FY 2010 results and comments

Transcription

1 INVESTOR & ANALYST UPDATE 3 rd March 2011 FY 2010 results and comments 1

2 Disclaimer The views expressed here contain information derived from publicly available sources that have not been independently verified. 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 Banpu plc. Nothing in this release should be construed as either an offer to sell or a solicitation of an offer to buy or sell shares in any jurisdiction. 2

3 1. Introduction 2. Financial summary 3. Focus: reserves update 4. Coal market 5. Coal divisions 6. Power division Appendices 3

4 1. Introduction 4

5 CORPORATE EVENTS EXTERNAL EVENTS Key events Indonesia flooding Capital inflow to Asia China coal cap Queensland flooding Capital flow back to US Instability in the Middle East October November December January February 12 Oct Closed Offer of CEY 10 Nov 3Q10 Results 18 Nov Divestment 14.9% stake in Ratch 22 Dec Announcement of Special Dividend Bt. 5 4 Jan Announcement of license expiry at Daning 23 Feb Banpu FY10 results, dividend and Reserves & Resources update 11 Nov 3Q10 Analyst Meeting: CEY focus 5

6 Map of Banpu operations and projects CHINA Gaohe (45%) (COD2013) Daning (56%) 4 Mtpa Hong Sa (40%) (COD 2015) THAILAND BLCP (50%) 1,434MW Truebaindo (65%) 5.5 Mtpa Bharinto (64%) (COD 2H11) INDONESIA Luannan (100%) 100 MW, 128 tph Zhengding (100%) 48 MW, 180 tph Zouping (70%) 100 MW, 430 tph Hebi (40%) 1.5 Mtpa Jorong (65%) 0.9 Mtpa Kitadin Tandung Mayang (65%) (COD 2H11) Indominco (65%) 14.3 Mtpa Kitadin-Embalut (65%) 1.2 Mtpa WESTERN OPERATIONS Inglenook (95%) Ivanhoe (100%) (mine under rehabilitation) Charbon* (95%) Airly (100%) 0.1 Mtpa Neubecks (50%) Angus Place (50%) 1.7 Mtpa *Charbon and Clarence 2.4Mtpa Springvale (100%) 1.6 Mtpa Clarence* (85%) NORTHERN OPERATIONS Awaba (100%) 0.9 Mtpa Mandalong (100%) 5.3 Mtpa Newstan Lochiel (100%) Myuna (100%) 2.1Mtpa Mannering (100%) AUSTRALIA Centennial (100%) 14.3 Mtpa Coal mine Coal mine project Coal-fired power Coal-fired power project Note: All figures are for 2010 output or capacity, figures for Centennial are equity basis 6

7 Banpu in Q10 FY 2010 Bt. million 21,507 Bt. million COAL SALES COAL SALES 65, Mt 25.9 Mt Power 1,392 CEY ITM Up 4.3 Mt 85% Q-Q 4,865 CEY ITM Up 4.8 Mt 23% Y-Y Coal 20,115 3, ,194 4,923* 3,818 1,106 60,420 18,575 3,561 15,014 24,728* 6,934 17,794 Power Coal Revenue EBIT Net income Revenue EBIT Net income Y-Y 23% Q-Q 57% Y-Y -1% Q-Q -35% Y-Y 200% Q-Q -63% Y-Y 13% Y-Y -14% Y-Y 74% * Includes gains from divestment of Ratch Includes gains from divestment of 8.72% shares in ITM and Ratch Note: Revenue from others is included in coal Coal Power Only Q4 figures for Centennial are consolidated in the 2010 revenues figures for coal 7

8 2. Financial summary 8

9 Sales revenues Bt. million USD 2,058 m Power USD 1,515 m 50,530 4, % Y - Y USD 1,685 m 57,865 4, % Y - Y 65,285 4,865 Power +2% Y - Y Coal 46,070 53,077 23% increase in sales volume 8% appreciation of Thai Baht 60,420 Coal +14% Y - Y Coal Power Note: Only Q4 figures for Centennial are consolidated in the 2010 revenues figures for coal, USD exchange rate is the average exchange rate of the corresponding period, Revenue from other is included in Coal. 9

