Australian Pacific Coal Limited · ASX:AQC
Australian Pacific Coal — Investor Presentation (October 2024)
35 slides from Australian Pacific Coal's investor presentation, Oct 2, 2024
Slide 1: Dartbrook Underground: Ready for Production
Dartbrook Underground: Ready for Production Ayten Saridas, Managing Director & CEO Equity Raising Presentation 2 October 2024 ASX: AQC Not for release or distribution in the United States
Slide 2: Disclaimer
Disclaimer This presentation (‘the Presentation’) has been prepared by Australian Pacific Coal Limited ACN 089 206 986 information contained in the retail offer booklet to be prepared for eligible retail shareholders in Australia and (‘AQC’ or ‘the Company’) in connection with a placement of new ful
Slide 3: Disclaimer
Disclaimer FORWARD LOOKING INFORMATION (CONTINUED) placement acknowledges that allocations under the placement are at the sole discretion of the Lead Assumptions have been made regarding, among other things: the Company’s ability to carry on future Manager and AQC. To the maximum extent permitted by
Slide 4: Section 1. Dartbrook Overview
Section 1. Dartbrook Overview 4 Not for release or distribution in the United States
Slide 5: Dartbrook – Revival of a quality coal asset
Dartbrook – Revival of a quality coal asset ▪ Acquisition of Dartbrook Underground Mine: Acquired in May 2017 by Australian Pacific Coal (from Anglo American) ▪ Commercial Production Imminent: Re-start program to fully remediate underground operations substantially complete with coal successfully pr
Slide 6: Investment Highlights
Investment Highlights AQC has an 80% JV interest (70% economic interest1) in the Dartbrook coal project, offering ASX exposure to a successfully recommissioned, fully funded production asset in Australia’s Hunter Valley New supply of Substantially de-risked – Coal Fully Funded – Restart capex and lo
Slide 7: High Quality Asset, Extensive Reserves
High Quality Asset, Extensive Reserves ▪ AQC has an 80% working interest in the Dartbrook JV and a 70% economic interest1 ▪ Substantial Reserves and Resources: – JORC compliant Resource: 2.5 Bt2 – ROM Reserves: 470 Mt2 – Marketable Reserves: 370 Mt2 ▪ Hunter Tunnel dewatered; underground remediation
Slide 8: World Class Underground Operation
World Class Underground Operation Not to scale. Illustrative only. • Multi-seam reserve – underground seam access already developed to multiple seams 8 • Coal clearance system – through the existing Hunter Tunnel direct to the prep plant (CHPP) Not for release or distribution in the United States
Slide 9: Section 2. Restart Ready
Section 2. Restart Ready Y/ Coal
Slide 10: Production Ramp-up Underway
Production Ramp-up Underway ▪ Coal from the Kayuga seam produced to surface stockpile ▪ 4 km conveyor system operational ▪ Production ramp-up underway, targeting commercial production in Q4 CY2024 ▪ Commissioned first Continuous Mining Unit (CMU), with second and third CMUs secured ▪ Rail loadout fa
Slide 11: Operations Overview
Operations Overview ▪ JV partner Tetra Dartbrook Pty Ltd is the Operator and Mine Manager (via affiliates) ▪ Phased commissioning of 4 CMUs planned within first 18 months in the Kayuga seam. ▪ Initial production (~3-6 months) of unwashed thermal coal (ROM bypass) while CHPP refurbished. Wet plant re
Slide 12: Strategically Positioned for Export Market
Strategically Positioned for Export Market Dartbrook represents a rare opportunity to Newcastle 6000 CV price1 access Asian export markets when limited new projects are being sanctioned ▪ Dartbrook stepping in at the right time - limited new supply growth despite higher global prices ▪ Well position
Slide 13: Key Operating Metrics for Dartbrook
Key Operating Metrics for Dartbrook Asset Summary ROM Ramp up to ~2.4 Mtpa (annualised) within 2 Production years planned High quality NEWC spec coal with potential to Product produce commercial quantities of semi soft met coal and PCI1 Coal produced to surface in Q3 CY2024; ramp- Schedule up underw
Slide 14: Compelling Financial Metrics
Compelling Financial Metrics Forecast ROM Production1 Revenue Mt 3.0 Subject to receiving 1 MOD8 extension 2.5 1 2.4 2.4 2.4 2.3 2.0 1 • NEWC thermal benchmark product 1.5 1 and pricing anticipated 1.0 0 0.9 0.5 0 - - Year 1 Year 2 Year 3 Year 4 Year 5 Forecast Sales Volumes and FOB Costs2 Forecast
Slide 15: MOD8 Extension Potential
MOD8 Extension Potential ▪ MOD8 extension would allow mining to continue beyond Dec 2027 to Dec 2033 with no material capital investment required ▪ Work on MOD8 submission is underway and targeting lodgement before the end of CY2024 ▪ No changes to current Development Approval requested except for t
Slide 16: Section 3. The Offer
Section 3. The Offer 16 Not for release or distribution in the United States
Slide 17: Equity Raising Overview
Equity Raising Overview • Australian Pacific Coal (“AQC” or the “Company”) is announcing an equity raising of A$20m (“Equity Raising”) comprising: ‒ Up to approximately A$9.6m placement (“Placement”) utilising the company’s placement capacity under ASX Listing Rule 7.1 Equity Raising size ‒ Fully un
Slide 18: Indicative Equity Raising Timetable
Indicative Equity Raising Timetable Event Date Announcement of the Equity Raising Wednesday, 2 October 2024 Placement and Institutional Entitlement Offer closes Thursday, 3 October 2024 Announcement of results of Placement and Institutional Entitlement Offer Friday, 4 October 2024 Trading halt lifte
