New Hope Corporation Limited · ASX:NHC
New Hope — FY2024 Earnings Presentation
26 slides from New Hope's earnings presentation, Sep 17, 2024
Slide 1: New Hope Group 2024 Full Year Results
New Hope Group 2024 Full Year Results ASX:NHC 17 September 2024
Slide 2: Important information about this document
Important information about this document The presentation in this document is in summary form only. It should be read together with New Hope Corporation Limited’s (“NHC’s” or “New Hope’s”) other announcements lodged with the Australian Securities Exchange, which are available at www.asx.com.au. Whi
Slide 3: Highlights and performance summary
Highlights and performance summary Rob Bishop Chief Executive Officer New Hope Group 2024 Full Year Results – Year ended 31 July 2024 3
Slide 4: Strong operational performance, delivering on our organic growth pipeline
Strong operational performance, delivering on our organic growth pipeline Operational highlights Financial highlights Safety – TRIFR1 ROM coal production Fully franked final dividend Underlying EBITDA2 5.32 12.3Mt 22¢ $860M 151% increase 32% increase Per share 51% decrease Saleable coal production C
Slide 5: The safety of our people is a key priority
The safety of our people is a key priority, which we continuously seek to improve All Injury Frequency Rate (AIFR) FY24 incidents and injuries consist of: 33.7 33.3 32.6 29.7 29.8 30.2 27.1 • Non-critical incidents – majority of all injuries were minor first aid cases • Recordable injuries were most
Slide 6: Our asset highlights - targeting significant organic production increases
Our asset highlights - targeting significant organic production increases Targeted organic saleable coal production increase (Mt) Bengalla Mine - a strong operational performance • Saleable coal production of 8.0Mt1, 11% higher than FY23. • FOB cash cost (ex. state royalties) of $77.8/t. 18 +14Mt •
Slide 7: Our financial highlights – cash flow generation and shareholder returns
Our financial highlights – cash flow generation and shareholder returns Cash flow from operations - $562M Investing in Bengalla Mine, New Realised price (incl. hedging) Acland Mine, AL19 and Malabar Successfully raised convertible $195/t 43% decrease notes to provide increased ( ) financial flexibil
Slide 8: Disciplined allocation of capital and returns to shareholders
Disciplined allocation of capital has led to nearly 40% of current market capitalisation1 being returned to shareholders in the past three years 1,800 120cps +$1.5Bn returned to shareholders Cash flows from our assets in the past three years 1,600 96cps 100cps 1,400 Growth capital M&A Fixed income f
Slide 9: Demand for thermal coal set to increasingly outstrip supply
Demand for thermal coal is set to increasingly outstrip supply, indicating a positive outlook to continue responsibly operating our assets Electricity consumption per capita - 2023 Global thermal coal supply and demand Bubble size indicates electricity demand 14,000 1,600 Taiwan Increasing energy ne
Slide 10: Low strip ratio assets and disciplined cost control maximise margins
Low strip ratio assets and disciplined cost control allow us to maximise margins, relative to our peers FY24 ROM strip ratio (prime bcm/t) Unit costs of key Australian producers (A$/t) 10.0x 160 FY20 FY23 Bengalla Mine FY21 FY24 9.0x New Acland Mine 140 FY22 1 8.0x Average Australian open-cut coal m
Slide 11: Investment highlights
Investment highlights 1 Strong industry outlook 2 Low-cost, high-CV thermal coal producer 3 Significant organic production growth pipeline 4 Strong balance sheet and free cash flow generation 5 Key focus on providing shareholder returns 6 Responsible operator of assets New Hope Group 2024 Full Year
Slide 12: Appendices
Appendices New Hope Group 2024 Full Year Results – Year ended 31 July 2024 12
Slide 13: Thermal coal prices remain above historical averages
Thermal coal prices remain above historical averages, with the outlook becoming increasingly positive due to the structural shortfall of supply 500 La Nina supply disruptions 450 Russia invades Ukraine 400 350 China’s NDNC Sustained period of environmental jawbones market 300 US$ / t debate that que
Slide 14: Majority of export product is high-CV thermal coal
