Stanmore Resources Ltd · ASX:SMR
Stanmore Resources — Stanmore Coal — Investor Presentation (November 2015)
20 slides from Stanmore Resources's investor presentation, Nov 30, 2015
Slide 1: Completion of Isaac Plains Acquisition
For personal use only COMPLETION OF ISAAC PLAINS ACQUISITION Transformation to Met Coal Production INVESTOR PRESENTATION November 2015
Slide 2: Important Information
IMPORTANT INFORMATION For personal use only This document has been prepared by Stanmore Coal Limited (“Stanmore Coal”) Although due care and attention has been used in the preparation of forward Competent Persons Statement: for the purpose of providing a company and technical overview to interested
Slide 3: Becoming a Coking Coal Producer
STANMORE COAL BECOMING A COKING COAL PRODUCER For personal use only ✓ RESTART OF ISAAC PLAINS ON TRACK FOR FIRST HALF 2016 ✓ FULLY FUNDED TO COMMENCE ✓ HIGH QUALITY COKING COAL PRODUCTION FOR STEELMAKING Transaction completion achieved Fully-funded acquisition with no dilution for Historically
Slide 4: Overview of Stanmore Coal
OVERVIEW OF STANMORE COAL For personal use only Queensland based coal Advanced metallurgical and Highly experienced Board Well funded with a strong development company, thermal coal development and management team with shareholder base transitioning to production projects in the Bowen and pr
Slide 5: Resuming Coking Coal Production
ISAAC PLAINS RESUMING COKING COAL PRODUCTION For personal use only LOCATION Located approximately 7 km east of the township of Moranbah in the heart of the northern Bowen Basin 172 km from Dalrymple Bay Coal Terminal (DBCT) via Goonyella rail line Surrounded by large scale operating coking coa
Slide 6: Value Creating Transaction for Stanmore
ISAAC PLAINS VALUE CREATING TRANSACTION FOR STANMORE For personal use only MAJOR ACQUIRED ASSETS CONTRACTUAL COMMITMENTS Include: A number of contractual commitments also form part of the transaction terms. These include: Bucyrus 1370W dragline Rail haulage and port contracts Coal Handling and
Slide 7: Sources & Uses of Funds
ISAAC PLAINS SOURCES & USES OF FUNDS For personal use only PRO FORMA CASH POSITION – STEADY STATE Sources & Uses A$M The pro-forma cash position reflects Stanmore cash balance at completion1,2 35 management’s estimates to steady state production by June 2016. These cash flows Vendor compensation pay
Slide 8: Financing in Place for Production
ISAAC PLAINS FINANCING IN PLACE FOR PRODUCTION For personal use only Taurus Mining Finance Fund (Taurus) has Cost of drawn funds is 10% per annum The financing structure in place has been provided a US$42 million interest only facility (undrawn funds 2% per annum) sized to provide sufficient funding
Slide 9: Acquired Assets – A Fully Operating Mine
ISAAC PLAINS AQUIRED ASSETS – A FULLY OPERATING MINE For personal use only DRAGLINE TRAIN LOADOUT Bucyrus BE1370 CHPP, product stockpile and train High performance machine – loadout in close proximity in last year of operation moved Conveyor feed to rail surge/ >15 million bank cubic metres
Slide 10: A Low Cost Approach
ISAAC PLAINS A LOW COST APPROACH For personal use only RIGHT SCALE OF OPERATION Asset re-optimised at 1.1Mtpa of product coal to maximise proportion of low cost dragline Open cut mining of lower strip ratio northern pits only Contractors’ rates are significantly lower than recent boom period
Slide 11: Strategic Port and Rail Position
ISAAC PLAINS STRATEGIC PORT AND RAIL POSITION For personal use only Stanmore has secured around 1.1Mtpa of DALRYMPLE BAY COAL TERMINAL rail and port capacity to match the initial production level Further expansion capacity is likely to be available in current market environment Significant exp
Slide 12: Exploration Underway to Support Mine Extensions
ISAAC PLAINS EXPLORATION UNDERWAY TO SUPPORT MINE EXTENSIONS For personal use only Extensive exploration program underway, targeting both Isaac Plains underground and Isaac Plains East open cut deposits Significant 2D seismic analysis and line of oxidation drilling underway to inform geological
Slide 13: Indicative Timetable to Production
ISAAC PLAINS INDICATIVE TIMETABLE TO PRODUCTION For personal use only Transaction First coal completion railings 2H 2015 1H 2016 2H 2016 Contractor First coal Steady state mobilised processed production 13
Slide 14: Additional Information
STANMORE COAL ADDITIONAL INFORMATION For personal use only 14
Slide 15: Strong Board and Management Team
STRONG BOARD AND MANAGEMENT TEAM For personal use only Over 150 years of coal exploration, development and operational experience KEY MANAGEMENT Nick Jorss Mike McKee Andrew Roach Nigel Clifford Managing Director Chief Operating Officer Chief Financial Officer Senior Geologist 20 years in engineerin
Slide 16: Overview of Stanmore Assets
OVERVIEW OF STANMORE ASSETS For personal use only BOWEN BASIN – Coking Coal MACKENZIE – 85% Coking Coal ISAAC PLAINS – 100% Total Resources 143 Mt Total Resources 30.1 Mt Exploration Total Reserves 5.0 Mt Ramp-up to operations SURAT BASIN – Thermal Coal ISAAC PLAINS EAST – 100% THE RANGE
Slide 17: Stanmore's Project Pipeline
STANMORE’S PROJECT PIPELINE DRIVING LONG TERM SHAREHOLDER VALUE For personal use only Advanced Development Production Exploration / Development Isaac Plains Open Cut Belview Isaac Plains East (ramp up) Isaac Plains Lilyvale Underground The Range Clifford Potential to utilise near-term cash flows for
Slide 18: Reserves and Resources
RESERVES AND RESOURCES For personal use only JORC JORC JORC JORC Marketable Recoverable Measured Indicated JORC Inferred Total JORC Asset Coal Reserve1,2 Coal Reserve1,2 Resource1 Resource1 Resource1 Resource1 Isaac Plains Coking/Thermal 3.7 5.0 10.0 9.1 11.0 30.1 The Range Thermal 94.2 117.5 18.0 1
Slide 19: Outlook: Coal Market
For personal use only OUTLOOK COAL MARKET 19
Slide 20: Macro Factors Support a Positive Outlook for Metallurgical Coal
RESERVES MACRO FACTORS SUPPORT A POSITIVE OUTLOOK FOR METALLURGICAL COAL For personal use only THE NEXT WAVE OF HIGH QUALITY MET COAL PROJECTS HCC US$ MARGINS @US$89/T, 0.78:1 REQUIRES A SIGNIFICANT INCREASE IN PRICING Incentive price curve shows almost no new projects would be 40 developed in cur
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