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Pacific coal december_website


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Pacific coal december_website

  1. 1. Becoming Colombia’s Leading Independent Coal Producer December 2011 TSXV: PAK
  2. 2. DisclaimerForward Looking StatementThis presentation contains certain “forward-looking statements” and “forward-looking information” under applicable Canadian securities laws concerning the business, operationsand financial performance and condition of Pacific Coal, S.A. Forward-looking statements and forward-looking information include, but are not limited to, statements with respectto business plans and strategies of Pacific Coal; information with respect to the proposed subscription receipt financing of Pacific Coal; estimated production of the various projectsof Pacific Coal; the benefits of the acquisitions and the development potential of properties of Pacific Coal; the future price of coal; estimates regarding mineralization andexploration results; the ability of Pacific Coal to achieve mining success consistent with management’s expectations; and expected levels of royalty rates, operating costs, and othercosts and expenses. Undue reliance should not be placed on forward-looking statements, which are inherently uncertain, are based on estimates and assumptions, and are subjectto known and unknown risks and uncertainties (both general and specific) that contribute to the possibility that the future events or circumstances contemplated by the forward-looking 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”, “will”, or similar words suggestingfuture 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, aswell 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 theproposed subscription receipt financing; anticipated geological, operational and financial performance, business prospects, strategies, regulatory developments, future commodityprices, 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 nosignificant events occurring outside of Pacific Coal’s normal course of business. Although management considers these assumptions to be reasonable based on informationcurrently 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 statementsinclude changes in market conditions, risks relating to international operations, fluctuating coal prices and currency exchange rates, changes in project parameters, the possibility ofproject 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, andacquisitions not being integrated successfully or such integration proving more difficult, time consuming or costly than expected. Although Pacific Coal has attempted to identifyimportant 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 causeactions, events or results not to be anticipated, estimated or intended. Pacific Coal undertakes no obligation to update forward-looking statements if circumstances ormanagement’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 byCanadian 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 ofmineral 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 andlegal 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 inferredmineral 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 mineralresource exists, or is economically or legally mineable. 1
  3. 3. Vision Explore, expand and develop existing producing assets to increase efficiencies, reserves and production, while securing infrastructure capacity (La Caypa, Cerro Largo, CI Jam/Port of Barranquilla) LEADING INDEPENDENT Seek opportunities to secure access to markets and ensure commercial flexibility COLOMBIAN COAL Foster a corporate environment of responsible PRODUCER citizenship 2
  4. 4. Strategy • La Caypa – thermal coal RAW MATERIAL • Cerro Largo – thermal coal 100% ownership and PRODUCTION • CI Jam – hard coking coal control of assets (UPSTREAM) • La Tigra – asphaltite CAW/CPW plant • 50% equity interest • Carried interest for 50/50 JV • Upgraded coke production MANUFACTURING/ • Colloidal asphaltite in water (“CAW”)* PROCESSING (MIDSTREAM) • Colloidal petcoke in water (“CPW”)* Pyrolysis plant • Pyrolysis • 100% equity interest • Marketing of asphaltite products to: • Power generation plants RETAIL/MARKETING • Heavy oil producing companies and refineries (DOWNSTREAM) • Marketing of thermal coal • Marketing of coke Vertical integration to secure market access in value-added product streams*CAW and CPW are technologies being developed by Blue ACF, a company in which PAK has a 5% equity interest, with the rightto increase its investment to 20% pending successful trials. Pyrolysis is a proven procedure. 3
