Singapore Exchange Ltd. · SGX:S68
Singapore Exchange — Straits Asia Resources — Investor Presentation (April 2009)
39 slides from Singapore Exchange's investor presentation, Apr 22, 2009
Slide 1: Straits Asia Resources Limited - Presentation by Straits Bulk & Industrial
STRAITS ASIA RESOURCES LIMITED (Incorporated in the Republic of Singapore on June 10, 1995) (Company Registration Number: 199504024R) PRESENTATION BY STRAITS BULK & INDUSTRIAL PTY LTD The attached presentation was released to the Australian Stock Exchange today by Straits Resources Limited (ASX: SRL
Slide 2: SBI Special Analyst Meeting
SBI SPECIAL ANALYST MEETING 22 April 2009
Slide 3: Important Notice
Important Notice Nothing in this presentation constitutes an offer of securities for sale. The securities have not been, and will not be, registered under the US Securities Act of 1933 as amended (the “Securities Act"), or the securities laws of any state of the US or other jurisdiction and the secu
Slide 4: Transaction Drivers: Vision
Transaction Drivers Vision: • SBI established as an energy coal platform, with the financial, technical and operational capability to actively pursue and develop opportunities in the global coal sector. • Consolidate and expand existing operations and progress development of SBI portfolio of high qu
Slide 5: Transaction Drivers: Rationale
Transaction Drivers Rationale: • Transaction provides both stakeholders with a strong strategic platform from which to grow an international coal business. • Coal represents an important long term diversification strategy and international growth opportunity for PTT. • Coal now widely recognised as
Slide 6: Key Assets of SBI
Key Assets of SBI • Sebuku • One of the world’s lowest cost export coal operations. • Top quality power station brand. • Total production capacity target of 8Mtpa • 3.5Mt of sales in 2008 • 381Mt JORC Resources • Jembayan • Total production capacity increased to 11Mtpa Jembayan Brunei • Jembayan and
Slide 7: Operating Coal Mines Location Map
Operating Coal Mines Location Map 6
Slide 8: Sebuku
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Slide 9: PT Jembayan Muarabara
PT. STRAITS ASIA RESOURCES PT. JEMBAYAN MUARABARA <p Hauling Road Proposed Road Road JMBP River PETROSEA Road HTI Sumalindo HTI Bhinneka Wana Priority 1 Priority 2 Priority 3 Priority 4 Priority 5 Priority 6 Priority 7 0 2 4 8 Sterilization Pra1 Pra2 KILOMETERS
Slide 10: Sakoa
Moroni »Mutsamudu Antsiranana, se Ambilobe Hellvitles ‘ath rana *Ambanja ™ «Sambava *Antalaha *hMaroantsetra *Mandritsata MADAGASCAR Sareboditotolra Maintiranoe ‘«Fenoarivo Atsinanana *Ambatondrazaka Toamasina \atomandry Morondavas Mahanoro, Morombe . Fianarantsoa. *Mananjary ¢Manakara *Farafangana
Slide 11: Brunei
Far East Energy Corporation Pty Ltd Brunei 540000 South China Sea 520000 Liang Coal Zone Malaysia (Sarawak) 500000 Brunei Darussalam 480000 ? Malaysia ? (Sarawak) ? ? 460000 ? 440000 180000 200000 220000 240000 260000 280000 Grid - UTM WGS 84 (metres) Brunei Geology The border, coastline, northern e
Slide 12: Coal's Position in the Global Energy Equation
Coal’s Position in the Global Energy Equation Source: IEA 11
Slide 13: Global seaborne traded thermal coal market has grown steadily
The global seaborne traded thermal coal market has grown steadily since its establishment Global Global seaborne seaborne traded traded thermal thermal coal coal market market (Mt) (Mt) R= 7% 660 681 669 C A G 631 8 8 -200 583 197 516 554 455 463 407 346 355 294 310 327 286 260 265 212 209 225 237 1
