Becoming Colombia’s Leading Independent Coal Producer
June 2012
TSXV: PAK
Disclaimer
Forward Looking Statement
This presentation contains certain “forward-looking statements” and “forward-looking information” under applicable Canadian securities laws concerning the business, operations
and financial performance and condition of Pacific Coal, S.A. Forward-looking statements and forward-looking information include, but are not limited to, statements with respect
to business plans and strategies of Pacific Coal; information with respect to the proposed subscription receipt financing of Pacific Coal; estimated production of the various projects
of Pacific Coal; the benefits of the acquisitions and the development potential of properties of Pacific Coal; the future price of coal; estimates regarding mineralization and
exploration results; the ability of Pacific Coal to achieve mining success consistent with management’s expectations; and expected levels of royalty rates, operating costs, and other
costs and expenses. Undue reliance should not be placed on forward-looking statements, which are inherently uncertain, are based on estimates and assumptions, and are subject
to known and unknown risks and uncertainties (both general and specific) that contribute to the possibility that the future events or circumstances contemplated by the forwardlooking statements will not occur. There can be no assurance that the plans, intentions or expectations upon which forward-looking statements are based will in fact be realized.
Actual results will differ, and the difference may be material and adverse to the Corporation and its shareholders.
All statements other than statements of historical fact are forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as
“anticipate”, “believe”, “could”, “estimate”, “expect”, “forecast”, “guidance”, “intend”, “may”, “plan”, “predict”, “project”, “should”, “target”, “vision”, “will”, or similar words
suggesting future outcomes or language suggesting an outlook. Forward looking statements are based on the opinions and estimates of management at the date the statements are
made, as well as a number of assumptions made by, and information currently available to, the Corporation concerning, among other things, Pacific Coal’s ability to successfully
complete the proposed subscription receipt financing; anticipated geological, operational and financial performance, business prospects, strategies, regulatory developments, future
commodity prices, future production levels of the Corporation’s assets, the ability to obtain financing on acceptable terms, the timely receipt of any required approvals and that
there will be no significant events occurring outside of Pacific Coal’s normal course of business. Although management considers these assumptions to be reasonable based on
information currently available to it, they may prove to be incorrect. Factors that could cause actual results to vary materially from results anticipated by such forward-looking
statements include changes in market conditions, risks relating to international operations, fluctuating coal prices and currency exchange rates, changes in project parameters, the
possibility of project cost overruns or unanticipated costs and expenses, labour disputes and other risks of the mining industry, failure of equipment or processes to operate as
anticipated, and acquisitions not being integrated successfully or such integration proving more difficult, time consuming or costly than expected. Although Pacific Coal has
attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be
other factors that cause actions, events or results not to be anticipated, estimated or intended. Pacific Coal undertakes no obligation to update forward-looking statements if
circumstances or management’s estimates or opinions should change except as required by applicable securities laws.
This presentation uses the terms “measured”, “indicated”, and/or “inferred” mineral resources. United States investors are advised that while such terms are recognized by
Canadian regulations, the United States Securities and Exchange Commission does not recognize them. Unites States investors are cautioned not to assume that all or any part of
