Bowen Coking Coal Ltd · ASX:BCB
Bowen Coking Coal — Investor Presentation (September 2024)
48 slides from Bowen Coking Coal's investor presentation, Sep 19, 2024
Slide 1: Investor Presentation
Investor Presentation 19 September 2024 Answering the call for high-quality steelmaking coal ASX BCB
Slide 2: Important Information and Disclaimer
Important Information and Disclaimer About Bowen Coking Coal (‘BCB’) Forward-Looking Statements • Bowen Coking Coal has established a strategic position in Queensland’s Bowen Basin. The Company’s Burton Certain statements made in this document contain or comprise forward-looking statements, includin
Slide 3: Important Information and Disclaimer
Important Information and Disclaimer Listing Rule 5.23 and 5.19.2 Statements This presentation incorporates material concerning production targets and associated forecast financial information derived from production targets in BCB's ASX announcement dated 4 August 2021 headed “Transformational • Th
Slide 4: Important Information and Disclaimer
Important Information and Disclaimer Disclaimer Not an Offer Document To the maximum extent permitted by law, BCB and its respective related bodies corporate, shareholders and This Presentation does not, & should not be considered to, constitute or form part of any offer to sell, or solicitation of
Slide 5: Executive Summary
Executive Summary Record production in Q4 • Improving production performance at the Burton Complex through FY24 FY24 at the Burton Complex • Operations are now performing strongly with record ROM mined in Q4 FY24, low stripping ratio and >60% of coking coal sales mix • Mining rates exceed the upper
Slide 6: Burton Mine Complex
Lenton JV Lenton deposit Burton Mine Complex Bowen 90% | Unmined pit JORC Resource 140Mt* Formosa Plastics 10%. Isaac deposit Producing mine – Ellensfield Unmined pit South JORC Resource 4Mt* Four open pit resources Burton North deposit Existing pit The Burton Mine Complex: Infrastructure with a rep
Slide 7: FY2024 – Production Results
FY2024 – Production Results For the year ended 30 June 2024 Group Burton Complex Underlying production performance strong across the Burton ROM Coal Mined FY2024 ROM Coal Mined FY2024 Complex through FY24 reflected in the 2H FY24 EBITDA of $12.9m a turnaround from 1H FY24 performance of ($26.3m) EBI
Slide 8: Burton Complex Operating and financial performance
Burton Complex Operating and financial performance Quarterly EBITDA and FOB Cost Performance • Positive production performance for June quarter, with record ROM mined, low stripping ratio and 60% of coking coal sales mix - signalling EBITDA (Equity Share) A$M FOB Cost A$/Tonne Sold^ Average Realised
Slide 9: Burton Complex Quarterly
Burton Complex Quarterly ROM volumes (Kt), strip ratio (BCM/t), saleable coal production (Kt) – coking and thermal product split Actuals Forecast 900 15.1 800 12.1 700 11.0 600 500 6.7 6.4 400 300 59% 40% 40% 43% 40% 59% 40% 200 71% 43% 71% 60% 100 60% 41% 57% 29% 60% 0 41% 29% 57% FY24 Q1 FY24 Q2 F
Slide 10: Cost reduction initiatives
Cost reduction initiatives Status of the progress made in reducing cost of operations Opportunity Status Annual saving per annum Saving per tonne Standard haul trucks complete $6m $3-$4 Direct ROM haulage underway $4m $2-$3 Rejects crusher commissioning FY2025 Q1 $4.5m $2-$3 Automated bin loading pr
Slide 11: Shipping Cadence
Shipping Cadence Shipping 100000 90000 80000 Significant progress has been made in the quarter after only one vessel 70000 shipped in July 2024, with three vessels being shipped in August 60000 2024 and five vessels planned for September 2024 50000 40000 This would bring total vessels for the quarte
