New Hope Corporation Limited · ASX:NHC
New Hope — Shareholder Meeting (November 2023)
28 slides from New Hope's shareholder meeting presentation, Nov 23, 2023
Slide 1: 2023 Annual General Meeting Addresses and Presentation
ASX Release | 23 November 2023 2023 Annual General Meeting Addresses and Presentation NEW HOPE CORPORATION LIMITED ABN 38 010 653 844 New Hope Corporation Limited (ASX:NHC) (Company) advises that the following will be delivered at the Company’s Annual General Meeting being held today at 12:00pm (AED
Slide 2: Chairman’s Address to Shareholders
Chairman’s Address to Shareholders On behalf of the Directors of New Hope Corporation Limited, it is my pleasure to present this address to shareholders on the Company’s performance in the 2023 Financial Year. As a Board, we are pleased with the performance and returns delivered to shareholders in t
Slide 3: Chairman’s Address to Shareholders (continued)
Of course a key issue for all businesses, as well as governments and other stakeholders, is contributing to the global effort to transition to a net zero carbon economy. A key challenge is maintaining reliable and secure sources of energy as the role and extent of coal, oil, and gas change over time
Slide 4: Chief Executive Officer’s Address to Shareholders
Chief Executive Officer’s Address to Shareholders It is my privilege to welcome you and present the performance of the business for the 2023 Financial Year, and the future direction of the Company. 2023 was a significant year for New Hope, with record earnings in the face of inclement weather and in
Slide 5: New Acland ramp-up and coal sales
Despite ongoing legal challenges, the New Acland team has remained focussed on its operational objectives and has begun mining and washing of coal, with first shipments made in this month. Congratulations to the whole team for your persistence and resilience. New Acland is targeting a ramp up in pro
Slide 6: Share buy-back and growth outlook
We also commenced an on-market share buy-back of ordinary shares during the year, with 37.1 million ordinary shares bought back for a total consideration of $192.4 million and an average price of $5.19 per share. We will continue to use surplus capital for our organic growth projects, acquisitions t
Slide 7: Decarbonisation activities and finite asset life
The finite life of our assets, with both of our mines expected to exhaust presently permitted reserves during the mid to late 2030s, limits the returns (both financial and in avoided emissions) of potential investments. Nonetheless during the year, we undertook a number of key activities to help mee
Slide 8: Coal demand and group outlook
efficiently operate our low unit cost, long-life assets, while demand for coal used to generate energy continues. Indeed we expect demand for Australian coal to remain strong due to increasing energy demand to support development and population growth in Asia, and the need for reliable baseload powe
Slide 9: New Hope Corporation Limited Annual General Meeting 2023
New Hope Corporation Limited Annual General Meeting 2023
Slide 10: Welcome and order of proceedings
Welcome and order of proceedings 1. Welcome 2. Chairman’s address 3. Chief Executive Officer’s address 4. Formal items of business 5. Question time 6. Voting 7. Meeting close 2
Slide 11: Board of Directors, Executive Management, External Auditor
Board of Directors Robert Millner AO Chairman Executive Management Ian Williams Non- Executive Director and Rob Bishop Audit and Risk Committee Chair Chief Executive Officer Jacqui McGill AO Rebecca Rinaldi Non-Executive Director and Chief Financial Officer Sustainability Committee Chair Dominic O’B
Slide 12: Chairman's address
Chairman's address Robert Millner AO 4
Slide 13: Highlights for the 2023 financial year
Highlights for the 2023 financial year Full year dividend Total Shareholder Returns1 70c $2.29 Per ordinary share 22% Decrease ($2.92 FY22) NPAT Closing cash balance $1,087M $730.7M 11% Increase (FY22) 2% Decrease (FY22) 1. Net shareholder Returns based on gross dividends reinvested per share 2. Und
Slide 14: Director re-elections and election
Director re-elections Robert Millner AO Todd Barlow • Extensive experience in investment • Extensive experience in mergers and • Joined the New Hope Corporation Limited acquisitions, equity capital markets and Board in 1995 investment • Chairman of the associate company, • Joined the New Hope Corpor
Slide 15: Chief Executive Officer's address
Chief Executive Officer's address Rob Bishop 7
