Whitehaven Coal Limited · ASX:WHC
Whitehaven Coal — Shareholder Meeting (October 2011)
34 slides from Whitehaven Coal's shareholder meeting presentation, Oct 28, 2011
Slide 1: ASX cover letter for AGM presentations
For personal use only 28 October 2011 The Manager, Listings Australian Securities Exchange Company Announcements office Via ASX Online Dear Sir, We attach copies of the Chairman’s Address and Managing Director’s Presentation which will be delivered at the Company’s Annual General Meeting being held
Slide 2: Chairman's Address
Whitehaven AGM 2011 Chairman’s Address I’ll now discuss the company’s performance for the year before handing For personal use only over to Tony who will provide you with a detailed presentation on Whitehaven’s operational performance and growth prospects. Whitehaven remains the largest and most est
Slide 3: Chairman's Address: Safety and Sustainability
necessary CHPP capacity. Tony will provide further detail on these issues in his presentation. SAFETY For personal use only The safety and wellbeing of our workforce is our highest priority and we are focusing on further developing our safety culture and commitment. Significant progress has been mad
Slide 4: Chairman's Address: Community and Environment
We are a willing and engaged participant in the various policy debates surrounding regional development and mining and have stated publicly on many occasions that we are committed to maintaining a locally-based workforce. For personal use only Despite the challenges raised by the skills shortage in
Slide 5: Chairman's Address: Corporate
In April 2011 we advised that the formal process was reaching a conclusion with shortlisted parties having completed due diligence and submitted formal proposals. After further negotiation of these proposals, the Whitehaven Board For personal use only determined that no proposal was sufficiently att
Slide 6: Whitehaven Coal Limited: Delivering Growth, AGM 2011
Whitehaven Coal Limited For personal use only Delivering Growth AGM 2011 Sydney, Australia 28 October 2011
Slide 7: Disclaimer
Disclaimer For personal use only Statements contained in this material, particularly those regarding the possible or assumed future performance, costs, dividends, returns, production levels or rates, prices, reserves, potential growth of Whitehaven Coal Limited, industry growth or other trend projec
Slide 8: Qualifications and Statement
Qualifications and Statement For personal use only Information in this report that relates to Coal Resources and Reserves is based on and accurately reflects reports prepared by the Competent Person named beside the respective information. All these persons are consultants for Whitehaven Coal Limite
Slide 9: Financial Highlights - FY 2011
Financial Highlights - FY 2011 For personal use only ► Underlying NPAT1 (excluding Significant Items) of $73.3 million, up 33% ► Fully franked dividends of 7.4 cents per share, attributable to FY 2011 NPAT ► Average cash cost of sales slightly lower at $60.49 per tonne FOB ► EBITDA of $148.0 million
Slide 10: Cash flow – FY 2011
Cash flow – FY 2011 For personal use only A$ millions FY 2010 FY 2011 Cash generated from operations 69.3 120.3 Interest and tax payments (108.8) (40.9) Net cash provided by/(used) in operating activities (39.5) 79.4 Proceeds from sale of assets 100.8 191.8 Capital investment (245.7) (225.3) Other i
Slide 11: Operating highlights - FY 2011
Operating highlights - FY 2011 For personal use only ► Coal sales grew strongly, but with more purchased coal to meet legacy contracts ► up 45% to 6.647 million tonnes (Mt) (100% basis) ► up 48% to 6.126 Mt (equity share) ► Saleable coal production increased substantially, mainly in the second half
Slide 12: Business development highlights - FY 2011
Business development highlights - FY 2011 For personal use only ► Coal Resources (JORC) increased by 8.5% to 1,771.5 Mt and Marketable Coal Reserves (JORC) increased by 34% to 426.1 Mt ► Vickery Project progressed with opencut Coal Resources (JORC) increased to 439.2 Mt, interim opencut Marketable R
Slide 13: Whitehaven is the leading coal producer and developer in the Gunnedah Basin
Whitehaven is the leading coal producer and developer in the Gunnedah Basin For personal use only 1 Large resources and reserves of high quality coal 2 High productivity mines & high yield coals provide cost and margin benefits Increasing percentage of metallurgical coal production and close to 100%
Slide 14: Saleable coal production has trebled
Saleable coal production has trebled in 5 years For personal use only Saleable Production - Equity Basis 4,500 4,000 3,500 3,000 000 tonnes 2,500 2,000 1,500 1,000 500 0 8 Annual General Meeting - October 28, 2011
Slide 15: Reserve life increased while production increased
Reserve life increased while production increased For personal use only Whitehaven Coal - JORC Resources Whitehaven Coal - JORC Marketable Reserves 2,000 500 1,800 450 1,600 400 1,400 350 1,200 300 Million Tonnes Million Tonnes 1,000 250 800 200 600 150 400 100 200 50 0 0 Resources Marketable Reserv
