vanggatfontein media visit mandi glad - ceo€¦ · vanggatfontein media visit mandi glad - ceo....
TRANSCRIPT
26 September 2012
Vanggatfontein Media Visit Mandi Glad - CEO
Disclaimer
Opinions expressed herein are by nature subjective to known and unknown risks and uncertainties. Changing
information or circumstances may cause the actual results, plans and objectives of Keaton Energy Holdings Ltd
(the “Company”) to differ materially from those expressed or implied in the forward looking statements. Financial
forecasts and data given herein are estimates based on the reports prepared by experts who in turn relied on
management estimates. Undue reliance should not be placed on such opinions, forecasts or data. No
representation is made as to the completeness or correctness of the opinions, forecasts or data contained
herein. Neither the Company, nor any of its affiliates, advisors or representatives accepts any responsibility for
any loss arising from the use of any opinion expressed or forecast or data herein. Forward-looking statements
apply only as of the date on which they are made and the Company does not undertake any obligation to
publicly update or revise any of its opinions or forward looking statements whether to reflect new data or future
events or circumstances.
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Introduction to Keaton Energy Holdings Ltd
» South African-based coal mining company
» 2.7Mtpa production platform established across two operations, Vanggatfontein and Vaalkrantz
» Pipeline of growth projects
» Two prioritised development projects, Sterkfontein and Braakfontein
» Medium-term 5Mtpa production target
3
Vanggatfontein Development Timeline
4 24-27 September 2012 Vangatfontein site visit
May � 171Mt coal resource
declared
March � Mining Right
application submitted May � Coal reserve 25.9Mt � 163Mt resource
declared
August � IWULA submitted
February � Mining Right executed
May • Site establishment • 5-seam plant
construction begins
September � 2- & 4-seam plant
construction begins
November � Coal reserve upgrade
32.2Mt declared � 5-seam plant
commissioned
July � Steady state
2008 2009 2010 2011 2012
December � R255 million project
finance approved � 1st 5-seam coal
delivered
March � Eskom Coal Supply
Agreement signed
May � 2- & 4-seam plant
commissioned
July � 1st Eskom coal
delivered September � NEMA approval
Vanggatfontein Colliery
5
Key Features / Indicators
Total Resource 163Mt Outsourced operating model
ERB Resource 58.5Mt
ERB Reserve 35.9Mt
Target Plant Feed 3.7Mtpa
Infrastructure Single stage 100tph 5 seam washing plant Single stage 480tph 4 & 2 seam washing plant Lined slimes facility & coarse discard facility
Target Production (Saleable) 2.1Mtpa
Quality of primary product 21.5MJ/kg Eskom product
No. of employees (incl. contractors) 394
LTIFR per 200 000 man hours 0.21
Fatality Free Shifts 1 243 437
Resource Area
6
Initial 10 year footprint
7
Operations
» Volumes moved to date • 13.8M m³ waste • 3.6Mt ROM • 1.8Mt product delivered
» Additional expenditure on scope changes and mine enhancements to support: • 20 year LOM • Large scale, long term energy supplier
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Production summary
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-
100 000
200 000
300 000
400 000
500 000
600 000
700 000
800 000
900 000
6 months Sep 2011
6 months Mar 2012
6 months Sep 2012
-
20 000
40 000
60 000
80 000
100 000
120 000
6 months Sep 2011
6 months Mar 2012
6 months Sep 2012
Eskom 5 seam
From here……
» Steady state achieved » Future focus on optimisation, cost containment and safe operations » 20 year life
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12 24-27 September 2012 Vangatfontein site visit
Vaalkrantz Colliery
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Key Features / Indicators
Resource 17.98Mt
Reserve 2.08Mt
Target Plant Feed 660 000tpa
Infrastructure 2 stage, 100tph washing plant Extensive fleet of underground mining equipment
Target Production (Saleable) 420 000tpa
Quality of primary product 11% ash, 82% FC, 6% vols, <1% S anthracite
Export Capacity 207 000tpa RBCT Quattro Participation
No. of employees (incl. contractors) 723
LTIFR per 200 000 man hours 0.53
Fatality Free Shifts 6 682 425
Keaton Energy Growth…
14
Project/ prospect Comment
Braakfontein
» Most advanced project » Potential for 1Mtpa ROM underground export
thermal colliery near Newcastle » Reserve statement in preparation for AR
Sterkfontein » 69Mt Samrec compliant resource declared » Concept study initiated
Koudelager
» Life extension to Vaalkrantz » Mining right granted » Narrow seam resource of 7.88Mt TTIS
Mpati » Agreement to sell project on award and cession of mining right for R12m
Balgray » Mining right submitted
» Acquisition opportunities are being pursued with vigour
Summary
» Multi-product producer with attractive growth profile • diversity of operating mines, products
and markets • pipeline of development projects
» Working towards both near-term production increases and LOM extensions
» Record of delivery against promise • explorer to producer
» Developing a track-record of value-accretive acquisitions
» Medium-term objective to grow to 5Mtpa producer
15
Thank you