Greenx Metals Limited · ASX:GRX
Greenx Metals — Prairie Downs Metals — Investor Presentation (October 2013)
25 slides from Greenx Metals's investor presentation, October 2013
Slide 1: Lublin Coal Project: Europe's Next Strategic Supply of Thermal Coal
ASX: PDZ ABN 23 008 677 852 Lublin Coal Project Europe's Next Strategic Supply of Thermal Coal October 2013
Slide 2: Prairie Downs Metals Limited – Lublin Coal Project
Prairie Downs Metals Limited – Lublin Coal Project Prairie Downs Metals Limited (ASX:PDZ) is an ASX listed company developing the Lublin Coal Project in Poland’s world class Lublin Coal basin Lublin Coal Project Map Strategic resource of high quality thermal coal - Inferred Coal Resource Estimate
Slide 3: Coal – Fundamental to Europe's Energy Matrix
Coal – Fundamental to Europe’s Energy Matrix During 2012, Europe1 consumed over 770mt of coal for power generation, of which 265mt was thermal coal. Thermal coal imports amounted to 172mt, accounting for 22% of globally traded thermal coal… European Thermal Coal Imports & Production by Country (2012
Slide 4: Europe – Declining Domestic Coal Production
Europe – Declining Domestic Coal Production Europe’s hard coal production continues to decline as viable coal resources deplete European Hard Coal1 Production (million tonnes) 400 Rest of EU 365mt (total) Czech Republic 350 Germany 300 295mt United Kingdom Poland 250 227mt 200 189mt 155mt 150 127mt
Slide 5: Increasing Reliance on Imported Thermal Coal
Increasing Reliance on Imported Thermal Coal Imports from Russia, Colombia, the US and others are fundamental for European thermal coal supply… USA Russia Export to EU (2012) 35.8mt Export to EU (2012) 60.3mt % Total of EU Imports 19% % Total of EU Imports 33% Calorific Value (Kcal/kg) 6,676 Calorif
Slide 6: Coal – Poland's Primary Energy Source
Coal – Poland’s Primary Energy Source Poland remains heavily reliant on coal for energy production Poland produces some 90% of its electricity from coal Poland Electricity Generation Mix (2011) 2% 6% Lignite production from Poland amounted to 64mt in 2012 2% Polish hard coal production totalle
Slide 7: Poland - A Favourable Investment Jurisdiction
Poland - A Favourable Investment Jurisdiction Poland is a safe, low risk mining jurisdiction with an excellent fiscal regime Poland is a first world country having gone through significant reform since the Belchatow Power Station (4,440MW) in Poland end of communism in 1989 Over US$120 billion i
Slide 8: Upper Silesian and Lublin Coal Basin – Coal Production
Upper Silesian and Lublin Coal Basin – Coal Production The Lublin Coal Basin represents a low cost alternative to traditional Upper Silesian production Polish coal production has historically been supplied from the Upper and Upper Silesian and Lublin Basin Coal Production Lower Silesian Basins ₋ s
Slide 9: The Lublin Coal Basin hosts a World Class Mine
The Lublin Coal Basin hosts a World Class Mine “The Bogdanka mine ranks with the best deep coal mines in the world in terms of the absolute performance of its longwalls and development headings”, SRK Mining Consultants Bogdanka Coal Mine US$112/t $US110/t US$43/t Bogdanka JSW SA New World Resources
Slide 10: Next Generation Longwall Plow Technology
Next Generation Longwall Plow Technology World record setting plow technology deployed in the Lublin Coal Basin… Caterpillar Plow, AFC and Hydraulic Chocks Operating Longwall Plow Face Recommended technology for seam heights of 0.6m to 2.3m as compared to a traditional shearer longwall The Lubli
Slide 11: Poland's Established Coal Infrastructure
Poland’s Established Coal Infrastructure Strategic choice for low cost European coal supply with an established rail system and export ports 11
Slide 12: Russian Coal Supply Chain
Power Plant Delivered Costs Coal supply chain comparison demonstrates a competitive advantage for the Lublin Basin Port- Power Plant Russian Coal Supply Chain FOR Mine Mine-Port S/Pile & FOB Shipping CIF ARA Unload & Power Cost Rail Port Load S/Pile Delivered US$78/t US$86/t Plant Rail Cost ~US$43/t
Slide 13: Targeting First Quartile Cash Costs