Slide 12: Outlook
Outlook Answering the call for high-quality steelmaking coal ASX BCB 12
Slide 13: FY25 Plan and Production Overview
FY25 Plan and Production Overview Volume increase and unit cost reduction FY25 Plan from ongoing operations1 Commentary Item Unit FY25 Plan FY24 Actual • BCB has planned for a long-term Burton Complex FOB cost^ of A$145/t - $155/t (ex royalties) from FY26 reflecting the transition to steady state op
Slide 14: Production performance
Production performance FY2024 actuals and FY2025 outlook ROM production volumes and ROM strip ratio (100%, Kt) Actuals Outlook 1,000 16.7x 900 800 700 11.0x 11.0x 600 500 6.7x 6.6x 7.0x 400 6.4x 6.4x 300 3.8x 3.6x 200 2.4x 100 - FY24 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY25 Q1 FY25 Q2 FY25 Q3 FY25 Q4 Bluff B
Slide 15: FOB Cash Cost per Sales Tonne (ex Royalty)
FOB Cash Cost per Sales Tonne (ex Royalty) 1 FY25 Plan excludes Bluff and Broadmeadow East mines that have transitioned into care and maintenance and corporate overheads 2 Unit costs (FOB) are in real terms and exclude State royalties FY2024 actuals and FY2025 outlook Actuals Outlook 250 218 200 188
Slide 16: Burton Complex 5-year Mine Plan
Burton Complex 5-year Mine Plan ROM production volumes and ROM strip ratio (100%, Kt) 3,500 3,000 6.6x 7.1x 6.8x 2,500 5.8x 5.2x 2,000 1,500 1,000 500 - FY2025 FY2026 FY2027 FY2028 FY2029 Ellensfield Plumtree Strip Ratio Answering the Answering the call callfor forhigh-quality high-qualitysteelmakin
Slide 17: Burton Complex 5-year Production Plan – optionality to increase volumes
Burton Complex 5-year Production Plan – optionality to increase volumes Single Module case and Module 2 expansion case (ROM, Mt) Expansion projects enabling capex1 Item Estimate ($m) Investment decision option Increase to 5.5Mtpa with Second Module CHPP1 Expansion volumes CHPP Module 2 12– 15 increm
Slide 18: Driving sustained value from the Burton Mine Complex
Driving sustained value from the Burton Mine Complex Key production targets – medium term Burton# / Lenton BME Total Life of Mine 8 – 12 years 1 – 2 years ~13 years6 Resources 248Mt1* 30Mt2* 278Mt3* Reserves 33Mt5* 1.5Mt2* 35Mt3* Production (ROM) 2.8 – 4.4Mtpa 0.8 – 1.2Mtpa4 2.8 – 5.5Mtpa Saleable c
Slide 19: Financing update
Financing update Answering the call for high-quality steelmaking coal ASX BCB 19
Slide 20: Financing update
Financing update Restructured debt terms estimated savings ~$34 million to June 2027 Heads of Agreement reached on revised debt terms* Debt financing facilities maturity profile (A$)1 • Bowen has executed Heads of Agreement with its senior and subordinated lenders (“Debt Financiers”), Taurus Mining
Slide 21: Financing update continued
Financing update continued Debt facilities Senior Loan Facility* Subordinated Loan Facility* A$m June 2024 September 2024 • Following the completion of sale of 10% of • Margin reduction achieved to 4.00% p.a. until March Broadmeadow East project, Bowen used a portion of the 2025, with interest rates
Slide 22: Royalty Deferral Payment Plan
Royalty Deferral Payment Plan Royalty Deferral Payment Plan Schedule ($m) Royalty Deferral Payment Plan Overview • BCB agreed royalty deferral arrangements with the Queensland Revenue Office (“QRO”) in Q1 FY24 and Q2 FY24 to preserve cash, maintain liquidity and manage its working capital position •
Slide 23: Operating Overview
Operating Overview Answering the call for high-quality steelmaking coal ASX BCB 23
Slide 24: Burton Mine Complex
Burton Mine Complex Ellensfield South Mine Remaining strip ratio* (BCM/t) Remaining coal Reserves*# 3.1:1 2.1Mt ROM coal mined YTD FY2025 Q1* Coal sales YTD FY2025 Q1* 575Kt 200Kt • Production from the mining complex has been strong in the quarter to date, reporting 15% above targeted ROM production
