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Gujarat NRE Coking Coal Limited (ASX: “GNM”) INVESTOR PRESENTATION June 2012 For personal use only
Gujarat NRE Coking Coal Limited (ASX: “GNM”)INVESTOR PRESENTATION
June 2012
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Highlights
Premium Quality Mines
with Longwall Operations
Premium Quality Mines
with Longwall Operations
NRE No.1 and NRE Wongawilli produce amongst the highest quality hard coking coal in Australia with an estimated 125 Mt of JORC reserves and 652 Mt JORC resources Brownfield expansion expected to return production to historical levels of ~5 Mtpa
NRE No.1 and NRE Wongawilli produce amongst the highest quality hard coking coal in Australia with an estimated 125 Mt of JORC reserves and 652 Mt JORC resources Brownfield expansion expected to return production to historical levels of ~5 Mtpa
Independent Wood Mackenzie base case valuation of $990 million(1)
Additional value associated with $90 million recent equipment purchasesIndependent Wood Mackenzie base case valuation of $990 million(1)
Additional value associated with $90 million recent equipment purchasesValuable Asset BaseValuable Asset Base
Australia is the world’s largest exporter of coking coal and a major supplier to Japan, China, India and BrazilAustralia is the world’s largest exporter of coking coal and a major supplier to Japan, China, India and Brazil
Favorable Mine LocationFavorable Mine Location Proximity to rail and underutilized Port Kembla terminal allows for low transportation costsSydney and Wollongong area provides access to experienced workforceProximity to rail and underutilized Port Kembla terminal allows for low transportation costsSydney and Wollongong area provides access to experienced workforce
Solid Credit ProfileSolid Credit Profile Longwall expected to immediately restore EBITDA to $120 million by 3/2013Longwall expected to immediately restore EBITDA to $120 million by 3/2013
Experienced Management
and Strategic Partners
Experienced Management
and Strategic Partners
Parent company is largest independent producer of metallurgical coke in IndiaOver $650 million investment to dateJindal Steel & Power recently invested $25 million for 9% stake and signed to 10-year, 500 Ktpa off take agreement; option for additional 500 Ktpa after 3 Mtpa delivered(2)
Parent company is largest independent producer of metallurgical coke in IndiaOver $650 million investment to dateJindal Steel & Power recently invested $25 million for 9% stake and signed to 10-year, 500 Ktpa off take agreement; option for additional 500 Ktpa after 3 Mtpa delivered(2)
2
500 Ktpa off-take agreement; option for additional 500 Ktpa after 3 Mtpa delivered(2)500 Ktpa off-take agreement; option for additional 500 Ktpa after 3 Mtpa delivered(2)
(1) Valuation from Wood Mackenzie report dated March 29, 2012.(2) Subject to Australian regulatory approval.
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Highly Experienced Management Team
Established the Company in 2004; only Indian entity to own and operate coking coal mines in AustraliaHas grown Gujarat NRE Coke to largest independent producer of Met Coke in IndiaChartered Accountant with all India 1st rank and Gold Medal
Established the Company in 2004; only Indian entity to own and operate coking coal mines in AustraliaHas grown Gujarat NRE Coke to largest independent producer of Met Coke in IndiaChartered Accountant with all India 1st rank and Gold Medal
Arun Kumar Jagatramka
Executive Chairman
28+ Years of Experience
Arun Kumar Jagatramka
Executive Chairman
28+ Years of Experience
Sanjay Loyalka
Management Committee
24+ Years of Experience
Sanjay Loyalka
Management Committee
24+ Years of Experience
Former Managing Director of Aditya Birla’s Australian operations Extensive experience in mining and metals, manufacturing and logistics-based industriesChairman of the ASX-listed Shree Minerals Limited
