For personal use only - ASX · Gujarat NRE Coking Coal Ltd. Overview Gujarat NRE Coking Coal Ltd....
Transcript of For personal use only - ASX · Gujarat NRE Coking Coal Ltd. Overview Gujarat NRE Coking Coal Ltd....
GUJARAT NRE COKING COAL LTD
Investor Presentation
ASX Code: GNM
May 2012
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Table of Contents
Page
Introduction 3
Company Overview 10
Industry Overview 17
Growth Strategy 23
Financial Overview 27
Appendix 32
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Introduction
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Gujarat NRE Coking Coal Ltd. Overview
Gujarat NRE Coking Coal Ltd. (“Gujarat” or the
“Company”) is an ASX-listed hard coking coal
producer with BSE/NSE-listed Indian parent
~$190 million market cap
FY12 Rev: $191.2 million
FY12 EBITDA: $49.7 million
100%-owner of two underground coking coal
mines in New South Wales Australia
NRE No. 1
NRE Wongawilli
Total JORC reserves of 125 Mt and resources of
651 Mt
The majority of unwashed coal is sold under
contract to the Company’s major shareholder
(Gujarat NRE Coke) at market price on arms’
length terms
Current unwashed coal production of 1.2 Mtpa
projected to increase to ~5.0 Mtpa by 2016
Wollongong
Kiama
Port Kembla
Port Kembla coal
loader 18 Mtpa Sutton
Forest
proposal
Berrima
Dendrobium
W. Tahmoor Appin
Westcliff Northcliff
Southern
Coalfield
NRE No. 1
NRE WONGAWILLI
BHP Illawarra
Coal
Peabody
Metropolitan
Xstrata
Tahmoor
NRE No. 1 and NRE Wongawilli Site Map
(US$ in millions)
4 Note: Management estimates for FY12 ending March 31, 2012 are unaudited
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Highly Experienced Management Team
Established Gujarat NRE Coking Coal Ltd. in 2004; only Indian entity to own and operate coking coal mines in
Australia
Has grown Gujarat NRE Coke to largest independent producer of Met Coke in India
Chartered Accountant with all India 1st rank and gold medal
Arun Kumar Jagatramka
Executive Chairman
28+ Years of Experience
Chris Harvey
Head of Corporate Relations
35+ Years of Experience
Former Mining Engineer and Senior Environmental Officer with the NSW Department of Mineral Resources
Gas Drainage Engineer at West Cliff Colliery
Fellow of the Australasian Institute of Mining & Metallurgy, Fellow of Institution of Engineers Australia, and Member
of the Australian Institute or Management
5
Steven Bow
Operation Manager: NRE
Wongawilli
28+ Years of Experience
Rhys Brett
Operations Manager: NRE No. 1
8+ Years of Experience
8 years underground coal mining with Anglo, Centennial and Xstrata
NSW 1st Class Certificate of Competency for Underground Coal Mines and a diploma on Ventilation Engineering
Formerly held various managerial positions covering technical and operational management with BHP Billiton and
its coal operations in the Illawarra Region
First class mine managers ticket & qualified competent person in reserves analysis
Paul Coxhead
Statutory Manager: NRE
Wongawilli
35+ Years of Experience
Experience as Undermanager & Mine Manager for coal mines in New Zealand, Queensland & New South Wales
1st Class Certificate of Competency for Underground Coal Mines
Phil Wakeford
Statutory Manager: NRE No. 1
33+ Years of Experience
Experience in NSW South Coast, NSW Western District and Central Queensland Collieries
Formerly held many engineering positions as well as senior mine management positions with Oakdale Collieries
Ltd, BHPBIC and NREWW
NSW 1st Class Certificate of Competency for Underground Coal Mines
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Investment Highlights
Premium Quality Mines with
Longwalls in Operation
Expansion into new mine areas more suitable for longwall operation will reduce opex
Close proximity to port facilities with low demurrage, reducing transport costs
Operational Costs Falling as
Production Increases
Favorable Long-Term Market
Dynamics
Experienced Management
and Strong Parent
