annual general meeting presentation (final) · 2012. 11. 30. · andrew salter anz foreign exchange...

ASX RELEASE 30 November 2012

Perth: Level 2 Aquila Centre, 1 Preston Street, Como WA 6152 Telephone (61) 8 9423 0111 Facsimile (61) 8 9423 0133 Brisbane: Level 18, 10 Eagle Street, Brisbane QLD 4000 Telephone (61) 7 3229 5630 Facsimile (61) 7 3229 5631 Johannesburg: Block C, Ground Floor, 28 Sloane Street, Bryanston 2191, Gauteng, South Africa (27) 11 4631340 Facsimile (27) 11 4635083

Annual General Meeting Presentation

Aquila Resources Limited is pleased to attach a copy of the powerpoint presentation that will be delivered today at the Company’s Annual General Meeting to be held at the Hyatt Regency, Perth. Tony Poli Executive Chairman For further information regarding this announcement, please contact Tony Poli. Telephone: (08) 9423 0111 Facsimile: (08) 9423 0133 Email address: [email protected] Visit us at: www.aquilaresources.com.au

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Annual General Meeting – November 2012

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Aquila Annual General Meeting 2012 2

DISCLAIMER

No representation or liability: No representation or warranty is made as to the fairness, currency, accuracy, completeness, reliability or reasonableness of this presentation, or any opinions, conclusions and forward-looking statements it contains or any other information which Aquila Resources Limited (“Aquila”) provides to you (whether in this presentation or otherwise). Except to the extent required by law, Aquila does not undertake to advise any person of any information coming to its attention (including, without limitation, correcting or updating information) relating to the financial condition, status or affairs of Aquila or its related bodies corporate.

To the maximum extent permitted by law, Aquila and its related bodies corporate and officers, employees and advisers are not liable for any loss or damage (including, without limitation, any direct, indirect or consequential loss or damage) suffered by any person directly or indirectly as a result of relying on this presentation or otherwise in connection with it.

Forward-looking statements: This presentation is heavily dependent on forecasts, projections or forward-looking statements (together the “Forward-looking Statements”). No representation or warranty is given as to the accuracy, completeness, reliability, financial feasibility, likelihood of achievement or reasonableness of any Forward-looking Statements contained in the presentation. Forward-looking Statements are by their nature subject to significant uncertainties and contingencies and no representation is made that any Forward-looking Statements will come to pass.

Seek your own independent advice: Do not rely on this presentation to make an investment decision. This presentation has been prepared without consideration of your objectives and needs (including, without limitation, the need if any for the information to be accurate, reasonable, complete or reliable) and financial situation. You should make your own independent assessment of the information in the presentation and seek your own independent professional financial, taxation and legal advice in relation to the information and before taking any action in relation to any matter contained in the presentation.

Not an offer: This presentation is not intended to be an offer for subscription, invitation, solicitation or recommendation with respect to securities in Aquila in any jurisdiction. Without limiting the foregoing, this presentation is not intended as an offer, invitation, solicitation or recommendation with respect to the purchase or sale of any security in the United States, United Kingdom or Australia or to any person to whom it is unlawful to make such an offer, invitation, solicitation or recommendation. No shares or other securities in Aquila have been nor will be registered under the US Securities Act.

This presentation does not constitute an advertisement for an offer or proposed offer of securities. It is not intended to induce any person to engage in, or refrain from engaging in, any transaction.