Former Managing Director of Aditya Birla’s Australian operations Extensive experience in mining and metals, manufacturing and logistics-based industriesChairman of the ASX-listed Shree Minerals Limitedpp
P.R. Kannan
Group CFO
28+ Years of Experience
P.R. Kannan
Group CFO
28+ Years of Experience
Oversees Australian expansion, corporate affairs and finance since 2004Actively involved in the operational planning and management of NRE No. 1 and WongawilliExtensive experience in banking industry corporate finance and foreign exchange
Oversees Australian expansion, corporate affairs and finance since 2004Actively involved in the operational planning and management of NRE No. 1 and WongawilliExtensive experience in banking industry corporate finance and foreign exchange28+ Years of Experience28+ Years of Experience Extensive experience in banking industry, corporate finance and foreign exchangeExtensive experience in banking industry, corporate finance and foreign exchange
Chris HarveyCorporate Relations
Chris HarveyCorporate Relations
Joined the Company in 2006 as Mining Superintendent; former Mining EngineerFormerly with Department of Mineral Resources and Senior Environmental Officer / InspectorJoined the Company in 2006 as Mining Superintendent; former Mining EngineerFormerly with Department of Mineral Resources and Senior Environmental Officer / Inspectorp
35+ Years of Experiencep
35+ Years of Experience PhD in Mining Engineering from Wollongong University with expertise in Illawara coal mining industryPhD in Mining Engineering from Wollongong University with expertise in Illawara coal mining industry
Steve Bow
Operations Manager: NRE W illi
Steve Bow
Operations Manager: NRE W illi
Formerly held various managerial positions covering technical and operational management with BHP Billiton and its coal operations in the Illawarra regionFormerly held various managerial positions covering technical and operational management with BHP Billiton and its coal operations in the Illawarra region
Rhys BrettRhys Brett 8 years of underground coal mining with Anglo, Centennial and Xstrata 8 years of underground coal mining with Anglo, Centennial and Xstrata
Wongawilli
28+ Years of Experience
Wongawilli
28+ Years of Experience
p gFirst class mine managers ticket and qualified competent person in reserves analysis.
p gFirst class mine managers ticket and qualified competent person in reserves analysis.
3
Operations Manager: NRE No.1
8+ Years of Experience
Operations Manager: NRE No.1
8+ Years of Experience
NSW 1st Class Certificate of Competency for Underground Coal Mines and a diploma on Ventilation EngineeringNSW 1st Class Certificate of Competency for Underground Coal Mines and a diploma on Ventilation Engineering
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Introduction of Strategic Investor(US$ in millions)
Jindal Steel & Power Limited (“Jindal”) recently invested $25 million of equity at a 39% premium to current market price
( $ )
Jindal Steel and Power Business Segments
Represents an approximately 9% ownership stake
The off-take agreement allows Jindal toThe off take agreement allows Jindal to access up to 500 Ktpa over the next 10 years
Option for additional 500 Ktpa after 3 Mtpa delivered
Jindal is a ~$10 billion enterprise value, publicly traded Indian diversified industrial company
Investor Jindal Steel & Power
Steel Power Mining
Partnership with top caliber firm such as Jindal:
Diversifies our end user base; and
Ticker BSE:532286
Market Cap $7.6 billion
TEV $10.3 billionAdds significant value not only economically, but strategically for long-term value creation
LTM Revenue $3.6 billion
LTM EBITDA $1.3 billion
Company Credit Rating(1) A-
4
Source: Jindal Steel & Power website; press releases.(1) Credit rating from ICRA, an Associate of Moody’s Investors Service.
