Stanmore Resources Ltd · ASX:SMR
Stanmore Resources — Stanmore Coal — Wilsons Rapid Insights Conference 2019
22 slides from Stanmore Resources's conference presentation, May 30, 2019
Slide 1: Wilsons Rapid Insights Conference
For personal use only Wilsons Rapid Insights Conference 30 MAY 2019 0
Slide 2: Important information
Important information For personal use only This document has been prepared by Stanmore situation and needs and seek appropriate Forward looking statements including Coal Limited (“Stanmore Coal”) for the purpose advice, including financial, legal and taxation projections, guidance on future earning
Slide 3: Stanmore Coal Overview - Certainty
Stanmore Coal Overview - Certainty For personal use only ASX CODE SHARE PRICE Independent Australian coal company Positioned predominantly in metallurgical coal with a track SMR A$1.461 record of delivery SHARES MARKET CAP 252,827,518 $374m1 1. AS AT 28 May ‘19 Isaac Plains Complex expansion operati
Slide 4: Overview of Stanmore Operations and Projects
Overview of Stanmore logistics For personal use only Operations and Projects BOWEN Foundations in Metallurgical Coal ABBOT POINT THIS • Isaac Plains Complex (IPC) operational with MAP a capacity of 3.5Mt ROM1 (approx. 2.4Mt TOWNSVILLE product) ROCKHAMPTON • IPC Marketable Reserves of 37Mt 2 MACKAY B
Slide 5: Isaac Plains Complex – Value accretive leverage
Isaac PlainsComplex – Value accretive leverage For personal use only Legend Drainage Major roads ML 700019 Minor roads Railway ROM Stanmore ML Stanmore MDL ISAAC PLAINS Stanmore EPC ML 70342 EAST MINE ML 700018 ISAAC PLAINS MINE ML 700017 ML 700016 Operations Development / Projects • Isaac Plains op
Slide 6: Overview – Stanmore customer base
Overview – Stanmore customer base For personal use only Diverse Blue Chip Customer Base Leveraged to metallurgical coal • Approximately 50% contracted into Japan / Korea • Valuable market / customer EUROPE diversity expanding into Europe and India KOREA • Thermal by-product JAPAN CHINA INDIA S.E ASI
Slide 7: Certainty in strategy
Certainty in strategy THE COMBINED EFFECT For personal use only PROJECT / INVESTMENT PIPELINE – SOURCE ROM COAL PIPELINE WITH DISCIPLINE COAL QUALITY | COST STRUCTURE | STRIP RATIO Isaac Plains Complex Regional Coal Hub Emerging Integrated 2.0Mt 2.4Mt Coal Company 2.4Mt 5.0Mt Saleable Production Sal
Slide 8: Certainty with the combination
Certainty with the combination For personal use only SOURCE ROM COAL PIPELINE WITH DISCIPLINE Near term Mid term 3.5Mt ROM UP TO 7.0Mt ROM COAL +15 years COAL +20years SOURCES LIFE SOURCES LIFE PIPELINE / CAPACITY SECURED INCREMENTAL CAPACITY • Isaac Plains AVAILABLE • Isaac Plains East • Isaac Plai
Slide 9: Operations Performance
For personal use only Operations Performance
Slide 10: Continuing Strong Operational Performance and Run Rates Pushing Infrastructure Capacities
Continuing Strong Operational Performance and Run Rates Pushing Infrastructure Capacities For personal use only The performance is driving FY19 guidance of 2.3Mt production, A$88 FOB unit costs (ex - state royalty) and underlying EBITDA2 of A$140 – A$155m ACHIEVED ON TRACK REQUIRED 1 Run of Mine 9 2
Slide 11: With the right inputs, outcomes are the focus
With the right inputs, outcomes are the focus For personal use only Successful relocation of full mining operations to Isaac Plains East Coking coal split at 100% and total yield in excess of 80% Excavator and truck performance ahead of plan Dragline Performance (BE1370) YTD is on track: Operating H
Slide 12: …. for all parts of our business in delivering certainty
…. for all parts of our business in delivering certainty For personal use only Driving for certainty in our safety performance Stanmore Coal Safety Statistics Past 12 Months to Date 20.00 15.00 10.00 5.00 - TRIFR (rolling 12mth average) Stanmore Rehabilitation Performance (% of mining area rehabilit
Slide 13: Development and Outlook
For personal use only Development and Outlook
Slide 14: Outlook
Outlook For personal use only From creating certainty in outcomes and returns to sourcing further ROM coal and preparing the company for the next stage Coal Type Price Share Price 350 350 1.60 300 1.40 300 1.20 250 250 Share price ($) US$/tonne US$/tonne 1.00 200 200 0.80 150 0.60 150 100 0.40 50 10
Slide 15: Disciplined near term and mid term growth options are key elements of our strategy
Disciplined near term and mid term growth options are key elements of our strategy For personal use only PROJECT / INVESTMENT PIPELINE – SOURCE ROM COAL PIPELINE WITH DISCIPLINE COAL QUALITY | COST STRUCTURE | STRIP RATIO EXECUTED / IN EXECUTION OPPORTUNITY For Stanmore its not about Finding the ‘Va
Slide 16: Isaac Downs Project Execution Timeline
Isaac Downs Project ExecutionTimeline For personal use only Jun ‘18 Dec’18 Jun’19 Dec’19 Jun’20 Dec’20 Jun’21 Environmental Studies • Groundwater and hydrology studies underway with Acquisition drilling program complete • Flood impacts assessment underway • Ecology, Noise and Dust Environmental stud
Slide 17: The 'Combined Effect' gives returns
The ‘Combined Effect’ gives returns For personal use only Headline Investment Criteria • Underutilised infrastructure • SMR presence • Multi – operator region • Met coal • Assets others don’t want or can’t develop Added value is essential • Infrastructure / asset grouping synergies • Increase to EPS
Slide 18: Stanmore has prepared for opportunities
Stanmore has prepared for opportunities For personal use only CAPACITY FOR OPPORTUNITY Balance sheet and capital discipline • Net cash increased to $58.4m being a prudent level for projected future production profiles • An interim fully franked dividend of 3cps paid during April 19 • No debt • Insti
Slide 19: Certainty in strategy
Certainty in strategy THE COMBINED EFFECT For personal use only PROJECT / INVESTMENT PIPELINE – SOURCE ROM COAL PIPELINE WITH DISCIPLINE COAL QUALITY | COST STRUCTURE | STRIP RATIO Isaac Plains Complex Regional Coal Hub Emerging Integrated 2.0Mt 2.4Mt 2.4Mt 5.0Mt Coal Company Saleable Production Sal
Slide 20: Background Information
For personal use only Background Information
Slide 21: Board of Directors
Board of Directors Wealth of experience creating the building blocks for a growing organisation For personal use only STEWART BUTEL DAN CLIFFORD STEPHEN BIZZELL NEAL O’CONNOR DARREN YEATES Non-executive Managing Director Non-executive Director Non-executive Director Non-executive Director Chairman •
Slide 22: Leadership team
Leadership team For personal use only DAN CLIFFORD IAN POOLE BERNIE O’NEILL JON ROMCKE Managing Director Chief Financial Officer General Manager – Operations General Manager – • More than 20 years’ • 30 years’ experience in experience in the coal financial and commercial • More than 30 years’ experi
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