Stanmore Resources Ltd · ASX:SMR
Stanmore Resources — Stanmore Coal — Investor Presentation (June 2010)
25 slides from Stanmore Resources's investor presentation, Jun 1, 2010
Slide 1: Investor Presentation June 2010
For personal use only Investor Presentation June 2010 Strictly confidential
Slide 2: Important notice
Important po ta t notice ot ce For personal use only This document has been prepared by Stanmore Coal Limited (“Stanmore Coal”) for the purpose of providing a company and technical overview to interested analysts/investors. Any statements, opinions, projections, forecasts or other material contained
Slide 3: Stanmore Coal Highlights
Stanmore Sta o e Coal Coa Highlights g g ts For personal use only Pure play coal company focused on world class regions • Diversified portfolio of coking, thermal and PCI coal targets with EPCs totalingg 1,080km , 2 in the Bowen and Surat Basins • Successful record in identifying, acquiring and prov
Slide 4: Close to export infrastructure
Stanmore Sta o e Coal Coa Highlights g g ts For personal use only Close to export infrastructure • Bowen Basin projects are close to rail lines to coal terminals at Gladstone and Dalrymple Bay • The Range project is well located f the for th upcoming i Surat S t Basin B i Rail link connecting to Gla
Slide 5: Key Metrics (ASX Code: SMR)
Stanmore Sta o e Coal Coa Highlights g g ts For personal use only Key Metrics (ASX Code: SMR) • Shares on issue: 93.2m • Fully underwritten IPO in Dec 2009 at 20c • Highest performing IPO in 2009 • C rrent share price1: 70c Current • Market Capitalisation: $65m • P iti 2: $4.7m C h Position Cash $4
Slide 6: Strong Board and Management Team
Strong St o g Board oa d and a d Management a age e t Team ea For personal use only Neville Sneddon (Chairman) Mining engineer with 37 years experience in coal, formerly CEO of Anglo Coal Australia, Chairman of DBCT and Director of PWCS Nick Jorss (Managing Director) 20 years in investment banking,
Slide 7: Strong Board and Management Team
Strong St o g Board oa d and a d Management a age e t Team ea For personal use only Andrew Martin (Director) 15+ years in investment banking, infrastructure & resource financing and M&A Vaughan Wishart (Operations Manager) 20 years in resource project development, study management, engineering and i
Slide 8: Projects Located In Prime Coal Areas
Projects ojects Located ocated In Prime e Coa Coal Areas eas For personal use only • Six projects in the Bowen Basin • Additional project pending grant in the Bowen Basin (Ten Mile Creek) • The Range project is well located for the Surat Basin Rail link • A number of other Bowen Basin EPCs under app
Slide 9: Mackenzie River Project - Bowen Basin
Mackenzie ac e e River e Project oject - Bowen o e Basin as For personal use only Targeting Open Pit Coking Coal • Targeting a significant deposit of open p p pit coking g coal • Ideally located on the existing railway line to Gladstone • 24km+ of strike (Burngrove Formation) • Adjacent to Aquila Re
Slide 10: Mackenzie River - Coking Coal Project Update
Mackenzie ac e e River e - Co Coking g Coal Coa For personal use only Project Update • Some 26 holes (incl 12 cored holes) completed in western section of project area targeting the Aquarius seam (Burngrove Formation) • Coking properties achieved with raw CSN values of up to 7.5 - awaiting washabili
Slide 11: Mackenzie River - Untapped Potential
Mackenzie ac e e River e -U Untapped tapped Potential ote t a For personal use only Geological Profile (vertical scale exaggerated) Exploration Potential • Vast 512 km2 total project area – very underexplored • Additional exploration planned targeting other coal seams which occur within project area
Slide 12: The Range Project - Surat Basin
The e Range a ge Project oject - Su Surat at Basin as For personal use only Emerging First Class Coal Deposit • Large open pit deposit of export quality thermal coal • JORC Inferred Resource of 208Mt (up from 117Mt in April) • I iti l quality Initial lit ttesting ti points i t tto a superior i expor
Slide 13: The Range - Open Pit Thermal Coal