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Company OverviewCompany Overview
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Gujarat NRE Coking Coal Limited Overview($ in millions)
Gujarat NRE Coking Coal Limited (“Gujarat” or the “Company”) is an ASX-listed hard coking coal producer
($ )
New South Wales - Illawarra Region
100%-owner of two underground, high-quality, coking coal mines in New South Wales, Australia
NRE No.1 16 Kmto Port Kembla
Sydney 92.5 Kmto Port Kembla
Located in top exporting region and bordered by major coking coal mine operators
to Port Kembla
Total JORC reserves of 125 Mt and resources of 652 Mt with a valuation as determined by WM of $990 million
NRE Wongawilli 14 Km to Port Kembla
Current unwashed coal production of 1.1 Mtpa (~$45 million EBITDA) projected to return to historical levels of ~5.0 Mtpa
Over $650 million of capital invested to date
I A il 2012 l ll i i i
6
In April 2012 ,longwall mining system put into service
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Reserves and Resources Overview
Reserves and Resources Mine Contribution
P NREProven31 Mt25%
NRE Wongawilli
33 Mt27%
Probable94 Mt75%
NRE No. 1 Colliery92 Mt73%
Total Reserves125 Mt Reserves
Measured74 Mt11%
I di t d NRE No 1NREIndicated179 Mt28%Inferred
399 Mt61%
NRE No. 1 Colliery315 Mt48%
NRE Wongawilli
337 Mt52%
7652 Mt Resources Total Resources
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NRE No.1 Colliery
Brownfield mine development strategically located in Southern Coalfields of NSW
NRE No. 1 coal products known for high
2016+Development
quality
Contributes over 70% of the Company’s reserves
Coal leases cover over 64.2 sq km and include three coal seams
Bulli: Worked extensively for over 120 f ld t i A t liyears; one of oldest in Australia
Balgownie and Wongawilli: Largely untapped resources with significant potentialCurrent Longwall
O ipote t a
In FY 2012, Company largely focused on the installation and commissioning of longwall equipment
Operations
Asset Highlights LEGENDLEGENDFYE March 31
Longwall commenced production in April 2012
Targeting larger blocks which will restore
JORC Reserves 92 Mt
JORC Resources 315 Mt
YE 3/2013E Production 1.4 Mtpa
Reser e Life 30+ ears
2013
2014
2015
2016
2018
2019
2020
2021
FYE March 31
8
to ~3 Mtpa historical productionReserve Life 30+ years
Distance to Port Kembla 16 km
2017 2022
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NRE Wongawilli CollieryLocated in close proximity to NRE No.1 and situated in the Southern Coalfields of NSW
Current Longwall Operations
Coal leases cover more than 141 sq km
Commenced longwall operations in 2009 and have achieved stable production growth
2016+Development
growth
Acquired from BHP Billiton in December 2007
Company plans to return to historical peak production level of ~2 Mtpa
Initiated new access driveage in support of new longwall panels to thesupport of new longwall panels to the west and south
Targeting larger longwall blocks to maximize operational and production ASSET HIGHLIGHTSASSET HIGHLIGHTS LEGENDLEGEND
FYE M h 31p p
capability of the longwall equipment
Company expects to improve production and reduce operating costs over time
JORC Reserves 33 Mt
JORC Resources 337 Mt
YE 3/2013E Production 1.1 Mtpa
JORC Reserves 33 Mt
JORC Resources 337 Mt
YE 3/2013E Production 1.1 Mtpa
2013
2014
2015
2016
2018
2019
2020
2021
FYE March 31
9
over timeReserve Life 30+ years
Distance to Port Kembla 14 km
Reserve Life 30+ years
Distance to Port Kembla 14 km
2017 2022
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Low Cost Transportation
Port Kembla Coal Terminal (“PKCT”) provides significant cost savings through reduced transportation costs
Located within 16 Km of NRE No. 1 and NRE Wongawilli
Provides excellent access to road and rail
PKCT is currently not operating at full capacity
Results in low demurrage charges and reduced overall transportation costs
Offers direct port access and minimal delays in loading and dispatch of cargo
Unwashed coal from NRE No 1 is transportedUnwashed coal from NRE No. 1 is transported via truck haulage to PKCT
Proven ability to transport up to 3 Mtpa
NRE W illi i t t d i i t ilNRE Wongawilli is transported via private rail from the mine site to PKCT
Historically up to 2 Mtpa has been transported via existing infrastructure
10Source: Port Kembla Port Corporation.
