New Hope Corporation Limited · ASX:NHC
New Hope — FY2012 Earnings Presentation
51 slides from New Hope's earnings presentation, Sep 18, 2012
Slide 1: Results Presentation Financial Year Ended 31 July 2012
For personal use only Results Presentation Financial Year Ended 31 July 2012 Presented by Robert C Neale Managing Director & Chief Executive Officer
Slide 2: Disclaimer
Disclaimer For personal use only 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: Review Agenda
Review Agenda For personal use only 2011 – 2012 Highlights Coal Business • Operations & Near Term Projects Review • Coal Projects Development Portfolio • Coal Business Strategy Energy Business • Energy Conversion Technology Status • Energy Projects Development Portfolio • Energy Business Strategy Fu
Slide 4: 2011 – 2012 Performance Highlights
For personal use only 2011 – 2012 Performance Highlights
Slide 5: Key New Hope Highlights 2011 – 2012
Key New Hope Highlights 2011 – 2012 For personal use only A solid operating result with Net Profit from operations (before non-recurring items) of $171.1 up 16.4% on prior year. Total revenues were $767.5m up 15.9% on the prior year. Production was at a record 6.29 million tonnes up 11.5% on t
Slide 6: Key Financial Results 2012
Key Financial Results 2012 For personal use only A solid operating result 12 Months Ended 31 July 2012 2011 Change Total revenue $767.5m $662.4m 15.9% Profit from operations $171.1m $146.9m 16.4% (including interest revenue) Net profit $167.1m $503.1m ‐66.8% (after non‐recurring items) Earnings per
Slide 7: Group NPAT Comparison
For personal use only NPAT $m 25 50 75 100 125 150 175 0 200 225 250 275 NPAT - FY2011 146.9 18 September 2012 Effect of Sales Volume on 38.1 Sales Revenue Effect of Sales Prices on 75.9 Sales Revenue Effect of Exchange Rate 28.0 Changes on Sales Revenue Production Costs 10.5 Transport and Shipping
Slide 8: Coal Production Volumes 2012
Coal Production Volumes 2012 For personal use only Record Total Production 12 Months Ended 31 July (million tonnes) 2012 2011 Change New Acland 5.09 4.54 12.1% New Oakleigh 0.35 0.31 12.9% Jeebropilly 0.85 0.79 7.6% TOTAL 6.29 5.64 11.5% 18 September 2012 8
Slide 9: Coal Sales Volumes 2012
Coal Sales Volumes 2012 For personal use only Shift to Export Achieved 12 Months Ended 31 July Swanbank Power Station (million tonnes) Closure 2012 2011 Change Export 5.83 5.00 16.6% Domestic 0.42 0.65 ‐35.4% TOTAL 6.25 5.65 10.6% 18 September 2012 9
Slide 10: Production & Sales Performance
Production & Sales Performance For personal use only * * Flood/Rail affected performance 18 September 2012 10
Slide 11: Dividends 2012
Dividends 2012 For personal use only Strong Dividend Payments 12 Months Ended 31 July 2012 2011 Change (cents per share) (cents per share) Interim dividend 6.00 5.25 14.3% Final dividend * 5.00 5.00 ‐ Special dividend * 20.00 15.00 33.3% Total Dividends for the Year 31.00 25.25 22.8% * The final and
Slide 12: Financial Deliverables 2000 – 2012
Financial Deliverables 2000 – 2012 For personal use only Some of the major NHC metrics and key outcomes over this period can be summarised as follows: Major Metrics At End July 2000 2003 2012 Total Production * (million tonnes) 1.95 2.81 6.29 Total Sales (million tonnes) 1.94 2.82 6.25 NPAT ($’s mil
Slide 13: Operating Deliverables 2000 – 2012
Operating Deliverables 2000 – 2012 For personal use only • Purchase and • Explored and discovered development of Acland Lenton • Expanded Acland twice • Sold Arrow Energy • Expanded QBH • Acquired NEC (100%) • Sold 10% equity in Lenton • Developed and sold Indonesian assets • Acquired Bridgeport (10
Slide 14: Coal Business
For personal use only Coal Business
Slide 15: Cost Management Results
Cost Management Results For personal use only Running Tight Operations is Part of the New Hope Culture Overall New Hope production cost inflation was 3.88% on a cost per tonne basis. Onsite clean coal production cost inflation was only 0.44% on a cost per tonne basis. o Despite diesel fuel cost
Slide 16: Need for Continuing Productivity Improvement
Need for Continuing Productivity Improvement Examples of Cost Improvement For personal use only Installed intelligent guidance lights for coal trucks using a forecasting algorithm in CHPP control system. Redesigned roads to remove speed reduction zones. Introduced double sided loading by front
Slide 17: Need for Continuing Productivity Improvement: Excellent Maintenance Practice
