Terra Metals Limited · ASX:TM1
Terra Metals — Investor Presentation (April 2017)
30 slides from Terra Metals's investor presentation, Apr 6, 2017
Slide 1: Equity Raising Investor Presentation
Equity Raising Investor Presentation 6 April 2017 ABN 44 155 933 010 Not for release to US wire services or distribution in the United States
Slide 2: Equity Raising Overview
Equity Raising Overview ▪ Equity raising to raise approximately A$52 million (“Equity Raising”) through a Placement that will take place in two tranches: • The first tranche of the Placement will consist of 44.6 million New Shares (“Tranche 1”) issued pursuant to the Company’s 15% placement capacity
Slide 3: Equity Raising Timetable
Equity Raising Timetable Key Event Time / Date1 (AWST) Trading Halt, Announcement of Equity Raising 4:45pm Thursday, 6 April 2017 Bookbuild Opens 5:00pm Thursday, 6 April 2017 Australia / Asia Bookbuild Closes 4:00pm Friday, 7 April 2017 North American Bookbuild Closes 10:00pm Friday, 7 April 2017 A
Slide 4: Sources and Uses of Equity & Debt Financing Proceeds
Sources and Uses of Equity & Debt Financing Proceeds In conjunction with Paringa’s current cash balance (US$6m) and Macquarie Bank Debt Facility 1 (US$20m), the US$38M (net) Equity Raising completes the funding required for the development of Poplar Grove Coal Mine Sources Uses Cash Balance (31 Marc
Slide 5: Paringa Pro-Forma Capital Structure
Paringa Pro-Forma Capital Structure Paringa’s success in developing a low capex, low risk and high return resources project is not yet currently reflected in the Company’s share price, presenting an excellent entry point for investors ASX Code PNL Share Price (A$) Volume (m) 0.70 4.0 Pro-Forma Capit
Slide 6: Expanded BFS Results
Expanded BFS Results Expanded BFS incorporates the second coal seam (WK No.11) at Poplar Grove, resulting in: Poplar Grove Mine Enhanced Poplar Grove Metrics 1 56% increase in production to 2.8 Mtpa from an additional US$5 million initial capex 2 72% increase in EBITDA to US$67 million 80% increase
Slide 7: High Returns on Capital
High Returns on Capital A rare combination of a technically simple, low risk and low cost project, located in a first world business friendly jurisdiction, that will deliver strong, consistent cashflow and generate high returns on capital High Returns from Low Initial Capex Alliance Historical EV to
Slide 8: Low Risk Development
Low Risk Development Paringa has significantly “de-risked” the Poplar Grove and Cypress Mines through completion of six technical studies, analysis of over +1,200 drill intercepts and geological modelling, benchmarked opex and capex intensity to other Illinois mine operations, cornerstone US$205 mil
Slide 9: Fully Permitted to Start Construction
Fully Permitted to Start Construction Development Timeline at Poplar Grove and Cypress Mines (2017 to 2019) Complete Poplar Grove Mine Permitting Execute Surface Start construction of Construction Start incline to Options Coal Preparation Complete Construction access WK No.11 Complete Plant Start at
Slide 10: Low Risk Coal Seam Access
Low Risk Coal Seam Access Initial Capex: US$ 44.7 million …the geology of the Poplar Grove Mine (WK No.9 seam) allows for a very quick and efficient method of accessing the coal seam which significantly reduces the capital cost and construction period Poplar Grove Box Cut Mine Portal 10
Slide 11: Low Capex Intensity
Low Capex Intensity The capital intensity of Paringa’s and low cost development of Poplar Grove and Cypress Mines is in line with recent new developments in the Illinois Basin Poplar Grove: Initial Project Capex1 Illinois Basin: Capex Intensity2 Major Capital Items US$ Million Land Acquisition & Pro
Slide 12: Low Cost Poplar Grove Expansion
Low Cost Poplar Grove Expansion By 2020, Paringa will access the WK No.11 seam with average seam thicknesses of +4.2 feet and clean coal quality characteristics similar to the Poplar Grove Mine’s WK No.9 seam WK No.11 above the WK No.9 seam at Poplar Grove Stratigraphic Column of Drill Hole HMG-27 P
Slide 13: Simple, Low Risk Mining Operations
Simple, Low Risk Mining Operations Paringa aims to replicate the success of nearby operations - mining the same coal seams, using the same mining methods, mining equipment and coal processing, complimenting available infrastructure, low cost and reliable electricity and a wide range of highly skille
Slide 14: Low Opex
Low Opex Paringa’s and low cost operations are typical for new room-and-pillar developments in the Illinois Basin Poplar Grove: Opex (FOB Barge)1 Illinois Basin: Cash Cost Curve2 Average Annual Operating Costs (Steady State) US$ per ton Labor and Benefits US$7.18 Operating & Maintenance US$8.55 Powe
Slide 15: Secured US$205 Million Sales Contract
Secured US$205 Million Sales Contract Paringa has successfully secured a US$205 million fixed price, fixed tons sales contract for delivery of 4.75 million tons from 2018 to 2022 to LG&E and KU, one of the biggest fuel buyers within the Ohio River Market Ohio River Market and LG&E’s 3 Power Plants S
Slide 16: Strategic Illinois Basin Assets
