2013
ANNUAL REPORT &
FINANCIAL STATEMENTS
NEW HOPE
CORPORATION LIMITED
AND CONTROLLED ENTITIES
CORPORATE DIRECTORY
DIRECTORS
Robert D. Millner
Chairman of Directors
Peter R. Robinson
Non Executive Director
David J. Fairfull
Non Executive Director
William H. Grant
Non Executive Director
Susan J. Palmer
Non Executive Director
Ian M. Williams
Non Executive Director
MANAGING DIRECTOR
Robert C. Neale
COMPANY SECRETARY
Matthew J. Busch
AUDITORS
PricewaterhouseCoopers
Level 15, Riverside Centre
123 Eagle Street
BRISBANE QLD 4000
PRINCIPAL
ADMINISTRATION
& REGISTERED OFFICE
3/22 Magnolia Drive
BROOKWATER QLD 4300
Telephone: (07) 3418 0500
Facsimile: (07) 3418 0355
SHARE REGISTER
Computershare Investor
Services Pty Limited
117 Victoria Street
WEST END QLD 4101
Telephone: 1300 552 270
www.computershare.com
ASX Code: NHC
WEBSITE ADDRESS
www.newhopegroup.com.au
CONTENTS
CHAIRMAN’S LETTER
FINANCIAL SUMMARY
DIRECTORS’ REPORT
AUDITOR’S INDEPENDENCE DECLARATION
CORPORATE GOVERNANCE STATEMENT
ANNUAL FINANCIAL REPORT
DIRECTORS’ DECLARATION
INDEPENDENT AUDITOR’S REPORT TO THE
MEMBERS OF NEW HOPE CORPORATION LIMITED
SHAREHOLDER INFORMATION
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CHAIRMAN’S
REVIEW
Dear Shareholders,
I am pleased to present the
2013 Annual Report for New
Hope Corporation Limited
on behalf of the Board of
Directors of the company.
The company produced a robust
operational performance given
the weak coal price and high
Australian dollar which persisted
throughout the past financial
year. Net profit after tax, before
non-recurring items, for the year
ended 31st July 2013 was $125.0
million. This included a net profit
contribution of $80.2 million
from coal mining, marketing and
logistics, which is down 29.0%
from $113.1 million achieved
last year. Before non-recurring
items, basic earnings per share
totalled 15.0 cents, after non-
recurring items basic earnings
per share were 8.9 cents.
New Hope has an enviable record of
dividend payment to shareholders.
Dividends paid or declared upon the
performance of the 2013 financial
year totalled 5 cents per share.
Dividends paid during the financial
year totalled $257.5 million. Over the
past five years the company has paid
a total of $1.5 billion to shareholders
in dividends - all fully franked at the
30% rate. Directors have declared a
final dividend of 5 cents per share
(2012 – 5.0 cents per share) and
a special dividend of 5 cents per
share (2012 – 20 cents per share).
As foreshadowed in my previous
Chairman’s Review the past year
has been a challenging one for the
coal industry with a high exchange
rate and lower coal prices impacting
revenues. New Hope, however,
is comparatively well positioned
with defensive investments in
infrastructure through QBH, and the
continuing cost reduction efforts
across its operations. The Australian
dollar/US dollar exchange rate
remained above parity for most of
the financial year with some relief
from this historically high exchange
rate only occurring during the final
quarter of the financial year. The
Newcastle benchmark thermal coal
price dropped from US$89.95/tonne
to US$77.55/tonne or 14% during
the course of the last financial year.
I believe that these challenging times
for the coal industry are likely to
continue for some time and certainly
into the 2013/14 financial year.
Although production performance
from operations during the year
was not at the record levels of
previous years, last year’s coal
sales of 5.99 million tonnes was our
second best sales performance on
record and was achieved whilst
reducing cost of sales by $36.0
million, a reduction of 10.1% on 2012.
The cost focus on the business is
evidenced by the reduction of $9.9
million (37.9%) in administration
costs in comparison to the 2012
financial year. Importantly, safety
performance improved across the
group during the course of the year
with a reduction in Total Reportable
Injuries of 47%. The number of Lost
Time Injuries reduced by over 30%
from that recorded in 2012. Further
safety performance improvements
are being encouraged following
the successful implementation of a
behavioural safety program called
“i-Safe/We-Safe” across the business.
The current coal industry economic
climate has the potential to create
acquisition opportunities for the
company, however sellers have
thus far had unrealistic value
expectations. Our investment
in conventional oil production
through Bridgeport Energy has
led to drilling success at both the
Inland and Utopia oilfields in the
Cooper/Eromanga Basin during the
past year. Oil production is planned
to expand further in the future.
Progress with project approvals
remains challenging. The Australian
coal industry is currently being
targeted by a well-resourced,
internationally funded campaign
seeking to stop coal development in
this country. Activist groups, often
using unfounded environmental
concerns, have successfully
manipulated some elements
of the media and the approval
processes to serve their objectives.
They have launched spurious legal
claims, trained individuals in civil
disobedience and sought to create
investor uncertainty, all with the
objective of stopping coal mining.
The essential fact is that the quality
of life as we know it is dependent
upon electricity. According to
the International Energy Agency
(IEA), more than 40% of the world’s
energy comes from coal. The IEA
forecasts that global electricity
demand will increase by 70% by
2035 with more than half of that
increase being from China and India
alone. In its 2012 World Energy
Outlook, the IEA stated that: “Coal
remains the backbone fuel for
electricity generation globally.”
I urge shareholders and all people
associated with the coal industry
to communicate to our political
leadership and the media the
importance of a strong coal industry
in Australia, not only to assist in
countering world poverty, but to
maintain our own standard of living.
to occur in February 2014 upon
the retirement of the company’s
current Managing Director, Mr Rob
Neale. Rob has been instrumental
in the evolution of New Hope
from a one mine, half billion dollar
company to its position today
as an ASX 100 company with
a market capitalisation of $3.5
billion. From Rob’s retirement,
the senior management team will
comprise; Shane Stephan, Chief
Executive Officer; Bruce Denney,
Chief Operating Officer; and
Matthew Busch, Chief Financial
Officer. Shane Stephan has a unique
mix of operational, commercial
and financial qualifications and
experience in the resources sector
which will enable him to lead the
company successfully into the
future. The management transition
is part of the company’s long term
succession plan and ensures we
continue to have a strong leadership
team. On behalf of the Board I wish
Rob all the best in his well earned,
and no doubt active, retirement.
I thank my Board colleagues for
their efforts and commitment
during the year. In particular I
would like to note the contributions
made by two new directors
appointed during the past year,
Ms Susan Palmer and Mr Ian
Williams. Also, I take this
opportunity on behalf of the
Board, to thank the management
and staff of the company for their
continuing efforts in cost reduction
and safety improvement over the
past year, and finally I would also
like to thank you, the shareholders,
for your continued support.
Recently the company announced
a senior management transition
R D MILLNER
Chairman
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ANNUAL REPORT & FINANCIAL STATEMENTS 2013NEW HOPE CORPORATION LIMITED AND CONTROLLED ENTITIES FINANCIAL SUMMARY
New Hope Corporation Limited and Controlled Entities
FINANCIAL
SUMMARY
Financial Summary
2013
$000
2012
$000
2011
$000
2010
$000
Total revenue
652,097
767,525
662,404
744,982
Profit before tax
Income tax and petroleum resource rent tax expense
Profit after tax
Profit\(Loss) attributable to minority interests
Net profit attributable to NHCL members
121,984
(47,856)
74,128
(1)
74,129
198,819
(31,694)
167,125
(1)
167,126
719,097
(215,998)
503,099
(135)
503,234
244,583
(60,751)
183,832
-
183,832
Profit after tax from continuing operations
74,128
167,125
503,099
183,832
Total assets employed
Shareholders' funds
2,268,564
2,016,456
2,459,419
2,252,916
2,749,248
2,367,383
2,652,498
2,339,525
Dividends paid during the financial year
257,466
215,871
197,180
679,650
2013
2012
2011
2010
Weighted average shares on issue
Net profit attributable to NHCL members as a % of shareholders' funds
830,551,140
3.68%
830,335,876
7.42%
830,127,809
21.26%
825,292,601
7.86%
Earnings per share (cents)
Earnings per share (cents) from continuing operations
Normal dividends per share (cents)
Special dividends per share (cents)
8.9
8.9
11.00
5.00
20.1
20.1
11.00
20.00
60.6
60.6
10.25
15.00
22.3
22.3
9.50
14.00
Net tangible asset backing per share (cents)
239.66
268.80
278.55
281.79
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ANNUAL REPORT & FINANCIAL STATEMENTS 2013
DIRECTORS’ REPORT
31 JULY 2013
New Hope Corporation Limited and Controlled Entities
Directors Report - 31st July 2013
Your Directors present their report on the consolidated entity consisting of New Hope Corporation Limited and the entities it controlled at the end
of, or during, the year ended 31 July 2013.
Directors
The following persons were Directors of New Hope Corporation Limited during the whole of the financial year and up to the date of this report:
Mr R.D. Millner
Mr P.R. Robinson
Mr D.J. Fairfull
Mr W.H. Grant
Mr R.C. Neale
The following persons were appointed as Directors of New Hope Corporation Limited on the 1 November 2012:
Ms S.J. Palmer
Mr I.M. Williams
Consolidated results
Revenue from operations
2013
$000
2012
$000
%
Change
652,097
767,525
- 15.0%
Profit before income tax (before non recurring items)*
Gain on sale of WICET Subscription
Impairment of investment in associate
Impairment of available for sale investments (refer to Note 7)
Impairment of goodwill (refer to Note 7)
Profit before income tax (after non recurring items)
Profit from ordinary activities after income tax (before non recurring items)*
Gain on sale of WICET Subscription
Impairment of investment in associate
Impairment of available for sale investments
Impairment of goodwill
Tax Benefit from DTL recognised on acquisition
Profit from ordinary activities after income tax (after non recurring items)
Non-controlling interests
Profit attributable to New Hope Shareholders
Basic earnings per share (cents) (before non recurring items)*
Gain on sale of WICET Subscription
Impairment of investment in associate
Impairment of available for sale investments
Impairment of goodwill
Tax Benefit from DTL recognised on acquisition
Basic earnings per share (cents) (after non recurring items)
172,575
786
(13,286)
(38,091)
-
121,984
124,955
550
(13,286)
(38,091)
-
-
74,128
(1)
74,129
15.0
0.1
(1.6)
(4.6)
-
-
8.9
238,010
-
-
(5,804)
(33,387)
198,819
171,080
-
-
(5,804)
(33,387)
35,236
167,125
(1)
167,126
20.6
-
-
(0.7)
(4.0)
4.2
20.1
- 27.5%
- 38.6%
- 27.0%
- 55.6%
- 27.0%
- 55.7%
* The profit before non recurring items and the earnings per share before non recurring items contained within this Directors' Report have not been
audited in accordance with Australian Auditing Standards.
Principal activities
The principal continuing activities of the consolidated entity and associated companies consisted of:
Coal mining - exploration, development, production and processing
Marketing and logistics
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ANNUAL REPORT & FINANCIAL STATEMENTS 2013NEW HOPE CORPORATION LIMITED AND CONTROLLED ENTITIES
New Hope Corporation Limited and Controlled Entities
Directors Report - 31st July 2013
Dividends
Dividends paid to members during the financial year were:
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A final dividend for the year ended 31 July 2012 of 5.00 cents per share paid on 6 November 2012
A special dividend for the year ended 31 July 2012 of 20.00 cents per share paid on 6 November 2012
An interim ordinary dividend for the year ended 31 July 2013 of 6.0 cents per share paid on 1 May 2013
$000
41,526
166,106
49,834
In addition to the above dividends, since the end of the financial year, the Directors have declared a final ordinary dividend of 5.0 cents per share,
and a special dividend of 5.0 cents per share. Both of these dividends are fully franked, to be paid on 5 November 2013 out of retained profits at
31 July 2013, the record date for such dividend to be 22 October 2013. This will provide shareholders of New Hope with total dividends for the year
of 16.0 cents per share (6.0 cents interim) compared with total dividends for the 2012 year of 31.00 cents per share, including a special dividend of
20.0 cents per share.
Review of operations
New Hope Corporation Limited (New Hope or the Company) has reported a net profit after tax and before non-recurring items of $125.0 million for
the year ended 31 July 2013. The result comprises $80.2 million from coal mining, marketing and logistics operations and $44.7 million from
investments. The result is down 27% on the 2012 result of $171.1 million ($113.1 million from coal mining, marketing and logistics operations and
$58.0 million from investments).
Due to the weak market conditions prevailing as at 31st July 2013, the company has written down the carrying value of its investment in Dart
Energy Limited, Westside Corporation Limited and the Quantex group of companies. These represent one off, unrealised impairments to the book
carrying value of the investments which totalled $51.4 million on an after tax basis. Net profit after tax and non-recurring items for the year ended
31st July 2013 was $74.1 million, 55.6% lower than the $167.1 million recorded in 2012.
Before non-recurring items, basic earnings per share for 2013 were 15.0 cents per share, compared to 20.6 cents per share in 2012. After non-
recurring items basic earnings were 8.9 cents per share for 2013 against 20.1 cents in 2012.
Directors have declared a final dividend of 5.0 cents per share (2012 - 5.0 cents per share) and a special dividend of 5.0 cents per share (2012 -
20.0 cents per share). Both of these dividends are fully franked and payable on 5 November 2013 to shareholders registered as at 22 October
2013.
Compared to the previous corresponding period, the 2013 full year result was impacted by:
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Lower clean coal production (down 7%)
Lower sales (down 4%)
Lower cost of sales (down 10.1%), albeit on lower volumes of 4%
Lower revenue from operations (down 15%)
Lost sales due to flooding in early 2013, resultant impacts to rail infrastructure and mine operations
Improved health and safety performance across all operations
Mining Operations
Production for the year was adversely impacted by three significant events, namely:
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Higher than normal rainfall across south east Queensland which culminated in localised flooding in early 2013, and resulted in the western
rail line infrastructure being inoperative for 3 weeks
Cessation of mining at Oakleigh following the recovery of all economic coal reserves in the first quarter of 2013
The scaling back of operations at the high cost Jeebropilly mine due to difficult market conditions
Despite this, production for the year was 5.8 million tonnes (only slightly below management's internal forecast), compared to the record 6.3 million
tonnes produced during 2012. Total group employees have been reduced by 5% from 601 in 2012 to 573 in 2013.
Sales were also impacted by the above events and 2013 saw total sales volumes of 6.0 million tonnes, down 4% on the 6.3 million tonnes delivered
in 2012.
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ANNUAL REPORT & FINANCIAL STATEMENTS 2013DIRECTORS REPORT - 31 JULY 2013
New Hope Corporation Limited and Controlled Entities
Directors Report - 31st July 2013
New Acland Coal Mine
The New Acland open cut mine produced 4.7 million tonnes of product coal in FY2013. This was a decrease of 0.4 million tonnes compared to
FY2012. The mine lost 3 weeks of railings in FY13 due to rain damaged rail lines in February 2013. The lost railings resulted in a 2 week mine
closure at Easter, due to stockpile capacity limitations.
Key activities at the Acland operations in 2013 have included:
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Veneering and profiling systems installed at the Jondaryan Rail Loading Facility
92.9 hectares of mining lease were seeded for a total of 214.4 hectares of mining lease that has been rehabilitated by the end of July 2013
250 million Bench Cubic Metres of material (BCM) moved and 75 million tonnes of Run Of Mine (ROM) coal produced for project to date
Entire workforce attended I-Safe/We-Safe safety cultural change program
Proximity detection devices installed in the majority of the mobile fleet to reduce the risk of vehicle collision
Implementation of cost effectiveness initiatives including 24 hour equipment servicing, change of operational structure in production,
planning and scheduling to create a flatter production line with a reduction in haul distances and employee hours
Two full site closures for a total of three weeks that delivered a reduction in total mine site costs whilst maintaining adequate stocks
New Acland Community Reference Group commenced providing further opportunities for community engagement
Delivery of five Cat 793F trucks to increase efficiency of excavator fleets
Supervisor Development Program was undertaken to further improve the quality of minesite supervision
New Acland celebrated its tenth year of operation with an employee’s family open day
New Acland hosted numerous site visits by community, business and industry groups, as well as representatives from educational,
environmental and agricultural organisations
Employment opportunities and queries regarding New Hope’s Community Sponsorship and Donation Program dominated enquiries at New
Hope’s Community Information Centre in Oakey
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West Moreton Mines
The West Moreton operations, comprising Jeebropilly and New Oakleigh open cut coal mines, produced 1.14 million tonnes of product coal in
2013 (Jeebropilly 0.87 million tonnes and Oakleigh 0.27 million tonnes). This is compared to 1.20 million tonnes in 2012.
Key activities at the West Moreton operations in 2013 have included:
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Introduction of 5 day mining operations in response to current market conditions
Further mining of the Washplant Pit at Jeebropilly, and undertaking geotechnical reviews of the 7186 pit
Completion of mining at New Oakleigh in February 2013. Final coal was processed in May 2013. Rehabilitation works at this site are
being undertaken
Introduction of the i-Safe/We-Safe safety culture change program to all West Moreton employees
Replacement of mobile equipment including a bull dozer and haul trucks
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Queensland Bulk Handling
QBH, New Hope’s 100% owned coal terminal at the Port of Brisbane, exported 8.73 million tonnes of coal on 113 vessels. This result was
similar to last year and within reforecast budget expectations despite difficult market conditions imposed on QBH’s customer base. Another
contributing factor on overall performance was the severe weather experienced in January 2013 which caused rail outages due to landslides
on the Toowoomba range. QBH remains essentially a demurrage free port.
Key activities in 2013 included:
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Successful negotiations with the Port of Brisbane for access to additional land for potential expansion of coal port facilities (should
additional rail capacity become available)
Commencement of engineering and other studies required for expansion of port infrastructure
Targeted business improvement programs, to reduce costs and improve operational efficiencies, commenced with several key projects
completed
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ANNUAL REPORT & FINANCIAL STATEMENTS 2013NEW HOPE CORPORATION LIMITED AND CONTROLLED ENTITIES New Hope Corporation Limited and Controlled Entities
Directors Report - 31st July 2013
New Hope Exploration
New Hope continues an active exploration program utilising three New Hope drilling rigs plus contract rigs as required. The exploration focus
during 2013 has continued with resource definition in the Bowen Basin (Lenton, Bee Creek and Yamala) and Surat Basin (MDL244 for the
revised New Acland Coal Mine Stage 3 Project) as well as Colton in the Maryborough Basin. Exploration on the mineral tenures has been
focused on the eastern edge of the Mount Isa block.
The exploration programs consisted of seismic, aeromagnetic, gravity and electro-magnetic surveys in addition to drilling. The drilling program
consisted of 151 open holes and 79 core holes, totalling 28,709 metres.
Deposit
New Acland
Ownaview
West Moreton
Lenton (1)
Bee Creek
Elimatta
Yamala (2)
Maryborough
Ashford (3)
Status
Mine
Exploration
Mine
Exploration
Exploration
Exploration
Exploration
Exploration
Exploration
Coal Resources (million tonnes)
(Coal resources are inclusive of the reserves reported below)
Inferred
2
38
11
524
104
50
187
60
5
981
Indicated Measured
390
119
72
134
-
101
23
16
8
864
440
-
44
83
-
108
13
-
-
687
2013 Total
832
157
127
741
104
259
223
76
13
2,532
2012 Total
857
157
129
693
104
259
223
76
13
2,511
Notes:
(1) Figures shown are 100% of total resources. New Hope share is 90%.
(2)
Figures shown are 100% of total resources. New Hope share is 83%.
Figures shown are 100% of total resources. New Hope share is 50%.
(3)
Deposit
New Acland (1)
Lenton (2)
Elimatta
Maryborough (Colton)
Total
Status
Mine
Exploration
Exploration
Exploration
Coal Reserves (million tonnes)
Probable
149
31
40
11
231
Proved
292
21
100
-
413
Total 2013
441
52
139
11
643
Total 2012
495
52
191
15
753
Notes:
(1) The year on year reduction is due to reserve depletion plus the impact of revised plans for the Acland Stage 3 Project.
(2)
(3)
Figures shown are 100% of total resources. New Hope share is 90%
Small differences are due to rounding
JORC Declaration - Coal Resources
The estimates of coal resources herein have been prepared in accordance with the guidelines of the “Australian Code for Reporting of
Exploration Results, Mineral Resources and Ore Resources – The JORC Code. These resources are inclusive of the reserves reported in the
Reserves Statement. The work has been undertaken internally and reviewed by Mr Phillip Bryant who is a Member of AusIMM. Mr Bryant has
sufficient experience which is relevant to the style of mineralization and type of deposit under consideration and to the activity which he is
undertaking, to qualify as a Competent Person as defined in the 2004 Edition of the JORC Code. Mr Bryant consents to the inclusion in this
report of the matter based on this information in the form and context in which it appears.
JORC Declaration – Coal Reserves
The information in this Coal Reserves Statement that relates to coal reserves is based on information compiled by Mr Brett Domrow, who is a
Member of AusIMM. Mr Domrow is a full time employee of the company. Mr Domrow has sufficient experience which is relevant to the style of
mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent person as defined
in the 2004 Edition of the ‘Australian Code for Reporting Exploration Results, Mineral Resources and Ore Reserves’. Mr Domrow consents to
the inclusion in the report of the matters based on his information in the form and context in which it appears.
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ANNUAL REPORT & FINANCIAL STATEMENTS 2013DIRECTORS REPORT - 31 JULY 2013 New Hope Corporation Limited and Controlled Entities
Directors Report - 31st July 2013
New Acland
New Hope Corporation has made a public commitment that the town of Acland will be left untouched under the revised New Acland Coal Mine
Stage 3 Project. Subsequently the model has been adjusted to allow for an exclusion zone around the township, and reserves in this area have
been excluded from the 2013 figures.
In addition, the amended mine plan excludes mining of the Lagoon Creek area which has the effect of sterilising approximately 29 million tonnes of
coal which was included in the previous reserve estimates.
There has been additional drilling carried out over the project area since the previous Reserves Statement was developed in 2012, specifically in
the area between the Sabine and Willeroo resource areas. This new drilling information has partially reduced the resource thickness in this area
compared with previous stratigraphy models. This has led to a reduction in area being mined as a result of the increased strip ratio and a
corresponding reduction in the reserve tonnes included within the new pit boundary.
Mining economics have also been updated within the southern resource areas based on New Hope Corporation’s latest prediction of long term coal
prices and operating costs. This has resulted in additional areas included within the mine design, previously not considered economically viable.
Due to the ongoing extraction of coal from the project area, there was also a reduction in reserve tonnages associated with depletion over the past
12 month period.
Lenton
There has been no change to the coal reserves estimated for Lenton since the previous JORC statement. This is a result of there being no
refinement to the mine plan over the previous year.
Elimatta
The Elimatta reserves have decreased from the previous year as a result of an updated financial evaluation on the deposit. There has been no
update to the geological model associated with this resource compared with what was previously used to develop the 2012 JORC Statement. The
latest reserve tonnages have been developed taking into account the long term price forecasts, to determine a reasonable break-even strip ratio.
In addition, some of the lower
This mining ratio was used to define the pit boundary which is smaller than the boundary of the previous model.
seam has now been excluded due to the high incremental strip ratio required to mine this coal.
Maryborough (Colton)
The Maryborough reserves have declined by a total of 4 million tonnes from that identified in 2012 to the current value of 11 million tonnes. For the
most part this change has resulted from updated economic assumptions.
For the full ASX Coal Reserves and Resources Statement please refer to our website.
Details of the 2013 exploration program are as follows:
Lenton (EPC 766, EPC 865 and ML 70337)
Exploration throughout the period focused on coal quality, infill drilling and fault delineation. A total of 61 holes were drilled comprising of 47 open
holes and 14 core holes. A further 2 kilometres of 2D seismic survey was undertaken to better define the Burton Thrust fault in the region in
conjunction with a 3D seismic survey to better delineate the complex faulted area within the existing ML 70337.
Coal quality analysis was undertaken to better understand the Rangal coal measures that are present within the open cut footprint. The Lenton
geological model was updated in May 2013.
New Acland (MDL 244, ML 50216)
While wet weather had a minor impact on drilling, 59 open holes and 40 core holes were drilled during the year totalling 6,590 metres. This allowed
improved resource definition for the revised New Acland Coal Mine Stage 3 Project. The New Acland geological model was updated in February
2013.
