Slide 1: Whitehaven Coal
Whitehaven Coal Results for the Financial Year Ended 30 June 2007
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by Whitehaven Coal Limited (“Whitehaven” or the “Company”). This presentation and its contents have been distributed in confidence and may not be reproduced or disclosed to any other person. Whitehaven has prepared this presentation based on information
Slide 3: Contents Page
Contents Page X Summary X Whitehaven Assets X Review of Operations X Review of Development Projects X Infrastructure X Market and Outlook 2007 Annual Results Presentation www.whitehaven.net.au 2
Slide 4: FY 2007 Summary
FY 2007 Summary Key Summary FY 2007 Lost Time Injuries 0 Sales (Mt) – Equity 1.46 Revenue (A$m) 106.2 EBITDA (A$m) 25.6 Net Profit (A$m) 22.5 2007 Annual Results Presentation www.whitehaven.net.au 3
Slide 5: Highlights
Highlights • Net profit after tax of $22.5m on 1.46Mt of coal sales • EBITDA of $25.6m • Successful IPO and listing on the ASX in June 2007 • Tarrawonga open cut mine successfully commissioned • Owner operation introduced at Canyon and Tarrawonga mines with significant cost savings • Environmental A
Slide 6: Comparison with Prospectus FY 2007
Comparison with Prospectus FY 2007 Proforma summary income statement FY 2007 Prospectus Variation A$ million A$ million A$ million Revenue 106.2 115.8 (9.6) FX gains 5.9 1.9 4.0 Total revenue 112.1 117.7 (5.6) Operating expenses (87.6) (96.5) 8.9 EBITDA 25.6 23.4 2.2 EBIT 13.3 15.5 (2.2) NPAT - Prof
Slide 7: Balance Sheet at 30 June
Balance Sheet at 30 June ($’000’s) FY 2007 FY 2006 Cash 21,185 1,756 Other current assets 41,730 24,811 Non-current assets 288,127 80,451 Total Assets 351,042 107,018 Borrowings 76,695 25,594 Other liabilities 24,320 30,941 Total liabilities 101,015 56,535 Equity 250,027 50,483 Net debt 55,510 23,83
Slide 8: Capital Expenditure
Capital Expenditure ($’000’s) FY2008f FY2007 Whitehaven Mining Precinct (WMP) Belmont / Sunnyside projects 10,830 6,049 Tarrawonga 7,940 31,891 Canyon / CHPP 1,850 9,841 WMP Total 20,620 47,781 Werris Creek 180 511 Narrabri North project 55,500 5,167 Total 76,300 53,459 2007 Annual Results Presentat
Slide 9: Contents Page
Contents Page X Summary X Whitehaven Assets X Review of Operations X Review of Development Projects X Infrastructure X Market and Outlook 2007 Annual Results Presentation www.whitehaven.net.au 8
Slide 10: Whitehaven Assets
Whitehaven Assets Narrabri (100%) SCoal Type: Thermal Bonshaw (66.7% interest) SUnderground mine in SCoal Type: Coking development (North) and SExploration prospect at exploration project (South) exploration stage SForecast first coal production from Narrabri North in Q4 CY2008 Whitehaven Mining Pre
Slide 11: Contents Page
Contents Page X Summary X Whitehaven Assets X Review of Operations X Review of Development Projects X Infrastructure X Market and Outlook 2007 Annual Results Presentation www.whitehaven.net.au 10
Slide 12: FY 2007 Operations Summary (100% Basis)
FY 2007 Operations Summary (100% Basis) • Saleable production up 65% Saleable Production (Mt) FY 2007 FY 2006 Change Whitehaven Mining Precinct 997 563 +77% Werris Creek 1,291 824 +57% Total 2,288 1,397 +65% • Coal Sales up 48% Coal Sales (Mt) FY 2007 FY 2006 Change Whitehaven Mining Precinct 1,021
Slide 13: Canyon
Canyon ROMPAD • Operation planned to be scaled down when Belmont project is REHABILITATED AREA approved. • Equipment will be progressively IT OF D IST UR BAN CE LIM WH2801 transferred to the RY CA05 CA03 CA01 BOUNDA CA07 CA09 Belmont open cut mine CA11 RAMP LEASE CA13 CA04 E CENTR CA15 ML1471 CA02A
Slide 14: Tarrawonga (70%)
Tarrawonga (70%) • Successful commissioning DAM • Production outstripping allocation LEASE B NA0101 OUNDAR NA0102 MN03 Y TA0801 TA0901 TA1001 TA1101 TA1201 TA1301 TA1401 TA1501 TA1601 at Newcastle Port (PWCS) TA1701 TA1801 TA1901 DAM TA2001 MN02 TA0802 PIT LIMIT TA0902 TA1002 TA1102 TA1202 TA1302 TA
Slide 15: Werris Creek Mine (40%)
Werris Creek Mine (40%) • New contractor – Marshall Mining and Earthmoving (subsidiary of John Holland) • Drilling has identified additional resources • Potential for additional reserves • Revision of JORC reserves estimate expected in September 2007. 2007 Annual Results Presentation www.whitehaven.
