Whitehaven Coal Limited · ASX:WHC
Whitehaven Coal — Investor Presentation (May 2009)
28 slides from Whitehaven Coal's investor presentation, May 12, 2009
Slide 1: Whitehaven Coal Limited: Delivering Growth
Whitehaven Coal Limited Delivering Growth Presentation to Investors – Wilson HTM May 12, 2009
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: Contents
Contents • A snapshot • Status of growth plans • WHC Outlook • The merger with Gloucester Coal – Why the WHC/GCL merger is superior Presentation to Investors - Wilson HTM - May 12, 2009 2
Slide 4: A snapshot
A snapshot ASX listed company “WHC”; market capitalisation ~A$850 million Large coal resources in the Gunnedah Basin (refer ASX release 10th March 2009) Superior coal quality: PCI + low-ash, low-sulphur, high energy thermal coals First mover and major coal producer/developer in the Gunnedah Basin Sa
Slide 5: Experienced managers/owners
Experienced managers/owners Director/Title Experience John Conde AO +30 years commercial experience Directors have extensive Non-Executive Chairman coal industry experience. Neil Chatfield +25 years in transport and resources Non-Executive Director industries Directors are proven mine developers and
Slide 6: Strong financial position
Strong financial position A$ millions 30 June 2008 31 December 2008 Cash 80.8 76.6 Current receivables 49.0 172.4 Other current assets 59.2 53.1 Non-current receivables 27.2 157.0 Other non-current assets 407.1 462.7 Total assets 623.3 921.8 Payables 37.9 40.2 Tax payable 10.1 85.9 Interest bearing
Slide 7: Whitehaven is the leading coal producer and developer in the Gunnedah Basin
Whitehaven is the leading coal producer and developer in the Gunnedah Basin ! "# $ $ " ! % # &' ( ! " ) Presentation to Investors - Wilson HTM - May 12, 2009 6
Slide 8: Whitehaven has a solid, low-risk, existing OC business with up to 5 Mtpa saleable capacity
Whitehaven has a solid, low-risk, existing OC business with up to 5 Mtpa saleable capacity Gunnedah Operations - OC Mines Gunnedah Operations CHPP (WHC 100%) Tarrawonga Mine (WHC 70%) Permitted to handle and rail 4.0 Mtpa Resources to support 15 – 20 year LOM Handles all coal from Tarrawonga, Permit
Slide 9: Gunnedah operations - Tarrawonga mine
Gunnedah operations - Tarrawonga mine Presentation to Investors - Wilson HTM - May 12, 2009 8
Slide 10: Gunnedah operations – CHPP and rail loader
Gunnedah operations – CHPP and rail loader Presentation to Investors - Wilson HTM - May 12, 2009 9
Slide 11: Werris Creek mine
Werris Creek mine Presentation to Investors - Wilson HTM - May 12, 2009 10
Slide 12: Contents
Contents • A snapshot • Status of growth plans • WHC Outlook • The merger with Gloucester Coal – Why the WHC/GCL merger is superior Presentation to Investors - Wilson HTM - May 12, 2009 11
Slide 13: Whitehaven has substantial, near-term growth with Narrabri UG - Stage 1 construction on track
Whitehaven has substantial, near-term growth with Narrabri UG - Stage 1 construction on track Highway Upgrade Access Road Water Management Rail Loop 3.6 km Industrial Area Box Cut Presentation to Investors - Wilson HTM - May 12, 2009 12
Slide 14: Existing low-risk OC production base with substantial organic growth from Narrabri UG
Existing low-risk OC production base with substantial organic growth from Narrabri UG Four OC mines in production (Canyon to close in 2009) Saleable production capacity *# from OCs up to 5Mtpa # Narrabri Stage 1 under Thousand tonnes construction, first coal in Q4 -# 2009 ,# WHC has invested in rail
Slide 15: Funding the Whitehaven growth profile
Funding the Whitehaven growth profile NARRABRI NORTH UNDERGROUND MINE - DEVELOPMENT CAPITAL ESTIMATE 1. A$ millions FY 2010 FY 2011 Total Stage 1 – Remaining to Invest 50 0 50 Stage 2 – Current Estimate 165 135 300 Total Narrabri North (100%) 215 135 350 Whitehaven's 77.5% Share 167 105 271 PLANNED
Slide 16: WHC growth profile is being coordinated with infrastructure development
