RESOURCE INDUSTRY NETWORK PRESENTATION
2 AUGUST 2019
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RESOURCE INDUSTRY NETWORK PRESENTATION 2 AUGUST 2019 1 - - PowerPoint PPT Presentation
RESOURCE INDUSTRY NETWORK PRESENTATION 2 AUGUST 2019 1 Important information This document has been prepared by Stanmore and needs and seek appropriate advice, earnings and estimates are provided as a Coal Limited (Stanmore Coal) for
2 AUGUST 2019
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This document has been prepared by Stanmore Coal Limited (“Stanmore Coal”) for the purpose
to interested analysts/investors. None of Stanmore Coal, nor any of its related bodies corporate, their respective directors, partners, employees or advisers or any other person (“Relevant Parties”) makes any representations
accuracy, reliability or completeness of the information contained in this document, to the recipient of this document (“Recipient”), and nothing contained in it is, or may be relied upon as, a promise or representation, whether as to the past or future. The information in this document does not purport to be complete nor does it contain all the information that would be required in a disclosure statement or prospectus prepared in accordance with the Corporations Act 2001 (Commonwealth). It should be read in conjunction with Stanmore’s other periodic and continuous disclosure announcements lodged with the Australian Securities Exchange, which are available at www.asx.com.au. This document is not a recommendation to acquire Stanmore Coal shares and has been prepared without taking into account the
decision prospective investors should consider the appropriateness of the information having regard to their own objectives, financial situation and needs and seek appropriate advice, including financial, legal and taxation advice appropriate to their jurisdiction. Except to the extent prohibited by law, the Relevant Parties disclaim all liability that may otherwise arise due to any of this information being inaccurate or
Recipient releases the Relevant Parties from liability to the Recipient for any loss or damage that it may suffer or incur arising directly or indirectly out of or in connection with any use of
such liability arises in contract, tort (including negligence) or otherwise. This document contains certain “forward-looking statements”. The words “forecast”, “estimate”, “like”, “anticipate”, “project”, “opinion”, “should”, “could”, “may”, “target” and other similar expressions are intended to identify forward looking statements. Indications of, and guidance
performance are also forward-looking
undue reliance on forward looking statements. Although due care and attention has been used in the preparation of forward looking statements, such statements, opinions and estimates are based on assumptions and contingencies that are subject to change without notice, as are statements about market and industry trends, which are based on interpretations of current market conditions. Forward looking statements including projections, guidance on future earnings and estimates are provided as a general guide only and should not be relied upon as an indication or guarantee of future performance. Recipients of the document must make their own independent investigations, consideration and
Recipient agrees that if it proceeds further with its investigations, consideration or evaluation of investing in the company it will make and rely solely upon its own investigations and inquiries and will not in any way rely upon this document. This document is not and should not be considered to form any offer or an invitation to acquire Stanmore Coal shares or any other financial products, and neither this document nor any of its contents will form the basis of any contract or commitment. In particular, this document does not constitute any part of any
any securities in the United States or to, or for the account or benefit of any “US person” as defined in Regulation S under the US Securities Act of 1993 (“Securities Act”). Stanmore Coal shares have not been, and will not be, registered under the Securities Act or the securities laws of any state or other jurisdiction of the United States, and may not be offered or sold in the United States or to any US person without being so registered or pursuant to an exemption from registration.