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A volatile year for the global economy…

▲ European sovereign debt crisis ◆ High debt levels across the Eurozone, austerity measures, reduced GDP growth, increased unemployment and

heightening political/social tensions

▲ Soft landing in China◆ Government has reduced stimulus in order to curb domestic inflation, leading to a slowdown in GDP growth

(albeit from a high base)

▲ Low growth and uncertainty in the US◆ Soft US recovery combined with fiscal uncertainty leading up to the presidential elections

THE GLOBAL ECONOMY

GDP Growth – % year on year 2011 2012Euro-area 1.5 -0.4China 9.3 7.6US 1.8 2.2World 3.0 2.5

Source: J.P. Morgan

Aquila Annual General Meeting 2012

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020406080

100120140160180200

Spo

t Iro

n O

re (U

S$/

t)

Spot Iron Ore - CFR China

020406080

100120140160180200

0

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800

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1,00

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CIF

Cos

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na (U

S$/

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Volume (mt)Vale Rio Tinto BHP Billiton FMGOther Australia Other Brazil India AfricaChina Other

5

… and a volatile year for iron ore

▲ From April to September spot iron ore prices dipped 36% to below US$97/t CFR China before recovering quickly to over US$121/t

▲ Iron ore exports to China are underpinned by expensive domestic supply, with a large proportion predicted to cost more than the long term break even price

IRON ORE PRICE

Source: UBS data, Aquila analysis

Spot iron ore – CFR China

Source: Macquarie

Supply curve to Chinese market for iron ore fines

Approximately 400Mtpa of material comes in above long run incentive prices


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Sustained strength of the Australian dollar

▲ Commodity-linked Australian dollar has remained stable above parity since early 2011 despite commodity prices falling by more than 19% during the past year

▲ Continued strength above parity due largely to purchasing of Australian dollars by foreign central banks

▲ Expected to stay at or above parity for the next couple of years

AUSTRALIAN DOLLAR

“I actually think the fair value of the Aussie dollar is somewhere

between 90 and 95 US cents, based on

commodity prices and interest rate differentials”

Andrew SalterANZ Foreign Exchange Strategist16 November 2012

Foreign exchange movements – last ten years

0.50

0.60

0.70

0.80

0.90

1.00

1.10

AU

D/U

SD

Source: Oanda.com


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25

50

75

100

125

150

Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12

Aquila Atlas Iron Brockman Mining Flinders Mines Mount Gibson Iron

7

Comparison of Aquila’s share price with other bulk producers and developers

▲ Over the past 12 months, ASX-listed bulk commodity companies have seen their share prices decline significantly due to falling commodity prices amidst global economic uncertainty

▲ Increased risk aversion to developers

AQUILA SHARE PRICE PERFORMANCE


Aquila’s share price relative to selected ASX-listed peers over the last 12 months (rebased to 100)

(55%)

Source: IRESS as at 28 November 2012, J.P. Morgan

(52%)(48%)(36%)

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New generation of Chinese leadership revealed, reducing uncertainty

NEW LEADERSHIP IN CHINA

▲ Xi Jinping succeeded Hu Jintao as leader of the Communist Party

▲ Anticipated to be a catalyst for investment

▲ Macquarie Bank estimates that more than 80% of business decisions have been held back


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46.0

48.0

50.0

52.0

54.0

56.0

Jan

2011

Mar

201

1

May

201

1

Jul 2

011

Sep

201

1

Nov

201

1

Jan

2012

Mar

201

2

May

201

2

Jul 2

012

Sep

201

2

Total PMI New orders

418 274 356 376 371 373 376 378 381 384

453 572612 659 673 697 722 746

768 787

456 388454 477

488 510 534556 579 603

0200400600800

1,0001,2001,4001,6001,800

Developed China Emerging markets

9

Chinese economy appears set to continue growing at a sustainable rate

CHINESE ECONOMY AND STEEL CONSUMPTION

▲ Slowdown in Chinese GDP must be kept in perspective, easing from year-on-year GDP growth of approximately 10%

▲ China is home to approximately 1.3 billion people with GDP of over US$7 trillion

▲ Purchasing Managers Index showing signs of recovery

▲ Steel consumption forecast to continue growing at a healthy rate, due to increased urbanisation/steel intensity

Chinese purchasing managers index (PMI)

Source: ISM, Reuters Thompson, Macquarie Research Nov 12 Source: Worldsteel, Macquarie Research Nov 12