No. 1 and Wongawilli produce premium quality hard coking coal
Longwall production at both mines, ramping to ~5 Mtpa by 2016 (up 355% vs. 2012)
Demand expected to remain robust given solid steel demand, especially in India
Prices expected to remain stable given long-term demand/supply dynamics
Parent company is largest independent producer of low ash met coke in India
Senior mining staff has significant experience with large miners such as BHP and
Rio
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Valuation by Wood Mackenzie
Wood Mackenzie (“WM”) was retained by the Company to provide a valuation of the
Company’s operations
The resulting estimate of value represents WM’s view, based on publicly available information
WM considered two scenarios, using multiple valuation methodologies including NPV
analysis and comparable recent transactions
Scenario #1: Based on status quo in which NRE No. 1 and NRE Wongawilli are operated within
Gujarat NRE Coke’s vertically integrated model
Scenario #2: Fair market value based on what a bidder, intending to enhance the quality of the
coal for the seaborne market, might be expected to pay for the stand-alone assets
The resulting valuation shows an initial range under base case assumptions(1) of US$938
to US$990 million
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(US$ in millions)
(US$ in millions) Vertically Integrated Assets Fair Market Value
Base Case $990 $938
(1) In developing the valuation, WM used as inputs its own assumptions for production rates, costs (opex & capex), mine life, discount rate, price and carbon tax impact (refer to
next slide)
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Valuation by Wood Mackenzie (continued)
8
Vertically Integrated Assets Assumptions Fair Market Value Assumptions
NRE No. 1 NRE
Wongawilli
NRE No. 1 NRE
Wongawilli
Discount Rate 10% 10% 10% 10%
Peak Production 2.7 Mtpa 2.7 Mtpa 2.7 Mtpa 2.7 Mtpa
Modeled Production 20 years 10 years 20 years 10 years
Priceline 0.65*HCC 0.55*HCC 1.00*HCC 0.97*HCC
Cost Ex Carbon at Peak
Production (Real US$/t)
63.85 57.66 65.77 59.39
Wash Plant Capex N/A N/A US$71M US$76.4M
Yield N/A N/A 66% 66%
Coking Coal/Thermal Split N/A N/A 90:10 90:10
Carbon Emissions
(tCO2e/tROM)
0.319 0.319 0.319 0.319
Government Assistance 80% of carbon cost above 0.1t/t, capped at 2008/9 levels, for 6 yrs
Wood Mackenzie has used several key assumptions in developing its valuation based on
publicly available information
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Recent Developments
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Longer Term Mine
Development
Refurbishment of major mine infrastructure was undertaken while older items of
plant were operating, requiring additional time to phase in newer, more productive
equipment
Refurbishment of
Infrastructure
Longwall Change Out
Regulatory Changes
Operation focus at NRE No.1 shifted from small scale pillar extraction to longer term
development, supporting future longwall operations
NRE Wongawilli Mine experienced 2 longwall change outs in the one 12-month
period, reducing the availability of equipment
Changes in state government and approval process created minimum of 9-month
delay in gaining necessary approvals – October 2011 compared to original
expectation of February 2011
The Company has successfully commenced longwall operations at both NRE No. 1 and
Wongawilli
However, to achieve this goal, Management had to adeptly manage unavoidable
transitional and regulatory changes, including:
The Company is now well positioned to capitalize on longwall operations and
significantly increase production capacity and cash flow going forward
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Company Overview
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NRE No.1 Colliery Overview
Located in Southern Coal fields of
NSW
~10km North of Wollongong
~16km from Port Kembla Coal
Terminal
Premium quality hard coking coal
JORC reserves of 92 Mt and
resources of 315 Mt
