Stanmore Resources Ltd · ASX:SMR
Stanmore Resources — Stanmore Coal — Sydney Resources Roundup 2014
20 slides from Stanmore Resources's conference presentation, May 13, 2014
Slide 1: Sydney Resources Roundup: Coal Market Update
For personal use only SYDNEY RESOURCES ROUNDUP Coal Market Update May 2014
Slide 2: Important Information
IMPORTANT INFORMATION For personal use only This document has been prepared by Stanmore Coal Limited (“Stanmore Although due care and attention has been used in the preparation of Competent Persons Statement: Coal”) for the purpose of providing a company and technical overview to forward looking sta
Slide 3: About Stanmore Coal
ABOUT STANMORE COAL For personal use only Queensland based coal Emerging coking coal Strong Board and Well funded with a strong development company producer at Belview management team with shareholder base proven track record of Listed in December 2009 Additional pipeline of No take or
Slide 4: Strong Board and Management Team
STRONG BOARD AND MANAGEMENT TEAM For personal use only Over 150 years of coal exploration, development and operational experience Neville Viv Stephen Chris Nick Doug Mike Sneddon Forbes Bizzell McAuliffe Jorss McAlpine McKee Non-exec Non-exec Non-exec Non-exec Managing Chief Chief Chairman Director
Slide 5: Located in Queensland's Premier Coal Basins
LOCATED IN QUEENSLAND’S PREMIER COAL BASINS For personal use only Emerging Bowen Basin coking coal producer at Belview Belview hosts high quality underground coking coal on existing rail line First coking coal exports planned from Belview in 2018 Pipeline of additional coal projects Lilyvale h
Slide 6: Belview Project
BELVIEW PROJECT For personal use only Significant coking coal project in the Bowen Basin 100% owned Substantial coking coal deposit in heart of the Bowen Basin – initial 322 Mt JORC Inferred Resource Infrastructure in place – located on existing Blackwater Rail Line to Gladstone Port Surrounde
Slide 7: Belview Project: Coal Quality
BELVIEW PROJECT For personal use only Primary Secondary Initial coal quality test results are very positive Parameter1 HCC PCI Product Product Product Split % 62 38 Initial coal testing from bore cores indicate that Belview will produce a Hard Coking Coal (“HCC”) primary product and a Inherent Moi
Slide 8: Lilyvale Project
LILYVALE PROJECT For personal use only Coking coal project The Lilyvale Project is targeting the German Creek seam which is mined as a prime coking coal at nearby operating mines: - Kestrel UG Longwall (Rio Tinto) - Crinum UG Longwall (BMA) Historical drilling results and knowledge of surroundin
Slide 9: The Range Project
THE RANGE PROJECT For personal use only Open cut, high energy, export grade thermal coal mine 100% owned Feasibility Study complete on 5 Mtpa open cut export thermal coal mine over 25 years High energy, low emission thermal coal sought after in Asia EIS completed and Mining Lease in process
Slide 10: The Range Project: High Energy Export Thermal Coal
THE RANGE PROJECT For personal use only High energy export thermal coal Quality Surat Comment Surat Basin coals are typically clean burning with good burnout Walloon characteristics and low nitrogen, ash and sulphur Coals Suitable for all key markets including Japan, China, Korea and India Low
Slide 11: Clifford Project
CLIFFORD PROJECT For personal use only Large exploration area with open cut potential Substantial exploration opportunities within the 1,161km2 Clifford Project Area Potential to host a substantial thermal coal deposit suitable for open cut mining Substantial synergies with the Range JOGMEC
Slide 12: Coal Market Outlook
For personal use only Coal market outlook 12
Slide 13: Where Are We in the Resources Cycle?
WHERE ARE WE IN THE RESOURCES CYCLE? Bottom of the cycle opportunity – long term outlook is strong For personal use only Cyclical lows Renewed focus on cost and productivity Coking and thermal coal are at their lowest levels since the GFC The majors continue to aggressively pursue cost reduction
Slide 14: Supply/Demand Outlook: Macro Factors Support Strong Coal Demand
SUPPLY/DEMAND OUTLOOK Macro factors support a strong coal demand Short term oversupply Seaborne thermal imports by country in Asia (Mt) For personal use only We anticipate that China will be back in the market shortly restocking thermal coal and metallurgical coal to support production activity
Slide 15: Supply/Demand Outlook: Current Low Price Environment Unsustainable
SUPPLY/DEMAND OUTLOOK Current low price environment is unsustainable For personal use only Cost curves suggest a pricing change is coming 40% of seaborne thermal coal and 45% of seaborne coking coal is estimated to be unprofitable at current pricing levels High cost producers who could operate m
Slide 16: Supply/Demand Outlook: China and India Demand Growth
SUPPLY/DEMAND OUTLOOK China and India will continue to grow coal demand strongly China Seaborne Thermal Coal Imports For personal use only Strong industrial and consumer driven growth Increases in energy consumption per capital for 2.5 billion people Source: ANZ economics in China and India alone
Slide 17: Supply/Demand Outlook: Strong Growth from SE Asia
SUPPLY/DEMAND OUTLOOK Strong growth and resources demand from SE Asia For personal use only Growing demand for energy in close proximity to Australia Strong evidence exists demonstrating that as incomes rise, demand ASEAN Gas Balance for resources increases – a trend evident in South East Asia G
Slide 18: Environmental Impact of Coal: Science versus Emotion
ENVIRONMENTAL IMPACT OF COAL Science versus emotion For personal use only Coking coal is a critical ingredient in the steel Burning high quality thermal coal will reduce the making process emission profile of emerging economies Around 0.5t of coking coal in each passenger vehicle Centralised ult
Slide 19: Environmental Impact of Coal: Science versus Emotion
ENVIRONMENTAL IMPACT OF COAL Science versus emotion For personal use only Coal will continue to play a dominant role in the global energy mix and will be a key contributor to alleviating poverty Coal will continue to be the cheapest, most efficient source of base load power for industrialised econ
Slide 20: Australian Coal Investment Thesis
AUSTRALIAN COAL INVESTMENT THESIS A counter-cyclical approach For personal use only Australia’s coal endowment means it remains well positioned to support Asian growth High quality low emission thermal coal High quality metallurgical coal to support steel making Freight advantage into Asia aga