Crude steel consumption (Mt)

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LOCATIONStage 1: 70km south of Pannawonica, in the Pilbara region of Western Australia

ESTIMATED MINE LIFEAt least 15 years from Stage 1

RESOURCES(1) (JORC)

1,713Mt* @ 56.7% Fe264Mt Measured 500Mt Indicated949Mt Inferred

RESERVES(1) (JORC)

445Mt @ 57.01% FeProved and Probable

PRODUCTSDirect ship channel iron and bedded iron fines

AQUILA INTEREST50%

PROJECTED PRODUCTION RATEAt least 30Mtpa from Stage 1

PROJECT DETAILS

WEST PILBARA IRON ORE PROJECT

*West Pilbara Iron Ore Project and widerPilbara tenement areas

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Dedicated rail line, linking mining area to Anketell Port

▲ 3 mining hubs: North, Central and South

▲ Drill & Blast, Load & Haul operation

▲ Processing of all ore at Central Processing Facility (CPF)

▲ 282km from Mine to Anketell Port

▲ Single truck with 4 passing sidings

▲ Anketell Point is supported by State Govnernment as the

next greenfields port development in the Pilbara

▲ Designed to accommodate circa 250,000dwt Cape class

vessels

▲ Port is easily expandable up to approximately 350Mtpa

capacity as required

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May 2012: State Government commences land acquisition for Anketell Port

June 2012: Feasibility Studies for the Mt Stuart Iron Ore Joint Venture and the Red Hill Iron Ore Joint Venture confirmed the technical and economic viability of two key iron ore suppliers to the West Pilbara Iron Ore Project

August 2012: 490Mt (40%) Resource increasing from previous Resource Statement, totalling 1.713Bt across entire project

October 2012: “Base Case” total project capital costs of A$7.4bn(1) and cash costs of A$24.2/t(1) FOB (exc. royalties)

October 2012: Stage 1 Capital Optimisation Study indicates that, in addition to mining fleet, up to A$2.4bn(1) in upfront capital requirements can be outsourced to third party infrastructure and service providers

▲ Aquila and its joint venturer in the West Pilbara Iron Ore Project, AMCI, were unable to reach agreement on the proposed budget for the 2012/2013 financial year. Aquila remains hopeful that this will be resolved in early 2013


1. Real July 2012

Overview of recent developments

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CAPITAL & OPERATING COST

West Pilbara Iron Ore Project recently updated capital & operating cost estimates

Capital Costs

▲ Total Base Case capital costs now estimated at A$7.4bn(1)

▲ Increase since July 2010 primarily driven by additional costs to comply with the Anketell Port Master Plan, revised owners costs and escalation over the period

Operating Costs

▲ Base Case operating costs were revised to A$24.2/dmt(1) FOB (exc. royalties)

▲ Project benefits from:◆ Low strip ratio (1.13:1)◆ Simple Drill and Blast, Load and Haul operation◆ Direct shipping ore

Base Case

Capital Costs (A$m)

Port 2,510

Rail 2,125

Mine 1,028

Total Direct Costs 5,663

PMC 255

Contingency 713

6,631

Owners Costs 781

Total Capital Costs(1) 7,411

Operating Costs (A$/dmt)

Total Operating Costs(1) 24.201. Real July 2012


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1. Real July 2012

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CAPITAL OPTIMISATION

▲ Strong interest from reputable service providers in providing key infrastructure and services packages

▲ Potential to reduce capital costs by up to A$2.4bn(1) (A$7.4bn A$5.0bn) with a corresponding increase in operating costs of up to A$15/dmt(1) (A$24/dmt A$39/dmt)

▲ Strong operating margin demonstrates the capacity of the West Pilbara Iron Ore Project to accommodate potential outsourcing solutions

▲ Opportunity to transfer risk to third party infrastructure and service providers and increase overall project returns through cost saving efficiencies

