Whitehaven Coal Limited · ASX:WHC
Whitehaven Coal — Shareholder Meeting (November 2013)
27 slides from Whitehaven Coal's shareholder meeting presentation, Nov 4, 2013
Slide 1: ASX cover letter
For personal use only The Manager, Listings Australian Securities Exchange Company Announcements Office Dear Sir, Via ASX Online We attach copies of the Chairman’s address and Managing Director’s presentation which will be delivered at the Company’s Annual General Meeting being held at 10:00am today
Slide 2: Chairman's Address
For personal use only 4 NOVEMBER 2013 WHITEHAVEN COAL 2013 AGM – CHAIRMAN’S ADDRESS It has been a challenging year for Whitehaven. The environment for coal companies has been tough with coal prices for all coal types declining during the year while the Australian dollar remained strong despite falls
Slide 3: Chairman's Address: Sustainability
For personal use only 4 NOVEMBER 2013 We recently signed a contract for the construction of the rail line and loop that will service the mine. Construction is due to commence as soon as indigenous groups complete artifact salvage activities over some parts of the rail corridor, we fully expected thi
Slide 4: Maules Creek approvals and benefits
For personal use only 4 NOVEMBER 2013 The original Project Application for the Maules Creek mine was submitted in August 2010 and final approvals were granted three years later in July 2013. In that time, the project has been the subject of a comprehensive, independently administered, merits-tested
Slide 5: Outlook
For personal use only 4 NOVEMBER 2013 Outlook Although global coal markets have been tight and thermal coal prices have been flat, in recent months there has been a modest improvement in thermal coal prices and also for metallurgical coal market. We think this is encouraging. Nevertheless we must be
Slide 6: For further information, please contact
For personal use only 4 NOVEMBER 2013 FOR FURTHER INFORMATION, PLEASE CONTACT: Paul Flynn - Managing Director Michael van Maanen – Newgate Communications T: 02 8507 9700 M: 0412 500 351 E: mvanmaanen@newgatecomms.com.au
Slide 7: Whitehaven Coal Limited AGM 2013
For personal use only Whitehaven Coal Limited AGM 2013 Creating the premier ASX listed independent coal company Sydney, Australia 4 November 2013
Slide 8: 2013 AGM - Contents
2013 AGM - Contents For personal use only Assets Highlights Sustainability Narrabri Maules Creek Outlook Full Year 2013 Results 2
Slide 9: Gunnedah Basin assets
Gunnedah Basin assets For personal use only Maules Creek (75%) • Reserves to support ~ 30 years • Permitted & Planned : 13 Mtpa ROM • SSCC and high energy thermal Narrabri North (70%) • Reserves to support ~ 25 years • Permitted : 8 Mtpa ROM • Planned : 6 Mtpa ROM • PCI & low ash thermal coals Tarra
Slide 10: Financial highlights - FY2013
Financial highlights - FY2013 For personal use only Net loss after tax (NLAT) of $82.2 million Underlying NLAT (excluding Significant Items) of $60.7 million Underlying EBITDA of $18.6 million Average costs per tonne (excluding Royalties) of $75.48 achieved before the full impact if recent cost cutt
Slide 11: Operating highlights
Operating highlights For personal use only Improved safety and environmental performance at Whitehaven's operations New management team in place Cost reductions in place at Tarrawonga, Rocglen & Werris Creek following detailed mine plan reviews and Werris Creek ramping up to 2.5Mtpa Narrabri produce
Slide 12: Lowering costs – tale of two halves
Lowering costs – tale of two halves For personal use only H1 H2 FY 2013 FY2013 FY 2013 Substantial decreases in costs were achieved in the second half of the Coal Sales (equity basis, excl. year, due to cost reviews undertaken '000t 2,639 3,355(3) 5,994 at Tarrawonga and Rocglen and the purchased co
Slide 13: FY 2013 - safety performance
FY 2013 - safety performance For personal use only Increased focus on safety across the operations is starting to produce positive results The TRIFR and LTIFR for Whitehaven in FY 2013 fell below the NSW coal industry averages for FY 2012 of 19.54 and 5.25 respectively The performance at Narrabri is
Slide 14: Sustainability - Economic benefits
