Disclaimer: The information in this document is provided for information purposes only by Riversdale Mining Limited. No representation or warranty is made as to the accuracy, completeness or reliability of the information. Any forward looking information in this presentation has been prepared on the basis of a number of assumptions which may prove to be incorrect. This presentation should not be relied upon as a recommendation or forecast by Riversdale Mining Limited. Riversdale Mining Limited Corporate Presentation September 2010
Transcript
Disclaimer: The information in this document is provided for information purposes only by Riversdale Mining Limited. No representation or warranty is made as to the accuracy, completeness or reliability of the information. Any forward looking information in this presentation has been prepared on the basis of a number of assumptions which may prove to be incorrect. This presentation should not be relied upon as a recommendation or forecast by Riversdale Mining Limited.
Riversdale Mining Limited
Corporate PresentationSeptember 2010
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Market Cap@ $9.49 per share
6 Sep 2010
A$2,240 million
Shares 236 million
Options 7 million
Net Cash A$ 560 million
Tata Steel 24.2 %*
Passport Capital 17.2 %
CSN 16 %
Share Register Composition
Source: Thomson Reuters, as 31 July 2010* As of 27/08/2010. Other registry information as per date above
Riversdale Corporate Profile
Corporate Information
Major Shareholders
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All Ordinaries (XAO)Riversdale Mining (RIV)
ASX: RIV(% Increase since 2 Jan 2009) Current Share Price A$9.49 (6 Sept 2010)
Riversdale Share price Performance
Transaction Multiples Suggest Riversdale is Potentially Undervalued(A$/t of coal resource) – Riversdale will produce prime hard coking coal
Recent Coal Asset Transactions
Source: RBCCM Estimates, Credit Suisse EstimatesData shown on a raw transaction multiple basis. Includes producing assets and assets producing both low quality coking coals + thermal coalUG denotes assets with 100% underground coal resources. Riversdale (EV as of 6/9/10)
Hard Coking Coal Assets
Semi-hard/Soft/Weak Coking Coal Assets
Thermal Coal Assets
Dec-
07
Jul-0
8
May
-09
Aug-
09
Nov
-09
Apr-
10
Jul-1
0
Jul-1
0
Aug-
10
Aug-
10
Aug-
10
RIVE
RSDA
LE
Tran
sact
ion
Aver
age
Valuation multiples(EV A$/t of resource)
Market Valuation of Reserve & Resources
Source: JP Morgan Estimates (12/8/10), Riversdale (EV as of 6/9/10)Data shown on a raw transaction multiple basis. Includes producing assets and assets producing low quality coking coals + thermal coal. Non-weighted global averages*Only includes companies with a minimum of 20% coking coal sales (actual or projected). RIV multiple based on Benga’s current reserve base of 502Mt
(EV A$/t of reserve)
RIVE
RSDA
LE
Glob
al A
vera
ge
RIVE
RSDA
LEGl
obal
Ave
rage
Mozambique’s Role in the World of Coal
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Global Seaborne Hard Coking Coal Market
• Heavily consolidated supply side
• Little opportunity for consumers to diversify supply sources
• Dominated by Australian exporters
• USA & Canada supply less than a third of the market
• ‘Rest of World’ producers provide minimal tonnage
India’s economy is structurally short of electricity generation capacity• Major coal-fired power plants are being
constructed with numerous sites in the feasibility stage
• Mozambique thermal coals represent an opportunity for India’s rapidly growing thermal coal market
• Mozambique coals will have a freight advantage over Australian and South African thermal coals into the west coast of India.
