Whitehaven Coal Limited · ASX:WHC
Whitehaven Coal — Shareholder Meeting (November 2009)
42 slides from Whitehaven Coal's shareholder meeting presentation, Nov 17, 2009
Slide 1: Cover letter to ASX
WHITEHAVEN COAL LIMITED ABN 68 124 425 396 Level 9 1 York Street Sydney, NSW 2000 PO Box R1113 Royal Exchange NSW 1225 Ph: 02 8507 9700 Fax: 02 8507 9701 Web: www.whitehaven.net.au For personal use only 17 November 2009 The Manager, Listings Australian Securities Exchange Company Announcements offic
Slide 2: Chairman's Address
WHITEHAVEN COAL LIMITED ABN 68 124 425 396 Level 9 1 York Street Sydney, NSW 2000 PO Box R1113 Royal Exchange NSW 1225 Ph: 02 8507 9700 Fax: 02 8507 9701 Web: www.whitehaven.net.au For personal use only 17 November 2009 Whitehaven Coal Limited AGM – 17 November, 2009 Chairman’s Address Ladies & Gent
Slide 3: Chairman's Address (continued)
In terms of the environment, our new projects have provided an opportunity for us to ensure that we have best practice environmental plans in place, including rigorous monitoring procedures and community consultation frameworks. We continue to welcome feedback from all stakeholder groups in the area
Slide 4: Delivering Growth - Annual General Meeting
For personal use only Whitehaven Coal Limited Delivering Growth Annual General Meeting November 17th 2009
Slide 5: Disclaimer
For personal use only Disclaimer Statements contained in this material, particularly those regarding the possible or assumed future performance, costs, dividends, returns, production levels or rates, prices, reserves, potential growth of Whitehaven Coal Limited, industry growth or other trend projec
Slide 6: Agenda
For personal use only • Outlook for coal – the big picture • Whitehaven Coal – the focussed picture • Status of WHC growth plans • WHC outlook 2009 AGM - 17 November 2
Slide 7: Global population is growing rapidly
Global population is growing rapidly For personal use only Global Population - millions ► Substantial population 9,000 growth has occurred 8,000 over the last 35 years and is expected to continue 7,000 in the future 6,000 ► People need food, shelter 5,000 and warmth 4,000 3,000 ► Growth in demand fo
Slide 8: Energy and raw materials consumption per person is also growing
Energy and raw materials consumption per person is also growing, as living standards increase For personal use only Global Energy Consumption per Person per Year – tonnes oil equivalent (toe) ► Technology allows people to move from using basic energy sources in their 2.00 homes (dung, wood, peat, 1.
Slide 9: Growing energy demand is being supplied primarily from carbon fuels
Growing energy demand is being supplied primarily from carbon fuels For personal use only Global Primary Energy Consumption Mtoe ► With economic growth, people stop burning wood, oil and coal in their 18,000 homes, in favour of using 16,000 Other electricity and gas which are cleaner and more 14,000
Slide 10: Coal is favoured for producing electricity
Coal is favoured for producing electricity For personal use only Global Electricity Production by Fuel Type - TWh ► Nuclear power is not acceptable or available to many people & we are 18,000 reliant on carbon fuels to generate electricity 16,000 Other 14,000 ► Coal is favoured for Hydro generating
Slide 11: Electricity consumption varies widely
Electricity consumption varies widely The developing world is far behind For personal use only Electricity Consumption per Person 2007 ► The heaviest energy users KWh use 8 times per person more 20,000 than China and Latin America 18,000 and 20 times per person more 16,000 than Asia, India & Africa
Slide 12: Coal use has increased rapidly over the last years
Coal use has increased rapidly over the last 35 years – for making electricity and steel For personal use only Global Hard Coal Consumption ► World population growth & Million tonnes rapid economic development of the worlds largest nations 9,000 will drive increasing demand for electricity and steel
Slide 13: Australia is the largest coal exporter
Australia is the largest coal exporter and has the competitive strengths to remain #1 For personal use only Coal Exporters 2008 - Million tonnes ► Australia has the worlds best reserves of prime coking coal 300 ► We have extensive reserves of lower grade metallurgical coals (semi- 250 coking and PCI
Slide 14: What about coal & climate change?