Slide 16: Contents Page
Contents Page X Summary X Whitehaven Assets X Review of Operations X Review of Development Projects X Infrastructure X Market and Outlook 2007 Annual Results Presentation www.whitehaven.net.au 15
Slide 17: Narrabri North
Narrabri North • Development Approval expected September 2007 • Mining Lease expected October 2007 • Construction to commence late 2007 • First coal production expected end 2008 • Stage 2 longwall planning advanced • Coal quality and product yield expected to provide low cost, high profitability • P
Slide 18: Narrabri North (continued)
Narrabri North (continued) 2007 Annual Results Presentation www.whitehaven.net.au 17
Slide 19: Narrabri South
Narrabri South • Potential for multiple longwalls within Narrabri South • Further exploration has increased resources at Narrabri South by c. 110Mt • Narrabri South Resources: (Mt) JORC 29 August 2007 Prospectus 3 May 2007 Change Measured 30.7 0.3 +30.4 Indicated 103.0 28.0 +75.0 Inferred 75.0 70.0
Slide 20: Narrabri Development Project - Summary
Narrabri Development Project - Summary • Major Gunnedah Basin resource • High quality, high yield thermal and PCI coal • Potential for multiple longwalls within Narrabri North and Narrabri South • Central infrastructure to service future development • Total Narrabri Resources: (Mt) JORC 29 August 20
Slide 21: Belmont Project
Belmont Project • Public display of Environmental Assessment expected in September 2007 • Approval process may delay coal production to FY2009 • Belmont’s strip ratio (4.5 to 1) is lower than Canyon’s (8.2 to 1) 2007 Annual Results Presentation www.whitehaven.net.au 20
Slide 22: Sunnyside Project
Sunnyside Project • Draft EA lodged on 3 July 2007 • Approval process may delay coal production to FY2009 • Low strip ratio, low cost operation planned • High ash coal provides for blending • Resources (Mt): Indicated 5.5 Inferred 0.8 Total 6.3 2007 Annual Results Presentation www.whitehaven.net.au
Slide 23: West Blue Vale Project
West Blue Vale Project • The West Blue Vale deposit is within a few kilometres of the operating Canyon mine. • The opencut Resource is: • Resources (Mt): JORC Resource Measured 2.76 Indicated 1.49 Inferred 0.71 Total 4.95 West Blue Vale 2007 Annual Results Presentation www.whitehaven.net.au 22
Slide 24: Contents Page
Contents Page X Summary X Whitehaven Assets X Review of Operations X Review of Development Projects X Infrastructure X Market and Outlook 2007 Annual Results Presentation www.whitehaven.net.au 23
Slide 25: Rail Capacity Expansion Underway
Rail Capacity Expansion Underway • Current rail capacity from Narrabri to Newcastle is c. 4Mtpa • Longer trains will provide increased capacity to c.7Mtpa by Q1 CY2008 • Cost of infrastructure upgrade to support longer trains is c.$50 million, to be funded by Government and recovered through rail fr
Slide 26: Port Capacity Expansion Underway
Port Capacity Expansion Underway • Current export terminal of PWCS, (Port Waratah Coal Services) has expected capacity in CY2008 of c.97Mt • Nominated demand by all exporters through the PWCS terminal is c.112Mt in CY2008 • New coal terminal operator, NCIG, (Newcastle Coal Infrastructure Group), is
Slide 27: Contents Page
Contents Page X Summary X Whitehaven Assets X Review of Operations X Review of Development Projects X Infrastructure X Market and Outlook 2007 Annual Results Presentation www.whitehaven.net.au 26
Slide 28: Coal Markets
Coal Markets • Strong demand expected to continue • JFY 2008 prices should reflect current high spot prices • Increased demand for Whitehaven’s low ash, low sulphur products • Strong end-user interest in the Narrabri project thermal coal 2007 Annual Results Presentation www.whitehaven.net.au 27
Slide 29: Outlook for FY 2008
Outlook for FY 2008 • Port constraints will limit sales growth • Coal stocks to be maintained at high levels • Productivity will be optimised • Accounting profit for hedge book taken in June 2007 • Cash effect of current hedge book is favourable vs accounting impact • Regulatory approvals for Belmon
Slide 30: Outlook Beyond FY2008
Outlook Beyond FY2008 • High productivity of Whitehaven’s operations to be maintained • New projects are well advanced in planning process • Belmont and Sunnyside are low capital, straight-forward projects • Rail capacity expansion is committed and underway • Port capacity expansion addressed by NCI
Slide 31: Qualifications and Statement
Qualifications and Statement • The information in this report that relates to Coal Reserves and Resources at Narrabri North and Narrabri South is based on information compiled by Mr Pat Hanna, who is a Member of the Australian Institute of Geoscientists. Mr Hanna FAusIMM, MAIG is a qualified geologi