  5. 5. Capital Structure Fully Funded to Execute Strategy  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  Cash flow positive  As at November 29, 2011, 6.9 million shares have been purchased for cancellation under the normal course issuer bid Pacific Coal (TSXV: PAK) Shares outstanding: 326.3 million Options (vested & exercisable) 35.8 million Warrants outstanding with weighted avg. exercise price of $2.10(1) 75.1 million Fully diluted: 437.2 million Market cap (basic): $124.0 million (2) Cash (September 30, 2011) $14.3 million Long-term debt (3) (September 30, 2011) $32.0 million Enterprise value $141.7 million(1) Expiry date March 14, 2016(2) Based on closing price of $0.38 on 11/29/2011(3) Includes finance leases 4
  6. 6. Pacific Coal Fully Funded Capex 2011-2012 Exploration = $10 m Development = $15 m Acquisitions = $125 m Infrastructure = $17 m Equipment = $15 m Pending* = $9 m Pending* = $2.5 m Pending* = $15 m Pending* = $13 m Pending* = $5 m • Drilling at Cerro Largo • South pit expansion at • Paying Cerro Largo • Completion of Coking • Double body trailers to update NI43-101 La Caypa (Royalties) contract to Masering Infrastructure (Trucks were acquired • Drilling, mapping and • Paying Barranquilla via leasing) • Barranquilla Port setup geophysics at La Tigra Port outstanding debt • Exploration drills • Drilling in Catatumbo • Closing 86% Cerro • Equipment for South • Drilling La Caypa for Largo Pit operations underground mine • Blue ACF investment • Other equipment design* As at September 2011 5
  7. 7. Executive ManagementStrong and Experienced TeamLuis 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 at companies in Colombia and at Colombian branches of Canadian companiesGiovanni Pizarro (Chief Operating Officer) Over 23 years experience in the mining industry, specifically coal, holding senior positions in logistics and mine management. He spent over 8 years with Carbones del Caribe (Argos) and has a breadth of experience in managing integrated mining projects, coal processing and handling facilities, quality control, and port operations in Colombia. Has a degree in Civil EngineeringPeter Volk (General Counsel and Secretary) Mr.Volk has acted as General Counsel and Secretary of PetroMagdalena Energy Corp., Pacific Rubiales Energy Corp., Gran Colombia Gold Corp., and Bolivar Gold Corp.Jose Ignacio Noguera (Vice President, Public Relations & Corporate Social Responsibility) A lawyer with over 20 years experience in the resource industry, holding positions as legal counsel, public affairs, government relations, and community relations. During the last 8 years, he was the Public and Government Affairs Manager of ExxonMobil. 6
  8. 8. Asset Summary Diverse Portfolio of High Quality Coal Assets Well-positioned portfolio with diversified current and future production of steam coal, coke and asphaltite Current Asset Type Stage Production* Puerto Brisa Port of Santa Marta 1 1 Port Barranquilla 6 Open pit steam coal 1.2 Mt1 1 La Caypa mine with Producing 2 (Coal) underground potential 5 Open pit steam coal 450 Kt2 2 Cerro Largo Producing 4 mine (Coal) Medellin Underground coking Producing 20 kt 3 3 CI Jam coal mine upgrading (2011 ramp- Bogota (Coke) to coke up) Cali 4 Exploration/ Start early- La Tigra Asphaltite Development 2013 5 Evaluating Catatumbo Steam coal - opportunities Port concession for 6 Port Barranquilla Development - coke exportSource: Management estimates*Annualized rate1 La Caypa produced 970,340 tonnes in the nine months ended September 30, 2011 72 Cerro Largo produced 210,744 tonnes in the nine months ended September 30, 2011; Q1 production of 110,875 tonnes was prior to Pacific Coal acquisition of Cerro Largo
  9. 9. Thermal Coal Production Profile Fully Funded Organic Growth Pipeline Robust production growth from existing assets with additional greenfield and consolidation opportunities Annual Production (millions of tonnes) 3.4-3.6 2.7-2.9 2.6-2.9 1.6-1.8* 1.2Source: Management estimates*Includes total production from Cerro Largo Q1/2011, before the acquisition closed 8