▲ Additional opportunities exist to further reduce capital requirements

Capital Optimisation Study demonstrates potential for substantial capital cost reductions

POTENTIAL PACKAGES TO BE OUTSOURCED

◆ Above rail operations

◆ Port infrastructure including: shiploader, stockyards & reclaimer, train unloading & stacking, conveyor systems

◆ Power generation & associated infrastructure

◆ Port & mine accommodation camps

◆ Fuel supply & distribution

◆ Tug supply & services

◆ Central processing facility


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Previous Experience

▲ Project Director, Fortescue Metals Group, Solomon Mine Project

Elements of a successful project

▲ Opportunities for process/step changes and efficiencies through innovation (e.g. modular construction)

▲ Engineering optimisation, through continuous value management

▲ Efficient logistics planning

▲ Ongoing planning/coordination with all contractors and stakeholders through effective communication

▲ Creating unique and safe work environments

▲ Dynamic delivery schedule, reviewed regularly

BLAKE CANNAVO - PROJECT DELIVERY EXPERIENCE

Over 24 years of experience gained in diverse building, infrastructure and resource projects, valued at up to $8 Billion


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MODULAR CONSTRUCTION

The modular construction approach can deliver cost reductions and time savings


Train load out bin – largest load ever permitted by Main Roads on gazetted road

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OVERSEAS FABRICATION


Key equipment fabricated in Thailand, achieving considerable cost savings

Pre-assembly of train load-out bin Pre-fabricated ROM bins with liners installed

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LOGISTICS


Load Vessel and Unload Vessel

Successful project delivery through careful management of the logistics corridor

Vessel from Thailand with 30,000cbm/3,000t of modules Unloading of conveyor module

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LOGISTICS (CONT.)


Successful project delivery through careful management of the logistics corridor

Load Truck and Transport to Site

Crushing hub platform lower section – 75t (15Lx10Wx11H) ROM bin – 315t (9Lx9Wx13H)

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PROCUREMENT


Optimal procurement solutions sourced from Australian and international providers

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DEVELOPMENT TIMETABLE


Q2 2013Mining lease

granted

Q1 2014Major

construction work starts

Q2 2016Major mine

construction completed

Q4 2016Major rail construction complete

Q2 2014Rail tenure granted

(state rail licence)

Q1 2017First ore on ship

Q3 2016Port construction

completed

2013 2014 2015 2016 2017

Q2 2014All government primary approvals granted

Q4 2016First ore on train

Assuming that all major government approvals are in place (including the State Rail Licence) by the December Quarter 2013, API estimates construction could commence in early 2014, with first ore on ship in early 2017

Aquila is investigating opportunities to accelerate the development schedule

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LOCATION25 km south-east of Moranbah in Queensland’s Bowen Basin region

ESTIMATED MINE LIFE47 years (all target seams)

RESOURCES(2) (JORC)

959Mt*648Mt Measured171Mt Indicated140Mt Inferred

RESERVES(2) (JORC)

254Mt206.6Mt Proved 47.5Mt Probable

PRINCIPAL PRODUCTHard coking coal

AQUILA INTEREST50%

PROJECTED PRODUCTION RATEUp to 5.6Mtpa and an average of 4.5Mtpa of product from one underground longwall over the first 10 years of full production

PROJECT DETAILS

EAGLE DOWNS HARD COKING COAL PROJECT

*69Mt of Resource is deemed PCI quality

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▲ Prices to be underpinned by capital cost pressures on new projects, with Macquarie Bank estimating the break even price (for zero return) to be approximately ~US$180/t by 2017

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Coking coal prices have stabilised after hitting support levels at a low of US$140/t

HARD COKING COAL PRICES


Source: UBS data, Aquila analysis

Spot hard coking coal – FOB Australia

100

150

200

250

300

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Nov

-10

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-10

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11Fe

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Spo

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Spot HCC - FOB Australia

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Australia remains a desirable investment location for coal projects

▲ New high quality, low cost, hard coking coal reserves are increasingly difficult to find

