New Hope Corporation Limited · ASX:NHC
New Hope — Shareholder Meeting (November 2021)
37 slides from New Hope's shareholder meeting presentation, Nov 18, 2021
Slide 1: 2021 Annual General Meeting
ASX Release | 18 November 2021 2021 Annual General Meeting NEW HOPE CORPORATION LIMITED ABN 38 010 653 844 New Hope Corporation Limited (ASX: NHC) advises that the following will be delivered at the Company’s Annual General Meeting being held today at 12 noon (Brisbane Time): • Presentation to Share
Slide 2: New Hope Corporation Limited 19th Annual General Meeting
NEW HOPE CORPORATION LIMITED 19th Annual General Meeting 18 November 2021
Slide 3: Agenda
Agenda: 1. Introduction 2. Chairman’s Address 3. Chief Executive Officer’s Address 4. Operational and Financial Results 5. Formal Items of Business 6. Question Time 7. Voting 8. Meeting Close 2
Slide 4: Board of Directors
Board of Directors Mr Robert Millner Chairman Mr Todd Barlow Non-Executive Director, and Chair of the Nomination Committee Ms Jacqui McGill AO Non-Executive Director, and Chair of the Health, Safety, Environment and People Committee Mr Thomas Millner Non-Executive Director Mr Ian Williams Non-Execut
Slide 5: Leadership Team and External Auditor
Leadership Team Mr Reinhold Schmidt Chief Executive Officer Mr Robert Bishop Chief Financial Officer and Company Secretary External Auditor Mr Stephen Tarling External Auditor, Deloitte Touche Tohmatsu 4
Slide 6: Written Question Process
WRITTEN QUESTION PROCESS 123-456-789 When the question function is available, the messaging tab will appear at the top of the screen To submit a question, type your question in the “Ask a question” box and press the send arrow Your question will be sent immediately for review Received 5
Slide 7: Verbal Question Process
VERBAL QUESTION PROCESS 123-456-789 When the audio questions line is available, a link will appear on the home tab titled Asking Audio Questions If you would like to ask an audio question, pause the meeting broadcast and click on the link You will be prompted to enter your name and the topic of your
Slide 8: Voting
VOTING 123-456-789 When open, the vote will be accessible by selecting the voting tab at the top of the screen To vote simply select the direction in which you would like to cast your vote. The selected option will change colour For Against Abstain There is no submit or send button, your selection i
Slide 9: Chairman's Address
Chairman’s Address Mr Robert Millner
Slide 10: Performance Highlights
PERFORMANCE HIGHLIGHTS EBITDA 1 CLOSING SHARE PRICE FULL YEAR DIVIDEND TOTAL TONNES SOLD (before non-regular items) $2.00 11.0cents 10.0M $367M Final dividend 52% 7.0 cents 13% 27% 1 Underlying Earnings before Interest, Tax and Depreciation and Amortisation (EBITDA) is a non-IFRS measures which has
Slide 11: Performance Highlights – Quarter 1, FY2022
PERFORMANCE HIGHLIGHTS – Quarter 1, FY2022 NEWC 6000 SHARE PRICE3 DEBT FULLY EBITDA1 (before non-regular items) Benchmark2 REPAID $242.5M US$222 $2.70 $310M 1 Underlying Earnings before Interest, Tax and Depreciation and Amortisation (EBITDA) is a non-IFRS measures which has not been audited by Delo
Slide 12: Sustainability Highlights
SUSTAINABILITY HIGHLIGHTS SAFETY – TRIFR1 REHABILITATION WATER REDUCTION IN AIR COMPLETED WITHDRAWN QUALITY RELATED 5.39 113 Ha COMPLAINTS 28% 65% 11% Back to productive use Including Wetella water 1 Total Recordable Injury Frequency Rate (TRIFR) 11
Slide 13: Community
COMMUNITY NEW HOPE GROUP
Slide 14: Director Re-elections
Director Re-elections Mr Todd Barlow and Mr Thomas Millner offer themselves for re-election to the Board at today’s meeting. Mr Todd Barlow Mr Thomas Millner has extensive experience in has over 19 years mergers and acquisitions, experience in active equity capital markets and portfolio management i
Slide 15: Our Vision, Our Values
OUR VISION OUR VALUES Energising Integrity Wellbeing our People, We are ethical, honest and trusted to do the right thing. We all seek to prevent harm, promote safety and enhance health. Communities and Customers. Respect Resilience We listen and treat others We are adaptable and see as we expect to
Slide 16: Chief Executive Officer's Address
Chief Executive Officer’s Address Mr Reinhold Schmidt
Slide 17: Thermal Coal Prices (USD$/t) – FY21
THERMAL COAL PRICES (USD$/t) – FY21 Prices recovered strongly in the second half of the financial year, reaching 10-year highs. Company maximised low-ash product to capitalise on strong market conditions. 16
