New Hope Corporation Limited · ASX:NHC
New Hope — Shareholder Meeting (November 2013)
46 slides from New Hope's shareholder meeting presentation, Nov 14, 2013
Slide 1: New Hope Corporation Limited 11th Annual General Meeting
NEW HOPE CORPORATION LIMITED Welcome to the 11th Annual General Meeting as a Listed Company 14 November 2013
Slide 2: Disclaimer
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 information in this documen
Slide 3: Agenda
AGENDA Section Page 1. Performance Highlights 4 2. Performance in Details 6 3. Port Operations 16 4. Mining Operations & Projects 21 5. Energy Activities 29 6. Community & Social Responsibility 40 7. Outlook 43 3 | 13 November 2013
Slide 4: Performance Highlights
SECTION 1 Performance Highlights 4 | 13 November 2013
Slide 5: Key Highlights FYE July 2013
KEY HIGHLIGHTS FYE 31 July 2013 • Profit Result – Net profit after tax before non-recurring items for the year $125.0 million – Comprising: • $80.2 million from coal mining, marketing and logistics operations • $44.7 million from investments – Non-Recurring items for the year totalling $50.8 million
Slide 6: Performance Details
SECTION 2 Performance Details 6 | 13 November 2013
Slide 7: Key Financials
KEY FINANCIALS FYE 31 July 2013 12 Months Ended 31 July (A$m) 2013 2012 Change Revenue from ordinary activities $652.1m $767.5m -15.0% Profit before income tax: before non-recurring items $172.6m $238.0m -27.5% Profit before income tax: after non-recurring items $122.0m $198.8m -38.6% Net profit aft
Slide 8: Dividends
DIVIDENDS FYE 31 July 2013 12 Months Ended 31 July (cents per share) 2013 2012 Change Interim dividend 6.0 6.0 0% Final dividend 5.0 5.0 0% Special dividend 5.0 20.0 -75% TOTAL 16.0 31.0 -48% 8 | 13 November 2013
Slide 9: Non-Recurring Items
NON-RECURRING ITEMS FYE 31 July 2013 * Profit before non-recurring items contained in this report has not been 12 Months Ended 31 July audited in accordance with the Australian Auditing Standards (A$million) 2013 2012 Profit Before Tax and non-recurring items 172.6 238.0 Income Tax Expense on profit
Slide 10: Production & Sales Performance
PRODUCTION & SALES PERFORMANCE FYE 31 July 2013 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 2012 2013 Years ended 31 July 10 | 13 November 2013
Slide 11: Production & Sales Tonnages
PRODUCTION & SALES TONNAGES FYE 31 July 2013 12 Months Ended 31 July (tonnes 000s) 2013 2012 Change Raw Coal Production 11,405 12,340 -7.6% Saleable Coal Production 5,826 6,287 -7.3% Coal Sold 5,985 6,250 -4.2% 11 | 13 November 2013
Slide 12: Coal Production Volumes
COAL PRODUCTION VOLUMES FYE 31 July 2013 12 Months Ended 31 July (million tonnes) 2013 2012 Change New Acland 4.69 5.09 -7.8% New Oakleigh 0.27 0.35 -22.8% Jeebropilly 0.87 0.85 2.3% TOTAL 5.83 6.29 -7.3% 12 | 13 November 2013
Slide 13: Coal Sales Volumes
COAL SALES VOLUMES FYE 31 July 2013 12 Months Ended 31 July (million tonnes) 2013 2012 Change Export 5.80 5.83 -0.5% Domestic 0.19 0.42 -54.8% TOTAL 5.99 6.25 -4.2% 13 | 13 November 2013
Slide 14: Group NPAT Comparison
GROUP NPAT COMPARISON Profit before tax and non recurring items 290 270 1.1 4.1 250 18.1 230 238.0 21.9 85.9 210 190 2.0 1.9 6.0 18.5 170 0.3 172.6 150 14 | 13 November 2013
Slide 15: Production & Sales Tonnages Quarter Ended October 2013
PRODUCTION & SALES TONNAGES Quarter ended 31 October 2013 3 Months Ended 31 October (tonnes 000s) 2013 2012 Change Raw Coal Production 2,940 3,173 -7.3% Saleable Coal Production 1,513 1,645 -8.0% Coal Sold 1,460 1,478 -1.2% 15 | 13 November 2013
Slide 16: Port Operations
SECTION 3 Port Operations 16 | 13 November 2013
Slide 17: QBH Port Facility
QBH PORT FACILITY 12 Months Ended 31 July (million tonnes) 2008 2009 2010 2011 2012 2013 Coal Throughput 5.47 6.12 6.67 6.52 8.73 8.73 TOTAL GROWTH 21% 12% 9% (2%) 34% 0% NHC Growth 24% 20% 26% 2% 17% 0% 17 | 13 November 2013
Slide 18: QBH Port Facility Summary