Darling Downs (EPC’s 758, 759, 760, 761, 763, 918, 970, 1154 & 1158)
The uncertainty surrounding the State Government’s finalisation of Strategic Cropping Land and the Darling Downs Statutory Regional Plan
legislation has resulted in New Hope Exploration reducing work programs on these tenures to a minimum.
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ANNUAL REPORT & FINANCIAL STATEMENTS 2013NEW HOPE CORPORATION LIMITED AND CONTROLLED ENTITIES New Hope Corporation Limited and Controlled Entities
Directors Report - 31st July 2013
Maryborough (EPC 923)
Wet weather (1,296 millimetres of rain) combined with the low topographic relief and poor drainage of the Maryborough area had major impacts on
drilling in the Maryborough Basin. Five open holes and 21 core holes were drilled during the year totalling 2,126 metres. Exploration throughout
the period focused on geotechnical, coal quality and large diameter core for coke oven testing.
Mineral Tenures
Yanko (EPM 18582)
A programme of three drill holes is planned based on a 50 square kilometre gravity survey completed in 2011. Cultural heritage clearance for this
work is complete and drilling is expected to commence in August 2013.
Moonamarra (EPM 18589)
A 350 point gravity survey has been completed covering 150 square kilometres. Based on the gravity survey results and the regional magnetics, a
3 hole drilling programme was completed totalling 1,356 metres of drilling, inclusive of 433 metres of HQ core. Stage 2 of this exploration program
is scheduled to be undertaken late in FY14.
Sherwood (EPM 18592)
A gravity survey of 325 points covering 20 square kilometres was completed. A drilling program of three holes is planned for early FY14 in
conjunction with the drilling at Yanko.
Courtenay and Courtenay West (EPM’s 18581 & 19508)
A gravity survey of 307 points covering 45 square kilometres has been completed.
identified anomalies to optimize drilling targets. Assuming favourable results, a drilling program is being planned for the 2014 field season.
Induced polarisation surveys are planned covering two of the
Laura (EPM 19342)
The tenure is in application.
Pastoral Operations
During the year the company continued cattle grazing trials on rehabilitated land with early encouraging results. Core focus areas remain:
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effective utilisation of all Acland land, both pre and post mining
active rehabilitation of disturbed land as soon as possible after mining with a view to return it to a quality that is at least equal to, or better than,
the pre-disturbed land condition
ongoing scientific trials to demonstrate the ability and commercial viability of returning disturbed land to a productive state
h
During the year the company sold 2,570 head of cattle compared to 2,138 in 2012, and increased the total herd size from 1,996 to 2,460 head.
Development Projects
Approvals (mining & environmental) for New Hope’s portfolio of coal projects continue to be progressed. These include the brownfield revised New
Acland Coal Mine Stage 3 Project and greenfield projects at Lenton, Colton and Elimatta. The current status of these projects is discussed below:
New Acland
Development on the Environmental Impact Statement (EIS) progressed, based on the new Terms of Reference issued by the Queensland State
Government in March 2013.
Project work has included studies on a revised mine plan, coal preparation and handling plant and mine site infrastructure.
Following the compilation of the EIS and all the supporting studies, the EIS will be submitted to the Co-ordinator General
released in late 2013 for public comment.
in September and
Lenton
In addition to the exploration program, work on Lenton has included gaining an understanding of both coal and coke quality, mine planning
(including geotechnical considerations), submission of the EPBC referral, preparation of the EIS Terms of Reference and EIS baseline studies (for
MLA 70456).
Colton
Exploration and project development work on the Colton open cut coking coal project has continued during 2013. Assessment of the Project
Environmental Management Plan continued with water management being the main focus. The impact of the Queensland Biodiversity Offset Policy
on the project is still being assessed, given that the Government Review of the Policy is ongoing. A large scale coke oven test program was
nearing the reporting stage at year end.
7
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ANNUAL REPORT & FINANCIAL STATEMENTS 2013DIRECTORS REPORT - 31 JULY 2013 New Hope Corporation Limited and Controlled Entities
Directors Report - 31st July 2013
Elimatta
Project development work on the Elimatta project has continued during 2013. The EIS was submitted during the year and work has commenced
on a Supplementary EIS, which is planned for submission in early 2014.
Carbon Conversion Projects
During the year the company continued to investigate two different processes, with a view of commercialising a coal to liquids process.
The construction of the 1 tonne per hour proof of concept plant at Jeebropilly continued throughout the year. Most site infrastructure and the
gasifiers are now in place, however delays have been incurred in delivery and installation of the liquefaction units. These delays will likely see the
company undertake commissioning of the gasification process in late 2013, ahead of the liquefaction process.
While encouraging technical results have been achieved at the Quantex facilities in West Virginia USA, progress has been slow in identifying a
potentially commercial configuration. Due to Quantex requiring additional capital to continue testing, management is currently re-assessing
options, with a view to either delivering a commercially viable business case within a defined period or ceasing investment in this venture. As a
result of the uncertainty surrounding this investment, management has impaired the entire $13.3 million carrying value of the Quantex investment.
Bridgeport Energy
New Hope Corporation Limited completed the acquisition of Bridgeport Energy Limited in August 2012.
New Hope has provided capital to Bridgeport to facilitate organic growth and acquisition activities. Five new development wells were successfully
drilled, completed and placed on production in the Inland and Utopia fields during the year. A sixth well was drilled, cased and suspended in the
Utopia field. A service rig was acquired and a number of workovers of existing wells were undertaken in order to boost production rates.
During the past year, Bridgeport successfully executed the purchase of the conventional upstream exploration and production assets of Arrow
Energy. This purchase remains subject to final government approvals. The company was also successful in a competitive bid for PELA 630 in the
western flank of the Cooper/Eromanga Basin.
Bridgeport has achieved in excess of 600 days without a reportable safety incident. Management remains focussed on improving safety systems
through standardisation of operating practices and procedures.
Planning is underway for an additional five wells plus three potential wells to occur from September 2013.
Outlook
New Hope’s Australian coal assets remain well positioned to weather the current soft market conditions facing Australian thermal coal producers.
Cost reduction initiatives across all sites have already delivered significant savings during the 2013 financial year and management remains
focussed on delivering further prudent savings during the 2014 financial year.
Production and sales for 2014 are likely to be slightly lower due to the cessation of mining at Oakleigh (contributed 273,000 tonnes in 2013),
scaling back of operations at Jeebropilly from the rate of 1 million tonnes per annum to 0.7 million tonnes per annum, slightly offset by Acland
producing at the maximum allowable rate of 4.8 million tonnes compared to 4.68 million tonnes in 2013.
Port operations are expected to achieve marginally increased exports in 2014 nearing nameplate capacity of 10 million tonnes per annum.
Spot thermal coal prices are forecast to remain weak in US dollar terms over the coming twelve months, however the recent devaluation of the
Australian dollar has lifted the average price achieved in Australian dollar terms.
As a vertically integrated, low cost Australian coal producer New Hope remains well positioned to continue generating operating profits, albeit at
lower levels than those recorded in the previous financial year.
A strong balance sheet provides flexibility to take advantage of acquisition opportunities that may present themselves during the current soft
market. At the same time the company can take a longer term view of coal markets in respect of our development portfolio. This will ensure that
prudent expenditure continues on exploration and approvals work so that development can occur swiftly once market conditions improve.
Insurance of officers
In accordance with the provisions of the Corporations Act, New Hope Corporation Limited has a Directors' and Officers' Liability policy covering
Directors and Officers of the parent company and its controlled entities. The insurance policy prohibits disclosure of the nature of the liability
insured against and the amount of the premium.
8
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ANNUAL REPORT & FINANCIAL STATEMENTS 2013NEW HOPE CORPORATION LIMITED AND CONTROLLED ENTITIES New Hope Corporation Limited and Controlled Entities
Directors Report - 31st July 2013
Proceedings on behalf of the Corporation
No person has applied to the Court under section 237 of the Corporations Act 2001 for leave to bring proceedings on behalf of the Corporation, or
to intervene in any proceedings to which the Corporation is a party, for the purpose of taking responsibility on behalf of the Corporation for all or
part of those proceedings.
No proceedings have been brought or intervened in on behalf of the Corporation with leave of the Court under section 237 of the Corporations Act
2001 .
Significant changes in the state of affairs
Except as disclosed in the review of operations, there has not arisen any item, transaction or event of a material and unusual nature likely, in the
opinion of the Directors of the parent entity, to affect substantially the operations or results of the consolidated entity in subsequent financial years.
Matters subsequent to the end of financial year
Since the end of the financial year no matters or circumstances not referred to elsewhere in this report have arisen that have or will significantly
affect the operations of the consolidated entity, the results of those operations or the state of affairs of the consolidated entity in subsequent
financial years.
During the final quarter, New Hope Corporation Limited entered into a contract to acquire a 15% interest in the Cuisinier tenement from Arrow
Energy subject to government approvals and transfer of title. This additional tenement will increase oil production by approximately 240 barrels of
oil per day, based on current rates.
Likely developments and expected results of operations
The activities of the continuing operations in the consolidated entity in the next financial year are expected to be similar to those of the financial
year just ended.
The consolidated entity will continue to pursue a policy of increasing its strength in its major business sectors including the development and
operation of additional mineral resource projects in Australia and is regularly reviewing potential new opportunities.
The Company will disclose further information on likely developments in the operations of the consolidated entity and the expected results of
operations as appropriate. However, Directors are mindful that premature release of information may be prejudicial to the best interests of the
Company and its shareholders.
Environmental compliance
The majority of the Company’s operations are in Queensland and are regulated by various regulatory authorities:
h
h
h
Coal mining operations and exploration tenements are regulated under Queensland’s Environmental Protection Act 1994
Queensland Bulk Handling (QBH) coal export port facility and Jondaryan rail loading facility are regulated under the Sustainable Planning
Oil & gas operations are regulated under the Queensland Department of Environment and Heritage Protection (DEHP)
During the 2013 financial year, the company has not been prosecuted for any breach of environmental laws.
QBH has historically monitored dust levels within the site boundaries and no evidence of excessive dust has been identified. However, QBH has
now undertaken to expand the monitoring program to include areas further from the QBH boundary, including within the suburb of Wynnum North.
QBH will continue to work with DEHP and the Port of Brisbane to ensure all aspects of the company’s licence conditions continue to be met.
The Company’s operational sites have submitted reports under the National Pollutant Inventory program.
For the purposes of National Greenhouse and Energy Reporting and the Energy Efficiency Opportunities program the Company reports as part of
the corporate group of Washington H Soul Pattinson.
During the 2013 financial year the Company has commenced implementation of its Environmental Management System (EMS). The EMS assists
the Company to improve its environmental performance by increasing environmental awareness, optimising operational control, monitoring
compliance and facilitating continuous improvement.
Bridgeport Energy executed various documentation through the year including Cultural Heritage Management Agreements and Landowner Access
Agreements on some of its new permits acquired through the period. Bridgeport operates its permits under an Environmental Management
System prepared and issued in accordance with legislation.
9
9
ANNUAL REPORT & FINANCIAL STATEMENTS 2013DIRECTORS REPORT - 31 JULY 2013 New Hope Corporation Limited and Controlled Entities
Directors Report - 31st July 2013
Information on Directors
Mr R.D. MILLNER (Non executive Chairman)
Experience
Mr Millner is Chairman of the Company's holding Company, Washington H. Soul Pattinson and Company Limited. Mr Millner joined the Board
of New Hope Corporation in 1995 and was appointed Chairman in 1998.
Other current Directorships
Washington H. Soul Pattinson and Company Limited
TPG Telecom Limited
Brickworks Limited (including Bristile Limited)
BKI Investment Company Limited (incl PSI Limited)
Australian Pharmaceutical Industries Limited
Milton Corporation Limited (includes Choiseul Investments Limited)
Appointed 1984
Appointed 2000
Appointed 1997
Appointed 2003
Appointed 2000
Appointed 1998
Former Directorships in last 3 years
Choiseul Investments Limited
Souls Private Equity Limited
Northern Energy Corporation Limited
Special responsibilities
Chairman of the Board.
Interests in shares and options
Appointed 1995 Resigned 2010
Appointed 2004 Resigned 2012
Appointed 2011 Resigned 2012
3,681,962 ordinary shares in New Hope Corporation Limited
Nil options or rights over ordinary shares in New Hope Corporation Limited
Mr P.R. ROBINSON - BCom (Non executive Director)
Experience
Mr Robinson is Executive Director of Washington H. Soul Pattinson and Company Limited. He commenced with Washington H. Soul Pattinson
and Company Limited in 1978 and was appointed as a Director in 1984. He joined the Board of New Hope Corporation in 1997.
Other current Directorships
Washington H. Soul Pattinson and Company Limited
Clover Corporation Limited
Australian Pharmaceutical Industries Limited
Appointed 1984
Appointed 1997
Appointed 2000
Former Directorships in last 3 years
KH Foods Limited
Northern Energy Corporation Limited
Appointed 2008 Resigned 2009
Appointed 2011 Resigned 2012
Special responsibilities
Member of the Remuneration and Nomination Committee.
Interests in shares and options
119,234 ordinary shares in New Hope Corporation Limited
Nil options or rights over ordinary shares in New Hope Corporation Limited
10
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ANNUAL REPORT & FINANCIAL STATEMENTS 2013NEW HOPE CORPORATION LIMITED AND CONTROLLED ENTITIES New Hope Corporation Limited and Controlled Entities
Directors Report - 31st July 2013
Information on Directors (continued)
Mr D.J. FAIRFULL - BCom, ACIS, CPA, ASIA (Non executive Director)
Experience
Mr Fairfull has extensive experience in finance, investment and merchant banking. He was appointed to the New Hope Corporation Board in
1997.
Other current Directorships
Washington H. Soul Pattinson and Company Limited
Souls Private Equity Limited
Shinewing Hall Chadwick National Association
Drill Torque Limited
Appointed 1997
Appointed 2004
Appointed 2009
Appointed 2011
Former Directorships in last 3 years
KH Foods Limited
Northern Energy Corporation Limited
Special responsibilities
Appointed 2008 Resigned 2009
Appointed 2011 Resigned 2012
Member of the Audit Committee, and a member of the Remuneration and Nomination Committee.
Interests in shares and options
11,000 ordinary shares in New Hope Corporation Limited
Nil options or rights over ordinary shares in New Hope Corporation Limited
Mr W.H. GRANT - FAICD, Assoc. Diploma in Local Government (Non executive Director)
Experience
Mr Grant has over 35 years experience in project management, corporate and fiscal governance, local government administration and
strategic planning. He was the CEO of the South Bank Corporation in Brisbane from 1997 to 2005, and prior to that he was the General
Manager/CEO of the Newcastle City Council from 1992 to 1997. He joined the Board of New Hope Corporation in 2006.
Other current Directorships
Brisbane Development Association
Brisbane Airport Corporation
Northern Energy Corporation Limited
Former Directorships in last 3 years
Appointed 2006
Appointed 2007
Appointed 2011
Urban Land Development Authority
Life Without Barriers
Williams Hall Chadwick Chartered Accountants and Business Advisors
Queensland Performing Arts Centre Trust (QPAC)
Appointed 2007 Resigned 2009
Appointed 2002 Resigned 2011
Appointed 2009 Resigned 2011
Appointed 2006 Resigned 2013
Special responsibilities
Chairman of the Remuneration and Nomination Committee, and a member of the Audit Committee.
Interests in shares and options
30,000 ordinary shares in New Hope Corporation Limited
Nil options or rights over ordinary shares in New Hope Corporation Limited
11
11
ANNUAL REPORT & FINANCIAL STATEMENTS 2013DIRECTORS REPORT - 31 JULY 2013 New Hope Corporation Limited and Controlled Entities
Directors Report - 31st July 2013
Information on Directors (continued)
Ms S.J. PALMER - BCom (Non executive Director)
Experience
Ms Palmer is a Chartered Accountant with over 30 years of extensive experience in the financial and resources fields. Ms Palmer brings a
current knowledge to the New Hope board in all aspects of accounting, finance, financial reporting, risk management, and corporate
governance. Ms Palmer was appointed to the New Hope Corporation Board on 1 November 2012.
Other current Directorships
Thiess Pty Ltd
Former Directorships in last 3 years
MSF Sugar
Special responsibilities
Chairman of the Audit Committee
Interests in shares and options
Appointed 2011
Appointed 2008 Resigned 2012
Nil ordinary shares in New Hope Corporation Limited
Nil options or rights over ordinary shares in New Hope Corporation Limited
Mr I.M.WILLIAMS - BEc, LLB (Non-Executive Director)
Experience
As a legal and strategic adviser to International investors in the energy & resources sectors, Mr Williams has been involved in every aspect of
the Australian coal industry. Mr Williams was appointed to the New Hope Corporation Board on 1 November 2012.
Other current Directorships
Ashurst Australia
Appointed 2011
Former Directorships in last 3 years
Nil
Interests in shares and options
Nil ordinary shares in New Hope Corporation Limited
Nil options or rights over ordinary shares in New Hope Corporation Limited
12
12
ANNUAL REPORT & FINANCIAL STATEMENTS 2013NEW HOPE CORPORATION LIMITED AND CONTROLLED ENTITIES DIRECTORS REPORT - 31 JULY 2013
New Hope Corporation Limited and Controlled Entities
Directors Report - 31st July 2013
Information on Directors (continued)
Mr R.C. NEALE - BSc.(Hons) MAICD, MAIMM, (Managing Director)
Experience
Mr Neale has more than 40 years experience in the mining and exploration industries covering coal, base metals, gold, synthetic fuels, bulk
materials shipping, and power generation. He joined New Hope in 1996 as General Manager, and has been Chief Executive Officer since
2005. He was appointed to the board in November 2008.
Appointed 2005
Appointed 2005
Appointed 2006
Appointed 2009
Appointed 2010
Appointed 2009
Appointed 2011
Appointed 2011
Other current Directorships
Australian Coal Association
Australian Coal Research Limited
Australian Coal Association Low Emissions Technologies Ltd
Planet Gas Limited
WestSide Corporation Limited
Queensland Resources Council
Northern Energy Corporation Limited
Bridgeport Energy Limited
Former Directorships in last 3 years
Nil
Special responsibilities
Managing Director and Chief Executive Officer.
Interests in shares and options
2,287,736 ordinary shares in New Hope Corporation Limited
303,423 rights over ordinary shares in New Hope Corporation Limited
Company Secretary
The Company Secretary is Mr Matthew Busch who was appointed to the position on 16 March 2009. Mr Busch has a Bachelor of Business
from Queensland University of Technology and is a member of CPA Australia. He has more than 15 years of experience in the coal industry
and holds the dual role of Financial Controller and Company Secretary.
13
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ANNUAL REPORT & FINANCIAL STATEMENTS 2013 New Hope Corporation Limited and Controlled Entities
Directors Report - 31st July 2013
Remuneration report
The information provided in this remuneration report has been audited as required by section 308(3C) of the Corporations Act 2001.
a. Remuneration Policies and Principles
The performance of the group depends upon the quality of its Directors and executives.
appropriately qualified and experienced Directors and executives.
It is the Company’s objective to attract and retain
During the year the Directors have separated the roles and composition of the Remuneration and Nomination Committee into distinct functions.
The Nomination Committee now comprises those Non-Executive Directors who are not required to stand for re-election at the forthcoming
Annual General Meeting.
The Remuneration Committee comprises Messrs Grant (Chair), Robinson and Williams. The Remuneration Committee is responsible for
reviewing and making recommendations to the board regarding adjustments to the remuneration packages for Directors and executives on an
annual basis. The Remuneration Committee engages independent consultants, utilises data from independent surveys and reviews other
market information and reports to ensure that remuneration is consistent with current industry practices. The Remuneration Committee also
makes recommendations to the board on the salary package of the Chief Executive Officer. The Chief Executive Officer reports to the
Committee on executive performance and remuneration arrangements.
During the last 12 months the Remuneration Committee engaged PricewaterhouseCoopers to undertake a review of the Company’s incentive
plan. The purpose of the report was to provide the Remuneration Committee with information for consideration. The report did not contain a
recommendation in relation to executive remuneration. The key contents of the report included:
1. A summary of the existing incentive plan;
2. The alignment of the existing incentive plan with the current market and perspectives;
3. Alternate structures for short term and long term incentive plans; and,
4. Succession planning
PricewaterhouseCoopers provided their report directly to the Remuneration Committee to ensure that it remained free from any undue influence
of the key management personnel.
PricewaterhouseCoopers received consideration of $32,000 for the above engagement. Details of other fees paid to PricewaterhouseCoopers
are disclosed on page 21 of this report.
The structure of non-executive Director and senior executive remuneration is separate and distinct.
Non-executive Director remuneration
It is intended that remuneration paid to non-executive Directors reflects the demands and responsibilities of Directors. Non-Executive Directors
fees are reviewed annually after taking into consideration the Company’s performance, market rates and level of responsibility.
Non-executive Directors receive a fixed fee that is paid within an aggregate limit as approved by the shareholders from time to time. The
current maximum aggregate is set at $1,750,000 (2012 - $1,000,000) per annum.
Executive remuneration
The Company aims to ensure that remuneration packages properly reflect the person's duties, experience and responsibilities and are aligned
so that management is rewarded in creating value for shareholders. Remuneration of senior executives is reviewed annually after taking into
consideration the Company’s performance, market rates and level of responsibility.
Executive remuneration may comprise a mix of base remuneration, short term incentives (STIs), long term incentives (LTIs) and retention
payments. The detail of each component is as follows:
Base remuneration
Base remuneration for senior executives is fixed annually by the Remuneration Committee.
It comprises a cash salary, superannuation, and
other non-cash benefits such as a company vehicle. Executives may elect to take a vehicle allowance in lieu of a company vehicle and may
salary sacrifice a portion of their cash salary into superannuation or other benefits.
Short Term Incentives
STIs are designed to motivate and reward senior executives to achieve the short term goals of the Company as set by the board.
14
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ANNUAL REPORT & FINANCIAL STATEMENTS 2013NEW HOPE CORPORATION LIMITED AND CONTROLLED ENTITIES New Hope Corporation Limited and Controlled Entities
Directors Report - 31st July 2013
Remuneration report (continued)
a. Remuneration Policies and Principles (continued)
STIs are not provided for in senior executive employment contracts. The Remuneration Committee sets the maximum STI payable to each
senior executive at the start of the relevant period having due regard to each executives role, responsibility and contribution to achieving the
Company’s goals. STIs are offered at the absolute discretion of the Remuneration Committee.
At the end of each period the Remuneration Committee will award executives a percentage of their maximum allowable STI having regard to
the performance of the executive and the Company during the period.
STIs are paid in the form of a cash bonus, with 50% payable immediately and 50% being deferred for 12 months. Payment of the deferred
component is conditional upon the executive remaining an employee of the company until the vesting date.
Long Term Incentives
LTI are designed to motivate and reward senior executives to achieve the strategic goals set by the board, align shareholder and executive
objectives, and to retain the services of senior executives.
LTIs are not provided for in senior executive employment contracts. The Remuneration Committee sets the maximum value of the LTI
payable to each senior executive at the start of the relevant period having due regard to the each executive's role, responsibility and
contribution to achieving the Company’s strategic goals. LTIs are offered at the absolute discretion of the Remuneration Committee.
At the end of each period the Remuneration Committee will award executives a percentage of their maximum allowable LTI having regard to
the performance of the executive and the Company during the period.
LTIs are paid in the form of Performance Rights at the discretion of the Remuneration Committee. The value of an executive’s LTI is
converted into Performance Rights by reference to the 5 day volume weighted average share price of the company over the 5 days
immediately preceding issue. The Remuneration Committee has the discretion to select alternative equity instruments for the award of LTI's in
the event that Performance Rights do not align to the strategic goals set by the Remuneration Committee of Board.
Performance Rights are issued subject to a service condition. Performance Rights vest in equal annual tranches over the period of the
service condition. Upon satisfaction of the service conditions Performance Rights automatically convert to ordinary shares in the Company.
Retention Payments
Retention payments are not provided for in senior executive employment contracts. The Remuneration Committee may offer Retention
Payments to senior executives during periods of unusual corporate activity where there exists a material risk of increased staff turnover. The
recipients, quantum, timing and delivery of the retention payments are directly linked to the underlying event that has elicited the need for the
retention payment.
b. CEO Remuneration
CEO employment contract
Remuneration and other terms of employment for Mr Neale are governed by an individual employment contract. The agreement is of no fixed
term. The contract outlines the components of remuneration paid to Mr Neale but does not prescribe how remuneration levels are modified
from year to year.
