Oracle Power Plc · LSE:ORCP
Oracle Power — Investor Presentation (January 2018)
16 slides from Oracle Power's investor presentation, January 2018
Slide 1: An Opportunity for Growth
Minesite Presentation 19th March 2015 Integrated Coal Mine and Power Plant Block VI, Thar Coalfield, Sindh An Opportunity for Growth January 2018
Slide 2: Disclaimer
DISCLAIMER The information contained in this confidential document (“Presentation”) has been prepared by Oracle Power plc (the “Company”). It has not been fully verified and is subject to material updating, revision and further amendment. This Presentation has not been approved by an authorised pers
Slide 3: Summary
SUMMARY ➢ Integrated 4.0 mpta open-pit coal mine and 700MW power plant (Phase I) to increase to 8 mpta coal feeding 1,400 MW power plant (Phase I & II); ➢ Total Phase I project cost US$1.6 billion, including cost of finance; ➢ Oracle upgraded to Priority Project in China-Pakistan Economic Corridor;
Slide 4: Project Rationale
PROJECT RATIONALE ➢ Pakistan continues to suffer from major electricity shortages; Economy expanding; ➢ 175 bln tonnes of coal discovered in Thar can be developed to meet this shortfall, at lower cost, saving foreign exchange; demand for electricity forecast to rise by 5-6% pa, contributing substant
Slide 5: Pakistan: Country Commentary
PAKISTAN: COUNTRY COMMENTARY ➢ Morgan Stanley Capital International (MSCI) announced on June 14, 2016 that Pakistan will be reclassified from “Frontier Markets” to “Emerging Markets” coinciding with the May 2017 Semi-Annual Index Review. ➢ World Bank has revised Pakistan’s growth rate upward to 5.2%
Slide 6: MOU Initialled; Power Plant Proposal Submitted
MOU INITIALLED; POWER PLANT PROPOSAL SUBMITTED Memorandum of Understanding signed : ➢ Parties & intended equity holdings : ➢ Sichuan Provincial Investment Group Co. Ltd 78.0% ➢ PowerChina International Group Limited 9.9% ➢ Oracle Power PLC 12.1% ➢ 75:25 debt:equity ratio. Chinese parties to arrange
Slide 7: Details of MOU/Consortium Partners
DETAILS OF MOU/CONSORTIUM PARTNERS About PowerChina International Group Limited : ➢ Chinese state-owned enterprise, owner of numerous electric power design institutes and power construction companies. and numerous electric power design institutes and power construction companies. ➢ Provides planning
Slide 8: Development 2007 - 2017
DEVELOPMENT 2007 - 2017 Formation of two subsidiaries in Pakistan, Sindh Carbon Energy Ltd and Thar Electricity (Private) Ltd Exploration drilling and Feasibility Study to bankable level overseen by leading international consultants SRK Admission to AIM Secured mining lease (for 30 years, extendable
Slide 9: China-Pakistan Economic Corridor
CHINA-PAKISTAN ECONOMIC CORRIDOR ➢ Oracle upgraded to Priority Project in CPEC, attracting interest from more Chinese SOEs to Thar Block VI ➢ CPEC Agreement includes: ▪ improvement of economic ties, in particular infrastructure and energy; ▪ Finance support from Chinese Gov’t and Banks for Chinese c
Slide 10: Key Milestones to Financial Close 2018
KEY MILESTONES TO FINANCIAL CLOSE 2018 Agreements to Financial Close Concluded To follow Being Finalised with Chinese Partners Coal price Land acquisition Binding Shareholder Agreement, followed by: Applied for Coal Supply • EPC and O&M contracts for electricity tariff Agreement mine and power plant
Slide 11: Project Plan: Mine & Power Plant
PROJECT PLAN: MINE & POWER PLANT Item Description Completed Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 2019 2020 2021 2022 2023 2024 Mine Development Mining Lease Feasibility Studies Dargo Implementation Plan ESIA to Pakistan Standard NOC Certificate ESIA to International Standards Resettlement Action
Slide 12: Summary Points
SUMMARY POINTS ➢ Oracle has put together a compelling project with support from world experts and financially strong partners from China; ➢ Financial Close in 3rd Quarter 2018; ➢ Mine and power plant commissioning in 2021; ➢ Equity support from a broad base of international investors and Chinese par
Slide 13: International Consultants
INTERNATIONAL CONSULTANTS Dargo Associates (UK) Overall Work Programme Management Wardell Armstrong International Environment & Social Impact Assessment (UK) RPS Aqua Terra (Australia/UK) Hydrogeology SRK Consulting (UK) Definitive Feasibility Study to Bankable Standard Mott MacDonald (Pakistan/UK)
Slide 14: Corporate Social Responsibility (CSR)
CORPORATE SOCIAL RESPONSIBILITY (CSR) ➢ Successful Public Hearings held for Mine and Power Plant; ➢ Water filter systems in all communities; ➢ Livestock health and productivity improvement campaign. ➢ Healthcare awareness campaign; ➢ Improvement of existing Government primary schools. 13
Slide 15: Map
MAP SINDH PROVINCE 2 0 20 40 60 80 100 - ha PROVINCE NSE Oracle Power PLC 14
Slide 16: Project Development Process
PROJECT DEVELOPMENT PROCESS Coal Project Oracle Power PLC Power Project Sindh Carbon Energy Limited Thar Electricity (Private) Ltd (SCEL) (TEPL) Coal Supply Agreement Implementation Agreement Mining Lease & Government Guarantee (Government of Sindh) (Government of Pakistan) Environmental Power Purch