New Hope Corporation Limited · ASX:NHC
New Hope — H1 2012 Earnings Presentation
28 slides from New Hope's earnings presentation, Mar 20, 2012
Slide 1: Analysts Results Presentation Half Year Ended 31 January 2012
For personal use only Analysts Results Presentation Half Year Ended 31 January 2012 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: Non Recurring Items and Operating Profit
Non Recurring Items and Operating Profit For personal use only During the half year ended 31 January 2011 the company made a one off non‐recurring gain on the sale of Arrow Energy Limited of $326.3 million. References in this report to “Operating Profit” or “Profit before non‐recurring items” do not
Slide 4: Agenda
Agenda For personal use only • Highlights of Past Six Months • Key Financials and Operations Summary • Mining – QBH Port Facility – Mining Operations – Exploration Activities – Land Activities • Other Energy Activities – Coal to Liquids – Energy Projects • Outlook 19 March 2012 4
Slide 5: Highlights of Past Six Months
Highlights of Past Six Months For personal use only • Operating NPAT $101.1m up 25% on 1st Half 2011 for the prior corresponding period (PCP); • Production 3.2 Mt up 16% on the PCP; • Increased export sales volumes 2.9Mt up 6% on the PCP; • Interim dividend declared of 6.0 cps fully franked; • Three
Slide 6: Key Financials
Key Financials 1 For personal use only Six Months Ended 31 January 2012 2011 Change Revenue from ordinary $388.5 $336.2m + 15.5 % activities Profit from operations $101.1 $81.1m + 24.7 % (after tax and before non recurring items) Net profit (after non recurring items) $101.1 $407.4m ‐ 75.2% 2011 NPA
Slide 7: Key Financials
Key Financials 2 For personal use only Six Months Ended 31 January 2012 2011 (cents per share) (cents per share) Earnings Per Share Before Non Recurring Items 12.2 9.8 After Non Recurring Items 12.2 49.1 19 March 2012 7
Slide 8: Dividends
Dividends For personal use only Six Months Ended 31 January 2012 2011 Change (cents per share) (cents per share) Interim dividend to be paid 6.00 5.25 + 14.3 % in May 2012 Net tangible asset backing * 266.6 275.8 ‐ 3.4 % * Net tangible asset backing per share was impacted by the payment of the speci
Slide 9: Production & Sales Performance
Production & Sales Performance For personal use only Australian Operating Results 7,000 Production Sales 6,000 Tonnes - 000's 5,000 4,000 3,000 2,000 1,000 - 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 First Half Years ended 31 July Only 19 March 2012 9
Slide 10: Production Volumes
Production Volumes For personal use only Six Months Ended 31 January (million tonnes) 2012 2011 Change New Acland 2.581 2.246 + 14.9 % New Oakleigh 0.196 0.123 + 59.7 % Jeebropilly 0.429 0.400 + 7.2 % TOTAL 3.206 2.769 + 15.8 % 19 March 2012 10
Slide 11: Sales Volumes
Sales Volumes For personal use only Six Months Ended 31 January (million tonnes) 2012 2011 Change Export 2.909 2.742 + 6.1 % Domestic * 0.255 0.304 ‐ 16.0 % TOTAL 3.164 3.046 + 3.9 % * Phase out of CSE (Swanbank) contract in 2012 19 March 2012 11
Slide 12: First Half Production & Sales Tonnages
First Half Production & Sales Tonnages For personal use only Six Months Ended 31 January (Tonnes 000s) 2012 2011 Change Raw Coal Production 6,137 5,363 + 14.4 % Saleable Coal Production 3,206 2,769 + 15.8 % Coal Sold 3,164 3,046 + 3.9 % 19 March 2012 12
Slide 13: NPAT Half Year Comparison
NPAT Half Year Comparison For personal use only 160.0 56.5 19.7 140.0 9.4 4.7 8.1 9.6 120.0 4.7 5.6 2.4 101.1 100.0 2.2 NPAT $m 81.1 80.0 60.0 40.0 20.0 - NPAT - HFY Changes in Changes in Changes in Decrease in Increase in Increased Increased Decrease in Other Cost Increase in NPAT - HFY 2011 Sales
Slide 14: QBH Port Facility
QBH Port Facility For personal use only Half Year Ended Half Year Ended Year Ended 31 Jan 2012 31 Jan 2011 31 July 2011 (million tonnes) (million tonnes) (million tonnes) Coal Throughput 4.27 3.46 6.52 19 March 2012 14
