Whitehaven Coal Limited · ASX:WHC
Whitehaven Coal — Morgan Stanley Conference 2009
25 slides from Whitehaven Coal's conference presentation, May 5, 2009
Slide 1: Whitehaven Coal Limited: Delivering Growth
Whitehaven Coal Limited Delivering Growth Presentation to Morgan Stanley Conference May 5, 2009
Slide 2: 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 3: Contents
Contents • A snapshot • Status of growth plans • Outlook • The merger with Gloucester Coal Morgan Stanley Conference - May 5, 2009 2
Slide 4: A snapshot
A snapshot ASX listed company “WHC”; market capitalisation ~A$800 million Large coal resources in the Gunnedah Basin (refer ASX release 10th March 2009) Superior coal quality: PCI + low-ash, low-sulphur, high energy thermal coals First mover and major coal producer/developer in the Gunnedah Basin Sa
Slide 5: Experienced managers/owners
Experienced managers/owners Director/Title Experience John Conde AO +30 years commercial experience Non-Executive Chairman • Directors have extensive coal industry experience. Neil Chatfield +25 years in transport and resources Non-Executive Director industries • Directors are proven mine developers
Slide 6: Strong financial position
Strong financial position A$ millions 30 June 2008 31 December 2008 Cash 80.8 76.6 Current receivables 49.0 172.4 Other current assets 59.2 53.1 Non-current receivables 27.2 157.0 Other non-current assets 407.1 462.7 Total assets 623.3 921.8 Payables 37.9 40.2 Tax payable 10.1 85.9 Interest bearing
Slide 7: Whitehaven is the leading coal producer and developer in the Gunnedah Basin
Whitehaven is the leading coal producer and developer in the Gunnedah Basin Morgan Stanley Conference - May 5, 2009 6
Slide 8: Gunnedah operations - Tarrawonga mine
Gunnedah operations - Tarrawonga mine ► 1.5 Mtpa ROM capacity ► PCI & high quality thermal coals ► Saleable yield >90% ► ROM coal trucked to Gunnedah CHPP ► WHC owns 70% of JV Morgan Stanley Conference - May 5, 2009 7
Slide 9: Gunnedah operations - Rocglen mine
Gunnedah operations - Rocglen mine ► 1.5 Mtpa ROM capacity ► PCI and thermal coals ► Saleable yield ~85% ► ROM coal trucked to Gunnedah CHPP Morgan Stanley Conference - May 5, 2009 8
Slide 10: Gunnedah operations - Sunnyside mine
Gunnedah operations - Sunnyside mine ► Commenced December 2008 ► 1.0 Mtpa ROM capacity ► Thermal coals ► ROM coal trucked to Gunnedah CHPP Morgan Stanley Conference - May 5, 2009 9
Slide 11: Gunnedah operations – CHPP and rail loader
Gunnedah operations – CHPP and rail loader ► ~50% ROM coal washed ► Washed yield >80% ► Total yield >90% ► CPP upgrade to 3 Mtpa ► 24-7 rail loading to 4 Mtpa Morgan Stanley Conference - May 5, 2009 10
Slide 12: Werris Creek mine
Werris Creek mine ► 1.5 Mtpa capacity ► PCI and thermal coals ► Saleable yield 100% ► Own crushing and rail load-out Morgan Stanley Conference - May 5, 2009 11
Slide 13: Contents
Contents • A snapshot • Status of growth plans • Outlook • The merger with Gloucester Coal Morgan Stanley Conference - May 5, 2009 12
Slide 14: Narrabri Stage 1 construction on track
Narrabri Stage 1 construction on track Highway Upgrade Access Road Water Management Rail Loop 3.6 km Industrial Area Box Cut Morgan Stanley Conference - May 5, 2009 13
Slide 15: Established production with high growth
Established production with high growth ► Five OC mines now in production, Canyon to close in 2009 ► Saleable production capacity in 2009 ~ 5Mtpa ► Narrabri Stage 1 under construction, first coal in Q4 2009 ► WHC has invested in rail track capacity upgrades to support growth plans ► Port capacity is
Slide 16: Projects are on track and being coordinated with infrastructure development
Projects are on track and being coordinated with infrastructure development Morgan Stanley Conference - May 5, 2009 15
Slide 17: Rail infrastructure to meet Whitehaven growth
Rail infrastructure to meet Whitehaven growth Whitehaven (60%) and Idemitsu (40%) have sponsored ARTC investment to increase rail track capacity (Stages 1, 2 and 3) Current track capacity is 6-7 train paths per day to Gunnedah 5,400 tonne trains give capacity of 11-12 Mtpa between Whitehaven and Ide
Slide 18: 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 Stage 1 capacity of 30 Mtpa
Slide 19: Port capacity may limit WHC growth rate
Port capacity may limit WHC growth rate 1. These estimates relate to planned future events and expectations and as such involve known and unknown risks and uncertainties. Please refer to Disclaimer Morgan Stanley Conference - May 5, 2009 18
Slide 20: Contents
Contents • A snapshot • Status of growth plans • Outlook • The merger with Gloucester Coal Morgan Stanley Conference - May 5, 2009 19
Slide 21: Coal market uncertainty
Coal market uncertainty Demand – Cyclical slowdown, but structural uptrend • Global demand for export coking coal remains very weak. Thermal coal is better, but weaker than six months ago • China currently importing much larger tonnages of Australian thermal coal, India following Supply – Infrastruc
Slide 22: Looking ahead: Whitehaven is well positioned
Looking ahead ► Challenging business environment ► Weaker coal demand, lower US$ coal prices, but a weaker A$ ► Continued port and rail congestion ► Increased “take” by NSW Government from higher royalty rates (+20%) ► Whitehaven is well positioned ► Large reserves of high quality coal ► Efficient m
Slide 23: Near and medium term objectives
Near and medium term objectives ► Continue to manage our existing OC operations efficiently ► Deliver Narrabri Stage 1 on time and budget ► Complete rail upgrade to Narrabri ► See NCIG Stage 1 delivered on time ► Active exploration within Gunnedah lease/EL areas ► Increase coal reserves and extend l
Slide 24: Merger with Gloucester Coal
Merger with Gloucester Coal ► Creation of a major Australian coal company with increased scale and enhanced financial strength ► Increased scale : market capitalisation, production, embedded growth potential, resources and reserves ► Enhanced financial strength: strong financial platform from which
Slide 25: Whitehaven Coal Limited: Delivering Growth
Whitehaven Coal Limited Delivering Growth Presentation to Morgan Stanley Conference May 5, 2009