Slide 1: FY2009 Results Presentation cover letter
WHITEHAVEN COAL LIMITED ABN 68 124 425 396 Level 9 1 York Street Sydney, NSW 2000 PO Box R1113 Royal Exchange NSW 1225 Ph: 02 8507 9700 Fax: 02 8507 9701 Web: www.whitehaven.net.au 25 August 2009 The Manager, Listings Australian Securities Exchange Company Announcements Office Level 4 Exchange Centr
Slide 2: Delivering Growth: FY 2009 Results
Whitehaven Coal Limited Delivering Growth FY 2009 Results August 25th 2009
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 Information in this presentation that relates to Coal Resources and Reserves is based on and accurately reflects reports prepared by the Competent Person named beside the respective information. All these persons are consultants for Whitehaven Coal Limited. Mr Greg Jones
Slide 5: Contents
Contents • Highlights • Operating and financial results • Status of growth plans • Outlook FY 2009 Results Presentation 3
Slide 6: FY 2009 financial highlights
FY 2009 financial highlights Reported net profit after tax (NPAT) of $244.2 million, including NPAT of $166.9 million from the sale of 15% of the Narrabri Joint Venture and other Significant Items Underlying NPAT of $77.3 million (excluding Significant Items), compared to $12.9 million last year Fin
Slide 7: FY 2009 operating highlights
FY 2009 operating highlights Excellent safety and environmental record maintained Coal sales up 48% (equity basis) over last year (up 42% on 100% basis) Saleable coal production up 36% (equity basis) over last year (up 32% on 100% basis) Rocglen open cut mine commissioned successfully Sunnyside open
Slide 8: FY 2009 business development highlights
FY 2009 business development highlights JORC Marketable Coal Reserves more than doubled during the year to 278.6 Mt JORC Coal Resources increased during the year to 761.8 Mt Open cut expansion implemented successfully (Rocglen & Sunnyside) Opencut mines and coal reserves in place to support more tha
Slide 9: Contents
Contents • Highlights • Operating and financial results • Status of growth plans • Outlook FY 2009 Results Presentation 7
Slide 10: Coal sales
Coal sales Equity basis (Mt) FY 2009 FY 2008 Change Gunnedah Operations 2,460 1,469 +67% Werris Creek 1,102 944 +17% Whitehaven Total 3,562 2,413 +48% 100% basis (Mt) FY 2009 FY 2008 Change Gunnedah Operations 2,939 1,583 +86% Werris Creek 1,102 1,255 -12% Whitehaven Total 4,041 2,837 +42% FY 2009 R
Slide 11: Saleable coal production
Saleable coal production Equity basis (Mt) FY 2009 FY 2008 Change Gunnedah Operations 1,690 1,266 +33% Werris Creek 1,107 784 +41% Whitehaven Total 2,797 2,050 +36% 100% basis (Mt) FY 2009 FY 2008 Change Gunnedah Operations 2,174 1,613 +19% Werris Creek 1,107 1,111 - Whitehaven Total 3,281 2,724 +20
Slide 12: Profitability
Profitability A$ millions FY 2009 FY 2008 Coal sales – 000t (equity basis) 3,562 2,413 Reported revenue 489.4 252.0 Sales tonnes – 000t (equity basis, excluding purchased coal) 2,753 2,007 Revenue – (excluding purchased coal and net of NSW royalty) 356.3 185.8 Average coal price – A$/t (excluding pu
Slide 13: Cash flow
Cash flow A$ millions FY 2009 FY 2008 Cash generated from operations 135.6 17.9 Interest and tax payments (13.0) (5.9) Net cash provided by/(used) in operating activities 122.7 12.0 Proceeds from sale of assets 59.0 67.5 Capital investment (excluding leasing) (130.7) (76.8) Other investing activitie
Slide 14: 30 June financial position
30 June financial position A$ millions FY 2009 FY 2008 Cash 131.2 80.9 Current receivables 173.6 49.0 Other current assets 50.8 38.1 Current assets 355.5 167.9 Non-current receivables 98.3 27.2 Other non-current assets 553.2 428.2 Total assets 1,007.0 623.4 Current payables 64.8 37.9 Current tax pay
Slide 15: Capex and FX summary