The agreement with the Mr Neale provides for a cash salary, superannuation and a fully maintained motor vehicle. The CEO may elect to
take a vehicle allowance in lieu of a company vehicle and may salary sacrifice a portion of their cash salary into superannuation or other
benefits. The contract provides that Mr Neale is eligible to participate in the Company's STI and LTI programme at the sole discretion of the
Remuneration Committee.
Either party may terminate the agreement by giving the other party two months notice.
The contract provides for the payment of a separation allowance upon retirement or if the contract is terminated by the Company. The
separation allowance is for a sum of $200,000 (indexed annually at CPI from the employment commencement date in 1996).
The Company may terminate the agreement without notice at any time for cause. No payment in lieu of notice, nor any payment in respect of
STI or LTI is payable under the agreement in this circumstance.
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ANNUAL REPORT & FINANCIAL STATEMENTS 2013DIRECTORS REPORT - 31 JULY 2013 New Hope Corporation Limited and Controlled Entities
Directors Report - 31st July 2013
Remuneration report (continued)
b. CEO Remuneration (continued)
Deferred award of outstanding LTI entitlements
At the Company’s Annual General Meeting in November 2011, shareholders approved the issue of Performance Rights to Mr Neale in respect of
outstanding LTI performance payments relating to the 2008, 2009 and 2010 years. The payments had previously been deferred pending
finalisation of the Employee Performance Rights Share Plan which governs the administration of the Performance Rights and subsequent approval
of the issue of the Performance Rights at the Annual General Meeting.
At the Company’s Annual General Meeting in November 2012, shareholders approved the issue of Performance Rights to Mr Neale in respect of
outstanding LTI performance payments relating to the 2011 financial year. The payments had been deferred pending shareholder approval at the
Annual General Meeting.
Upon the satisfaction of a service condition, Performance Rights issued to the CEO will automatically convert to ordinary shares in the company.
However, given the deferrals noted above, the Remuneration Committee elected to align the service condition and vesting dates with the dates that
would have prevailed had the Performance Rights been issued in the ordinary course.
The deferral of the Performance Right issue and re-alignment of vesting conditions has had an effect on the quantum of Share Based Payment
Expense recognised in this year’s remuneration report, and is summarised as follows:
Performance
Period to
which LTI
relates
Date Performance
Rights Issued
Number of
Performance
Rights Issued
Vesting Date in the
Ordinary Course
Amended Vesting
Date
Impact on 2012
Share Based
Payment Expense
Impact on 2013
Share Based
Payment Expense
2008
2008
2008
2008
2009
2009
2009
2009
2010
2010
2010
2010
2011
2011
2011
2012
2012
2012
September 2011
September 2011
September 2011
September 2011
September 2011
September 2011
September 2011
September 2011
September 2011
September 2011
September 2011
September 2011
November 2012
November 2012
November 2012
Pending approval
at the 2013 Annual
General Meeting
30,775
30,775
30,775
30,775
24,601
24,601
24,601
24,601
24,398
24,398
24,398
24,398
36,537
36,537
36,538
52,317
52,317
52,317
1 August 2009
1 August 2010
1 August 2011
1 August 2012
1 August 2010
1 August 2011
1 August 2012
1 August 2013
1 August 2011
1 August 2012
1 August 2013
1 August 2014
1 August 2012
1 August 2013
1 August 2014
1 August 2013
1 August 2014
1 August 2015
1 January 2012
1 January 2012
1 January 2012
No change
1 January 2012
1 January 2012
No change
No change
1 January 2012
No change
No change
No change
1 December 2012
No change
No change
1 December 2013
No change
No change
$
159,107
159,107
159,107
159,107
127,187
127,187
127,187
57,812
126,138
126,138
57,335
37,099
146,635
87,981
54,990
Nil
Nil
Nil
1,712,117
$
-
-
-
-
-
-
-
69,375
-
-
68,803
44,519
73,318
131,972
82,485
140,558
129,746
67,468
808,244
Retention Payment offered in 2012
During the 2012 financial year the company announced that the Board of Directors had received a number of preliminary and incomplete proposals
from third parties in relation to potential change of control transactions. As a result of this interest, the Board decided it was appropriate to
undertake a formal sale process to determine whether a proposal for New Hope was available at a price, and on terms, that were in the best
interests of all shareholders.
In order to prevent the loss of key executive personnel during the offer period the Board offered a retention payment to Mr Neale equating to
approximately 60% of his base remuneration. The terms of the Retention Payment stipulated that payment would trigger at the earliest of:
h
h
h
h
Mr Neale being retrenched before 31 July 2012; or
at the time of the transaction completion date plus 90 days; or
at the time of the Company withdrawing from the formal sale process plus 90 days; or
31 July 2012.
16
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ANNUAL REPORT & FINANCIAL STATEMENTS 2013NEW HOPE CORPORATION LIMITED AND CONTROLLED ENTITIES
New Hope Corporation Limited and Controlled Entities
Directors Report - 31st July 2013
Remuneration report (continued)
b. CEO Remuneration (continued)
CEO Retirement
With the impending retirement of Mr Neale, the Board considered the outstanding contribution Mr Neale has made to the company during his
tenure as Chief Executive Officer and Managing Director, and it was agreed that upon his retirement all outstanding performance rights would
In addition, it was agreed that Mr Neale's STI entitlement for the 2012/13 financial year would be paid in one instalment on or before his
vest.
retirement date.
c.
Executive Remuneration
On 1 March 2012 the company announced that the formal sale process had been concluded. Mr Neale was subsequently paid the Retention
Payment in June 2012, being still employed by the Company 90 days from the conclusion of the sale process.
The Retention Payment to Mr Neale has been classified as a Cash Bonus in the Remuneration Note for 2012 and is aggregated with other cash
bonuses paid in accordance with normal STI entitlements.
Executive employment contracts
The agreements with the senior executives provide for a cash salary, superannuation and a fully maintained motor vehicle. Executives may
elect to take a vehicle allowance in lieu of a company vehicle and may salary sacrifice a portion of their cash salary into superannuation or other
benefits.
Contracts with executives may be terminated by either party giving notice as specified in their contract of employment. The contract with Mr
Denney requires two months notice, the contract with Mr Stephan requires ten weeks notice, and the contract with Mr Busch requires one
months notice
The contracts with Mr Denney and Mr Stephan include provision for a separation payment in the event of their termination as a result of a
takeover or merger of the Company. The allowances are for less than one year’s remuneration.
The Company may terminate the agreements without notice at any time for cause. No payment in lieu of notice, nor any payment in respect of
STI or LTI is payable under the agreement in this circumstance.
Retention Payments offered in 2012
During the 2012 financial year the company announced that the Board of Directors had received a number of preliminary and incomplete
proposals from third parties in relation to potential change of control transactions. As a result of this interest, the Board decided it was
appropriate to undertake a formal sale process to determine whether a proposal for New Hope was available at a price, and on terms, that were
in the best interests of all shareholders.
In order to prevent the loss of key executive personnel during the offer period the Board offered a retention payment to certain senior executives
(including Messrs Denney, Stephan and Busch) equating to approximately 60% of their base remuneration. The terms of the Retention
Payment stipulated that payment would trigger at the earliest of:
h
h
h
h
The executive being retrenched before 31 July 2012; or
at the time of the transaction completion date plus 90 days; or
at the time of the Company withdrawing from the formal sale process plus 90 days; or
31 July 2012.
On 1 March 2012 the company announced that the formal sale process had been concluded. Executives were subsequently paid the Retention
Payment in June 2012, being still employed by the Company 90 days from the conclusion of the sale process.
The Retention Payment to Messrs Denney, Stephan and Busch has been classified as a Cash Bonus in the Remuneration Note for 2012 and is
aggregated with other cash bonuses paid in accordance with normal STI entitlements.
17
17
ANNUAL REPORT & FINANCIAL STATEMENTS 2013DIRECTORS REPORT - 31 JULY 2013 New Hope Corporation Limited and Controlled Entities
Directors Report - 31st July 2013
Remuneration report (continued)
d.
Details of Remuneration (continued)
Details of remuneration of Directors and the key management personnel of New Hope Corporation Limited are set out below. The key
management personnel include the Directors and the following executives:
Mr R.C. Neale, Managing Director and Chief Executive Officer
Mr B.D. Denney, Chief Operations Officer
Mr S.O. Stephan, Chief Financial Officer
Mr M.J. Busch, Financial Controller and Company Secretary
Comparatives are also disclosed for the 2012 year.
Short-term employee benefits
Cash
bonus
$
Cash salary
and fees
$
Non cash
benefits
$
Long-
term
benefits
Post
employment
benefits
Share
based
payments
LSL
$
Super-
annuation
$
Termination
Benefits
$
Rights
$
Total
$
Performance
related
%
2013
Non-Executive Directors
Mr R.D. Millner
Mr P.R. Robinson
Mr D.J. Fairfull
Mr W.H. Grant
Ms S.J. Palmer
Mr I.M. Williams
Executive Directors
Mr R.C. Neale
Key Management Personnel
Mr B.D. Denney
Mr S.O. Stephan
Mr M.J. Busch
293,000
135,000
135,000
150,000
120,000
101,250
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
16,579
12,178
12,178
13,531
10,833
9,141
1,443,559
550,000
44,631
24,074
16,579
611,770
596,942
416,114
191,250
201,375
106,250
22,941
2,873
28,964
-
-
6,981
16,579
16,579
16,579
Total Remuneration - 2013
4,002,635
1,048,875
99,409
31,055
140,756
2012
Non-Executive Directors
Mr R.D. Millner
Mr P.R. Robinson
Mr D.J. Fairfull
Mr D.C. Williamson
Mr W.H. Grant
Executive Directors
Mr R.C. Neale
Key Management Personnel
Mr B.D. Denney
Mr S.O. Stephan
Mr M.J. Busch
276,334
126,667
126,667
151,667
141,667
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
15,833
11,400
11,400
13,650
12,750
1,340,213
1,368,000
47,169
24,074
15,833
568,124
564,801
374,055
450,875
557,000
321,750
18,948
2,398
21,487
-
-
6,747
15,833
15,833
15,833
Total Remuneration - 2012
3,670,195
2,697,625
90,002
30,821
128,365
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
309,579
147,178
147,178
163,531
130,833
110,391
0%
0%
0%
0%
0%
0%
808,244
2,887,087
47%
142,927
192,730
115,469
985,467
1,010,499
690,357
1,259,370
6,582,100
-
-
-
-
-
292,167
138,067
138,067
165,317
154,417
34%
39%
32%
0%
0%
0%
0%
0%
1,712,117
4,507,406
68%
88,331
235,659
115,502
1,142,111
1,375,691
855,374
47%
58%
51%
2,151,609
8,768,617
18
18
ANNUAL REPORT & FINANCIAL STATEMENTS 2013NEW HOPE CORPORATION LIMITED AND CONTROLLED ENTITIES
New Hope Corporation Limited and Controlled Entities
Directors Report - 31st July 2013
Remuneration report (continued)
e.
Information in respect of share based compensation (continued)
Share based compensation – rights
Rights are granted under the New Hope Corporation Limited Employee Performance Share Rights Plan (Rights Plan). Membership of the
Rights Plan is open to those senior employees and those Directors of New Hope Corporation Limited, its subsidiaries and associated bodies
corporate whom the Directors believe have a significant role to play in the continued development of the Group’s activities.
Rights will be granted for no consideration. Rights to be granted in accordance with the Rights Plan will be allotted at the sole discretion of the
Directors of the Company and in accordance with the Group’s reward and retention strategy. Rights will vest and automatically convert to
ordinary shares in the company following the satisfaction of the relevant service conditions. Service conditions applicable to each issue of
Rights are determined by the board at the time of grant.
The assessed fair value at grant date of Rights granted to the individuals is allocated equally over the period from grant date to vesting date and
the amount will be included in the remuneration of the executive. Fair values at grant date are determined by reference to the relevant volume
weighted average price as determined by the Directors.
The terms and conditions of each grant of rights affecting remuneration of key management personnel in the previous, this or future reporting
periods and the associated pricing model inputs are as follows:
Performance Period to
which LTI relates
Grant Date
Vesting Date
Value of a
Right at Grant
Date
2008
2008
2009
2009
2009
2010
2010
2010
2010
2011
2011
2011
2011
2011
2012
2012
2012
2012
2012
2012
2012
January 2012
August 2012
January 2012
August 2012
August 2013
January 2012
August 2012
August 2013
August 2014
August 2012
October 2011
October 2011
October 2011
October 2011
October 2011
October 2011
October 2011
October 2011
October 2011
December 2011
December 2011 December 2012
December 2011
December 2011
December 2011
December 2012
December 2012 December 2013
January 2014
December 2012
August 2014
December 2012
January 2015
December 2012
August 2015
December 2012
August 2016
December 2012
August 2013
August 2014
August 2015
August 2013
$5.17
$5.17
$5.17
$5.17
$5.17
$5.17
$5.17
$5.17
$5.17
$6.02
$6.02
$6.02
$6.02
$6.02
$4.03
$4.03
$4.03
$4.03
$4.03
$4.03
$4.03
Share Rights granted to Directors and key management personnel
Details of Rights over ordinary shares in the Company as at 31 July 2013, provided as remuneration to each Director of New Hope Corporation
Limited and each of the key management personnel of the Group are set out below. Upon satisfaction of the performance conditions each right
will automatically vest and convert into one ordinary share in New Hope Corporation Limited. Further information on the Rights is set out in
note 30 to the financial statements.
19
19
ANNUAL REPORT & FINANCIAL STATEMENTS 2013DIRECTORS REPORT - 31 JULY 2013 New Hope Corporation Limited and Controlled Entities
Directors Report - 31st July 2013
Remuneration report (continued)
e.
Information in respect of share based compensation (continued)
Share Rights granted to Directors and key management personnel (continued)
Number of rights granted
during the year
Number of rights vested
during the year
Number of ordinary shares issued
on the vesting of rights during the
year
2013
2012
2013
2012
2013
2012
156,951
428,708
116,311
165,925
116,311
165,925
44,843
44,843
33,632
32,040
73,888
36,100
8,010
18,472
9,025
-
10,040
5,020
8,010
18,472
9,025
-
10,040
5,020
Directors
Mr R.C. Neale
Key Management Personnel
Mr B.D. Denney
Mr S.O. Stephan
Mr M.J. Busch
No Rights have been issued to R.D. Millner, P.R. Robinson, D.J. Fairfull, W.H. Grant, S.J. Palmer, or I.M. Williams.
There were 209,378 rights issued over ordinary shares of New Hope Corporation Limited at the date of this report.
f.
Additional information
Other information relating to equity based compensation
A
Remuneration
consisting of
equity based
compensation
28%
15%
19%
17%
B
Value at
grant date
$
C
Value at
exercise date
$
D
Value at
lapse date
$
E
Total of
columns B-D
$
2,942,103
373,598
591,387
335,791
632,484
48,220
102,667
50,064
-
-
-
-
3,574,587
421,818
694,054
385,855
Name
Mr R.C. Neale
Mr B.D. Denney
Mr S.O. Stephan
Mr M.J. Busch
A = The percentage of the value of remuneration consisting of rights, based on the value of rights expensed during the current year.
B = The value at grant date calculated in accordance with AASB2 Share Based Payment of rights granted during the year as part of
remuneration.
C = The value at exercise date of the rights that were granted as part of remuneration and were exercised during the year, being the intrinsic
value of the rights at that date.
D = The value at lapse date of the rights that were granted as part of remuneration and that lapsed during the year.
Consequences of performance on shareholder wealth
The Company's performance is not only impacted by market factors, but also by employee performance. The financial performance for the last
five years is shown below.
Net profit attributable to shareholders (A$000's)
Profit after tax from continuing operations (A$000's)
Dividends paid during the year (cents / share)
Share price as at 31 July ($ / share)
Shareholders funds (A$000's)
Year ended 31 July
2013
74,129
74,128
31.00
3.76
2,016,456
2012
167,126
167,125
26.00
4.07
2,252,916
2011
503,234
503,099
23.75
5.37
2,367,383
2010
183,832
183,832
82.25
4.71
2,339,525
2009
1,950,392
1,950,392
16.25
5.34
2,748,498
20
20
ANNUAL REPORT & FINANCIAL STATEMENTS 2013NEW HOPE CORPORATION LIMITED AND CONTROLLED ENTITIES
DIRECTORS REPORT - 31 JULY 2013
New Hope Corporation Limited and Controlled Entities
Directors Report - 31st July 2013
Shares issued on the vesting of rights
Since the end of the financial year 151,873 rights have been granted and converted to ordinary shares in the company.
Loans to directors and executives
There were no loans to directors and executives granted during the reporting period, nor were there any outstanding loans as at balance date.
Non-audit services
The Company may decide to employ the auditor on assignments additional to their statutory audit duties where the auditor's expertise and
experience with the Company are important.
Details of the amounts paid or payable to the auditor (PricewaterhouseCoopers) for non-audit services provided during the year are set out below.
The Board of Directors has considered the position, and in accordance with the advice received from the audit committee, is satisfied that the
provision of the non-audit services is compatible with the general standard of independence for auditors imposed by the Corporations Act 2001 .
The Directors are satisfied that the provision of non-audit services by the auditor, as set out below, did not compromise the auditor independence
requirements of the Corporations Act 2001 for the following reasons:
h
h
the types of non-audit services have been reviewed by the audit committee to ensure they do not impact the impartiality and objectivity of the
auditor;
none of the services undermine the general principles relating to auditor independence as set out in APES 110 Code of Ethics for Professional
Accountants .
During the year the following fees were paid or payable for services provided by the auditor of the parent entity, its related practices and non-
related audit firms (refer note 32):
Audit Services
PricewaterhouseCoopers Australian firm for audit and review of financial reports and
other audit work under the Corporations Act 2001
Non PricewaterhouseCoopers audit firms for the audit or review of financial reports of
any entity in the Group
Total remuneration for audit services
Non-audit services
PricewaterhouseCoopers Australian firm:
Transaction tax & advisory services
General advisory services
Tax compliance services
Tax compliance services - MRRT
Tax compliance services - PRRT
Research and development compliance services
Non PricewaterhouseCoopers firms:
Taxation services
Total remuneration for non-audit services
Total auditors remuneration
Consolidated
2013
2012
355,629
279,232
-
-
355,629
279,232
421,090
63,397
160,752
192,670
43,795
270,348
908,441
266,971
217,272
419,498
-
282,984
-
-
1,152,052
2,095,166
1,507,681
2,374,398
Auditor's independence declaration
A copy of the auditor's independence declaration as required under section 307C of the Corporations Act 2001 is set out on page 23.
Rounding of amounts
The Company is of a kind referred to in Class Order 98/100, issued by the Australian Securities and Investments Commission, relating to the
"rounding off" of amounts in the Directors' report. Amounts in the Directors' report have been rounded off in accordance with that Class Order to
the nearest thousand dollars, or in certain cases, to the nearest dollar.
21
21
ANNUAL REPORT & FINANCIAL STATEMENTS 2013
DIRECTORS REPORT - 31 JULY 2013
New Hope Corporation Limited and Controlled Entities
Directors Report - 31st July 2013
Meetings of Directors
The following table sets out the number of meetings of the Company's Directors held during the year ended 31 July 2013 and the number of
meetings attended by each Director:
Mr R.D. Millner
Mr P.R. Robinson
Mr D.J. Fairfull
Mr W.H. Grant
Ms S.J. Palmer
Mr I.M. Williams
Mr R.C. Neale
Full meetings
of Directors
Held
14
14
14
14
11
11
14
Attended
14
14
14
14
11
10
14
Audit Committee
Remuneration Committee
Held
-
-
2
2
1
-
-
Attended
-
-
2
1
1
-
-
Held
-
4
2
4
-
2
-
Attended
-
4
2
4
-
2
-
Signed at Sydney this 16th day of September 2013 in accordance with a resolution of Directors.
R.D. Millner
Director
S.J. Palmer
Director
22
22
ANNUAL REPORT & FINANCIAL STATEMENTS 2013 AUDITOR’S INDEPENDENCE DECLARATION
Auditor's Independence Declaration
As lead auditor for the audit of New Hope Corporation Limited for the year ended 31 July 2013, I declare
that, to the best of my knowledge and belief, there have been:
(a)
no contraventions of the auditor independence requirements of the Corporations Act 2001 in relation
to the audit; and
(b)
no contraventions of any applicable code of professional conduct in relation to the audit.
This declaration is in respect of New Hope Corporation Limited and the entities it controlled during the
period.
Simon Neill
Partner
PricewaterhouseCoopers
Sydney
16 September 2013
PricewaterhouseCoopers, ABN 52 780 433 757
Riverside Centre, 123 Eagle Street, BRISBANE QLD 4000, GPO Box 150, BRISBANE QLD 4001
T: +61 7 3257 5000, F: +61 7 3257 5999, www.pwc.com.au
23
23
ANNUAL REPORT & FINANCIAL STATEMENTS 2013
CORPORATE GOVERNANCE
STATEMENT
New Hope Corporation Limited
Corporate Governance Statement
This Corporate Governance Statement has been summarised into sections in line with the eight core corporate governance principles as specified
in the Australian Securities Exchange (ASX) Corporate Governance Council's revised Corporate Governance Principles and Recommendations.
Foundations for management and oversight
The Board is ultimately responsible for the operations, management and performance of the Company.
In discharging this responsibility, the Board
delegates to senior management, whose role is to manage the Company in accordance with the directions and policies set by the Board. The
Board monitors the activities of senior management in the performance of their delegated duties.
It is the responsibility of the Board to determine policies, practices, management and the operations of the Company and to ensure that the
Company is compliant with statutory, legal and other regulatory obligations. Details of these policies can be accessed through the Company
Secretary.
Responsibilities of the Board include the following:
h
h
Determining corporate strategies, policies and guidelines for the successful performance of the Company in the present and the future;
Monitoring the Company's overall performance and financial results, adopting annual budgets and approving New Hope Corporation Limited's
financial statements;
Accountability to shareholders;
Ensuring that risk management procedures and compliance and control systems are in place and operating effectively;
Monitoring the performance and conduct of senior management and ensuring adequate succession plans are in place; and
Ensuring the Company continually builds an honest and ethical culture.
h
h
h
h
The performance of non-executive Directors is reviewed by the Remuneration and Nomination Committee with any unsatisfactory performance
referred to the remainder of the Board. This review was undertaken during the year.
The efficiency, effectiveness and operations of the Board are continuously subjected to informal monitoring by the Remuneration and Nomination
Committee and the Board as a whole.
The performance of senior management was reviewed by the Remuneration and Nomination Committee during the year in accordance with its
established procedures.
Board structure
At the date of this report the Board consists of six non-executive Directors and one executive Director. Details of the Directors of the Company,
their experience, expertise, qualifications, and attendance at meetings are set out in the Directors' Report.
Key elements of the Board composition include:
h
h
h
h
h
In accordance with the Company's Constitution, the Board should comprise no less than three or more than ten Directors.
The Chairman of the Board is a non-executive Director.
The non-executive Chairman and Chief Executive Officer roles are separate.
The Board comprises a mix of Directors from different backgrounds with complementary skills and experience.
The size of the Board and membership represents an appropriate balance between Directors with experience and knowledge of the Group and
Directors with an external perspective.
The Company has not strictly complied with ASX Best Practice Recommendations in that not all of the non-executive Directors are independent.
Mr Robert Millner (Chairman of Directors), Mr Peter Robinson and Mr David Fairfull are Directors of New Hope Corporation Limited's major
shareholder, Washington H. Soul Pattinson and Company Limited. Ms Sue Palmer, Mr Ian Williams and Mr William Grant are considered
independent.
Whilst all the non-executive Directors cannot be considered "independent" in accordance with the ASX Best Practice Recommendations, all
Directors are expected to bring their independent views and judgement to the Board and, in accordance with the Corporations Act 2001, must
inform the Board if they have any interest that could conflict with those of the Company. Where the Board considers that a significant conflict
exists, it may exercise its discretion to determine whether the Director concerned may be present at the meeting while the item is considered. Also,
the Board considers that due to the extensive experience and knowledge that these Directors have of the business, it would be contrary to
shareholders' best interests if the Directors were precluded from holding the position of Director on these grounds.
24
24
ANNUAL REPORT & FINANCIAL STATEMENTS 2013NEW HOPE CORPORATION LIMITED AND CONTROLLED ENTITIES New Hope Corporation Limited
Corporate Governance Statement
In the discharge of their duties and responsibilities, the Directors individually (as well as the Board) have the right to seek independent
professional advice at the Company's expense. However, for advice to individual Directors, prior approval of the Chairman is required, which is
not to be unreasonably withheld.
The Remuneration and Nomination Committee consists of non-executive Directors who periodically review the membership and performance of
the Board having regard to the Company's particular needs, both present and future. These periodic reviews are conducted at least annually or
more frequently if deemed appropriate.
