Gujarat NRE Coke Ltd Investor Presentation – September 2010 ARUN KUMAR JAGATRAMKA Chairman & Managing Director September, 2010
DISCLAIMER This presentation contains only a brief overview of Gujarat NRE Coke Ltd and its associated entities (“Gujarat") and their respective activities and operations. The contents of this presentation, including matters relating to the geology of Gujarat‟s projects, may rely on various assumptions and subjective interpretations which it is not possible to detail in this presentation and which have not been subject to any independent verification. This presentation contains a number of forward-looking statements. Known and unknown risks and uncertainties, and factors outside of Gujarat‟s control, may cause the actual results, performance and achievements of Gujarat to differ materially from those expressed or implied in this presentation. To the maximum extent permitted by law, Gujarat does not warrant the accuracy, currency or completeness of the information in this presentation, nor the future performance of Gujarat, and will not be responsible for any loss or damage arising from the use of the information. The information contained in this presentation is not a substitute for detailed investigation or analysis of any particular issue. Current and potential investors and shareholders should seek independent advice before making any investment t decision in regard to Gujarat or its activities. COMPETENT PERSON STATEMENT The information in this report that relates to Mineral Resources and Reserves is based on information compiled by Mr. Kris Markowski who is a member of the Australian Institute of Mining and Metallurgy. Mr. Markowski is employed by Gujarat NRE Coking Coal Limited. Mr. Markowski 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 Competent Person as defined in the 2004 Edition of the „Australasian Code for Reporting of Exploration Results, Mineral Resources and ore Resources‟ . Mr. Markowski consents to the inclusion in the report of the matters based on his information in the form and context 2 in which it appears. ”
3 SECTION A Overview of Met Coke Demand – Supply gap
Overview of the Met Coke market Coke and coking coal prices have almost doubled in past 12 months 40% export tax levied by China since August 2008 has little likelihood of reversal – production of coke for a surplus for export is discouraged Poland, Russia, Ukraine, Japan, Colombia - Most of these sources supply to western hemisphere, where as the demand is in the eastern part With Chinese Coke away from the market, there is a likely shortage of coke from 2011 – Difficult to meet the increasing demand supply gap Quarterly pricing of coking coal from FY10 – adds a new dimension to the coke market 11 Mtpa of permanent coke capacity closures (primarily in Europe) enforced by the economic crises - adds to the market pressure
World Met Coke Outlook MTPA 900 800 700 600 500 Actual production 400 Expected demand 300 200 100 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Source :Internal company forecasts Met Coke demand is expected to rise by 150 to 200 MTPA by 2020 based on pig iron growth projections
World Met Coke Imports Source : GTIS, Internal company forecasts India is one of the top importers of Met Coke
The scenario evolving for 2010 Near absence of Chinese coke for export in 2010 30 MT of met coke demand in India in 2010 India needs to import 4 – 5 MT of coke in 2010 Declining Inventories in Europe Increase in coke rates and higher PCI usage
2011 and beyond…. Once coke trade returns to pre crisis levels of around 30 mtpa (say by 2012) – difficult to meet the shortfall of China’s 14 Mtpa export capacity Permanent closure of around 11 Mtpa coke capacity in Eastern Europe New blast furnace capacity with no associated coke plants in India and South East Asia…. Resulting into large merchant coke demand in India for pig iron, ferroalloys and soda ash Coking coal supply under pressure – Production from Mozambique and Mongolia are some years away and will come at a high price (infrastructure in these countries at nascent stage) Are we staring at a met coke shortage??