  10. 10. Coke Production Profile Fully Funded Organic Growth Pipeline High value coke operation with long mine life and coal to coke conversion of ~70%  Operational adjustments during the first year of 90,000- 90,000- operations resulted in 120,000 120,000 reduced production Annual Production in tonnes CI Jam guidance for this year (from 36,000 t to 20,000 t) 60,000-  These adjustments also 72,000 allowed for infrastructure and capacity to be built up, resulting in longer-term production targets being achieved sooner 20,000 2010A 2011E 2012E 2013E 2014ESource: Management estimates 9
  11. 11. 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 (1) Average Sulphur: • 0.69% (1) 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 LA CAYPA – COAL CHARACTERISTICS (1) (1) • One underground mine in exploration, expected development in Year Moisture % Ash % Sulphur % CV Btu/lb 2013 2009 10.11 5.78 0.69 12,264 Projected Costs (2): • US$85/t Avg Contract Price: • US$102/t in long-term contracts for 100% of production to 2013 RESERVES & RESOURCES (1) LA CAYPA - (Inclusive of Additional Resources) Infrastructure: • Secured allocation at Santa Marta (250 km) Surface (Mt) Underground (Mt) • Expected additional capacity at Puerto Brisa, early-2012, reducing Measured 11.2 35.8 freight costs by 40%-50% Indicated - 17.8 Current strip ratio: • 7:1(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(2) Includes transportation, port, and administrative costs 10
  12. 12. La Caypa Mine South Pit Expansion to Extend Mine Life 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)  Development of south pit will be concurrent with existing mining operations(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 11
  13. 13. La Caypa Mine Underground Production to Drive Growth 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 meters to 6.8 meters)  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 meters 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 Level 1 Cradle ELEVATION: -150 Level 1 ELEVATION: -300 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 managementprojections 12
  14. 14. 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 (1) Area: • 488 hectares Average BTU: • 12,000 (1) Average Sulphur: • 0.78% (1) Operations: • One open-pit mine currently operating Projected Costs (2): • US$80/t, expected to lower US$2/year with improved efficiencies and strip ratio Infrastructure: • Secured allocation at Santa Marta (250 km) • Expected additional capacity at Puerto Brisa in early-2012, reducing freight costs by 30%- 40% Current strip ratio: • 13:1 (during ramp up) • Long-term mine plan has been implemented(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 13
  15. 15. Regional InfrastructureProximity to Infrastructure Supporting Growth Significant port and road infrastructure in place to support existing regional coal production Puerto Bolivar  Secured allocation to 2013 of 1.8 Mtpa of coal stockpiling and shipping capacity Port of Santa Marta Puerto Brisa at the Port of Santa Marta Barranquilla  Production trucked 250 km by paved Port La Caypa highway to Santa Marta at a cost of Barranquilla approximately US$20-$23 per tonne Cartagena from La Caypa and 280 km from Cerro Cartagena Port Largo at a cost of approximately US$23- Cerro Largo US$24.  Expected capacity at Puerto Brisa Panama provides alternative port location closer Catatumbo to both La Caypa and Cerro Largo with potential to reduce freight costs by 40%- Venezuela 50% and by 30%-40%, respectively Colombia La Tigra  Puerto Brisa construction expected to be completed by Q4/2012, providing additional 35 Mt of specialized coal shipping capacity CI Jam Legend River Transport Coal Mine Coal Project Road Ports 14
