company presentation august 2009 - white energy co

white energy company limited ABN 62 071 527 083

Company Presentation

June 2015

A Diversified Coal Company – Coal Technology and Coal Mining

Forward Looking Statements. Statements in this presentation, particularly those regarding possible, targeted, expected or assumed future performance, costs, dividends, returns, production levels or rates, prices, reserves, growth, earnings or trend projections are or may be forward looking statements. The words ‘anticipated’, ‘expected’, ‘intended’, ‘projection’, ‘forecast’, ‘estimate’, ‘guidance’, ‘plan’, ‘could’, ‘should’, ‘may’, ‘target’, ‘consider’, ‘believe’, ‘will’ and other similar expressions are intended to identify forward looking statements. Such forward looking statements relate to future matters and may involve known and unknown risks, uncertainties, or other factors, many of which are outside the control of the company, which could cause actual results to differ materially from past results or results expressed or implied by such statements. To the maximum extent permitted by law, the company, its related bodies corporate and their directors, officers, employees, agents and advisers disclaim any obligation to update any forward looking statements to reflect subsequent events or circumstances.

For more information visit www.whiteenergyco.com or contact:

Brian Flannery

Managing Director and CEO

White Energy Company Limited

+61 2 9959 0000

Disclaimer

Ivan Maras

Chief Financial Officer

White Energy Company Limited

+61 2 9959 0000

Summary information. The information in this presentation does not purport to be complete. It should be read in conjunction with

the company’s other periodic and continuous disclosure announcements lodged with the Australian Securities Exchange, which are

available at www.asx.com.au.

No liability. No representation or warranty, express or implied, is made in relation to the fairness, accuracy or completeness of the

information, opinions and conclusions expressed in the course of this presentation. To the maximum extent permitted by law, the

company, all of its related bodies corporate and their directors, officers, employees, agents and advisers do not accept any

responsibility or liability (including, without limitation, any liability arising from negligence on the part of any person) for any loss or

damage incurred by any person in connection with this presentation or any action taken on the basis of such information, opinions or

conclusions. You must make your own independent assessment of the information, opinions and conclusions and in taking any

action seek your own independent professional advice as appropriate.

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http://www.asx.com.au/







White Energy

A diversified coal company listed on the ASX with significant global growth prospects

White Energy is the exclusive worldwide licensee of a patented technology which upgrades high moisture low value sub-

bituminous and lignite coals through a low cost process of dehydration and compaction. This technology is known as the

Binderless Coal Briquetting (“BCB”) technology, and was developed by a consortia led by the Commonwealth Scientific

and Industrial Research Organisation (“CSIRO”).

White Energy has more recently applied the BCB technology to the beneficiation of thermal and metallurgical coal fines.

White Energy acquired Mountainside Coal Company Inc. (“MCC”) in 2013, following the earlier acquisition of South

Australian Coal Limited in 2010. These assets form the coal mining division of the Company.

Notes: (1) 1 ADR = 5 Ordinary Shares

(2) Fully diluted excludes unissued options

(3) Includes $2 million WA Supreme Court Security Bond relating to the freeze order obtained in respect of Bayan Resources’ shareholding in Kangaroo

Resources Limited and $2.8m in coal mining reclamation bonds at MCC

(4) As at 25 March 2015 – Top 40 extract of the White Energy Company Limited share registry

Key Statistics 31 May 2015

Share Price - ASX: WEC A$0.39

US ADR Price - OTCQX: WECFY (1) US$1.52

Ordinary Shares On Issue 328.4 million

Equity Market Capitalisation (2) A$128 million

Cash Reserves (approx) (3) A$34 million

Major Shareholders (4) Shareholding %

M&G Investment Management 17.93%

Gaffwick Pty Ltd 9.73%

Ganra Pty Ltd 9.24%

Remaining top twenty shareholders 35.30%

2

Solid Platform for Growth

White Energy is organised around two distinct – but related – business divisions which

provide an exciting pipeline of projects currently under development.

