Silver Elephant Mining Corp · TSX:ELEF
Silver Elephant Mining — Prophecy Coal — Investor Presentation (August 2014)
28 slides from Silver Elephant Mining's investor presentation, August 2014
Slide 1: Thermal Coal Producer and Thermal Power Developer
TSX: PCY Thermal Coal Producer and Thermal Power Developer Actual Ulaan Ovoo pictures November 2013 August 2014
Slide 2: Disclaimer
Disclaimer TSX: PCY This presentation contains forward-looking information as defined under applicable securities law in Canada. Forward-looking information can be identified by the use of words such as "anticipated", "targeted" and "expect" or variations of such words and phrases or state that cert
Slide 3: Organization Chart
Organization Chart TSX: PCY Canada Prophecy Coal Corp. (TSX: PCY) Prophecy Red Hill Chandgana Coal UGL Enterprises 0912601 B.C. Power 1420 PSR PTE. Mongolia LLC LLC LLC 0912603 B.C. Generation LLC LTD (Singapore) (Mongolia) (Mongolia) (Mongolia) (Canada) (Mongolia) Asset: Assets: Asset: Asset: Asset
Slide 4: Ulaan Ovoo Mine
Ulaan Ovoo Mine TSX: PCY Thermal Coal Mine in Northern Mongolia • 120km to Sukbaatar Railway by road • Serve Mongolian and Russian markets • In production since November 2013 • Potential export via Russian seaports Source: Prophecy Coal 4
Slide 5: Ulaan Ovoo Mine
Ulaan Ovoo Mine TSX: PCY Single, thick coal seam • Outcrop is 50 m wide (max 200m) • 200 Mt* M&I resource • 20+ years projected mine life • 5,000 kcal/kg • Low ash 10% & sulfur 1% • Low Strip ratio of 2:1 • Over $60 million invested • Own mining fleet and coal trucks First 20 million tonnes: no wash
Slide 6: Ulaan Ovoo Cost Estimation
Ulaan Ovoo Cost Estimation TSX: PCY Estimated cost per tonne for 2013 and 2014: At mine gate cost/tonne Coal mining and fuel $11-$12 On-site coal handling $2 Admin & overheads $1 Sub total $14-15 Transport to Sukhbaatar rail siding cost/tonne Trucking and fuel $12 Coal handling & admin $2 Total cost
Slide 7: Ulaan Ovoo Mine
Ulaan Ovoo Mine TSX: PCY • Early 2011 mine commissioned, mid 2012 mine put on stand by • Mid 2013 improved market conditions, signed contracts 60,000 t/month • November 2013 - mine recommenced production • Production estimate 30,000 to 50,000 per month • 2014 forecast approximately 300,000 to 500,00
Slide 8: Chandgana Project Summary
Chandgana Project Summary TSX: PCY • Advanced Greenfield Mine Mouth Power Project in Mongolia • Mongolia: Fast growing country in need of energy • Mine mouth plant next to coal deposit • 1 bn tonnes* coal (633mt M and 539mt I) • Central location near existing Mongolian power grid • Coal mining and p
Slide 9: Chandgana Project Summary
Chandgana Project Summary TSX: PCY Chandgana aerial view, 100 sqkm land Project sketch > 1 bt coal, featuring 40m thick coal seam drawing outcrop 9
Slide 10: Mongolia Power Market
Mongolia Power Market TSX: PCY • Mongolian Central Energy System (CES) is the largest and operates five TPPs with total installed capacity of 814MW; • Power demand exceeded peak capacity in 2013 (including import from Russia), 100MW of load shedding took place 2013 winter; • Mongolian economy has gr
Slide 11: Mongolia Power Supply Demand
Mongolia Power Supply Demand TSX: PCY MW Power deficit is 1600 projected to - 525 1400 increase to 525MW -425 1200 in 2016 - 228 1000 -100 800 600 400 200 0 2007 2008 2009 2010 2011 2012 F2013 F2014 F2015 F2016 TPP-4 TPP-3 TPP-2 DTPP ETPP Wind Farm 50MW TPP-4 (extention) Import from Russia Power Def
Slide 12: Mongolia Power Demand
Mongolia Power Demand TSX: PCY • Demand by development of capital and start of mining projects; • Demand in South Gobi is driven by OT (copper & gold) and TT (coking coal) mines; OT investment to date (US$ 6 billion) 2017 CES power demand Chandgana increase Power Plant 331 MW 2017 Southern Region po
Slide 13: Demand Forecast 2015
TSX: PCY Demand Forecast 2015 Chandgana Power Plant 13
Slide 14: Proposed Tariff
Proposed Tariff TSX: PCY • An average tariff from 2017 to 2041 (24 years), subject to indexation; • Tariff consists of capacity (Capex, O&M) and energy (fuel) charges; • Buyer commitment to purchase average 270MW (of gross 300MW); • Capital cost is to be financed and repaid in USD; • The proposal is
Slide 15: Coal Supply Agreement (CSA)
