James River Coal — Q1 2013 Earnings Presentation
18 slides from James River Coal's earnings presentation, May 1, 2013
Slide 1: James River Coal Company and Subsidiaries, May 2013
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Slide 2: Forward Looking Statements
Forward Looking Statements Certain statements in this investor presentation and other written or oral statements made by or on behalf of us are "forward - looking statements" within the meaning of the federal securities laws. Statements regarding future events and developments an d our future perfor
Slide 3: Agenda
3 Agenda ● Opening Comments ● Operations Review ● Market Review ● Miscellaneous 3
Slide 4: Opening Comments Summary
Opening Comments Summary ● Substantially Completed a Major Restructuring of All Mine Operations and Support Services ● Cash Mining Costs Per Ton Fall in CAPP and Midwest Operations ● Capital Expenditures of $7.7 Million ● Domestic Thermal Market Improves With Higher Natural Gas Prices; Met Coal Mark
Slide 5: Agenda
5 Agenda ● Opening Comments ● Operations Review ● Market Review ● Miscellaneous 5
Slide 6: Operations Review: Safety
Operations Review Safety 8.40 1.54 5.00 2.35 - 1.00 2.00 3.00 4.00 5.00 6.00 7.00 8.00 9.00 2004 2005 2006 2007 2008 2009 2010 2011 2012 Q1 2013 JRCC National Average Non - Fatal Days Lost 6
Slide 7: Operations Review: Central Appalachia
Operations Review Central Appalachia ● Operations Performed Well From a Cost and Production Aspect ● Completed Review of all SG&A and Non - Production Related Costs – Changes Are Being Implemented in Q - 1 and Q - 2 ● Completed Underground Development Projects at Mine 15 ● Continued Development at M
Slide 8: Operations Review: Midwest
Operations Review Midwest ● Continued to Match Production to the Market ● Cash Costs Fell From Prior Quarter and Year - Over - Year ● Completed Mining at Freelandville Underground – Moved Employees and Equipment to New Unit at Freelandville West ● Worked Through Tough Geology at Hurricane East 8
Slide 9: Agenda
9 Agenda ● Opening Comments ● Operations Review ● Market Review ● Miscellaneous 9
Slide 10: Market Review Summary
Market Review Summary ● The U.S. Thermal Market is Improving…… Slowly – Production Cuts From the Coal Industry – Higher Coal Burn By Utilities Due to Coal and Gas Economics ● The Met and Thermal Markets in Europe Have Weakened Again – The Cyprus Effect?? ● The U.S. Natural Gas Market has Improved……N
Slide 11: Market Review: Metallurgical Coal
Market Review Metallurgical Coal ● Too Much Supply is Still Being Sold Below Cost ● Volumes Are Holding Up ● Low - Cost Suppliers Are Too Quick to Increase Supply ● New Supply is Coming From Multiple Sources Supply Demand ● Steel Production in Europe and Brazil is OK, Not Good ● Domestic Demand is S
Slide 12: Market Review: Thermal Coal
Market Review Thermal Coal ● Thermal Market Still Weak but Showing Signs of Life – Several Recent RFP’s ● Anecdotally, Coal Burn is Picking Up ● Inventories are Still High, But Coming Down ● The Railroads are Being Both Creative and Flexible 12
Slide 13: Market Review: Natural Gas Storage
Market Review Natural Gas Storage The Surplus is Gone! - 10% 0% 10% 20% 30% 40% 50% 60% 70% Jan 2011 April 2013 Source: Energy Information Administration Average Price of $4.25/mm BTU Percent Above the 5 Year Average (5.1%) 13
Slide 14: Market Review: Natural Gas Production Growth
Market Review Natural Gas Production Growth The Untold Story - 2% 0% 2% 4% 6% 8% 10% 12% 14% Jan 2011 Jan 2013 Source: Energy Information Administration YOY Total Gas Production February 2012 A Well - Defined Trend 14
Slide 15: Agenda
15 Agenda ● Opening Comments ● Operations Review ● Market Review ● Miscellaneous 15
Slide 16: Miscellaneous: Balance Sheet and Liquidity
Miscellaneous Balance Sheet and Liquidity A Yes Vote By Shareholders For Proposal 2 in the Current Proxy is Very Important For A Successful Conclusion ● We Have Followed a Very Deliberative Process with Input From a Large Number of Advisors, Shareholders and Debtholders ● Our Goals are to Reduce Bal
Slide 17: Upcoming Investor Conferences and Meetings
Miscellaneous Upcoming Investor Conferences and Meetings May 20, 2013 Brean Capital Global Resources & Infrastructure Conference New York August 6, 2013 BB&T Coal & Diversified Mining Conference St. Louis 2 nd Quarter Report – Early August 17
Slide 18: Slide 18