Targeting Wongawilli Coal
Seam
Upgrading entire mine
infrastructure
Developing future longwall
extraction domains
Longwall installed March/April
2012
Longwall commenced
production in April 2012
Targeting ~3 Mtpa by 2016
Over 30-year potential mine life
Mine Overview NRE No.1
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NRE Wongawilli Colliery Overview
Located in Southern Coal fields of
NSW
~20km southwest of
Wollongong
~14km from Port Kembla
Coal Terminal
Premium quality hard coking coal
JORC reserves of 33 Mt and
resources of 337 Mt
Targeting Wongawilli Coal
Seam
Currently using longwall extraction
from remnant areas
Initiated new access driveage in
support of new longwall panels to
the West & South
Targeting ~2 Mtpa by 2016
Over 30-year potential mine life
Mine Overview NRE Wongawilli
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Coking Coal Quality Comparison
Better
Lower
Similar
Legend
Ash 8.80% 10.40% 9.30% 9.50%
Volatile Matter 23.20% 20.30% 26.70% 22.00%
Sulphur 0.52% 0.55% 0.74% 0.50%
Phosphorus 0.02% 0.01% 0.06% 0.01%
CSN 8.5 8.5 9 9
MMR 1.18% 1.45% 1.16% 1.24%
Fluidity 1,032 ddpm 573 ddpm 9,000 ddpm 4,000 ddpm
NRE – A Hard Coking
Coa l
Coking Coal Quality Comparison
Specifica tions
BHP Goonye lla
Ha rd Coking
Coa l
BHP Peak
Downs Coking
Coa l
Oaky Creek
Hard Coking
Coa l (Xstra ta )
NRE coking coal has superior properties relative to other regional players
13 Source: Typical specifications as per analysis certificate
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Reserves & Resources – NRE No.1 & Wongawilli
The two mines collectively have JORC reserves of ~125 Mt and resources of over 650 Mt
The coal produced at the NRE No. 1 Colliery is world class due to its ultra low
phosphorous level and ideal MMR (1.24) – superior quality for the production of blast
furnace coke content
Resources (Mt) Reserves (Mt)
Seam Measured Indicated Inferred Total Proven Probable Total
Bulli 12.0 31.2 13.3 56.5 3.2 26.2 29.4
Balgownie — 34.1 41.5 75.6 — — —
Wongawilli 13.5 62.2 107.1 182.8 11.7 50.9 62.6
Total 25.5 127.5 161.9 314.9 14.9 77.1 92.0
NRE No.1 Colliery
NRE Wongawilli Colliery
Resources (Mt) Reserves (Mt)
Seam Measured Indicated Inferred Total Proven Probable Total
Bulli — 8.0 28.0 36.0 — 5.4 5.4
Wongawilli 48.0 44.0 106.0 198.0 16.5 11.5 28.0
Tongarra — — 103.0 103.0 — — —
Total 48.0 52 237.0 337.0 16.5 16.9 33.4
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Favorable Proximity To Export Infrastructure
Port Kembla Coal Terminal remains an
unconstrained coal export port
13.8 Mt throughput in FY 2011
Ship loading capacity of 17.5 Mtpa
being increased to 31 Mtpa
Low demurrage charges reduce
transport costs
Unwashed coal from NRE No.1 is
transported via truck haulage to Port
Kembla
Proven ability to transport up to 3
Mtpa
Unwashed coal from Wongawilli is
transported via rail to Port Kembla
Historically up to 2 Mtpa has been
transported using existing
infrastructure
The capital program budgets for an
infrastructure upgrade that will allow
for the transport of >3 Mtpa
Wollongong
Port Kembla
Rail
Road
NRE No. 1
NRE
Wongawilli
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Diverse Customer Base
Gujarat has a diverse global customer base
spanning a variety of industries
Lowers any industry-specific risk
The majority of Gujarat’s unwashed coal is sold
under contract to its Parent (Gujarat NRE
Coke)
Commercial terms are based on market
prices at an arms’ length basis
Gujarat’s Parent converts the coal to coke and
then sells to a broad set of customers
Customers use Gujarat’s the end product in a
variety of industries including:
Steel / Industrial
Cosmetics
Technology
Energy
Automotive
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Selected Customers
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Industry Overview
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EU (27) 22%
Other Europe
2%
CIS 4%
NAFTA 20%
China 17%
Japan 10%
Other Asia 16%
