Cokal Limited · ASX:CKA
Cokal — Investor Presentation (November 2012)
33 slides from Cokal's investor presentation, Nov 6, 2012
Slide 1: Investor Presentation November 2012
For personal use only Investor Presentation November 2012
Slide 2: Disclaimer
DISCLAIMER This presentation has been prepared by the management of Cokal Limited (the Company) in connection with meetings with institutional investors, for the benefit of brokers and analysts and not as specific advice to any particular party or person. The information is based on publicly availab
Slide 3: Outline
OUTLINE For personal use only Corporate Overview BBM Project Description - Priority Development Other Company Activity Community Development 3
Slide 4: Our Focus
OUR FOCUS For personal use only Building A Global Metallurgical Coal Business Positive and Agile Decision Making Respect for all Stakeholders Ethical Decision Making Technical Skills for Innovative Solutions Results Orientated 4
Slide 5: Strong Board - Coal Pedigree
STRONG BOARD COAL PEDIGREE For personal use only Peter Lynch - Executive Chairman, Mining Engineer, 25 years experience in mining; MIM, Shell Coal, MacArthur Coal, Open Cut & Underground, TSX and ASX:WCI. Pat Hanna - Executive Director, Geologist, over 30 years experience all coal; Globally consulti
Slide 6: Diverse and Experienced Management
DIVERSE AND EXPERIENCED MANAGEMENT For personal use only Duncan Cornish – Joint Company Secretary, Chartered Accountant, Ernst & Young and PWC; Successful IPO and RTO record on ASX, TSX and AIM listed companies including TSX – WCI, WCB; AIM – SLG; ASX–DGR, PGM, MET, BOW, WCI, SA, SMR. Chris Turvey –
Slide 7: Executive Summary
EXECUTIVE SUMMARY For personal use only Cokal Limited (CKA) COKAL CAPITAL • Listed on the ASX in December 2010 STRUCTURE • Developing Metallurgical Coal Projects in Central Kalimantan ASX Code CKA • Objective: Metallurgical coal producer by H1 2014 Shares on Issue 411M Options on Issue 30M Bumi Bari
Slide 8: Project Locations - Indonesia
PROJECT LOCATIONS – INDONESIA For personal use only 8
Slide 9: BBM & BBP Tenements - Indonesia
BBM & BBP TENEMENTS – INDONESIA For personal use only 9
Slide 10: BBM Priority Project Investment Highlights
BBM PRIORITY PROJECT For personal use only INVESTMENT HIGHLIGHTS High quality coking coal with significant upside potential Near term production Low cash operating cost Flexible development plans – low capital requirement Advantageous export location – close to markets Experienced Manage
Slide 11: BBM Project Timeline
BBM PROJECT TIMELINE For personal use only Stage 2 is an aspirational plan. There is insufficient Resource to support this plan at present. Current logistics planning takes into account possible expansion at a time when Studies and data support such an expansion plan. 11
Slide 12: Initial Development Study Outcomes
INITIAL DEVELOPMENT STUDY OUTCOMES For personal use only Stage 1: Real NPV of $US497M (100% Project) • Stand-alone Development Study at ASSET DESCRIPTION BBM recently completed by SMEC Project BBM, Central Kalimantan, Indonesia • Capable of rapid expansion (Stage 2) JORC Resources 77Mt (70Mt Inferre
Slide 13: Mine Costs
MINE COSTS For personal use only US$ Operating Cost Development Capital US$/t Avg (Million) (excluding 7% Royalty) Stage 1: Direct ship to start production 50 Stage 1: Direct ship to start production 72.17 - Ramp up to 2Mtpa 50 - Average first 5 years 67.84 TOTAL 100 Stage 1 Stand-alone case (LOM) 8
Slide 14: BBM Approvals
BBM APPROVALS For personal use only Current Approvals IUP (Exploration), on ‘Clean & Clear’ List PT BBM approved Foreign Owned company (PMA status) Cokal Shareholding of PT BBM approved by BKPM (Central Government Foreign Investment Co-ordination Board) Exploration Forestry Permit (IPPKH Izi
Slide 15: On the Doorstep of the Biggest Met Coal Markets
ON THE DOORSTEP OF THE BIGGEST MET COAL MARKETS For personal use only Fastest and lowest cost shipping to key customers Dalandzangad Mongolia Coos Bay United S. Korea Japan Seoul China Seoul Tokyo States Shanghai India Guangzhou Mumbai Mumbai Mumbai Mumbai Vietnam China
Slide 16: Developing a New Coking Coal Province
DEVELOPING A NEW COKING COAL PROVINCE For personal use only Indonesian Coal Reserves 16
Slide 17: BBM - 77Mt Indicated and Inferred Resource
BBM – 77MT INDICATED AND INFERRED RESOURCE For personal use only Resources by Seam Resources by Depth Seam Indicated Inferred Total Indicated Inferred Total Seam Depth Range Thickness Resources Resources Resources Resources Resources Resources Name (m) (m) (Mt) (Mt) (Mt) (Mt) (Mt) (Mt) J 1.40 7.0 10
Slide 18: BBM - Premium Quality Coking and PCI Coal
BBM - PREMIUM QUALITY COKING AND PCI COAL For personal use only Coal Quality of B, C and D Seams Low insitu-ash Seam Product Inherent Moisture Ash Volatile Matter Fixed Carbon Total Sulphur Calorific Value CSN Relative Density Phos- phorus allows direct D PCI 0.9 5.1 10.3 83.7 0.43 8,204 1.5 1.36
