EX-99.1 2 dex991.htm WRITTEN PRESENTATION FOR THE DAVENPORT & COMPANY METALS & MINING SYMPOSIUM Written presentation for the Davenport & Company Metals & Mining Symposium
Davenport & Company
Metals & Mining Symposium
September 13, 2006
Exhibit 99.1

1
Forward-Looking Statements
Statements that are not historical fact are forward-looking statements and may involve a number of risks and
uncertainties.
We
have
used
the
words
“believe,”
“could,”
“estimate,”
“expect,”
“intend,”
“may,”
“plan,”
“predict,”
“project”
and similar terms and phrases, including references to assumptions, in this presentation to identify forward-
looking statements. These forward-looking statements are made based on expectations and beliefs concerning future
events
affecting
us
and
are
subject
to
uncertainties
and
factors
relating
to
our
operations
and
business
environment,
all
of which are difficult to predict and many of which are beyond our control, that could cause our actual results to differ
materially from those matters expressed in or implied by these forward-looking statements. The following factors are
among
those
that
may
cause
actual
results
to
differ
materially
from
our
forward-looking
statements:
market
demand
for
coal, electricity and steel; availability of qualified workers; future economic or capital market conditions; weather
conditions or catastrophic weather-related damage; our production capabilities; the ongoing integration of Anker and
CoalQuest into our business; the consummation of financing, acquisition or disposition transactions and the effect thereof
on our business; our plans and objectives for future operations and expansion or consolidation; our relationships with,
and other conditions affecting, our customers; the availability and costs of key supplies or commodities such as diesel
fuel,
steel,
explosives
and
tires;
prices
of
fuels
which
compete
with
or
impact
coal
usage,
such
as
oil
and
natural
gas;
timing of reductions or increases in customer coal inventories; long-term coal supply arrangements; risks in coal mining;
unexpected maintenance and equipment failure; environmental, safety and other laws and regulations, including those
directly
affecting
our
coal
mining
and
production,
and
those
affecting
our
customers’
coal
usage;
competition;
railroad,
barge, trucking and other transportation availability, performance and costs; employee benefits costs and labor relations
issues; replacement of our reserves; our assumptions concerning economically recoverable coal reserve estimates;
availability and costs of credit, surety bonds and letters of credit; title defects or loss of leasehold interests in our
properties which could result in unanticipated costs or inability to mine these properties; future legislation and changes in
regulations or governmental policies or changes in interpretations thereof, including with respect to safety enhancements;
the impairment of the value of our goodwill; the ongoing investigations into the Sago mine explosion; and our liquidity,
results of operations and financial condition; the adequacy and sufficiency of our internal controls and legal and
administrative proceedings, settlements, investigations and claim.
You
should
keep
in
mind
that
any
forward-looking
statement
made
by
us
in
this
presentation
speaks
only
as
of
the
date
on
which
we
make
it.
New
risks
and
uncertainties
arise
from
time
to
time,
and
it
is
impossible
for
us
to
predict
these
events
or
how
they
may
affect
us.
We
have
no
duty
to,
and
do
not
intend
to,
update
or
revise
the
forward-looking
statements in this presentation except as may be required by law. In light of these risks and uncertainties, you should
keep in mind that any forward-looking statement made in this presentation might not occur.

2
Ben Hatfield
President and Chief Executive Officer
Management Presenter

3
Prominent position in 3 of the 4 largest coal producing regions in the U.S.
Strong operating assets and large undeveloped reserve base provide
attractive internal expansion opportunities
Growing production levels and significant committed tonnage
Highly productive workforce that is 100% union free
Strong balance sheet with minimal long–term legacy liabilities
Investment grade customer base extends across diverse market regions
Experienced management team
Favorable coal industry fundamentals
Key Investment Considerations