Other 9%
Global Steel Utilization
Global steel production is dependent on coking
coal
~68% of total global steel production
relies directly on coal inputs, driving
demand
China, the largest steel producer in the world,
started ~10 new blast furnaces in the past six
months, lifting output to a record in March 2012
From 2000 to 2010, China surged from
17% of global utilization to 45%
Steel utilization increased 69% worldwide
between 2000 and 2010, with China
increasing over 400%
India, the third-largest steel producer, is set to
boost capacity one-third to more than 100 Mt
The capacity increase is part of a five-year
$1 trillion plan to improve infrastructure
Global Use of Steel 2000
Global Use of Steel 2010
EU (27) 11%
Other Europe
2% CIS 4%
NAFTA 9%
China 45%
Japan 5%
Other Asia 14%
Other 10%
Source: World Coal Association; Custeel.com
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Coking Coal Importers & Exporters
Australia is the world’s largest exporter of coking
coal by a wide margin
Australia represents 60% of global exports
vs. U.S. at 20%
Coking coal prices reached a record last year
after floods disrupted output and shipment from
mines in Australia
Prices have since normalized as supplies
were restored
In terms of imports, Japan represents almost one-
third of the market
China may surpass Japan as the largest
coking coal importer by 2015 with India
close behind
Chinese demand for imported coking coal is
driven by state investment in steel-intensive
infrastructure that will link western China to
demand centers in the east
Top Coking Exporters 2010
Australia 60%
USA 20%
Canada 11%
Russia 5%
Mongolia 4%
Source: World Coal Association; Australian Bureau of Resources and Energy Economics
Top Coking Importers 2010
Japan 31%
China 26%
India 16%
Korea 15%
Brazil 7%
Ukraine 5%
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India’s Rising Demand For Coking Coal
Management expects that Indian consumption of coking coal will continue to increase over time, absorbing
an increasing share of the Company’s production
Coking coal demand in India has been rising steadily since 2008 with forecasts predicting this growth to
continue
India holds large coal reserves, however, reserves of coking coal, especially premium hard coking coal, are
very low which is represented by a fall in production
With very limited domestic production there will be a strong growth in the amount of coking coal imported
37.6 41
45.6
52.8 58.7
65
23 22.7 22.4 22.2 21.9 21.7
-5
5
15
25
35
45
0
10
20
30
40
50
60
70
2008 2009 2010 2011 2012F 2013F
Demand of coking coal Production Import
Import
of cokin
g c
oal
(mill
ion t
ons)
(RH
S)
Source: Coal Industry Annual Review, CRISIL Research, E&Y
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Global Coking Coal World Demand
Reg ion CAGR (2005 - 2020)
Brazil, China, India 8%
Asia (excluding China & India) 2%
Europe 0.20%
World Total approx. 3%
Hard Coking Coa l Demand Growth : 2005 – 2020 CAGR (fo recast)
Million Tons 2008 2009 2010 2011 2012 2015 2020
A: Seaborne Hard Coking 138 139 161 182 191 213 243
B: Seaborne Semi-soft/weak 44 35 48 55 58 65 74
C: Seaborne PCI 36 32 40 47 50 57 69
Sub-Total SS & PCI (B+C) 80 67 88 102 108 122 143
All Met Combined 218 206 249 284 299 335 386
Global Coking Coal Demand
Source: AME; RTCA Analysis
Source: Merlin Trade and Consultancy Ltd
Global demand for coking coal is expected to steadily increase through
2020
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Long-term Price Stability Expected
Prices for coking coal have steadily increased since 2009 and have experienced
recent spikes due to temporary supply disruptions
Management expects long-term coking coal prices to remain close to $225/ton
0
50
100
150
200
250
300
350
Jan/08
Apr/08
Jul/08
Oct/08
Jan/09
Apr/09
Jul/09
Oct/09
Jan/10
Apr/10
Jul/10
Oct/10
Jan/11
Apr/11
Jul/11
Oct/11
Jan/12
Apr/12
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Growth Strategy
