New Hope Corporation Limited · ASX:NHC
New Hope — FY2009 Earnings Presentation
41 slides from New Hope's earnings presentation, Sep 22, 2009
Slide 1: Analysts Briefing Year Ended 31 July 2009
For personal use only Analysts Briefing Year Ended 31 July 2009 22 September 2009 Presented by: Rob Neale, Managing Director & Chief Executive Officer
Slide 2: Disclaimer
Disclaimer For personal use only 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 infor
Slide 3: Highlights of past 12 Months
Highlights of past 12 Months For personal use only New Hope’s Operations NPAT up 82.4% to $150.5 million due to: – increased production and sales volumes; – higher export coal prices, partially offset by: • higher USD exchange rates and, • higher production costs. Final dividend increased to 77.25 c
Slide 4: Sale of the New Saraji Project
Highlights of past 12 Months For personal use only Sale of the New Saraji Project A$ millions Consideration received 2,450.0 Carrying value of assets disposed 9.0 Costs of disposal 29.7 Tax on disposal 723.3 Gain on sale after tax 1,688.1 22 September 2009 4
Slide 5: Key Financials
Key Financials For personal use only 12 months ended 31 July 2009 2008 Change Total revenue $700.8m $329.8m + 112.5% Profit from operations $262.3m $90.7m +189.2% (including interest revenue) Net profit after non regular $1950.4m $90.7m +2050.4% items Earnings per share (cents) 240.3 11.2 +2045.5% 2
Slide 6: Dividends
Dividends For personal use only 2009 2008 Change cents per share cents per share Interim dividend 4.75 2.25 +111.1% Final dividend * 4.50 3.50 +28.6% Special dividend * 72.75 8.00 +809.4% Total Dividends for the year 82.00 13.75 +496.4% * The final and special dividend for 2009 is due for payment on
Slide 7: Production Volumes
Production Volumes For personal use only 12 months ended 31 July (Million tonnes) 2009 2008 Change New Acland 4.26 3.92 + 8.7% New Oakleigh 0.45 0.53 -14.9% Jeebropilly 0.43 - - (mine re-opened August 2008) TOTAL 5.14 4.45 + 15.5% 22 September 2009 7
Slide 8: Sales Volumes
Sales Volumes For personal use only 12 months ended 31 July (Million tonnes) 2009 2008 Change Export 3.87 3.23 + 19.9% Domestic 1.10 1.22 - 9.9% TOTAL 4.97 4.45 + 11.7% 22 September 2009 8
Slide 9: Production, Sales & Financial Performance
Production, Sales & Financial Performance For personal use only Australian Operating Results 6,000 160,000 Production (LHS) Sales (LHS) NPAT (RHS) 140,000 5,000 Tonnes - 000's 120,000 4,000 A$000's 100,000 3,000 80,000 60,000 2,000 40,000 1,000 20,000 - - 2002 2003 2004 2005 2006 2007 2008 2009 Year
Slide 10: New Acland 4.8 MTPY Expansion – Wash Plant Upgrade
New Acland 4.8 MTPY Expansion 1 – Wash Plant Upgrade For personal use only Increase CHPP#2 feed rate from 350 tph to 550 tph. Total site capacity increased to 1300 tph. Nominal annual clean coal capacity is approximately 4.8 MTPY. Total expansion cost estimate $36 million. 22 September 2009
Slide 11: New Acland 4.8 MTPY Expansion – Wash Plant Upgrade Sizer
New Acland 4.8 MTPY Expansion 2 – Wash Plant Upgrade Sizer For personal use only Tertiary sizer upgrade. Improves throughput by increasing capacity with higher availability. 22 September 2009 11
Slide 12: New Acland 4.8 MTPY Expansion – Mine Equipment
New Acland 4.8 MTPY Expansion 3 – Mine Equipment For personal use only Three new trucks with larger bodies. New larger excavator 30m3 dipper. New large front end loader 31m3 bucket. One additional new track dozer. Continues effort to be one of the lowest 22 September 2009 cost producers. 1
Slide 13: Wetalla Pipeline Project
Wetalla Pipeline Project 1 For personal use only 47 kilometre pipeline from Toowoomba (Wetalla) to Acland. $33 million project completed under budget. New Acland mine now drought proofed with a mine capacity of up to 10 MTPA. 22 September 2009 13
