Celsius Resources Ltd. · ASX:CLA
Celsius Resources — Celsius Coal — Investor Presentation (January 2013)
35 slides from Celsius Resources's investor presentation, Jan 15, 2013
Slide 1: Premium Coal Supply for China and Central Asia
For personal use only PREMIUM COAL SUPPLY FOR CHINA AND CENTRAL ASIA January 2013
Slide 2: Disclaimer
Disclaimer For personal use only The information contained in this presentation (“Presentation”) has been prepared by Celsius Coal Ltd (“Company” or “Celsius” or “CLA”) and is being communicated for general background informational purposes only. The information contained in this Presentation is sub
Slide 3: Company snapshot
For personal use only Company snapshot Section 1 Drill rig operating at Kargasha, 2012 (Uzgen Basin coking coal project) 3
Slide 4: Capitalization and structure
Company snapshot Capitalization and structure For personal use only Capitalization summary Corporate structure Share price (at Jan 14, 2012) A$0.018/share Australia Celsius Coal Shares outstanding 1,732.0m Ltd. Market capitalization A$31.2m Hong Kong 100% 80% Cash* (at Sept 30, 2012) A$1.9m Enterpri
Slide 5: License location and tenure
Company snapshot License location and tenure For personal use only Uzgen Basin coking coal licenses Tuyuk Kargasha Status: Exploration license Expiry: December 2013 Size: 8,000ha Kokkia Status: Exploration license Expiry: December 2013 Size: 1,576ha Sary Mogol Bel Alma Min Teke Alai Status: Mining l
Slide 6: Directors
Company snapshot Directors For personal use only Name and position Background Alexander Molyneux Previously CEO, SouthGobi Resources (2009-2012) – largest foreign coal producer in Executive Chairman Mongolia (US$550M market cap./ US$800M EV). Successfully took SouthGobi from explorer to mine produ
Slide 7: Investment themes
For personal use only Investment themes Section 2 Hard black bituminous coal recovered during core drilling at Kargasha, 2012 7
Slide 8: Large-scale coking coal resource potential
1 Large-scale coking coal resource potential Medium-term JORC resource target is 500-700mt For personal use only Celsius exploration targets Scale vs. China and near-China peers (coking coal only) Uzgen Basin coking coal MMC 853 SouthGobi 742 Tuyuk Hidili 733 381 – 475mt Kargasha Celsius 700 Aspire
Slide 9: Well-known geology: extensively established Soviet resource
2 Well-known geology Licenses cover an extensively established Soviet resource For personal use only Uzgen Basin coking coal project area Soviet era exploration TK KK MT Drilling 60 – – (holes) Drilling 28.9 – – (km) Adits / ✔ ✔ ✔ trenches Coke ✔ ✔ – testing Prior – – ✔ Mining 9
Slide 10: Geology confirmed by exploration programs started in 2012
2 Well-known geology Geology confirmed by exploration programs started in 2012 For personal use only 2012 exploration activities 2012 and Soviet drillhole locations on TK Tuyuk-Kargasha Seven new drillholes – 3,280m total drilling Six twins of Soviet holes and one new exploration hole 154 sa
Slide 11: 2012 work confirms large-scale coking coal potential
2 Well-known geology 2012 work confirms large-scale coking coal potential For personal use only Tuyuk-Kargasha All seven drillholes intersected coal Broadly correlate with Soviet era data, although typically more coal seams and thicker coal intervals (as expected due to improvement in exploratio
Slide 12: Uzgen Basin licenses contain best quality coking coals
3 Premium quality coals Uzgen Basin licenses contain best quality coking coals For personal use only Indicative coal qualities Calorific Volatile Inherent Ashdb Sulphurdb Soviets confirmed Valuedaf Matterdaf Moisture Soviet era data1 (%) (%) coking2 (Kcal/kg) (%) (%) Tuyuk-Kargasha 7,700-8,700 17-39
Slide 13: Uzgen Basin licenses contain best quality coking coals
3 Premium quality coals Uzgen Basin licenses contain best quality coking coals For personal use only Chinese coking coal classification system China’s benchmark (Shanxi Liulin – 2012 China pricing US$190-240/t) Fat (FM) Gas fat (QF) Australian benchmark premium hard coking coal (Goonyella – 2012 sea
Slide 14: Alai Range coals are clean premium thermal coals
3 Premium quality coals Alai Range coals are clean premium thermal coals For personal use only Indicative coal qualities1 Calorific Volatile Inherent Ashad Sulphurd Valuead Matterad Moisture (%) (%) (Kcal/kg) (%) (%) Sary Mogol 4,300-6,400 27-34 5-9 8-32 0.4-0.6 Bel Alma 5,200-7,300 28-31 2-4 2-23 0
Slide 15: China: Coking coal imports are surging again
4 Proximity to growing high-value markets China: Coking coal imports are surging again For personal use only China coking coal imports by source (2011 – 2012 YTD) 7,000 Imports Impact of recovering to 6,000 China near-record 2011 growth levels slowdown continued from 5,000 2006-2007 Tonnes ‘000 4,00
Slide 16: China: Celsius Uzgen assets are among closest to China
4 Proximity to growing high-value markets China: Celsius Uzgen assets are among closest to China For personal use only Distance to China for China proximate producers and distance to port for seaborne producers 1,800 China proximate projects and producers Seaborne producers (+ additional 7,000- 1,60
Slide 17: China: Xinjiang, the Chinese neighbour with unique prospects
