Title: Coal International Plc
1Coal International Plc
- Presentation to Investors Analysts
- January 2008
2Disclaimer
- 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
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solicitation by anyone in any jurisdiction (i) in
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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).
3Mission 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
4Shareholders
- 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
5Structure 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
6Directors 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).
7Timeline 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
8Assets
British Columbia
West Virginia
South Wales
Gauley Eagle
West Virginia HQ
Maple Coal
Deepgreen
9Atlantic 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
10Maple 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
112007 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
122007 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
14Energybuild 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
15InvestmentsNorthern 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
16Outlook 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
17Value 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
18Coal International Plc
- Presentation to Investors Analysts
- January 2008