Sustainability - Economic benefits For personal use only WHITEHAVEN WORKFORCE STATISTICS - June 2013 Number % As the largest single employer in the region, Gunnedah Shire 252 41% Whitehaven’s policy is to employ people who Narrabri Shire 105 17% live close to the company’s mines. A total of Tamworth
Slide 15: Sustainability - Environmental performance
Sustainability - Environmental performance For personal use only Whitehaven’s environmental performance has been good year on year and is fundamental to our social licence to operate. (full details on page 38 & 39 of Annual Report). The continuing rehabilitation programme added a further 86.5 hectar
Slide 16: Narrabri achievements – FY2013
Narrabri achievements – FY2013 For personal use only Oct 12 Longwall commissioned CHPP mechanical completion and commenced trials of PCI Oct 12 into COREX markets Narrabri Half Year Production Sufficient mine development in advance facilitates the Feb 13 (000's t) reduction in development units from
Slide 17: Narrabri monthly production
Narrabri monthly production For personal use only Production in longwall panel 102 commenced 20 July 2013 following equipment relocation from panel 101 Narrabri Monthly Production Monthly production during the three months from July has (000's t) averaged 570kt 1000 750 Annualised production for the
Slide 18: Narrabri – industry leading development
Narrabri – industry leading development For personal use only Underground development already complete for the third panel Initial longwall panel completed in June 2013 Installation of the longwall into Panel 102 completed on time (6 weeks) and budget in July 2013 Mining in longwall panel 102 due to
Slide 19: Narrabri set up of panel
Narrabri set up of panel 2 For personal use only Full Year 2013 Results 13
Slide 20: By-pass circuit at Narrabri
By-pass circuit at Narrabri For personal use only
Slide 21: Maules Creek - Tier project
Maules Creek - Tier 1 project For personal use only All approvals received in July 2013. High quality resource which can be mined at relatively low cost. Situated 17km from the main railway line 380km from the Newcastle port Well understood and attractive geological setting Multiple shallow coal sea
Slide 22: Maules Creek – mine location
Maules Creek – mine location For personal use only The Maules Creek project is located about 17 kilometres northwest of the main rail line near the small town of Boggabri A new rail line will be constructed by Leighton Contractors linking both the Boggabri Mine and Maules Creek Mine to the main line
Slide 23: Maules Creek – low capital cost
Maules Creek – low capital cost For personal use only Total Coal Industry Capex (US$B's) 20 18 16 14 Capital spending for both metallurgical and 12 thermal coal expansions is falling from the 10 8 peak in 2012 6 4 2 0 2006A 2007A 2008A 2009A 2010A 2011A 2012A 2013E 2014E 2015E 2016E The cost of addi
Slide 24: Maules Creek - project schedule
Maules Creek - project schedule For personal use only Site Access Rail Construction CHPP Construction Box Cut First Coal to Trains 14 months to first coal railed Production to 6Mtpa ROM Production to 13Mtpa ROM CY Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2013 2014 2015 2016 Unchanged schedule Full
Slide 25: Outlook - production growth
Outlook - production growth For personal use only Saleable Production by Mine (000's t) 25000 Managed production will increase by over 25% to about 10.7 Mt in 20000 FY2014 from FY2013 15000 Following the development of the 10000 Maules Creek open cut mine production will double from the 5000 FY2014
Slide 26: Coal in world energy consumption
Coal in world energy consumption For personal use only Coal is forecast to maintain its share (28%) of total world energy World Energy Consumption by Fuel Type consumption in the period to 2030 (Quadrillion Btu) despite strong growth from a low base 800 from other sources (renewables) 700 600 500 In
Slide 27: Focus for FY 2014 and beyond
Focus for FY 2014 and beyond For personal use only Creating the premier ASX listed independent coal company Focussed on improving safety and environmental performance across all of the operations Narrabri to produce 850kt of PCI coal and Newcastle benchmark thermal coal in FY2014 and increase produc
Whitehaven Coal — Shareholder Meeting (November 2013) on 6ix