Attached files
| file | filename |
|---|---|
| 8-K - CURRENT REPORT ON FORM 8-K - James River Coal CO | jrcc_8k-043010.htm |
| EX-99.1 - PRESS RELEASE - James River Coal CO | jrcc_8k-ex9901.htm |
Exhibit 99.2
Shareholder
Update
April
2010
2
Forward-Looking
Statements
Certain
statements in this Shareholder Update, and other written or oral statements made
by or
on behalf of us are "forward-looking statements" within the meaning of the federal securities
laws. Statements regarding future events and developments and our future performance, as
well as management's expectations, beliefs, plans, estimates or projections relating to the
future, are forward-looking statements within the meaning of these laws. These forward-looking
statements are subject to a number of risks and uncertainties. Forward looking statements include,
on behalf of us are "forward-looking statements" within the meaning of the federal securities
laws. Statements regarding future events and developments and our future performance, as
well as management's expectations, beliefs, plans, estimates or projections relating to the
future, are forward-looking statements within the meaning of these laws. These forward-looking
statements are subject to a number of risks and uncertainties. Forward looking statements include,
without
limitation, statements regarding future contract mine production, market
improvements,
industry
demand, inventory and purchasing patterns. These risks and
uncertainties
include, but are not limited to, the following: changes in the demand for coal by electric utility
customers; the loss of one or more of our largest customers; inability to secure new coal supply
agreements or to extend existing coal supply agreements at market prices; our dependency on
one railroad for transportation of a large percentage of our productions; failure to exploit
additional coal reserves; the risk that reserve estimates are inaccurate; failure to diversify our
operations; increased capital expenditures; encountering difficult mining conditions; increased
costs of complying with mine health and safety regulations; bottlenecks or other difficulties in
transporting coal to our customers; delays in the development of new mining projects;
increased costs of raw materials; the effects of litigation, regulation and competition; lack of
availability of financing sources; our compliance with debt covenants; the risk that we are
unable to successfully integrate acquired asset into our business; and the other risks detailed in
our reports filed with the Securities and Exchange Commission (SEC).
include, but are not limited to, the following: changes in the demand for coal by electric utility
customers; the loss of one or more of our largest customers; inability to secure new coal supply
agreements or to extend existing coal supply agreements at market prices; our dependency on
one railroad for transportation of a large percentage of our productions; failure to exploit
additional coal reserves; the risk that reserve estimates are inaccurate; failure to diversify our
operations; increased capital expenditures; encountering difficult mining conditions; increased
costs of complying with mine health and safety regulations; bottlenecks or other difficulties in
transporting coal to our customers; delays in the development of new mining projects;
increased costs of raw materials; the effects of litigation, regulation and competition; lack of
availability of financing sources; our compliance with debt covenants; the risk that we are
unable to successfully integrate acquired asset into our business; and the other risks detailed in
our reports filed with the Securities and Exchange Commission (SEC).
Agenda
● Opening
Comments
● Market
Review
● Miscellaneous
4
Opening
Comments
Summary
● Another Very
Strong Quarter for JRCC
● EPS of
$0.84
● Adjusted EBITDA of
$48.1 Million
● Free Cash Flow of
$34.1 Million
● Excellent
Operating Performance by the Mines
● Excellent
Coordination with the Railroad and Utilities
● New Met Mines
Continue to Be On Schedule
● Maintaining an
Open Contract Book Into An Improving Market
● Well Positioned
for Sustained Profitability
● Named to Forbes
2010 List of “100 Most Trustworthy Companies”
Agenda
● Operations
Review
● Opening
Comments
● Market
Review
● Miscellaneous
6
Operations
Review
7
Operations
Review
Central
Appalachia
● Strong Quarter
From Production, Cost and Shipping
● Strong Quarter
From Production, Cost and Shipping
● Continued
Construction of New Impoundment
● Continued
Construction of New Impoundment
● Started 2nd Section at Bell
County Mine
● Started 2nd Section at Bell
County Mine
● Development Work
to Add 2nd Section
at Blue Diamond Mine
● Development Work
to Add 2nd Section
at Blue Diamond Mine
● Installed New
Continuous Haulage Unit at Blue Diamond Mine
● Installed New
Continuous Haulage Unit at Blue Diamond Mine
● Opened New
Replacement Surface Mine at McCoy Elkhorn
● Opened New
Replacement Surface Mine at McCoy Elkhorn
● Continue to Work
Through New Permitting Issues
● Continue to Work
Through New Permitting Issues
9
Operations
Review
Central Appalachia
Met Coal Development
● 1st Contract Mine to
Begin Production in May 2010
● 1st Contract Mine to
Begin Production in May 2010
● 2nd Contract Mine to
Begin Production by July 2010
● 2nd Contract Mine to
Begin Production by July 2010
● 3rd Contract Mine to
Begin Production in 4th Quarter
2010
● 3rd Contract Mine to
Begin Production in 4th Quarter
2010
● Preparation Plant
to Re-Start in 2nd
Quarter
● Preparation Plant
to Re-Start in 2nd
Quarter
● Estimated
Production
● Estimated
Production
● 2010 ~150,000
Tons
● 2010 ~150,000
Tons
● 2011 ~300,000
Tons with Upside Potential
● 2011 ~300,000
Tons with Upside Potential
10
Operations
Review
Illinois
Basin
● Strong Production
and Shipping Quarter
● Strong Production
and Shipping Quarter
● Continued
Development of New Underground Mine
● Continued
Development of New Underground Mine
● Replacement of an
Existing Surface Mine
● Replacement of an
Existing Surface Mine
● Production Scheduled
to Begin in Late 2nd Qtr.
