Stanmore Resources Ltd · ASX:SMR
Stanmore Resources — Wilsons Rapid Insights Conference 2018
25 slides from Stanmore Resources's conference presentation, Nov 19, 2018
Slide 1: Wilsons Rapid Insights Conference
WILSONS: RAPID INSIGHTS CONFERENCE Sydney 20 NOVEMBER 2018 0
Slide 2: Important information
Important information This document has been prepared by Stanmore and needs and seek appropriate advice, including projections, guidance on future Coal Limited (“Stanmore Coal”) for the purpose including financial, legal and taxation advice earnings and estimates are provided as a of providing a com
Slide 3: Stanmore Coal Overview: The path to value
Stanmore Coal Overview The path to value ASX CODE SHARE PRICE Independent coal company Positioned in right commodity at the right time of SMR A$0.831 the cycle SHARES MARKET CAP 251,800,978 $209m1 Isaac Plains expansion operational with 1. AS AT 16 Nov‘18 demonstrated performance SHARE OWNERSHIP Val
Slide 4: FY2019 H1 Highlights to Date
FY2019 H1 HIGHLIGHTS TO DATE FULL-YEAR PRODUCTION guidance lifted from FULL-YEAR EBITDA (underlying) 1.8Mt to 2.0Mt product guidance of $130m - $150m DEVELOPMENT of Isaac MAIDEN DIVIDEND Plains East on track with two of 2 cents per share payable operational pits November 2018 ADDITIONAL PORT CAPCITY
Slide 5: Safety Certainty
Certainty
Slide 6: Safety Performance
Safety Performance Driving for certainty of no fatalities and individual safety performance 25.00 20.00 15.00 10.00 5.00 - Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 TRIFR TRIFR Target (rolling 12mth average) •Significant resources committed to both fatal ris
Slide 7: Operations
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Slide 8: Operational Performance: Value Drivers
Operational Performance Implementation of the strategy ‘on the ground’ 2018 PLATFORM ASSET VALUE DRIVERS RELIABILITY ESTABLISHED DRAGLINE UTILISATION OPERATIONAL PERFORMANCE CURRENT POSITION -SCORECARD •Operational performance improved with a 5% increase in overburden removal RIGHT PLATFORM AT THE a
Slide 9: Operational Performance
Operational Performance With the FY2018 Performance, Stanmore is very well positioned with a reducing cost structure and increased production profile Underlying EBITDA 160 140 120 100 $M 80 60 40 20 0 FY17 FY18 FY19 Actual Actual Guidance FOB costs (A$/tonne) 120 110 100 •FY19 guidance on unit costs
Slide 10: Operational Performance – Cost Focus
Operational Performance – Cost Focus Isaac Plains East Isaac Plains •Short, flat hauls minimising elevation designed for excavator productivity •Initial dragline spoiling height and disturbance minimised by box-cut design •Pre-strip material placed between dragline spoil peaks •Progressive rehabilit
Slide 11: Development and Outlook
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Slide 12: The strategy into action
The strategy into action Cycle proofed and capital light 2018 •Acquisition of Wotonga South (now Isaac MAXIMISING CURRENT ASSETS Downs) completed giving significant boost to mine life, an improvement in cost structure and improving coal quality • Isaac Plains Underground BFS investment VALUE DRIVERS
Slide 13: The strategy into action: Phase 2
The strategy into action With Isaac Plains maximised, further opportunity exists 2020–2022 •The Range Project is progressing to Environmental RIGHT SCALE OF ACQUISITION WITH CAPITAL DISCIPLINE Authority Application off the base of the existing Mining Lease Application (MLA). •Stanmore involvement in
Slide 14: Outlook
