Slide 1: FY2018 Results Presentation
FY2018 RESULTS PRESENTATION
Slide 2: Important Information
IMPORTANT INFORMATION This document has been prepared by Stanmore Coal own objectives, financial situation and needs and seek current market conditions. Forward looking statements Limited (“Stanmore Coal”) for the purpose of providing a appropriate advice, including financial, legal and taxation inc
Slide 3: Highlights
HIGHLIGHTS INITIAL STAGES OF THE STRATEGY SUCCESSFULLY EXECUTED LEADING TO STRONG RESULTS AND A MAIDEN DIVIDEND OPERATE REHABILITATE Gross Profit of $52.29m up 55% Underlying EBITDA (non-IFRS measure) of $45.55m up 70% 91ha of final rehabilitation complete Maiden Dividend of 2 cents per share $8m re
Slide 4: Health and Safety
HEALTH AND SAFETY MANY POSITIVE STEPS FORWARD AND THERE REMAINS MUCH WORK TO BE DONE Stanmore Coal TRIFR 25.00 20.00 15.00 10.00 5.00 - Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 TRIFR TRIFR Target (rolling 12mth average) • Stanmore Coal has committed signifi
Slide 5: Financial Highlights
FINANCIAL HIGHLIGHTS RECORD FULL YEAR EARNINGS AND RECORD CASH GENERATION FROM OPERATIONS $M FY2018 FY2017 Comments Key financial measures Underlying EBITDA 45.5 26.8 Record earnings with 70% increase on prior year. Refer adjustments on following page Net profit /(loss) after tax for the year 6.0 12
Slide 6: Financial Highlights
FINANCIAL HIGHLIGHTS RECORD FULL YEAR EARNINGS $M FY2018 FY2017 Comments Revenue 208.1 137.9 Record revenue, 51% higher than prior year Cost of sales (155.8) (104.1) Increase in costs reflects production acceleration plan, increase in State royalties, increased demurrage at port and higher sales vol
Slide 7: Financial Highlights
FINANCIAL HIGHLIGHTS BUILDING THE BALANCE SHEET $M FY2018 FY2017 Comments Cash on hand 19.8 27.5 Cash invested in the development of Isaac Plains East ($7.3m) Interest bearing liabilities - (15.6) Debt fully repaid. US$22m working capital facility undrawn Net cash / (debt) 19.8 11.9 66% increase in
Slide 8: Operational Performance
OPERATIONAL PERFORMANCE ISAAC PLAINS AND ISAAC PLAINS EAST Isaac Plains PHYSICALS FY2018 FY2017 • Production was accelerated at Isaac Plains with a small increase in costs to Prime Overburden (bcm) 23,382 22,345 maximise the financial performance of the operation. ROM coal produced – Open cut (kt) 1
Slide 9: Environment
ENVIRONMENT COMMITTED TO REHABILITATION • Rehabilitation increased during the year with 128ha recontoured and 91ha top-soiled and seeded. • Additionally, a number of improvement projects were undertaken to improve water management infrastructure and integrity across the Isaac Plains Complex. • The r
Slide 10: Community
COMMUNITY COMMUNITY RESPONSIBILITY • Stanmore’s presence in the community in which our operations are predominantly positioned was supported by a number of grants, sponsorships and important community initiatives and events. • Significant ‘in-kind’ time was also dedicated to regional industry bodies
Slide 11: The Outlook
THE OUTLOOK TRANSITIONING TO ISAAC PLAINS EAST AND FAST TRACKING ISAAC DOWNS ARE MAJOR STEPS FORWARD IN BRINGING THE INFRASTRUCTURE TO 3.5MT Isaac Downs (previously Wotonga South) • 10 kilometres south of the existing coal handling and processing plant (CHPP) at Isaac Plains. • The deposit will supp
Slide 12: Supporting Information
SUPPORTING INFORMATION FY2018 Results Presentation 12
Slide 13: Stanmore Coal Overview
STANMORE COAL OVERVIEW SIGNIFICANT STEPS TAKEN ON THE RIGHT PATH TO VALUE ASX code Share price INDEPENDENT COAL COMPANY SMR A$0.821 Positioned in right commodity in the right time of the cycle. Shares Market cap ISAAC PLAINS AND ISAAC PLAINS EAST 251,800,978 $206.5m1 OPERATIONAL WITH DEMONSTRATED PE
Slide 14: Board of Directors
BOARD OF DIRECTORS WEALTH OF EXPERIENCE CREATING THE BUILDING BLOCKS FOR A GROWING ORGANISATION STEWART BUTEL • More than 40 years of experience in operational management and board roles in the resources industry in New South Wales, Queensland and Western Australia. NON-EXECUTIVE • Stewart joined We
Slide 15: Board of Directors
BOARD OF DIRECTORS WEALTH OF EXPERIENCE CREATING THE BUILDING BLOCKS FOR A GROWING ORGANISATION • Co-founder and Managing Director of Sprint Capital, a Hong Kong based private equity investment management group. CHRIS MCAULIFFE • Chris has more than 20 years’ experience in private equity and investm
Slide 16: The Leadership Team
THE LEADERSHIP TEAM • More than 20 years’ experience in the coal mining industry DAN CLIFFORD • Has worked in Australia, South Africa and New Zealand MANAGING DIRECTOR • Substantial open cut and underground coal mining experience • Previously roles were with Solid Energy, Glencore, Anglo Coal and BH
Slide 17: The Strategy
THE STRATEGY CASH GENERATION, CAPITAL LIGHT APPROACH AND FUNDING ALL IN PLACE DRIVING CERTAINTY IN STRATEGIC OUTCOMES 2017 2018–2019 2020–2025 2025 onwards CURRENT POSITION PHASE 1 – SHORT TERM PHASE 2 – MEDIUM TERM PHASE 3 – LONG TERM • ‘Sweat’ the asset to 3.5Mt ROM feed • Size / scale 10Mt • Dive
Slide 18: Isaac Plains Complex
ISAAC PLAINS COMPLEX Isaac Plains Isaac Plains CHPP Isaac Plains East Isaac Plains UG December 17 Quarterly Presentation 18
Slide 19: Resources
RESOURCES Coal Resources, June 2018 Coal Measured Indicated Inferred Total Competent Report Project Name Tenement Type * Resources Resources Resources Resources Person Date ML 70342, Isaac Plains ML 700018, C,T 22.2 21.3 9 52 A May-18 ML 700019 ML 700016, ML 700017, Isaac Plains East C 12.9 8.8 8 30
Slide 20: Reserves
RESERVES Coal Reserves, June 2018 Coal Reserves Marketable Reserves Competent Report Project Name Tenement Proved Probable Total Proved Probable Total Person Date Isaac Plains ML 70342 1.8 0.9 2.7 1.3 0.7 2.0 E Aug-18 Open-cut ML 700016, Isaac Plains East ML 700017, 10.3 1.9 12.2 8.0 1.5 9.5 E Aug-1