Huguenot Property 2020 PEA Highlights
Market Overview: Metallurgical Coal
Western Canadian Coal Miners are Poised to Supply Asian Markets
BC Metallurgical Coal Production
35
30
28.8
25
20
20
25
26.0
24.8
15
15
10
10
5
31.5
31.0
30.0
28.8
25.1
0
2014
2015
2016
2017
2018
2019
2020
2021
CIC
.
Western Canadian Coal Overview
The recent rebound in global steel production continues to drive strong
demand in the seaborne coking coal market. It is expected that, for
British Columbia, the overall 2021 coal production value will hit a
record high.
The region enjoys access to low-cost Green power, high-quality road
and rail networks and major deep water seaports
British Columbian ports provide the closest port of entry on the west
coast of North America to eastern Asia, resulting in low shipping costs
Since 2010 Western Canada has seen significant M&A activity in the
metallurgical coal market:
Buyer
Target
Value
Access to East Asian Markets
Walter Energy
Western Coal
CAD$3.3 B
To Shanghai- 4,642 miles
To Tokyo 3,830 miles
Anglo American
Residual interest in Peace River Coal
+CAD$400 M
- Dalian
Tianjin-
Glencore1
First Coal and Lossan
US$193 M
13.8 14.4
14.2 14.8
British
Columbia
Shanghai
13.2 14.2
Tokyo
10.6 11.9
Kolkata
23.1
24.3
له
China
India Guangzhou
Mumbai.
25.2
26.4
15.0 16.3
Chennai
22.8 24.0
Korea
Japan-
-Kobe
11.3 12.6
Pusan
12.7 13.0
Hong Kong
14.8 16.0
To Shanghai - 5,092 miles
To Tokyo 4,280 miles
Closer to Japan than Newcastle:
Newcastle to Tokyo - 4,284 miles
Prince Rupert
Vancouver
Winsway / Marubeni
Glencore1
Grande Cache Coal
CAD$1.0 B
Talisman's Sukunka Project
US$500 M
JX Nippon
25% of Glencore's1 BC coal assets
US$435 M
Conuma
Walter Energy's wholly-owned BC assets
n/a
00.0
Shipping Days
from Prince Rupert
Shipping Days
SonicField (CST Coal)
Winsway / Marubeni
US$475 M
Hancock Prospecting
Riversdale Resources
AUS$737 M
00.0
from Vancouver
CAD$122 M
Source: AME, BC Ministry of Energy, Mines and Petroleum Resources
Note: Shipping Days calculated at vessel speed of 15 knots
TSX-V: CAD
Bathurst²
50% of Jameson's Crown Mtn. Project
Note: Met coal includes all coals directed to metallurgical end markets (i.e. coking coals and PCI coals)
1 At the time Xstrata 2 Recently, reported election to move to a joint venture
www.ccoal.ca
3View entire presentation