Terracom Limited · ASX:TER
Terracom — Investor Presentation (July 2020)
42 slides from Terracom's investor presentation, Jul 31, 2020
Slide 1: TerraCom Repositioned: Mid Tier, Multi Jurisdictional Miner
TERRACOM REPOSITIONED MID TIER, MULTI JURISDICTIONAL MINER 1
Slide 2: Disclaimer
DISCLAIMER The information contained in this document (“Presentation”) has been prepared by TerraCom Limited (the “Company”). This Presentation does not constitute an offer or invitation to any person to subscribe for or apply for any securities in the Company. This Presentation contains summary inf
Slide 3: Corporate Overview
CORPORATE OVERVIEW 3
Slide 4: TerraCom Snapshot
TERRACOM SNAPSHOT Cash Generating Country Diversification ASX listed coal producer with operations in Australia and South Africa $ Capitalising on strong demand for low impurity thermal coal Shareholder Analysis Organic Growth Near term Brownfield and greenfield expansion opportunities from within e
Slide 5: Share Performance Analysis
SHARE PERFORMANCE ANALYSIS ASX: TER • WWW.TERRACOMRESOURCES.COM 5
Slide 6: Strategic Position of TerraCom – 2021 Financial Year
STRATEGIC POSITION OF TERRACOM – 2021 FINANCIAL YEAR Natural Hedge to Sea • The South African operations provides TerraCom with 1 1 Maximise productionPrices Borne Commodity and a fixed margin return on domestic coal sales. resultant revenue Multi-Jurisdictional • TerraCom operates in two core therm
Slide 7: Board of Directors
BOARD OF DIRECTORS Wal King - Chairman, Independent Director Craig Ransley - Deputy Chairman, Executive Director • Wal holds a Bachelor and Masters in Engineering and • Mr. Ransley is a qualified Fitter and Machinist (Trade Engineering Science and an Honorary Doctorate of Science Qualified) and has
Slide 8: Board of Directors
BOARD OF DIRECTORS Craig Lyons - Non-Executive, Independent Director Paul Anderson - Non-Executive Director • Mr Lyons is an experienced and accomplished investment • Paul has over 30 years’ experience in senior executive banker and businessman with extensive strategic, management roles in both the
Slide 9: Executive Management Team – TerraCom Limited
EXECUTIVE MANAGEMENT TEAM – TERRACOM LIMITED Craig Ransley - Deputy Chairman, Executive Director Danny McCarthy - Chief Executive Officer • Mr. Ransley is a qualified Fitter and Machinist (Trade • Mr McCarthy is a highly experienced mining executive having Qualified) and has a broad entrepreneurial
Slide 10: Executive Management Team – Universal Coal PLC
EXECUTIVE MANAGEMENT TEAM – UNIVERSAL COAL PLC Tony Weber – Chief Executive Officer Shammy Luvhengo – Director Business Development • Tony Weber, co-founder of Universal Coal, is a mining engineer with over 20 years’ experience in mining spanning • Shammy Luvhengo is a qualified investment banker an
Slide 11: 2020 Financial Year
2020 FINANCIAL YEAR 11
Slide 12: Production Performance – 2020 Financial Year
PRODUCTION PERFORMANCE – 2020 FINANCIAL YEAR ROM Production Coal Sales Year on Year increase of Year on Year increase of 12.3Mt or 365% 7.3Mt or 240% ASX: TER • WWW.TERRACOMRESOURCES.COM 12
Slide 13: Production Performance – 2020 Financial Year
PRODUCTION PERFORMANCE – 2020 FINANCIAL YEAR MANAGED TONNES EQUITY TONNES ROM Tonnes Coal Sales ROM Tonnes Coal Sales Assuming 2020FY 2019FY 2020FY 2019FY 2020FY 2019FY 2020FY 2019FY Universal Owned Australia 3,052 2,647 2,589 2,298 3,052 2,647 2,589 2,298 for Entire Blair Athol 3,052 2,647 2,589 2,
