New Hope Corporation Limited · ASX:NHC
New Hope — FY2008 Earnings Presentation
22 slides from New Hope's earnings presentation, Sep 25, 2008
Slide 1: ASX cover letter for analysts briefing
ABN 38 010 653 844 Contact Phone: +61 7 3810 0500 Fax: +61 7 3810 0555 For personal use only 25th September 2008 Australian Securities Exchange Attention: Company Announcements By electronic lodgement Please find attached a presentation to be made to analysts today regarding New Hope Corporation Lim
Slide 2: Analysts Briefing Year Ended 31 July 2008
For personal use only Analysts Briefing Year Ended 31 July 2008 25 September 2008 Presented by: Rob Neale, Chief Executive Officer 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 wit
Slide 3: Agenda
Agenda For personal use only Highlights of past 12 Months Key Financials and Operations Summary Mining Operations QBH Port Facility Exploration Activities Other Activities – Arrow Energy Shareholding – Coal to Liquids Project Outlook 25 September 2008 3 Highlights of past 12 Months 1 New Hope’s NPAT
Slide 4: Highlights of past 12 Months
Highlights of past 12 Months 2 For personal use only Announced sale of the New Saraji Project to BHP Billiton Mitsubishi Alliance (BMA) for A$2.45 billion; – No impact on this year’s results. New Acland Stage 2 Expansion bedded down and performing well and the mine poised for further growth; Reactiv
Slide 5: Dividends
Dividends For personal use only 2008 2007 Change cents per share cents per share Interim dividend paid in May 2.25 2.10 +7.1% 2008 Final dividend to be paid in 3.50 2.50 +40.0% November 2008 Special dividend to be paid in 8.00 3.00 +166.7% November 2008 Total Dividends for the year 13.75 7.60 +80.9%
Slide 6: Production Volumes and Sales Volumes
Production Volumes For personal use only 12 months ended 31 July (Million tonnes) 2008 2007 Change New Acland 3.92 2.99 + 31.2% New Oakleigh 0.53 0.51 + 4.9% Jeebropilly - 0.34 - 100.0% (mine closed February 2007) TOTAL 4.45 3.84 + 16.0% 25 September 2008 9 Sales Volumes 12 months ended 31 January (
Slide 7: Locality Plan
Locality Plan 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 M
Slide 8: New Acland - Future Development
Mining Operations New Acland - Future Development For personal use only Mining Lease application underway: – Covers entire resource; – Progressively securing land. Development plans are classified by Qld Govt as a “Project of State Significance”. Foundations for Growth: – 46km Wetalla Pipeline commi
Slide 9: Wetalla Water Pipeline Project
Wetalla Water Pipeline Project 2 For personal use only Typical pipeline trenching activity Toowoomba Regional Council Wetalla Facility Site preparation works 25 September 2008 15 Mining Operations Jeebropilly - Reactivated in 2008 New Oakleigh likely to close 2009 – 2010? – Subject to comprehensive
Slide 10: West Moreton Landholdings Post Mining Land Uses
West Moreton Landholdings Post Mining Land Uses For personal use only Conceptual planning completed for both New Oakleigh and Jeebropilly sites – submission to SEQ Regional Plan review. New Oakleigh – 950 hectares: – expansion of urban and limited commercial development around the existing township
Slide 11: QBH Port Facility Coal Throughput
West Moreton Master Planning For personal use only Active Mining Traditional Mine Rehabilitation Conceptual Future 25 September 2008 19 QBH Port Facility Coal Throughput 12 Months ended 31 July (Million tonnes) 2008 2007 Change Coal Throughput 5.47 4.53 + 21% * Essentially demurrage free coal termin
Slide 12: QBH Port Facility Overview
QBH Port Facility Overview For personal use only Facility 100% owned by New Hope Corporation. – Operates under Port of Brisbane access regime. – Land leased from Port of Brisbane. +5 Mtpa capacity servicing two current export coal producers. Stockpile and Stacker expansion underway. Essentially demu
Slide 13: QBH Port Facility Ship Loading
QBH Port Facility Ship Loading For personal use only Single Berth Vessel capability: – 110,000 DWT (max) Beam: – 43 metres (max) Shiploader Rate: Draft: – 2,000tph – 13.5 metres plus tide (max) Shiploader Longitudinal Travel: Air Draft: – 195 metres – 14.8 metres plus tide (max) – Wharf 240m; Dolphi
Slide 14: QBH Port Facility Aerial View of Expansion Area
QBH Port Facility Aerial View of Expansion Area For personal use only 25 September 2008 25 QBH Port Facility View of Upstream Wharf Area Under Construction 25 September 2008 26 13
Slide 15: QBH Port Facility Current Operations
QBH Port Facility Current Operations For personal use only Two existing coal producers and discussions with others; New Hope acquired the remaining 50% of QBH on 1 Aug 2007; Record 5.472 Mt shipped in 2008 financial year; Coal throughput (12 months ended 31 July 2008): – 2007: 4.53 Mt; – 2008: 5.47
Slide 16: New Saraji Project Sold to BMA
New Saraji Project Sold to BHP Billiton Mitsubishi Alliance (BMA) For personal use only Sale agreement executed in July 2008; Completion of sale on 10 September 2008; Cash payment of $2.45 billion received on 10 September; Transfer to BMA of: – EPC; – MLA; – All exploration data and feasibility stud
Slide 17: 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 18: Bee Creek Project Hyperspectral Image Processing
Bee Creek Project Hyperspectral Image Processing For personal use only Rangal Coal Measures Continued to refine drilling target using remote sensing techniques; Moranbah Coal Measures – Hyperspectral mapping indicates possible Moranbah and Rangal coal measures within New Hope’s lease; – Drill target
Slide 19: NHC Exploration Expenditures
NHC Exploration Expenditures $’s Million For personal use only 2004 2005 2006 2007 2008 2.4 3.9 8.6 9.6 14.3 2008 Exploration Expenditures Central Queensland 9.3 Darling Downs 3.5 West Moreton 0.5 Other 1.0 TOTAL 14.3 25 September 2008 35 Other Activities 18
Slide 20: Arrow Energy and Coal to Liquids Project
Arrow Energy Tenure Map For personal use only Shareholding at 31/07/08 17.2% Cost of shares $112M Market value at 31/07/08 $394M Unrealised profit before tax $283M Moranbah Styx Basin Boyne River Surat Basin Clarence Moreton 25 September 2008 37 Coal to Liquids Project Plant Concept Gas Heating Sour
Slide 21: Outlook
Coal to Liquids Project Gasifier For personal use only 25 September 2008 39 Outlook New Hope’s likely production for 2008/09 year is expected to be in the order of 4.9 million tonnes. Thermal coal prices remain strong. Operating NPAT result for 2009 year likely to be in the range of $125 – 150 milli
Slide 22: 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. 25 September 2008 41 “The Independent Energy Alternative” People are Important Margin Management makes us Competitiv