Slide 1: Dec 16 Quarterly Presentation
For personal use only DEC 16 QUARTERLY PRESENTATION 30 January 2017
Slide 2: Important Information
IMPORTANT INFORMATION For personal use only This document has been prepared by Coal shares and has been prepared Indications of, and guidance on, future will not in any way rely upon this Stanmore Coal Limited (“Stanmore without taking into account the earnings and financial position and document. C
Slide 3: Overview of Stanmore Coal
OVERVIEW OF STANMORE COAL For personal use only Queensland based coal Advanced metallurgical Highly experienced Board Actively pursuing further development company, and thermal coal and management team opportunities in the operations at Isaac Plains development projects in with proven track record o
Slide 4: The Business at a Glance
THE BUSINESS AT A GLANCE For personal use only 1 2 3 4 Independent coal company Isaac Plains operational Isaac Plains represents the Multiple acquisition targets with focus on coking coal with ramp-up achieved Company’s platform asset and internal projects for Stanmore to capitalise on 1–2Mtpa sales
Slide 5: Overview: Stanmore Portfolio
OVERVIEW STANMORE PORTFOLIO BOWEN BASIN – For personal use only Coking Coal ISAAC PLAINS – 100% MACKENZIE – 95% Operations Exploration ISAAC PLAINS EAST – 100% Development SURAT BASIN – Thermal Coal THE RANGE – 100% BELVIEW – 100% Development (pending Exploration infrastructure) LILYVALE – 85% CLIFF
Slide 6: Strategic Objectives FY17 and Forward
STRATEGIC OBJECTIVES FY17 AND FORWARD For personal use only Time horizon Internal External Short • Establish reliability and repeatability of • Assess potential assets in proximity to production from Isaac Plains IP Complex • Drive for value from complex via cost In place per tonne Medium • Develop
Slide 7: Isaac Plains Update
For personal use only ISAAC PLAINS UPDATE
Slide 8: Safety: TRIFR below industry average
SAFETY TRIFR below industry average For personal use only • During the December quarter, there was one injury (TRI) at the Isaac Plains Mining Complex, with no other injuries recorded across other projects and tenements • The Total Reportable Injury Frequency Rate (TRIFR) at quarter end is 12.34 per
Slide 9: Revised Mine Plan: Progress Against the Plan
REVISED MINE PLAN PROGRESS AGAINST THE PLAN For personal use only • In December 2016 the Company announced a Prime strip ratio capital raising for A$15 million (pre costs) to invest 20 in both pre-strip advancement and coal inventory, 16 based on a Revised Mine Plan (RMP) 12 • The RMP includes accel
Slide 10: Operating Results: Mine Physicals & Costs
OPERATING RESULTS MINE PHYSICALS & COSTS Prime waste overburden (bcm) Product tonnes produced For personal use only 7,000 350 6,000 300 5,000 250 4,000 200 k tonnes kbcm 3,000 150 2,000 100 1,000 50 - - Q4 FY16 Q1 FY17 Q2 FY17 2H FY17 LOM Q4 FY16 Q1 FY17 Q2 FY17 2H FY17 LOM Actual Actual Actual Aver
Slide 11: Quarterly Coking Coal Pricing: Flow Through of Contract Pricing
QUARTERLY COKING COAL PRICING FLOW THROUGH OF CONTRACT PRICING For personal use only December Quarter March Quarter (accounting basis, actual) (accounting basis, estimate) • The March quarterly 3Q17 benchmark Average price US$95.2/tonne, accounting basis Tonnes = 224kt semi-soft, 40kt thermal semi-s
Slide 12: Dec Quarterly Cash Flow
DEC 16 QUARTERLY CASH FLOW CASH COSTS HIGHER AS A RESULT OF PRIOR PERIOD STRIP RATIO For personal use only A high level analysis of the cash flows (AUD millions) during the quarter is presented below: Opening Cash Balance – 1 October 2016 14.0 The geology and forward mine physicals in 2HFY17 results
Slide 13: Coal Market
COAL MARKET RETURN TO MORE STABLE INVESTMENT LEVELS IN MEDIUM TERM For personal use only • Coking and thermal spot markets 340 trending down since November 2016 320 • Weakness in volumes remain, 300 relating to the new year period and 280 caution from both buyers and sellers 260 in the lead up to co
Slide 14: Projects Update
For personal use only PROJECTS UPDATE
Slide 15: Isaac Plains East: Indicative Timetable to Production
ISAAC PLAINS EAST INDICATIVE TIMETABLE TO PRODUCTION (FINANCIAL YEAR BASIS) For personal use only Q1 FY17 Q2 FY17 Q3 FY17 Q4 FY17 Q1 FY18 Q2 FY18 Q3 FY18 Q4 FY18 EA Amendment Public notification Potential first and ML period coal at Isaac Applications lodged Plains East Resolution of key Potential g
Slide 16: Isaac Plains Underground: Indicative Timetable to Investment Decision
ISAAC PLAINS UNDERGROUND INDICATIVE TIMETABLE TO INVESTMENT DECISION (FINANCIAL YEAR BASIS) For personal use only Q1 FY17 Q2 FY17 Q3 FY17 Q4 FY17 Q1 FY18 Q2 FY18 Q3 FY18 Q4 FY18 Exploration Target Investment planning and decision project scheduling Feasibility focusing on optimal bord & pillar techn
Slide 17: Background
For personal use only Background
Slide 18: Isaac Plains Coking Coal Mine: Transaction Recap
ISAAC PLAINS COKING COAL MINE TRANSACTION RECAP For personal use only ACQUISITION OF ESTABLISHED TRANSACTION MET COAL MINE OVER $350M REPLACMENT VALUE OF AQUIRED ASSETS COMPLETED Existing open-cut operation Dragline - Bucyrus BE1370 commenced production in 2006 November Located near Moranbah in 500t
Slide 19: Isaac Plains Complex: Significant Synergies & Mine Life Options
ISAAC PLAINS COMPLEX SIGNIFICANT SYNERGIES & MINE LIFE OPTIONS For personal use only Opportunities to utilise Isaac Plains infrastructure including underutilised CHPP and rail loop CURRENT ISAAC PLAINS OPEN CUT Current 3 year mining services contract producing coal ISAAC PLAINS EAST – OPEN CUT EXTEN