White Energy Company Limited (ASX : WEC) Other OTC: WECFY (ADR) Company Profile March 2008
Forward Looking Statements Except for the historical information contained herein, the matters discussed in this presentation contain forward-looking statements, including statements, containing the words “planned”, “expects”, “believes”, “strategy”, “opportunity”, “anticipates”, and similar words. Such forward-looking statements are subject to known and unknown risks, uncertainties, or other factors that may cause the company’s actual results to be materially different from historical results or any results expressed or implied by such forward-looking statements. We assume no obligation to update any forward-looking statements to reflect events or circumstances arising after the date hereof. In addition where comparisons are made between White Energy Company and other companies, we have made best efforts to properly interpret publicly made information by these companies but cannot be certain that such comparisons are completely accurate.
White Energy’s Coal Upgrading White Energy’s BCB process upgrades low value coals by reducing the moisture and compacting into dense, physically and chemically stable lumps that can be handled, transported and utilized like normal coal.
Company Snapshot • Listed: Australian Securities Exchange (ASX: WEC). • Other OTC: ADR Program (WECFY). • Business Description: Commercialization of Coal Upgrading Technology. • Shares outstanding: 126,926,022 fully paid ordinary shares. • Options Outstanding: 42,220,735 • Recent share price 29 February 2008: • ASX: A$2.89 (US$2.69) • Other OTC: US$13.00 • Equity market capitalization*: A$488M (US$455M). • Available funds at 29 February 2008: A$55.4M (US$50.9M) plus US$25M remaining through a converting note facility from BHP Billiton. • Corporate headquarters: Sydney, Australia; offices in Indonesia, China and now in the US. • Full-time personnel: 30. • Public since: March 2005. • Insider ownership: 34% of shares outstanding. Notes: * Total fully diluted shares on issue if all options are exercised. Assumes all notes are not converted. If all notes are converted, then market capitalization would be A$526M (US$490M). Exchange Rate A$1.00 =US$0.9314.
Financial Snapshot Consolidated Balance Sheet (A$000’s) 31 Dec 2007 30 June 2007 30 June 2006 Current Assets 48,974 18,411 6,700 Non Current Assets 76,561 67,482 59,126 Total Assets 125,535 85,892 65,826 Total Liabilities 5,956 8,423 4,411 Net Assets 119,579 77,469 61,415 Total Equity 119,579 77,469 61,415 Consolidated Statement of Cash Flows (A$000’s) YTD 31 Dec 2007 FY2007 FY2006 Net Cash (outflows) from Operating Activities (2,593) (1,301) (769) Net Cash (outflows) from Investing Activities (10,369) (12,700) (1,518) Net Cash (outflows) from Financing Activities 45,236 22,509 5,902 Net Increase (decrease) in cash & equivalents 32,274 8,508 3,615 Closing Cash & Cash Equivalents 46,652 15,072* 6,564 Note: * Includes consolidation of Indonesian JV cash balance reported only in annual statutory accounts and not in quarterly reports
Global Market Drivers • Rapidly growing coal demand - Global coal demand is expected to grow significantly through 2030, particularly from the fast growing economies of China and India (IEA). • New crude oil paradigm placing upward pressure on competitive fuels - Rising crude oil pricing is increasing demand for cheaper, indigenous fossil fuels. • Deliverability of high quality coals is declining - In both North America and Asia, production of high thermal value / low emission coal is declining. • Increasing global emphasis on emissions reductions - Across the globe, emissions of CO 2 , SOx, NOx and Hg are coming under increased regulation. Coal is a vital resource option for meeting the world’s sustainable energy needs.
Issues Facing the Coal Industry Coal is the lowest cost and most easily accessed energy source in the world, however there are several issues that reduces its attractiveness as an energy source into the future. • Combustion of coal releases CO 2 and inefficient use could have global climatic impact. • Many traditionally utilized coals are major sources of pollutants such as SO 2 and NO x . • The world has very large reserves of coal which are low in pollutants such as sulphur and ash but are not exploited because of their low energy and transportation economics. • In some regions such as the USA dust from coal transportation and handling has become a major environmental, economic and logistical problem.
