fy2014 annual results presentation - todayir.com · of global primary energy needs generates . 41%...
TRANSCRIPT
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FY2014 Annual Results Presentation
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Agenda
∗ Company Overview
∗ Financial Results
∗ Market Overview
∗ Company Strategy
∗ Corporate Social Responsibility
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Company Overview
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Agritrade Profile Listing Venue HKEx Main Board (ticker: 1131.HK) Location of Asset Tamiang Layang, Central Kalimantan Licence Izin Usaha Pertambangan (IUP) – 25 Years
Investment Scheme Foreign Investment (PMA)
Annualised Production FY 2013 : 2.8 Million tonnes FY 2014 : 3.9 Million tonnes
Concession
Total Concession Area: 2,000 hectares To date, 1200 hectares fully explored under JORC Standard: Resources: 152.7 Million tonnes Reserves: 117.8 Million tonnes
Financial Year - 1st Apr to 31st Mar
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Management Profile
Ng Say Pek Chairman
Ng Xinwei CEO
Ashok Sahoo CFO
Peter Gunn CTO
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Corporate Structure
Agritrade Resources Limited (HKEx ticker: 1131.HK)
Total issued share capital: 1.072 Billion
Agritrade Resources Asia Pte Ltd
(Int’L trading arm)
Rimau Shipping Pte Ltd
(Logistic arm)
PT Senamas Energindo Mineral (PT SEM)
(Mining arm)
PT Megastar
(Infrastructure arm)
Newtone Management Ltd
(Cost centre)
Agritrade International Public
61.5% 38.5%
100% 100% 57% 95% 100%
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Mine Location
Barging Time
Telangbaru jetty to Taboneo Anchorage through Barito River (around 36 hours)
Hauling Time
Coal mine to Telangbaru jetty: 41km (approx. 2 hours)
Jetty
Anchorage
Mine Mouth
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Mine Efficiencies ∗ Open cut mining (Surface mining)
∗ Thick coal seams (avg. 8 – 11 m)
∗ Thin overburden (3 – 4 m)
∗ Good geology: shallow dipping (< 5 degrees)
∗ Low strip ratio (2:1)
∗ Strategically located near Barito river (41km)
∗ Fully Integrated Logistics Mine Logistics – Hauling Road, Crusher, Conveyor and Jetty Transport Logistics – Barges, Tug Boat
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Coal Specifications
• Reduce ash disposal cost • Reduce maintenance
cost Low Ash
• Reduce power plant’s operating costs
• Blend with coal of higher sulphur content
Low Sulphur
• Reduce nitrous oxides removal costs
• Reduce production costs of electricity
Low Nitrogen
Parameters Specifications
Total Moisture (arb) 37-42%
Inherent Moisture (adb) 13-16%
Ash Content (adb) 4-6%
Volatile Matter (adb) 37-43%
Fixed Carbon (adb) 37-41%
Total Sulphur (adb) 0.1-0.3%
Nitrogen (daf) 0.8-0.9%
Calorific Value (CV) (adb) 5,300 to 5,500 kcal/kg
Calorific Value (CV) (gar) 3,600 to 3,800 kcal/kg
Hardgrove Grindability Index (HGI) >50
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Production Flow
1. Overburden Removal 2. Coal Getting 3. Hauling 4. Stockpiling
5. Crushing 6. Barge Loading 7. Barge To Anchorage 8. Loading onto Mother Vessels
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JORC Certified Reserves Oct 2012
117 million tons
May 2011
41 million tons 30 million tons
June 2010
*Note: Reserves are based on 1200ha of exploration data
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Financial Results
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Production
-
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
APR MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR
SEM Monthly Production Apr 2013 – Mar 2014
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Production
- 500,000
1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 3,500,000 4,000,000
2011 2012 2013 2014
Yearly Production ( MT)
Yearly Production
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Profitability
-
200,000
400,000
600,000
800,000
1,000,000
2010 2011 2012 2013 2014
Revenue
Profit
( HKD$ ‘000s )
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Financial Highlights
% Difference
FY2014 (‘000)
FY2013 (‘000)
Coal Production 36.98 3,859 2,817
Revenue 26.96 961,316 757,173
Gross Profit 16.11 306,033 263,567
Net Profit 109.93 113,294 53,967
Earning per Share (HK$ Cents) 115.62 13.8 6.4
Dividend (HK$ Cents) - 3.0 0
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Market Overview
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Coal Industry According to World Energy Council (WEC) only 861 Billion tonnes of coal reserves left - equivalent to 109 years of global coal output
Coal provides 29.9% of global primary energy needs
Generates 41% of the world's electricity.