10 Coal gross margin 43% (2009 : 51%) Bt. million 25,817 31,978 34,268 Coal sales Average Indonesia coal business gross margin: 44% (2009: 51%) Bt. million 16,361 15,489 14,838 6,498 Gross Margin (%) 40% 49% 42% 63% 57% 51% 3,095 3,982 1,488 1,150 2,735 32% 41% 41% 33% 37% 45% Q2010 Indominco Trubaindo Jorong Kitadin Centennial 10

11 EBITDA and NPAT EBITDA Net Profit after Tax Bt. million 18,772 Power 4, % Y on Y 23,785 4,830-8% Y on Y 21,966 3,962 Power -18% Y-Y Bt. million 14, % Y on Y 24,728 2,848 Power -23% Y-Y +54% 9,228 Y on Y 3,785 21,879 Coal Coal 14,720 18,955 18,004 Coal -5% Y-Y 2, % Y-Y 10,444 6, Coal Power 11

12 Balance sheet Net D/E (X) Debt structure Net gearing (%) 1.06 AUD Float 12% % USD Float 59% Fixed 11% THB Float 20% 25% 40% % 26% % THB Fixed 9% * Net gearing = ND / (ND+E) As at end of December

13 Dividend payments Dividend per share (Bt) 5 (Special) 5 (Special)

14 3. Focus: reserves update 14

15 Growth in Banpu s coal reserves (equity basis) Organic increase in reserves* Study and LT price 1 : Indominco (+24) Geotech impact : Jorong (-11) Kintadin (-1) Lampang (-1) Exploration, study and LT price 2 : Indominco(+14) Kitadin (+7) Bharinto (+13) Exploration, study and LT price 2 : Indominco (+49) Trubaindo (+20) Study 2 : Trubaindo (+3) Daning (+17) Exploration, study and LT price 2 : Indominco (+30) Trubaindo (+26) Termination UG project : Indominco UG (-9) +11 Mt +34 Mt +69 Mt +20 Mt +47 Mt Mt** +97 Mt +308 Mt -30 Mt ITM IPO (Dec 07) Daning (+29) Gaohe (+68) Acquisition increase (and decrease) in reserves Centennial ITM 9% sell down *This does not include the effect of sales depletion **Excludes divestment of Barasentosa Note 1 : ITM 100% Note 2 : ITM 74% 15

16 Banpu changes in reserves 2010 vs (equity basis) Mt Australia Coal China Coal China Coal Indonesia Coal (ITM) Indonesia Coal End 2009 Sales depletion Termination of underground project Exploration & coal price Pre-transaction basis ITM 9% sell down Acquisition of CEY End

17 Banpu coal resources and reserves by country (equity basis) Mt AUSTRALIA INDONESIA CHINA Reserves Reserves 308 Resources 1,813 Reserves 218 Resources 1, Resources Total reserves: 672 Mt Total resources: 3,175 Mt Note: All figures are as at December 31 st,

18 ITM focus: changes in reserves 2010 vs (100% basis) Indominco* Trubaindo Kitadin West Block +20 Mt 35Mt 25 Mt +36 Mt 109Mt 26 Mt 25 Mt -10 Mt 78 Mt Embalut - 1 Mt TDMY End 2009 Coal sales Exploration & coal price End Mt End 2009 Coal sales End 2010 East Block 98 Mt +20 Mt 114Mt Bharinto (project) -4 Mt End 2009 Coal sales Exploration & End Mt 46 Mt Jorong 8 Mt -1 Mt 7 Mt End 2009 Coal sales Exploration & coal price End 2010 End 2009 Coal sales End 2010 End 2009 End 2010 Note: All figures are as at December 31 st, 2010, Resources are Measured & Indicated, Reserves are Proved & Probable *This excludes the termination of Indominco underground project 18

