Slide 1: Half Year 2017 Results Presentation
HALF YEAR 2017 RESULTS PRESENTATION
Slide 2: Important Information
IMPORTANT INFORMATION This document has been prepared by Coal shares and has been prepared Indications of, and guidance on, future will not in any way rely upon this Stanmore Coal Limited (“Stanmore without taking into account the earnings and financial position and document. Coal”) for the purpose
Slide 3: Half Year in Review
HALF YEAR IN REVIEW 31 December 2016 Recent increases to coal prices 16 shipments totalling 582 kt sold, realised from December quarter, resulting in $59.4 million in revenue with flow through to 2H FY2017 Unit cost of sales per tonne (A$/t) of $15m capital raising completed to $117/t representing t
Slide 4: Isaac Plains Update
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Slide 5: Safety: Reversing the early trend with increased focus
SAFETY REVERSING THE EARLY TREND WITH INCREASED FOCUS During the half year there were three injuries (TRI) at the Isaac Plains Mining Complex, with no other injuries recorded across other projects and tenements The Total Reportable Injury Frequency Rate (TRIFR) at balance date is 12.34 per million h
Slide 6: Committed to Rehabilitation
COMMITTED TO REHABILITATION 82 Ha UNDERTAKEN IN 1H FY2017 Stanmore has fast-tracked rehabilitation in the first year of Topsoil removed and stockpiled for use in rehabilitation ownership, undertaking bulk shaping of 82ha and the planned proportion of topsoiling and seeding in the first half Out of p
Slide 7: Revised Mine Plan
REVISED MINE PLAN PROGRESS AGAINST THE PLAN In December 2016 the Company announced a Prime strip ratio capital raising for A$15 million (pre costs) to invest 20 in both pre-strip advancement and coal inventory, 16 based on a Revised Mine Plan (RMP) 12 The RMP includes acceleration of pre-strip 8 act
Slide 8: Operating Results: Isaac Plains Open-Cut Mine Physicals & Costs
OPERATING RESULTS ISAAC PLAINS OPEN-CUT MINE PHYSICALS & COSTS Prime waste overburden (bcm) Prime waste overburden removal for 1H FY2017 was 11.0 7,000 million bcm (Mbcm), up 3.6 Mbcm from 2H FY2016, 6,000 highlighting the ramp-up phase of operations at the Isaac 5,000 Plains coal mine. 4,000 kbcm 3
Slide 9: Operating Results: Isaac Plains Open-Cut Mine Physicals & Costs
OPERATING RESULTS ISAAC PLAINS OPEN-CUT MINE PHYSICALS & COSTS Product tonnes produced Product tonnes produced have steadily increased since 350 mining commenced, with a total of 582 kt produced in 1H 300 FY2017. Product tonnes from highwall mining activities 250 contributed 153 kt over the same per
Slide 10: Coal Sales
COAL SALES IMPROVED CHPP OPERATING PERFORMANCE 80.0% 450 Isaac Plains has produced 81% semi-soft coking coal and 19% thermal coal in 1HFY17, with a total product 70.0% 400 yield of 74.5% 60.0% 350 Product yield % 300 ROM feed (kt) 50.0% Total of 16 shipments in 1HFY17, totalling 550kt, made 250 up o
Slide 11: Coal Price Outlook
COAL PRICE OUTLOOK RETURN TO SUSTAINABLE PRICING IN MEDIUM TERM Coking and thermal spot markets trending down since 350 2011 Management view that prices remain supported in the 300 medium term, at levels to incentivise capital investment decisions to replace depleting supply sources of coking coal 2
Slide 12: Financial Performance
Financial Performance
Slide 13: Financial Highlights December 2016
FINANCIAL HIGHLIGHTS 31 DECEMBER 2016 H1 H1 Profit and loss Comment FY2017 FY2016 Net profit / (loss) after tax ($m) (0.5) (6.4) Transitional half year including completion of ramp-up EBITDA before significant items ($m) (6.9) (1.9) Refer information on slide 15 Higher pricing environment starting t
Slide 14: Financial Performance
