New Hope Corporation Limited · ASX:NHC
New Hope — H1 2011 Earnings Presentation
31 slides from New Hope's earnings presentation, Mar 22, 2011
Slide 1: Analysts Results Presentation Half Year Ended 31 January 2011
For personal use only Analysts Results Presentation Half Year Ended 31 January 2011 Presented by: Rob Neale, Managing Director & Chief Executive Officer
Slide 2: Disclaimer
For personal use only 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 infor
Slide 3: Agenda
For personal use only Agenda • Highlights of Past Six Months • Key Financials and Operations Summary • Mining – QBH Port Facility – Mining Operations – Exploration Activities – Land Activities • Other Energy Activities – Coal to Liquids – Energy Projects • Outlook 21 March 2011 3
Slide 4: Highlights of Past Six Months
For personal use only Highlights of Past Six Months • New Hope continues to grow. – Production steady at 2.8 million tonnes despite weather impacts. – Sales up 8.3% to 3.0 million tonnes. • New Hope’s NPAT (excluding non‐recurring items) down 27.4% to $81.1 million from $111.6 million due to: – High
Slide 5: Key Financials
For personal use only Key Financials 1 Six Months Ended 31 January 2011 2010 Change Revenue from ordinary activities $336.2m $367.9m ‐ 8.6% Profit from operations (after tax and before non recurring $81.1m $111.6m ‐ 27.4% items) Net profit (after non recurring items) $407.4m $111.6m 265.1% 21 March
Slide 6: Key Financials
For personal use only Key Financials 2 Six Months Ended 31 January 2011 2010 (cents per share) (cents per share) Earnings Per Share Before Non Recurring Items 9.8 13.5 After Non Recurring Items 49.1 13.5 21 March 2011 6
Slide 7: Dividends
For personal use only Dividends Six Months Ended 31 January 2011 2010 Change (cents per share) (cents per share) Interim dividend to be 5.25 5.0 5.0% paid in May 2011 Net tangible asset 275.8 267.1 3.3% backing 21 March 2011 7
Slide 8: Production & Sales Performance
For personal use only 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 First Half Years ended 31 July Year Only 21 March 2011 8
Slide 9: Production Volumes
For personal use only Production Volumes Six Months Ended 31 January (million tonnes) 2011 2010 Change New Acland 2.246 2.215 1.4 % New Oakleigh 0.123 0.142 ‐ 13.4% Jeebropilly 0.400 0.458 ‐ 12.7% TOTAL 2.769 2.815 ‐ 1.6% Some wet weather impact December and January 21 March 2011 9
Slide 10: Sales Volumes
For personal use only Sales Volumes Six Months Ended 31 January (million tonnes) 2011 2010 Change Export 2.742 2.230 + 23.0% Domestic 0.304 0.583 ‐ 47.9% TOTAL 3.046 2.813 8.3% 21 March 2011 10
Slide 11: First Half Production & Sales Tonnages
For personal use only First Half Production & Sales Tonnages Six Months Ended 31 January (Tonnes 000s) 2011 2010 Change Raw Coal Production 5,363 5,532 ‐ 3.1% Saleable Coal Production 2,769 2,815 ‐ 1.6% Coal Sold 3,046 2,813 8.3% 21 March 2011 11
Slide 12: NHC Coal Mining Locations
NHC Coal Mining Locations Location Map For personal use only 21 March, March 2011 2011 12
Slide 13: Operations: Impact of Floods – Rail Damage
Operations Impact of Floods – Rail Damage For personal use only 21 March 2011 13
Slide 14: Flood Recovery – Murphy's Creek & Range Tunnels
Operations Flood Recovery – Murphy’s Creek & Range Tunnels For personal use only Murphy’s Creek (week 6) Range Tunnels (week 6) Queensland Rail have revised the Estimated date for resumption of service to the 28 March 21 March 2011 Range Tunnels (week 6)14
Slide 15: Flood Summary
Operations Flood Summary For personal use only • NHC mines not flooded and only suffered relatively minor rain delays; • QBH not flooded, but delayed coal receivals; • Significant flood damage to Acland rail infrastructure with estimated restart late March; • Acland is continuing to operate, buildin
Slide 16: QBH Port Facility
For personal use only QBH Port Facility Half Year Ended Half Year Ended Year Ended 31 Jan 2011 31 Jan 2010 31 July 2010 (million tonnes) (million tonnes) (million tonnes) Coal Throughput 3.46 3.28 6.67 21 March 2011 16
