Whitehaven Coal Limited · ASX:WHC
Whitehaven Coal — Investor Presentation (June 2008)
32 slides from Whitehaven Coal's investor presentation, Jun 18, 2008
Slide 1: Amended Investor Presentation notice
WHITEHAVEN COAL LIMITED ABN 68 124 425 396 Ground Floor, Ann Place 895 Ann Street Fortitude Valley QLD 4006 PO Box 2440 Fortitude Valley BC QLD 4006 Ph: 07 3000 5690 Fax: 07 3000 5699 Web: www.whitehaven.net.au 18 June 2008 WHITEHAVEN COAL LIMITED (ASX:WHC) AMENDED INVESTOR PRESENTATION Whitehaven C
Slide 2: Whitehaven Coal Limited Investor Presentation June 2008
Whitehaven Coal Limited Investor Presentation June 2008
Slide 3: Disclaimer
Disclaimer 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 projections and any estimate
Slide 4: Qualifications and Statement
Qualifications and Statement The information in this report that relates to Coal Resources and Reserves of the Whitehaven Group is based on information compiled by Mr David West, who is a Member of the Australasian Institute of Mining & Metallurgy. Mr West MAusIMM is a qualified geologist and is a f
Slide 5: Contents
Contents Company Background • A Snapshot • Assets • People Current Status • Substantial Growth • Narrabri Project • Supporting Infrastructure Looking Ahead • Market • Demand outstrips Infrastructure • Outlook • Objectives Further Information June 2008 3
Slide 6: Whitehaven Coal - a snapshot
Whitehaven Coal - a snapshot IPO’d in June 2007 at $1.00/share after 8 years as a private coy. Superior quality coal produced from relatively low cost mines Existing production of ~ 3.5 Mpta from 3 open cut mines 3 new mines (2 open cut & 1 underground longwall) to be built with production rising to
Slide 7: Whitehaven's assets
Whitehaven’s assets Narrabri (92.5%) • Coal Type: Thermal • Underground mine in development Bonshaw (66.7% interest) (North) and exploration project (South) • Coal Type: Coking • Narrabri North Resources of 230 Mt and • Exploration prospect at exploration include Reserves of 102.7 Mt stage • Narrabr
Slide 8: Whitehaven is the leading developer in the Gunnedah Basin
Whitehaven is the leading developer in the Gunnedah Basin Whitehaven has the “first mover advantage” in the Gunnedah Basin Whitehaven’s tenement area exceeds 427 km2 Managed production of ~3.5 Mtpa from 3 mines Three greenfield projects in the pipeline – Rocglen – Narrabri North – Sunnyside Signific
Slide 9: Large portfolio of superior quality coal
Large portfolio of superior quality coal Project JORC Resources JORC Marketable Reserves (Mt) (Mt) Whitehaven Mining Precinct 170.8 15.3 Werris Creek 26.3 - Narrabri 438.2 102.7 Total 635.3 118.0 Whitehaven has a history of converting Resources to Reserves Whitehaven’s superior quality coal means we
Slide 10: Experienced managers/owners
Experienced managers/owners Director/Title Experience • Directors have 200 years of cumulative experience. John Conde AO +30 years commercial experience • Directors have a proven track Non-Executive Chairman record as mine developers and Rob Stewart +35 years coal and construction operators. Managin
Slide 11: Contents
Contents Company Background • A Snapshot • Assets • People Current Status • Substantial Growth • Narrabri Project • Supporting Infrastructure Looking Ahead • Market • Demand outstrips Infrastructure • Outlook • Objectives Further Information June 2008 9
Slide 12: Substantial growth
Substantial growth Canyon To go on “stand-by” as new, low strip ratio Rocglen mine is developed Tarrawonga Open cut producing 1.5 Mtpa of thermal and PCI/SSCC coal Werris Creek Open cut producing 1.5 Mtpa of thermal and PCI coal with potential for 2 Mtpa Rocglen New open cut. Approval received April
Slide 13: Established production with high growth
Established production with high growth Planned Production by Coal Type (100% basis) 14 12 Production (Mtpa) 10 8 6 4 Thermal Semi-soft 2 PCI 0 FY2004a FY2005a FY2006a FY2007a FY2008f FY2009f FY2010f FY2011f FY2012f Five-fold increase in production over the next 5 years (subject to infrastructure co
Slide 14: Narrabri North Coal Project
Narrabri North Coal Project Location Adjacent to existing rail, power and road infrastructure Strategic JV partner Yudean is a major Chinese generator with a 7.5% JV stake and committed to taking major tonnages at market prices Favourable mining Whitehaven management has u/g experience in Hoskisson
Slide 15: New projects are on track and coordinated with infrastructure development
New projects are on track and are coordinated with planned infrastructure development June 2008 13
Slide 16: Rail infrastructure will meet Whitehaven's growth
