Gcm Resources Plc · LSE:GCM
Gcm Resources — Investor Presentation (November 2017)
24 slides from Gcm Resources's investor presentation, November 2017
Slide 1: GCM Resources plc
GCM Resources plc November 2017
Slide 2: Disclaimer
Disclaimer The content of this document has not been approved by an authorised purpose of engaging in an investment activity may expose you to a significant risk person within the meaning of the Financial Services and Markets Act 2000. of losing all the property invested. Accordingly, neither the Co
Slide 3: Business – in Brief
Business – in Brief World class open-pit coal mining project in north-west Bangladesh – 572 million tonnes high quality coal (mix of thermal, semi-soft) Awaiting Bangladesh Government approval – all studies undertaken Government is rapidly expanding coal fired power generation (20,000MW increa
Slide 4: Phulbari is a world class deposit
Phulbari is a world class deposit Large reserves of coal (thermal and semi-soft coking coal) and by-products – 572 million tonnes JORC compliant resource – Resource open to the north and south Open cast operations using well-tested techniques – Coal measures at 165-270 metres below the surface –
Slide 5: Bangladesh Power
Bangladesh Power Government roadmap to power sector expansion Current Generation Capacity Strong political will to develop power Furnace Oil 21.2% 2889 20,000MW new power generation from coal Renewables 0.02% 3 880 Diesel 6.5% “government-to-government” deals for new coal fired 250 Coal 1.8%
Slide 6: Strategic partnership - CGGC
Strategic partnership - CGGC MOU with China Gezhouba Group International Engineering (CGGC) November 2016 – Super state owned enterprise – Wealth of experience: Power Infrastructure Projects in China and globally – http://en.gzbgj.ceec.net.cn/ Proposal: Initial 2000MW power plant at mine-site –
Slide 7: Phulbari Power Project – synergy with mine
Phulbari Power Project – synergy with mine Proposed 2000 MW Power Plant 7
Slide 8: Current Strategy
Current Strategy* Power Plant Partner with major Chinese (state owned) infrastructure Company – Identified China Gezhouba Group International Engineering (“CGGC”) – MOU agreed – Technical Prefeasibility Study on power plant completed – Agree framework cooperation agreement – Agree EPCC & final agr
Slide 9: Directors & Senior Management
Directors & Senior Management Datuk Michael Tang PJN Nik Raof Daud (Executive Chairman) (Non-executive Director) – Significant corporate and financial experience in the natural – Over 30 years experience in technical and corporate roles at resource, power generation, manufacturing and real estate se
Slide 10: Technicals
Technicals
Slide 11: Coal Resources in Bangladesh
Coal Resources in Bangladesh DEPOSIT DRILLING DEPTH RESOURCE DISCOVERY STATUS (holes) (M) (MT) 390 1985 – GSB Mining ‒ 6 seams ‒ 1991: Feasibility ‒ Underground mine Barapukuria 33 120-510 ‒ Main seam average study production October thickness 36m ‒ 1994: BCMCL M/L 2005 (1Mtpa) 1997 – BHP Ready to 5
Slide 12: Location
Location Coal transport via rail and barge to other PHULBARI Government/IPP power plants Jamuna Bridge Ishurdi Hardinge Bridge Gazipur Dhaka Chandpur Khulna Chittagong 12
Slide 13: Cross-section
Cross-section @) RESOURCES AEN26 AENS1 AEN15 AEN17 sj _-—-<} jj | See 8age°° § 8 é LEGEND GME mapHupur clay («UPPER DUP! TILA GEM LOWER DUPITILASAND) «= Js LOWER DUP! TILA (9) PERMIAN-wWeaTHERED [MB PERMIAN FRESH SANDSTONE MB coat ME INnTERBURDEN/PERMIAN ©)
Slide 14: Open Pit Mining and Land Rehabilitation
Open Pit Mining and Land Rehabilitation Progressive backfilling and rehabilitation of mined and overburden areas – Returned to Box-Cut agriculture and other productive uses Scale 5 km Total mine (35‐year) footprint Scale 5 km Final void‐ Water reservoir • Community asset: Lake – Fresh Water (drinkin
Slide 15: Phulbari Coal and Power Timeline
Phulbari Coal and Power Timeline Year 1 Year 2/3 Year 4 to 35+ Preparation Overburden removal Overburden removal Approvals Coal Handling Plant Ramp-up to 15+ Mtpa Land acquisition & site construction Years 3-8 construction Continued Land Acquisition 30+ years production Equipment order
Slide 16: JORC Resource Statement
JORC Resource Statement Upper Seam Main Seam Lower Seam Base Seam Total Mt Mt Mt Mt Mt Measured 51 237 - - 288 Indicated 62 124 39 19 244 Inferred 12 28 - - 40 Total 125 389 39 19 572 Notes: Results based on Geological Model submitted in July 2005 Table compiled from data contained in Phulbari C
Slide 17: Phulbari High Quality Thermal Coal
Phulbari High Quality Thermal Coal Typical Specification Market Preference Phulbari Hunter Valley Specific energy >6300 6930 6800 (gross Kcal/kg) Total moisture <15.0 8.5 9.0 (% as received) Ash (%) <16.0 12.0 13.5 Fixed carbon (%) >45.0 54.2 50.5 Sulphur (%) <1.0 0.80 0.55 17
Slide 18: Phulbari Low Ash Metallurgical Coal
Phulbari Low Ash Metallurgical Coal Typical Specification Market Preference Phulbari Hunter Valley Specific energy >6800 7420 7200 (gross Kcal/kg) Total moisture <12.0 10.0 9.0 (% as received) Ash (%) <11.0 6.8 9.5 Fixed carbon (%) >50.0 56.7 54.2 Sulphur (%) <1.0 0.75 0.55 18
Slide 19: Coal Sales by Type
Coal Sales by Type 18 16 Semi-soft coking 14 coal 12 Coal Production Mtonnes/year Domestic industrial thermal 10 coal 8 6 High quality thermal coal 4 2 0 0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32 34 19
Slide 20: Environmental and Social
Environmental and Social ESIA to International Standards – Project Environment Clearance granted Environmental Studies: – Air, noise and water quality – Biodiversity Water Studies: – Groundwater extraction & distribution – Flooding Social Impact Assessment: – Socio-Demographic surveys – Publ
Slide 21: Benefits
Benefits Energy security: – Major step to solve energy and power crisis – 3 years to first coal, 4 years to first power – Reliable large scale energy supplier for over 35 years Huge economic impact*: – US$21 billion contribution to GDP over project life – Overall effect estimated at approx 1% of
Slide 22: Benefits - Regional Development
Benefits - Regional Development Modern planned new town and villages – Improved power, water supply and sanitation, education and medical facilities Improved rail, roads, port and communications infrastructure Business development opportunities Schools Mosques Health centres Bazaars 22
Slide 23: Benefits - Employment and training
Benefits - Employment and training Estimated 17,000 new jobs (direct and indirect) Thousands more jobs created in industries enabled by: – Power generation – Improved regional infrastructure and co-products Preferential employment to maximise benefits for local community Workforce will be pr
Slide 24: Project Summary
Project Summary Landmark Foreign Investment for Bangladesh Large low cost coal mine and power plant operations Energy & Power security for Bangladesh Environment and Social Issues manageable 24
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