New Hope Corporation Limited · ASX:NHC
New Hope — FY2013 Earnings Presentation
49 slides from New Hope's earnings presentation, Sep 17, 2013
Slide 1: 2013 Financial Results Presentation
NEW HOPE CORPORATION LIMITED 2013 Financial Results Presentation 17 September 2013
Slide 2: Disclaimer
DISCLAIMER 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 information in this documen
Slide 3: Agenda
AGENDA • Key Financials and Operations Summary • Port Operations • Mining Operations & Projects • Energy Activities • Community & Social Responsibility • Outlook 3 | 17 September 2013
Slide 4: Key Financials & Operations Summary
KEY FINANCIALS & OPERATIONS SUMMARY
Slide 5: Highlights of Past 12 Months
HIGHLIGHTS OF PAST 12 MONTHS • Profit Result – Net profit after tax before non-recurring items for the year $125.0 million – Comprising: • $80.2 million from coal mining, marketing and logistics operations • $44.7 million from investments – Non-Recurring items for the year totalling $50.8 million af
Slide 6: Key Financials
KEY FINANCIALS 12 Months Ended 31 July (A$m) 2013 2012 Change Revenue from ordinary activities $652.1m $767.5m -15.0% Profit before income tax: before non-recurring items $172.6m $238.0m -27.5% Profit before income tax: after non-recurring items $122.0m $198.8m -38.6% Net profit after tax: before no
Slide 7: Dividends
DIVIDENDS 12 Months Ended 31 July (cents per share) 2013 2012 Change Interim dividend 6.0 6.0 0% Final dividend 5.0 5.0 0% Special dividend 5.0 20.0 -75% TOTAL 16.0 31.0 -48% 7 | 17 September 2013
Slide 8: Non-Recurring Items
NON-RECURRING ITEMS * Profit before non-recurring items contained in this report has not been 12 Months Ended 31 July audited in accordance with the Australian Auditing Standards (A$million) 2013 2012 Profit Before Tax and non-recurring items 172.6 238.0 Income Tax Expense on profit before non-recur
Slide 9: Production & Sales Performance
PRODUCTION & SALES PERFORMANCE Australian Operating Results 7,000 Production Sales 6,000 Tonnes - 000's 5,000 4,000 3,000 2,000 1,000 - 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Years ended 31 July 9 | 17 September 2013
Slide 10: Production & Sales Tonnages
PRODUCTION & SALES TONNAGES 12 Months Ended 31 July (tonnes 000s) 2013 2012 Change Raw Coal Production 11,405 12,340 -7.6% Saleable Coal Production 5,826 6,287 -7.3% Coal Sold 5,985 6,250 -4.2% 10 | 17 September 2013
Slide 11: Coal Production Volumes
COAL PRODUCTION VOLUMES 12 Months Ended 31 July (million tonnes) 2013 2012 Change New Acland 4.69 5.09 -7.8% New Oakleigh 0.27 0.35 -22.8% Jeebropilly 0.87 0.85 2.3% TOTAL 5.83 6.29 -7.3% 11 | 17 September 2013
Slide 12: Coal Sales Volumes
COAL SALES VOLUMES 12 Months Ended 31 July (million tonnes) 2013 2012 Change Export 5.80 5.83 -0.5% Domestic 0.19 0.42 -54.8% TOTAL 5.99 6.25 -4.2% 12 | 17 September 2013
Slide 13: Group NPAT Comparison
GROUP NPAT COMPARISON Profit before tax and non recurring items 290 270 1.1 4.1 250 18.1 230 238.0 21.9 85.9 210 190 2.0 1.9 6.0 18.5 170 0.3 172.6 150 13 | 17 September 2013
Slide 14: Port Operations
PORT OPERATIONS NEW HOPE GROUP
Slide 15: QBH Port Facility
QBH PORT FACILITY 12 Months Ended 31 July (million tonnes) 2008 2009 2010 2011 2012 2013 Coal Throughput 5.47 6.12 6.67 6.52 8.73 8.73 TOTAL GROWTH 21% 12% 9% (2%) 34% 0% NHC Growth 24% 20% 26% 2% 17% 0% 15 | 17 September 2013
Slide 16: QBH Port Facility Summary
QBH PORT FACILITY Summary • Remained essentially a demurrage free port • Shipped 8.73 million tonnes in 113 vessels during 2013 • 14 month free of Lost Time Injury milestone achieved • Commencement of engineering studies required for potential expansion of the port • Targeted business improvement pr
Slide 17: QBH Facility Capacity Upgrade
QBH FACILITY Capacity Upgrade • Bottom Dump Upgrade Front End Engineering Study (FEED) completed • Budget pricing exercise in progress based on FEED • Detailed design for upgrade of all QBH fixed plant now in progress 17 | 17 September 2013
Slide 18: Business Improvement: D10T Blade Comparison
