and “Possible new mines” are brought online Mt Source: Wood Mackenzie July 2021 | Note forecasted supply excludes suspended capaci
Slide 29: Our future
22 For personal use only Our future
Slide 30: Our business has a strong future
For personal use only Our business has a strong future High quality product portfolio aligned with forecasted demand in nearby markets Our strategy is to own and sustainably operate We exist in a supportive policy and large, lower-cost mines producing a mix of high regulatory environment quality the
Slide 31: Our analysis indicates our business is resilient
For personal use only Our analysis indicates our business is resilient Stress-testing our portfolio against the IEA scenarios Scenario testing Analysis outcomes • Is there a sufficient market • Based on fundamental market analysis, the future of the Australian coal demand to sell our products sector
Slide 32: Our FY22 focus
25 For personal use only Our FY22 focus
Slide 33: FY22 focus
For personal use only FY22 focus • Debt reduction and capital management/shareholder returns • Build upon our continuous improvement programme, STRIVE, early wins • Optimise Maules Creek fleet productivity • Optimise Narrabri’s transition to shallower ground in FY23 and Stage 3 extension approvals •
Slide 34: Thank you
For personal use only Thank you