Capex and FX summary Capital Investment - $ million FY 2009 Rocglen Development 24.5 Sunnyside Development 16.8 Gunnedah CHPP Maintenance 1.8 Tarrawonga Maintenance 1.3 Total Gunnedah Operations 44.4 Werris Creek Development (Mining Equipment for Own/Operate) 26.1 Narrabri Stage 1 Development 91.7 O
Slide 16: Contents
Contents • Highlights • Operating and financial results • Status of growth plans • Outlook FY 2009 Results Presentation 14
Slide 17: Achievements in FY 2009
Achievements in FY 2009 Increased managed saleable coal production by 32%, to 3.3 Mt Developed opencut mines to provide up to 5.5 Mtpa of saleable coal production capacity (100% basis) from 4 opencut mines Increased opencut coal reserves, to support opencut saleable coal production of 5 Mtpa for mor
Slide 18: Coal Resources and Reserves
Coal Resources and Reserves COAL RESOURCES - AUGUST 2009 (100% Basis) Measured Indicated Inferred Total Mining District Resource Resource Resource Resources GUNNEDAH OPERATIONS Opencut 42.2 93.1 37.0 172.3 GUNNEDAH OPERATIONS Underground 8.4 40.3 62.1 110.8 WERRIS CREEK Opencut 30.0 4.8 2.7 37.5 NAR
Slide 19: Whitehaven is the leading coal producer and developer in the Gunnedah Basin
Whitehaven is the leading coal producer and developer in the Gunnedah Basin Whitehaven recognised the value of Gunnedah Basin coal early and has been building its large resource base for 10 years Narrabri was one of the last large Exploration Licences (EL) issued under the old NSW system, i.e. witho
Slide 20: Solid, low-risk existing OC business with up to 5.5 Mtpa capacity
Whitehaven has a solid, low-risk, existing OC business with up to 5.5 Mtpa saleable capacity Gunnedah Operations – 3 OC Mines Tarrawonga Mine (WHC 70%) Reserves to support 15 – 20 year LOM Permitted to 2.0 Mtpa ROM PCI & high quality thermal coals Saleable coal yield >90% Rocglen Mine (WHC 100%) Res
Slide 21: Gunnedah operations – CHPP and rail loader
Gunnedah operations – CHPP and rail loader Gunnedah Operations CHPP (WHC 100%) Permitted to handle and rail 4.0 Mtpa Handles all coal from Tarrawonga, Rocglen and Sunnyside Approximately 50% of ROM coal washed Washed coal yield >80% Total saleable coal yield >90% FY 2009 Results Presentation 19
Slide 22: Werris Creek open cut mine
Werris Creek open cut mine Werris Creek OC Mine (WHC 100%) Reserves to support 15 – 20 year LOM Permitted to 2.0 Mtpa PCI and thermal coals Saleable yield 100% Own crushing and rail load-out FY 2009 Results Presentation 20
Slide 23: WHC growth profile coordinated with infrastructure development
WHC growth profile is being coordinated with infrastructure development 1. Timing for stage 5 of the rail track upgrade is uncertain – it is expected that it will be completed in line with production requirements 21 2009 Results Presentation FY
Slide 24: Narrabri UG - Stage 1 construction on track
Whitehaven has substantial, near-term growth with Narrabri UG - Stage 1 construction on track Narrabri Project (WHC 70%) Low ash, high energy, low sulphur thermal coal for the export market Surface facilities are nearly finished with drift drivage well advanced Continuous miner operations expected t
Slide 25: Rail infrastructure to meet Whitehaven growth
Rail infrastructure to meet Whitehaven growth Whitehaven (60%) and Idemitsu (40%) have sponsored ARTC and RIC investment to increase rail track capacity Current track capacity is 6-7 train paths per day to Narrabri 5,400 tonne trains give capacity of 11-12 Mtpa between Whitehaven and Idemitsu......s
Slide 26: Port infrastructure to meet Whitehaven growth
Port infrastructure to meet Whitehaven growth Existing PWCS Terminal Ongoing capacity constraints at PWCS PWCS has expansion plans to 145 Mtpa Newcastle Coal Infrastructure Group (“NCIG”) Whitehaven owns 11% of NCIG....Stage 1 due to be commissioned in Q1 2010, in line with first Narrabri production
Slide 27: NCIG status – August 2009
