Stanmore Resources Ltd · ASX:SMR
Stanmore Resources — Non-Deal Roadshow (February 2019)
29 slides from Stanmore Resources's roadshow presentation, Feb 6, 2019
Slide 1: Stanmore Coal Business Update
STANMORE COAL BUSINESS UPDATE 6-8 FEBRUARY 2019 0
Slide 2: Important information
Important information This document has been prepared by Stanmore and needs and seek appropriate advice, including projections, guidance on future Coal Limited (“Stanmore Coal”) for the purpose including financial, legal and taxation advice earnings and estimates are provided as a of providing a com
Slide 3: Stanmore Coal Overview - Certainty
Stanmore Coal Overview - Certainty ASX CODE SHARE PRICE Independent Australian coal company Positioned predominantly in metallurgical coal with SMR A$0.961 a track record of delivery SHARES MARKET CAP 252,827,518 $243m1 Isaac Plains Complex expansion operational with 1. AS AT 4 Feb ‘19 demonstrated
Slide 4: Overview of Stanmore logistics
Overview of Stanmore logistics Operations and Projects BOWEN Foundations in Metallurgical Coal ABBOT POINT THIS • Isaac Plains Complex (IPC) operational with a MAP capacity of 3.5Mt ROM1 (approx. 2.5Mt TOWNSVILLE product) ROCKHAMPTON • IPC Marketable Reserves of 37Mt 2 MACKAY BRISBANE • SMR Total Re
Slide 5: Isaac Plains Complex - Value accretive leverage
Isaac PlainsComplex – Value accretive leverage 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 operational in 2016 at •
Slide 6: Overview - Stanmore customer base
Overview – Stanmore customer base Diverse Blue Chip Customer Base Leveraged to metallurgical coal • Approximately 50% contracted into Japan / Korea • Valuable market / customer diversity expanding into Europe EUROPE and India • Thermal by-product KOREA JAPAN CHINA INDIA S.EASIA Coking Thermal 5
Slide 7: FY2019 highlights to date
FY2019 HIGHLIGHTS TO DATE FULL-YEAR PRODUCTION FULL-YEAR EBITDA (underlying)1 guidance lifted from guidance revised to $140m to $155m 2.0 Mt to 2.15 Mt product H1 EBITDA (underlying) $41m to $43m DEVELOPMENT of Isaac FY19 INTERIM DIVIDEND of 3 cps Plains East with dragline payable in April 2019 foll
Slide 8: Safety, Environment & Community
Safety, Environment & Community
Slide 9: Safety, Environment & Community Performance
Safety, Environment & Community Performance Driving for certainty in our performance Stanmore Coal Safety TRIFR Safety 25.00 •Leadership focus on fatal risks and critical controls 20.00 •‘Engineered’ Workplace Environment 15.00 10.00 •Individual accountability 5.00 - Environment TRIFR •Proactive man
Slide 10: Operations
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Slide 11: Operational Performance
Operational Performance Implementation of the strategy ‘on the ground’ 2018 PLATFORM ASSET VALUE DRIVERS RELIABILITY ESTABLISHED DRAGLINE UTILISATION December 2018 Quarterly Performance • Record ROM coal mined and processed (annualised rate of 3.2 – 3.3Mt ) OPERATIONAL PERFORMANCE • Record saleable
Slide 12: Operational Performance
Operational Performance Stanmore’s historical performance to date has the Company well positioned with a reducing cost structure and increased production profile FOB costs (A$/tonne, ex. royalty) ROM tonnes mined 140 900 800 120 700 100 600 80 k tonnes 500 400 60 300 40 200 20 100 0 - FY18 Q1-FY19 Q
Slide 13: Development and Outlook
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Slide 14: The strategy into action
The strategy into action Cycle proofed and capital light 2018 •Maiden Coal Reserve of 24.5 Mt (15.8Mt MAXIMISING CURRENT ASSETS Marketable Coal Reserve) announced for Isaac Downs Project, together with an update to Coal Resources to 33Mt1 •Isaac Plains Underground BFS investment VALUE DRIVERS IPC CH
Slide 15: Isaac Downs Project Execution Timeline
Isaac Downs Project ExecutionTimeline 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 Environmental studies • Noise and Dust • Social and Econo
Slide 16: The strategy into action