FINANCIAL PERFORMANCE 31 DECEMBER 2016 16 shipments of coal sold during 1HFY17 H1 H1 Financial Performance (A$ millions) resulted in revenue of $59.4 million FY2017 FY2016 An increased cost of sales due to operational Revenue 59.4 0.2 ramp-up has resulted in a gross loss of $5.9 million Cost of sale
Slide 15: EBITDA Significant Items
EBITDA SIGNIFICANT ITEMS 31 DECEMBER 2016 H1 H1 EBITDA before significant items Comment FY2017 FY2016 EBITDA (10.5) (5.8) Reimbursement of costs incurred by the vendors in Vendor reimbursements 1.9 - relation to the period of Stanmore’s control of Isaac Plains Provision movement based on expected pr
Slide 16: Financial Position
FINANCIAL POSITION 31 DECEMBER 2016 December June Receivables at 31 December 2016 includes trade Financial Position (A$ millions) receivables ($10.5m), vendor receivable ($1.3m) 2016 2016 and a GST receivable ($1.2) Current assets 42.3 42.4 - Cash (including restricted cash) 18.8 12.2 Stockpile inve
Slide 17: Working Capital Position
WORKING CAPITAL POSITION STRENGTHENING THE BALANCE SHEET The working capital position of the company 50,000 has improved in the 1H FY2017, reversing the declining trend from the first half of the 40,000 period to end the half year in a stronger position 30,000 The upward trend in working capital pos
Slide 18: Cash Flow
CASH FLOW 31 DECEMBER 2016 H1 H1 Receipts from customers of $55.7 million Cash Flow (A$ millions) represents the sale of 540 kt of product for FY2017 FY2016 which the funds were received in the period. Receipts from customers (inc. of GST) 55.7 0.8 Vendor compensation payments received Payments to s
Slide 19: Background
Background
Slide 20: Overview: Stanmore Portfolio
OVERVIEW STANMORE PORTFOLIO BOWEN BASIN – Coking Coal ISAAC PLAINS – 100% MACKENZIE – 95% Operations Exploration ISAAC PLAINS EAST – 100% Development SURAT BASIN – Thermal Coal THE RANGE – 100% BELVIEW – 100% Development (pending Exploration infrastructure) LILYVALE – 85% CLIFFORD – 60% Exploration
Slide 21: Strategic Objectives
STRATEGIC OBJECTIVES FY17 AND FORWARD Time horizon Internal External Short Establish reliability and repeatability of Assess potential assets in proximity to production from Isaac Plains IP Complex In place Drive for value from complex via cost per tonne Medium Develop Isaac Plains East and Pursuing
Slide 22: Isaac Plains Coking Coal Mine: Transaction Recap
ISAAC PLAINS COKING COAL MINE TRANSACTION RECAP ACQUISITION OF ESTABLISHED TRANSACTION MET COAL MINE OVER $350M REPLACMENT VALUE OF AQUIRED ASSETS COMPLETED Existing open-cut operation Dragline - Bucyrus BE1370 commenced production in 2006 November Located near Moranbah in 500tph Coal Handling and P
Slide 23: Isaac Plains Complex
ISAAC PLAINS COMPLEX SIGNIFICANT SYNERGIES & MINE LIFE OPTIONS Opportunities to utilise Isaac Plains infrastructure including underutilised CHPP and rail loop CURRENT ISAAC PLAINS OPEN CUT Current 3 year mining services contract producing coal ISAAC PLAINS EAST – OPEN CUT EXTENSION Extends open cut
Slide 24: Projects Update
PROJECTS UPDATE
Slide 25: Isaac Plains East
ISAAC PLAINS EAST INDICATIVE TIMETABLE TO PRODUCTION (FINANCIAL YEAR BASIS) Q1 FY17 Q2 FY17 Q3 FY17 Q4 FY17 Q1 FY18 Q2 FY18 Q3 FY18 Q4 FY18 EA Amendment Public notification Potential first and ML period coal at Isaac Applications lodged Plains East Resolution of key Potential grant date negotiations
Slide 26: Isaac Plains Underground
ISAAC PLAINS UNDERGROUND INDICATIVE TIMETABLE TO INVESTMENT DECISION (FINANCIAL YEAR BASIS) Q1 FY17 Q2 FY17 Q3 FY17 Q4 FY17 Q1 FY18 Q2 FY18 Q3 FY18 Q4 FY18 Exploration Target Investment planning and decision project scheduling Feasibility focusing on optimal bord & pillar techniques and potential fu