New Hope : Annual Report 2023

Coal. Energy. Agriculture. Responsibly. Reliably.

Annual Report 2023

New Hope Group is an Australian coal producer with associated port, oil and gas, and agricultural operations.

Acknowledgement of Country

New Hope Group acknowledges the Traditional Owners of Country throughout Australia and First Nations people in the locations in which we operate our business. We pay our respects to Elders past and present.

Contents

Highlights	03	Chairman and	10
	CEO's Review

Our Operations	04	Operating and	14
	Financial Review

Our Value Chain	06	Sustainability	24
and Market	Report

Dynamics

Tax Contribution Report	50
Directors' Report	52
Auditor's Independence	81
Declaration
Financial Report	83
Directors' Declaration	147
Independent Auditor's Report	148
Shareholder Information	152
Resources and Reserves	154

Corporate Directory	157

Purpose	Coal. Energy. Agriculture.
& Vision	Responsibly. Reliably.

Values

Integrity	Respect	Responsibility
We are ethical, honest and	We listen and treat others	We are empowered and
trusted to do the right thing.	as we expect to be treated.	accountable for our actions.

Wellbeing	Resilience	Collaboration
We all seek to prevent harm,	We are adaptable and see	We work together and
promote safety and enhance health.	opportunity in change.	focus on the best outcome.

Strategy

Our strategy is to safely, responsibly and efficiently operate our low-cost,long-life assets throughout the energy transition, with a focus on disciplined capital management, providing valuable returns to our shareholders.

Annual Report 2023

New Hope Group

01

We operate responsibly as stewards of the environment, our land, assets, and shareholder funds while navigating and contributing to the global energy transition.

02

New Hope Group

Annual Report 2023

Highlights

NPAT	Underlying EBITDA1
(Before Non-regular Items)
$1,087m	$1,747m
11% Increase	11% Increase
Total Tonnes Sold	Safety - TRIFR
7.6Mt	2.12
14% Decrease	19% Improvement
Full Year Dividend	Total Shareholder Returns2
70¢		$2.29
Per Share	22% Decrease
Total Employees	Female Participation
908		17%
32% Increase	Up from 15% in 2022

1. Underlying Earnings before Interest, Tax and Depreciation and Amortisation (EBITDA) and Profit before Tax and Non-Regular Items are non-IFRS measures. This non-IFRS information has not been audited by Deloitte.
2. Net shareholder Returns based on gross dividends reinvested per share.

Government Contributions Paid

$814.2m

232% Increase

Realised Price ($AUD)

$346.73/t

23% Increase

Cashflow from Operations

$1,525m

34% Increase

Net Cash

$731m

39% Increase

Annual Report 2023

New Hope Group

03

Our Operations

Key Locations

NT

Bee Creek

QLD
	New Acland	Brisbane
Cooper	Surat	and QBH
Jeebropilly
Basin	Basin
SA
NSW	Bengalla	Maxwell
	Newcastle
	Sydney

ACT

VIC

Otway

Basin

TAS

Operating Coal Mines

Bengalla

(80% joint venture, open-cut)

New Acland

(100%, open-cut)

Maxwell

(15% interest, underground)

Coal Mine Rehabilitation

Jeebropilly

Coal Exploration

Bee Creek

Tenements near Bengalla and New Acland

04

New Hope Group

Annual Report 2023

Agricultural	Port Facility
Operations	Queensland Bulk
Bengalla	Handling
New Acland

Oil and Gas	Offices
Production	New Hope Group head office
and Exploration	(Brisbane)

Surat Basin

Cooper Basin

Otway Basin

New Hope Japan office (Tokyo)

Bridgeport head office (Sydney)

International and Domestic Coal Customers - FY23

China

Japan

Taiwan

NSW	Brisbane
	Chile
	Newcastle

Export Facility

Customer Destination

Annual Report 2023

New Hope Group

05

Our Value Chain

Our Inputs

People & Organisation

We have a capable, energised and productive team, and a streamlined structure. We focus on providing a workplace where everyone is treated fairly and with respect.

Financial Resources

We use our financial resources and manage financial and business risk with discipline, seek to reduce cost, and focus on delivering sustainable financial returns.

Systems, Processes & Technology

We utilise appropriate systems and processes to support effective and efficient business activities, continued growth and good corporate governance.

Procurement & Business Support Functions

We engage with partners aligned with our business objectives and values, and provide required support across the business to enable efficient, effective and compliant operations.

Our Approach

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develop low-cost,

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long-life assets,

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&

with a portfolio

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focused on

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thermal coal

for electricity

f

We prioritise

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generation.

S

providing a safe

and healthy work

environment and

seek to prevent

harm, promote

We operate

safety and enhance

responsibly and

wellbeing.

progressively

restore mined

land to a safe

and productive

post-mining

land use.

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06

New Hope Group

Annual Report 2023

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We aim to deliver

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safely, on time

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and within

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budget, while

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to operate

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meeting

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responsibly and

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customer needs.

ensure the ongoing

acceptance of our

business and activities

by the Government,

community, investors

We have

and other

long-standing

stakeholders.

relationships with

clients and

customers. We

work with rail

and port partners,

to reliably supply

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coal to customers

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in Australia and

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abroad.

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Value Created in FY23

People

• YOY safety improvement: TRIFR improved by ~19%, AIFR improved by ~9% YOY
• 908 employees, 218 new jobs created
• $166.8 million in wages
• Re-hiringof staff at NAC

Customers and Markets

• Reliable supplier of high energy coal
• 7.6Mt of coal sold to export and domestic markets

Communities

• 90% of workforce are locally employed
• $773,000 in community sponsorships & donations
• $207.5 million spent with 761 local suppliers - local suppliers account for 22% of procurement spend

Investors

• Record underlying EBITDA1 of $1,747 million
• $2.29 Total Shareholder Returns2
• $839.1 million paid in dividends

Governments

• $814.2 million paid to local, state and federal governments

1. Underlying Earnings before Interest, Tax and Depreciation and Amortisation (EBITDA) and Profit before Tax and Non-Regular Items are non-IFRS measures. This non-IFRS information has not been audited by Deloitte.
2. Net shareholder Returns based on gross dividends reinvested per share.

Annual Report 2023

New Hope Group

07

Demand for Australia's low emission, high-quality coal outstripping supply

Despite falling demand, we see a supply gap emerging as mine closures and chronic underinvestment in new thermal coal projects constrain supply.

	1,400
	1,200
	1,000
(Mt)	800
tonnes
Million	600
	400
	200
	0
	2022	2025	2030	2035	2040	2045	2050
	ROW	Other Asia	JKT	India	China
	Operating		Probable

Global Demand vs Supply - Base Case (By Operating Status)

Source: Commodity Insights 2023 dataset.

08	New Hope Group	Annual Report 2023