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3 Independent Australian coal company Positionedpredominantly in metallurgical coal with a track record of delivery Isaac Plains Complex expansion operationalwith demonstrated performance Validation that the company can source, develop, operate and rehabilitate coal resources Isaac Plains Complex represents thecompany’s platformasset Certainty in near-term growth underpinned by existing capacity and low capital incremental growth options delivering competitive cost structures and long mine lives The ‘combined effect’ driving certainty in delivering returns to shareholders The combination of the operating performance, a disciplined investment pipeline and the foundation of a fully prepared company drives focus on costs / margin / cash generation
SHARE OWNERSHIP ASX CODE SHARE PRICE
SHARES
MARKET CAP
Golden Energy & Resources Corporate Institutions Employees and Directors Private & Other 3
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WIGGINS ISLAND COAL EXPORT TERMINAL ABBOT POINT DALRYMPLE BAY COAL TERMINAL MACKAY ROCKHAMPTON GLADSTONE WANDOAN BOWEN MOURA BLACKWATER
TENNYSON THE RANGE LILYVALE MACKENZIE BELVIEW
MDL135/137
MORANBAH
EPC2157 EPC1687 EPC1168 EPC2081 EPC1186 EPC1114 EPC1580
EMERALD
EPC1276
TAROOM
CLIFFORD
EPC1274 EPC1112 EPC2030
ISAAC PLAINS COMPLEX
THIS MAP
TOWNSVILLE ROCKHAMPTON BRISBANE
Industry Rail paths SMR rail path Projects/tenements Operating asset
RAIL
Logistics to port matching IPC Infrastructure
PORT
Path to Market Secured
year term and ‘evergreen’ rights
Operations and Projects
Foundations in Metallurgical Coal
capacity of 3.5Mt ROM (approx. 2.5Mt product)
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Operations
1.2Mt rate
completed 2018 taking production to 2.4Mt product FY19
Region
Development / Projects
approvals underway
into semi-hard coking coal
Infrastructure / Equipment
infrastructure areas with 3.5Mt ROM capacity
ROM 4km ISAACRIVER N Legend Drainage Major roads Minor roads Railway Stanmore ML Stanmore MDL Stanmore EPC
ISAACPLAINS MINE ISAACPLAINS EASTMINE ISAACPLAINS SOUTH ISAAC DOWNS
EPC728 EPC755 EPC755 ML 70342 ML 700019 ML 700018 ML 700017 ML 700016 MDL 137
ISAAC PLAINS COMPLEX
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EUROPE CHINA JAPAN KOREA S.EASIA INDIA Coking Thermal
Diverse Blue Chip Customer Base Leveraged to metallurgical coal
Japan / Korea
diversity expanding into Europe and India
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OPERATINGPERFORMANCEIN WHAT COUNTS
Saleable Production
Saleable Production
Source ROM coal with discipline
Maximise the ‘combined effect’
increased CHPP feed capacity up to potentially 7Mt ROM
footprint giving superior IRR’s in the current climate
Equipment performance Engineered
Operations leadership
2019 - 2020 2021 - 2022
Fully prepared company
effect
the cycle
PROJECT / INVESTMENT PIPELINE – SOURCE ROM COAL PIPELINE WITH DISCIPLINE COAL QUALITY | COST STRUCTURE | STRIPRATIO
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From creating certainty in outcomes and returns to sourcing further ROM coal and preparing the company for the next stage
the SSCC spot price over the same period
metallurgical coal and coke production rationalisation has held pricing up
0.00 0.20 0.40 0.60 0.80 1.00 1.20 1.40 1.60 50 100 150 200 250 300 350 Jan-2015 Jan-2016 Jan-2017 Jan-2018 Jan-2019 Share price ($) US$/tonne
Share Price
Hard Coking Coal SMR share price 50 100 150 200 250 300 350 Jan-2015 Jan-2016 Jan-2017 Jan-2018 Jan-2019 US$/tonne
Coal Type Price
Hard Coking Coal Semi-soft Coking Coal Thermal Coal
Semi-soft Benchmark Summary (US$/t, Financial Year) Q1-19 Q2-19 Q3-19 Q4-19 Forward looking 137 130 131 126.5 Index based (backward looking) 129 136 130 TBA
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PRINCIPAL CONTRACT OVERVIEW
▪ Stanmore’s contracting arrangement means that the payment for all site services is between Stanmore and Golding (including those performed by sub-contractors of Golding) ▪ Golding has been appointed the Coal Mine Operator and then appoints the SSE. The site is operated under the Golding SHMS ▪ Golding is paid on a basis which requires the contractor to assume certain efficiency and operational risks to execute the agreed mine plan ▪ Blast rates ($/bcm) ▪ Overburden rates ($/bcm). Golding operate and maintain Stanmore’s dragline (and Cat6060 excavator) as part of their
