The Undiscovered Coking Coal Producer y INSERT NEW IMAGE SLIDE INSERT IMAGE Gujarat NRE Coke Limited Arun Kumar Jagatramka Vice Chairman & Managing Director February, 2009
Disclaimer This presentation has been prepared by and issued by Gujarat NRE Coke Limited ( Gujarat or the Company ) to assist it in informing interested parties about the Company. It should not be considered an invitation or offer to subscribe for or purchase any securities in the Company or as an inducement to make an offer or invitation with respect to those securities. No agreement to subscribe for securities in the Company will be entered into on the basis of this presentation. Forward Looking Statements This presentation contains forward looking statements. While Gujarat has no reason to believe that any statements are either false, misleading or incorrect, it cannot guarantee that through either passage of time or actions beyond the control of Gujarat, they will not become so. You should not act or refrain from acting in reliance on this presentation material. This overview of Gujarat does not purport to be all inclusive or to contain all information which its recipients may require in order to make an informed assessment of the Company s prospects. You should conduct your own investigation and perform your own analysis in order to satisfy yourself as to the accuracy and completeness of the information, statements and opinions contained in this presentation before making any investment decisions. There are a number of risks, both specific to Gujarat and of a general nature which may affect the future operating and financial performance of Gujarat and the value of an investment in Gujarat including and not limited to economic conditions, stock market fluctuations, iron ore demand and price movements, timing of access to infrastructure, timing of environmental approvals, regulatory risks, operational risks, reliance on key personnel, reserve and resource estimations, native title and title risks, foreign currency fluctuations, and mining development. 2
Has the India story run out of steam? There is a global meltdown all Market indices are in a free fall When the US sneezes, the world catches cold Billion dollar bailouts have gone unsung Still, there seems no light at the end of the tunnel
Indian context: It s a mere Traffic jam Imagine the cross roads Where everybody is stuck on your move The cars, the fuel, the drivers are all there the fundamentals are in place Only, no one wants to be the first mover Due to severe lack of confidence on one hand As well as the Desire to profit from the downturn
What next? The moment the bottleneck eases, Cars will zoom past in the un-congested road ahead With the fundamentals in place, all that is lacking today is Investor confidence Once that returns, The indices will be on steroids Especially good, old resource plays Period 5 8 months
A Snapshot Gujarat NRE Coke Limited Largest independent producer of Metallurgical Coke in India Listed on the Bombay and National Stock Exchanges, with a market capitalisation of over INR 15 bn (No. of shareholders 180,000) Profit earning and dividend paying company with strong financials and credit rating Met Coke capacity 1 million tons, being increased to 1.25 Million Mtpa by March 09, and will further ramp upto 2.25 with setting up of 1 million TPA green field plant in Southern India The only Indian company to have acquired captive coking coal mines outside India Strong focus on the Environment with ISO 14001:2004 & OHSAS 18001:1999 certification Setting up Captive Jetty at Bellikeri, Karnataka and Railway Siding at Dharwad which would improve logistics and reduce cost Acquired six new dry bulk carriers on long term time charters with an option to buy. Received several awards as Super performer, Highest wealth creator, Best 6 Performing Mid sized company, environment & safety by various media houses