BUSINESS IMPROVEMENT D10T Blade Comparison • Detailed simulation compared the performance of three different dozer blades (results shown in Blade A, Blade B, Blade C) Amount of coal pushed Force required Note: Blade C found to under-utilise the available dozer power Best performing blade: Blade A •
Slide 19: Mining Operations & Projects
MINING OPERATIONS & PROJECTS
Slide 20: Project Locations
PROJECT LOCATIONS Location Map 20 | 17 September 2013
Slide 21: Mining Operations Summary
MINING OPERATIONS Summary • New Acland – Increased focus on improving safety performance – Mining fleet renewal program underway with delivery of two new Cat D11T dozers and a fleet of new larger Cat 793 trucks during 2013/14 – Seeking mine plan approval to 2030 – Cost management programs including
Slide 22: New Acland Continuation Plan
NEW ACLAND COAL MINE New Acland Continuation Plan • Revised New Acland Coal Mine Stage 3 Project: Approx. jobs: 400 direct, 170 FTE contract, 2,850 indirect Production capacity: up to 7.5 Mtpa Thermal Coal Approx. $530 million per annum direct economic injection* Circa $8 billion economic co
Slide 23: Coal Developments
PROJECT DEVELOPMENT Coal Developments • Colton — 0.5 Mtpa open cut coking coal development near Maryborough – In discussions with regulators regarding environmental management plan assessment report and draft environmental authority conditions • Elimatta – 5 Mtpa open cut thermal coal development ne
Slide 24: Mineral Developments
PROJECT DEVELOPMENT Mineral Developments • Five tenements under exploration in NW Queensland exploring for copper and gold • During the year three drill holes were completed at Moonamarra (near Cloncurry) which intersected uneconomic copper and zinc mineralisation. Further exploration is planned. Ch
Slide 25: Acland Pastoral Company
ACLAND PASTORAL COMPANY • 8,288 Available hectares • Current activities: Cattle 2,460 head Cropping for cattle fodder-500 hectares Cropping for grain & mung beans-1200 hectares Rehabilitation: 214 hectares completed 93 hectares due for completion over the next six months subject to weather Growth ac
Slide 26: Cost Management Outcomes
COST MANAGEMENT OUTCOMES • Cost of sales down $36.0 million on the previous corresponding period (a reduction of 10.1%) albeit on lower volumes • Administration costs down $9.9 million on 2012 (a reduction of 37.9%) albeit on lower volumes • Marketing and transportation costs reduced by $1.6 million
Slide 27: Coal Business Strategic Summary
COAL BUSINESS STRATEGIC SUMMARY • NHC strategic planning components remain unchanged, but management focus re-weighted toward low cost, efficient operations – Improve coal chain logistics – Focus on transportation costs – Continue to undertake cost reduction activities at all sites – Maintaining key
Slide 28: Energy Activities
ENERGY ACTIVITIES Energy Overview & NHC Objectives Bridgeport Energy Limited (BEL) CTL Projects
Slide 29: Energy Diversity Strategy
NEW HOPE CORPORATION Energy Diversity Strategy • Diversity is a prudent and viable risk mitigation mechanism and provides flexibility and alternative solutions when unscheduled events impact business viability and shareholder value. – Floods, transport and services disruption (alternate mine supply)
Slide 30: Energy Diversification Strategy
NEW HOPE CORPORATION Energy Diversification Strategy New Acland Coal Mine Eromanga Refinery Rail & QBH Brisbane Market Refineries GTL ? Coal Seam Gas Electricity Generation Jeebropilly Coal Mine Bridgeport Cooper Basin Oil & Gas CTL ? Brisbane Refinery CTL Coal to Liquids GTL Gas to Liquids CSG Coal
Slide 31: Oil Activities
OIL ACTIVITIES • Bridgeport Energy Limited (BEL) is 100% owned by New Hope Corporation – Small oil producer based in the Eromanga Basin, Queensland – Actively developing the Utopia and Inland Fields – Produces 8,000 barrels of crude oil per month – Upon completion of Cuisiner an additional 8,500 bar
Slide 32: Energy Activities Annual Highlights
ENERGY ACTIVITIES Annual Highlights • New Hope Corporation completed the acquisition of Bridgeport Energy during August 2013 • Three new development wells successfully drilled, completed and placed on production in the Inland field • Two new development wells successfully drilled, completed and plac
