Stanmore Resources Ltd · ASX:SMR
Stanmore Resources — Stanmore Coal — Melbourne Mining Club Cutting Edge Series (July 2013)
25 slides from Stanmore Resources's conference presentation, Jul 16, 2013
Slide 1: Melbourne Mining Club Cutting Edge Series Company Presentation
For personal use only Melbourne Mining Club Cutting Edge Series Company Presentation Mr Nick Jorss – Managing Director 16 July 2013
Slide 2: Important Information
Important Information This document has been prepared by Stanmore Coal Limited (“Stanmore Coal”) for the purpose of providing a company and technical overview to interested analysts/investors. None of Stanmore Coal, For personal use only nor any of its related bodies corporate, their respective dire
Slide 3: About Stanmore Coal
About Stanmore Coal For personal use only Queensland based ASX code - SMR 94Mt of JORC 975-1,498 Mt(2) of coal development Share price - A$0.12(3) Marketable additional company Reserves(1) exploration targets Shares – 207.8m Founded in 2008 Mkt cap - $24.9m(3) 231Mt of Measured c
Slide 4: Company Ownership and Financial Position
Company Ownership and Financial Position Key Metrics(1) For personal use only The Company is well funded relative to its sector ASX Code SMR peers with $25M cash and no take or pay liabilities Shares on Issue 208.4M The Company continues to review its overhead cost base to ensure it is appropria
Slide 5: Strong Board and Management Team
Strong Board and Management Team NEVILLE SNEDDON NICK JORSS STEPHEN BIZZELL VIV FORBES ANDREW MARTIN For personal use only Managing Director Director Director Chairman Director Mining engineer with 37 years 20 years in engineering, project Extensive experience in Over 40 years of Bowen Basin coal 15
Slide 6: Located in Queensland's Premier Coal Basins
Located in Queensland’s Premier Coal Basins For personal use only 1 Attractive pipeline of Queensland coal projects − Belview (Bowen Basin) high quality underground coking coal on existing rail line − The Range (Surat Basin) open-cut 5Mtpa (product) export thermal coal at feasibility stage − Other
Slide 7: Belview Project Overview
Belview Project Overview Acquisition of EPC 1186 Creates Large Coking Coal Project in Bowen Basin region 100% owned For personal use only Substantial coking coal project in heart of the Bowen Basin Acquisition of EPC1186 provides access to shallower coking coal and significant increase in Explor
Slide 8: Belview Project – Concept Study Results
Belview Project – Concept Study Results EPC 1186 significantly reduces the initial depth of mining For personal use only Asset description Project ownership 100% Location Blackwater, Bowen Basin, Qld JORC Inferred Resource 95Mt Exploration target1 735-1,103Mt Infrastructure solution Blackwater line,
Slide 9: Belview Project Timetable
Belview Project Timetable First coal target 2017 For personal use only Concept study estimates underground development can commence in 2017 and longwall mining can commence in late 2018 Source: Xenith Concept Mining Study 9
Slide 10: Lilyvale Project
Lilyvale Project Expanded Coking Coal Project For personal use only • The Lilyvale Project is targeting the German Creek seam which is mined as a prime coking coal at nearby operating mines: • Kestrel UG Longwall (Rio Tinto) • Crinum UG Longwall (BMA) • Historical drilling results and knowledge of s
Slide 11: The Range Thermal Coal Project
The Range Thermal Coal Project Open cut, high energy, export grade thermal coal mine 100% owned For personal use only Feasibility Study complete on 5Mtpa open cut export thermal coal mine over 25 years High energy, low emission thermal coal sought after in Asia EIS completed and Mining Lease g
Slide 12: The Range Thermal Coal Project Feasibility Study Results
The Range Thermal Coal Project Feasibility Study Results Key Highlights For personal use only Asset Description The Range, Surat Basin Project (Queensland) Confirmed the technical and economic feasibility of the project JORC Resources(1) / Coal Reserves(2) 287Mt / 94Mt Location relative to infrast
Slide 13: The Range Thermal Coal Project Clean Burning Surat Coal
The Range Thermal Coal Project Clean Burning Surat Coal For personal use only High energy export thermal coal Surat Basin coals are typically clean burning with good burnout characteristics and low nitrogen, ash and sulphur Suitable for all key markets including Japan, China, Korea and India M
