Formed in 2009 by Nathan Tinkler, Aston Resources is the key mining development entity associated with the Tinkler Group. Nathan is Aston’s major shareholder (31.7 per cent) and is non-executive Chairman.
Aston Resources is an independent Brisbane-based coal company with a mandate to secure greenfield and brownfield coal projects in New South Wales and Queensland. It owns 85%[1] of and is in the process of developing the Maules Creek coal project.
Maules Creek, located in the Gunnedah Basin of New South Wales, is considered to be one of the last remaining undeveloped “Tier 1” coal mining assets in Australia. With 329MT of Marketable Reserves, Maules Creek is one of the largest coal deposits in Australia.
Maules Creek contains a large delineated JORC Resource of more than 679Mt and JORC Coal Reserves of more than 362Mt. The significant resource base is expected to sustain a potential project life of more than 30 years. Aston expects the mine will have average saleable coal production of 10.8Mt per annum.
Maules Creek’s production mix is expected to comprise a majority of metallurgical coal (the latest coal quality analysis confirmed that the Maules Creek Project has the capacity to produce approximately 84% metallurgical coal[2]) and also premium export thermal coal. Due to the high quality and versatility of its raw coal, Aston Resources will be able to optimise its product mix to respond to changing market demands.
Aston Resources plans to sell the coal produced at Maules Creek into the export market, but has the flexibility to sell a portion of the coal to Australian-based companies seeking high quality coal for blending purposes.
Nathan Tinkler was instrumental in Aston’s A$480m purchase in February 2010 of Maules Creek.
In August 2010, Aston Resources was successfully listed on the Australian Securities Exchange (ASX) (code: AZT) with a market capitalisation of A$1.2bn.
In December 2011, Aston and Whitehaven Coal announced that they had agreed to an all-scrip merger of equals that would result in the creation of a leading independent Australian coal producer.
Whitehaven has also agreed, conditional on the Aston/Whitehaven merger proceeding, to acquire 100% of Tinkler Group’s unlisted coal explorer, Boardwalk Resources Limited.
This merger is expected to have no impact on the development of Aston’s Maules Creek mining project.
The directors of both Aston and Whitehaven are strongly supportive of the proposed merger, believing it creates a compelling opportunity to increase value for all shareholders.
Following completion of the transaction, the merged company, to be known as Whitehaven Coal Limited, will have a pro forma market capitalisation of approximately A$5 billion[3], attributable resources in excess of 2 billion tonnes and projected coal production of 25Mt by FY2016 (100% basis)[4].
The merged company will have a high quality portfolio of producing mines, major development projects and attractive exploration assets and will be in an excellent position to generate enhanced value for all shareholders.
The combined assets of the merged company will include:
- Aston’s stake in the major Maules Creek development in NSW;
- Boardwalk’s various exploration projects in Queensland and NSW;
- Whitehaven’s Narrabri, Rocglen, Sunnyside, Tarrawonga and Werris Creek mines; and
- Whitehaven’s Gunnedah Coal Handling & Preparation Plant (CHPP).
The transaction is subject to a number of conditions including Aston shareholder and regulatory approvals, and is scheduled to be completed in May 2012.
Aston and Whitehaven have complementary assets and teams in the Gunnedah Basin that make this transaction a compelling, transformative and unique opportunity for both companies.
The new company will be chaired by Aston’s current non-executive Deputy Chairman, the Hon. Mark Vaile, with Tony Haggarty of Whitehaven as Managing Director.
Aston’s head office is in Brisbane with additional offices in Sydney and Boggabri.
For More Information Visit:
www.astonresources.com
[1] Aston has entered into an agreement to sell a 10% interest in the Maules Creek Project to J-Power. If this transaction completes, Aston’s interest in the Maules Creek Project will be reduced from 85% to 75%.
[2] Aston currently plans to market up to 80% metallurgical coal given existing off-take commitments. Actual production is likely to vary on an annual basis as a function of supply, demand and other market conditions.
[3] Subject to the Aston scheme being approved and the Boardwalk transaction completing. Market capitalisation based on undiluted shares on issue and closing prices as at 9 December 2011; includes value attributed to Boardwalk Resources.
[4] All estimates and projections are based on an assessment of present economic conditions and other assumptions regarding future events and actions. Such estimates and projections are not guarantees of future performance and involve uncertainty and risk and are therefore subject to change.
