Investor Presentation September 2011

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<ul><li> 1. TSX/JSE : FMCSeptember 2011EMERGING SOUTHERN AFRICAN COAL COMPANY Investor PresentationA Forbes &amp; Manhattan Group Company</li></ul><p> 2. Disclaimer TSX/JSE : FMCThis presentation contains forward-looking statements under Canadian securities legislation. Forward-looking statements include, but are not limited to, statementswith respect to the development potential and timetable of the Magdelena and Aviemore projects; the Companys ability to raise additional funds as necessary;the future price of coal; the estimation of mineral resources; conclusions of economic evaluations (including scoping studies); the realization of mineral resourceestimates; the timing and amount of estimated future production, development and exploration; costs of future activities; capital and operating expenditures;success of exploration activities; mining or processing issues; currency exchange rates; government regulation of mining operations; and environmental risks.Generally, forward-looking statements can be identified by the use of forward-looking terminology such as plans, expects or does not expect, is expected,budget, scheduled, estimates, forecasts, intends, anticipates or does not anticipate, or believes, or variations of such words and phrases orstatements that certain actions, events or results may, could, would, might or will be taken, occur or be achieved. Forward-looking statements arebased on the opinions and estimates of management as of the date such statements are made. Estimates regarding the anticipated timing, amount and cost ofmining at the Companys projects are based on assumptions underlying mineral resource estimates and the realization of such estimates; results of previous miningactivities at the projects, and detailed research and analysis completed by independent consultants and management of the Company; research and estimatesregarding the timing of delivery for long-lead items; and knowledge regarding certain factors described in the technical report filed under the profile of theCompany on SEDAR. Capital and operating cost estimates are based on results of previous mining activities, research of the Company and independentconsultants. Production estimates are based on mine plans and production schedules, which have been developed by the Companys personnel andindependent consultants. Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results,level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward looking statements,including but not limited to risks related to: timing and availability of external financing on acceptable terms; unexpected events and delays during construction,expansion and start-up; variations in ore grade and recovery rates; receipt and revocation of government approvals; actual results of exploration and miningactivities; changes in project parameters as plans continue to be refined; future prices of coal; failure of plant, equipment or processes to operate as anticipated;accidents, labour disputes and other risks of the mining industry. Although management of the Company has attempted to identify important factors that couldcause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated,estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially fromthose anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Company does not undertake toupdate any forward-looking statements except in accordance with applicable securities laws.Investors are advised that National Instrument NI 43-101 of the Canadian Securities Administrators (NI 43-101) requires that each category of mineral reserves andmineral resources be reported separately. Mineral resources that are not mineral reserves do not have demonstrated economic viability. Johan Odendaal, B.Sc.(Geol.), B.Sc.(Hons)(Min. Econ.), M.Sc. (Min. Eng.), a director of Minxcon and an independent Qualified Person, as defined in National Instrument 43-101 hasreviewed and approved the scientific and technical information contained in this presentation.Cautionary Note to U.S. Investors Concerning Estimates of Measured, Indicated or Inferred ResourcesThe information presented uses the terms measured, indicated and inferred mineral resources. United States investors are advised that while such terms arerecognized and required by Canadian regulations, the United States Securities and Exchange Commission does not recognize these terms. Inferred mineralresources have a great amount of uncertainty as to their existence, and as to their economic and legal feasibility. It cannot be assumed that all or any part of aninferred mineral resource will ever be upgraded to a higher category. Under Canadian rules, estimates of inferred mineral resources may not form the basis offeasibility or other economic studies. United States investors are cautioned not to assume that all or any part of measured or indicated mineral resources will ever beconverted into mineral reserves. United States investors are also cautioned not to assume that all or any part of an inferred mineral resource exists, or iseconomically or legally mineable. 