Slide 1: GCM Resources plc
GCM Resources plc August 2011 1
Slide 2: Disclaimer
Disclaimer • The content of this document has not been approved by an authorised person within the meaning of the Financial Services and Markets Act 2000. Reliance on this promotion for the purposes of engaging in any investment activity may expose an individual to a significant risk of losing all o
Slide 3: GCM Resources plc - Assets
GCM Resources plc - Assets • Phulbari Coal Project – 100% ownership of world class undeveloped coal property in Bangladesh • Coal of Africa Limited – 3 3% share 3.3% share, market value ~£11 £11 million • Polo Resources Limited – 3.3% share, market value ~£4 million *Share price/market capitalisatio
Slide 4: Liquid assets, Market Cap, Substantial Shareholders
Liquid assets, Market Cap, Substantial Shareholders £m p per share Cash and listed investments 15.4 30 Market Capitalisation 49.7 97 *Share price/market capitalisation as at 26th August 2011 % off issued i d capital* it l* Shareholder Polo Resources 29.8 Luxor Capital 14.0 Aurora Investment Trust 3.
Slide 5: Investments
Investments Coal of Africa Limited (GCM 3.3%) Polo Resources Limited (GCM 3.3%) • South African coal sector sector, • Caledon Resources (29.9%) • Producing mines and development projects • GCM (29.8%) • Coal projects, 2Bnt+ in exploration phase • Several exploration/development prospects in coal, •
Slide 6: Phulbari Coal Project
Phulbari Coal Project q) GEM RCES
Slide 7: Phulbari is a world class deposit
Phulbari is a world class deposit • Large reserves of coal (thermal and semi-soft coking coal) and by-products – 572 millions illi tonnes t JORC compliant li t resource – Resource open to the north and south • Open cast operations using well-tested techniques – Coal measures at 165-270 metres below
Slide 8: The Phulbari Coal Project
The Phulbari Coal Project 8
Slide 9: X-Section through Phulbari & Barapukuria Coal Basins
X-Section through Phulbari & Barapukuria Coal Basins A A' Phulbari Mine Direction 9
Slide 10: Mine Footprint
Mine Footprint Phulbari Town New Town area Existing village Resettlement Village site 10
Slide 11: Mine Footprint
Mine Footprint Rehabilitated Land Phulbari Town New Town Area 11
Slide 12: Phulbari Coal and Power Timeline
Phulbari Coal and Power Timeline Year 1 Year 2/3 Year 4 to 35+ Preparation Overburden removal Coal mining • A Approvals l • Coall H C Handling dli Pl Plantt construction • Land acquisition & site • Continued Land Acquisition construction • Equipment ordering • Equipment commissioning • Ramp-up to 15
Slide 13: Key project parameters
Key project parameters Total capital expenditure (life of project) US$bn 30 3.0 Initial capital expenditure (first 5 years) US$bn 1.5 Total sales volumes Mt 435 Product mix (semi-soft:thermal) 20:80 Mine life Years 34 Peak production/sales Mtpa 15 First coal Year 3 Full production Year 7 Life of pro
Slide 14: Resource Statement
Resource Statement Upper Seam Mt Main Seam Mt Lower Seam Mt Base Seam Mt Total Mt Measured 51 237 288 Indicated 62 124 39 19 244 Inferred 12 28 40 Total 125 389 39 19 572 Notes: 1. Results based on Geological Model submitted in July 2005 2. Table compiled from data contained in Phulbari Coal Project
Slide 15: Phulbari High Quality Thermal Coal
Phulbari High Quality Thermal Coal Typical specification Market preference Phulbari Hunter Valley Specific energy, gross Kcal/kg >6300 6930 6800 Total moisture (% as received) <15.0 8.5 9.0 Ash (%) <16 0 <16.0 12 0 12.0 13 5 13.5 Fixed carbon (%) >45.0 54.2 50.5 Sulphur (%) <1.0 0.80 0.55 15
Slide 16: Phulbari Low Ash Metallurgical Coal
Phulbari Low Ash Metallurgical Coal Typical specification Market preference Phulbari Hunter Valley Specific energy, gross Kcal/kg >6800 7420 7200 Total moisture (% as received) <12.0 10.0 9.0 Ash (%) <11 0 <11.0 68 6.8 95 9.5 Fixed carbon (%) >50.0 56.7 54.2 Sulphur (%) <1.0 0.75 0.55 16
Slide 17: Coal sales by type