Slide 15: QBH Port Facility Summary
QBH Port Facility Summary For personal use only • Agreement reached on 4 year EBA with employees during January without industrial action; • Optimisation studies continuing; • System inloading and outloading availabilities in excess of 97% being achieved; • Installation of a new coal outload sampler
Slide 16: Mining Operations Summary
Mining Operations Summary For personal use only • New Acland – Increased focus on improving safety performance; – New EBA negotiated without industrial action; – Fourth environmental dam built to control water run‐off; – Mining fleet renewal program underway with order placed for 5 new Cat 793 truck
Slide 17: Exploration Activities
Exploration Activities Summary For personal use only • Focus on Colton and Lenton with increased JORC resources announced. Inferred Indicated Measured Total Deposit Million tonnes Million tonnes Million tonnes Million tonnes New Acland* 10 435 410 855 Jandowae* 38 119 - 157 West Moreton* 11 72 48 13
Slide 18: Project Development Activities
Project Development Activities 1 For personal use only • Land Development – The development authority for a 15 Ha site at Karalee at North Ipswich was obtained. • New Lenton – A total of 22,441 metres of drilling occurred during the period; – LOX drilling will take place during the third quarter 201
Slide 19: Project Development Activities
Project Development Activities 2 For personal use only • New Acland Stage 3 – Supplementary EIS submitted in June 2011 is under review by the Co‐ ordinator General; – State Government confirmed that the project does qualify for transitional arrangements for Strategic Cropping Land legislation; – Com
Slide 20: Coal-to-Liquids R&D Projects
Coal‐to‐Liquids R&D Projects For personal use only • Indirect Conversion – Manufacture of the ACT indirect coal conversion plan is well advanced and complete in July; – Site civil works underway at Jeebropilly site; – Delivery to site scheduled for third quarter calendar 2012. • Direct Conversion –
Slide 21: Direct Conversion Metallurgical Coal Substitute
Direct Conversion Metallurgical Coal Substitute For personal use only Proximate Analysis (% dry) Volatile Matter 18.76 Ash 2.23 Fixed Carbon 79.01 Sulfur Content (% dry) 0.40 Calorific Value (btu/lb dry) 15,337 Ultimate Analysis (% dry) * Carbon 88.97 Hydrogen 3.99 Nitrogen 0.93 Oxygen (by differenc
Slide 22: Algae Project
Algae Project 1 For personal use only • Minimal land footprint; • Can use waste water which is recycled; • No food production competition; • Biomass waste has commercial uses; • Produces 30 to 100 times more oil per acre • 24/7 synthetic photosynthesis with specific than corn or soy beans; frequenci
Slide 23: Algae Project
Algae Project 2 For personal use only 19 March 2012 23
Slide 24: Outlook
Outlook 1 For personal use only • Formal sale process concluded without resulting in a definitive proposal appropriately reflecting strategic value; • Approval processes for new projects are becoming prolonged and problematic; • Higher capital and operating costs are shifting the cost curve; • Austr
Slide 25: Outlook
Outlook 2 For personal use only • USA thermal coal market impacted by low price natural gas – difficult to compete in Asia; • Thermal coal demand within Asia remains firm; • Japan shutting down nuclear generation – security of thermal coal supply critical; • Chinese demand trend continues as domesti
Slide 26: Outlook
Outlook 3 For personal use only • Similar spot price scenario to 2010; • Thermal coal benchmark price yet to settle. 19 March 2012 26
Slide 27: Project Locations
Project Locations Location Map For personal use only 19 March 2012 27
Slide 28: An Independent Energy Alternative
For personal use only An Independent Energy Alternative