What about coal & climate change? Some questions to consider For personal use only Won’t environmental pressure substantially reduce coal usage? ► Is global population likely to continue to increase? ► Will under privileged people want to improve their living standards? ► Will they forgo improving t
Slide 15: Agenda
For personal use only • Outlook for coal – the big picture • Whitehaven Coal – the focussed picture • Status of WHC growth plans • WHC outlook 2009 AGM - 17 November 11
Slide 16: Leading coal producer and developer in the Gunnedah Basin
Whitehaven is the leading coal producer and developer in the Gunnedah Basin For personal use only ► The Gunnedah Basin contains large reserves of high quality export coal ► Whitehaven recognised the value of Gunnedah Basin coal early and has been building its large resource base for 10 years ► Narra
Slide 17: Solid, low-risk open cut business with up to 5.5 Mtpa capacity
Whitehaven has a solid, low-risk, existing OC business with up to 5.5 Mtpa saleable capacity For personal use only ► Gunnedah Operations – 3 OC Mines ► Tarrawonga Mine (WHC 70%) Reserves to support 15 – 20 year LOM Permitted to 2.0 Mtpa ROM PCI & high quality thermal coals Saleable coal yiel
Slide 18: Gunnedah operations - CHPP and rail loader
Gunnedah operations – CHPP and rail loader For personal use only ► Gunnedah Operations CHPP (WHC 100%) Permitted to handle and rail 4.0 Mtpa Handles all coal from Tarrawonga, Rocglen and Sunnyside Approximately 50% of ROM coal washed Washed coal yield >80% Total saleable coal yield >90% 20
Slide 19: Werris Creek open cut mine
Werris Creek open cut mine For personal use only ►Werris Creek OC Mine (WHC 100%) Reserves to support 15 – 20 year LOM Permitted to 2.0 Mtpa PCI and thermal coals Saleable yield 100% Own crushing and rail load-out 2009 AGM - 17 November 15
Slide 20: Narrabri Underground Mine (WHC 70%)
Narrabri Underground Mine (WHC 70%) For personal use only ► Very large resource of low ash, high energy, low sulphur coal for export ► Saleable coal yield ~ 95% of 9-10% ash coal ► Continuous miner operations will begin in early 2010 ► Longwall (Stage 2) to be installed in early 2011 ► Production of
Slide 21: Agenda
For personal use only • Outlook for coal – the big picture • Whitehaven Coal – the focussed picture • Status of WHC growth plans • WHC outlook 2009 AGM - 17 November 17
Slide 22: Growth so far - production, sales and profitability
Growth so far – production, sales and profitability For personal use only Production and Sales - 000 tonnes Revenue and Profit - A$ millions 4,000 500 3,500 400 3,000 2,500 ROM 300 Revenue 2,000 Saleable EBITDA 200 1,500 Sales NPAT 1,000 100 500 0 - FY 07 FY 08 FY 09 FY 07 FY 08 FY 09 -100 FY 2009 F
Slide 23: Growth so far - financial position
Growth so far – financial position For personal use only Net Assets - A$ millions Net Assets per Share - A$ 800 1.80 700 1.60 600 1.40 500 1.20 400 1.00 0.80 300 0.60 200 0.40 100 0.20 0 0.00 FY 07 FY 08 FY 09 FY 07 FY 08 FY 09 Strong financial position ► Substantial cash on hand (~$240m at end Octo
Slide 24: 2009 business development highlights
2009 business development highlights For personal use only ► JORC Coal Resources and Marketable Coal Reserves increased substantially during the year (refer WHC website for August 2009 release) ► Open cut expansion implemented successfully (Rocglen & Sunnyside) ► Narrabri Stage 1 construction progre
Slide 25: Current growth priorities
Current growth priorities For personal use only Open cut mine expansions ► Expand saleable capacity to 5.5 Mtpa saleable (100% basis) by August 2010 ► Additional excavator and truck fleet for Tarrawonga, taking capacity to 2 Mtpa ROM ► Increase Werris Creek production to 1.8 Mtpa ► Rocglen continuin
Slide 26: Narrabri status
Narrabri status For personal use only ► Surface facilities expected to be complete by year end, except for clean coal reclaim tunnel which will be commissioned in February ► Drift drivage is now progressing through very soft material which has slowed development rates and is likely to delay first co
