Coal Energy S.a. · GPW:CLE
Coal Energy — Conference Presentation (September 2012)
19 slides from Coal Energy's conference presentation, September 2012
Slide 1: Coal Energy – a leading Ukrainian coal mining company
Coal Energy – a leading Ukrainian coal mining company Management Presentation September 2012
Slide 2: Disclaimer
Disclaimer The information in this document has not been independently verified and no representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained herein. None of the
Slide 3: Contents
Contents 1 Company Overview 4 2 Coal Mining Market Overview 7 3 FY12 and 4Q FY12 Performance Overview 11 4 Development Strategy for FY13 16 3
Slide 4: 1. Company Overview
1. Company Overview 4
Slide 5: Coal Energy – Key Indicators
Coal Energy – Key Indicators FY2012(1) Results: Actual and Estimated Location of Operating Assets Resources(2) 235.5 mln t Reserves(3) 151.2 mln t Russia Production(4) 1.9 mln t Belarus Poland Sales* 1.7 mln t UKRAINE Slovakia Revenue* US$ 165.5 mln Hungary Moldova Romania EBITDA* US$ 61.7 mln Bulga
Slide 6: Investment Highlights Summary
Investment Highlights Summary • #3 by reserves and #4 by production in Ukraine among private coal producers(1); Significant reserves 1 with growth potential • 235 mln.t of in-place coal resources under JORC, 151 mln.t of proven and probable coal reserves under JORC(2); • 2x reserves growth potential
Slide 7: 2. Coal Mining Market Overview
2. Coal Mining Market Overview 7
Slide 8: Thermal coal market: strong demand and perspectives on the domestic market
Thermal coal market: strong demand and perspectives on the domestic market …. • Local power plants bought 37.2 mln tonnes of salable coal in 2011, which accounted for 82% from the total thermal coal output. During 7 months 2012 the power plants consumed 4.4% more thermal coal compared to the same pe
Slide 9: Thermal coal market: growing competition and lagged demand on export destinations
Thermal coal market: ... growing competition and lagged demand on export destinations The countries of Eastern Europe and Turkey are the key destinations Price increase for thermal coal is caused by growing for export opportunities demand for it in Ukraine, but margins experience Largest thermal coa
Slide 10: Coking coal market: price correction on the back of significant deferred demand
Coking coal market: price correction on the back of significant deferred demand Extraction has been falling since 2001… Local private mining companies Correction in prices is caused by volatility on Ukraine’s Coking Coal Output, Mt (7 months 2012) dominate in volume of extraction the steel market (7
Slide 11: 3. FY12E and 4Q FY12E Performance Overview
3. FY12E and 4Q FY12E(1) Performance Overview (1) Here and after “E” stands for estimated data 11
Slide 12: Integrated Business Model
Integrated Business Model Coal Energy activities include all stages of coal production, waste dumps processing, coal beneficiation and trading, the first two from the list being the key activities of the company Consumers Government (2) ROM coking coal Sales of ERUs(1) Acquisitions from third pariti
Slide 13: Key Company Sales Indicators
Key Company Sales Indicators Coal sales volume, kt 1,575 1,600 1,472 1,600 In the 3Q FY12 CE faced decrease of sales caused by severe weather 1,200 1,200 conditions as well as temporary demand fluctuations. 818 Company managed to market the 800 800 coal inventory surplus arisen in 3Q FY12 in 4Q FY12
Slide 14: Production and Cash Costs Overview
Production and Cash Costs Overview Underground Mining, kt Waste Processing, kt 1,800 1,639 600 568 1,600 310 500 105 thousand tonnes of middlings were 1,400 beneficiated on Postnikovskaya plant into 60 thousand tonnes of high quality 1,200 1,061 400 coal concentrate 400 1,000 267 300 262 800 1,329 1
Slide 15: Dynamics of Production Results
Dynamics of Production Results Coal output by types of coal, kt 200 182 182 178 178 180 150 151 152 152 152 155 25 23 25 25 160 147 147 147 147 140 21 24 24 29 28 28 26 28 28 26 120 100 80 153 156 157 157 60 125 123 123 121 121 123 125 126 124 126 40 20 - Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Ja
Slide 16: 4. Development Strategy for FY13
4. Development Strategy for FY13 16
Slide 17: Development Strategy for FY13: underground mining
Development Strategy for FY13: underground mining Estimated vs. Budgeted CAPEX for FY12 Plan of Group’s own coal production growth until FY16 4 3.8 60 Eximenergo 107% growth in CAGR for the period monthly output FY13 – FY16 is 3.4 8.5 expected at 23% Novodzerzhynskaya 26% growth in 2.9 50 monthly ou
Slide 18: Waste Dumps Processing Production Process
Waste Dumps Processing Production Process 1 Due to very extensive mining in the Donbas region, hundreds of waste piles with heterogeneous composition were created during the Soviet times: ash content varies from 50% to 92% 2 Waste material is separated by the screen by fractions: 0-40mm (further pro
Slide 19: Appendix 1. Legal Structure
Appendix 1. Legal Structure Luxembourg Coal Energy S.A. 100% Cyprus Nertera Investments Limited 100% BVI Coal Energy Trading Ltd 99% 99% Tekhinnovatsiya LLC Ugledobycha LLC 99% 99% Donbasuglerazrabotka LLC Eximenergo LLC 99% 99% Donantracit LLC Nedra Donbasa LLC Ukraine 99% 99% Antracit LLC CwAL LE
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