GLOUCESTER COAL LTD 2006 Annual Results Media Presentation 25 August 2006

Transcription

1 GLOUCESTER COAL LTD 2006 Annual Results Media Presentation 25 August 2006

2 Our Business Agenda The Gloucester Coal 3 Ticks Rule Operations Profitability Growth Gloucester Coal delivers record profit, sales and performance

3 Gloucester Coal 2006 Financial Highlights A record financial performance, including record profit levels and revenue from the sale of thermal and coking coal from our operations in the Gloucester Basin.

4 2006 Financial Highlights Key Profit Indicators FY 2006 A$m Pro-forma* FY 2005 A$m Change % Revenue EBITDA EBITDA Margin 38% 30% NPAT EPS 50.8c The 2006 annual profit clearly illustrates the substantial margins being achieved on the sale of our coking and thermal coal products. * Pro-forma figures for the year ended 30 June 2005 prepared from financial results for the six month period ended 30 June 2005, plus the results for the last six months of the Company s 2004 financial year.

5 Strengthening Balance Sheet 2006 Financial Highlights FY 2006 A$m FY 2005 A$m Cash & Cash Equivalents Current Ratio Interest Bearing Loans Net Debt Net Assets NTA per Share 88c 44c Gearing* 11% 16% A stronger balance sheet and low gearing provides the Company with the ability to pursue future growth opportunities. * Gearing calculated as Gross Debt to Market Capitalisation (approx $280m)

6 2006 Financial Highlights Responsible Capital Management A$m Exploration within the Gloucester Basin 1.0 Purchase of the 10% share in the Stratford JV 8.3 Purchase of PPE (incl. strategic land acquisitions) 10.4 Share buy-back 12.5 Dividends 16.7 Repayment of borrowings 10.4 Substantial cash flow from operations has been used to fund a range of responsible capital management initiatives

7 Gloucester Coal Operations Performance Experienced Management Products in demand

8 Open Cut Operations Gloucester Coal Mine Operations Duralie Open Cut 1.8 Mtpa Predominantly Coking Coal Successful exploration Stratford Operations Bowens Road North Open Cut 0.9Mtpa Thermal and Coking Roseville Open Cut 0.25Mtpa High value Coking Coal Top Photograph Looking to the North over the Duralie Open Cut, showing the Weismantel Coal Member dipping at 45 degrees to the east Bottom Photograph View over the recently established Roseville Open Cut mine Low risk Open Cut Mines

9 Gloucester Coal Operations Stratford Preparation Plant Stratford Coal Preparation Plant Efficient 2 Stage plant 1 St Stage recovers low ash coking coal 2 nd Stage recovers high ash thermal coal Managed by Gloucester Coal 24 hour day operation 3.2 Mt annual feed capacity Right Photograph Conveyors CV05 & CV04 delivering thermal and coking coal to the product stockpiles Left Photograph Looking to the West over the Stratford 550 tonne per hour preparation plant and the Train loading facility Gloucester Coal operations have recorded another year without a lost time injury

10 Gloucester Basin Operations 100km East of the Hunter Valley coal fields Dedicated local workforce Only coal mine operation on North Coast railway Mining undertaken by Leighton Mining Exploration Authorisations A311 & A315 Location of Operations Right GCL s Exploration Authorisations over the most prospective portions of the Gloucester Basin. Also showing the location of GCL Mining Leases Left Location Map showing Gloucester Basin and GCL Exploration Authorisations Unique location

11 Executive Team Experienced Executive Management Team Technically strong with extensive mining experience Hands on management with strong operational focus Supported by a Board with capable Non-Executives Todd Hutchings Operations Superintendent - Committed management

12 Coal Products Coal Products in demand Coking Coal 0.8 Mtpa In demand high fluidity coking coal Commands a premium price over Newcastle coking coals 100% contracted to the Japanese Steel Mills Thermal Coal 1.2 Mtpa Low cost incremental by-product of coking coal production High ash, high energy thermal blend coal 100% contracted to eight customers In constant demand both for export and domestic markets - In demand products

13 Gloucester Coal Growth Organic Growth Over the horizon Growth Financial Strength Positioned for Growth

14 Mineable Reserves & Resources May 2006 Gloucester Basin Organic Growth Exploration and Development is extending open cut operations towards Main Deposit - 24 Mt was believed to be the only economic deposit Bowens Road North and Duralie commissioned in 2003 Mine Life Resources and Reserves of > 30 Mt can sustain operations beyond Continued discoveries indicate future increases in reserves and resources 3.0 Stratford Deposits Kara ROM 2.0 Production Mtpa. 1.0 Stratford Main Deposit Duralie Open Cuts Clareval seam Grant Chainey Duralie Underground???

15 Gloucester Basin Organic Growth Clareval Seam Evidence of Gloucester Coal s exploration success Clareval seam first intersected in December 2005 Drilling confirms North western and now Eastern extent of coal seam Clareval coal is a low ash high fluidity coking coal Left Photograph Drilling Bore hole DU 023, which intersected 16 metres of Clareval Seam Right Photograph Drill hole cuttings from Bore hole DU 023. Each pile represents a 1 metre sample of material recovered from the drill hole. The 16 piles of black coal are recovered from the Clareval Seam

16 Over the Horizon Growth & Potential Positioned to exploit a range of growth options Clear focus to continue strong company performance Coal is a core competency Concentrate on Australia and first world jurisdictions Will consider acquiring greenfield, brownfield or producing assets Strategic Growth and Business Development Areas Coking coal opportunities, with similar customers portfolio Export thermal focus on large reserve low sulphur Gloucester blend coals Domestic thermal potential securing long term offtake guarantee

17 Continuing to perform profitably, positioned for growth Gloucester Coal: Low risk, flexible operations - Unique location with in demand coal products - Strong management team Profitable - Strong balance sheet - Record revenues Committed to growth - Organic development - Potential acquisitions