Jameson Resources Limited · ASX:JAL
Jameson Resources — Investor Presentation (March 2019)
36 slides from Jameson Resources's investor presentation, Mar 4, 2019
Slide 1: Investor Presentation March 2019
INVESTOR PRESENTATION MARCH 2019
Slide 2: Investment Highlights
Investment Highlights POSITIONED IN WORLD CLASS Jameson is a pure coking coal Company with its flagship project, Crown Mountain, COKING COAL FIELDS located within Canada’s prolific Elk Valley coal field, home to five operating mines. PROXIMAL TO Crown Mountain is located in a mature mining region, p
Slide 3: Company Snapshot
Company Snapshot Share Capital Art Palm – Chief Executive Officer and Chairman • Mining engineer with over 40 years of experience Recent Share Price A$0.17 CANADA • Engineering, Operations & Executive positions at major Shares Outstanding 264m US coal producers Market Capitalisation A$45m • Extensiv
Slide 4: Flagship Canadian Coking Coal Asset
Crown Mountain Flagship Canadian Coking Coal Asset • The Crown Mountain Coking Coal Project is located in southeast British Columbia • The high quality nature of the North and East Block coking coal is comparable to the benchmark Low Vol Premium Hard Coking Coal produced globally • British Columbia
Slide 5: Crown Mountain Geology
Jameson RESOURCES LIMITED Crown Mountain 2 Granted Coal Licences © RC Drilling - Jameson 2013 @ LDC Drilling - Jameson 2013 RC Driling - Jameson 2012 4 Trench [419275 © Coal Bearing Formation — Thrust Fault ++ Rail Road Trail Contour (100m intervals) Creek NORTH BLOCK 14mt Measured/Indicated SOUTH B
Slide 6: Resources and Reserves
Resources and Reserves RESOURCE AREA Measured Indicated Measured & Inferred Measured, • The PFS Update confirmed a (Mt) (Mt) Indicated (Mt) Indicated & total reserve base at Crown (Mt) Inferred (Mt) Mountain of 56 million tonnes. North Block 8.0 6.0 14.0 0 14.0 • Confidence in the geologic South Blo
Slide 7: Proposed Project Facilities
Proposed Project Facilities 7
Slide 8: PFS Update Highlights
Crown Mountain PFS Update Highlights Norwest Corporation (now Stantec) performed the PFS Update with key assistance from two widely respected and experienced international operating companies: • Kiewit, a US-based coal mine operator and contract miner, and • Sedgman, a large designer, builder, and o
Slide 9: Operating Costs
Crown Mountain Operating Costs Cost Category Cash Cost Per Clean Tonne Cash Cost Per Clean Tonne Initial Four Years US$ Life-Of-Mine US$ Waste Removal 21.51 26.47 Coal Mining 3.32 4.35 Plant 6.25 7.76 Clean Coal Handling 2.24 2.24 Reclamation 1.01 1.01 Minor equipment 0.65 0.77 Marketing/Corporate 1
Slide 10: Australian Hard Coking Coal Comparison
Crown Mountain Australian Hard Coking Coal Comparison • The cost curve above details Australian Hard Coking Coal operations (i.e. excluding SSCC and PCI operations) • Crown Mountain Total Cash Cost per Tonne (FOB) compares favourably to Australian Hard Coking Coal Operations • Mountain top mining wi
Slide 11: Start-up Capital
Crown Mountain Start-up Capital Pre-Production Capital US$M Major Mobile Equipment 99.1 Minor Mobile Equipment 9.7 Wash Plant 63.7 Infrastructure (rail load-out, roads, power, offices, shop etc) and permitting 93.2 Pre-Strip 15.6 SUBTOTAL – CAPITAL 281.3 Contingency @ 10% 28.1 TOTAL CAPITAL 309.5 Th
Slide 12: Capital Intensity
Crown Mountain Crown Mountain’s low capital intensity is attributable to: Capital Intensity – the topography of the project – low initial development costs due to favourable pre-stripping ratio – proximity to established infrastructure (power, rail and port) – the impact of exchange rate variations
Slide 13: Coal Sales Prices
Crown Mountain Coal Sales Prices PERIOD COAL TYPE NORTH SOUTH Life-of-mine Hard Coking $140 - $170 $126 - $153 PCI $92 - $112 $92 - $112 Selling prices used in the PFS Update are the average of each respective range above. 13
Slide 14: Strategic Partner
