South Gobi and Indomet Coal Asset Strategic Overview slide image

South Gobi and Indomet Coal Asset Strategic Overview

OVERVIEW FOCUS ON CASHFLOW AND GROWTH IN STRONG MARKET ✓ Independent coking coal and high quality thermal coal producer • Targeting production from 3 mines in 3 regions with a total target output rate of 5Mtpa* by end of 2017 and all mines are forecast to deliver strong positive cash flows Blair Athol Thermal Coal Mine in Australia# • A$1 acquisition of Blair Athol (BA) thermal coal mine in Bowen Basin, Australia completed and mining operations to commence in Q2 2017 BNU Hard Coking Coal Mine in Mongolia Successfully restarted BNU mining operations underpinned by 5.5yr coal offtake agreement for ~7.5Mt of sales linked to seabourne prices Indomet Hard Coking Coal Mine in Indonesia • In discussion to acquire operating hard coking coal mine in Central Kalimantan, Indonesia targeting completion in Q3 2017 Large JORC resource base* (excludes BA and Indomet) ⚫ 304 Mt JORC 2004 of coking and thermal coal in Mongolia • 2.1 Bt JORC 2004 of thermal and PCI coal in Australia ✓ Strong development pipeline Organic /Brownfields expansion from each of the 3 regional hubs through development of large surrounding resources Resilient balance sheet • After restructuring through the issuance of a 5-year interest-only EuroClear-traded bonds ✓ Strong Board and management team 3 Regions Operations in Australia, Mongolia & Indonesia A$1 Acquisition of Blair Athol thermal coal mine in Australia Cash Generating Capitalising on strong coal market targeting 5 Mtpa rate across 3 countries by end of 2017 >120 Years of combined management experience Note #: Blair Athol Mine acquisition is subject to relevant Queensland Government approvals Note *: no change to this information from previous disclosures and see competent person statement at end of presentation • Proven track record in building and operating coal mines TERRACOM 5
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