Used in the production of 70% of the world’s steel.
Increasing at the annual growth rate of 2.9%
According to Indonesian Coal Mining Association (APBI), the total
Coal Production in Indonesia stood at approx. 110 million tonnes in
1st quarter of 2014, a 5% increase from 2013’s figure (Source: World Coal Association, IEA)
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Market Trend
Being the cheapest and most abundant energy source, many agencies acknowledge that coal cannot be eliminated entirely Higher commitment to the development of Clean Coal Technologies & Alternative green solutions such as CCUS (Carbon Capture, Use & Storage) Post-Fukushima, Japan & various countries to reconsider using Coal as a reliable and safe energy source
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Market Trend Prices to stabilize and bottom out at current level Mid to Long term outlook is still positive as demand from domestic power plants and developing countries are set to increase The Government aims to secure Indonesia’s domestic coal consumption to supply around 30% of the country’s energy mix by 2025, this trend also reflected by the increase of SEM coal sales
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Infrastructure ∗ Both Indonesia Presidential Candidate have pledged to build roads
and improve infrastructure, plans to spend around $60 Billion each year on infrastructure.
∗ Positive effect as the region enjoy the benefit from the development
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Shipping
∗ New phase of the cycle where demand remains stable and supply moderated
∗ Potential for higher rates as global economy recovers
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Company Strategy
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Achieving Continuous
Growth
Increase Production
Capacity
Enhance Product Quality
Continuous Improve
Operational Capability
Market Expansion
Strategies
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Existing Business
Completion of Crusher, Conveyor and Jetties Upgrading of Hauling Road and Mine Pit Coal Upgrading – Final Commission Testing Of Plant Plans For Cost Reduction by 5-10%
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New Business Development New Market Development
New Customer -> Global Energy Trading House & Power Companies
New Product Development Higher Calorific Value Coal -> by applying Coal Upgrading Technology
Inorganic Growth Merger & Acquisition – Mining Asset ( Coal, Metals, Minerals)
– Diversification (vessel acquisition agreement)
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Corporate Social Responsibility
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CSR - Community Donations to various local community
Building of power station to supply electricity for local community
Offer job opportunity to local resident (Truck Leasing Program)
Upgrading of common infrastructure
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CSR - Environment Rehabilitating the back-filled land (re-vegetation)
Horticulture (Plant vegetables for local consumption)
Maintain Responsible Mining
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Disclaimer The information contained in this confidential document ("Presentation") has been prepared by Agritrade Resources Limited (the "Company"). It has not been fully verified and is subject to material updating, revision and further amendment. It is private in nature and not meant for circulation in any form.
While the information contained herein has been prepared in good faith, neither the Company nor any of its shareholders, directors, officers, agents, employees or advisers give, have given or have authority to give, any representations or warranties (express or implied) as to, or in relation to, the accuracy, reliability or completeness of the information in this Presentation, or any revision thereof, or of any other written or oral information made or to be made available to any interested party or its advisers (all such information being referred to as "Information") and liability therefore is expressly disclaimed. Accordingly, neither the Company nor any of its shareholders, directors, officers, agents, employees or advisers take any responsibility for, or will accept any liability whether direct or indirect, express or implied, contractual, tortuous, statutory or otherwise, in respect of, the accuracy or completeness of the Information or for any of the opinions contained herein or for any errors, omissions or misstatements or for any loss, howsoever arising, from the use of this Presentation.
Neither the issue of this Presentation nor any part of its contents is to be taken as any form of commitment on the part of the Company to proceed with any transaction and the right is reserved to terminate any discussions or negotiations with any prospective investors. In no circumstances will the Company be responsible for any costs, losses or expenses incurred in connection with any appraisal or investigation of the Company. In furnishing this Presentation, the Company does not undertake or agree to any obligation to provide the recipient with access to any additional information or to update this Presentation or to correct any inaccuracies in, or omissions from, this Presentation which may become apparent.
This Presentation should not be considered as the giving of investment advice by the Company or any of its shareholders, directors, officers, agents, employees or advisers. Each party to whom this Presentation is made available must make its own independent assessment of the Company after making such investigations and taking such advice as may be deemed necessary. In particular, any estimates or projections or opinions contained herein necessarily involve significant elements of subjective judgment, analysis and assumptions and each recipient should satisfy itself in relation to such matters.
This Presentation includes certain statements that may be deemed “forward-looking statements”. All statements in this discussion, other than statements of historical facts, that address future activities and events or developments that the Company expects, are forward-looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include but not limit to market prices, continued availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and that actual results or developments may differ materially from those projected in forward-looking statements.
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Thank You