Crown Mountain Strategic Partner • ASX Listed coal miner Bathurst Resources Ltd (BRL) recently completed a C$4m investment in a wholly owned Jameson Resources subsidiary, NWP Coal Canada Ltd, with funds dedicated to the 2018 exploration program. • Once exploration results are reported, BRL has the o
Slide 15: 2018 Summer Exploration Program
2018 Summer Exploration Program • The exploration program was designed to collect all necessary field data to: • Further define coal quality including evaluation via a pilot coke oven. • Improve the level of confidence in project geology and coal quality. • Complete all outstanding environmental bas
Slide 16: 2018 Summer Exploration Results
2018 Summer Exploration Results • The process for evaluating Crown Mountain coal quality has the following components: • Receive all samples at a Calgary-based coal lab. • Drop/shatter and dry/wet attrition test the coal to help predict size consist for wash plant design. • Combine the samples on a
Slide 17: Selenium Mitigation Strategy
Crown Mountain Selenium Mitigation Strategy • Spoil pile design and the associated selenium mitigation strategy is progressing as part of design engineering for the BFS. Expected role of plant refuse layers: • Retain moisture • The phased work program is being undertaken by two • Supply carbon firms
Slide 18: Metallurgical Coal Overview
Crown Mountain Metallurgical Coal Overview METALLURGICAL COAL • Metallurgical coal is predominantly sold in three forms – Hard Coking Coal (HCC), Semi-Soft Coking Coal and Pulverised Coal Injection (PCI). • Met Coal is converted to coke, a critical input in the steel production process. • HCC is the
Slide 19: Coal Quality
Coal Quality (from 2013 program) Crown Mountain Coking Coal1 Canadian Canadian Central NEBC SEBC North and South Alberta2 HCC2 HCC2 East Blocks Block Total Moisture (% as received) 8-9 8-9 8-9 8-9 8-9 Volatile Matter (% dry) 20.5 18 23 - 24.5 21 - 27 17 - 27 Ash Content (% dry) 9 9 8.3 - 8.6 8.5 - 9
Slide 20: Coal Quality Comparison
Crown Mountain Coal Quality Comparison Source: Norwest To attain the “blend quality target” it is necessary to include high CSR “Prime HCCs” to offset lower quality coals. As depicted above, the Crown Mountain coal products have higher CSR relative to most other coals. 20
Slide 21: North & East Block Quality Factors Comparable to Peak Downs
Crown Mountain North & East Block Quality Factors Comparable to Peak Downs • North and East Block Crown Mountain Coal • CSR is an indicator of the physical strength of a coke Strength after Reaction (CSR) and Volatile Matter • CSR is an important parameter in pricing of coking coals: are comparable
Slide 22: Low Vol Premium HCC not regularly seen amongst ASX Junior Coal Developers
Crown Mountain Low Vol Premium HCC not regularly seen amongst ASX Junior Coal Developers • Crown Mountain coal quality as measured by CSR and • China’s changing environmental views and pollution Volatile Matter, key coking parameters, places it in a control is now a major factor in determining the u
Slide 23: Seaborne Metallurgical Coal Market
Crown Mountain Seaborne Metallurgical Coal Market METALLURGICAL COAL MARKET • The Global Seaborne Met Coal market is approximately 300mt • The Global Seaborne HCC market is approximately 171mt • Canada is the third largest Metallurgical coal exporter behind Australia and the United States • Canada c
Slide 24: Global Steel Markets
Crown Mountain Global Steel Markets • Steel consumption, and in turn metallurgical coal • China’s Belt and Road Policy will generate demand, exhibits a strong correlation with GDP long term demand for steel and seaborne growth metallurgical coal with large commitments to develop infrastructure throu
Slide 25: China…Supply Side Reform, 'Belt and Road'
Crown Mountain China…Supply Side Reform, ‘Belt and Road’ • Chinese Supply Side Reforms (‘SSR’) have included the permanent closure of numerous met coal mines and ~60mt of induction furnace capacity with the slack predominantly being picked up by existing blast furnace operations. • The Chinese SSR h