SECTION B GUJARAT NRE COKE LIMITED
A SNAPSHOT Largest independent producer of Metallurgical Coke in India Listed on the Bombay and National Stock Exchanges, with a market capitalisation of around USD 0.70 billion (No. of shareholders 1,60,000) Profit earning and dividend paying with strong financials and credit rating of AA- for long term borrowing and PR1+ for short term borrowing. Met Coke capacity 1.25 million tons, being increased to 4 million tons by 2014/15. The only Indian Company to have exported LAMC from India (to Argentina, Brazil, South Africa & Europe). Strong focus on the Environment with ISO 14001:2004 & OHSAS 18001:1999 certification Rated one of the top 10 company by 10-years profit performance in the latest edition issued by Business Today on India’s Most Valuable Companies 10
Our Presence in India 1 6 5 2 KANDLA PORT Plant at Bhachau, Gujarat 1 Plant at Khambalia, Gujarat 2 3 GOA PORT KRISHNA Plant at Dharwad, Karnataka PATNAM 4 3 PORT NEW Proposed Plant, Nayudupeta, MANGALORE Andhra Pradesh 4 PORT Registered Office, Kolkata 5 11 6 Corporate Office, Ahmedabad
GNCL OPERATIONS… Waste Heat Recovery LOW ASH Power Plants METALLURGICAL COKE HARD COKING COAL Khambhalia* 15 MW Bhachau* 15 MW (NSW, AUSTRALIA) 1.25 MMTPA Dharwad* 30 MW RESOURCES 573 MMT Total 60 MW KHAMBALIA UNIT Wind Power 87.5 MW 0.358 MILLION MTPA STEEL UNIT Gujarat NRE Coking Coal Ltd BHACHAU UNIT TMT BARS : 0.311 MMTPA (ASX: GNM) 0.324 MILLION MTPA NRE NO. 1 – 315 million tonnes NRE Wongawilli – 258 million tonnes DHARWAD UNIT Coal Washeries 0.25 MILLION MTPA Khambalia 0.75 Bhachau 0.75 (Leased) Dharwad * 0.90 DHARWAD UNIT 0. 324 MILLION MTPA In India In Australia * Under implementation 12 12
GUJARAT NRE COKE LIMITED Listed on NSE & BSE in India 100% 4.20% 23.53% Gujarat NRE Limited Pluton Resources Ltd. 7.56% 100% Exploration Pike River Coal Ltd. Wonga Coal Pty Ltd tenements in Australia 9.71% 42% Coal Mine in New Gujarat NRE Coking Coal Zealand. Coal off- Ltd take for 400,000 MTPA Listed on ASX: GNM 100% 12% Rey Resources Ltd Gujarat NRE Resources NL NRE No. 1 100% 315 MT Gujarat NRE FCGL Pty Ltd Exploration tenements in Australia, Chile NRE & Peru Wongawilli 258 MT International Operations 13 13
BOARD OF DIRECTORS The main promoter of GNCL. Has more than five decades of business experience Mr. Girdharilal Jagatramka Chairman Emeritus 25 years of professional and management experience All India 1st rank gold medalist Chartered Accountant Director of Pike River, Port Kembla Coal Terminal, NSW Mineral Council and Australian Coal Research Association Arun Kumar Jagatramka Appointed as an honorary NSW Sydney Ambassador to India Chairman & Managing Director 10 years of experience in management and administration Active in the management & human resources for Gujarat NRE Group Also on the board of Gujarat NRE Coking Coal Limited Mrs. Mona Jagatramka Non-Executive Director More than 32 years of experience in the field of Organisational Management, Business Planning, Operational and Commercial Functions in reputed Industrial Houses of India. Mr. Rajendra Prasad Jain Executive Director 14
BOARD OF DIRECTORS (contd..) Former President of ICSI At present on the Board of Nirma Ltd., Adani Power Ltd., Cadila Pharmaceuticals Ltd., Apollo Hospitals International Ltd., Gujarat State Electricity Corpn. Ltd., etc. Mr. Chinubhai R Shah Also the Chairman of India Renal Foundation. Non-Executive Director Former CMD of IIBI Former Executive Director of UTI Mutual Fund. Holds directorship of various reputed Listed Companies viz. ITC Ltd., South Asian Petrochem Ltd., etc. Dr. Basudeb Sen Non-Executive Director Leading medical practioner Past District Governor of Lions Club International Dr. Mahendra Kumar Loyalka Non-Executive Director Former CMD of Kudermukh Iron Ore Company Ltd. Presently on the Board of Coal India Ltd. Mr. Murari Sananguly Non-Executive Director Eminent Chartered Accountant Presently Member of Central Council of ICAI. Chairman, Committee for members in Industry (ICAI) Mr. Subodh Kumar Agrawal 15 Non-Executive Director
SHAREHOLDING PATTERN 47% 25% Sl. Particulars % of No. Holding 1 Promoter Group 47.05 2 Banks, Mutual Funds & 28.25 28% FIIs Promoter Group 3 Indian Public and others 24.70 Banks, Mutual Funds & FIIs Total 100.00 Indian Public & Others Listed on BSE & NSE Script Code: • For Ordinary Equity Shares: BSE – 512579 ; NSE - GUJNRECOKE ISIN no. - INE110D01013 • For B Equity Shares (DVR Shares) : BSE – 570003; NSE - GUJNREDVR ISIN no. - IN9110D01011 Face Value : Rs. 10 per share Market Capitalization: Approx USD 0.70 Billion 16
Recommend
More recommend
