Stanmore Resources Ltd · ASX:SMR
Stanmore Resources — Stanmore Coal — Investor Presentation (October 2010)
30 slides from Stanmore Resources's investor presentation, Oct 1, 2010
Slide 1: Capital Raising Presentation
For personal use only Capital Raising Presentation September 2010
Slide 2: Important notice
Important notice For personal use only This document has been prepared by Stanmore Coal Limited (“Stanmore Coal”) to provide a summary of the company’s activities as at the date this document was finalised, being 1 October 2010. None of Stanmore Coal, nor any of its related bodies corporate, their r
Slide 3: Stanmore Coal Highlights
Stanmore Coal Highlights For personal use only • Pure P play l coall company focused f d on world ld class l coall regions i – Portfolio of coking, thermal and PCI coal targets within seven project areas (all 100% owned) totaling 1,080km2 in the Bowen and Surat Basins in Queensland, Australia – 318M
Slide 4: Stanmore Coal Highlights
Stanmore Coal Highlights For personal use only • Prime Coal Areas – Six projects in the Bowen Basin – One project in the Surat Basin which hosts export quality thermal coal – A number of other Bowen Basin EPCs under application pp ((a further 1,000km , 2) • Close to Infrastructure – Bowen Basin proj
Slide 5: Capital raising summary
Capital raising summary For personal use only • Stanmore Coal is completing a $25.7 $25 7 million equity raising consisting of: – an unconditional placement of 13.9 million shares at $0.90 per share to raise $12 5 million; and $12.5 – 2 for 13 renounceable entitlement offer of $13.2 million at $0.80
Slide 6: Stanmore Coal Highlights - Key Metrics
Stanmore Coal Highlights For personal use only • Key K Metrics M ti Shareholders – ASX Code: SMR – Shares on issue: 93.7m – Current share price1: A$1 10 A$1.10 – Market Capitalisation1: A$103.1m – Cash Position2: A$3.0m (no debt) – Coal types: Coking and Thermal – JORC Resource3: 318 Mt – Current Ex
Slide 7: Strong Board and Management Team
Strong Board and Management Team For personal use only Neville ill Sneddon S dd SStephen h Bizzell i ll Chairman Director Mining engineer with 37 years Extensive experience in experience in coal, formerly CEO of commercialising resources Anglo Coal Australia, Chairman of companies; former executive
Slide 8: Strong Board and Management Team
Strong Board and Management Team For personal use only Andrew Martin Tim Jones Director Exploration Manager 15+ yyears in investment banking, g, SSenior i geologist l i t with ith 15 years infrastructure & resource financing experience in the Bowen Basin and M&A Vaughan Wishart Duncan Cornish Manage
Slide 9: Mackenzie River Project - Bowen Basin (100% owned)
Mackenzie River Project ‐ Bowen Basin (100% owned) For personal use only • Open Pit Coking Coal – 99Mt JORC Inferred resource – Exploration target1. of an additional 70 to 80Mt – Located on existing railway line to coal ports at Gladstone – 25km of strike (Burngrove Formation) – Adjacent to Aquila R
Slide 10: Mackenzie River - Coking Coal
Mackenzie River ‐ Coking Coal For personal use only • Aquarius q Seam – Average coal thickness 2.2m (max Aquarius Washability (Fl 1.50 adb) 3.4m) Coking Properties – Coal depth: 19m – 100m (cut off) CSN ((ave)) 60 6.0 – Dips at 2°to west CSN (max) 8.0 – Good coking properties Energy – Exploring a tw
Slide 11: Mackenzie River Project - Infrastructure
Mackenzie River Project – Infrastructure For personal use only • Port Access – Participating in Wiggins Island Coal Terminal (WICET) Gladstone ‐ Stage II planned expansion p p ((2015)) – Approximately 310km distance to port • Rail Access – Queensland Rail upgrade of existing Blackwater line to Glads
Slide 12: Mackenzie River - Path to Production
Mackenzie River – Path to Production For personal use only MACKENZIE RIVER 2010 2011 2012 2013 2014 2015 INDICATIVE DEVELOPMENT PLAN* Y Year 1 Y Year 2 Y Year 3 Y Year 4 Y Year 5 Y Year 6 Item ACTIVITY Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun 1 ML application X
Slide 13: The Range Project - Surat Basin (100% owned)
The Range Project – Surat Basin (100% owned) For personal use only • Export Quality Thermal Coal – 219Mt JORC Inferred Resource – Open pit mine planned producing 5Mtpa of high energy thermal from Q1 2015 – Conceptual Mining Study completed – NPV of A$298m at US$95/t price received1. – L Locatedd 24k
Slide 14: The Range Project - Export Thermal Coal
The Range Project – Export Thermal Coal For personal use only • Key Coal Parameters Product 10% ash 12% ash – Average total coal thickness Quality option option 6.1m ((max 9.0m)) (adb) – Coal depth: 9m – 100m; and Energy continues at depth kcal/kg 6,470 6,280 – Dips at 1° 1 to west Btu/lb 11,650 11,
Slide 15: The Range Project - Mining Study Results
The Range Project – Mining Study Results For personal use only • Cost Estimates Owner/ Operator Low Capex Contract 12% Product Ash Case Option Mining Option Development Capital Cost A$502m A$299m Operating Costs Free on Rail (FOR) per product tonne A$46 Free on Board (FOB1.) per shipped tonne A$85 •