Last 2 Annuals ~ Current 9 Months GUJARAT NRE COKE LIMITED 1400 1200 1000 Rs Crores 800 600 400 200 0 Year 31.03.2007 Year 31.03.2008 9 Months 31.12.2008 Total Income PAT
Quarterly Performance for Sep Qtr GUJARAT NRE COKE LIMITED 500.00 450.00 400.00 350.00 300.00 Rs. Crores 250.00 200.00 150.00 100.00 50.00 0.00 Quarter Ended Quarter Ended Quarter Ended Quarter Ended 30.09.2005 30.09.2006 30.09.2007 30.09.2008 Turnover PAT
Performance for 9 Months Period Ended 1400 1200 GUJARAT NRE COKE LIMITED Rs. Crores 1000 800 600 400 200 0 9 Months Ended 31.12.2005 9 Months Ended 31.12.2006 9 Months Ended 31.12.2007 9 Months Ended 31.12.2008 Turnover PAT
Our Bonus History Fin. Year Ratio Record Date Allotment Date 1995-96 11:10 26-Nov-1996 23-Dec-1996 2001-02 1:2 30-May-2003 16-Jun-2003 2002-03 1:2 21-Apr-2004 30-Apr-2004 2003-04 1:1 10-Feb-2005 12-Feb-2005 2004-06 1:1 30th Sept-2006 18-Oct-2006 2007-08 2:5 20th Oct-2008 31-Oct-2008
Long term NRE Share Price compared with Nifty (Adjusted for Bonus Issues) 40 GNCL Nifty 4000 35 3500 30 3000 25 2500 20 2000 15 1500 10 5 2004 was the earlier peak in coke cycle which bottomed out in Dec 05 NRE has still outperformed the NIFTY by 54% in last 4 years (2.8.04 to 4.11.08) & 60% in last 2 years (3.10.06 to 4.11.08) 1000 500 0 2.8.04 3.10.06 2.4.07 16.10.08 4.11.08 0
GUJARAT NRE COKE LIMITED Growth @ speed of thought Shareholding Pattern Jagatramka Family 46% Mutual Funds & FIIs 22% Indian Public (180,000) 32% ---------- 100% Listed on BSE & NSE Ticker Code: GUJNRECOKE BSE: 512579 Face Value : Rs. 10 per share Returns to Shareholders Investment of Rs. 1 million 1994 equals Rs 0.8 billion in 2008/2009
GUJARAT NRE COKE LIMITED Growth @ speed of thought GUJARAT NRE COKE LTD Operations HARD COKING COAL (NSW, AUSTRALIA) RESOURCES 560 MMT Gujarat NRE Minerals (ASX: GNM) NRE NO. 1 COLLIERY 300 MILLION MT NRE Wongawilli Colliery 260 MILLION MT *Proposed Facilities In Australia Waste Heat Recovery Power Plants Total Khambhalia* 15 MW Bachau* 15 MW Dharwad* 30 MW Wind Power 60 MW STEEL UNIT TMT BARS : 0.311 MMTPA COAL WASHERY AT KHAMBALIA & BHACHAU (0.75 MTPA each) 87.5 MW LOW ASH METALLURGICAL COKE 1.25 MMTPA KHAMBALIA UNIT 0.358 MILLION MTPA BHACHAU UNIT 0.324 MILLION MTPA *DHARWAD UNIT 0. 25 MILLION MTPA BNCL (60%) DHARWAD UNIT 0. 324 MILLION MTPA In India
100% GUJARAT NRE COKE LIMITED Listed on NSE & BSE in India 13% Gujarat NRE Limited Pluton Resources Ltd 100% Wonga Coal Pty Ltd 10% Pike River Coal Ltd 15% Rey Resources Ltd Exploration tenements In Australia 85% Gujarat NRE Minerals Ltd Listed on ASX:GNM 100% Coal mine in New Zealand. Coal off-take For 400,000MT pa Exploration tenements In Australia, Chile & Peru NRE No. 1 300 MT Gujarat NRE Resources NL 100% Gujarat NRE FCGL Pty Ltd NRE Wongawilli 260 MT International Operations
GUJARAT NRE MINERALS LIMITED Listed on ASX Ticker Code: GNM Issue Price $0.50 per share (In July 07) Shares on Issue 803 million Current Market Price $0.35 Fully diluted Market Cap AUS $0.3 Billion +
