Colonial Coal International Corp. · TSXV:CAD
Colonial Coal International — Investor Presentation (January 2014)
31 slides from Colonial Coal International's investor presentation, January 2014
Slide 1: Colonial Coal International Corporation
TSX-V: CAD Colonial Coal International Corporation Western Canada’s Leading Coking Coal Developer January 2014 Investor Presentation
Slide 2: Legal Disclaimers
Legal Disclaimers This presentation may contain forward-looking statements, and forward looking information under applicable securities laws including management’s expectations of future production, cash flow and earnings. These statements are based on current expectations that involve a number of r
Slide 3: Company Snapshot
Company Snapshot Experienced Management Team Strategic Location Dawson David Austin Chief Executive Officer and Chairman Creek John Perry Chief Operating Officer and Director Chetwynd ALBERTA William Filtness, CA Chief Financial Officer Prince Fort Nelson Rupert Perry Braun Business Development Flat
Slide 4: Peace River Coalfield
Peace River Coalfield Atrum Coal PRC Project Quintette (Teck) 1 Anglo Coal 10 Target Production: 3.0 Mtpa Exploration Target: 25 Mt Fort St John Anglo Pacific Production Start: 2013 Belcourt Saxon JV Atrum Coal (Walter (50%) / Anglo (50%)) Belcourt Saxon JV Suska (8) & Sukunka (9) 2 4 7 Hudson’s Hop
Slide 5: Unparalleled Investment Opportunity
Unparalleled Investment Opportunity ● Invest in one of the largest deposits of premium quality hard coking coal in western Canada Targeted open pit mineable resource of 397 Mt at Huguenot Project (“Huguenot”) Potential for large tonnage deposit at Flatbed Project (“Flatbed”) in proximity to Tren
Slide 6: One of the Largest Premium Hard Coking Coal Deposits in the Region
One of the Largest Premium Hard Coking Coal Deposits in the Region Metallurgical Coal Resource Size Benchmark ● Huguenot has a contained Select Peace River Coalfield Based Peers Huguenot Resource Estimate (mm tonnes) resource of 397 million tonnes, 1400 making it one of the largest 7,000 Surface Und
Slide 7: Strategic Location With Significant Partnership Opportunities
Strategic Location With Significant Partnership Opportunities ● Sharing in the development of joint infrastructure (roads / rail) Potential to Jointly Develop Shared Infrastructure with operators in the region would lower initial capital costs at Huguenot ■ PEA contemplates a standalone railway used
Slide 8: Attractive Project Economics
Attractive Project Economics Summary PEA Statistics(1) Capital Expenditure Details ($ m)(1) ● Colonial released a Preliminary Economic Assessment ("PEA") Mine Life (years) 31 Power & Building Costs $285 for Huguenot in September 2013 Capital Cost ($m) $606 Road & Rail Load-Out Costs $25 ● The PEA ou
Slide 9: Available Rail and Port Capacity to Access Export Markets
Available Rail and Port Capacity to Access Export Markets ● Production from Huguenot would be shipped via rail to export terminals on the west coast of Canada British Columbia Dawson Creek Chetwynd AB ● Rail lines out of the Peace River Coalfields are Peace River Coalfield operated by a Class I Cana
Slide 10: Experienced Management and Board
Experienced Management and Board Management Team and Board of Directors David Austin ● Founder of Western Coal, NEMI and now CCIC Chairman, President & CEO ● Over 20 years experience as a director or officer for mining companies William Filtness ● CFO of High Desert Gold, South American Silver, and
Slide 11: Western Canadian Coal Poised for Growth
Western Canadian Coal Poised for Growth Canadian Met Coal Supply by Project Western Canadian Coal Overview 14.0 No. of Operating Mines Met Coal Supply 45.0 ● Western Canada has vast coal resources including some of the world’s highest quality coking coals Number of Operating Mines 40.0 12.0 Supply (
Slide 12: World Class Infrastructure
World Class Infrastructure Extensive Regional Infrastructure Unencumbered Access to Export Markets FORT NELSON HAY RIVER ● 3 rail load-out facilities in the Peace River Coalfield ● CN Rail provides access to Ridley Terminals Ridley Terminals PRINCE ALBERT SASKATCHEW ● Deep-water coal loading facilit
Slide 13: Expanding BC Port Capacity
Expanding BC Port Capacity 2008-15E Port Capacity (Mt) Available Port Capacity Ridley Neptune Westshore 69.5 70 60.5 ● Port capacity available at Prince Rupert (Ridley), 58.0 60 24.0 Vancouver (Westshore and Neptune) or other 49.5 15.0 12.5 alternatives Capacity (MM t) 50 44.5 39.9 12.5 40 33.4 33.5
Slide 14: Watson Island Investment Upside
Watson Island Investment Upside Tsimpsian Peninsula ● Colonial Coal and an industry partner have entered into an MoU with Lax Kw’alaams Band and Metlakatla First Nations (“Coast Tsimshian Nation”) for the formation of a JV for the potential acquisition of the Watson Island site (“Watson Island Land”
Slide 15: Exposure to High Growth Asian Markets
Exposure to High Growth Asian Markets Attractive Market Outlook Top 5 Countries by Met Coal Demand (Mt) ● Favourable global demand dynamics 2005 56.5 High growth in demand driven by developing countries 18.8 16.5 14.4 10.0 such as China and India Japan South Korea India Brazil Italy ● Adverse supp
Slide 16: Huguenot Coking Coal Project – 100% Interest
Huguenot Coking Coal Project – 100% Interest Project Location Project Summary ● Located adjacent to the proposed Belcourt South open pit Huguenot Coal Licences Huguenot Coal License Applications (owned by Belcourt Saxon Coal Ltd. – Anglo/Walter JV) Belcourt Saxon Coal Ltd. Similar coal characteris