19 4. Coal market 19

20 Main 2011 coal market driver Weather Chinese Demand World Growth Impact on Indonesia is most significant: Indonesia domestic demand will be more than S. Africa, Russia or Colombian exports Indonesia export expected to be over 4x S. Africa, 4x Russia, 4x Colombia and 2x Australia China hot summer? Early 2011/12 winter? Good weather estimates? GDP growth forecast 8.5% but on coast 10%? Coal demand up to 10-12% and on coast c % Will international price vs. domestic demand determine volume? Exchange rates may swing to support higher imports Latest world growth forecast 3.1% Asian growth forecast 5.1% If unemployment concern defers interest rate rises, there is potential for demand lift in 2H 2011 But oil, food and raw material cost will have a gradual impact Sources: Country Forecast February and March 2011 from The Economist Intelligence Unit Limited

21 US$ / Ton Banpu average selling prices in 3Q10 Thermal coal benchmark prices Coal price benchmarks FOB Richards Bay 6000 kcal/kg, NAR FOB Newcastle 6300 kcal/kg, GAR FOB Kalimantan 5900 kcal/kg, GAR FOB Kalimantan 5000 kcal/kg, GAR Newcastle, RB, Indonesian Coal prices flatten Upswing due largely to : Supply shortfall due rain in Colombia, Australia and particularly Indonesia Northern seasonal winter demand in Europe but not in Asia Some improved general sentiment Sep-10 Oct-10 Nov-10 Dec-10 Jan-11 Feb-11 Mar-11 Indonesian indices drag behind Australian and S. African due to: Being forward estimates without recourse rather than actual deals and they include traders Less tight supply/demand balance (usually) Forecasts: depend on weather and China 21

22 Thermal Thermal coal market coal market analysis analysis 1Q Q 2010 update update ATLANTIC Increased demand due to cold winter. Gas competes RUSSIA Minor recovery due weakened Ruble but rising domestic demand and rail limits CHINA Q1 Import rate eased due to slow return of industry, warm winter in the south and import price relatively high EAST ASIA Japan minor recovery, but steel mills strong still; Korea andtaiwan strong recovery USA Thermal supply remains very low, some LCV to Korea / China REST OF ASIA Continued growth COLOMBIA Rains lower production. Export to Asia stop INDONESIA Rain in 1Q, but not excessive SOUTH AFRICA Continuing problems in rail eases short term. Diverted shipments to N.Asia from China distort expectation INDIA Under recovery, Buyers hoping prices ease AUSTRALIA Floods hamper Queensland output, loss approx. 4-5 Mt thermal = Demand = Demand/Supply = Supply 22

23 China thermal coal market review China thermal coal market review China domestic coal prices China thermal coal imports and exports RMB 1,200 1, Datong super mixed coal (6,000 kcal/kg) Shanxi super mixed coal (5,500 kcal/kg) Common mixed coal (4,000 kcal/kg) End Dec 10 (RMB) Feb 11 (RMB) Datong Shanxi Common Mt Net import 79 Mt Net import c. 92 Mt Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q101Q11e Outlook Import Export Source: 21 February 2011 Sources: China Coal Report February 2011, MS&L Estimates 23

24 5. Coal divisions 24

25 5. Coal divisions (a) (b) (c) Indonesia coal Australia coal China coal 25

26 Indonesian coal operations in 2010 ITM OPERATIONS & PROJECTS (2010 saleable output) Central Kalimantan POWER COAL Palangkaraya TRUBAINDO 5.5 Mt Operation Project Operation Project East Kalimantan INDOMINCO 14.3 Mt Banjarmasin Bunyut Port BHARINTO (Commissioning in 2H2011) South Kalimantan JORONG 0.9 Mt Jorong Port Samarinda Balikpapan KITADIN-TANDUNG MAYANG (Commissioning in 2H2011) Bontang Coal Terminal Captive coalfired power project KITADIN- EMBALUT 1.2 Mt Coal output : 4Q10 : 5.8 Mt 2010 : 22 Mt Project updates: Trubaindo: hauling road construction to connect Bharinto area continued Bharinto: installing crusher plant, to be finished 1Q11 Tandung Mayang: first output by 2H11 with target of 0.8 Mt for 2011 H11 26