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Historical Production and Future Targets
Decreased production in FY12 largely due to regulatory delays
Target production of ~5 Mtpa by 2016, with increase driven by:
Installation of longwall in NRE No. 1 mine & development of the Wongawilli Seam
Upgrade of longwall at Wongawilli mine & development of southern areas of Wongawilli seam
Upgrade of infrastructure at both mines with latent capacity beyond current business plan
With NRE No. 1 longwall in production, significant production increases are underway
Production Forecast
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0.33 0.44
0.66 0.57 0.45
0.28
0.18 0.56
1.06
0.81
0
0.2
0.4
0.6
0.8
1
1.2
1.4
1.6
FY 07 FY 08 FY 09 FY 10 FY 11 FY 12E
(Mt)
Wongawilli
NRE No1
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Growth Plan – Capex and Opex
Current cash operating costs (pre-Royalty) are
~US $85/t
As longwall production ramps up, operating
costs are expected to fall as follows:
Longwall Production Target
1.0 Mtpa ~US $65/t
1.5 Mtpa ~US $55/t
3.0 Mtpa ~US $39/t
Expansion Capex: ~$500 million
NRE No. 1
Will result in ~3 Mtpa capacity mine
Wonga Mains development well advanced
Tail Gate & Main Gate development
Advanced for LW installation in FY
2011/12
NRE Wongawilli
Will result in ~2 Mtpa capacity mine
Wonga South Portals started
Order for Joy LW upgrade placed
Opex Capex
Gujarat plans to significantly increase production through its expansion Capex
As infrastructure is upgraded further operational savings will follow
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Longwall to Significantly Increase Production
The Company has longwall extraction implemented at
both NRE No. 1 and NRE Wongawilli Mines
Extraction will be ongoing and targeted to
achieve ~5 Mtpa in 2016
Major coal handling infrastructure is being
progressively upgraded to meet production schedule
Port infrastructure is being upgraded to meet growing
demand for port facilities and streamline coal supply
chain
The increased production will also drive considerable
incremental EBITDA over the long-term
Longwall production is expected to provide substantial
cash flow for deleveraging
Based upon internal estimates the Company
expects to decrease its leverage to under 2.0x by
FY 2016
Longwall Delivery
Deleveraging Profile
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7.6x
3.4x 3.2x
2.3x 1.8x
0.0x
2.0x
4.0x
6.0x
8.0x
2012E 2013E 2014E 2015E 2016E
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Financial Overview
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Ownership & Capital Structure
Key Shareholders
(1) Share price as at April 27, 2012
Share Price(1) $0.18
Shares Outstanding 993.1
Market Cap $184.5
Net Debt $371.9
Enterprise Value $556.4
Capital Structure (3/31/12)
69.6%
18.6%
10.0% 1.8% Corporations
Institutions
Public and Other
Individuals andInsiders
(US$ in millions, except per share data)
28 Note: Management estimates for FY12 ending March 31, 2012 are unaudited
69.6%
30.4% Gujarat NRECoke Limited(Parent)
PublicC a p ita liz a t io n C o u p o n M a tu r ity
C a s h 5 .4$
D e b t:
T e rm B o rro w in g s 3 7 7 .3$ 5 .5 0 % 2 0 1 7
T o ta l D e b t 3 7 7 .3$
T o ta l E q u ity 5 8 2 .0
T o ta l C a p ita liz a t io n 9 5 9 .3$
As o f M a r c h 3 1 , 2 0 1 2
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Historical Financial Summary (US$ in millions)
Revenue
Capex
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EBITDA
Total Assets
NM
Note: Management estimates for FY12 ending March 31, 2012 are unaudited
$127.8
$235.4
$191.2
$0.0
$50.0
$100.0
$150.0
$200.0
$250.0
2010 2011 2012E
$64.7
$49.7
$0.0
$25.0
$50.0
$75.0
$100.0
2010 2011 2012E
$634.3
$937.4
$1,113.6
$0.0
$250.0
$500.0
$750.0
$1,000.0
$1,250.0
2010 2011 2012E
$113.5
$138.4
$262.9
$0.0
$100.0
$200.0
$300.0
2010 2011 2012E
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Credit Statistics
Total Debt / EBITDA Net Debt / EBITDA