Slide 17: Huguenot – Exploration Upside
Huguenot – Exploration Upside Huguenot North Block Resource Cross Section ● Theoretical pit (using an incremental strip ratio limit of 20:1) yields 45.9(1) million tonnes at 12.9:1 ● 4 coal seams out of 9 represent 78% of the resources ● Area operators are now considering using an incremental strip
Slide 18: Huguenot – Premium Coking Coal Characteristics
Huguenot – Premium Coking Coal Characteristics ● Premium product clean coal product with low ash, low sulfur, low phosphorus, and High FSI ● Theoretical yield of 72.9%(1) North Block Clean Coal Quality Summary Ash VM FC S %P Dmmf Theoretical % Core Seam FSI % % % % (in coal) VM % Yield % Rec. 8A(2)
Slide 19: Flatbed Coking Coal Project – 100% Interest
Flatbed Coking Coal Project – 100% Interest Project Location Project Summary PRC Loadout ● Property adjacent to Trend and Quintette mines Perry Mesa Pit Colonial Coal Creek Flatbed Project Mine Shikano Pit ● Licenses pending Quintette Hermann Deposit Loadout License Applications: ● Potential for lar
Slide 20: Development Timeline
Development Timeline Key Milestones Achieved Initial 43-101 Resource Estimate – Huguenot (North Block) Q3 – 2010 Commenced Environmental Baseline Studies – Huguenot Q2 – 2011 Applied For Additional Coal Licenses (16,425 ha) – Huguenot Q2 – 2011 Commenced Drilling Program – Huguenot (Middle & South B
Slide 21: Financial Snapshot
Financial Snapshot Capital Structure Price - Volume Chart Share Capital $2.00 2.0 Share Price (January 20, 2014) (C$) $0.28 Basic Shares Outstanding (mm) 65.1 FD ITM Shares Outstanding (mm) 65.1 Gross Equity Value (C$ mm) $18 $1.50 1.5 52-Week High (C$) $0.78 52-Week Low (C$) $0.25 Volume (millions)
Slide 22: Unparalleled Investment Opportunity
Unparalleled Investment Opportunity ● Invest in one of the largest deposits of premium quality hard coking coal in western Canada Targeted open pit mineable resource of 397 Mt at Huguenot Project (“Huguenot”) Potential for large tonnage deposit at Flatbed Project (“Flatbed”) in proximity to Tren
Slide 23: Rights of Action for Purchasers
Rights of Action for Purchasers Ontario, Nova Scotia, New Brunswick, Newfoundland and Labrador, Price Edward Island, Manitoba and Saskatchewan: Securities legislation in Ontario, Nova Scotia, New Brunswick, Newfoundland and Labrador, Prince Edward Island, Manitoba and Saskatchewan provides investors
Slide 24: Rights of Action for Purchasers, continued
Rights of Action for Purchasers, continued Ontario. If this presentation, together with any amendment to this presentation, contains a Misrepresentation, an investor in the Province of Ontario will have, without regard to whether the Misrepresentation was relied upon by the investor, a statutory rig
Slide 25: Rights of Action for Purchasers, continued
Rights of Action for Purchasers, continued Nova Scotia. If this presentation, together with any amendment to this presentation or any advertising or sales literature (as defined in the Securities Act (Nova Scotia) (the “Nova Scotia Act”)), contains a Misrepresentation and it was a Misrepresentation
Slide 26: Rights of Action for Purchasers, continued
Rights of Action for Purchasers, continued New Brunswick. If this presentation, together with any amendment to this presentation, delivered to an investor resident in New Brunswick contains a Misrepresentation that was a Misrepresentation at the time of purchase, the investor will be deemed to have
Slide 27: Rights of Action for Purchasers, continued
Rights of Action for Purchasers, continued Newfoundland and Labrador. If this presentation, together with any amendment to this presentation or any record incorporated by reference in, or considered to be incorporated into this presentation contains a Misrepresentation and it was a Misrepresentation
Slide 28: Rights of Action for Purchasers, continued
Rights of Action for Purchasers, continued Prince Edward Island. A “Misrepresentation” for purposes of the Securities Act (Prince Edward Island) also includes an omission to state a material fact that is required to be stated by the Securities Act (Prince Edward Island). If this presentation, togeth
Slide 29: Rights of Action for Purchasers, continued
Rights of Action for Purchasers, continued Manitoba. If this presentation or any amendment hereto contains a Misrepresentation, an investor is deemed to have relied on the Misrepresentation and has a right of action for damages against the Company and, subject to certain additional defences, every d
Slide 30: Rights of Action for Purchasers, continued
Rights of Action for Purchasers, continued Saskatchewan. If this presentation, together with any amendment to this presentation, is sent or delivered to an investor resident in Saskatchewan and contains a Misrepresentation at the time of purchase, the investor is deemed to have relied upon that Misr
Slide 31: Rights of Action for Purchasers, continued
Rights of Action for Purchasers, continued Rights for Purchasers in Alberta, British Columbia and Quebec By purchasing the securities of the Company hereunder, purchasers in the provinces of Alberta, British Columbia and Quebec who are not entitled to the statutory rights described above, in conside
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