Slide 14: Global end uses of coal, oil, and natural gas
Global end uses of the primary sources of energy - coal, oil, and natural gas 2010E 2010E global global end end uses uses of of 2010E 2010E global global end end uses uses of of 2010E global 2010E global end end uses uses of of COAL 2010E global end uses of coal COAL 2010E global end uses of coal OI
Slide 15: Coal is the most cost competitive fuel source globally
Coal is the most cost competitive fuel source globally Long Run Marginal Cost for new build base-load power stations Long Run Marginal Cost for new build Base-load Power Stations Long 160 Run Marginal Cost for new build Base-load Power Stations 140 120 ¾Thermal coal is the essential US$/MWh 100 comm
Slide 16: Coal is the most sustainable energy source globally
Coal is the most sustainable energy source globally Proved Proved reserves reserves (Bnt) (Bnt) World World proved proved reserve reserve life1 life1 (years) (years) 133 847 Significantly longer reserve life ~6.0x ~5.0x 60 42 169 142 2 2 Coal Gas Oil Coal Gas Oil Source: BP Statistical review Note:
Slide 17: Oil and gas continue to face rising finding and development costs
Oil and gas continue to face rising finding and development costs Global Global finding finding and and development development costs—actual costs—actual for for selected selected reporting reporting 30 companies companies ($/boe) ($/boe) $27.97 25 $24.10 20 15 $11.21 10 $7.27 5 0 1991 1992 1993 199
Slide 18: Global energy demand growth from China and India
Increase in global energy demand to be fueled by strong demand growth from China and India 2005E-2030E 2005E-2030E global global energy energy demand demand growth growth by Global Global energy energy demand demand 2005A—2030E 2005A—2030E by region (%) region (%) (quadrillion Btu) (quadrillion Btu)
Slide 19: Large and Expanding Production Base
Large and Expanding Production Base Sebuku and Jembayan Coal Production (Mt) 20 18 16 JEMBAYAN 14 10.0 12 10 8 7.0 5.2 -8.0 6 4.0 2.1 4 8.0 1.0 2 3.5 3.4 3.6 2.0 SEBUKU 2.6 3.0 -3.0 1.5 2.0 2.1 2.0 0 2000 2001 2002 2003 2004 2005 2006 2007 2008E 2009E Medium to Long Term 18
Slide 20: Supply-Demand Fundamentals: The Price Equation
Supply – Demand Fundamentals: The Price Equation Newcastle Comment Newcastle coal coal benchmark benchmark prices prices (US$/ton) (US$/ton) Comment 220 Coal price fell c. 68% from historical high of 200 US$192/t to US$62/t Newcastle Spot Contract 2004 —2006, average thermal 180 coal price was aro
Slide 21: Consensus thermal coal price forecast
Consensus thermal coal price forecast Benchmark Benchmark thermal thermal coal coal prices prices (December (December YE) YE) Comment Comment 220 Historical spot prices Current consensus forecast Historical contract prices Consensus forecast (July 2008) 200 Near to medium term of 180 broker consen
Slide 22: Cost Competitive Producer
Cost Competitive Producer 2007 Seaborne Thermal FOB Cash Cost Curve Energy Adjusted to 6,350 Kcal/kg GAR 80 70 60 50 US$/t 40 Jembayan 30 Sebuku 20 10 50 100 150 200 250 300 350 400 450 500 550 Global Seaborne Production (Mt) Source: Barlow Jonker 2007\ 21
Slide 23: Sebuku Brand Coal
Sebuku Brand Coal The Sebuku brand name is well known and well regarded in both Asia and Europe where power generators and other users have been relying on delivery of the high quality Sebuku Coal for over ten years Quality Specifications Parameter Sebuku Ash % (adb) 9.3 Sulphur % (adb) 0.68 - 0.91
Slide 24: Jembayan Coal Products