2 3. Company OverviewTSX/JSE : FMCForbes &amp; Manhattan Coal Corp.s (Forbes Coal or the Company) vision is tobuild a high quality bituminous and anthracite coal company with productioncapacity in excess of 10 million tonnes per year Company SummaryHeadquarters: Toronto, Ontario Total coal resource 51.7 million tonnes Bituminous (NI 43-101):50.8 million tonnes Anthracite1Number of 2 (Magdalena Historical annual saleable648,000 saleable tonnes inmines:and Aviemore)production: fiscal 2011Mine location:Kwa-zulu, Natal, 2 year target production2:1,000,000 saleable tonnesSouth Africa Bituminous - Magdalena 420,000 saleable tonnes Anthracite - Aviemore Production capacity: 1.5 million saleable tonnes1. As set out in the Technical Report of the Company entitled An Independent National Instrument 43-101 Technical Report on Slater Coal and Subsidiaries,KwaZulu-Natal Province, South Africa, dated March 1, 2011, prepared for the Company by Minxcon (the Technical Report). A copy of the TechnicalReport is available under the profile of the Company on SEDAR at 32. As per managements guidance 4. Investment HighlightsTSX/JSE : FMC Strategic assets in one of the best developed coal markets in the world Substantial resource base of high quality bituminous and anthracite coal Ability to TRIPLE production within three years from 2010 historic levels using existing infrastructure and capacity In-place infrastructure to reach export corridors and growing domestic market Substantial upside through organic production growth and strategic acquisitions Experienced coal-focused management teamAs per managements guidance4 5. Experienced Management TeamTSX/JSE : FMC Stephan Theron, B.Comm, CGAPresident and Chief Executive OfficerExtensive management, project finance and equity analysis experience in the mining, energy and infrastructuresectorsPrevious capital and project experience includes Weir PLC and AMEC PLCFormer sector head materials and energy with a specific focus on South African coal market Malcolm Campbell, Pr. Cert. Eng. (Mining)Chief Operating OfficerFourth generation coal miner with 25 years industry experienceSkilled in operational management, turnaround strategies and business developmentSpent 20 years with Anglo Coal; held a variety of positions including Regional Manager for New BusinessDevelopment and Strategy Johan Louw, Pr. Eng.Vice President, Business DevelopmentCapital project specialist with over 15 years experience in the Southern African mining and energy sectorsFormer project manager for Weir PLC and KBR Inc.Former senior plant metallurgist for Anglo Coal covering numerous export focused coal mines Kuda Muchenje, VP Exploration &amp; Development Seasoned exploration geologist with over 15 years experience in the generation of exploration targets and management of exploration and evaluation programs Former Country Manager(Mozambique)for Rio Tinto Deb Battiston, CGA Chief Financial Officer Financial specialist with over 20 years experience in the mining sector Kevern Mattison, NHD (Mining), B. Tech. General Manager More than 20 years operational coal mining experience Spent over 20 years with Anglo Coal, most recently Manager Mining 5 6. DirectorsTSX/JSE : FMC Stan Bharti, P.Eng.Executive Chairman Business consultant and a professional mining engineer with more than 25 years experience Founder and Chairman of Forbes &amp; Manhattan, Inc., a private merchant focused on the resource sector, since July 2001 Stephan Theron, B.Comm, CGA , President and CEO David Stein, MSc., CFA Director Over nine years of asset evaluation, research and corporate finance experience President and Director of Aberdeen International (seed investor in Forbes Coal) Grant Davey, P. Eng.Director Mining Engineer with close to 20 years experience in coal, platinum and gold mining industry Previously held senior operational management roles for Anglo American in South Africa &amp; Australia David Gower, P. Geo.Director Professional Geologist and the former Global Head of Nickel Exploration for Falconbridge Ryan Bennett, M.Mining Eng.Director Masters degree in Mining Engineering from the Colorado School of Mines Extensive technical mining project analyses experience Senior Partner of Resource Capital Fund;(significant shareholder in Forbes Coal)6 7. Progress to Date TSX/JSE : FMC Corporate Milestonesdual listed with a growing management team Co-Listied on the Johannesburg Completed RTO within 60 days, began tradingStock Exchange debut under theon the Toronto Stock Exchange under the symbolClosed CDN$42 million capital raise at $4.55/share; symbol FMC;; Experienced