coalspur corp presentationfinal2

8/12/2019 Coalspur Corp PresentationFinal2

1/22

An Emerging Canadian CoalProducer

June 2013


2/22

Investment highlights

TSX CPT | ASX CPL2

World ClassAssets

Enviable Locationand Infrastructure

Solution

Ready toCommence

Construction

Large, long-life, high-quality resource across multiple properties Vista Phase 1 development and execution plans finalised 6 Mtpa capacity for C$458M, a capital efficiency of C$76 per clean tonne Cash cost - C$59.5/t FOB over first five years of production First production expected in mid 2015

Located in Alberta, Canada - one of the best global mining jurisdictions Established local communities supportive of mining industry Port and rail arrangements secured with Ridley Terminals and CN Rail Strategically positioned as an alternate supplier of thermal coal to Asia

Regulatory approvals for Vista Phase 1 expected shortly Key EPC terms de-risk the capital budget and development schedule Majority of development capital to achieve first production secured Highly credentialed, proven management team


3/22

Consistent delivery of key milestones

TSX CPT | ASX CPL3

A

Regulatory approvals

Commence construction

Key terms with EPC ContractorJune 2013

Definitive rail agreementMarch 2013

President/CEO appointedJune 2012

Complete Vista BFSJan 2012

Port capacityMarch 2012

Regulatory filedMay 2012

Acquire Vista Extension leases April 2012

VP, Operations and COOFeb 2013

Production

2012 2013 2015

EPC contract executed

2014

Mining contract finalised

Project Development

Complete senior debt facilityJuly 2013

Secure full funding


4/22

Proven management team

TSX CPT | ASX CPL4

Gill WincklerPresident and CEO

Executive with 15 years in senior roles at BHP Billiton including ChiefDevelopment Officer of the Energy Coal division

Colin GilliganCOO

24+ years of mining and project development experience at senior levels Responsible for the development and commissioning of Vista

Jay BellActing CFO

20+ years of financial experience with public and private companies Responsible for financial management of Coalspur

Richard TremblayOperations

22+ years in open pit coal mining, including 6 years as GM at Fording River Responsible for Health and Safety and bringing Vista into operation

Wayne DrierStrategy and Development

15+ years in business development and commercial roles Responsible for corporate finance and marketing activities

Dave MontpetitExternal Affairs & Logistics

25+ years of marketing and logistics experience

Responsible for communications and rail and port logistics

Jonathon McCarthyProject Manager

10+ years of open pit mining and project development experience Responsible for the coordination of all site activities to construct Vista

Kim HumphreysHR and Administration

15+ years in leadership and human resources roles Responsible for human resource management and employee relations


5/22

World class assets and infrastructure

~ 1.7 Bt of Measured and Indicated resource Vista project

o Phase 1 ready for construction

6 Mtpa capacity Capital efficient, low operating costs

Construction anticipated H2 2013o Phase 2 expands project to 12 Mtpa

Upside from other properties Attractive location in Alberta, Canada

o Favourable global mining jurisdiction

o Highly supportive communities Infrastructure agreements in place

o Ridley Terminals: Deepwater portoperating 365 days per year

o CN: highly efficient rail carrier

TSX CPT | ASX CPL5


6/22

Vista Phase 1 Development plan finalised

6 Mtpa clean coal capacity operationo Constructed as one discrete projecto Consistent with Vista Phase 1 regulatory

application for 5 Mtpa production

o Development capital of C$458M, assuminguse of mining contractors

o First coal expected in mid 2015

Taggart Global selected as EPC contractoro Key terms agreed

o Will construct and commission the CHPP,conveyors and load-out infrastructure

o Significant North American experience withthermal coal project development

o Lump sum turnkey arrangement with fixedcost and commissioning date

o Penalties and incentives

Coalspur Owners team to manage remainingancillary packages

TSX CPT | ASX CPL6

Vista Production Capacity

3.0

6.0 6.0 6.0

6.0

0.0

2.0

4.0

6.0

8.0

10.0

12.0

2015 2016 2017 2018

M t p a

Phase 1 Phase 2


7/22

Vista Phase 1 6 Mtpa capacity withexpansion potential

Certainty of designo Detailed engineering and plans for CHPP and infrastructure now finalised

o Front end engineering design exercise strengthened the designs and project confidence

o Process design underpins the production of a premium product

o Operating flexibility

Designed for expansion

TSX CPT | ASX CPL7

o Key components (overlandconveyor, load out) designedfor 12 Mtpa

o Modular ROM, materialshandling and CPP with initialcapacity of 6 Mtpa and witheasy expansion to 12 Mtpa


