Celsius Resources Ltd. · ASX:CLA
Celsius Resources — Celsius Coal — Investor Presentation (October 2013)
34 slides from Celsius Resources's investor presentation, Sep 27, 2013
Slide 1: Premium Coal Supply for China and Central Asia
For personal use only PREMIUM COAL SUPPLY FOR CHINA AND CENTRAL ASIA October 2013
Slide 2: Disclaimer
Disclaimer For personal use only The information contained in this presentation (“Presentation”) has been prepared by Celsius Coal Ltd (“Company” or “Celsius” or “CLA”) and is being communicated for general background informational purposes only. The information contained in this Presentation is sub
Slide 3: Company snapshot
For personal use only Company snapshot Section 1 Drill rig operating at Kargasha, 2012 (Uzgen Basin coking coal project) 3
Slide 4: Capitalization and structure
Company snapshot Capitalization and structure For personal use only Capitalization summary Corporate structure Share price (at Sep 26, 2013) A$0.027/share Australia Celsius Coal Shares outstanding 1,990.0m Ltd. Market capitalization A$53.7m Net cash (at Sep 26)1 A$0.2m Hong Kong 100% 80% Enterprise
Slide 5: License location and tenure
Company snapshot License location and tenure For personal use only Uzgen Basin coking coal licenses Kargasha Status: Exploration license Size: 8,000ha Kokkia Status: Exploration license Size: 1,576ha Sary Mogol Bel Alma Min Teke Alai Status: Mining license Status: Exploration license Status: Mining
Slide 6: Directors and senior management
Company snapshot Directors and senior management For personal use only Name and position Background Alexander Molyneux n Previously CEO, SouthGobi Resources (2009-2012) – largest foreign coal producer in Executive Chairman Mongolia (US$550M market cap./ US$800M EV) (Executive Director) n Prior to
Slide 7: Investment themes
For personal use only Investment themes Section 2 Hard black bituminous coal recovered during core drilling at Kargasha, 2012 7
Slide 8: Large-scale coking coal resource
1 Large-scale coking coal resource JORC Resource of 255 million tonnes with upside For personal use only Summary of existing coal JORC Resources (Uzgen Basin Coking Coal)1 Inferred Total Kargasha 230 230 Kokkia 25 25 Min Teke – – Total 255 255 Total near-term targeted tonnages (including exploration
Slide 9: Premium quality coals
2 Premium quality coals Uzgen Basin licenses contain quality coking coals For personal use only Indicative coal qualities (international system) Chinese coal classification Kargasha Kokkia Fat (FM) Gas fat (QF) Calorific Valuedaf 7,862(1) 7,800-8,500(3) 85 (Kcal/kg) 1/3 Coking (JM) Gas Volatile Matt
Slide 10: China: Xinjiang, the Chinese neighbour with unique prospects
3 Proximity to growing high-value markets China: Xinjiang, the Chinese neighbour with unique prospects For personal use only Xinjiang Province China, basic facts n Population: 22m n GDP/capita: US$4,600 (1/3-1/2 coastal levels) Xinjiang development and infrastructure n Xinjiang has been highlight
Slide 11: China: Xinjiang already has a coking coal supply deficit
3 Proximity to growing high-value markets China: Xinjiang already has a coking coal supply deficit For personal use only Coking coal supply / demand gap1 Prime coking coal supply / demand gap PCC Produc7on (Mt) PCC Demand (Mt) PCC 1/3CC 19.0 18.4 Gas coal Fat coal 16.6 7.0 Lean coal 6.8 6.1 11.5 4.2
Slide 12: China: Xinjiang prices are independent of seaborne and rising
3 Proximity to growing high-value markets China: Xinjiang prices are independent of seaborne and rising For personal use only Xinjiang premium coking coal price vs. seaborne quarterly hard coking coal benchmark price 350 Quarterly Contracted HCC Price (USD/t) Xinjiang PCC Price (USD/t) 300 250 200 1
Slide 13: China: Target customers have been identified and engaged
3 Proximity to growing high-value markets China: Target customers have been identified and engaged For personal use only Crude steel produc7on (Mt) 22.5 12.0 Aletai Takeshiken 2012 2015e Alashankou Karamay Laoyemiao Yining Changji Torugart Hami Irkeshtam URUMQI Kizilsu Aksu Turpan Kashgar Bayingol H
Slide 14: Kyrgyz Republic and Central Asia: Premium markets
3 Proximity to growing high-value markets Kyrgyz Republic and Central Asia: Premium markets For personal use only Kazakhstan – thermal coal price US$65-90/t Bishkek / Talas market – US $65-105/t Jalalabad / Osh market – thermal coal price US$110-140/t Tajikistan – thermal coal price US$130-160/t 14
Slide 15: A primary road route has been selected for initial exports
4 Feasible routes to market A primary road route has been selected for initial exports For personal use only n Distance from Uzgen Basin Coking Coal Project to Torugart border of approximately 300km n Estimated transport cost to border US$8/t plus US$4-5/t estimated charges for customs etc. for bo
Slide 16: Railway is expected to reduce transport costs by 2017
4 Feasible routes to market Railway is expected to reduce transport costs by 2017 For personal use only Proposed Trans-Asia Railway Commentary n China, Kyrgyz Republic and Uzbekistan have agreed to construct a 20mtpa railway, linking the three countries with Chinese rail at Kashgar n Route options
