James River Coal — Corporate Update (March 2013)
19 slides from James River Coal's corporate update, Mar 7, 2013
Slide 1: Shareholder Update March 2013
Shareholder Update March 2013
Slide 2: Forward Looking Statements
Forward Looking Statements Certain statements in this investor presentation and other written or oral statements made by or on behalf of us are "forward - looking statements" within the meaning of the federal securities laws. Statements regarding future events and developments an d our future perfor
Slide 3: Agenda
3 Agenda ● Opening Comments ● Operations Review ● Market Review ● Miscellaneous
Slide 4: Opening Comments Summary
Opening Comments Summary ● Major Restructuring of Mine Operations in Q - 4 and Early Q - 1 ● Idled Production Capacity of 3 Million Tons in CAPP ● Reduced Workforce by Approximately 400 Employees and Contractors ● Significant Impact on Productivity and Costs in Q - 4 ● Thermal Coal Markets Continue
Slide 5: Agenda
5 Agenda ● Opening Comments ● Operations Review ● Market Review ● Miscellaneous
Slide 6: Operations Review: Safety
8.40 1.82 5.00 2.35 - 1.00 2.00 3.00 4.00 5.00 6.00 7.00 8.00 9.00 2004 2005 2006 2007 2008 2009 2010 2011 2012 Operations Review Safety JRCC National Average Non - Fatal Days Lost
Slide 7: Operations Review Central Appalachia
Operations Review Central Appalachia ● Adjusted Operating Plan to Current Market Conditions ● All Kentucky Thermal Mines Idled the Week of Thanksgiving ● Idled Five Underground Mines ● Reduced Production at 3 Surface Mines ● Idled Two Preparation Plants and One Loadout ● Reduced Workforce by Approxi
Slide 8: Operations Review Midwest
Operations Review Midwest ● Freelandville East Underground Mine Exceeded Project Life Due to Additional Reserves. Will Complete Mining and Move to Freelandville West Underground Mine in the 1 st Quarter 2013. ● Production on Surface Mines was Adjusted to Match Sales Through Idle Days and Reduced Ove
Slide 9: Agenda
9 Agenda ● Opening Comments ● Operations Review ● Market Review ● Miscellaneous
Slide 10: Market Review Metallurgical Coal: International Demand and Supply
Market Review Metallurgical Coal ● China Has Returned to the Market in a Meaningful Way ● India Continues to Slowly Improve, ● Some New Coking Coal Demand Coming Online Soon ● Europe and Brazil Continue to Lag ● International Supply Still Vulnerable to Shocks ● Relatively Modest Events are Felt ● Ne
Slide 11: Market Review Metallurgical Coal: U.S. Markets
Market Review Metallurgical Coal ● Despite Drop Off in Pricing We are Holding Market Share ● Fractured Market ● Less Price Discipline ● Lots of Room for Pricing Upside ● More Than Just the Rise in Overall Pricing ● Industrial and PCI Markets Remain More Active ● We Continue to Place Tons into These
Slide 12: Market Review Travel Notes: Coalfields of CAPP and Illinois Basin
Market Review Travel Notes ● Regulatory Pressures Have Not Been Reduced ● More Inspectors Covering Fewer Mines ● Total CAPP Production Has Fallen Much Harder and Much More Quickly Than The Markets Realized ● Loadout Stockpiles Are Flat to Down Across the Industry ● Big Sandy River Stockpiles are Hug
Slide 13: Market Review Travel Notes: Southeastern Utilities
Market Review Travel Notes ● The Bulk of the Reduction in Coal Burn has Already Occurred ● The Soft Economy is a Bigger Factor Than Natural Gas Prices ● All of the Utilities are Trying Different Blends of Coal ● The Blend Changes are Not Permanent ● They Will Continue to Adjust for Several Years ● C
Slide 14: Market Review Travel Notes: India
Market Review Travel Notes ● The Economy has Bottomed and Started to Turn Up ● Growth in Coking Coal Use will Exceed Economic Growth for the Foreseeable Future ● U.S. Coking Coal is A Key Part of Their Supply Diversification Effort ● We are Well - Positioned to Participate in the Development of the
Slide 15: Agenda
15 Agenda ● Opening Comments ● Operations Review ● Market Review ● Miscellaneous
Slide 16: Miscellaneous: Balance Sheet and Liquidity
Miscellaneous Balance Sheet and Liquidity ● We Continue to Evaluate a Wide Range of Options to Strengthen the Balance Sheet and Improve Liquidity ● The Operations Changes Needed to be Substantially Complete First ● We Will Seek out a Broad Cross - Section of Input from Advisors and Current Holders O
Slide 17: Miscellaneous: Guidance
Miscellaneous Guidance (in 000’s) Depreciation, Depletion and Amortization $130,000 Tax Rate 0% Maintenance & Safety Capital $65,000 Completion of Ongoing Projects $ 5,000 Total Capital Expenditures $70,000 Production and Cash Cost Guidance Are Not being Issued at This Time Due to Recent Changes to
Slide 18: Upcoming Investor Conferences and Meetings
Miscellaneous Upcoming Investor Conferences and Meetings March 20, 2013 Howard Weil 41 th Annual Energy Conference New Orleans May 20, 2013 Brean Capital Global Resources & Infrastructure Conference New York August 6, 2013 BB&T Coal & Diversified Mining Conference St. Louis 1 st Quarter Report – Ear
Slide 19: James River Coal Company and Subsidiaries
Ax JamesRiver COAL COMPANY And Subsidiaries