Rail infrastructure will meet Whitehaven’s growth Current rail capacity is 4 Mtpa north of Werris Creek and 7 Mtpa south of Werris Creek…sufficient to meet Whitehaven’s current production Works now underway will increase capacity from July 2008 to 7Mtpa north of Werris Creek and 10 Mtpa south to New
Slide 17: Port infrastructure to meet growth plans
Port infrastructure to meet growth plans Existing PWCS Terminal − PWCS port at Newcastle is experiencing capacity constraints − PWCS’s capacity of 95 Mtpa in CY2008 with planned port expansion in CY2009 to 113 Mtpa but will probably actually deliver 105 Mtpa Newcastle Coal Infrastructure Group (“NCI
Slide 18: Port Demand outstrips Growth Plans
Port Demand outstrips Growth Plans Ind i ca tive On ly June 2008 16
Slide 19: Port Demand outstrips Growth Plans
Port Demand outstrips Growth Plans Ind i ca tive On ly June 2008 17
Slide 20: Contents
Contents Company Background • A Snapshot • Assets • People Current Status • Substantial Growth • Narrabri Project • Supporting Infrastructure Looking Ahead • Market • Demand outstrips Infrastructure • Outlook • Objectives Further Information June 2008 18
Slide 21: Strong markets
Strong markets Demand • Global demand for export coking and thermal coal continues to grow very strongly and is forecast of continued strength for some years. Supply • Supply from new Australian developments will fall short of predicted demand. • China’s export thermal coal is severely constrained b
Slide 22: Outlook for Whitehaven
Outlook for Whitehaven ¾Demand for Metallurgical and Thermal coal remains high ¾Higher coal prices, but still affected by rump of legacy contracts ¾Increased port allocation but tight for some years ¾Increased rail capacity and lower rail rates ¾Profit up but constrained by infrastructure for at lea
Slide 23: Where to from here?
Where to from here? Near Term Objectives ¾ Continue to efficiently manage our existing operations ¾ Werris Creek - improvements and extended life ¾ Rail upgrade – support increased shipping, lower rates ¾ Port – supporting new production – PWCS & NCIG ¾ Deliver Narrabri, Rocglen and Sunnyside on tim
Slide 24: Objectives
Objectives The Longer Term ¾ Whitehaven has grown rapidly over 5 years. Our growth will continue…we will build on our success and leverage our asset base. ¾ Industry consolidation will continue and Whitehaven will play its part. ¾ Grow earnings and dividends per share, maintain financial stability a
Slide 25: Contents
Contents Company Background • A Snapshot • Assets • People Current Status • Substantial Growth • Narrabri Project • Supporting Infrastructure Looking Ahead • Market • Demand outstrips Infrastructure • Outlook • Objectives Further Information June 2008 23
Slide 26: FY 2008 Highlights to Date
FY 2008 Highlights to Date • ASX listing in June 07 at $1.00/share • Canyon, Werris Creek and Tarrawonga mines performing well ~ 3 Mtpa • Acquired remaining 60% interest in Werris Creek…WHC now owns 100% • Acquired significant freehold land around existing mines and projects • Secured Narrabri appro
Slide 27: FY 2008 – 6 Months to December 2007
FY 2008 – 6 Months to December 2007 YTD Dec 07 YTD Dec 06 Saleable Production (kt) 903 638 Sales (kt) 910 598 Stock (kt) 352 198 EBITDA (A$000’s) 13,128* 12,061 NPAT (A$000’s) (372) 9,922 * Before non-cash share based payments ADVERSE IMPACTS ¾Demurrage ¾Depreciation adjustment ¾Share Based Payments
Slide 28: FY 2007 financial results
FY 2007 financial results * Measure Prospectus Forecast Actual Result for for FY2007 FY2007 NPAT $10.2M $24.1M Revenue $120M $106M EBITDA $25.8M $39.4M Earnings per Share 3.2¢ 8.0¢ Net Cash Flow $12.5M $19.4M Capex $53M $54M End of Year Cash $21.1M Net Debt $56M Gearing 18% * Pro forma after adjusti
Slide 29: Whitehaven has +600Mt of JORC Resources
Whitehaven has +600Mt of JORC Resources Project Ownership Status Measured Indicated Inferred TOTAL Canyon 100% Operating TBD TBD TBD TBD Tarrawonga Open Cut 70% Operating 8.3 11.0 24.0 43.3 Tarrawonga Seam Underground 100% Feasibility 2.7 8.0 5.0 15.7 Tarrawonga Underground – Other 100% Exploration
Slide 30: Resources include +100Mt of JORC Reserves
Resources include +100Mt of JORC Reserves Reserves (Mt) Project Proved Probable Recoverable From From Marketable (Proved + Proved Probable Probable) Canyon - - - - - - Tarrawonga Open Cut - 8.9 8.9 - 7.7 7.7 Tarrawonga Seam Underground - - - - - - Tarrawonga Underground – Other - - - - - - Whitehave
Slide 31: Relatively high ROM productivity
Relatively high ROM productivity ROM (“Run-of-Mine”) Production / Employee (NSW Opencut Mines) June 2008 29
Slide 32: High yield = high saleable productivity
High yield = high saleable productivity Whitehaven mines have average saleable yield of 93% vs. average Hunter Valley yield of ~75% Saleable Production / Employee (NSW Opencut Mines) June 2008 30