Greenx Metals Limited · ASX:GRX
Greenx Metals — Prairie Mining — Investor Presentation (March 2017)
29 slides from Greenx Metals's investor presentation, March 2017
Slide 1: Debiensko Scoping Study Highlights
DEBIENSKO SCOPING STUDY HIGHLIGHTS MARCH 2017 ASX / LSE / WSE: PDZ ABN: 23 008 667 852
Slide 2: Disclaimers
DISCLAIMERS Important Information This presentation has been prepared as a summary only, and does not contain all information about Prairie Mining Limited’s (“Prairie”) assets and liabilities, financial position and performance, profits and losses, prospects, and the rights and liabilities attaching
Slide 3: Restart Potential for Debiensko Mine: Large Scale, Lowest Cost, Long Life
RESTART POTENTIAL FOR DEBIENSKO MINE TO BE A LARGE SCALE, LOWEST COST AND LONG LIFE PREMIUM HARD COKING COAL SUPPLIER Steady State Hard Coking Coal Annual Production: 2.6Mtpa Average Operating Costs: US$47/t Pre-tax NPV (8%): US$1.50Bn Mine Life: 26 Years Total Capex (incl. Contingencies): US$504m 3
Slide 4: Debiensko – A Fully Permitted "Mine Ready" Project
DEBIENSKO – A FULLY PERMITTED “MINE READY” PROJECT 1 Environmental Consents and a Mining Concession are already in place 4
Slide 5: Debiensko – A Fully Permitted "Mine Ready" Project
DEBIENSKO – A FULLY PERMITTED “MINE READY” PROJECT 1 Existing shafts on site at Debiensko Rail yard next to Debiensko Established on-site facilities Fully fitted and ready office buildings 5
Slide 6: Globally Significant Project
GLOBALLY SIGNIFICANT PROJECT 2.6 Mtpa HCC Production from a JORC Resource of 301 Mt Saleable Tonnes HCC (Mt) 3.0 2.5 2.0 65Mt saleable 1.5 HCC produced 1.0 over 26 years Indicated 0.5 93Mt 0.0 Inferred Yr 1 Yr 3 Yr 5 Yr 7 Yr 9 Yr 11 Yr 13 Yr 15 Yr 17 Yr 19 Yr 21 Yr 23 Yr 25 208Mt Potential Resource
Slide 7: Strong Cash Margins with US$47/t Cash Cost
STRONG CASH MARGINS WITH US$47/T FOR CASH COST Extremely Low Cash Costs Provide Profitability Throughout the Cycle Annual 160.00 15.00 (16.24) EBITDA: 142.00 (8.00) US$282m 140.00 (6.14) (6.70) (4.64) 120.00 (4.44) (0.70) 110.14 US$/t Steady State 100.00 LOM Free 80.00 Cash Flow: Average annual tota
Slide 8: Lowest Delivered Cost Supplier of Hard Coking Coal into Central Europe
LOWEST DELIVERED COST SUPPLIER OF HARD COKING COAL INTO CENTRAL EUROPE Hard Coking Coal Cost Curve – Delivered to Central Europe 175 Debiensko* Australia Russia North America 150 Poland and Czech Others 125 Business Costs** (US$/t) Debiensko total delivered cost to Zdzieszowice 100 75 50 25 0 0 25 5
Slide 9: Access to Well Established Existing Infrastructure at Site
ACCESS TO WELL ESTABLISHED EXISTING INFRASTRUCTURE AT SITE Rail Public Roads 9
Slide 10: Low Capital Intensity
LOW CAPITAL INTENSITY Debiensko has Extremely Low Capital Intensity Compared to other Global Projects Total Capex Breakdown Debiensko Capital Intensity vs. Recently Built Hard Coking Coal Mines Capital Intensity (US$/t Saleable Production Capacity) 0 100 200 300 400 500 600 700 Caval Ridge $79.5 5.5
Slide 11: High Quality Premium Hard Coking Coal
HIGH QUALITY PREMIUM HARD COKING COAL Hard Coking Coal quality comparable to that produced by the large diversified miners • Debiensko has attractive Debiensko’s Premium Hard Coking Coal vs. Select Products coal quality parameters, within all seams 100 • Two products can be Prime Hard produced: Mid-
Slide 12: Highly Favourable Regional Market Fundamentals
HIGHLY FAVOURABLE REGIONAL MARKET FUNDAMENTALS EC has determined Coking Coal to be 2nd most Economically Important Critical Raw Material Potential Debiensko Market Share based on Scoping Study production of 2.6Mtpa Zdzieszowice 40.2Mt Imported 7.0Mt Domestic 12 Source: CRU
Slide 13: Transport Advantage of Being a Regional Producer
TRANSPORT ADVANTAGE OF BEING A REGIONAL PRODUCER Debiensko could deliver hard coking coal to the Zdzieszowice Coke Plant in Poland in 1 day and at a delivery cost of: ~US$4.60 per tonne Indicative Time and Cost of Delivery of HCC to Zdzieszowice Coke Plant Debiensko 1 Day US$4.60/t Queensland (Austr
Slide 14: Transport Advantage Leads to Higher Netback Premium Prices
TRANSPORT ADVANTAGE LEADS TO HIGHER NETBACK PREMIUM PRICES Debiensko’s Potential Netback Premium Pricing over imported Hard Debiensko 3.00 1.60 US$4.60 Coking Coal would average $15+/t Queensland 18.20 6.00 11.90 1.60 US$37.70 Origin Mobile 14.00 6.00 11.90 1.60 US$33.50 Murmansk 6.70 6.00 11.90 1.6