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One of the Hardest Coking Coals
NRE coking coal has superior qualities relative to most Australian coking coal productsIllawarra region, where the Company’s mines are located, has amongst the highest quality coal in the worldOnly accessible to limited group of major operators – BHP Billiton, Xstrata, Peabody, Gujarat
SpecBHP Billiton
Gonnyella CoalBHP Billiton
Peak Downs CoalXstrata Oaky Creek Coal
GNM Coal
Ash 8 8% 10 4% 9 3% 9 5%Ash 8.8% 10.4% 9.3% 9.5%Volatile Matter 23.2% 20.3% 26.7% 22.0%Sulfur 0.52% 0.55% 0.74% 0.50%Phosphorus 0.02% 0.01% 0.06% 0.01%CSN 8.50 8.50 9.00 9.00MMR 1.18% 1.45% 1.16% 1.24%Fluidity (ddpm) 1,032 573 9,000 4,000
Quality LegendBetter
AAverageLower
11Source: Typical specifications as per analysis certificate of washed coal.
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Global Coking Coal Demand
243
300
Demand for coking coal is driven by worldwide steel production which is expected to remain robust for the foreseeable future
Seaborne Hard Coking Coal
139161
182 191213
243
150
200
250 68% of global steel production relies directly on coal inputs
(Mtp
a)
0
50
100 Australia is the world’s largest exporter of hard coking coal and a major supplier to China and India
Limited quantities of hard coking coal in other countries drive Australia coal exports
143160
02009 2010 2011 2012E 2015E 2020E
p
China, Japan, India and South Korea, four of the world’s largest steel producers represent ~75% of
Seaborne Semi-Soft and PCI
88102 108
122
143
80
100
120
140world s largest steel producers, represent 75% of coking coal demand
Driven primarily by construction and automotive industriesMany of these countries are experiencing rapidM
tpa)
67
20
40
60
80 Many of these countries are experiencing rapid infrastructure growth
(M
12
02009 2010 2011 2012E 2015E 2020E
Source: AME, RTCA Analysis, Merlin Trade and Consultancy Ltd
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Growth StrategyGrowth Strategy
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Growth Strategy
Implement longwall operations at NRE No 1Implement longwall operations at NRE No.1
Sustain modest growth at Wongawilli through existing longwall operations
Increase production and cash flow through focus on longwall operations
14
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NRE No. 1 Longwall Operations Underway
onLongwall Ops. Significantly Increases Production
all i
n O
pera
tio
114 197125,000
150,000 Continuous mining Longwall mining(1)
nize
d Lo
ngw
a114,197
75,000
100,000
ons
per m
onth
)
inin
g M
echa
n
17,2136,854 3,898
23,71425,000
50,000
(To
Th i l t ti f th l llTh i l t ti f th l ll milli
on J
oy M
i,0
Jan-12 Feb-12 Mar-12 Apr-12 May-12
The implementation of the longwall
mining at NRE No.1 has significantly
increased production as expected
The implementation of the longwall
mining at NRE No.1 has significantly
increased production as expected$9
0 m
15(1) Longwall mining operations commenced April 2012.
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Sustain Modest Growth of Wongawilli($ in millions)
1 2
1.5
The Company acquired NRE Wongawilli from BHP Billiton in December 2007
E i d bl h il FY 2012
Production Profile (Wongawilli)
($ )
0.6
1.1
0.8
1.11.2
1.0
(Mtp
a)
Experienced stable growth until FY 2012
The mining of small remnant longwall blocks left by BHP Billiton led to operational and geological constraints and restricted
d ti
0.0
0.5
3/2010 3/2011 3/2012 3/2013 3/2014
production
Additionally, the size of the blocks resulted in the frequent relocation of longwall equipment and delayed production