Coal Supply Agreement (CSA) TSX: PCY Signed June 2013 between Prophecy Power Generation & Chandgana Coal LLC • Prophecy Power to purchase 3.6 million tonnes of coal a year for 25 years • Minimum 2 million tonnes per year on take-or-pay, breakup fee payable • Initial coal price is USD 17.7 per tonne,
Slide 16: Power Project Milestones
Power Project Milestones TSX: PCY 2010 Environmental Impact Assessment approved, Mining License received 2011 600MW Power Plant Construction License received Tendering process on EPC, and discussion on PPA 2012 Mongolian election, Tariff and PPA application submission 2013 Received Land Use Rights a
Slide 17: Company Contact
Company Contact TSX: PCY Toronto Stock Exchange: PCY Shares O/S: 234 million Phone: 1-604-569-3661 Fax: 1-604-569-3617 Toll Free: 1-800-373-0296 info@prophecycoal.com Mongolia Presents Prophecy with Power Plant Land Use Rights 17
Slide 18: Exhibits
Exhibits TSX: PCY 20, 21 for Ulaan Ovoo 22 to 29 for Chandgana 18
Slide 19: Ulaan Ovoo History
Ulaan Ovoo History TSX: PCY November mine-restart H2 2013 Sizable Mongolian and Russian offtakes over 60,000 t per month Sold 45kt from stockpile, 106,000 t stockpile remain, H1 2013 Total over $55 million invested to date H2 2012 Production curtailed July due to market condition Produced 165,000 t
Slide 20: Russian Market for Ulaan Ovoo
Russian Market for Ulaan Ovoo TSX: PCY Ulan- Ude Power Plant 1 & 2 Blending Plant Ulan-Ude city (boilers, residential) Demand: 2mt pa Demand: 2 mt pa 220 km from Mongolian – Russian border Gusinoozersk Power Plant Tugnuiskiy Mine Demand: 3 mt pa 120 km from Mongolian – Russian border Zeltura Border
Slide 21: Mongolia Power Supply
Mongolia Power Supply TSX: PCY • Country’s total installed capacity is about 870 MW • CHP#4 (580 MW) is over 30 years old Installed capacity Available capacity Plant Constructed Year MW 2012 MW CHP#2 1961 21.5 9 CHP#3 1968 136 109 CHP#4 1983 580 458 Darkhan Plant 1965 48 44 Erdenet Plant 1987 28.8 2
Slide 22: Power Demand Forecast
Power Demand Forecast TSX: PCY # Consumers’ names 2012 2013 2014 2015 1 Oyutolgoi 60 100 150 2 Tavanntolgoi 5 10 40 3 Zamyn-Uud 10 32 4 Tsagaansuvraga 46 46 75 5 Taishun development 5 10 45 6 Senj sant 5 5 9 7 МАК 5 5 5 20 8 Sanjin Ord 3 3 5 16 9 МIZU 5 5 5 20 10 Erel 11 Khutul expension 2 2 4 4 12
Slide 23: Transmission Line Study
Transmission Line Study TSX: PCY Ulaanbaatar Baganuur Chandgana (300MW) 130km 150km 180km Choir Gobi (OT, TT) Chandgana – Baganuur: Government to construct double circuit 220kv OHTL with 250 MW capacity Baganuur to UlaanBaatar: Existing double circuit 220kv OHTL with 180 MW capacity Baganuur to Choi
Slide 24: Net Plant Availability
Net Plant Availability TSX: PCY • CFB Technology exhibits 8,000+ annual available hours, with 10% internal aux heat consumption: • PPA is to purchase average 243MW; • Asian Development Bank states: “Overall the CFB technology is technically matured, operationally reliable, commercially available, an
Slide 25: Activities in 2013
Activities in 2013 TSX: PCY • All major permits to start mobilization at site received • Land permit received in Feb 2013, land now in possession of Prophecy • Water use permit for drinking and initial construction requirement received • Temporary electricity supply permit for 2.25MW received • Owne
Slide 26: 2014 Pre-EPC Plan
2014 Pre-EPC Plan TSX: PCY • Work on site boundary poles installation; • 2.5km access road to site from highway; • Temporary supply for 35/6.6 kV, 2.25 MW to site; • Temporary office and accommodation; • Water wells and water treatment for staff; • Complete design of power plant (EPC); • Owner desig
Slide 27: 2015 – 2017 EPC Plan
2015 – 2017 EPC Plan TSX: PCY 2015 Completion of main building, auxiliary equipment foundation in turbine, chimney foundation, DM water, unit auxiliary power, completion of SG frame, start SG hydraulic test, turbine and boiler erection. Government start Transmission line construction 2016 Turbine an
Slide 28: Mongolia Demand & Tariff
Mongolia Demand & Tariff TSX: PCY Power Demand MW MW 1600 1400 1200 1000 800 600 400 200 0 2007 2008 2009 2010 2011 2012 F2013 F2014 F2015 F2016 Residential Industry - Non Mining Mining Source: NETGCO, Prophecy Coal estimates 28