Targeting First Quartile Cash Costs New projects in the Lublin Coal Basin have strong potential to be in the lowest quartile of the cost curve for thermal coal delivered into Europe… Russia API 2 (Oct 2013) Lublin Coal Basin1 Colombia 2013 CFR ARA Energy Adjusted Cash Costs Curve (Source: Wood Macke
Slide 14: Lublin Coal Project - Massive Coal Resource
Lublin Coal Project - Massive Coal Resource 1.6 Billion tonne inferred strategic resource of high quality thermal coal… Maiden Coal Resource defined from over 200 core holes with cut-off seam thickness of 1.0 meters, a 20 meter buffer zone between the Jurassic and over 20 coal seams modelled 14
Slide 15: Large Scale Production Potential
Large Scale Production Potential 680 Million tonnes of the current inferred Coal Resource is contained within 3 high quality coal seams… Potential to delineate a world scale deposit from only three (3) seams which display excellent thermal coal quality characteristics 391 Seam 379 Seam 382 Seam 32
Slide 16: Low Cost Potential
Low Cost Potential Favorable geology allows for low cost longwall mining… 391 Seam 327 Million tonnes1 8.4% Ash 1.16% Sulphur 6,908 kcal/kg (GAD) 1 JORC (Inferred), refer to maiden coal resource announcement on 14 February 2013 Note: 391 seam isopachs based on historical core and geophysical logs 16
Slide 17: Drilling Program and Project Studies
Drilling Program and Project Studies Core Drilling Program Drill Rig on Site A seven hole core drilling campaign is presently underway to: – update the coal quality and washability database to determine potential product pricing and yields – enhance the Project’s geological model and delineate out
Slide 18: Project Timeline
Project Timeline Potential for market re-rating in the short term… 2013 2014 2015 2016 Project Milestones Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Maiden Resource Estimate Strengthen Management Team Drilling Program (7-hole) & Coal Quality Scoping Study EIA (EP compliant) Infill Drillin
Slide 19: Board of Directors
Board of Directors Strong board with proven development experience… Highly respected, London based, mining engineer and investment banker; holds a NSW mine managers certificate of competency for underground coal mining with significant experience in longwall mining operations Ben Stoikovich Chief
Slide 20: High Calibre Executives - Poland
High Calibre Executives - Poland Key appointments to Prairie’s local team1 in Poland… Geologist with over 30 years experience and a proven ability in the identification, exploration and appraisal of Janusz Jakimowicz international resource projects; Dual Polish and Australian citizenship President
Slide 21: Project Team
Project Team An experienced and Polish based project team… Exploration and resource geologist with over 30 years experience; Polish and Canadian dual citizen with experience across Polish, JORC and NI 43-101 reporting standards Lech Lewczuk1 Exploration Manager Previously Overseas Project Manage
Slide 22: Capital Structure
Capital Structure Tightly held capital structure and a strong liquidity position… Capital Structure Shares on Issue 118.8 million Share Price (17 October 2013) A$0.26 Market Capitalisation ~A$31 million Unlisted Options1 21.3 million Cash Plus Listed Securities (30 September ~A$15 million 2013) Ente
Slide 23: Investment Highlights
Investment Highlights Lublin Coal Project - Europe's Next Strategic Supply of Thermal Coal • 1.6Bt JORC Inferred In-Situ Coal Resource in the Lublin Coal Basin in Poland HIGH QUALITY LARGE-SCALE • Potentially a premium quality coal - 6,705kcal/kg GAD, 10.3% Ash raw1 PROJECT • Existing rail and port
Slide 24: Disclaimer
Disclaimer Important Information This presentation has been prepared as a summary only, and does not contain all information about Prairie Downs Metals Limited’s (“Prairie”) assets and liabilities, financial position and performance, profits and losses, prospects, and the rights and liabilities atta
Slide 25: Appendices: Global Coal Producer Comparables
Appendices: Global Coal Producer Comparables 25
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