Slide 1: New Investor Presentation Updates Crown Mountain Progress as Jameson Exhibits at PDAC
ASX RELEASE 2 MAR 2018 New Investor Presentation Updates Crown Mountain Progress as Jameson Exhibits at PDAC For personal use only Fast Facts ASX: JAL Highlights Share Price Range (6mths) $0.10 - $0.17 Shares on Issue 256,624,033 • Jameson will be exhibiting at the PDAC convention in Toronto, Market
Slide 2: About Jameson Resources Limited
About Jameson Resources Limited For personal use only Jameson Resources Limited (ASX:JAL) is a junior resources company focused on the acquisition, exploration and development of strategic coal projects in western Canada. The Company has a 90% interest in the Crown Mountain coking coal project, and
Slide 3: Investor Presentation PDAC March 2018
For personal use only INVESTOR PRESENTATION PDAC MARCH 2018
Slide 4: Investment Highlights
Investment Highlights For personal use only POSITIONED IN WORLD CLASS Jameson is a pure coking coal Company with its flagship project, Crown Mountain, COKING COAL FIELDS located within Canada’s prolific Elk Valley coal field, home to five operating mines. PROXIMAL TO Crown Mountain is located in a m
Slide 5: Company Snapshot
Company Snapshot Share Capital Art Palm – Chief Executive Officer and Chairman use only • Mining engineer with over 40 years of experience Recent Share Price A$0.13 CANADA • Engineering, Operations & Executive positions at major Shares Outstanding 257m US coal producers Market Capitalisation A$33m •
Slide 6: Flagship Canadian Coking Coal Asset
Crown Mountain Flagship Canadian Coking Coal Asset For personal use only • The Crown Mountain Coking Coal Project is located in southeast British Columbia • The high quality nature of the North and East Block coking coal is comparable to the benchmark Low Vol Premium Hard Coking Coal produced global
Slide 7: Geology
Crown Mountain Geology For personal use only 5
Slide 8: Resources and Reserves
Resources and Reserves For personal use only RESOURCE AREA Measured Indicated Measured & Inferred Measured, • The PFS Update confirmed a (Mt) (Mt) Indicated (Mt) Indicated & total reserve base at Crown (Mt) Inferred (Mt) Mountain of 56 million tonnes. North Block 8.0 6.0 14.0 0 14.0 • Confidence in
Slide 9: Proposed Project Facilities
Proposed Project Facilities For personal use only 7
Slide 10: PFS Update Highlights
Crown Mountain PFS Update Highlights For personal use only • FOB cash cost of US$75/t life-of-mine (US$66/t first four years) • Hard Coking Coal (HCC) comprises 84% of total clean coal production (balance is PCI) • Clean coal sales average 1.7 million tpa over 16 year mine life • After-tax Payback P
Slide 11: Operating Costs
Crown Mountain Operating Costs For personal use only Cost Category Cash Cost Per Clean Tonne Cash Cost Per Clean Tonne Initial Four Years US$ Life-Of-Mine US$ Waste Removal 21.51 26.47 Coal Mining 3.32 4.35 Plant 6.25 7.76 Clean Coal Handling 2.24 2.24 Reclamation 1.01 1.01 Minor equipment 0.65 0.77
Slide 12: Start-up Capital
Crown Mountain Start-up Capital For personal use only Pre-Production Capital US$M Major Mobile Equipment 99.1 Minor Mobile Equipment 9.7 Wash Plant 63.7 Infrastructure (rail load-out, roads, power, offices, shop etc) and permitting 93.2 Pre-Strip 15.6 SUBTOTAL – CAPITAL 281.3 Contingency @ 10% 28.1
Slide 13: Capital Intensity
Crown Mountain Crown Mountain’s low capital intensity is attributable to: Capital Intensity For personal use only – the topography of the project – low initial development costs due to favourable pre-stripping ratio – proximity to established infrastructure (power, rail and port) – the impact of exc
Slide 14: Coal Sales Prices
Crown Mountain Coal Sales Prices For personal use only PERIOD COAL TYPE NORTH SOUTH Life-of-mine Hard Coking $140 - $170 $126 - $153 PCI $92 - $112 $92 - $112 Selling prices used in the PFS Update are the average of each respective range above. 12
Slide 15: Metallurgical Coal Overview
Crown Mountain Metallurgical Coal Overview For personal use only METALLURGICAL COAL • Metallurgical coal is predominantly sold in three forms – Hard Coking Coal (HCC), Semi-Soft Coking Coal and Pulverised Coal Injection • HCC is the most valuable form of coal as there are no substitutes and it must
Slide 16: Coal Quality
Coal Quality For personal use only Crown Mountain Coking Coal1 Canadian Canadian Central NEBC SEBC North and South Alberta2 HCC2 HCC2 East Blocks Block Total Moisture (% as received) 8-9 8-9 8-9 8-9 8-9 Volatile Matter (% dry) 20.5 18 23 - 24.5 21 - 27 17 - 27 Ash Content (% dry) 9 9 8.3 - 8.6 8.5 -
Slide 17: Coal Quality Comparison
Crown Mountain Coal Quality Comparison For personal use only Source: Norwest To attain the “blend quality target” it is necessary to include high CSR “Prime HCCs” to offset lower quality coals. As depicted above, the Crown Mountain coal products have higher CSR relative to most other coals. 15
Slide 18: North & East Block Quality Factors Comparable to Peak Downs