Jembayan Coal Products Quality Specifications Parameter Jembayan Prangat Ash % (adb) 4.0 7.0 Sulphur % (adb) 0.2 0.6 CV Kcal/kg (GAR) 5,414 5,700 Total Moisture % (GAR) 22.0 18.5 Ash Fusion Temperature 1,200 1,230 oC 23
Slide 25: Indonesian Coal Comparison
Indonesian Coal Comparison 6,100 Mahakam Sumber Jaya - MSJ Coal Adaro - Envirocoal 5,900 Sebuku - Sebuku Coal PTBA - Air Laya Kaltim Prima Coal- Melawan 5,700 Jembayan – Prangat Coal 5,500 Kideco - Roto South CV (kcal/kg) Jembayan - Jembayan Coal 5,300 Banpu - Jorong 5,100 4,900 Arutmin - Ecocoal Be
Slide 26: High Quality, Diversified Customer Base
High Quality, Diversified Customer Base • 32% of Total Sales to Japanese Power Companies (2008) • 80-90% of sales concluded under long-term contracts • Outstanding reputation for reliable product delivery and quality control Key Customers of SAR (by country, by rating) Name Country Credit rating (S&
Slide 27: 2008 Financial Performance Summary
2008 Financial Performance Summary • Sales of 8.6 million tonnes • Revenue of US$ 585.2 million • Profit after tax of US$ 124.4 million • Cash flow from operations US$ 191.5 million • Average Sales Price USD 70.50/t 26
Slide 28: Coal is the Centre of Rapidly Developing Markets
Coal is the Centre of Rapidly Developing Markets Carbon Trading Clean Coal Technology Coal Futures Coal Derivatives & Swaps Carbon Capture and Storage Coal Trading: Combustion Technology COAL Physical & Financial Emissions Control Coal Pricing Hydrogen Generation Risk Management Coal Seam Gas Coal t
Slide 29: Global Coal Physical and Financial Products
Global COAL PHYSICAL PRODUCTS FINANCIAL PRODUCTS -- fixed price – -- OTC -- Phys NEWC Swap NEWC Index Phys RB Swap API#2 (ARA) Phys ARA (DES) Swap API#4 (RB) Phys ARA (FOB Barge) -- cleared -- Phys INDO A / A2 / B ICE Rotterdam Futures -- index-linked – ICE Richards Bay Futures Phys NEWC Index gC IC
Slide 30: Transaction volume growth on global coal
Transaction volume growth on global COAL ■ Physical ■ Financial 29
Slide 31: Clean Coal Technologies
Clean Coal Technologies Coal's technical response to the environmental challenge is ongoing..... ………… with three core elements……………… • Reducing carbon dioxide emissions with the development of carbon capture and storage • Improving combustion technologies to increase efficiency and to reduce carbon
Slide 32: The Carbon Capture and Storage Process
The Carbon Capture and Storage Process © CO2CRC 31
Slide 33: Injection and Storage
Injection and Storage © CO2CRC 32
Slide 34: Latest Developments: Global Carbon Capture and Storage Institute
Latest Developments: ~ Global Carbon Capture and Storage Institute ~ • Officially launched last week in Australia to: – Drive global cooperation on CCS projects and technologies. – Accelerate the deployment of carbon capture and storage CCS technology globally. – Assist in achieving the G8 group's g
Slide 35: Carbon Capture and Storage Projects in Australia
Carbon Capture and Storage Projects in Australia 34
Slide 36: Global Response - Global Solutions
Global Response - Global Solutions ~ Existing and Planned CCS Projects ~ 35
Slide 37: A Multi-step Process to near Zero Emissions
A Multi-step Process to near Zero Emissions 36
Slide 38: Conclusions and Outlook for SBI
Conclusions and Outlook for SBI • Attractive coal industry fundamentals. • Energy security and economic growth to underpin thermal coal as a dominant fuel for decades. • Environmental solutions gathering global momentum and support. • SBI ideally positioned to grow an international and diversified c
Slide 39: Thank You
ขอบคุณครับ THANK YOU 38
Straits Asia Resources — Investor Presentation (April 2009) on 6ix