Coal sales by type 18 16 14 SEMI-SOFT COKING COAL 12 ODUCTION nes / year 10 DOMESTIC INDUSTRIAL THERMAL COAL COAL PRO M Tonn 8 6 HIGH QUALITY THERMAL COAL 4 2 0 0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32 34 Year 17
Slide 18: Valuable co-products
Valuable co-products Construction Sand Kaolin – China Clay Ceramics Clay Bricks and Pottery Construction Sand Gravel/Boulders/Aggregate Construction Rock Silica Sand Glass Hard Rock - Sandstone Hard Rock - Tillite Construction Rock Hard Rock - Granite Water also a co-product 18
Slide 19: Products from Phulbari Co-products
Products from Phulbari Co-products Pottery Glass wares Ceramic products from clay from silica sand from kaolin Bricks from brick clay Concrete blocks from aggregates Water 19
Slide 20: Benefits of Phulbari Project
Benefits of Phulbari Project • Energy gy Security y – Fastest and most reliable route to a new domestic source of electricity • Huge economic impact – US$7 billion Government earnings from tax, royalties and service charges – US$21 billion contribution to GDP over Project life – US$250 million annua
Slide 21: Benefits of Phulbari Project
Benefits of Phulbari Project • Socio-economic development and environmental benefits – Modern, planned new town – improved power, water, sanitation – Significant health and environmental benefits – replaces low quality imported coal – Large direct and indirect employment opportunities – estimated 17
Slide 22: Current Commercial Energy Sector
Current Commercial Energy Sector • Currently highly dependent on gas Current sources of Bangladesh • Proven recoverable reserves of gas (8.5 TCF) electricity – Not sufficient to support required growth Oil Coal 6% – P Prospectivity ti it high hi h b butt d development l t off new fi field ld H d 4%
Slide 23: Project History
Project History 1994 BHP signs licensing/investment agreement with BNP Gov’t of Bangladesh (GoB) 1994-1997 BHP confirms presence of coal deposit with inferred resource of 387 million tonnes Contract assigned to Asia Energy Corporation (Bangladesh) Pty Ltd by Awami League 1998 GoB 2000 Pre-feasibilit
Slide 24: Political Situation
Political Situation • Governed by Caretaker Governments for two years under a state of emergency – BNP Government hands over to Caretaker Government on 28th October 2006 – President steps down and a state of emergency declared 11th January 2007 – New Chief Advisor and Caretaker Government appointed
Slide 25: Community and Social Responsibility
Community and Social Responsibility • All ‘project affected persons’ will ill be fairly fairl compensated • People will enjoy access to improved utilities – Sanitation – Energy – Reliable and abundant water supply • Town • Village • Irrigation • Improved agricultural production • Environmental and s
Slide 26: Resettlement Phases
Resettlement Phases Phase 1 Phase 2A Phase 4 Phase 3 Phase 5 Phase 2B Phase 6 Total 9,160 households (40,304 persons) over 10 years Phase 1 (753 housholds/3,313 people) Phase 2A,2B (6,655 households/16,082 people) 26
Slide 27: Coal is one element of a large project
Coal is one element of a large project • The Phulbari Energy Development Project comprises the following sub-projects: – The Phulbari Coal Project – 2,000 MW mine mouth power plant – 400 kw transmission lines connecting the power station to Khulna, Dhaka, and other major load centres – Railway lines
Slide 28: Proven management team
Proven management team • Gerard Holden (Non-executive Chairman) – Former Global Head of Mining and Metals at Barclays Capital • Steve Bywater (Chief Executive) – Former Chief Operating Officer for Rio Tinto Coal Australia (7 mines producing 60Mt per annum) – Previous experience includes Robe River M
Slide 29: Phulbari Summary
Phulbari Summary • A world class undeveloped coal project • Located close to consumers • Can provide a solution for Bangladesh power requirements 29
Slide 30: GCM Resources
GCM Resources q) GEM RCES 30