Yancoal Australia Ltd. · ASX:YAL
Yancoal Australia — Investor Presentation (March 2013)
40 slides from Yancoal Australia's investor presentation, Mar 25, 2013
Slide 1: Yancoal Investor Presentation ASX Release
YANCOAL AUSTRALIA LTD ADDRESS: Level 11, 68 York Street Sydney NSW 2000 PHONE: 61 2 8243 5300 FAX: 61 2 8243 5399 WEBSITE: www.yancoal.com.au For personal use only 22 MARCH 2013 ASX Release: Yancoal Investor Presentation Attached is a company investor presentation that will be used on an Asian and A
Slide 2: Full Year Results 2012 Investor Presentation
Yancoal Australia Ltd Full Year Results 2012 For personal use only Investor Presentation March 2013
Slide 3: Disclaimer
Disclaimer Summary of information For personal use only This Presentation contains summary information about Yancoal Australia Ltd (“Yancoal”, “Yancoal Australia” or the “Company”) and its subsidiaries and their activities. It should be read in conjunction with Yancoal’s other periodic and continuou
Slide 4: Contents
For personal use only Contents Highlights & Profile Full Year Results Key Achievements Asset Profile Coal Market Review & Outlook Company Outlook Resources and Reserves 3 22 March 2013 3
Slide 5: Highlights
Highlights Completed the merger with Gloucester Coal to create one of Australia’s largest For personal use only diversified coal companies Successfully listed on the Australian Securities Exchange in accordance with FIRB requirements Achieved record production and sales since Yancoal entered t
Slide 6: Full Year Results - Financials
For personal use only Full Year Results - Financials 5 22 March 2013 5
Slide 7: Financial Results
For personal use only Financial Results Yancoal reported a profit after tax of $404.6 million for 2012 The result includes a contribution from Cameby Downs and Premier mines in the first half and all the Gloucester assets in the second half of the year as the merger of Yancoal and Gloucester was
Slide 8: Balance Sheet
Balance Sheet SIMPLIFIED 31 Dec 2012 31 Dec 2011 For personal use only BALANCE SHEET $m's $m's Cash 350.7 291.0 Other Current Assets 522.1 530.7 Non Current Assets 7,056.0 4,685.0 Total Assets 7,928.8 5,506.7 Current Liabilities 1,045.1 1,227.2 Non Current Liabilities 5,040.2 2,517.0 Total Liabiliti
Slide 9: Debt Maturity Profile
Debt Maturity Profile Yancoal has been able to push out its debt maturity profile so it aligns with expected growth in coal For personal use only production and subsequent cash flows Interest rates on the borrowings are relatively low and are not secured Debt Maturity Profile - 31 December 2012
Slide 10: Full Year Results - Operating
For personal use only Full Year Results - Operating 9 22 March 2013 9
Slide 11: 2012 Production
2012 Production 2012 2011 For personal use only ASHTON ROM Coal Produced 000's t 2,305 2,154 Saleable Coal Produced 000's t 1,080 1,205 Coal Sales 000's t 1,221 1,468 AUSTAR ROM Coal Produced 000's t 1,737 1,877 The data in the table represents the period where Saleable Coal Produced 000's t 1,467
Slide 12: 2012 Production (contd)
For personal use only 2012 Production (contd) ROM coal production from Yancoal owned Yancoal ROM Coal Production (Mt, Equity basis) mines has grown strongly by a combination 25.0 of acquisition and organic growth since 20.0 19.9 2009 15.0 11.0 13.3 10.0 5.0 The 51% interest in Minerva was sold a
Slide 13: Quarterly Production & Sales
Quarterly Production & Sales Quarterly ROM Production from Current Mines (Mt, 100% basis) For personal use only 10.0 The mines in the Yancoal portfolio 8.0 6.9 at the end of 2012 performed 5.4 5.7 5.8 6.0 well over the course of the year 4.0 with total ROM coal production increasing over the year
Slide 14: Coal Sales