QBH PORT FACILITY Summary • Remained essentially a demurrage free port • Shipped 8.73 million tonnes in 113 vessels during 2013 • 14 month free of Lost Time Injury milestone achieved • Commencement of engineering studies required for potential expansion of the port • Targeted business improvement pr
Slide 19: QBH Facility Capacity Upgrade
QBH FACILITY Capacity Upgrade • Bottom Dump Upgrade Front End Engineering Study (FEED) completed • Budget pricing exercise in progress based on FEED • Detailed design for upgrade of all QBH fixed plant now in progress 19 | 13 November 2013
Slide 20: Business Improvement: D10T Blade Comparison
BUSINESS IMPROVEMENT D10T Blade Comparison • Detailed simulation compared the performance of three different dozer blades (results shown in Blade A, Blade B, Blade C) Amount of coal pushed Force required Note: Blade C found to under-utilise the available dozer power Best performing blade: Blade A •
Slide 21: Mining Operations & Projects
SECTION 4 Mining Operations & Projects 21 | 13 November 2013
Slide 22: Mining Operations Summary
MINING OPERATIONS Summary • New Acland – Increased focus on improving safety performance – Mining fleet renewal program underway with delivery of two new Cat D11T dozers and a fleet of new larger Cat 793 trucks during 2013/14 – Seeking mine plan approval to 2030 – Cost management programs including
Slide 23: New Acland Continuation Plan
NEW ACLAND COAL MINE New Acland Continuation Plan • Revised New Acland Coal Mine Stage 3 Project: Approx. jobs: 400 direct, 170 FTE contract, 2,850 indirect Production capacity: up to 7.5 Mtpa Thermal Coal Approx. $530 million per annum direct economic injection* Circa $8 billion economic co
Slide 24: Coal Developments
PROJECT DEVELOPMENT Coal Developments • Colton — 0.5 Mtpa open cut coking coal development near Maryborough – In discussions with regulators regarding environmental management plan assessment report and draft environmental authority conditions • Elimatta – 5 Mtpa open cut thermal coal development ne
Slide 25: Mineral Developments
PROJECT DEVELOPMENT Mineral Developments • Five tenements under exploration in NW Queensland exploring for copper and gold • During the year three drill holes were completed at Moonamarra (near Cloncurry) which intersected uneconomic copper and zinc mineralisation. Further exploration is planned. Ch
Slide 26: Acland Pastoral Company
ACLAND PASTORAL COMPANY • 8,288 Available hectares • Current activities: Cattle 2,460 head Cropping for cattle fodder-500 hectares Cropping for grain & mung beans-1200 hectares Rehabilitation: 214 hectares completed 93 hectares due for completion over the next six months subject to weather Growth ac
Slide 27: Cost Management Outcomes
COST MANAGEMENT OUTCOMES • Cost of sales down $36.0 million on the previous corresponding period (a reduction of 10.1%) albeit on lower volumes • Administration costs down $9.9 million on 2012 (a reduction of 37.9%) albeit on lower volumes • Marketing and transportation costs reduced by $1.6 million
Slide 28: Coal Business Strategic Summary
COAL BUSINESS STRATEGIC SUMMARY • NHC strategic planning components remain unchanged, but management focus re-weighted toward low cost, efficient operations – Improve coal chain logistics – Focus on transportation costs – Continue to undertake cost reduction activities at all sites – Maintaining key
Slide 29: Energy Activities
SECTION 5 Energy Activities Energy Overview & NHC Objectives Bridgeport Energy Limited (BEL) CTL Projects 29 | 13 November 2013
Slide 30: Energy Diversity Strategy
NEW HOPE CORPORATION Energy Diversity Strategy • Diversity is a prudent and viable risk mitigation mechanism and provides flexibility and alternative solutions when unscheduled events impact business viability and shareholder value. – Floods, transport and services disruption (alternate mine supply)
Slide 31: Oil Activities