Crown Mountain North & East Block Quality Factors Comparable to Peak Downs For personal use only • North and East Block Crown Mountain Coal • CSR is an indicator of the physical strength of a coke Strength after Reaction (CSR) and Volatile Matter • CSR is an important parameter in pricing of coking
Slide 19: Low Vol Premium HCC not seen amongst ASX Junior Coal Developers
Crown Mountain Low Vol Premium HCC not seen amongst ASX Junior Coal Developers For personal use only • Crown Mountain coal quality as measured by CSR and • China’s changing environmental views and pollution Volatile Matter, key coking parameters, places it in a control is now a major factor in deter
Slide 20: Seaborne Metallurgical Coal Market
Crown Mountain Seaborne Metallurgical Coal Market For personal use only METALLURGICAL COAL MARKET • The Global Seaborne Met Coal market is approximately 290mt • The Global Seaborne HCC market is approximately 171mt • Canada is the third largest Metallurgical coal exporter behind Australia and the Un
Slide 21: Global Steel Markets
Crown Mountain Global Steel Markets For personal use only • Steel consumption, and in turn metallurgical coal • China’s Belt and Road Policy will generate demand, exhibits a strong correlation with GDP long term demand for steel and seaborne growth metallurgical coal with large commitments to develo
Slide 22: China…Supply Side Reform, 'Belt and Road'
Crown Mountain China…Supply Side Reform, ‘Belt and Road’ For personal use only • Chinese Supply Side Reforms (‘SSR’) have included the permanent closure of numerous met coal mines and ~60mt of induction furnace capacity with the slack predominantly being picked up by existing blast furnace operation
Slide 23: India…Make in Steel, Make in India
Crown Mountain India…Make in Steel, Make in India For personal use only • In 2015 India overtook the United States to become the third largest steel producer in the world, but is the second lowest steel consumption per capita of the G20. • The Indian Government has set a target of increasing steel p
Slide 24: Infrastructure – Rail and Port Capacity
Crown Mountain Infrastructure – Rail and Port Capacity For personal use only No capacity constraints on rail networks and Canada - West Coast Port Capacity (Mt) ports currently undergoing expansion Current Capacity Planned Growth RAIL 60 • Common user railway linking South East BC to deep water port
Slide 25: PFS Update Results – Sensitivity
Crown Mountain PFS Update Results – SENSITIVITY For personal use only NPV10 (US$M) Pre-Tax After Tax Sensitivity Range + - + - Base Case 440.6 267.2 Selling Price +/-10% 590.0 291.4 364.4 169.8 Selling Price +/-20% 739.4 141.7 461.6 70.6 Ridley Terminal +US$12/tonne 313.4 184.3 Operating Cost +/-10%
Slide 26: Procurement/Financing Considerations
Crown Mountain Procurement/Financing Considerations For personal use only • The used equipment market provides an opportunity to achieve significant reductions in CAPEX: – Low-hour equipment is often available for a fraction of original cost – OPEX would increase versus new equipment – In the right
Slide 27: Upcoming (2018) Activities
Upcoming (2018) Activities For personal use only • Continue to pursue AIR • Prepare the Application for EA Certificate • Prove the selenium mitigation strategy: • Phase I work completed in December, 2017: favourable. • Phase II laboratory work underway. • Spoil pile design to incorporate Phase I and
Slide 28: Timeline
Crown Mountain - Timeline ACTIVITY 2016 2017 2018 2019 2020 For personal use only Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Environmental Baseline ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ EA Pre-application Consultations ✓ ✓ EA Pre-application VCD ✓ ✓ ✓ EA Pre-application AIR ✓ ✓ ✓ ✓ ✓ PFS Update ✓ ✓ ✓ EA
Slide 29: Investment Highlights
Investment Highlights For personal use only POSITIONED IN WORLD CLASS Jameson is a pure coking coal Company with its flagship project, Crown Mountain, COKING COAL FIELDS located within Canada’s prolific Elk Valley coal field, home to five operating mines. PROXIMAL TO Crown Mountain is located in a m
Slide 30: Competent Persons Statements
Competent Persons Statements For personal use only Competent Person Statements Mineral Reserves and Pre Feasibility Study Results The information in this presentation relating to the Mineral Reserve Estimate and Pre Feasibility Study Results of the Company’s Crown Mountain Coal Project are extracted
Slide 31: Disclaimer
Disclaimer For personal use only This document has been prepared as a summary only, and does not contain all information about the Jameson Resources Limited’s (the “Company”) assets and liabilities, financial position and performance, profits and losses, prospects and the rights and liabilities atta
Slide 32: For personal use only
For personal use only AUSTRALIAN OFFICE (Corporate) CANADIAN OFFICE Suite 5, 62 Ord Street, Suite 800, 1199 West Hastings Street West Perth Western Australia 6005 Vancouver, BC V6E 3 T5 T: +61 (8) 9200 4473 T: +1 (604) 629-8605 www.jamesonresources.com.au E: admin@jamesonresources.com.au