4 Proximity to growing high-value markets China: Xinjiang, the Chinese neighbour with unique prospects For personal use only Xinjiang Province China, basic facts Kyrgyz Republic, Xinjiang Province and China Population: 22m GDP/capita: US$4,600 (1/3-1/2 coastal levels) Xinjiang development and in
Slide 18: China: Celsius has Xinjiang's nearest premium coking coal
4 Proximity to growing high-value markets China: Celsius has Xinjiang’s nearest premium coking coal For personal use only Xinjiang’s key coking coal markets – Steel Mills Key customers Urumqi area 10mtpa coking coal market by 2015 Key customer: Bayi Steel 10mtpa steel maker (sub of Baosteel – Ch
Slide 19: Kyrgyz Republic and Central Asia: Premium markets
4 Proximity to growing high-value markets Kyrgyz Republic and Central Asia: Premium markets For personal use only Kazakhstan – thermal coal price US$65-90/t Bishkek / Talas market – US$65-105/t Jalalabad / Osh market – thermal coal price US$110-140/t Tajikistan – thermal coal price US$130-160/t 19
Slide 20: Existing roads link to Kashgar
5 Feasible routes to market Existing roads link to Kashgar (major market and China rail) For personal use only Existing Kyrgyz road export routes to China Export route for Uzgen Basin coking coal Uzgen Basin coking coal to Osh (130km) Osh to Irkeshtam border crossing (255km) Cost to border app
Slide 21: Trans-Asia railway will transform access for Uzgen project
5 Feasible routes to market Trans-Asia railway will transform access for Uzgen project For personal use only Existing primary road route and proposed TAR Rail export potential for Uzgen coking coal China, Kyrgyz Republic and Uzbekistan have agreed to construct a 20mtpa railway, linking the three c
Slide 22: Milestones and strategies
For personal use only Milestones and strategies Section 3 Mining operations at Min Teke, 2012 22
Slide 23: Fast-track to establish a scale coking coal export operation
Milestones and strategies Fast-track to establish a scale coking coal export operation For personal use only Maiden JORC standard resource (end of Q1) – remaining 2012 drillhole analyses to be received in January followed by report preparation Establishment of customer relationship or distributi
Slide 24: More on geology
For personal use only More on geology Appendix 1 24
Slide 25: Location of projects
More on geology Location of projects For personal use only Geological map of Kyrgyz Republic 25
Slide 26: Geological map of Tuyuk Kargasha
More on geology Geological map of Tuyuk Kargasha For personal use only E B H F A C G D *A-B, C-D, E-F and G-H Interpreted Cross Sections through the Tuyuk Kargasha License showing Celsius 2012 and historical Soviet era drilling. 26
Slide 27: Tuyuk Kargasha interpreted cross-sections
More on geology Tuyuk Kargasha interpreted cross-sections For personal use only Interpreted cross-sections showing 2012 and historical drilling DD12TK007 DD12TK002 A B 4.89m coal 4.29m coal in 7 seams in 8 seams DD12TK001 C D 4.43m coal in 4 seams 27
Slide 28: Tuyuk Kargasha interpreted cross-sections (continued)
More on geology Tuyuk Kargasha interpreted cross-sections (continued) For personal use only Interpreted cross-sections showing 2012 and historical drilling DD12TK003 DD12TK006 E F 4.94m coal 8.52m coal in 10 seams in 16 seams DD12TK004 DD12TK005 G H 1.63m coal 9.28m coal in 3 seams in 14 seams 28
Slide 29: Tuyuk Kargasha and Min Teke prospects
More on geology Tuyuk Kargasha and Min Teke prospects For personal use only Schematic cross section through the Tuyuk Kargasha and Min Teke prospects showing interpreted geology and the structure of the Tuyuk formation Note the shallow dip of the beds as well as small scale folding resulting in
Slide 30: About Kyrgyz Republic
For personal use only About Kyrgyz Republic Appendix 2 30
Slide 31: A parliamentary democracy with a young population
About Kyrgyz Republic A parliamentary democracy with a young population For personal use only Country background Politics Size:199,900km2 (halfway between UK and System: parliamentary democracy Greece in size) Key figures Location: Central Asia, west of China and south President: Almazbek
Slide 32: Positive attitude to trade and business with China
About Kyrgyz Republic Positive attitude to trade and business with China For personal use only China-Kyrgyz relations Premier Wen and PM Satybaldiev (2012) China and Kyrgyz Republic were both founding members of the Shanghai Cooperation Organization in 1996 China now represents 80% of Kyrgyz exp
Slide 33: Relatively benign minerals law and attractive fiscal regime
About Kyrgyz Republic Relatively benign minerals law and attractive fiscal regime For personal use only Basic elements of law and administration Fiscal regime Minerals licensing is predominantly managed by Total royalty: 4.3%, made up of: the State Agency for Geology (SAG), which Mineral royal
Slide 34: Contacts
Contacts For personal use only Celsius Coal Limited Registered Office: Level 1, 12 Kings Park Road, WEST PERTH, WA, AUSTRALIA, 6005 Telephone: +61 8 9226 4500 Facsimile: +61 8 9226 4300 Website: www.celsiuscoal.com.au Email: info@celsiuscoal.com.au 34
Slide 35: Competent persons statement
Competent persons statement For personal use only The information in this Presentation that relates to exploration results and Exploration Targets relating to the Kyrgyz Republic Projects is based on information compiled by Grant Thomas who is Managing Director of Celsius Resources and a Member of t