Slide 1: Whitehaven Coal Limited – Delivering Growth
For personal use only Whitehaven Coal Limited Delivering Growth August 2008
Slide 2: Disclaimer
For personal use only 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 projec
Slide 3: Qualifications and Statement
For personal use only 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 qualifie
Slide 4: Delivering Growth - Contents
Delivering Growth - Contents For personal use only Company Background • A Snapshot • Assets • People FY 2008 Outcomes • Operations • Financials Expansion Programme Looking Forward • Coal Markets • Outlook August 2008 3
Slide 5: Whitehaven Coal - a snapshot
Whitehaven Coal - a snapshot For personal use only 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 Ba
Slide 6: Whitehaven's assets
Whitehaven’s assets For personal use only 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
Slide 7: Whitehaven is the leading producer and developer in the Gunnedah Basin
Whitehaven is the leading producer and developer in the Gunnedah Basin For personal use only 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 – unde
Slide 8: Large resources of superior quality coal
Large resources of superior quality coal For personal use only 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
Slide 9: Experienced managers/owners
Experienced managers/owners For personal use only 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 develop
Slide 10: Delivering Growth - Contents
Delivering Growth - Contents For personal use only Company Background • A Snapshot • Assets • People FY 2008 Outcomes • Operations • Financials Expansion Programme Looking Forward • Coal Markets • Outlook August 2008 9
Slide 11: FY 2008 milestones
FY 2008 milestones For personal use only • FY08 EBITDA and NPAT was $90.7 and $51.9…up 254% and 142% respectively. • FY08 saleable production and coal sales was 2.1Mt and 2.8Mt…up 47% and 91% over FY 07 • Acquired 60% interest in Werris Creek…WHC now owns 100% • Narrabri approved and construction co
Slide 12: FY 2008 financial results
FY 2008 financial results For personal use only A$ 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 C
Slide 13: Delivering Growth - Contents
Delivering Growth - Contents For personal use only Company Background • A Snapshot • Assets • People FY 2008 Outcomes • Operations • Financials Expansion Programme Looking Forward • Coal Markets • Outlook August 2008 12
Slide 14: For personal use only
For personal use only August 2008 13
Slide 15: Narrabri North Underground Mine
Narrabri North Underground Mine For personal use only 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
Slide 16: Rail infrastructure will meet Whitehaven's growth
Rail infrastructure will meet Whitehaven’s growth For personal use only 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 th
Slide 17: Port infrastructure expected to meet Whitehaven's growth plans
Port infrastructure expected to meet Whitehaven’s growth plans For personal use only 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 Rep
Slide 18: New projects are on track and coordinated with infrastructure development
New projects are on track and are coordinated with planned infrastructure development For personal use only August 2008 17
Slide 19: Delivering Growth - Contents
Delivering Growth - Contents For personal use only Company Background • A Snapshot • Assets • People FY 2008 Outcomes • Operations • Financials Expansion Programme Looking Forward • Coal Markets • Outlook August 2008 18
Slide 20: Strong markets
Strong markets For personal use only 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 sev
Slide 21: The next months
The next 6 months For personal use only 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
Slide 22: Where to from here? Near Term Objectives
Where to from here? For personal use only 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, Rocgle
Slide 23: Where to from here? Medium Term Objectives
Where to from here? For personal use only 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
Slide 24: JORC Resources
JORC RESOURCES For personal use only August 2008 23
Slide 25: JORC Reserves
JORC RESERVES For personal use only August 2008 24