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STRICTLY CONFIDENTIAL March 2015
Investor Presenta,on
§ This document has been prepared by Genex Power Limited (“Genex” or “Company”) for the purpose of providing a company and technical overview to interested analysts/investors. None of Genex, nor any of its related bodies corporate, their respecEve directors, partners, employees or advisers or any other person (“Relevant ParEes”) makes any representaEons or warranty to, or takes responsibility for, the accuracy, reliability or completeness of the informaEon contained in this document to the recipient of this document (“Recipient”) and nothing contained in it is or may be relied upon as, a promise or representaEon, whether as to the past or future.
§ The informaEon in this document does not purport to be complete nor does it contain all the informaEon that would be required in a disclosure statement or prospectus prepared in accordance with the CorporaEons Act 2001 (Commonwealth). It should be read in conjuncEon with Genex’s other periodic releases
§ This document is not a recommendaEon to acquire Genex shares and has been prepared without taking into account the objecEves, financial situaEon or needs of individuals. Before making an investment decision prospecEve investors should consider the appropriateness of the informaEon having regard to their own objecEves, financial situaEon and needs and seek appropriate advice, including financial, legal and taxaEon advice appropriate to their jurisdicEon. Except to the extent prohibited by law, the Relevant ParEes disclaim all liability that may otherwise arise due to any of this informaEon being inaccurate or incomplete. By obtaining this document, the Recipient releases the Relevant ParEes from liability to the Recipient for any loss or damage that it may suffer or incur arising directly or indirectly out of or in connecEon with any use of or reliance on any of this informaEon, whether such liability arises in contract, tort (including negligence) or otherwise.
§ This document contains certain “forward-‐looking statements”. The words “forecast”, “esEmate”, “like”, “anEcipate”, “project”, “opinion”, “should”, “could”, “may”, “target” and other similar expressions are intended to idenEfy forward looking statements. IndicaEons of, and guidance on, future earnings and financial posiEon and performance are also forward-‐looking statements. You are cauEoned not to place undue reliance on forward looking statements. Although due care and aVenEon has been used in the preparaEon of forward looking statements, such statements, opinions and esEmates are based on assumpEons and conEngencies that are subject to change without noEce, as are statements about market and industry trends, which are based on interpretaEons of current market condiEons. Forward looking statements including projecEons, guidance on future earnings and esEmates are provided as a general guide only and should not be relied upon as an indicaEon or guarantee of future performance.
§ Recipients of the document must make their own independent invesEgaEons, consideraEon and evaluaEon. By accepEng this document, the Recipient agrees that if it proceeds further with its invesEgaEons, consideraEon or evaluaEon of invesEng in the Company it will make and rely solely upon its own invesEgaEons and inquiries and will not in any way rely upon this document.
§ This document is not and should not be considered to form any offer or an invitaEon to acquire Genex shares or any other financial products, and neither this document nor any of its contents will form the basis of any contract or commitment. In parEcular, this document does not consEtute any part of any offer to sell, or the solicitaEon of an offer to buy, any securiEes in the United States or to, or for the account or benefit of any “US person” as defined in RegulaEon S under the US SecuriEes Act of 1993 (“SecuriEes Act”). Genex shares have not been, and will not be, registered under the SecuriEes Act or the securiEes laws of any state or other jurisdicEon of the United States, and may not be offered or sold in the United States or to any US person without being so registered or pursuant to an exempEon from registraEon.
DISCLAIMER
2 STRICTLY CONFIDENTIAL
Company Summary
Key Project Pumped Storage Hydro Electricity Project
Project Loca,on North Queensland
IPO TargeIng May 2015
Shareholders ~140
Project Summary*
Genera,on Capacity 330MW
First Genera,on 2018
Capital Cost (before con,ngency) $282 million
Revenue $84 million
EBITDA $56 million
INTRODUCTION
*Based on past 12 months electricity prices to 9 March 2015, past performance not indicaEve of future performance 3
4
KIDSTON SITE LOCATION
Georgetown
Typical Pumped Storage Plant Arrangement
§ Pumped storage requires two reservoirs in close proximity of each other