▲ Australian coal projects benefit from political stability and well developed rail & port infrastructure

NEW COAL INVESTMENT

Mongolia- Restriction on foreign

ownership- Infrastructure constrained

Columbia- High country risk due to

bombing attacks and guerrilla activity

Australia- Proven region with stable supply history- Developed infrastructure with new capacity coming online- Politically stable democracy

Mozambique- Limited third party rail and port

infrastructure - Large project capex, to fund

infrastructure, makes many new projects uneconomic

Indonesia- Political risk, resulting

in a foreign ownership cap of 49%


Source: Macquarie

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Recent progress on site

▲ Construction by Powerlink of the site substation expected to be completed in Q1 2013

▲ Contracts for the commencement of the underground access are presently being finalised

Completed first well system in the 100 series longwall blocks as part of the gas drainage validation program

Built site access road and construction office

Drift portal sites cleared and concrete arch sections delivered to site

Construction of staff construction housing is complete


EAGLE DOWNS HAS BEEN PROGRESSED

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28Aquila Annual General Meeting 2012

ACCESS ROAD

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SITE CONSTRUCTION OFFICE

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GAS DRAINAGE SETUP

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POWERLINK SUBSTATION

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PRECAST PORTAL ARCHES ON SITE

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▲ Aquila has commenced the process to transfer Washpool’s port

capacity at WICET to Eagle Downs, for Aquila’s share of product

▲ Long term port capacity at the proposed Dudgeon Point Coal

Terminal (4km north west of Hay Point) is currently being pursued

▲ Access to rail infrastructure through the Peak Downs branch of

the Goonyella Coal Network

▲ Rail capacity is being pursued through active participation in QR

National’s tender process

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Eagle Downs is located in Queensland’s resource-rich Bowen Basin, adjacent to existing heavy haul rail lines connecting the Project to multiple coal terminals


RAIL & PORT INFRASTRUCTURE

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CONSTRUCTION OF WICET

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Scheduled to deliver first coal by 2015

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January 2012Project sanction

May 2015Drifts complete

August 2015First accessto coal

October 2015Completion ofsurface infrastructureCHPP commissioning

November 2016Longwall production

May 2013Commence drifts

February 2017Practical completion

1H 2015WICET Stage 1*

1H 2016WICET Stage 2*

2012 2013 2014 2015 2016 2017


DEVELOPMENT TIMETABLE

* For Aquila’s share of product

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CARBON MANAGEMENT

Continued implementation of Aquila’s carbon management strategy

▲ Carbon Disclosure score of 68 out of a possible 100

(compared to 69 in 2011), ranking the Company above the

ASX200 and its industry averages for the second year running

▲ Improvement in performance banding (from D to C)

demonstrates climate change initiatives are progressing

▲ Recognise the need to manage carbon, energy and resources

efficiently, with carbon and energy management a continued

focus

▲ Transition to a carbon-constrained environment continues

through risk management and identifying new opportunities for

sustainable competitive advantage

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0 20 40 60 80 100

Utilities TelecommunicationsMaterials Information technologyIndustrials Health careFinancials EnergyConsumer staples Consumer discretionaryASX200

Carbon Disclosure Project – 2012


ENERGY SECTOR

ASX200

Aquila

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CARBON MANAGEMENT (CONT.)

Aquila is committed in its carbon management initiatives

Coming 12 months

▲ Further development of systems & processes to collect and

report on energy & emissions

▲ Further consideration of suitable research funds, which

support greenhouse gas abatement, for potential contribution

to research (e.g. COAL21 Fund)