8/22

Vista Phase 1 Capital costs

High level of confidence in capitalo Lump sum, fixed price EPC terms secures

~50% of capital (US$221M)

o Ancillary package costs based on tender pricesfrom preferred bidders

Best quartile capital efficiencyo 6 Mtpa capacity for C$458M capitalo Capital efficiency of C$76 / tonne

Savings of C$197M from previous plan due to: o Confidence in engineering, costs and EPC

terms enables lower contingency

o Lower construction input costs (steel pricesdown ~10% year on year)

o Market slowdown ensured competitiveprocesses with potential contractors

Expansion to 12 Mtpa leverages off 6 Mtpa facility -anticipated order of magnitude capital of C$250M

TSX CPT | ASX CPL8

Capital Cost Summary

Item (C$M)EPC 235.7Site Preparation 84.6Rail Siding 29.3Infrastructure and Utilities 54.6Owners Costs 26.4Equipment 7.0Contingency 20.4Total 458.0

Mining Equipment (1) 247.0(1) Mining equipment to be provided by mining contractor


9/22

Vista Phase 1 Low operating costs

Low costs due to attractive geology, proximity to rail siding and efficient design Development plan to result in lower life-of-mine operating costs, increased scalability and enhanced

opportunities for selective mining

FOB cash costs of C$59.5/t expected in first five years of productiono Mining cost assumptions include capital allowance and margin for mining contractor

Direct mining costs to be finalised with definitive mine plan and mining contracto Logistics costs, constituting approximately 50% of operating costs, are locked in

TSX CPT | ASX CPL9

Expected FOB Cash Costs - 6 Mtpa (C$/t)

Years 1 5 Years 1 10

Direct Mining Costs 20.7 25.3Processing Costs 5.5 5.1

Mine Site G&A 2.1 1.9Mine Gate Cash Costs 28.3 32.4Rail & Port (1) 31.2 31.4Average Cash Operating Costs 59.5 63.8

(1) Rail & port costs in 6 Mtpa scenario do not attract volume discounts which are received beyond 6 Mtpa and 9 Mtpa shipped


10/22

Vista Phase 1 - Development schedule

Regulatory approvals for main site and rail siding anticipated in next few months Flexibility in schedule ensures first coal in mid 2015 so long as construction commences before2014

TSX CPT | ASX CPL10

Expected timings 2013 2014 2015 2016 2017 2018Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Phase 1 (6 Mtpa Capacity)Phase 1 Regulatory ProcessDetailed Engineering (IFC)Regulatory ApprovalSite ClearingOffshore FabricationCivil EarthworksMechanical InstallationRail Siding ConstructionCommissioningFirst CoalProduction

TSX CPT | ASX CPL10


11/22

How does Vista compare?

Favourably positioned compared to brownfield and greenfield thermal coal developments due togeology and efficient mine design

Bottom quartile capital efficiencyo At 6 Mtpa Vista is extremely capital efficient at C$76 per tonne capacity

o Majority of peer group ranges from C$100 to C$200 per tonne of capacity

Bottom half of cash cost curve based on management estimateso Vista expected to achieve FOB cash costs of C$59.5/t in first five years of production

TSX CPT | ASX CPL11

Notes1. All numbers in real US$ terms2. Vista capex assumes US$:C$ parity

Notes1. All numbers in real US$ terms2. Vista cash cost assumes US$:C$ parity and is shown as firstfive year average

0

20

40

60

80

100

0 10 20 30 40 50 60 70 80 90 100110 120130140 L O M

A v e r a g e

T o

t a l C a s

h C o s

t

( U S $ / t C l e a n

C o a

l )

Mtpa Production from New Projects

FOB Cash Costs (1,2)

Indonesia Vista (6Mtpa) South Africa Australia Colombia

0

50

100

150

200

250

300

0 10 20 30 40 50 60 70 80 90 100 110 120 130 140 U S $ / t o n n e c

l e a n c o a

l c a p a c

i t y

Mtpa Production from New Projects

Capital Intensity (1,2)

