Slide 1: Whitehaven Coal Limited Full Year 2012 Results
Whitehaven Coal Limited Full Year 2012 Results Sydney, Australia 24 August 2012
Slide 2: Disclaimer
Disclaimer Statements contained in this material, particularly those regarding the possible or assumed future performance, costs, dividends, returns, production levels or rates, prices, reserves, potential growth of Whitehaven Coal Limited, industry growth or other trend projections and any estimate
Slide 3: Financial highlights - FY 2012
Financial highlights - FY 2012 ► Net profit after tax (NPAT) of $62.5 million1 ► Underlying NPAT (excluding Significant Items) of $57.8 million ► Final Dividend of 3.0 cents per share fully franked, record date 17th September, payment date 30th September ► Average cash cost of sales per tonne up to
Slide 4: Financial highlights – Significant Items
Financial highlights – Significant Items $M ► Gain on sale of Maules Creek JV interest 116.2 ► Due diligence and transaction costs (41.4) ► Loss related to legacy contracts (29.4) ► Acquisition accounting adjustment for fair value of Boardwalk Resources (119.8) ► Recognition of MRRT benefit 101.5 ►
Slide 5: Operating highlights - FY 2012
Operating highlights - FY 2012 ► Safety and environmental performance very good across Whitehaven's operations, with a range of initiatives put in place to promote continuous improvement ► Overburden removal quantity as planned for the year, but coal production adversely affected by closure of the O
Slide 6: Business development highlights - FY 2012
Business development highlights - FY 2012 ► Completed the merger with Aston Resources and Boardwalk ► Completed the acquisition of Coalworks to further consolidate Whitehaven’s position in the Vickery and Ferndale projects ► Completed the sale of a 10% JV interest in the Maules Creek JV to J-Power f
Slide 7: Full year coal sales – FY 2012
Full year coal sales – FY 2012 Equity Basis – 000t FY 2011 FY 2012 Change Gunnedah Operations 4,210 3,865 -8% Werris Creek 1,777 1,407 -21% Narrabri 139 261 +88% Whitehaven Total 6,126 5,532 -10% 100% Basis – 000t FY 2011 2012 Change Gunnedah Operations 4,671 4,361 -7% Werris Creek 1,777 1,407 -21%
Slide 8: Saleable coal production – FY 2012
Saleable coal production – FY 2012 Equity Basis – 000t FY 2011 FY 2012 Change Gunnedah Operations 2,303 2,662 +16% Werris Creek 1,722 1,343 -22% Narrabri 143 270 +88% Whitehaven Total 4,168 4,275 +3% 100% Basis – 000t FY 2011 FY 2012 Change Gunnedah Operations 2,761 3,170 +15% Werris Creek 1,722 1,3
Slide 9: Full year profitability – FY 2012
Full year profitability – FY 2012 Reported Financial Performance - A$ millions FY 2011 FY 2012 Revenue 622.2 618.1 NPAT before Significant Items 73.3 57.8 NPAT 9.9 62.5 Earnings per share (cents per share - diluted) 2.0 10.9 Final dividend (cents per share - fully franked) 4.1 3.0 Underlying Financi
Slide 10: Full year cash costs up, due mainly to flood and other production impacts
Full year cash costs up, due mainly to flood and other production impacts and underutilised TOP A$/t FOB FY 2011 FY 2012 Coal Sales - 000t (equity basis, excl. purchased coal) 4,243 4,290 Average revenue - (excl. purchased coal & net of NSW royalties) 103.00 104.55 Average cash cost of sales 60.49 6
Slide 11: Cash flow – FY 2012
Cash flow – FY 2012 A$ millions FY 2011 FY 2012 EBITDA pre-significant items 148.0 149.2 Cash impact of significant items in operating cash flows (61.3) (34.4) Movement in working capital1 33.6 (112.3) Cash (used in)/generated from operations 120.3 2.5 Cash paid in respect of transaction costs (in r
Slide 12: 30 June financial position
30 June financial position A$ millions June 30 - 2011 June 30 – 2012 Cash 207.6 513.6 Current receivables 92.4 70.2 Other current assets 162.3 158.3 Current assets 462.3 742.1 Non-current receivables 2.7 11.1 Other non-current assets 997.4 3,568.4 Total assets 1,462.4 4,321.6 Current payables 154.3
Slide 13: Full year capex – FY 2012
Full year capex – FY 2012 Capital Investment - $ million 2011 2012 Tarrawonga 1 2.3 1.6 Werris Creek 8.3 9.4 Rocglen 2.4 0.9 Sunnyside 1.9 0.3 Gunnedah CHPP 16.4 2.8 Total Open-cuts 1 31.3 15.0 Narrabri (including capitalised development costs) 1 166.0 181.3 Maules Creek 1 - 20.2 New coal train 3.7
Slide 14: Fixed price coal contracts and fixed FX status
Fixed price coal contracts and fixed FX status ► Whitehaven has a total FX fixed position of US$154.7m at an average exchange rate of 0.9634 US$:A$ as at 30 June 2012 ► All of FY 2013 fixed price sales are covered by FX contracts at ~0.96 A$/US$ FY2013 – 1H FY2013 – 2H TOTAL 000 t US$/t 000 t US$/t
Slide 15: Narrabri fully operational, all infrastructure in place
Narrabri fully operational, all infrastructure in place ► Gas drainage well ahead of development, residual gas content low, no issues for LW ► Roof caving very well, however still operating in pre-conditioned area ► Caving of roof coal looks positive for Top Coal Caving (TCC), but still early days 1