The strategy into action With Isaac Plains maximised, further opportunity exists 2020–2022 •The Range Project is progressing to Environmental RIGHT SCALE OF ACQUISITION WITH CAPITAL DISCIPLINE Authority Application off the base of the existing Mining Lease Application (MLA) •Stanmore involvement in
Slide 17: Outlook
Outlook 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 1.20 300 300 1.00 250 250 0.80 Share price ($) US$/tonne US$/tonne 200 200 0.60 150 150 0.40 100 50 100 0.20 0 50 0.00 2015 2016 2017
Slide 18: The initial strategy
The initial strategy Early stagesof the strategysuccessfully executed with proven ability to deliver the mining cycle Current 2018 -19 2020- 25 2025 onwards DEVELOP OPERATE MAXIMISING RIGHT SCALE OF DEVELOPMENT WITH POSITIONING IN PLATFORM ACQUISITION CURRENTASSETS COMMODITY TYPE CAPITAL DISCIPLINE
Slide 19: Progression is earned
Progression is earned A two-pronged approach integrating benchmark operating performance into value-accretive development / acquisition 2018 2019-2020 2021-2022 ONWARDS PROJECT / INVESTMENT PIPELINE – SOURCE ROM COAL PIPELINE WITH DISCIPLINE COAL QUALITY | COST STRUCTURE | STRIP RATIO VALUE DRIVERS
Slide 20: Certainty in mid-term development
Certainty in mid-term development SOURCE ROM COAL PIPELINE WITH DISCIPLINE Near term Mid term 3.5Mt ROM 7.0Mt ROM COAL +15years COAL +20years A BUSINESSTHAT DRIVES CERTAINTY LIFE SOURCES LIFE SOURCES in growth PIPELINE / CAPACITY SECURED INCREMENTAL CAPACITY AVAILABLE • Isaac Plains • Isaac Plains S
Slide 21: Certainty for the Company
Certainty for the Company A PREPARED COMPANY • No debt (but capacity) • Portfolio Development • + share price • Hub Acquisition A BUSINESS THAT • Dividend yield FOUNDATION OPPORTUNITY • Earnings growth DRIVES CERTAINTY • Substantial cash built • Positive cash flow in low • Counter cycle capacity in
Slide 22: Certainty with the combination
Certainty with the combination SOURCE ROM COAL PIPELINE WITH DISCIPLINE Near term Mid term 3.5Mt 7.0Mt COAL +15years COAL +20years SOURCES LIFE SOURCES LIFE A BUSINESS THAT DRIVES CERTAINTY in delivering returns to shareholders A PREPARED COMPANY • No debt (but capacity) • Portfolio development • +
Slide 23: Certainty in strategy
Certainty instrategy THE COMBINEDEFFECT PROJECT / INVESTMENT PIPELINE – SOURCE ROM COAL PIPELINE WITH DISCIPLINE COAL QUALITY | COST STRUCTURE | STRIP RATIO Isaac Plains Complex Regional Coal Hub Emerging Integrated Coal Company 2.0Mt 2.4Mt 2.4Mt 5.0Mt Margin Focused Saleable Production Saleable Pro
Slide 24: Background Information
BACKGROUND IMFORMATION
Slide 25: Board of Directors
Board of Directors Wealth of experiencecreatingthe buildingblocksfor a growingorganisation STEWARTBUTEL DANCLIFFORD STEPHENBIZZELL NEALO’CONNOR Non-executiveChairman Managing Director Non-executiveDirector Non-executive Director • 40 years of experience in operational • More than 20 years’ experienc
Slide 26: Leadership team
Leadership team DANCLIFFORD IAN POOLE BERNIE O’NEILL JON ROMCKE Managing Director Chief Financial Officer General Manager –Operations General Manager –Development • More than 20 years’ experience in • 30 years’ experience in financial and • More than 30 years’ experience in the the coal mining indus
Slide 27: Appendix A
stanmorecoal Meets
Slide 28: Resources
Resources Coal Resources, December 2018 Coal Measured Indicated Inferred Total Competent Report Project Name Tenement Type * Resources Resources Resources Resources Person Date ML 70342, Isaac Plains ML 700018, C,T 22.2 21.3 9 52 A May-18 ML 700019 ML 700016, ML 700017, Isaac Plains East C 12.9 8.8
Slide 29: Reserves
Reserves Coal Reserves Marketable Reserves Competent Report Project Name Tenement Proved Probable Total Proved Probable Total Person Date Isaac Plains ML 70342 1.8 0.9 2.7 1.3 0.7 2.0 E Aug-18 Open-cut ML 700016, Isaac Plains East ML 700017, 10.3 1.9 12.2 8.0 1.5 9.5 E Aug-18 Open-cut ML 700018, ML
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