New Hope Corporation Limited · ASX:NHC
New Hope — Wilson HTM Focus on Coal Conference (March 2009)
19 slides from New Hope's conference presentation, Mar 5, 2009
Slide 1: Responding to Commodity Markets Uncertainty
For personal use only Responding to Commodity Markets Uncertainty Wilson HTM Focus on Coal Conference 5 March 2009 Presented by: Rob Neale, Managing Director & Chief Executive Officer
Slide 2: Back to the Future V or All that was Old is New Again
“Back to the Future V” OR “All that was Old is New Again” For personal use only Unprecedented global economic turbulence. New Hope’s operating performance in these uncertain times. New Hope is well positioned for the future and our strategy remains in place. 5 March 2009 2
Slide 3: Unprecedented Global Economic Turbulence
Unprecedented Global Economic Turbulence 1 For personal use only The Global Business World has changed. – National world economies in recession or worse. – Credit systems have massive constraints. – China’s growth at 20 year lows. – Japan’s growth significantly below expectations. – Infrastructure p
Slide 4: Unprecedented Global Economic Turbulence
Unprecedented Global Economic Turbulence 2 For personal use only Australia’s Resources Industries “BOOM” is over for now. – Significant collateral damage in financial and human terms. – No soft landing. – Government revenue shortfalls. – Prices previously over shot – now likely to undershoot. – Coal
Slide 5: New Hope's Current Operating Performance
New Hope’s Current Operating Performance 1 For personal use only Coal production remains on track. Coal sales marginally behind expectations. – Rail haulage impact. – Sales volumes expected to recover by year end. – Subject to Japan’s power generation needs in next JFY. – New Hope has approximately
Slide 6: New Hope's Current Operating Performance
New Hope’s Current Operating Performance 2 For personal use only 3 Months 3 Months Change 6 Months 6 Months Change to 31/01/09 to 31/01/08 Ended 31/01/09 Ended 31/01/08 Tonnes 000’s Tonnes 000’s Tonnes 000’s Tonnes 000’s Raw Coal Production 2,266 1,983 + 14% 4,580 4,033 + 14% Saleable Coal 1,180 1,0
Slide 7: New Hope's Current Operating Performance
New Hope’s Current Operating Performance 3 For personal use only Acland’s production on track. – Remains a low cost producer. – New equipment on schedule. West Moreton operations performing well. – Re-activated Jeebropilly mine costs lower than forecast. – Oakleigh operations will be extended beyond
Slide 8: Projects Overview
Projects Overview For personal use only NHC expansion projects on schedule and on budget. – Acland expansion from 4.2 to 4.8 MTPA saleable production. – Wetalla water supply pipeline. – QBH Expansion 7 to 10 MTPA throughput. 5 March 2009 8
Slide 9: Acland Expansion Project
Acland Expansion Project For personal use only $36 million project. New Hitachi 5500 digger commissioned in February. Acland #2 Washplant to be expanded from 350 tph to 550 tph. Completion 1Q 2010. Additional rail capacity being delivered. 5 March 2009 9
Slide 10: Wetalla Pipeline Project
Wetalla Pipeline Project For personal use only 39 kms of 47 kms of pipe in the ground. “Drought proofs” Acland. Completion end 2Q 2009. Pipeline matching waste water plant schedule of Toowoomba Regional Council. $33 million NHC budget. 5 March 2009 10
Slide 11: QBH Expansion Project
QBH Expansion Project 1 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. 5 March 2009 11
Slide 12: QBH Expansion Project
QBH Expansion Project 2 For personal use only 5 March 2009 12
Slide 13: QBH Expansion Project
QBH Expansion Project 3 For personal use only 5 March 2009 13
Slide 14: 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. Expansion Projects on budget and schedule. New Hope retains is previous production guidance at
Slide 15: Exploration & Coal to Liquids: Exploration
Exploration & Coal to Liquids 1 For personal use only Exploration Successfully exited New Saraji exploration landowner arrangements. – Important for future exploration activities. Wet weather has curtailed exploration access in the Darling Downs and Central Queensland. – Refurbish drilling rigs. Min
Slide 16: Exploration & Coal to Liquids: Coal to Liquids
Exploration & Coal to Liquids 2 For personal use only Coal to Liquids Gasification trials of Acland coal scheduled for April – May. 5 March 2009 16
Slide 17: Outlook for New Hope
Outlook for New Hope 1 For personal use only Exceptionally strong balance sheet and uniquely positioned to take advantage of any appropriate opportunity(s) in the coal and broader energy sectors. Expansions will place New Hope in a strong position when the market improves. Have a low operational cos
Slide 18: Outlook for New Hope
Outlook for New Hope 2 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 programme. Maintaining close contact with customers
Slide 19: 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
New Hope — Wilson HTM Focus on Coal Conference (March 2009) on 6ix