The Board sets goals and objectives for the Board, its Committees and Directors. Performance is measured against these goals and objectives in
such manner deemed appropriate by the Board. The performance of the Board and its Committees was reviewed during the year in accordance
with established procedures.
Directors are initially appointed by the full Board, subject to election by shareholders at the next Annual General Meeting. Under the Constitution,
one third of the Board (excluding any Managing Director) retire from office each year and if eligible submit themselves for re-election by
shareholders at the Annual General Meeting.
Ethical and responsible decision making
The Company has an established Code of Conduct dealing with matters of integrity and ethical standards. The code is designed to comply with
the legal and other obligations of legitimate stakeholders and other interested parties and to foster a culture of compliance. All Directors,
executives and employees are expected to abide by the code of conduct and specific policies in place, and to bring to the attention of senior
management or the Board instances of unethical practices. The code and policies cover:
h
h
h
h
h
h
h
h
Professional conduct;
Ethical standards;
Standards of workplace behaviour and equal opportunity;
Relationships with customers, suppliers and competitors;
Confidentiality and continuous disclosure;
Anti-discrimination and harassment;
Trading in Company securities; and
The environment.
The Company's diversity policy is contained in the Code of Conduct, the Equal Employment Opportunity Policy, and the Recruitment and Selection
Policy. Through these principles based documents the Company aims to foster a workplace where employees feel that they are a valued member
of the organisation; that they are treated fairly and that inappropriate behaviour does not take place. The company is also committed to ensuring
that employees and all other individuals involved in its operations are provided with equal opportunity in all aspects of recruitment, selection and
employment.
It is the Company’s policy that when recruiting and selecting staff that the best person for the position is chosen in each case. This is achieved by
basing selection decisions on the merit principle whereby individuals shall be selected based on their capability to meet the requirements of the
position and who have the right position related attributes. Unlawful discrimination of either a positive or negative bias (including gender) is not
tolerated.
The Company is an equal opportunity employer and is committed to ensuring that all applicants for selection (employees, Officers and Directors)
are not unlawfully discriminated against. The Company seeks to attract and retain employees across a broad experience base relevant to the
individuals to reach their full potential, whilst
Company. The Company aims to remunerate people fairly and provide opportunities for all
understanding the need to be flexible to each individual’s personal circumstances.
25
25
ANNUAL REPORT & FINANCIAL STATEMENTS 2013CORPORATE GOVERNANCE STATEMENT New Hope Corporation Limited
Corporate Governance Statement
The Company believes that the most appropriate measurable objectives in addressing gender diversity will deliver outcomes that are aligned to
the principles outlined above. The following table outlines the Company’s measurable objectives in achieving diversity.
Measurable Objective
Progress Achieved
Develop a culture that embraces diversity that
is supported by corporate policy.
Policies are in place and readily available to all employees at all times. Policies are formally
communicated to employees during their induction and periodic formal refresher training is
also conducted.
The Company’s recruitment processes and
documents ensure the Company appeals to,
and targets, a diverse pool of potential
employees.
Formal recruitment procedures are in place that necessitates the involvement of the Human
Resources Department in all stages of the recruitment process which ensures that corporate
policy is adhered to and that the recruitment and selection process is free from unlawful
bias.
Ensure policies, procedures and guidelines
support the delivery of a flexible, tolerant and
accommodating work environment.
Through various policies and guidelines (Education Assistance, Training and Development,
Leave, Parental Leave, Salary Packaging, Flexibility and Wellbeing) the Company has
acknowledged the need for, and provides opportunities for employees to achieve, flexibility
in their work environment.
to
pay
A commitment
equity whereby
remuneration is set based on the market based
data and each individual’s qualifications and
experience.
This includes flexible working arrangements for new parents returning to work in the form of:
- the ability to work from home
- the option to have non-standard working hours
- the ability to work part-time for a period before returning to full time work
Remuneration is initially set (and reviewed at least annually) by reference to independent
market data which accounts for both the skills required for the role,
the industry, and
employment location. This is further linked to each employee’s qualifications and experience.
Procedures dictate that the Human Resources Department are involved in all steps of the
remuneration setting process,
including the final executive review and annual “norming”
process which ensures that all employees are remunerated fairly, reasonably and without fear
of undue bias.
The following table shows the proportion of women employed by the Company.
Role
Directors
Senior executives
Total employees
Number of women
Number of men
Total employees
Female percentage
1
2
75
6
12
523
7
14
598
14%
14%
13%
Integrity in financial reporting
New Hope Corporation Limited has an established Audit Committee, which has its own charter outlining the committee's function, composition,
authority, responsibilities and reporting. The current members of the Audit Committee are non-executive Directors Ms S.J. Palmer (Chairperson),
Mr W.H. Grant and Mr D.J. Fairfull. The Company's non-executive Chairman Mr R.D. Millner is not a member of the Audit Committee. The non-
executive Chairman and other Directors, Chief Executive Officer, Chief Financial Officer, Company Secretary and the internal auditor may attend
Audit Committee meetings by invitation.
On 7 September 2012 the Company announced that Ms Sue Palmer would assume the role of non-executive Director and Audit Committee
Chairperson with effect from 1 November 2012. Ms Palmer’s appointment follows the sad passing of Mr David Williamson (independent non-
executive Director and Audit Committee Chairperson) in July 2012.
26
26
ANNUAL REPORT & FINANCIAL STATEMENTS 2013NEW HOPE CORPORATION LIMITED AND CONTROLLED ENTITIES CORPORATE GOVERNANCE STATEMENT
New Hope Corporation Limited
Corporate Governance Statement
During the period from July 2012 to 1 November 2012 the Company notes that it has not complied with the best practice recommendations in that
the Audit Committee:
h
h
h
Did not consist of a majority of independent Directors;
Did not have at least three members; and
The acting Chairperson was not an independent Director.
Despite these non-compliances, the Company believes that the integrity of the Audit Committee and the governance of the Company have been
fully maintained at all times.
Further details of the Directors' qualifications, terms of office, and attendance at audit committee meetings are set out in the Directors' report on
pages 10 to 13 and 22.
The external auditors (PricewaterhouseCoopers) are requested by the Audit Committee to attend the appropriate meetings to report on the results
of their review and audit for the half year and full year respectively.
The external and internal auditors both have direct access to the Audit Committee if required.
The function of the Audit Committee is to assist the Board in fulfilling its statutory and fiduciary responsibilities relating to:
h
h
The external reporting of financial information, including the selection and application of accounting policies;
The independence and effectiveness of the external auditors. The Audit Committee regularly evaluates the performance of its external auditors,
considers the appropriateness of the external audit engagement partners including their rotation, and considers the need and timing for putting
the external audit role out to tender;
The effectiveness of internal control processes and management information systems;
Compliance with the Corporations Act, ASX Listing Rules and any other applicable requirements; and
The application and adequacy of risk management systems within the Company.
h
h
h
The Chief Executive Officer and Chief Financial Officer are required to state in writing to the Board, by submission to the Audit Committee, that the
Company's financial statements present a true and fair view, in all material respects, of the Company's financial position and operational results
and that they are in accordance with relevant accounting standards.
Timely and balanced disclosure
The Company has a Continuous Disclosure Policy to ensure compliance with the ASX Listing Rules and Corporations Act continuous disclosure
requirements. The policy requires timely disclosure through the ASX company announcement platform of information concerning the Company
that a reasonable person would expect to have a material effect on the price or value of the Company's securities. The Board is responsible for
determining disclosure obligations and the Company Secretary is the nominated Continuous Disclosure Officer for the Company.
Respect the rights of shareholders
The Board is committed to ensuring that shareholders, the stock market and other interested parties are fully informed of all material matters
affecting the Company. The dissemination of information is mainly achieved as follows:
h
h
h
An annual report is available to be distributed to shareholders in October each year and is placed on the Company's website;
Where possible, significant information is posted on the Company's internet website as soon as it is disclosed to the market; and
The external auditor is requested to attend the Annual General Meeting to answer shareholders' questions about the conduct of their audit and
the content of the auditor's report.
Risk recognition and management
The Company is committed to identifying and managing areas of significant business risk to protect shareholders, employees, earnings and the
environment. The framework to achieve this objective is promulgated in the Company's Risk Management policy. The Risk Management and
Internal Audit function within the Company is responsible for the oversight and monitoring of performance of the policy. Arrangements in place, as
set out in the company's Risk Management policy, include:
h
h
h
Regular detailed financial, budgetary and management reporting;
Procedures to manage financial, operational, strategic, market, and regulatory risks;
Established organisational structures, procedures and policies dealing with the areas of health and safety, environmental issues, industrial
relations and legal and regulatory matters;
Comprehensive insurance and risk management programs;
Procedures requiring Board approval for all borrowings and capital expenditure beyond minor levels; and
Where applicable, the utilisation of specialised staff and external advisors.
h
h
h
27
27
ANNUAL REPORT & FINANCIAL STATEMENTS 2013 CORPORATE GOVERNANCE STATEMENT
CORPORATE GOVERNANCE STATEMENT
New Hope Corporation Limited
Corporate Governance Statement
The Chief Executive Officer and Chief Financial Officer are required to state in writing to the Board, by submission to the audit committee, that the
risk management and internal control compliance systems implemented by the Board are operating efficiently and effectively and that the directors
declaration given under section 259A Corporations Act 2001 (Cth) is founded on a sound system of risk management and control. The required
statement has been received from the Chief Executive Officer and Chief Financial Officer relative to the year of income.
Remunerate fairly and responsibly
The Remuneration and Nomination Committee consists of non-executive Directors who are responsible for reviewing and proposing remuneration
and other terms of employment for non-executive Directors. Details of the attendance at meetings of the Remuneration and Nomination Committee
is included on page 22 of the Directors' report.
Non-executive Directors' fees are reviewed annually after taking into consideration the Company's performance, market rates and level of
responsibility. The aggregate amount of fees which may be paid to non-executive Directors is subject to the approval of shareholders at the Annual
General Meeting and is currently set at $1,750,000 (2012 - $1,000,000) per annum.
Remuneration of senior executives is reviewed annually by the Remuneration and Nomination Committee, taking into consideration the Company's
performance, market rates and levels of responsibility.
Further information of Directors' and executives' remuneration is set out in the Directors Report and in the Notes to the Financial Statements.
The Company’s Share Trading Policy has been disclosed to the market via the ASX Company Announcement Platform. The policy provides that:
h
Trading is prohibited when Directors and employees are in possession of price sensitive information which is not available to the public;
h
Trading is prohibited during the period of four weeks prior to the announcement of the Company’s half year and full year results;
h
The Company has established the following share trading windows each for a period of six weeks commencing from:
o The release of the Company's annual result to the Australian Securities Exchange;
o The release of the Company's half yearly result to the Australian Securities Exchange;
o The date of the Annual General Meeting; and
o The release of a prospectus;
h
At times other than those referred to above, Directors and employees may trade after seeking approval from the Chairman of the Board, or in
his absence, the Managing Director of New Hope Corporation Limited.
New Hope Corporation Limited is a company limited by shares on the Australian Securities Exchange (ASX). The Company is incorporated
and domiciled in Australia, and its registered office and principal place of business is:
New Hope Corporation Limited
Annual Financial Report
for the year ended 31st July 2013
Contents
Financial Report
Consolidated Statement of Comprehensive Income
Consolidated Balance Sheet
Consolidated Statement of Changes in Equity
Consolidated Cash Flow Statement
Notes to the financial statements
Directors' declaration
Independent audit report to the members
Page
30
31
32
33
34
78
79
The financial report is the consolidated financial statements of the consolidated entity consisting of New Hope Corporation Limited and its
subsidiaries. The financial report is presented in the Australian currency.
New Hope Corporation Limited
3/22 Magnolia Drive
BROOKWATER QLD 4300
A description of the nature of the consolidated entity's operations and its principal activities is included in the Directors' report on pages 2 to
9, which is not part of this financial report.
The financial report was authorised for issue by the Directors on 16 September 2013. The Company has the power to amend and reissue
the financial report.
Through the use of the internet, the Company has ensured that corporate reporting is timely, complete and available globally at minimum
cost to the Company. All financial reports and other announcements to the ASX are available on the Investor Relations pages of the
website: www.newhopegroup.com.au.
28
28
29
ANNUAL REPORT & FINANCIAL STATEMENTS 2013 ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED 31 JULY 2013
New Hope Corporation Limited
Annual Financial Report
ANNUAL FINANCIAL REPORT
for the year ended 31st July 2013
FOR THE YEAR ENDED 31 JULY 2013
Contents
Financial Report
Consolidated Statement of Comprehensive Income
Consolidated Balance Sheet
Consolidated Statement of Changes in Equity
Consolidated Cash Flow Statement
Notes to the financial statements
Directors' declaration
Independent audit report to the members
Page
30
31
32
33
34
78
79
The financial report is the consolidated financial statements of the consolidated entity consisting of New Hope Corporation Limited and its
subsidiaries. The financial report is presented in the Australian currency.
New Hope Corporation Limited is a company limited by shares on the Australian Securities Exchange (ASX). The Company is incorporated
and domiciled in Australia, and its registered office and principal place of business is:
New Hope Corporation Limited
3/22 Magnolia Drive
BROOKWATER QLD 4300
A description of the nature of the consolidated entity's operations and its principal activities is included in the Directors' report on pages 2 to
9, which is not part of this financial report.
The financial report was authorised for issue by the Directors on 16 September 2013. The Company has the power to amend and reissue
the financial report.
Through the use of the internet, the Company has ensured that corporate reporting is timely, complete and available globally at minimum
cost to the Company. All financial reports and other announcements to the ASX are available on the Investor Relations pages of the
website: www.newhopegroup.com.au.
29
29
ANNUAL REPORT & FINANCIAL STATEMENTS 2013 STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 JULY 2013
New Hope Corporation Limited and Controlled Entities
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 JULY 2013
Consolidated Statement of Comprehensive Income
for the year ended 31st July 2013
Revenue from continuing operations
Other income
Expenses
Cost of sales
Marketing and transportation
Administration
Other expenses
Impairment of assets
Share of net profit / (loss) of associate
Profit before income tax
Petroleum resources rent tax expense
Income tax expense
Profit after income tax for the year
Profit attributable to:
New Hope Shareholders
Non-controlling interests
Other comprehensive income
Items that may be reclassified to profit and loss:
Changes to the fair value of cash flow hedges, net of tax
Transfer to the P&L - Cashflow Hedges, net of tax
Changes to the fair value of available for sale financial assets, net of tax
Other comprehensive income for the year, net of tax
Total comprehensive income for the year
Total comprehensive income attributable to:
New Hope Shareholders
Non-controlling interests
Notes
5
6
7
38
8
8
27
27
27
2013
$000
2012
$000
652,097
4,328
656,425
(319,933)
(139,327)
(16,213)
(7,205)
(51,377)
(386)
121,984
1,509
(49,365)
74,128
767,525
149
767,674
(355,901)
(140,932)
(26,101)
(6,083)
(39,191)
(647)
198,819
-
(31,694)
167,125
74,129
(1)
74,128
167,126
(1)
167,125
(39,824)
(10,431)
(4,729)
(54,984)
19,144
19,145
(1)
19,144
10,708
(17,934)
(11,242)
(18,468)
148,657
148,658
(1)
148,657
Earnings per share for profit attributed to ordinary equity holders of the Company
Basic earnings per share (cents / share)
Diluted earnings per share (cents / share)
34
34
8.9
8.9
20.1
20.1
The above statement of comprehensive income should be read in conjunction with the accompanying notes.
30
30
ANNUAL REPORT & FINANCIAL STATEMENTS 2013
BALANCE SHEET AS AT 31 JULY 2013
New Hope Corporation Limited and Controlled Entities
BALANCE SHEET
AS AT 31 JULY 2013
Consolidated Balance Sheet
as at 31st July 2013
Current assets
Cash and cash equivalents
Receivables
Inventories
Held to maturity investments
Derivative financial instruments
Other
Total current assets
Non-current assets
Receivables
Investments accounted for using the equity method
Available for sale financial assets
Derivative financial instruments
Property, plant and equipment
Exploration and evaluation assets
Intangible assets
Total non-current assets
Total assets
Current liabilities
Accounts payable
Current tax liabilities
Derivative financial instruments
Provisions
Total current liabilities
Non-current liabilities
Deferred tax liabilities
Provisions
Derivative financial instruments
Total non-current liabilities
Total liabilities
Net assets
Equity
Contributed equity
Reserves
Retained profits
Capital and reserves attributable to New Hope Shareholders
Non-controlling interests
Total equity
Notes
2013
$000
2012
$000
10
11
12
13
35
14
15
38
16
35
17
18
20
21
35
24
23
25
35
26
27(a)
27(b)
21,564
57,905
58,673
1,229,608
-
614
1,368,364
2,775
-
30,215
-
764,037
77,210
25,963
900,200
2,268,564
46,758
18,924
29,721
32,148
127,551
67,733
45,117
11,707
124,557
252,108
2,016,456
93,342
(3,988)
1,925,767
2,015,121
1,335
2,016,456
70,990
17,124
59,560
1,446,975
20,393
299
1,615,341
9,208
32,530
73,140
9,971
659,202
39,228
20,799
844,078
2,459,419
40,460
18,490
-
28,845
87,795
82,917
35,791
-
118,708
206,503
2,252,916
92,509
50,570
2,109,104
2,252,183
733
2,252,916
The above balance sheet should be read in conjunction with the accompanying notes.
31
31
ANNUAL REPORT & FINANCIAL STATEMENTS 2013
STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 JULY 2013
New Hope Corporation Limited and Controlled Entities
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JULY 2013
Consolidated Statement of Changes in Equity
for the year ended 31st July 2013
Contributed
Equity
Notes
$000
Reserves
$000
Retained
Earnings
$000
Non-controlling
Interests
$000
Total
$000
Balance at 1 August 2011
91,500
73,851
2,157,849
44,183
2,367,383
Profit for the year
Other comprehensive income
Total comprehensive income for the year
-
-
-
-
(18,468)
(18,468)
167,126
-
167,126
(1)
-
(1)
167,125
(18,468)
148,657
Transactions with owners in their capacity as owners
Contributions of equity, net of transaction costs
Dividends provided for or paid
Special dividend paid
Transfer from share based payment reserve to equity
Net movement in share based payment reserve
Premium paid on acquisition of non-controlling interest
Acquisition of non-controlling interests
Non controlling interests on acquisition of subsidiary
Balance at 31 July 2012
Profit for the year
Other comprehensive income
Total comprehensive income for the year
Transactions with owners in their capacity as owners
Contributions of equity, net of transaction costs
Dividends provided for or paid
Special dividend paid
Transfer from share based payment reserve to equity
Net movement in share based payment reserve
Premium paid on acquisition of non-controlling interest
Acquisition of non-controlling interests
Share of non-controlling interests equity contributions
26
9
9
27
27
27
37
26
9
9
27
27
27
37
-
-
-
1,009
-
-
-
1,009
-
-
-
(1,009)
2,225
(6,029)
-
-
(4,813)
-
(91,337)
(124,534)
-
-
-
-
-
(215,871)
-
-
-
-
-
-
(44,177)
728
(43,449)
-
(91,337)
(124,534)
-
2,225
(6,029)
(44,177)
728
(263,124)
92,509
50,570
2,109,104
733
2,252,916
-
-
-
-
-
-
833
-
-
-
-
833
-
(54,984)
(54,984)
74,129
-
74,129
-
-
-
(833)
1,259
-
-
-
426
-
(91,360)
(166,106)
-
-
-
-
-
(257,466)
(1)
-
(1)
-
-
-
-
-
-
-
603
603
74,128
(54,984)
19,144
-
(91,360)
(166,106)
-
1,259
-
-
603
(255,604)
Balance at 31 July 2013
93,342
(3,988)
1,925,767
1,335
2,016,456
The above statement of changes in equity should be read in conjunction with the accompanying notes.
32
32
ANNUAL REPORT & FINANCIAL STATEMENTS 2013
CASH FLOW STATEMENT FOR THE YEAR ENDED 31 JULY 2013
CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 JULY 2013
Consolidated Cash Flow Statement
for the year ended 31st July 2013
New Hope Corporation Limited and Controlled Entities
Cash flows from operating activities
Receipts from customers inclusive of GST
Payments to suppliers and employees inclusive of GST
Income taxes paid
Net cash inflow / (outflow) from operating activities
Cash flows from investing activities
Payments for property, plant and equipment
Payments for exploration and evaluation activities
Payments for purchase of subsidiary, net of cash acquired
Payments for available for sale financial assets
Payments for investments in associates
Refunds of / (payments for) security and bond guarantees
Proceeds from / (payments for) held to maturity investments
Proceeds from sale of property, plant and equipment
Proceeds from sale of non-current assets
Interest received on held to maturity investments
Net cash inflow / (outflow) from investing activities
Cash flows from financing activities
Joint venture partner contributions
Payments for purchase of non-controlling interest, net of cash acquired
Dividends paid
Net cash inflow / (outflow) from financing activities
Net increase / (decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of the financial year
Effects of exchange rate changes on cash and cash equivalents
Cash and cash equivalents at the end of the financial year
Notes
2013
$000
2012
$000
560,422
(425,439)
134,983
(42,345)
92,638
(106,584)
(21,174)
(44,260)
-
(731)
(55)
216,901
936
5,813
61,060
111,906
601
-
(257,466)
(256,865)
(52,321)
70,990
2,895
21,564
718,050
(466,509)
251,541
(208,516)
43,025
(39,045)
(31,143)
-
(5,305)
(2,008)
864
137,486
58,748
-
101,741
221,338
1,736
(50,207)
(215,871)
(264,342)
21
75,149
(4,180)
70,990
33
10
The above cash flow statement should be read in conjunction with the accompanying notes.
33
33
ANNUAL REPORT & FINANCIAL STATEMENTS 2013
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2013
NOTES TO THE FINANCIAL STATEMENTS
Notes to the financial statements
FOR THE YEAR ENDED 31 JULY 2013
for the year ended 31st July 2013
New Hope Corporation Limited and Controlled Entities
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The principal accounting policies adopted in the preparation of these consolidated financial statements are set out below. These policies have
been consistently applied to all the years presented, unless otherwise stated. The financial report covers New Hope Corporation Limited and its
subsidiaries as the consolidated entity.
a.
Basis of preparation of accounts
This general purpose financial
pronouncements of the Australian Accounting Standards Board, Australian Accounting Interpretations and the Corporations Act 2001.
report has been prepared in accordance with Australian Accounting Standards, other authoritative
The accounting policies adopted are consistent with those of the previous financial year and corresponding interim reporting period. Effective
from 1 August 2012 major work carried out on mining plant and machinery has been capitalised. This has resulted in $21,625,000 being
capitalised in the balance sheet and amortised over its useful life. There has been no material impact on existing assets.
(i) Compliance with International Financial Reporting Standards (IFRS)
The consolidated financial statements of the New Hope Corporation Limited Group also comply with International Financial Reporting Standards
(IFRS) as issued by the International Accounting Standards Board (IASB).
(ii) Historical cost convention
These financial statements have been prepared under the historical cost convention, as modified by the revaluation of available for sale
financial assets and derivative instruments carried at fair value.
(iii) Critical accounting estimates
The preparation of financial statements requires the use of certain critical accounting estimates.
It also requires management to exercise its
judgment in the process of applying the Group's accounting policies. The areas involving a higher degree of judgement or complexity, or areas
where assumptions and estimates are significant to the financial statements, are disclosed in note 3.
b. Principles of consolidation
(i) Subsidiaries
The consolidated financial statements incorporate the assets and liabilities of all subsidiaries of New Hope Corporation Limited ("Company" or
"parent entity") as at 31st July 2013 and the results of all subsidiaries for the year then ended. New Hope Corporation Limited and its
subsidiaries together are referred to in this financial report as the Group or the consolidated entity.
Subsidiaries are all those entities (including special purpose entities) over which the Group has the power to govern the financial and operating
policies, generally accompanying a shareholding of more than one-half of the voting rights. The existence and effect of potential voting rights
that are currently exercisable or convertible are considered when assessing whether the Group controls another entity.
Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are de-consolidated from the date that
control ceases. The acquisition method of accounting is used to account for the acquisition of subsidiaries by the Group (note 1(h)).
Intercompany transactions, balances and unrealised gains on transactions between Group companies are eliminated. Unrealised losses are
also eliminated unless the transaction provides evidence of the impairment of the asset transferred. Accounting policies of subsidiaries have
been changed where necessary to ensure consistency with the policies adopted by the Group.