4
Leading Appalachian coal producer formed in May 2004 by an investor group
led by Wilbur Ross
October 1, 2004 –
acquired 5 major mining complexes and substantial coal
reserves through the bankruptcy sale of Horizon assets
November 18, 2005 –
completed stock acquisition of Anker and CoalQuest
which added 5 mining complexes and boosted reserves by nearly 75%
November 21, 2005 –
began trading on NYSE under symbol ICO
December 12, 2005 –
completed $231 million equity offering
ICG Overview
Summary Statistics as of June 30, 2006
Revenue:
$435.5 mm
EBITDA:
$30.90 mm
Market capitalization¹
$902.5 mm
Senior Notes Offering:
$175mm @ 10¼%
Coal reserves²:
1.06 billion tons (proven and probable)
Coal production:
9.6 mm tons
Reserve life²:
Approximately 72 years
Notes:
1   Market capitalization is based on 152.7 million shares outstanding and a stock price of $5.91 as of September 7, 2006
2   ICG reserve data as of 3/31/2006

5
11 active mining complexes—6 in Central Appalachia, 4 in Northern
Appalachia and 1 in Illinois Basin
6 new mining complexes planned for future development
Flagship development will be the Tygart projects in Northern WV
–
200 million ton reserve developed with 2 major deep mine complexes
–
Favorable coal quality is marketable as low sulfur steam or hi-vol met
KY
VA
WV
ICG Eastern
ICG East
Kentucky
ICG Hazard
ICG Knott County
Current and Future Operations
Vindex Energy
Patriot Mining
Buckhannon / Spruce
Philippi
Development
Tygart #1
Big Creek
Beckley
Juliana
MD
ICG Illinois
IL
Future Operations
Current Operations
Jennie Creek
Denmark
Property
Flint Ridge Complex
Other Strategic Properties
Paw Paw Creek Property
OH
Raven Complex
Tygart #2
Current and Future Operations

6
1.06 billion tons of coal reserves controlled -
primarily high Btu, low
sulfur steam and metallurgical quality coal
-
564 million tons in Appalachian Region
-
496 million tons in Illinois Basin
All mine developments currently planned are in the Appalachian Region
IL developments are expected to be facilitated by increased deployment
of utility scrubbers and growing demand for coal conversion projects
Appalachian Reserve Profile
Total Reserve Profile
Owned vs. Leased
Heat Content (Btu)
Sulfur Content (%)
564 million tons
Total Reserve Profile
Met. vs. Steam
1.06 billion tons
High Caliber Reserve Base
18%
82%
> 12,500
< 12,500
88%
12%
< 1.5%
> 1.5%
72%
28%
Owned
Leased
70%
30%
Steam
Metallurgical
Note:
1   ICG reserve data as of 3/31/2006
1

7
Total Reserves—
% Owned vs. Leased
Years of Production Based on
Total Reserves
Source:  Company Reports
Notes:
1    Reserve data for peers as of 12/31/05; ICG reserve data as of 3/31/06 (Years based on total reserves divided by 2005 production.)
2    Arch reserve data is as of 12/31/05 as reported by Arch management and is not pro forma for the Magnum Coal transaction
Strong Reserve Position
1
1
72
56
45
42
17
13
7
3
0
10
20
30
40
50
60
70
80
72
65
52
46
29
26
24
19
0
10
20
30
40
50
60
70
80

8
Other expansion opportunities available:
—
Denmark Property –
150 million tons in Southern Illinois
—
Paw Paw Creek Property –
100 million tons in Southeastern Ohio
Projected Production
Production Outlook Summary
New Mine Developments
Note:
1    2005 pro forma for acquisition of Anker / CoalQuest
Projects Now Under Construction
Raven Complex –
Startup Q3 2006
–
1.2 mm tons/yr
Beckley Complex –
Startup mid 2007
–
1.4 mm tons/yr
Other Future Mine Development Projects
Tygart #1 Complex -
Planned Startup Mid 2008
Jennie Creek
Juliana Complex
Big Creek Complex
Tygart #2 Complex
Currently in Evaluation
& Planning Stages
14.9
17.0
17-19
8
10
12
14
16
18
20
22
24
26
2005
2006
2007
1

9
Typically 50% contracted by
middle of previous year with
another 35% contracted by end
of the previous year
Some committed tons are
subject to price reopeners
Committed Tonnage
Strong committed sales levels provide stable and predictable revenue
stream
Significant Committed Tonnage
67%
Committed
Projected Sales
20 mm tons
18-20 mm tons
Note:  As of September 11, 2006
98
55
12
33
2
0
25
50
75
100
2006
2007
Uncommitted
Committed and Not Priced
Committed and Priced

