Allan Fidock
Company Roadshow For personal use only use personal For Managing Director Presentation June 2012 Disclaimer & Competent Person
This document has been prepared as a summary only and does not contain all information about OGL Resources Limited (the Company) assets and liabilities, financial position and performance, profits and losses, prospects and the rights and liabilities attached to the Company’s securities. The document should be read with any public announcements and reports released by OGL Resources Limited. The information is based on publicly available information, internally developed data and other sources. Where any opinion is expressed no warranties or representations can be made as to the origin, accuracy, completeness, or reliability of the information.
Some of the statements contained in the presentation are forward looking statements. Forward looking statement information may include, but is not limited to, information with respect to the future financial and operating performance of the company or its affiliated companies statements relating to the continued advancement of the Company’s project and other statements which are not historical facts. When used in this document and other published information of the Company, the words such as “aim”, “could"," estimate”, “expect”, “may”, “potential”, “should” and similar expression are forward looking statements.
Although, the Company believes that its expectation reflected in the forward looking statement area reasonable, such statements involve risk and uncertainties and no assurance can be given that actual results will be consistent with these forward looking statements. Various factors could cause actual results to differ from these forward looking statements including the potential that the Company’s projects may experience technical, geological, metallurgical and mechanical problems, changes in commodity prices, changes in government regulation, policies or legislation, unforeseen expenses, fluctuation in the exchange rate of the Australian dollar and the United States dollar and other risks not anticipated by the Company or disclosed in the Company’s published material.
The Company does not purport to give financial advice. No account has been taken of the objectives, financial situation or needs of any recipient of this document. Recipients of this document should carefully consider whether the securities issued by the Company are an appropriate investment for them in light of their personal circumstance, including their financial and taxation position.
Coal Production Target: For Phase 1a and 1b - Coal Production estimate and forecast is based on the current estimated 13.7Mt of JORC Reserves in the Mining Lease (ML 4712) and approved Plan of Operation mine operation for production of 1Mtpa of coal.
For Phase 2 - Coal Production estimate and forecast is based on the current estimated JORC Resources and OGL Resources Limited’s conceptual future development target of the Bremer View Project (MDL 172). The production estimate is conceptual in nature and there has been insufficient work done at present by way of a feasibility study to support this forecast.
Competent Persons Statement
Runge Limited – Greg Maiden: The estimate of coal reserves for ML 4712, as presented in this presentation has been prepared in accordance with the guidelines of the Australasian Code for the Reporting of Mineral Resources and Ore Reserves, prepared by the Joint Ore Reserves Committee of the Australasian Institute of Mining and Metallurgy, Australasian Institute of Geoscientists and Mineral Council of Australia, December 2004. The information in this presentation to which statement is attached that relates to the reserves of ML 4712, is based on the information reviewed by Gregory Maiden, who is a member of the Australasian Institute of Mining and Metallurgy. He is full time employee of Runge Limited. Gregory Maiden has sufficient experience 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 Person’’ as defined in the 2004 edition of the Australasian Code for the Reporting of Mineral Resources and Ore Reserves.
Runge Limited – Shaun Ayshford: The information relates to the estimates of Coal Resources and Exploration Target statement for the Bremer View Project as in this Presentation has been prepared in accordance with the guidelines of the Australasian Code for the Reporting of Mineral Resources and Ore Reserves, prepared by the Joint Ore Reserves Committee of the Australasian Institute of Mining and Metallurgy, Australasian Institute of Geoscientists and Mineral Council of Australia, December 2004. The information in this presentation to which statement is attached that relates to the Bremer View Coal Resources, is based on the information reviewed by Shaun Ayshford, who is a full time employee
of Rungeonly use personal For Limited and is a member of the Australasian Institute of Mining and Metallurgy. Shaun Ayshford has sufficient experience 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 Person’’ as defined in the 2004 edition of the Australasian Code for the Reporting of Mineral Resources and Ore Reserves. Shaun Ayshford consents to the inclusion in this Presentation of matters based on this information in the form and context in which it appears.
Exploration Target: The Exploration Target has been determined between holes with a separation distance of greater than 3200m between boreholes where coal quality cannot be determined with any certainty, The potential quality and quantity shown within is conceptual in nature and there has been insufficient work done at present to define a Mineral Resource in this area under the JORC (2004) Code. The nature of an Exploration Target is such that is uncertain if further exploration will result in the determination of a Mineral Resource in this area.
