Whitehaven Coal Limited · ASX:WHC
Whitehaven Coal — Investor Presentation (December 2020)
31 slides from Whitehaven Coal's investor presentation, December 2020
Slide 1: Investor Briefing Presentation
Investor Briefing Presentation Paul Flynn, CEO Ian Humphris, EGM Operations Kevin Ball, CFO December 2020
Slide 2: Welcome to the Webcast
Welcome to the Webcast How to watch the webcast How to ask questions If you want to watch the webcast, you can for the Q&A session continue watching from your devices. If you Questions for the Q&A session can be prefer to change to listen only mode, you can submitted via "Ask A Question" box on the
Slide 3: 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 4: Welcome to the Whitehaven Coal Investor Briefing
Welcome to the Whitehaven Coal Investor Briefing 4
Slide 5: Agenda
Agenda 1. Welcome with Paul Flynn 2. Maules Creek virtual site tour 3. Maules Creek briefing by Ian Humphris 4. Narrabri mine virtual site tour 5. Narrabri briefing by Ian Humphris 6. Project STRIVE by Ian Humphris 7. Q&A session with Paul Flynn, Ian Humphris and Kevin Ball 8. Close
Slide 6: Today's speakers
Today's speakers Paul Flynn Ian Humphris Kevin Ball Managing Director and Executive General Chief Financial Officer Chief Executive Officer Manager – Operations 6
Slide 7: Maules Creek virtual site tour
Maules Creek virtual site tour
Slide 8: Maules Creek mine
Maules Creek mine 75% owned and operated by Whitehaven Coal
Slide 9: Maules Creek mine overview
Maules Creek Maules Creek mine overview Coal 13Mtpa 6.4:1 Braymont +40 year Thermal and Licenced ROM First 20 year seam mine life Semi-soft production strip ratio ~25% of resource coking coal 9
Slide 10: Product strategy
Maules Creek Product strategy 3 product strategy 1 2 3 High CV Semi-soft Semi-soft thermal coal coking coal coking coal with 9-10% ash with 5-6% ash with 8% ash • Maximises price premium and margin • Leverages installed wash plant capacity • Rationalises coal stockpile management • Minimises exposu
Slide 11: FOB costs
Maules Creek Seaborne export thermal cost curve FOB costs • Maules Creek is positioned in the 2nd Quartile of export thermal cost curve • Benchmark thermal quality coal and positioning on cost curve provides resilience to commodity cycle fluctuations Source: Wood Mackenzie Ltd, Dataset: August 2020
Slide 12: Fleet strategy
Maules Creek Fleet strategy Overburden fleet Hitachi Ultra class fleet 5 x EX 8000 excavators & 45 EH5000 trucks Coal fleet 5 Hitachi EX 3600 excavators and 28 Hitachi / Caterpillar 190 tonne trucks Autonomous Haulage System (AHS) • Trialled for 10 months with EX3600 • 2.6M BCM of waste moved to dat
Slide 13: Sustainability
Maules Creek Sustainability Land under rehabilitation Cumulative Total Year Rehabilitation Rehabilitation Area Area 2020 90ha 190ha 2021 74ha 264ha 2022 70ha 334ha • Geofluv – best practice for land rehabilitation 13
Slide 14: Sustainability
Maules Creek Sustainability People • A local focus: • Indigenous and female specific recruitment programs • Apprenticeship & Graduates program • Crib relief roster providing employment opportunities for parents with school-aged children • Relationships with labour hire firms in conjunction with WHC
Slide 15: Sustainability
Maules Creek Sustainability Water security Detailed water modelling with Trigger Action Response Plans Maules Creek has access to the following water sources via an extensive pipeline network: • Native harvest rights • Water recycling • High security water licence for the Namoi River • Licenced to e
Slide 16: Narrabri mine virtual site tour
Narrabri mine virtual site tour
Slide 17: Narrabri mine
Narrabri mine 77.5% owned and operated by Whitehaven Coal
Slide 18: Narrabri mine overview
Narrabri Narrabri mine overview Mining Coal 11Mtpa method Thermal and Licenced ROM Underground PCI coal production longwall Yield 25 year ~98% mine life with a successful approval of the Stage 3 Extension Project 18
Slide 19: Mine optimisation
Narrabri Mine optimisation The revised mine sequence is focused on de-risking the operation and accessing the southern panels sooner to optimise performance and returns • Continue mining LW109 • LW110 step around complex fault • Cut and Flit 201 and 202 • LW203-205 to be mined as originally approved
Slide 20: LW110 step around
Narrabri STEP AROUND LW110 step around Reason: Avoid mining through fault zones Impact: • Product coal quality is enhanced • De-risk coal extraction of LW110 • 4 week step around with a 2 week ramp down and ramp up • Scheduled in 1H FY2022 • ROM production levels maintained 20
Slide 21: Stage 3 Extension Project
Narrabri Stage 3 Extension Project • Conversion of exploration licence EL6243 into a mining licence • Extends Life of Mine to 2045 • LW300's series of panels and associated roadways – 300 mains development scheduled to begin in 2025 • New longwall provides the opportunity to optimise access to reser
Slide 22: Operational and commercial outcomes of revised mining sequence & Stage 3 extension
Narrabri Operational and commercial outcomes of revised mining sequence & Stage 3 extension Operational: Lower costs: • De-risking production continuity • Higher productivity from operating in • Earlier return to shallow depth of cover in shallower ground the southern panels • Decrease in secondary
Slide 23: Project – next steps
Narrabri Stage 3 Extension Project – next steps The proposal is subject to State and Federal Government approval processes. Environmental Impact Statement lodged with the NSW Department of Planning, Industry & Environment, which the community can review and provide comment on until 16 December 2020.
Slide 24: Panels 201 & 202 opportunity
Narrabri Panels 201 & 202 opportunity Reason: Mining 201 and 202 panels using a Cut and Flit method provides access to high quality coal earlier in the mine life Impact: • Increases ROM production by ~600kt per year for the next 6 years commencing FY2022 • Accesses higher quality coal Key: • Cut and
Slide 25: FOB costs
Narrabri Seaborne export thermal cost curve FOB costs • Narrabri is located in the 1st Quartile of export thermal cost curve • High quality thermal coal and positioning on cost curve provides resilience to commodity cycle fluctuations Source: Wood Mackenzie Ltd, Dataset: August 2020 25
Slide 26: Project STRIVE
= = Project STRIVE ——— — a — WHITEHAVEN COAL
Slide 27: Project STRIVE – Operational Review
Project STRIVE – Operational Review Project STRIVE is an operations-wide review of costs and productivity Diagnostic Phase Implementation Phase Initiatives prioritised on value and ease 300+ High-level opportunities identified as potential improvement projects 27
Slide 28: Project STRIVE – Key findings and implementation plan
Project STRIVE – Key findings and implementation plan A focus on increased productivity and cost out opportunities $50m* Targeted savings from high priority initiatives over the two year program * Savings include both one off and recurring savings that are expected to continue after the two year pro
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Slide 30: Thank you
Thank you www.whitehavencoal.com.au
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