Slide 26: India…Make in Steel, Make in India
Crown Mountain India…Make in Steel, Make in India • In 2015 India overtook the United States to become the third largest steel producer in the world, but is the second lowest steel consumption per capita of the G20. • The Indian Government has set a target of increasing steel production capacity fro
Slide 27: Infrastructure – Rail and Port Capacity
Crown Mountain Infrastructure – Rail and Port Capacity No capacity constraints on rail networks and Canada - West Coast Port Capacity (Mt) ports currently undergoing expansion Current Capacity Planned Growth RAIL 60 • Common user railway linking South East BC to deep water ports in Vancouver 50 • Ra
Slide 28: PFS Update Results – Sensitivity
Crown Mountain PFS Update Results – SENSITIVITY NPV10 (US$M) Pre-Tax After Tax Sensitivity Range + - + - Base Case 440.6 267.2 Selling Price +/-10% 590.0 291.4 364.4 169.8 Selling Price +/-20% 739.4 141.7 461.6 70.6 Ridley Terminal +US$12/tonne 313.4 184.3 Operating Cost +/-10% 391.0 490.1 235.0 299
Slide 29: Procurement/Financing Considerations
Crown Mountain Procurement/Financing Considerations • The used equipment market provides an opportunity to achieve significant reductions in CAPEX: – Low-hour equipment is often available for a fraction of original cost – OPEX would increase versus new equipment – In the right market, this can be an
Slide 30: Actions Advancing Crown Mountain
Actions Advancing Crown Mountain • Prepare the Application for an EA Certificate: • Actively underway. • Several entities participating in drafting the Application. • Prove the selenium mitigation strategy: • Phase I work completed in December, 2017: favourable. • Phase II laboratory work complete p
Slide 31: Timeline
Crown Mountain - Timeline ACTIVITY 2017 2018 2019 2020 2021 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Environmental Baseline ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ EA Pre-application Consultations ✓ EA Pre-application VCD ✓ EA Pre-application AIR ✓ ✓ ✓ ✓ ✓ ✓ PFS Update ✓ ✓ EA / Permitting Preparation, Su
Slide 32: Permitting – British Columbia
Permitting – British Columbia • The table opposite displays 28 of the major mines that have been permitted in British Columbia with the majority either operating or under construction. Name Operator Type Status Bonanza Ledge Bakerville Gold Mines Ltd Metal Operating • Those highlighted have received
Slide 33: Investment Highlights
Investment Highlights POSITIONED IN WORLD CLASS Jameson is a pure coking coal Company with its flagship project, Crown Mountain, COKING COAL FIELDS located within Canada’s prolific Elk Valley coal field, home to five operating mines. PROXIMAL TO Crown Mountain is located in a mature mining region, p
Slide 34: Competent Persons Statements
Competent Persons Statements Competent Person Statements Mineral Reserves and Pre Feasibility Study Results The information in this presentation relating to the Mineral Reserve Estimate and Pre Feasibility Study Results of the Company’s Crown Mountain Coal Project are extracted from the ASX Release
Slide 35: Disclaimer
Disclaimer This document has been prepared as a summary only, and does not contain all information about the Jameson Resources Limited’s (the “Company”) assets and liabilities, financial position and performance, profits and losses, prospects and the rights and liabilities attaching to the Company’s
Slide 36: www.jamesonresources.com.au
AUSTRALIAN OFFICE (Corporate) CANADIAN OFFICE Suite 5, 62 Ord Street, Suite 800, 1199 West Hastings Street West Perth Western Australia 6005 Vancouver, BC V6E 3 T5 T: +61 (8) 9200 4473 T: +1 (604) 629-8605 www.jamesonresources.com.au E: admin@jamesonresources.com.au
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