Slide 1: Financial Results Release Full Year 2023
Financial Results Release Full Year 2023
Slide 2: Important information about this document
Important information about this document The presentation in this document is in summary form only. It should be read together with New Hope Corporation Limited’s (“NHC’s”) other announcements lodged with the Australian Securities Exchange, which are available at www.asx.com.au While NHC has prepar
Slide 3: Highlights
Final Ordinary Final Special Total Shareholder Returns1 Dividend Dividend 21c 9c $2.29 Per share Per share 22% Decrease ($2.92 FY22) Underlying EBITDA2 NPAT (before non-regular items) Highlights $1,087M $1,747M 11% Increase 11% Increase Robert Bishop Chief Executive Officer Total Tonnes Sold Safety
Slide 4: Overview and Operational Performance
Overview and Operational Performance 4
Slide 5: Shifting market dynamics creating price volatility but pricing outlook remains above long-term average
Shifting market dynamics creating price volatility but pricing outlook remains above historical long-term average gC NEWC Index (US$/t) 500 La Nina supply disruptions 450 Russian invades Ukraine 400 350 China’s NDNC Sustained period of environmental jawbones market 300 debate that questions the role
Slide 6: Returns supported by low cost, high quality assets critical for the transition
Returns supported by low cost, high quality assets that will be critical for the transition to a decarbonised economy Seaborne Thermal Coal Energy by Country 2022 Australian thermal coal has a higher rank and 7,000 higher delivered energy enabling less coal to 6,322 6,244 6,143 6,127 6,033 6,053 be
Slide 7: Australia at risk of losing global competitive advantage with cost imposts and inflation
Australia at risk of losing global competitive advantage with additional cost imposts and inflationary impacts Cost Increases for Coal Producers (US$/t) (2021 – 2022) Unit Costs of key Australian Producers (AU$/t) 2021 – US$100/t 25 100.0 24 22 90.0 80.0 18 70.0 15 60.0 13 50.0 40.0 8 30.0 20.0 10.0
Slide 8: NSW Coal Operations – Bengalla
NSW Coal Operations – Bengalla1 Historical and Forecast Coal Production (Mtpa)¹ Flagship asset delivering near-term growth, improved coal quality and consistent low cost 12.0 Production impacted by weather and Covid 10.0 Productivity improvements in second half, 8.0 following adverse weather during
Slide 9: Bengalla Growth Project
Bengalla Growth Project¹ Production ramp up to 13.4Mtpa ROM by September 2024 Growth Project Spend (A$m) Growth fleet increasing waste production and 2023 87 saleable production 2024 54 $200 million investment funded through operating cash flows over 2023 – 2026 financial year 2025 27 Product qualit
Slide 10: QLD Coal Operations - New Acland Stage 3
QLD Coal Operations - New Acland Stage 3 Forecast Coal Production (Mtpa) 6.0 First coal sale in 2024 financial year and ramping up 5.0 to deliver 5.0Mtpa by 2027 financial year 4.0 3.0 2.0 Low capital investment of $459m over three 1.0 financial years funded by operational cash flows 0.0 Term 2024 2
Slide 11: Strategic Investments – Malabar Resources Limited
Strategic Investments – Malabar Resources Limited1 15% Equity Investment held in Malabar Resources Limited. Flagship asset is the Maxwell Mine Construction activities commenced during the period and first coal produced and shipped during quarter 4 Targeting up to 6.5Mtpa¹ saleable production, predom
Slide 12: Financial Results
Financial Results Rebecca Rinaldi Chief Financial Officer 12
Slide 13: Financial highlights
Financial highlights Historical Sales Price and NHC Share Price Realised Price ($AUD) Total Revenue 500.0 450.0 $346.73/t $2,754M 400.0 23% Increase 8% Increase 350.0 300.0 Operational cash flow Share Price1 250.0 200.0 $1,525M $6.22 150.0 34% Increase 42% Increase 100.0 50.0 Government Contribution
Slide 14: Site cash costs increase due to inflationary pressures and weather
Site cash costs (A$/Sales t) increase due to inflationary pressures and temporary weather and project costs on volumes Site cash cost Inflationary impacts Growth & Volume impacts +21% $56.7/t 21% Increase 56.7 50.2 47.0 3.4 Inflationary impacts 0.3 1.0 2.1 1.0 0.8 1.1 $3.2/t 33% contribution to site
Slide 15: Low-cost assets continue to generate strong margins
Low-cost assets continue to generate strong margins (A$/Sales t), underpinning significant operational cash flow Underlying EBITDA1 margin 346.7 Underlying FOB cash cost $233.4/t 40% Increase 56.7 +40% 27.3 Underlying FOB cash cost 233.4 13.6 15.7 167.1 $113.29/t 1% Decrease Mining Royalties Paid $2
Slide 16: Strong cash generation with focus on capital management initiatives
Strong cash generation with a focus on capital management initiatives to improve short and long-term shareholder returns Capital Allocation $1,398M 1,525 98 Capital allocation 126% Increase 367 Dividends Paid 192 $839M 490 731 172% Increase 716 349 13 Closing cash balance 31-Jul-22 Cash flow from Ca
Slide 17: Consistent outperformance since IPO in 2003
Consistent outperformance since IPO in 2003 • Disciplined allocation of capital leading to TSR of 21.83%1 compared to the ASX All Ordinaries2 of 8.85% per annum • Total return on investment since IPO of 4978% 11x greater than the ASX All Ordinaries of 440% Cumulative performance to 31 July 2023 (inc