Slide 27: Narrabri status
Narrabri status For personal use only 2009 AGM - 17 November 23
Slide 28: Narrabri Stage 2 base plan + options
Narrabri Stage 2 base plan + options For personal use only ► The Narrabri Stage 2 base plan is for longwall mining in the bottom 4.2 metre section of the ~9 metre Hoskinsons seam ► This section of the seam is cleanest, requiring a simple jig processing plant to produce >95% yield of 9-10% ash produc
Slide 29: Narrabri TCC potential benefits
Narrabri TCC potential benefits ► For personal use only Potential to increase resource recovery by ~300 Mt ► Potential to increase production from 6 Mtpa to ~9.5 Mtpa with existing LW + TCC retrofit ► Potential to substantially reduce development CM task ► Reduced gas and sponcom management and cost
Slide 30: Narrabri PCI potential
Narrabri PCI potential For personal use only ► Recent coal quality and washability analyses of large diameter bore- cores from Narrabri indicate potential to produce substantial quantities of PCI coal ► By adding a dense-medium cyclone (DMC) to the planned Stage 2 jig plant, indications are that ROM
Slide 31: Agenda
For personal use only • Outlook for coal – the big picture • Whitehaven Coal – the focussed picture • Status of WHC growth plans • WHC outlook 2009 AGM - 17 November 27
Slide 32: Existing low-risk open cut base with growth from Narrabri
Existing low-risk open cut production base with substantial growth from Narrabri project For personal use only ► Four OC mines producing 4 Mtpa, ramping up to ~5.5 Mtpa in 2010 ► WHC has invested in rail track capacity upgrades to support growth plans ► Narrabri Stage 1 nearing first production, Sta
Slide 33: Rail infrastructure to meet Whitehaven growth
Rail infrastructure to meet Whitehaven growth For personal use only Whitehaven (60%) and Idemitsu (40%) have sponsored RIC (north of Werris Creek) and ARTC investment to increase rail track capacity Current track capacity is 6-7 train paths per day to Narrabri 5,400 tonne trains give capacity of 10-
Slide 34: Port infrastructure to meet Whitehaven growth
Port infrastructure to meet Whitehaven growth For personal use only ► Existing PWCS Terminal Ongoing capacity constraints at PWCS PWCS has expansion plans to 145 Mtpa ► Newcastle Coal Infrastructure Group (“NCIG”) Whitehaven owns 11% of NCIG....Stage 1 due to be commissioned in Q1 2010, in lin
Slide 35: NCIG status - October 2009
NCIG status – October 2009 For personal use only 2009 AGM - 17 November 31
Slide 36: NCIG status - October 2009
NCIG status – October 2009 For personal use only 2009 AGM - 17 November 32
Slide 37: NCIG status - October 2009
NCIG status – October 2009 For personal use only 2009 AGM - 17 November 33
Slide 38: NCIG status - October 2009
NCIG status – October 2009 For personal use only 2009 AGM - 17 November 34
Slide 39: Managing production & infrastructure risks
Managing production & infrastructure risks For personal use only ► Advantages of high quality coal & flexibility in production from existing OC mines ► Our forward coal sales contracts support WHC’s growth profile ► Our matrix of coal sales contracts & commitments minimises production & infrastructu
Slide 40: Fixed price contract status
Fixed price contract status For personal use only ► “Legacy” thermal coal contracts of 6.85 Mt remain over next 3 years, average price US$69.25/t ► Otherwise, US$ coal prices are currently only fixed for the short term ► Approximately 96% of FY 2010 fixed price sales are covered by FX contracts at ~
Slide 41: Near and medium term objectives
Near and medium term objectives For personal use only ► Grow earnings and dividends per share, maintain financial stability and create shareholder value ► Continue to manage existing OC operations efficiently & deliver expansion to 5.5 Mtpa ► Deliver Narrabri Stage 1 & Stage 2 on time and budget ► A
Slide 42: Delivering Growth - Annual General Meeting
For personal use only Whitehaven Coal Limited Delivering Growth Annual General Meeting November 17th 2009
Whitehaven Coal — Shareholder Meeting (November 2009) on 6ix