Celsius Resources Ltd. · ASX:CLA
Celsius Resources — Celsius Coal — Investor Presentation (January 2014)
26 slides from Celsius Resources's investor presentation, Jan 29, 2014
Slide 1: Premium Coal Supply for China and Central Asia
For personal use only PREMIUM COAL SUPPLY FOR CHINA AND CENTRAL ASIA January 2014
Slide 2: Disclaimer
Disclaimer For personal use only The information contained in this presentation (“Presentation”) has been prepared by Celsius Coal Ltd (“Company” or “Celsius” or “CLA”) and is being communicated for general background informational purposes only. The information contained in this Presentation is sub
Slide 3: Company snapshot
For personal use only Company snapshot Section 1 Drill rig operating at Kargasha, 2012 (Uzgen Basin coking coal project) 3
Slide 4: Capitalization and structure
Company snapshot Capitalization and structure For personal use only Capitalization summary Corporate structure Share price (at Jan 24, 2014) A$0.014/share Australia Celsius Coal Shares outstanding 2,010.9m Ltd. Market capitalization A$28.2m Net cash (at Dec 31, 2013)1 A$0.2m Hong Kong 100% 80% Enter
Slide 5: License location and tenure
Company snapshot License location and tenure For personal use only Uzgen Basin coking coal licenses Kargasha Status: Exploration license Size: 8,000ha Kokkia Status: Exploration license Size: 1,576ha Sary Mogol Bel Alma Min Teke Alai Status: Mining license Status: Exploration license Status: Mining
Slide 6: Directors and senior management
Company snapshot Directors and senior management For personal use only Name and position Background Alexander Molyneux Previously CEO, SouthGobi Resources (2009-2012) – largest foreign coal producer in Executive Chairman Mongolia (US$550M market cap./ US$800M EV) (Executive Director) Prior to So
Slide 7: Investment themes
For personal use only Investment themes Section 2 Hard black bituminous coal recovered during core drilling at Kargasha, 2012 7
Slide 8: Large-scale coking coal resource
1 Large-scale coking coal resource JORC Resource of 255 million tonnes with upside For personal use only Summary of existing coal JORC Resources (Uzgen Basin Coking Coal)1 Inferred Total Kargasha 230 230 Kokkia 25 25 Min Teke – – Total 255 255 Total near-term targeted tonnages (including exploration
Slide 9: Premium quality coals
2 Premium quality coals Uzgen Basin licenses contain quality coking coals For personal use only Indicative coal qualities (international system) Chinese coal classification Kargasha Kokkia Fat (FM) Gas fat (QF) Calorific Valuedaf 7,862(1) 7,800-8,500(3) 85 (Kcal/kg) 1/3 Volatile Matterad Coking (JM)
Slide 10: China: Xinjiang, the Chinese neighbour with unique prospects
3 Proximity to growing high-value markets China: Xinjiang, the Chinese neighbour with unique prospects For personal use only Xinjiang Province China, basic facts Population: 22m GDP/capita: US$4,600 (1/3-1/2 coastal levels) Xinjiang development and infrastructure Xinjiang has been highlighted
Slide 11: China: Xinjiang already has a coking coal supply deficit
3 Proximity to growing high-value markets China: Xinjiang already has a coking coal supply deficit For personal use only Coking coal supply / demand gap1 Prime coking coal supply / demand gap PCC Production (Mt) PCC Demand (Mt) PCC 1/3CC 19.0 18.4 Gas coal Fat coal 16.6 Lean coal 11.5 7.8 3.9 3.8 4.
