Coal International Plc

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Coal International Plc

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Title: Coal International Plc


1
Coal International Plc
  • Presentation to Investors Analysts
  • January 2008

2
Disclaimer
  • These presentation materials (the Presentation
    Materials) in respect of Coal International Plc
    (the Company) are being issued on a strictly
    private and confidential basis to, and only to,
    Investment Professionals as defined in Article 19
    of the Financial Services and Markets Act 2000
    (Financial Promotion) Order 2005 (the Order) or
    high net worth entities and other persons to whom
    it may lawfully be communicated falling within
    Articles 48 to 50A of the Order. These
    Presentation Materials are only available to and
    are only being made available to such persons who
    have professional experience in matters relating
    to investments and those persons who do not have
    such experience should not act upon or rely on
    these Presentation Materials.
  • The Presentation Materials do not constitute or
    form part of any offer for sale or subscription
    or any solicitation for any offer to buy or
    subscribe for any securities in the Company nor
    shall they or any part of them form the basis of
    or be relied upon in any manner or for any
    purpose whatsoever. Reliance on these
    Presentation Materials for the purpose of
    engaging in an investment activity may expose you
    to a significant risk of losing all the property
    invested. Accordingly, neither the Company nor
    its directors makes any representation or
    warranty in respect of the contents of the
    Presentation Materials.
  • The information contained in the Presentation
    Materials is subject to amendment, revision and
    updating in any way without notice or liability
    to any party. The presentation materials contain
    forward-looking statements which involve risk and
    uncertainties and actual results and developments
    may differ materially from those expressed or
    implied by these statements depending on a
    variety of factors. No representation or
    warranty, express or implied, is made as to the
    fairness, accuracy or completeness of the
    information or opinions contained herein, which
    have not been independently verified. Neither
    the delivery of these Presentation Materials at
    any time nor the offering, sale or delivery of
    any shares shall in any circumstance create any
    implication that there has been no adverse
    change, or any event reasonably likely to involve
    any adverse change, in the condition (financial
    or otherwise) of the Company since the date of
    these Presentation Materials.
  • The Presentation Materials are being supplied to
    you for your own information and may not be
    reproduced, further distributed, passed on, or
    the contents otherwise divulged, directly or
    indirectly, to any other person (except the
    recipients professional advisers) or published,
    in whole or in part, for any purpose whatsoever.
    In particular, they must not be distributed to
    persons with addresses in Canada, Australia,
    Japan or the Republic of Ireland, or to persons
    with addresses in the United States of America,
    its territories or possessions, or to any
    national or resident of Canada, Australia, Japan,
    the Republic of Ireland or the United States or
    to any corporation, partnership, or other entity
    created or authorised under the laws thereof.
    Any such distribution could result in a violation
    of Canadian, Australian, Japanese, Irish or
    United States law. The Presentation Materials may
    not be used for the purpose of an offer or
    solicitation by anyone in any jurisdiction (i) in
    which such offer or solicitation is not
    authorised, or (ii) in which the person making
    the offer or solicitation is not qualified to do
    so or (iii) to any person to whom it is unlawful
    to make such an offer or solicitation.
  • References to tons means short tons (being
    907kg) and references to tonnes means metric
    tonnes (1,000kg).

3
Mission Statement
  • Build and grow a portfolio of metallurgical and
    thermal coal properties to supply the global
    steel and power industries
  • Acquire properties that can achieve significant
    production in the short term with long term
    growth potential
  • Committed to the highest standard of employee
    health safety and environmental compliance
  • Build a team of highly trained and motivated
    employees
  • Create customer loyalty with consistent product
    quality and reliable supply
  • Achieve operating and market scale to earn a
    premium market valuation

4
Shareholders
  • No of Shares in issue 97.5m Market Value (MV)
    17.6m (US33.5m)
  • Current share price 18.5p
  • Net Assets 58.6m
  • Investments
  • 11.4m shares (20) in Northern Energy Mining
    Inc. (NEMI) (MV 2.9m)
  • Metallurgical Coal Exploration Development
    Production Company
  • Tumbler Ridge British Columbia
  • Associates
  • 30.0m shares (23) in EnergyBuild Group (MV
    4.5m)
  • Anthracite coal producer in South Wales, U.K.
  • Principal shareholders
  • Cambrian Mining 34 (Fully Diluted 47)
  • RAB Special Situations (Master) Fund 9.59
  • Bank of New York (Nominees) Ltd 4.99
  • Lorneville Holdings Ltd 4.26

as at 21 January 2008
5
Structure of company
Cambrian Mining Plc
34
Others
66
23
20
100
Energybuild Group Plc
NEMI
King Coal Maple Coal
Atlantic Development Corporation
Gauley Eagle
Maple Coal
Deepgreen
6
Directors Management
  • Directors
  • W. Durand Randy Eppler
  • Chief Executive Officer
  • John Byrne
  • Non-Executive Chairman
  • John Conlon
  • Non-Executive Director
  • US Operations
  • Dan L. Stickel
  • President
  • Larry Evans
  • Vice President Engineering
  • Amanda Lawson
  • Chief Financial Officer
  • Chief Executive Officer since July 2005 30
    years experience in resource development
    finance
  • Executive Chairman of Cambrian Mining Plc30
    years experience in resource industry
  • Executive Director of Cambrian Mining Plc30
    years experience in the mining industry
  • 30 years coal mining industry experience
    operations management, engineering, property
    development. Arch Coal, US Steel, Drummond Co.
  • 20 years coal mining industry experience
    operations management, engineering, property
    development. Peabody Coal, Marshall Miller
    Associates.
  • 5 years in accounting, audit, corporate control
    and financing. Ernst Young, Cline Resources
    (Magnum).