EBITDA / Interest Expense Total Assets / Total Debt
30
NM
NM NM
Note: Management estimates for FY12 ending March 31, 2012 are unaudited
4.1x
7.6x
0.0x
2.5x
5.0x
7.5x
10.0x
2010 2011 2012E
3.8x
2.6x
0.0x
2.0x
4.0x
2010 2011 2012E
4.3x
3.6x
3.0x
0.0x
2.0x
4.0x
6.0x
2010 2011 2012E
2.9x
7.5x
0.0x
2.5x
5.0x
7.5x
10.0x
2010 2011 2012E
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Summary
Premium Quality Mines with Longwall Plans in Process
Low Cost Manufacturer of Low Ash Metallurgical Coke
Operational Costs Falling as Production Increases
Premium Quality Mines with Longwalls in Operation
Favorable Long-Term Market Dynamics
Experienced Management and Strong Parent
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Appendix
Appendix For
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Overview of Gujarat NRE Coke LTD (Parent)
Overview
Largest independent producer of metallurgical coke in
India
Indirectly holds ~69% of Gujarat’s ordinary shares
outstanding
Listed on the Bombay and National Stock exchanges,
with a market capitalization of ~$220 million
Approximately 160,000 shareholders
14 dividends paid in the past 9 years, continuous profit
history for the last 15 years, and a credit rating of AA-
for long-term borrowing and PR-1+ for short-term
borrowing
Comparative Size
Rated one of the top 10 companies by profit
performance (Business Today)
Only Indian company to export low ash metallurgical
coke from India to Argentina, Brazil, South Africa and
Europe
Resource
Met coke capacity 1.25 Mt, with the view of increasing
to 4 Mt by 2014/15
33
1
2
3
KANDLA
PORT
GOA PORT
NEW
MANGALORE
PORT
4
5
KRISHNA
PATNAM
PORT
6
1
Plant at Bhachau, Gujarat
2
Plant at Khambalia, Gujarat
3
Plant at Dharwad, Karnataka
4
Proposed Plant, Nayudupeta,
Andhra Pradesh
5
Registered Office, Kolkata
6
Corporate Office, Ahmedabad
1
Plant at Bhachau, Gujarat
2
Plant at Khambalia, Gujarat
3
Plant at Dharwad, Karnataka
4
Proposed Plant, Nayudupeta,
Andhra Pradesh
5
Registered Office, Kolkata
6
Corporate Office, Ahmedabad
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Disclaimer & Important Notice FORWARD LOOKING STATEMENTS AND OTHER MATTERS
UNLESS OTHERWISE NOTED, THE FORECASTED INDUSTRY AND MARKET DATA CONTAINED IN THE ASSUMPTIONS FOR THE PROJECTIONS ARE
BASED UPON MANAGEMENT ESTIMATES AND INDUSTRY AND MARKET PUBLICATIONS AND SURVEYS. THE INFORMATION FROM INDUSTRY AND
MARKET PUBLICATIONS HAS BEEN OBTAINED FROM SOURCES BELIEVED TO BE RELIABLE, BUT THERE CAN BE NO ASSURANCE AS TO THE
ACCURACY OR COMPLETENESS OF THE INCLUDED INFORMATION. GUJARAT NATURAL RESOURCES ENVIRONMENT (“GNM”) HAS NOT
INDEPENDENTLY VERIFIED ANY OF THE DATA FROM THIRD-PARTY SOURCES, NOR HAS GNM ASCERTAINED THE UNDERLYING ECONOMIC
ASSUMPTIONS RELIED UPON THEREIN.
THE INFORMATION AND OPINIONS SUPPLIED BY WOOD MACKENZIE (AUSTRALIA) PTY LIMITED, DOES NOT INCLUDE, NOR SHALL BE CONSTRUED
AS INCLUDING, ADVICE, GUIDANCE OR RECOMMENDATIONS FROM WOOD MACKENZIE TO TAKE, OR NOT TO TAKE, ANY ACTIONS OR DECISIONS IN
RELATION TO ANY MATTER, INCLUDING WITHOUT LIMITATION RELATING TO INVESTMENTS OR THE PURCHASE OR SALE OF ANY SECURITIES,
SHARES OR OTHER ASSETS OF ANY KIND. SHOULD YOU TAKE SUCH ACTION OR DECISION BASED ON SUCH INFORMATION OR OPINION, YOU DO
SO ENTIRELY AT YOUR OWN RISK AND WOOD MACKENZIE SHALL HAVE NO LIABILITY WHATSOEVER FOR ANY LOSS, DAMAGE, COSTS OR
EXPENSES INCURRED OR SUFFERED BY YOU AS A RESULT. FURTHER, WOOD MACKENZIE REPRESENTS THAT ALTHOUGH IT HAS USED
REASONABLE ENDEAVOURS TO OBTAIN RELEVANT FACTUAL INFORMATION WHOLLY FROM PUBLIC SOURCES DEEMED BY IT, IN ITS DISCRETION,
TO BE RELIABLE AT THE TIME THE INFORMATION WAS OBTAINED, IT MAKES NO WARRANTIES OR REPRESENTATIONS ABOUT THE ACCURACY OR
COMPLETENESS OF SUCH INFORMATION. ALSO, ALTHOUGH WOOD MACKENZIE REPRESENTS THAT IT HAS USED REASONABLE SKILL AND CARE
IN INTERPRETING SUCH FACTUAL INFORMATION, IT MAKES NO WARRANTIES OR REPRESENTATIONS ABOUT THE ACCURACY OR COMPLETENESS
OF SUCH INTERPRETATION.