* 100% owned unless otherwise stated

Coal Mining Coal Technology

Mountainside

Coal Company

Inc.

Briquette

Bituminous

Coal Fines

(thermal, coking)

Upgrade

Sub-bituminous

coals

Indonesia Other Markets

To be

developed Current focus

Other

markets North America China

North

America Australia/NZ

South

Australian

Coal Limited

51% 51% 51%

Other

Opportunities

51%

South

Africa

3

Target Milestones for the Year Ahead

The Company has identified a number of key areas of focus for Financial Year 2014/2015

United States Africa Indonesia Australia

• Mountainside Coal

• Buckskin Mining

• Black River • TBA

• Lake Phillipson EL4534

• Cessnock Production Plant

• In commercial

discussions

• Commence mining

operations at the

proposed Flat Creek

coal mine.

• Construct and

commission a new and

improved coal wash

plant at MCC.

• Commence construction

of a BCB plant at MCC.

• Continue to evaluate

market conditions,

specifically progress with

coal export facilities.

• Construct and

commission a coal

fines beneficiation

plant at Woestalleen

(Phase One).

• Commence

construction BCB

Plant at Woestalleen

(Phase Two)

• Reach agreement to

construct BCB plant

with another major

South African coal

producer.

• Purchase a

suitable sub-

bituminous coal

mining asset.

• Ongoing development of BCB

technology through continued

investment in R&D activities.

• Conduct a number of extended

Demonstration Plant campaigns

using both bituminous coal fines

and sub-bituminous coals.

• Continue to evaluate EL4534 for

coal applications including coal

gasification.

• Establish

commercial

partnership with

Chinese miner/

power utility.

• Identify financial

partner for sub-

licensing

opportunity.

Key

Partners /

Projects

FY2014/15

Target

Milestones

China

4

A highly regarded board and management team with an industry wide reputation for

delivery and execution of major coal projects

Board and Management

Travers Duncan

Chairman

Brian Flannery

Managing Director and CEO

Graham Cubbin

Non-executive Director

Hans Mende


Vincent O’Rourke


Terence Crawford


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White Energy’s Coal Upgrading Technology

Five Production Stages

1. Coal preparation

2. Crushed coal drying

3. Solids separation

4. Briquetting

5. Cooling / conditioning

The BCB technology has been developed over 20 years, by a consortia led by the

CSIRO

Binderless Briquetting Circuit (BCB)

6

Coal Fines - A Major Environmental Liability

Coal fines represent a major environmental liability for coal producers and also carry

a significant ongoing maintenance cost

Billions of tonnes of coal fines are stored in slurry

ponds around the world.

Coal fines derived from a combination of thermal

coal and coking coal.

New arising fines continue to be generated at coal

mines around the world, due to inefficiencies in coal

processing methods.

There is a significant ongoing cost for coal

producers associated with the management of coal

fines.

Dried briquettes produced from wet coal fines can

be blended with a coal producer’s saleable coal, for

export or domestic markets.

The excavation of coal fines from a typical slurry pond at a South

African mine site

7

Application of the BCB Technology to Coal Fines

Binderless Briquetting

Circuit (BCB)

Export

Conveyor

Domestic

Thermal

Market

Power Station

Ultra Fines

Spiral Fines Coa

l M

ine

Wa

sh

Pla

nt

Reclaimed

Fines

Slu

rry p

on

d

Collect the waste &

discarded fines

Dewater and clean

the fines

Briquette and improve

fines calorific value

Blend briquetted fines

with ROM output

White Energy Value Add Environmental Liability High Value Product

Fine Coal Beneficiation

Circuit (FBC)

