Whitehaven Coal Limited · ASX:WHC
Whitehaven Coal — 2020 Global Metals, Mining and Steel Conference
24 slides from Whitehaven Coal's conference presentation, May 14, 2020
Slide 1: Whitehaven Coal
Whitehaven Coal (WHC:ASX) 2020 Global Metals, Mining and Steel Conference (virtual) 12 -14 May 2020
Slide 2: Disclosure
Disclosure FORWARD LOOKING STATEMENTS 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 P
Slide 3: Who is Whitehaven Coal?
Who is Whitehaven Coal?
Slide 4: Whitehaven Coal is the leading Australian producer of premium-quality coal
Whitehaven Coal is the leading Australian producer of premium-quality coal, and the dominant player in Australia’s only emerging high-quality coal basin. We help power developed and emerging economies in Asia where there is strong and growing demand for our product, particularly for use in high- eff
Slide 5: Whitehaven: Producer of high quality coals for the premium Asian market
Whitehaven Producer of high quality coals for the premium Asian market Key Details ASX Code and Market Details WHC 1,026m shares on issue, 12mth average daily volume 8.6m; Market Cap A$1.8b Operations Narrabri U/G mine, Maules Creek, Tarrawonga, Werris Creek open cut mines ROM Coal Production ~20Mt
Slide 6: A decade-long journey so far
A decade-long journey so far ROM coal ROMproduction and workforce coal production and workforce Record ROM coal 25,000 production of 23.1 mt 2,500 20,000 2,000 production (kt) Record level of regional ROM coal 15,000 and operational employment 1,500 Workforce and safety 10,000 1,000 5,000 500 Longwa
Slide 7: Where we operate today and in the future
Where we operate today….& in the future Gunnedah Basin, NSW and expanding into the Bowen Basin, QLD • Four mines in the Gunnedah Basin producing high energy thermal coal and metallurgical coal • Coal railed to Newcastle for export with access to two coal terminals • Vickery Extension project near ot
Slide 8: Operating assets
Operating assets Whitehaven operates long life mines Approved Production Approximate Assets Limit LOM Underground • Work on the Stage 3 extension project is well advanced Narrabri 11Mtpa ROM >25 years • EIS expected to be lodged in Q1 FY21 • Mine ramping up to the approved level with AHS overburden
Slide 9: Whitehaven's market
Whitehaven’s market
Slide 10: Whitehaven's customer base is in Asia
Whitehaven’s customer base is in Asia • Whitehaven’s coal products 5 17 Japan are exported to Asia 2 4 Korea • Our coal products are used: 1 1 Taiwan 1) to fuel high efficiency, low India 2 emission electricity 1 1 Vietnam generation, 2) to make steel 1 Philippines and, 3) in other smelting Malaysia
Slide 11: COVID-19 Impact
COVID-19 IMPACT • gC Newcastle thermal coal pricing initially held up well through the March quarter, but falling input costs and COVID-19 restrictions saw pricing headwinds emerge in April • Strong support from end-user customers for premium thermal coal products, traders more cautious • Metallurgi
Slide 12: Electricity consumption driving thermal coal demand
Electricity consumption driving thermal coal demand High grade thermal coal demand outlook vs supply Global seaborne high grade thermal coal demand Global seaborne high grade thermal coal supply ( >5600 kcal/kg, NAR) ( >5600 kcal/kg, NAR) Asia Australia 600 CAGR 600 and Russia 2.2% CAGR 0.6% 500 500
Slide 13: Infrastructure and construction driving metallurgical coal demand
Infrastructure and construction driving metallurgical coal demand SSCC and PCI demand outlook Global Seaborne SSCC & PCI Coal Demand Global Seaborne SSCC & PCI Coal Supply 140 140 120 120 100 27 100 29 29 29 33 25 80 25 80 8 9 23 24 7 10 Mt Mt 21 21 10 9 60 15 17 13 60 13 13 40 15 17 19 20 21 21 40
Slide 14: Growth options
Growth options
Slide 15: Why grow?
Why grow? Growing Asian economies and their evolving environmental regulations are providing the opportunity for Whitehaven to…. • Range of metallurgical and thermal coal products Diversify • Operating jurisdictions • Export markets Securing sustainable returns for all Whitehaven • Premium product p
Slide 16: Growth options: brownfield and greenfield projects
Growth options Brownfield and greenfield projects provide Whitehaven with options to double its production in the medium term Assets Approved Production Approximate Limit LOM • Roll out of AHS and commencement of in-pit dumping Maules Creek 13Mtpa ROM >35 years • Mine potential to ramp-up to 16Mtpa
Slide 17: Our value proposition
Our value proposition
Slide 18: Whitehaven Coal's value proposition
Whitehaven Coal’s value proposition Whitehaven Coal’s value propositions is that we identify, develop and operate high-quality, cost-efficient, long life coal mines providing returns to shareholders, employees, customers and communities where we work and live. 18
Slide 19: Capital allocation
Capital allocation We balance prudent debt levels, shareholder returns and expansion 140 1,000 Strong thermal coal pricing – provided capital allocation optionality Senior bank facility net of cash A$m 900 120 800 gC Newc USD/t 100 700 80 600 500 60 400 40 300 200 20 100 - - Jun-14 Dec-14 Jun-15 Dec
Slide 20: Summary
Summary Whitehaven – a growth mining company • Whitehaven has brownfields and greenfields projects providing it with options to grow • Whitehaven’s growth is aligned with growing Asian demand for energy and construction materials • Whitehaven is a prudent capital manager that has returned A$1,100m t
Slide 21: Thank you
Thank you whitehavencoal.com.au
Slide 22: Appendices
Appendices
Slide 23: Resources
Resources Whitehaven Coal Limited – Coal Resources – August 2019 Measured + Indicated Tenement Measured Resource (A) Indicated Resource (B) Inferred Resource (C) Competent Person Report Date (A + B) CL375 AUTH346 Maules Creek Opencut* 382 174 556 44 1 Mar-19 ML1701 ML1719 Narrabri North ML1609 147 1
Slide 24: Reserves
Reserves Whitehaven Coal Limited – Coal Reserves – August 2019 Recoverable Reserves Marketable Reserves Report Competent Tenement Person Proved Probable Total Proved Probable Total Date Maules Creek CL375 AUTH346 340 120 460 310 100 410 1 Mar-19 Opencut* Narrabri North ML1609 102 5 107 98 4 102 2 Ma
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