Slide 33: Energy Activities
ENERGY ACTIVITIES • Resource potential identified in exploration tenements acquired from Arrow; leading to seismic acquisition plus drilling of an appraisal well in each of ATP 794P (Moothandella) and ATP 805P (Donga) • Completing acquisition from Arrow of the Santos-operated Cuisinier field (PL 303
Slide 34: Cooper/Eromanga Basin and Surat
ENERGY ACTIVITIES Cooper/Eromanga Basin and Surat Bowen Basin Portfolio Queensland South Australia 34 | 17 September 2013
Slide 35: Energy Activities: Otway Basin
ENERGY ACTIVITIES • Exploring for hydrocarbons in the Otway Basin in joint venture with Cooper Energy • Targeting the Ardonachie Trough for the equivalent Penola Trough gas fields Source: Cooper Energy Limited 35 | 17 September 2013
Slide 36: Coal to Liquids Technology Status
COAL TO LIQUIDS PROJECT Technology Status • Indirect Liquefaction - Proof of Concept Plant Production of power and diesel 95% of plant components on site 60 - 65% of plant assembled Gasifier commissioning trials commence in September Indirect Liquefaction Plant - Australia 36 | 17 September 2013
Slide 37: Energy Investment Asset Location
ENERGY INVESTMENT Asset Location 37 | 17 September 2013
Slide 38: Meridian SeamGas – Market Outlook
ENERGY INVESTMENTS Meridian SeamGas – Market Outlook • Competitive Position – Closest gas producer to Gladstone – Connected to Qld Gas Pipeline and near pipelines in construction to Gladstone LNG projects – Low cost brownfields development of reserves (30Tj/d gas processing, 60 Tj/d pipeline) • Mark
Slide 39: About Meridian SeamGas
ENERGY INVESTMENTS About Meridian SeamGas • PL 94 & ML gas rights – reliable supplier of gas – Approximate area 253 km2 – Average 18 m net coal – 5 main seams in Baralaba Coal Measures and Kaloola Formation – Two pipelines with 60 TJ/day capacity – 14 compressors with dehydration at 30 TJ/day capaci
Slide 40: Meridian SeamGas Production
ENERGY INVESTMENTS Meridian SeamGas Production • Production ramp-up over past two years – Refurbishment and treatment of existing wells has stopped production decline – Two of 11 new wells have achieved peak flows >1,000,000 scf/d – Fines blockages in a number of the new lateral wells have been iden
Slide 41: Energy Investments Summary
ENERGY INVESTMENTS Summary • Production and Location – Operating established Meridian SeamGas business on QGP – 160km from Gladstone – Averaged gross sales of 10.4 TJ/d in FY13 – new wells now accounting for 20% of total field output – Trialling innovative well designs, treatments and equipment to i
Slide 42: Location of Sprigg Field
ENERGY INVESTMENTS Location of Sprigg Field • Planet Gas-Senex (20%- 80%) joint venture transaction completed • Planet received $5 million cash payment and will have a free carry for a total of $9 million for its share of oil exploration expenditure • Planet has a 2% royalty of net well head value •
Slide 43: Community & Social Responsibility
COMMUNITY & SOCIAL RESPONSIBILITY
Slide 44: Community & Social Responsibility
COMMUNITY & SOCIAL RESPONSIBILITY • Community Engagement – Information Campaign: including television, print and billboard advertising underway on Darling Downs – Oakey Community Information Office & Community Liaison Officer celebrated 12 months in community – New Acland Community Reference Group e
Slide 45: Community Engagement
COMMUNITY ENGAGEMENT ae cal
Slide 46: Outlook
OUTLOOK NEW HOPE GROUP
Slide 47: Outlook
OUTLOOK • New Hope’s Australian coal assets remain well positioned to weather the current soft market conditions. • Production and sales for 2014 are likely to be slightly lower. • Port operations are expected to achieve marginally increased exports in 2014. • Spot thermal coal prices are forecast t
Slide 48: JORC Declaration
JORC DECLARATION The estimates of coal resources herein have been prepared in accordance with the guidelines of the “Australian Code for Reporting of Exploration Results, Mineral Resources and Ore Resources – The JORC Code. These resources are inclusive of the reserves reported in the reserves state
Slide 49: newhopegroup.com.au
newhopegroup.com.au