Slide 14: Wetalla Pipeline Project
Wetalla Pipeline Project 2 For personal use only Header Tank at New Acland. Wetalla Pump Station. 22 September 2009 14
Slide 15: Mine Rehabilitation and the Environment
Mine Rehabilitation and the 1 Environment For personal use only Rehabilitation closely follows mining operations. NHC manages multiple land uses: - Mining, - Cattle, - Farming. 22 September 2009 15
Slide 16: West Moreton Mines Update
West Moreton Mines Update For personal use only Jeebropilly Successfully recommissioned to 500 KTPY. - Under budget. New operations expansion to 900KTPY. - Higher yields and lower strip ratios. Sufficient wash plant capacity. Minimal capital. New Oakleigh Previously scheduled for IQ 2009 c
Slide 17: West Moreton Master Planning
West Moreton Master Planning For personal use only Transition from mining to valued land use Active Mining West Moreton Land Holding – 2900ha. Conceptual development plans completed. Jeebropilly land in SEQ Urban footprint. Traditional Mine Rehabilitation - future industrial development. Ros
Slide 18: Efficiency Improvements
Efficiency Improvements For personal use only Tail gates on West Moreton coal trucks. Fully loaded overburden and coal trucks at Acland. Good quality haul roads. Well integrated equipment management. 22 September 2009 18
Slide 19: QBH Operations
QBH Operations For personal use only Coal exports have grown by 64% over the past five years. Higher rail volumes and ship movements. Remains essentially demurrage free coal terminal. Site management improving effectiveness. - New user group formed. Expansion to a nominal capacity of 10 MT
Slide 20: QBH Port Facility Coal Throughput
QBH Port Facility Coal Throughput For personal use only 12 Months ended 31 July (Million tonnes) 2009 2008 Change Coal Throughput 6.12 5.47 + 11.8% 25 September 2008 20
Slide 21: QBH Exports Throughput
QBH Exports Throughput Million Tonnes For personal use only 12 months ended 31 July 2004/5 2005/6 2006/7 2007/8 2008/9 Exports (MT) 3.72 4.16 4.53 5.47 6.12 TOTAL Growth 15% 12% 9% 21% 12% NHC Growth 8% 17% 6% 24% 20% 22 September 2009 21
Slide 22: Proximity to SE Qld Coal Resources
Proximity to SE Qld Coal Resources Locality Map Kingaroy For personal use only Chinchilla Kogan Creek Kogan Creek Tarong Wilkie Creek Dalby Acland QBH Export Fisherman Islands Open Cut Coal Mine Coal Terminal Coal Terminal Oakey BRISBANE Coal Deposit Power Station Toowoomba Oakleigh Ipswich Ipswich
Slide 23: QBH Expansion Project
QBH Expansion Project For personal use only 22 September 2009 23
Slide 24: QBH Expansion Project
QBH Expansion Project For personal use only Preparation of expansion ground works. New stacker and new reclaim structures. Interface with existing operations. Total expansion cost $65 million. 22 September 2009 24
Slide 25: Lenton Project Exploration
Lenton Project Exploration For personal use only `
Slide 26: Lenton Project Seismic Line 2009-03
Lenton Project Seismic Line 2009-03 For personal use only 115m 230m 345m 460m 575m 690m 805m 0 1 2 3 4 5 6 Kilometres Line 2009-03 interpreted section showing the mapped roof of the Burton Rider and Leichhardt Seams. Rider Seam = yellow horizon; Leichhardt Seam = blue horizon. Also displayed are the
Slide 27: Lenton Project Seismic Line 2009-02
Lenton Project Seismic Line 2009-02 For personal use only 115m 230m 345m 460m 575m 690m 805m 0 1 2 3 4 5 6 7 Kilometres Line 2009-02 interpreted section showing the mapped roof of the Burton Rider and Leichhardt Seams. Rider Seam = yellow horizon; Leichhardt Seam = blue horizon. Also displayed are t
Slide 28: Lenton Project Depth-To-Seam Contours
Lenton Project Depth-To-Seam Contours For personal use only Depth to the top of the Leichhardt Seam (50m contour intervals) Colour Shade Legend Grey = 0-150m Orange = 150-250m Green = 250-400m Aqua = 400-550m Purple = >550m Burton thrust