WHC growth profile is being coordinated with infrastructure development Presentation to Investors - Wilson HTM - May 12, 2009 15
Slide 17: Rail infrastructure to meet Whitehaven growth
Rail infrastructure to meet Whitehaven growth Whitehaven (60%) and Idemitsu (40%) have sponsored ARTC investment to increase rail track capacity (Stages 1, 2 and 3) Current track capacity is 6-7 train paths per day to Gunnedah 5,400 tonne trains give capacity of 11-12 Mtpa between Whitehaven and Ide
Slide 18: Port infrastructure to meet Whitehaven growth
Port infrastructure to meet Whitehaven growth Existing PWCS Terminal Ongoing capacity constraints at PWCS PWCS has expansion plans to 145 Mtpa Newcastle Coal Infrastructure Group (“NCIG”) Whitehaven owns 11% of NCIG....Stage 1 due to be commissioned in Q1 2010 Stage 1 capacity of 30 Mtpa due to be a
Slide 19: Port capacity may limit WHC growth rate
Port capacity may limit WHC growth rate *# # Thousand tonnes -# ( ) ,# +# *# ' ( . FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 1. These estimates relate to planned future events and expectations and as such involve known and unknown risks and uncertainties. Please refer to Disclaimer Presentation to I
Slide 20: Contents
Contents • A snapshot • Status of growth plans • WHC Outlook • The merger with Gloucester Coal – Why the WHC/GCL merger is superior Presentation to Investors - Wilson HTM - May 12, 2009 19
Slide 21: Coal market conditions
Coal market conditions Demand – Cyclical slowdown, but structural uptrend • Global demand for thermal coal remains strong, but demand for export coking coal is weak • China currently importing much larger tonnages of Australian thermal coal, India following Supply – Constrained by infrastructure, ge
Slide 22: Whitehaven’s response
Whitehaven’s response Advantages of high quality coal & flexibility in production from existing OC mines Our forward coal sales contracts support WHC’s growth profile Our matrix of coal sales contracts & commitments minimises production and infrastructure risks A$ forward currency contracts support
Slide 23: Looking ahead
Looking ahead Strong fundamental growth in demand for coal remains (especially thermal coal) Whitehaven is well positioned Large resources and reserves of high quality coal Efficient, flexible OC mines, competitive costs Narrabri UG construction progressing well Increased rail and port capacity with
Slide 24: Near and medium term objectives
Near and medium term objectives Grow earnings and dividends per share, maintain financial stability and create shareholder value Continue to manage existing OC operations efficiently Deliver Narrabri on time and budget Active exploration within Gunnedah lease/EL areas Increase coal reserves and exte
Slide 25: Contents
Contents • A snapshot • Status of growth plans • WHC Outlook • The merger with Gloucester Coal – Why the WHC/GCL merger is superior Presentation to Investors - Wilson HTM - May 12, 2009 24
Slide 26: Merger with Gloucester Coal
Merger with Gloucester Coal Creation of a major Australian coal company with increased scale and enhanced financial strength Increased scale : market capitalisation, production, embedded growth potential, resources and reserves Enhanced financial strength: strong financial platform from which to gro
Slide 27: Gloucester shareholders will be rewarded from the merger
Note: 1. The reduction in the value of Narrabri is offset partially as the lower production opens up port capacity for the other Whitehaven mines and allows them to sell more coal in the short-term Gloucester shareholders will be rewarded from the merger WHC’s current share price does not reflect th
Slide 28: Gloucester shareholders will be rewarded from the merger
Note: 1. The reduction in the value of Narrabri is offset partially as the lower production opens up port capacity for the other Whitehaven mines and allows them to sell more coal in the short-terms Note: 1. The reduction in the value of Narrabri is offset partially as the lower production opens up