WEC - A Facilitator to Zero Emissions White’s Efficiency Improvements Advanced Technologies Zero + + + Upgraded Coal Existing Power Plants New Power Plants Emissions Coal upgraded by the White Coal Conventional sub-critical plants can Integrated gasification combined Carbon capture and storage can reduce technology can be used to supply each achieve thermal efficiencies of up to cycle and pressurized, fluidized emissions of C0 2 to near zero. Advanced of the stages of the coal technology 40%. Improving less efficient plants will bed combustion plants operating in technologies gasify coal by heating it to lifecycle offering immediate CO 2 reduce CO 2 emissions by up to 22%. the US, Europe and Japan achieve temperatures so high that it breaks down emission reductions of up to 10%. Improved efficiency sub-critical plants high efficiencies and reduced CO 2 into a variety of petroleum products. CO 2 operate throughout the world. emissions. Integrated gasification is separated out and then sequestered by Supercritical and ultra supercritical fuel cells under development directing it into underground reservoirs plants can achieve efficiencies of up to achieve even higher efficiencies. where it will remain buried forever. When 45% and operate in Japan, USA, combined with advanced technologies, Europe, Russia, China, and Australia. carbon capture and storage will facilitate the hydrogen fuel economy. Source: Adapted from World Coal Institute (2003)
Research and Technology Enhancements White Energy’s Strategy: Act as an Enabling Technology Partner Today: • Coal upgraded by White Coal Technology can supply each stage of the coal technology lifecycle, offering significant environmental benefits. • WEC will continue to improve its existing process, and will invest in developing its technology, with an emphasis on coking coal applications. Invest in Coal Technologies for the Future: • White Energy will continue to develop and acquire synergistic technologies in coal upgrading and emissions reductions, in response to the growing global market for coal and related end products. • Developing a unique suite of coal upgrading and emissions reductions technologies will enable White Energy to partner with a growing number of players in the coal value chain. • White Energy will continue its drive toward achieving key player status in a zero emissions world.
Coal Dust – A Major Problem in the USA • Problems caused by increased levels of track dust Increasing Coal Shipments: Rail Co Ave. PRB Coal Trains Per Day include: – Track surface disruption and increased maintenance costs. – Reduced train velocity on the high density PRB route. – Release of foul track ballast (requires higher ballast maintenance). – Reduces capacity. Jan-03 Mar-03 May-03 Jul-03 Sep-03 Nov-03 Jan-04 Mar-04 May-04 Jul-04 Sep-04 Nov-04 Jan-05 Mar-05 May-05 Jul-05 Sep-05 Nov-05 Jan-06 Mar-06 May-06 Jul-06 Sep-06 Nov-06 Jan-07 Mar-07 May-07 Jul-07 • Due to increased economic and environmental pressure, creating a solution to this problem is a PRB Lost Loading Opportunities crucial component of the American coal value chain. (YTD 4 Sept 2007) 1100 • White Energy’s briquetting process significantly 1000 900 reduces the level of coal dust prior to transport, 800 700 increasing railway efficiency by reducing 600 500 970 maintenance costs and increasing loading 400 300 opportunities, a significant advantage over 200 275 100 90 competing technologies. 0 Mine Railroad Utility
The White Energy Technology Benefits • Higher energy content: WEC increases heat the useable energy content by between 30% and 200%, creating valuable power generation efficiencies. • Mechanical process: a mechanical process that is designed to work at coal mines, not a complex chemical process. • Low upgrading costs: Favorable conversion economics allow the product to compete with bituminous coals. • Lower spontaneous combustion risk: Upgraded coal is physically and chemically stable, and can be handled, stored and transported as normal coal. • Lower transportation costs: Process reduces moisture, resulting in up to 30% decrease in load volumes and concomitant transportation costs. • Reduced greenhouse gas and pollutant emissions: More efficient burning results in lower CO 2 , SO 2 , NOx and Hg emissions. • Reduced levels of dust: Significantly reduces the quantity of dust when compared with unprocessed sub-bituminous coal.
Recommend
More recommend