mineral resources will ever be converted into mineral reserves. Inferred mineral resources have a great amount of uncertainty as to their existence, and as to their economic and
legal feasibility. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. Under Canadian rules, estimates of inferred
mineral resources may not form the basis of feasibility or other economic studies. United States investors are cautioned not to assume that all or any part of an inferred mineral
resource exists, or is economically or legally mineable.
1
Vision
 Explore, expand and develop existing producing assets to increase efficiencies, reserves and
production, while securing infrastructure capacity to capture all aspects of the value chain
 Seek opportunities to secure access to markets and ensure commercial flexibility
 Foster a culture of citizenship and
environmentally responsible stewardship
Pacific Coal is on track to produce
2.0 Mt of thermal coal in 2012
The Company has a compelling portfolio
of high quality producing assets:
 La Caypa (thermal coal)
 Cerro Largo (thermal coal)
 CI Jam (coke)
Cerro Largo Mine
2
Strategy
Vertical integration to secure market access in value-added product streams
RAW MATERIAL
PRODUCTION
(UPSTREAM)
MANUFACTURING/
PROCESSING
(MIDSTREAM)
RETAIL/MARKETING
(DOWNSTREAM)
• La Caypa – thermal coal
• Cerro Largo – thermal coal
• CI Jam – hard coking coal
• La Tigra – asphaltite
• 100% ownership and control
of La Caypa, Cerro Largo and
La Tigra
• Company owns 92% of CI
Jam, and controls 100%
• Upgraded coke production
• Colloidal coal in water (“CCW”)*
• Colloidal asphaltite in water (“CAW”)*
• Pyrolysis
CAW/CCW plant
• 50% equity interest
• Carried interest for
50/50 JV
Pyrolysis plant
• 100% equity interest
• Not yet constructed
• Pyrolysis is a proven
procedure
1. Marketing of thermal coal
2. Marketing of coke
3. Marketing of colloidal products to:
• Power generation plants
• Heavy oil producing companies and refineries
*CAW and CCW are technologies being developed by Blue ACF, a company in which PAK has a 5% equity interest, with the right to increase its
investment to 20% pending successful trials. Blue ACF received exclusive US Patent for CCW Technology in May 2012.
3
Asset Summary
Diverse Portfolio of High Quality Coal Assets
Well-positioned portfolio with diversified current and future production of steam coal, coke and asphaltite
Asset
Type
1
La Caypa
Open pit steam coal
mine with
underground potential
2
Cerro Largo
Open pit steam coal
mine
CI Jam
Underground coking
coal mine upgrading
to coke
3
Stage
Current
Production*
Producing
185 Kt
(Coal)
Producing
132 Kt
(Coal)
11
2
4
Medellin
Producing
(ramp-up)
10 kt
(Coke)
Bogota
3
Cali
4
La Tigra
Asphaltite
Exploration/
Development
Start mid2013
5
Barranquilla Port
Port concession for
coke export
Development
-
Source: Management estimates
*Q1 2012 numbers
Puerto Brisa
Port of Santa Marta
Port Barranquilla 5
4
Thermal Coal Production Profile
Robust production growth from existing assets with additional greenfield and consolidation opportunities
3.4-3.6
Annual Production (millions of tonnes)
Total Production
Cerro Largo
La Caypa
2.7-2.9
2.2
2.0
1.4
1.2
2010A
2011A
2012E
Source: Management estimates
*Includes total production from Cerro Largo Q1/2011, before the acquisition closed
2013E
2014E
5
La Caypa Mine
Significant Thermal Coal Production
High quality steam coal production with attractive expansion and underground potential
Location:
• Guajira Department, Colombia
• Adjacent to Carbones del Cerrejón mine, largest coal mine in South
America
Resource estimate:
• 47.0 Mt of measured resource (1)
• 17.8 Mt of indicated resource (1)
Area:
• 300 hectares
Average BTU:
• 12,264
Average Sulphur:
• 0.69%
Operations:
• One open-pit mine currently operating
₋ South pit expansion in development with expected start-up in 2012
and potential production of additional 1.0 Mtpa
• One underground mine in exploration, expected development in 2013
2011 Production
• 1,239,583 t
2012E Production
• Approx. 1,300,000 t (4)
Projected Costs (2):
• US$85/t (4)
Avg Contract Price:
• US$100/t in long-term contracts for 100% of production to 2013
Infrastructure:
• Secured allocation at Santa Marta (250 km)
• Expected additional capacity at Puerto Brisa, mid-2013, reducing
freight costs by 40%-50%
Current strip ratio:
• 8.75:1 (Q1 2012)