Slide 14: Existing Operations and Projects
EXISTING OPERATIONS AND PROJECTS ASX: TER WWW.TERRACOMRESOURCES.COM 14
Slide 15: Queensland, Australia
Queensland, Australia 15
Slide 16: Queensland Operations and Projects
QUEENSLAND OPERATIONS AND PROJECTS OPERATIONS 1. Blair Athol Mine (BA) PROJECTS 1. Northern Galilee 2. Springsure ASX: TER • WWW.TERRACOMRESOURCES.COM 16
Slide 17: Operations: Blair Athol
OPERATIONS Blair Athol (BA) 17
Slide 18: Operational Performance
OPERATIONAL PERFORMANCE Progressive ramp up of production at the Blair Athol mine since acquisition of the mine on 31 May 2017 THERMAL COAL 2.4MtpaROM 2Mtpa export, primarily to Japan and South Korea customers Export Exported through Dalrymple Bay Coal Terminal and Abbott Point Coal Terminal Ownersh
Slide 19: Operations Photos
OPERATIONS PHOTOS Coal Washery in operation 10,000 tonne train being loaded at the Train Load Out ASX: TER • WWW.TERRACOMRESOURCES.COM 19
Slide 20: JORC Resources and Reserves
JORC RESOURCES AND RESERVES Resource 1 Mt JORC Resources JORC Reserves Measured 30.2 50 50 Indicated 11.6 45 45 Inferred 2.0 40 40 Total 43.8 35 35 30 30 Reserve 2 Mt 25 25 Proved 15.3 20 20 Probable 12.1 15 15 Total 27.4 10 10 Marketable Reserve 2 Mt 5 5 Proved 12.7 0 0 RESOURCE RESERVE Probable 9.
Slide 21: Rehabilitation and Environment
REHABILITATION AND ENVIRONMENT ✓ Significant progress of rehabilitation activities at Blair Athol • Queensland’s Department of Science (DES) issued its Financial Assurance decision for the Blair Athol Mine on 1 June 2020, being an amount of $72.1 million (approximately $8 million less compared to wh
Slide 22: Completed Rehabilitation – Tailings Dam
COMPLETED REHABILITATION – TAILINGS DAM BEFORE: 2015 pre ownership ASX: TER • WWW.TERRACOMRESOURCES.COM 22
Slide 23: Projects
PROJECTS Northern Galilee Springsure 23
Slide 24: Queensland Expansion: Organic Growth from Strategically Located Assets
QUEENSLAND EXPANSION | Organic Growth from Strategically Located Assets The BA acquisition revalues TerraCom’s Australian portfolio through providing a hub for their development across major coal basins in Queensland including: Northern Galilee Project (1.9Bt JORC 20043) is large thermal resource
Slide 25: Queensland Expansion | Northern Galilee Project
QUEENSLAND EXPANSION | Northern Galilee Project ASX: TER • WWW.TERRACOMRESOURCES.COM 25
Slide 26: Queensland Expansion | Springsure Project
QUEENSLAND EXPANSION | Springsure Project ASX: TER • WWW.TERRACOMRESOURCES.COM 26
Slide 27: South Africa
South Africa Four Operating Coal Mines Two Thermal Coal Projects One Coking Coal Project 27
Slide 28: South Africa Operations and Projects
SOUTH AFRICA OPERATIONS AND PROJECTS ASX: TER • WWW.TERRACOMRESOURCES.COM 28
Slide 29: Operations
OPERATIONS Kangala New Clydesdale Colliery (NCC) North Block Complex (NBC) Ubuntu Colliery 29
Slide 30: Kangala Colliery
KANGALA COLLIERY THERMAL COAL 3.2MtpaROM Domestic 2Mtpa off-take contract to 2023 Sales to Eskom 2.0Mtpa Ownership 70.5% with operational control truck & shovel operation OPEN PIT ~1.8:1 strip ratio LoM extension with adjacent Eloff acquisition COAL SALES Domestic Export 0.3 0.2 0.1 0.3 - 0.2 2.4 2.