3/2010 3/2011 3/2012 3/2013 3/2014
The Company expects full production and ~2 Mtpa by 3/2016
Long-term strategy will focus on the development
Revenue (Wongawilli)$300.0 Long term strategy will focus on the development
of previously unutilized areas
A new set of underground roadways will be developed
$187.0 $158.4
$172.8
$150 0
$200.0
$250.0
Company will focus on mining larger longwall blocks
Management believes it will eliminate frequent relocation of longwall equipment
$102.0 $115.2
$
$50.0
$100.0
$150.0
16
frequent relocation of longwall equipment$-3/2010 3/2011 3/2012 3/2013 3/2014
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Increased Production Through Mine Development($ in millions)
Historically capital expenditures result in incremental EBITDA 2-3 years from the investment date
($ )
Capital Expenditures
NRE No.1 3/2012Plant & Equipment:
Over $250 million in capital expenditures during FY 2012
Approximately $100 million incremental EBITDA expected by 3/2014
q pPower Supply $40Coal Handling/Infrastructure/RV 24Conveyor and Services 20Support Equipment 20
The Company intends to invest in upgrades to its mines and port infrastructure
Electricals/Fans 8Longwall Equipment 1
Total NRE No. 1 Plant & Equipment $113Add: Mining Leases 35Add: Civil Drifts and Drivages 20 mines and port infrastructure
Specifically will focus on the development of the Wongawilli seam at both mines
Add: Civil - Drifts and Drivages 20Add: Land and Building 15
Total NRE No. 1 Capex $183
Wongawilli
These ongoing upgrades will largely be funded with internal cash flow
The Company’s goal is to increase production to
gPlant & Equipment:
Civils - Drifts and Drivages $10Power Supply 9Conveyor and Services 5
~5 Mtpa by 3/2016Coal Handling/Infrastructure 5Longwall Equipment/Refurbishment 3Other 6
Total Wongawilli Capex $38
17
Other Capex $31
Total 3/2012 Capex $252
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Summary of Growth Strategy($ in millions)
$144 $144 $150
($ )
$43
$101 $100
$125
$56 $75
$45
$25
$50
$-FYE 3/2012 Implement Longwall at No. 1 Modest Wongawilli Growth FYE 3/2014
The ~$100 million of incremental EBITDA will be driven by the continued
implementation of the longwall equipment at No.1 and stable Wongawilli
The ~$100 million of incremental EBITDA will be driven by the continued
implementation of the longwall equipment at No.1 and stable Wongawilli
18
implementation of the longwall equipment at No.1 and stable Wongawilli
growth
implementation of the longwall equipment at No.1 and stable Wongawilli
growth
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Financial OverviewFinancial Overview
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Financial Summary ($ in millions)
$160 0
$200.0 $422.4
$500.0
Revenue
($ )
EBITDA
$82.9
$120.2
$144.0
$80.0
$120.0
$160.0
$227.4 $184.6
$334.8
$200 0
$300.0
$400.0
$25.9 $44.9
$-
$40.0
$80.0
3/2010 3/2011 3/2012 3/2013 3/2014
$139.4
$-
$100.0
$200.0
3/2010 3/2011 3/2012 3/2013 3/2014 3/2010 3/2011 3/2012 3/2013 3/20143/2010 3/2011 3/2012 3/2013 3/2014
$300.04 0
CapexProduction
Margin 19% 36% 24% 37% 34%
$252.0
$200.0
$300.0
2.5 2.9 3.0
4.0
a)
$123.8 $128.2 $100.0 $108.0
$100.0 1.1 1.5
1.1 1.0
2.0
(Mtp
a
20
$-3/2010 3/2011 3/2012 3/2013 3/2014
0.0 3/2010 3/2011 3/2012 3/2013 3/2014
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AppendixAppendix
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Valuation by Wood Mackenzie(US$ in millions)
Wood Mackenzie (“WM”) was retained by the Company to provide a valuation of the Company’s operations