▲ Forecast Aquila’s carbon footprint in the next five years

▲ Implementing a fugitive emissions management strategy for

the Eagle Downs Hard Coking Coal Project

▲ Conducting an energy efficiency workshop to identify

opportunities and reduction targets

▲ Developing a system to commence capturing Scope 3

emissions

Past 12 months

▲ Participation in the CDP questionnaire for the second

consecutive year

▲ Inclusion of Carbon Management / Carbon Reporting

in the Annual Report

▲ Undertaking a carbon risk and opportunity mapping

exercise

▲ Investigating fugitive methane management and

opportunities across the coal group

▲ Understanding and planning for the Carbon tax and

permitting system


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▲ Aquila takes social responsibility very seriously, recognising that we are guests in

the local towns and communities we conduct our work

▲ This attitude extends to our dealings with landholders when negotiating

compensation and conduct agreements for land access, and dealing with

traditional land groups to ensure we culturally clear the land before commencing

any disturbance activity

▲ Aquila is active in the community – recent examples from our coal business over

the last 12 months include:

◆ Assisting flood affected landholders in the Surat

◆ Supporting the Blackwater Police Alcohol and Drug campaign

◆ Participating in the ‘Walk for Daniel Morcombe’ community event in Moranbah

▲ Committed to conduct social impact assessments for all development projects and

have demonstrated this commitment by being the first coal project to develop a

Social Impact Management Plan

SOCIAL RESPONSIBILITY


Aquila recognises the importance of supporting the communities in which we operate as being vital to our success

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OVERVIEW

CORPORATE

▲ ~A$1.0bn Market Cap(1)

▲ ~A$477m of cash and liquids, with no debt at 30 September

▲ Sale of interest in Belvedere to Vale

▲ Directors (40%) and Baosteel Group (14%) are substantial

shareholders

OTHER PROJECTS & EXPLORATION

▲ Avontuur Manganese Project (74%) – South Africa

▲ Thabazimbi Iron Ore Project (74%) – South Africa

▲ Washpool Hard Coking Coal Project (100%) – Queensland

▲ Talwood Coking Coal Project (100%) – Queensland

▲ Wilpeena PCI Coal Project (100%) – Queensland

▲ Walton PCI Coal Project (100%) – Queensland1. Undiluted shares on issue of 411.8m and closing price of $2.40, as at 29 November 2012


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Aquila remains focused on developing the West Pilbara Iron Ore Project and the Eagle Downs Hard Coking Coal Project

▲ Secure Aquila’s financing for the West Pilbara◆ Increase cash position through the sale of Belvedere interest

◆ Seek resolution on arbitration with AMCI

◆ Optimise capital costs through outsourcing infrastructure packages

◆ Anketell Port proponency and debt funding from China Development Bank

▲ Continue the construction of Eagle Downs, which is already underway◆ Maintain the current development schedule and budget

◆ Finalise infrastructure solution for Aquila’s share of coal from Eagle Downs

◆ Obtain a funding solution for Aquila’s share involving minimal dilution of the project interest

▲ Build value in other assets in advance of monetisation ◆ Progress exploration and development of Aquila’s significant portfolio of exploration tenements

◆ Explore synergistic opportunities or sale for non-core assets

2012/2013 OBJECTIVES


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Eagle Downs is one of only three major approved near-term Australian hard coking coal projects

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Mining lease granted in August 2011 Mine development approved by all relevant joint venture participant boards in February 2012

Source: Company filings, Queensland Government Department of Natural Resources and Mines, press articles, AME

Eagle Downs Caval Ridge Grosvenor

Owner(s)Aquila (50%)

Vale S.A. (50%)BHP Mitsubishi Alliance (100%) Anglo American (100%)

Location Bowen Basin Bowen Basin Bowen Basin

Mining method Underground longwall (1 with option to expand to 2)Open-cut dragline and

truck & shovelUnderground longwall

(1 with option to expand to 2)

First production 2016 (longwall commissioned) 2014 2016 (longwall commissioned)

Saleable production (Mtpa) Avg 4.5 over the first 10 years(up to 8.0 with 2nd longwall) 5.55.0 – 6.0

(up to 12.0 with 2nd longwall)

Mine life Up to 47 years (single longwall) >30 years 26 years (single longwall)


