Slide 1: Mining 2014 Conference
For personal use only MINING 2014 CONFERENCE October 2014
Slide 2: Important Information
IMPORTANT INFORMATION For personal use only This document has been prepared by Stanmore Coal Limited (“Stanmore Although due care and attention has been used in the preparation of Competent Persons Statement: Coal”) for the purpose of providing a company and technical overview to forward looking sta
Slide 3: About Stanmore Coal
ABOUT STANMORE COAL For personal use only Queensland based coal Emerging coking coal Strong Board and Well funded with a strong development company producer at Belview management team with shareholder base proven track record of Counter-cyclical investment Additional pipeline of No tak
Slide 4: Strong Board and Management Team
STRONG BOARD AND MANAGEMENT TEAM Over 150 years of coal exploration, development and operational experience For personal use only Key Executives Nick Jorss Managing Director 20 years in engineering, project management, resource financing and M&A. Mike McKee Chief Operating Officer Mine manager with
Slide 5: Stanmore Coal's Strategy
STANMORE COAL’S STRATEGY For personal use only Driving towards production with disciplined growth The Company’s strategy is to: Deploy capital Undertake value Selectively pursue low Minimise overhead judiciously, where long engineering for key capital, high-value costs term value can be projects exp
Slide 6: Our Projects
For personal use only Our Projects 6
Slide 7: Located in Queensland's Premier Coal Basins
LOCATED IN QUEENSLAND’S PREMIER COAL BASINS For personal use only Emerging Bowen Basin coking coal producer at Belview Belview hosts high quality underground coking coal on existing rail line Progressing exploration and feasibility studies Pipeline of additional coal projects Lilyvale hosts un
Slide 8: Belview Project
BELVIEW PROJECT For personal use only Significant coking coal project in the Bowen Basin 100% owned Substantial coking coal deposit in heart of the Bowen Basin – 342 Mt JORC Inferred Resource Infrastructure in place – located on existing Blackwater Rail Line to Gladstone Port Surrounded by ope
Slide 9: Belview Project coal quality
BELVIEW PROJECT For personal use only Primary Secondary Initial coal quality test results are very positive Parameter1 HCC PCI Product Product Product Split % 62 38 Coal testing from bore cores indicate that Belview will produce a Hard Coking Coal (“HCC”) primary product and a Inherent Moisture %
Slide 10: Lilyvale Project
LILYVALE PROJECT For personal use only Coking coal project The Lilyvale Project is targeting the German Creek seam which is mined as a prime coking coal at nearby operating mines: - Kestrel UG Longwall (Rio Tinto) - Crinum UG Longwall (BMA) Historical drilling results and knowledge of surroundin
Slide 11: The Range Project
THE RANGE PROJECT Open cut, high energy, export grade thermal coal mine For personal use only 100% owned Feasibility Study complete on 5 Mtpa open cut export thermal coal mine over 25 years EIS completed and Mining Lease in process; no further expenditure required until 190km Surat Basin Rail is
Slide 12: Clifford Project
CLIFFORD PROJECT For personal use only Large exploration area with open cut potential Substantial exploration opportunities within the 1,161km 2 Clifford Project Area Potential to host a substantial thermal coal deposit suitable for open cut mining Substantial synergies with the Range JOGMEC
Slide 13: Reserves and Resources
RESERVES AND RESOURCES For personal use only JORC JORC Marketable Recoverable JORC JORC JORC Coal Coal Measured Indicated Inferred Total JORC Project Reserve1,2 Reserve1,2 Resource1 Resource1 Resource1 Resource1 The Range Thermal 94.2 117.5 18.0 187.0 82.0 287.0 Mackenzie Coking - - - 25.7 117.5 143
Slide 14: Coal Market Outlook
For personal use only Coal market outlook 14
Slide 15: Where Are We in the Resources Cycle?
WHERE ARE WE IN THE RESOURCES CYCLE? Bottom of the cycle opportunity – long term outlook is strong Cyclical lows Renewed focus on cost and productivity For personal use only Coking and thermal coal are at their lowest levels since The majors continue to aggressively pursue cost reduction initiat
Slide 16: Supply/Demand Outlook
SUPPLY/DEMAND OUTLOOK Macro factors support a strong coal demand For personal use only Short term oversupply Quantity and quality of resources declining globally China re-stocking typically occurs in the second half of the year Increased focus from China on the emission profile of imported therm
Slide 17: Environmental Impact of Coal
ENVIRONMENTAL IMPACT OF COAL Modern technologies reduce emissions and increase efficiencies For personal use only Burning high quality thermal coal will reduce the emission profile of emerging economies Centralised ultra-critical power plants are significantly more efficient and produce less parti