2 Company Overview
. Ebenezer is a high quality export thermal coal asset approximately 90km from Brisbane – it is the closest mine to the Port of Brisbane . Current JORC reserves of 13.7Mt and JORC Resources of 308.2Mt high grade thermal coal (6,700kCal/kg) with an additional 366.6Mt exploration target . OGL to recommence mining (Phase 1) at a rate of 600ktpa within 12 months from the Ebenezer Mine – expansion to 1.5Mtpa within 2-3 years, 3+Mtpa from year 4-5 from the Bremer View MDL . Mining Lease (ML) is granted and Environmental Approvals in place – no impediments to immediate mining . Available infrastructure – immediate access via road (82km) & Pinkenba precinct (Port of Brisbane) – up to 1.5Mtpa . Site infrastructure in place (including power, water, offices, tailings dam and ROM pad)
. OGLonly use personal For Resources is seeking to raise $60m-$100m to complete the acquisition of the coal assets of Zedemar Holdings, and recommission the Ebenezer coal mine in SE Queensland 3 Project Acquisition
. OGL signed a Heads Of Agreement with Zedemar Holdings Pty Ltd (Zedemar) in May 2011 to acquire 100% of the Ebenezer and Bremer View tenements for a total consideration of A$50m: $40m cash; and 50m OGL shares at the public offer price ($10m) when acquisition financing occurs Voluntary 24 month escrow will apply to Zedemar’s shareholding and Zedemar will retain between 5.7%-7.6% (50m shares) post-listing . To complete the Acquisition of the tenements: OGL will need to raise between A$60m-$100m; and 1:2 share consolidation at 10c - concurrently with the capital raising occurring at $0.20/share (pre-money value $17.6m) . The sale is conditional on, amongst other things: OGL completing a placement to raise not less than A$60m; Re-compliance with Chapters 1 and 2 of the ASX Listing Rules; and Obtaining shareholder approval for the transaction along with ASX approval to re-list
Significant Value accretion since acquisition by OGL Resources . OGL Tenements, Mine Site & Infrastructure OGL commissioned Runge and Salva Resources to complete geological model due diligence Result: Maiden JORC Reserve and Resources and Bremer View Project Resource upgrade OGL commissioned transport and mine costs studies Secured key long term processing equipment – includes a CHPP and crusher units . Infrastructure Solution Engaged key infrastructure partners in discussions to progress work and determine access viability Result: Short Term – IAP rail 600ktpa (QRN), rail COP and road option to Port solution through executed MoU
For personal use only use personal For Long Term – Rail COP for proposed expansion of QBH/Fisherman Islands and EOI for Fisherman Island via Port of Brisbane . General Assisted in the renewal of Mining Lease - ML 4712 (application was made in April 2008 but approved under the guidance of OGL) Appointment of well respected coal industry Directors to oversee future development of the assets Board of Directors
Mr Jack Tan – Non-Executive Chairman Jack has more than 20 years experience in finance roles in finance and investment banking. He was the former Non-Executive Chairman of e-pay Asia Ltd, a leading prepaid mobile phone company based in Malaysia which is listed on the ASX, Non-Executive Director of Orocobre Ltd, an emerging, Lithium & Potash Producer in Argentina and Executive Chairman of Timah Resources Ltd, a NSX listed Australian Iron Ore company. He was the founder and former Director of Rocklands Richfield Ltd (RCI) and Norton Gold Fields Limited both listed on the ASX.
Mr Allan Fidock – Managing Director & CEO Allan is a coal executive with more than 30 years’ experience in open cut and underground coal mining operations. Prior to joining OGL Resources, Allan was a member of Macarthur Coal Executive Leadership Group and responsible for mine operations of the company and was the former CEO of Middlemount Coal. Allan’s previous coal experience includes Technical Services Manager at the Drayton Mine, roles with Thiess Pty Ltd - Project Development Manager, Mining Manager at the Mt Owen Complex and Senior Project Engineer within the Mine Engineering Group. Other mine management and Engineering positions included Project Manager/Mine Manager at Liddell and Westside Open Cut Mines, Mine Manager at Brickworks Open Cut – Gunnedah Colliery and Senior Mining Engineer at New Hope Corporation. Mr Roger Marshall OBE – Non-Executive Director Roger has over 40-years experience in the Mining Industry, covering management, marketing, finance and operational roles. He has been responsible for the development and production of a number of mines. Roger was previously the Deputy Chairman of Macarthur Coal Limited (since July 2001). He previously served on the Boards of MIM Holdings Limited (1984 - 1992), CITIC Australia Trading Limited (2002- 2009), Energy Brix Corporation (1993-1996), AGD Mining Limited (1999 - 2004), Macarthur Diamonds Limited (2004-2005), Copper Resources Corp Limited (2005-2007) and Queensland Ores Limited (Chairman from May 2005 - June 2009 and director from June 2009 to September 2009). In 1989, he was made an Officer of the Order of the British Empire for his services to the Mining Industry and is an Honorary Life Fellow of the Australasian Institute of Management
Mr Neil Stuart – Non-Executive Director Neil is a qualified senior geologist who began his career in the mining industry in 1968. Neil has worked all over the globe and developed extensive experience in a wide range of mineral commodities including coal, uranium and base metals. Neil was a founding Director of Oroplata Ltd and Rimfire Pacific Mining N.L. He is presently a Non-Exec Chairman of Bowen Energy Ltd and Non-Executive Director of
Orocobre Ltd and Axiom Mining Ltd. For personal use only use personal For
Mr Henry Khoo – Non Executive Director Henry has extensive sales, marketing and management experience in consumer and durable products in Asia Pacific. He has also been involved in project acquisitions, evaluation, company mergers and Initial Public Offerings.