GUJARAT NRE MINERALS LIMITED Shareholding Pattern: Holding Co.(GNCL) 85% Institutions 08% Corporate Bodies 05% Individuals 02%
Our Journey Down under Acquired NRE No1 mine Dec 2004 Re-opened NRE No1 mine Sept 2005 ASX listing raising a total of $22m July 2007 Four panels in operation in Bulli Seam Acquires ASX listed Gujarat NRE Resources Avondale/Huntley Dec 2007 Completes acquisition of Eloura colliery from BHP Dec 2007 Wonga mains project commenced to access Wongawilli seam Sept 2007 Commenced Development at Wongawilli Colliery Feb 2008
23 Sep 2005 A historic Moment That witnessed the christening of
First coal mine in Australia Owned by an Indian Company Gujarat NRE Coke
In this period We strengthened our bonds with the community
invested in the mine to get it up and running
28 th April,2008 Hon. Minister Ian Macdonald signalled the start of our 2 nd coking coal mine
Gujarat NRE Minerals Ltd Fully Focussed, Hard Coking Coal Producer Located in the Southern Coalfields of New south Wales, approximately 20kms for Port Kembla Currently employing more than 400 people in Illawarra directly Established Infrastructure including rail Bord and pillar production 900,000 tonnes per annum Longwall mining commencing in 2009, ramping up production to 5.9Mt by 2011 and 7Mt by 2013 Over 570Mt of Reserves and Resources 33Mt Measured Reserves, 153Mt Indicated and 389Mt Inferred Work underway to convert indicated and inferred to measured Exporting to India under long term off-take contract 85% held by Gujarat NRE Coke
Gujarat NRE Minerals Ltd Board and Management Mr Arun Jagatramka Chairman 25 years professional & management experience, gold medallist B.Com (Hons), FCA, AIMM Insert Photo Mr. Steve Bow Head of Operations 28 Years Underground Coal experience BE (hons), MEngSc Mrs. Mona Jagatramka Non-Executive Director 10 years of experience in management & administration affairs B. Sc. (Hom.) Insert Photo Dr. Chris Harvey Head of Tech. Services 35 years coal industry experience PhD Mining Engineering Dr Andrew Edwin Firek Non Executive Director 25 years experience in mining & Mineral processing MSc, Ph D, FAusIMM, FAIE Mr. Steve Coffee Group Engineering Manager 28 years Underground Coal experience Mechanical Engineers Certificate of Competency. Insert Photo Mr. Maurice Anghie Non Executive Director and Chair of the Audit Committee Experienced financially qualified Professional with commercial skills & Legal/regulatory/governance expertise BBus, FCA, FCPA, MAICD Insert Photo Mr Phil Wakeford Operations Manager 32 years Underground Coal experience Mine Managers Ceriticate of Competency
GNML Resource Statement Measured Indicated Infered Total Mt Mt Mt Mt NRE No 1 Colliery Bulli 12.4 31.7 15.1 59.2 Balgownie 0.0 37.5 42.7 80.2 Wongawilli 0.0 59.3 117.9 177.2 Total 12.4 128.5 175.7 316.6 Wongawilli Colliery Bulli 0.0 8.0 25.0 33.0 Wongawilli 21.0 16.0 114.0 151.0 Tongarra 0.0 0.0 74.0 74.0 Total 21.0 24.0 213.0 258.0 Total Resource 33.4 152.5 388.7 574.6 Reserve Reports Summary Extracted from JORC compliant reports carried out by NRE#1 Barry Clark, Technical Services Consultant, Bureau Veritas International Trade Australia (Sept 2008) Wongawilli Barry Clark, Technical Services Consultant, Bureau Veritas International Trade Australia (March 2008)
Production Mine Seam 2008/9 2009/10 2010/11 2011/12 2012/13 2013/14 Mt Mt Mt Mt Mt Mt NRE No1 Bulli 0.7 0.5 0.7 0.4 0.4 0.3 Wongawilli 0.0 0.4 0.6 3.4 3.1 2.9 Balgownie 0.0 0.0 0.3 0.3 0.3 0.3 Total 0.7 0.9 1.5 4.0 3.8 3.5 Wongawilli Wongawilli 0.2 1.5 1.7 1.6 2.3 3.3 Bulli 0.0 0.1 0.3 0.3 0.3 0.3 Tongara 0.0 0.0 0.0 0.0 0.0 0.0 Total 0.2 1.6 2.0 1.9 2.6 3.6 Total Production 0.9 2.5 3.5 5.9 6.4 7.1