27 Indonesian quarterly output and SR analysis STRIP RATIO (bcm/t) STRIP RATIO (bcm/t) STRIP RATIO (bcm/t) STRIP RATIO (bcm/t) W Block E Block Q10 2Q10 3Q10 4Q10 1Q10 2Q10 3Q10 4Q10 1Q10 2Q10 3Q10 4Q10 1Q10 2Q10 3Q10 4Q10 COAL OUTPUT (Mt) COAL OUTPUT (Mt) COAL OUTPUT (Mt) COAL OUTPUT (Mt) 3.6Mt 3.6Mt 3.5Mt 3.6Mt 3.5Mt Mt 1.1Mt 1.3Mt 1.5Mt 1.4Mt 0.4Mt 0.1Mt 0.0Mt 0.4Mt 0.3Mt 0.4Mt 0.3Mt 0.3Mt 0.2Mt 0.3Mt 1Q10 2Q10 3Q10 4Q10 1Q11e Indominco-Bontang 1Q10 2Q10 3Q10 4Q10 1Q11e Trubaindo 1Q10 2Q10 3Q10 4Q10 1Q11e Jorong 1Q10 2Q10 3Q10 4Q10 1Q11e Kitadin - Embalut CV: kcal/kg CV: kcal/kg CV: 5300 kcal/kg CV: 5750 kcal/kg Higher SR due to mining in alternate area Additional contractor was added to support 2011 production Expect flat production due to limited reserves Start mining in difficult area so variation in SR is expected West block East block Note: output figures are saleable coal 27

28 Banpu average selling prices in 3Q10 Banpu average selling prices in 4Q10 USD/tonne Quarterly BJI Quarterly ASP Monthly BJI Monthly ASP Jun-08 Dec-08 Jun-09 Dec-09 Jun-10 Dec-10 Product mixes with some lower CV impacted 2010 prices ASP 4Q10 vs. 3Q10 down 1% due to product mix Historical lags continue ASP 4Q10 $77.25t (-1% QoQ) ASP 2010 $74.65t (+4% YoY) BJI* Feb 24, 2011 $

29 Indicative 2011 coal sales Coal Coal sales sales contract contract and and pricing pricing status status Comment Contract Status Contracted Fixed Price Status Index Historically low fixed price as of February at 40% 11% 89% 100% 40% 23% 37% Historically high committed share at 89% as of February Uncontracted Unpriced As of 22Feb 11 TARGET SALES 2011: c.25.0 Mt Remaining unsold mostly lower grade product 29

30 Coal sales by geographic destination (ITM and Thai) Indonesia coal sales by destination 2010 (22.3 Mt) ITALY 1.3 Mt 1.4Mt Mt CHINA 2.6Mt 5.1Mt 2011 HONG KONG S.KOREA JAPAN Mt 1.3 Mt 1.2Mt 2.3Mt 4.2Mt 1.8Mt 4.0Mt 0Mt Mt Mt INDIA 2.2Mt Mt 0.2Mt TAIWAN 2.6Mt 2.5Mt 1.9Mt 2011 OTHERS* 1.4Mt 0.9Mt 1.1Mt *Includes small, nonregular purchasers THAILAND INDONESIA PHILIPPINES Mt 2.1Mt 1.6Mt 1.6Mt 1.8Mt 1.3Mt 1.2Mt 1.1Mt 0.7Mt Mid-to-High CV Low-to-Mid CV 2011 trend expectation