Slide 15: Next Steps at Debiensko
NEXT STEPS AT DEBIENSKO JORC Revised Focused Debiensko Coal Quality Maiden Scoping JORC Feasibility Infill Drill Mine Assessment Resource Study Resource Studies Program Restart Estimate Estimate Q1 2017 REST OF 2017 • Since acquiring Debiensko in October 2016, Prairie has: 2018 ONWARDS - Confirmed p
Slide 16: Debiensko – A Tier 1 Hard Coking Coal Development Project
DEBIENSKO – A TIER 1 HARD COKING COAL DEVELOPMENT PROJECT LARGE SCALE, LONG LIFE PREMIUM HARD COKING COAL ASSET FULLY PERMITTED WITH EXISTING INFRASTRUCTURE 1 ONE OF THE LOWEST POSITIONS ON THE COST CURVE LOW CAPITAL INTENSITY HIGHLY FAVOURABLE REGIONAL MARKET DYNAMICS GLOBALLY SIGNIFICANT ASSET – P
Slide 17: Jan Karski Mine
JAN KARSKI MINE Bankable Feasibility Study Continues
Slide 18: Jan Karski Mine – World Class Potential
JAN KARSKI MINE – WORLD CLASS POTENTIAL An advanced, world class semi-soft coking coal project in a proven coal basin located close to existing infrastructure 18
Slide 19: Jan Karski Mine – Key PFS Results
JAN KARSKI MINE – KEY PFS RESULTS Jan Karski Mine - JORC Coal Resource & Reserve Estimates (Mt)* The Jan Karski Mine is positioned to become the lowest cost supplier of coal into key regional European target markets Indicated Resources 352 Inferred Resources 376 Total JORC Resource 728 Probable Reco
Slide 20: Jan Karski Mine – China Coal Strategic Co-operation Agreement
JAN KARSKI MINE – CHINA COAL STRATEGIC CO-OPERATION AGREEMENT In November 2016, Prairie and China Coal entered into a financing and construction co-operation agreement for the Jan Karski Mine Jan Karski is Significantly De-risked Prairie teams up with World-Leading Partner Poland is a key “One Belt
Slide 21: Next Steps at Jan Karski
NEXT STEPS AT JAN KARSKI Enhanced Bulk Power Finalise Full “wrap Jan Karski Coking Coal Supply Chinese BFS Funding around” Infill Drilling Mine Quality Connection Complete Package EPC Construction Testwork Works and Offtake Contract Q1 2017 REST OF 2017 2018 ONWARDS 21
Slide 22: Corporate Snapshot
CORPORATE SNAPSHOT 22
Slide 23: Strong Cash Position and Strategic Funding Partner
STRONG CASH POSITION AND STRATEGIC FUNDING PARTNER Prairie is well funded with a strong balance sheet and strategic funding partner • ASX, LSE and WSE listed Capital Structure • Prairie, through its subsidiary PDZ Current Issued Share Capital 152 million Holdings, concluded an Investment Agreement w
Slide 24: Executive Team
EXECUTIVE TEAM Mr. Ben Stoikovich, Chief Executive Officer • Mr. Stoikovich is a mining engineer and professional corporate finance Board of Directors executive • He has extensive experience in the resources sector gained from a career firstly as a Mining Engineer with BHP Billiton where he was resp
Slide 25: Appendix
APPENDIX 25
Slide 26: Mid-Vol Product
MID-VOL PRODUCT Debiensko Mid-vol HCC comparable to Australian Goonyella brand and medium volatile coals produced in Poland today by JSW Debiensko Medium Volatile Matter Hard Coking Coal Comparison to International Benchmarks Debiensko* Goonyella Oaky Creek Elkview Tuhup Pittston Borynia-JSW Pniowek
Slide 27: Low-Vol Product
LOW-VOL PRODUCT Debiensko’s Low-vol HCC is similar to other internationally traded low volatile matter hard coking coals, including brands such as Peak Downs (BHP Billiton Mitsubishi Alliance – BMA) and Hail Creek (Rio Tinto) Debiensko Low Volatile Matter Hard Coking Coal Comparison to International
Slide 28: Competent Persons Statements
COMPETENT PERSONS STATEMENTS Competent Persons Statements – Debiensko Hard Coking Coal Project The information in this presentation that relates to Mining, Coal Preparation, Infrastructure, Production Targets and Cost Estimation was extracted from Prairie’s announcement dated 16 March 2017 entitled
Slide 29: Competent Persons Statements
COMPETENT PERSONS STATEMENTS Competent Persons Statements – Jan Karski Mine The information in this presentation that relates to the Exploration Results, Coal Resources, Coal Reserves, Mining, Coal Preparation, Infrastructure, Production Targets and Cost Estimation was extracted from Prairie’s annou