Bowen Coking Coal Ltd · ASX:BCB
Bowen Coking Coal — Investor Presentation (November 2023)
46 slides from Bowen Coking Coal's investor presentation, Nov 2, 2023
Slide 1: Equity Capital Raising
NOT FOR DISTRIBUTION IN OR INTO THE UNITED STATES Equity Capital Raising 2 November 2023
Slide 2: Important Information and Disclaimer
NOT FOR DISTRIBUTION IN OR INTO THE UNITED STATES IMPORTANT INFORMATION AND DISCLAIMER About Bowen Coking Coal (‘BCB’) Forward-Looking Statements Bowen Coking Coal Limited (BCB or Bowen) is a Queensland based coking coal company which operates the Certain statements made in this document contain or
Slide 3: Important Information and Disclaimer
NOT FOR DISTRIBUTION IN OR INTO THE UNITED STATES IMPORTANT INFORMATION AND DISCLAIMER BCB confirms in accordance with Listing Rule 5.19.2 that all material assumptions underpinning the Listing Rule 5.23 and 5.19.2 Statements production targets and corresponding forecast financial information derive
Slide 4: Not Financial Product Advice
NOT FOR DISTRIBUTION IN OR INTO THE UNITED STATES IMPORTANT INFORMATION AND DISCLAIMER (i) F (ii) F Not Financial Product Advice (iii) do not make any representation or warranty, express or implied, as to (and disclaim any responsibility for) the accuracy, reliability, completeness or fairness of th
Slide 5: Executive Summary
NOT FOR DISTRIBUTION IN OR INTO THE UNITED STATES Executive Summary Bowen achieved record run-of-mine (ROM) production in Q1 FY24 of 640Kt Record production in Q1 FY24 Total coal sales of 545Kt was up 17.1% on the previous quarter Commenced production at Ellensfield South Strong focus on opera
Slide 6: Equity Raising
NOT FOR DISTRIBUTION IN OR INTO THE UNITED STATES Equity Raising Overview Sources and uses Equity raising of $50 million comprised of: Sources $m – $17 million fully underwritten Institutional Placement (“Placement”) Placement $16.8m – $33 million fully underwritten accelerated 1-for-6 pro-rata no
Slide 7: Bowen Overview
NOT FOR DISTRIBUTION IN OR INTO THE UNITED STATES Bowen Overview 7
Slide 8: Key Highlights
NOT FOR DISTRIBUTION IN OR INTO THE UNITED STATES Key Highlights Moved into production from exploration Burton Mine Complex reopening Launched Burton CHPP Module 1 1.7 million tonnes (Mt) of ROM coal produced Iconic Burton Mine Complex reopened in May 2023 2.75Mtpa processing Capacity 0.8Mt of sales
Slide 9: Q1 FY24 Quarterly Highlights – first coking sales
NOT FOR DISTRIBUTION IN OR INTO THE UNITED STATES Q1 FY24 Quarterly Highlights – first coking sales Quarterly Bowen Coking Coal production, sales and stock volumes Managed production (unaudited) Quarter Quarter Change Year to date Year to date Sep-23 Jun-23 % Sep-23 Sep-22 ROM coal produced Kt 640.3
Slide 10: Q1 FY24 Cash Flow Performance
NOT FOR DISTRIBUTION IN OR INTO THE UNITED STATES Q1 FY24 Cash Flow Performance Net cash flow of $5M reduction during the quarter reflects continued investment in Ellensfield South AUD millions Burton Complex positive operating cash flows reflect first coking sales from BME Operating cash flows
Slide 11: Bowen Achieved Significant Milestones to Become a Producer
NOT FOR DISTRIBUTION IN OR INTO THE UNITED STATES Bowen Achieved Significant Milestones to Become a Producer Transforming from explorer, developer to producer Milestones Transformed from explorer to producer with Bluff and Burton Complex reopening Strategic infrastructure (centrally located) ref
Slide 12: Operational Update – sharpening the focus on our long-life, low-cost Burton complex
NOT FOR DISTRIBUTION IN OR INTO THE UNITED STATES Operational Update – sharpening the focus on our long-life, low-cost Burton complex Bowen took strong steps to right size the business and reduce costs during Q1 FY24 Broadmeadow East Ellensfield South Pit Bluff • In Q1 FY24 BME was transitioned back
Slide 13: Operational Transformation – reducing costs and delivering value
NOT FOR DISTRIBUTION IN OR INTO THE UNITED STATES Operational Transformation – reducing costs and delivering value Demonstrated agility in the face of continued cash constraints External Factors impacting Bowen Production costs impacted by market and industry inflationary pressures through rising
Slide 14: Long life of mine at Burton Complex with established infrastructure
NOT FOR DISTRIBUTION IN OR INTO THE UNITED STATES Long life of mine at Burton Complex with established infrastructure and train loadout facility Key production targets Burton Complex Burton* / Broadmeadow Particulars Total Lenton East Life of Mine 8 – 13 years 3 – 4 years ~14 years6 Resources 204Mt1
Slide 15: FY24 Guidance and Production Overview