A TOP TIER AUSTRALIAN HARD COKING COAL OPERATION

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▲ To achieve the first 100,000 tonnes of longwall production, Aquila’s share of direct capital costs is approximately $640m and its share of pre-production operating costs is approximately $222m

▲ Eagle Downs is a high quality, top-tier Australian hard coking coal operation and Aquila has received significant interest from parties seeking to participate in Aquila’s share of the project

▲ Several major financial institutions have expressed interest in providing debt financing

43

EAGLE DOWNS FINANCING

Eagle Downs(Bowen Central Coal JV)

50% Participating Interest

Aquila ResourcesLtd Partner(s)

Minority Equity Interest

Aquila CoalPty Ltd

50% Participating Interest

Aquila ResourcesLtd

100%

Aquila CoalPty Ltd Debt funding

Majority Equity Interest

Current structure Potential financing structure

Potential for Aquila’s 50% interest in Eagle Downs to be fully funded, without further equity, through a minority investment in conjunction with a debt financing package


Eagle Downs(Bowen Central Coal JV)

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CLOSING REMARKS

Robust financial position to develop major greenfields projects in a prudent manner

▲ ~A$477m of cash and liquids, with no debt at 30 September 2012

▲ Further cash inflow from sale of Belvedere

▲ Two major greenfields projects:

West Pilbara Iron Ore Project

Eagle Downs Hard Coking Coal Project

▲ Commitment to motivating our employees and cultivating an

environment of high standard Work Health & Safety practices

▲ Recognise the importance of supporting the communities in

which we operate as being vital to our success

▲ Strategic partnership with China’s largest steel maker Baosteel


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1. The information in this presentation that relates to Mineral Resource Statements for the West Pilbara Iron Ore Project and wider Pilbara tenement areas was prepared under thesupervision of Mr Stuart Tuckey. Mr Tuckey is a member of the Australasian Institute of Mining and Metallurgy and full-time employee of API Management Pty Ltd. Mr Tuckey hassufficient 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 Personsas defined in the 2004 Edition of the ‘Australasian Code of Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Tuckey consents to the inclusion in thepresentation of the matters based on his information in the form and context in which it appears.

The information in this presentation that relates to Ore Reserves is based on information compiled by Mr Steve Craig, Managing Director of ORElogy (Mining Consultants). Mr Craig is aMember of the Australasian Institute of Mining and Metallurgy and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration, and tothe activity 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 OreReserves”. Mr Craig consents to the inclusion of the matters based on his information in the form and context in which it appears in this presentation.

2. The information in this presentation that relates to the Eagle Downs Resource Statement has been based on information compiled by Mr Mal Blaik who is a member of the AustralasianInstitute of Mining and Metallurgy. Mr Blaik has over 30 years experience in geology and over 20 years experience in coal resource evaluation. Mr Blaik is a Principal Consultant of JBMining Services Pty Ltd. Mr Blaik is a qualified geologist (BSc App Geol (Hons) University of QLD, 1979) and is a member of the Australasian Institute of Mining and Metallurgy and assuch qualifies as a Competent Person under the JORC Code. Mr Blaik consents to the inclusion in the presentation of the matters based on his information in the form in which itappears.

The information in this presentation that relates to Eagle Downs Coal Reserves, is based on information reviewed by Mr J Steenekamp, who is a Fellow of the Australasian Institute ofMining and Metallurgy. Mr Steenekamp has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he isundertaking to qualify as a Competent Person as defined in the 2004 edition of the JORC Code. Mr Steenekamp is a full time employee of Mining Consultancy Services (Australia) PtyLtd and holds the position of Managing Director. Mr Steenekamp has consented to the inclusion in the presentation of the matters relating to Coal Reserves based on the information hehas reviewed, in the form in which it appears.

COMPETENCY STATEMENTS


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annual general meeting presentation (final) · 2012. 11. 30. · andrew salter anz foreign exchange...

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