Slide 1: March 2017 Quarterly Presentation
For personal use only MARCH 2017 QUARTERLY PRESENTATION April 2017
Slide 2: Important Information
IMPORTANT INFORMATION For personal use only This document has been prepared by Stanmore Coal seek appropriate advice, including financial, legal and earnings and estimates are provided as a general guide Limited (“Stanmore Coal”) for the purpose of providing a taxation advice appropriate to their ju
Slide 3: Overview of Stanmore Coal
OVERVIEW OF STANMORE COAL For personal use only Queensland based coal development company, operations at Isaac Plains Coking Coal Mine ASX code Share price Shares Market cap SMR A$0.391 251,107,978 $97.9m1 Strong shareholder base SHARE OWNERSHIP Advanced metallurgical and thermal coal development pr
Slide 4: The Business at a Glance
THE BUSINESS AT A GLANCE For personal use only INDEPENDENT ISAAC PLAINS ISAAC PLAINS MULTIPLE ACQUISITION COAL COMPANY OPERATIONAL REPRESENTS TARGETS AND WITH FOCUS ON WITH RAMP-UP THE COMPANY’S INTERNAL PROJECTS COKING COAL ACHIEVED PLATFORM ASSET ON WHICH STANMORE CAN CAPITALISE 1–2Mtpa sales op
Slide 5: Overview – Stanmore Portfolio
OVERVIEW – STANMORE PORTFOLIO For personal use only BOWEN BASIN – SURAT BASIN – COKING COAL THERMAL COAL ISAAC PLAINS – 100% THE RANGE – 100% Operations Development (pending infrastructure) ISAAC PLAINS EAST – 100% CLIFFORD – 60% Development Exploration & studies BELVIEW – 100% Exploration LILYVALE
Slide 6: Strategic Objectives FY17 and Forward
STRATEGIC OBJECTIVES FY17 AND FORWARD For personal use only Time horizon Internal External Short • Establish reliability and repeatability • Assess potential assets in proximity to IP Complex of production from Isaac Plains In • Drive for value from complex via cost per tonne place Medium • Develop
Slide 7: Experienced Leadership Team
EXPERIENCED LEADERSHIP TEAM For personal use only • More than 20 years’ experience in the coal mining industry DAN CLIFFORD • Has worked in Australia, South Africa and New Zealand MANAGING DIRECTOR • Substantial open cut and underground coal mining experience • Previously roles were with Solid Energ
Slide 8: Isaac Plains Update
For personal use only ISAAC PLAINS UPDATE ISAAC PLAINS UPDATE
Slide 9: Safety
SAFETY For personal use only NO INJURIES (TRI) STANMORE COAL SAFETY STATISTICS DURING QUARTER PAST 12 MONTHS TO DATE During the March quarter, there were no injuries (TRI) at the Isaac Plains Mining Complex, with no other injuries recorded across other projects and tenements 45,000 20 The Total Repo
Slide 10: Revised Mine Plan
REVISED MINE PLAN For personal use only PROGRESS AGAINST THE PLAN PRIME STRIP RATIO In December 2016 the Company announced a capital 20 raising for A$15 million (pre costs) to invest in both pre- strip advancement and coal inventory, based on a 16 Revised Mine Plan (RMP). 12 Ramp-up of pre-strip act
Slide 11: Operating Results – Mine Physicals and Costs
OPERATING RESULTS – MINE PHYSICALS AND COSTS For personal use only PRIME WASTE OVERBURDEN (BCM) 7,000 Although total overburden was largely in-line with plan, the linear speed of the dragline was impacted by increased rehandle, designed to maximize 6,000 recovery of each repeated coal sequence aroun
Slide 12: Operating Results – June Quarter Mining
OPERATING RESULTS – JUNE QUARTER MINING For personal use only Although the March quarter was behind prior guidance, JUNE QUARTER PRIME WASTE MINING ACHIEVABILITY mining was impacted by labour availability and slower than expected mining around a known major fault (refer diagrams below). 7.0 Increase
Slide 13: Operating Results – Mine Physicals and Costs
OPERATING RESULTS – MINE PHYSICALS AND COSTS For personal use only PRODUCT TONNES PRODUCED FOB COSTS (A$/TONNE, ALL-IN) 400 140 350 120 300 100 250 80 k tonnes 200 60 150 40 100 50 20 - - Q1-FY17 Q2-FY17 Q3-FY17 Q4-FY17 2H-FY17* LOM Q1-FY17 Q2-FY17 Q3-FY17 LOM Actual Average Quarterly Projection Act
Slide 14: Quarterly Coking Coal Pricing
QUARTERLY COKING COAL PRICING For personal use only FLOW THROUGH OF MARCH QUARTER JUNE QUARTER CONTRACT PRICING Quarterly benchmark by proportion of tonnes sold Quarterly benchmark by proportion of tonnes sold Semi-soft sales of 97kt Semi-soft sales estimate • Each new quarterly price applies after
Slide 15: Coal Price Outlook
COAL PRICE OUTLOOK For personal use only RECENT PRICE SPIKE TO HISTORICAL SPOT COAL PRICE (USD) STABILISE IN MEDIUM TERM 350 The June quarterly 4Q17 benchmark negotiations for semi-soft coking coal price have been delayed given both miners and end users continue to assess the 300 impact of TC Debbie
Slide 16: Update Projects
For personal use only UPDATE PROJECTS
Slide 17: Isaac Plains East Indicative Timetable to Production
ISAAC PLAINS EAST INDICATIVE TIMETABLE TO PRODUCTION (FINANCIAL YEAR BASIS) For personal use only Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY17 FY17 FY17 FY17 FY18 FY18 FY18 FY19 EA Amendment and Resolution of key Public Potential grant date Potential first ML Applications negotiations with notification for Mining L
Slide 18: Isaac Plains Underground Indicative Timetable to Investment Decision
ISAAC PLAINS UNDERGROUND INDICATIVE TIMETABLE TO INVESTMENT DECISION (FINANCIAL YEAR BASIS) For personal use only Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY17 FY17 FY17 FY17 FY18 FY18 FY18 FY19 Exploration planning Feasibility focusing Target Investment and project on optimal bord & decision scheduling pillar techn