Strategic Illinois Basin Assets Since 2008, the previous vendor group and Paringa have secured a total of 304 individual leases, comprising of over 510 individual property tracts and covering an area totaling almost 40,000 acres. Buck Creek Barriers to Entry: Buck Creek Complex and Surrounding Histo
Slide 17: Team with Extensive Experience
Team with Extensive Experience An experienced team with significant experience in the coal industry, particularly the Illinois Basin ▪ Formerly the CEO of Aston Resources Ltd and was instrumental in developing the company into one of the largest publicly listed Todd Hannigan coal companies in Austra
Slide 18: World Class Board
World Class Board A high quality Board with mining experience covering the entire cycle of development, financing & production ▪ Highly respected resource executive with extensive finance, commercial and capital markets experience Ian Middlemas Chairman ▪ Current Chairman of Berkeley Energy Limited,
Slide 19: Appendix: Overview of BFS Results
Appendix: Overview of BFS Results Initial low cost development of the 2.8 Mtpa Poplar Grove, followed by the Cypress Mine, provides a clear pathway to strong, predictable free cashflow, as well as exposure to substantial upside as the production profile increases Combined BFS Results BFS Summary (Mi
Slide 20: Appendix: Illinois Basin - 3 Distinct Mine Regions
Appendix: Illinois Basin - 3 Distinct Mine Regions Location, access to low cost barge transportation, coal quality (i.e. chlorine content) and mining methods largely explains key differences in EBITDA1 amongst the key Illinois Basin players Illinois Mine Method: Longwall Target Market: South East Tr
Slide 21: Appendix: Illinois Basin - Best Performing US Basin
Appendix: Illinois Basin - Best Performing US Basin The Illinois Basin is the only basin that continues to offer disciplined coal producers the ability to generate stable, positive cashflow throughout the cycle Major US Coal Basins Illinois Basin ✓ Highly productive geology (in-seam yield ~90%) ✓ Hi
Slide 22: Appendix: Key Risks
Appendix: Key Risks 1.1 Introduction There are a number of factors, both specific to the Company and of a general nature, which may, either individually or in combination, affect the future operation, exploration, development and financial performance and/or financial position of the Company, its pr
Slide 23: Appendix: Key Risks
Appendix: Key Risks e) The Company has limited operating history The Company has limited operating history on which it can base an evaluation of its prospects. Despite this, members of the Company’s Board of Directors and management team have considerable experience in developing and mining of coal
Slide 24: Appendix: Key Risks
Appendix: Key Risks l) Environment The operations and proposed activities of the Company are subject to State and Federal laws, regulations and permits concerning the environment. If such laws are breached or modified, the Company could be required to cease its operations and/or incur significant li
Slide 25: Appendix: Key Risks
Appendix: Key Risks 1.3 General risk factors The Directors also consider that potential investors should be aware of the following general risk factors. a) Economic conditions Changes in the general economic climate in which the Company operates may adversely affect the financial performance of the
Slide 26: Appendix: International Offer Restrictions
Appendix: International Offer Restrictions International Offer Restrictions This document does not constitute an offer of new ordinary shares ("New Shares") of the Company in any jurisdiction in which it would be unlawful. In particular, this document may not be distributed to any person, and the Ne
Slide 27: Appendix: International Offer Restrictions
Appendix: International Offer Restrictions Hong Kong WARNING: This document has not been, and will not be, registered as a prospectus under the Companies (Winding Up and Miscellaneous Provisions) Ordinance (Cap. 32) of Hong Kong, nor has it been authorised by the Securities and Futures Commission in
Slide 28: Appendix: International Offer Restrictions
Appendix: International Offer Restrictions United Kingdom Neither the information in this document nor any other document relating to the offer has been delivered for approval to the Financial Conduct Authority in the United Kingdom and no prospectus (within the meaning of section 85 of the Financia
Slide 29: Important Notice & Disclaimer
Important Notice & Disclaimer Cautionary Statements and Important Information This presentation does not constitute or form part of any offer to sell, or solicitation of any offer to buy, any securities in the United States or any other country. This presentation may not form the basis of any contra
Slide 30: www.paringaresources.com
Head Office: 6724 E Morgan Avenue, Suite B | Evansville | Indiana | 47715 New York Office: 6 E 46th Street, 3rd Floor | New York | NY | 10017 Registered Office: Level 9, BGC Centre, 28 The Esplanade | Perth | WA | 6000 www.paringaresources.com Email: info@paringaresources.com Website: www.paringares