Indonesia Australia Vista (6Mtpa) Colombia South Africa


12/22

Vista Phase 1 Indicative DCF valuations

Phase 1 capital and operating cost estimates expected to provide substantial shareholder value Phase 2 expansion to 12 Mtpa expected to generate further shareholder value

o Construction in 2016 2017 with capacity installed for 2018

o Development capital expected to be substantially funded through free cash flow

TSX CPT | ASX CPL12

Indicative Valuation Summaries - 6 Mtpa

Price ScenarioWood Mackenzie -June 2013

US$95 Newcastle

Average realised price C$111/t C$89/tFOB cash costs (years 1 -10) C$64/tLOM FOB cash costs (30 years) C$71/tDevelopment capital C$458M

LOM average sustaining capital C$6MLOM average after tax free cash flow C$158M C$71MNPV @ 8% - 10% (post-tax, real) C$602M - C$874M C$300M - C$418MCommon shares outstanding 639.7MNPV / common share outstanding C$0.94 - C$1.37 C$0.47 - C$0.65


13/22

Regulatory update and 12 Mtpa expansion

Regulatory approvals for Vista Phase 1o In final stages of the regulatory approval process for Vista Phase 1

o Positive decision already received regarding Environmental Impact Assessment

o Final decisions are expected in the next few months regarding the following :

The adequacy of Coalspurs First Nations consultation

The technical completeness of the Vista Phase 1 submission The standing of filers of statements of concern and statements of objection

Final approval for construction of the rail siding

Vista Phase 2o Base line environmental work is currently underway

o Planning and regulatory submissions will proceed once Vista Phase 1 approved

o Decision to proceed to Phase 2 in 2016 after receive regulatory approvals and evaluate thethermal coal market environment

TSX CPT | ASX CPL13


14/22

Vista Phase 1 Funding

The majority of the capital required to reach 6 Mtpa has been arrangedo Senior debt facility up to US$350M secured with EIG Global Energy Partners

o Draw down of US$157M permitted prior to full funding provides a 10 month window

Further capital of C$110M required to fully fund development Process to secure strategic investors and / or marketing off-take

o Revised development plan and certainty provides strong story for investmento Commencing discussions with interested Japanese power utilities for potential off-take

TSX CPT | ASX CPL14

$0

$100

$200$300

$400

$500

0 6 12 18 24 30

C $ m

i l l i o n

Month of construction

Cumulative Vista Phase 1 Development Capital

Funding Balance C$110M

Initial Drawdown on EIG Facility US$157M

Balance of EIG Facility US$193M


15/22

A new era for Coalspur

Finalised Vista Phase 1 development plan positions Coalspur for successo Project is competitive on all fronts

Top quartile capital efficiency at C$76 per tonne capacity (C$458M for 6 Mtpa)

Bottom half of cash cost curve at C$59.5/t FOB

Easily expanded to 12 Mtpa for a mine life of ~30 years (on current reserve base)

o Strong contract and execution strategy Key terms with Taggart ensure capital and schedule to first production de-risked

Early performance of CHPP ensured

Ancillary packages manageable

Strong management team completely focused on delivery over the next 18 - 24 monthso Work with regulators to secure final approvals

o Construction to begin shortly after regulatory approvals received

o Close management of EPC and other contractors pre and during construction

o Finalise funding arrangements for balance of C$110M for development capital

TSX CPT | ASX CPL15


16/22

Forward looking statements

This presentation contains forward-looking statements concerning Coalspur, including statements regarding Coalspurs plans for its mineralprojects, development plans and timing, development and operating costs, production, regulatory approvals, exploration and developmentactivities, and other matters. These statements relate to analyses and other information that is based on forecasts of future results, estimates ofamounts not yet determinable and assumptions of management. Actual results could differ materially from the conclusions, forecasts andprojections contained in these forward-looking statements.

Statements concerning Mineral Resource Estimates may also be deemed to constitute forward -looking statements to the extent that theyinvolve estimates of the mineralization that will be encountered if a given property is developed. Any statements that express or involvediscussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often,but not always, using words or phrases such as expects, is expected, anticipates, plans, projects, estimates, assumes, intends, strategy, goals, objectives, potential or variations thereof or stating that certain actions, events or results may, could, would, might or will be taken, occur or be achieved, or the negative of any of these terms and similar expressions) are not statements of historical fact and

may be forward-looking statements. Forward-looking statements are subject to a variety of known and unknown risks, uncertainties and otherfactors that could cause actual events or results to materially differ from those reflected in the forward-looking statements, including thosereferred to in the Companys Annual Information under the heading Description of the Business - Risk Factors, and elsewhere.

