Whitehaven Coal Limited · ASX:WHC
Whitehaven Coal — FY2007 Earnings Presentation
30 slides from Whitehaven Coal's earnings presentation, Sep 5, 2007
Slide 1: Whitehaven Coal Results for the Financial Year Ended 30 June 2007
For personal use only Whitehaven Coal Results for the Financial Year Ended 30 June 2007
Slide 2: Disclaimer
Disclaimer For personal use only This presentation has been prepared by Whitehaven Coal Limited (“Whitehaven” or the “Company”). This presentation and its contents have been distributed in confidence and may not be reproduced or disclosed to any other person. Whitehaven has prepared this presentatio
Slide 3: Contents Page
Contents Page For personal use only Summary Whitehaven Assets Review of Operations Review of Development Projects Infrastructure Market and Outlook 2007 Annual Results Presentation www.whitehaven.net.au 2
Slide 4: FY 2007 Summary
FY 2007 Summary For personal use only Key Summary FY 2007 Lost Time Injuries 0 Sales (Mt) – Equity 1.46 Revenue (A$m) 106.2 EBITDA (A$m) 25.6 Net Profit (A$m) 22.5 2007 Annual Results Presentation www.whitehaven.net.au 3
Slide 5: Highlights
Highlights For personal use only • Net profit after tax of $22.5m on 1.46Mt of coal sales • EBITDA of $25.6m • Successful IPO and listing on the ASX in June 2007 • Tarrawonga open cut mine successfully commissioned • Owner operation introduced at Canyon and Tarrawonga mines with significant cost sav
Slide 6: Comparison with Prospectus FY 2007
Comparison with Prospectus FY 2007 For personal use only Proforma summary income statement FY 2007 Prospectus Variation A$ million A$ million A$ million Revenue 106.2 115.8 (9.6) FX gains 5.9 1.9 4.0 Total revenue 112.1 117.7 (5.6) Operating expenses (87.6) (96.5) 8.9 EBITDA 25.6 23.4 2.2 EBIT 13.3
Slide 7: Balance Sheet at June
Balance Sheet at 30 June For personal use only ($’000’s) FY 2007 FY 2006 Cash 21,185 1,756 Other current assets 41,730 24,811 Non-current assets 288,127 80,451 Total Assets 351,042 107,018 Borrowings 76,695 25,594 Other liabilities 24,320 30,941 Total liabilities 101,015 56,535 Equity 250,027 50,483
Slide 8: Capital Expenditure
Capital Expenditure For personal use only ($’000’s) FY2008f FY2007 Whitehaven Mining Precinct (WMP) Belmont / Sunnyside projects 10,830 6,049 Tarrawonga 7,940 31,891 Canyon / CHPP 1,850 9,841 WMP Total 20,620 47,781 Werris Creek 180 511 Narrabri North project 55,500 5,167 Total 76,300 53,459 2007 An
Slide 9: Contents Page
Contents Page For personal use only Summary Whitehaven Assets Review of Operations Review of Development Projects Infrastructure Market and Outlook 2007 Annual Results Presentation www.whitehaven.net.au 8
Slide 10: Whitehaven Assets
Whitehaven Assets For personal use only Narrabri (100%) Coal Type: Thermal Bonshaw (66.7% interest) Underground mine in Coal Type: Coking development (North) and Exploration prospect at exploration project (South) exploration stage Forecast first coal production from Narrabri North in Q4 CY2008 Whit
Slide 11: Contents Page
Contents Page For personal use only Summary Whitehaven Assets Review of Operations Review of Development Projects Infrastructure Market and Outlook 2007 Annual Results Presentation www.whitehaven.net.au 10
Slide 12: FY 2007 Operations Summary (100% Basis)
FY 2007 Operations Summary (100% Basis) For personal use only • Saleable production up 65% Saleable Production (Mt) FY 2007 FY 2006 Change Whitehaven Mining Precinct 997 563 +77% Werris Creek 1,291 824 +57% Total 2,288 1,397 +65% • Coal Sales up 48% Coal Sales (Mt) FY 2007 FY 2006 Change Whitehaven
Slide 13: Canyon
Canyon For personal use only ROMPAD • Operation planned to be scaled down when Belmont project is REHABILITATED AREA approved. • Equipment will be progressively IT O FD IST UR BAN CE LIM WH2801 transferred to the RY CA05 CA03 CA01 BOUNDA CA07 CA09 Belmont open cut mine CA11 RAMP LEASE CA13 CA04 E CE
Slide 14: Tarrawonga (70%)
Tarrawonga (70%) For personal use only • Successful commissioning DAM • Production outstripping allocation NA0101 NA0102 MN03 LEASE B OUNDAR Y TA0801 TA0901 TA1001 TA1101 TA1201 TA130 1 TA1401 TA150 1 at Newcastle Port (PWCS) TA1601 TA170 1 TA1801 TA1901 DAM MN02 TA2001 TA0802 PIT LIMIT TA0902 TA100
Slide 15: Werris Creek Mine (40%)
Werris Creek Mine (40%) For personal use only • New contractor – Marshall Mining and Earthmoving (subsidiary of John Holland) • Drilling has identified additional resources • Potential for additional reserves • Revision of JORC reserves estimate expected in September 2007. 2007 Annual Results Presen