31 5. Coal divisions (a) (b) (c) Indonesia coal Australia coal China coal 31

32 Australia coal Inglenook Ivanhoe North WESTERN OPERATIONS Neubecks Charbon Airly Clarence Angus Place Springvale Newstan Lochiel (development project) Awaba Mandalong NORTHERN ROM output (equity basis) : OPERATIONS Newcastle Newcastle (NCIG) Myuna Mannering Port Waratah 4Q10 : 3.96 Mt Operation and project updates: Mandalong: achieved highest quarterly output in 4Q10 (1.6Mt) following longwall changeover in previous quarter Open-cut mine Underground mine Project Power station Port Road Rail Note: Centennial equity ownership 100% unless shown in brackets Wollongong Sydney Port Kembla (PKCT) Springvale: commenced longwall changeover in late 4Q10 with extraction resuming in Feb 2011 Newstan Lochiel: pre-feasibility study completed, progressing into feasibility phase H11 32

33 Australia coal in 4Q10 (equity basis) CENTENNIAL ROM Output (Mt) Sales (Mt) Revenue (AUD m) Export / Domestic (Mt) Western Operations Airly (100%) Angus Place (50%) Charbon (95%) Export 4.7 Clarence (85%) Springvale (50%) 4Q Q Domestic Northern Operations Awaba (100%) Newstan (100%) Mandalong (100%) Mannering (100%) Myuna (100%) 4Q Q Q Q

34 5. Coal divisions (a) (b) (c) Indonesia coal Australia coal China coal 34

35 China coal operations BANPU CHINA 2010 COAL PRODUCTION TARGETS* PRICE vs. COST (RMB/ t) PRICE vs. COST (RMB/ t) AVERAGE COAL PRICE AVERAGE COAL PRICE 499 Gaohe (45%), Shanxi 6 Mt Daning (56%), Shanxi 4 Mt BEIJING Q09 3Q10 4Q Mt 0.61Mt 0.53Mt PRODUCTION COST COAL OUTPUT (Mt ROM) Q09 3Q10 4Q10 PRODUCTION COST COAL OUTPUT (Mt ROM) 0.38Mt 0.36Mt 0.37Mt 0.32Mt Hebi (40%), Henan 1.5 Mt N.A. 4Q09 3Q10 4Q10 1Q11e 4Q09 3Q10 4Q10 1Q11e Daning Hebi Zhong Tai Mining POWER COAL Operation Project Operation Project * ROM production CV: Kcal/kg Banpu 56% Ordered mine closure on Dec 31 due to license expiry. An extension of the license with local authority is under process. CV: Kcal/kg Banpu 40% High ASP due to higher sales and prices of fine coal (PCI coal) to the steel industry. 35

36 China coal project: Gaohe 6.0 Mtpa underground coal mine located in Shanxi Province, PRC utilizing Longwall mining technique Joint venture between Banpu (AACI) (45%) and Lu an Mining Group (55%) Joint venture established in 2005 Obtained mining license in 2010 All key equipment and facilities (mine monitoring, production, hoisting, coal preparation) are international standard Trial production in 2011 Full production in

37 6. Power division 37

38 Power Thailand : BLCP in 2010 (100% basis) Bt. million Q-Q: -47% Y-Y: -16% 10,535 8,829 Q-Q: -91% Y-Y: -11% Q-Q: -43% Y-Y: -9% 19,697 17,979 2,456 1,305 3,412 5,026 2,843 3Q10 4Q Q-Q: -44% Y-Y: - 3% 8, Availability Payment (AP) 8, , FX gain 3Q10 4Q Q-Q: -82% Y-Y: -20% Total revenue 7, ,271 3,116 2,307 1,281 1,128 2,502 1, Q10 4Q Energy Payment (EP) 96% 96% 95% 96% FX gain Q10 4Q Q-Q: -66% Y-Y: -16% EBIT ,807 8, Q10 4Q , Equity income* 3Q10 4Q Dispatch (%) 2010 * Based on Banpu s 50% interest 3Q10 4Q EBITDA