Slide 17: Low capex starter mine conceptualized
5 Low capex starter mine conceptualized Internal concept study yielded positive results for auger mine For personal use only n Concept study highlighted the potential for auger mining (as used at Yarabee mine in Queensland) n Celsius identified a concept for a 500-600ktpa ‘starter mine’ potential
Slide 18: Milestones and strategies
For personal use only Milestones and strategies Section 3 Mining operations at Min Teke, 2012 18
Slide 19: Fast-track to establish coal production and exports
Milestones and strategies Fast-track to establish coal production and exports For personal use only n 2013 drilling completed by October – analytical data December n Bulk sample testing completed December 2013 – off-take agreements soon after n Revised resource estimation March 2014 n Environmen
Slide 20: More on geology
For personal use only More on geology Appendix 1 20
Slide 21: Location of projects
More on geology Location of projects For personal use only Geological map of Kyrgyz Republic 21
Slide 22: Resource status 2012 and Soviet era work locations
More on geology Location of projects For personal use only Resource status 2012 and Soviet era work locations Kargasha (230 million tonnes) n Contained in 11 seams (seam cut-off 0.5m) n Seven new 2012 cored holes (approximately 3,800m) n 60 Soviet era drill holes (approximately 29,000m) n 164 So
Slide 23: Geological map of Kargasha
More on geology Geological map of Kargasha (cross section selections) For personal use only E B H F A C G D *A-‐B, C-‐D, E-‐F and G-‐H Interpreted Cross Sec7ons through the Kargasha License showing Celsius 2012 and historical Soviet era drilling. 23
Slide 24: Kargasha interpreted cross-sections
More on geology Kargasha interpreted cross-sections For personal use only Interpreted cross-sections showing 2012 and historical drilling DD12TK007 DD12TK002 A B 4.89m coal in 4.29m coal 7 seams in 8 seams DD12TK001 C D 4.43m coal in 4 seams 24
Slide 25: Kargasha interpreted cross-sections (continued)
More on geology Kargasha interpreted cross-sections (continued) For personal use only Interpreted cross-sections showing 2012 and historical drilling DD12TK003 DD12TK006 E F 4.94m coal in 8.52m coal in 10 seams 16 seams DD12TK004 DD12TK005 G H 1.63m coal in 9.28m coal in 3 seams 14 seams 25
Slide 26: Kargasha and Min Teke prospects
More on geology Kargasha and Min Teke prospects For personal use only n Schematic cross section through the Kargasha and Min Teke prospects showing interpreted geology and the structure of the Tuyuk formation n Note the shallow dip of the beds as well as small scale folding resulting in the coal r
Slide 27: 2013 work program
2013 work program Drill holes for Kargasha and Kokkia For personal use only 27
Slide 28: Status of 'other' projects
Status of ‘other’ projects Sary Mogol and Bel Alma in Alai Rainge For personal use only n Better define geological understanding & likelihood of commercial, high-margin production n Extend resources where possible n Non-JORC resource assessment n Conceptual mine plans for shorter and longer term
Slide 29: About Kyrgyz Republic
For personal use only About Kyrgyz Republic Appendix 2 29
Slide 30: A parliamentary democracy with a young population
About Kyrgyz Republic A parliamentary democracy with a young population For personal use only Country background Politics n Size:199,900km2 (halfway between UK and n System: parliamentary democracy Greece in size) n Key figures n Location: Central Asia, west of China and south n President: Alma
Slide 31: Positive attitude to trade and business with China
About Kyrgyz Republic Positive attitude to trade and business with China For personal use only China-Kyrgyz relations Premier Wen and PM Satybaldiev (2012) n China and Kyrgyz Republic were both founding members of the Shanghai Cooperation Organization in 1996 n China now represents 80% of Kyrgyz e
Slide 32: Relatively benign minerals law and attractive fiscal regime
About Kyrgyz Republic Relatively benign minerals law and attractive fiscal regime For personal use only Basic elements of law and administration Fiscal regime n Minerals licensing is predominantly managed by n Total royalty: 4.3%, made up of: the State Agency for Geology (SAG), which n Mineral ro
Slide 33: Contacts
Contacts For personal use only Celsius Coal Limited Registered Office: Level 1, 12 Kings Park Road, West Perth, WA, AUSTRALIA, 6005 Telephone: +61 8 9226 4500 Facsimile: +61 8 9226 4300 Corporate Office: 4607-11 The Center, 99 Queens Road, Central District, HONG KONG Telephone: +852 3796 7105 Websit
Slide 34: Competent persons statement
Competent persons statement For personal use only The information in this announcement that relates to Coal Resources is based on information compiled by Dr Gavin Springbett, a Competent Person who is a Member of The Australasian Institute of Mining and Metallurgy. Dr Springbett is acting as a consu