7
Timeline of Achievements
First Metallurgical Coal Sales October 2007
Refurbishment of Maple Coal Plant June 2007
Eagle No 1 Mine Opened June 2007
Acquisition of EBG Interest May 2006
Property Acquisitions at Gauley Eagle Ongoing
from November 2006
Crooked Run Surface Mine February 2006
Refurbishment of Gauley Eagle Prep Plant March
2006
Consolidation of US Operations December 2005
Silo Mains Underground Mine February 2006
Hiring of Dan Stickel August 2005
Acquisition of NEMI Interest November 2005
First Acquisitions June 2005
Hiring of Randy Eppler July 2005
Admission to AIM April 2005
2004
2005
2006
2007
8
Assets
British Columbia
West Virginia
South Wales
Gauley Eagle
West Virginia HQ
Maple Coal
Deepgreen
9
Atlantic Leaseco, LLC, West Virginia
  • 17,730 acre land position
  • Reserves Measured and Indicated(saleable tons
    in millions)
  • Surface 6.8
  • Underground 17.1
  • Total 23.9
  • Operations
  • Crooked Run Surface Mine
  • Silo Mains Underground Mine
  • Atlantic Leasco Preparation PlantCapacity 3
    million raw tons per annum
  • Product Thermal and Metallurgical Coals

10
Maple Coal Co
  • 21,200 acre land position
  • Reserves Measured and Indicated(saleable tons
    in millions)
  • Surface 16.3
  • Underground 17.4
  • Total 33.8
  • Eagle No 1 Underground Mine
  • Katie Coal Preparation PlantCapacity 2 million
    raw tons per annum
  • Product Metallurgical Coal

11
2007 Financial Summary
  • Turnover increased to 18.1m (Restated 2006
    2.9m)
  • Loss after taxation of 12.4m (Restated 2006
    8.m)
  • Net asset value 58.6m (Restated 2006 62.m)
  • Loss per share from continuing operations of
    17.4p
  • (Restated 2006 16.7p)
  • Details of the restatement of the financial
    statements for FY2006 are in note 1 of the
    financial statements

12
2007 Operating Highlights
  • Record production and sales from Gauley Eagle
    property
  • New leases acquired covering a further 2,760
    acres of land adjacent to or synergistic with
    Gauley Eagle operations
  • Increased proven probable reserves by 31 from
    44.1M to 57.7 M tons
  • Rehabilitation of the Katie preparation plant at
    the Maple property completed on time and on
    budget
  • Production commenced on schedule at Maple Coals
    Eagle No. 1 underground metallurgical coal mine
  • Equity placing raised approximately 8.1 million
    cash (net of expenses)
  • US7 million third party equipment financing
    package with CIT Equipment Finance and US4
    million placed with First National Credit
    Corporation
  • Active permitting efforts underway to expand
    production base

13
Actual
Projected
14
Energybuild Group Plc
  • Product Anthracite coal
  • Percentage owned 23.08
  • Percentage owned combined with Cambrian Mining
    Plcs shareholding 50.59
  • Reserves (recoverable tonnes in millions)
  • Underground 7.6 Proven and Probable Reserves
  • Market Value of investment 4.5m

as at 21 January 2008
15
InvestmentsNorthern Energy Mining Inc NEMI
  • Vancouver basedCoal Investment Company
  • 20 share in the Peace River Coal Joint Venture
  • Anglo Coal Limited 60 JV Manager
  • Hillsborough Resources 20
  • Peace River Coal Joint Venture
  • Operates the Trend Mine
  • Hard Coking Coal PCI coal
  • 16.6m tonnes of saleable Reserves (proven
    probable)
  • 50 interest in the Belcourt-Saxon Joint Venture
  • Hard Coking Coal PCI Coal
  • Bankable Feasibility Study in Development
  • Projected production of 4-8m tonnes per annum by
    2011

16
Outlook West Virginia Operations
Calendar Year 2008 Planned 2009
Potential Tons Sold (Millions) 1.7 2.8 Atlant
ic Leaseco 1.0 1.7 Maple Coal 0.7 1.1 Curr
ent Contract Pricing (/T) Atlantic
Leaseco Mid-High 50s Low 60s Maple
Coal Mid 80s High 70s Target Cash Costs
(/T) Atlantic Leaseco Low 50s Mid
50s Maple Coal High 50s Mid 50s Based on
current operating performance
17
Value Proposition
  • Established production base
  • Contracts in place for 2008 reflecting stronger
    markets
  • Costs of production well defined
  • Largely passed through start-up challenges
  • Operating team in place
  • Significant growth potential further expansion
    tied to profitable contracts
  • AIM listed company with current production
  • MV of investments 7.4m (42 of MV)
  • West Virginia operations valued at only 10.2m

18
Coal International Plc
  • Presentation to Investors Analysts
  • January 2008
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