Slide 29: Bee Creek Project Hyperspectral Image Processing
Bee Creek Project Hyperspectral Image Processing For personal use only Potential Rangal Coal Measures Continued to refine drilling target using remote sensing techniques; Potential Moranbah Coal Measures – Hyperspectral mapping indicates possible Moranbah and Rangal coal measures within New Hope’s l
Slide 30: Downs Project
Downs Project For personal use only Jimbour Willeroo Jondaryan Mt Russell Wellcamp Pittsworth Pittsworth West East Bringalily
Slide 31: Arrow Energy Tenure Map
Arrow Energy Tenure Map For personal use only As At 31 July 2009 Shareholding at 16.9 % Cost of shares $119.3 M Market value at $525.9 M Moranbah Unrealised profit before tax $406.6 M Styx Basin Boyne River Surat Basin Clarence Moreton
Slide 32: NHC CTL Background Information
NHC CTL Background Information For personal use only NHC initiated research in 2005 on CTL technologies as an alternative growth avenue in the face of a constrained rail system limiting Acland Mine export growth. NHC conducted gasification evaluations of Acland coal. NHC CTL strategy then focused on
Slide 33: Why Consider a Niche Focused CTL Business?
Why Consider a Niche Focused CTL Business? For personal use only Upgrade low value resources and/or waste products to premium products. Overcome QR rail constraints to Acland and Surat Basin export coal growth. Fuel cost reduction to NHC operations. Potential expansion into the chemical and power bu
Slide 34: Coal-to-Liquids Project: First Drum of Synthetic Crude
Coal-to-Liquids Project First Drum of Synthetic Crude For personal use only 22 September 2009 34
Slide 35: Key Objectives of TPH Concept Unit Trials
Key Objectives of 1 TPH Concept Unit Trials For personal use only 1 TPH SLURRY REACTOR PLANT Establish stable coal conversion processes and operating protocols. Demonstrate system stability performance e.g. heat balance, energy balance, mass balance, gas balance, water balance etc. Demonstrate emiss
Slide 36: Schematic Process Flow Chart of Proposed TPH Concept Plant
Schematic Process Flow Chart of Proposed 1 TPH Concept Plant For personal use only GAS FUEL SOURCE • Natural Gas Solid Carbon / Ash • Coal Seam Gas Elemental Waste • Underground Coal Gas Sulphur SOLID FUEL SOURCE Coal Sludge Conversion Gas Conversion Gas Woodchip Gasifer Clean up Sulphur Wash Sugar
Slide 37: Possible 1TPH Concept Plant Test Site
Possible 1TPH Concept Plant Test Site Not to Scale and Subject to Change Security Fence For personal use only CTL Site Access Fuel Feed Load Environmental Station Possible Third Party Management Gas Feed Bulk Feed Stock Storage From Mine Liquids Plant Gasifier Coal Stocks Office Car Park Maintenance
Slide 38: Planet Gas Limited Equities Holding
Planet Gas Limited Equities Holding For personal use only NHC acquired 13% interest in Planet Gas Limited (PGL). – NHC nominated director. – Single largest shareholder. NHC can increase holding to 19.9% subject to approval by PGL shareholders. Total NHC cost for 19.9% of PGL approx $8.8 million. PGL
Slide 39: Medium Term NHC Business Model
Medium Term NHC Business Model For personal use only DOMESTIC BUSINESS EXPORT BUSINESS Lower Quality Coal Thermal Coal Local Coal Business Land Development Possible Auxiliary Co-Generation Power • Acland • Other Surat Resources CS Energy • West Moreton Power Generation Renewable • Central Queensland
Slide 40: Outlook
Outlook For personal use only Production and sales are likely to be in the order of 5 to 6 million tonnes. Thermal coal prices in US$ terms are likely to remain steady. Overall NPAT is expected to reduce in 2010. - Lower prices in both US$ and A$ terms partially offset by higher sales volumes. - QR
Slide 41: 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