Coal Sales Coal sales for the merged company (equity basis) were 14.8Mt for the year For personal use only Sales exceeded production by a small margin despite weak coal markets during the second half of the year Metallurgical coal sales were lower than expected as some was sold as energy adjus
Slide 15: Key Achievements
For personal use only Key Achievements 14 22 March 2013 14
Slide 16: Key Operating Achievements for 2012
Key Operating Achievements for 2012 Moolarben For personal use only • Completed the DFS for Open Cut 4 in the Stage 2 project; commenced the DFS for the underground mines in Stage 2 • Lodged the Preferred project Report for Stage 2 with the NSW Department of Planning and Infrastructure (DP&I) • In
Slide 17: Realisation of Synergies
Realisation of Synergies • The majority of synergies are only scheduled to be realised from 2014 onwards For personal use only • Nevertheless progress has been made with material value now being realised Leveraging Unutilised Port Capacity Reduction in Peak Railings and Logistics Savings • Using Glo
Slide 18: Cost Reduction
For personal use only Cost Reduction Yancoal FOR Weighted Average Costs ($/t Sold) 80.00 75.00 Yancoal has set an aggressive target for 70.00 cost reduction in aggregate across its 65.00 60.00 mines for 2013 following a reduction of 55.00 50.00 about 5% achieved half on half in 2012 45.00 40.00 35
Slide 19: "Being Abel" a Success Story
“Being Abel” a Success Story A business transformation process that Abel Mine Quarterly Production (Mt) & TRIFR (1Year Rolling Av) For personal use only 0.6 80 encompasses the use of “LEAN” 75 0.5 methodology to underground mining was 70 0.4 introduced to the Abel Mine in early 2012 65 0.3 60 and
Slide 20: Asset Profile
For personal use only Asset Profile 19 22 March 2013 19
Slide 21: Snapshot
For personal use only Snapshot Seven operating mining entities Coal products – SHCC, SSCC, LV PCI, PCI, Thermal Operations in Queensland and New South Wales Resources 3824Mt and Reserves 799Mt (100% basis) Infrastructure – 27% ownership of NCIG and 5.6% of Wiggins Island Stage 1 Port All
Slide 22: Overview of Yancoal Assets
Overview of Yancoal Assets Yancoal operates seven mining entities which are geographically spread across Queensland and New South For personal use only Wales producing a range of products which are exported through several coal terminals in both States Yarrabee Operating & Development Middlemount Op
Slide 23: Infrastructure
For personal use only Infrastructure Yancoal’s is one of the best positioned coal mining companies in Australia with both port and rail allocation contracted or committed to grow in line with increasing coal output from its mines in Queensland and New South Wales Notes: 1. Data shown on an 100% ba
Slide 24: Infrastructure Positioning
For personal use only Infrastructure Positioning Yancoal currently has excess port and Wiggins Island Coal Terminal rail capacity for 2013 The largest single component of port allocation is at NCIG where, following the merger with Gloucester, Yancoal has a large allocation due to its 27% ownersh
Slide 25: Ashton Mine (90%)
Ashton Mine (90%) Achievements Ashton Actual & Forecast Production (Mt) For personal use only 3.5 • Commenced mining in the Upper Liddell seam 40 3.0 metres below the Pikes Gully seam 2.5 • Bowmans Creek diversion completed and successfully 2.0 commissioned (above the underground mine) 1.5 • Origi
Slide 26: Austar Mine
Austar Mine Austar Actual & Forecast Production (Mt) For personal use only Achievements 2.0 • Progressed Stage 3 development including mains and gate road development, sinking the 1.5 Kitchener shaft and services shaft, developing 1.0 the underground coal bin • Commenced mining the final panel in
Slide 27: Moolarben Mine (80%)