Coalspurs forward-looking statements are based on the beliefs, expectations and opinions of management as of the date hereof and whichCoalspur believes are reasonable in the circumstances, but no assurance can be given that these expectations will prove to be correct. Inmaking the forward-looking statements the Company has applied several material assumptions which may prove to be incorrect, including, butnot limited to: (1) that all required third party approvals will be obtained for the development, construction and production of its properties; (2)that additional financing will be available on reasonable terms; (3) there being no significant disruptions affecting operations, whether due tolabour disruptions, supply disruptions, power disruptions, damage to equipment or otherwise; (4) permitting, development and expansionproceeding on a basis consistent with the Companys current expectations; (5) currency exchange rates being approximately consistent withcurrent levels; (6) certain price assumptions for coal; (7) production forecasts meeting expectations; (8) the accuracy of the Companys currentmineral resource and reserve estimates; (9) labour and materials costs increasing on a basis consistent with the Companys currentexpectations; and (10) assumptions made and judgments used in engineering and geological interpretation.

Coalspur disclaims any intention or obligation to update or revise forward-looking statements if circumstances or managements beliefs,expectations or opinions should change, except as required by law. For the reasons set forth above, undue reliance should not be placed onforward-looking statements.

TSX CPT | ASX CPL16


17/22

Regulatory disclosures

Regulatory DisclosuresFor further information regarding Vista and Vista Extension, including a description of Coalspurs quality assurance program, quality controlmeasures, the geology, samples collected and testing procedures in respect of the projects, please refer to the technical report titled CoalspurMines Limited: Updated Resource Estimate for the Vista Coal Project dated September 12, 2012. For further information regard ing Vista South,including a description of Coalspurs quality assurance program, quality control measures, the geology, samples collected and testingprocedures in respect of the project, please refer to the technical report titled Resource Estimate for the Vista South Coal Pr operty dated June25, 2012. The technical reports are compliant with National Instrument 43-101 - Standards of Disclosure for Mineral Projects (NI 43 -101) andthe 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves' ("JORC Code") and are available for reviewon SEDAR at sedar.com.

Competent Person / Qualified Person Statements

The information in this presentation that relates to mining infrastructure and associated capital costs, is based on informat ion compiled by Mr.Richard Tremblay, who is a Member of the Association of Professional Engineers and Geoscientists of British Columbia. Mr. Tremblay is a full-time employee of Coalspur, and has sufficient experience which is relevant to the style of infrastructure and type of deposit under considerationand to the activity he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the 'Australasian Code for Reporting ofExploration Results, Mineral Resources and Ore Reserves' ("JORC Code"), and a Qualified Person under NI 43 -101. Mr. Tremblay hasapproved and consents to the inclusion of such information in this presentation in the form and context in which it appears.

The information in this presentation that relates to coal quality, coal processing and related capital costs, and yield estimates to deriveMarketable Coal Reserves is based on information compiled by Mr. Gordon Mudryk, who is a Member of the Association of ProfessionalEngineers, Geologists and Geophysicists of Alberta. Mr. Mudryk is a full-time employee of Coalspur. Mr. Mudryk has suff icient experience whichis relevant to the style of mineralisation and type of deposit under consideration and to the activity he is undertaking to qual ify as a CompetentPerson as defined in the 2004 Edition of the JORC Code, and a Qualified Person under NI 43 -101. Mr. Mudryk has approved and consents tothe inclusion of such information in this presentation in the form and context in which it appears.

The information in this presentation that relates to Coal Resources on Vista South is based on information compiled by Mr. John Innis, who is aMember of the Association of Professional Engineers, Geologists and Geophysicists of Alberta. Mr. Innis is a full -time employee of Coalspur.Mr. Innis has sufficient experience which is relevant to the s tyle of mineralisation and type of deposit under consideration and to the activity he isundertaking to qualify as a Competent Person as defined in the 2004 Edition of the JORC Code, and a Qualified Person unde r NI 43-101. Mr.Innis has approved and consents to the inclusion of such information in this presentation in the form and context in which it appears.

