Whitehaven Coal Limited · ASX:WHC
Whitehaven Coal — Investor Presentation (June 2008)
31 slides from Whitehaven Coal's investor presentation, Jun 16, 2008
Slide 1: Whitehaven Coal Limited Investor Presentation
For personal use only Whitehaven Coal Limited Investor Presentation J June 2008
Slide 2: Disclaimer
For personal use only Disclaimer Statements contained in this material, particularly those regarding the possible or assumed future performance, costs, dividends, returns, production levels or rates rates, prices prices, reserves reserves, potential growth of Whitehaven Coal Limited, industry growth
Slide 3: Qualifications and Statement
For personal use only Qualifications and Statement The information in this report that relates to Coal Resources and Reserves of the Whitehaven Group is based on information compiled by Mr David West, who is a Member of the Australasian Institute of Mining & Metallurgy Metallurgy. Mr West MAusIMM is
Slide 4: Contents
Contents For personal use only Company Background • A Snapshot • Assets • People C Current t St Status t • Substantial Growth • Narrabri Project • Supporting Infrastructure Looking Ahead • Market • Demand outstrips Infrastructure • Outlook • Objectives j Further Information June 2008 3
Slide 5: Whitehaven Coal - a snapshot
Whitehaven Coal - a snapshot For personal use only IPO’d in i JJune 2007 att $1 $1.00/share 00/ h after ft 8 years as a private i t coy. Superior quality coal produced from relatively low cost mines Existing production of ~ 3.5 Mpta from 3 open cut mines 3 new mines (2 open cut & 1 underground longw
Slide 6: Whitehaven's assets
Whitehaven’s Whitehaven s assets For personal use only Narrabri (92.5%) • Coal Type: Thermal • Underground mine in development Bonshaw (66.7% interest) (North) and exploration project (South) • Coal Type: Coking • Narrabri North Resources of 230 Mt and • Exploration prospect at exploration include R
Slide 7: Whitehaven is the leading developer in the Gunnedah Basin
Whitehaven is the leading developer in the Gunnedah Basin For personal use only Whitehaven has the “first mover advantage” in the Gunnedah Basin Whitehaven’s Whiteha en’s tenement area e exceeds ceeds 427 km2 Managed production of ~3.5 3.5 Mtpa from 3 mines Three greenfield projects in the pipeline
Slide 8: Large portfolio of superior quality coal
Large portfolio of superior quality coal For personal use only Project j JORC Resources JORC Marketable Reserves (Mt) (Mt) Whitehaven Mining Precinct 170.8 15.3 Werris Creek 26 3 26.3 - Narrabri 438.2 102.7 Total 635.3 118.0 Whitehaven has a history of converting Resources to Reserves Whitehaven’s s
Slide 9: Experienced managers/owners
Experienced managers/owners For personal use only Director/Title Experience • Directors have 200 years of cumulative experience. John Conde AO +30 years commercial experience • Directors have a proven track Non-Executive Chairman record as mine developers and Rob Stewart +35 years coal and construct
Slide 10: Contents
Contents For personal use only Company p y Background g • A Snapshot • Assets • People Current Status • Substantial Growth • Narrabri Project • Supporting Infrastructure Looking Ahead • Market M k • Demand outstrips Infrastructure • Outlook • Objectives Further Information June 2008 9
Slide 11: Substantial growth
Substantial growth For personal use only Canyon To go on “stand-by” stand-by as new new, low strip ratio Rocglen mine is developed Tarrawonga Open cut producing 1.5 Mtpa of thermal and PCI/SSCC coal Werris Creek Open cut producing 1.5 Mtpa of thermal and PCI coal with potential for 2 Mtpa Rocglen Ne
Slide 12: Established production with high growth
Established production with high growth For personal use only Planned Production by y Mine ((100% basis)) Pl Planned d Production P d ti by b Coal C l Type T (100% basis) b i ) 14 14 12 oduction (Mttpa) 12 uction (Mtpa) 10 10 Narrabri North 8 8 Werris Creek 6 Sunnyside y 6 Pro Produ Tarrawonga o/cut
Slide 13: Narrabri North Coal Project
Narrabri North Coal Project 16 For personal use only Saleable Production Mt (100% basis) 14 12 10 8 6 4 2 Narrabri North Narrabri North 0 FY2006a FY2007f FY2008f FY2009f FY2010f FY2011f FY2012f Location Adjacent to existing rail, power and road infrastructure Strategic JV partner Yudean is a major C
Slide 14: New projects are on track and coordinated with infrastructure development
New projects are on track and are coordinated with ith planned l d iinfrastructure f t t d development l t For personal use only June 2008 13
Slide 15: Rail infrastructure will meet Whitehaven's growth
Rail infrastructure will meet Whitehaven’s Whitehaven s growth For personal use only Current rail capacity is 4 Mtpa north of Werris Creek and 7 Mtpa south of Werris Creek…sufficient to meet Whitehaven’s current production Works now underway will increase capacity from July 2008 to 7Mtpa north of We