Non-controlling interests in the results and equity of subsidiaries are shown separately in the consolidated income statement, statement of
comprehensive income, statement of changes in equity and balance sheet respectively.
(ii) Associates
Associates are all entities over which the group has significant influence but not control or joint control, generally accompanying a shareholding
of between 20% and 50% of the voting rights.
Investments in associates are accounted for using the equity method of accounting, after initially
being recognised at cost. The Group's investment in associates includes goodwill (net of any accumulated impairment loss) identified on
acquisition (refer to note 38).
The Group's share of its associates' post-acquisition profits or losses is recognised in profit or loss, and its share of post-acquisition other
comprehensive income is recognised in other comprehensive income. The cumulative post-acquisition movements are adjusted against the
carrying amount of the investment. Dividends receivable from associates are recognised as reduction in the carrying amount of the investment.
34
34
ANNUAL REPORT & FINANCIAL STATEMENTS 2013 New Hope Corporation Limited and Controlled Entities
Notes to the financial statements
for the year ended 31st July 2013
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
b.
Principles of consolidation (continued)
(ii) Associates (continued)
When the Group's share of losses in an associate equals or exceeds its interest in the associate, including any other unsecured long-term
receivables, the Group does not recognise further losses, unless it has incurred obligations or made payments on behalf of the associate.
Unrealised gains on transactions between the Group and its associates are eliminated to the extent of the Group's interest in the associates.
Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. Accounting policies
of associates have been changed where necessary to ensure consistency with the policies adopted by the Group.
As the group only has significant influence, it is unable to obtain reliable information at year end on a timely basis. The results of associates are
equity-accounted from their most recent audited annual financial statements or unaudited interim financial statements, all within three months of
the year end of the group. Adjustments are made to the associates’ financial results for material transactions and events in the intervening
period.
(iii) Joint Ventures
The proportionate interests in the assets, liabilities and expenses of a joint venture activity have been incorporated in the financial statements
under the appropriate headings. Details of the joint venture are set out in note 39.
Segment reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker. The chief
operating decision maker, who is responsible for allocating resources and assessing performance of the operating segments, has been
identified as comprising of the Board, Chief Executive Officer (CEO), Chief Operating Officer (COO) and Chief Financial Officer (CFO).
Foreign currency translation
(i) Functional and presentation currency
Items included in the financial statements of each of the Group's entities are measured using the currency of the primary economic environment
in which the entity operates ("the functional currency"). The consolidated financial statements are presented in Australian dollars, which is New
Hope Corporation Limited's functional and presentation currency.
c.
d.
(ii) Transactions and balances
Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions.
Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year end exchange rates of
monetary assets and liabilities denominated in foreign currencies are recognised in the income statement, except when deferred in equity as
qualifying cash flow hedges and qualifying net investment hedges.
Translation differences on non-monetary items, such as equities held at fair value through profit or loss, are reported as part of the fair value
gain or loss. Translation differences on non-monetary items, such as equities classified as available for sale financial assets, are included in the
fair value reserve in equity.
(iii) Group companies
The results and financial position of all of the Group entities that have a functional currency different from the presentation currency are
translated into the presentation currency as follows:
h
h
assets and liabilities for each balance sheet presented are translated at the closing rates at the date of that balance sheet;
income and expenses for each income statement and statement of comprehensive income are translated at average exchange rates
(unless this is not a reasonable approximation of the cumulative effect of the rates prevailing on the transaction dates, in which case income
and expenses are translated at the dates of the transactions); and
h
all resulting exchange differences are recognised in other comprehensive income.
On consolidation, exchange differences arising from the translation of any net
in foreign entities, are recognised in other
comprehensive income. When a foreign operation is sold, a proportionate share of such exchange differences is reclassified to profit or loss as
part of the gain or loss on sale where applicable.
investment
e.
Revenue recognition
Revenue is measured at the fair value of the consideration received or receivable. Amounts disclosed as revenue are net of returns, trade
allowances, rebates and amounts collected on behalf of third parties.
35
35
ANNUAL REPORT & FINANCIAL STATEMENTS 2013NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2013 New Hope Corporation Limited and Controlled Entities
Notes to the financial statements
for the year ended 31st July 2013
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
e.
Revenue recognition (continued)
The Group recognises revenue where the amount of revenue can be reliably measured, it is probable that future economic benefits will flow to
the entity and specific criteria have been met for each of the Group's activities as described below. The Group bases its estimates on historical
results, taking into consideration the type of customer, the type of transaction and the specifics of each arrangement. Revenue is recognised
for the major business activities as follows:
h
Coal sales revenue is recognised at the time the risks and benefits of ownership have been transferred to the customer in accordance with
the sales terms. For export sales this is normally at the time of loading the shipment, and for domestic sales this is generally at the time the
coal is delivered to the customer.
Service fee income and management fee income is recognised as the services are performed.
Interest income is recognised as it accrues using the effective interest method.
Rental income is recognised on a straight line basis over the lease term.
Dividend income is taken into profit when the right to receive payment is established. This applies even if they are paid out of pre-
acquisition profits. However, the investment may need to be tested for impairment as a consequence (note 1(i)).
h
h
h
h
f.
Income tax
The income tax expense or revenue for the period is the tax payable on the current period's taxable income, based on the national income tax
rate for each jurisdiction, adjusted by changes in deferred tax assets and liabilities attributable to temporary differences, and to unused tax
losses.
The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the end of the reporting period in
the countries where the company’s subsidiaries and associates operate and generate taxable income. Management periodically evaluates
positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation.
It establishes provisions
where appropriate on the basis of amounts expected to be paid to the tax authorities.
Deferred income tax is provided in full, using the liability method, on temporary differences arising between the tax bases of assets and liabilities
and their carrying amounts in the consolidated financial statements. However, the deferred income tax is not accounted for if it arises from
initial recognition of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither
accounting nor taxable profit or loss. Deferred income tax is determined using tax rates (and laws) that have been enacted or substantially
enacted by the balance sheet date and are expected to apply when the related deferred income tax asset is realised or the deferred income tax
liability is settled.
Deferred tax assets are recognised for the deductible temporary differences and unused tax losses only if it is probable that future taxable
amounts will be available to utilise those temporary differences and losses.
Deferred tax liabilities and assets are not recognised for temporary differences between the carrying amount and tax bases of investments in
controlled entities where the company is able to control the timing of the reversal of the temporary difference and it is probable that the
differences will not reverse in the foreseeable future.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets and liabilities and when the
deferred tax balances relate to the same taxation authority. Current tax assets and liabilities are offset where the entity has a legally
enforceable right to offset and intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.
Current and deferred tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or
directly in equity. In this case, the tax is also recognised in other comprehensive income or directly in equity, respectively.
Investment allowances
Companies within the Group may be entitled to claim special tax deductions for investments in qualifying assets (investment allowances). The
Group accounts for such allowances as tax credits, which means that the allowance reduces income tax payable and current tax expense. A
deferred tax asset is recognised for unclaimed tax credits that are carried forward as deferred tax assets.
Tax consolidation legislation
New Hope Corporation Limited and its wholly owned Australian controlled entities implemented the tax consolidation legislation as of 1 August
2003.
36
36
ANNUAL REPORT & FINANCIAL STATEMENTS 2013NEW HOPE CORPORATION LIMITED AND CONTROLLED ENTITIES New Hope Corporation Limited and Controlled Entities
Notes to the financial statements
for the year ended 31st July 2013
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
f.
Income tax (continued)
The head entity, New Hope Corporation Limited, and the controlled entities in the tax consolidation Group account for their own current and
deferred tax amounts. These tax amounts are measured as if each entity in the tax consolidation Group continues to be a stand alone tax
payer in its own right.
g.
h.
In addition to its own current and deferred tax amounts, the Company also recognises the current tax liabilities (or assets) and the deferred tax
assets arising from unused tax losses and unused tax credits assumed from controlled entities in the tax consolidated Group.
Assets or liabilities arising under tax funding agreements with the tax consolidated entities are recognised as amounts receivable from or
payable to other entities in the Group. Details about the tax funding agreement are disclosed in note 8.
Any difference between the amounts assumed and amounts receivable or payable under the tax funding agreement are recognised as a
contribution to (or distribution from) wholly-owned tax consolidated entities.
Exploration and evaluation expenditure
Exploration, evaluation and relevant acquisition costs are accumulated separately for each area of interest. They comprise acquisition costs,
direct exploration and evaluation costs and an appropriate portion of related overhead expenditure. Costs are carried forward only if they relate
to an area of interest for which rights of tenure are current and such costs are expected to be recouped through successful development and
exploitation or from sale of the area.
Exploration and evaluation expenditure which does not satisfy these criteria is written off.
Business combinations
The acquisition method of accounting is used to account for all business combinations regardless of whether equity instruments or other assets
are acquired. The consideration transferred for the acquisition of a subsidiary comprises the fair value of the assets transferred, the liabilities
incurred and the equity interests issued by the Group. The consideration transferred also includes the fair value of any contingent consideration
arrangement and the fair value of any pre-existing equity interest in the subsidiary. Acquisition-related costs are expensed as incurred.
Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are, with limited exceptions, measured at
fair values at the acquisition date. On an acquisition-by-acquisition basis, the Group recognises any non-controlling interest in the acquiree
either at fair value or at the non-controlling interest's proportionate share of the acquiree's net identifiable assets.
The excess of the consideration transferred, the amount of any non-controlling interest in the acquiree and the acquisition-date fair value of any
previous equity interest in the acquiree over the fair value of the net identifiable assets acquired is recorded as goodwill.
If those amounts are
less than the fair value of the net identifiable assets of the subsidiary acquired and the measurement of all amounts has been reviewed, the
difference is recognised directly in profit or loss as a bargain purchase.
Where settlement of any part of cash consideration is deferred, the amounts payable in the future are discounted to their present value as at the
date of exchange. The discount rate used is the entity's incremental borrowing rate, being the rate at which similar borrowings could be
obtained from an independent financier under comparable terms and conditions.
Contingent consideration is classified either as equity or a financial
remeasured to fair value with changes in fair value recognised in profit or loss.
liability. Amounts classified as a financial
liability are subsequently
i.
Impairment of assets
Goodwill and intangible assets that have an indefinite useful life are not subject to amortisation and are tested annually for impairment, or more
frequently if events or changes in circumstances indicate that they might be impaired. Other assets are tested for impairment whenever events
or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by
which the asset's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's fair value less cost to
sell and its value in use. For the purposes of assessing impairment under value in use testing, assets are grouped at the lowest levels for which
there are separately identifiable cash inflows which are largely independent of the cash inflows from other assets or groups of assets (cash-
generating units). Non-financial assets other than goodwill that suffered an impairment are reviewed for possible reversal of the impairment at
the end of each reporting period.
37
37
ANNUAL REPORT & FINANCIAL STATEMENTS 2013NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2013 New Hope Corporation Limited and Controlled Entities
Notes to the financial statements
for the year ended 31st July 2013
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
j.
k.
Cash and cash equivalents
Cash and cash equivalents include cash on hand, deposits held at call with financial institutions and other short-term, highly liquid investments
that are readily convertible to known amounts of cash and which are subject to an insignificant risk of change in value, excluding funds on
deposit for which there is no short term identified use in the operating cashflows of the Group.
Trade receivables
Trade receivables are recognised initially at fair value and subsequently at amortised cost, less provision for doubtful debts. Trade receivables
are due for settlement no more than thirty days from the date of recognition.
Collectability of trade debtors is reviewed on an ongoing basis. Debts which are known to be uncollectible are written off by reducing the
carrying amount directly. An allowance account (provision for impairment of trade receivables) is used when there is objective evidence that the
Group will not be able to collect all of the amounts due according to the original terms of receivables. The amount of the provision is the
difference between the asset's carrying amount and the present value of estimated future cash flows, discounted at the effective interest rate.
The amount of the impairment loss is recognised in profit or loss within other expenses. When a trade receivable for which an impairment
allowance has been recognised becomes uncollectible in a subsequent period, it is written off against the allowance account. Subsequent
recoveries of amounts previously written off are credited against other expenses in profit or loss.
l.
Inventories
Coal stocks are valued at the lower of cost and net realisable value in the normal course of business. Cost comprises direct materials, direct
labour and an appropriate proportion of variable and fixed overhead expenditure, the latter being allocated on the basis of normal operating
capacity.
Inventories of consumable supplies and spare parts expected to be used in production are valued at cost.
Work in progress is stated at the lower of cost and net realisable value.
m.
Non-current assets held for sale and discontinued operations
Non-current assets (or disposal Groups) are classified as held for sale and stated at the lower of their carrying amount and fair value less cost
to sell if their carrying amount will be recovered principally through a sale transaction rather than through continuing use.
An impairment loss is recognised for any initial or subsequent write down of the asset (or disposal Group) to fair value less cost to sell. A gain
is recognised for any subsequent increases in fair value less cost to sell of an asset (or disposal Group), but not in excess of any cumulative
impairment loss previously recognised. A gain or loss not previously recognised by the date of the sale of the non-current asset (or disposal
Group) is recognised at the date of derecognition.
Assets (including those that are part of a disposal Group) are not depreciated or amortised while they are classified as held for sale.
Assets classified as held for sale and the assets of a disposal Group classified as held for sale are presented separately from other assets in
the balance sheet.
A discontinued operation is a component of the entity that has been disposed of, or is classified as held for sale and that represents a separate
major line of the business or geographical area of operations, is part of a single coordinated plan to dispose of such a line of the business or
area of operations, or a subsidiary acquired exclusively with the view to resale. The results of discontinued operations are presented separately
in the income statement.
n.
Available for sale financial assets
Investments and other financial assets
The Group classifies its financial assets in the following categories:
(i)
Available for sale financial assets, comprising principally marketable securities, are non-derivatives that are either designated in this category or
not classified in any other category. They are included in non-current assets unless management intends to dispose of the investment within 12
months of the balance sheet date.
Available for sale financial assets are initially recognised at fair value. Unrealised gains and losses arising from changes in the fair value of non-
monetary securities classified as available for sale are recognised in equity in the available for sale investments revaluation reserve. When
securities classified as available for sale are sold or impaired, the accumulated fair value adjustments are included in the income statement as
gains and losses from investment securities.
38
38
ANNUAL REPORT & FINANCIAL STATEMENTS 2013NEW HOPE CORPORATION LIMITED AND CONTROLLED ENTITIES New Hope Corporation Limited and Controlled Entities
Notes to the financial statements
for the year ended 31st July 2013
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
n.
Investments and other financial assets (continued)
(ii) Held to maturity investments
Held to maturity investments are non-derivative financial assets with fixed or determinable payments and fixed maturities that the Group's
management has the positive intention and ability to hold to maturity. Held to maturity investments are carried at amortised cost using the
effective interest method.
(iii) Loans and receivables
Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. They
are initially recognised at fair value, and subsequently at amortised cost less provisions for doubtful debts. They are included in current assets,
except for those with maturities greater than 12 months after the reporting date which are classified as non-current assets. Loans and
receivables are included in trade and other receivables (note 11) and receivables (note 15) in the balance sheet.
Impairment
The group assesses at the end of each reporting period whether there is objective evidence that a financial asset or group of financial assets is
impaired. A financial asset or a group of financial assets is impaired and impairment losses are incurred only if there is objective evidence of
impairment as a result of one or more events that occurred after the initial recognition of the asset (a "loss event") and that loss event (or
In the
events) has an impact on the estimated future cash flows of the financial asset or group of financial assets that can be reliably estimated.
case of equity investments classified as available for sale, a significant or prolonged decline in the fair value of the security below its cost is
considered an indicator that the assets are impaired.
(iv) Assets classified as available for sale
If there is objective evidence of impairment for available for sale financial assets, the cumulative loss, measured as the difference between the
acquisition cost and the current fair value, less any impairment loss on that financial asset previously recognised in profit or loss, is removed
from equity and recognised in profit or loss.
Impairment losses on equity instruments that were recognised in profit or loss are not reversed through profit or loss in a subsequent period.
o.
Derivatives - Forward foreign exchange contracts
Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently remeasured to their fair
value at each reporting date. The method of recognising the resulting gain or loss depends on whether the derivative is designated as a
hedging instrument, and if so, the nature of the item being hedged. The Group designates derivatives as hedges of highly probable forecast
transactions (cash flow hedges).
The Group documents at the inception of the transaction, the relationship between hedging instruments and hedged items, as well as its risk
management objectives and strategy for undertaking various hedge transactions. The Group also documents its assessment, both at hedge
inception and on an ongoing basis, of whether the derivatives that are used in hedging transactions have been and will continue to be highly
effective in offsetting changes in fair values or cash flows of hedged items.
The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges is recognised in the hedging
reserve. The gain or loss relating to the ineffective portion is recognised immediately in profit or loss.
Amounts accumulated in equity are recycled in the income statement in the periods when the hedged item will affect profit or loss (for instance
when the forecast sale that is hedged takes place). However, when the forecast transaction that is hedged, results in the recognition of a non-
financial asset (for example, inventory) or a non-financial liability, the gains and losses previously deferred in equity are transferred from equity
and included in the measurement of the initial cost or carrying amount of the asset or liability.
When a hedging instrument expires, is sold or terminated, or when a hedge no longer meets the criteria for hedge accounting, any cumulative
gain or loss in equity at that time remains in equity and is recognised when the forecast transaction is ultimately recognised in profit or loss.
When a forecast transaction is no longer expected to occur, the cumulative gain or loss that was reported in equity is immediately reclassified to
profit or loss.
39
39
ANNUAL REPORT & FINANCIAL STATEMENTS 2013NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2013 New Hope Corporation Limited and Controlled Entities
Notes to the financial statements
for the year ended 31st July 2013
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
p.
Fair value estimation
The fair value of financial assets and financial liabilities must be estimated for recognition and measurement for disclosure purposes.
The fair value of financial instruments that are not traded in an active market (for example, over-the-counter derivatives) is determined using
valuation techniques. The Group uses a variety of methods and makes assumptions that are based on market conditions existing at each
balance date. The fair value of forward exchange contracts is determined using forward exchange market rates at the balance sheet date.
The carrying value less the estimated credit adjustments of trade receivables and payables is assumed to approximate their fair values due to
their short term nature. The fair value of financial liabilities for disclosure purposes is estimated by discounting the future contractual cash flows
at the current market interest rate that is available to the Group for similar financial instruments.
q.
Property, plant and equipment
Property, plant and equipment, excluding investment property, is stated at historical cost less applicable depreciation. Historical cost includes
expenditure that is directly attributable to the acquisition of the items. Cost may also include transfers from equity of any gains/losses on
qualifying cash flow hedges of foreign currency purchases of property, plant and equipment.
Subsequent costs are included in the asset's carrying amount or recognised as a separate asset, as appropriate, only when it is probable that
future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. All other repairs and
maintenance are charged to profit or loss during the financial period in which it is incurred.
Depreciation is calculated so as to write off the cost of each item of property, plant and equipment during its expected economic life to the
consolidated entity. Each item's useful life has due regard both to its own physical life limitations and to present assessments of economically
recoverable resources of the mine property at which the item is located. Estimates of residual values and remaining useful lives are made on
an annual basis. Straight line method is predominately used. The expected useful life of plant and equipment is 4 to 20 years, buildings is 25 to
40 years and motor vehicles is 4 years. Land is not depreciated.
An asset's carrying amount is written down immediately to its recoverable amount if the asset's carrying amount is greater than its recoverable
amount (note 1(i)).
Gains and losses on disposals are determined by comparing proceeds with carrying amount. These are included in profit or loss.
r.
Mine properties, mine development costs, mining reserves and mining leases
Development expenditure incurred by the consolidated entity is accumulated separately for each area of interest in which economically
recoverable mineral resources have been identified to the satisfaction of the Directors. Direct development expenditure, pre-operating mine
start-up costs and an appropriate portion of related overhead expenditures are capitalised as mine development costs up until the relevant mine
is in commercial production.
Mining reserves, leases and mine development costs are amortised over the estimated productive life of each applicable mine on either a unit
of production basis or years of operation basis, as appropriate. Amortisation commences when a mine commences commercial production.
The cost of acquiring mineral reserves and mineral resources are capitalised on the statement of financial position as incurred.
s.
IT development and software
Intangible assets
(i)
Costs incurred in developing products or systems and costs incurred in acquiring software and licenses that will contribute to future period
financial benefits through revenue generation and/or cost reduction are capitalised to software and systems. Costs capitalised are external
direct costs of materials and services. Amortisation is calculated on a straight line basis over periods generally ranging from 3 to 5 years.
(ii) Goodwill
is measured as described in note 1(h). Goodwill on acquisitions of subsidiaries is included in intangible assets. Goodwill on
Goodwill
acquisitions of associates is included in investments in associates. Goodwill
is tested for impairment
annually, and is carried at cost less accumulated impairment losses. Gains or losses on the disposal of an entity include the carrying amount of
goodwill relating to the entity sold.
is not amortised.
Instead, goodwill
Goodwill is allocated to cash-generating units for the purpose of impairment testing. The allocation is made to those cash-generating units or
Groups of cash-generating units that are expected to benefit from the business combination in which the goodwill arose, identified according to
operating segments (note 4).
40
40
ANNUAL REPORT & FINANCIAL STATEMENTS 2013NEW HOPE CORPORATION LIMITED AND CONTROLLED ENTITIES New Hope Corporation Limited and Controlled Entities
Notes to the financial statements
for the year ended 31st July 2013
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
t.
u.
v.
Trade and other payables
These amounts represent liabilities for goods and services provided to the Group prior to the end of the financial year and which are unpaid.
The amounts are unsecured and usually paid within forty five days of recognition.
Borrowing costs
Borrowing costs incurred for the construction of a qualifying asset are capitalised during the period of time that is required to complete and
prepare the asset for its intended use or sale. Other borrowing costs are recognised as expenses in the period in which they are incurred.
Employee benefits
(i) Short-term obligations
Liabilities for wages and salaries, including non-monetary benefits, annual leave and vesting sick leave expected to be settled within twelve
months after the end of the period in which the employees render the related service are recognised in respect of employees' services up to
the end of the reporting period and are measured at the amounts expected to be paid when the liabilities are settled. The liability of annual
leave and accumulating sick leave is recognised in the provision for employee benefits. All other short-term employee benefit obligations are
presented as payables.
(ii) Other long-term employee benefit obligations
The liability for long service leave and annual leave which is not expected to be settled within twelve months after the end of the period in which
the employees render the related service is recognised in the provision for employee benefits and measured as the present value of expected
future payments to be made in respect of services provided by employees up to the end of the reporting period using the projected unit credit
method. Consideration is given to expected future wage and salary levels, experience of employee departures and periods of service.
Expected future payments are discounted using market yields at the end of the reporting period on national government bonds with terms to
maturity and currency that match, as closely as possible, the estimated future cash outflows.
(iii) Share-based payments
Share-based compensation benefits are provided to employees via the New Hope Corporation Limited Employee Share Option Plan and the
New Hope Corporation Ltd Employee Performance Rights Share Plan. Information relating to these schemes is set out in note 36.
The fair value of options granted under the New Hope Corporation Limited Employee Share Option Plan and the New Hope Corporation Ltd
Employee Performance Rights Share Plan is recognised as an employee benefit expense with a corresponding increase in equity. The fair
value is measured at grant date and recognised over the period during which the employee becomes unconditionally entitled to the options or
rights. Options and rights are exercisable by current employees during the nominated vesting period or by Directors' consent. Detailed vesting
conditions are set out in the Directors' report.
The fair value of rights at grant date is calculated as the number of rights offered at the share price at offer date. The fair value of options at
grant date is independently determined using a monte carlo option pricing model that takes into account the exercise price, the term of the
option, the vesting criteria, the impact of dilution, the non-tradeable nature of the option, the share price at grant date and expected price
volatility of the underlying share, the expected dividend yield and the risk-free interest rate for the term of the option.
The fair value of the options granted is adjusted to reflect the market vesting condition, but excludes the impact of any non-market vesting
conditions. Non-market vesting conditions are included in assumptions about the number of options that are expected to become exercisable.
At each reporting date, the entity revises its estimate of the number of options that are expected to become exercisable. The employee benefit
expense recognised each period takes into account the most recent estimate. The impact of the revision to the original estimates, is
recognised in profit or loss with a corresponding adjustment to equity.
w.
Contributed equity
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or options are shown in equity as a
deduction net of tax, from the proceeds. The amounts of any capital returns are applied against contributed equity.
x.
Dividends
Provision is made for the amount of any dividend declared on or before the end of the financial year but not distributed at balance date.
