Synthesis Energy Systems Inc · OTC:SYNE
Synthesis Energy Systems — Investor Presentation (June 2017)
18 slides from Synthesis Energy Systems's investor presentation, Jun 2, 2017
Slide 1: Australian Future Energy Overview – May 2017
Synthesis Energy Systems, Inc. Clean - Economic - Sustainable Global Energy AUSTRALIAN FUTURE ENERGY OVERVIEW – MAY 2017
Slide 2: SES Forward-looking Statements
SES Forward - looking Statements 2 This presentation includes “forward - looking statements” within the meaning of Section 27 A of the Securities Act of 1933 , as amended, and Section 21 E of the Securities Exchange Act of 1934 , as amended . All statements other than statements of historical fact a
Slide 3: Australian Future Energy (AFE) Overview
Australian Future Energy (AFE) Overview 3 • $US 1B + resource ownership & clean energy project opportunity. • Differentiated by unique lower emissions from SES syngas production technology. • Large pipeline (circa $US 10B) projects under evaluation today and down - selecting two initial projects for
Slide 4: AFE Background
AFE Background • Australian Future Energy Pty Ltd (AFE) was formed in November 2014 by Edek Choros and Synthesis Energy Systems Inc. (SES) • Edek Choros is a coal mining veteran with over 25 years of successful professional experience in coal mining and mine development in Australia and the USA. • S
Slide 5: SES Ownership Structure – Australia April 2017
SES Ownership Structure – Australia April 2017 5 Choros SES, Inc AFE Directors and Others AFE Pty Ltd Great Northern Energy Pty Ltd SPV Batchfire Resources Callide Coal Operation Pentland, 270MM ton resource Other Batchfire Shareholders Others 88.6% SES 11.4% SES ~40% Future AFE Project Companies SP
Slide 6: AFE Strategy
AFE Strategy AFE is building a large - scale vertically integrated business in Australia based on developing, building and owning equity interests in financially attractive and environmentally responsible projects that produce agrichemicals and energy products from local coal and renewable resources
Slide 7: AFE Business Model
AFE Business Model • Exclusive rights in Australia to SES unique syngas generation technology through which AFE receives shared licensed fee income with SES. • Securing investment into financially attractive projects and delivering financial results through its equity ownership in the projects devel
Slide 8: AFE Business Model Diagram
AFE Business Model Diagram Mining and coal processing operations Coal resources Export thermal coal Syngas Production & Purification Synthetic Natural Gas (SNG) Low Emission Power Fertilizer Urea By - products: Ash (Cement) Steam, Sulphur Coal Biomass Pelletizing Biomass resources Export Biomass Met
Slide 9: AFE Progress Report
AFE Progress Report Date Milestone 2013 AFE Concept Initiated by Edek Choros and Robert Rigdon (SES) 2013 Market test confirmation (Kevin’s Corner, Callide) Dec 2014 MOU for AFE Formation and Master Technology Agreement June 2015 AFE Shareholding and Master Technology Agreements 2015 Secured exclusi
Slide 10: Australia Market Outlook NG & LNG
Australia Market Outlook NG & LNG 10 • LNG Exports of ~28 MM tonnes of LNG in 2015; likely over 40 million tonnes in 2016 and forecast of 64 million tonnes in 2017 and over 70 million tonnes in 2018. • Further, decommissioning of coal fired power plants shifting more demand to NG. • Increase of A$4
Slide 11: Australia Market Outlook Urea
Australia Market Outlook Urea 11 • Import replacement & export market opportunities for AFE • Urea most commonly made from NG. • Local Urea demand is ~ 2Mt pa & local manufacturer is Incitec Pivot (IPL) via Brisbane plant producing around 0.3Mt (NG based). • Fertilizer consumption in South Asia has
Slide 12: Fertilizer (Urea) plus SNG Project Overview
Fertilizer (Urea) plus SNG Project Overview 12 Urea/SNG & By - Products Coal Power O&M plus Other Urea 88% SNG 10% By - Products 2% Preliminary Assumptions ($ AUD) • Total Installed Cost ~A$2.5B • Products: Urea 1.6MM MT/a; SNG 10.5 PJ/a • Coal rate: ~2.3MM MT/a • NPV (10%) ~ A$2B; IRR + 15% (ungear
Slide 13: AFE Project Pipeline
AFE Project Pipeline ~US$10B Under Evaluation • P1 Agrichemicals Urea and By - Product SNG • P2 Agrichemicals Urea and By - Product SNG • P3 Agrichemicals Urea and By - Product SNG • P1 Synthesis Gas for Aluminum Manufacturing • P2 Synthesis Gas for Aluminum Manufacturing • Great Northern Energy - P
Slide 14: Plan Overview & Key Milestones
Initial Advice Statement to QLD Initial offtake commitments PDP and FEED (10 months) Start Permitting Process Definitive Agreements EPC Contract Project 2 Project Funding – Const. Start Plan Overview & Key Milestones IM Prep and initiate fund raise $20MM Initial Advice Statement to QLD Initial offta
Slide 15: AFE Organization
AFE Organization Top Line AFE Board of Directors Stephen Lonie – Chairman Robert Rigdon (SES) - Deputy Chairman Edek Choros – AFE Executive Director Richard Barker – Director Industry Experienced Professionals • Australian and International Project Development • Clean Energy and Coal Industry • Larg
Slide 16: An AFE Success Story
16 An AFE Success Story • Created by AFE and spun - out in 2016 • Acquired Callide Coal Mine • Open pit thermal coal mine and associated processing infrastructure • Produced 7.6 million tonnes (Mt) of coal in 2014 • Two adjacent power stations under long term contracts. • Local and export market sal
Slide 17: AFE Directors’ Profiles
AFE Directors’ profiles Edek Choros – Executive Director • Geologist with over 25 years of professional experience in coal exploration, mine design, mine planning and management of “tu rn around” operations for a number of coal mines in Australia and the USA • Founder, CEO and MD of Millennium Coal
Slide 18: AFE Directors’ Profiles
AFE Directors’ profiles Richard Barker – Independent Director • 25+ years of investment banking and corporate finance, including mergers and acquisitions, valuations and general corporate g uid ance • Strong and broad contact network • Former Managing Director and co - head of the metals & mining in
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