NCIG status – August 2009 FY 2009 Results Presentation 25
Slide 28: NCIG status – August 2009
NCIG status – August 2009 FY 2009 Results Presentation 26
Slide 29: NCIG status – August 2009
NCIG status – August 2009 FY 2009 Results Presentation 27
Slide 30: NCIG status – August 2009
NCIG status – August 2009 FY 2009 Results Presentation 28
Slide 31: Low-risk open cut base with organic growth from Narrabri
Existing low-risk open cut production base with substantial organic growth from Narrabri project Four open cut mines producing 4 Mtpa, capacity up to ~5.5 Mtpa WHC has invested in rail track capacity upgrades to support growth plans Narrabri Stage 1 under construction Growth will be significant, but
Slide 32: Contents
Contents • Highlights • Operating and financial results • Status of growth plans • Outlook FY 2009 Results Presentation 30
Slide 33: The big picture: why invest in Australian coal?
The big picture: why invest in Australian coal? Source: Presentation by Peabody Energy to McCloskey USA, June 2009 FY 2009 Results Presentation 31
Slide 34: Electricity demand increasing rapidly
Electricity demand increasing rapidly Source: Presentation by Peabody Energy to McCloskey USA, June 2009 FY 2009 Results Presentation 32
Slide 35: Fuel options for large-scale increases in electricity production
What are the fuel options for large-scale increases in electricity production? Source: Presentation by Peabody Energy to McCloskey USA, June 2009 FY 2009 Results Presentation 33
Slide 36: What do the experts say about the future?
What do the experts say about the future? Source: Presentation by Peabody Energy to McCloskey USA, June 2009 FY 2009 Results Presentation 34
Slide 37: Rapid growth in coal use and imports expected in Asia
Rapid growth in coal use and imports is expected to be focussed in Asia Source: Presentation by Peabody Energy to McCloskey USA, June 2009 FY 2009 Results Presentation 35
Slide 38: Rapid growth in coal use and imports expected in Asia
Rapid growth in coal use and imports is expected to be focussed in Asia Source: Presentation by Peabody Energy to McCloskey USA, June 2009 FY 2009 Results Presentation 36
Slide 39: Australia a small coal consumer, but #1 exporter
Australia a relatively small coal consumer, but #1 exporter; has resources & advantages to stay #1 Source: Presentation by Peabody Energy to McCloskey USA, June 2009 FY 2009 Results Presentation 37
Slide 40: Short and medium term outlook
Short and medium term outlook Demand – Cyclical slowdown, but structural uptrend • Demand for thermal coal remains strong and demand for metallurgical coal recovering • China currently importing much larger tonnages of Australian thermal coal, India following Supply – Constrained by infrastructure,
Slide 41: Whitehaven's response
Whitehaven’s response Advantages of high quality coal & flexibility in production from existing OC mines Our forward coal sales contracts support WHC’s growth profile Our matrix of coal sales contracts & commitments minimises production and infrastructure risks A$ forward currency contracts support
Slide 42: Fixed price contract status
Fixed price contract status “Legacy” thermal coal contracts of 6.85 Mt remain over next 3 years, average price US$69.25/t Otherwise, US$ coal prices are currently only fixed for the short term Approximately 96% of FY 2010 fixed price sales are covered by FX contracts at ~0.74 A$/US$ Approximately 53
Slide 43: Near and medium term objectives
Near and medium term objectives Grow earnings and dividends per share, maintain financial stability and create shareholder value Continue to manage existing OC operations efficiently Deliver Narrabri on time and budget Active exploration within Gunnedah lease/EL areas to further increase coal resour
Slide 44: Delivering Growth: FY 2009 Results
Whitehaven Coal Limited Delivering Growth FY 2009 Results August 25th 2009