● Production Scheduled
to Begin in Late 2nd Qtr.
● Capital Investment
in a “Newer” Shovel Has Shown an
Increase in Production of Greater Than 30%
Increase in Production of Greater Than 30%
● Capital Investment
in a “Newer” Shovel Has Shown an
Increase in Production of Greater Than 30%
Increase in Production of Greater Than 30%
● Good Example of
Investing Through the Cycle
● Good Example of
Investing Through the Cycle
Agenda
● Operations
Review
● Opening
Comments
● Market
Review
● Miscellaneous
12
Market
Review
12
201 New Dry Bulk Vessels Delivered in
Q-1 2010 Compared with 108 Vessels
Delivered in Q-1 2009
News
and Notes
Genscape Reports that Coal
Inventories in the South Atlantic
Region Fell in the Week Ended April 16
Inventories in the South Atlantic
Region Fell in the Week Ended April 16
The Highest Cost Steel Facility in
Western Europe (Liege) is Restarted
Western Europe (Liege) is Restarted
13 Percent of Coal Exports from
South Africa in March were Shipped
to Europe
South Africa in March were Shipped
to Europe
Steel Production in Japan Up by 50
Percent Year-Over-Year in the First
Quarter
Percent Year-Over-Year in the First
Quarter
Fears Raised Over Process of Shale
Gas Extraction
Gas Extraction
13
Market
Review
13
Summary
View
● The High Vol. CAPP
Market Has Gotten Much Stronger
● The Thermal CAPP
Market is Starting to Improve
● There is Some Fuel
Switching From Coal to Natural Gas, but
Not as Much as in 2009
Not as Much as in 2009
● Industrial Demand
for Natural Gas is Improving
● We Believe that
the Spring and Fall 2010 Shoulder Seasons will
be Below Normal for Coal Inventory Replenishment
be Below Normal for Coal Inventory Replenishment
● We Believe that
Inventories and Purchasing Patterns from U.S.
Utilities will Return to Normal Levels in Late 2010
Utilities will Return to Normal Levels in Late 2010
Market
Review
Year-Over-Year Change
in CSX Chemicals Shipments
Chemicals
Market
Review
Wk 16
2010 11,580
Carloads
16
CAPP
Midwest
16
Market
Review
Contracting
Strategy
● In a Tightening
Market, We Will Continue to Be Very Patient
● If We Sell Our
Remaining 2011 Thermal Coal at Current 2011
Market Prices, Our Average 2011 Sales Price Will Be +/-$92
Market Prices, Our Average 2011 Sales Price Will Be +/-$92
● Met Coal Sales
Contracting Will Begin in July - August
● No Significant
Changes Are Expected
Agenda
● Operations
Review
● Opening
Comments
● Market
Review
● Miscellaneous
Miscellaneous
|
Upcoming
Investor Conferences and Meetings
(Webcast
May be Accessed at www.jamesrivercoal.com)
|
||
|
May
18 - 19, 2010
|
European
Coal Outlook
Conference |
Nice,
France
|
|
June
23 - 24, 2010
|
McCloskey
Coal USA
|
New
York
|
|
August
10-12, 2010
|
Jefferies
6th Annual
Industrials
Conference |
New
York
|
18
|
Early
August
|
2nd
Quarter Earnings Release
|
19
Question and
Answer
Session
Session