Slide 16: Contents Page
Contents Page For personal use only Summary Whitehaven Assets Review of Operations Review of Development Projects Infrastructure Market and Outlook 2007 Annual Results Presentation www.whitehaven.net.au 15
Slide 17: Narrabri North
Narrabri North For personal use only • Development Approval expected September 2007 • Mining Lease expected October 2007 • Construction to commence late 2007 • First coal production expected end 2008 • Stage 2 longwall planning advanced • Coal quality and product yield expected to provide low cost,
Slide 18: Narrabri North (continued)
Narrabri North (continued) For personal use only 2007 Annual Results Presentation www.whitehaven.net.au 17
Slide 19: Narrabri South
Narrabri South For personal use only • Potential for multiple longwalls within Narrabri South • Further exploration has increased resources at Narrabri South by c. 110Mt • Narrabri South Resources: (Mt) JORC 29 August 2007 Prospectus 3 May 2007 Change Measured 30.7 0.3 +30.4 Indicated 103.0 28.0 +75
Slide 20: Narrabri Development Project - Summary
Narrabri Development Project - Summary For personal use only • Major Gunnedah Basin resource • High quality, high yield thermal and PCI coal • Potential for multiple longwalls within Narrabri North and Narrabri South • Central infrastructure to service future development • Total Narrabri Resources:
Slide 21: Belmont Project
Belmont Project For personal use only • Public display of Environmental Assessment expected in September 2007 • Approval process may delay coal production to FY2009 • Belmont’s strip ratio (4.5 to 1) is lower than Canyon’s (8.2 to 1) • Resources (Mt): Measured & Indicated 14.2 Inferred - Total 14.2
Slide 22: Sunnyside Project
Sunnyside Project For personal use only • Draft EA lodged on 3 July 2007 • Approval process may delay coal production to FY2009 • Low strip ratio, low cost operation planned • High ash coal provides for blending • Resources (Mt): Measured & Indicated 5.5 Inferred 0.8 Total 6.3 2007 Annual Results Pr
Slide 23: West Blue Vale Project
West Blue Vale Project For personal use only • The West Blue Vale deposit is within a few kilometres of the operating Canyon mine. • The initial opencut Resource is: • Resources (Mt): Initial JORC Resource Measured 2.76 Indicated 1.49 Inferred 0.71 Total 4.95 West Blue Vale 2007 Annual Results Prese
Slide 24: Contents Page
Contents Page For personal use only Summary Whitehaven Assets Review of Operations Review of Development Projects Infrastructure Market and Outlook 2007 Annual Results Presentation www.whitehaven.net.au 23
Slide 25: Rail Capacity Expansion Underway
Rail Capacity Expansion Underway For personal use only • Current rail capacity from Narrabri to Newcastle is c. 4Mtpa • Longer trains will provide increased capacity to c.7Mtpa by Q1 CY2008 • Cost of infrastructure upgrade to support longer trains is c.$50 million, to be funded by Government and rec
Slide 26: Port Capacity Expansion Underway
Port Capacity Expansion Underway For personal use only • Current export terminal of PWCS, (Port Waratah Coal Services) has expected capacity in CY2008 of c.97Mt • Nominated demand by all exporters through the PWCS terminal is c.112Mt in CY2008 • New coal terminal operator, NCIG, (Newcastle Coal Infr
Slide 27: Contents Page
Contents Page For personal use only Summary Whitehaven Assets Review of Operations Review of Development Projects Infrastructure Market and Outlook 2007 Annual Results Presentation www.whitehaven.net.au 26
Slide 28: Coal Markets
Coal Markets For personal use only • Strong demand expected to continue • JFY 2008 prices should reflect current high spot prices • Increased demand for Whitehaven’s low ash, low sulphur products • Strong end-user interest in the Narrabri project thermal coal 2007 Annual Results Presentation www.whi
Slide 29: Outlook for FY 2008
Outlook for FY 2008 For personal use only • Port constraints will limit sales growth • Coal stocks to be maintained at high levels • Productivity will be optimised • Accounting profit for hedge book taken in June 2007 • Cash effect of current hedge book is favourable vs accounting impact • Regulator
Slide 30: Outlook Beyond FY2008
Outlook Beyond FY2008 For personal use only • High productivity of Whitehaven’s operations to be maintained • New projects are well advanced in planning process • Belmont and Sunnyside are low capital, straight-forward projects • Rail capacity expansion is committed and underway • Port capacity expa