Need for Continuing Productivity Improvement Excellent Maintenance Practice For personal use only Extended economic lives of frontline equipment: 7 of our fleet of 785 rock trucks continue to perform with greater than 89% availability and at > 80,000 machine hours. 7 of our 785 coal trucks at th
Slide 18: NHC Excavators at World's Best Practice
NHC Excavators at World’s Best Practice Production Levels For personal use only EX3600 Acland 7DR EX5500 Acland 7DR EX3600 Jeebropilly 6DR 18 September 2012 18
Slide 19: New Acland Operations
New Acland Operations Status Overview For personal use only ‘000 tonnes 2005 2006 2007 2008 2009 2010 2011 2012 Production 2604 2640 2989 3920 4263 4703 4540 5089 Sales 2446 2742 2901 3889 4115 4690 4525 5133 • Excellent recovery from last years floods. • Cyclic equipment capital replacement over ne
Slide 20: Jondaryan Interim Half Loop Update
Jondaryan Interim Half Loop Update Proposed Layout For personal use only Toowoomba Dalby Train 1 NB. Two coal trains can utilise the loop at one time, removing congestion at Oakey siding, which releases additional train paths for export coal. South Extra annual rail capacity up to 1,000,000 tonnes T
Slide 21: Acland Pastoral Company (APC)
Acland Pastoral Company (APC) For personal use only • Acland Pastoral landholdings 9582 ha north west of Oakey in South East Queensland – 350 ha of mining area open at any one time – 174 ha of rehabilitated mined area completed • Current cattle grazing herd about 2000 head • Current pasture developm
Slide 22: Acland Pastoral Short Film
For personal use only Acland Pastoral Short Film
Slide 23: For personal use only
For personal use only 18 September 2012 23
Slide 24: West Moreton Operations
West Moreton Operations Status Overview For personal use only • Jeebropilly (0.85 MT) and New Oakleigh (0.35 MT) produced 1.2 MT. – Up 9% on 1.1 MT last year • New Oakleigh will cease mining operations early in calendar 2013 due to consumption of resource – ongoing rehabilitation activities. 18 Sept
Slide 25: QBH Port Facility
QBH Port Facility Exports Throughput (million tonnes) For personal use only 2008 2009 2010 2011 2012 Exports (MT) 5.47 6.12 6.67 6.52 8.67 TOTAL GROWTH 21% 12% 9% (2%) 33% NHC Growth 24% 20% 26% 2% 17% 18 September 2012 25
Slide 26: QBH Port Facility Expanded Coal Stockpiles
QBH Port Facility Expanded Coal Stockpiles For personal use only 18 September 2012 26
Slide 27: QBH Port Facility Status Overview
QBH Port Facility Status Overview For personal use only • 120 vessels loaded during 2012 in comparison to 88 vessels during 2011. • Evaluating new throughput efficiency opportunities. • Monthly ship loading peak capacity up to 12 Mtpa rate. • Initiated preliminary discussions with Port of Brisbane C
Slide 28: Acland Extension Project
Acland Extension Project For personal use only • Ongoing mine planning activities. • Addressing Government and Community sensitivities. • Constructive dialog with Government Representatives. • Increased stakeholder engagement. • Demonstrated effective mining and agriculture co‐ existence. 18 Septemb
Slide 29: Coal Projects Development Portfolio 2011 – 2016
Coal Projects Development Portfolio 2011 – 2016 1 For personal use only NEC Colton Development Lenton Development • JORC resources of 76 Mt (Coking • JORC resource 693 Mt (Coking and Thermal Coal). Coal). • Ongoing wet weather has hampered • Initial mine design to focus on open cut. exploration. • S
Slide 30: Coal Projects Development Portfolio 2011 – 2016
Coal Projects Development Portfolio 2011 – 2016 2 For personal use only NEC Elimatta Project NEC Yamala Project • JORC resource 259 Mt (Open Cut) • JORC resource 223 Mt (Open Cut and (Thermal Coal). Underground) (Thermal Coal). • Ongoing engineering studies. • Joint venture exploration project • Com
Slide 31: Coal Business Strategic Summary
Coal Business Strategic Summary For personal use only • NHC strategic planning components remain unchanged, but management focus re‐weighted toward low cost, efficient operations. – Improve coal chain logistics – Identify and initiate operations optimisation activities in November – Review progress
Slide 32: Energy Business
For personal use only Energy Business
Slide 33: Energy Conversion R&D Projects: Indirect CTL Liquefaction
Energy Conversion R&D Projects Project Update – Indirect CTL Liquefaction For personal use only • Progress continues, albeit more slowly than expected, but we maintain our low risk development philosophy. • The manufacture of the 1 tph “Proof of Concept” plant is being finalised in the USA, with som