Slide 25: Plumtree North Mine
Burton Mine Complex Plumtree North Mine JORC Reserve*# Annual ROM production target* 11Mt 2.0 – 2.4Mt Life of mine1 First coal expected ~5 years FY2025 Q3 • Started clear and grub in advance of future mining activities • Topsoil removal has commenced in the current quarter • Waste removal by a free
Slide 26: Coal Handling & Prep Plant
Coal Handling & Prep Plant . 5.5Mt Nameplate Capacity* CHPP Availability YTD FY2025 Q1 # CHPP Utilisation YTD FY2025 Q1# 95% 94% • CHPP availability is above the 90% target while ROM feed tempo is consistent with Module 1 capacity at ~400t/hr • Current washing plan is focussed on producing as much c
Slide 27: Marketing
Marketing Europe Bowen has secured contracts for Burton hard coking coal with major Tier 1 steelmakers in Japan, Korea, China and Europe through 2024 and first quarter of CY2025 Japan Korea China Answering the call for high-quality steelmaking coal ASX BCB 27
Slide 28: Positive coal metrics
Positive coal metrics Global pricing highs through FY22 / FY23 Pricing ($US/tonne, nominal)1 600 500 400 300 200 100 - Newcastle Thermal Coal Premium Hard Coking Coal Australia FOB 1 Sources: S&P Capital IQ / CRB Answering the call for high-quality steelmaking coal ASX BCB 28
Slide 29: Met coal is essential for steel making
Met coal is essential for steel making 1 Source: World Economic Forum and ReThink Technology Research 2 Source: AWE Metallurgical Coal Market Outlook Reports 3 Source: Department of Industry, Science and Resources, Office of the Chief Economist (Resources and Energy Quarterly June 2024). LTM to Marc
Slide 30: Key Risks
Key Risks Answering the call for high-quality steelmaking coal ASX BCB 30
Slide 31: Risks
Risks You should be aware that an investment in BCB involves various risks. This section sets out some of the key risks associated with an investment in BCB. A number of risks and uncertainties, which are both specific to BCB, and of a more general nature, may adversely affect the operating and fina
Slide 32: Risks continued
Risks continued Risk Business risks Occupational health BCB’s operations are subject to a variety of industry specific health and safety laws and regulations which are formulated to improve and to protect the safety and health of and safety employees. Mining operations are potentially hazardous and
Slide 33: Risks continued
Risks continued Risk Business risks Geological Mineral resource and ore reserve estimates are a subjective process based on drilling results, past experience with mining properties and modifying factors, knowledge, industry practice and many other factors. Estimates which are valid when made may cha
Slide 34: Risks continued
Risks continued Risk Business risks Insurance BCB’s business is subject to a number of risks and hazards generally that could result in damage to mining or production facilities, personnel injury or death, environmental damage to BCB’s properties and the properties of others, delays in development o
Slide 35: Risks continued
Risks continued Risk Business risks Personnel risk BCB’s operations rely on the ability to attract and retain skilled labour. BCB manages this risk through working with the major service providers to set pay levels close to market, improving site culture and providing employees with high quality fac
Slide 36: Risks continued
Risks continued Risk General Investment Risks Liquidity risk BCB shareholders who wish to sell their BCB shares may be unable to do so at an acceptable price, or at all, if insufficient liquidity exists in the market for BCB shares. BCB does not guarantee the market price or liquidity of BCB shares