▪ Coal mining rate ($/bcm) covering mining and transport to the CHPP utilising Golding mining fleet ▪ Processing rate ($/feed t) covering operation and maintenance of the CHPP and TLO ▪ The contract provides Stanmore with various protections in order for Stanmore to manage certain fixed costs that are necessary to run the mine which include incentives and penalties to encourage maximisation of coal recovery ▪ Stanmore maintain responsibility for Major Maintenance and Environmental Compliance
Golding Mining Operation Action DB Drill & Blast Golding CHPP Operation
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MINING EQUIPMENT ▪ Golding is contracted to perform all mining activities
and maintain Stanmore supplied assets (e.g. Dragline, Cat6060 Excavator & CHPP) ▪ Golding is also responsible for subcontracting additional services (e.g. drill/blast, planned maintenance)
Equipment Item Make/Model Provider Number Dragline (Cat) BE1370 Stanmore 1 Excavator – O/B 600t Cat 6060 Stanmore 1 Excavator – O/B 500t Hitachi EX5500 Golding 1 Excavator – O/B and Coal 350t Hitachi EX3600 Golding 1 Excavator – Coal 250t Komatsu PC3000 Golding 1 Excavator – Services 120t Hitachi EX1200 Golding 2 Truck – Overburden 220t Cat 793F Golding 5 Truck – Overburden 220t Cat 793C Golding 4 Truck – Overburden 190t Komatsu 730E Golding 8 Truck – O/B and Coal 160t Hitachi EH3500 Golding 5 Truck – Rejects and Topsoil 85t Cat 777 Golding 5 Drill – O/B 270mm Atlas Copco Action D&B 2 Dozer Cat D11 Golding 7 Dozer Cat D10 Golding 4 Grader 16H and 16M Golding 4 Water Truck 85,000l Cat 777 Golding 3 Loader Cat 992 Golding 1 Loader Cat 988 Golding 1
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Flood Protection Safety
Rehabilitation and Monitoring
Environment
Community
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15 Each Month Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 TOTAL Budget % Completed Disturbed
14.64 2.72 65.5 25.04 25.9 29.87 51.09 23.35 10.83 53.3 16.46 318.7
Recontoured
11.71 25.84 15.36 6.35 20.65 12.74 6.41 13.77 22.86 14.49 150.18 146 103%
Topsoiled
6.04 37.23 1.24 2.01 1.43 12.05 4 64
Re-Seeded
20 41 19 16 96
Seeded
8 40 49 8 4 109 146 75%
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Drag Replace Drag Drum Line bore to suit alignment of new drum Replace #1 gearing Replace #2 gearing Replace Bull Gear Replace 2 Drag Motors Hoist Inspections only Swing Replace #1 gearing Replace #2 gearing Propel Inspections only Crack repairs to shoes Fairlead Overhaul fairlead sheaves Structure NDT testing to update Crack Register Boom crack repairs Mast crack repairs A Frame crack repairs Tub crack repairs Revolving frame crack repairs Suspension Do not lower Boom Replace boom intermediate sheaves Repair/Replace IBS lugs Review boom monitoring system Boom Repairs to Lower IBS lugs and general crack repairs
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Drag Inspections only Hoist Replace gearing Line bore Swing Replace swing rack Replace upper rails Requires tub to be pulled out of machine Propel Major overhaul Structure NDT testing Boom crack repairs Mast crack repairs A Frame crack repairs Tub crack repairs Revolving frame crack repairs Suspension Lower Boom Replace suspension ropes Overhaul Boom point sheaves Overhaul sister towers Centre Pintle Bush Change out while tub is out Fairleads Overhaul
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30 Evaporation fan pad Release dam 1 (RD1) Release dam 2 (RD2) S2 sediment dam (S2SD) (fill point dam) Billy's Gully Smoky Creek S3 Pit (main water storage) S1 evaporation pond Raw water dam (turkeys nest) Source: Burdekin pipeline (purchased) Source: Catchment runoff Source: S3 pump transfer Source: S3 Pit Source: Catchment runoff, Northern pits pump transfer Source: Catchment runoff, Northern pits pump transfer
31 Release dam 1 (RD1) Release dam 2 (RD2) S2 sediment dam (S2SD) (fill point dam) Billy's Gully Smoky Creek S3 Pit backfilled Raw water dam (turkeys nest) Source: Burdekin pipeline (purchased) Source: Catchment runoff Source: N1S pump transfer Source: Catchment runoff Process Pond N1S Pit (main water storage) Source: Catchment runoff, Southern pits pump transfer S1 Pit backfilled
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