Gujarat NRE Minerals Ltd Raw Coal Production Profile 8 7 6 5 4 3 2 No. 1 Wongawilli Total 1 0 Mar'09 Mar'11 Mar'13
NRE Mining Operations
NRE #1 Mine Bulli Seam Extraction Infrastructure already inplace to mine Bulli Seam Mining currently underway in 4 areas NRE #1 Bulli Av. Ash% Domains Yield% CSN IM% Bulli Seam Quality Summary Bulli 84.28 10.11 2.4 0.8 V mains 76.45 11.53 2.5 0.8 P,O & H Panels 76.8 9.68 2.75 0.8 310 311 83.4 10.3 2.2 0.8
NRE #1 Mine Wongawilli Seam Extraction Development underway from R.V Pit-top and from Shaft #4 Man and materials. Development in both Western and Eastern areas will be independent of each other, however LW extraction to commence in the eastern block first whilst establishing conveyors and infrastructure to link 2 Areas together Known geology due to previous development and extraction above (Bulli and Balgownie seams) NRE #1 Wongawilli Domains Av. Yield% Ash% CSN IM% Wongawilli Seam Quality Summary Wonga East 50.48 13.23 6.01 0.7 Wonga West 52.81 11.72 8.5 0.81
NRE #1 Mine Balgownie Seam Extraction Access to seam via Shaft #4 man and materials which is being developed as part of the access to Wongawilli seam. Mine out using pillar extraction whilst developing longwall blocks in seam below. Known geology from Bulli Seam above NRE #1 Balgownie Domains Av. Yield% Ash% CSN IM% Balgownie Seam Quality Summary Balgownie 59.17 9.14 4.2 0.8
NRE Wongawilli Mine Wongawilli Seam Extraction Using Existing Infrastructure to extract remnant coal reserves whilst establishing new roadways to access southern coal reserves NRE Wongawilli Domains Av. Yield% Ash% CSN IM% Wongawilli Seam Quality Summary Eloura Area 71 10.4 >7 1% Nebo Area 76 10.5 7.5 1%
NRE Wongawilli Mine Conceptual Design for Wongawilli Seam Extraction AREA 1 NRE Wongawilli Domain Av. Yield% Ash% CSN IM% Wongawilli Seam Quality Summary AREA 1 75 11.5 5.5 1% Bulli Seam Quality Summary AREA 1 95 9.8 3.5 1% Proposal has recoverable resource of greater than 16MT of Wongawilli Seam Coal 2.5MT from Area 1
Capital plans NRE No.1 Mine GNML Financial Year Capital Investment ($AUD) Key Milestones for Period 2008/2009 $ 56.3 M Wonga Mains Project, Procurement of Mining Equipment 2009/2010 $ 55.0 M Wonga Mains Project, Surface Coal Handling 2010/2011 $ 186.2 M Procure LW, Washery Project 2011/2012 $ 20.9 M LW commencement Apr 2011, V Mains Lifting Panels Commence 2012/2013 $ 10.4 M Wonga West Development to commence 2013/2014 $ 7.5 M TOTAL $ 336.5 M
Capital plans Wongawilli Mine GNML Financial Year Capital Investment ($AUD) Key Milestones for Period 2008/2009 $ 11.5 M Procurement of Mining Equipment. 2009/2010 $ 45.0 M Nebo belt upgrades, Wonga South Project, Procurement of 2 Continuous Miners, Commence Longwall July 09. 2010/2011 $ 24.0 M Wonga South Project 2011/2012 $ 82.3 M Wonga South Project, Avon Shaft Project, Surface Coal Handling and Processing Projects 2012/2013 $ 50.0 M Wonga South Project, Wonga South LW Commence 2013/2014 $ 5.0 M TOTAL $ 217.8 M
Next 12 Months Activity Wongawilli Commence Longwall Extraction Commence Drivage to Wonga South Provide Access Roadway to Nebo Complete Stage 1 exploration program of Wonga South NRE #1 Start V-Mains Start Wonga West Drivage Refurbish #1 Shaft Continue Wonga Mains Project
Thank You A parting note : Tough Times don t last. Tough Entities Do!