(1)
(2)
(3)
(4)
(1)
(1)
(1)
LA CAYPA – COAL CHARACTERISTICS
(1)
Year Moisture % Ash % Sulphur % CV Btu/lb
2009
10.11
5.78
0.69
12,264
RESERVES & RESOURCES (1)
LA CAYPA - (Inclusive of Additional Resources)
Surface (Mt) Underground (Mt)
Measured
11.2
35.8
Indicated
17.8
Source: Report titled “NI 43-101 Compliant Technical Report, La Caypa Mine, Department of Guajira, Colombia” prepared by SRK Consulting and dated November 1, 2010
Includes transportation, port, and administrative costs
Includes South Pit development at La Caypa
Management Estimate
6
La Caypa Mine Operations
Increasing production and improving strip ratios
La Caypa 2012 Estimated Coal Production (kt)
2012 La Caypa production forecasted to
rise from 1.23 Mt to approx. 1.3 Mt
250
200
Coal Production
(Thousand Tonnes) 2012 Actual & Forecast
(Total: 1.389 Mt)
150
Organic growth in 2012 and 2013 driven by:
100
 Expansion of South Pit (2012)
 Underground mining (2013)
50
Dec
Nov
Oct
Sep
Aug
Jul
Jun
May
Apr
Mar
Feb
La Caypa 2012 Estimated Stripping Ratio*
(1)
15
10
La Caypa 2012 Estimated
Operational Stripping
Ratio (Total Year: 7.1:1)
5
Dec
Nov
Oct
Sep
Aug
Jul
Jun
May
Apr
Mar
Feb
0
Jan
Stripping Ratio: waste : production
Jan
0
Source: Management estimates
* Does not include South Pit – total waste (tonnes) estimated for 2012: 2,516,505
7
La Caypa Mine
South Pit Expansion to Extend Mine Life in 2012
Potential incremental production of 1.0 Mt per annum
 Extension of existing open pit to south of highwall with same premium coal characteristics
as the primary pit with a similar CV Btu/lb
 Straightforward integration into existing mining operations
 Expected production start-up in 2012 with all permits in hand
 South pit measured and indicated resources of 7.7 Mt(1)
 South pit development to be concurrent with existing mining operations
SECTOR +400
(1) Report titled “NI 43-101 Compliant Technical Report, La Caypa Mine, Department of Guajira, Colombia” prepared by SRK Consulting and dated November 1, 2010
8
La Caypa Mine
Underground Production to Drive Growth in 2013
Underground potential to drive resource expansion and continued growth in production(1)
 Mine planning underway based on 16 coal seams showing consistent thicknesses suitable for underground mining (average
thickness ranging from 2.3 metres to 6.8 metres)
 Measured and indicated resource of 53.6 Mt (1)
 Potential thermal coal production to increase 0.8 – 1.0 Mtpa expected to commence in 2013
 Existing pit provides underground access point with three contemplated levels to depth of 240 metres from pit bottom
 Studies underway to determine optimum mining method and design; potential to become the largest underground coal
operation in Colombia
EXISTING OPEN PIT
ELEVATION: 0
ELEVATION: -150
ELEVATION: -300
Level 1
Cradle
Level 1
Level 2
(1) Source: Report titled “NI 43-101 Compliant Technical Report, La Caypa Mine, Department of Guajira, Colombia” prepared by SRK Consulting and dated November 1, 2010 and management projections
9
Cerro Largo – La Divisa
Acquisition of Significant Coal Production
Contains high volatile bituminous type B coal with high calorific values and low sulphur
Location:
•
•
Cesar Department, Colombia in the La Jagua de
Ibirico coalfield
Adjacent to licences owned by Drummond and
Vale. Glencore is currently operating an open-pit
mine on the adjacent La Jagua sector
Resource estimate:
•
11.6 Mt – 21.2 Mt inferred
Area:
•
488 hectares
Average BTU:
•
12,000
Average Sulphur:
•
0.78%
Operations:
•
One open-pit mine currently operating
Projected Costs (2):
•
US$90/t, expected to lower US$2/year
with improved efficiencies and strip ratio (3)
Q1 2012 Production
•
131,895 t*
2012E Production
•
700,000 t (3)
Infrastructure:
•
•
Secured allocation at Santa Marta (250 km)
Expected additional capacity at Puerto Brisa in
mid-2013, reducing freight costs by 30%-40%
Current strip ratio:
•
•
16.19:1 (Q1 2012) (during ramp up)
Long-term mine plan has been implemented
(1)
(1)
(1)
(1) Source: Report titled “Independent Technical Report, Cerro Largo Mine” prepared by SRK Consulting and dated February 2011
(2) Includes transportation, port, and administrative costs
* Q1/2011 production of Cerro Largo was prior to Pacific Coal acquisition
(3)
Management Estimate
10
Cerro Largo – La Divisa
