Company Presentation August 2009 - White Energy Co
Transcript of Company Presentation August 2009 - White Energy Co
white energy company limited ABN 62 071 527 083
Company Presentation
June 2015
A Diversified Coal Company – Coal Technology and Coal Mining
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Forward Looking Statements. Statements in this presentation, particularly those regarding possible, targeted, expected or assumed future performance, costs, dividends, returns, production levels or rates, prices, reserves, growth, earnings or trend projections are or may be forward looking statements. The words ‘anticipated’, ‘expected’, ‘intended’, ‘projection’, ‘forecast’, ‘estimate’, ‘guidance’, ‘plan’, ‘could’, ‘should’, ‘may’, ‘target’, ‘consider’, ‘believe’, ‘will’ and other similar expressions are intended to identify forward looking statements. Such forward looking statements relate to future matters and may involve known and unknown risks, uncertainties, or other factors, many of which are outside the control of the company, which could cause actual results to differ materially from past results or results expressed or implied by such statements. To the maximum extent permitted by law, the company, its related bodies corporate and their directors, officers, employees, agents and advisers disclaim any obligation to update any forward looking statements to reflect subsequent events or circumstances.
For more information visit www.whiteenergyco.com or contact:
Brian Flannery
Managing Director and CEO
White Energy Company Limited
+61 2 9959 0000
Disclaimer
Ivan Maras
Chief Financial Officer
White Energy Company Limited
+61 2 9959 0000
Summary information. The information in this presentation does not purport to be complete. It should be read in conjunction with
the company’s other periodic and continuous disclosure announcements lodged with the Australian Securities Exchange, which are
available at www.asx.com.au.
No liability. No representation or warranty, express or implied, is made in relation to the fairness, accuracy or completeness of the
information, opinions and conclusions expressed in the course of this presentation. To the maximum extent permitted by law, the
company, all of its related bodies corporate and their directors, officers, employees, agents and advisers do not accept any
responsibility or liability (including, without limitation, any liability arising from negligence on the part of any person) for any loss or
damage incurred by any person in connection with this presentation or any action taken on the basis of such information, opinions or
conclusions. You must make your own independent assessment of the information, opinions and conclusions and in taking any
action seek your own independent professional advice as appropriate.
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White Energy
A diversified coal company listed on the ASX with significant global growth prospects
White Energy is the exclusive worldwide licensee of a patented technology which upgrades high moisture low value sub-
bituminous and lignite coals through a low cost process of dehydration and compaction. This technology is known as the
Binderless Coal Briquetting (“BCB”) technology, and was developed by a consortia led by the Commonwealth Scientific
and Industrial Research Organisation (“CSIRO”).
White Energy has more recently applied the BCB technology to the beneficiation of thermal and metallurgical coal fines.
White Energy acquired Mountainside Coal Company Inc. (“MCC”) in 2013, following the earlier acquisition of South
Australian Coal Limited in 2010. These assets form the coal mining division of the Company.
Notes: (1) 1 ADR = 5 Ordinary Shares
(2) Fully diluted excludes unissued options
(3) Includes $2 million WA Supreme Court Security Bond relating to the freeze order obtained in respect of Bayan Resources’ shareholding in Kangaroo
Resources Limited and $2.8m in coal mining reclamation bonds at MCC
(4) As at 25 March 2015 – Top 40 extract of the White Energy Company Limited share registry
Key Statistics 31 May 2015
Share Price - ASX: WEC A$0.39
US ADR Price - OTCQX: WECFY (1) US$1.52
Ordinary Shares On Issue 328.4 million
Equity Market Capitalisation (2) A$128 million
Cash Reserves (approx) (3) A$34 million
Major Shareholders (4) Shareholding %
M&G Investment Management 17.93%
Gaffwick Pty Ltd 9.73%
Ganra Pty Ltd 9.24%
Remaining top twenty shareholders 35.30%
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Solid Platform for Growth
White Energy is organised around two distinct – but related – business divisions which
provide an exciting pipeline of projects currently under development.
