Stanmore Resources Ltd · ASX:SMR
Stanmore Resources — Stanmore Coal — Investor Presentation (February 2011)
30 slides from Stanmore Resources's investor presentation, Jan 31, 2011
Slide 1: Investor Presentation February 2011
For personal use only IInvestor t Presentation P t ti February 2011 October 2010
Slide 2: Important notice
Important notice 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. None of Stanmore Coal, nor any of its related bodies corporate, their respective directors
Slide 3: Stanmore Coal Highlights
Stanmore Coal Highlights For personal use only • Pure play coal company focused on world class coal regions – Portfolio of coking, thermal and PCI coal targets (all 100% owned) • 2 development projects (The Range and Mackenzie River) • 5 exploration projects (Kerlong, (Kerlong Emerald Emerald, Belvi
Slide 4: Stanmore Coal Highlights: Key Metrics and Shareholders
Stanmore Coal Highlights For personal use only • Key K Metrics M ti Shareholders – ASX Code: SMR – Shares on issue: 124m – Current share price1: A$1 28 A$1.28 St Lucia (Jorss, (Jorss Retail, Private Martin, – Market Capitalisation1: A$159m and Other Wishart) (a) – Cash Position2: >A$25m (no debt) 48
Slide 5: Strong Board and Management Team
Strong Board and Management Team For personal use only Neville ill Sneddon S dd SStephen h Bizzell i ll Chairman Director Mining engineer with 37 years Extensive experience in experience in coal, formerly CEO of commercialising resources Anglo Coal Australia, Chairman of companies; former executive
Slide 6: Strong Board and Management Team
Strong Board and Management Team For personal use only Andrew Martin Tim Jones Director Exploration Manager 15+ yyears in investment banking, g, SSenior i geologist l i t with ith 15 years infrastructure & resource financing experience in the Bowen Basin and M&A Vaughan Wishart Duncan Cornish Manage
Slide 7: Exposed to high growth markets
Exposed to high growth markets For personal use only • Strong outlook for our key markets – Metallurgical coal will see strong demand within Asia increasing its share of seaborne trade from 63% in 2008 to 72% in 2025. Global demand is expect to increase by > 8% from 2008 – 2012.1 – Thermal h l coall
Slide 8: Strong performance – One year return
Strong performance – One year return For personal use only $1.60 $1.50 Capital raising $1.40 $1 30 $1.30 Mackenzie River $1.20 Inferred Resource2 $1.10 Drilling recommences Initial Inferred MLA for at The Range and Resource1 at The Range $1.00 Mackenzie River The Range Upgrade at Concept study $0.90
Slide 9: Significant resource upgrades
Significant resource upgrades For personal use only • More than 400% increase over original IPO target at The Range Inferred Resources (mt) 250 – 3 phases of drilling completed costing approximately $1.1m 200 150 • 99mt at Mackenzie River Thermal Coking 100 with a further exploration t target t off
Slide 10: Prime locations
Prime locations For personal use only • Prime Coal Areas – Six projects in the Bowen Basin – One project in the Surat Basin which hosts export quality thermal coal with applications under consideration for a Mining Lease and Environmental Authority – A number of other Bowen Basin EPCs under applicat
Slide 11: Mackenzie River Project - Bowen Basin (100% owned)
Mackenzie River Project ‐ Bowen Basin (100% owned) For personal use only • Open Pit Coking Coal – 99Mt JORC Inferred Resource – Exploration target1 of an additional 70 to 80Mt – Located on existing railway line to coal ports at Gladstone – 25km of strike (Burngrove Formation) – Adjacent to Aquila Re
Slide 12: Mackenzie River - Coking Coal
Mackenzie River ‐ Coking Coal For personal use only • Aquarius q Seam – Average coal thickness 2.2m (max Aquarius Washability (Fl 1.50 adb) 3.4m) Coking Properties – Coal depth: 19m – 100m (cut off) CSN ((ave)) 60 6.0 – Dips at 2°to west CSN (max) 8.0 – Good coking properties Energy – Exploring a tw
Slide 13: Mackenzie River Project – Infrastructure
Mackenzie River Project – Infrastructure For personal use only • Port Access – Participating in Wiggins Island Coal Terminal (WICET) Gladstone ‐ Stage II planned expansion p p ((2015)) – Bank guarantee lodged in support of 2 mtpa application at WICET (7 mtpa total including The Range) – Approximatel
Slide 14: Mackenzie River – Path to Production
Mackenzie River – Path to Production For personal use only MACKENZIE RIVER 2010 2011 2012 2013 2014 2015 INDICATIVE DEVELOPMENT PLAN* Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Item ACTIVITY Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun 1 ML application 2 Environment
Slide 15: The Range Project – Surat Basin (100% owned)
The Range Project – Surat Basin (100% owned) For personal use only • Export Quality Thermal Coal – Application submitted for Mining Lease and Environmental Approvals – 219Mt JORC Inferred Resource – Open pit mine planned producing 5Mtpa of high energy thermal from Q1 2015 – Conceptual Mining Study c