5 OGL Tenements Location OGL’s mining/exploration tenements are the closest to the Port of Brisbane
Yancoal 380km Peabody New Hope 293km 227km
Tenements For personal use only use personal For
Mining & Exploration Tenements are located <85km to the Port of Brisbane 6 ASX Listed Project Comparables
Ebenezer is one of the closest emerging coal mines to an established Port in Australia
Ebenezer (OGL) 90km (West Moreton) Thermal
Jeebropilly (New Hope) 90km (West Moreton) Thermal
New Oakleigh (New Hope) 100km (West Moreton) Thermal
Doyles Creek (Nucoal) 100km (Hunter Valley) Thermal
New Acland (New Hope) 227km (West Moreton) Thermal
Dingo West (Bandanna Energy) 260km (Bowen) PCI/Thermal
Wilkie Creek (Peabody) 293km (West Moreton) Thermal
Vickery South (Coalworks) 350km (Gunnedah) SSCC/Thm
Range (Stanmore) 360km (Surat) Thermal
Maules Creek (Aston) 380km (Gunnedah) SSCC/Thm
Columboola (Metrocoal) 380km (Surat) Thermal
Cameby Downs (Yancoal) 380km (West Moreton) Thermal
Meteor Downs (Endocoal) 420km (Surat) Thermal
For personal use only use personal For 0 50 100 150 200 250 300 350 400 450 Rail Distance To Nearest Port (km)
Key: Projects located in same basin as Ebenezer (OGL) Source: OGL Review and Company Review 7 Key Project Details
. The tenements (ML4712 & MDL172) are both located in South East Queensland, near Ipswich . Ebenezer covers 675ha with freehold titles Location . Tenements are in close proximity to New Hope Corporation Limited’s (“New Hope”) existing Jeebropilly and New Oakleigh coal mines . Coal transport solutions identified – road and rail haulage and MoU for Port access
. Total JORC probable reserves of 13.7Mt and JORC resources of 308.2Mt Existing JORC Resources . Ebenezer (ML4712) – 13.7Mt JORC Reserve, 31.3Mt JORC Resource & Reserves . Bremer View (MDL172) – 276.9Mt JORC Resource . Additional 366Mt Exploration Target (as identified by Runge)
Product . Coal is high quality export thermal coal (6,659kCal/kg – adb, LOM Average)
. Ebenezer was mined from 1988 until closing in 2003 Ebenezer . Historic production of 33.6Mt ROM coal (max. annual production 3.0Mt ROM) Historical Production . Idemitsu owned – closed due to low prevailing coal prices A$37/t (mid US$20/t)
For personal use only use personal For . Geology well understood – previously mined and extensively explored Geology . Located in the Walloon Coal Measures and exhibit the same geology as nearby New Hope operating coal mines Jeebropilly and New Oakleigh
8 Key Project Details
. Near term coal production (within 12 months) Ebenezer Initial Mine . Phase 1a – 1Mtpa ROM to produce approximately 600ktpa of export quality coal Plan product . Phase 1b – Expansion to produce ~1.2-1.5Mtpa of export quality coal Strip Ratio . Ebenezer: LOM average 5.2 bcm per ROM tonne (1st 4 years at average 4.5:1) . Power – 110KV power lines, sub-station supply in place onsite Onsite Infrastructure . Water supply secured via a dedicated pump & pipeline from the Bremer River . Tailings dam, raw water dam, ROM pad, site office . 82km to Pinkenba precinct (Port of Brisbane), State owned highways/Tollways – no Road Access expected restrictions to truck movements, 3 trucks per hour for 600Ktpa production . Adjacent existing rail line loop and rail to the Port of Brisbane approximately 90km away Rail Access . Existing West Moreton railway line owned by QR and operated by QR National . East of Toowoomba Range bottleneck – major advantage for latent train capacity . Phase 1a-1b – Pinkenba precinct (Port of Brisbane) – under-utilised (currently at ~20%) . Phase 2 – Pinkenba precinct (Port of Brisbane) plus additional capacity through Port of
For personal use only use personal For Brisbane (Fisherman Island) expansion plans. Existing coal terminal operated by Port Access Queensland Bulk Handling (“QBH”) – current capacity of 10Mtpa . Port of Brisbane Authority is targeting a doubling of coal export capacity to 20Mtpa by 2020 – initial expansion to 14Mtpa – OGL is a logical cornerstone customer due to proximity to Port 9 Ebenezer Mine (ML4712) Overview
Resources and Reserves Summary for Ebenezer Ebenezer Coal Specifications Low 15 Years Newcastle Resources Reserves High Ash Category Coal Quality Ash LOM Export Product (Salva Estimate) (Runge estimate) Product Average Benchmark Probable Reserves 13.7 Moisture % 4.0 4.0 4.0 2.3 Indicated Resources 24.1 Ash % 14 22.4 14.4 13.5 Calorific 6,700 5,800-6,300 6,659 6,760 Inferred Resources 7.2 Value kcal/kg Total 31.3 13.7 Sulphur % 0.47 0.50 0.48 0.60
Proposed Production Profile
