Cokal Limited · ASX:CKA
Cokal — Investor Presentation (March 2014)
34 slides from Cokal's investor presentation, Mar 4, 2014
Slide 1: Investor Presentation March 2014
For personal use only Investor Presentation March 2014 1 Investor Presentation
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by the management of Cokal Limited (the Company) in connection with meetings with institutional investors, for the benefit of brokers and analysts and not as specific advice to any particular party or person. The information is based on publicly availab
Slide 3: Outline
Outline For personal use only BBM Project Corporate Description – Overview Priority Development Other Company Community Activity Development 3 Investor Presentation
Slide 4: Our Focus
Our Focus For personal use only Building a Global Metallurgical Coal Business Positive and Agile Decision Making Respect for all Stakeholders Ethical Decision Making Strong Indonesian Team Technical Skills for Innovative Solutions Results Orientated 4 Investor Presentation
Slide 5: Strong Board Coal Pedigree
Strong Board Coal Pedigree For personal use only Peter Lynch - Chairman and CEO, Mining Engineer, 25 years experience in mining; MIM, Shell Coal, MacArthur Coal, Open Cut & Underground, TSX and ASX:WCI. Pat Hanna - Executive Director, Geologist, over 30 years experience all coal; Globally consulting
Slide 6: Diverse & Experienced Management
Diverse & Experienced Management Yoga Suryanegara - Resource Manager Indonesia, Geologist, international experience, responsible for For personal use only overseeing multi-million dollar exploration programs in Queensland and Kalimantan; more than 10 years experience in Berau Coal (fifth largest ope
Slide 7: Executive Summary
Executive Summary Cokal Limited (CKA) Cokal Capital For personal use only • Listed on the ASX in December 2010 Structure • Developing Metallurgical Coal Projects in Central ASX Code CKA Kalimantan Shares on Issue 471.1M • Objective: Metallurgical coal producer by Q1 2015 Options on Issue 22.1M Debt
Slide 8: Project Locations - Indonesia
Project Locations - Indonesia For personal use only 8 Investor Presentation
Slide 9: BBM, TBAR and BBP Tenements
BBM, TBAR and BBP Tenements INDONESIA For personal use only 9 Investor Presentation
Slide 10: BBM – Priority Project
BBM – Priority Project Advanced development plan: For personal use only In Feasibility phase Near term production High quality coking coal with Low cash significant upside operating cost potential Investment Highlights Experienced Management team Flexible development with a strong record of plans –
Slide 11: BBM – Project Timeline
BBM – Project Timeline For personal use only 11 Investor Presentation
Slide 12: Study Outcomes
Study Outcomes DFS: Real NPV of $US366M (100% Project) For personal use only • Stand-alone DFS at BBM ASSET DESCRIPTION completed by Resindo Project BBM, Central Kalimantan, Indonesia • Capable of rapid expansion 261Mt JORC Resources 10.5Mt Measured, 13.5Mt • Confirms low initial capital Indicated +
Slide 13: Definitive Feasibility Study Highlights
Definitive Feasibility Study Highlights • Confirmed that BBM and associated transport system can be developed as For personal use only a low cost operation with moderate to medium range operating cost: – BBM Coal will command a high value as a blending feed in the Coking Coal Market – No risks were
Slide 14: Mine Costs
Mine Costs US$ Operating Cost US$ For personal use only Development Capital (Million) (excluding 7% Royalty) /t Avg - Initial Start up 50 Year 1 65.00 - Enhancement 25 - Average first 5 years 82.00 TOTAL *75 Life of Mine *97.00 *Note: Based on contract mining and barging Highly Competitive • Capital
Slide 15: BBM Approvals
BBM Approvals Current Approvals For personal use only IUP (Exploration), on ‘Clean & Clear’ List PT BBM approved Foreign Owned company (PMA status) Cokal Shareholding of PT BBM approved by BKPM (Central Government Foreign Investment Co-ordination Board) Exploration Forestry Permit (IPPKH Izi
Slide 16: On the Doorstep of the Biggest MET Coal Markets
On the Doorstep of the Biggest MET Coal Markets For personal use only Fastest and lowest cost shipping to key customers Dalandzangad Mongolia Coos Bay United S. Korea Japan Seoul China Seoul Tokyo States Shanghai India Guangzhou Mumbai Mumbai Mumbai Mumbai Vietnam China
Slide 17: Developing a new Coking Coal Province
Developing a new Coking Coal Province For personal use only Indonesian Coal Reserves 17 Investor Presentation
Slide 18: BBM Resources – 261Mt
BBM Resources – 261Mt1 Sufficient Resource to underwrite 2Mtpa initial open cut production plan For personal use only Resources by Seam and Category Seam Seam Thickness Measured Indicated Inferred Total Resources Name (m) Resource (Mt) Resources (Mt) Resources (Mt) (Mt) J 1.34 10.5 13.5 31 55 D 1.37
Slide 19: Premium Quality Coking and PCI Coal