The resulting estimate of value represents WM’s view based on publicly available information
( $ )
The resulting estimate of value represents WM s view, based on publicly available information
WM considered two scenarios, using multiple valuation methodologies including NPV analysis and comparable recent transactions
S i #1 B d t t i hi h NRE N 1 d NRE W illi t d ithi G j tScenario #1: Based on status quo in which NRE No.1 and NRE Wongawilli are operated within Gujarat NRE Coke’s vertically integrated modelScenario #2: Fair market value based on what a bidder, intending to enhance the quality of the coal for the seaborne market, might be expected to pay for the stand-alone assets
(US$ in millions) Vertically Integrated Assets Fair Market Value
Base Case $990 $938
The resulting valuation shows an initial range under base case assumptions(1) of US$938 to
Base Case $990 $938
g g pUS$990 million
22(1) In developing the valuation, WM used as inputs its own assumptions for production rates, costs (opex & capex), mine life, discount rate, price and carbon tax impact (refer to next slide)
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Valuation by Wood Mackenzie (continued)
Wood Mackenzie has used several key assumptions in developing its valuation based on publicly available information
Vertically Integrated Assets Assumptions Fair Market Value Assumptions
NRE No.1 NRE Wongawilli
NRE No.1 NRE Wongawilli
Discount Rate 10% 10% 10% 10%
Peak Production 2.7 Mtpa 2.7 Mtpa 2.7 Mtpa 2.7 Mtpa
Modeled Production 20 years 10 years 20 years 10 yearsy y y y
Priceline 0.65*HCC 0.55*HCC 1.00*HCC 0.97*HCC
Cost Ex Carbon at Peak Production (Real US$/t)
63.85 57.66 65.77 59.39
Wash Plant Capex N/A N/A US$71M US$76.4M
Yield N/A N/A 66% 66%
Coking Coal/Thermal Split N/A N/A 90:10 90:10g pCarbon Emissions (tCO2e/tROM)
0.319 0.319 0.319 0.319
Government Assistance 80% of carbon cost above 0.1t/t, capped at 2008/9 levels, for 6 yrs
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Reserves & Resources – NRE No.1 & Wongawilli
The two mines collectively have JORC reserves of ~125 Mt and resources of over 650 Mt with an independent Company valuation of $938 - $990 million
Resources (Mt) Reserves (Mt)Seam Measured Indicated Inferred Total Proven Probable TotalBulli 12 0 31 2 13 3 56 5 3 2 26 2 29 4
NRE No.1 Colliery
Bulli 12.0 31.2 13.3 56.5 3.2 26.2 29.4
Balgownie — 34.1 41.5 75.6 — — —
Wongawilli 13.5 62.2 107.1 182.8 11.7 50.9 62.6
Total 25.5 127.5 161.9 314.9 14.9 77.1 92.0
NRE Wongawilli CollieryResources (Mt) Reserves (Mt)Resources (Mt) Reserves (Mt)
Seam Measured Indicated Inferred Total Proven Probable TotalBulli — 8.0 28.0 36.0 — 5.4 5.4
Wongawilli 48.0 44.0 106.0 198.0 16.5 11.5 28.0
Tongarra — — 103.0 103.0 — — —
Total 48.0 52 237.0 337.0 16.5 16.9 33.4
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Disclaimer & Important NoticeFORWARD LOOKING STATEMENTS AND OTHER MATTERS
UNLESS OTHERWISE NOTED, THE FORECASTED INDUSTRY AND MARKET DATA CONTAINED IN THE ASSUMPTIONS FOR THE PROJECTIONS ARE BASED UPON MANAGEMENT ESTIMATES AND INDUSTRY AND MARKET PUBLICATIONS AND SURVEYS. THE INFORMATION FROM INDUSTRY AND MARKET PUBLICATIONS HAS BEEN OBTAINED FROM SOURCES BELIEVED TO BE RELIABLE, BUT THERE CAN BE NO ASSURANCE AS TO THE ACCURACY OR COMPLETENESS OF THE INCLUDED INFORMATION. GUJARAT NRE COKING COAL LTD (“GNM”) HAS NOT INDEPENDENTLY VERIFIED ANY OF THE DATA FROM THIRD-PARTY SOURCES, NOR HAS GNM ASCERTAINED THE UNDERLYING ECONOMIC ASSUMPTIONS RELIED UPON THEREINASCERTAINED THE UNDERLYING ECONOMIC ASSUMPTIONS RELIED UPON THEREIN.