* 100% owned unless otherwise stated
Coal Mining Coal Technology
Mountainside
Coal Company
Inc.
Briquette
Bituminous
Coal Fines
(thermal, coking)
Upgrade
Sub-bituminous
coals
Indonesia Other Markets
To be
developed Current focus
Other
markets North America China
North
America Australia/NZ
South
Australian
Coal Limited
51% 51% 51%
Other
Opportunities
51%
South
Africa
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Target Milestones for the Year Ahead
The Company has identified a number of key areas of focus for Financial Year 2014/2015
United States Africa Indonesia Australia
• Mountainside Coal
• Buckskin Mining
• Black River • TBA
• Lake Phillipson EL4534
• Cessnock Production Plant
• In commercial
discussions
• Commence mining
operations at the
proposed Flat Creek
coal mine.
• Construct and
commission a new and
improved coal wash
plant at MCC.
• Commence construction
of a BCB plant at MCC.
• Continue to evaluate
market conditions,
specifically progress with
coal export facilities.
• Construct and
commission a coal
fines beneficiation
plant at Woestalleen
(Phase One).
• Commence
construction BCB
Plant at Woestalleen
(Phase Two)
• Reach agreement to
construct BCB plant
with another major
South African coal
producer.
• Purchase a
suitable sub-
bituminous coal
mining asset.
• Ongoing development of BCB
technology through continued
investment in R&D activities.
• Conduct a number of extended
Demonstration Plant campaigns
using both bituminous coal fines
and sub-bituminous coals.
• Continue to evaluate EL4534 for
coal applications including coal
gasification.
• Establish
commercial
partnership with
Chinese miner/
power utility.
• Identify financial
partner for sub-
licensing
opportunity.
Key
Partners /
Projects
FY2014/15
Target
Milestones
China
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A highly regarded board and management team with an industry wide reputation for
delivery and execution of major coal projects
Board and Management
Travers Duncan
Chairman
Brian Flannery
Managing Director and CEO
Graham Cubbin
Non-executive Director
Hans Mende
Non-executive Director
Vincent O’Rourke
Non-executive Director
Terence Crawford
Non-executive Director
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White Energy’s Coal Upgrading Technology
Five Production Stages
1. Coal preparation
2. Crushed coal drying
3. Solids separation
4. Briquetting
5. Cooling / conditioning
The BCB technology has been developed over 20 years, by a consortia led by the
CSIRO
Binderless Briquetting Circuit (BCB)
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Coal Fines - A Major Environmental Liability
Coal fines represent a major environmental liability for coal producers and also carry
a significant ongoing maintenance cost
Billions of tonnes of coal fines are stored in slurry
ponds around the world.
Coal fines derived from a combination of thermal
coal and coking coal.
New arising fines continue to be generated at coal
mines around the world, due to inefficiencies in coal
processing methods.
There is a significant ongoing cost for coal
producers associated with the management of coal
fines.
Dried briquettes produced from wet coal fines can
be blended with a coal producer’s saleable coal, for
export or domestic markets.
