INTERIM RESULTS PRESENTATION 29 November 2012 Disclaimer Opinions - - PowerPoint PPT Presentation

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INTERIM RESULTS PRESENTATION 29 November 2012 Disclaimer Opinions - - PowerPoint PPT Presentation

Feb 10, 2024 102 likes •312 views

INTERIM RESULTS PRESENTATION 29 November 2012 Disclaimer Opinions expressed herein are by nature subjective to known and unknown risks and uncertainties. Changing information or circumstances may cause the actual results, plans and objectives

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29 November 2012

INTERIM RESULTS PRESENTATION

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SLIDE 2

Disclaimer

Opinions expressed herein are by nature subjective to known and unknown risks and uncertainties. Changing information or circumstances may cause the actual results, plans and objectives of Keaton Energy Holdings Ltd (the “Company”) to differ materially from those expressed or implied in the forward looking statements. Financial forecasts and data given herein are estimates based on the reports prepared by experts who in turn relied on management estimates. Undue reliance should not be placed on such opinions, forecasts or data. No representation is made as to the completeness or correctness of the opinions, forecasts or data contained

  • herein. Neither the Company, nor any of its affiliates, advisors or representatives accepts any responsibility for

any loss arising from the use of any opinion expressed or forecast or data herein. Forward-looking statements apply only as of the date on which they are made and the Company does not undertake any obligation to publicly update or revise any of its opinions or forward looking statements whether to reflect new data or future events or circumstances. 2

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SLIDE 3

Salient Features

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» Financial » Revenue 255% 17% » Operating profit/loss (273%) (375%) » HEPS (351%) (1 723%) » Operations » Production » Power Station 211% 12% » Metallurgical 94% 55% » Sales » Power Station 222% 2% » Metallurgical 84% 11% 1H FY13 vs. 1H FY12 1H FY13 vs. 2H FY12

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SLIDE 4

Safety

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Vanggatfontein LTIFR Vaalkrantz LTIFR » 1 281 706 Fatality Free Shifts » 2 477 Fatality Free Production Shifts » 6 698 347 Fatality Free Shifts » 5 311 Fatality Free Production Shifts

0.00 0.00 0.38 0.20 2H11 1H12 2H12 1H13 0.00 0.44 0.45 0.45 2H11 1H12 2H12 1H13

Lost Time Injury Frequency Rate (LTIFR)

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SLIDE 5

Group ROM Production (t’000)

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Total Power Station Coal Metallurgical Coal

146 155 62 16 132 285 1H11 2H11 1H12 2H12 1H13 Vanggatfontein Vaalkrantz 146 639 1 539 1 806 1H11 2H11 1H12 2H12 1H13

  • 484

1 345 1 505 1H11 2H11 1H12 2H12 1H13

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SLIDE 6

Group Sales (t’000)

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Total Power Station Coal Metallurgical Coal

48 328 890 920 1H11 2H11 1H12 2H12 1H13

  • 229

726 738 1H11 2H11 1H12 2H12 1H13 48 99 41 31 123 151 1H11 2H11 1H12 2H12 1H13 Vanggatfontein Vaalkrantz

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SLIDE 7

Group Revenue (Rm)

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  • 35

132 343 417 1H11 2H11 1H12 2H12 1H13

Total Power Station Coal Metallurgical Coal

  • 62

220 261 1H11 2H11 1H12 2H12 1H13

  • 35

70 30 23 93 133 1H11 2H11 1H12 2H12 1H13 Vanggatfontein Vaalkrantz

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SLIDE 8

Contribution to Revenue (Rm)

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62 220 261 35 70 30 23 93 133

1H11 2H11 1H12 2H12 1H13 Power Station 5 seam Anthracite

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SLIDE 9

SA Coal Demand

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50 100 150 200 250 300 350 400 450 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Million tonnes Exports Domestic Sasol Eskom - Tied Eskom - Spot Eskom - New Build Other Generation Forecast

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Vanggatfontein Colliery

» New mining contractor appointed June » Record ROM production August » R119m damages claim initiated against Megacube Mining » Construction of new discard facility completed August » Development of Pit 3 commenced September » 1st 5 seam from Pit 3 delivered October » Coal Delivery 1H FY13: » 738 498t to Eskom » 31 272t 5-seam

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1H FY13 2H FY12 1H FY12 Waste km³ 4 127 3 938 3 209 ROM kt 1 520 1 479 713 Strip Ratio 2.72 2.66 4.50 Saleable kt 821 741 384 Reserves Mt 32 32 On-mine cash cost/ROM ton (R/t) 115 110 202 Capital spent Rm 56.7 154.0 156.6 Employees and contractors 473 612 398 Key indicators

