Slide 1: GCM Resources plc
GCM Resources plc December 2016
Slide 2: Disclaimer
Disclaimer The content of this document has not been approved by an authorised purpose of engaging in an investment activity may expose you to a significant risk person within the meaning of the Financial Services and Markets Act 2000. of losing all the property invested. Accordingly, neither the Co
Slide 3: Directors & Senior Management
Directors & Senior Management Datuk Michael Tang PJN Nik Raof Daud (Executive Chairman) (Non-executive Director) – Significant corporate and financial experience in the natural – Over 30 years experience in technical and corporate roles at resource, power generation, manufacturing and real estate se
Slide 4: Phulbari is a world class deposit
Phulbari is a world class deposit Large reserves of coal (thermal and semi-soft coking coal) and by-products – 572 million tonnes JORC compliant resource – Resource open to the north and south Open cast operations using well-tested techniques – Coal measures at 165-270 metres below the surface –
Slide 5: Phulbari Coal Project
Phulbari Coal Project Coal transport via rail and barge to other PHULBARI Government/IPP power plants Jamuna Bridge Ishurdi Hardinge Bridge Gazipur Dhaka Chandpur Khulna Chittagong 5
Slide 6: Cross-section
Cross-section AENS1 AEN1S AENI7 P i ee | & 4 &§ 2 8 3 8 5 bd LEGEND (RE mapHupur cLay (i: upPeR DUP? TILA HE LOWER DUP! TILA SAND Gy LOWER DUP! TILA (9) PeRMAN-WeATHERED ‘/M.-: PERMIAN FRESH SANDSTONE MB coat ME inTERBURDEN/PERMIAN ©
Slide 7: Mine Plan – Year 1
Mine Plan – Year 1 PHULBARI TOWN New Town Area New Village Sites 35-year Mine Existing Villages for 20,000 people Footprint 7
Slide 8: Mine Plan – Year 20
Mine Plan – Year 20 Backfilled mine Land Rehabilitated Returned to agriculture 8
Slide 9: Phulbari Coal and Power Timeline
Phulbari Coal and Power Timeline Year 1 Year 2/3 Year 4 to 35+ Preparation Overburden removal Overburden removal Approvals Coal Handling Plant Ramp-up to 15+ Mtpa Land acquisition & site construction Years 3-8 construction Continued Land Acquisition 30+ years production Equipment order
Slide 10: JORC Resource Statement
JORC Resource Statement Upper Seam Main Seam Lower Seam Base Seam Total Mt Mt Mt Mt Mt Measured 51 237 - - 288 Indicated 62 124 39 19 244 Inferred 12 28 - - 40 Total 125 389 39 19 572 Notes: Results based on Geological Model submitted in July 2005 Table compiled from data contained in Phulbari C
Slide 11: Phulbari High Quality Thermal Coal
Phulbari High Quality Thermal Coal Typical Specification Market Preference Phulbari Hunter Valley Specific energy >6300 6930 6800 (gross Kcal/kg) Total moisture <15.0 8.5 9.0 (% as received) Ash (%) <16.0 12.0 13.5 Fixed carbon (%) >45.0 54.2 50.5 Sulphur (%) <1.0 0.80 0.55 11
Slide 12: Phulbari Low Ash Metallurgical Coal
Phulbari Low Ash Metallurgical Coal Typical Specification Market Preference Phulbari Hunter Valley Specific energy >6800 7420 7200 (gross Kcal/kg) Total moisture <12.0 10.0 9.0 (% as received) Ash (%) <11.0 6.8 9.5 Fixed carbon (%) >50.0 56.7 54.2 Sulphur (%) <1.0 0.75 0.55 12
Slide 13: Coal Sales by Type
Coal Sales by Type 18 16 Semi-soft coking 14 coal 12 Coal Production Mtonnes/year Domestic industrial thermal 10 coal 8 6 High quality thermal coal 4 2 0 0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32 34 13
Slide 14: Valuable Co-products
Valuable Co-products Construction Sand Kaolin – China Clay Ceramics Clay Bricks and Pottery Gravel/Boulders/ Construction Rock Construction Sand Aggregate Water also a co-product Silica Sand Glass Hard Rock - Sandstone Construction Hard Rock - Tillite Rock Hard Rock - Granite 14
Slide 15: Known Bangladesh Coal Areas
Known Bangladesh Coal Areas DEPOSIT DRILLING DEPTH RESOURCE DISCOVERY STATUS (holes) (M) (Mt) Barapukuria 33 120-510 390 1985 - GSB Mining • 6 seams • 1991: Feasibility • Underground mine • Main seam average study production October thickness 36m • 1994: BCMCL M/L 2005 (1Mtpa) Phulbari 124 150-270 5
Slide 16: Current Commercial Energy Sector
Current Commercial Energy Sector Currently highly dependent on gas & liquid fuels Generation Capacity as at Oct 2016 Proven recoverable reserves of gas: (by fuel type) – Not sufficient to support required growth – Prospectivity high but development of new field typically takes 10+ years Coal i
Slide 17: Environmental and Social
Environmental and Social ESIA to International Standards – Project Environment Clearance granted Environmental Studies: – Air, noise and water quality – Biodiversity Water Studies: – Groundwater extraction & distribution – Flooding Social Impact Assessment: – Socio-Demographic surveys – Publ
Slide 18: Benefits
Benefits Energy security: – Major step to solve energy and power crisis – 3 years to first coal, 4 years to first power – Reliable large scale energy supplier for over 35 years Huge economic impact*: – US$21 billion contribution to GDP over project life – Overall effect estimated at approx 1% of
Slide 19: Benefits - Regional Development
Benefits - Regional Development Modern planned new town and villages – Improved power, water supply and sanitation, education and medical facilities Improved rail, roads, port and communications infrastructure Business development opportunities Schools Mosques Health centres Bazaars 19
Slide 20: Benefits - Employment and training
Benefits - Employment and training Estimated 17,000 new jobs (direct and indirect) Thousands more jobs created in industries enabled by: – Power generation – Improved regional infrastructure and co-products Preferential employment to maximise benefits for local community Workforce will be pr
Slide 21: Benefits
Benefits Enormous associated benefits: – Improved regional infrastructure – Major business development and employment opportunities – Valuable mine co-products give industrial opportunities: • China clay for ceramics • Silica sand for glass • Bottled water • Aggregate materials for construction in
Slide 22: Phulbari Summary
Phulbari Summary Landmark Foreign Investment for Bangladesh Large low cost coal operation Energy security for Bangladesh Environment and Social Issues manageable 22