White Energy is able to leverage its patented and scalable technologies to

beneficiate ultra fine coals in order to create saleable product by converting a

waste product into a high value product that can enhance a mine’s revenues

8

The Coal Fines Beneficiation and Upgrading

Process

2 - Reclaiming the coal fines from ponds 1 - A coal fines slurry pond

4 - BCB Briquetting phase

5 - Upgraded coal fines briquettes

3 - Beneficiation/screening phase

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The Coal Fines Opportunity for White Energy

White Energy has identified a number of commercial opportunities associated with

the deployment of the BCB technology to the briquetting of coal fines

Fine Coal Beneficiation plant under construction at the Woestalleen, RSA site

Inspection of briquettes produced from South African coal fines

During 2015 the Company plans to commence construction of its

first commercial BCB Plant for briquetting of coal fines at recently

acquired MCC in Kentucky (U.S.). This coal is very low ash (<2%)

metallurgical coal quality.

In addition to North American coal fines opportunities, South Africa

continues to represent a significant short-term opportunity for the

recovery and processing of bituminous coal fines. This coal is all

thermal quality.

A pipeline of potential project opportunities, all centrally located

within the existing Witbank/Middleburg coalfields in South Africa,

involve some of the largest coal producers in the South African

market.

The Company conducted a 100 tonne commercial

scale burn test in South Africa on the BCB product

as part of a Detailed Feasibility Study.

The BCB technology produces an upgraded coal

briquette without the need to use a binding agent,

which is more costly, and gives the Company a

significant advantage over competition.

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The Need for Cleaner Coal

White Energy continues to focus on its core BCB coal technology business,

which is based on the upgrading of low rank, low cost sub-bituminous coals to

export grade higher value coal.

Source: Casey Research published in the mining.com 1/7/2014 article “My air is more expensive than your air”

A major portion of remaining world coal reserves are low rank.

The current and future dependence on coal will require technologies that can reduce emissions and

mitigate the negative effects of coal using high moisture, lower rank coal.

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Value Proposition – Upgrading Sub Bituminous Coals

White Energy’s commercial proposition is simple – access low cost / low rank

coals and upgrade the coal to more valuable and higher energy briquettes

Product Upgrade Historical Price Arbitrage

Feedstock coal • High moisture coal

Upgraded high energy

coal briquettes

Approx. 6,000

Kcals/kg GAR Sub-

bituminous

coal

example

Indonesia

Approx. 4,300

Kcals/kg GAR

PRB Coal

Approx. 8,400

Btu/lb GAR

Approx. 11,350

Btu/lb GAR

* GAR = Gross As Received

Target

Source: Argus/Coalindo Indonesian Coal Index Report

Historical Indonesian Coal Prices (US$/ton) 2008 - 2013

$0

$20

$40

$60

$80

$100

$120

$140

$160 6500 GAR

5500 GAR

4200 GAR

Pri

ce A

rbitra

ge

US

$/t

on

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White Energy upgraded coal results in improved energy content, lower

emissions and enhanced transportation efficiencies when compared to lower

rank feedstock coals

Higher energy content

Reduced C02

emissions per Kwh

Lower risk of

spontaneous

combustion

30% - 100% increased energy content compared to low rank feedstock coal

In comparison to low rank feedstock coal, White Energy’s upgraded coal has a

reduced CO2 and other emission profile at the point of combustion

White Energy upgraded coal has improved physical and chemical stability,

enhancing handling, storage and transportation options

Increased power output and improved heat rate, enabling higher capacity utilisation

and efficiency at point of combustion

White Energy upgraded coal mitigates exposure to stricter environmental emissions

regulations

Reduced moisture content results in an up to 30% decrease in load volumes and

associated transportation costs

Improved performance

at power stations

Enhanced transport

efficiency

Benefits of White Energy upgraded coal compared to typical

Sub-Bituminous feedstock coal

White Energy Upgraded Coal vs Sub-Bituminous Coal

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• Ash:

• Reduction in ash as a waste

product and consequent

dust particles

• Sulphur Oxide:

