Whitehaven Coal Limited · ASX:WHC
Whitehaven Coal — Curran & Co (February 2017)
24 slides from Whitehaven Coal's conference presentation, Feb 2, 2017
Slide 1: Presentation at Curran & Co
Whitehaven Coal Limited PRESENTATION AT CURRAN & CO Australia’s Leading High-Quality Coal Company 2 FEBRUARY 2017
Slide 2: Disclosure
Disclosure 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 3: Agenda
Agenda – About Whitehaven Coal – World and Asian Coal Demand Growth – How Whitehaven Benefits – Outlook – Appendices 3 // CURRAN & CO FEBRUARY 2017
Slide 4: Whitehaven as a Business
Whitehaven as a Business AUSTRALIAN LISTED COAL MINER PRODUCING PREMIUM COALS FROM THE GUNNEDAH BASIN IN NEW SOUTH WALES ASX Code: WHC − Whitehaven Coal is the largest independent coal – 1,026 million shares on issue miner in Australia, producing and selling more than – Market Cap $A2.8 billion 21 M
Slide 5: Whitehaven's Operations
Whitehaven’s Operations THE LARGEST PRODUCER IN THE GUNNEDAH BASIN Developing and operating mines since 1999 Current Operations – Maules Creek (75%) Tier One Mine – Narrabri (70%) Tier One Mine – Tarrawonga (70%) – Werris Creek (100%) – Rocglen (100%) – Gunnedah CHPP (100%) Development Assets – Vick
Slide 6: Coal Sales and Production
Coal Sales and Production QUADRUPLED MANAGED SALES AND SALEABLE COAL PRODUCTION OVER 5 YEARS Whitehaven Managed Sales and Production – Managed sales and saleable (000's t) production have increased by a 25,000 factor of 4 times over four years and reached 20Mt in FY2016 20,000 – Equity sales and sal
Slide 7: Cash Costs and Margins
Cash Costs and Margins WHITEHAVEN HAS SUCCESSFULLY REDUCED COSTS IN EACH OF THE PAST FOUR YEARS – Cash costs have been driven into the first Whitehaven's Cash Costs and Margins ($/t) quartile 80 – Cost guidance for the first half of FY2017 70 was $56/t excluding royalties 60 – Margins have increased
Slide 8: Tier 1 Mines – Maules Creek and Narrabri
Tier 1 Mines – Maules Creek and Narrabri 1ST QUARTILE MINES PRODUCING HIGH QUALITY COAL Maules Creek – Ownership: 75% Whitehaven – Open cut mine using ultra-class mining equipment – Reserves of 510Mt providing a ~ 40 year mine life – FY2017 production expected to be in the range of 9.5Mt and 9.8Mt R
Slide 9: Whitehaven's Growth to Continue
Whitehaven’s Growth to Continue MAULES CREEK RAMP UP AND WIDER FACE AT NARRABRI CONTRIBUTING TO GROWTH Saleable Coal Production (100%, Mt) – Ramping up of production from Maules 25.00 Creek continues, and the wider face at Narrabri contributes from H2 FY2017 20.00 – Increased production of higher qu
Slide 10: World & Asian Coal Demand Growth
World & Asian Coal Demand Growth
Slide 11: World Electrical Capacity
World Electrical Capacity IEA WORLD ENERGY OUTLOOK 2016 FORECASTS GROWING COAL GENERATING CAPACITY GROWTH – Under the New Policies Scenario the World Electrical Capacity (GW) IEA expects world electricity demand to 12000 grow at 2% annually to 2040 increasing 10000 by 66% over the period 8000 – Coal
Slide 12: Asian Electrical Capacity
Asian Electrical Capacity THE REGION OFFERING THE STRONGEST DEMAND GROWTH FOR COAL Non-OECD Asia Electrical Capacity (GW) – Total generating capacity grows from 6000 2000GW in 2014 to over 5000GW in 2040 according to the IEA 5000 – Coal’s share of the generating capacity 4000 declines from 55% to 37
Slide 13: Australia's & Whitehaven's Markets
Australia’s & Whitehaven’s Markets COAL DEMAND IN ASIA EX CHINA AND INDIA SET TO GROW STRONGLY – Growth in coal consumption is Asian Coal Demand ex China and India (Mtce) concentrated in Asia countries driven by 900 strong growth in incomes and energy 800 needs 700 600 – Coal demand in SE Asia is se
Slide 14: Coal - Pathway to Lower Carbon Emissions
Coal - Pathway to Lower Carbon Emissions UTILISING HIGH QUALITY COALS IN MORE EFFICIENT HELE POWER STATIONS LOWERS EMISSIONS Old and New Generating Technology (kg – If the world converted from lignite CO2/kWh) and black coal fired subcritical 1600 power stations to black coal fired 1400 USC plants t
Slide 15: Deployment of HELE Gathers Momentum
Deployment of HELE Gathers Momentum OVER THE NEXT 25 YEARS A TOTAL OF 730GW OF HELE PLANTS WILL BE BUILT Deployment of Efficient HELE Technology – Global coal demand for electricity (Mtce) generation increases by 463Mtce 3500 from 2014 to 2040, predominantly in 3000 the Asian region 2500 – In 2014 a
Slide 16: How Whitehaven Benefits
How Whitehaven Benefits EN WHITEHAVEN COAL
Slide 17: Whitehaven's Growing Customer Base
Whitehaven’s Growing Customer Base OVER 90% OF WHITEHAVEN’S COAL IS CONSUMED IN PREMIUM ASIAN MARKETS Number of Whitehaven Customers – Whitehaven sells all of its thermal and metallurgical coal (excludes Traders) Japan production into the seaborne market Korea – Whitehaven has become an important su
Slide 18: Whitehaven's High CV Coals
Whitehaven’s High CV Coals USE OF MAULES CREEK COAL IN POWER GENERATION REDUCES CARBON EMISSIONS Carbon Emission Improvement by Coal Type 0.0% Lignite – Using higher quality coals in USC (2%) (HELE) power stations lowers Improvement in CO2 intensity (%) (4%) Indo, Sub-bit carbon emissions 4000 NAR (
Slide 19: Outlook
Outlook EN WHITEHAVEN COAL
Slide 20: Near Term Seaborne Coal Demand Growth
Near Term Seaborne Coal Demand Growth WHITEHAVEN EXPECTS COAL DEMAND TO GROW OVER NEXT FIVE YEARS Thermal Coal Demand Growth in Whitehaven's Key – Coal consumption is set to grow Markets (Mt) in all of Whitehaven’s current 600 markets and in target SE Asian 500 markets – All of Whitehaven’s current
Slide 21: www.whitehavencoal.com.au
www.whitehavencoal.com.au -N WHITEHAVEN COAL ATO
Slide 22: Appendices
Appendices EN WHITEHAVEN COAL
Slide 23: Resources
Resources Note: See Competent Person Statement on Slide 2 23 // CURRAN & CO FEBRUARY 2017
Slide 24: Reserves
Reserves Note: See Competent Person Statement on Slide 2 24 // CURRAN & CO FEBRUARY 2017