Slide 16: Substantial growth coming from Narrabri in 2012
Substantial growth coming from Narrabri in 2012 For personal use only ► Coal resources of ► Four continuous 854 Mt in a single miners now seam 8-9 metres developing for thick longwall ► Marketable ► More than 300 Kt reserves of 199.9 of saleable coal Mt from the produced to date bottom 4.2 metre sea
Slide 17: Gas drainage has been successful
Gas drainage has been successful For personal use only SIS on Drainage SIS Drilled Planned SIS Completed UIS Annual General Meeting - October 28, 2011 11
Slide 18: Narrabri UG development conditions are very good
Narrabri UG development conditions are very good For personal use only 12 Annual General Meeting - October 28, 2011
Slide 19: Longwall is 95% complete on site
Longwall is 95% complete on site For personal use only 13 Annual General Meeting - October 28, 2011
Slide 20: Longwall is 95% complete on site
Longwall is 95% complete on site For personal use only 14 Annual General Meeting - October 28, 2011
Slide 21: Longwall is 95% complete on site
Longwall is 95% complete on site For personal use only 15 Annual General Meeting - October 28, 2011
Slide 22: CHPP complete and being commissioned
CHPP complete and being commissioned For personal use only 16 Annual General Meeting - October 28, 2011
Slide 23: Shaft complete and fans being commissioned
Shaft complete and fans being commissioned For personal use only 17 Annual General Meeting - October 28, 2011
Slide 24: Longwall panel #1 development is on the critical path
Longwall panel #1 development is on the critical path For personal use only 18 Annual General Meeting - October 28, 2011
Slide 25: Development is running ~10% behind at end October
Development is running ~10% behind at end October If current rates not improved, LW delayed ~8 weeks For personal use only 19 Annual General Meeting - October 28, 2011
Slide 26: Extension of the Tarrawonga JV has significant strategic benefits
Extension of the Tarrawonga JV has significant strategic benefits for WHC & Idemitsu For personal use only ► Utilises coal reserves within the Boggabri Coal area which would not otherwise be mined ► Extends the existing 70:30 Tarrawonga JV reserves to allow up to 3 Mtpa for 20 years with same coal q
Slide 27: Vickery a major strategic growth acquisition
Vickery a major strategic growth acquisition For personal use only ► The total Vickery project area comprises Vickery, Merton, Bluevale and Canyon Extended ► 439 Mt of open cut Coal Resources, with an interim Marketable Reserve of 113.5 Mt ► Coal seams at Vickery contain a range of semi-soft coking
Slide 28: Large OC reserve at Vickery with extensions to come
Large OC reserve at Vickery with extensions to come For personal use only ► 439 Mt opencut Coal Resource in the Vickery area ► Main Pit (green outline) now has MERTON 164 Mt of ROM coal at 10:1 POTENTIAL stripping ratio, of which 129 Mt EXTENSION is currently JORC Recoverable AREA Reserve ► Further
Slide 29: Rail track capacity to meet Whitehaven's growth
Rail track capacity to meet Whitehaven’s growth New trains being acquired as needed for growth For personal use only ► Whitehaven has entered into a long term track access agreement with ARTC which provides capacity to meet Whitehaven's planned growth ► Further track upgrades have been identified by
Slide 30: Newcastle port capacity is growing rapidly
Newcastle port capacity is growing rapidly For personal use only 100 100 PWCS NCIG 315+ 40 40 T4 70 32 32 32 30 30 30 30 145 113 113 113 113 Newcastle Port Capacity by PWCS expansion by 2012 NCIG expansion during 2013 PWCS Terminal 4 Future Expected Newcastle end of CY2010 Port Capacity 24 Annual Ge
Slide 31: Port capacity to meet Whitehaven growth
Port capacity to meet Whitehaven growth For personal use only WHC – PLANNED PORT CAPACITY BUILDUP 16,000 New PWCS (T4) 14,000 Third Party Contracts 12,000 Thousand tonnes 10,000 Tarrawonga JV 8,000 NCIG Stage 2F 6,000 NCIG Stage 2AA 4,000 NCIG Stage 1 2,000 PWCS Contract 0 25 Annual General Meeting
Slide 32: Low-risk open cut production base with substantial growth
Low-risk open cut production base with substantial growth from Narrabri UG and Vickery OC For personal use only SALEABLE PRODUCTION CAPACITY VS PORT CAPACITY ► Four OC mines with ~5.5 (100% BASIS) 1. Mtpa1 capacity. OC growth 18,000 from Vickery ► Saleable production capacity 16,000 expected to be ~
Slide 33: Major milestones to be passed in FY 2012
Major milestones to be passed in FY 2012 For personal use only ► Installation of Narrabri longwall and ramp up of production Narrabri has been systematically de-risked over the last three years. Capital works are complete, mining is underway, installation of the longwall and ramp up to design capaci
Slide 34: Whitehaven Coal Limited: Delivering Growth, AGM 2011
Whitehaven Coal Limited For personal use only Delivering Growth AGM 2011 Sydney, Australia 28 October 2011