Represents <2% '000 tonnes Export Coal Product discount to 3,500 Newcastle benchmark on 3,000 average CV 2,500 basis
2,000 Phase 1 1,500 Phase 2
1,000 For personal use only use personal For 500
- 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Production year 10 Coal Quality – Ebenezer Mine Comparables
The Ebenezer project has export quality thermal coal. The coal qualities include high calorific value, low sulfur and low nitrogen
18 10 % adb % adb Moisture Content Ash Content 9 16 8 14 Newcastle Benchmark
7 12 6 10 5 8 4 6 3 Newcastle Benchmark 2 4 1 2
0 0 Cameby Downs Wilkie Creek New Acland Jeebropilly EBZ Cameby Downs Wilkie Creek New Acland Jeebropilly EBZ 6,900 kCal/kg CV Calorific Value Newcastle Benchmark 0.8 6,700 % adb Sulphur Content 0.7 6,500 Newcastle Benchmark 0.6
6,300 0.5
6,100 0.4
0.3
For personal use only use personal For 5,900 0.2 5,700 0.1 5,500 0 Cameby Downs Wilkie Creek New Acland Jeebropilly EBZ Cameby Downs Wilkie Creek New Acland Jeebropilly EBZ Source: OGL 11 Ebenezer Mine
Historical Ebenezer Lanes Pit Operation and Current Site Layout For personal use only use personal For
12 Ebenezer Geology – Thin Seam Mining
The mining process utilises smaller, readily available equipment with lower capital and consumable costs (eg. tyres)
Mine Measure Coal Sequence Geological Characteristics 0-100m depth; 6 seam groups (A-F), 52 plies – 0.2m ave.coal Ebenezer Walloon Ebenezer thickness = >10m coal 0-120m depth; 6 seam groups (Ebenezer), 5 seam group (Mt Mort), Bremer View Project Walloon Ebenezer & Mt Mort 132 plies – 0.26m ave. coal thickness => 34m coal 0-120m depth; 7 seam groups, 43 plies – ave. coal thickness between Jeebropilly Walloon Jeebropilly 0.06-0.43m
New Acland Walloon Acland-Sabine 6 seam groups, 47 plies – 0.23m ave coal thickness
Working coal seam section For personal use only use personal For
Historical Ebenezer Mine Photo Historical Ebenezer Mine Photo 13 CHPP & Coal Loading Infrastructure
. OGL has an option to purchase a Modular Coal Handling & Modular CHPP Unit - 175-200t/hr Preparation Plant (CHPP) and Raw Crusher unit . The CHPP and Raw Crusher units are key operating items required to bring the project into production . The CHPP is a second hand unit and will require refurbishment and commissioning by an independent industry contractor . The Raw Crusher unit is brand new . Both units are suitable for the planned Phase 1a production level
Raw Crusher Unit - 500t/hr Modular CHPP Unit - 175-200t/hr For personal use only use personal For
14 Production Profile & Infrastructure
Phase 1: 0.6-1.5Mtpa Coal (Ebenezer Mine) Phase 1a – 600ktpa Coal . Transport: Road . Port: Pinkenba precinct (Port of Brisbane) – dedicated coal stockpile area (seek exclusive OGL use) Advantages: Near term start, immediate access to port, low capex, no resident impact by road Phase 1b – 1.5Mtpa Coal . Transport: Road . Port: Pinkenba precinct (Port of Brisbane) – dedicated coal stockpile area (seek exclusive OGL use) Advantages: quick ramp up to higher coal output volume from mine site, target to expand via simple change to “Plan of Operations”, minimal capex for expansion at mine site
Phase 2: 3Mtpa Coal (Bremer View Project) . Transport: Road and Rail for increased output from 1.5Mtpa to 3.0Mtpa . Port: Pinkenba precinct (Port of Brisbane) and Fisherman Island (Port of Brisbane) . Fisherman Island (Port of Brisbane) coal terminal expansion plan – to 14Mtpa by 2014 and targeting 20Mtpa by 2020 Advantages: OGL operation strategically located – nearest coal operation to Fisherman Island site, east of the For personal use only use personal For Toowoomba Range avoiding rail bottleneck, potential significant coal producer to support/cornerstone Fisherman Island expansion plans
15 Infrastructure Options
Coal Haulage and Port Access Options For personal use only use personal For
16 Infrastructure Options
. Port Access – Capacity available for 600ktpa + Road Transport . Approvals – Low Risk, state road . Capital Costs – Low Pinkenba Precinct . Transport Costs – Moderate, 81km Port of Brisbane . Timeframe – Immediate access . Operational Usage – Short/Long term option . Operational Capacity – 600ktpa to 1.5Mtpa+
. Port Access – QBH fully contracted, PBPL planned expansion option only Rail Transport . Approvals – Low Risk, QR/QRN IAP obtained . Capital Costs – High Fisherman Island Terminal . Transport Costs – Low-Moderate, 90km Port of Brisbane . Timeframe – minimum 2 years
. Operational Usage – Long term For personal use only use personal For . Operational Capacity – up to 3Mtpa*
