Stanmore Resources Ltd · ASX:SMR
Stanmore Resources — Stanmore Coal — Investor Presentation (June 2013)
24 slides from Stanmore Resources's investor presentation, Jun 12, 2013
Slide 1: Presentation to Analysts
For personal use only Presentation to Analysts June 2013
Slide 2: Important Information
Important Information This document has been prepared by Stanmore Coal Limited (“Stanmore Coal”) for the purpose of providing a company and technical overview to interested analysts/investors. None of Stanmore Coal, For personal use only nor any of its related bodies corporate, their respective dire
Slide 3: About Stanmore Coal
About Stanmore Coal For personal use only Pure play, Queensland ASX code - SMR 94Mt of JORC 975-1,498 Mt(2) of based coal company Share price - A$0.13(3) Marketable additional Reserves(1) exploration targets Founded in 2008 Shares – 207.8m Mkt cap - $27.0m(3) 231Mt of Measured c.
Slide 4: Located in Queensland's Premier Coal Basins
Located in Queensland’s Premier Coal Basins For personal use only 4
Slide 5: Belview Project Overview
Belview Project Overview Acquisition of EPC 1186 Creates Large Coking Coal Project in Bowen Basin region 100% owned For personal use only Substantial coking coal project in heart of the Bowen Basin Acquisition of EPC1186 provides access to shallower coking coal and significant increase in Explor
Slide 6: Belview Project – Concept Study Results
Belview Project – Concept Study Results EPC 1186 significantly reduces the initial depth of mining For personal use only Asset description Project ownership 100% Location Blackwater, Bowen Basin, Qld JORC Inferred Resource 95Mt Exploration target1 735-1,103Mt Infrastructure solution Blackwater line,
Slide 7: Belview Project Timetable
Belview Project Timetable First coal target 2017 For personal use only Concept study estimates underground development can commence in 2017 and longwall mining can commence in late 2018 Source: Xenith Concept Mining Study 7
Slide 8: The Range Thermal Coal Project
The Range Thermal Coal Project Open cut, high energy, export grade thermal coal mine 100% owned For personal use only Feasibility Study complete on 5Mtpa open cut export thermal coal mine over 25 years High energy, low emission thermal coal sought after in Asia Mining Lease on track for 1st qu
Slide 9: The Range Thermal Coal Project Feasibility Study Results
The Range Thermal Coal Project Feasibility Study Results Key Highlights For personal use only Asset Description The Range, Surat Basin Project (Queensland) Confirmed the technical and economic feasibility of the project JORC Resources(1) / Coal Reserves(2) 287Mt / 94Mt Location relative to infrast
Slide 10: The Range Feasibility Study Results: High energy export thermal coal
The Range Thermal Coal Project Feasibility Study Results For personal use only High energy export thermal coal Surat Basin coals are typically clean burning with good burnout characteristics and low nitrogen, ash and sulphur Suitable for all key markets including Japan, China, Korea and India
Slide 11: Surat Basin Coal Quality Comparison
The Range Thermal Coal Project Surat Basin Coal Quality Comparison For personal use only Surat Basin coals are typically high energy, clean burning coals featuring low impurities and emissions. Quality Surat Walloon Coals Other Australian Chinese Coals Comment Export Coals Sulfur (%) 0.4 0.3 - 0.7 0
Slide 12: Milestones
Milestones For personal use only Asset 1H13 2H13 2014 Beyond 2014 -2017: Drilling EPC 1186 PFS FS & Approvals Development Belview and PFS planning 2017: First coal The Range Feasibility Study ML grant and 2016: First coal & EA negotiation Construction KEY Exploration & Studies Development Constructi
Slide 13: Supplementary Slides
For personal use only SUPPLEMENTARY SLIDES 13
Slide 14: Strong Board and Management Team
Strong Board and Management Team NEVILLE SNEDDON NICK JORSS STEPHEN BIZZELL VIV FORBES ANDREW MARTIN For personal use only Managing Director Director Director Chairman Director Mining engineer with 37 years Extensive experience in Over 40 years of Bowen Basin 20 years in engineering, 15+ years in in
Slide 15: Reserves, Resources and Targets
Reserves, Resources and Targets For personal use only JORC JORC JORC Measured JORC Indicated JORC Inferred Total JORC Additional Exploration Project Marketable Coal Recoverable Resource (1) Resource (1) Resource (1) Resource (1) Target (3) Reserve (1) (2) Coal Reserve (1) (2) Low High The Range Ther
Slide 16: Australian junior coal sector is oversold
Australian junior coal sector is oversold due to a myriad of factors… Australian Junior Coal Stock Performance For personal use only 140 140.00 Index rebased to 100 120 120.00 All Ordinaries 100 100.00 (LHS) 80 80.00 USD Coal Junior 60 60.00 Average (LHS) 40 40.00 USD thermal coal 20 20.00 price (RH
Slide 17: Juniors have efficiently developed the majority of greenfield developments in QLD
… but juniors have efficiently developed the majority of greenfield developments in QLD over the last decade New Mine First Year of Initial Current Owner Nominal For personal use only • Of the 11 greenfield operations developed Development Production Explorer/Developer Production during the period 2
Slide 18: Thermal Coal Drivers - The switch back to coal in the US
Thermal Coal Drivers - The switch back to coal in the US has already begun… • 2012 trade was 12% higher, an additional 95Mt of demand which was offset by a lack of For personal use only supply disruption in traditional export regions, low freight rates and a jump in US exports • Natural gas prices i
Slide 19: Major producing basins now in the money
… with the major producing basins now “in the money” compared to the lows of 2012 For personal use only • Natural gas reached a low of $1.82 / Mcf in April 2012 due to the shale gas drilling boom • Sustainable long term gas prices in the US of $5.00 - $8.00 / Mcf are estimated to be required to ensu
Slide 20: Project development of Australian thermal assets should continue
Project development of Australian thermal assets should continue in order to capture the trend of demand… For personal use only • Project delays will continue due to the weak current pricing market leading for potential for future supply shortages • The global cost curve will continue to rise as exi
Slide 21: China will continue to be a significant importer
… particularly as China will continue to be a significant importer as domestic supply becomes more expensive Imported coal is the cheapest source to coastal For personal use only • China - the largest import market • Delivered coal imports are likely to sustained into the future, regardless of the d
Slide 22: Potential impact of China's proposed low quality coal ban
Potential impact of China’s proposed low quality coal ban • Whilst not yet legislated, in May 2013, China's National Energy Administration (NEA) For personal use only circulated a draft regulation proposing to ban the use of certain coal types within the country • The biggest impacts could be on imp
Slide 23: Steel production will continue to grow off a higher base
Steel production will continue to grow off a higher base as the urbanisation of China continues For personal use only • The urbanisation of China will continue to • China is now a significant importer of coking coal underpin strong steel demand, particularly in due to the price arbitrage presented b
Slide 24: Future coking coal supply growth likely from Australian prime deposits
Future coking coal supply growth is likely to come from Australian prime deposits Australia holds quality hard coking coals which will continue For personal use only • to be amongst the most highly valued in the global market, particularly new supply • Timing of the supply response from developing n