Whitehaven Coal Limited · ASX:WHC
Whitehaven Coal — UBS Conference 2012
20 slides from Whitehaven Coal's conference presentation, Nov 28, 2012
Slide 1: Delivering Growth
Whitehaven Coal Limited For personal use only Delivering Growth Presentation to UBS Conference Sydney, Australia 28 November 2012
Slide 2: Disclaimer
Disclaimer For personal use only 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: Gunnedah Basin has sustainable competitive advantages
Gunnedah Basin has sustainable competitive advantages Whitehaven has consolidated a very strong position For personal use only Large ► Low ash reserves of ► Low sulphur excellent ► Low phosphorus quality coals ► High energy ► Coking properties (Updated JORC statement issued ► Favourable ash & trace
Slide 4: Operating highlights - FY 2012
Operating highlights - FY 2012 For personal use only ► Safety and environmental performance very good across Whitehaven's operations, with a range of initiatives put in place to promote continuous improvement ► Overburden removal quantity as planned for the year, but coal production adversely affect
Slide 5: Saleable coal production increase continues
Saleable coal production increase continues For personal use only Saleable Coal Production - Equity Basis 4,500 4,000 3,500 3,000 000 tonnes 2,500 2,000 1,500 1,000 500 0 4 UBS Conference - 28th November, 2012
Slide 6: Business development highlights - FY 2012
Business development highlights - FY 2012 For personal use only ► Completed the merger with Aston Resources and Boardwalk ► Completed the acquisition of Coalworks to further consolidate Whitehaven’s position in the Vickery and Ferndale projects ► Completed the sale of a 10% JV interest in the Maules
Slide 7: Substantial near-term production growth from Narrabri and Maules Creek
Substantial near-term production growth from Narrabri and Maules Creek, Vickery to follow For personal use only Planned Saleable Production by Mine – 100% Basis 30000 26 25 25000 22 Note: The FY 2014 plan is based on final EPBC 20000 approval for Maules Creek 000's tonnes being received no later tha
Slide 8: A major future supplier of semi-soft coking coal and low-ash thermal coals
A major future supplier of semi-soft coking coal and low-ash thermal coals For personal use only Comments Potential saleable production mix (Mt, 100% basis) ► Metallurgical coal can grow to be up to ~60% Metallurgical coal 23% of managed saleable production by FY2017, Metallurgical coal subject to m
Slide 9: Narrabri fully operational, all infrastructure in place
Narrabri fully operational, all infrastructure in place For personal use only ► Gas drainage well ahead of development, residual gas content low, no issues for LW ► Roof caving well, including in un-conditioned area, minimal pre-conditioning in future ► Caving of roof coal looks positive for Top Coa
Slide 10: Longwall installed and operating
Longwall installed and operating For personal use only ► Engineering teething problems mostly resolved – e.g. shearer set-up, picks & hi-set valves ► Main issue was automation software, which is now installed and working ► Operator skills improving and CAT/Bucyrus supporting until LW reaches design
Slide 11: Production ramping up well
Production ramping up well Equipment can do the job, its now about consistency For personal use only ► Shift production of +20 Kt achieved, Narrabri ROM Production vs Plan ► Daily production of +30 Kt achieved, 3,500 160 ► Weekly production of +140 Kt achieved 3,000 140 ► Monthly production of +500
Slide 12: NSW Government approval received for Maules Creek
NSW Government approval received for Maules Creek For personal use only ► Maules Creek project registered with NSW Government in August 2010 ► Environmental Assessment completed and lodged in February 2011 ► Aston expected assessment to be completed and approved by end 2011, based on previous operat
Slide 13: Maules Creek one of the best global coal projects
Maules Creek one of the best global coal projects For personal use only ► Economics of Maules Creek are compelling • Large reserve of high quality coal • Competitive capital development costs • Low life-of-mine stripping ratio of ~6.4 bcm per ROM tonne (~7.1 bcm/t saleable) • High yield (80-90%) of
Slide 14: Newcastle port capacity has grown rapidly
Newcastle port capacity has grown rapidly For personal use only - Around 215 Mtpa port capacity by December 2013 - Shipments of ~150 Mt forecast for CY 2013 - New/expanded mines of +60 Mtpa not on horizon 100 100 - Re-allocation of contracted capacity being explored 40 40 70 32 32 32 30 30 30 30 PWC
Slide 15: Infrastructure available to support planned growth
Infrastructure available to support planned growth For personal use only Comments Port capacity and export coal sales (Mt, 100% basis)1 Strategic 11% shareholding in Newcastle Coal Infrastructure Group Medium to longer term capacity gaps to be secured by accessing surplus capacity from other pro
Slide 16: Australia is the largest coal exporter and has the competitive strengths to remain #1
Australia is the the largest coal exporter and has the competitive strengths to remain #1 For personal use only ► Australia has the world’s best reserves of metallurgical coal and large reserves of high quality thermal coal ► Our mining conditions are generally good and our coal deposits are relativ
Slide 17: Demand growth has weakened in the last months
Demand growth has weakened in the last 9 months Supply competition has also increased For personal use only ► Australian supply still somewhat constrained by infrastructure and ever- increasing “red tape” and “green tape”, however Newcastle port capacity now in surplus ► Competition in the seaborne
Slide 18: Prices have fallen sharply in 2012 and the short term outlook is uncertain
Prices have fallen sharply in 2012 and the short term outlook is uncertain For personal use only SSCC Price - Last 2 years Thermal Coal Price - 2 years (US$/tonne) (US$/tonne) 300 146 250 136 126 200 116 150 106 100 96 50 86 76 0 09/10 12/10 03/11 06/11 09/11 12/11 03/12 06/12 09/12 09/10 12/10 03/1
Slide 19: Whitehaven's response
Whitehaven’s response For personal use only ► Focussed review of operating costs to identify opportunities for reduction ► Optimise deployment of equipment – including replacement of hire equipment ► Productivity improvement and cost reduction opportunities ► Deferment/cancellation of all non-essent
Slide 20: Whitehaven Coal Limited
Whitehaven Coal Limited For personal use only Delivering Growth Presentation to UBS Conference Sydney, Australia 28 November 2012