* OGL estimates, subject to PBPL’s planned expansion
17 Road Access Road to the Export Market . Travel distance by road to the Pinkenba precinct is approximately 82km . Path via major state highway, motorway (toll way) and into industrial port zone (no residential impact) . Low traffic impact, heavy duty highway/motorway was recently upgraded . Permits and Approval process are known and will require standard engagement of key stakeholders Roadways to Export Port: 1.Mine Site 2.Champions Way 3.Cunningham Highway 4.Ipswich Motorway (M2) 5.Logan Motorway (M2) 6.Gateway Motorway (M1) 7.Kingsford Smith Drive 8.Pinkenba precinct
Port Site
M1 For personal use only use personal For
18 Port Access - Phase 1a & 1b
Pinkenba Precinct - Port of Brisbane Facility . Existing under-utilised port facility . OGL is progressing road haulage approvals – low capital costs and immediate access
. MoU executed for feasibility study which forms the basis for port access agreement, CAPEX and regulatory approvals . This Port solution enables OGL to
operate as an independent producer For personal use only use personal For
19 Rail Access
ML4712 Site Layout and Rail Loop Location . Tenements are 90km by rail to the Port of Brisbane
. OGL received an initial Indicative Access Proposal (“IAP”) from QR National to rail up to 600,000 ton of coal p.a. for 15 years from the Ebenezer Mine
. The existing rail spur and loop is a QR-owned multi user facility historically shared with the Jeebropilly mine . OGL has submitted formal request to QR for rail capacity to Fisherman Island (Port of Brisbane) for Phase 2 production
output For personal use only use personal For
20 Port Access Phase 2 – Fisherman Island
Fisherman Island Terminal, Port of Brisbane . Existing Port capacity at the Fisherman Island (Port of Brisbane) is currently 10Mtpa and fully contracted . The coal terminal is operated by Queensland Bulk Handling (QBH) – a 100% subsidiary of New Hope Corporation Limited . Formal request has been made to QBH to access existing capacity and future expanded capacity
. The Port of Brisbane Authority has publicly stated that it is seeking to expand the volume of export capacity to 20Mtpa by 2020 . Short term expansion to 14Mtpa by 2014 . Due to OGL’s strategic mine location and close
For personal use only use personal For proximity to the Port of Brisbane, there is an ability to support/cornerstone future expansion plans at Fisherman Island
21 Bremer View (MDL172)
Tenement Highlights Location Map of Bremer View Project . Bremer View is located adjacent to the Ebenezer Mine . Tenement covers 9,202ha of private land with extensive exploration drilling by Ebenezer Mining Company . Current JORC resources of 276.9Mt . Coal resources occur between 0-120m depth. JORC Resource estimate based on 435 historical drill holes . Additional Exploration Target of 366Mt has been estimated by Runge and future exploration will seek to upgrade this to a JORC compliant Resource . Coal quality is consistent with that of the Ebenezer and Jeebropilly Mines . Bremer View tenement (MDL 172) granted to 31 October, 2015 Resources Summary for Bremer View Category Bremer View (Mt)
. only use personal For Tenement contains coal seams from the Walloon Coal Measure in 2 coal sequences: Indicated - – Ebenezer (6-8 seam groups) Inferred 276.9 – Mt Mort (5 seam groups) Total 276.9
22 Bremer View (MDL172)
Priority Resource Locations at MDL 172
142.4Mt
23.8Mt
22.3Mt 50.2Mt . Priority - Initial Phase 2 development target area
8.8Mt
. Beyond Phase 2
29.4Mt development target area For personal use only use personal For
Source: Runge Limited 23 Costs & Funding
Ebenezer Mine - Operating Costs Use of Funds A$60m A$100m
Project Acquisition $40.2m $40.2m . Expected to be a Low-Cost West Moreton coal producer . Close to existing rail and port infrastructure <90km Equipment and Capital Costs $5.0m $25.1m
. Strong operating margin and solid cashflow Site Preparation and Start-up $2.5m $8.2m
. Close proximity to workforce (no FI/FO) Bremer View Exploration & Development $2.0m $10.4m
Expenses of the offer $6.8m $10.5m Estimate of Operating Costs*: Stamp Duty on acquisition $2.6m $2.6m . Mining and processing costs – A$32/t ROM A$53/t Product . Transport costs – A$11-$14/t Product Working Capital $1.4m $3.5m . Port costs - $5-7/t Product Total* $60.5m $100.5m
. Total Operating Cost: A$69-$74/t Product OGL Capital Requirement A$60m to A$100m . Funds to commence operations; . Exploration and development expenditure planned for MDL 172 to increase resource; and For personal use only use personal For . Initial reserve classification for mining feasibility studies
