Transcript Document

Representation of 600 MW Chandgana power plant
Chandgana Coal
Chandgana Coal Resources (Tonnes)
Chandgana Tal Khavtgai Uul
Chandgana (Total)
Measured
0.14 billion
0.51 billion
0.65 billion
Indicated
-
0.54 billion
0.54 billion
Total M&I
0.14 billion
1.05 billion
1.19 billion
Chandgana Khavtgai’s resource estimates are based on the September 2010 NI 43-101 Chandgana Khavtgai Technical Report by Kravits Geological Services, LLC. The
report is authored by Christopher M. Kravits CPG, LPG of Kravits Geological Services, LLC., who is an independent Qualified Person under NI 43-101. And the Chandgana
Tal resource estimate is also based on the September 2007 NI 43-101 Chandgana Tal Technical Report by Behre Dolbear & Company (USA), Inc..The report is authored by
Mr. Gardar G. Dahl, Jr., CPG of Behre Dolbear & Company (USA), Inc., who is an independent Qualified Person under NI 43-101.
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Chandgana Power Project Summary
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•
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First Independent Power Plant (IPP) in Mongolia
Mine mouth plant next to Chandgana property
150 MW x 4 in Central Mongolia, 300 km east of Ulan Bator
Coal mining and power plant construction licenses obtained
• Mongolia: Fast growing country in need of energy
• Licenses owned by Canadian company with good reputation
• Seeking Joint Venture Partner (not sale of project)
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Mongolia Power Supply/Demand
Source: Energy International
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Strategic Location
•Central Mongolia
(300km east of Ulan
Bator): ready access
to key markets
•Adjacent to coal
deposit
•Close to Mongolia
220kV grid: 60km to
Eastern and 120km to
Central
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Prophecy Power Transaction Structure
Power Plant JV
Sponsor
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•
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40%
40%
•
Prophecy
20%
Sponsor
PE Investor
Buy 40% equity interest in Prophecy
Power for a one-time payment
Obtains rights to project EPC and O&M
Contributes pro-rata share of ongoing
development expenses and project capex
Lead arranger of power plant financing
Prophecy Coal
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•
•
Contributes licenses and local knowledge
Finalize PPA, EPC, fuel supply contracts
Participates in financing
Private Equity Sponsor
•
Participates in financing
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Prophecy Power Project Capex
Estimated Equity Commitment by year ($million)
2013
2014
2015
2016
Total
Sponsor
$41
$43
$39
$25
$148
Prophecy Coal + PE
$60
$64
$59
$37
$220
Equity Total
$101
$107
$98
$62
$368
Debt Total
$217
$252
$263
$157
$889
Financing Total
$318
$359
$361
$219
$1,257*
Based on total 600MW EPC cost of $1.1 billion, equity/debt funding of 30/70 (*Includes IDC)
We anticipate cost to be 65% of above for 300MW only.
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Strategic Benefits to Sponsor
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Rare opportunity to enter Mongolian power sector
Expected to immediately achieve significant scale in Mongolian market
(Phase 1: 600 MW will add 70% to existing installed capacity of 800 MW)
Target Tariff with 6 year equity payback, 25% post-tax IRR (assuming 30/70
equity/debt financing)
Platform for future growth and development (Phase 2: power export to
China)
In the Mongolian Power Sector:
• IPP encouraged to bridge power demand gap
• Prophecy is the most experienced Canadian company
• Chandgana is the most advanced thermal power project
• Prophecy provides permitting and government relations
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Chandgana Power Project Status
License / Approval
Date
Status
Power Plant Detailed
Environmental Impact
Assessment
November 2010
Received
Chandgana Mining
License
January 2011
Received
Power Transmission
Line
August 2011
Submitted
600 MW Power Plant
Construction License
November 2011
Received
Power Purchase
Agreement
August 2012
Submitted
Tariff Application
August 2012
Submitted
Project status
• Over US$50 million invested
• Coal Mining, Power Plant Construction
Licenses received
• PPA submitted to Mongolian Gov’t in
August 2012
Next steps
• Finalize EPC* by 2012
• JV Partner by early 2013
• Sign PPA by early 2013
• Pour Concrete by Apr il 2013
• Financing by end of 2013
• COD** (150MW x 2) by early 2016
*EPC: Engineering, Procurement, Construction;
**COD: commercial operation date
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Chandgana Coal mine
Chandgana Coal Mine
20%
Sponsor
acquires 20% equity interest – one time
payment
Chandgana LLC will develop Coal Mine (total
~$50million)
Chandgana will provide coal supply to plant for 25
years
80%
Prophecy Coal
Sponsor
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Management
John Lee, CFA – Chairman / CEO
Founder of Prophecy Coal Corp. and Prophecy Platinum Corp.
Jivko Savov - Director
Former Deputy CEO of En+, company owned by Oleg Derispeska
Former Chairman of Rusal, Chairman of EuroSibEnergo
Michael Deats - Director
Former Managing Director of BP Coal South Africa, Ex-Director of Eskom
VP Sharma – Technical Advisor
40 years experience in the power industry. Joined CLP Group in 1978. Roles include
Director-Head of India, Managing Director of GPEC and CEO of CLP Power India
Ms. Lynia Lau - Legal Advisor
Hong Kong based partner in law firm Clyde & Co. and the Asian Head of Energy.
Advised Shanghai Power Group LTD, Yudean Group Limited, China Three Gorges Group, and
Datang Power International in their oversea investment in power plant projects.
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Prophecy Platinum (TSXv:NKL OTCQX:PNIKF)
• Prophecy Coal spun out Prophecy Platinum in 2011 and retains a
33% equity stake worth ~$27M
• Prophecy Platinum:
– Owns 100% of the Wellgreen PGM-Ni-Cu deposit in the Yukon, which
GMP recently indicated was #5 on its list of undeveloped PGM deposits
outside South Africa
– Recently acquired the Shakespeare PGM-Cu-Ni deposit near Sudbury,
which is fully permitted and ready to be mined
– Recently put in place a senior management team led by CEO Greg
Johnson, co-founder of NovaGold
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Wellgreen PGM Production Projected to be the 3rd
Largest Individual Mine in North America
Platinum & Palladium Production per Year
200
180
koz Pt (left scale)
koz Pd (right scale, or Pt Eq on left scale)
500
450
160
400
140
350
120
300
100
250
80
200
60
150
40
100
20
50
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Vale - Sudbury
(multiple mines)
Stillwater Prophecy Platinum Xstrata - Nickel
Stillwater Mine
- Wellgreen
Rim South
Stillwater - East NA Palladium - Lac
Boulder Mine
des Iles
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Platinum – High Risk of Supply Disruptions
Platinum Supply and Demand:
• Platinum supply is just 1/10th that of gold
and 1/100th that of silver
• South Africa, Russia and Zimbabwe
account for 93% of global platinum
supply
• Strong auto catalyst, jewelry and
investment demand forecast
Implications:
• Platinum and PGM projects in stable
jurisdictions like the Yukon will be highly
sought after
Platinum Supply by Region 2011 - Total 6.5Moz
North
America Zimbabwe
5%
5%
Others
2%
Russia
13%
South
Africa
75%
Geopolitical Stability
Source: Johnson Matthey – Platinum 2012
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Questions?
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