Slide 16: Prioritising safety and wellbeing
Prioritising safety and wellbeing All Injury Frequency Rate (AIFR) Sustained significant improvement in performance of All Injury Frequency Rate 40.0 -8.7% and Total Recordable Injury Frequency Rate 30.0 33.32 29.72 29.78 27.10 20.0 10.0 Stop for Safety Program Pursuing High Reliability Organisation
Slide 17: NSW Coal Operations – Bengalla
NSW Coal Operations – Bengalla1 Historical and Forecast Coal Production (Mtpa)¹ Flagship asset delivering near-term growth, improved coal quality and consistent low cost 12.0 Production impacted by weather and Covid 10.0 Productivity improvements in second half, 8.0 following adverse weather during
Slide 18: QLD Coal Operations – New Acland Stage 3
QLD Coal Operations – New Acland Stage 3 Forecast Coal Production (Mtpa) First coal sale in 2024 financial year and executing 6.0 production ramp up plan 5.0 4.0 3.0 2.0 Low capital investment of $459m over three 1.0 financial years funded by operational cash flows 0.0 2024 2025 2026 2027 2028 2029
Slide 19: Highlights for the 2023 financial year
Highlights for the 2023 financial year Total Tonnes Sold NPAT 7.6Mt $1,087M 14% Decrease (FY22) 11% Increase (FY22) Underlying EBITDA1 Realised Price ($AUD) (before non-regular items) $346.73/t $1,746.6M 23% Increase (FY22) 11% Increase (FY22) Total Revenue Closing cash balance $2,754M $730.7M 8% In
Slide 20: Low-cost assets continue to generate strong margins
Low-cost assets continue to generate strong margins (A$/Sales t), underpinning operational cash flow Underlying EBITDA1 margin Underlying FOB cash cost 346.7 $233.4/t 40% Increase (FY22) 56.7 +40% 27.3 233.4 13.6 15.7 Underlying FOB cash cost $113.29/t 167.1 1% Decrease (FY22) Mining Royalties Paid
Slide 21: Strong cash generation with focus on capital management
Strong cash generation with a focus on capital management initiatives to improve short and long-term shareholder returns Capital Allocation 1,525 98 Capital allocation $1,398M 126% Increase (FY22) 367 192 Dividends Paid 716 490 731 $839M 349 172% Increase (FY22) 13 Closing cash balance $730.7M 31-Ju
Slide 22: Capital management – aligned to long-term strategy
Capital management – aligned to long-term strategy • 21 cents per share - FY23 Fully Franked Final Ordinary Dividend Fully Franked • 9 cents per share - FY23 Fully Franked Final Special Dividend Dividends • Total fully franked dividends declared and paid/payable for FY23 70 cents per share On market
Slide 23: Positioned for long-term organic growth
Positioned for long-term organic growth to reliably supply our key trading partners internationally and our domestic customers 15.0 14.0 13.0 Australia-Japan Ministerial Economic Dialogue 12.0 Joint Ministerial Statement Saleable coal produced (Mtpa) 11.0 8 October 2023 10.0 9.0 “As reaffirmed by Pr
Slide 24: Operating responsibly, for our people, communities and environment
Operating responsibly, for our people, communities and environment Workforce Locally employed Government Contributions Paid $814.2M 908 93% Acland 232% Increase (FY22) Local supplier payments Agricultural Female 17% 83% Male 89% Bengalla $207.5M operations adjacent 27% Increase to operating mines Sp
Slide 25: Preparing for mandatory GHG emission reductions and climate-related reporting
Preparing for mandatory GHG emission reductions and climate-related reporting Key progress areas during FY23 Bengalla Scope 1 and 2 Emissions (tCO2-e) FY22 Continued detailed emissions profiling Total Emissions tCO2-e Decarbonisation Opportunities Scope 1 Scope 2 Enterprise Decarbonisation 8% Electr
Slide 26: Net zero by 2050 target and global coal demand vs supply
Australian Government's net zero by 2050 target becoming increasingly difficult to achieve, highlighting the need for Australia’s low emission, high quality coal 2022 Global Demand vs Supply – Global Demand vs Supply – Base case 1.5 degree scenario (by operating status) (by operating status) 1,200 1
Slide 27: 2024 Financial Year – Q1 performance and outlook
2024 Financial Year – Q1 performance and outlook Quarter Ended Outlook FY24 FY23 FY24 guidance reflects restart of Oct 23 Jul 23 Change Change Guidance Actuals ’000t ’000t % ’000t ’000t % New Acland operations and ROM Coal Production Bengalla ramp up, with strong Q1 performance QLD 100% owned and op
Slide 28: 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”) other announcements lodged with the Australian Securities Exchange, which are available at www.asx.com.au While NHC has prepar