Important Notice - listed companygeoenergy.listedcompany.com/newsroom/20130611_171034_RE4_DE0032B... · Important Notice Important Notice ... BCM (‘000) Coal Cooperation ... Komatsu

1

Important Notice

Important Notice

This presentation contains certain statements that are not statements of historical fact, i.e. forward-looking statements. Investors can identify some of these statements by forward-looking items such as ‘expect’, ‘believe’, ‘plan’, ‘intend’, ‘estimate’, ‘anticipate’, ‘may’, ‘will’, ‘would’, and ‘could’ or similar words. However, you should note that these words are not the exclusive means of identifying forward-looking statements. These forward-looking statements are based on current expectations, projections and assumptions about future events. Although Geo Energy Resources Limited believes that these expectations, projections, and assumptions are reasonable, these forward-looking statements are subject to the risks (whether known or unknown), uncertainties and assumptions about Geo Energy Resources Limited and its business operations.

• Some of the key factors that could cause such differences are, among others, the following:

• changes in the political, social and economic conditions and regulatory environment in the jurisdictions where we conduct business or expect to conduct business;

• the risk that we may be unable to realise our anticipated growth strategies and expected internal growth;

• changes in currency exchange rates;

• changes in customer preferences and needs;

• changes in competitive conditions in the dental services industry and our ability to compete under these conditions;

• changes in pricing for our services; and

• changes in our future capital needs and the availability of financing and capital to fund these needs.

• Given these risks, uncertainties and assumptions, the forward-looking events referred to in this presentation may not occur and actual results may differ materially from those expressly or impliedly anticipated in these forward-looking statements. Investors are advised not to place undue reliance on these forward-looking statements.

• Investors should assume that the information in this presentation is accurate only as of the date it is issued. Geo Energy Resources Limited’s business, financial conditions, results of operations and prospects may have changed since that day. Geo Energy Resources Limited has no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law.

2

Understanding Geo

Coal Mining Specialist in Indonesia

Headquartered in Jakarta with a corporate office in Singapore

Mine Owner and Contractor having produced more than 4 million tonnes of coal since 2008

Owns BEK Mining Concession and has entered into conditional S&P agreements for five other mining

concessions

3

4

Work Process

5

Production Planning & Scheduling

Secure and Maintain Licenses and

Permits

Land Clearing and Overburden

Removal Coal Excavation

Coal Haulage

Crushing and Loading

Coal Sale

Reclamation and Rehabilitation

Mine Owner

Legend: Work activity undertaken by the Group

6

Work Process

Production Planning & Scheduling

Secure and Maintain Licenses and

Permits

Land Clearing and Overburden

Removal Coal Excavation

Coal Haulage

Crushing and Loading

Coal Sale

Reclamation and Rehabilitation

Legend: Work activity undertaken by the Group

Work activity undertaken by third party mine owner

Mine Contractor

Our Track Record

7

Location Site Area Period of Operations Calorific Value (GAR) (Kcal/Kg)

Coal Produced (Tonnes)

Banjar Regency, South Kalimantan

156 ha Oct 2008 – Jul 2009 >3,800 326,000

Kutai Kartanegara Regency, East Kalimantan

100 ha Aug 2009 – Jun 2010 >5,500 218,000

Kutai Kartanegara Regency, East Kalimantan

195 ha Nov 2009 – Sep 2012 >5,500 549,000

Samarinda City, East Kalimantan

192 ha July 2010 – Sep 2012 >5,500 1,100,000

Paser Regency, East Kalimantan

94 ha Dec 2010 – May 2011 >3,500 87,000

Kutai Kartanegara Regency, East Kalimantan

98 ha June 2011 – Mar 2012 >5,500 344,000

BEK Mine Concession

8

4,570 ha in Kutai Barat Regency, East Kalimantan 6 year mine life based on 12.5m tonnes of reserves 30.7m tonnes of resources in addition to reserves Approximately 1,438,000 tonnes of coal produced as at 31 Mar 2013 Calorific value in excess of 3,400 GAR Commenced production in February 2012 Concession period of 20 years, commencing April 2011