* OGL Resources conceptual operating costs estimates Proposed Project Timeline Key next steps: . Complete project acquisition . Finalise infrastructure solution . Engage operations personnel and contractors
Calendar Year 2012 2013 2014
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
Project Acquisition Resources/Reserves JORC update Infrastructure Access Agreements Site Infrastructure Works
Waste Removal
Construction to commissioning of crusher/CHPP/train load-out Commencement of Operations/Coal Mining (Ebenezer) First Coal Sales (Ebenezer) MDL172 Exploration Preparation
Planonly use personal For of Operation lodgement and Approvals (Phase 1b expansion) Infrastructure Development & Construction (Phase 1b expansion) Initial Coal Production (Phase 1b expansion) 25 ASX Listed EV/Resource Comparables
EV/Resources 4.5
4.0
3.5
3.0
2.5
2.0
1.5
Average = 0.94 $/t 1.0 OGL 0.5 0.21
0.0 For personal use only use personal For CLR EER RES MTE BND CCC CKA OGL REY EOC CWK GUF NHO CPL TIG AKM AQC SMR COK CZA ZYL GCL NCR KRL GNM AQA NAE NHC WHC BTU
Key: Exploration and development projects Source: Patersons Research OGL presented on a fully funded for production basis – Phase 1 and $100m capital raise. Producers 26 Transaction Multiples
Thermal exploration and development stage assets that have been transacted during the past year
Total Date Asset Acquirer Vendor Location Mine Type Coal Type Consideration Reserves Target Production $/Resource Resources OGL Zedemar Ebenezer and 0.6Mtpa (2013) May-11 Resources Holdings Pty Queensland OC Thermal $50m (100%) 13.7Mt 308.2Mt 0.16 Bremer View 3Mtpa (2018-19) Limited Ltd
Aston May-11 Maules Creek Itochu Gunnedah OC & UG Met/Thermal $345m (15%) 356Mt 610Mt 10Mtpa (2016) 3.80 Resources
Cockatoo Jul-11 Woori Mitsui Surat OC Thermal $37.25m (49%) 40.6Mt 84.3Mt 5.4Mtpa (2018) 0.90 Coal
Goldman Cameby Yanzhou Sach - 15Mtpa Aug-11 Bowen OC & UG Thermal $202.5 (100%) - 250Mt 0.80 Downs Coal Syntech (operating) Holdings
Alpha & Hancock Oct-11 GVK Galilee OC Thermal $1,260 (86%) - 7,900Mt 30Mtpa (N/A) 0.20 Kevin's Corner Prospecting
Bundi & DADI MetroCoal Nov-11 Surat UG Thermal $24m (15.3%) - 1,607Mt 10Mtpa (2017) 0.10 Coolumboola Engineering Ltd
Aston Nov-11 Maules Creek J-Power Gunnedah OC & UG Met/Thermal $370m (10%) 362Mt 678Mt 10Mtpa (2015) 5.46 Resources
Ellemby May-11 Monash Gloucester Holdings Pty Hunter UG Thermal $30m (100%) - 287Mt 9Mtpa (2017) 0.10 Ltd
For personal use only use personal For Galilee EPC Adani $500m (100%) Up to 60Mtpa Aug-10 Linc Energy Galilee OC Thermal - 7,800Bt 0.06 1690 Enterprises + $2/t royalty (N/A) Taroom & Cockatoo Jul-10 Anglo Coal Surat OC Thermal $105.5m (51%) - 435Mt 10Mtpa 0.24 Collingwood Coal
Average 1.18 27 ASX Listed Coal Comparables
Target Total Market First Forecast Company EV ($m) Key Asset/s Location Production Resource Cap ($m) Production Capex ($m) (Mtpa) (Mt)
OGL Resources $120 $65 Ebenezer Queensland 2013 0.6 – 3.0 $30 + 308.2
Surat Basin, Stanmore Coal $79 $56 The Range 2015 5.0 $505 498 Queensland Golden Triangle Bowen Basin and Bandanna Energy $214 $93 Projects, South Galilee Basin, 2014 35.0 $3,150 1,356 Galilee Project Queensland Bowen Basin, Cockatoo Coal $213 $331 Various Producing 12.0 N/A 1,481 Queensland Coalspur $711 $689 Vista Alberta, Canada 2015 11.2 $1,234 3,735
Coalworks $178 $158 Vickery South NSW 2015 3.0 $243 1,157 Bowen Basin, Endocoal $58 $47 Orion Downs 2013 2.5 $65 389 Queensland Hunter Valley, NuCoal Resources $206 $170 Doyles Creek 2015 5.0 $500 512 NSW Bundi & Surat Basin, Metrocoal $60 $40 2017 10 N/A 3,121 Columboola JV Queensland Gunnedah Basin, Whitehaven Coal $4,144 $4,323 Various Producing 14.7 N/A 2,199
For personal use only use personal For NSW New Hope $3,504 $3,502 New Acland Queensland Producing 6 N/A 1,529
N/A: Not available Source: Iress, Patersons Research. As at 30 May 2012 OGL presented on a post $100m capital raising basis 28 Offer Details
Post-Consolidation
Shares & Options $60m Equity Raise & $50m Debt Facility $100m Equity Raise
Shares on Issue 88,172,313 13.45% 88,172,313 10.10%
Vendor Shares (Zedemar Holdings) 50,000,000 7.63% 50,000,000 5.73% Placement Investors 300,000,000 45.77% 500,000,000 57.29% Loyalty Option (Placement ONLY) - 3 months post-listing (OGLO.AU) 75,000,000 11.44% 125,000,000 14.32% Options on Issue – Existing (OGLO.AU) 16,250,000 2.48% 16,250,000 1.86% Debt-related options (unlisted) 66,000,000 10.07% N/A Performance Shares & Options