NOT FOR DISTRIBUTION IN OR INTO THE UNITED STATES FY24 Guidance and Production Overview FY24 Guidance from ongoing operations1 Key highlights Item Unit FY24 BCB plans to target a long term Burton Complex FOB cost2 of A$135/t - $145/t (ex royalties) from FY25 reflecting the transition to steady sta
Slide 16: Burton Complex 5-year Production Plan – optionality to increase volumes
NOT FOR DISTRIBUTION IN OR INTO THE UNITED STATES Burton Complex 5-year Production Plan – optionality to increase volumes Single Module case and Module 2 expansion case (ROM, Mt) Expansion projects enabling capex1 Investment decision option Increase to 5.5Mtpa with Second Module CHPP1 Initial expans
Slide 17: The Burton Complex – 342Mt of JORC Resources around a central processing hub
NOT FOR DISTRIBUTION IN OR INTO THE UNITED STATES The Burton Complex – 342Mt1 of JORC Resources around a central processing hub Leverage already established Burton Complex infrastructure, Hillalong close proximity to Burton CHPP Located on the north-west corner of the Burton ML70109 Lenton Wil
Slide 18: Portfolio of assets near Burton hub provides significant growth options
NOT FOR DISTRIBUTION IN OR INTO THE UNITED STATES Portfolio of assets near Burton hub provides significant growth options Indicative Timeframe Status Production FY24 FY25 FY26 FY27 FY28 FY29 FY30 FY31-35 / Size Broadmeadow Approved 3.1Mt of Reserves1 East Active Ellensfield Approved Part of Burton R
Slide 19: Global coal consumption has climbed to a new all-time high
NOT FOR DISTRIBUTION IN OR INTO THE UNITED STATES Global coal consumption has climbed to a new all-time high and expected to stay at an elevated level led by strong growth in Asia Pricing (US$/T, nominal)1 Metallurgical coal is essential for steel making and global decarbonisation Growing demand: 70
Slide 20: Marketing – Firm interest received from Tier end users in the major markets
NOT FOR DISTRIBUTION IN OR INTO THE UNITED STATES Marketing – Firm interest received from Tier 1 end users in the major markets Target term contract customers EUROPE KOREA JAPAN TAIWAN SOUTH AMERICA INDIA BRAZIL ARGENTINA Bowen Coking Coal is seeing strong demand as we reestablish the highly regarde
Slide 21: Financing Update
NOT FOR DISTRIBUTION IN OR INTO THE UNITED STATES Financing Update Revised debt terms executed 29 September 2023 Completion of senior and subordinated facility amendments, 12-month deferral of principal loan repayments and extension of tenor – Deferment of principal amortisation for the next 12 mo
Slide 22: Corporate Snapshot
NOT FOR DISTRIBUTION IN OR INTO THE UNITED STATES Corporate Snapshot Summary Board and Management Share Price: A$0.110 Market Capitalisation: A$243.45m as at 1 November 2023 as at 1 November 2023 Nicholas Jorss Mark Ruston 52 week range: $0.076 to $0.348 Executive Chief Executive Chairman Officer Sh
Slide 23: Equity Raising
NOT FOR DISTRIBUTION IN OR INTO THE UNITED STATES Equity Raising 23
Slide 24: Offer Details
NOT FOR DISTRIBUTION IN OR INTO THE UNITED STATES Offer Details Fully underwritten institutional placement (“Institutional Placement”) and 1-for-6 accelerated non-renounceable entitlement offer to raise gross proceeds of $33 million Offer structure (“Entitlement Offer,” together with the Instituti
Slide 25: Key Dates
NOT FOR DISTRIBUTION IN OR INTO THE UNITED STATES Key Dates Indicative Timetable* Equity Raising announced and investor presentation lodged to the ASX Thursday, 2 November 2023 Institutional Entitlement Offer and Placement opens Thursday, 2 November 2023 Results of Institutional Entitlement Offer an
Slide 26: Key Risks
NOT FOR DISTRIBUTION IN OR INTO THE UNITED STATES Key Risks 26
Slide 27: Risks
NOT FOR DISTRIBUTION IN OR INTO THE UNITED STATES Risks You should be aware that an investment in New Shares involves various risks. This section sets out some of the key risks associated with an investment in New Shares. A number of risks and uncertainties, which are both specific to BCB, and of a
Slide 28: Risks continued
NOT FOR DISTRIBUTION IN OR INTO THE UNITED STATES Risks continued Risk Business risks Occupational BCB’s operations are subject to a variety of industry specific health and safety laws and regulations which are formulated to improve and to protect the safety health and safety and health of employees
Slide 29: Risks continued
NOT FOR DISTRIBUTION IN OR INTO THE UNITED STATES Risks continued Risk Business risks Geological Mineral resource and ore reserve estimates are a subjective process based on drilling results, past experience with mining properties and modifying factors, knowledge, industry practice and many other fa
Slide 30: Risks continued
