Whitehaven Coal Limited · ASX:WHC
Whitehaven Coal — Shareholder Meeting (November 2008)
30 slides from Whitehaven Coal's shareholder meeting presentation, Nov 18, 2008
Slide 1: Delivering Growth – AGM 2008
For personal use only Whitehaven Coal Limited Delivering Growth AGM – 18 November 2008
Slide 2: 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 3: Qualifications and Statement
For personal use only Qualifications and Statement The information in this report that relates to Coal Resources and Reserves of the Whitehaven Group is based on information compiled by Mr David West, who is a Member of the Australasian Institute of Mining & Metallurgy. Mr West MAusIMM is a qualifie
Slide 4: Contents
Contents For personal use only • A snapshot • Our growth plans • Progress in 2008 • Looking further ahead November 2008 3
Slide 5: A snapshot
A snapshot For personal use only ASX listed company “WHC”; market capitalisation ~A$550 million JORC coal resources of 712 Million tonnes (Mt) in the Gunnedah Basin Superior coal quality: PCI + low-ash, high energy thermal coal products First mover and major coal producer/developer in the emerging G
Slide 6: Whitehaven is the leading coal producer and developer in the emerging Gunnedah Basin
Whitehaven is the leading coal producer and developer in the emerging Gunnedah Basin For personal use only November 2008 5
Slide 7: Large resources of superior quality coal
Large resources of superior quality coal For personal use only November 2008 6
Slide 8: Large resources of superior quality coal
Large resources of superior quality coal For personal use only November 2008 7
Slide 9: Large resources of superior quality coal
Large resources of superior quality coal For personal use only November 2008 8
Slide 10: High quality coal + high productivity = competitiveness
High quality coal + high productivity = competitiveness For personal use only ► Efficient mines + high yield = high saleable coal productivity ► WHC’s average saleable yield is 93% vs. Hunter Valley average of ~75% ► High quality coal also gives revenue advantages ► These advantages outweigh longer
Slide 11: Experienced managers/owners
Experienced managers/owners For personal use only Director/Title Experience • Directors have extensive coal industry experience. John Conde AO +30 years commercial experience Non-Executive Chairman • Directors have a proven track record as mine developers and Tony Haggarty +25 years coal industry ex
Slide 12: Tarrawonga mine
Tarrawonga mine For personal use only ► 1.5 Mtpa ROM capacity ► PCI & high quality thermal coals ► Saleable yield >90% ► ROM coal trucked to Gunnedah CHPP November 2008 11
Slide 13: Rocglen mine
Rocglen mine For personal use only ► 1.5 Mtpa ROM capacity ► PCI/SSCC and thermal coals ► Saleable yield >90% ► ROM coal trucked to Gunnedah CHPP November 2008 12
Slide 14: Canyon mine – coming to the end of its life
Canyon mine – coming to the end of its life Sunnyside to start in December – planned 1Mtpa capacity Coal from both mines trucked to Gunnedah CHPP For personal use only November 2008 13
Slide 15: Gunnedah coal preparation plant and rail loader
Gunnedah coal preparation plant and rail loader For personal use only ► ~30% ROM coal washed ► Washed yield >80% ► CPP upgrade to 3 Mtpa ► 24-7 rail loading November 2008 14
Slide 16: Werris Creek mine
Werris Creek mine For personal use only ► 1.5 Mtpa capacity ► PCI and thermal coals ► Saleable yield 100% ► Own crushing and rail load-out November 2008 15
Slide 17: Contents
Contents For personal use only • A snapshot • Our growth plans • Progress in 2008 • Looking further ahead November 2008 16
Slide 18: Established production with high growth
Established production with high growth For personal use only ► Five OC mines now in production, Canyon to close in 2009 ► Saleable production capacity in 2009 > 5Mt ► Narrabri Stage 1 under construction, first coal in Q4 2009 ► WHC has invested in rail track capacity upgrades to support growth plan
Slide 19: Contents
Contents For personal use only • A snapshot • Our growth plans • Progress in 2008 • Looking further ahead November 2008 18
Slide 20: Milestones during the last year
Milestones during the last year For personal use only • FY 2008 saleable production up 47%, coal sales up 91% over the previous year • JORC resources increased by 77.6 Mt to 712.9 Mt, marketable reserves increased to 137.9 Mt • Acquired remaining 60% interest in Werris Creek…WHC now owns 100% • Secu
Slide 21: FY 2008 financial results
FY 2008 financial results For personal use only A$ millions FY 2007 FY 2008 Coal Sales – Mt 1.5 2.8 Revenue 106.2 256.5 EBITDA 25.6 90.7 NPAT 24.1 51.9 Earnings per Share (Diluted) 8.0¢ 14.4¢ Net Cash Flow 19.4 84.7 Capex 8.3 71.3 End of Year Cash Balance 21.1 105.9 Net Cash/(Net Debt) (55.5) 50.7 G
Slide 22: Contents
Contents For personal use only • A snapshot • Our growth plans • Progress in 2008 • Looking ahead November 2008 21
Slide 23: New projects are on track and are being coordinated with infrastructure development
New projects are on track and are being coordinated with infrastructure development For personal use only November 2008 22
Slide 24: Narrabri North underground mine
Narrabri North underground mine For personal use only Location Adjacent to existing rail, power and road infrastructure Strategic JV partners Yudean a major Chinese generator, EdF a major European consumer and trader, J-Power a major Japanese thermal coal investor and consumer. Each partner has a 7.
Slide 25: Rail infrastructure to meet Whitehaven's growth
Rail infrastructure to meet Whitehaven’s growth For personal use only Whitehaven (60%) and Idemitsu (40%) have invested via ARTC to increase rail track capacity (Stages 1, 2 and 3) Current track capacity is 6 train paths per day to Gunnedah 5,400 tonne trains give capacity of ~11 Mtpa between Whiteh
Slide 26: Port infrastructure to meet Whitehaven's growth
Port infrastructure to meet Whitehaven’s growth For personal use only ► Existing PWCS Terminal Ongoing capacity constraints at PWCS, capacity in 2009 ~95 Mtpa, no better than 2008 PWCS has expansion plans to 145 Mtpa, but timing uncertain ► Newcastle Coal Infrastructure Group (“NCIG”) Whitehav
Slide 27: Port capacity may limit WHC growth rate
Port capacity may limit WHC growth rate For personal use only November 2008 26
Slide 28: Some short term coal market uncertainty
Some short term coal market uncertainty For personal use only Demand – Cyclical slowdown, but structural uptrend • Structural global demand is strong for export coking and thermal coal, but short term cuts in steel and industrial production are slowing demand Supply – Infrastructure constraints, hig
Slide 29: Weak A$ will help Australian suppliers
Weak A$ will help Australian suppliers For personal use only November 2008 28
Slide 30: Looking ahead
Looking ahead For personal use only ► Challenging business environment ► Weaker coal demand, lower US$ coal prices, but a weaker A$ ► Continued port and rail congestion ► Increased “take” by NSW Government from higher royalty rates (+20%) ► Whitehaven is well positioned ► Large reserves of high qual
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