Slide 17: QBH Port Facility Expansion Project
QBH Port Facility Expansion Project For personal use only ion Ar ea xpan s E 21 March 2011 17
Slide 18: QBH Port Facility Expansion Project Completed
QBH Port Facility Expansion Project Completed For personal use only Stacker Reclaimer Pads Storm Park Towers Stockpile Pads 21 March 2011 18
Slide 19: Northern Energy Corporation Limited
For personal use only Northern Energy Corporation Limited • New Hope currently holds majority control of NEC (80.8%); • New members appointed to the Board on the 28 February; • NEC management is providing briefings to the new Board and their delegates in order to ensure an efficient transition; • Re
Slide 20: Central Queensland Exploration Projects
Central Queensland Exploration Projects For personal use only Lenton Project • Wet weather impacted drilling and seismic surveys. • Resource modelling being updated. • Project continues to show promise. 21 March 2011 20
Slide 21: Rosevale Exploration and Resource Summary
Rosevale Exploration 2010 – 2011 & Resource Summary For personal use only Indicated Resources Deposit (Mt) Piper’s Lagoon 43 Loatta 72 Hillcrest - Selbourne 19 Total 134 Total No. Holes = 61 21 March 2011 21
Slide 22: York Plains Exploration and Resource Summary
York Plains Exploration 2010 – 2011 & Resource Summary For personal use only Resource Area Indicated Resources Deposit (Mt) W seam 7.8 V seam 2.0 U seam 33.4 Total 43.2 Total No. Holes = 41 21 March 2011 22
Slide 23: Indicative Coal Qualities
For personal use only Indicative Coal Qualities Rosevale Total Ash Volatile Matter Fixed Carbon Sulphur Calorific Value Deposit Moisture % % ar % ar % ar % ar kCal//kg ar Piper’s Lagoon 48.1 21.8 18.0 12.1 0.11 1815 Loatta 46.3 21.9 18.0 13.8 0.18 1815 Selbourne 46.4 23.7 18.0 11.9 0.13 1720 York Pl
Slide 24: Coal and Gas-to-Liquids Processes
For personal use only Coal and Gas‐to‐Liquids Processes Coal Gas Avg. Mol. Weight DCL Targeted Gas to Liquids – CTL Diesel Liquids Direct Coal Liquefaction - DCL Indirect Coal Liquefaction – ICL Gasoline Syn Gas ICL Reactions 21 March 2011 24
Slide 25: Coal-to-Liquids R&D Projects: Indirect CTL Technology
Coal‐to‐Liquids R&D Projects Summary of Current Technologies – Indirect CTL Technology For personal use only • Existing commercial (250kw) gasification plants (5+ years). – 5 & 50 Mw under design • Liquefaction of gasified material for 20+ months. • Detailed design for “POC” plant completed. – Third
Slide 26: Coal-to-Liquids R&D Projects: Indirect Gasification
Coal‐to‐Liquids R&D Projects Indirect Gasification For personal use only 0.5 TPH Prototype Gasification Unit with First Stage Gas Clean Up 21 March 2011 26
Slide 27: Direct Coal Liquefaction Process
Coal‐to‐Liquids R&D Projects Direct Coal Liquefaction Process For personal use only Hydrotreating Hydrocracking ROSE Other Processes Coal Pitch Delayed Coker Process Anode Coke Oil 21 March 2011 27
Slide 28: Direct CTL Technology Status
For personal use only Coal‐to‐Liquids R&D Projects Direct CTL Technology Status • Large Bench Scale Testing: – Pitch (completed); – Synthetic Crude Oil (completed); – Synthetic Metallurgical Coke (completed); – Production of Anode and Needle Coke (proven). • Detailed engineering for “POC” Plant (com
Slide 29: Preliminary CTL Financial Comments
Coal‐to‐Liquids R&D Projects Preliminary CTL Financial Comments For personal use only • Total NHC CTL project expenditures to end 2010 approximately $4 million. • Proposed 2011 ‐ 2012 expenditure approximately $35 million. • NHC‐CTL capital efficiency is modest but lower risk. – Indirect $40 ‐ 50,00
Slide 30: Outlook
For personal use only Outlook • Second half sales tonnage and profitability wil be negatively impacted by rail unavailability and now the uncertainty of the Japanese earthquakes. • Currently impossible to specifically quantify impacts due to: – Ramp‐up capacity of QR following recovery post 28 March
Slide 31: An Independent Energy Alternative
For personal use only An Independent Energy Alternative