Slide 18: Our Customers and Our Operations
OUR CUSTOMERS AND OUR OPERATIONS 17 17
Slide 19: Emerging Supply Gap in the Global Seaborne Market
EMERGING SUPPLY GAP IN THE GLOBAL SEABORNE MARKET 1,200 1,000 800 Million tonnes 600 400 200 0 2021 2026 2031 2036 2041 2046 Operating and highly probably capacity Mt Probable capacity Mt Basecase Seaborne demand Mt AET: 2 degrees Mt Source: Wood Mackenzie 18 AET: 1.5 degrees Mt AET: Accelerated Ene
Slide 20: Global Cost Curve - 2030
GLOBAL COST CURVE - 2030 Even under scenarios of accelerated energy transition which has global demand reducing, both of the Company’s operations remain resilient. 150 25th Percentile 50th Percentile 75th Percentile Bengalla New Acland Stage 3 125 2030 TCPS, quality adjusted to 6,000 NAR (US$/tonne,
Slide 21: Outlook
OUTLOOK Excellent second half performance sets the scene for a strong FY22. Demand for high energy / lower emission product expected to remain strong. Bengalla set for continued growth following successful maintenance and upgrades. New Acland remains ready to commence Stage 3. Queensland Bulk Handli
Slide 22: Operational and Financial Results
OPERATIONAL AND FINANCIAL RESULTS Mr Rob Bishop, Chief Financial Officer
Slide 23: Financial Highlights
FINANCIAL HIGHLIGHTS UNDERLYING EBITDA 1 FOB CASH COST CASH GENERATED 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 RATIO 40 20 $565M $81M 4.0% 0 Q1 Q2 Q3 Q4 156% 72% 10% 1 Underlying Earnings before
Slide 24: Financial Performance
FINANCIAL PERFORMANCE (A$ 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 before income tax and non regular items 199.3 119.5 67% Non regular items before tax (
Slide 25: Group Underlying EBITDA
GROUP UNDERLYING EBITDA 1 (A$m) 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 Costs Other 31-Jul-21 1 Underlying Earnings before Interest, Tax and Depreciation
Slide 26: Cash Generation
CASH GENERATION 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 from Cash flow Debt repayment Dividends Other Sub-total Convertible Note 31-Jul-2
Slide 27: Debt and Liquidity
DEBT AND LIQUIDITY 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. Proceeds from inaugural convertible note issuance 70 $196 million. 140 150 31 July 2021
Slide 28: Production and Sales
PRODUCTION AND SALES 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% from 2020 11% from 2020 1 Includes trade coal sale 27
Slide 29: Bengalla
BENGALLA 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 the EX5500 excavator from New Acland providing additional capacity to the operation. Str
Slide 30: New Acland
NEW ACLAND 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 the coming months. Focus moving from production to rehabilitation works whilst maintai
Slide 31: Queensland Bulk Handling
QUEENSLAND BULK HANDLING 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 coal and other commodities to ensure throughput is maximised. 30
Slide 32: Bridgeport
BRIDGEPORT Consistent Sales and Increased Realised Prices Oil prices recovered strongly during the year, increasing 62% over the reporting period. Oil production totalled 313K barrels which was an 8% reduction from the prior reporting period. This represents natural decline in production wells. Ther
Slide 33: West Moreton
WEST MORETON 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 rehabilitated land to support grazing, post-mining. Significant rehabilitation works have be
Slide 34: Pastoral Operations
PASTORAL OPERATIONS Integrated sites to expand the Group’s agricultural operations Cattle prices increased by 40% during the year. Bengalla Agricultural Company (BAC) successfully fattened and sold 1,200 Acland Pastoral Company (APC) bred weaners. A further 960 APC bred weaners have been transported
Slide 35: Thank you
Thank you Contact us Level 16/175 Eagle St, Brisbane City QLD 4000 (07) 3418 0500 newhopegroup.com.au ASX code: NHC
Slide 36: Proxy Results
35 PROXY RESULTS For ‘Against Proxy’s Discretion Abstain Total 459,200,960 53,782,983 2,074,383 1,161,376 % 89.15% 10.45% 0.40% - For Against Proxy’s Discretion Abstain Total 376,173,432 141,783,154 1,996,375 509,110 % 72.34% 27.27% 0.39% - For Against Proxy’s Discretion Abstain Total 464,506,627 53
Slide 37: Disclaimer
DISCLAIMER 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 information in this document does not