Key milestones for the BEK Concession Area

9

Jan 2012

• Land Clearing

Feb 2012

• Overburden Removal

• Coal Extraction

31 Dec 2012 964,000 tonnes of coal produced

31 Mar 2013 1,438,000 tonnes of coal produced

Mine Contracting Services

10

Entered into Mining Services Agreement and Coal Sale and Purchase Agreement for Block I and II Overburden removal and coal hauling services

PT Bumi Jaya Prima Etam

Our Customers

Geo Energy Resources

Coal Traders and Export Companies

(Coal Sales)

Power plants, cement factories and other

industrial users

Other Mine Owners (Mine Contracting Services)

11

63.0

1.7

14.1

FY2012 Revenue (US$'m)

Indonesia China South Korea

Competitive Strengths

12

Experienced management with extensive knowledge of the Indonesia coal industry

Extensible customer network and established reputation

Owns and operates a comprehensive fleet of mining equipment and mining facilities

Cordial working relationship with regulatory authorities and communities

Experienced Management Team

13

Mr. Charles Antonny Melati, Executive Chairman

• Mr. Melati is one of the founders of the Group and oversees the overall strategic directions and expansion plans for the growth and development of the Group

• Extensive commercial contacts within the Indonesian coal mining industry players; good relationships with the relevant regulatory authorities

Mr. Dhamma Surya, CEO

• Mr. Surya is one of the founders of the Group and is responsible for the overall business and general management of our Group

• Responsible for day-to-day ground operations at Group’s coal mining sites; conversant with the Group’s mining operations

Mr. Huang She Thong, Executive Director

• Mr. Huang is one of the founders of the Group and oversees the business developments and sales targets of our Group

• Hands on management of coal mining operations; extensive participation in coal mining seminars & conferences

Mr. James Beeland Rogers Jr, Non-Executive Director

• Mr. Rogers joined the Group in December 2012

• Renowned international investor with active interests and extensive knowledge in the mining and energy industries

Corporate Initiatives

14

Worker Health and Safety Standards

Environmental Matters and Auditing

Corporate Social Responsibility

15

Indonesian Coal Industry

16

161 billion tonnes of coal resources in Indonesia

More than 30% found in East Kalimantan

Source: Ministry of Energy and Mineral Resources, Republic of Indonesia, February 2012

17 Source: Asia Pacific Mining Conference Indonesia (APMCI) 2012, 10-11 October 2012, Bob Kamandanu

Indonesian Coal Long Term Outlook

18

Coal Demand

Japan Market • Japan will buy more lower-grade thermal coal to cut

power-generation costs

China and India Market

• Global coal demand growth expected to remain strong

• China coal imports in 2012 totalled 227m tonnes

• Indian coal imports expected to rise to approx. 110m tonnes in 2013/14

Indonesia Market • Domestic coal demand is expected to grow from

60.0m tonnes (2010) to 300m tonnes (2025)

• Indonesia is world largest coal exporter in 2011*

*Source: http://www.worldcoal.org/resources/coal-statistics/; Statistics for 2012 are not yet available / Bloomberg

19 Source: http://www.bloomberg.com/news/2013-02-20/indonesia-s-2013-coal-output-may-rise-5-2-association-says-1-.html

Why Indonesian Coal?

20

Why Indonesian Coal?

Source: http://www.bloomberg.com/news/2013-06-05/china-coal-import-ban-unlikely-on-cost-indonesian-miners-say.html

Market Developments

21

New Mining Law (30 Sep 2012) - Mine owners are required to carry out coal production and sale activities

Geo Energy has transformed into a full-fledged mining contractor with mining services capabilities

22

Overburden Removal

23

8,707

13,945

8,029

4,154

1,688

1,912

FY2010 FY2011 FY2012 1Q2013

BCM (‘000) Coal Cooperation Contracts BEK Mining Services

Coal Production

24

787 853

593

964

474

FY2010 FY2011 FY2012 1Q2013

Tonnes (‘000)

Coal Cooperation Contracts BEK

Coal Sales Volume

25

763 910

645

945

410

FY2010 FY2011 FY2012 1Q2013

Sales Volume (‘000 tonnes)

