White Energy Company Limited · ASX:WEC
White Energy — FY2007 Earnings Presentation
24 slides from White Energy's earnings presentation, Sep 27, 2007
Slide 1: Financial Year 2007 Results
For personal use only White Energy Company Limited (ASX : WEC) Financial Year 2007 Results
Slide 2: Building a Global Business
For personal use only White Energy Company Ltd Building a Global Business
Slide 3: Forward Looking Statements
Forward Looking Statements For personal use only Except for the historical information contained herein, the matters discussed in this presentation contain forward-looking statements, including statements, containing the words “planned”, “expects”, “believes”, “strategy”, “opportunity”, “anticipates
Slide 4: Overview
Overview For personal use only • The world needs coal: Of the resource options available for the world’s sustainable energy needs, coal plays a vital role. Economics and security of supply warrant the use of coal. Coal is abundant, affordable, available and reliable. • Coal needs to be clean to be v
Slide 5: Business Fundamentals
Business Fundamentals For personal use only • The White Coal Technology is commercially sound: The process, which was developed by the CSIRO has been shown to be cost and operationally superior to competing technologies. Its key advantage is that a potentially large number of low quality, high moist
Slide 6: Coal needs to be clean to be viable (quote)
For personal use only “Coal needs to be clean to be viable. Technologies already exist, the issue is their application.” Source: World Energy Council, 2007
Slide 7: FY 2007 Highlights
FY 2007 Highlights • BHP Billiton funding announced (US$35M): May 2007 - BHP For personal use only Billiton (BHP) agreed to provide WECL a US$35 million seven White Energy Company Limited Trading History FY 2007 year unsecured convertible funding facility to accelerate the 400,000 Volume 3.5 roll-ou
Slide 8: FY 2007 Highlights (Cont…)
FY 2007 Highlights (Cont…) For personal use only • China feasibility study announced: April 2007 - commenced final feasibility study to verify the economics and logistics of a joint venture with Datang International Power Company Ltd to build binderless coal briquetting plants at sub-bituminous coal
Slide 9: Financial Commentary
Financial Commentary For personal use only • Net loss for year ended 30 June 2007 was $10.6m, which includes: – Depreciation / amortisation charges $3.3m (mainly amortisation licence fee $3.1m) – Unrealised foreign exchange losses $0.6m – Employee share based payment expense $1.3m • Increase in net
Slide 10: Financial Snapshot
Financial Snapshot Consolidated Balance Sheet For personal use only (A$000’s) FY2007 FY2006 Current Assets 18,411 6,700 Non Current Assets 67,482 59,126 Total Assets 85,892 65,826 Total Liabilities 8,423 4,411 Net Assets 77,469 61,415 Total Equity 77,469 61,415 Consolidated Statement of Cash Flows (
Slide 11: For personal use only
For personal use only White Energy owns the global marketing rights to the patented White Coal Technology, a process that removes moisture from lower grade coals to significantly improve the heat energy content and quality of those coals.
Slide 12: Technology Overview
Technology Overview For personal use only The White Coal Technology (developed by the CSIRO) processes high moisture sub-bituminous coal resulting in: • Higher energy value: demonstrated to produce ~11,000 BTU/lb (6,200 kcal/kg) coal briquettes from ~8,000 BTU/lb (4,500 kcal/kg) sub bituminous coal;
Slide 13: The Technology – Low Scale-Up Risk
The Technology – Low Scale-Up Risk For personal use only • WEC’s successful 90,000 TPA demonstration plant is now ready to be scaled up • With minor design modifications, WEC is taking its proven 90,000 TPA technology and replicating it (utilizing standardized components that have been used by indus
Slide 14: Commercializing the Technology – Timeline
Commercializing the Technology – Timeline 15 MTPA For personal use only 9 MTPA 4 MTPA 1 MTPA 2007 / 08 2008 / 09 2009 / 10 2010 / 11 Page 14
Slide 15: Dwindling reserves of oil and natural gas (quote)
For personal use only Dwindling reserves of oil and natural gas suggest that their contribution to world energy use will show modest growth at best. Any new demand will be met partly by carbon- free energy sources, but mostly by coal.
Slide 16: Market Overview - Global
Market Overview - Global • Globally there are 465.3 billion tonnes of proven sub-bituminous and brown coal reserves. For personal use only These coals have been relatively under developed because of the poor transport and utilization efficiencies resulting from their high moisture and low energy con
Slide 17: Market Opportunity - Asia
Market Opportunity - Asia For personal use only • Asian Coal Outlook • Global thermal coal import demand (seaborne plus land- borne) is forecast to grow by 116Mt between 2005 and 2015. • Demand for thermal coal in Asia will grow by 77Mt accounting for 66% of total growth. • 40.7Mt or 55% of thermal
Slide 18: Market Overview – North America
Market Overview – North America For personal use only • North American Coal Outlook Initial US Target: Powder River Basin • Major users are US power utilities who have switched from local bituminous coals to avoid the need for costly flue gas desulphurization plants. • Central Appalachian Compliance
Slide 19: Improving the use and efficiency of energy sources (quote)
For personal use only In a world of rising fuel prices, political instability in fuel-rich countries and heated concerns about the environment, improving the use and efficiency of existing energy sources, including coal, is a matter of paramount importance.
Slide 20: Report Card
Report Card Bayan JV (Indonesia) For personal use only • JV owned 51% by WECL and 49% by Bayan. An initial plant is currently being built with production capacity of 1MTPA growing to 5MTPA and is expected to cost no more than US$28 million per million tonnes (plus US$7 million for power supply) • Ba
Slide 21: Strategy for the Year Ahead
Strategy for the Year Ahead For personal use only Key deliverables for FY2008: 1) Commission Bayan and Adaro Operations (build earnings and cash flow): • Bayan: commission the first phase of the 1MTPA plant at the Tabang coal mine in Indonesia. • Adaro / Itochu: complete all pre production work and
Slide 22: Management Team
Management Team For personal use only WECL has assembled a diverse, experienced team that includes experienced business executives, coal executives and coal technologists: • Travers Duncan (Executive Chairman White Energy Technology Limited): Civil engineer with over thirty years’ experience in proj
Slide 23: Summary
Summary For personal use only • The world needs coal: Of the resource options available for the world’s sustainable energy needs, coal plays a vital role. Economics and security of supply warrant the use of coal. Coal is abundant, affordable, available and reliable. • White Energy has a technology t
Slide 24: For personal use only
For personal use only Whatever your views on coal use, it’s here to stay and we need to find a balance between our energy ambitions and environmental concerns. White Energy has a technology that represents a first step in building a solution. It is an important step but not the panacea. White Energy