New Hope Corporation Limited · ASX:NHC
New Hope — H1 FY24 Earnings Presentation
23 slides from New Hope's earnings presentation, Mar 20, 2024
Slide 1: Interim Financial Results
Interim Financial Results Half year ended 31 January 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 “Our low-cost coal assets, and targeted and performance organic growth, will favourably position New Hope to take advantage of the summary demand for high-quality coal expected through the energy transition.” Robert Bishop Chief Executive Officer New Hope Group Interim Financial Results –
Slide 4: Targeted organic production growth and strong shareholder returns
Delivering targeted organic production growth and providing strong shareholder returns despite the coal price retreating from unprecedented highs gC NEWC 6000 and API-5 historical pricing (US$/t) Safety – TRIFR2 Interim Dividend 500 450 2.55 17¢ 400 5% increase Per share 350 Total Shareholder Return
Slide 5: The safety and wellbeing of our people is our highest priority
The safety and wellbeing of our people is our highest priority All Injury Frequency Rate (AIFR) 33.32 • We monitor AIFR as a primary measure 29.69 29.77 29.47 27.10 of operational safety outcomes, with TRIFR as a supplementary performance indicator. • We have conducted safety resets and risk focused
Slide 6: Fundamentals for global seaborne thermal coal look increasingly attractive
Fundamentals for global seaborne thermal coal look increasingly attractive, especially for Australia’s low-emission, high-quality coal Thermal coal supply and demand balance Seaborne thermal coal energy by country (2023) 1,200 7,000 6,322 6,244 6,143 6,127 6,033 6,053 6,000 5,757 1,000 190Mt 5,599 5
Slide 7: Disciplined cost control ensuring we remain a leading low-cost producer
Disciplined cost control ensuring we remain a leading low-cost producer Group site cash costs (A$/saleable coal produced t) Unit costs of key Australian producers (A$/t) +4% 140 0.5 8.4 4.4 72.5 120 68.1 100 5.4 65.4 80 0.8 60 Growth impacts related to realising 40 additional volumes are expected to
Slide 8: Our operations and markets
Our operations and markets Operating coal mines Oil and gas Offices production and Bengalla (thermal) Agricultural Port facility New Hope Group (80% joint venture, open-cut) exploration head office (Brisbane) operations Queensland (Bridgeport) New Acland (thermal) Bengalla New Hope Japan Bulk Handli
Slide 9: Bengalla Mine – delivering growth target and maximising margin
Bengalla Mine – delivering growth target and maximising margin • Saleable coal production guidance of 10.4Mt1 for FY24, largely aligned with targeted long-term production rates. Dartbrook • Disciplined and low unit cost operation delivers consistent, strong AL19 margins, which are expected to furthe
Slide 10: New Acland Mine – ramping up to ~5Mtpa by FY27
New Acland Mine – ramping up to ~5Mtpa by FY27 6 Saleable coal production (Mtpa) • First coal mined, railed and sold in first half FY24. 5 4 • Steady-state operations will see New Acland Mine compete with 3 Bengalla Mine on a FOR1 cash cost basis. 2 1 • New Acland’s high-quality, low-emissions coal2
Slide 11: Malabar Resources Limited – increasing our equity interest to 19.9 per cent
Malabar Resources Limited – increasing our equity interest to 19.9 per cent • Malabar completed an upsized equity raising of ~A$180M1 with proceeds 8 Coal sales (Mtpa) used to accelerate the Maxwell Mine Project as a 300m longwall. 7 2.1x • Participation and additional commitment in the equity raise
Slide 12: Maintaining the environment to continue to deliver shareholder value
Maintaining the environment to continue to deliver shareholder value MSCI ESG rating – maintaining our BBB status We create sustainable value: Locally – by operating responsibly for our people, communities and environment. Globally – by producing the coal that will be required through the energy tra
Slide 13: Low-cost production and organic growth pipeline to generate strong shareholder returns
Low-cost production and our organic growth pipeline will continue to generate strong shareholder returns Targeted production increase Organic growth 18 • Targeted saleable coal production increase provides cost-effective, 2.0x low-risk production growth. 16 14 Saleable coal produced (Mtpa) 12 Low-co
Slide 14: Financial results
Financial results New Hope Group Interim Financial Results – Half year ended 31 January 2024 14
Slide 15: Financial performance
Financial performance Underlying EBITDA1 $m Jan-24 Jan-23 1,747 1,577 $m $m 1,038 Underlying EBITDA before non-regular items1 424.8 1,038.5 290 367 425 Depreciation and amortisation (75.9) (68.3) FY20 FY21 FY22 FY23 31-Jan-23 31-Jan-24 Net interest income 15.2 14.6 NPAT Profit before tax and non-reg
Slide 16: Strong margins despite the coal price retreating from unprecedented highs
Our business generates strong margins (A$/sales t) despite the coal price retreating from unprecedented highs Realised Price ($AUD)1 Group Site Cash Costs2 Underlying FOB cash cost $197/t $72.5/t 58% decrease 11% increase Total Revenue Operational Cash Flow $857M $131M 46% decrease 87% decrease Net
Slide 17: Cash generation remains strong post material payments for dividends and tax
Cash generation remains strong post material payments for dividends and tax Dividends paid $254M Taxes paid $329M Capital investment $146M Fixed income 1 2 3 investments yield4 1. Includes cash and cash equivalents of A$730.7 million and fixed income investments of A$20.0 million, classified as othe
Slide 18: Disciplined capital management and committed to maximising shareholder returns
We remain focused on disciplined capital management and are committed to maximising shareholder returns Fully franked • 17cps – FY24 interim fully franked dividend. dividends • Shareholder returns and utilisation of significant franking account are a key priority. On market share • Total of $192.4 m
Slide 19: Responsible operator
Responsible operator New Hope Group Interim Financial Results – Half year ended 31 January 2024 19
Slide 20: Our people, securing an engaged workforce
Our people, securing an engaged workforce Workforce ramp-up Workforce Locally employed +37% 1,022 93% Acland 1,247 121 Female Male 88% Bengalla 104 17% 83% 1,022 1,022 Mid-year FY24 promotions Average tenure 908 23 Female 40% 5 years Voluntary turnover rate Average age 8.2% 44 years FY23 Jan-24 Futu
Slide 21: Rehabilitation and agriculture working together for better outcomes
Rehabilitation and agriculture working together for better outcomes • Our landholdings are used for a range of purposes in addition to mining, including agricultural operations. • Agricultural operations adjacent to operating mines are used for cropping and cattle grazing, and dairy farming in the c
Slide 22: Decarbonisation overview
Decarbonisation overview • The Bengalla Mine is covered by the Bengalla FY23 Bengalla decarbonisation opportunities Australian Government's Safeguard emissions profile Mechanism and is now subject to mandatory emissions reduction targets. Australian Carbon Credit Implemented Under investigation Emis
Slide 23: Thank you
Thank you Contact us Level 18/175 Eagle St Brisbane City QLD 4000 (07) 3418 0500 newhopegroup.com.au