The e Range a ge - Ope Open Pitt Thermal e a Coa Coal For personal use only • Taroom measures are well developed through project area • Seams subcrop in the east and dip gently (<1º) to the west • Depth to top of coal is sub 40m over the bulk of the identified resource • Average weathering depth of
Slide 14: The Range - Thick Coal Seams
The e Range a ge - Thick c Coal Coa Sea Seams s For personal use only • Average g net coal thickness 6.4m (maximum 9.0m) • At least seven open pit mineable seams/plies with average thickness of 0.84m • Additional shallow coal intersected to the east of modeled subcropp ((not yyet included) 14
Slide 15: The Range - Superior Coal Quality + Upside
The e Range a ge - Supe Superior o Coal Coa Qua Quality ty + Upside Ups de For personal use only • Initial washabilityy analysis y points to a low ash, high energy thermal coal with the following features1: 9 Yield: >80% 9 Ash: <8% 9 Caloric Value: >6,500 kcal/kg 9 Total Sulphur: 0.5% • Further dril
Slide 16: Emerald Project - Bowen Basin
Emerald e a d Project oject - Bowen o e Basin as For personal use only Export Quality Thermal Coal • Rangal Coal Measures projected to sub-crop through project area from 150m in depth • Exploration Target1 of 220 – 290 Mt of low to moderate ash export quality thermal coal (Independent Report – SRK C
Slide 17: Emerald - Key Parameters
Emerald e a d - Key ey Parameters a a ete s For personal use only • Prime target is the Aries Seam within the Rangal Coal Measures: 9 Seam thickness: 1.8m – 2.4m 9 Raw Ash: 8% - 12% • Additional target: German Creek Coal Measures from 280m depth (potential (pote t a for o coking co g properties) p o
Slide 18: New Cambria Project - Bowen Basin
New e Ca Cambria b a Project oject - Bowen o e Basin as For personal use only Targeting PCI Coal • Targeting low-volatile, low to medium ash PCI coal along g structural trend from Yarabee mine (Felix Resources) • Coal mined historically at adjoining Bl ff C Bluff Coall Fi Field ld with ith th the ff
Slide 19: Belview Project - Bowen Basin
Belview e e Project oject - Bowen o e Basin as For personal use only Targeting Hard Coking Coal • Potential for large deposit of underground prime coking coal • Target seams mined in nearby Cook Colliery and Leichhardt Colliery • Regional seam thickness of: 9 6m+ (Gemini Seam = Castor & Pollux coale
Slide 20: Kerlong Project - Bowen Basin
Kerlong e o g Project oject - Bowen o e Basin as For personal use only Targeting Coking/PCI Coal • Targeting high quality, underground coking and PCI coal • Target seams mined nearby including: 9 Burton (Peabody) 9 South Walker Creek (BMA) 9 Carborough Downs (Vale) 9 Coppabella (Macarthur Coal) • Se
Slide 21: Key Project Summary
Key ey Project oject Su Summary ay For personal use only Project Basin Mining Target Size Linked to Method Coal Coal Port? Mackenzie Bowen Open Pit Coking 110 – 170 Mt Initial Expl Target1 9 River The Range Surat Open Pit Export 208 Mt JORC Inferred2 Planned Thermal SBR Link Emerald Bowen Undergroun
Slide 22: Stanmore Coal - Production Focus
Stanmore Sta o e Coal Coa - Production oduct o Focus ocus For personal use only High Quality Coal Assets and Experienced Team • Strong track record of key team members for driving coal and other resources projects into production • Portfolio of high quality projects typically near infrastructure • S
Slide 23: Comparables - Coal Sector
Comparables Co pa ab es - Coa Coal Sector Secto For personal use only • Potential for Market Capitalisation (A$m) 4,000 substantial value 3,500 Producers Explorer / Developers creation as 3 000 3,000 2,500 Stanmore Coal 2,000 moves from 1,500 1,000 exploration phase 500 through project ‐ development
Slide 24: Comparables - Coal Juniors
Comparables Co pa ab es – Coa Coal Ju Juniors os For personal use only M k t Capitalisation Market C it li ti ‐ Juniors J i (A$m) (A$ ) 300 250 200 150 100 50 ‐ Cockatoo Bandanna Northern Nucoal Stanmore Endocoal Metrocoal Coal Energy Energy Coal Source: ASX data 28/5/10 24
Slide 25: Summary
Su Summary ay For personal use only 9 High quality portfolio of coking, thermal and PCI coal exploration projects 9 Bowen Basin focus with one high quality Surat Basin project 9 Close to infrastructure 9 Experienced Board and management 9 Growth focused company 9 The Rangeg – JORC Inferred Resource