Increasing production and improving strip ratio
Cerro Largo 2012 Estimated Coal Production
(kt)
150
Coal Production
(Thousand Tonnes) 2012 Actual & Forecast
(Total: 0.7 Mt)
100
50
Dec
Nov
Oct
Sep
Aug
Jul
Jun
May
Apr
Mar
Feb
Cerro Largo 2012 Estimated Stripping Ratio
2012 Cerro Largo production expected
to rise from 298kt to approx. 700kt
40
30
Cerro Largo 2012
Estimated Operational
Stripping Ratio (Total
Year: 13.5:1)
20
10
Dec
Nov
Oct
Sep
Aug
Jul
Jun
May
Apr
Mar
Feb
0
Jan
Stripping Ratio: waste : production
Jan
0
Production increase and lower strip ratios
due to:
 New integrated mine plan
 Commissioning additional mining
equipment
Source: Management estimates
11
Coke Production Profile
 Operational adjustments during the
first year of operations resulted in
reduced production for 2011 (7,256 t
of coke produced in Q4 2011)
 These adjustments also allowed for
infrastructure and capacity to be built
up, resulting in longer-term production
targets being achieved sooner
Ramp-up in progress
 10,547 t of coke produced during
Q1 2012
Annual Production in tonnes
High value coke operation with long mine life and coal to coke conversion of ~70%
90,000120,000
90,000120,000
2013E
2014E
CI Jam
60,00072,000
7,256
 Expected coke production in
2012: 60,000 – 72,000 t
2010A
2011A
2012E
Source: Management estimates
12
CI Jam
Coking Coal and Upgraded Coke Production
Underground coking coal operation selling premium coke into high price environment
Location:
•
•
Samaca Municipality, in Department of Boyaca
3,000 small HCC producers in the area
Resource estimate:
•
2.8 Mt in situ
Area:
•
52 hectares
Average BTU:
•
13,800 with coking properties (1)
Average Sulphur:
•
0.92%
Operations:
•
•
Underground coking coal
Upgrading coking coal to coke
Projected Costs (2) :
•
US$210/t (3)
2011 Production:
•
7,000 tonnes of coke
2012E Production
•
60,000 – 72,000 tonnes of coke (3)
2012E Avg Budget Price:
•
US$270/t (3)
Infrastructure:
•
Well maintained roads to truck coke to domestic markets and
to port terminals (800 km to Barranquilla)
Status:
•
•
Completed refurbishment of 160 beehive coking ovens
Completed refurbishment of coker infrastructure
(1)
(1)
(1) Source: Report titled “SRK Technical Report Written To Be Compliant With NI 43-101 On Contract 7241, Boyaca, Colombia” prepared by SRK Consulting and dated August 2010
(2) Includes transportation, port, and administrative costs
(3) Management Estimate
13
Regional Infrastructure
Proximity to Infrastructure Supporting Growth
Significant port and road infrastructure in place to support existing regional coal production
 Secured a minimum of 1.8 Mtpa of
stockpiling and shipping capacity at the
Port of Santa Marta until 2013
Puerto Bolivar
Port of Santa Marta Puerto Brisa
Barranquilla
Port
 Production trucked 250 km by paved
highway to Santa Marta at a cost of
approximately US$20-$23 per tonne
from La Caypa and 280 km from Cerro
Largo at a cost of approximately
US$23-US$24
La Caypa
Barranquilla
Cartagena
Cartagena Port
Cerro Largo
Panama
Venezuela
Colombia
 Expected capacity at Puerto Brisa
provides alternative port location closer
to both La Caypa and Cerro Largo with
potential to reduce freight costs by 40%50% and by 30%-40%, respectively
 Puerto Brisa construction
expected to be completed by
Q1/2013, providing additional
35 Mt of specialized coal
shipping capacity
La Tigra
CI Jam
Legend
River Transport
Coal Mine
Coal/Asphaltite Project
Road
Ports
14
Port of Barranquilla
Investing in Long-Term Port Access for Coke
 Pacific Coal acquired a port concession situated on the Magdelena River near the Port of Barranquilla (approximately 5km from the
Caribbean Sea) to be used to export coke, specialized coals, and bulk commodity products. Excess capacity at the port can be
monetized by selling to other exporters
 Pacific Coal plans to tender for engineering, construction and procurement by Q2/2012, expecting to have an early start on coal loading
operations with a provisional set-up for Q3/2012
Main features of the final proposed scheme:
 Two portable shiploaders
 A pile supported concrete berth with 12 m water depth
 Portable Stacker
 Coal/Coke piles
BARRANQUILLA
CONCESSION
 Reclaim conveyor alongside the open stockpiles
 Office/Maintenance building
 FEL receiving hopper (rail mounted)
 Overall average loading capacity of
