New Hope Corporation Limited

Hello, I'm delighted to outline New Hope Group's exceptional financial and operational performance for the financial year ended 31 July 2023. The results were announced to the market this morning. I encourage you to read our results in full on the New Hope Group website. In this short video, I will share some of the key highlights and it is fair to say it has been a year of significant milestones for the group. Safety focus and metrics have continued to improve. A record profit was achieved for the group. Commencement of the new Auckland Stage 3 with first coal mined and Bengala well ahead of expansion plans. Thanks to the whole New Hope team for your contribution. I'm pleased to report another strong year of safety performance across our operations. Our all injury frequency rate improved by 9% while our total recordable injury rate improved by 19% in the past financial year. This was on top of significant improvements in the preceding FY22 year. This excellent outcome recognises the hard work of all teams across the company who continue to identify and manage risk of injuries through training, injury prevention activities and improved risk management practices. In terms of production from our core operations, the company produced 7.2 million tonnes of saleable coal, a decrease of 9% compared to FY22. In New South Wales, Bengala, of which the company owns 80%, delivered 9 million tonnes of saleable production for the financial year. Constrained coal availability in the first half of FY23 due to heavy rainfall and localised flooding impacted the logistics chain and contributed to a 3% dip in saleable production compared to FY22. Bengala's mine expansion progressed throughout the year and was supported by capital investments, including the purchase of the La Baire 9800 excavator. Equipment delivered and operational during FY23 includes six EH5000 trucks, bringing the completion of the growth truck fleet forward by approximately 12 months. The early delivery of the additional pre-strip capacity is expected to enable an increase to the annualised rate of coal mining to 13.4 million tonnes per annum by December 23, significantly ahead of schedule. It was a year of key milestones, with New Ackland Mine Stage 3 near Oakey securing all necessary approvals from the Queensland Government, including an environmental authority, mining leases and an associated water licence. In March 23, an internal review also upheld the decision of the Department of Regional Development, Manufacturing and Water to grant New Ackland Mine Stage 3 an associated water licence. Stage three operations commenced at New Ackland Coal Mine's Manningvale East Pit in May. And I'm pleased to share with you that first coal from stage three was mined late last week and will be washed and on a ship in the coming weeks. There are now 107 locally based employees working at New Ackland Coal Mine and at the recently reopened New Ackland Coal Community Information Centre in Oakey. Further recruitment will occur at stage three ramp up with a view to producing close to 1 million tonnes of saleable coal in FY24. Maxwell Mine, the flagship asset of Malabar Resources Limited, of which the company owns 15%, processed its first coal from the recommissioned Coal Handling and Processing Plan in FY23. The first train departed Maxwell Mine and unloaded at the Port of Newcastle in June. The investment in Malabar and Maxwell Mine, an underground metallurgical coal project near Musselbrook in New South Wales, aligns with the company's strategy to invest in low-cost coal assets with long life approvals. The acquisition diversifies our portfolio and is expected to provide an attractive investment return over the life of the 6.5 million tonnes per annum project. Across the whole of New Hope, I'd like to congratulate our mining, pastoral, port, corporate and oil and gas teams for their exceptional work. Their skilled and resilient approach to operational management has translated into a record financial performance. The company's underlying earnings before interest, taxes, depreciation and amortisation result was a record $1.75 billion, an 11% increase on FY22, while our net profit after tax was $1.09 billion. This result was underpinned by disciplined cost control combined with safe production, which saw New Hope Group finish the period with 730 million cash at bank, no debt following the convertible note repurchase, and a net asset position of 2.53 billion. This exceptional result has enabled the company to reward its shareholders with a final fully franked dividend of 21 cents per ordinary share. I'm also delighted to announce a special fully franked dividend of 9 cents per ordinary share. The company believes the demand for high quality, low emission thermal coal produced from our Australian operations is critical to supporting the transition to a decarbonised economy. Government policy and legislation will continue to provide a framework as to how the transition will occur. we will adhere to the government's framework to make sure key Australian transition goals are achieved, while at the same time ensuring our low-cost, reliable energy continues to be provided to those in need, including the Australian domestic market. Cost and operational discipline in FY23 means the company is well positioned for the coming year. The Bengala expansion is ahead of schedule and commencement of mining at New Auckland Mine combined with strong cash generation during the past financial year will provide the company with the financial flexibility to identify and pursue opportunities through our existing thermal portfolio and in new opportunities in either metallurgical or thermal coal production, which will provide shareholders with strong cash generation and consistent returns. The company believes mining and resources are essential to Australia's economy and is proud of the contribution it makes to local, state and federal government departments, which help to underpin the living standards of Australians. Thank you.