TSX CPT | ASX CPL17


18/22

Corporate information

TSX CPT | ASX CPL18

CAPITAL STRUCTURE

Fully Paid Ordinary Shares 639.7 million

Market Cap Undiluted (@C$0.30) C$192 million

Performance Rights 6.2 million

Unlisted Options (A$0.20 A$1.62) 30.3 million

Performance Shares 25.0 million

EIG and Borrowdale Warrants (1) (A$0.55) 134.0 million

(1) Warrants to be approved during EGM on 27 June 2013

ANALYST COVERAGERBC Capital Markets Patrick Morton

Bell Potter Securities Stuart HoweDundee Securities David CharlesHaywood Securities Colin HealeyPatersons Securities Limited Andrew HarringtonBMO Capital Markets Meredith BandySalman Partners Mike Plaster

SHAREHOLDER COMPOSITION

CanadianRegistry

(excl DeansKnight)30.9%

DeansKnight 5.2%

AustralianRegistry

(Institutionaland Retail)

39.9%

HighlandPark Group

(ex. LionOre) 24.0%


19/22

Coal market update

Current Newcastle spot pricing of ~US$82/t (20 June 2013) is insufficient to incentivize new supplyneeded to balance market in coming years

o The forward curve anticipates coal pricing to return to US$90/t in 2015 and US$95/t in 2017

The demand for thermal coal is expected to increase significantly over the next two decadeso Seaborne shipments are expected to increase at ~ 4.6% per annum through 2030

TSX CPT | ASX CPL19

$80

$85

$90

$95

$100

J u n

' 1 3

J u

l ' 1 3

A u g

' 1 3

S e p

' 1 3

Q 3 ' 1 3

Q 4 ' 1 3

Q 1 ' 1 4

Q 2 ' 1 4

C a

l - 1 4

C a

l - 1 5

C a

l - 1 6

C a

l - 1 7

Source: globalCOAL 20 June 2013

NEWCASTLE FORWARD CURVE (US$/t)

0

750

1,500

2,250

3,000

2012 2016 2020 2024 2028India China Other

SEABORNE EXPORTS 2012 2030 (Mt)

Source: Wood Mackenzie


20/22

Vista Clean coal specifications

Vista will produce high quality thermal coal that is attractive to Asian buyerso 88% of production will be 5,800kcal/kg GAR

o Low-ash and ultra-low sulphur

TSX CPT | ASX CPL20

Vista Production Summary and Indicative Washed Clean Coal Specifications

Val DOr and McPherson Seams McLeod Seam

Clean Coal Production (Mtpa) 10.5 1.5

Run of Mine Production (Mtpa) 18.4 3.5

Seam Clean Coal Yield 57.7% 42.5%

Coal Charac te r i s t i c s

Calorific Value kcal/kg (gar) 5,700 5,800 5,300 5,450

Total Moisture % 11.5 12.5% 11.5 12.5%

Ash Content % (gar) 9 11% 14 16%

Volatile Matter % (ad) 32 35% 30 33%

Total Sulphur % (ad) 0.30 0.40% 0.30 0.40%


21/22

JORC / NI 43-101Coal Reserves & Resources

TSX CPT | ASX CPL21

JORC / NI 43-101 Compliant Coal Reserves

Coal Seam

Recoverable Coal Reserve Marketable Coal Reserve

Proven (Mt)

Probable (Mt)

Proven &Probable

(Mt) Proven

(Mt) Probable

(Mt)

Proven &Probable

(Mt)

Val DOr and McPherson 429.3 45.9 475.2 248.5 26.5 275.0

McLeod 74.4 16.0 90.3 31.5 6.9 38.4 Coalspur Total Reserves 503.7 61.8 565.5 280.0 33.3 313.4

JORC / NI 43-101 Compliant Coal Resources

Measured (Mt)

Indicated (Mt)

Measured &Indicated

(Mt) Inferred

(Mt) Vista Coal Project 686.0 369.9 1,055.9 460.9Vista Extension 6.5 167.2 173.7 969.3Vista South Coal Project 210.6 259.9 470.5 604.5Coalspur Total Resources 903.1 797.0 1,700.1 2,034.7Note: Vista Extension Coal Resource estimates effective May 8, 2012, Vista Coal Project Coal Resource estimates effective May 8, 2012 andVista South Coal Project Coal Resource estimates effective May 22, 2010.

Note: Coal Reserve estimates effective December 13, 2011


22/22

Hinton Office 110 MacLeod Avenue | Hinton, AB | T7V 2A9

Telephone: +1 780 865 7955

Vancouver Office Suite 600, 543 Granville Street | Vancouver, BC | V6C 1X8

Telephone: +1 604 697 4470

coalspur corp presentationfinal2

Documents