approximately 10,000 tonnes per day
BARRANQUILLA
CONCESSION
15
La Tigra – Asphaltite
Profile
Asphaltites are species of bitumen, dark-colored, comparatively hard
and non-volatile solids, composed principally of hydrocarbons.
Gilsonite
As of today in the La Tigra area, there is evidence for the presence of
two different types of asphaltite: Grahamite and Gilsonite.
Management expects a significant resource at La Tigra to be confirmed
with a National Instrument 43-101 compliant report – physical
evidence on outcrops, oil seeps and 3 mines already in production in
the area lead to optimistic forecasts on the existence of important
asphaltite reserves.
Grahamite
Location of La Tigra:
•
80 km from Barrancabermeja
Area:
•
5,700 hectares
Operations:
•
Geophysical, metalotelluric, and gravimetric studies are in progress;
results expected Q3 2012
Production start planned for mid-2013
•
Infrastructure:
•
•
La Tigra outcrop
70 km from Bucaramanga with paved roads between Bucaramanga and
San Alberto
80 km from Barrancabermeja, the centre for petroleum refining and a port
on the Magdalena River
16
La Tigra’s Asphaltite Applications
Proven Applications
Asphalt modifiers
•
Oil drilling and mud additive
•
Metal casings
•
Paving/roofing asphalts
•
Paint resins
Pyrolysis
•
High margin application, potential for substantial volumes
•
Converts asphaltite to valuable liquid and gas products, and
pet coke
•
Pet coke is a by-product produced through pyrolysis
•
Prefeasibility study indicates excellent economics based on
lab tests conducted with Colombia grahamite and gilsonite
•
Feasibility study in progress in order to select the specific
technology and to conduct pilot plant tests (100% PAK)
Experimental Pyrolysis Products
Applications in Evaluation Phase
Colloidal Asphaltite in Water (“CAW”)
•
Crushed asphaltite, suspended in water forming a colloid, can
be used as fuel by power generators
•
PAK and Blue ACF are in the process of developing a pilot
plant test for CAW at Babcock & Wilcox facilities in USA
•
Significant marketing opportunities as CAW can be sold as a
fuel oil substitute
•
Management foresees strong market demand for CAW in
Central America and the Caribbean
Colloidal Coal in Water (“CCW”)
•
Similar to CAW, but using coal instead of asphaltite
•
Blue ACF CCW trials at Babcock & Wilcox ongoing
•
In May 2012 Blue ACF received exclusive rights to the patent
for “nano-dispersions of coal in water as the basis of fuel
related technologies and methods of making same”
•
Blue ACF has a 36-month exclusivity period related to any
vehicle developed by Blue ACF for applications of the patent
using coal and asphaltite
•
PAK has 50% investment option in the development of CCW
and CAW plants
CCW Trial
17
Pacific Coal
Health, Safety, Environment, and Community
• La Caypa mine named as an example of environmental best practice by SGS at the 8 th Annual International Mining Congress
Health and Safety Mission: Achieve Health and Safety goals through stewardship, integrity, and empowerment
The Company seeks to continuously reduce the number of workplace and operational safety incidents, with the ultimate
goal of achieving the lowest accident frequency rates in the industry
• The Company strives for eco-friendly operations wherever possible, by forming strategic alliances with environmental
corporations
• The Company seeks to work with partners with high health and safety policies and standards
• The Company encourages its employees to participate actively in safety initiatives and prevention programs
• All of our employees take part in our community health programs as both volunteers and patients
• The Company maintains weekly updates of its safety performance indicators
Community Mission: Maximize shareholder value while fostering a corporate environment of responsible
citizenship and respecting the interests of our stakeholders and members of the communities in which we operate
• The Company aligns its initiatives with the needs and activities of local governments, to contribute to the nation’s progress
• The Company works closely with non-profit organizations to maximize its community efforts
• The Company ensures responsible operations by minimizing wherever possible its impact on the environment
18
Capital Structure