Slide 19: Sources and Uses of Funds
Sources and Uses of Funds Equity Raising, alongside upsized debt funding package, to fully fund ramp-up of the Dartbrook mine SOURCES OF FUNDS (A$M) USES OF FUNDS (A$M) Placement1 9.6 Establishment of Subordinated Facility2 10.0 Entitlement Offer 10.4 General Working Capital and Offer costs3 10.0 To
Slide 20: Section 4. Corporate
Section 4. Corporate 20 Not for release or distribution in the United States
Slide 21: AQC Corporate Overview
AQC Corporate Overview Shareholder Register1 Capital Structure (Pre-Equity Raise) Share price2 $0.1675 Brokers & Trepang & Other Retail Associates Shares on issue2 533.8m 30% 36% Market capitalisation2 $89.4m Cash (30 June 2024)3 $17.8m Debt (30 June 2024) $75m Options4 13.8m @$0.34 Market capitalis
Slide 22: Expected Upcoming Catalysts
Expected Upcoming Catalysts ▪ Targeting commercial production in Q4 CY2024 ▪ Implementation of full funding package including Senior Secured Facility and establishment of Subordinated Facility and satisfaction of CPs ▪ Port & Rail access agreement ▪ First coal sales (unwashed / ROM by-pass) ▪ Assess
Slide 23: Enquiries
Enquiries General Enquiries: Investors: ASX code: AQC Murray Aitken Matt Sullivan Senior Commercial Manager Meridian Investor Relations M. +61 (0)408 932 158 M. +61 (0)412 157 276 E. maitken@aqcltd.com 23 Not for release or distribution in the United States
Slide 24: Section 5. Appendix
Section 5. Appendix 24 Not for release or distribution in the United States
Slide 25: Dartbrook Reserves and Resources
Dartbrook Reserves and Resources AQC has had the following technical JORC Resource Classification Mt reports conducted for Dartbrook: • Coal Reserve Estimate for Dartbrook Ore Reserves Project (2018) Proven - • Mining Consultancy Services (2017), Probable 370 Underground Mine Feasibility Study Total
Slide 26: Key Terms – Senior Debt Facility
Key Terms – Senior Debt Facility Amount: Up to US$90 million Guarantor: Australian Pacific Coal Limited. Borrowers: AQC Dartbrook Pty Ltd (80%), Tetra Dartbrook Pty Ltd (20%) Facility type: Loan note issuance facility. Security: Senior security over the assets of the Dartbrook Joint Venture. Final R
Slide 27: Key Terms – Subordinated Facility
Key Terms – Subordinated Facility Amount: Up to A$20 million Guarantor: Australian Pacific Coal Limited. Borrowers: AQC Dartbrook Pty Ltd (80%), Tetra Dartbrook Pty Ltd (20%) Security: Second ranking security over the Senior Prepayment Facility Security Package. Final Repayment 31 December 2027 whic
Slide 28: International Offer Restrictions
International Offer Restrictions This document does not constitute an offer of New Shares of the Company in any jurisdiction in which it “professional investors” (as defined in the SFO and any rules made under that ordinance). would be unlawful. In particular, this document may not be distributed to
Slide 29: International Offer Restrictions
International Offer Restrictions Singapore FSMA) received in connection with the issue or sale of the New Shares has only been communicated or This document and any other materials relating to the New Shares have not been, and will not be, caused to be communicated and will only be communicated or c
Slide 30: Key Risks
Key Risks This section discusses some of the key risks associated with any investment in AQC, which may affect the heating. value of AQC's securities. The risks set out below do not constitute an exhaustive list of all risks involved (iii) The New South Wales Resources Regulator (‘NSWRR’) requires f
Slide 31: Key Risks
Key Risks Force majeure events AQC is exposed to interest rate risk in relation to variable rate bank balances and variable rate borrowings. The interest rates applicable to AQC’s borrowings may increase in the future as a result of Events that are beyond the direct control of the Company may occur
Slide 32: Key Risks
Key Risks Increasing regulation of coal mining and related financing and other matters Volatility of coal prices Global concerns about climate change continue to attract considerable attention, particularly in relation AQC anticipates generating its primary revenue from the sale of coal. Accordingly
Slide 33: Key Risks
Key Risks General Risks Agreement). The ability of the Lead Manager to terminate the Underwriting Agreement in respect of certain events will depend on whether, in the reasonable opinion of the Lead Manager, the event has, or Nature of investment is likely to have, a material adverse effect on the f
Slide 34: Summary of the Underwriting Agreement
Summary of the Underwriting Agreement The Company has entered into a lead manager mandate (Mandate) and an underwriting agreement Document or prosecutes or commences proceedings against or gives notice of an intention to prosecute or (Underwriting Agreement) with Canaccord (Underwriter) pursuant to
Slide 35: Summary of Underwriting Agreement
Summary of Underwriting Agreement In addition, Canaccord may terminate the Underwriting Agreement by notice if one of the following (including one compliance with which is in accordance with the general practice of persons to whom the termination events occurs or has occurred prior to issue of the S
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