New Hope Corporation Limited · ASX:NHC
New Hope — H1 FY2008 Earnings Presentation
40 slides from New Hope's earnings presentation, Mar 27, 2008
Slide 1: Analysts Briefing: Six Months Ended 31 January 2008
For personal use only Analysts Briefing Six Months Ended 31 January 2008 27 March 2008 Presented by: Rob Neale, Chief Executive Officer
Slide 2: Disclaimer
Disclaimer For personal use only IMPORTANT: The information in this document has been provided to you for information only by New Hope Corporation Limited (“NHC”) and is subject to change without notice. Nothing contained in this document constitutes investment, legal, tax or other advice. The infor
Slide 3: Agenda
Agenda For personal use only Highlights of Past Six Months Financial Overview and Operations Summary New Acland Operations Re-activation of Jeebropilly Mine Queensland Bulk Handling Exploration Activities Other Activities Outlook 27 March 2008 3
Slide 4: Highlights of Past Six Months
Highlights of Past Six Months For personal use only Operating profit up 9.4% to $36.6 million via strong production and sales; Interim dividend increased to 2.25 cents per share; New Acland performing well and poised for further growth; Reactivating Jeebropilly mine to replace New Oakleigh; QBH achi
Slide 5: Key Financials
Key Financials For personal use only Six months ended 31 January 2008 2007 Change Total revenue $148.8m $123.1m +20.9% Profit from operations $36.6m $33.5 +9.4% Net profit after non $36.6m $40.1m -8.6% recurring items Earnings cents per share 4.5 5.0 -8.9% 2.25 cents 2.1 cents Interim Dividend +7.1%
Slide 6: Production Volumes
Production Volumes For personal use only Six months ended 31 January (million tonnes) 2008 2007 Change New Acland 1.91 1.20 +59% New Oakleigh 0.26 0.26 - Jeebropilly - 0.33 - (mine closed February 2007) TOTAL 2.17 1.79 +21% 27 March 2008 6
Slide 7: Sales Volumes
Sales Volumes For personal use only Six months ended 31 January (million tonnes) 2008 2007 Change Export 1.67 1.21 +38% Domestic 0.63 0.71 -11% TOTAL 2.30 1.92 +20% 27 March 2008 7
Slide 8: Key Profit Drivers
Key Profit Drivers For personal use only New Hope’s profit for the six months to 31 January 2008 benefited from: – Higher production and sales volumes; – Higher export sales prices in US Dollar terms. Offset by: – Higher AUD:USD exchange rate; – Lower interest revenue. 27 March 2008 8
Slide 9: South East Queensland - Coal Mines and Deposits
Kingaroy For personal use only Chinchilla Kogan Creek Tarong Wilkie Creek Dalby Acland Fisherman Islands Coal Terminal Open Cut Coal Mine Oakey BRISBANE Coal Deposit Oakleigh Power Station Toowoomba Ipswich Ipswich Town Railway Jeebropilly Coal Measure Swanbank Export Port Millmerran Millmerran N Wa
Slide 10: New Acland Operations: Mine Development
New Acland Operations Mine Development For personal use only Production planned to increase to the rate of 4.2 million tonnes per annum from mid 2008. – Rail constrained. Mining Lease application lodged to increase production to 10 million tonnes per annum. – Interim expansions possible over next fo
Slide 11: New Acland Operations: Wetalla Water Project
New Acland Operations Wetalla Water Project For personal use only Recycled water from Toowoomba City Council; 46 kilometre pipeline; Design work and public consultation underway; Effectively “drought proofs” the New Acland operations and provides capacity to 10 Mtpa; Anticipated completion in 2009.
Slide 12: Reactivate Jeebropilly Mine Proposal
Reactivate Jeebropilly Mine Proposal For personal use only New Oakleigh likely to close end 2008 – early 2009; – Reserves consumed at 500 KTPA. Jeebropilly washplant continued operations with New Oakleigh coal; Reactivate Jeebropilly mine in third quarter 2008 subject to: – Government approvals; – P
Slide 13: Queensland Bulk Handling: Coal Throughput
Queensland Bulk Handling Coal Throughput For personal use only Six Months Ended 31 January (million tonnes) 2008 2007 Change Coal Throughput 2.8 2.1 +33% * Essentially demurrage free coal terminal 27 March 2008 13
Slide 14: Queensland Bulk Handling: Summary
Queensland Bulk Handling Summary For personal use only New Hope acquired the remaining 50% of QBH on 1 August 2007; QBH total coal throughput for calendar 2007 was 5.26 million tonnes; Expansion project to increase capacity to 7 million tonnes per annum underway. – Scheduled completion October 2010.