THE INFORMATION AND OPINIONS SUPPLIED BY WOOD MACKENZIE (AUSTRALIA) PTY LIMITED, DOES NOT INCLUDE, NOR SHALL BE CONSTRUED AS INCLUDING, ADVICE, GUIDANCE OR RECOMMENDATIONS FROM WOOD MACKENZIE TO TAKE, OR NOT TO TAKE, ANY ACTIONS OR DECISIONS IN RELATION TO ANY MATTER, INCLUDING WITHOUT LIMITATION RELATING TO INVESTMENTS OR THE PURCHASE OR SALE OF ANY SECURITIES, SHARES OR OTHER ASSETS OF ANY KIND. SHOULD YOU TAKE SUCH ACTION OR DECISION BASED ON SUCH INFORMATION OR OPINION, YOU DO SO ENTIRELY AT YOUR OWN RISK AND WOOD MACKENZIE SHALL HAVE NO LIABILITY WHATSOEVER FOR ANY LOSS, DAMAGE, COSTS OR EXPENSES INCURRED OR SUFFERED BY YOU AS A RESULT. FURTHER, WOOD MACKENZIE REPRESENTS THAT ALTHOUGH IT HAS USED REASONABLE ENDEAVOURS TO OBTAIN RELEVANT FACTUAL INFORMATION WHOLLY FROM PUBLIC SOURCES DEEMED BY IT, IN ITS DISCRETION, TO BE RELIABLE AT THE TIME THE INFORMATION WAS OBTAINED, IT MAKES NO WARRANTIES OR REPRESENTATIONS ABOUT THE ACCURACY OR COMPLETENESS OF SUCH INFORMATION. ALSO, ALTHOUGH WOOD MACKENZIE REPRESENTS THAT IT HAS USED REASONABLE SKILL AND CARE IN INTERPRETING SUCH FACTUAL INFORMATION, IT MAKES NO WARRANTIES OR REPRESENTATIONS ABOUT THE ACCURACY OR COMPLETENESS OF SUCH INTERPRETATION.
THESE MATERIALS ARE BEING SUPPLIED TO YOU SOLELY FOR YOUR INFORMATION AND FOR USE AT THE PRESENTATION. THIS PRESENTATION AND THESE MATERIALS MAY NOT BE REPRODUCED, REDISTRIBUTED OR PASSED ON, DIRECTLY OR INDIRECTLY, TO ANY OTHER PERSON OR PUBLISHED, IN WHOLE OR IN PART, BY ANY MEDIUM OR FOR ANY PURPOSEBY ANY MEDIUM OR FOR ANY PURPOSE.
THIS PRESENTATION IS NOT INTENDED TO CONSTITUTE AN OFFER TO SELL OR THE SOLICITATION OF AN OFFER TO BUY ANY SECURITIES IN ANY JURISDICTION. NO REPRESENTATION, WARRANTY OR UNDERTAKING (EXPRESSED OR IMPLIED) IS MADE IN RELATION TO THIS PRESENTATION. THE PRESENTATION CONTAINS FORWARD LOOKING STATEMENTS WHICH INVOLVE RISKS AND UNCERTAINTIES AND ACTUAL RESULTS AND DEVELOPMENTS MAY DIFFER MATERIALLY FROM THOSE EXPRESSED OR IMPLIED HEREIN DEPENDING ON A VARIETY OF FACTORS. NO RESPONSIBILITY IS TAKEN OR ACCEPTED BY GNM AND/OR ANY OF ITS PARENTS, SUBSIDIARIES, AFFILIATES AND THEIR RESPECTIVE OFFICERS, DIRECTORS, EMPLOYEES, AGENTS AND ASSIGNS FOR THE ADEQUACY, COMPLETENESS OR ACCURACY OF THE PRESENTATION OR THE ASSUMPTIONS ON WHICH IT IS BASED AND ALL LIABILITY IS HEREBY EXPRESSLY EXCLUDED AND DENIED. ANYONE USING THE PRESENTATION DOES SO AT THEIR OWN RISK AND NO RESPONSIBILITY IS ACCEPTED FOR ANY LOSSES WHICH MAY RESULT FROM SUCH USE DIRECTLY OR INDIRECTLY. RECIPIENTS SHOULD CARRY OUT THEIR OWN DUE DILIGENCE IN CONNECTION WITH THE ASSUMPTIONS CONTAINED HEREIN.
