New Hope Corporation Limited · ASX:NHC
New Hope — H1 FY2009 Earnings Presentation
39 slides from New Hope's earnings presentation, Mar 24, 2009
Slide 1: Analysts Briefing Half Year Ended 31 January 2009
For personal use only Analysts Briefing Half Year Ended 31 January 2009 24 March 2009 Presented by: Rob 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: Agenda
Agenda For personal use only Highlights of Past Six Months Key Financials and Operations Summary Mining Operations QBH Port Facility Exploration Activities Other Activities – Arrow Energy Shareholding – Coal-to-Liquids R&D Project Outlook 24 March 2009 3
Slide 4: Highlights of Past Six Months
Highlights of Past Six Months 1 For personal use only New Hope on track for another record year. – Production, Sales and Profits. New Hope’s NPAT (excl non-recurring items) up 261.5% to $132 million due to: – higher coal sales prices in AUD terms; – increased production and export sales volumes; – h
Slide 5: Highlights of Past Six Months
Highlights of Past Six Months 2 For personal use only Completed the sale of the New Saraji Project to BHP Billiton Mitsubishi Alliance (BMA) for A$2.45 billion in September 2008: – Special dividend of $600 million will be returned to shareholders in November 2009 (previously announced). Non-recurrin
Slide 6: Highlights of Past Six Months
Highlights of Past Six Months 3 For personal use only New Acland mine expansion to 4.2 million tonnes per annum (Mtpa) completed: – Second open cut pit in operation; – Expansion to 4.8 Mtpa underway, on schedule and within budget. Production from the re-activated Jeebropilly mine is underway and New
Slide 7: Key Financials
Key Financials 1 For personal use only Six Months Ended 31 January 2009 2008 Change Total revenue from $308.1m $148.8m + 107.0% ordinary activities Profit from operations and $132.5m $36.6m + 261.5% treasury Net profit after non $1,820.5m $36.6m +4,868.7% recurring items Earnings per share (cents) 2
Slide 8: Key Financials
Key Financials 2 For personal use only $’s Million $’s Million 31 Jan 2009 31 Jan 2008 Operations NPAT 78.76 32.37 Treasury NPAT 53.70 4.27 Non Recurring NPAT 1688.09 - 1820.55 36.64 Earnings Per Share Before Non Recurring Items 16.4 4.5 After Non Recurring Items 224.8 4.5 24 March 2009 8
Slide 9: Dividends
Dividends For personal use only 2009 2008 Change (cents per share) (cents per share) Interim dividend to be 4.75 2.25 +111.1% paid in May 2009 Net tangible asset 294.3 101.1 +191.0% backing 24 March 2009 9
Slide 10: Production, Sales & Financial Performance
Production, Sales & Financial Performance For personal use only Australian Results 5,000 100,000 Production (LHS) Sales (LHS) NPAT (RHS) 4,000 80,000 Tonnes - 000's A$000's 3,000 60,000 2,000 40,000 1,000 20,000 - - 2002 2003 2004 2005 2006 2007 2008 2009 Years ended 31 July (a) Years 2002 to 2005 e
Slide 11: Production Volumes
Production Volumes For personal use only Six Months Ended 31 January (million tonnes) 2009 2008 Change New Acland 2.064 1.906 + 8.3% New Oakleigh 0.290 0.260 + 11.6% Jeebropilly 0.089 - - (mine reopened June 2008) TOTAL 2.443 2.166 + 12.8% 24 March 2009 11
Slide 12: Sales Volumes
Sales Volumes For personal use only Six Months Ended 31 January (million tonnes) 2009 2008 Change Export 1.696 1.674 + 1.2% Domestic 0.569 0.626 - 9.3% TOTAL 2.265 2.301 - 1.6% 24 March 2009 12
Slide 13: Proximity to SE Qld Coal Resources
Proximity to SE Qld Coal Resources Locality Map Kingaroy For personal use only Chinchilla Kogan Creek Kogan Creek Tarong Wilkie Creek Dalby Acland QBH Export Fisherman Islands Open Cut Coal Mine Coal Terminal Coal Terminal Oakey BRISBANE Coal Deposit Power Station Toowoomba Oakleigh Ipswich Ipswich
Slide 14: Acland Expansion Projects
Acland Expansion Projects For personal use only Completed Expansion to 4.2 Mtpa. Expansion to 4.8 Mtpa – On time and budget. underway, opened second pit. $36 million project. New Hitachi 5500 digger commissioned in February. New trucks, dozers and loaders on schedule. Acland #2 Washplant to be expan
Slide 15: New Acland Open Cut Schematic
Mining Operations New Acland Open Cut Schematic For personal use only North Pit Centre Pit 2008 - 2012 2013 - 2015 2015 - 2018 South Pit 24 March 2009 15
Slide 16: Wetalla Pipeline Project
Wetalla Pipeline Project For personal use only 39 kms of 47 kms of pipe in the ground. “Drought proofs” Acland. – Up to 5500 mega litres per annum for 43 years. Completion end 2Q 2009. Pipeline matching waste water plant schedule of Toowoomba Regional Council (3Q 2009?). $33 million NHC budget. 24 M
Slide 17: West Moreton - Highlights