  16. 16. CI Jam Coking Coal and Upgraded Coke Production Underground coking coal operation selling premium coke into high price environment Location: • Boyaca Department, Colombia, west of the town of Samaca • 3,000 small HCC producers in the area Resource estimate: • 2.8 Mt in situ (1) Area: • 52 hectares Average BTU: • 13,800 with coking properties (1) Average Sulphur: • 0.92% (1) Operations: • Underground coking coal • Upgrading coking coal to coke Projected Costs (2) : • US$210/t Avg Contract Price: • US$300/t – US$350/t Infrastructure: • Well maintained roads to truck coke to domestic markets and to port terminals (800km to Barranquilla) Status: • Completed refurbishment of 160 beehive coking ovens • Completed refurbishment of coker infrastructure • 2011 estimated production at 20,000 tpa of coke • Currently building additional 100 ovens to bring capacity to 120,000 tpa(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 15
  17. 17. Port of BarranquillaInvesting in Long-Term Port Access for Coke Pacific Coal has agreed to acquire a port concession owned by Masering 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 Q1/2012, 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 16
  18. 18. La Tigra’s Asphaltite ProfileAsphaltites are species of bitumen, dark-colored, comparatively hardand non-volatile solids, composed principally of hydrocarbons. GilsoniteAs of today in the La Tigra area, there is evidence for the presence oftwo different types of asphaltite: Grahamite and Gilsonite.Management expects a significant resource at La Tigra to be confirmedwith a National Instrument 43-101 compliant report – physicalevidence on outcrops, oil seeps and 3 mines already in production inthe area lead to optimistic forecasts on the existence of importantasphaltite reserves. GrahamiteLocation of La Tigra: • 80 km from BarrancabermejaArea: • 5,700 hectaresOperations: • Initial exploration drilling, mapping, trenching and geophysics commenced June 2011 with the objective of a NI 43-101 compliant report by Q2/2012 La Tigra outcrop • Production start planned for Q1/2013Infrastructure: • 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 17
  19. 19. La Tigra’s Asphaltite Applications Proven Applications Applications in Evaluation PhaseAsphalt modifiers Colloidal Asphaltite in Water (“CAW”)• Oil drilling and mud additive • Crushed asphaltite, suspended in water forming a colloid,• Metal casings can be used as fuel by power generators• Paving/roofing asphalts • PAK and Blue ACF are in the process of developing a pilot• Paint resins plant test for CAW at Babcock & Wilcox facilities in Ohio, USAPyrolysis • Trials on track at Babcock & Wilcox with results expected in Q4/2011• Extensively used technology at the industrial level • Significant marketing opportunities as CAW can be sold as• Converts asphaltite to valuable liquid and gas products, a fuel oil substitute and pet coke • Management foresees strong market demand for CAW in• Pet coke is a by-product produced through pyrolysis Central America and the Caribbean• Prefeasibility study indicates excellent economics based on lab tests conducted with Colombia grahamite and gilsonite Colloidal Petcoke in Water (“CPW”)• High margin application, potential for substantial volumes • Similar to CAW, but using pet coke instead of asphaltite• Feasibility study in progress in order to select the specific • Blue ACF already conducted successful trials on colloidal technology and to conduct pilot plant tests (100% PAK) pet coke in water at Babcock & Wilcox in Q1/2011 PAK has investment option in the development of the CAW and CPW plants (50%) 18
  20. 20. CAW/CPW Emissions AbatementThe technologies being developed by Blue ACF have emissions abatement opportunities embedded in the R&D SO2 The abatement of these emissions is usually achieved using Flue Gas Desulfurization technologies (`FGD`) The key component is the limestone-based reaction (or calcium carbonate) as it removes SO2 from the flue gases to produce calcium sulfate or gypsum, a non-emission causing element  CAW with this limestone-based component will make this fuel less detrimental to the atmosphere than other heavy fuels NO2 The abatement of NO2 is achieved by re-burning: re-burning is a NO2 staged combustion control technique that suppresses the formation of NO2 in burners and then provides for additional NO2 reduction in the furnace area of the boiler Blue ACF is currently developing a new scheme to further reduce SO2 and NO2 emissions 19
