Jameson Resources Limited · ASX:JAL
Jameson Resources — Investor Presentation (May 2017)
28 slides from Jameson Resources's investor presentation, May 2, 2017
Slide 1: Investor Presentation May 2nd 2017
For personal use only INVESTOR PRESENTATION MAY 2nd 2017
Slide 2: Investment Highlights
Investment Highlights For personal use only POSITIONED IN WORLD CLASS Jameson is a pure coking coal Company with its flagship project, Crown Mountain, COKING COAL FIELDS located within Canada’s prolific Elk Valley coal field, home to five operating mines. PROXIMAL TO Crown Mountain is located in a m
Slide 3: Company Snapshot
Company Snapshot Share Capital Art Palm – Chief Executive Officer and Chairman only • Mining engineer with over 40 years of experience Recent Share Price A$0.09 use CANADA • Engineering, Operations & Executive positions at major Shares Outstanding 223m US coal producers Market Capitalisation A$20m •
Slide 4: Flagship Canadian Coking Coal Asset
Crown Mountain Flagship Canadian Coking Coal Asset For personal use only • The Crown Mountain Coking Coal Project is located in southeast British Columbia • The high quality nature of the North and East Block coking coal is comparable to the best Hard Coking Coal produced in British Columbia • Briti
Slide 5: Geology
Crown Mountain Geology For personal use only 5
Slide 6: Resources and Reserves
Resources and Reserves For personal use only RESOURCE AREA Measured Indicated Measured & Inferred Measured, • The PFS Update confirmed a (Mt) (Mt) Indicated (Mt) Indicated & total reserve base at Crown (Mt) Inferred (Mt) Mountain of 56 million tonnes. North Block 8.0 6.0 14.0 0 14.0 • Confidence in
Slide 7: PFS Update
Crown Mountain PFS Update For personal use only • Original study performed in 2014 • Since 2014, Jameson identified opportunities in: • Lower OPEX – leading to reduced FOB cash cost • Lower CAPEX • Shifting macroeconomic trends • PFS Update Participants: • Norwest Corporation: Lead and QP • Kiewit:
Slide 8: Proposed Project Facilities
Proposed Project Facilities For personal use only 8
Slide 9: PFS Update Highlights
Crown Mountain PFS Update Highlights For personal use only • FOB cash cost of US$75/t life-of-mine (US$66/t first four years) • Hard Coking Coal (HCC) comprises 84% of total clean coal production (balance is PCI) • After-tax Payback Period of 2.3 years • IRR is 40% pre-tax (31% after tax) • NPV10 US
Slide 10: Operating Costs
Crown Mountain Operating Costs For personal use only Cost Category Cash Cost Per Clean Tonne Cash Cost Per Clean Tonne Initial Four Years US$ Life-Of-Mine US$ Waste Removal 21.51 26.47 Coal Mining 3.32 4.35 Plant 6.25 7.76 Clean Coal Handling 2.24 2.24 Reclamation 1.01 1.01 Minor equipment 0.65 0.77
Slide 11: Start-up Capital
Crown Mountain Start-up Capital For personal use only Pre-Production Capital US$M Major Mobile Equipment 99.1 Minor Mobile Equipment 9.7 Wash Plant 63.7 Infrastructure (rail load-out, roads, power, offices, shop etc) and permitting 93.2 Pre-Strip 15.6 SUBTOTAL – CAPITAL 281.3 Contingency @ 10% 28.1
Slide 12: Capital Intensity
Crown Mountain Crown Mountain’s low capital intensity is attributable to: Capital Intensity For personal use only – the topography of the project – low initial development costs due to favourable pre-stripping ratio – proximity to established infrastructure (power, rail and port) – the impact of exc
Slide 13: NPV & IRR
Crown Mountain NPV & IRR For personal use only IRR % NPV10 NPV10 US$M A$M Pre-Tax 40 440 587 After-Tax 31 267 356 13
Slide 14: Coal Sales Prices
Crown Mountain Coal Sales Prices For personal use only PERIOD COAL TYPE NORTH (US$) SOUTH (US$) Life-of-mine Hard Coking $140 - $170 $126 - $153 PCI $92 - $112 $92 - $112 Selling prices used in the PFS Update are the averages of each respective range above. 14
Slide 15: Metallurgical Coal
Crown Mountain Metallurgical Coal For personal use only METALLURGICAL COAL • Metallurgical coal is predominantly sold in three forms – Hard Coking Coal (HCC), Semi-Soft Coking Coal and Pulverised Coal Injection • HCC is the most valuable form of coal as there are no substitutes and it must be used i
Slide 16: Seaborne Metallurgical Coal Market