NOT FOR DISTRIBUTION IN OR INTO THE UNITED STATES Risks continued Risk Business risks Insurance BCB’s business is subject to a number of risks and hazards generally that could result in damage to mining or production facilities, personnel injury or death, environmental damage to BCB’s properties and
Slide 31: Risks continued
NOT FOR DISTRIBUTION IN OR INTO THE UNITED STATES Risks continued Risk Business risks Personnel risk BCB’s operations rely on the ability to attract and retain skilled labour. BCB manages this risk through working with the major service providers to set pay levels close to market, improving site cul
Slide 32: Risks continued
NOT FOR DISTRIBUTION IN OR INTO THE UNITED STATES Risks continued Risk Entitlement Offer, Underwriting and General Investment Risks Offer and There is a risk that the amount of proceeds that may be raised by BCB may be adversely impacted by one or more events which may or may not be within the under
Slide 33: Risks continued
NOT FOR DISTRIBUTION IN OR INTO THE UNITED STATES Risks continued Risk General Investment Risks Liquidity risk BCB shareholders who wish to sell their BCB shares may be unable to do so at an acceptable price, or at all, if insufficient liquidity exists in the market for BCB shares. BCB does not guar
Slide 34: Important Notices and Disclaimer
NOT FOR DISTRIBUTION IN OR INTO THE UNITED STATES Important Notices and Disclaimer 34
Slide 35: Important Notices and Disclaimer
NOT FOR DISTRIBUTION IN OR INTO THE UNITED STATES Important Notices and Disclaimer This document does not constitute an offer of New Shares of the Company in any jurisdiction in which it would be unlawful. In particular, this document may not be distributed to any person, and the New Shares may not
Slide 36: Important Notices and Disclaimer
NOT FOR DISTRIBUTION IN OR INTO THE UNITED STATES Important Notices and Disclaimer New Zealand This document has not been registered, filed with or approved by any New Zealand regulatory authority under the Financial Markets Conduct Act 2013 (the “FMC Act”). The New Shares are not being offered to t
Slide 37: Important Notices and Disclaimer
NOT FOR DISTRIBUTION IN OR INTO THE UNITED STATES Important Notices and Disclaimer Switzerland The New Shares may not be publicly offered in Switzerland and will not be listed on the SIX Swiss Exchange or on any other stock exchange or regulated trading facility in Switzerland. Neither this document
Slide 38: Important Notices and Disclaimer
NOT FOR DISTRIBUTION IN OR INTO THE UNITED STATES Important Notices and Disclaimer United States This document may not be distributed or released in the United States. This document does not constitute an offer to sell, or a solicitation of an offer to buy, any securities in the United States or any
Slide 39: Underwriting Agreement
NOT FOR DISTRIBUTION IN OR INTO THE UNITED STATES Underwriting Agreement 39
Slide 40: Underwriting Agreement
NOT FOR DISTRIBUTION IN OR INTO THE UNITED STATES Underwriting Agreement Key terms of the Underwriting Agreement Each Underwriter’s obligations under the Underwriting Agreement, including to underwrite and manage the Placement and Entitlement Offer, are conditional on certain matters, including (but
Slide 41: Underwriting Agreement
NOT FOR DISTRIBUTION IN OR INTO THE UNITED STATES Underwriting Agreement • there are delays in the timetable for the Entitlement Offer and the Placement for more than one business day without consent; • except where already disclosed to ASX prior to the date of the Underwriting Agreement or where di
Slide 42: Underwriting Agreement
NOT FOR DISTRIBUTION IN OR INTO THE UNITED STATES Underwriting Agreement The ability of an Underwriter to terminate the Underwriting Agreement in respect of some events will depend on whether the Underwriter has reasonable grounds to believe and determines in good faith that the event: a) has or cou
Slide 43: Appendices
NOT FOR DISTRIBUTION IN OR INTO THE UNITED STATES Appendices 43
Slide 44: Bluff Mine Care and Maintenance
NOT FOR DISTRIBUTION IN OR INTO THE UNITED STATES Bluff Mine Care and Maintenance At the Bluff Mine, 482Kt of ROM coal and 327Kt of saleable coal was produced during FY23 despite production being hampered by extraordinary wet weather over the summer months Bowen continued working with the mining
Slide 45: BCB Portfolio Overview
NOT FOR DISTRIBUTION IN OR INTO THE UNITED STATES BCB Portfolio Overview 45 At 2 November 2023
Slide 46: Resources and Reserves
NOT FOR DISTRIBUTION IN OR INTO THE UNITED STATES Resources and Reserves Reserves supporting the Production Targets (Mt)1,2 Proven Probable Total BCB Ownership Broadmeadow East 2.6 0.5 3.1 100% Burton & Lenton 26.6 8 35 90% Resources supporting the Production Targets (Mt)1,2 Measured Indicated Infer
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