Terracom Limited · ASX:TER
Terracom — Guildford Coal — Investor Presentation (August 2013)
40 slides from Terracom's investor presentation, Aug 26, 2013
Slide 1: ASX Announcement Mongolia Update
26 August 2013 ASX ANNOUNCEMENT Mongolia Update Guildford Coal Ltd (ASX: GUF) is today hosting an Investors presentation in Ulaan Baatar, capital of Mongolia. The presentation is being attended by the major investors in GUF as well as representatives of financial institutions, coal traders and Mongo
Slide 2: ASX Announcement Mongolia Update (continued)
7. GUF is entering the market at a time when global market conditions are very challenging and coal prices remain under strong pressure. Current industry benchmark price indices infer a mine site sale price in the range of US$55 to US$60/tonne. 8. GUF and Noble are pleased to advise an in-principle
Slide 3: Guildford Coal Investor Presentation
577079-001.ppt Guildford Coal Investor Presentation 26th August 2013
Slide 4: Disclaimer
577079-001.ppt Disclaimer The information contained in this document (Presentation) has been prepared by Guildford Coal Limited (Company). This Presentation does not constitute an offer or invitation to any person to subscribe for or apply for any securities in the Company. This Presentation contain
Slide 5: Agenda
577079-001.ppt Agenda 1. Company Overview 2. Permitting Update 3. South Gobi Project and Operations Update 4. OPEX and Capital Overview 5. Marketing Overview 6. Pricing Considerations and Expectations 7. Profit Guidance Summary and Funding Requirements 8. Conclusion
Slide 6: Company Overview
577079-001.ppt Company Overview
Slide 7: Company Overview
577079-001.ppt Company Overview Australia’s next large independent miner, capitalising on its diverse and strategically positioned coal deposits in Mongolia and Queensland Diversified Asset base and JORC Resource Emphasis on achieving Mongolia production in 2013
Slide 8: Company Overview - Snapshot
Company Overview - Snapshot 577079-001.ppt ASX code GUF Share Price Volume ('000) $0.60 15,000 Shares on Issue 635M $0.50 12,000 Share price (23 Aug 2013) $0.155 $0.40 9,000 Market Capitalisation A$98.4M $0.30 6,000 Cash (31 July 2013) A$21.9M $0.20 3,000 Debt / facilities A$61.5M $0.10 $0.00 0 Ente
Slide 9: Company Overview – New Team
Company Overview – New Team 577079-001.ppt Peter Westerhuis, Group Managing Director Mechanical Engineer, MBA, GAICD 30 years resources industry experience, including 20 years in the coal industry Julien Lawrence, Chief Operating Officer - Mongolia Mining Engineer 15 years international resources in
Slide 10: Permitting Update
577079-001.ppt Permitting Update
Slide 11: Mongolia License Locations
577079-001.ppt Mongolia License Locations Guildford Coal
Slide 12: South Gobi Licenses
577079-001.ppt South Gobi Licenses Guildford Coal
Slide 13: Haul Road Permitting Process
577079-001.ppt Haul Road Permitting Process Local soum (council) land use agreements made Affected landholders endorsements received Road alignment approved by National Government Road construction agreement made with National Government Detailed road design completed and approved On-lea
Slide 14: Haul Road Construction Plan
577079-001.ppt Haul Road Construction Plan • The Construction Agreement to construct a sealed haul road expires June 2016 • The unsealed road alignment will be completed in 2013, at a cost of US$17M • Coal haulage scheduled to commence in December 2013 • Construction of sealed haul road will commenc
Slide 15: South Gobi Project and Operations Update
577079-001.ppt South Gobi Project and Operations Update
Slide 16: South Gobi Project Update
577079-001.ppt South Gobi Project Update South Gobi Project is managed & operated by 100% owned Guildford Coal subsidiary, Terra Energy Project includes a ML over the Baruun Noyon Uul (BNU) Mine (formerly Northern Pit) JORC resources for BNU Mine – 70.4Mt (Indicated 39.7Mt and Inferred 30.7Mt)
Slide 17: South Gobi Project - Licenses
577079-001.ppt South Gobi Project - Licenses
Slide 18: South Gobi Project – BNU Resource Definition
577079-001.ppt South Gobi Project – BNU Resource Definition (formerly North Pit)
Slide 19: South Gobi Project – Hovguun Exploration
577079-001.ppt South Gobi Project – Hovguun Exploration (formerly east pit)