39 Power China in 2010 (100% basis) BPIC Luannan Hebei Province Power 100MW; Steam 128tph (Banpu 100% ) Sales* (USD m) EBITDA (USD m) Utilization (hours) 1, ,000 5,823 Power tariff (RMB/kwh) Coal price** (RMB/t) Zhengding Hebei Province Power 48MW; Steam 180tph (100%) ,524 2,224 7,165 6, Zouping Shandong Province Power 100MW; Steam 430tph ,159 1, ,254 7, (70%) Note: * Unaudited figures, ** Including transportation 3Q10 4Q

40 Power Thailand : Hongsa project 1,800 MW mine-mouth lignitefired power plant project COD targeted at 2015 Partnership between Banpu (40%), Ratch (40%) and Lao government (20%) EPC agreed HONGSA POWER PLANT ARTIST S IMPRESSION PPA execution in April 2010 Loan first drawdown completed in October

41 Appendices 41

42 SUFFICIENCY OF GEOLOGICAL DATA FOR MINE PLANNING Reserves and resources: definitions Resources and reserves concepts ILLUSTRATIVE ONLY Conversion of resources to reserves Coal in the ground for which there are reasonable prospects for eventual economic extraction Economically mineable part of a measured and indicated coal resources 1 Economic assumptions Higher coal price increases the average strip ratio and allows more coal to be extracted Insufficient COAL RESOURCES INFERRED COAL RESERVES Pit depth (m) 0 Mineplan with feasibility study at 200m depth Mineplan with higher stripping ratio Original mine plan Adequate INDICATED Original reserves -100 Additional reserves Extensive MEASURED Additional reserves 2 Original depth cut-off at 150m PROBABLE PROVED New depth cut-off at 200m CONFIDENCE Reasonable MODIFYING FACTORS (e.g. regulatory, environmental, social, etc.) High 2 Technical feasibility New study could prove that additional coal can be mined and increases reserves base 42

43 Operating profit Units: Bt. million YoY % Total sales revenues* 65,285 57,865 13% Sales revenues Coal 59,901 52,704 14% Sales revenues Power (BIC) 4,865 4,788 2% Cost of sales (38,640) (29,992) Gross profit* 26,645 27,874-4% Gross profit - Coal 25,788 26,629-3% Gross profit Power (BIC) 796 1,182-33% GPM 41% 48% GPM - Coal 43% 51% GPM Power (BIC) 16% 25% Note: * Including other business 43

44 Operating profit Units: Bt. million YoY % Gross profit 26,645 27,874-4% GPM 41% 48% SG&A (7,441) (5,390) Royalty (6,925) (6,467) Income from associates 6,117 7,447 Dividend income Coal & Power Other income 1, Other expenses - Operations (1,327) (2,626) EBIT 18,575 21,667-14% EBIT - Coal 15,014 17,253-13% EBIT - Power 3,561 4,414-19% EBITDA 21,966 23,785-8% EBITDA - Coal 18,004 18,955-5% EBITDA - Power 3,962 4,830-18% 44

45 Operating profit Units: Bt. million YoY % EBIT Interest expenses (1,682) Financial expenses (299) Income tax (core business) (3,301) Minorities (1,987) Net profit before extra items 11,306 Non-recurring items* 13,235 Net profit before FX 24,541 14,751 66% FX translations 187 (521) Net profit 24,728 14,229 74% EPS (Bt/share) Note: * Income from non-core assets and other non-operating expenses 18,575 21,667-14% (1,282) (181) (4,611) (3,574) 12,020 2,730-6% 45

46 Operating profit Units: Bt. million 4Q10 3Q10 4Q09 QoQ% YoY% Total sales revenues* Sales revenues Coal 20,026 12,607 15,713 59% 27% Sales revenues Power (BIC) 1, ,477 44% -6% Cost of sales (14,277) Gross profit* 7,230 6,137 7,376 18% -2% GPM 34% Note: * Including other business 21,507 13,688 17,428 57% 23% Gross profit - Coal 7,066 5,985 6,979 18% 1% Gross profit Power (BIC) % -45% GPM - Coal 35% GPM Power (BIC) 15% (7,550) 45% 47% 10% (10,051) 42% 44% 25% 46