Mining Operations West Moreton - Highlights For personal use only New Oakleigh to remain operating 2009 – 2010? – Previously scheduled to be closed February 2009; – Performance will be reviewed every six months; – Reserves review completed – approx 1.0 million tonnes (non JORC compliant); – Reserves
Slide 18: 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 19: West Moreton Landholdings: Master Planning
West Moreton Landholdings Master Planning For personal use only Active Mining Traditional Mine Rehabilitation Conceptual Future 24 March 2009 19
Slide 20: QBH Port Facility: Coal Throughput
QBH Port Facility Coal Throughput For personal use only Six Months Ended 31 January (Million tonnes) 2009 2008 Change Coal Throughput 2.822 2.835 -0.5% * Essentially demurrage free coal terminal 24 March 2009 20
Slide 21: 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. – Currently capacity constrained. – Record 5.472 MT shippe
Slide 22: QBH Port Facility Aerial View
QBH Port QBHFacility Facility Aerial View prior to Expansion Activity For personal use only e Riv er B risban 24 March 2009 22
Slide 23: QBH Port Facility Expansion Project
QBH Port Facility Expansion Project 1 For personal use only 24 March 2009 23
Slide 24: QBH Port Facility Expansion Project
QBH Port Facility Expansion Project 2 For personal use only Project on schedule for October 2010 completion. – $65 million budget. New land agreements completed with Port of Brisbane Corporation. – Awaiting ministerial consent. 24 March 2009 24
Slide 25: QBH Port Facility Expansion Project
QBH Port Facility Expansion Project 3 For personal use only 24 March 2009 25
Slide 26: New Hope's Operations Performance Summary
New Hope’s Operations Performance Summary For personal use only Production and sales volumes on track. – Has retained market share at this time. Remains a low cost producer and is competitively positioned. Current expansion projects on budget and schedule. New Hope retains its previous 2008-2009 pro
Slide 27: Exploration Projects Status
Exploration Projects Status For personal use only Successfully exited New Saraji exploration landowner arrangements. – Important for future exploration activities. Wet weather has curtailed exploration access on the Darling Downs and in Central Queensland. – Refurbish drilling rigs. Mine definition
Slide 28: Other Activities
For personal use only Other Activities
Slide 29: Arrow Energy Tenure Map
Arrow Energy Tenure Map For personal use only Shareholding at 29/02/09 17.1% Cost of shares $112M Market value at 29/02/09 $322M Unrealised profit before tax $210M Moranbah Styx Basin Boyne River Surat Basin Clarence Moreton 24 March 2009 29
Slide 30: Coal-to-Liquids R&D Project Plant Concept
Coal-to-Liquids R&D Project Plant Concept For personal use only Gas Heating Source Power Generation Coal Wash Plant Clean Coal Coal Gassifier LIQUIDS PLANT Diesel , Gasoline & Jet Fuel Raw Coal Coal Mine Inert Waste Sulphur Synthetic Crude Oil By-Product Carbon Enrichment By-Product 24 March 2009 30
Slide 31: Coal-to-Liquids R&D Project Status
Coal-to-Liquids R&D Project Status For personal use only Project retains cautious approach. Evaluating production of high quality transportation fuels being low sulphur diesel, jet fuel and gasoline. Assess the technologies to produce synthetic crude oil. – To be upgraded by third party refineries.
Slide 32: Coal-to-Liquids R&D Project Gasifier
Coal-to-Liquids R&D Project Gasifier For personal use only 24 March 2009 32
Slide 33: Coal-to-Liquids R&D Project Pilot Plant
Coal-to-Liquids R&D Project Pilot Plant For personal use only 24 March 2009 33
Slide 34: Coal-to-Liquids R&D Project Coal arriving on Site
Coal-to-Liquids R&D Project Coal arriving on Site For personal use only 24 March 2009 34
Slide 35: Coal-to-Liquids R&D Project Lock Hoppers
Coal-to-Liquids R&D Project Lock Hoppers For personal use only 24 March 2009 35
Slide 36: New Hope Outlook
New Hope Outlook 1 For personal use only Well experienced team that has the “scar tissue” of previous market downturns in “muscle memory”. New Hope is re-invigorating it’s core culture of focussing on operational basics supported by improvement programmes. – Retain our low cost producer mantra. Main
Slide 37: New Hope Outlook
New Hope Outlook 2 For personal use only Current expansions will place New Hope in a strong position when the market improves. New Hope has a low operational cost basis with significant in built flexibility to respond to volatile markets. – Government costs remain a challenge. – We remain nimble. We
Slide 38: 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, no borrowings; – has a Strong Future. 24 March 2009 38
Slide 39: The Independent Energy Alternative
For personal use only “The Independent Energy Alternative” People are Important Margin Management makes us Competitive Continuous Improvement makes us Effective Growth is an Imperative