Slide 20: Mine Development
577079-001.ppt Mine Development Guildford Coal
Slide 21: South Gobi Project General Layout
577079-001.ppt South Gobi Project General Layout
Slide 22: South Gobi Project BNU Mine Progress
577079-001.ppt South Gobi Project BNU Mine Progress • Mining equipment secured through rental arrangements • Workforce established focused on local hire • Building TE team to support the operation reliability • Putting in place BOOT arrangements for mine infrastructure • Reduce upfront expenditure b
Slide 23: South Gobi Project BNU Boxcut
577079-001.ppt South Gobi Project BNU Boxcut
Slide 24: BNU Mine Production Profile to June 2015
577079-001.ppt BNU Mine Production Profile to June 2015
Slide 25: Mine Infrastructure
577079-001.ppt Mine Infrastructure Guildford Coal
Slide 26: BNU Pit Capital Estimate
577079-001.ppt BNU Pit Capital Estimate BNU Pit Capital Estimate Road Construction - Unsealed $17M Boxcut $13M Other $7M Exploration $3M Total Capital Estimate $40M
Slide 27: Marketing Overview
577079-001.ppt Marketing Overview
Slide 28: Mine Location and Key Project Highlights
Mine Location and Key Project Highlights 577079-001.ppt The mine is ideally located some 150km by road from the Chinese border station at Ceke and close to numerous Chinese steel plants and coke works Coal quality produced will be close in specification to prime coking coal A marketing agency a
Slide 29: Mongolian Supply - Terra Energy well positioned
Mongolian Supply - Terra Energy well positioned 577079-001.ppt
Slide 30: Mine Production Schedule and Coal Quality Update
Mine Production Schedule and Coal Quality Update 577079-001.ppt Sales Schedule Coal Quality Month '000 tonne Dec 2013 20 Spec. Spec 1 Spec 2 Jan 2014 30 Feb 2014 40 Ash %arb 5-8 10 Mar 2014 100 VM %daf 28-30 24-26 Apr 2014 130 Sulfur %arb 0.5-0.9 0.6-0.9 May 2014 150 G Index 70-90 80-90 June 2014 15
Slide 31: Pricing Considerations and Expectations
577079-001.ppt tomorrow today Pricing Considerations and Expectations
Slide 32: Steel Plant Profitability
Steel Plant Profitability 577079-001.ppt China Major Steel Mills Profit Ratio 3.50% Product Inventory remains high 3.00% 2.50% at 15Mt as of Aug 2nd 2013. 2.00% 1.50% The average profit rate of major 1.00% 0.50% steel mills only 0.13% in July 0.00% (Source: CISA) -0.50% Forcing coke price to f
Slide 33: Terra Energy Price – Various Reference Prices
Terra Energy Price – Various Reference Prices 577079-001.ppt Ceke Spot Pricing Jingtang Port Ex-stockyard Price RMB RMB HCC 1/3 Coking Coal Fat Coal 700 1700 600 1600 1500 500 1400 400 1300 1200 300 1100 1000 200 900 800 100 700 9/01/2012 9/02/2012 9/03/2012 9/04/2012 9/05/2012 9/06/2012 9/07/2012 9
Slide 34: Terra Energy’s Coal Pricing Strategy
Terra Energy’s Coal Pricing Strategy 577079-001.ppt • At least 4 different pricing reference points are being monitored • Transportation costings are based on current research and advice • Each index offers its own justification • Current indications are that the FOB minesite price for Terra Energy’
Slide 35: Profit Guidance Summary and Funding Requirements
577079-001.ppt Profit Guidance Summary and Funding Requirements
Slide 36: Profit Guidance Summary
577079-001.ppt Profit Guidance Summary Production profile – commences Q4 2013 and gradually ramps up to 3mtpa by end of Q4 2014. Sales price – range of US$55-US$60 per tonne FOB truck at mine gate. Marketing fee and royalties approximately US$5 per tonne. Mine operating cost per tonne when p
Slide 37: Funding Requirements
Funding Requirements 577079-001.ppt Group cash position at the end of July 2013 was A$21.9M. Current Group financing facilities include: - A$39.4M convertible bond from OCP Asia - US$20M working capital/debt facility from Noble In-principle extension of existing Noble debt facility agreed to f
Slide 38: Conclusion
577079-001.ppt Conclusion
Slide 39: Guildford Coal & Terra Energy
GUILDFORD COAL & TERRA ENERGY 577079-001.ppt Near term coal producer with a determination for success A new team to achieve and deliver Premium coal quality differentiates us in the market Strong strategic partnership with Noble, a global force in the coking coal market Final statutory app
Slide 40: 577079-001.ppt
577079-001.ppt