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SLIDE 11

Accelerating Demand for Metallurgical Coal

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Vaalkrantz Colliery

» Record Gus production August » Lining of Pollution Control Dam completed » Coal delivery 1H FY13 » 53 445t export sales » 97 873t domestic sales » Record production October » Investment in underground mining equipment » Challenging geological conditions in West Alfred » Demand continues to exceed supply

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1H FY13 2H FY12 1H FY12 ROM kt 285 266 293 Saleable kt 162 176 175 Reserves Mt 2.50 3.00 On-mine cash cost/ROM ton R/t 340 344 357 Capital spent Rm 5.3 3.2 - Number of Employees

  • incl. Contractors

767 723 719 Key indicators

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SLIDE 13

Vaalkrantz Anthracite Prices

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200 300 400 500 600 700 800 900

(12-month moving average across all size fractions and qualities) R/t

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SLIDE 14

Financial Overview

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R' million 1HFY13 2HFY12 Re-presented % Change 1HFY13 vs 2HFY12 1HFY12 Re-presented % Change 1HFY13 vs 1HFY12 Extracts from statement of comprehensive income Revenue 417 357 17% 118 255% Gross (loss)/profit (38) (8) (375%) 22 (273%) Gain on business combination

  • 114 (100%) - -

Operating (loss)/profit before net finance (cost)/income (70) 108 (165%) 11 (736%) Income taxation credit/(expense) 19 9 111% (3) 733% Total comprehensive income for the period (64) 104 (162%) 8 (900%) Attributable to owners of the company (40) 118 (134%) 14 (386%) Earnings per share (cents) (21.0) 66.9 (131%) 8.4 (350%) Headline Earnings per share (cents) (21.1) 1.3 (1 723%) 8.4 (351%) Extracts from statement of financial position Property, plant and equipment 773 833 (7%) 636 22% Inventory 64 23 178% 10 540% Borrowings (280) (297) 6% (207) (35%) Extracts from statement of cash flows Cash generated by operations 63 90 (30%) 40 58%

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SLIDE 15

Gross Loss 1H FY13

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» Sales of R31 million deferred to 2H FY2013 due to transport strike » Expected decline in 5-seam production and sales in pit 1 » Poor performance by original mining contractor at Vanggatfontein » Poor geological conditions at Vaalkrantz » Increased depreciation charges of R35m before tax as a result of the early adoption of an accounting interpretation (IFRIC 20)

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Normalised Earnings

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R' million 1H FY13 2H FY12 Re-presented % Change 1H FY13 vs 2H FY12 1H FY12 Re-presented % Change 1H FY13 vs 1H FY12 Operating (loss)/profit before net finance (cost)/income (70) 108 (165%) 11 (736%) Adjusted for: Gain on business combination

  • (114)

(100%)

  • #DIV/0!

Loans acquired at a discount through business combination 1 (15) (107%)

  • Normalised earnings

(69) (21) (229%) 11 (727%)

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SLIDE 17

Capital Expenditure

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R' million 1H FY13 2H FY12 Re-presented² % Change 1H FY13 vs 2H FY12 1H FY12 Re-presented % Change 2H FY12 vs 1H FY12 Mine development 58 100 (42%) 114 (12%) Mine Infrastructure 13 4 225% 35 (89%) Plant and Equipment 2 5 (60%) 2 150% Rehabilitation asset (16) 15 (207%) 29 (48%) Other¹ 5 (1) 600% 4 (125%) 62 123 (50%) 184 (33%)

⁽¹⁾ Includes Land and buildings, furniture and equipment and other small assets ⁽²⁾ Excludes property, plant and equipment acquired through the business combination

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SLIDE 18

Net (Debt)/Cash Movement (Rm)

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  • 253
  • 78
  • 9
  • 7
  • 14
  • 1
  • 78
  • 3
  • 237
  • 300
  • 250
  • 200
  • 150
  • 100
  • 50
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SLIDE 19

The Future….

» Stable operations » Consolidate and increase production at Vaalkrantz » Develop / acquire life of mine extensions for Vaalkrantz » Take advantage of ever increasing Eskom demand by: » Optimisation at Vanggatfontein » Completion of Pit 3 » Improve yields and plant availability to increase volumes » Investigate potential expansion on remainder of property » Evaluate extensions » Initiate development of Braakfontein and Sterkfontein » Seek value accretive acquisitions » Move towards paying dividends as we emerge as a mid-tier coal producer

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