The majority of our export product is high-CV thermal coal, with further quality improvements expected at both Bengalla Mine and New Acland Mine FY24 export energy content (NAR basis1) gC NEWC 6000 and realised price (US$/t)2 180.0 Predominately high-ash sales month ~12% average Upgrades to Bengalla
Slide 15: Cumulative TSR performance outperforming market
Our focus on capital management and creating shareholder value has resulted in significant outperformance compared to market Cumulative TSR performance (%)1 7,000 Total return on investment since 6,000 IPO ~10x greater than the ASX All Ordinaries2 +4972% 5,000 4,000 3,000 2,000 1,000 +512% - 2003 20
Slide 16: Our operations and markets
Our operations and markets Operating coal mines Agricultural operations Port facility Oil and gas production and exploration Bengalla Bengalla Bridgeport Energy2 (thermal) (80% joint Agricultural Surat, Cooper and Otway Basins venture, open-cut) Company Queensland Bulk Acland Handling Offices New Ho
Slide 17: Bengalla Mine – a strong operational performance
Bengalla Mine – a strong operational performance • Disciplined and low unit cost operation delivering strong margins. • Saleable coal production of 10.1Mt1 for FY24, 11 per cent higher than FY23, with further upside expected into FY25. AL19 • Fourth quarter production impacted by uncontrollable rail
Slide 18: New Acland Mine – successful restart of operations
New Acland Mine – successful restart of operations • Successful first year of operations since the restart of stage 3, producing over 1.0Mt of saleable coal in FY24. • Steady-state operations will see New Acland Mine compete with Bengalla Mine on a FOR1 cash cost basis. • New Acland Mine is expected
Slide 19: Malabar Resources Limited – low-cost, long-life investment
Malabar Resources Limited – low-cost, long-life investment Maxwell Mine Project • Underground coal project possessing high-quality SSCC1 and thermal coal. • Bord and pillar and longwall operation. • ~6Mtpa of coal sales over a ~20-year approval period. • 300m longwall operating costs of $55/t (exclu
Slide 20: Rehabilitation and agriculture working together
Rehabilitation and agriculture working together for better outcomes Land holdings and rehabilitation (hectares) Pastoral operations and land holdings 46% of total disturbed land has • We operate on land surrounding Bengalla Mine and New Acland Mine, been rehabilitated including rehabilitated land pr
Slide 21: Financial performance
Financial performance Underlying EBITDA1 $m FY24 FY23 1,577 1,747 $m $m 860 367 Underlying EBITDA before non-regular items1 859.9 1,746.6 290 Depreciation and amortisation (168.1) (141.6) FY20 FY21 FY22 FY23 FY24 Net interest income 11.3 24.3 NPAT Profit before tax and non-regular items 703.1 1,629.
Slide 22: We operate a high-margin business despite New Acland ramp-up
We operate a high-margin business ($ / sales t) despite New Acland Mine being in ramp-up FY24 underlying FOB cash cost A$ / Sales tonne ( ) ( ) ( ) ( ) era e ite ort o a ties N C ar in1 sa es pri e1 as osts 2 rai ramp p 1. Includes net hedging gain (commodity prices and foreign currency). 2. Include
Slide 23: Disciplined cost control leading to minor increases in FOR cash costs
Disciplined cost control leading to minor increases in FOR cash costs ($ / product t) despite temporary growth impacts +8% 1.0 2.3 66.9 0.9 4.8 64.6 2.1 Increased maintenance with ageing fleet soon to be replaced 60.1 Growth impacts related to realising additional volumes Bengalla FOR Bengalla growt
Slide 24: Liquidity management policies and fixed income investments
Our liquidity management policies include investments in fixed income opportunities to maximise returns on surplus cash $825M available cash composition (31 July 2024) We maintain a liquidity buffer for the following reasons: • To satisfy near term obligations. 45% 32% 23% • To protect against singl
Slide 25: Convertible note issuance provides increased financial flexibility
The convertible note issuance capitalised on strong market conditions to provide increased financial flexibility for strategic opportunities New Hope share price ($/sh) 10.0 Entry into the Capped Call Convertible Notes Dividend protection threshold1 2024 Notes – Effective Conversion Price ($9.18) tr
Slide 26: Thank you
Thank you Contact us Level 18/175 Eagle St Brisbane City QLD 4000 (07) 3418 0500 newhopegroup.com.au