47 Operating profit Units: Bt. million 4Q10 3Q10 4Q09 QoQ% YoY% Gross profit 7,230 6,137 7,376 18% -2% GPM 34% 45% 42% SG&A (2,770) (1,534) (1,820) Royalty (2,066) (1,542) (1,881) Income from associates 522 1,254 1,676 Dividend income Coal & Power Other income Other expenses - Operations (190) (110) (498) EBIT 3,101 4,754 3,121-35% -1% EBIT - Coal 3,194 3,407 2,697-6% 18% EBIT - Power (93) 1, na. na. EBITDA 4,914 5,292 3,715-7% 32% EBITDA - Coal 4,888 3,854 3,240 27% 51% EBITDA - Power 26 1, % -95% 47

48 Net profit Units: Bt. million 4Q10 3Q10 4Q09 QoQ% YoY% EBIT Interest expenses (719) Financial expenses (126) Income tax (core business) (754) Minorities (467) Net profit before extra items 1,034 3,101 4,754 3,121-35% -1% (383) (77) (827) (332) 3,136 (289) (55) (927) (914) % 11% Non-recurring items* 3,586 9, Net profit before FX 4,620 13,062 1,731-65% 167% FX translations (90) Net profit 4,923 13,293 1,641-63% 200% EPS (Bt/share) Note: * Income from non-core assets and other non-operating expenses

49 Banpu s resources & reserves statement (100% basis) Mine operation and project INDONESIA Interest (%) Measured Resources Indicated Resources End December 2010 Total Resources Proved Reserves Probable Reserves Total Reserves Jan - Dec 2010 Coal Sales End December 2009 Total Resources Total Reserves Jorong Indominco Kitadin Trubaindo Bharinto CHINA Daning Hebi* Gaohe AUSTRALIA Airly n.a n.a Angus Place n.a n.a Awaba n.a n.a Charbon n.a n.a Clarence n.a n.a Ivanhoe n.a n.a Mandalong n.a n.a Mannering n.a n.a Myuna n.a n.a Springvale n.a n.a Inglenook n.a n.a Neubacks n.a n.a Newstan n.a n.a Newstan Lochiel n.a n.a Total 2, , , , Note: All reserves and resources in Mt. Figures have been estimated in accordance to JORC Code unless otherwise stated * Figures have been estimated in accordance to Chinese reporting standard 49

50 Key Centennial assets WESTERN OPERATIONS NORTHERN OPERATIONS Coal specifications Centennial (avg. of all coal output) Asian benchmark Inglenook (95%) (exploration area) Neubecks (50%) Ivanhoe (100%) (mine under rehabilitation) Charbon* (95%) Airly (100%) 0.1 Mtpa Angus Place (50%) 1.7 Mtpa Springvale (100%) 1.6 Mtpa Newstan Lochiel (100%) Awaba (100%) 0.9 Mtpa Mandalong (100%) 5.3 Mtpa Newcastle Myuna* (100%) Newcastle (NCIG) 30 Mtpa (8.79%) Mannering* (100%) * Total of 2.1Mtpa Gross Calorific Value (air dried basis) Total Sulphur (air dried basis) % 0.70% % Clarence* (85%) 0% *Charbon and Clarence 2.4Mtpa Open-cut mine Underground mine Project Power station Sydney Ash (air dried basis) 16% 7% 20% 0% Port Road Rail Note: Centennial equity ownership 100% unless shown in brackets Kilometers Wollongong Port Kembla (PKCT) 15 Mtpa (16.66%) Total Moisture (as received) 9% 12% 30% 0% Disclaimer: This document contains information relating to Centennial Coal Company Limited, which has been derived from publicly available sources and has not been independently verified. No representation or warranty is made as to the accuracy, completeness or reliability of such information. 50