Slide 14: Surat Basin Coal Quality Comparison
The Range Thermal Coal Project Surat Basin Coal Quality Comparison For personal use only Surat Basin coals are typically high energy, clean burning coals featuring low impurities and emissions. Quality Surat Walloon Coals Other Australian Chinese Coals Comment Export Coals Sulfur (%) 0.4 0.3 - 0.7 0
Slide 15: Strategy
Strategy For personal use only Stanmore Coal remains positive about its prospects, in the context of difficult market conditions. Opportunities over the next twelve months include: 1 Deploy capital judiciously, where long term value can be created − Limit drilling activities to that required for de
Slide 16: Reserves, Resources and Targets
Reserves, Resources and Targets For personal use only JORC JORC JORC Measured JORC Indicated JORC Inferred Total JORC Additional Exploration Project Marketable Coal Recoverable Resource (1) Resource (1) Resource (1) Resource (1) Target (3) Reserve (1) (2) Coal Reserve (1) (2) Low High The Range Ther
Slide 17: Coal Market Outlook
For personal use only COAL MARKET OUTLOOK 17
Slide 18: Australian junior coal sector is oversold due to a myriad of factors
Australian junior coal sector is oversold due to a myriad of factors… Australian Junior Coal Stock Performance For personal use only 140 140.00 Index rebased to 100 120 120.00 All Ordinaries 100 100.00 (LHS) 80 80.00 USD Coal Junior 60 60.00 Average (LHS) 40 40.00 USD thermal coal 20 20.00 price (RH
Slide 19: Juniors have efficiently developed the majority of greenfield developments in QLD
… but juniors have efficiently developed the majority of greenfield developments in QLD over the last decade New Mine First Year of Initial Current Owner Nominal For personal use only • Of the 11 greenfield operations developed Development Production Explorer/Developer Production during the period 2
Slide 20: Thermal Coal Drivers - The switch back to coal in the US has begun
Thermal Coal Drivers - The switch back to coal in the US has already begun… • 2012 trade was 12% higher, an additional 95Mt of demand which was offset by a lack of For personal use only supply disruption in traditional export regions, low freight rates and a jump in US exports • Natural gas prices i
Slide 21: Major producing basins now in the money compared to 2012 lows
… with the major producing basins now “in the money” compared to the lows of 2012 For personal use only • Natural gas reached a low of $1.82 / Mcf in April 2012 due to the shale gas drilling boom • Sustainable long term gas prices in the US of $5.00 - $8.00 / Mcf are estimated to be required to ensu
Slide 22: Project development of Australian thermal assets required to capture demand
Project development of Australian thermal assets will be required in order to capture increases in demand… For personal use only • Project delays will continue due to the weak current pricing market leading for potential for future supply shortages • The global cost curve will continue to rise as ex
Slide 23: China will continue to be a significant importer
… particularly as China will continue to be a significant importer as domestic supply becomes more expensive Imported coal is the cheapest source to coastal For personal use only • China - the largest import market • Delivered coal imports to China are likely to sustained into the future • India and
Slide 24: Steel production strength likely to continue as China urbanises
Steel production strength is likely to continue as the urbanisation of China continues For personal use only • The urbanisation of China will continue to • China is now a significant importer of coking coal underpin strong steel demand, particularly in due to the price arbitrage presented by the the
Slide 25: Future coking coal supply growth likely from Australian prime deposits
Future coking coal supply growth is likely to come from Australian prime deposits The Bowen Basin exports quality hard coking coals which will For personal use only • continue to be amongst the most highly valued in the global market • Timing of the new supply from other developing coking coal basin
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