41
41
ANNUAL REPORT & FINANCIAL STATEMENTS 2013NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2013 New Hope Corporation Limited and Controlled Entities
Notes to the financial statements
for the year ended 31st July 2013
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
y.
z.
Rounding of amounts
The Company is of a kind referred to in Class Order 98/0100, issued by the Australian Securities and Investment Commission, relating to the
"rounding off" of amounts in the financial statements. Amounts in the financial statements have been rounded off in accordance with that Class
Order to the nearest thousand dollars, or in certain cases, to the nearest dollar.
Earnings per share
(i) Basic earnings per share
Basic earnings per share is calculated by dividing the profit attributable to equity holders of the company, excluding any costs of servicing
equity other than ordinary shares, by the weighted average number of ordinary shares outstanding during the year, adjusted for bonus element
in ordinary shares issued during the year.
(ii) Diluted earnings per share
Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account the after income tax
effect of interest and other financial costs associated with dilutive potential ordinary shares and the weighted average number of shares
assumed to have been issued for no consideration in relation to dilutive potential ordinary shares.
aa.
Restoration, rehabilitation and environmental expenditure
Provisions are raised for restoration, rehabilitation and environmental expenditure as soon as an obligation exists, with the cost being charged
to profit or loss in respect of ongoing rehabilitation. Where the obligation relates to decommissioning of assets and restoring the sites on which
they are located, the costs are carried forward in the value of the asset and amortised over its useful life.
Provisions are measured at the present value of expected future cash outflows with future cash outflows reassessed on a regular basis. The
present value is determined using an appropriate discount rate. The obligations include profiling, stabilisation and revegetation of the
completed area, with cost estimates based on current statutory requirements and current technology.
ab.
Goods and Services Tax (GST)
Revenues, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred is not recoverable from the
taxation authority. In this case it is recognised as part of the cost of acquisition of the asset or as part of the expense.
Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST recoverable from, or
payable to, the taxation authority is included with other receivables or payables in the balance sheet.
Cash flows are presented on a gross basis. The GST component of cash flows arising from investing or financing activities which are
recoverable from, or payable to the taxation authority, are presented as operating cash flows.
Leases
Leases in which a significant portion of the risks and rewards of ownership are not transferred to the Group as lessee are classified as
operating leases. Payments made under operating leases (net of any incentives received from the lessor) are charged to the income
statement on a straight line basis over the period of the lease.
New accounting standards and interpretations
Certain new accounting standards and interpretations have been published that are not mandatory for 31 July 2013 reporting periods. The
Group’s assessment of the impact of these new standards and interpretations is set out below. The group does not expect to adopt the new
standards before their operative date. They would therefore be first applied in the financial statements for the annual reporting period ending
31 July 2014.
(i)
AASB 9 Financial Instruments, AASB 2009-11 Amendments to Australian Accounting Standards arising from AASB 9 and AASB 2010-7
Amendments to Australian Accounting Standards arising from AASB 9 (December 2010) (effective for annual reporting periods beginning
on or after 1 January 2013)
AASB 9 Financial Instruments addresses the classification, measurement and derecognition of financial assets and financial liabilities. The
standard is not applicable until 1 January 2013 but is available for early adoption. There will be no impact on the group's accounting for
financial liabilities, as the new requirements only affect the accounting for financial liabilities that are designated as at fair value through
profit or loss and the group does not have any such liabilities. The derecognition rules have been transferred from AASB 139 Financial
Instruments: Recognition and Measurement and have not been changed. The group has not yet decided when to adopt AASB 9.
42
ac.
ad.
42
ANNUAL REPORT & FINANCIAL STATEMENTS 2013NEW HOPE CORPORATION LIMITED AND CONTROLLED ENTITIES New Hope Corporation Limited and Controlled Entities
Notes to the financial statements
for the year ended 31st July 2013
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
ad.
New accounting standards and interpretations (continued)
(ii) AASB 10 Consolidated Financial Statements, AASB 11 Joint Arrangements, AASB 12 Disclosure of Interests in Other Entities and revised
AASB 127 Separate Financial Statements and AASB 128 Investments in Associates and Joint Ventures (effective 1 January 2013)
In August 2011, the AASB issued a suite of five new and amended standards which address the accounting for joint arrangements,
consolidated financial statements and associated disclosures.
AASB 10 replaces all of the guidance on control and consolidation in AASB 127 Consolidated and Separate Financial Statements , and
Interpretation 12 Consolidation – Special Purpose Entities . The core principle that a consolidated entity presents a parent and its
subsidiaries as if they are a single economic entity remains unchanged, as do the mechanics of consolidation. However, the standard
introduces a single definition of control that applies to all entities.
It focuses on the need to have both power and rights or exposure to
variable returns before control is present. Power is the current ability to direct the activities that significantly influence returns. Returns
must vary and can be positive, negative or both. There is also new guidance on participating and protective rights and on agent/principal
relationships. While the group does not expect the new standard to have a significant impact on its composition, it has yet to perform a
detailed analysis of the new guidance in the context of its various investees that may or may not be controlled under the new rules.
AASB 11 introduces a principles based approach to accounting for joint arrangements. The focus is no longer on the legal structure of
joint arrangements, but rather on how rights and obligations are shared by the parties to the joint arrangement. Based on the assessment
of rights and obligations, a joint arrangement will be classified as either a joint operation or joint venture. Joint ventures are accounted for
using the equity method, and the choice to proportionately consolidate will no longer be permitted. Parties to a joint operation will account
their share of revenues, expenses, assets and liabilities in much the same way as under the previous standard. AASB 11 also provides
guidance for parties that participate in joint arrangements but do not share joint control. The group is currently assessing the full impact
upon adopting this standard.
AASB 12 sets out the required disclosures for entities reporting under the two new standards, AASB 10 and AASB 11, and replaces the
disclosure requirements currently found in AASB 128. Application of this standard by the group will not affect any of the amounts
recognised in the financial statements, but will impact the type of information disclosed in relation to the group's investments.
AASB 127 is renamed Separate Financial Statements and is now a standard dealing solely with separate financial statements.
Application of this standard by the group and parent entity will not affect any of the amounts recognised in the financial statements, but
may impact the type of information disclosed in relation to the parent's investments in the separate parent entity financial statements.
(iii) AASB 13 Fair Value Measurement (effective 1 January 2013)
AASB 13 was released in September 2011. AASB 13 explains how to measure fair value and aims to enhance fair value disclosures.
The group has yet to determine which, if any, of its current measurement techniques will have to change as a result of the new guidance.
It is therefore not possible to state the impact, if any, of the new rules on any of the amounts recognised in the financial statements.
However, application of the new standard will impact the type of information disclosed in the notes to the financial statements. The group
does not intend to adopt the new standard before its operative date, which means that it would be first applied in the annual reporting
period ending 30 June 2014.
(iv) Int 20 Accounting for stripping costs and AASB 2011-12 (effective 1 January 2013)
Production phase stripping costs will be attributed to an identifiable component of an ore body and amortised over the useful life of the
identified component. On transition, existing production phase stripping costs will be written off to retained earnings if they cannot be
attributed to an identifiable component of an ore body. Entities will no longer be able to amortise production phase stripping costs over
the life of mine. Entities may need to make significant changes to processes, procedures and systems in order for the accounting to
mirror the mining activity. Entities will need to directly attribute its carried forward stripping cost to components of ore bodies to avoid a
write-off on adoption of the interpretation. The group is currently assessing the full impact upon adopting this standard.
43
43
ANNUAL REPORT & FINANCIAL STATEMENTS 2013NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2013 New Hope Corporation Limited and Controlled Entities
Notes to the financial statements
for the year ended 31st July 2013
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
ae. Parent entity financial information
The financial information for the parent entity, New Hope Corporation Limited, disclosed in note 41 has been prepared on the same basis as
the consolidated financial statements, except as set out below.
Investments in subsidiaries, associates and joint ventures
Investments in subsidiaries, subsidiaries and joint ventures are accounted for at cost in the financial report of New Hope Corporation Limited.
Dividends received from subsidiaries are recognised in the parent entity’s income statement rather than being deducted from the carrying
amount of these investments.
Tax consolidation legislation
New Hope Corporation Limited and its wholly-owned Australian controlled entities have implemented the tax consolidation legislation as of 1
July 2002. The head entity, New Hope Corporation Limited, and the controlled entities in the tax consolidated group continue to account for
their own current and deferred tax amounts. These tax amounts are measured as if each entity in the tax consolidated group continues to be
a stand alone taxpayer in its own right.
In addition to its own current and deferred tax amounts, New Hope Corporation Limited also
recognises the current tax liabilities (or assets) and the deferred tax assets arising from unused tax losses and unused tax credits assumed
from controlled entities in the tax consolidated group.
The entities have also entered into a tax funding agreement under which the wholly-owned entities fully compensate New Hope Corporation
Limited for any current tax payable assumed and are compensated by New Hope Corporation Limited for any current tax receivable and
deferred tax assets relating to unused tax losses or unused tax credits that are transferred to New Hope Corporation Limited under the tax
consolidation legislation. The funding amounts are determined by reference to the amounts recognised in the wholly-owned entities’ financial
statements.
The amounts receivable/payable under the tax funding agreement are due upon receipt of the funding advice from the head entity, which is
issued as soon as practicable after the end of each financial year. The head entity may also require payment of interim funding amounts to
assist with its obligations to pay tax instalments.
Assets or liabilities arising under tax funding agreements with the tax consolidated entities are recognised as current amounts receivable from
or payable to other entities in the group. Any difference between the amounts assumed and amounts receivable or payable under the tax
funding agreement are recognised as a contribution to (or distribution from) wholly-owned tax consolidated entities.
af. Comparative Figures
When required, comparative figures have been adjusted to conform to changes in presentation for the current financial year.
2. FINANCIAL RISK MANAGEMENT
The Group's activities expose it to a variety of financial risks: market risk (including currency risk, price risk and interest rate risk), credit risk and
liquidity risk. The Group's overall risk management program focuses on the unpredictability of financial markets and seeks to minimise potential
adverse effects on the financial performance of the Group. The Group uses derivative financial instruments such as foreign exchange contracts to
hedge certain risk exposures. Derivatives are used exclusively for hedging purposes, i.e. not as trading or other speculative instruments. The
Group uses different methods to measure different types of risk to which it is exposed. These methods include sensitivity analysis in the case of
interest rate, foreign exchange and other price risks and aging analysis for credit risk.
Risk management is carried out in accordance with written policies approved by the Board of Directors. These written policies cover specific
areas, such as mitigating foreign exchange, interest rate and credit risks, use of forward exchange contracts and investment of excess liquidity.
44
44
ANNUAL REPORT & FINANCIAL STATEMENTS 2013NEW HOPE CORPORATION LIMITED AND CONTROLLED ENTITIES New Hope Corporation Limited and Controlled Entities
Notes to the financial statements
for the year ended 31st July 2013
2. FINANCIAL RISK MANAGEMENT (continued)
The Group holds the following financial instruments:
Available for
Sale
Derivatives used
for hedging
Financial
Assets/Liabilities
amortised at cost
Total
$000
$000
$000
$000
Financial assets
2013
Cash and cash equivalents
Trade and other receivables
Available for sale financial assets
Held to maturity investments
Other financial assets
2012
Cash and cash equivalents
Trade and other receivables
Derivative financial instruments
Available for sale financial assets
Held to maturity investments
Other financial assets
Financial liabilities
2013
Trade and other payables
Derivative financial instruments
2012
Trade and other payables
-
-
30,215
-
-
30,215
-
-
-
73,140
-
-
73,140
-
-
-
-
-
-
-
-
-
-
-
-
-
30,364
-
-
-
30,364
-
41,428
41,428
-
-
21,564
60,680
-
1,229,608
614
1,312,466
70,990
26,332
-
-
1,446,975
299
1,544,596
46,758
46,758
40,460
40,460
21,564
60,680
30,215
1,229,608
614
1,342,681
70,990
26,332
30,364
73,140
1,446,975
299
1,648,100
46,758
41,428
88,186
40,460
40,460
a.
Market risk
(i) Foreign exchange risk
Foreign exchange risk arises when future commercial transactions and recognised assets and liabilities are denominated in a currency that is
not the entity's functional currency. The Group is exposed to foreign exchange risk arising from currency exposures to the US dollar.
Forward contracts are used to manage foreign exchange risk. Senior management is responsible for managing exposures in each foreign
currency by using external forward currency contracts. Contracts are designated as cash flow hedges. External foreign exchange contracts
are designated at Group level as hedges of foreign exchange risk on specific future transactions.
The Group's risk management policy is to hedge up to 65% of anticipated transactions (export coal sales) in US dollars for the subsequent
year, up to 57% of anticipated revenue beyond a year but less than two years and up to 50% for revenue beyond two years but less than
three years. All hedges of projected export coal sales qualify as "highly probable" forecast transactions for hedge accounting purposes.
45
45
ANNUAL REPORT & FINANCIAL STATEMENTS 2013NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2013
New Hope Corporation Limited and Controlled Entities
Notes to the financial statements
for the year ended 31st July 2013
2. FINANCIAL RISK MANAGEMENT (continued)
a.
Market risk
(i) Foreign exchange risk (continued)
The Group's exposure to foreign currency risk at the reporting date was as follows:
Cash and cash equivalents
Trade receivables
Forward exchange contracts - sell foreign currency (cash flow hedges)
Trade payables
2013
USD
$000
5,927
18,617
412,000
-
2012
USD
$000
37,590
-
275,000
750
Group sensitivity
Based on the trade receivables, cash and trade payables held at 31 July 2013, had the Australian dollar weakened/strengthened by 10%
against the US dollar with all other variables held constant, the Group's post-tax profit for the year would have increased/(decreased) by
$2,112,000/($1,728,000) (2012 - $2,833,000/($2,318,000)), mainly as a result of foreign exchange gains/losses on translation of US dollar
receivables and cash balances as detailed in the above table. The Group's equity as at balance date would have increased/(decreased) by
the same amounts.
Based on the forward exchange contracts held at 31 July 2013, had the Australian dollar weakened/strengthened by 10% against the US
dollar with all other variables held constant, the Group's equity would have increased/(decreased) by $41,820,000/($46,003,000) (2012 -
$23,751,000/($26,126,000)). There is no effect on post-tax profits. Equity in 2013 is more sensitive to movements in the Australian dollar /
USD exchange rates than in 2012 because of the increased value of forward exchange contracts in 2013.
(ii) Price risk
The Group is exposed to equity securities price risk arising from certain investments held by the Group and classified on the balance sheet as
available for sale.
The majority of the Group's equity investments are publicly traded and are included in the All Ordinaries Index. The table below summarises
the impact of increases/decreases in the index on the Group's equity as at balance date. The analysis is based on the assumption that the
equity index had increased/decreased by 10% with all other variables held constant and all the Group's equity instruments moved according
to the historical correlation with the index.
Index
All Ordinaries - 10% increase
All Ordinaries - 10% decrease
Impact on post-tax profit
2013
$000
-
(3,099)
2012
$000
-
(2,295)
Impact on equity
2013
$000
3,518
(420)
2012
$000
5,335
(3,041)
The price risk for unlisted securities is immaterial in terms of the possible impact on total equity.
sensitivity analysis.
It has therefore not been included in the
(iii) Fair value interest rate risk
Refer to (e) below.
46
46
ANNUAL REPORT & FINANCIAL STATEMENTS 2013NEW HOPE CORPORATION LIMITED AND CONTROLLED ENTITIES
New Hope Corporation Limited and Controlled Entities
Notes to the financial statements
for the year ended 31st July 2013
2. FINANCIAL RISK MANAGEMENT (continued)
b.
Credit risk
Credit risk is managed on a Group basis. Credit risk arises from cash and cash equivalents, derivative financial instruments and deposits with
banks and financial institutions, as well as credit exposure to export and domestic customers, including outstanding receivables and committed
transactions. The Group has no significant concentrations of credit risk. The Group has policies in place to ensure that sales of products and
services are made to customers with an appropriate credit history. The majority of customers, both export and domestic have long term
relationships with the Group and sales are secured with long term supply contracts. Sales are secured by letters of credit when deemed
appropriate. Derivative counterparties, held to maturity investments and cash transactions are limited to financial institutions with a rating of at
least BBB. The Group has policies that limit the maximum amount of credit exposure to any one financial institution.
Credit risk further arises in relation to financial guarantees given to certain parties (see note 22). Such guarantees are only provided in
exceptional circumstances and are subject to specific board approval.
The credit quality of financial assets that are neither past due nor impaired can be assessed by reference to historical
counterparty default rates. The table below summarises the assets which are subject to credit risk.
information about
Trade receivables
Cash at bank and short term bank deposits
Held to maturity investments
Derivative financial instruments
2013
$000
57,905
21,564
1,229,608
-
2012
$000
17,124
70,990
1,446,975
30,364
c.
Liquidity risk
Prudent liquidity risk management is adopted through maintaining sufficient cash and marketable securities, the ability to borrow funds from
credit providers and to close-out market positions. The Group manages liquidity risk by continuously monitoring forecast and actual cash flows
and matching the maturity profiles of financial assets and liabilities. Surplus funds are generally only invested in instruments that are tradeable
in highly liquid markets.
(i) Financing arrangements
The Group has no current need of external funding lines.
47
47
ANNUAL REPORT & FINANCIAL STATEMENTS 2013NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2013
New Hope Corporation Limited and Controlled Entities
Notes to the financial statements
for the year ended 31st July 2013
2. FINANCIAL RISK MANAGEMENT (continued)
d. Maturity of financial liabilities
Non-derivative financial liabilities of the Group all mature within one year. The maturity groupings of derivative financial instruments are detailed
in note 35.
e.
Cash flow and fair value interest rate risk
The Group currently has significant interest-bearing assets which are placed with reputable investment counterparties for up to 12 months. The
company has a treasury investment policy approved by the Board which stipulates the maximum dollar exposure to each financial institution,
and the maximum percentage of funds that can be invested with an individual institution. Significant changes in market interest rates may have
an effect on the Group's income and operating cash flows. The Group manages its cash flow interest rate risk by placing excess funds in term
deposits and other fixed interest bearing assets. Refer to note 13 for details.
Based on the deposits held at balance date, the sensitivity to a 1% increase or decrease in interest rates would increase/(decrease) after tax
profit by $9,225,000 (2012 - $10,968,000).
As the Group has no significant borrowings, its income statement and operating cash flows are substantially independent of changes in market
interest lending rates.
f. Fair value measurements
The fair value of financial assets and financial liabilities must be estimated for recognition and measurement or for disclosure purposes.
AASB 7 Financial Instruments: Disclosures requires disclosure of fair value measurements by level of the following fair value measurement
hierarchy:
a.
b.
quoted prices (unadjusted) in active markets for identical assets or liabilities (level 1)
inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (as prices) or indirectly
(derived from prices) (level 2), and
inputs for the asset or liability that are not based on observable market data (unobservable inputs) (level 3).
c.
The following table presents the group's assets measured and recognised at fair value at 31 July 2013 and 31 July 2012.
2013
Assets
Available for sale financial assets
Equity securities
Total assets
Liabilities
Derivatives used for hedging
Total liabilities
2012
Assets
Derivatives used for hedging
Available for sale financial assets
Equity securities
Total assets
Level 1
$000
Level 2
$000
Level 3
$000
Total
$000
30,215
30,215
-
-
-
-
30,215
30,215
-
-
41,428
41,428
-
-
41,428
41,428
Level 1
$000
Level 2
$000
Level 3
$000
Total
$000
-
30,364
-
30,364
26,659
26,659
46,481
76,845
-
-
73,140
103,504
The fair value of financial instruments traded in active markets (such as available for sale securities) is based on quoted market prices at the
reporting date. The quoted market price used for financial assets held by the Group is the last sale price.
During the current year, an equity security has been transferred from level 1 to level 2 as the quoted market price has not been deemed to
represent fair value.
The fair value of forward exchange contracts is determined using forward exchange market rates at the reporting date.
The carrying value less impairment provisions of trade receivables and payables are assumed to approximate their fair values due to their short
term nature. The fair value of financial liabilities for disclosure purposes is estimated by discounting the future contractual cash flows at the
current market interest rate that is available to the Group for similar financial instruments.
48
48
ANNUAL REPORT & FINANCIAL STATEMENTS 2013NEW HOPE CORPORATION LIMITED AND CONTROLLED ENTITIES New Hope Corporation Limited and Controlled Entities
Notes to the financial statements
for the year ended 31st July 2013
3. CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS
Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future
events that may have a financial impact on the entity and that are believed to be reasonable under the circumstances.
a.
Critical accounting estimates and assumptions
The Group makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal actual
results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and
liabilities within the next financial year are discussed below.
(i) Rehabilitation
The Group makes estimates about the future cost of rehabilitating tenements which are currently disturbed, based on legislative requirements
and current costs. Cost estimates take into account past experience and expectations of future events that are expected to alter past
experiences. Any changes to legislative requirements could have a significant impact on the expenditure required to restore these areas.
(ii) Determination of coal reserves and coal resources
The Group estimates its coal reserves and coal resources based on information compiled by Competent Persons as defined in accordance with
the Australasian Code for Reporting of Mineral Resources and Ore Reserves of December 2004 (the “JORC code”). Reserves determined in
this way are used in the calculation of depreciation, amortisation and impairment charges, the assessment of mine lives and for forecasting the
timing of the payment of decommissioning and restoration costs.
(iii) Mineral Resource Rent Tax (MRRT)
During the year, as a result of the MRRT legislation that was substantively enacted on 19 March 2012 and that is effective from 1 July 2012,
additional and offsetting deferred tax balances have been recognised. Judgement is required in assessing whether deferred tax assets and
deferred tax liabilities arising from MRRT are recognised on the balance sheet.
Deferred tax assets are recognised only when it is considered probable that they will be recovered. Recoverability is dependent on the
generation of sufficient future taxable profits. Assumptions about the generation of future taxable profits depend on management’s estimates of
future cash flows. These in turn depend on estimates of future sales volumes, operating costs, capital expenditure and government royalties'
payable.
Judgements are also required about the application of the MRRT tax legislation for example in relation to the hypothetical valuation point.
The judgements and assumptions made by management are subject to risk and uncertainty; hence, there is a possibility that changes in
circumstances will alter expectations, which may impact the amount of deferred tax assets and deferred tax liabilities recognised on the balance
sheet. In such circumstances, some or all of the carrying amounts of recognised deferred tax assets and liabilities may require adjustment,
resulting in a corresponding credit or charge to the income statement.
(iii) Petroleum Resource Rent Tax (PRRT)
As a result of the 100% acquisition of Bridgeport Energy Limited during the year, the New Hope Group is subject to Petroleum Resource Rent
Tax (PRRT) effective 1 July 2012 being the date of the extension of the PRRT to onshore petroleum projects. The New Hope Group has
accounted for the current and deferred tax impact of PRRT in accordance with the requirements outlined above in relation to income tax. As
such, the New Hope Group has recorded current and deferred tax assets and liabilities relating to PRRT at the prevailing PRRT rate at 31 July
2013.
New Hope Corporation Limited, as head company of the income tax consolidated has made a PRRT consolidation election and as such the
New Hope Group includes several PRRT consolidated groups at 31 July 2013. The New Hope Group is intending to enter a Tax Sharing and
Funding Agreement for each PRRT consolidated group adopting a separate taxpayer in the group approach in line with income tax. The New
Hope Group has accounted for its PRRT tax balances in accordance with this methodology at 31 July 2013.
b.
Critical judgements in applying the entity's accounting policies
(i) Exploration and development expenditure
During the year the entity capitalised various items of expenditure to the mine development and exploration expenditure asset account. The
relevant items of expenditure were deemed to be part of the capital cost of developing future mining operations, which would then be amortised
over the useful life of the mine. The key judgement applied in considering whether the costs should be capitalised, is that costs are expected to
be recovered through either successful development or sale of the relevant mining interest.
49
49
ANNUAL REPORT & FINANCIAL STATEMENTS 2013NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2013 New Hope Corporation Limited and Controlled Entities
Notes to the financial statements
for the year ended 31st July 2013
3. CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS (continued)
Critical judgements in applying the entity's accounting policies (continued)
b.
(ii) Impairment of available for sale financial assets
In the 2013 financial statements, the Group made a significant judgement about the impairment of a number of its available for sale financial
assets.
The Group follows the guidance of AASB 139 Financial Instruments: Recognition and Measurement
financial asset is impaired. This determination requires significant judgement.
factors, the duration and extent to which the fair value of an investment is less than its cost.
to determine when an available for sale
In making this judgement, the Group evaluates, among other
4. FINANCIAL REPORTING SEGMENTS
a.
