Kalina Power Limited · ASX:KPO
Kalina Power — Corporate Update (October 2018)
17 slides from Kalina Power's corporate update, Oct 4, 2018
Slide 1: Western Canadian Power Projects and China Update
POWER WESTERN CANADIAN POWER PROJECTS and CHINA UPDATE October 2018 All amounts including ‘$’ are in reference to Canadian dollars unless stated otherwise
Slide 2: Disclaimer
Disclaimer POWER Important Information • This presentation contains certain forward-looking statements that have been based on current expectations about future acts, events and circumstances • These forward looking statements are, however, subject to risks, uncertainties and assumptions that could
Slide 3: Corporate Snapshot
Corporate Snapshot POWER Trading information (as at 1 October 2018) Share price A$0.031 Board of Directors 52 week low / high A$0.014 / A$0.082 Shares outstanding1 443m Name Position Market capitalisation A$14m Cash (30 June 18) A$3.06m John Byrne Executive Chairman Debt (30 June 2018) - Enterprise
Slide 4: ASX Small Cap that has Attracted Blue Chip Power Professional Directors
ASX Small Cap that has Attracted Blue Chip Power Professional Directors POWER Ross MacLachlan Managing Director and CEO • Former Director and early investor with Pristine Power (Canada’s largest Independent Power Producer prior to its sale in 2010) • 35 years’ experience in technology development, p
Slide 5: Key Advantages of the KALiNA Cycle versus ORC
Key Advantages of the KALiNA Cycle® versus ORC* POWER Leading ORC supplier, Ormat (NYSE:ORA), has grown from a market capitalisation of ~US$0.8bn to ~US$3bn in five years KALiNA Cycle® is competitive with ORC at all temperatures and up to 40% more efficient at lower and variable heat temperatures KA
Slide 6: Valuable Intellectual Property Portfolio
Valuable Intellectual Property Portfolio POWER KALiNA are actively focused on growing their IP portfolio throughout key global markets Current IP portfolio Actively protecting first-mover advantage Holds 320 patents worldwide with 11 pending applications across IP Portfolio includes acquired the
Slide 7: KALiNA Projects
KALiNA Projects POWER Commercially Deployed In A Range Of Industries -15 Plants $126 Million Spent To Date KALINA POWER LIMITED (ASX: KPO ) 7
Slide 8: China – A New Beginning
China – A New Beginning POWER KALiNA Cycle license has reverted back to KALiNA for China • KALiNA Cycle license reverted back to KALiNA through termination of the license held previously by SSNE since 2008 • KALiNA has indicated its willingness to assist with the next phase of the required work at H
Slide 9: Multiple Projects Underway in Western Canada
Multiple Projects Underway in Western Canada POWER • KALiNA’s team in Western Canada are former core members of Pristine Power • 15MW Gas turbine combined with a 6MW KALiNA Cycle to generate 21MW of power 21MW Combined • Significant performance advantages from KALiNA Cycle generates 40% additional p
Slide 10: Addressable Market Represents an Opportunity for ≥ 25 Projects
Addressable Market Represents an Opportunity for ≥ 25 Projects POWER We have identified a market for ≥ 500 MW of gas fired production that could utilize up to 165 MW of KALiNA Cycle capacity • Strong regional industrial demand for electricity • Large volumes of natural gas is available at attractive
Slide 11: Three Sites are Prioritised for Immediate Development
Three Sites are Prioritised for Immediate Development POWER Connecting to existing power substations with 25MW interconnect to the grid Initial six sites within the Grand Prairie region of Alberta Key focus on land availability, Initial Six Sites interconnect costs and gas supply and Identified
Slide 12: Projects Expected to Deliver Attractive Financial Returns
Projects Expected to Deliver Attractive Financial Returns POWER • Fast time to market for repeatable projects: Less than 2 years • Total cost of each project: $50million • Unlevered Rate of Return on Equity: 13% • Payback: 4.9 years • Levered Rate of Return on Equity with 60% debt: 19.3% First plant
Slide 13: Anticipated Value to KALiNA From Each 21MW Project
Anticipated Value to KALiNA From Each 21MW Project POWER Near term revenue combined with long term annual cash flow from each project • KALiNA’s specialised Engineering Services to be earned during development and construction: (Years 1 and 2): $300,000 • KALiNA Cycle royalty IP license @ $250,000 p
Slide 14: Three Initial Sites – Development Timetable and Costs
Three Initial Sites – Development Timetable and Costs POWER Construction commences 2019. Projects Generating Power Q1 2021 Development Funding c. $2.75million for initial three sites Contributions from Phoenix EPC and any Already completed ahead of schedule strategic partner funding reduces KALiNA s
Slide 15: Sensitivity Analysis
Sensitivity Analysis POWER Various risks to the upside and downside of the projects include Unlevered IRR SENSITIVITY 6% 8% 10% 12% 14% 16% 18% 20% Power Price Gas Price Capital ($48.3 M) $62.8 M $33.8 M *Power - Energy (P50) -20% +20% Low High Fuel (P50) +20% -20% O&M ($2.5 M/year) $3.3 M/yr $1.8 M
Slide 16: Western Canada Five-Year Target – Ten x 21MW Sites
Western Canada Five-Year Target – Ten x 21MW Sites POWER • Three 21 MW sites currently under development represent 63 MW Future Sites • We are starting to ‘Land Bank’ to secure ten additional sites • Future sites will have similar permitting, gas interconnect and electricity demand to facilitate dep
Slide 17: Appendix - KALiNA is Building on the Success of Key Projects
Appendix - KALiNA is Building on the Success of Key Projects POWER Sumitomo Metals and Fuji Oil in Japan, and Unterhaching in Germany, are showcase examples of successful KALiNA Cycle® projects Attributes of successful projects Sumitomo Metals (Steel) Fuji Oil (Petrochemical) Unterhaching (Geotherma