Whitehaven Coal Limited · ASX:WHC
Whitehaven Coal — Wilson HTM Conference 2009
27 slides from Whitehaven Coal's conference presentation, Mar 6, 2009
Slide 1: Amended Presentation ASX cover note
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 6 March 2009 WHITEHAVEN COAL LIMITED (ASX:WHC) AMENDED PRESENTATION Whitehaven Coal advises that
Slide 2: Delivering Growth - Presentation to Wilson HTM Conference
For personal use only Whitehaven Coal Limited Delivering Growth Presentation to Wilson HTM Conference March 5, 2009
Slide 3: 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 4: Qualifications and Statement
For personal use only Qualifications and Statement The information in this report that relates to Coal Reserves of the Narrabri Project is based on information compiled by Mr Graeme Rigg, who is a Member of the Australasian Institute of Mining & Metallurgy. Mr Rigg is a qualified mining engineer and
Slide 5: Contents
Contents For personal use only • A snapshot • Status of growth plans • Outlook • The merger with Gloucester Coal Wilson HTM Conference - March 5, 2009 3
Slide 6: A snapshot
A snapshot For personal use only ASX listed company “WHC”; market capitalisation ~A$550 million Large coal resources in the Gunnedah Basin Superior coal quality: PCI + low-ash, low-sulphur, high energy thermal coals First mover and major coal producer/developer in the Gunnedah Basin Saleable product
Slide 7: Experienced managers/owners
Experienced managers/owners For personal use only Director/Title Experience John Conde AO +30 years commercial experience • Directors have extensive Non-Executive Chairman coal industry experience. • Directors are proven mine Neil Chatfield +25 years in transport and resources developers and operato
Slide 8: Strong financial position
Strong financial position For personal use only A$ millions 30 June 2008 31 December 2008 Cash 80.8 76.6 Current receivables 49.0 172.4 Other current assets 59.2 53.1 Non-current receivables 27.2 157.0 Other non-current assets 407.1 462.7 Total assets 623.3 921.8 Payables 37.9 40.2 Tax payable 10.1
Slide 9: Whitehaven is the 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 Wilson HTM Conference - March 5, 2009 7
Slide 10: Gunnedah operations - Tarrawonga mine
Gunnedah operations - 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 ► WHC owns 70% of JV Wilson HTM Conference - March 5, 2009 8
Slide 11: Gunnedah operations - Rocglen mine
Gunnedah operations - Rocglen mine For personal use only ► 1.5 Mtpa ROM capacity ► PCI and thermal coals ► Saleable yield ~85% ► ROM coal trucked to Gunnedah CHPP Wilson HTM Conference - March 5, 2009 9
Slide 12: Gunnedah operations - Sunnyside mine
Gunnedah operations - Sunnyside mine For personal use only ► Commenced December 2008 ► 1.0 Mtpa ROM capacity ► Thermal coals ► ROM coal trucked to Gunnedah CHPP Wilson HTM Conference - March 5, 2009 10
Slide 13: Gunnedah operations - CHPP and rail loader
Gunnedah operations – CHPP and rail loader For personal use only ► ~50% ROM coal washed ► Washed yield >80% ► Total yield >90% ► CPP upgrade to 3 Mtpa ► 24-7 rail loading Wilson HTM Conference - March 5, 2009 11
Slide 14: 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 Wilson HTM Conference - March 5, 2009 12
Slide 15: Contents
Contents For personal use only • A snapshot • Status of growth plans • Outlook • The merger with Gloucester Coal Wilson HTM Conference - March 5, 2009 13
Slide 16: Narrabri Stage 1 construction on track
Narrabri Stage 1 construction on track For personal use only Highway Upgrade Access Road Water Management Rail Loop 3.6 km Industrial Area Box Cut Wilson HTM Conference - March 5, 2009 14
Slide 17: Narrabri JORC Coal Reserves
WHITEHAVEN COAL LIMITED – NARRABRI JORC COAL RESERVES ‐ Million tonnes Narrabri South marketable reserves now 69.2 Mt Total Narrabri marketable reserves now 171.9 Mt For personal use only NARRABRI JORC COAL RESERVES - Million tonnes Marketable Reserves1 Recoverable Mine / Project From from Reserves
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: Projects are on track and coordinated with infrastructure development
Projects are on track and being coordinated with infrastructure development For personal use only Wilson HTM Conference - March 5, 2009 17
Slide 20: Rail infrastructure to meet Whitehaven growth
Rail infrastructure to meet Whitehaven growth For personal use only Whitehaven (60%) and Idemitsu (40%) have sponsored ARTC investment to increase rail track capacity (Stages 1, 2 and 3) Current track capacity is 6-7 train paths per day to Gunnedah 5,400 tonne trains give capacity of 11-12 Mtpa betw
Slide 21: 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, but timing uncertain ► Newcastle Coal Infrastructure Group (“NCIG”) Whitehaven owns 11% of NCIG....due to be commissioned in Q
Slide 22: Port capacity may limit WHC growth rate
Port capacity may limit WHC growth rate For personal use only Wilson HTM Conference - March 5, 2009 20
Slide 23: Contents
Contents For personal use only • A snapshot • Status of growth plans • Outlook • The merger with Gloucester Coal Wilson HTM Conference - March 5, 2009 21
Slide 24: Coal market uncertainty
Coal market uncertainty For personal use only Demand – Cyclical slowdown, but structural uptrend • Global demand for export coking coal is very weak. Thermal coal is better, but weaker than six months ago Supply – Infrastructure constraints, higher costs, mine development slower & more difficult • P
Slide 25: 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
Slide 26: Near and medium term objectives
Near and medium term objectives For personal use only • Continue to manage our existing operations efficiently • Werris Creek improvement and extended life • Deliver Narrabri Stage 1 on time and budget • Complete rail upgrade to Narrabri • See NCIG Stage 1 delivered on time • Active exploration with
Slide 27: Merger with Gloucester Coal
Merger with Gloucester Coal For personal use only ► Merger will create a bigger, stronger coal company with substantial benefits for all shareholders of both companies ► Complementary coal quality, operations, infrastructure and cash flows ► Significant value can be added by blending Whitehaven and