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White Energy
Company Limited
June 2008
Table Of Contents
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Section 1 – Introduction
Section 2 ‐ World Coal Markets
Section 3 ‐ The White Energy Technology
Section 4 ‐ The White Energy Platform
Page 2
White Energy is a Low Cost Coal Producer
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White Energy is a low cost coal producer with a unique
and commercially viable technology that upgrades low
quality coal to a high value product through a low cost
production process.
Page 3
Company Snapshot
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• ASX: WEC / USA ‐ OTC: WECFY.PK
• Shares: 128.0 M / Options: 43.9 M / Fully diluted*: 171.9 M
• Share price @ 30 May 08: ASX A$3.25 / USA ‐ OTC: US$ 12.45
• 52 week range: ASX A$2.10 to A$3.30 (US$2.01 to US$ 3.16)
USA ‐ OTC US$11.00 to US$14.50
• Equity market capitalization: A$559 M (US$536 M) on fully diluted basis
• Available funds: A$41 M (US$38 M) + US$25 M in BHP Billiton converting note facility
• Corporate headquarters: Sydney, Australia; offices in Indonesia, China and USA
• Public since: March 2005
• Insider ownership: 34% of shares outstanding
Note: * Assumes all notes are not converted. If all notes converted, market cap = A$601 M (US$577 M). Exchange Rate A$1.00 = US$0.9596.
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Financial Snapshot
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Consolidated Balance Sheet
(A$000’s) 31 Dec 2007 30 Jun 2007 30 Jun 2006
Current Assets 56,769 18,411 6,700
Non Current Assets 75,251 67,482 59,126
Total Assets 132,021 85,892 65,826
Total Liabilities* 60,119 8,423 4,411
Net Assets 71,902 77,469 61,415
Total Equity 71,902 77,469 61,415
Consolidated Statement of Cash Flows
(A$000’s) 31 Mar 2008 31 Dec 2007 FY2007 FY2006
Net Cash (outflows) from Operating Activities (1,235) (2,594) (1,301) (769)
Net Cash (outflows) from Investing Activities (7,272) (2,487) (12,700) (1,518)
Net Cash (outflows) from Financing Activities 11,695 45,234 22,509 5,902
Net Increase (decrease) in cash & equivalents 3,188 40,153 8,508 3,615
Closing Cash & Cash Equivalents 49,480** 55,225 15,072 6,564
* Includes the A$45M convertible notes issued in October 2007; the notes are convertible into ordinary shares at A$3.44 per share
** Does not include consolidation of Indonesian JV cash balance reported only in annual statutory accounts and not in quarterly reports
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Significant Spread Between
Buy And Sell Coal Prices
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• White Energy’s process upgrades sub‐bituminous coal to bituminous quality
Historical Coal Prices USA • Sub‐bituminous feedstock coal cost per
upgraded tonne: US$11‐14
$100.00
• Processing cost per tonne: US$4.50
$90.00
$80.00
• Capital cost per tonne (assuming 20 years
Thermal Bituminous Coal
plant life): US$2.25
$70.00
• Handling / transport / maintenance cost
$60.00 per tonne: US$14
$ US/ton
$50.00 • Margin per tonne: US$25‐98
$40.00
$30.00
$20.00
Sub‐bituminous Coal
$10.00
$‐
Jan‐05 Jul‐05 Jan‐06 Jul‐06 Jan‐07 Jul‐07 Jan‐08
Source: Ventyx, Velocity Suite
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Table Of Contents
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Section 1 – Introduction
Section 2 ‐ World Coal Markets
Section 3 ‐ The White Energy Technology
Section 4 ‐ The White Energy Platform
Page 7
World Coal Markets
Drivers
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• Rapidly growing coal demand: Global coal demand is expected to grow
significantly through 2030, particularly from the fast growing economies of
China and India.
• New crude oil paradigm placing upward pressure on competitive fuels: Rising
crude oil pricing is increasing demand for cheaper, indigenous fossil fuels.
• Deliverability of high quality coals is declining: In both North America and Asia,
production of high thermal value / low emission coal is declining.
• Increasing global emphasis on emissions reductions: Across the globe,
emissions of CO2, SOx, NOx and Hg are coming under increased regulation. Coal
is a vital resource option for meeting the world’s sustainable energy needs.
Page 8
Issues Facing The Coal Industry
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Coal is the lowest cost and most easily accessed energy source in the world,
however several issues reduce its attractiveness as a future energy source.
• CO2 release: Combustion of coal releases CO2 and inefficient use could have
global climatic impact.
