Terracom Limited · ASX:TER
Terracom — Guildford Coal — Investor Presentation (October 2012)
28 slides from Terracom's investor presentation, Oct 10, 2012
Slide 1: Investor Presentation
Investor Presentation Differentiating through low cost metallurgical coal production and margin generation from Mongolia 10 October 2012
Slide 2: Cautionary Statement
2 CAUTIONARY STATEMENT The information contained in this document (Presentation) has been prepared by Guildford Coal Limited (Company). This Presentation does not constitute an offer or invitation to any person to subscribe for or apply for any securities in the Company. This Presentation contains s
Slide 3: Competent Persons Statement
3 Competent Persons Statement # Exploration Target References to Exploration Targets in this document are in accordance with the guidelines of the JORC Code (2004). As such it is important to note that in relation to reported Exploration Targets any references to quality and quantity are conceptual
Slide 4: Agenda
4 Agenda 1 Executive Summary 2 Guildford Coal in Mongolia 3 Guildford Coal in Australia 4 Summary of the Guildford Coal Investment Proposition A Table of Resources
Slide 5: Executive Summary
5 1 Executive Summary
Slide 6: Executive Summary
6 Executive Summary • Guildford has two independent divisions; Queensland and Mongolia • Large proven resource in excess of 2 billion tonnes of thermal and coking coal across multiple projects • Substantial Exploration upside with a further estimated Exploration Target# of 0.975Bt to 8.893Bt across
Slide 7: Board of Directors
7 Board of Directors Hon. Peter Lindsay Independent Chairman Peter served as a member of the Australian Liberal Party for more then 25 years. Peter was first elected to the Townsville City Council in 1985 and served five terms undefeated. In 1996 he was elected to the Australian Parliament and again
Slide 8: Board of Directors (continued)
8 Board of Directors (continued) Louis Chait Chief Financial Officer, Director and Joint Company Secretary Louis has an accounting and mining background, and previously worked for a blue chip coal mining company for over a decade, where he held several senior executive finance and management positio
Slide 9: Corporate Snapshot
9 Corporate Snapshot Capital Structure Share Price Chart ASX Code GUF 1.40 16.0 Listed on ASX 22 July 2010 1.20 Shares on Issue 521.0m 12.0 Volume traded (m) 1.00 Share Price (03 Oct) A$0.46 A$/sh 0.80 8.0 Market Cap A$240m 0.60 4.0 Options on Issue Nil 0.40 Cash (30 Jun 2012) A$14.0m 0.20 0.0 Sep-1
Slide 10: Corporate Overview
10 Corporate Overview Mongolia • Interests in Mongolia are held through 75% owned subsidiary, Terra Energy1 • Coal projects located in the South Gobi and Mid Gobi coal basins which contain coking and thermal coals respectively • South Gobi Project • Situated approximately 60km from the Chinese borde
Slide 11: Guildford Coal in Mongolia
11 2 Guildford Coal in Mongolia
Slide 12: Overview of Mongolian Coal
12 Overview of Mongolian Coal Mongolia is a natural long term supplier of coking coal into the Chinese market Significantly increasing market share of Chinese coal imports Geographical location favours minimum transportation cost to end-user One of the best remaining global raw coal resource o
Slide 13: Mongolian Coal Transactions
13 Mongolian Coal Transactions Recently announced transactions have demonstrated strong strategic interest in Mongolia Low capital and operating cost structure and proximity to Chinese market viewed as attractive for investment relative to other mining jurisdictions Transaction Date Acquirer Tar
Slide 14: Location of Mongolian Projects
14 Location of Mongolian Projects
Slide 15: South Gobi Project— Cost Effective Brown Field Expansion
15 South Gobi Project— Cost Effective Brown Field Expansion North Pit 70.4Mt JORC Resource 14Mt to 73Mt Exploration Target# Central Pit 56Mt to 279Mt Exploration Target# East Pit 56Mt to 241Mt Exploration Target# West Pit 0 to 300Mt Exploration Target#
Slide 16: South Gobi Project – North Pit
16 South Gobi Project – North Pit Mining contractor engaged for development of the complex with mobilisation and construction commenced First coal production forecast for late November 2012 Initial production target expected to be in excess of 3Mt in first year of operations Mining costs est
Slide 17: South Gobi Project – East Pit
17 South Gobi Project – East Pit Excellent progress has been made towards the evaluation and progression of the East Pit which is the potential second pit to be developed in the South Gobi Project: Exploration Independent geologists (MDM) had previously developed an Exploration Target# that cove
Slide 18: South Gobi Project – East Pit
18 South Gobi Project – East Pit Mining Contractor Negotiations with contractors have progressed with a number of potential contractors who have equipment and operators available ready to deploy upon reaching agreement on contract terms Coal Quality Preliminary raw coal quality results are p
Slide 19: South Gobi Project – Multi Pit Infrastructure Layout
19 South Gobi Project – Multi Pit Infrastructure Layout
Slide 20: Guildford Coal in Australia
20 3 Guildford Coal in Australia
Slide 21: Queensland—Project Snapshot
21 Queensland—Project Snapshot Summary of Portfolio Estimated 20,000km2 of exploration tenements located across Queensland’s major coal bearing basins including: Guildford - Bowen Queensland - Galilee Projects - Maryborough Target Coal Products - Hard Coking - Thermal - PCI Priority Projects - Hughe
Slide 22: Queensland—Goals for 2012
22 Queensland—Goals for 2012 Drilling on all projects has scaled down to 2 drills with the remaining units to complete drilling on White Mountain Project and Springsure Project before the onset of Wet Season Complete the feasibility on the Hughenden Coal Project transport (ARG/QR) and shipping solut
Slide 23: Summary of the Guildford Coal Investment Proposition
23 4 Summary of the Guildford Coal Investment Proposition
Slide 24: Summary of the Guildford Coal Investment Proposition
24 Summary of the Guildford Coal Investment Proposition 1 South Gobi Project: material near-term production and cash flows expected 2 Multiple, high quality, low cost brown field expansion opportunities at South Gobi Project Expected lowest quartile cash costs and forecast production of coking coal
Slide 25: Differentiating through Cash Flow
25 Differentiating through Cash Flow Guildford holds a number of key advantages over its 4,000 ASX listed peers • Proximity to market and infrastructure solutions in place for priority projects in Mongolia and 3,000 Queensland • Low capital intensity options for brown field Market cap (A$m) expansio
Slide 26: Thank you
GUILDFORD
Slide 27: A Table of Resources
27 A Table of Resources
Slide 28: Appendix A - Mineral Resource Summary
28 APPENDIX A - MINERAL RESOURCE SUMMARY JORC Resources Exploration Target# (Mt) (Mt) Potential Coal Independent Guildford Coal Type Geologist Measured Indicated Inferred Total Lower Upper Hughenden* 123.6 1,495.4 1,619 285 2830 Thermal MDM Pentland% 295 2890 Thermal MDM White Mountain@ 262 262 40 8
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