Slide 12: China: Xinjiang prices are independent of seaborne and rising
3 Proximity to growing high-value markets China: Xinjiang prices are independent of seaborne and rising For personal use only Xinjiang premium coking coal price vs. seaborne quarterly hard coking coal benchmark price 350 Quarterly Contracted HCC Price (USD/t) Xinjiang PCC Price (USD/t) 300 250 200 1
Slide 13: China: Target customers have been identified and engaged
3 Proximity to growing high-value markets China: Target customers have been identified and engaged For personal use only Crude steel production (Mt) 22.5 12.0 Aletai Takeshiken 2012 2015e Alashankou Karamay Laoyemiao Yining Changji Irkeshtam Torugart URUMQI Hami Kizilsu Aksu Turpan Kashgar Bayingol
Slide 14: Kyrgyz Republic and Central Asia: Premium markets
3 Proximity to growing high-value markets Kyrgyz Republic and Central Asia: Premium markets For personal use only Kazakhstan – thermal coal price US$65-90/t Bishkek / Talas market – US$65- 105/t Jalalabad / Osh market – thermal coal price US$85-140/t Tajikistan – thermal coal price US$85-160/t 14
Slide 15: A primary road route has been selected for initial exports
4 Feasible routes to market A primary road route has been selected for initial exports For personal use only Distance from Uzgen Basin Coking Coal Project to Torugart border of approximately 300km Estimated transport cost to border US$8/t plus US$4-5/t estimated charges for customs etc. for bord
Slide 16: Railway is expected to reduce transport costs by 2017
4 Feasible routes to market Railway is expected to reduce transport costs by 2017 For personal use only Proposed Trans-Asia Railway Commentary China, Kyrgyz Republic and Uzbekistan have a plan to construct a 20mtpa railway, linking the three countries with Chinese rail at Kashgar Route options h
Slide 17: Internal concept study yielded positive results for auger mine
5 Low capex starter mine conceptualized Internal concept study yielded positive results for auger mine For personal use only Concept study highlighted the potential for auger mining (as used at Yarabee mine in Queensland) Celsius identified a concept for a 500-600ktpa ‘starter mine’ potential fo
Slide 18: Images of third-party auger and high-wall mining
5 Low capex starter mine conceptualized Images of third-party auger and high-wall mining For personal use only 18
Slide 19: Milestones and strategies
For personal use only Milestones and strategies Section 3 Mining operations at Min Teke, 2012 19
Slide 20: Fast-track to establish coal production and exports
Milestones and strategies Fast-track to establish coal production and exports For personal use only Coke strength testing expected completion in February 2014 MOU agreements with key customers in February/March 2014 Revised resource estimate March 2014 Environmental baseline studies 2014 A
Slide 21: More on geology
For personal use only More on geology Appendix 1 21
Slide 22: Celsius' drilling to date
Celsius’ drilling to date 2012-2013 drilling on Kargasha and Kokkia licenses For personal use only 22
Slide 23: Kargasha interpreted cross-sections
More on geology Kargasha interpreted cross-sections For personal use only Interpreted cross-sections showing 2012 and historical drilling DD12TK007 DD12TK002 A B 4.89m coal 4.29m coal in 7 seams in 8 seams DD12TK001 C D 4.43m coal in 4 seams 23
Slide 24: Kargasha interpreted cross-sections (continued)
More on geology Kargasha interpreted cross-sections (continued) For personal use only Interpreted cross-sections showing 2012 and historical drilling DD12TK003 DD12TK006 E F 4.94m coal 8.52m coal in 10 seams in 16 seams DD12TK004 DD12TK005 G H 1.63m coal 9.28m coal in 3 seams in 14 seams 24
Slide 25: Kargasha and Min Teke prospects
More on geology Kargasha and Min Teke prospects For personal use only Schematic cross section through the Kargasha and Min Teke prospects showing interpreted geology and the structure of the Tuyuk formation Note the shallow dip of the beds as well as small scale folding resulting in the coal rem
Slide 26: Competent persons statement
Competent persons statement For personal use only The information in this announcement that relates to Coal Resources is based on information compiled by Dr Gavin Springbett, a Competent Person who is a Member of The Australasian Institute of Mining and Metallurgy. Dr Springbett is acting as a consu