New Hope Corporation Limited · ASX:NHC
New Hope — FY2021 Earnings Presentation
25 slides from New Hope's earnings presentation, Sep 21, 2021
Slide 1: Financial Results Release Full Year Ended 31 July 2021
FINANCIAL RESULTS For personal use only RELEASE FULL YEAR ENDED 31 JULY 2021 Presented by Robert Millner, Reinhold Schmidt and Rob Bishop on 21 September, 2021
Slide 2: Highlights
HIGHLIGHTS For personal use only Robert Millner
Slide 3: Highlights
Operational & Company Outlook HIGHLIGHTS financial results HIGHLIGHTS For personal use only CLOSING SHARE FULL YEAR TOTAL TONNES EBITDA1 PRICE DIVIDEND SOLD (before non-regular items) $2.0 11.0cents 10.0M $367M 52% 13% 27% Final dividend 7.0 cents SAFETY – REHABILITATION TRIFR2 COMPLETED 5.39 150 Ha
Slide 4: Financial Results
OPERATIONAL For personal use only AND FINANCIAL RESULTS Rob Bishop
Slide 5: Safety and Environment
OPERATIONAL & Company Outlook Highlights & FINANCIAL FINANCIAL RESULTS SAFETY AND ENVIRONMENT For personal use only Committed to making responsible and measured decisions to protect the health and wellbeing of team members and the environment All sites remain COVID-19 free. Total Recordable Injury F
Slide 6: Production & Sales
OPERATIONAL & Company Outlook Highlights FINANCIAL RESULTS PRODUCTION & SALES For personal use only Coal Production Coal Sales New Acland Total Saleable Product Export1 and Domestic 1.8Mt ▼39% from 2020 9.6Mt 10.0Mt ▼13% from 2020 ▼ 15% from 2020 Bengalla (80%) Average Sales Price 7.8Mt A$101.4/t ▼5
Slide 7: Financial Highlights
OPERATIONAL Company Outlook Highlights & FINANCIAL RESULTS FINANCIAL HIGHLIGHTS For personal use only UNDERLYING FOR CASH COST CASH GENERATED EBITDA1 MARGIN FROM OPS $37.7/t $63.7/t $296M 2021 Quarterly average realised price A$/t 140 36% 1% 16% 120 100 80 60 CASH AVAILABILITY NET DEBT2 GEARING RATI
Slide 8: Financial Performance
OPERATIONAL & Company Outlook Highlights FINANCIAL RESULTS FINANCIAL PERFORMANCE For personal use only (A$ million) FY21 FY20 % change EBITDA before non regular items 367.2 289.8 27% Depreciation and Amortisation (149.4) (150.9) (1%) Interest (5.2) (4.2) 24% Treasury (13.3) (15.2) (13%) Profit befor
Slide 9: Group Underlying EBITDA
OPERATIONAL & Company Outlook Highlights FINANCIAL RESULTS GROUP UNDERLYING EBITDA1 (A$m) For personal use only Strong results in second half expected to continue into FY 2022 27% 513 202 69% 367 396 290 61 183 11 303 31-Jul-20 NSW Revenue H1 NSW Revenue H2 NSW Costs NSW Royalties QLD Revenue QLD Co
Slide 10: Cash Generation
OPERATIONAL & Company Outlook Highlights FINANCIAL RESULTS CASH GENERATION For personal use only Focus on strengthening capital position to pursue growth and transformational opportunities whilst rewarding shareholders with consistent dividends 341 196 352 296 43 50 156 33 14 11 31-Jul-20 Cash flow
Slide 11: Debt and Liquidity
OPERATIONAL & Company Outlook Highlights FINANCIAL RESULTS DEBT AND LIQUIDITY For personal use only Responsible liquidity management to ensure capital availability for growth opportunities 345 Available liquidity of $565 million, made up of cash 425 $425 million and undrawn debt $140 million. Procee
Slide 12: Performance
OPERATIONAL For personal use only PERFORMANCE Rob Bishop
Slide 13: Bengalla Mine
OPERATIONAL & Company Outlook Highlights FINANCIAL RESULTS BENGALLA MINE For personal use only Solid operating performance underpins a successful year Successful completion of investment in the planned midlife maintenance shutdown of the dragline in the 1st half of the financial year. Transferred th