For personal use only Moolarben Mine (80%) Achievements Moolarben Actual & Forecast Production (Mt) 6.0 • Record production of 7.2Mt ROM coal and 5.2Mt 5.0 product (100% basis) 4.0 • Completed Stage 2 Open Cut 4 DFS 3.0 • Maintained low operating costs 2.0 • Commenced relocation of local road for
Slide 28: Yarrabee Mine
Yarrabee Mine Achievements Yarrabee Actual & Forecast Production (Mt) For personal use only • Gained M.L. for new mining area (YEN Pit) 3.0 • Secured additional below and above rail capacity to 2.5 2.0 underpin production growth 1.5 • Completed construction of new workshop and 1.0 upgraded Boonal
Slide 29: Stratford & Duralie Mines
Stratford & Duralie Mines Stratford & Duralie Actual & Forecast Production (Mt) For personal use only Achievements 3.0 2.5 • Initiated cost reduction programme and captured a 2.0 number of the elements identified 1.5 • Lodged the EIS for the SEP with the DP&I 1.0 • Placed the EIS on public exhibit
Slide 30: Donaldson Mines
Donaldson Mines Achievements Donaldson Actual & Forecast Production (Mt) For personal use only 2.5 • The business transformation project “Being Abel” using LEAN processes was introduced and produced 2.0 significant improvements on several measures (see 1.5 slide 11 for details) 1.0 • The Environme
Slide 31: Coal Market Review & Outlook
For personal use only Coal Market Review & Outlook 30 22 March 2013 30
Slide 32: Metallurgical Coal Review & Outlook
For personal use only Metallurgical Coal Review & Outlook Metallurgical coal prices appear to have reached their low point during Q3 of 2012 and have gradually improved in USD / tonne subsequent months 400 Coking Coal Prices fob Spot Price Indices 360 A combination of recent transport 320 disrup
Slide 33: Thermal Coal Review & Outlook
For personal use only Thermal Coal Review & Outlook The thermal coal price may have reached a turning point in the third quarter of 2012 when significant USD / tonne 250 portion of the export industry around Export Thermal Coal the world was losing cash Spot Price Indices cif ARA, fob Richards Bay
Slide 34: Company Outlook
For personal use only Company Outlook 33 22 March 2013 33
Slide 35: Costs and Production Targets
Costs and Production Targets Yancoal FOR Cash Cost Range - 2013 ($/t Sold) For personal use only 100 Yancoal has set aggressive cost reduction 75 targets for each of its mines in 2013 50 The low cost Moolarben Mine dominates 25 production and has a large impact on 0 aggregate costs across the gr
Slide 36: Five Year Plan
For personal use only Five Year Plan Execution of each of the projects identified in the five year plan is dependent upon receiving the required Government approvals, Yancoal Board approval, arranging appropriate finance and obtaining landowner consents/agreement Yancoal Five Year Plan Production
Slide 37: Outlook
For personal use only Outlook Yancoal will seek to reduce operating costs at all of its mines in 2013 Coal production and sales are forecast to increase in 2013 Expansion plans will continue to be executed at several mines Management will continue to focus on delivering synergies identified
Slide 38: Corporate Profile
For personal use only Corporate Profile ASX Codes: YAL (Ordinary Shares) and YALN (Contingent Value Rights) Shares on Issue: 994.2 million Ordinary Price and volume Shares and 87.9 million CVR Shares 18.0 1.4 Current Ordinary Share Price: $0.83 16.0 14.0 1.2 Share price ($) 12.0 Volume (m) M
Slide 39: Coal Resources and Reserves
Coal Resources and Reserves Project Ownership Measured Indicated Inferred Total % Resource Resource Resource Resources For personal use only Mt Mt Mt Mt Moolarben (O/C & U/G) 80 423.4 577.9 220.9 1222.2 Austar (U/G) 100 81 70 70 221 Ashton (O/C & U/G) 90 134.9 136.3 51.3 322.5 Yarrabee (O/C) 100 78.
Slide 40: Thankyou
For personal use only Thankyou
Yancoal Australia — Investor Presentation (March 2013) on 6ix