New Hope Group
FY25 Half Year Results
ASX:NHC
18 March 2025
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.
While NHC has prepared this information based on its current knowledge and understanding and in good faith, there are risks and uncertainties involved with any forward-looking projections and statements. There could be significant differences between the information provided in this presentation and actual outcomes. NHC cautions against reliance on any forward-looking statements, particularly in light of economic and geopolitical volatility, international conflict and sanctions, impacts caused by extreme weather and natural disasters and inflationary pressures. NHC is not undertaking to update any forward-looking statement to reflect events or circumstances after the date of this presentation although NHC will of course comply with its disclosure obligations under the applicable law and ASX listing rules.
This presentation includes certain non-IFRS financial measures which have not been audited.
All figures presented in this document are in Australian dollars, unless otherwise stated.
Persons who come into possession of this document who are not in Australia should seek advice specific to them and their circumstances.
New Hope Group | FY25 Half Year Results | 2 |
Highlights
and performance summary
Rob Bishop
Chief Executive Officer
New Hope Group | FY25 Half Year Results | 3 |
A strong first half for the 2025 financial year
Operational highlights1 | Financial highlights1 | |||||||||
Safety - TRIFR2 | ROM coal production | Fully franked interim dividend | Underlying EBITDA3 | |||||||
4.08 | 8.3Mt | 19¢ | $517M | |||||||
18% decrease | 56% increase | Per share | 22% increase | |||||||
Saleable coal production | Coal sales | Cash from operating activities | NPAT | |||||||
5.4Mt | 5.4Mt | $317M | $340M | |||||||
33% increase | 44% increase | 143% increase | 35% increase | |||||||
- Percentage movements relate to the previous comparative period being the half year ended 31 January 2024, unless otherwise stated. Highlights reflect 80% interest in Bengalla Mine.
- Total Recordable Injury Frequency Rate (TRIFR) - twelve-month moving average. Percentage movement relates to the TRIFR as at 31 July 2024. Following a safety and wellbeing incident and injury classification review, the TRIFR as at 31 July 2024 has been revised from 5.32 to 4.99. Similarly, the TRIFR as at 31 January 2025 has been revised down from 4.40 (as stated in the Quarterly Activities Report 31 January 2025) to 4.08.
- Underlying earnings before interest, tax and depreciation and amortisation (EBITDA) is a non-IFRS measure.
New Hope Group | FY25 Half Year Results | 4 |
Safety highlights - performance improving with ongoing focus
Total Recordable Injury Frequency Rate (TRIFR) | All Injury Frequency Rate (AIFR) |
5.41 | 5.15 | 33.70 | ||||
4.99 | 33.32 | |||||
32.60 | ||||||
32.03 | ||||||
4.76 | ||||||
4.08 | 29.69 | 29.77 | 30.20 | |||
27.10 |
2.60 | 2.44 |
2.12
New Acland Mine restarts operations & greater focus on reporting of all injuries
2.55
Majority of incidents have been non-critical first aid cases, related mostly to hand injuries
Jul-21 | Jan-22 | Jul-22 | Jan-23 | Jul-23 | Jan-24 | Jul-24 | Jan-25 | Jul-21 | Jan-22 | Jul-22 | Jan-23 | Jul-23 | Jan-24 | Jul-24 | Jan-25 | |
TRIFR - twelve-month average | 5-Year Industry TRIFR1 | AIFR - twelve-month average | ||||||||||||||
1. NSW open-cut coal mines.
New Hope Group | FY25 Half Year Results | 5 |
Operational highlights - higher production and lower unit costs
Group saleable coal production (Mt)
Bengalla Mine - steady-state production, Growth Project achieved
• | Saleable coal production of 4.2Mt1, up 11 per cent. | +33% | |||
1.3 | |||||
• | FOB cash cost3 of $68.3/t, a 16 per cent improvement. | 4.1 | |||
- FY25 sustaining capital guidance revised down to $185m - $225m1.
5.4
New Acland Mine - Legal challenge withdrawn against Stage 3
- Discontinuance of OCAA's2 appeal provides certainty for ramp-up.
- Saleable coal production of 1.2Mt, up ~300 per cent.
- Planning for access and mining of Manning Vale West Pit
1HFY24 | 1HFY25 |
Group FOB cash cost3,4 ($ / sales tonne)
-21%
97.9
20.2
Malabar Resources Limited - increasing our equity interest to 22.97%
- Additional 3.0% stake in Malabar purchased for $2.00 per share.
• | Low-cost, long-life, metallurgical coal asset. | 77.7 | ||
• | ~6Mtpa of coal sales over a ~20-year approval period. | |||
1. Bengalla Mine 80 per cent basis. | 1HFY24 | 1HFY25 |
- Oakey Coal Action Alliance.
- Free on Board - excluding state royalties and trade coal.