Coal Cooperation Contracts BEK

50.1

69.2 78.8

19.3 17.8

37.9 38.5

46.0

39.7

54.9

0

50

100

FY2010 FY2011 FY2012 1Q2012 1Q2013

Revenue (US$'m) Gross Profit Margin (%)

Revenue and Gross Profit Margin

26

Group Net Profit and Net Profit Margin

11.1 14.4

19.2

4.3 5.1

22.2 20.8

24.3

22.2

28.9

0

15

30

FY2010 FY2011 FY2012 1Q2012 1Q2013

Group Net Profit Net Profit Margin (%)

27

Our Fleet Of Mining Equipment

28

Dec-10 Dec-11 Dec-12 Mar-13

Articulated 11 13 13 34

Compact 1 1 1 1

Bulldozer 19 21 23 27

Dump Truck 53 76 76 96

HD Truck 7

Excavator 35 39 40 48

Grader 3 4 5 6

Hauling Truck 22 22 22 22

Wheel Loader 3 3 6 6

Total 147 179 186 247

Our Fleet Of Mining Equipment

29

HE Type Brand Model Unit

Articulated CAT 740 3

Volvo A40E 10

Volvo A40F 21

Bulldozer CAT D6R 1

CAT D6R XL 2

CAT D7G 11

CAT D8R 4

CAT D9R 2

CAT D10T 2

Bulldozer Komatsu D85E-SS-2 6

Komatsu D375A-5 2

HD Truck CAT 773E 7

Dump Truck Nissan CWB45ALDN 63

Hino FM260 JD 26

Hino FM260 TI 2

Hino FM320 JD 5

Manhaul Hino FM320 JD 2

HE Type Brand Model Unit

Fuel Truck Hino FM320 JD 1

Service Truck Hino FM320 JD 1

Hauling Truck Scania P420CB 14

Excavator CAT 320 D 9

CAT 330 DL 7

CAT 336 DL 5

CAT 345 DL 16

Excavator Komatsu PC400L8E-8 6

Komatsu PC1250 2

Excavator Hitachi ZX870H-5G 3

Hitachi ZX879 H 1

Grader CAT 120 H 2

CAT 14 M 2

CAT 160 K 2

Wheel Loader CAT 966 H 6

Compact CAT CS-533E 1

Total (As at Mar 2013) 247

30

Future Plans

31

Acquisition of new mining

concessions

Securing new mining

services contracts

Acquisition of

additional mining

equipment

Broadening customer

base regionally

Recent Mining Concession Acquisitions

32

• Kutai Barat Regency, East Kalimantan

• 5,010ha

• 4,000 kcal/kg (GAR)

PT Kencana Wilsa

• Kutai Barat Regency, East Kalimantan

• 6,350ha

• 6,500 kcal/kg (GAR)

PT Karya Permata Prima

• Kutai Barat Regency, East Kalimantan

• 5,094ha

• 5,500 kcal/kg (GAR)

PT Central Coalindo Utama

• Kutai Barat Regency, East Kalimantan

• 4,923ha

• 5,000 – 6,500 kcal/kg (GAR)

PT Bomboy Central Prima Coal

• Kutai Barat Regency, East Kalimantan

• 4,600ha

• 7,200 kcal/kg (GAR) and Semi-Coking Coal

PT Surya Tambang Tolindo

33

Map of New Mining Concessions

1. Kencana Wilsa

2. Central Coalindo Utama

3. Bomboy Central Prima Coal

5. Surya Tambang Tolindo

4. Karya Permata Prima

34

Robust Coal Demand

Comprehensive Fleet of Mining

Equipment

Asset Owner with Potential

for Growth and Strong Local

Knowhow

Experienced Management

Team

Investment Merits

35

36

Investor Relations | Financial PR Pte Ltd | Romil SINGH, Associate Director | Jonathan THEO, Associate T: +65 6438 2990 F: +65 6438 0064 | [email protected].,sg

Appendix

37

38

Company Pictures - Operations

38

39

Company Pictures - Operations

40

Company Pictures – Machinery Fleet

41

Company Pictures – Machinery Fleet

42

Company Pictures – CSR

43

Company Pictures – CSR