• Long-term supply diversification prospect
• Riversdale is well placed to supply into India’s West Coast – the country’s biggest regional market
Indian Thermal Coal Demand(Mtpa)
India’s Power Station Build: 2010 - 2020
Mozambique: An Opportunity for Indian Thermal Coal Consumers
Indian Coal Imports (RHS)
General Industry
Power Generation
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Riversdale’s Role in Coal
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Success at ZAC: Ability to Leverage Experience into Mozambique
Using ZAC operational experience in Mozambique• Exploration and Development success
achieved to extend LOM
• Operational efficiency programme at ZAC targeting step change in productivity
• Significant reserves and resources potential at ZAC providing good cash flow throughout the Mozambique development schedule
• Leverage operational experience into Mozambique with initial transfers of key technical, HR and administration personnel
Riversdale has been operating in Mozambique since 2006
• The company has developed a strong relationship with the Mozambique government
• Significant progress continues to be made across all aspects of the projects
• Key Milestones:
Completion of A$337 million Capital Raising (July 2010) Announcement of Zambeze MoU w/ WISCO (June 2010) Zambeze Resource Upgrade (May 2010) Benga Reserve & Resource Upgrade (May 2010) Announcement of FS – Benga 20Mtpa ROM (May 2010) Benga Mine Officially Opened (April 2010) Benga Mining Contractor Selected (April 2010) Benga Environmental Approval (EIS) (January 2010) Benga Power Environmental Approval (EIS) (January 2010) CHPP Supply Contract Signed (December 2009) Benga Mining Contract Approved (April 2009)
Riversdale in Mozambique
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Zambeze Project
Benga Project
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Substantial tenement holding in the Moatize Basin– The Next Major Coal Region • Tata Steel hold a 35% equity stake in Benga and 1319 tenements• All other licences are 100% held by Riverdale (Pending MoU with WISCO at Zambeze only)• Globally significant resource companies hold licences directly adjacent to Riversdale
landholdings, including Vale, CAMEC (ENRC), Nippon Steel, Jindal and ETAStar• Coking coal quality is equal to the Bowen Basin
Riversdale’s Tete Region Tenements
Joint venture with Tata Steel (RIV 65%/Tata 35%)
• 40% life of mine coking coal off-take agreement with Tata Steel
• 10% life of mine coking coal off-take agreement with WISCO (pending definitive agreement w/ WISCO)
Large, open cut mine with planned full production of 20 Mtpa ROM coal• Hard coking coal production of 6.0Mt and export
thermal coal production of 4.0Mt
Key development milestones have already been reached• Mining Lease granted for 25 years• Environmental Approval awards (Mining & Power)• Stage 1 development approved
Benga CHPP Clearing Riversdale’s Team at Tete, MozambiqueCore Yard, Project Office & Construction Camp
Benga Progress
His Excellency Armando Emilio GuebuzaBenga Hard Coking Coal Benga’s First Pit – March 2010
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Located Within the Benga Lease
• Power plant fuel to be supplied via conveyor & strategically located near future mine developments
Two Phases of Development
• Phase 1 : Up to 600 MW (existing infrastructure)
• Phase 2 : Up to 2,000 MW total
Milestones accomplished
• Framework Agreement signed
• Access to transmission line confirmed
• EIS Government Approval
• Suitable PPA for offtake required
• Discussions ongoing with potential investors
Benga Power Plant: Project Overview
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Zambeze Non-Binding MoU
Riversdale Mining has signed a MoU with WISCO and China Communications Construction Company (CCCC)
• 40% equity stake in the Zambeze Project for a cash consideration of US$800 million
• Comprehensive study of mine-to-ship logistics to enable the export of bulk tonnages of coal products from the Zambeze Project to ports for export markets
• WISCO is the 4th largest crude steel producer in the world
• CCCC brings significant barge and port technical expertise and experience
Top 5 Crude Steel Producers 2009Mtpa
Source: Citi
World-class Tier 1 HCC project
• Adjacent to the Benga Project – potential synergies
• 40% life of mine coking coal off-take agreement with WISCO (subject to definitive agreement)
Conceptual mine plans are being developed for the project• Large volume, long-life mine• Potential for larger scale development than Benga• Products to comprise hard coking coal and export
thermal coal• Potential LT target of 90 Mtpa ROM under
An Alternative, Independent Supplier of Coking Coal
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Benga Coal ResourcesThe Coal Resources quoted in this announcement are based on the Competent Person Report, Coal Resources, Benga Coal Project as at 18th May 2010, compiled by Mr Tri Yoso, who isa Member of the Australasian Institute of Mining and Metallurgy and the Resource Geologist for Riversdale Mining Limited. Tri Yoso has more than 12 years experience as a coalgeologist in the resources industry involving exploration and evaluation assignments at operating coal mines and coal exploration areas in a number of coal basins throughout theworld. With this level of experience, he is adequately qualified as a Competent Person as defined in the 2004 edition of the JORC Code. The Coal Resource estimate for the BengaLicence, (881L) Mozambique presented in this report has been carried out in accordance with the “Australasian Code for Reporting of Exploration Results, Mineral Resources and OreReserves” (2004) prepared by the Joint Ore Reserves Committee of the Australasian Institute of Mining and Metallurgy, Australian Institute of Geoscientists and Minerals Council ofAustralia. Tri Yoso consents to the inclusion in this announcement of the matters based on his information in the form and context in which it appears.