10
Strong Customer Base
Primarily investment grade utilities in the South-Southeast regions
ICG’s 3 largest customers are serviced by Central Appalachian operations
Georgia Power
Duke Energy
Carolina Power & Light
Northern Appalachian operations focus on Ohio Valley and Northeast utility
sector
Larger customers include AEP, PP&L, and Allegheny
IL complex has long-term contract with (Springfield) City Water Light &
Power, and also services broad truck-delivery industrial market
Efforts to expand metallurgical customer base now underway
Expect to resume Vindex met shipments to export traders in September
Active negotiations
w/domestic
buyers
on
Beckley
low
vol
met

11
100
100
97
92
87
61
60
56
3
8
13
39
40
44
0
20
40
60
80
100
ICG
James
River
Massey
Alpha
Arch
Peabody
Foundation
Consol
Non-Union
Union
Largest completely non-union coal company in the U.S.
Most peers are vulnerable to workplace disruption during 2006 United
Mine Workers of America (UMWA) contract renewals
Workforce Composition
Highly Productive, Non-Union Workforce

12
Reclamation
71%
Rockefeller
5%
Workers
Comp
2%
FAS 106
8%
Black lung
14%
Source: Company Reports as of 12/31/05
Total Legacy Liabilities
Notes:
1
Legacy liabilities include Post Retirement Benefits, Black Lung liabilities,
Reclamation liabilities, Workers Compensation and Coal Act Liabilities
2         As of 12/31/05 as reported by Arch management and is pro forma for
Magnum Coal transaction
Low Legacy Liabilities
ICG Legacy Liabilities
Total:  $119mm
2
($ in millions)
1
3,553
2,298
772
409
320
120
119
110
Consol
Peabody
Foundation
Massey
Arch
James
River
ICG
Alpha

13
Experienced Management Team
The members of ICG’s senior management team have, on average, 25
years of industry work experience
Position
Years in
Industry
Prior
Employer
Ben Hatfield
President and CEO
27
Arch
Scott Perkins
Senior Vice President,
KY and Illinois Operations
27
Horizon
Sam Kitts
Senior Vice President,
WV
and MD Operations
19
Alpha Natural
Resources
Roger Nicholson
Senior Vice President,
General Counsel & Secretary
20
Jackson Kelly
Michael Hardesty
Senior Vice President,
Sales & Marketing
23
Arch
Gene Kitts
Senior Vice President,
Mining Services
29
Arch
William Campbell
Vice President &
Treasurer
31
Horizon
Charles Snavely
Vice President,
Planning and Acquisitions
28
James River

14
Experienced Management Team
Brad Harris named CFO on September 6, 2006
CPA with 25 years of corporate and public accounting experience
15 years with Ernst & Young
Background in manufacturing and real estate sectors
Brings outstanding technical skills and financial expertise

15
350
375
400
425
450
475
500
1990
1995
2000
2005
2010
2015
2020
Demand Grows…
…Eastern Production Falls
U.S. Annual Coal Consumption by Sector
Appalachia Annual Production
Sources: EIA; Energy Ventures Analysis
…as Eastern utility stockpiles remain at the low end of historic ranges
Favorable Steam Coal Market Fundamentals
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
1970
1979
1988
1998
2007
2016
2025
Electricity
Other
Total

16
600
800
1,000
1,200
1,400
1,600
Global Crude Steel Production
Sources: World Steel Dynamics
Projected increase in global steel capacity in China, Brazil and
India
will support export demand for metallurgical coal
Favorable Outlook for Met Coal