§ During peak power demand, water is released from upper reservoir to lower reservoir to generate electricity
§ During off-‐peak hours, power is drawn from the grid to pump water back up to the upper reservoir
Pumped Hydro makes a return by:
§ Selling electricity by generaIng during high priced peak periods
§ Buying electricity by pumping during low priced off-‐peak periods
PUMPED STORAGE POWER GENERATION
5
0am
6am
12pm
6pm
Lower Reservoir
PUMPED STORAGE
7
0am
6am
12pm
6pm
Wivenhoe PSP Scheme, Queensland Australia
Tumut 3, Snowy Hydro Scheme, NSW Australia
Shoalhaven Scheme, NSW Australia
§ Pumped Storage is an established technology since 1890s
§ Hundreds of installed schemes around the world
§ Three pumped storage schemes in Australia
1. Tumut 3 – 1,200MW 2. Wivenhoe – 500MW 3. Shoalhaven – 240MW
PUMPED STORAGE
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BASELOAD POWER GENERATION (Coal, Gas, Wind, Solar, Hydro)
Time of Day (hrs)
Peaking power genera,on can only be supplied by
Open Cycle Gas Turbines Diesel Generators Pumped Hydro
PEAK PEAK
ELECTRICITY GENERATION
OFF-‐PEAK OFF-‐PEAK
9
5000
5500
6000
6500
7000
7500
8000
8500
0
50
100
150
200
250
300
12:30:00 AM
5:30:00 AM
10:30:00 AM
3:30:00 PM
8:30:00 PM
1:30:00 AM
6:30:00 AM
11:30:00 AM
4:30:00 PM
9:30:00 PM
Price Demand
ELECTRICITY GENERATION
10
$/MWh Demand (MW)
0
50
100
150
200
250
300
12:00:00 AM 12:30:00 PM 1:00:00 AM 1:30:00 PM 2:00:00 AM 2:30:00 PM
QLD NSW SA QLD TAS
WHOLESALE ELECTRICITY PRICES
Average Daily Electricity Prices by State
(6 March 2015 – 8 March 2015) 11
$/MWh
The Kidston Site
§ Two large adjacent pits
‒ 52ha and 54ha respecEvely
‒ Lower Reservoir 270m deep
‒ Approximately 400m apart at surface
§ Site rehabilitated since mine closure in 2001
§ Water license in place for top up water
§ Site 100% owned by Genex Power
KIDSTON PROJECT
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KIDSTON PROJECT
Tangible Assets Intangible Assets
Fixed Assets Licenses and Permits Data and Informa,on
ü ExisIng Reservoirs ü Term lease in place for land over Kidston Mine Site
ü Water Quality
ü Onsite building materials and infrastructure
ü Council supporIve of Development of Approval
ü Rainfall/Runoff
ü ExisIng 132kV transmission ü Pastoral Lease exInguished ü Geological/Historical Drilling
ü SubstaIon on site ü NaIve Itle exInguished ü Surveys and mapping
ü In-‐situ water in pit ü Environmental Approval (EA) in place
ü Hydrology
ü Copperfield Dam (Top up) ü Water license in place with allocaIon of 4,500ML p.a.
ü Water Pipeline from Copperfield Dam for top up if necessary fully operaIonal
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418.29 MW
402.93 MW
366.67 MW 366.67 MW
330.00 MW
318.77 MW
Water pumped to upper reservoir
NEM
Pump
NEM
Turbine
Water released
from upper reservoir
KIDSTON SCHEME EFFICIENCIES
14
KIDSTON OPERATING PROGRAM
15
Key Risks
Counter Party Risk ü State and Local government only ü Local Council Support ü No Landholders over project site
Environmental Risk ü Environmental Approval already in place ü Site is already disturbed due to previous mining
CAPEX Risk ü Third Party cost esImates used in Pre-‐Feasibility
Water Shortage ü Closed loop system ü Top up water supply available from nearby dam ü Project located in tropical North Queensland
PROJECT ECONOMICS
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CAPEX Items* A$M
Civil Works 80
Equipment 87
Transmission 115
Total es,mated capital cost 282
Back Test Results* A$M
Total GeneraIon Revenue A$84
Total Pumping Cost A$24
O&M A$4
EBITDA A$56
*Based on past 12 months electricity prices to 9 March 2015, past performance not indicaEve of future performance
*Based on Pre-‐Feasibility cost esEmates provided by Third ParEes
Project Financing Op,ons
§ Transmission Line – Third Party Build Own Operate (BOO)
§ Electrical & Mechanical Equipment – Equipment Financing
§ TradiIonal Project Finance
§ Power Purchase Agreements (PPAs)
BOARD & MANAGEMENT
Dr Ralph Craven Non-‐ExecuIve Chairman
§ Director of Senex, SP AusNet, Invion
§ Former CEO and Chairman of Ergon Energy
§ Former CEO of Transpower New Zealand
Michael Addison Managing Director
§ Founder of EndoCoal and Carabella
§ Water engineer with extensive finance experience
Alan du Mée Non-‐ExecuIve Director
§ Former CEO of Tarong Energy
§ Former Chairman of the Australian NaIonal Generators AssociaIon
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Simon Kidston ExecuIve Director
§ Founder of EndoCoal and Carabella
§ Former banker with HSBC, Macquarie, Helmsec
Ben Guo CFO
§ 10 years experience with PWC, E&Y and more recently with Carabella and Estrella Resources
Jus,n Clyne Company Secretary & Legal Counsel
§ Extensive company secretary experience
GENEX IPO
§ ASX LisIng targeted for May 2015
§ Morgans Stockbroking acIng as Lead Manager
§ IPO Raising of $8m to 12m
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