Slide 15: For personal use only
For personal use only 27 March 2008 15
Slide 16: Queensland Bulk Handling: Conceptual Layout Model
Queensland Bulk Handling Conceptual Layout Model For personal use only 27 March 2008 16
Slide 17: Queensland Bulk Handling: View of Upstream Expansion
Queensland Bulk Handling View of Upstream Expansion For personal use only 27 March 2008 17
Slide 18: Queensland Bulk Handling: View of Upstream New Settlement Pond
Queensland Bulk Handling View of Upstream New Settlement Pond For personal use only 27 March 2008 18
Slide 19: Central Queensland Projects
Central Queensland Projects For personal use only 2 3 1 New Saraji 2 Lenton 1 3 Bee Creek 27 March 2008 19
Slide 20: New Saraji Project: Exploration Programme
New Saraji Project Exploration Programme For personal use only 27 March 2008 20
Slide 21: New Saraji Project: Indicative Coal Quality
New Saraji Project Indicative Coal Quality For personal use only Quality Parameter Value Range Ash 8.0 – 8.5% Volatile Matter 17 – 18% Crucible Swelling Number 8–9 Geiseler Fluidity ddm 20 – 50 Mean Maximum Reflectance 1.60 – 1.65 Vitrinite ~60% Carbonisation Tests Seam CSR CRI P08 60.6 26.4 H16 59.
Slide 22: New Saraji Project: Summary
New Saraji Project Summary For personal use only Mining lease application submitted (MLA 70383); Drilling and coal quality analysis continued; – Total drill holes 114; – Open holes 6,814m and core holes 2,168m; – Coal quality analysis ongoing; – Geotechnical and gas testing progressing. New undergro
Slide 23: Lenton and Bee Creek Projects
Lenton and Bee Creek Projects For personal use only 27 March 2008 23
Slide 24: Lenton Project: Summary
Lenton Project Summary For personal use only Drilling and coal quality analysis continued; – Total drill holes 200; – Open holes 1,901m and core holes 95m; – Coal quality analysis ongoing. Drilling confirmed significant underground coking coal potential, previously identified by seismic survey; New
Slide 25: Lenton Project Exploration
Lenton Project Exploration For personal use only ` 27 March 2008 25
Slide 26: Lenton Project Underground Potential Seismic Profile
Lenton Project Underground Potential Seismic Profile For personal use only ` 27 March 2008 26
Slide 27: Lenton Project Cross Section
Lenton Project Cross Section For personal use only Open Cut Resource B Burton Open Cut A A A Lenton Syncline B 27 March 2008 27
Slide 28: Bee Creek Project: Summary
Bee Creek Project Summary For personal use only Continued to refine drilling target using remote sensing techniques; – Hyperspectral mapping indicates possible Moranbah and Rangal coal measures within New Hope’s lease; – Drill targets will be tested when drill rigs are available. 27 March 2008 28
Slide 29: Bee Creek Project: Target Shallow Rangal and Moranbah Coal Measures
Bee Creek Project Target shallow Rangal and Moranbah Coal Measures For personal use only 27 March 2008 29
Slide 30: Bee Creek Project: Hyperspectral Image Processing
Bee Creek Project Hyperspectral Image Processing For personal use only Rangal Coal Measures Moranbah Coal Measures Rangal Coal Measures 27 March 2008 30
Slide 31: Downs Project
Downs Project For personal use only 27 March 2008 31
Slide 32: New Hope JORC Resources
New Hope JORC Resources For personal use only As at 18 March 2008 Project Status Proven Probable Marketable Measured Indicated Inferred Total Reserves Reserves Reserves Resources Resources Resources Resources (mt) (mt) (mt) (mt) (mt) (mt) (mt) New Acland Mine 231 200 234 260 422 107 789 New Oakleigh
Slide 33: Other Activities
For personal use only Other Activities
Slide 34: Arrow Energy Tenure Map
Arrow Energy Tenure Map For personal use only Shareholding at 31/01/08 17.8% Cost of shares $112M Market value at 25/03/08 $223M Unrealised profit before tax $111M Moranbah Styx Basin Boyne River Surat Basin Clarence Moreton 27 March 2008 34
Slide 35: Coal to Liquids Project: Plant Concept
Coal to Liquids Project Plant Concept For personal use only Gas Heating Source Power Generation Coal Wash Plant Clean Coal Coal Gassifier LIQUIDS PLANT Diesel , Gasoline & Jet Fuel Raw Coal Coal Mine Inert Waste Sulphur By-Product Carbon Enrichment By-Product 27 March 2008 35
Slide 36: Coal to Liquids Project: Status
Coal to Liquids Project Status 1 For personal use only Targets: – Closed system except for gasification heat source; – Less than 15% carbon dioxide emissions; – No dioxins, furans, slag, slurry; – Catalysts recycled; – Water consumption less than 2.5 litres per litre of liquids; – Liquids yield grea
Slide 37: Coal to Liquids Project: Next Steps
Coal to Liquids Project Status 2 For personal use only Next Steps: – Confirm gasification performance 3Q, 2008 – Assess catalysts performance 3 – 4Q, 2008 – Initiate fully integrated tests 4Q, 2008 / 1Q, 2009 – Initiate Government approvals process 2Q, 2008 27 March 2008 37
Slide 38: Outlook
Outlook For personal use only New Hope’s likely production for 2007/08 year is approximately 4.4 million tonnes. Thermal coal prices remain firm. Second six months result likely to be higher due to: – Higher export sales prices; – Possibly offset by higher exchange rate. 27 March 2008 38
Slide 39: Summary
Summary For personal use only New Hope Corporation: – is a Low Cost Producer; – is Profitable; – has Reserves; – has the Projects; – has a Strong Balance Sheet; – has a Strong Future. 27 March 2008 39
Slide 40: The Independent Energy Alternative
For personal use only “The Independent Energy Alternative”