Slide 37: FY24 Financial Results
FY24 Financial Results Answering the call for high-quality steelmaking coal ASX BCB 37
Slide 38: Summary Financial Performance
Summary Financial Performance Profit and Loss ($’m) FY23 FY24 $ Change % Change • Operating loss for FY24 totaled $68.8 million driven primarily by the under performing Bluff Mine asset, with $54.6 million of the loss already incurred by H1FY24 Revenue Revenue from contracts with customers 204.5 441
Slide 39: Summary Financial Position
Summary Financial Position Balance Sheet ($’m) FY23 FY24 $ Change % Change • At 30 June 2024, the Group’s net assets totaled $9.8 million (2023: $35.1 million) which Current assets included cash assets of $21.7 million (2022: $48.9 million), $21.7 million in trade receivables Cash and cash equivalen
Slide 40: Summary Cash Flows
Summary Cash Flows Cash Flow Statement ($’m) FY23 FY24 $ Change % Change • The Group's net cash outflows of $5.0 million from operating activities, while significantly Cash flows from operating activities improved from the prior comparative period, included $14.7 million of interest payments Receipt
Slide 41: Group Cash
Group Cash FY24 Cash Movements A$m The Group placed the Bluff asset into care and maintenance in November 2023 following a rapid decline in PCI coal prices from April 2023 coupled with an increasing input cost environment 1 Jul-23 Burton Capex & Corporate Bluff Interest and Net Share Debt & Exchange
Slide 42: Appendices
Appendices Answering the call for high-quality steelmaking coal ASX BCB 42
Slide 43: Board and CEO
Board and CEO Our team has a strong combination of technical, managerial and capital markets Nick Jorss Executive Chairman Neville Sneddon Non-Exec Director Malte von der Ropp Non-Exec Director Daryl Edwards Chief Executive Officer experience, particularly in Mr Jorss was the founding Managing Direc
Slide 44: Corporate Snapshot
Corporate Snapshot 1 - debt at 30 June 2024 inc convertible notes - cash at 30 June 2024 which is A$21.7m 2 Unquoted securities - 3.2m options @ A$0.10 3 Unquoted securities Conversion price 30 June - Share price at 15 Sept 2024 - 16.0m @ A$0.25 (Board and management) 2024 A$0.2637 - 67.5m options @
Slide 45: Burton Mine Complex provides long-term growth options
Burton Mine Complex provides long-term growth options Indicative Timeframe1 Pit FY2024 FY2025 FY2026 FY2027 FY2028 FY2029 FY2030 FY2031-2035 Ellensfield South Plumtree North Broadmeadow East Lenton Hillalong Isaac Pit Burton North Burton South Teviot Creek Other projects 1 Lenton, Isaac, Hillalong,
Slide 46: Reserves and Resources
Reserves and Resources Reserves supporting the Production Targets (Mt)1,2 Resources supporting the Production Targets (Mt)1,2 Project Proven Probable Total BCB Ownership Project Measured Indicated Inferred* Total Broadmeadow East 1.0 0.5 1.5 90% Broadmeadow East 3.7 4.1 23 30 Burton & Lenton 25.0 8.
Slide 47: Burton Mine Complex
Burton Mine Complex Burton Mine Complex JORC Resources 278Mt JORC Reserves 35Mt Mineral Resource Estimate | Mt1,2,3,4 Mineral Reserve Estimate | Mt1,2,3,4,5 Measured Proved and Seam Proved Probable Seam Measured Indicated & Indicated Inferred M, I and I Probable Ellensfield South 10.9 5.6 17 3.1 20
Slide 48: Contact
Contact Bowen Coking Coal Ltd Level 4, 167 Eagle Street info@bowencokingcoal.com ABN 72 064 874 620 Brisbane, Queensland 4000 bowencokingcoal.com.au Phone+61 7 3191 8413 Australia ASX:BCB Answering the call for high-quality steelmaking coal ASX BCB 48
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