Crown Mountain Seaborne Metallurgical Coal Market For personal use only METALLURGICAL COAL MARKET • The Global Seaborne Met Coal market is approximately 290mt • The Global Seaborne HCC market is approximately 171mt • Canada is the third largest Metallurgical coal exporter behind Australia and the Un
Slide 17: Coal Quality
Coal Quality For personal use only Crown Mountain Coking Coal1 Canadian Canadian Central NEBC SEBC North and South Alberta2 HCC2 HCC2 East Blocks Block Total Moisture (% as received) 8-9 8-9 8-9 8-9 8-9 Volatile Matter (% dry) 20.5 18 23 - 24.5 21 - 27 17 - 27 Ash Content (% dry) 9 9 8.3 - 8.6 8.5 -
Slide 18: Coal Quality Comparison
Crown Mountain Coal Quality Comparison For personal use only Source: Norwest To attain the “blend quality target” it is necessary to include high CSR “Prime HCCs” to offset lower quality coals. As depicted above, the Crown Mountain coal products have higher CSR relative to most other coals. 18
Slide 19: PFS Update Results – Sensitivity
Crown Mountain PFS Update Results – SENSITIVITY For personal use only NPV10 (US$M) Pre-Tax After Tax Sensitivity Range + - + - Base Case 440.6 267.2 Selling Price +/-10% 590.0 291.4 364.4 169.8 Selling Price +/-20% 739.4 141.7 461.6 70.6 Ridley Terminal +US$12/tonne 313.4 184.3 Operating Cost +/-10%
Slide 20: Procurement/Financing Considerations
Crown Mountain Procurement/Financing Considerations For personal use only • The used equipment market provides an opportunity to achieve significant reductions in CAPEX: – Low-hour equipment is often available for a fraction of original cost – OPEX would increase versus new equipment – In the right
Slide 21: Infrastructure – Rail and Port Capacity
Crown Mountain Infrastructure – Rail and Port Capacity For personal use only No capacity constraints on rail networks and Canada - West Coast Port Capacity (Mt) ports currently undergoing expansion Current Capacity Planned Growth RAIL 60 • Common user railway linking South East BC to deep water port
Slide 22: Environmental Studies
Environmental Studies For personal use only • In addition to having successfully completed the PFS Update, the company has been progressing the pre- application stage of environmental permitting process over the past two years. • Extensive environmental baseline studies are required prior to submitt
Slide 23: EA Progress To-Date and Timing
EA Progress To-Date and Timing For personal use only • The company has continued to progress the pre- application stage of the EA process, with the Application Information Requirements (‘AIR’) expected to be completed and accepted in Q2/Q3-17. • The AIR is essentially the blueprint for preparing the
Slide 24: Timeline
Crown Mountain - Timeline ACTIVITY 2016 2017 2018 2019 2020 For personal use only Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Environmental Baseline ✓ ✓ ✓ ✓ ✓ EA Pre-application Consultations ✓ ✓ EA Pre-application VCD ✓ ✓ ✓ EA Pre-application AIR ✓ ✓ PFS Update ✓ ✓ ✓ EA / Permitting
Slide 25: Investment Highlights
Investment Highlights For personal use only POSITIONED IN WORLD CLASS Jameson is a pure coking coal Company with its flagship project, Crown Mountain, COKING COAL FIELDS located within Canada’s prolific Elk Valley coal field, home to five operating mines. PROXIMAL TO Crown Mountain is located in a m
Slide 26: Competent Persons Statements
Competent Persons Statements For personal use only Competent Person Statements Mineral Reserves and Pre Feasibility Study Results The information in this presentation relating to the Mineral Reserve Estimate and Pre Feasibility Study Results of the Company’s Crown Mountain Coal Project are extracted
Slide 27: Disclaimer
Disclaimer This document has been prepared as a summary only, and does not contain all information about the Jameson Resources Limited’s (the “Company”) For personal use only assets and liabilities, financial position and performance, profits and losses, prospects and the rights and liabilities atta
Slide 28: Australian and Canadian Offices
For personal use only AUSTRALIAN OFFICE (Corporate) CANADIAN OFFICE Suite 5, 62 Ord Street, Suite 800, 1199 West Hastings Street West Perth Western Australia 6005 Vancouver, BC V6E 3 T5 T: +61 (8) 9200 4473 T: +1 (604) 629-8605 www.jamesonresources.com.au E: admin@jamesonresources.com.au