FMCForbes Coal increased ownership in Slater Coal toCOO joined FMCSeptember 2010 76.75%; Completed second NI 43-101 TechnicalJuly 2011 Report March 2011 Operational Highlightsproduction up 34% since acquiring the Slater Coal propertiesReported a 45% Signed three year offtake agreement increase inwith leading energy trading companyproduction and 65%for 1.75 million tonnes of thermal coal;Released fiscal 2011 full year results: FMC increase in averageIncreased export capacity at Navitrade Terminal January and February 2011 production produced 648,000 saleable tonnes monthly revenue for at Richards Bay; Magdalena upgraded miningincreases 28% (combined) and $16.5 million EBITDA (for 12 Q1 2012 operations; increased saleable productionApril 2011months ended February 28,2011 at Slater capacity by 330,000 tonnes per annumCoal properties)August 2011December 2010May 2011 7 8. Coal Markets Overview TSX/JSE : FMCThermal Metallurgical Aviemore one of four listed metallurgical (anthracite) coal Thermal (bituminous) coal soldproducers in South Africa directly to independent industrial companies in South Africa Cost-effective replacement for coking coal/coke DomesticThermal coal sold at circa US$80 per tonne vs low quality coal sold Applications include iron ore to Eskom priced at US$20 - 30 per pelletizing, PCI for blast furnaces, tonne calcining for electrode manufacturing, ferroalloys and power generation Demand increasing from emerging Demand driven by the metal refining Asian markets, especially India and industry China Asia dominates demand for anthracite Indian government expecting coal domestic coal shortfall of approx. 112 o 83% of global imports; 95% of million tonnes for year ended Marchexpected export demandExport 2012; 35% increase from previous forecastsgrowth Pricing highly correlated with PCl coal South African coal exports to India prices increased 161% 2008 2009 Australian coal producers starting to China imported165 million tonnes of settle PCl contracts at a record US$275 coal in 2010, up 31% from prior yearper tonne FOB for April June quarter 1Source: Company reports1. McCloskey Coal Report, March 22, 2 011 8 9. Established Mining Region TSX/JSE : FMCSource: Company reports9 10. TSX/JSE : FMCCompany Outlook10 11. 2010 2013 Mine PlanTSX/JSE : FMC Increasing production: saleable production is expected to grow at a CAGR of 41% from 2010 to 2013 Driven by expansion of production from the Magdalena and Aviemore underground minesSaleable Production1(000 t) 1,423 1,061648 505 2010FY 2011FY2012FY2013FY BituminousAnthracite 1.Source: National Instrument 43 101 Report (Minxcon March 1, 2011) available under the profile of the Company on SEDAR at 11 12. Organic Growth Opportunities TSX/JSE : FMCRamp up at Magdalena Double production from fiscal 2010 to fiscal 2013 FY2011 CAPEX: $9.7 million Estimated FY2012 CAPEX: $12.4 millionIncrease wash plant recovery rates Improve from current level of 60% to 70% Investigate product upgrade potential FY2011 CAPEX: $1.5 million Estimated FY2012 CAPEX: $1.2 millionAviemore anthracite operations Ramp-up saleable production to 500,000 by tonnes/ year by fiscal 2014 FY2011 CAPEX: $0.16 million Estimated FY2012 CAPEX: $3.7 millionSource: Company reports, all figures in CDN $ unless otherwise indicated 12 13. Positioned for Multi-Year Export Growth TSX/JSE : FMCSECURED ADDITIONAL EXPORT CAPACITY AT RICHARDS BAYMilestone agreement inked on December 7, 2010 increasesexport capacity incrementally by 960,000 tonnes per annumfor a total export capacity of 1,157,000 tonnes in 2013.SIGNIFICANT OFFTAKE AGREEMENT PROVIDES STEADYCASH FLOWThree year offtake agreement reached with global energy tradingcompany for 1.75 million tonnes (total) of thermal coalCash flow from offtake agreement will fund continued ramp up ofproduction at the two operating mines13 14. External Growth OpportunitiesTSX/JSE : FMCTarget consolidation in area 6 mining operators estimated in the region 1 acquisition opportunity currently identified in Kwa-Zulu, Natal, South Africa Substantial enhanced upside by improving acquired business operating practices Increased export allocation and marketing advantage Synergy in product base and cost savings with central management teamSource: Company reports 14 15. Mining ResourceTSX/JSE : FMC NI 43 101 Global Resource1MeasuredIndicated Inferred MI &amp; I YearlyLOMROM2Magdalena51.7 m-- 51.7 m 1.0 m+ 20 yearsBituminousAviemore1.6 m 34.1 m 15.1 m 50.8 m0.25 m+ 20 yearsAnthracite1. Source: National Instrument 43 101 Report (Minxcon March 1, 2011) available under the profile of the Company on SEDAR at As per managements guidance 15 16. U/G LOM Production Profile 1 TSX/JSE : FMC 2,000,000 1,800,000 1,600,000 1,400,000 1,200,000Tonnes 1,000,000800,000600,000400,000200,000- 2012 2013 2014 2015 2016 20172018 2019 2020 2021 Mag...</p>


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