• Sulphur % of 0.1% is

amongst the lowest in the

world, leading to significant

reduction in sulphur dioxide

emissions

• Nitrogen Oxide:

• Lower levels of nitrogen

oxide are emitted on

combustion

Source: External third party test results

White Energy Upgraded Coal vs Bituminous Coal

Upgraded bituminous coal has an improved pollution profile as it maintains the

positive environmental attributes of the feedstock coal

Superior environmental performance as

compared to typical Australian bituminous coal

Significant reduction

in SOx and NOx

emissions

BCB Coal Aust. Bituminous Coal

Many of the high moisture coals (particularly

Indonesian) have very low ash and sulphur contents.

Therefore, when the moisture is removed the resultant

higher energy product is very attractive from an

energy, ash and sulphur viewpoint 14

Research & Development - Cessnock

The Cessnock Production Plant continues to provide a ‘centre of excellence’, used to

test coal samples sourced from coal producers around the world

The White Energy technical team

completed a number of

modifications to the Cessnock

Demonstration Plant in 2013.

The modifications are designed

to enable the Cessnock plant to

simulate a bituminous coal fines

upgrading operation, in addition

to sub-bituminous and lignite coal

testing.

A number of recent

Demonstration Plant runs on

South African and Australian

reclaimed coal fines and Pilot

Plant test work on a range of

coals has been conducted.

Results of test work completed to

date continues to show positive

results with respect to sub-

bituminous coal as well as

bituminous (thermal and coking)

coal fines.

White Energy Board Members touring the Cessnock Demonstration Plant

15

Coal Mining - South Australian Coal Limited – EL4534

South Australian Coal Limited holds the exploration rights to a large sub-bituminous

coal deposit located in Northern South Australia (EL4534)

EL4534 is located

approximately 765 kilometres

north of Adelaide and 70

kilometres south west of the

township of Coober Pedy.

The Darwin to Adelaide railway

runs through EL4534.

A conceptual mine plan and

preliminary costings have been

completed in preparation for a

detailed feasibility study, based

on the supply of Lake Phillipson

coal to the domestic power

market in South Australia.

Desktop studies have been

completed and confirmed that

the Lake Phillipson coal is

suitable for gasification using

the Lurgi process.

Core from the 2012 South Australian Coal drilling program at EL4534

16

Coal Mining - Mountainside Coal Company

Open-cut mining operations at Flag Ridge using highwall mining equipment

The acquisition of Mountainside Coal Company has provided White Energy with

control and certainty of feedstock coal supply and enables it to capture a greater

portion of the value chain by utilising the BCB technology to upgrade the resource

17

Open Cut Mining Operations At Flag Ridge

The MCC reclamation process from left to right: newly sloped areas at Flag Ridge, seeding at Jellico Creek and vegetation growth after one year at Flag Ridge

Coal Mining - Mountainside Coal Company (cont.)

White Energy intends to expand the Mountainside Coal business in a stepped

process, including the installation of a coal wash plant which was commissioned in

February 2015 and BCB plant at the site

White Energy intends to increase

production levels with a particular focus

on increasing the quantum of sales of

the low-ash sized coal product.

Low-ash sized coal product is currently

sold at an attractive premium.

Test work conducted at the Cessnock

Demonstration Plant has shown that

the fine coal remaining after screening

out the washed sized coal from

Mountainside Coal’s production, can be

processed into a stable briquette similar

to the sized coal.

These coal fines presently amount to

approximately 25% of production.

The briquetting of these coal fines using

the BCB process is expected to

increase the value of the Mountainside

Coal business.

The MCC new coal wash plant was commissioned in February 2015

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Level 9, 20 Hunter Street

Sydney, NSW 2000

Telephone: +61 2 9959 0000

Facsimile: + 61 2 9959 0099

Email: [email protected]

ABN 62 071 527 083

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mailto:[email protected]

company presentation august 2009 - white energy co

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