The excavation of coal fines from a typical slurry pond at a South
African mine site
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Application of the BCB Technology to Coal Fines
Binderless Briquetting
Circuit (BCB)
Export
Conveyor
Domestic
Thermal
Market
Power Station
Ultra Fines
Spiral Fines Coa
l M
ine
Wa
sh
Pla
nt
Reclaimed
Fines
Slu
rry p
on
d
Collect the waste &
discarded fines
Dewater and clean
the fines
Briquette and improve
fines calorific value
Blend briquetted fines
with ROM output
White Energy Value Add Environmental Liability High Value Product
Fine Coal Beneficiation
Circuit (FBC)
White Energy is able to leverage its patented and scalable technologies to
beneficiate ultra fine coals in order to create saleable product by converting a
waste product into a high value product that can enhance a mine’s revenues
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The Coal Fines Beneficiation and Upgrading
Process
2 - Reclaiming the coal fines from ponds 1 - A coal fines slurry pond
4 - BCB Briquetting phase
5 - Upgraded coal fines briquettes
3 - Beneficiation/screening phase
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The Coal Fines Opportunity for White Energy
White Energy has identified a number of commercial opportunities associated with
the deployment of the BCB technology to the briquetting of coal fines
Fine Coal Beneficiation plant under construction at the Woestalleen, RSA site
Inspection of briquettes produced from South African coal fines
During 2015 the Company plans to commence construction of its
first commercial BCB Plant for briquetting of coal fines at recently
acquired MCC in Kentucky (U.S.). This coal is very low ash (<2%)
metallurgical coal quality.
In addition to North American coal fines opportunities, South Africa
continues to represent a significant short-term opportunity for the
recovery and processing of bituminous coal fines. This coal is all
thermal quality.
A pipeline of potential project opportunities, all centrally located
within the existing Witbank/Middleburg coalfields in South Africa,
involve some of the largest coal producers in the South African
market.
The Company conducted a 100 tonne commercial
scale burn test in South Africa on the BCB product
as part of a Detailed Feasibility Study.
The BCB technology produces an upgraded coal
briquette without the need to use a binding agent,
which is more costly, and gives the Company a
significant advantage over competition.
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The Need for Cleaner Coal
White Energy continues to focus on its core BCB coal technology business,
which is based on the upgrading of low rank, low cost sub-bituminous coals to
export grade higher value coal.
Source: Casey Research published in the mining.com 1/7/2014 article “My air is more expensive than your air”
A major portion of remaining world coal reserves are low rank.
The current and future dependence on coal will require technologies that can reduce emissions and
mitigate the negative effects of coal using high moisture, lower rank coal.
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Value Proposition – Upgrading Sub Bituminous Coals
White Energy’s commercial proposition is simple – access low cost / low rank
coals and upgrade the coal to more valuable and higher energy briquettes
Product Upgrade Historical Price Arbitrage
Feedstock coal • High moisture coal
Upgraded high energy
coal briquettes
Approx. 6,000
Kcals/kg GAR Sub-
bituminous
coal
example
Indonesia
Approx. 4,300
Kcals/kg GAR
PRB Coal
Approx. 8,400
Btu/lb GAR
Approx. 11,350
Btu/lb GAR
* GAR = Gross As Received
Target
Source: Argus/Coalindo Indonesian Coal Index Report
Historical Indonesian Coal Prices (US$/ton) 2008 - 2013
$0
$20
$40
$60
$80
$100
$120
$140
$160 6500 GAR
5500 GAR
4200 GAR
Pri
ce A
rbitra
ge
US
$/t
on
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White Energy upgraded coal results in improved energy content, lower
emissions and enhanced transportation efficiencies when compared to lower
rank feedstock coals
Higher energy content
Reduced C02
emissions per Kwh
Lower risk of
spontaneous
combustion
30% - 100% increased energy content compared to low rank feedstock coal
In comparison to low rank feedstock coal, White Energy’s upgraded coal has a
reduced CO2 and other emission profile at the point of combustion
White Energy upgraded coal has improved physical and chemical stability,
enhancing handling, storage and transportation options
Increased power output and improved heat rate, enabling higher capacity utilisation
and efficiency at point of combustion
White Energy upgraded coal mitigates exposure to stricter environmental emissions
regulations
Reduced moisture content results in an up to 30% decrease in load volumes and
associated transportation costs
Improved performance
at power stations
Enhanced transport
efficiency
Benefits of White Energy upgraded coal compared to typical
Sub-Bituminous feedstock coal
White Energy Upgraded Coal vs Sub-Bituminous Coal
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• Ash:
• Reduction in ash as a waste
product and consequent
dust particles
• Sulphur Oxide:
• Sulphur % of 0.1% is
amongst the lowest in the
world, leading to significant
reduction in sulphur dioxide
emissions
• Nitrogen Oxide:
• Lower levels of nitrogen
oxide are emitted on
combustion
Source: External third party test results
White Energy Upgraded Coal vs Bituminous Coal
Upgraded bituminous coal has an improved pollution profile as it maintains the
positive environmental attributes of the feedstock coal
Superior environmental performance as
compared to typical Australian bituminous coal
Significant reduction
in SOx and NOx
emissions
BCB Coal Aust. Bituminous Coal
Many of the high moisture coals (particularly
Indonesian) have very low ash and sulphur contents.