Slide 18: Capital management – aligned to long-term strategy
Capital management – aligned to long-term strategy • 21cps - FY23 Fully Franked Final Ordinary Dividend Fully Franked • 9cps - FY23 Fully Franked Final Special Dividend Dividends • Total fully franked dividends declared and paid/payable for FY23 70cps On market Share Buy-back • Total of $192.4 milli
Slide 19: Financial year performance
Financial year performance +11% Underlying EBITDA1 $m 1,577 1,747 2023 2022 $m $m 465 517 367 290 EBITDA before non regular items 1,746.6 1577.4 Depreciation and Amortisation (141.6) (141.1) 2018 2019 2020 2021 2022 2023 +11% Net Financial Income and Expenses 24.3 (14.6) NPAT $m 1,087 Profit before
Slide 20: Responsible Operator
Responsible Operator Dominic O’Brien Executive General Manager 20
Slide 21: Prioritising safety and wellbeing
Prioritising safety and wellbeing All Injury Frequency Rate (AIFR) 40.0 -8.7% Sustained significant improvement in 30.0 33.32 29.72 29.78 performance of AIFR and TRIFR 20.0 27.10 10.0 Stop for Safety Program 0.0 Pursuing High Reliability Organisation Jan-22 Mar-22 May-22 Jul-22 Sep-22 Nov-22 Jan-23
Slide 22: Our People, securing an engaged workforce
Our People, securing an engaged workforce Workforce Ramp-Up Workforce Locally employed Contractor conversion targeting 90% Bengalla permanent FTE 908 93% Acland +304 1,212 1,115 64 Female Male 89% Bengalla 908 104 103 240 17% 83% FY23 Promotions Average tenure 45 Female 55% 6 years 908 908 Voluntary
Slide 23: Framework for enhancing diversity and inclusion
Framework for enhancing diversity and inclusion Outcomes & Engagement Community Identity Diversity of Thought and Experience Creating Access Leadership, Mentorship & Education Development Employment Physical Values and Programs Providing and Pathways Environment Behaviours Education programs partici
Slide 24: A responsible neighbour, contributing to our communities
A responsible neighbour, contributing to our communities Ramping up engagement following New Acland Stage 3 approval, including through: • new Community Information Centre • increased resourcing • community and supplier information sessions Formal community needs analysis review at Bengalla, to guid
Slide 25: Preparing for mandatory GHG emission reductions and climate-related reporting
Preparing for mandatory GHG emission reductions and climate-related reporting Key progress areas during FY23 Bengalla Scope 1 and 2 Emissions (tCO2-e) FY22 Continued detailed emissions profiling Total Emissions tCO2-e Decarbonisation Opportunities Scope 1 Scope 2 Enterprise Decarbonisation 8% Electr
Slide 26: Rehabilitation and Agriculture working together for better outcomes
Rehabilitation and Agriculture working together for better outcomes Our landholdings are used for a range of purposes in addition to mining, including agricultural operations Agricultural operations adjacent to operating mines are used for cropping and cattle grazing, and dairy farming in the case o
Slide 27: Investigating alternative energy precinct at New Acland
Investigating alternative energy precinct at New Acland within Southern Queensland Renewable Energy Zone Kogan Power Tarong Power Conducted preliminary engineering study into a potential pumped Station – 123km Station – 75km hydro project developed alongside mining operations Darling Downs Power Sta
Slide 28: Outlook and Strategy
Outlook and Strategy Robert Bishop Chief Executive Officer 28
Slide 29: Demand outstripping supply, with future growth from developing countries
Demand outstripping supply, with future growth expected from developing countries, predominately South-East Asia Bubble size indicate electricity demand 14,000 Taiwan Developing countries energy needs increasing, 12,000 creating demand growth Energy Consumption per capita 10,000 Korea 8,000 Emission
Slide 30: 1.5 degree, net zero by 2050 becoming increasingly difficult to achieve
1.5 degree, net zero by 2050 becoming increasingly difficult to achieve, highlighting the need for Australia’s low emission, high quality coal 2022 Global Demand vs Supply – 1.5 Global Demand vs Supply – Base case degree scenario (by operating status) 1,600 (by operating status) 1,200 1,400 1,000 1,
Slide 31: Global Cost Curve 2030
Global Cost Curve 2030 Portfolio of assets are in the lowest cost quartile providing business resilience to demand decline from decarbonisation 250 2030 Global Seaborne Thermal Coal Cost Curve (Quality Adjusted) Bengalla 2030 TCC quality adjusted (to GAR benchmark), (US$/tonne, real terms, FX: $0.77
Slide 32: Positioned for long-term organic growth, lower risk and high return
Positioned for long-term organic growth, lower risk and high return 15.0 14.0 Significant supply gap forecast for high quality coal as the 13.0 world transitions to a decarbonised economy and coal 12.0 generation as a share of world energy mix increases Saleable coal produced (Mtpa) 11.0 10.0 9.0 8.
Slide 33: Thank you
Thank you Contact us Level 16/175 Eagle St Brisbane City QLD 4000 (07) 3418 0500 newhopegroup.com.au