Description of segments
The Group has three reportable segments, namely Coal mining (including exploration, development, production and processing), Marketing
and logistics (transport infrastructure and marketing activities) and Treasury and investments (including cash, held to maturity investments and
available for sale financial assets).
Operating segments have been determined based on the analysis provided in the reports reviewed by the Board, CEO, COO and CFO (being
the Chief Operating Decision Maker, “CODM”). The reportable segments reflect how performance is measured, and decisions regarding
allocations of resources are made by the CODM.
Other immaterial coal mining and related operations that do not meet the quantitative thresholds requiring separate disclosure in AASB 8
Operating Segments have been combined with the current coal mining operations.
Segment information is presented on the same basis as that used for internal reporting purposes. Sales between segments are carried out at
arm’s length and are eliminated on consolidation.
b. Segment information
Year ended 31 July 2013
Total segment revenue
Inter-segment revenue
Total segment revenue - external customers
Reportable segment profit before income tax
Total segment profit before income tax includes:
Interest revenue
Depreciation and amortisation
Share of net profit / (loss) of associate
Reportable segment assets
Total segment assets includes:
Additions to non-current assets
Year ended 31 July 2012
Total segment revenue
Inter-segment revenue
Total segment revenue - external customers
Reportable segment profit before income tax
Total segment profit before income tax includes:
Interest revenue
Depreciation and amortisation
Share of net profit / (loss) of associate
Reportable segment assets
Total segment assets includes:
Investments accounted for using the equity method
Additions to non-current assets
50
5
5
7
38
5
5
7
38
38
50
Notes
Coal mining
$000
Marketing &
Logistics
$000
Treasury &
Investments
$000
Total
$000
957,281
(305,184)
652,097
172,575
60,594
48,498
(386)
322,832
(305,184)
17,648
61,336
-
39,164
-
569,746
-
569,746
47,594
-
9,334
-
64,703
-
64,703
63,645
60,594
-
(386)
794,642
192,536
1,281,386
2,268,564
183,446
9,964
-
193,410
385,734
(381,597)
4,137
91,935
-
35,008
-
676,691
-
676,691
62,084
-
9,036
-
86,697
-
86,697
83,991
86,650
-
(647)
1,149,122
(381,597)
767,525
238,010
86,650
44,044
(647)
634,659
201,125
1,623,635
2,459,419
-
61,551
-
8,444
32,530
-
32,530
69,995
ANNUAL REPORT & FINANCIAL STATEMENTS 2013NEW HOPE CORPORATION LIMITED AND CONTROLLED ENTITIES
New Hope Corporation Limited and Controlled Entities
Notes to the financial statements
for the year ended 31st July 2013
4. FINANCIAL REPORTING SEGMENTS (continued)
b.
Segment information (continued)
Reconciliation of reportable segment profit and loss
Total profit for reportable segments
Non regular items
Gain on sale of WICET Subscription
Impairment of investment in associates
Impairment of available for sale investments
Impairment of goodwill
Consolidated profit before income tax
c.
Other segment information
(i) Segment revenue
Total segment revenue
Japan
Taiwan / China
Chile
Korea
Australia
Investment income - Australia
2013
$000
2012
$000
172,575
238,010
786
(13,286)
(38,091)
-
121,984
195,088
316,195
4,390
5,995
65,726
587,394
64,703
652,097
-
-
(5,804)
(33,387)
198,819
218,443
390,250
13,432
-
58,703
680,828
86,697
767,525
Included within revenue for the marketing and logistics segment are customers that represent more than 10 per cent of the Group's total
revenue. For the year ended 31 July 2013, one customer contributed $308,466,859 in sales revenue (2012 - $353,001,000) whilst another
customer contributed $185,150,680 in sales revenue (2012 - $193,095,000).
Sales between segments are carried out at arm's length and are eliminated on consolidation. The revenue reported from external parties is
measured in a manner consistent with that in the income statement.
(ii) Segment assets
The amounts provided to the CODM with respect to total assets are measured in a manner consistent with that of the financial statements.
These assets are allocated based on the operations of the segment. All non-current assets are located in Australia.
51
51
ANNUAL REPORT & FINANCIAL STATEMENTS 2013NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2013
New Hope Corporation Limited and Controlled Entities
Notes to the financial statements
for the year ended 31st July 2013
5. REVENUE
From continuing operations
Sales revenue
Sale of goods
Services
Other revenue
Property rent
Interest
Sundry revenue
6. OTHER INCOME
Gain on Bridgeport previously held interest
Gain on sale of WICET Subscription
Gain/(loss) on sale of property, plant and equipment
7. EXPENSES
Profit before income tax includes the following specific expenses:
Foreign exchange gains and losses
Net foreign exchange (gains)/losses
Depreciation
Buildings
Plant and equipment
Amortisation
Mining reserves and mine development
Software
Oil producing assets
Other charges against assets
Bad and doubtful debts
Impairment of investment in associates
Impairment of available for sale investments
Impairment of goodwill
Accretion expense
Exploration costs expensed
Defined contribution superannuation expense
Employee benefits expensed
Operating lease costs expensed
52
52
2013
$000
2012
$000
560,211
26,092
586,303
750
60,594
4,450
652,097
4,109
786
(567)
4,328
650,318
25,286
675,604
778
86,650
4,493
767,525
-
-
149
149
(2,895)
4,180
413
40,716
41,129
5,033
1,285
1,051
7,369
-
13,286
38,091
-
51,377
901
420
36,142
36,562
6,408
1,074
-
7,482
-
-
5,804
33,387
39,191
-
13,419
11,338
6,449
6,118
96,624
98,004
4,171
3,556
ANNUAL REPORT & FINANCIAL STATEMENTS 2013NEW HOPE CORPORATION LIMITED AND CONTROLLED ENTITIES
New Hope Corporation Limited and Controlled Entities
Notes to the financial statements
for the year ended 31st July 2013
8. INCOME TAX EXPENSE
a. Tax consolidation legislation
New Hope Corporation Limited and its wholly-owned Australian controlled entities have implemented the tax consolidation legislation as of 1
August 2003. The accounting policy in relation to this legislation is set out in note 1(f).
On adoption of the tax consolidation legislation, the entities in the tax consolidated group entered into a tax sharing agreement which, in the
opinion of the Directors, limits the joint and several liability of the wholly-owned entities in the case of a default by the head entity, New Hope
Corporation Limited.
The entities have also entered into a tax funding agreement under which the wholly-owned entities fully compensate New Hope Corporation
Limited for any current tax payable assumed and are compensated by New Hope Corporation Limited for any tax receivable and deferred tax
assets relating to unused tax losses or unused tax credits that are transferred to New Hope Corporation Limited under the tax consolidation
legislation. The funding amounts are determined by reference to the amounts recognised in the wholly-owned entities financial statements.
The amounts receivable / payable under the tax funding agreement are due upon receipt of the funding advice from the head entity, which is
issued as soon as practicable after the end of each financial year. The head entity may also require payment of interim funding amounts to
assist with its obligations to pay tax instalments. The funding amounts are recognised as current intercompany receivables or payables.
b.
Income Tax Expense
Current tax
Deferred tax
Adjustments for current tax of prior periods
Petroleum Resource Rent Tax Expense
Deferred income tax expense / (revenue) included in income tax expense
comprises:
Decrease / (increase) in deferred tax assets (note 19)
(Decrease) / increase in deferred tax liabilities (note 23)
c.
Numerical reconciliation of income tax expense to prima facie tax payable
Profit from continuing operations before income tax
Income tax calculated at 30% (2012 - 30%)
Tax effect of amounts which are not deductible (taxable) in calculating taxable income:
Foreign tax loss not recognised
Net capital gains
Share based payment expense
Impairment expense
Income tax on PRRT
Sundry items
Under / (over) provided in prior year
Tax consolidation benefit
Petroleum Resource Rent Tax
Income tax expense
d. Tax expense relating to items of other comprehensive income
Cash flow hedges (note 27(a))
Available for sale financial assets (note 27(a))
53
2013
$000
48,593
6,587
(5,815)
(1,509)
47,856
2012
$000
63,897
(29,134)
(3,069)
-
31,694
1,135
3,943
5,078
(9,331)
(19,803)
(29,134)
121,984
198,819
36,595
59,646
164
-
131
15,413
453
(412)
52,344
(2,979)
-
(1,509)
47,856
21,537
105
21,642
-
75
365
11,757
-
1,094
72,937
(3,069)
(38,174)
-
31,694
3,097
7,418
10,515
53
ANNUAL REPORT & FINANCIAL STATEMENTS 2013NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2013
New Hope Corporation Limited and Controlled Entities
Notes to the financial statements
for the year ended 31st July 2013
2013
$000
2012
$000
9. DIVIDENDS - New Hope Corporation Limited
a. Ordinary dividend paid
2011 final dividend of 5.00 cents per share - 100% franked at a tax rate of 30% (paid on 8 Nov 2011)
2011 special dividend of 15.00 cents per share - 100% franked at a tax rate of 30% (paid on 8 Nov 2011)
2012 interim dividend of 6.00 cents per share - 100% franked at a tax rate of 30% (paid on 2 May 2012)
2012 final dividend at 5.00 cents per share - 100% franked at a tax rate of 30% (paid on 6 Nov 2012)
2012 special dividend at 20.00 cents per share - 100% franked at a tax rate of 30% (paid on 6 Nov 2012)
2013 interim dividend at 6.0 cents per share - 100% franked at a tax rate of 30% (paid on 1 May 2013)
Total dividends paid
-
-
-
41,526
166,106
49,834
257,466
41,512
124,534
49,825
-
-
-
215,871
b. Proposed dividends
In addition to the above dividends, since the end of the financial year, the Directors have declared a final dividend of 5.0 cents and a special
dividend of 5.0 cents per fully paid share, (2012 - 5.0 cents per share and 20.0 cents per share respectively). Both dividends are fully franked
based on tax paid at 30%. The aggregate amount of the proposed dividend expected to be paid on 5 November 2013 but not recognised as a
liability at year end is $83,072,000 (2012 - $207,632,000).
c. Franked dividends
The franked portions of the final dividends recommended after 31 July 2013 will be franked out of existing franking credits or out of franking
credits arising from the payment of income tax in the year ending 31 July 2013.
2013
$000
2012
$000
Franking credits available for subsequent financial years based on a tax rate of 30% (2012 - 30%)
565,512
632,772
The above amounts represent the balances of the franking accounts as at the end of the financial year, adjusted for franking credits that will
arise from the payment of provision for income tax, franking debits that will arise from the payment of dividends recognised as a liability at the
reporting date and franking credits that will arise from the receipt of dividends recognised as receivables at the reporting date.
The impact on the franking account of the dividend recommended by the Directors since year end, but not recognised as a liability at year end,
will be a reduction in the franking account of $35,602,000 (2012 - $88,985,000).
d. Dividend reinvestment plans
There were no dividend reinvestment plans in operation at any time during or since the end of the financial year.
10. CURRENT ASSETS - Cash and cash equivalents
Cash at bank and on hand
2013
$000
21,564
21,564
2012
$000
70,990
70,990
a. Cash at bank and on hand
Cash at bank and on hand includes deposits for which there is a short term identified use in the operating cashflows of the group, and attracts
interest at rates between 0% and 2.75% (2012 - 0% to 3.7%).
b. Risk exposure
Information about the Group's exposure to foreign exchange risk and credit risk is detailed in note 2.
54
54
ANNUAL REPORT & FINANCIAL STATEMENTS 2013NEW HOPE CORPORATION LIMITED AND CONTROLLED ENTITIES
New Hope Corporation Limited and Controlled Entities
Notes to the financial statements
for the year ended 31st July 2013
11. CURRENT ASSETS - Receivables
Trade receivables (a)
Other receivables (b)
Prepayments
2013
$000
35,801
16,072
6,032
57,905
2012
$000
4,017
10,104
3,003
17,124
a. Past due but not impaired
As of 31 July 2013, no trade receivables were past due but not impaired. These relate to customers who have no recent history of default.
b. Other receivables
These amounts relate to long service leave payments recoverable from the Coal Mining Industry Long Service Leave Fund, diesel fuel rebates
receivable and GST refunds receivable. None of these receivables are impaired or past due but not impaired.
c. Foreign exchange and interest rate risk
Information about the Group's exposure to foreign currency risk and interest rate risk in relation to trade and other receivables is provided in
note 2.
d. Fair value and credit risk
Due to the short term nature of these receivables, their carrying value is assumed to approximate their fair value.
Information about the Group's exposure to fair value and credit risk in relation to trade and other receivables is provided in note 2.
12. CURRENT ASSETS - Inventories
Coal stocks at cost
Raw materials and stores at cost
Inventory expense
a.
Inventories recognised as an expense during the year ended 31 July 2013 amounted to $240,732,000 (2012
- $239,961,000).
Write-downs of inventory to net realisable value recognised as an expense during the year amounted to $nil
(2012 - $nil)
13. CURRENT ASSETS - Held to maturity investments
Term Deposits
The term deposits are held to their maturity of less than one year and carry a weighted average fixed interest
rate of 4.54% (2012 - 5.10%). Due to their short-term nature their carrying value is assumed to approximate
their fair value. Information about the Group's exposure to credit risk is disclosed in note 2.
34,308
24,365
58,673
39,924
19,636
59,560
1,229,608
1,229,608
1,446,975
1,446,975
55
55
ANNUAL REPORT & FINANCIAL STATEMENTS 2013NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2013
New Hope Corporation Limited and Controlled Entities
Notes to the financial statements
for the year ended 31st July 2013
14. CURRENT ASSETS - Other
Security deposits
15. NON-CURRENT ASSETS - Receivables
Prepayments
Other receivables
Interest rate risk
a.
In both the current and prior year all non-current receivables are non-interest bearing.
b. Fair value of receivables
The fair value of receivables approximates their carrying amounts. None of the non-current receivables are
impaired or past due but not impaired.
16. NON-CURRENT ASSETS - Available for sale financial assets
Listed securities
Equity securities
Unlisted securities
Equity securities
An impairment expense of $38,091,000 (2012 - $5,804,000) has been recognised on listed equity securities
held and is included in other expenses at note 7.
17. NON-CURRENT ASSETS - Property, plant and equipment
Land and buildings - non-mining
Freehold land at cost
Buildings at cost
Accumulated depreciation
Leasehold improvements
Accumulated depreciation
Total land and buildings - non-mining
Land and buildings - held for mining
Freehold land at cost
Buildings at cost
Accumulated depreciation
Total land and buildings - held for mining
Plant and equipment
Plant and equipment at cost
Accumulated depreciation
56
56
2013
$000
614
614
1,244
1,531
2,775
2012
$000
299
299
1,759
7,449
9,208
30,212
73,137
3
30,215
3
73,140
1,049
8,930
(1,099)
7,831
384
(80)
304
9,184
132,766
5,495
(997)
4,498
137,264
1,049
8,957
(838)
8,119
-
-
-
9,168
127,770
5,620
(874)
4,746
132,516
551,031
(251,801)
299,230
478,725
(217,010)
261,715
ANNUAL REPORT & FINANCIAL STATEMENTS 2013NEW HOPE CORPORATION LIMITED AND CONTROLLED ENTITIES
New Hope Corporation Limited and Controlled Entities
Notes to the financial statements
for the year ended 31st July 2013
17. NON-CURRENT ASSETS - Property, plant and equipment (continued)
Motor vehicles
Motor vehicles at cost
Accumulated depreciation
Mining reserves and leases
Mining reserves and leases at cost
Accumulated amortisation
Mine properties, mine development
Mine properties, mine development at cost
Accumulated amortisation
Oil Producing assets
Oil Producing assets at cost
Accumulated amortisation
Plant and equipment under construction
Total Property, plant and equipment
Reconciliations
Land and buildings - non-mining
Carrying amount at beginning of year
Additions
Disposals
Depreciation
Transfers in / (out)
Carrying amount at end of year
Land and buildings - held for mining
Carrying amount at beginning of year
Additions
Disposals
Depreciation
Transfers in / (out)
Carrying amount at end of year
Plant and equipment
Carrying amount at beginning of year
Additions
Additions on acquisition of subsidiary
Disposals
Depreciation
Transfers in / (out)
Carrying amount at end of year
Motor vehicles
Carrying amount at beginning of year
Additions
Disposals
Depreciation
Transfers in / (out)
Carrying amount at end of year
37
57
2013
$000
2012
$000
6,784
(3,765)
3,019
230,710
(7,713)
222,997
59,286
(47,623)
11,663
62,483
(1,051)
61,432
19,248
5,717
(2,951)
2,766
228,297
(7,379)
220,918
59,286
(42,923)
16,363
-
-
-
15,756
764,037
659,202
9,168
383
(40)
(340)
13
9,184
132,516
4,946
(165)
(73)
40
137,264
261,715
22,512
1,118
(880)
(39,432)
54,197
299,230
2,766
-
(184)
(1,284)
1,697
2,995
8,544
-
-
(264)
888
9,168
115,660
16,966
-
(156)
46
132,516
265,981
89
-
(27)
(34,992)
30,664
261,715
2,653
53
(342)
(1,150)
1,552
2,766
57
ANNUAL REPORT & FINANCIAL STATEMENTS 2013NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2013
New Hope Corporation Limited and Controlled Entities
Notes to the financial statements
for the year ended 31st July 2013
17. NON-CURRENT ASSETS - Property, plant and equipment (continued)
Note
2013
$000
2012
$000
Reconciliations (continued)
Mining reserves and leases
Carrying amount at beginning of year
Additions
Amortisation
Carrying amount at end of year
Mine properties and mine development
Carrying amount at beginning of year
Amortisation
Carrying amount at end of year
Oil Producing assets
Carrying amount at beginning of year
Additions
Additions on acquisition of subsidiary
Amortisation
Transfers in / (out)
Carrying amount at end of year
Plant and equipment under construction
Carrying amount at beginning of year
Additions
Transfers in / (out)
Carrying amount at end of year
18. NON-CURRENT ASSETS - Exploration and evaluation
Exploration and evaluation at cost
Reconciliation
Carrying amount at beginning of year
Additions
Additions on acquisition of subsidiary
Disposals
Carrying amount at end of year
19. NON-CURRENT ASSETS - Deferred tax assets
The balance comprises temporary differences attributed to :
Amounts recognised in profit and loss
Accrued expenses
Employee benefits
Mine site rehabilitation provision
Tax Losses
Other
Amounts recognised directly in equity
Cashflow hedges
37
37
220,918
2,412
(333)
222,997
16,363
(4,700)
11,663
-
14,971
47,512
(1,051)
-
61,432
221,280
-
(362)
220,918
22,409
(6,046)
16,363
-
-
-
-
-
`
15,756
61,575
(58,083)
19,248
27,674
21,744
(33,662)
15,756
77,210
77,210
39,228
21,175
16,807
-
77,210
916
9,634
13,545
9,563
3,095
36,753
12,428
39,228
39,228
8,085
31,143
-
39,228
90
6,047
11,408
8,563
5,091
31,199
-
Set-off of deferred tax liabilities pursuant to set-off provisions (note 23)
Net deferred tax assets
(49,182)
-
(31,199)
-
58
58
ANNUAL REPORT & FINANCIAL STATEMENTS 2013NEW HOPE CORPORATION LIMITED AND CONTROLLED ENTITIES
New Hope Corporation Limited and Controlled Entities
Notes to the financial statements
for the year ended 31st July 2013
19. NON-CURRENT ASSETS - Deferred tax assets (continued)
Movements
Carrying amount at beginning of year
Credited / (charged) to the income statement (note 8(b))
Charged / (credited) to equity
Amounts recognised on acquisition of subsidiary
Carrying amount at end of year
Deferred tax assets to be recovered after more than 12 months
Deferred tax assets to be recovered within 12 months
20. NON-CURRENT ASSETS - Intangibles
Software
Software at cost (i)
Accumulated amortisation
Goodwill
Goodwill at cost
Total Intangibles
Reconciliation
Software (i)
Carrying amount at beginning of year
Additions
Transfers in / (out)
Amortisation (ii)
Carrying amount at end of year
2013
$000
2012
$000
31,199
(1,135)
12,428
6,690
49,182
44,208
4,974
49,182
12,538
(8,599)
3,939
22,024
22,024
25,963
2,932
156
2,137
(1,285)
3,939
13,305
9,331
-
8,563
31,199
30,505
694
31,199
10,246
(7,314)
2,932
17,867
17,867
20,799
3,494
-
512
(1,074)
2,932
(i) Software includes capitalised development costs, being an intangible asset.
(ii) Amortisation is included in cost of sales in profit or loss.
Goodwill
Carrying amount at beginning of year
Acquisition of subsidiary
Impairment expense (i)
Carrying amount at end of year
37
17,867
4,157
-
22,024
51,254
-
(33,387)
17,867
(i) Impairment relates to goodwill previously recognised on the acquisition of Northern Energy Corporation Limited.
Brought forward goodwill relates to the acquisition of Northern Energy Corporation Limited. The increase in goodwill in the current year
relates to the acquisition of Bridgeport Energy Limited (Bridgeport) in an arm's length transaction.
The recoverable amount of the NEC cash generating units have been based on fair values less cost to sell. This assessment is based on
observable external market data for reserve and resource trading and transaction multiples, and is based on similar coal exploration
companies. The Bridgeport recoverable amount of the cash generating units have been based on fair value less cost to sell. These
calculations used a post-tax cash flow projection over the remaining life of the fields (8 - 11 years) discounted using a post-tax nominal
discount rate, average long term oil price of approximately US$108/bbl and an AUD/USD exchange rate of $0.88. The equivalent pre-
discount tax rate is 13%. These assumptions are consistent with external sources of information.
59
59
ANNUAL REPORT & FINANCIAL STATEMENTS 2013NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2013
New Hope Corporation Limited and Controlled Entities
Notes to the financial statements
for the year ended 31st July 2013
21. CURRENT LIABILITIES - Accounts payable
Trade payables and accruals
22. CURRENT LIABILITIES - Financing Arrangements
a. Financing arrangements
Unrestricted access was available at balance date to the following lines of credit:
Total facilities
Other facilities (i)
Used at balance date
Other facilities
Unused at balance date
Other facilities
(i)
Other facilities are only in relation to bank guarantees, are unsecured, for no fixed term and bear variable
rates.
b. Guarantees
The parent entity has given unsecured guarantees in respect of:
(i) Mining restoration and rehabilitation
The liability has been recognised by the consolidated entity in relation to its rehabilitation obligations. See
notes 24, 25 and 1(aa).
2013
$000
2012
$000
46,758
46,758
40,460
40,460
75,000
75,000
63,101
63,101
11,899
11,899
85,317
85,317
61,635
61,635
23,682
23,682
38,230
37,474
(ii) Statutory body suppliers
24,871
24,161
No liability was recognised by the consolidated entity in relation to these guarantees as no losses are
foreseen on these contingent liabilities.
23. NON-CURRENT LIABILITIES - Deferred tax liabilities
The balance comprises temporary differences attributed to:
Amounts recognised in profit and loss
Other accounts receivable
Inventories
Capitalised exploration
Property plant and equipment
Mine reserves
Arising on Petroleum Rent Resource Tax
Other
Amounts recognised directly in other comprehensive income
Cash flow hedges
Property plant and equipment
Available for sale financial assets
Total deferred tax liabilities
Set-off of deferred tax assets pursuant to set-off provisions (note 19)
Net deferred tax liabilities
60
60
295
5,989
14,789
14,951
66,899
4,701
2,131
109,755
-
7,160
-
7,160
7,257
5,170
4,542
14,401
66,275
-
96
97,741
9,109
7,160
106
16,375
116,915
114,116
(49,182)
67,733
(31,199)
82,917
ANNUAL REPORT & FINANCIAL STATEMENTS 2013NEW HOPE CORPORATION LIMITED AND CONTROLLED ENTITIES
New Hope Corporation Limited and Controlled Entities
Notes to the financial statements
for the year ended 31st July 2013
23. NON-CURRENT LIABILITIES - Deferred tax liabilities (continued)
Carrying amount at beginning of year
Charged / (credited) to the income statement (note 8(b))
Charged / (credited) to other comprehensive income (note 8(d))
Amounts recognised on acquisition of subsidiary
Carrying amount at end of year
Deferred tax liabilities to be settled after more than 12 months
Deferred tax liabilities to be settled within 12 months
24. CURRENT LIABILITIES - Provisions
Employee benefits (c)
Mining restoration and rehabilitation (note 1(aa))
Native title claim
a. Mining restoration and rehabilitation
Current
Non-current
Movements
Carrying amount at beginning of year
Additional provision recognised
Carrying amount at end of year
2013
$000
2012
$000
114,116
3,943
(9,215)
8,071
116,915
110,631
6,284
116,915
25,616
6,415
117
32,148
6,415
42,093
48,508
38,027
10,481
48,508
135,871
(19,803)
(10,515)
8,563
114,116
101,689
12,427
114,116
22,830
6,015
-
28,845
6,015
32,012
38,027
19,818
18,209
38,027
b. Amounts not expected to be settled within the next 12 months
Long service leave obligations expected to be settled after 12 months
6,619
4,931
c.