17
Update on Sago Mine Accident
Mine explosion on January 2, 2006 resulted in 12 fatalities and critical injuries to
a 13   employee
ICG announced its initial findings from its independent investigation on March
15, but verification and further testing are ongoing.  Preliminary conclusions:
–
Explosion was likely triggered by lightning strike conducted into a sealed area
through mine infrastructure or roof strata
–
Explosive pressure significantly exceeded 20 psi
design criteria for mine seals
Preliminary findings
announced
jointly
by
MSHA
&
WV
OMHST
on
May
4
generally concur with most ICG findings; final reports not yet issued
-
WV OMHST Director has confirmed that NIOSH-MSHA seal tests indicate an
explosive force well above the design criteria
Estimated impact of accident to 2006 EBITDA is $15.2 million, of
which $11.7
million was incurred in the first quarter
ICG maintains substantial insurance policies to provide protection against
potential employer-negligence (or “Mandolidis”) liability
th

18
Maintain a conservative capital structure and flexible balance sheet to
support multiple internal growth initiatives
Pursue measured growth initiatives through the development of
owned and controlled reserves
Maintain financial flexibility for the possible acquisition of reserves
and/or operations
Financial and Investment Strategy

19
Historical Financial Summary
Notes:
1
Excludes freight and handling revenue
2
EBITDA is a non-GAAP measure. A reconciliation to net income is provided in the Appendix to this presentation
3
Includes capex and accounts payable (not included in GAAP reports)
Twelve months
ended
December 31,
Six
months ended
June 30,
LTM period
ended June 30,
($ in millions)
2005
2005
2006
2006
Tons sold
14.8
7.0
9.6
17.4
Revenue
$647.7
307.3
435.5
$775.9
% growth
27.0%
–
41.7%
19.8%
Average coal revenue / ton sold
$41.95
$41.23
$43.44
$43.07
EBITDA
$106.1
$56.1
$30.9
$80.9
% margin
16.4%
18.3%
7.1%
10.4%
Net income (loss)
$31.8
$19.9
($6.8)
$5.1
Capex
116.0
43.2
108.7
181.5
Cash
$9.2
$12.7
$65.8
$65.8
Total debt
49.6
175.5
197.7
197.7
1
2
3

20
Revised Financial Guidance for 2006
Lowered outlook due to idling Sycamore 2 mining complex and poor
cost performance at specific mining operations.
Sycamore 2 mine permanently downsized; net production drop of
1.5 million tons annually
Eliminating 1.7 million annual tons of high cost production at other
North/Central App operations
Currently projected 2006 coal production of approximately 17 MM tons,
with sales of approximately 20 MM tons, versus previous guidance
of 18
MM tons produced and approximately 22 MM tons sold.
Currently projected 2006 total revenues of approximately $0.9 billion
versus approximately $1.0 billion previously projected.
Projected Q3 EBITDA in the range of $8 MM-$10 MM. Projected Q4
EBITDA in the range of $25 MM-$30 MM.  Projected 2006 EBITDA now
in the range of $65 MM-$70 MM, down from $130 MM-$150 MM range.
Projected 2006 earnings now net loss of  $10 MM-$15 MM, or ($0.07)-
($0.10) per fully diluted share, versus earlier guidance of net earnings
of $23 MM-$33 MM, or $0.15-$0.21 per fully diluted share.

21
Total Revenue
Total EBITDA
1, 2
Financial Performance Summary
Notes:
1  EBITDA is a non-GAAP measure. A reconciliation to net income is provided in the Appendix to this presentation
2  2005 performance includes only the portion of Anker
and CoalQuest
activity post the November 18, 2005 merger date
Total Coal Revenue
0
200
400
600
800
1,000
1,200
2004
2005
2006
477
619
850
0
200
400
600
800
1,000
1,200
2004
2005
2006
510
648
900
40
60
80
100
120
140
160
2004
2005
2006
52
106
65-70
2
2

22
1
All industry players have experienced
higher costs:
–
Diesel fuel and energy
–
Steel and roof bolts
–
Tires
–
ANFO and other explosives
–
Labor and healthcare costs
In addition, other factors such as
thinning coal seams in the
Appalachian region have made
expansion and growth more
challenging
ICG believes that its reserve base
will support low-cost production
growth relative to peers and that its
balanced production profile will
support financial stability
Sector Cost Increases
Estimated Price Increase
2005 over 2004 (%)
Diesel Fuel (per gallon)
~28%
Tires (per tire)
~22%–63%
ANFO (per ton)
~25%
Labor Costs
~8%
Cost increases experienced by peers
1
Calculation includes only ICG operations in Q4 2004
21.8%
18.5%
16.2%
15.4%
13.7%
13.2%
12.5%
10.7%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
Arch CAPP
Region
James River
CAPP
Region
Massey
Consol
Alpha
Company
Mines
ICG
Alpha
Contract
Mines
Foundation