OIL ACTIVITIES • Bridgeport Energy Limited (BEL) is 100% owned by New Hope Corporation – Small oil producer based in the Eromanga Basin, Queensland – Actively developing the Utopia and Inland Fields – Produces 6,000 barrels of crude oil per month – Upon completion of Cuisiner an additional 8,500 bar
Slide 32: Energy Activities Annual Highlights
ENERGY ACTIVITIES Annual Highlights • New Hope Corporation completed the acquisition of Bridgeport Energy during August 2013 • Three new development wells successfully drilled, completed and placed on production in the Inland field • Two new development wells successfully drilled, completed and plac
Slide 33: Energy Activities
ENERGY ACTIVITIES • Resource potential identified in exploration tenements acquired from Arrow; leading to seismic acquisition plus drilling of an appraisal well in each of ATP 794P (Moothandella) and ATP 805P (Donga) • Completing acquisition from Arrow of the Santos-operated Cuisinier field (PL 303
Slide 34: Cooper-Eromanga Basin and Surat–Bowen Basin Portfolio
ENERGY ACTIVITIES Cooper-Eromanga Basin and Surat – Bowen Basin Portfolio 34 | 13 November 2013
Slide 35: Otway Basin Exploration
ENERGY ACTIVITIES • Exploring for hydrocarbons in the Otway Basin in joint venture with Cooper Energy • Targeting the Ardonachie Trough for the equivalent Penola Trough gas fields Source: Cooper Energy Limited 35 | 13 November 2013
Slide 36: Financial and Production Highlights
ENERGY ACTIVITIES Financial and Production Highlights • Annual revenue of $7.4 million • Average oil price of $A108/barrel • Total cumulative production (fuel and sales) of 76,000 barrels • Cash flow positive from operations • Integrated financial reporting, accounting and HR systems into the New Ho
Slide 37: Post Year End Activity Highlights
ENERGY ACTIVITIES Post Year End Activity Highlights • Drilled two high impact appraisal wells in September/October: - Donga 5 in the Surat delineated a mid 2000’s discovery undeveloped by Arrow and confirmed 14m net gas/liquids pay - Moothandella in the East Cooper oil fairway has confirmed 15m net
Slide 38: Typical Oil and Gas Asset Life Cycle
ENERGY ACTIVITIES Typical Oil and Gas Asset Life Cycle Bridgeport presently ATP 752 But building a portfolio operating in this area of to grow production in Exploration the cycle this area of the cycle ATP 944, PEP 150/151 PELA 630 ATP 805 Donga Brownfields / Appraisal Abandon ATP 794 Moonthandella
Slide 39: Coal to Liquids Project Technology Status
COAL TO LIQUIDS PROJECT Technology Status • Indirect Liquefaction - Proof of Concept Plant Production of power and diesel 95% of plant components on site 60 - 65% of plant assembled Gasifier commissioning trials commence in September Indirect Liquefaction Plant - Australia 39 | 13 November 2013
Slide 40: Community & Social Responsibility
SECTION 6 Community & Social Responsibility 40 | 13 November 2013
Slide 41: Community & Social Responsibility
COMMUNITY & SOCIAL RESPONSIBILITY • Community Engagement – Information Campaign: including television, print and billboard advertising underway on Darling Downs – Oakey Community Information Office & Community Liaison Officer celebrated 12 months in community – New Acland Community Reference Group e
Slide 42: Community Engagement
COMMUNITY ENGAGEMENT
Slide 43: Outlook
SECTION 7 Outlook 43 | 13 November 2013
Slide 44: Outlook
OUTLOOK • New Hope’s Australian coal assets remain well positioned to weather the current soft market conditions. • Production and sales for 2014 are likely to be slightly lower. • Port operations are expected to achieve marginally increased exports in 2014. • Spot thermal coal prices are forecast t
Slide 45: newhopegroup.com.au
newhopegroup.com.au
Slide 46: Proxy Results
PROXY RESULTS Annual General Meeting – 14 November 2013 Resolution 1 - Remuneration Report Proxies in favour of FOR AGAINST OPEN TOTAL ABSTAIN Chairman 638,335,024 11,392,569 913,218 650,640,811 813,738 Other Attendees 0 34,500 93,677,352 93,711,852 0 Total 638,335,024 11,427,069 94,590,570 744,352,