Slide 16: Longwall installed and operating
Longwall installed and operating ► Engineering teething problems being resolved – e.g. shearer set-up and picks ► Main issues to resolve are automation and hi-pressure leg valves ► Operator skills improving and CAT/Bucyrus supporting until LW reaches design performance 15 FY 2012 Annual Results - Au
Slide 17: Longwall ramping up after slow start
Longwall ramping up after slow start ► Current 6 Mtpa target based on 65 cutting hours per week ► Industry best practice is ~90 hours per week, stretching to 100 ► Narrabri has UG coal handling capacity and is approved to 8 Mtpa ► Upgrade to Stage 1 thermal coal crushing system underway to give addi
Slide 18: Maules Creek still awaiting Government approvals
Maules Creek still awaiting Government approvals ► Maules Creek project registered with NSW Government in August 2010 ► Environmental Assessment completed and lodged in February 2011 ► Aston expected assessment to be completed and approved by end 2011, based on previous operation of NSW planning sys
Slide 19: Maules Creek one of the best global coal projects
Maules Creek one of the best global coal projects ► Economics of Maules Creek are compelling • Competitive capital development costs • Low stripping ratio • High yield (80-90%) of excellent quality SSCC and/or thermal coals • Very competitive cost structure against global competitors ► Joint Venture
Slide 20: Merger has broadened tenement holdings and consolidated Gunnedah Basin holdings
Merger has broadened tenement holdings and consolidated Gunnedah Basin holdings 19 FY 2012 Annual Results - August 24, 2012
Slide 21: Gunnedah Basin has sustainable competitive advantages
Gunnedah Basin has sustainable competitive advantages Large reserves of ► Low ash excellent quality ► Low sulphur coals ► Low phosphorus ► High energy (Updated JORC statement issued 24th ► Coking properties August 2012) ► Favourable ash and trace element chemistry ► Flexibility to produce premium pr
Slide 22: Competitive cost structure in global metallurgical coal
Competitive cost structure in global metallurgical coal Global seaborne metallurgical coal - C1 cash cost curve1 2012 (US$/FOB Nominal) 180 160 140 RoW 120 C1 Cash Costs (US$/t) Vietnam USA 100 South Africa N T V Russia 80 M Indonesia V N T M Canada 60 Australia 40 20 - 0 50 100 150 200 250 300 Prod
Slide 23: Competitive cost structure in global thermal coal
Competitive cost structure in global thermal coal Global seaborne thermal coal - C1 cash cost curve1 2012, Energy adjusted4 (US$/FOB Nominal) 140 120 100 RoW C1 Cash Costs (US$/t) Vietnam - Energy Adjusted 80 N USA South Africa W N Russia 60 Indonesia W Colombia Australia 40 20 - 0 50 100 150 200 25
Slide 24: Will be a major supplier of semi-soft coking coal
Will be a major supplier of semi-soft coking coal Comments Potential saleable production mix (Mt, 100% basis) ► Metallurgical coal can grow to be up to ~60% Metallurgical coal 23% of managed saleable production by FY2018, Metallurgical coal subject to market opportunity Thermal coal 40% 60% Thermal
Slide 25: Substantial near-term production growth from Narrabri and Maules Creek
Substantial near-term production growth from Narrabri and Maules Creek Planned saleable coal production - Mt 5 Note: Data shown for the year ending 30 June. These estimates relate to planned future events and expectations and as such, involve known and unknown risks and uncertainties. The actual pro
Slide 26: Infrastructure available to support planned growth
Infrastructure available to support planned growth Comments Port capacity and export coal sales (Mt, 100% basis)1 Strategic 11% shareholdings in Newcastle Coal Infrastructure Group Medium to longer term capacity gaps to be secured b accessing surplus capacity from 21 other producers, plus additi
Slide 27: Diversified project risk profile provides numerous options for further growth
Diversified project risk profile provides numerous options for further growth ► Diversified, attractive portfolio of producing, development and exploration coal assets ► Stable cashflows from existing open cut operations ► Substantial growth in future cashflows from the ramp up of Narrabri and devel
Slide 28: Market Outlook
Market Outlook ► Underlying demand growth trend in key coal markets is very positive (China, India), but economic slowdown and supply increases have reduced prices over the last 6 months ► Metallurgical coal demand growth has weakened and prices have fallen significantly. Current contract prices (Se
Slide 29: Whitehaven's response
Whitehaven’s response ► Core growth plans proceeding (~$700 million in capex) ► Maules Creek development $575 million (75%) ► Tarrawonga upgrade $100 million (70%) ► Werris Creek upgrade $25 million (100%) ► Whitehaven’s balance sheet is lightly geared with zero net debt ► Current debt facilities of
Slide 30: Thank you Any questions?
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