Slide 1: Whitehaven Coal Limited: Delivering Growth
Whitehaven Coal Limited Delivering Growth Presentation to Wilson HTM Conference March 5, 2009
Slide 2: Disclaimer
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 projections and any estimate
Slide 3: Qualifications and Statement
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 has sufficient experi
Slide 4: Contents
Contents • A snapshot • Status of growth plans • Outlook • The merger with Gloucester Coal Wilson HTM Conference - March 5, 2009 3
Slide 5: A snapshot
A snapshot ASX listed company “WHC”; market capitalisation ~A$550 million Large coal resources in the Gunnedah Basin Superior coal quality: PCI + low-ash, low-sulphur, high energy thermal coals First mover and major coal producer/developer in the Gunnedah Basin Saleable production capacity of ~5 Mtp
Slide 6: Experienced managers/owners
Experienced managers/owners Director/Title Experience John Conde AO +30 years commercial experience • Directors have extensive Non-Executive Chairman coal industry experience. • Directors are proven mine Neil Chatfield +25 years in transport and resources developers and operators. Non-Executive Dire
Slide 7: Strong financial position
Strong financial position A$ 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 85.9 Interest bearing
Slide 8: Whitehaven is the leading coal producer and developer in the Gunnedah Basin
Whitehaven is the leading coal producer and developer in the Gunnedah Basin Wilson HTM Conference - March 5, 2009 7
Slide 9: Gunnedah operations - Tarrawonga mine
Gunnedah operations - Tarrawonga mine ► 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 10: Gunnedah operations - Rocglen mine
Gunnedah operations - Rocglen mine ► 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 11: Gunnedah operations - Sunnyside mine
Gunnedah operations - Sunnyside mine ► Commenced December 2008 ► 1.0 Mtpa ROM capacity ► Thermal coals ► ROM coal trucked to Gunnedah CHPP Wilson HTM Conference - March 5, 2009 10
Slide 12: Gunnedah operations – CHPP and rail loader
Gunnedah operations – CHPP and rail loader ► ~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 13: Werris Creek mine
Werris Creek mine ► 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 14: Contents
Contents • A snapshot • Status of growth plans • Outlook • The merger with Gloucester Coal Wilson HTM Conference - March 5, 2009 13
Slide 15: Narrabri Stage 1 construction on track
Narrabri Stage 1 construction on track Highway Upgrade Access Road Water Management Rail Loop 3.6 km Industrial Area Box Cut Wilson HTM Conference - March 5, 2009 14
Slide 16: Narrabri South marketable reserves now 69.2 Mt
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 NARRABRI JORC COAL RESERVES - Million tonnes Marketable Reserves1 Recoverable Mine / Project From from Reserves Total Proved Probable
Slide 17: Established production with high growth
Established production with high growth ► Five OC mines now in WHITEHAVEN GROWTH - SALEABLE PRODUCTION CAPACITY production, Canyon to close in 2009 12,000 ► Saleable production capacity in 2009 > 5Mt 10,000 Gunnedah Thousand tonnes ► Narrabri Stage 1 under 8,000 construction, first coal in Q4 2009 W
Slide 18: Projects are on track and being coordinated with infrastructure development
Projects are on track and being coordinated with infrastructure development Wilson HTM Conference - March 5, 2009 17
Slide 19: Rail infrastructure to meet Whitehaven growth
Rail infrastructure to meet Whitehaven growth 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 between Whitehaven and Ide
Slide 20: Port infrastructure to meet Whitehaven growth
Port infrastructure to meet Whitehaven growth ► 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 Q1 2010 Stage 1 capac
Slide 21: Port capacity may limit WHC growth rate
Port capacity may limit WHC growth rate WHITEHAVEN GROWTH - SALEABLE PRODUCTION CAPACITY 12,000 10,000 Gunnedah Thousand tonnes 8,000 Werris Creek 6,000 Narrabri 4,000 2,000 Port Constraint ? 0 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 Wilson HTM Conference - March 5, 2009 20
Slide 22: Contents
Contents • A snapshot • Status of growth plans • Outlook • The merger with Gloucester Coal Wilson HTM Conference - March 5, 2009 21
Slide 23: Coal market uncertainty
Coal market uncertainty 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 • Port and rail inadequac
Slide 24: Looking ahead: Whitehaven is well positioned
Looking ahead ► 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 quality coal ► Efficient m
Slide 25: Near and medium term objectives
Near and medium term objectives • 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 within Gunnedah lease/EL a
Slide 26: Merger with Gloucester Coal
Merger with Gloucester Coal ► 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 Gloucester coals ► Com