Slide 31: New Clydesdale Colliery
NEW CLYDESDALE COLLIERY THERMAL COAL 3.7 Mtpa ROM COAL SALES 65% Domestic Export Domestic 1.6Mtpa to 2023 at negotiatedpricing 35% API4-linked contracted ~650Ktpa to 2021 0.8 Export 0.8 6,000Kcal API4 spot marketpricing 0.8 Ore Reserves 54.8Mt Ownership 49% with operational control 1.7 1.8 1.4 Under
Slide 32: North Block Complex
NORTH BLOCK COMPLEX THERMAL COAL 3.7 Mtpa ROM from 2020 1.2Mtpa 15% ash, 5500Kcal Export coal Long term (2020) continuation/extension of current Eskom offtake COAL SALES 2.4Mtpa 3.0 Short term contract negotiating longer term offtake 2.5 55.4Mt 2.0 Ore Reserves current operations fully regulated Paa
Slide 33: Ubuntu Colliery
UBUNTU COLLIERY • Project fully regulated • Surface Rights acquired • CSA signed with Eskom for 1.2Mtpa • First coal delivery to Eskom in February 2020 • 100kt of coal sales in April 2020 JORC 2012-compliant 75.8Mt Resource COAL SALES Ore Reserves 9.15Mt 0.7 Ownership 49% with operational control 0.
Slide 34: Thermal Coal Projects and Coking Coal Projects
THERMAL COAL PROJECTS Eloff Arnot South COKING COAL PROJECTS Berenice Cygnus 34
Slide 35: Eloff – Kangala Extension and Eloff Stand Alone
ELOFF – KANGALA EXTENSION AND ELOFF STAND ALONE THERMAL COAL PROJECT Contiguous to Kangala, allowing for low cost expansion, long-term Eloff stand-alone sustainability project of similar scope to Kangala Kangala extension allows for uninterrupted 8,168ha production of 2.4Mtpa 6,146.7ha Surface Right
Slide 36: Arnot South and Berenice Cygnus
ARNOT SOUTH AND BERENICE CYGNUS BERENICE CYGNUS 50% owned • Blend coking and thermal coal project 7 • 1.35 billion tonne JORC Resource • 10Mtpa open cut operation viability confirmed • 20km from existing railway infrastructure • Application submitted for mining right and environmental authorisation
Slide 37: Business Development: Commodities Diversification – Bauxite
BUSINESS DEVELOPMENT COMMODITIES DIVERSIFCATION – BAUXITE 37
Slide 38: Commodity Diversification: Anglo-African Minerals PLC
COMMODITY DIVERSIFICATION: ANGLO-AFRICAN MINERALS PLC6 SUMMARY AAM’s bauxite resources are located in the Republic of Guinea, one of the world’s leading countries in terms of proven bauxite reserves (~25%) PROJECTS • Forward African Resources (FAR). A project targeting 73.0 million metric tons of ex
Slide 39: Resources and Reserves Statement
RESOURCES AND RESERVES STATEMENT 39
Slide 40: Resources and Reserves Statement
RESOURCES AND RESERVES STATEMENT RESERVES RESOURCES RESERVES RESOURCES Attributable to Attributable to Proved Probable Total Measured Indicated Inferred Total TerraCom TerraCom Tenement Mt Mt Mt Mt Mt Mt Mt Mt Mt AUSTRALIA 15.3 12.1 27.4 30.2 238.6 1,903.0 2,171.8 27.4 2,171.8 Blair Athol1,2 15.3 12
Slide 41: References
REFERENCES 1 – Refer to ASX Announcement on 30 September 2019 for further information and clarification on the Blair Athol JORC Resource. The Company confirms that it is not aware of any new information or data that materially affects the information included in the original announcement; and that a
Slide 42: Thank You
THANK YOU 42