Slide 1: Re-issue: Corporate Presentation October 2016
For personal use only RE-ISSUE: CORPORATE PRESENTATION OCTOBER 2016 Stanmore Coal Limited (Stanmore, the Company) refers to the announcement released by the Company to the ASX on 31 October 2016 titled “Corporate Presentation - October 2016”. The Company has subsequently identified that the presenta
Slide 2: For further information, please contact / About Stanmore Coal
FOR FURTHER INFORMATION, PLEASE CONTACT: Mr Nick Jorss Mr Andrew Roach Managing Director Chief Financial Officer & Company Secretary 07 3238 1000 07 3238 1000 ABOUT STANMORE COAL LIMITED (ASX CODE: SMR) For personal use only Stanmore Coal is an operating coal mining company with a number of addition
Slide 3: Delivering Value: A growing independent coking coal producer
DELIVERING VALUE For personal use only A growing independent coking coal producer Investor Presentation October 2016
Slide 4: Important Information
IMPORTANT INFORMATION For personal use only This document has been prepared by Stanmore Coal “may”, “target” and other similar expressions are Marketable Reserves Note – Isaac Plains: Institute of Mining and Metallurgy (AusIMM) and has Limited (“Stanmore Coal”) for the purpose of providing intended
Slide 5: Stanmore Coal: Delivering value as an independent coking coal producer
STANMORE COAL DELIVERING VALUE AS AN INDEPENDENT COKING COAL PRODUCER For personal use only ASX-LISTED MET COAL PURE PLAY ✓Continued ramp-up of production in Sep quarter 280kt produced in September quarter. 511kt produced since re-commencement of mining in May 2016 ✓Production of 1.25Mt anticipated
Slide 6: Stronger pricing outlook
STRONGER PRICING OUTLOOK CONTINUED STRENGTH IN COKING COAL MARKET For personal use only Japanese December quarter contract prices have settled with considerable price strength Historical spot coking coal price reflecting trend in spot market Hard coking coal USD200 (up USD107.50 from Sep QTR)
Slide 7: Production update: Isaac Plains operations
PRODUCTION UPDATE ISAAC PLAINS OPERATIONS For personal use only Safety record strong – no lost time injuries to date 286kt over 8 shipments sailed in the September quarter. Total sales since re- opening 442kt (to end Sep 16) Overburden and coal mining activities continued ramp up during Septem
Slide 8: The tightly held Bowen Basin
THE TIGHTLY HELD BOWEN BASIN PRIME COKING COAL EXPORT REGION DOMINATED BY MAJORS For personal use only 6
Slide 9: Isaac Plains - A transformational investment
For personal use only ISAAC PLAINS - A TRANSFORMATIONAL INVESTMENT 7
Slide 10: Isaac Plains coking coal mine: transaction recap
ISAAC PLAINS COKING COAL MINE TRANSACTION RECAP For personal use only ACQUISITION OF ESTABLISHED TRANSACTION MET COAL MINE OVER $350M REPLACMENT VALUE OF AQUIRED ASSETS COMPLETED Existing open-cut operation Dragline - Bucyrus BE1370 commenced production in 2006 500tph Coal Handling and Prep No
Slide 11: Isaac Plains East
ISAAC PLAINS EAST LOW STRIP RATIO, ADJACENT RESOURCE For personal use only Acquired from Peabody Energy in July 2015 Coking coal adjacent tenures – improved coking properties and coking fraction compared to existing Isaac Plains operation Low strip ratio coal starting <6:1, average over first
Slide 12: Combined Isaac Plains complex
COMBINED ISAAC PLAINS COMPLEX SIGNIFICANT SYNERGIES & MINE LIFE OPTIONS For personal use only Growth opportunities to utilise Isaac Plains infrastructure including underutilised CHPP and rail loop CURRENT ISAAC PLAINS OPEN CUT 3 years at 1.5mtpa ROM production rate ISAAC PLAINS EAST – OPEN CUT EXT
Slide 13: Our contribution
OUR CONTRIBUTION Stanmore Coal is a Queensland Company that takes its responsibilities seriously For personal use only JOBS 150 jobs in the Isaac region created by the mine restart ROYALTIES Over $7m per year of payments to the State with potential to increase (increased to $12m per year with pr
Slide 14: Delivering on key milestones
DELIVERING ON KEY MILESTONES CURRENT MARKET CAP: A$149M1 For personal use only Acquire Isaac Acquire Highwall 0.9 Isaac Optimise IP Sign Additional mining Plains mine plan to Offtake for JORC East Plains commenced 0.8 for $1 reduce coking coal Resources Extension production with leading & 0.7 cost b
Slide 15: Value drivers: upcoming milestones and opportunities
VALUE DRIVERS UPCOMING MILESTONES AND OPPORTUNITIES For personal use only Submitted Isaac Plains East mining lease and environmental application in October 2016. Assess potential underground mining in eastern zone of Mining Lease – over 20Mt Indicated and Inferred Resource in this area Assess
Slide 16: Appendices
For personal use only APPENDICES 14
Slide 17: Strong board and management team
STRONG BOARD AND MANAGEMENT TEAM For personal use only Over 150 years of coal exploration, development and operational experience KEY MANAGEMENT Nick Jorss Mike McKee Andrew Roach Nigel Clifford Managing Director Chief Operating Officer Chief Financial Officer Senior Geologist 20 years in engineerin
Slide 18: Overview of Stanmore Coal
OVERVIEW OF STANMORE COAL For personal use only Queensland based coal Advanced metallurgical Highly experienced Board Low overhead cost base development company, and thermal coal and management team Actively pursuing further successful transition to development projects in with proven trac
Slide 19: Overview of Stanmore assets
OVERVIEW OF STANMORE ASSETS For personal use only BOWEN BASIN – Coking Coal MACKENZIE – 85% ISAAC PLAINS – 100% Coking Coal Total Resources 143 Mt Total Resources 48.2 Mt Exploration Total Reserves 5.0 Mt Operating asset SURAT BASIN – Thermal Coal ISAAC PLAINS EAST – THE RANGE – 100% 100
Slide 20: High quality coking coal
HIGH QUALITY COKING COAL ISAAC PLAINS COAL - PRE-SOLD TO MAJOR ASIAN STEEL MAKERS For personal use only JPY 2017 contracts already signed with top Parameter1 Isaac Plains Isaac Plains tier Japanese and Korean steel mills on East (Indicative) annual benchmark contracts for 900,000t of coking coal (