High Peak Royalties Limited · ASX:HPR
High Peak Royalties — Shareholder Meeting (November 2015)
16 slides from High Peak Royalties's shareholder meeting presentation, Nov 30, 2015
Slide 1: HPR AGM Presentation
For personal use only HPR AGM PRESENTATION November 2015 1
Slide 2: Disclaimer
2 DISCLAIMER For personal use only This document has been prepared by High Peak Royalties Limited (“High Peak”) to provide a general overview of the company. Any statements, opinions, projections or other material contained in this document do not constitute any commitments, representations or warra
Slide 3: Investor Value Proposition
INVESTOR VALUE PROPOSITION 3 The royalty model is about investing in production and generating annuity income For personal use only from quality resource assets ● HOW DO WE DO THAT? 1. UTILISE A GROUP OF GLOBALLY CONNECTED, AND DIVERSELY SKILLED INDUSTRY VETERANS ON THE BOARD 2. UTILISE A ROYALTY ST
Slide 4: Investor Value Proposition - Current Activities
INVESTOR VALUE PROPOSITION - CURRENT ACTIVITIES 4 For personal use only The HPR portfolio royalty model…this is a superior way for an investor to approach the current resources market. FIND EVALUATE & FUNDING AND Solid Stable STRUCTURE EXECUTION Production Asset INVESTMENT Employ flexibility For Sal
Slide 5: Investor Value Proposition: Conditions Providing Opportunities
INVESTOR VALUE PROPOSITION CONDITIONS PROVIDING OPPORTUNITIES 5 ASX 200 12 months – volatility For personal use only impacting energy companies raising capital 12 months share prices for Cooper Basin Producers – i.e. growth needed for production companies US 10 year Bond Yield - Expectations Flat fo
Slide 6: Board Assists Significantly in Delivering Value
INVESTOR VALUE PROPOSITION BOARD ASSISTS SIGNIFICANTLY IN DELIVERING VALUE 6 For personal use only Deal flow, fast response DD, transaction support, governance, fundraising Non-Executive Chairman Non-Executive Deputy Chairman ● Wharton Finance MBA- extensive ● Lawyer with over 37 years international
Slide 7: Capital Structure
TODAY 7 CAPITAL STRUCTURE For personal use only Capital Structure Shares on Issue (ASX: HPR) 166.8m Market Capitalisation (@ 7c) $11.6m Cash (Sept app 5B) $2.25m Debt $0.0m Net Cash $2.25m Enterprise Value $9.35m Key Shareholders Board and Management 21.2% Noontide Investments Ltd 13.7%
Slide 8: Recent Key Events
RECENT KEY EVENTS 8 For personal use only <April 2014 – Merger of ASX Listed Torrens Energy Limited with unlisted Phoenix Oil and Gas Ltd – raised $6m @ 25c (incl. $2m from Chairman) April 2015 – 21.3m escrow shares released, 4.3m shares purchased by Directors, balance by institutional investor May
Slide 9: The Future: Value Drivers
THE FUTURE VALUE DRIVERS - indicative 9 For personal use only Surat LNG permits Possible Additions to the Royalty Portfolio STEP Underlying royalty base
Slide 10: Acquisition - STEP NZ$10m Case Study
ACQUSITION – STEP NZ$10m Case Study 10 For personal use only HPR not waiting for recovery in oil and equity markets…adding key assets RIGHT NOW FIND STRUCTURE EXECUTE Solid Stable Acquire 30% interest in the Create & retain Production asset with JV Partner a royalty, divest Asset Mosman Oil and Gas
Slide 11: STEP - The Rimu Production Station
STEP – THE RIMU PRODUCTION STATION 11 ● Supports RIMU, KAURI & MANUTAHI fields For personal use only ● 3 oil storage and loading facilities, – capacity 8,250bbls/day oil/condensate ● Gas processing & export pipelines – 24TJ/day gas; ● LPG processing, storage & loading ● 2 x 640kW gas fired power gen
Slide 12: STEP Strategy
STEP STRATEGY 12 ● Obtain non operated project interest of 30% For personal use only ● Mosman Oil and Gas operator and joint venture partner ● Phase 1: – Establish HPR NZ, complete acquisition – Mosman undertake 12 de-bottlenecking initiatives to lift production – Review data (incl. 3D seismic over
Slide 13: Royalty Locations and Project Operators
ROYALTY LOCATIONS AND PROJECT OPERATORS 13 For personal use only STEP NZ Mosman Oil and Gas * A detailed description of each royalty can be found on our website www.highpeak.com.au
Slide 14: Key Asset: QCLNG Permits
*****KEY ASSET****** QCLNG Permits 14 PL 171, ATP 574 2.5% Royalty Interest For personal use only SURAT BASIN (QLD) Royalty agreement Appraisal/ pilot production ~300TJ/ day through Woleebee Creek Infrastructure nearby Central Processing Plant (CPP) ~20km west of PL 171 QCLNG Train 2 HPR Per
Slide 15: HPR Portfolio Approach
15 HPR PORTFOLIO APPROACH For personal use only PRODUCTION •Focus today is here DEVELOPMENT •Capitalise on weak •QCLNG project market prices EXPLORATION •Material value to HPR •Addition of STEP project •Not the focus today •Large Investment by (little steps right now for QGC underway right the futur
Slide 16: Summary
SUMMARY 16 For personal use only ● VALUE PROPOSITION – Royalty model beneficial for investors – Current conditions favourable for deal flow – Company has potential large scale opportunity ● CURRENT SITUATION – Current activities and deal flow evidenced by STEP transaction – Ground floor opportunity
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