Performance Shares 10,000,000* 1.53% 10,000,000* 1.15% Performance Options - Board, Management & Broker 50,000,000 7.63% 83,333,333 9.55% Total 438,172,313 217,250,000 100.00% 648,172,313 224,583,333 100.00% Market Capitalisation A$87.63m A$129.63m
On completion of listing, OGL will have cash at bank of ~A$8-46m after costs are paid
Milestone Payments required for Performance Shares and Options to Vest (in equal 25% increments) 1. OGL receiving written confirmation from infrastructure providers to deliver and export coal from ML 4712 2. JORC compliant Reserves increase by 50Mt above existing reserves to a minimum of 63.7Mt total JORC Reserves 3. OGL completing cumulative coal sales totaling 500,000 tonnes at pricing deemed commercially acceptable by the Board of Directors 4. only use personal For Acceptance of a plan of operation for expansion to 1.2Mtpa of saleable product
29 Investment Highlights
Near term production export quality thermal coal projects
Current Mining Lease - Renewed Sept 2011
Environmental Approval to mine
JORC Reserves 13.7Mt (economic to mine)
Total JORC Resources (308Mt)
Close Proximity to infrastructure – multiple available options
Low CAPEX start-up
High Quality Thermal Product
Close proximity to workforce For personal use only use personal For Site ready for recommencement of operation
30
Appendix For personal use only use personal For Proposed Ebenezer Mine
Ebenezer Mine Today and Proposed Coal Pit Areas
ML4712 Ebenezer
Jeebropilly Rail Loop
MDL172 Bremer View For personal use only use personal For
32 Ebenezer Geology – Thin Seam Mining
Stratigraphic Column – Ebenezer Mine
Examples of typical coal working sections
for mining For personal use only use personal For
Historical Ebenezer Mine Photo 33 Proposed Ebenezer Exploration
Ebenezer Mine Proposed Exploration Plan
. Proposed 33 cored drillholes with full coal quality analyses . Increase Measured resources category and potential to increase coal reserve – target
18-20Mt For personal use only use personal For
34 Ebenezer Mine (ML4712) Overview
Ebenezer Mine Resources Cross Sections Source: Salva Resources For personal use only use personal For
35 Ebenezer Coal Quality
The Ebenezer project has export quality thermal coal. The coal qualities include high volatile matter, low sulfur and low nitrogen . Average coal seam thickness = 20cm . Coal depth = 0-100m . OGL expects all production to be exported with 75% high export quality and 25% higher ash content coal
Typical Analysis – Export Coal Quality Newcastle OGL Newcastle Export OGL Export Thermal Thermal Total Moisture (AR. %) 10.0 8.5 Ash Fusion Temperature (Reducing,oC) Calorific Value (ADB, kcal/kg) 6,700 6,760 IDT 1,570 1380 HT >1,600 HGI 40 52 FT >1,600 1540 Proximate analysis (ADB, %) Ash Analysis (%)
Inherent Moisture 5 2.3 Si2O 63.6 Ash 13 15 (ad) Al2O3 27.8 Volatile Matter 39 30.6 (ad) TiO2 2.0 Fixed Carbon 43 Fe2O3 1.8 CaO 1.3
Ultimate Analysis (DAF, %) MgO 1.1 For personal use only use personal For Carbon 81.0 Na2O 0.9 Hydrogen 6.2 K2O 0.6 Nitgrogen 1.4 P2O5 0.4 Mn O 0.1 Oxygen 10.6 2 4 SO 0.3 Sulphur 0.6 3 0.6 36 Key Risks
. Exploration is a high risk activity that requires large amounts of expenditure over extended periods of time. There can be no guarantee that the planned exploration Exploration & Development programs will lead to positive exploration results and the discovery of a commercial deposit or further, a commercial mining operation. There is no assurance that Risks exploration and development of the mineral interests owned by the Company, or any other projects that may be acquired by the Company in the future can be profitably exploited
. Commodity prices fluctuate and are affected by numerous factors beyond the control of the Company. These factors include world demand for bulk, base and other metals, forward selling by producers, and production cost levels in major metal-producing regions Coal Price and Exchange Rate Risk . Moreover, commodity prices are also affected by macroeconomic factors such as expectations regarding inflation, interest rates and global and regional demand for, and supply of, the commodity as well as general global economic conditions. These factors may have an adverse effect on the Company’s exploration, development and production activities, as well as on its ability to fund those activities
. The Company’s success depends to a significant extent upon its key management personnel, as well as other management and technical personnel including those Key Personnel Risk employed on a contractual basis. The loss of the services of such personnel could have an adverse effect on the Company