Slide 16: The Range Project – Export Thermal Coal
The Range Project – Export Thermal Coal For personal use only • Key Coal Parameters Product 10% ash 12% ash – Average total coal thickness Quality option option 6.1m ((max 9.0m)) (adb) – Coal depth: 9m – 100m; and Energy continues at depth kcal/kg 6,470 6,280 – Dips at 1° 1 to west Btu/lb 11,650 11,
Slide 17: The Range Project – Mining Study Results
The Range Project – Mining Study Results For personal use only • Cost Estimates Owner/ Operator Low Capex Contract 12% Product Ash Case Option Mining Option Development Capital Cost A$502m A$299m Operating Costs Free on Rail (FOR) per product tonne A$46 Free on Board (FOB1.) per shipped tonne A$78 •
Slide 18: The Range Project – Mining Plans
The Range Project – Mining Plans For personal use only – Three options for Coal Handling and Prep Plant (CHPP) location – 27km haul road to Surat Basin rail link – Twin pits mined in parallel – 18 year mine life 18
Slide 19: The Range Project – Proposed Flowsheet
The Range Project – Proposed Flowsheet For personal use only 19
Slide 20: The Range Project – Infrastructure
The Range Project – Infrastructure For personal use only • Port Access – Participating in Wiggins Island Coal Terminal (WICET) Gladstone ‐ Stage II planned expansion p p ((2015)) – Bank guarantee lodged in support of 5mtpa application at WICET (7mpta total including Mackenzie River) – Approximately
Slide 21: The Range Project – First Coal Targeted for Q1 2015
The Range Project – First Coal Targeted for Q1 2015 For personal use only THE RANGE 2010 2011 2012 2013 2014 2015 DEVELOPMENT PLAN* ‐ OVERVIEW Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 It Item ACTIVITY S Sep D Dec M Mar J Jun S Sep D Dec M Mar J Jun S Sep D Dec M Mar J Jun S Sep D Dec M Mar J Jun S
Slide 22: Funding options
Funding options For personal use only Project j Funding di Required i d Funding di Options O i The Range $300 ‐ $500m with major • Sale of minority funding required from interest 2013 • Farm out • Cash on hand • Contract mining • Project finance • Equity raising • Pre‐payment of customer contracts M
Slide 23: Emerald Project – Bowen Basin (100% owned)
Emerald Project – Bowen Basin (100% owned) For personal use only • Targeting Underground Metallurgical and Export 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 (8 – 12% raw) export qualit
Slide 24: New Cambria Project - Bowen Basin (100% owned)
New Cambria Project ‐ Bowen Basin (100% owned) For personal use only • Targeting low‐volatile low volatile PCI Coal – Targeting low‐volatile, low to medium ash PCI coal along structural trend from Yarabee mine (Felix Resources) – High energy (7,200+ kcal/kg) coal mined historically at adjoining Exce
Slide 25: Belview Project - Bowen Basin (100% owned)
Belview Project ‐ Bowen Basin (100% owned) For personal use only • Targeting Underground Hard Coking Coal – Potential for significant deposit of underground prime coking coal – Target seams mined in nearby Cook Colliery and Leichhardt Colliery – Regional seam thickness of: • 6m+ (Gemini Seam = Casto
Slide 26: Kerlong Project - Bowen Basin (100% owned)
Kerlong Project ‐ Bowen Basin (100% owned) For personal use only • Targeting Underground Coking/PCI Coal – Targeting high quality, underground coking and PCI coal – Target seams mined nearby including: • Burton (Peabody) ( y) • South Walker Creek (BHP Mitsubishi) • Carborough Downs (Vale) • Coppabel
Slide 27: Key Project Summary (all 100% owned)
Key Project Summary (all 100% owned) For personal use only P j t Project B i Basin Mi i M Mining Method th d T Target tCCoall Si Size Railil Li R Linkk to Coal Port Mackenzie Bowen Open p Pit Cokingg 99Mt JORC Inferred 9 River Resource2 plus 70 –80Mt Initial Exploration Target1. The Range Surat Open
Slide 28: Key milestones – next months
Key milestones – next 12 months For personal use only Q1 2011 Q2 2011 Q3 2011 Q4 2011 2015 • Resource • Conceptual • Scout drilling • Pre-feasibility • First coal upgrade mining study Belview study at The production M k Mackenzie i M k Mackenziei • Scout drilling R Range f from both b th Th The Rive
Slide 29: ASX Listed Comparables – Coal Sector
ASX Listed Comparables – Coal Sector For personal use only Market Capitalisation (A$m) 4,500 The path for value 4,000 Producers Explorer / Developers 3 500 3,500 creation as Stanmore 3,000 Coal moves through 2,500 project development 2,000 t towards d production d ti iis 1,500 well established 1,000
Slide 30: Summary
Summary For personal use only • Pure play coal company focused on world class coal regions • Two development projects with JORC Inferred Resource of 318Mt coking and export thermal coal • Five Bowen Basin exploration projects, predominantly coking coal • Current exploration target of 290 – 370Mt1 •
Stanmore Coal — Investor Presentation (February 2011) on 6ix