Slide 19: BBM - Potential to Increase Resource Size
BBM – POTENTIAL TO INCREASE RESOURCE SIZE For personal use only Exploration Target1 of 200 – 350Mt down to 200m depth. This potential is in addition to the current 77Mt JORC Indicated and Inferred Resources Comprised of 13 Seams in the Eastern Block of BBM (40% of the tenement area) 19
Slide 20: Planned Mining Operations
PLANNED MINING OPERATIONS For personal use only • Seams Outcrop on the surface • Significant length of outcrop • J seam ~ 1.4m thick • In-pit sizing / screening • Truck / Excavator operation • Contractor operated • Direct Ship from Pit to Jetty 20
Slide 21: Infrastructure and Transport
INFRASTRUCTURE and TRANSPORT For personal use only Coal to be transported in three phases, accounting for approximately 774km from the mine site to the Java Sea 55km haul road from mine to the Barito River 500km down the Barito River to the Intermediate Stockpile Port at Kelanis Ocean-going ba
Slide 22: Truck Haulage
TRUCK HAULAGE For personal use only • 55km road route, 2 studies done • Detail work underway • Maximum grade planned @ 8% • All weather surface • 120t per truck planned • Dual trailer, side tipping proposal • Ease of loading, unloading, reliability • Excellent balance of operating and capital costs
Slide 23: Barge Loading
BARGE LOADING For personal use only • Plan for direct load from trucks to barges • Spare barges enable efficient system • Stockpiling capability • Front End Loader hoppers for re- loading from stockpile • Low capital, low operating cost • Minimises coal degradation 23
Slide 24: Shallow Draft Barges
SHALLOW DRAFT BARGES For personal use only • River designed barge system for safe, reliable and economic transport • Indonesian system currently uses towed ocean going barges • Mississippi style allows flexibility, for manoeuvring and cargo sizes Indonesian Style Towed Barge USA: 40,000 km of rivers
Slide 25: Shallow Draft Barges
SHALLOW DRAFT BARGES For personal use only • Stage 1 – 6,000t convoys (4 x 1,500t barges) – 500km • Shallow draft: down to 2.3m water level • 3 Studies completed • Full bathymetric survey of river • Daily river height data for over 10 years used • 6 tugs and barge sets for 2Mtpa Tug and 4 Barge Conv
Slide 26: Deep Water Barge to Shiploader
DEEP WATER BARGE TO SHIPLOADER For personal use only • Deep water barges to Floating crane in Java Sea • 12,000t now common (matches 2 x 6,000t upper river shallow barge convoys) • Matches common ship hatch size • Many Barge operators at this point • Many Floating crane operators offshore • Low cost
Slide 27: BBM Project Conclusions
BBM PROJECT CONCLUSIONS For personal use only • High quality coking product • Low operating cost • Low capital investment required • Good margin and quick payback • Early production • Geographically well positioned • Potential for expansion • Experienced Executive team 27
Slide 28: Other Tenements
OTHER TENEMENTS Central Kalimantan, INDONESIA For personal use only BBP – 60/40 with local owner, PMA company ownership structure. 13k ha directly adjacent to BHP, Maruwai. Has bright coal seam outcrops, laboratory tests indicate low in-situ ash, low sulphur, ultra-low phosphorous and high energy
Slide 29: Developing Infrastructure
DEVELOPING INFRASTRUCTURE For personal use only • Two river ports and two coal-fired power stations to facilitate metallurgical coal production • Working together for mutual benefit with the Murung Raya Regency • CSR program on education and training, employment and local infrastructure development
Slide 30: Corporate Social Responsibility
CORPORATE SOCIAL RESPONSIBILITY For personal use only • Assisted with materials and labour to make repairs to the local school • Provided medical support to the community; arranging an ophthalmologist to run a free clinic • Co-operative business which employs local people to assist Cokal with logist
Slide 31: Project Location - West Kalimantan
PROJECT LOCATION West Kalimantan, INDONESIA For personal use only • Cokal 75.2% interest in PT Silangkop Nusa Raya (SNR) • Three IUPs in Singtang Regency, West Kalimantan covers an area of 13,000 hectares • Outcrop samples show high volatile, low ash, moderate sulphur and low phosphorus coking coal
Slide 32: Market Capitalisation
MARKET CAPITALISATION For personal use only Million Dollars A$ Coal Companies $913 $260 $195 $158 $158 $72 $61 $56 $45 BORN.JK CZA.AX BTU.AX COK.AX NCR.AX CKA.AX AFR.AX CLR.AX TIG.AX As at 24 October 2012 32
Slide 33: Summary
SUMMARY For personal use only Executive Team with strong track record High Margin Metallurgical Coal confirmed Assets with Good Potential BBM Project is well positioned to be in production H1 2014, with significant upside potential Plans to develop the portfolio Plans for becoming Signif