23
60%
60%
40%
40%
0
100
200
300
2002
2003
2004
2005
2006E
Predecessors
Capital Expenditures ($mm)
In 2005-2006, majority of capital dedicated to upgrading aged equipment
fleet. Development projects included Flint Ridge and Raven.
In 2007-2009, $855 million in planned capex
expected to be scaled back to
focus growth capital on projects that offer greatest return
–
Priority development projects Sentinel-Clarion, Beckley and Tygart #1
Total
29
23
39
116
Capital Expenditures
214
Maintenance
Growth

24
71.2
65.2
57.4
57.0
45.4
39.2
30.2
23.0
74.3
80.6
70.8
64.5
52.4
63.0
79.6
32.7
0
25
50
75
100
Alpha
Foundation
James River
Massey
Arch
Peabody
Consol
ICG 6/30/06
Debt / Capitalization
Legacy-Adjusted Debt / Capitalization
Total Debt / Capitalization Comparison
ICG maintains the lowest debt / capitalization ratio in the sector
Note:
1    Legacy liability adjustments include post retirement benefits, black lung liabilities, reclamation liabilities, workers compensation and Coal Act liabilities
1

25
Prominent position in 3 of the 4 largest coal producing regions in the U.S.
Strong operating assets and large undeveloped reserve base provide
attractive internal expansion opportunities
Growing production levels and significant committed tonnage
Highly productive workforce that is 100% union free
Strong balance sheet with minimal long–term legacy liabilities
Investment grade customer base extends across diverse market regions
Experienced management team
Favorable coal industry fundamentals
Key Investment Considerations

26
Questions & Answers

27
Appendix
EBITDA represents income from continuing operations before deducting net interest expense, income taxes, depreciation, depletion, amortization,
and minority interest.  We present EBITDA because we consider it
an important supplemental measures of our performance and believe it is
frequently used by securities analysts, investors and other interested parties in the evaluation of companies in our industry, substantially all of which
present EBITDA when reporting their results.
We also use EBITDA for the following purposes: Our executive compensation plan bases incentive compensation payments on our EBITDA
performance measured against budgets and a peer group.  Our amended and restated credit facility uses EBITDA (with additional adjustments) to
measure our compliance with covenants, such as interest coverage
and debt incurrence.  EBITDA is also widely used by us and others in our
industry to evaluate and price potential acquisition candidates.
EBITDA has limitations as an analytical tool, and you should not
consider it in isolation, or as a substitute for analysis of our results as reported under
GAAP.  Some of these limitations are:
EBITDA does not reflect our cash expenditures, or future requirements, for capital expenditures or contractual commitments;
EBITDA does not reflect changes in, or cash requirements for, our working capital needs;
EBITDA does not reflect the significant interest expense, or the
cash requirements necessary to service interest or principal payments, on
our debts;
Although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced
in the future, and EBITDA does not reflect any cash requirements
for such replacements; and
Other companies in our industry may calculate EBITDA differently
than we do, limiting its usefulness as comparative measures.
EBITDA is a measure of our performance that is not required by, or presented in accordance with, GAAP and we also believe it is a useful indicator
of our ability to meet debt service and capital expenditure requirements.  EBITDA is not a measurement of our financial performance under GAAP
and should not be considered as an alternative to net income, operating income or any other performance measures derived in accordance with
GAAP or as an alternative to cash flow from operating activities
as a measure of our liquidity.
The following table reconciles net income, which we believe to be the closest GAAP performance measure, to EBITDA.
Year ended
December 31,
2005
Six months 
ended June 30,
2005
Six months
ended June 30,
2006
Net income (loss)
31,825
19,949
(6,790)
Interest expense, net
(14,394)
18,307
33,692
Income tax expense
16,676
6,610
(6,383)
Depreciation, depletion and amortization expense
43,195
11,220
87
EBITDA
106,075
56,086
30,863