Benga Coal ReservesThe Coal Reserves quoted in this announcement are based on Report No 3517M, Benga Coal Project as at 18th May 2010, compiled under the supervision of Mr. Rob Mackenzie, who isa Member of the Australasian Institute of Mining and Metallurgy and is a full time employee of Minarco MineConsult. Rob is a mining engineer with extensive experience, working forover 30 years with major mining companies. With this level of experience, he is adequately qualified as a Competent Person as defined in the 2004 edition of the JORC Code. The CoalReserve estimate for the Benga Licence, (881L) Mozambique presented in this report has been carried out in accordance with the “Australasian Code for Reporting of ExplorationResults, Mineral Resources and Ore Reserves” (2004) prepared by the Joint Ore Reserves Committee of the Australasian Institute of Mining and Metallurgy, Australian Institute ofGeoscientists and Minerals Council of Australia. Rob Mackenzie consents to the inclusion in this announcement of the matters based on his information in the form and context inwhich it appears.
ZAC Coal Resources & ReservesInformation that relates to geology, drilling, mineralisation and Mineral Resources and Ore Reserves estimates for Zululand Anthracite Colliery (ZAC) is based on information compiledby J Liebenberg, who is a member of South African Council for Natural Scientific Professions. Mr Liebenberg has sufficient experience which is relevant to the style of mineralisationand type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person under the meaning of the JORC Code. Mr Liebenberg, anemployee of Zululand Anthracite Colliery (Pty) Limited has given his consent to the Public Reporting of these statements concerning geology, drilling and mineralisation in this format.
Benga Coal QualityThe coal quality information in this announcement has been compiled under the supervision and reviewed by Mr. Andrew Meyers, who is a Member of the Australasian Institute ofMining and Metallurgy and Director of A&B Mylec Metallurgical Consultants Pty Ltd. Andrew Meyers has more than 19 years experience in coal processing and coal quality for coalprojects and coal mines both in Australia and overseas. With this level of experience, he is adequately qualified as a Competent Person as defined in the 2004 edition of the JORC Code.Andrew Meyers consents to the inclusion in this announcement of the matters based on his information in the form and context in which it appears. Andrew Myers consents to theinclusion in this announcement of the matters based on his information in the form and context in which it appears.
Zambeze Coal ResourcesThe Coal Resources quoted in this announcement are based on the Competent Person Report, Coal Resources, Zambeze Project as at 31st May 2010, compiled by Mr Tri Yoso, who is aMember of the Australasian Institute of Mining and Metallurgy and the Resource Geologist for Riversdale Mining Limited. Tri Yoso has more than 12 years experience as a coalgeologist in the resources industry involving exploration and evaluation assignments at operating coal mines and coal exploration areas in a number of coal basins throughout theworld. With this level of experience, he is adequately qualified as a Competent Person as defined in the 2004 edition of the JORC Code. The Coal Resource estimate for the Zambezelicence, (EPL946L) Mozambique presented in this report has been carried out in accordance with the “Australasian Code for Reporting of Exploration Results, Mineral Resources andOre Reserves” (2004) prepared by the Joint Ore Reserves Committee of the Australasian Institute of Mining and Metallurgy, Australian Institute of Geoscientists and Minerals Council ofAustralia. Tri Yoso consents to the inclusion in this announcement of the matters based on his information in the form and context in which it appears.