Therefore, when the moisture is removed the resultant
higher energy product is very attractive from an
energy, ash and sulphur viewpoint 14
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Research & Development - Cessnock
The Cessnock Production Plant continues to provide a ‘centre of excellence’, used to
test coal samples sourced from coal producers around the world
The White Energy technical team
completed a number of
modifications to the Cessnock
Demonstration Plant in 2013.
The modifications are designed
to enable the Cessnock plant to
simulate a bituminous coal fines
upgrading operation, in addition
to sub-bituminous and lignite coal
testing.
A number of recent
Demonstration Plant runs on
South African and Australian
reclaimed coal fines and Pilot
Plant test work on a range of
coals has been conducted.
Results of test work completed to
date continues to show positive
results with respect to sub-
bituminous coal as well as
bituminous (thermal and coking)
coal fines.
White Energy Board Members touring the Cessnock Demonstration Plant
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Coal Mining - South Australian Coal Limited – EL4534
South Australian Coal Limited holds the exploration rights to a large sub-bituminous
coal deposit located in Northern South Australia (EL4534)
EL4534 is located
approximately 765 kilometres
north of Adelaide and 70
kilometres south west of the
township of Coober Pedy.
The Darwin to Adelaide railway
runs through EL4534.
A conceptual mine plan and
preliminary costings have been
completed in preparation for a
detailed feasibility study, based
on the supply of Lake Phillipson
coal to the domestic power
market in South Australia.
Desktop studies have been
completed and confirmed that
the Lake Phillipson coal is
suitable for gasification using
the Lurgi process.
Core from the 2012 South Australian Coal drilling program at EL4534
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Coal Mining - Mountainside Coal Company
Open-cut mining operations at Flag Ridge using highwall mining equipment
The acquisition of Mountainside Coal Company has provided White Energy with
control and certainty of feedstock coal supply and enables it to capture a greater
portion of the value chain by utilising the BCB technology to upgrade the resource
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Open Cut Mining Operations At Flag Ridge
The MCC reclamation process from left to right: newly sloped areas at Flag Ridge, seeding at Jellico Creek and vegetation growth after one year at Flag Ridge
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Coal Mining - Mountainside Coal Company (cont.)
White Energy intends to expand the Mountainside Coal business in a stepped
process, including the installation of a coal wash plant which was commissioned in
February 2015 and BCB plant at the site
White Energy intends to increase
production levels with a particular focus
on increasing the quantum of sales of
the low-ash sized coal product.
Low-ash sized coal product is currently
sold at an attractive premium.
Test work conducted at the Cessnock
Demonstration Plant has shown that
the fine coal remaining after screening
out the washed sized coal from
Mountainside Coal’s production, can be
processed into a stable briquette similar
to the sized coal.
These coal fines presently amount to
approximately 25% of production.
The briquetting of these coal fines using
the BCB process is expected to
increase the value of the Mountainside
Coal business.
The MCC new coal wash plant was commissioned in February 2015
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Level 9, 20 Hunter Street
Sydney, NSW 2000
Telephone: +61 2 9959 0000
Facsimile: + 61 2 9959 0099
Email: [email protected]
ABN 62 071 527 083
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