Australian Pacific Coal Limited · ASX:AQC
Australian Pacific Coal — Coal Investment Summit March 2012
27 slides from Australian Pacific Coal's conference presentation, Mar 6, 2012
Slide 1: Coal Investment Summit March 2012
For personal use only Coal Investment Summit March 2012 “Delivering Value From Queensland Coal”
Slide 2: Disclaimer
Disclaimer For personal use only This presentation has been prepared by Australian Pacific Coal (ACN 089 206 986) (AQC). The presentation and information contained in it is being provided to shareholders and investors for information purposes only. Shareholders and investors should undertake their o
Slide 3: Company Overview
Company Overview For personal use only An Australian public company focusing on the exploration and development of metallurgical and thermal coal Interests in 32 coal tenements strategically located in Queensland’s Bowen and Surat Basins. Joint Venture agreements already in place with major miner Ri
Slide 4: Experienced Board & Management
Experienced Board & Management For personal use only John Bovard Non-executive Chairman Over 40 years’ experience in mining, prominent positions with Australian and international companies (Western Mining, OK Tedi and Placer Pac). Advisory roles in mining and construction. Peter Ziegler Non-executiv
Slide 5: Why Invest in AQC?
Why Invest in AQC? For personal use only Major JV partners (Rio Tinto and Cuesta Coal) validates asset quality & potential Proven coal province – Bowen Basin, the most developed coal hub for export coal in Queensland Portfolio of highly attractive projects 100% working interest in highly pro
Slide 6: Major JV Partners Validates Potential
Major JV Partners Validates Potential For personal use only Significant joint venture partners – mining major Rio Tinto and Cuesta Coal JV agreements validates quality and potential of AQC assets in Queensland’s coal hub JV partners operating and managing the respective exploration programs in
Slide 7: Proven Coal Province
Proven Coal Province For personal use only Located in the coal hub of Queensland Bowen Basin – supplies some of the world’s highest quality metallurgical, PCI and thermal coal for export and domestic markets AQC’s tenements surrounded by producing coal mines owned and operated by major mining co
Slide 8: Mt Hillalong, Blackwater and East Wandoan Projects
Portfolio of Attractive Projects For personal use only Mt Hillalong Project Rio Tinto JV 48km² Blackwater Project 100% working interest 107 Mt Inferred Resource* Near-term exploration focus 103km² East Wandoan Project Cuesta Coal JV 23.9Mt Inferred Resource* 1,274km² * Statement of resource quantity
Slide 9: Mt Hillalong
Portfolio of Attractive Projects For personal use only Mt Hillalong Joint venture with Rio Tinto validates acreage quality and highlights potential 4 prospective EPCs covering over 100km2 Rio Tinto Exploration to solely fund and manage a minimum expenditure of $700,000 exploration program* in
Slide 10: Blackwater
Portfolio of Attractive Projects For personal use only Blackwater 100% working interest 107 Mt Inferred Resource* at Cooroorah (EPC 1827) Near-term exploration focus Cooroorah (EPC 1827) Churchyard Creek (EPC 1996 – North and South) Dingo (EPC 1859) Mount Stuart (EPC 1997) Drilling t
Slide 11: Blackwater - Cooroorah (EPC 1827)
Portfolio of Attractive Projects For personal use only Blackwater Cooroorah (EPC 1827) 107 Mt Inferred Resource* Located adjacent to haul road, rail network and developed infrastructure, linking it to Gladstone and major coal ports Infill drilling program in Q2 and Q3 2012 – targeting move t
Slide 12: Blackwater - Dingo (EPC 1859)
Portfolio of Attractive Projects For personal use only Blackwater Dingo (EPC 1859) Located on rail network Infill drilling program proposed in Q3 2012 to elevate to a Resource Targeting Rangal Coal Measures 30km east of operating Blackwater and Curragh coal mines Surrounded by Bandanna E
Slide 13: Dingo (EPC 1859) Proximity to majors and railway
Portfolio of Attractive Projects For personal use only Blackwater New Hope Exploration Dingo (EPC 1859) Proximity to majors and railway EPC 759 Bandanna Energy EPC 881 Estimated Inferred Resource 91.1 Mt Dingo (EPC 1859) 22km² Aquila Resources Argos (Qld) EPC 960 13
Slide 14: Blackwater - Churchyard Creek (EPC 1996)