THESE MATERIALS ARE BEING SUPPLIED TO YOU SOLELY FOR YOUR INFORMATION AND FOR USE AT THE PRESENTATION. THIS PRESENTATION
AND THESE MATERIALS MAY NOT BE REPRODUCED, REDISTRIBUTED OR PASSED ON, DIRECTLY OR INDIRECTLY, TO ANY OTHER PERSON OR
PUBLISHED, IN WHOLE OR IN PART, BY ANY MEDIUM OR FOR ANY PURPOSE.
THIS PRESENTATION IS NOT INTENDED TO CONSTITUTE AN OFFER TO SELL OR THE SOLICITATION OF AN OFFER TO BUY ANY SECURITIES IN ANY
JURISDICTION. NO REPRESENTATION, WARRANTY OR UNDERTAKING (EXPRESSED OR IMPLIED) IS MADE IN RELATION TO THIS PRESENTATION.
THE PRESENTATION CONTAINS FORWARD LOOKING STATEMENTS WHICH INVOLVE RISKS AND UNCERTAINTIES AND ACTUAL RESULTS AND
DEVELOPMENTS MAY DIFFER MATERIALLY FROM THOSE EXPRESSED OR IMPLIED HEREIN DEPENDING ON A VARIETY OF FACTORS. NO
RESPONSIBILITY IS TAKEN OR ACCEPTED BY GNM AND/OR ANY OF ITS PARENTS, SUBSIDIARIES, AFFILIATES AND THEIR RESPECTIVE OFFICERS,
DIRECTORS, EMPLOYEES, AGENTS AND ASSIGNS FOR THE ADEQUACY, COMPLETENESS OR ACCURACY OF THE PRESENTATION OR THE
ASSUMPTIONS ON WHICH IT IS BASED AND ALL LIABILITY IS HEREBY EXPRESSLY EXCLUDED AND DENIED. ANYONE USING THE PRESENTATION
DOES SO AT THEIR OWN RISK AND NO RESPONSIBILITY IS ACCEPTED FOR ANY LOSSES WHICH MAY RESULT FROM SUCH USE DIRECTLY OR
INDIRECTLY. RECIPIENTS SHOULD CARRY OUT THEIR OWN DUE DILIGENCE IN CONNECTION WITH THE ASSUMPTIONS CONTAINED HEREIN.
EBITDA AND ADJUSTED EBITDA AS USED IN THIS PRESENTATION AND DEFINED IN THE OFFERING MEMORANDUM FOR THIS OFFERING ARE NOT
FINANCIAL MEASURES CALCULATED IN ACCORDANCE WITH GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (“GAAP”). FOR A RECONCILIATION
OF THESE MEASURES TO THE MOST DIRECTLY COMPARABLE GAAP MEASURES, PLEASE REFER TO THE OFFERING MEMORANDUM FOR THIS
OFFERING.
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Competent Person Statement
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Competent Person Statement
The information in this Presentation that relates to Exploration Results, Mineral Resources or Ore Reserves
is based on information compiled by, in relation to the Coal Resources for both NRE Wongawilli Colliery and
NRE No. 1 Mine, by Mr Barry Clark an employee of Gujarat NRE Coking Coal Ltd, and in relation to the
Coal Reserves for both NRE Wongawilli Colliery and NRE No. 1 Mine, by Mr Kris Markowski, also an
employee of Gujarat NRE Coking Coal Ltd.
Mr Clark is a Member/Fellow of The Australasian Institute of Mining and Metallurgy or the Australian
Institute of Geoscientists. Mr Clark has sufficient experience which is relevant to the style of mineralisation
and type of deposit under consideration and to the activity which he is undertaking to qualify as a
Competent Person as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration
Results, Mineral Resources and Ore Reserves’. Mr Clark consents to the inclusion in the Presentation of
the matters based on his information in the form and context in which it appears.
Mr Markowski is a Member/Fellow of The Australasian Institute of Mining and Metallurgy or the Australian
Institute of Geoscientists. Mr Markowski has sufficient experience which is relevant to the style of
mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify
as a Competent Person as defined in the 2004 Edition of the ‘Australasian Code for Reporting of
Exploration Results, Mineral Resources and Ore Reserves’. Mr Markowksi consents to the inclusion in the
Presentation of the matters based on his information in the form and context in which it appears.
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