  21. 21. Pacific CoalHealth & SafetyMission & values: To achieve Health & Safety goals through stewardship, integrity, and employee empowermentOur goal as a responsible company is to reduce the safety incidents in our operations each year:seeking to achieve the lowest rates of the mining industry• The organization maintains weekly updates in our • The company makes strategic alliances with environmental safety performance indicators. corporations to guarantee top eco-friendly performance. • We seek to find work partners that have high standards in health and safety politics. • We periodically work with our direct and indirect workforce in industrial security to ensure best practice in the mining industry. • We encourage our employees to participate actively in safety activities by creating prevention programs. • We assure that the company and our work partners perform by all law obligations regarding health and safety activities. • All of our employees take part in our community health programs as volunteers and patients. 20
  22. 22. Pacific CoalCommunity RelationsMission: To 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 and liveLeading the responsible progress our country needs We align our initiatives with local government needs and activities contributing to the nation’s progress. We work hand to hand with non-profit organizations to maximize our community efforts. We ensure responsible operations by minimizing the impact on the environment. 21
  23. 23. Pacific CoalAchievement Scorecard Achieved In Process Completion of amended NI 43-101 at La Caypa and Cerro Largo O Production and costs in line with management estimates at La Caypa  Commencement of development of south pit expansion and surface O 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 O costs by 30%-50% Completion of refurbishment of 160 beehive coking ovens at CI Jam  Building additional 100 beehive ovens at CI Jam O Commencement of exploration at La Tigra  Completion of NI 43-101 on La Tigra O Development of Port of Barranquilla O CAW/CPW tests and trials O 22
  24. 24. Pacific CoalSummary Strategically located, high-quality projects in a world-class jurisdiction with significant growth potential Fully funded for organic growth plans and cash flow positive 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 asphaltite Strong operating team with a proven track record for project advancement 23
  25. 25. APPENDIX 24
  26. 26. Colombia A World-Class Coal District Catatumbo LA GUAJIRA DEPARTMENT La Tigra Cerrejon (BHP/Xstrata/Anglo) CI Jam  Colombia is the world’s 10th largest producer (76 La Caypa million tonnes in 2009) and 4th largest exporter of coal  Coal represented 25% of total export earnings for Colombia in 2009  Colombia has one of the largest proven coal reserves CESAR DEPARTMENT in the world, with over 7 billion tonnes of recoverable El Descanso Calenturitas (Drummond) (Glencore) reserves and 17 billion tonnes of potential reserves El Hatillo La Francia (Vale)  Colombia’s estimated 2011 coal production is 85 (Goldman Sachs) million to 95 million tonnes Cerro Largo La Jagua (Glencore) Pribbenow (Drummond)Source: Ingeominas Colombian Institute of Geology and Mining; Energy Information Administration; Reuters; Intierra 25
  27. 27. Colombia A World-Class Coal District Colombia is a significant coal mining region with 2011 production forecast to exceed 85 million tonnes Colombian Coal Production (Mt) DMTU Thermal Coal Price (FOB Puerto Bolivar)90.080.0 $250 Colombian Coal70.0 Production in Mt prices up over 60% since January 201060.0 $20050.0 $15040.0 $10030.020.0 $5010.0 $0 0.0 Jul-06 Jul-07 Jul-08 Jul-09 Jul-10 Jul-11 Jul-12 Jul-13 2011E 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 FOB Puerto Bolivar to Europe API#2 PriceSource: BP Statistical Review of World Energy and Bloomberg 26
  28. 28. Valuation Metrics Opportunity For Re-evaluation $18 $16.17 As at November 1, 2011 $16 $14 $12 EV / Resource 3.0 $10 $8 $6 2.5 $4 $2.56 $2 2.0 $- Pacific Coal Peer* EV / EBITDA 3.4x 3.1x $121.00 $120.24 1.5 $120.00 $119.00 EV / Tonne Sold** 1.0 $118.00 $117.00 $116.00 0.5 $115.00 $114.41 $114.00 $113.00 0.0 $112.00 Pacific Coal Peer* $111.00 Pacific Coal Peer*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 27
  29. 29. Becoming Colombia’s Leading Independent Coal Producer December 2011 TSXV: PAK 28