Slide 34: Indirect Process Equipment Units
Indirect Process Equipment Units 1 For personal use only Pyrolysis Gasifier Gasifier and Gas Clean Up Unit Gas Clean Up Unit Jeebropilly Site 18 September 2012 34
Slide 35: Indirect Process Equipment Units
Indirect Process Equipment Units 2 For personal use only Steam Reformer FT Reactor Compressor Diesel Fuel 18 September 2012 35
Slide 36: Energy Conversion R&D Projects: Direct CTL Liquefaction
Energy Conversion R&D Projects Project Update – Direct CTL Liquefaction For personal use only • Slow progress continues as this technology continues to evolve. • Semi‐continuous “Proof of Concept”(POC) plant performance at 1 ton per day (1 TPD) will be critical in determining future process directio
Slide 37: Direct Liquefaction POC Plant Construction
Direct Liquefaction POC Plant Construction 1 For personal use only Solvent Tanks Coal Hopper Water Extraction Digester Reactors 18 September 2012 37
Slide 38: Direct Liquefaction POC Plant Construction
Direct Liquefaction POC Plant Construction 2 For personal use only Electrical Switch Room Ventilation Scrubber Optimisation Equipment Coal Preparation Shed 18 September 2012 38
Slide 39: Bridgeport Energy Limited
Bridgeport Energy Limited For personal use only • Bridgeport is now a 100% owned subsidiary of New Hope. • It has operations in three oil fields in the Eromanga Basin in Queensland. – Utopia, Inland and Naccowlah • Technically recoverable volumes Total 2P + 2C = 7.6 MMbo 18 September 2012 39
Slide 40: Bridgeport Energy Limited
Bridgeport Energy Limited Two Operated Oil Fields with Expansion Potential For personal use only 18 September 2012 40
Slide 41: Bridgeport Energy Limited Key Performance Indicators
Bridgeport Energy Limited Key Performance Indicators For personal use only 18 September 2012 41
Slide 42: Westside Corporation Limited At a Glance
Westside Corporation Limited At a Glance For personal use only GALILEE BASIN Major new exploration area JV with Mitsui E&P 300 km to Mt Isa M&A Remaining alert for strategic, appropriately BOWEN BASIN priced acquisitions Building a reserves base Meridian JV with Mitsui E&P Exploration JV with QGC “D
Slide 43: Westside Corporation Limited Growth in Production and Sales
Westside Corporation Limited Growth in Production and Sales For personal use only 18 September 2012 43
Slide 44: Energy Business Strategic Summary
Energy Business Strategic Summary 1 For personal use only • Accelerate the growth of this NHC business segment and bring forward potential income streams to augment reduced coal margins. – Regional decentralised production focus – Niche scale projects Conventional Oil and Gas • Bed down and integrat
Slide 45: Energy Business Strategic Summary
Energy Business Strategic Summary 2 For personal use only Unconventional Gas • Influence CSG equity investment entities to accelerate export LNG and domestic gas sales contracts. • Advance global gas project evaluations which are development ready in stable, high margin regions. – Evaluate onshore s
Slide 46: Future Outlook
For personal use only Future Outlook
Slide 47: NHC Outlook
NHC Outlook For personal use only • World economy is likely to remain volatile over the near to medium term with significant impacts in our region and on Australia’s export coal industries. – Synchronised global growth decline? – Anaemic USA growth? – Coal and iron ore prices in serious decline (AUD
Slide 48: NHC Response to Outlook
NHC Response to Outlook For personal use only • Update and optimise the operating strategies to reflect the forecast economic outlook. – Unswerving focus on base business performance. – NHC position on international coal cost curve is paramount. – Initiate next wave of cost and efficiency improvemen
Slide 49: NHC Future Perspectives
NHC Future Perspectives For personal use only • Despite a near term unfavourable economic and coal outlook, NHC remains in an enviable financial position to take advantage of future opportunities. – The New Acland deposit is a “Tier 1” asset with highly competitive operating costs. – Modest oil prod
Slide 50: JORC Declaration
For personal use only JORC Declaration The estimates of coal resources herein (except for Ashford and Maryborough) 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
Slide 51: An Independent Energy Alternative – Questions?
For personal use only An Independent Energy Alternative Questions?