BBM Premium Quality Coking and PCI Coal For personal use only Product Quality – BCD Seams Premium Coking Coal Ash CSN Volatile Sulphur Phosphorus Calorific Fixed (% adb) Matter (adb) (% adb) Value Carbon (% adb) (adb) (adb) Range ≤8.0 7.5-8.5 13.9-14.1 0.31-0.34 0.000-0.001 7960-8065 77.0-78.1 Avera
Slide 20: Premium Quality Coking and PCI Coal
BBM Premium Quality Coking and PCI Coal For personal use only BBM PCI Product Coal Ash CSN Volatile Sulphur Phosphorus Calorific Fixed (% adb) Matter (adb) (% adb) Value Carbon (% adb) (adb) (adb) Range ≤8.0 0.0-3.0 5.9-13.4 0.37-0.48 0.001-0.003 7720-8080 78.6-84.3 Average 8.0 1.0 10.2 0.40 0.002 7
Slide 21: BBM – Potential to Increase Resource Size
BBM – Potential to Increase Resource Size For personal use only This potential is in addition to the current 261Mt JORC Measured, Indicated and Inferred Resources Comprised of 13 Seams in the Eastern Block of BBM (40% of the tenement area) 21 Investor Presentation
Slide 22: Planned Mining Operations
Planned Mining Operations For personal use only Truck / Excavator Operation • Contractor operated • Pit to Jetty Seam Outcrop on the Surface • Significant length of outcrop • J Seam ~ 1.4m thick • In-pit sizing / screening 22 Investor Presentation
Slide 23: Infrastructure and Transport
Infrastructure and Transport For personal use only Coal to be transported in three phases, accounting for ~ 774km from the mine site to the Java Sea • 55km haul road from mine to the Barito River • 500km down the Barito River to the Intermediate Stockpile Port at Kelanis • Ocean-going barges to tran
Slide 24: Truck Haulage
Truck Haulage For personal use only • 55km road route, 2 studies done, initial quotation received • Detail work underway • All weather surface • Ease of loading, unloading, reliability • Excellent balance of operating and capital costs 24 Investor Presentation
Slide 25: Barge Loading
Barge Loading For personal use only • Plan for direct load from trucks to barges • Spare barges enable efficient system • Stockpiling capability • Front End Loader hoppers for re- loading from stockpile • Low capital, low operating cost • Minimises coal degradation 25 Investor Presentation
Slide 26: Shallow Draft Barges
Shallow Draft Barges • River designed barge system for safe, reliable For personal use only and economic transport • Indonesian system currently uses towed ocean going barges • Mississippi style allows flexibility, for manoeuvring and cargo sizes • JV formed with MDM Meratus highly respected Indones
Slide 27: Shallow Draft Barges
Shallow Draft Barges For personal use only • Stage 1 – 6,000t convoys (4 x 1,500t barges) – 500km • Shallow draft: down to 2.3m water level • 3 Studies completed • Full bathymetric survey of river • Daily river height data for over 10 years used • 6 tugs and barge sets for Tug and 4 Barge Convoy 2Mt
Slide 28: Deep Water Barge to Shiploader
Deep Water Barge to Shiploader For personal use only Deep Water Barges to Floating Crane in Java Sea • 12,000t now common (matches 2 x 6,000t upper river shallow barge convoys) • Matches common ship hatch size Operators • Many Barge operators at this point • Many Floating crane operators offshore •
Slide 29: Other Tenements
Other Tenements Central Kalimantan, INDONESIA For personal use only TBAR – Agreement signed 75/25 with local owners. 19,000ha adjoins BBM, which doubles the size of the exploration area available. Potential for BBM seams extend into TBAR Tenement is on the Clean and Clear List issued by the Dire
Slide 30: BBM Project Conclusions
BBM Project Conclusions For personal use only Low capital High quality Low operating investment coking product cost required Good margin Geographically Early and quick well production payback positioned Experienced Potential for Executive expansion team 30 Investor Presentation
Slide 31: Developing Infrastructure
Developing Infrastructure For personal use only Two river ports and two coal -fired power stations to facilitate metallurgical coal production Working together for mutual benefit with the Murung Raya Regency Dr Willy Yoseph (Head of Regency), Jim Middleton and Domenic Martino (Cokal Director) CSR pr
Slide 32: Corporate Social Responsibility
Corporate Social Responsibility Local Schools For personal use only • Assisted with materials and labour to make repairs to the Tumbang Tuan Village Jnr Elementary School • Provided an emergency generator to ensure reliable electricity for the local school • Sponsored four teachers for the Tumbang T
Slide 33: Project Location West Kalimantan
Project Location West Kalimantan, INDONESIA For personal use only Cokal 75.2% interest in PT Silangkop Nusa Raya (SNR) Three IUPs in Singtang Regency, West Kalimantan covers an area of 13,000ha Outcrop samples show high volatile, low ash, moderate sulphur and low phosphorus coking coal 33 Investor P
Slide 34: Summary
Summary For personal use only Executive Team with strong track record Plans for High Margin becoming a Metallurgical Coal Significant confirmed Metallurgical Coal Producer Assets with Good Plans to develop Potential the portfolio BBM on track for production in 2015, with significant upside potential