• Pollutants: Many traditionally utilized coals are major sources of pollutants
such as SO2 and NOx.
• Coal quality: The world has very large reserves of coals that are low in
pollutants like sulphur and ash but are not exploited because of their low
energy and transportation economics.
• Coal dust: In some regions (e.g. USA) dust from coal transportation and
handling is a major environmental, economic and logistical problem.
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Table Of Contents
For personal use only
Section 1 – Introduction
Section 2 ‐ World Coal Markets
Section 3 ‐ The White Energy Technology
Section 4 ‐ The White Energy Platform
Page 10
The White Energy Technology
Benefits
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• Higher energy content: increases heat, the useable energy content, by between 30% and
200%, creating valuable power generation efficiencies.
• Mechanical process: a mechanical process that is designed to work at coal mines, not a
complex chemical process.
• Low upgrading costs: favorable conversion economics allow the product to compete with
bituminous coals.
• Lower spontaneous combustion risk: upgraded coal is physically and chemically stable, and
can be handled, stored and transported as normal coal.
• Lower transportation costs: process reduces moisture, resulting in up to 30% decrease in
load volumes and concomitant transportation costs.
• Reduced greenhouse gas and pollutant emissions: more efficient burning results in lower
CO2, SO2, NOx and Hg emissions.
• Reduced levels of dust: significantly reduces the quantity of dust when compared with
unprocessed sub‐bituminous coal.
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A Five Step Process – Simple And
Mechanical
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Briquette
Combustor
Combustor fines
STAGE 2 Gas Generator
Gas Generator Power for
For Drying
For Drying briquetting
Hot
Gas
STAGE 1 STAGE 4
Raw coal Dry
Raw Coal coal
ROM Raw Coal Drying Briquette
Storage & Drying Briquette
Storage & Sized Process Presses
Crushing Process Presses
Crushing raw
coal Mix of
STAGE 3
briquettes
and flash
Briquette
Briquette
Storage &
Storage &
Reclamation
Reclamation
STAGE 5
Briquetted product put through
small surge bin in preparation for
transport and delivery to customer
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Characteristics Of White Energy’s
Upgraded Coal
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Sub‐bituminous coal upgraded by White Energy compares very favorably with
higher priced bituminous coal
Parameter Sub‐bituminous White Energy Australian Bituminous Coal
Coal Upgraded Coal 14% ash
Boiler Efficiency (%) 85.3 89.4 89.5
Parasitic Load (%) 6.4 5.7 5.9
Overall Efficiency (%) 34.1 36.3 Compare 36.1
NOx (mg/Nm3) 284 280 454
SOx (mg/Nm3) 223 169 1404
Ash Generation (Kg/MWh) 21.3 17.3 57.6
Source: BHP Billiton 2007
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Table Of Contents
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Section 1 – Introduction
Section 2 ‐ World Coal Markets
Section 3 ‐ The White Energy Technology
Section 4 ‐ The White Energy Platform
Page 14
Building a Global Footprint
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White Energy
White Energy
Company
Company
Indonesia
Indonesia China
China North America
North America Africa
Africa
JV Bayan JV Datang JV NRG / Kiewit Assessing opportunities
Resources (KSC) with both coal miners
Assessing synthetic gas and power utilities
JV Adaro‐Itochu opportunities
Assessing further opportunities with both coal miners and power utilities
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Attractive Economic Returns
Indonesian JV Example
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US$ Per Metric Tonne Basis
Core Plant Capital Cost 3 ‐ US$30 M
Input cost feedstock per tonne $8.00 $9.00 $10.00
4
Site Prep ‐ US$15 M Input cost feedstock per upgraded tonne 1 $11.20 $12.60 $14.00
Processing cost $4.50 $4.50 $4.50
Total Capital Cost ‐ US$45 M
Core plant capital & site prep cost 5 $2.25 $2.25 $2.25
5
Life of Plant ‐ 20 years Handling / transport / maintenance 2 $14.00 $14.00 $14.00
Total cost $31.95 $33.35 $34.75
Value Arbitrage per Tonne of Upgraded Coal Sensitivity Table US$
Selling value of Value arbitrage per tonne at cost of 1. 1.4 million tonnes of feedstock coal is required to
upgraded coal $8.00 $9.00 $10.00 produce 1 million upgraded tonnes of briquettes.
