ABN ASX: PDZ LUBLIN COAL PROJECT HIGHLIGHTS

Transcription

1 ABN ASX: PDZ LUBLIN COAL PROJECT HIGHLIGHTS OCTOBER 2012

2 ABN Lublin Coal Project Summary Large Lublin Coal Basin Position 18,200 ha (182km 2 ) Granted Coal Exploration Concessions in South East Poland from the Ministry of Environment Lublin Coal Basin is an emerging source of indigenous European coal supply Concessions located adjacent to the expanding Bogdanka coal mine targeting production of 11.5mtpa by 2014 Strategic European Coal Supply Lublin Coal Basin could potentially be a strategic source of European coal supply European countries currently import ~135mtpa of coal from South Africa, Russia, Colombia and USA Appointment of Technical Consultants Appointment of Wardell Armstrong International Limited ( WAI ) as technical consultants WAI currently reviewing existing geological detail in preparation of an exploration target If appropriate WAI will prepare an initial Coal resource (in accordance with the JORC Code) Potential High ARA linked Prices ARA benchmark price is affected by seaborne supply/demand trends from both the Pacific and Atlantic markets Potentially could provide for significantly higher pricing /margins compared with international peers in South Africa, Colombia and Russia Leveraged Enterprise Value Over A$20m of cash and listed shares (10 million Papillon Resources Limited shares (ASX: PIR)) provide access to a strong working capital position Only 104 million shares on issue Page 2 Prairie Downs Lublin Coal Project Highlights 2012

3 Lublin Coal Project 18,200 hectare Coal Exploration Concessions granted by the Ministry of Environment ( MOE ) in South East Poland Poland is a first world country having gone through significant reform since the end of communism at the end of the 1980 s Poland is the largest hard coal producer in the EU and is a key supplier of coal to its domestic market and neighbours Poland s power generation structure is largely dependent on coal (>90%) Lublin Coal Basin is a relatively new basin only having been explored and developed around the s Historically coal production has been supplied from the Upper & Lower Silesian Basins but this production has been decreasing over the last decade due to increasing technical difficulties Prairie Downs Lublin Coal Project Highlights 2012 Page 3

4 ABN The Lublin Coal Basin Bogdanka Coal Mine Lubelski Węgiel Bogdanka SA, is an 8mtpa thermal coal producer listed on the Warsaw Stock Exchange ( WSE ) Announced plans by Bogdanka have them ramping up production to 11.5mtpa by 2014 Bogdanka are currently the only producer in the Lublin Coal Basin Coal Exploration Concessions Prairie has secured Coal Exploration Concessions over 18,200 hectares Excellent access to power and rail infrastructure Current work program is focused on evaluating and acquiring the extensive drilling and analysis data which was completed by the government in the s Page 4 Prairie Downs Lublin Coal Project Highlights 2012

5 European Coal Supply A true need for a new European coal supply basin 1,200 1, 's Tonnes Bulgaria Czech Republic Germany Poland United Kingdom Rest of EU European Hard and Lignite Coal Production (Source: BP Statistical Review 2012) Romania Bulgaria Spain Czech Republic Germany United Kingdom Poland 2011 Hard Coal Production (Source: Eurocoal) million tonnes Poland is the number one EU hard coal producer & seventh largest globally at ~75mtpa; it is viewed as a pro-coal nation European hard and lignite coal production for power generation has been on a decreasing trend Traditional basins in Europe including coal basins in Germany, UK and Poland that have been operating for hundreds of years are becoming too technically complex and costly Germany is expected to close all hard coal mines by 2018; affecting 18mtpa of hard coal production which will need to be imported Poland has significantly decreased both hard coal and lignite production from 200+ mtpa in the early 90 s to ~140mtpa whilst still maintaining a high coal consumption Poland is now a net importer of coal (~15 mtpa) Employment in the coal industry has decreased from over 300,000 in the 90 s to ~110,000; providing for a oversupply of labor for new mines Prairie Downs Lublin Coal Project Highlights 2012 Page 5

6 ABN European Coal Imports Romania 0.1 Portugal 3.6 Spain 12.8 Sweden 0.8 United Kingdom 26.3 Poland 12.7 Netherlands 8.8 Austria 1.8 Czech Republic 1.2 Finland 5.7 France 11.7 Italy 17.0 Hungary 0.3 Germany 32.4 European Coal Import Breakdown (Source: Eurocoal) EU-27 Imports of thermal coal currently total approximately 135 million tonnes, the largest of which is Germany at 32 million tonnes, with most of the supply coming from South Africa, Russia, Colombia and USA Poland has a strategic advantage over traditional sources of coal imports for European and Eurasian countries 10+ mtpa 1-9 mtpa European Coal Imports (Source: Eurocoal 2012) Page 6 Prairie Downs Lublin Coal Project Highlights 2012

7 Corporate Directory DIRECTORS: Mr Ian Middlemas Chairman Mr Anastasios (Taso) Arima Executive Director Mr John Welborn Mr Mark Pearce COMPANY SECRETARY: Mr Dylan Browne REGISTERED AND PRINCIPAL OFFICE: Level 9, BGC Centre 28 The Esplanade Perth WA 6000 Tel: Fax: SHARE REGISTER: Computershare Investor Services Pty Ltd Level 2 45 St Georges Terrace Perth WA 6000 Tel: Int: Fax: STOCK EXCHANGE LISTING: Australian Securities Exchange Home Branch Perth 2 The Esplanade Perth WA 6000 ASX CODE: PDZ Fully paid Ordinary Shares BANKERS: Australia and New Zealand Banking Group Limited SOLICITORS: Hardy Bowen Lawyers AUDITOR: BDO Audit (WA) Pty Ltd Prairie Downs Lublin Coal Project Highlights 2012 Page 7

8 ABN For more information or to obtain a hard copy of the full Annual Report, contact us at: Australia Prairie Downs Metals Limited Level 9, BGC Centre 28 The Esplanade PERTH WA 6000 t: f: e: info@pdz.com.au w: ASX: PDZ ABN Poland PD Co z o.o. Rondo ONZ 1 Floor 5A Warsaw Poland The information in this report that relates to Exploration Results is based on information compiled by Mr Peter Woodman, who is a member of the Australian Institute of Mining and Metallurgy. Mr Woodman is a consultant of Prairie Downs Metals Limited. Mr Woodman has sufficient experience, which is relevant to the style of mineralisation 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 Woodman consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. The train on the front cover is not the property of Prairie Downs Metals Limited. It has been used for illustration purposes only.