Outlook From creating certainty in outcomes and returns to sourcing further ROM coal and preparing the company for the next stage Coal Type Price Share Price 350 350 1.20 300 300 1.00 250 250 0.80 Share price ($) US$/tonne US$/tonne 200 200 0.60 150 100 150 0.40 50 100 0.20 0 50 0.00 2015 2016 2017
Slide 15: The initial strategy
The initial strategy Early stagesof the strategysuccessfully executed with proven ability to deliver the mining cycle Current 2018 -19 2020- 25 2025 onwards DEVELOP OPERATE MAXIMISING RIGHT SCALE OF DEVELOPMENT WITH POSITIONING IN PLATFORM ACQUISITION CURRENTASSETS COMMODITY TYPE CAPITAL DISCIPLINE
Slide 16: Progression is earned
Progression is earned A two-pronged approach integrating benchmark operating performance into value-accretive development / acquisition 2018 2019-2020 2021-2022 ONWARDS PROJECT / INVESTMENT PIPELINE – MORE THAN ONE OPTION ‘SHOVEL READY’ COAL QUALITY | COST STRUCTURE | STRIP RATIO VALUE DRIVERS INCRE
Slide 17: Certainty in operations
Certainty in operations OPERATING PERFORMANCE Health, Safety, People, Operations Growth Environment, Organisation and Community Markets VALUES – STRATEGY – SYSTEMS 16
Slide 18: Certainty for the Company
Certainty for the Company A PREPARED COMPANY • No debt (but capacity) • • + share price Portfolio Development A BUSINESS THAT • Yield • Hub Acquisition FOUNDATION OPPORTUNITY • Earnings growth DRIVES CERTAINTY • Substantial cash built • Positive cash flow in low • Counter cycle capacity In the cycle
Slide 19: Certainty in mid-term development
Certainty in mid – term development SOURCE ROM COAL PIPELINE WITH DISCIPLINE 3.5Mt ROM 7.0Mt ROM COAL +15years COAL +20years A BUSINESSTHAT DRIVES CERTAINTY LIFE SOURCES LIFE SOURCES in growth PIPELINE / CAPACITY SECURED INCREMENTAL CAPACITY AVAILABLE • Isaac Plains • Isaac Plains South • Isaac Plai
Slide 20: Certainty with the combination
Certainty with the combination SOURCE ROM COAL PIPELINE WITH DISCIPLINE 3.5Mt 7.0Mt COAL +15years COAL +20years SOURCES LIFE SOURCES LIFE A BUSINESS THAT DRIVES CERTAINTY INDELIVERING RETURNSTO A PREPARED COMPANY SHAREHOLDERS • No debt (but capacity) • + share price • Portfolio Development • Dividen
Slide 21: Certainty in strategy
Certainty instrategy THE COMBINEDEFFECT PROJECT / INVESTMENT PIPELINE – MORE THAN ONE OPTION ‘SHOVEL READY’ COAL QUALITY | COST STRUCTURE | STRIP RATIO Isaac Plains Complex Regional Coal Hub Emerging Integrated Coal Company 2.0Mt 2.4Mt 2.4Mt 5.0Mt Margin Focussed Saleable Production Saleable Product
Slide 22: Background Information
BACKGROUND IMFORMATION
Slide 23: Board of Directors
Board of Directors Wealth of experiencecreatingthe buildingblocksfor a growingorganisation STEWARTBUTEL DANCLIFFORD STEPHENBIZZELL Non-executive Chairman Managing Director Non-executive Director • 40 years of experience in operational • Chairman of boutique corporate management and board roles in th
Slide 24: Board of Directors
Board of Directors Wealth of experiencecreatingthe buildingblocksfor a growingorganisation CHRISMCAULIFFE NEALO’CONNOR Non-executive Director Non-executive Director • Co-founder and ManagingDirector of • 30 years of legal experience in private Sprint Capital, a Hong Kong- based practice in Australia
Slide 25: Leadership team
Leadership team DANCLIFFORD IAN POOLE BERNIE O’NEILL JON ROMCKE Managing Director Chief Financial Officer General Manager – Operations General Manager – Development • More than 20 years’ experience in • Almost 30 years’ experience in • More than 30 years’ experience in the the coal miningindustry. f
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