Slide 16: The Range Project - Mining Plans
The Range Project – Mining Plans For personal use only – Three options for Coal Handling and Prep Plant (CHPP) location – 27km haul road to Surat Basin rail link – Twin pits mined in parallel – 18 year mine life 16
Slide 17: The Range Project - Proposed Flowsheet
The Range Project – Proposed Flowsheet For personal use only 17
Slide 18: The Range Project - Infrastructure
The Range Project – Infrastructure For personal use only • Port Access – Participating in Wiggins Island Coal Terminal (WICET) Gladstone ‐ Stage II planned expansion p p ((2015)) – Approximately 360km distance to port • Rail Access – Queensland Rail upgrade of existing Moura line to Gladstone schedu
Slide 19: The Range Project - Path to Production
The Range Project – Path to Production For personal use only THE RANGE 2010 2011 2012 2013 2014 2015 DEVELOPMENT PLAN* ‐ OVERVIEW Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Item ACTIVITY Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun 1 ML application X 2 Environmental
Slide 20: Emerald Project - Bowen Basin (100% owned)
Emerald Project – Bowen Basin (100% owned) For personal use only • Targeting Metallurgical and Export Thermal Coal – Rangal Coal Measures projected to sub‐crop through project area from 150m in depth – Exploration Target1.1 of 220 – 290 Mt of low to moderate ash (8 – 12% raw) export quality thermal
Slide 21: New Cambria Project - Bowen Basin (100% owned)
New Cambria Project ‐ Bowen Basin (100% owned) For personal use only • Targeting low‐volatile low volatile PCI Coal – Targeting low‐volatile, low to medium ash PCI coal along structural trend from Yarabee mine (Felix Resources) – High energy (7,200+ kcal/kg) coal mined historically at adjoining Exce
Slide 22: Belview Project - Bowen Basin (100% owned)
Belview Project ‐ Bowen Basin (100% owned) For personal use only • Targeting Hard Coking Coal – Potential for significant deposit of underground g p prime cokingg coal – Target seams mined in nearby Cook Colliery and Leichhardt Colliery – Regional seam thickness of: • 6m+ (Gemini Seam = Castor & Pol
Slide 23: Kerlong Project - Bowen Basin (100% owned)
Kerlong Project ‐ Bowen Basin (100% owned) For personal use only • Targeting Coking/PCI / Coal – Targeting high quality, underground cokingg and PCI coal – Target seams mined nearby including: • Burton (Peabody) • South Walker Creek (BHP Mitsubishi) • Carborough Downs (Vale) • Coppabella (Macarthur
Slide 24: Key Project Summary (all 100% owned)
Key Project Summary (all 100% owned) For personal use only P j t Project B i Basin Mi i M Mining Method th d T Target tCCoall Si Size Railil Li R Linkk to Coal Port Mackenzie Bowen Open p Pit Cokingg 99Mt JORC Inferred 9 River Resource2 plus 70 –80Mt Initial Exploration Target1. The Range Surat Open
Slide 25: Key milestones - next months
Key milestones – next 12 months For personal use only • Resource upgrade at Mackenzie River – Q1 2011 – Exploration target 70 – 80 Mt of coking coal • Release Conceptual Mining Study at Mackenzie River – Q2 2011 • Release Pre‐feasibility study at The Range – Q4 2011 • Significant Si ifi t scoutt dri
Slide 26: Equity Raising Summary
Equity Raising Summary For personal use only Placement • Unconditional placement of 13.9 million shares raising $12.5 million • Issue price of $0.90 per share • Placement price represents a 13.7% 13 7% discount to the 5 day VWAP • Lead Managers Bizzell Capital Partners, RBS Morgans Corporate and Wil
Slide 27: Sources & uses of funds
Sources & uses of funds For personal use only Sources of Funds Uses of Funds $m Uses of Funds $m Opening cash (at 30 June 2010) 3.0 Mackenzie River Project2. 6.2 Placement 12.5 The Range Project3. 9.1 4. Entitlement Offer1. 13.2 p Exploration – Other Projects j 5.5 Working capital 4.0 Capital raisin
Slide 28: Indicative Timetable
Indicative Timetable1 For personal use only Event Date Trading halt commences 29 Sept 2010 pre‐open Announcement of capital raising 1 Oct 2010 pre‐open E d t Ex‐date 6O Octt 2010 Rights trading opens 6 Oct 2010 Placement settlement 6 Oct 2010 Trading of placement shares 7 Oct 2010 Record date 12 Oct
Slide 29: Summary
Summary For personal use only • Pure play coal company focused on world class coal regions • Current JORC Inferred Resource of 318Mt of coking and export th thermal l coall with ith an additional dditi l 290 – 370Mt off exploration l ti target1. upside defined to date • Strong Board and management t
Slide 30: Appendix - ASX Listed Comparables - Coal Sector
Appendix – ASX Listed Comparables – Coal Sector For personal use only – Pathh for f value l Market Capitalisation (A$m) creation as Stanmore 4,500 4,000 Producers Explorer / Developers Coal moves through 3,500 3,000 project j t development d l t 2,500 towards production 2,000 1,500 is well establish