Stanmore Resources Ltd · ASX:SMR
Stanmore Resources — Stanmore Coal — Investor Presentation (July 2017)
18 slides from Stanmore Resources's investor presentation, Jul 24, 2017
Slide 1: June 17 Quarterly Presentation
For personal use only JUNE 17 QUARTERLY PRESENTATION
Slide 2: Important Information
IMPORTANT INFORMATION For personal use only This document has been prepared by Stanmore Coal seek appropriate advice, including financial, legal and earnings and estimates are provided as a general guide Limited (“Stanmore Coal”) for the purpose of providing a taxation advice appropriate to their ju
Slide 3: Stanmore Coal Overview: The Right Path to Value
STANMORE COAL OVERVIEW THE RIGHT PATH TO VALUE For personal use only ASX code Share price INDEPENDENT COAL COMPANY SMR A$0.3351 Positioned in right commodity in the right time of the cycle . Shares Market cap 251,107,978 $84.4m1 ISAAC PLAINS OPERATIONAL WITH DEMONSTRATED PERFORMANCE Validation that
Slide 4: The Leadership Team
THE LEADERSHIP TEAM NOT JUST EXPERIENCE For personal use only • 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
Slide 5: Pulling the Value Levers
PULLING THE VALUE LEVERS A CASH GENERATIVE, CAPITAL LIGHT, FULLY FUNDED PLATFORM ON WHICH TO GROW For personal use only 2017 2018–2019 2020 - 2025 2025 – Onwards CURRENT POSITION PHASE 1 – SHORT TERM PHASE 2 – MEDIUM TERM PHASE 3 - LONGTERM • Right platform at the right time in cycle • ‘Sweat’ the a
Slide 6: Phase 1 – Short Term: The Right Methodology for Value Creation
PHASE 1 – SHORT TERM THE RIGHT METHODOLOGY FOR VALUE CREATION For personal use only VALUE CREATION FROM: 1 • Coal handling infrastructure in place at a replacement value of >$350m with underutilised capacity • Open cut mining method at Isaac Plains, Isaac Plains East and beyond utilising a dragline
Slide 7: Phase 1 – Short Term: Incremental Volume and Life Extension Opportunities
PHASE 1 – SHORT TERM INCREMENTAL VOLUME AND LIFE EXTENSION OPPORTUNITIES For personal use only 3,500,000 CONTROLLED STRATEGIC Product tonnes (t) 3,000,000 2,500,000 2,000,000 IPUG #2 (3xCM) UG #3 Target (3xCM) 1,500,000 IPE 1,000,000 500,000 IP IPUG #1 (2xCM) DL Target #1 0 2018 2019 2020 2021 2022
Slide 8: Phase 2 – Medium Term: Portfolio Offers Multiple Hub Opportunities
PHASE 2 – MEDIUM TERM THE STANMORE PORTFOLIO OFFERS MULTIPLE ‘HUB’ OPPORTUNITIES For personal use only BOWEN BASIN – SURAT BASIN – COKING COAL THERMAL COAL ISAAC PLAINS – 100% THE RANGE – 100% Operations Development (pending infrastructure) ISAAC PLAINS EAST – 100% CLIFFORD – 60% Development Explora
Slide 9: Phase 2 – Medium Term: Transition to an Integrated Coal Company
PHASE 2 – MEDIUM TERM THE TRANSITION TO AN INTEGRATED COAL COMPANY For personal use only 10,000,000 8,000,000 Hub #3 Product tonnes (t) 6,000,000 Hub #2 4,000,000 2,000,000 IPUG #2 (3xCM) UG #3 Target (3xCM) IPE IP IPUG #1 (2xCM) DL Target #1 0 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028
Slide 10: Isaac Plains Update
For personal use only ISAAC PLAINS UPDATE
Slide 11: Safety
SAFETY For personal use only TWO INJURIES (TRI) STANMORE COAL SAFETY STATISTICS DURING QUARTER PAST 12 MONTHS TO DATE During the March quarter, there were two injuries (TRI) (including one lost 50,000 20 time injury) at the Isaac Plains Mining Complex, with no other injuries recorded 45,000 across o
Slide 12: Investment in Revised Mine Plan Complete
INVESTMENT IN REVISED MINE PLAN COMPLETE SIGNIFICANT OPERATIONAL RELIABILITY GAINED For personal use only PROGRESS AGAINST THE PLAN PRIME STRIP RATIO In December 2016 the Company announced a capital 20 raising for A$15 million (pre costs) to invest in both pre- strip advancement and coal inventory,
Slide 13: Operating Results – Mine Physicals and Costs
OPERATING RESULTS – MINE PHYSICALS AND COSTS For personal use only PRIME WASTE OVERBURDEN (BCM) ROM COAL MINED 7,000 600 6,000 500 5,000 400 k tonnes kbcm 4,000 300 3,000 200 2,000 100 1,000 - - Q1-FY17 Q2-FY17 Q3-FY17 Q4-FY17 FY18 IPE 1st 3yrs* Q1-FY17 Q2-FY17 Q3-FY17 Q4-FY17 FY18 IPE 1st 3yrs* Act
Slide 14: Operating Results – Mine Physicals and Costs
OPERATING RESULTS – MINE PHYSICALS AND COSTS For personal use only PRODUCT TONNES PRODUCED FOB COSTS (A$/TONNE) 400 140 350 120 300 100 250 80 k tonnes 200 60 150 40 100 50 20 - - Q1-FY17 Q2-FY17 Q3-FY17 Q4-FY17 FY18 IPE 1st 3yrs* Q1-FY17 Q2-FY17 Q3-FY17 Q4-FY17 FY18 IPE 1st 3yrs* Actual Average Qua
Slide 15: Coal Price Outlook
COAL PRICE OUTLOOK For personal use only RECENT VOLATILITY TO HISTORICAL SPOT COAL PRICE (USD) STABILISE IN MEDIUM TERM 350 During the quarter the Company sold 265kt of semi-soft coking coal, with no thermal sales in the quarter. The 300 average shipped price for all coal during the June quarter was
Slide 16: Projects Update
For personal use only UPDATE PROJECTS
Slide 17: Isaac Plains East Indicative Timetable to Production
ISAAC PLAINS EAST INDICATIVE TIMETABLE TO PRODUCTION (FINANCIAL YEAR BASIS) For personal use only Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY17 FY17 FY17 FY17 FY18 FY18 FY18 FY18 EA Amendment and Resolution of key Public Potential grant date Potential first ML Applications negotiations with notification for Mining L
Slide 18: Isaac Plains Underground Indicative Timetable to Investment Decision
ISAAC PLAINS UNDERGROUND INDICATIVE TIMETABLE TO INVESTMENT DECISION (FINANCIAL YEAR BASIS) For personal use only Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY17 FY17 FY17 FY17 FY18 FY18 FY18 FY18 Exploration planning Feasibility focusing on Target Investment and project scheduling optimal bord & pillar decision on bu