The Conuma Story September 28, 2017 Mark Bartkoski, President - - PowerPoint PPT Presentation

September 28, 2017 Mark Bartkoski, President Conuma Coal Resources

Building on a Firm Foundation: The Conuma Story

“BUILDING ON A FIRM FOUNDATION”

THE CONUMA STORY Brule Mine Re- Opening Day

• Sept. 22,

2016

WHO IS CONUMA?

❖ Stand-alone Canadian coal company formed in 2016 ➢Headquarters in Tumbler Ridge, B.C. ➢Three assets in Peace River Coalfield ➢Corporate office in Vancouver, B.C. ❖ Founded by individual coal-industry veterans and investors who saw

• pportunity in late 2015 when metallurgical coal market conditions

and asset values were unsustainably low ➢Acquired assets in N.E. British Columbia in September 2016 when many N. American coal producers were in reorganization

❖ AMCI joined as an investor in September 2016

THE ASSETS

Brule

• Premium ultra low volatile pulverized coal

injection (PCI) product.

• Low sulfur and low phosphorous
• Trucked to Willow Creek CHPP/loadout for

processing and shipping.

• Brule began operations September 22, 2016.
• +2.5M tonnes production annually (tpa)

Willow Creek

• S.W. of Chetwynd, B.C.
• High CSR (+70) Mid-vol HCC in evaluation for

re-start of operations in 2018.

 Premium ULV PCI produced at Willow Cr.

• Existing CHPP, rail loadout, all required

infrastructure on CN main line makes Willow Cr low-capital intensity re-entry for 1.5M tpa

Wolverine

• HCC 64 type mid-volatile
• Low sulfur, low-phosphorous
• Began mining Q1 2017. Production rate 1.7M tpa
• Tumbler Ridge rail submain rehabilitation completed

August 2017; product now ships by rail to Ridley Terminal.

Vancouver Edmonton Calgary

Prince George

Peace River Coalfield

Ridley Terminal

Chetwynd Tumbler Ridge

Westshore Terminal

Willow Creek Brule Wolverine

British Columbia Alberta

Seattle Juneau Victoria

• E. Kootenay Coalfield

LOCATION MAP/TRANSPORTATION

• Assets located in

Peace River Coalfield (“PRC”) of N.E. British Columbia

• Only coal

producer

• perating in PRC
• 600 mile CN rail

corridor from PRC to Ridley T erminal

Prince Rupert

KEY MILESTONES

September 2016 October 2016 November 2016 December 2016 Q1 2017 Q2 2017 Q3 2017 Future Acquired assets of Walter Canada Mined ~36Kt Hired team and trained initial 150 employees Trucked first coal from Brule to Willow Creek loadout First train Willow Cr to Ridley Terminal Completed 1st full month of

• perations.

~100Kt Loaded first PCI cargo to Japan Wolverine CHPP startup 1st cargo of Wolverine HCC April ‘17 Jan 2018 – Wolverine mine start-up June 2017 – Brule and Wolverine ramp ups complete August – Tumbler Ridge CN rail submain rehab completed Q3 production anticipated at 1.2Mt Willow Creek potential startup

PROJECTED

Employee Count ProductionTonnes (1000/Mo.)

35 93 112 117 145 195 228 272 400 480 500 550 780 10 50 90 120 117 145 195 228 272 420 391 413 550

100 200 300 400 500 600 700 800 900

SEPT 2016 OCT 2016 NOV 2016 DEC 2016 JAN 2017 FEB 2017 MAR 2017 APR 2017 MAY 2017 JUN 2017 JUL 2017 AUG 2017 Addition

• f

Willow Creek

PEOPLE DRIVING RESULTS

✓ Lowest Injury Rate of all B.C. Mining Companies ✓ Hired and trained +500 employees in Year1 ✓ +3.0M tonnes produced 2017 (Up to 6.0Mt capacity possible in 2018 with addition of Willow Creek) ✓ +200 Trains Loaded ✓ +40 Vessels Loaded

Losses Averted = Security Earned

• 1. Loss Prevention Business Model

WHAT MAKES CONUMA UNIQUE? ✓ Injury ✓ Violation ✓ Downtime ✓ Rework/Waste

• 1. Loss Prevention Business Model
• 2. Integrity Process Development Plan

WHAT MAKES CONUMA UNIQUE?

Mission Statement: Conuma Coal Resources was founded to be a contributor, positive influence and supporter to our

• community. We are committed to

earning security for all of our partners, and to unifying resources and people to build a “first class”

• rganization recognized for

character and true integrity.