- Group FOB cash cost excludes $38.8 million of New Acland Mine costs associated with accessing Willeroo Pit via box-cut, which is capitalised for accounting purposes. Group FOB cash cost including this cost would be $84.8/t.
New Hope Group | FY25 Half Year Results | 6 |
Financial highlights - solid cash generation and shareholder returns
Cash flow from operating activities | Investing in Bengalla Mine, New | |
$317M | Acland Mine, Malabar and EL9431 | |
517 | ||
197 | ||
143 | ||
825 | ||
186 | 10 | |
FY24 Final | ||
22% higher than the | Dividend of 22cps | |
previous period | 805 | |
Available cash | Underlying | Tax, NWC & | Investing | FY24 Final | Other financing | Available cash |
Jul-241 | EBTDA | other2 | cash flows3 | Dividend | cash flows | Jan-251 |
- Includes cash and cash equivalents and fixed income investments, which are reported as other financial assets.
- Tax payments ($105.9 million), settlement of provisional pricing ($63.6 million), net working capital (+$11.8 million), other ($39.7 million).
- Payments for PPE and intangibles ($126.2 million), proceeds from sale of PPE (+$27.7 million), investment in Malabar Resources Limited ($36.1 million), exploration ($8.5 million).
- Based on dividends paid during the period, including the value of franking credits, and closing share price as at 31 January 2024.
Realised price (incl. hedging)
$180/t
15% decrease
Underlying margin (incl. hedging)
$84/t
16% decrease
Gross dividend yield4
10.3%
12 months to 31 January 2025
New Hope Group | FY25 Half Year Results | 7 |
Capital management highlights - maximising returns to shareholders
Cash flows from our assets
Uses of cash flow
• ~$400m growth capital1 at New Acland Mine, which is currently being optimised.
• $185m - $225m of sustaining capital guidance at Bengalla Mine for FY25.
• Surplus cash and returns to support swift execution of strategic opportunities.
Growth capital | M&A | Fixed income |
for organic | opportunities | maximise returns to |
production increases | aligned to strategy | support our strategy |
Maximise value available for shareholder returns
Fully franked dividends | Share buy-back |
To utilise significant franking account | Reduction of shares on issue |
Fully franked dividends
- FY25 fully franked interim dividend of 19c per ordinary share.
- Utilisation of significant franking account balance is a key priority.
On-market share buy-back
- On-marketbuy-back up to $100m announced.
- Prevailing share price provides an opportunity to reduce shares on issue, at an attractive price.
1. Growth capital to be executed over the next 2-3 years.
New Hope Group | FY25 Half Year Results | 8 |
Production growth and disciplined cost control driving lower unit costs
Group FOB cash costs1 (A$/sales t)
-16% | |||||||
81.3 | 0.6 | ||||||
3.4 | |||||||
2.6 | |||||||
13.2 | |||||||
9.4 | |||||||
77.7 | |||||||
68.3 | |||||||
Bengalla | Labour & | Mining & | Port & | Volume | Bengalla | NAC | Group |
1HFY24 | Admin | Maintenance | Rail | Impact | 1HFY25 | Ramp up | 1HFY25 |
1. Free on Board - excluding state royalties and trade coal.
New Hope Group | FY25 Half Year Results |
Unit costs of key Australian producers (A$/t)
160 | FY20 | FY23 | |||
FY21 | FY24 | ||||
140 | FY22 | H1FY25 | |||
120 | New Acland Mine in ramp-up | ||||
100 | |||||
80 | |||||
60 | |||||
40 | |||||
20 | |||||
- | |||||
Peer 1 | Peer 2 | Peer 3 | Peer 4 | New Hope | Peer 5 |
Source - Commodity Insights 2024 dataset. | |
FOB costs (excluding trade coal and royalties). | |
FY24 data is based on a combination of reported costs, guidance and Commodity Insights estimates. | 9 |
Low-cost operations provide greater resilience against coal price fluctuations
Group underlying margin (A$ / sales t)
180 | |||||
Underlying FOB cash cost | |||||
56 | |||||
22 | 1 | ||||
18 | |||||
84 | |||||
Realised | FOR | Port & rail | Trade coal | Royalties | Underlying |
Price1 | margin |
- Includes net hedging gain (commodity prices and foreign currency).
- gC NEWC 6000 week to date price as of 14 March 2025 - US$101/t or A$160/t.
gC NEWC 6000 & API-5 historical pricing (US$/t)
500
450
400
350
300
250
200
150 | US$101/t2 | |||||
100 | ||||||
50 | ||||||
- | ||||||
Jan-22 | Jul-22 | Jan-23 | Jul-23 | Jan-24 | Jul-24 | Jan-25 |
gC NEWC 6000 | API-5 |
New Hope Group | FY25 Half Year Results | 10 |