Stanmore Resources Ltd · ASX:SMR
Stanmore Resources — Investor Presentation (November 2021)
22 slides from Stanmore Resources's investor presentation, Nov 8, 2021
Slide 1: Acquisition of an 80% interest in BHP Mitsui Coal Pty Ltd (BMC)
DRAFT Acquisition of an 80% interest in BHP Mitsui Coal Pty Ltd (BMC) INVESTOR PRESENTATION 8 NOVEMBER 2021 0
Slide 2: Important Information
Important Information This presentation should be read in conjunction with the the extent prohibited by law, the Relevant Parties disclaim all accepting this document, the Recipient agrees that if it announcement “Stanmore Resources to Acquire BHP’s 80% liability that may otherwise arise due to any
Slide 3: Important Information
Important Information JORC Code Announcement by Stanmore on 4 November 2021 “Stanmore to that presented by BHP and a possibility that the JORC resources to Acquire BHP’s 80% interest in BMC”. Copies of Reserve metrics are different to that presented by BMC. The It is a requirement of the ASX Listing
Slide 4: 1. Transaction Overview
DRAFT 1. Transaction Overview
Slide 5: BMC represents a transformative acquisition for Stanmore
BMC represents a transformative acquisition for Stanmore Transaction Highlights Strategic Rationale Stanmore Resources Limited (“Stanmore” or the “Company”) (ASX:SMR) has signed a definitive share sale and purchase agreement with BHP Minerals Pty Acquisition creates a leading global metallurgical
Slide 6: Overview of BMC
Overview of BMC Asset Overview Asset Location North Queensland South South Walker Creek is an open‐cut coal mine Export Terminal Walker located approximately 35km west of Nebo in the Creek northern region of the Bowen Basin Collinsville It produces high quality, low volatile PCI coal for Mackay
Slide 7: Transaction summary
Transaction summary Transaction Structure Transaction Stanmore Resources Limited (“Stanmore”) has signed a definitive share purchase Overview agreement with BHP Minerals Pty Ltd (“BHP”) to acquire BHP’s 80% interest in BHP Mitsui Coal Pty Ltd (“BMC”) through the acquisition of all of the shares in
Slide 8: Transaction summary
Transaction summary Acquisition The Transaction is intended to be funded through a combination of: Uses of Funds US$m Funding A new US$625 million senior acquisition debt facility with a consortium of lenders. The facility will be secured against the Transaction Consideration1 1,200 shares in Da
Slide 9: 2. Investment Highlights
DRAFT 2. Investment Highlights
Slide 10: The Transaction will position Stanmore as a leading global metallurgical coal producer
The Transaction will position Stanmore as a leading global metallurgical coal producer 30 June 2021 Pro‐Forma Post Acquisition Metrics (100% Basis) 1 Marketable Metallurgical Coal Metallurgical Coal FY21 Saleable Reserves (Mt)2,4 Resources (Mt)3,4 Production (Mt) 180 2,800 10.6 43 554 1.9 SMR Pro Fo
Slide 11: The Transaction will position Stanmore among Australia's largest producers of metallurgical coal
The Transaction will position Stanmore among Australia’s largest producers of metallurgical coal Australian Recoverable Australian Australian FY21 Reserves (Mt, 100% Basis) 1,2 Resources (Mt, 100% Basis) 1,3 Production (Mt, 100% Basis) 1,4 3,281 5,000 11,311 64 40 1,000 4,500 900 35 4,000 800 30 3,5
Slide 12: Strong strategic acquisition rationale given proximity of BMC to Stanmore's existing assets
Strong strategic acquisition rationale given proximity of BMC to Stanmore’s existing assets Value Proposition and Upsides Location of BMC and Stanmore Assets The Transaction is consistent with Stanmore’s long‐term strategy to develop a competitive and substantial metallurgical coal portfolio in Qu
Slide 13: Poitrel and South Walker Creek are top tier coking coal assets low on the cost curve
Poitrel and South Walker Creek are top tier coking coal assets that sit low on the metallurgical cost curve Commentary Australian Metallurgical Coal C1 Cash Cost Curve (US$/t, 2022) 1 200 The BMC assets have attractive FOB cash costs, positioning Poitrel and South Walker Creek low on the Australia
Slide 14: Strong growth in global steel production expected to drive metallurgical coal demand
Strong growth in global steel production expected to drive growth in metallurgical coal demand Metallurgical coal market outlook Wood Mackenzie forecast metallurgical coal supply & demand 1 Metallurgical coal prices have hit new peaks in recent months as global Seaborne Demand Seaborne Supply indu
Slide 15: BMC historical operating & financial performance
BMC historical operating & financial performance1 Saleable Production (Mt) – 100% Basis Revenue (US$m) – 100% Basis 262 9.7 10.3 9.5 8.7 8.5 203 205 1,538 6.2 1,363 1,446 143 6.0 5.4 122 4.9 5.8 971 813 827 778 1,130 519 422 3.7 4.1 4.1 3.9 619 2.7 550 452 356 408 FY18 FY19 FY20 FY21 QE Sep‐21 FY18
Slide 16: South Walker Creek asset overview
South Walker Creek asset overview Asset Overview Key Metrics South Walker Creek is located approximately 35km west of Nebo and close Mine type Open pit to DBCT in the northern region of the Bowen Basin in Queensland Production 4.9Mtpa (FY21A) The mine has been operating since 1996 and produced 4
Slide 17: Poitrel asset overview
Poitrel asset overview Asset Overview Key Metrics Poitrel is an established and successful open‐cut coal mine with access to Mine type Open pit high quality infrastructure, producing a mix of HCC and PCI coals for export Production 3.9Mtpa (FY21A) to overseas customers Poitrel is located approxi
Slide 18: Wards Well asset overview
Wards Well asset overview Asset Overview Mining Area Overview Wards Well is a large‐scale, undeveloped, underground project in the Bowen Basin Two main logistics options have been studied including: Newlands Rail Corridor to NQXT Goonyella Rail Corridor to DBCT A range of power options cou
Slide 19: APPENDIX
APPENDIX “ Certainty stanmore s 7
Slide 20: BMC reserves and resources
BMC reserves and resources JORC Coal Resources as at 30 June 2021 Reserves Marketable Reserves Proved (Mt) Probable (Mt) Total (Mt) Total Mt % Ash % VM % Sulphur South Walker Creek 87 36 123 98 9.2 13.5 0.29 Poitrel 24 24 48 39 8.1 23.1 0.31 Total 111 60 171 137 JORC Coal Resources as at 30 June 202
Slide 21: Stanmore mineral inventory
Stanmore mineral inventory Stanmore Coal Reserves as at end December 2020 Coal Reserves Marketable Coal Reserves Coal Type Ratio ‐ Coking:Thermal (% of Marketable Coal Reserve) Isaac Plains OC 79%:21% Project Competent Report Tenement Proved Probable Total Proved Probable Total Isaac Plains East OC
Slide 22: Stanmore mineral inventory
Stanmore mineral inventory Stanmore Mineral Resources as at end December 2020 Measured Indicated Inferred Total Competent Report *Coal Types Potential Legend Project Name Tenement Coal Type* Resources Resources Resources Resources Person Date C ‐ Coking Coal, semi‐soft or greater potential ML 70342,
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