• 1. Loss Prevention Business Model
• 2. Integrity Process Development Plan

SECURITY

Workforce, Management, Owners, Community

Values Mission Statement Process PILLAR

1 PILLAR 2 PILLAR 3

• Transformation Plan – MVP
• Process Refinement - GRM
• Employee Empowerment - RAC

WHAT MAKES CONUMA UNIQUE?

Mission Statement: Conuma Coal Resources was founded to be a contributor, positive influence and supporter to our

• community. We are committed to

earning security for all of our partners, and to unifying resources and people to build a “first class”

• rganization recognized for

character and true integrity.

WHAT MAKES CONUMA UNIQUE?

• 3. Maximizing Opportunities

$350 $50 $200 $300 $100 $250 $150 Sep- 15 Mar- 16 Mar- 15 Sep- 14 Mar- 14 Sep- 13 Sep- 12 Mar- 13 Sep- 16 Mar- 17 Mar- 12 Sep- 11 Mar- 11 Sep- 10 Mar- 10 Financial Reorganization period HCC Benchmark Peak Market Coal M&A Period

✓ Market Timing

WHAT MAKES CONUMA UNIQUE?

• 3. Maximizing Opportunities

✓ Market Timing ✓ Operating/Technical Improvements ▪ Focus on Total Quality Management Blend Coal – mine separate coal seam layers, homogeneous blending

WHAT MAKES CONUMA UNIQUE?

Cast Blast D-11 Dozer Push

• 3. Maximizing Opportunities

✓ Market Timing ✓ Operating/Technical Improvements ▪ Focus on Total Quality Management ▪ Cast/Dozer Push Overburden Removal

WHAT MAKES CONUMA UNIQUE?

• 3. Maximizing Opportunities

✓ Market Timing ✓ Operating/Technical Improvements ▪ Focus on Total Quality Management ▪ Cast/Dozer Push Overburden Removal ▪ Project Excel ▪ Drilling/Major Digger Steering Technology ▪ PM Systems ▪ Swarm Maintenance ▪ Zero Loss Program ▪ Proactive Environmental Planning ▪ Concentration on Local Hiring ▪ Interactive Training ▪ HWM Potential ▪ Numerous Kaizens ▪ Shared Ownership ▪ Partnerships

Brule rule Mine Wolve lveri rine ne Mine ne

WHAT MAKES CONUMA UNIQUE

E N V I R O N M E N T A L

• 4. PAYING IT FORWARD – Responsibility/Honor

Conuma’s Foundation

WHAT MAKES CONUMA UNIQUE

E M P L O Y E E S / F A M I L Y

• 4. PAYING IT FORWARD

WHAT MAKES CONUMA UNIQUE?

C O M M U N I T Y

• 4. PAYING IT FORWARD

Conuma’s Foundation

WHAT MAKES CONUMA UNIQUE

S C H O O L S

• 4. PAYING IT FORWARD

Conuma’s Foundation

WHAT MAKES CONUMA UNIQUE?

F I R S T N A T I O N S

• 4. PAYING IT FORWARD

Conuma’s Foundation

WHAT MAKES CONUMA UNIQUE?

• 4. PAYING IT FORWARD

E X T E N D E D F A M I L I E S

Safety Results

1

Employee Trust

2

Quality Applicants

3

Equipment Availability

4

Improving Share Bonus

7

Increased Production

5

Reduced Costs/Tonne

6

Investor Interest

9

Job Security

8

First Nations Relationship

10

Partnerships

11

ACHIEVEMENTS ACROSS THE BOARD

▪ Growing Sustainable Communities ▪ Restoring Earth’s Ecological Balance ▪ Reclaiming Land for Future Generations

ACHIEVEMENTS ACROSS THE BOARD

An awarding partnership between Industry, First Nations and the Environment

Pay It Forward Stories & Support

12

Investor Interest

9

Safety Results

1

Employee Trust

2

Quality Applicants

3

Equipment Availability

4

Improving Share Bonus

7

Increased Production

5

Reduced Costs/Tonne

6

Job Security

8

First Nations Relationship

10

Partnerships Mayor’s Council Award: “Walk

The Talk”

11

ACHIEVEMENTS ACROSS THE BOARD

CONUMA: BUILT ON A FIRM FOUNDATION We are an example of Industry/Government/Community/First Nations

Collaboration

“Integrity in Character Builds Integrity in Process” “On the right foundation business is a win/win”

Th Than ank k yo you u to to al all l

• f
• f our
• ur pa

partne rtners rs