Pacific Coal became a publicly listed company via RTO on March 14, 2011, making the Company the
only independent, public coal producer in Colombia

Fully leveraged to rising interest in Colombian coal

Strong sponsorship and institutional investor support

As at April 13, 2012, 11.1 million shares had been purchased for cancellation under the normal
course issuer bid
Pacific Coal (TSXV: PAK)
(1)
Shares outstanding:
322.1 million
Options (vested & exercisable)
35.8 million
Warrants outstanding with weighted avg. exercise price of $2.10(1)
75.1 million
Fully diluted:
433.0 million
Market cap (basic):
Cash (March 31, 2012)
Long-term debt (3) (March 31, 2012)
Enterprise value
$61.2 million (2)
$4.2 million
$38.9 million
$96.0 million
Expiry date March 14, 2016
on closing price of $0.19 on 06/08/2012
Includes finance leases
(2) Based
(3)
19
Pacific Coal
Achievement Scorecard
Achieved
O
Completion of amended NI 43-101 at La Caypa and Cerro Largo
Commencement of development of south pit expansion /
Commencement surface work for underground at La Caypa
Implementation of integrated mine plan at Cerro Largo



Transition from Port of Santa Marta to Puerto Brisa, reducing freight
costs by 30%-50%
Completion of refurbishment of 160 beehive coking ovens at CI Jam
Commencement of exploration at La Tigra
In Progress
O


Completion of NI 43-101 on La Tigra
O
Development of Port of Barranquilla
O
CAW tests and trials
CCW tests and trials

O
20
Pacific Coal
Summary
Strategically located, high-quality projects in a world-class jurisdiction with significant growth potential
 High-grade material of which global supply is permanently depleting and thus carrying premiums
 High-quality coal characteristics – high BTU, low moisture, low ash, low sulphur
 Access to international markets via ports – improving efficiencies and cost reductions
 Opportunities to develop projects to access growth markets such as coking coal and colloidal fuels
21
Executive Management
Strong and Experienced Team
Luis Arturo Carvajales – Chief Executive Officer

More than 20 years of experience in the mining industry, holding management positions in marketing, sales, logistics, and serving
as legal counsel

Most recently President / Legal Representative of Carbones Colombianos del Cerrejon S.A.
Miguel Velasquez – Chief Financial Officer

Over 25 years experience as Finance & Administrative Manager for companies in Colombia and at Colombian branches of Canadian
companies
Peter Volk – General Counsel

Mr.Volk has acted as General Counsel and Secretary of several Canadian public companies including PetroMagdalena Energy Corp.,
Pacific Rubiales Energy Corp., Gran Colombia Gold Corp., and Bolivar Gold Corp.
22
APPENDIX
23
Colombia
A World-Class Coal District
LA GUAJIRA DEPARTMENT
La Tigra
Cerrejon
(BHP/Xstrata/Anglo)
CI Jam
La Caypa
 Colombia is the world’s 10th largest producer (76
million tonnes in 2009) and 4th largest exporter of
coal
 Coal represented 25% of total export earnings for
Colombia in 2009
CESAR DEPARTMENT
El Descanso
(Drummond)
El Hatillo
La Francia
Calenturitas
(Glencore)
 Colombia’s estimated 2011 coal production is 85
million to 95 million tonnes
(Vale)
(Goldman Sachs)
Cerro Largo
 Colombia has one of the largest proven coal reserves
in the world, with over 7 billion tonnes of recoverable
reserves and 17 billion tonnes of potential reserves
La Jagua
(Glencore)
Pribbenow
(Drummond)
Source: Ingeominas Colombian Institute of Geology and Mining; Energy Information Administration; Reuters; Intierra
24
Colombia
A World-Class Coal District
Colombia is a significant coal mining region with 2012 production forecast to exceed 87 million tonnes*
Colombian Coal Production (Mt)
DMTU Thermal Coal Price (FOB Puerto Bolivar)
100
$200
90
$180
80
$160
70
Average contract
price in 2012: $100
$140
Production in Mt
$120
50
$100
40
$80
30
$60
20
$40
10
$20
0
$-
2012E*
60
CAPP Coal Futures
Source: BP Statistical Review of World Energy and Bloomberg
*Economist Intelligence Unit
FOB Puerto Bolivar
25
Valuation Metrics
Opportunity For Re-valuation
As at May 16, 2012
$4
$100
$12
11.0x
3.6x
$90
$4
$10
$80
72.1x
$3
$70
$8
1.8x
EV / Tonne Sold
EV / Resource
EV / EBITDA
$3
$2
86.5x
$6
$2
$60
$50
$40
$4
$30
$1
$2
$1
$20
1.4x
$10
$0
$0
Pacific Coal
Peer*
$0
Pacific Coal
Source: Management estimates, Fraser Mackenzie research, and Bloomberg
* Peers: Corsa Coal Corp., Forbes & Manhattan Coal Corp., Lipari Energy, and Xinergy Ltd.
** Production sales as of most recent quarter on an annualized basis
Peer*
Pacific Coal
Peer*
26