. The operations of the Company may be disrupted by a variety of risks and hazards which are beyond the control of the Company, including geological conditions, Operational Risks environmental hazards, technical and equipment failures, flooding and extended interruptions due to inclement or hazardous weather or other physical conditions, unavailability of drilling equipment, unexpected shortages of consumables or parts and equipment, fire, explosions and ther incidents beyond control of the Company.
. Resource and reserve estimates are quoted in accordance with the JORC Code. These are expressions of opinion based knowledge, experience and industry practice. It is Resources and Reserves the nature of these estimates that they may change over time as new information is obtained about projects, or as underlying assumptions change. They may also Estimates require adjustment where interpretation of data proves inaccurate. There is therefore a risk that resource and reserve estimates quoted in this document may change over time which may have an adverse effect on the Company’s proposed operations and mining plans.
. The Company requires capital to enable its projects to be brought into production. The Company’s current capital estimates are estimates based on labour, material, Capital Requirements construction and procurement costs at the date of those estimates. These costs may vary in future due to external economic influences, requirements placed upon the projects by approval conditions, availability of labour and detailed design changes that could render the projects uneconomic.
. The Federal Government has announced that it intends to introduce a Mineral Resource Rent Tax regime (MRRT) which will apply to entities involved in the mining of iron ore and coal in Australia. The MRRT is proposed to apply to the assessable profit based on the value of the resource extracted in all iron ore and coal projects. The Mineral Resources Rent Tax final form of the MRRT may change and the extent to which the Company will be affected will depend upon the final legislative form of the MRRT and its application to any of the Company’s projects that may be developed.
. In 2010, the Queensland Government released the “Protecting Queensland’s strategic cropping land” policy framework. Under the policy, it is proposed that mineral resources in defined agricultural areas will not be developed where they permanently alienate the land. Precise definition of strategic cropping land and definitive maps Government Regulation - identifying strategic cropping land have not yet been settled, although indicative maps have been published which do identify areas where strategic cropping land may Strategic Cropping Land exist. Based on the indicative maps, it would appear that the Company’s Bremer View Project (and potentially other projects) may, at least partially fall within the only use personal For strategic cropping land zones. Where a development is proposed in an area that is mapped as strategic cropping land, it will not be permitted to proceed if it permanently prevents the land being used for cropping in the future.
. The Mining Lease the Company wishes to acquire has been the subject of litigation attempting to invalidate the 2011 renewal of that mining lease on numerous grounds. That challenge was recently rejected by the Queensland Supreme Court, but the applicants have filed an appeal to that decision. While the Company believes Litigation Risk that the challenge to the renewal of the mining lease is made on invalid grounds, the outcome of the appeal cannot be predicted with certainty and if the appeal succeeds, the Company will not acquire the Mining Lease or the associated Mineral Development Licence. 37
Queensland Coal For personal use only use personal For
South-East Queensland Coal For personal use only use personal For Contacts
SYDNEY BRISBANE Level 28 Level 1 31 Market Street 349 Coronation Drive OGL Office Addresses Sydney NSW 2000 Milton QLD 4064
Phone: +61 2 9267 4633 Phone: +61 7 3720 8023 Fax: +61 2 9267 4388 Fax: +61 7 3729 8988 Email: [email protected]
Bill Kemmery Fortbridge Consulting Phone: +61 400 122 449 Media & Investor Email: [email protected] Relations
Matthew Storey Jonathan Pearce Patersons Securities +61 2 8238 6224 +61 2 8238 6218
Corporate Advisors +614 666 069 +614 898 993 For personal use only use personal For [email protected] [email protected]
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