Portfolio of Attractive Projects For personal use only Blackwater Churchyard Creek (EPC 1996) Neighbours include several major mining players including Aquila & Acacia Coal First pass drilling proposed program for Q2 2012 to core shallow Fairhill coal seams and chip drill deeper German Creek C
Slide 15: Churchyard Creek (EPC 1996) - well documented geology
Portfolio of Attractive Projects For personal use only Blackwater Churchyard Creek (EPC 1996) – well documented geology 0m 50m 100m 150m 1.7km 4.7km 7km 15
Slide 16: Neighbouring Resources
Portfolio of Attractive Projects Neighbouring Resources For personal use only Xstrata EPC 713 & 841 CAML Resources EPC 1997 EPC 1139 Churchyard Creek Mt Stuart EPC 1996 EPC 1996 (31km²) EPC 1997 (13km²) Aquila Aquila Resources Resources Stanmore Coal Argos EPC 958(Qld) & 966 EPC 2081 108Mt Measured
Slide 17: East Wandoan
Portfolio of Attractive Projects For personal use only East Wandoan Joint venture with Blackwood Resources (acquired by Cuesta Coal) 17
Slide 18: East Wandoan
Portfolio of Attractive Projects For personal use only East Wandoan 4 quality EPCs – covering acreage in the Clarence-Morton, Surat and Galilee Basins, prospective for shallow thermal coal AQC has 10% free carry to feasibility study stage Cuesta Coal has announced a 23.9 Mt maiden Inferred The
Slide 19: 100% Working Interest in Blackwater
100% Working Interest in Blackwater For personal use only Highly prospective Blackwater project – strong landholding centrally located amongst operating mines and numerous mining majors Project focus – targeting high quality metallurgical coal High working interest provides funding optionality
Slide 20: Existing Infrastructure Network
Existing Infrastructure Network For personal use only Blackwater EPCs (100% AQC) have Connections to export and domestic links to established rail network coal markets Excess capacity exists in network Ability to sell coal to nearby to commercialise coal projects producers, utilising wash pl
Slide 21: Near-term Drilling Activity
Near-term Drilling Activity For personal use only 2012 Drilling schedule Q1 Q2 Q3 Q4 Churchyard Creek (EPC 1996) Cooroorah (EPC 1827) Dingo (EPC 1859) At AQC’s 100% owned project at Blackwater, the above scheduled drilling campaigns are fully funded through the planned exploration program 21
Slide 22: Multiple Funding Options
Multiple Funding Options For personal use only Various sources of funding available to AQC to fund exploration program through to end of 2012 and beyond High working interest in Blackwater provides funding optionality Joint venture/farm in opportunities Interest from existing joint venture p
Slide 23: Significantly Undervalued
Significantly Undervalued For personal use only Undervalued relative to peers (junior coal explorers) 6.00 5.49 5.00 EV/Resource ($/t) 4.00 3.64 3.22 3.01 3.04 3.00 2.20 1.91 2.00 1.49 1.56 1.00 1.09 1.00 0.67 0.51 0.60 0.61 0.35 0.24 0.25 0.13 0.14 0.17 0.19 0.23 0.02 0.00 Source: IRESS and Compa
Slide 24: Significantly Undervalued
Significantly Undervalued For personal use only Recent transactions in the region further highlight the value of AQC at current prices: Transaction Date Implied Value Peabody Energy acquired Macarthur Coal Sept 2011 $2.74/t New Hope Corp. acquired Northern Energy Sept 2011 $0.46/t Yancoal acquired
Slide 25: Why Invest in AQC?
Why Invest in AQC? For personal use only Major JV partners (Rio Tinto and Cuesta Coal) validates asset quality & potential Proven coal province – Bowen Basin, the coal hub of Queensland Portfolio of highly attractive projects 100% working interest in highly prospective Blackwater project E
Slide 26: Competent Persons Statement
Competent Persons Statement For personal use only This presentation has been prepared in accordance with the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves "The JORC Code" (2004) and reviewed by Mr S.W (Bill) Hayes of S.W Hayes and Associates who consents
Slide 27: For personal use only
For personal use only ASX code: AQC Head Office: Level 7, 10 Felix Street Board of Directors: Brisbane Qld 4000 John Bovard Non-executive Chairman Paul Byrne Executive Director and CEO Phone: +61 7 3221 0679 Peter Ziegler Non-executive Deputy Chairman Fax: +61 7 3229 9323 Paul Ingram Non-executive D
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