WE HAVE MADE CERTAIN ASSUMPTIONS WITH RESPECT TO ECONOMIC CONDITIONS, THE LEVEL OF MARKET DEMAND FOR OUR PRODUCT AND SEVERAL OTHER MATERIAL CONTINGENCIES AND MATTERS WHICH ARE NOT WITHIN OUR CONTROL AND THE OUTCOME OF WHICH CANNOT BE PREDICTED BY US WITH ANY EXPECTATION OF ACCURACY. OUR ASSUMPTIONS ARE INHERENTLY IMPRECISE, SPECULATIVE , IN SOME CASES, AND SUBJECT TO UNCERTAINITIES AND ACTUAL RESULTS WILL DEFER, PERHAPS MATERIALLY,FROM THOSE PROJECTED. THE FORGOING PROJECTIONS ARE BASED IN LARGE PARTS UPON US RECEIVING AND MAINTAINING A CERTAIN LEVEL OF COAL PURCHASE FROM OUR PARENT GUJARAT NRE COKE LIMITED THERE CAN BE NO ASSURANCES THAT OUR PARENT WILLMAINTAINING A CERTAIN LEVEL OF COAL PURCHASE FROM OUR PARENT-GUJARAT NRE COKE LIMITED. THERE CAN BE NO ASSURANCES THAT OUR PARENT WILL PURCHASE COAL FROM US AT PROJECTED VOLUMES THROUGH FISCAL YEARS 2013 & 2014. THE FORGOING PROJECTIONS ARE BASED UPON OUR ABILITY TO MAINTAIN CONSISTENT MINING OPERATIONS AT BOTH OF OUR MINES THROUGHOUT FISCAL YEARS 2013 & 2014. THERE CAN BE NO ASSURANCE THAT WE WILL NOT ENCOUNTER ADVERSE GEOLOGICAL CONDITIONS OR OTHER OPERATING CONDITIONS WHICH IMPAIR OUR ABILITY TO OBTAIN THE PROJECTED PRODUCTION LEVELS.
IT IS POSSIBLE THAT ASSUMED EVENTS, PERFORMANCE OR CIRCUMSATNCES WILL NOT MATERIALIZE, THAT ANTICIPATED EVENTS MAY NOT OCCUR OR MAY HAVE DIFFERENT RESULTS THAN PROJECTED OR THAT AN ANTICIPATED EVENTS MAY OCCUR TO CAUSE FUTURE REVENUE OPERATING EXPENSES AND NET CASH FLOWDIFFERENT RESULTS THAN PROJECTED OR THAT AN ANTICIPATED EVENTS MAY OCCUR TO CAUSE FUTURE REVENUE, OPERATING EXPENSES AND NET CASH FLOW TO VARY MATERIALLY FROM THE PROJECTIONS.
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Competent Person Statement
Competent Person StatementThe information in this Presentation that relates to Exploration Results, Mineral Resources or Ore Reserves isThe information in this Presentation that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by, in relation to the Coal Resources for both NRE Wongawilli Colliery and NRE No.1 Mine, by Mr. Barry Clark an employee of Gujarat NRE Coking Coal Ltd, and in relation to the Coal Reserves for both NRE Wongawilli Colliery and NRE No.1 Mine, by Mr. Kris Markowski, also an employee of Gujarat NRE Coking Coal Ltd.
Mr. Clark is a Member of The Australasian Institute of Mining and Metallurgy or the Australian Institute of Geoscientists. Mr. Clark has sufficient experience which is relevant to the style of mineralization 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 Reporting of Exploration Results, Mineral Resourcesdefined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr. Clark consents to the inclusion in the Presentation of the matters based on his information in the form and context in which it appears.
Mr. Markowski is a Member of The Australasian Institute of Mining and Metallurgy or the Australian Institute of Geoscientists. Mr. Markowski has sufficient experience which is relevant to the style of mineralization 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 Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr. Markowski consents to the inclusion in the Presentation of the matters based on his information in the form and context in which it appearsinformation in the form and context in which it appears.
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