Slide 16: Port infrastructure to meet growth plans
Port infrastructure to meet growth plans For personal use only Existing PWCS Terminal − PWCS port at Newcastle is experiencing capacity constraints − PWCS’s PWCS s capacity of 95 Mtpa in CY2008 with planned port expansion in CY2009 to 113 Mtpa but will probably actually deliver 105 Mtpa Newcastle Co
Slide 17: Port Demand outstrips Growth Plans
Port Demand outstrips Growth Plans For personal use only June 2008 16
Slide 18: Port Demand outstrips Growth Plans
Port Demand outstrips Growth Plans For personal use only June 2008 17
Slide 19: Contents
Contents For personal use only Company p y Background g • A Snapshot • Assets • People Current Status • Substantial Growth • Narrabri Project • Supporting Infrastructure Looking Ahead • Market M k • Demand outstrips Infrastructure • Outlook • Objectives Further Information June 2008 18
Slide 20: Strong markets
Strong markets For personal use only Demand • Global demand for export coking and thermal coal continues to grow very strongly and is forecast of continued strength for some years. Supply • Supply from new Australian developments will fall short of predicted demand. • China’s export thermal coal is
Slide 21: Outlook for Whitehaven
Outlook for Whitehaven For personal use only ¾Demand for Metallurgical and Thermal coal remains high ¾Higher coal prices, but still affected by rump of legacy contracts ¾Increased port allocation but tight for some years ¾Increased rail capacity and lower rail rates ¾Profit up but constrained by inf
Slide 22: Where to from here?
Where to from here? For personal use only Near Term Objectives ¾ Continue to efficiently manage our existing operations ¾ Werris Creek - improvements and extended life ¾ Rail upgrade – support increased shipping, lower rates ¾ Port – supporting new production – PWCS & NCIG ¾ Deliver Narrabri, Rocgle
Slide 23: Objectives
Objectives For personal use only The Longer Term ¾ Whitehaven has grown rapidly over 5 years. Our growth will continue…we will build on our success and leverage our asset base. ¾ Industry consolidation will continue and Whitehaven will play its p part. ¾ Grow earnings and dividends per share, mainta
Slide 24: Contents
Contents For personal use only Company Background • A Snapshot • Assets • People Current Status • Substantial Growth • Narrabri Project • Supporting Infrastructure Looking Ahead • Market • Demand outstrips Infrastructure • Outlook • Objectives F th Information Further I f ti June 2008 23
Slide 25: FY 2008 Highlights to Date
FY 2008 Highlights to Date For personal use only • ASX listing in June 07 at $1 $1.00/share 00/share • Canyon, Werris Creek and Tarrawonga mines performing well ~ 3 Mtpa • Acquired remaining 60% interest in Werris Creek…WHC Creek WHC now owns 100% • Acquired significant freehold land around existing
Slide 26: FY 2008 – Months to December 2007
FY 2008 – 6 Months to December 2007 For personal use only YTD Dec 07 YTD Dec 06 Saleable Production (kt) 903 638 Sales (kt) 910 598 Stock (kt) 352 198 EBITDA (A$000’s) 13,128* 12,061 NPAT (A$000’s) (372) 9,922 * Before non-cash share based p payments y ADVERSE IMPACTS ¾Demurrage ¾Depreciation adjust
Slide 27: FY 2007 financial results
FY 2007 fifinancial i l results lt * For personal use only M Measure Prospectus P t Forecast F t Actual A t lR Result lt ffor for FY2007 FY2007 NPAT $10 2M $10.2M $24 1M $24.1M Revenue $120M $106M EBITDA $25.8M $39.4M Earnings per Share 3.2¢ 8.0¢ Net Cash Flow $12.5M $19.4M Capex $53M $54M End of Ye
Slide 28: Whitehaven has +600Mt of JORC Resources
Whitehaven has +600Mt of JORC Resources For personal use only Project Ownership Status Measured Indicated Inferred TOTAL Canyon 100% Operating TBD TBD TBD TBD Tarrawonga Open Cut 70% Operating 8.3 11.0 24.0 43.3 Tarrawonga Seam Underground 100% Feasibility 2.7 8.0 5.0 15.7 Tarrawonga Underground – O
Slide 29: Resources include +100Mt of JORC Reserves
Resources include +100Mt of JORC Reserves For personal use only Reserves (Mt) Project Proved Probable Recoverable From From Marketable (Proved + Proved Probable Probable) Canyon - - - - - - Tarrawonga Open Cut - 8.9 8.9 - 7.7 7.7 Tarrawonga Seam Underground - - - - - - Tarrawonga Underground – Other
Slide 30: Relatively high ROM productivity
Relatively high ROM productivity For personal use only ROM (“Run-of-Mine”) Production / Employee (NSW Opencut Mines) June 2008 29
Slide 31: High yield = high saleable productivity
High yield = high saleable productivity For personal use only Whitehaven mines have average saleable yield of 93% vs. average Hunter Valley yield of ~75% Saleable Production / Employee (NSW Opencut Mines) June 2008 30