Slide 14: New Acland Mine
OPERATIONAL & Company Outlook Highlights FINANCIAL RESULTS NEW ACLAND MINE For personal use only Strong performance in light of reduced production and approvals uncertainty Production down 39% as existing mining area is exhausted and the site begins safely transitioning into care and maintenance in
Slide 15: Queensland Bulk Handling
OPERATIONAL & Company Outlook Highlights FINANCIAL RESULTS QUEENSLAND BULK HANDLING For personal use only Embracing new throughput opportunities Continues to support existing coal customers and ready to receive New Acland Stage 3 tonnage once approvals granted. Engaging with new customers for both c
Slide 16: West Moreton
OPERATIONAL & Company Outlook Highlights FINANCIAL RESULTS WEST MORETON For personal use only Rehabilitation focus at all sites The cattle grazing trial at the Oakleigh West rehabilitation area was completed in November 2020. The trial was a great success demonstrating the ability of our rehabilitat
Slide 17: Pastoral Operations
OPERATIONAL & Company Outlook Highlights FINANCIAL RESULTS PASTORAL OPERATIONS For personal use only Integrated sites to expand the Groups agricultural operations Cattle prices increased by 40% during the year. Bengalla Agricultural Company (BAC) successfully fattened and sold 1,200 Acland Pastoral
Slide 18: Company Outlook
COMPANY For personal use only OUTLOOK Reinhold Schmidt
Slide 19: Outlook
Operational & & OPERATIONAL COMPANY Company Outlook Highlights Financial Results FINANCIAL OUTLOOK RESULTS OUTLOOK For personal use only Positioned for growth and transformation Coal prices continue to strengthen and demand in markets remains strong. Bengalla set for continued growth following succe
Slide 20: Thermal Coal Prices FY21
Operational & COMPANY Highlights Financial Results OUTLOOK THERMAL COAL PRICES (USD$/t) – FY21 For personal use only Prices recovered strongly in the second half of the financial year, reaching 10-year highs. Company maximised low-ash product to capitalise on strong market conditions. 180 150 120 90
Slide 21: Emerging Supply Gap in the Global Seaborne Market
Operational & COMPANY Highlights Financial Results OUTLOOK EMERGING SUPPLY GAP IN THE GLOBAL SEABORNE MARKET For personal use only 1,200 1,000 800 Million tonnes 600 400 200 0 2021 2026 2031 2036 2041 2046 Operating and highly probably capacity Mt Probable capacity Mt Basecase Seaborne demand Mt AET
Slide 22: Global Cost Curve - 2030
Operational & COMPANY Highlights Financial Results OUTLOOK GLOBAL COST CURVE - 2030 For personal use only Even under scenarios of accelerated energy transition which has global demand reducing, both of the Company’s operations remain resilient. 150 25th Percentile 50th Percentile 75th Percentile Ben
Slide 23: The Future
Operational & COMPANY Highlights Financial Results OUTLOOK THE FUTURE For personal use only Demand for high energy/lower emission product expected to remain strong. Pricing to support solid margins for operations low on the cost curve. Strong balance sheet and growing liquidity position to capitalis
Slide 24: Disclaimer
DISCLAIMER The information in this document has been provided to you for Neither this document nor any copy hereof may be transmitted in the US For personal use only information only by New Hope Corporation Limited (“NHC”) and is or distributed, directly or indirectly, in the US or to any US person
Slide 25: Thank you
Thank you For personal use only Contact us Level 16/175 Eagle St, Brisbane City QLD 4000 (07) 3418 0500 newhopegroup.com.au ASX code: NHC