$60.00 $28.05 $26.65 $25.25
2. Maintenance portion approx. US$500K per year.
$70.00 $38.05 $36.65 $35.25
$80.00 $48.05 $46.65 $45.25
3. Includes core production module for feedstock
$90.00 $58.05 $56.65 $55.25
with moisture content up to 35%.
$100.00 $68.05 $66.65 $65.25 4. Total site prep capital costs is completely site
$110.00 $78.05 $76.65 $75.25 dependent and can vary significantly.
$120.00 $88.05 $86.65 $85.25
5. Plant is assumed to be depreciated over 20 years.
$130.00 $98.05 $96.65 $95.25
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Joint Venture Economics Per Tonne – 51% ownership
Standard Indonesian JV 1 MTPA Module
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JV Returns
Standard JV Example US $ / Tonne
WEC Returns
US $ / Tonne
Revenues
Selling value upgraded coal * $100.00
Costs
Input cost feedstock per upgraded tonne $12.90
Processing cost $4.50
Core plant capital & site prep cost $2.25
Handling / transport / maintenance $14.00
Royalties, license and plant O&M fees $9.00 100 % $9.00
JV profit $57.35 51 % $29.24
Total WEC returns $38.24
WEC Capital Cost
US $ / Tonne
JV plant capex / related site infrastructure $45.0 51 % $22.95
(one‐off)
* Current market spot price = US$125.
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Building A Global Business
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• Bayan Resources (Indonesia): Currently building first 1MTPA plant at the Tabang coal
mine in Indonesia with production capacity growing to 5MTPA. Bayan agreed to acquire
up to 1.5 MTPA from the JV for five years representing over US$250M in revenue.
• Adaro Group / Itochu Corporation (Indonesia): Processing of Adaro coal about to
commence at Cessnock Production Plant, awaiting results of pre‐production feasibility
work, set to build the first of 8MTPA plants at Adaro’s East Kalimantan mine in 2009.
• Datang International Power (China): Financial feasibility about to conclude, set to agree
holding structure issues for a JV with Datang to build the first of 10MTPA plants at
Datang’s sub‐bituminous coal mine in Inner Mongolia, China.
• NRG / Kiewit (USA): Development Agreement signed with NRG Energy and Buckskin
Mining Company (Kiewit Corporation). Initial development envisages a 1MTPA plant built
in the Powder River Basin and, if successful, growing to 8MTPA capacity.
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Cessnock Production Plant
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• Project completion: Construction and cut down of the 90,000
tonne per annum Cessnock Production Plant is now complete
and has been built on schedule and within budget (A$9.5 M).
• Commissioning: Program has commenced during which 500
tonnes of feedstock coal will be processed to ensure optimal
functioning of the plant prior to full production. The Cessnock
Plant to then be utilized for commercial production purposes.
• Combustion testing and trial: White Energy plans to upgrade
significant quantities of feedstock coal through the Cessnock
Plant over the next few months which will then be sold to
Asian based power utilities for combustion test and trial burn
purposes.
• Ongoing development: The Cessnock Plant will also be used
for further research and development purposes and will be an
important training facility.
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Management Team
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• John Atkinson: Managing Director
• Travers Duncan: Oversees Construction and
Operations Activities
• Ivan Maras: Chief Financial Officer
• Darron Hitchings: General Manager ‐ Operations
• John Langley: Director of Business Development
• Keith Clark: Director of Technology
Page 20
Why Invest In White Energy?
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• White Energy is a low cost coal producer with a
unique and commercially viable technology.
• White Energy upgrades low quality coal to a high
value product through a low cost production
process.
• White Energy’s upgraded product is easy to
handle and transport, burns efficiently and has
significant environmental benefits.
• White Energy’s process creates a significant
spread between the buy price of sub‐bituminous
feedstock coal and sell price of upgraded
bituminous‐like coal.
• White Energy has capable, incentivized
management.
• High‐growth investment opportunity with near
term revenue generation.
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Forward Looking Statements
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Except for the historical information contained herein, the matters discussed in this
presentation contain forward‐looking statements, including statements, containing the
words “planned”, “expects”, “believes”, “strategy”, “opportunity”, “anticipates”, and
similar words. Such forward‐looking statements are subject to known and unknown
risks, uncertainties, or other factors that may cause the company’s actual results to be
materially different from historical results or any results expressed or implied by such
forward‐looking statements. We assume no obligation to update any forward‐looking
statements to reflect events or circumstances arising after the date hereof. In addition
where comparisons are made between White Energy Company and other companies,
we have made best efforts to properly interpret publicly made information by these
companies but cannot be certain that such comparisons are completely accurate.
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