The current provision for employee benefits includes accrued annual leave, vested sick leave and long service leave for all unconditional
settlements where employees have completed the required period of service and also those where employees are entitled to pro-rata
payment in certain circumstances. The entire amount is presented as current, since the group does not have an unconditional right to defer
settlement. However, based on past experience, the Group does not expect all employees to take the full amount of accrued long service
leave or require payment within the next 12 months.
25. NON-CURRENT LIABILITIES - Provisions
Employee benefits
Mining restoration and rehabilitation (note 1(aa))
Native title claim
2013
$000
3,004
42,093
20
45,117
2012
$000
3,779
32,012
-
35,791
61
61
ANNUAL REPORT & FINANCIAL STATEMENTS 2013NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2013
New Hope Corporation Limited and Controlled Entities
Notes to the financial statements
for the year ended 31st July 2013
a.
26. CONTRIBUTED EQUITY
Ordinary shares
Ordinary shares entitle the holder to participate in dividends and the proceeds on winding up of the company in proportion to the number of
and amounts paid on the shares held. On a show of hands every holder of ordinary shares present at a meeting in person or by proxy is
entitled to one vote, and upon a poll each share is entitled to one vote.
Ordinary shares have no par value and the company does not have a limited amount of authorised capital.
b.
Rights
Information relating to the New Hope Corporation Employee Performance Rights Share Plan, including details of rights granted, vested and
lapsed during the financial year and rights outstanding at the end of the financial year, is set out in note 36.
c. Share Capital
Issued and paid up capital
d.
Movements in share capital
2013
No. of shares
2013
2012
$000 No. of shares
2012
$000
830,563,352
93,342
830,411,534
92,509
Date
1 August 2011
1 January 2012
31 July 2012
Details
Opening Balance
Vesting of performance rights
Transfer from SBP reserve to Equity (note 27(a))
Number of
Shares
830,230,549
Issue
Price
180,985
$0.0000
31 July 2012
Balance
830,411,534
1 August 2012
1 December 2012
31 July 2013
Vesting of performance rights
Vesting of performance rights
Transfer from SBP reserve to Equity (note 27(a))
115,281
36,537
$0.0000
$0.0000
31 July 2013
Balance
830,563,352
$000
91,500
-
1,009
92,509
833
93,342
e.
Capital risk management
The Group's objectives when managing capital are to safeguard their ability to continue as a going concern, so that they can continue to
provide returns for shareholders and benefits for other stakeholders and to maintain an optimal capital structure to reduce the cost of
capital.
In order to maintain or adjust the capital structure, the Group may adjust the amount of dividends paid to shareholders, return capital to
shareholders, issue new shares, or source debt to fund growth projects.
27. RESERVES
a. Reserves
Capital profits
Available-for-sale investments revaluation
Property, plant and equipment revaluation
Hedging
Share-based payments
Premium paid on non-controlling interest acquisition
62
62
2013
$000
2012
$000
1,343
644
27,412
(29,000)
1,642
(6,029)
(3,988)
1,343
5,373
27,412
21,255
1,216
(6,029)
50,570
ANNUAL REPORT & FINANCIAL STATEMENTS 2013NEW HOPE CORPORATION LIMITED AND CONTROLLED ENTITIES
New Hope Corporation Limited and Controlled Entities
Notes to the financial statements
for the year ended 31st July 2013
Note
2013
$000
2012
$000
27. RESERVES (continued)
a. Reserves (continued)
Movements
Capital profits
Carrying amount at beginning of year
Carrying amount at end of year
Available for sale investments revaluation
Carrying amount at beginning of year
Revaluation - gross
Revaluation - deferred tax
Carrying amount at end of year
Property, plant and equipment revaluation
Carrying amount at beginning of year
Carrying amount at end of year
Hedging
Carrying amount at beginning of year
Transfer to net profit - gross
Transfer to net profit - deferred tax
Revaluation - gross
Revaluation - deferred tax
Carrying amount at end of year
Share-based payment
Carrying amount at beginning of year
Share based payment expense
Transfer to contributed equity
Carrying amount at end of year
Premium paid on non-controlling interest acquisition
Carrying amount at beginning of year
Acquisition of subsidiary - Northern Energy Corporation Limited
Carrying amount at end of year
8(d)
8(d)
8(d)
30(c)
26(d)
1,343
1,343
5,373
(4,834)
105
644
1,343
1,343
16,615
(18,660)
7,418
5,373
27,412
27,412
27,412
27,412
21,255
(14,901)
4,470
(56,891)
17,067
(29,000)
1,216
1,259
(833)
1,642
(6,029)
-
(6,029)
28,481
(25,620)
7,686
15,297
(4,589)
21,255
-
2,225
(1,009)
1,216
-
(6,029)
(6,029)
63
63
ANNUAL REPORT & FINANCIAL STATEMENTS 2013NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2013
New Hope Corporation Limited and Controlled Entities
Notes to the financial statements
for the year ended 31st July 2013
27. RESERVES (continued)
a. Reserves (continued)
Nature and purpose of reserves
Capital profits
This reserve represents amounts allocated from retained profits that were profits of a capital nature.
Available for sale investments revaluation
Changes in the fair value of investments classified as available for sale financial assets are taken to this reserve, as described in note 1(n).
Amounts are recognised in profit and loss when the associated assets are sold or impaired.
Property, plant and equipment revaluation
This reserve represents the revaluation arising on the fair value uplift of property, plant and equipment on the initial holding of Queensland
Bulk Handling Pty Ltd further to the acquisition of the remaining 50% of this company.
Hedging
The hedging reserve is used to record the gains and losses on a hedging instrument in a cash flow hedge that are recognised directly in
equity, as described in note 1(o). Amounts are recognised in profit and loss when the associated hedged transaction affects profit and loss.
Share based payment reserve
The share based payment reserve is used to recognise the fair value of options and rights issued, but not yet exercised.
Premium paid on non-controlling interest acquisition
The premium paid on non-controlling interest acquisition is used to recognise any excess paid on the acquisition of a non-controlling interest
in a subsidiary.
b. Retained profits
Carrying amount at beginning of year
Net profit after income tax
Dividends paid (note 9)
Carrying amount at end of year
2013
$000
2012
$000
2,109,104
74,129
(257,466)
1,925,767
2,157,849
167,126
(215,871)
2,109,104
28. CONTINGENT LIABILITIES
Details and estimates of maximum amounts of contingent liabilities for which no provision is included in the
accounts, are as follows:
Controlled entities
The bankers of the consolidated entity have issued undertakings and guarantees to the Department of
Natural Resources and Mines, Statutory Power Authorities and various other entities.
The bankers of the consolidated entity have issued undertakings and guarantees in relation to stages 1 and
2 of the Wiggins Island Coal Export Terminal expansion project and expansion of rail facilities.
No losses are anticipated in respect of any of the above contingent liabilities.
14,822
14,857
10,049
10,317
29. COMMITMENTS
a. Capital commitments
Capital expenditure contracted for at the reporting date but not recognised as liabilities is as follows:
Property plant and equipment
Within one year
Later than one year but not later than five years
Later than five years
9,885
-
-
9,885
7,334
-
-
7,334
64
64
ANNUAL REPORT & FINANCIAL STATEMENTS 2013NEW HOPE CORPORATION LIMITED AND CONTROLLED ENTITIES
New Hope Corporation Limited and Controlled Entities
Notes to the financial statements
for the year ended 31st July 2013
29. COMMITMENTS (continued)
b. Lease commitments: Group as lessee
(i) Non-cancellable operating leases
The Group leases port facilities under non-cancellable operating leases expiring within one to fifteen
years. The leases have varying terms, escalation clauses and renewal rights. On renewal, the terms of
the leases are renegotiated.
Commitments for minimum lease payments in relation to non-cancellable operating leases are payable as
follows:
Within one year
Later than one year but not later than five years
Later than five years
2013
$000
2012
$000
3,497
15,508
48,012
67,017
3,095
14,491
52,141
69,727
30. KEY MANAGEMENT PERSONNEL DISCLOSURES
a. Directors
The following persons were Directors of New Hope Corporation Limited during the financial year:
Chairman - non-executive
Mr R.D. Millner
Non executive Directors
Mr P.R. Robinson
Mr D.J. Fairfull
Mr W.H. Grant
Ms S. Palmer
Mr I.Williams
Executive Directors
Mr R.C. Neale
Commenced 1 November 2012
Commenced 1 November 2012
Chief Executive Officer and Managing Director
b. Other key management personnel
The following persons also had authority and responsibility for planning, directing and controlling the activities of the Group, directly or indirectly,
during the financial year:
Name
Mr S.O. Stephan
Mr B.D. Denney
Mr M. J. Busch
Position
Chief Financial Officer
Chief Operations Officer
Financial Controller and Company Secretary
c. Key management personnel compensation
Short-term employee benefits
Long-term employee benefits
Post employment benefits
Share based payment
Employer
New Hope Corporation Limited
New Hope Corporation Limited
New Hope Corporation Limited
2013
$
5,150,919
31,055
140,756
1,259,370
6,582,100
2012
$
6,457,823
30,821
128,365
2,151,608
8,768,617
Detailed remuneration disclosures can be found in sections (a) to (f) of the remuneration report on pages 14 to 20.
65
65
ANNUAL REPORT & FINANCIAL STATEMENTS 2013NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2013
New Hope Corporation Limited and Controlled Entities
Notes to the financial statements
for the year ended 31st July 2013
30. KEY MANAGEMENT PERSONNEL DISCLOSURES (continued)
d. Equity instrument disclosures relating to key management personnel (continued)
(i)
Options and rights provided as remuneration and shares issued on exercise of such options and rights
Details of options and rights provided as remuneration and shares issued on the exercise of such options and rights, together with the terms
and conditions, can be found in section (d) of the remuneration report on pages 13 to 20.
(iii)
Rights holdings
The numbers of rights over ordinary shares in the Company held during the financial year by each Director of New Hope Corporation
Limited and other key management personnel of the Group, including their personally related entities are as follows:
Movements during the year
Purchased /
(Sold)
Granted
Exercised
Closing
balance
Vested &
exercisable
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(116,311)
303,423
(18,472)
(8,010)
(9,025)
90,219
68,873
55,687
-
-
-
-
-
-
-
-
-
(165,925)
262,783
(10,040)
-
(5,020)
63,848
32,040
31,080
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Directors of New Hope Corporation Ltd - 2013
Mr R.D. Millner
Mr P.R. Robinson
Mr D.J. Fairfull
Mr W.H. Grant
Ms S. Palmer
Mr I.Williams
Mr R.C. Neale
Opening
balance
-
-
-
-
-
-
-
-
-
-
-
-
262,783
156,951
Other key management personnel of the Group - 2013
Mr S.O. Stephan
Mr B.D. Denney
Mr M.J. Busch
63,848
32,040
31,080
44,843
44,843
33,632
Directors of New Hope Corporation Ltd - 2012
Mr R.D. Millner
Mr P.R. Robinson
Mr D.J. Fairfull
Mr D.C. Williamson
Mr W.H. Grant
Mr R.C. Neale
-
-
-
-
-
-
Other key management personnel of the Group - 2012
-
-
-
Mr S.O. Stephan
Mr B.D. Denney
Mr M.J. Busch
-
-
-
-
-
428,708
73,888
32,040
36,100
66
66
ANNUAL REPORT & FINANCIAL STATEMENTS 2013NEW HOPE CORPORATION LIMITED AND CONTROLLED ENTITIES
New Hope Corporation Limited and Controlled Entities
Notes to the financial statements
for the year ended 31st July 2013
30. KEY MANAGEMENT PERSONNEL DISCLOSURES (continued)
d.
(iv)
Equity instrument disclosures relating to key management personnel (continued)
Share holdings
The number of shares in the company held during the financial year by each Director of New Hope Corporation Limited and other key
management personnel of the Group, including their personally related parties, is set out below. There were no shares granted during the
reporting period as compensation.
Opening
balance
Purchased /
(sold)
Movements during the year
Received
from rights or
options
exercised
Directors of New Hope Corporation Ltd - 2013
Mr R.D. Millner
Mr P.R. Robinson
Mr D.J. Fairfull
Mr W.H. Grant
Ms S. Palmer
Mr I.Williams
Mr R.C. Neale
Other key management personnel of the Group - 2013
Mr S.O. Stephan
Mr B.D. Denney
Mr M.J. Busch
Directors of New Hope Corporation Ltd - 2012
Mr R.D. Millner
Mr P.R. Robinson
Mr D.J. Fairfull
Mr D.C. Williamson
Mr W.H. Grant
Mr R.C. Neale
Other key management personnel - 2012
Mr S.O. Stephan
Mr B.D. Denney
Mr M.J. Busch
3,681,962
109,234
11,000
30,000
-
-
2,171,425
10,040
-
655,020
3,670,573
109,234
11,000
20,000
30,000
2,005,500
-
-
650,000
-
10,000
-
-
-
-
-
14,200
-
-
11,389
-
-
-
-
-
-
-
-
-
-
-
-
-
-
116,311
18,472
8,010
9,025
-
-
-
-
-
165,925
10,040
-
5,020
Other
Closing
balance
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
3,681,962
119,234
11,000
30,000
-
-
2,287,736
42,712
8,010
664,045
3,681,962
109,234
11,000
20,000
30,000
2,171,425
10,040
-
655,020
e. Other transactions of key management personnel
Mr D.J. Fairfull is a Director of New Hope Corporation Limited. Mr Fairfull also had an interest in Pitt Capital Partners Limited which acted
as Financial Advisor to the Company for various corporate transactions during the 2013 and 2012 financial years. All transactions are at
prices similar to those with other customers.
Mr K.P. Standish is a Director of certain subsidiaries of New Hope Corporation Limited. Mr Standish is a partner in the firm Campbell
Standish Partners Solicitors which has provided legal services to New Hope Corporation Limited and its subsidiaries for several years. All
transactions are at prices similar to those with other customers.
67
67
ANNUAL REPORT & FINANCIAL STATEMENTS 2013NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2013
New Hope Corporation Limited and Controlled Entities
Notes to the financial statements
for the year ended 31st July 2013
30. KEY MANAGEMENT PERSONNEL DISCLOSURES (continued)
e. Other transactions of key management personnel (continued)
Aggregate amounts of each of the above types of transactions with key management personnel were as follows:
Legal advice
Financial advice fees paid
f. Loans to key management personnel
No loans have been made available to the key management personnel of the Group.
31. RELATED PARTY TRANSACTIONS
a. Parent entities
2013
$
900,885
579,871
2012
$
984,556
1,120,870
The parent entity within the Group is New Hope Corporation Limited. The ultimate Australian parent entity and controlling entity is
Washington H. Soul Pattinson & Company Limited (WHSP) which at 31st July 2013 owned 59.68% (2012 - 59.69%) of the issued ordinary
shares of New Hope Corporation Limited.
b. Key management personnel
Disclosures relating to key management personnel are set out in note 30.
c. Transactions with related parties
Other transactions
Dividends paid to ultimate Australian controlling entity (WHSP)
2013
$
2012
$
153,665,890
128,881,069
d.
Outstanding balances arising from sales / purchases of goods and services
No provision for impairment of receivables has been raised to any outstanding balances. An impairment expense of $nil (2012 - $nil) has
been recognised in the books of the parent entity in respect of amounts owing from subsidiaries. This has no effect on the Group result.
e. Terms and conditions
Transactions relating to dividends were on the same terms and conditions that applied to other shareholders.
32. REMUNERATION OF AUDITORS
During the year the following fees were paid or payable for services provided by the auditor of the parent
entity, its related practices and non-related audit firms:
a. Audit services
PricewaterhouseCoopers Australian firm for audit and review of financial reports and
other audit work under the Corporations Act 2001
Non PricewaterhouseCoopers audit firms for the audit or review of financial reports of
any entity in the Group
Total remuneration for audit services
b. Other services
PricewaterhouseCoopers Australian firm
Transaction tax & advisory services
General advisory services
Tax compliance services
Tax compliance services - MRRT
Tax compliance services - PRRT
Research and development compliance services
Non PricewaterhouseCoopers firms
Taxation services
Total remuneration for other services
Total auditors' remuneration
68
68
2013
$
2012
$
355,629
279,232
-
-
355,629
279,232
421,090
63,397
160,752
192,670
43,795
270,348
908,441
266,971
217,272
419,498
-
282,984
-
-
1,152,052
2,095,166
1,507,681
2,374,398
ANNUAL REPORT & FINANCIAL STATEMENTS 2013NEW HOPE CORPORATION LIMITED AND CONTROLLED ENTITIES
New Hope Corporation Limited and Controlled Entities
Notes to the financial statements
for the year ended 31st July 2013
33. RECONCILIATION OF NET CASH INFLOW / (OUTFLOW)
FROM OPERATING ACTIVITIES TO PROFIT AFTER INCOME TAX
Profit after income tax
Depreciation and amortisation
Non-cash employee benefit expense - share based payments
Impairment costs of associates
Impairment costs of available for sale assets
Impairment costs of goodwill
Net foreign exchange (gain) / loss
Fair value adjustment on acquisition of subsidiary
Net (profit) / loss on sale of non-current assets
Investment interest income
Income taxes paid
Income tax expense in accounts
Share of (profits) / losses of associates
Changes in operating assets and liabilities
(Increase) / decrease in debtors
Increase / (decrease) in creditors
(Increase) / decrease in other receivables
(Increase) / decrease in other assets
(Increase) / decrease in inventories
Increase / (decrease) in provisions and employee entitlements
(Increase) / decrease in prepayments
Net cash provided by operating activities
34. EARNINGS PER SHARE
a.
b.
Basic earnings per share from continuing operations attributable to ordinary equity holders of
the Company
Diluted earnings per share from continuing operations attributable to ordinary equity holders of
the Company
2013
$000
2012
$000
74,128
48,484
1,259
13,286
38,091
-
(2,893)
(4,109)
(219)
(60,594)
(42,345)
47,856
386
(33,727)
750
(3,385)
1,406
974
16,156
(2,866)
92,638
167,125
44,044
1,216
-
5,804
33,387
4,180
-
(149)
(86,650)
(208,516)
31,694
647
36,144
(4,696)
(7,906)
1,186
3,848
22,752
(1,085)
43,025
Earnings per share (cents)
2012
2013
8.9
8.9
20.1
20.1
Basic and Diluted
2013
$000
2012
$000
c. Reconciliation of adjusted profits
Profit from continuing operations attributable to the ordinary equity holders of the Company
74,129
167,126
d. Weighted average number of shares used as the denominator
Weighted average number of ordinary shares (basic)
Rights
Weighted average number of ordinary shares (diluted)
Consolidated
2013
2012
830,551,140
326,839
830,877,979
830,335,876
349,853
830,685,729
e.
Rights granted to employees are considered to be potential ordinary shares and have been included in the determination of diluted earnings
per share to the extent to which they are dilutive. The rights have not been included in the determination of basic earnings per share.
Details relating to the rights are set out in note 36.
69
69
ANNUAL REPORT & FINANCIAL STATEMENTS 2013NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2013
New Hope Corporation Limited and Controlled Entities
Notes to the financial statements
for the year ended 31st July 2013
35. DERIVATIVE FINANCIAL INSTRUMENTS
CURRENT ASSETS
Forward foreign exchange contracts
NON-CURRENT ASSETS
Forward foreign exchange contracts
CURRENT LIABILITIES
Forward foreign exchange contracts
NON-CURRENT LIABILITIES
Forward foreign exchange contracts
2013
$000
2012
$000
-
-
29,721
11,707
20,393
9,971
-
-
a.
Instruments used by the Group
New Hope Corporation Limited and certain of its controlled entities are parties to derivative financial instruments in the normal course of
business in order to hedge exposure to fluctuations in foreign exchange rates. These instruments are used in accordance with the Group's
financial risk management policies (refer to note 2).
The portion of the gain or loss on the hedging instrument that is determined to be an effective hedge is recognised directly in equity. When
the cash flows occur, the Group reclassifies the gain or loss into the income statement.
At balance date these contracts was a liability with a fair value of $41,428,000 (2012 - asset with a fair value of $30,364,000).
At balance date the details of outstanding contracts are:
Maturity
0 to 6 months
6 to 12 months
1 to 2 years
2 to 5 years
b. Credit risk exposures
Buy Australian Dollars
Average exchange rate
2013
$000
129,884
121,122
130,854
45,955
427,815
2012
$000
106,225
83,397
29,483
84,568
303,673
2013
2012
1.00090
0.98250
0.94760
0.84870
0.93198
0.91130
0.91579
0.86321
Credit risk also arises from the potential failure of counterparties to meet their obligations under the respective contracts at maturity. A
material exposure arises from forward exchange contracts and the consolidated entity is exposed to loss in the event that counterparties fail
to deliver the contracted amount. At balance date $427,815,147 (2012 - $303,673,000) was receivable (AUD equivalents).
36. SHARE-BASED PAYMENTS
Rights are granted under the New Hope Corporation Limited Employee Performance Rights Share Plan. Membership of the Plans is open to
those senior employees and those Directors of New Hope Corporation Limited, its subsidiaries and associated bodies corporate whom the
Directors believe have a significant role to play in the continued development of the Group's activities.
Rights are granted for no consideration. Rights will vest and automatically convert to ordinary shares in the company following the satisfaction
of the relevant service conditions. Service conditions applicable to each issue of rights are determined by the board at the time of grant. Total
expense arising from rights issued under the employee performance share rights plan during the financial year was $1,259,000 (2012 -
$2,225,000).
70
70
ANNUAL REPORT & FINANCIAL STATEMENTS 2013NEW HOPE CORPORATION LIMITED AND CONTROLLED ENTITIES
New Hope Corporation Limited and Controlled Entities
Notes to the financial statements
for the year ended 31st July 2013
36. SHARE-BASED PAYMENTS (continued)
Rights
Set out below are the summaries of rights granted under the plan:
Grant date
Vesting Date
Value of Right
at Grant Date
Balance at
beginning of
the year
Number
Granted
during the
year
Number
Vested during
the year
Number
Expired
during the
year
Number
Balance at the
end of the
year
Number
2013
27 Oct 2011
27 Oct 2011
27 Oct 2011
17 Dec 2011
17 Dec 2011
17 Dec 2011
17 Dec 2011
17 Dec 2011
28 Nov 2012
28 Nov 2012
28 Nov 2012
28 Nov 2012
Total
1 Aug 2012
1 Aug 2013
1 Aug 2014
1 Aug 2012
1 Dec 2012
1 Aug 2013
1 Aug 2014
1 Aug 2015
1 Aug 2013
1 Aug 2014
1 Aug 2015
1 Aug 2016
$5.170
$5.170
$5.170
$6.020
$6.020
$6.020
$6.020
$6.020
$4.140
$4.140
$4.140
$4.140
94,834
64,059
39,458
20,447
36,537
56,984
56,985
20,447
-
-
-
-
-
-
-
-
-
-
-
-
30,830
30,830
30,830
30,828
(94,834)
-
-
(20,447)
(36,537)
-
-
-
-
-
-
-
389,751
123,318
(151,818)
Weighted average exercise price
4.1400
5.4890
2012
27 Oct 2011
27 Oct 2011
27 Oct 2011
27 Oct 2011
17 Dec 2011
17 Dec 2011
17 Dec 2011
17 Dec 2011
17 Dec 2011
Total
1 Jan 2012
1 Aug 2012
1 Aug 2013
1 Aug 2014
1 Aug 2012
1 Dec 2012
1 Aug 2013
1 Aug 2014
1 Aug 2015
$5.170
$5.170
$5.170
$5.170
$6.020
$6.020
$6.020
$6.020
$6.020
Weighted average exercise price
-
-
-
-
-
-
-
-
-
-
180,985
94,834
64,059
39,458
20,447
36,537
56,984
56,985
20,447
(180,985)
-
-
-
-
-
-
-
-
570,736
(180,985)
5.4551
5.1700
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
64,059
39,458
-
-
56,984
56,985
20,447
30,830
30,830
30,830
30,828
361,251
5.1347
-
94,834
64,059
39,458
20,447
36,537
56,984
56,985
20,447
389,751
5.5874
The weighted average share price at the date of exercise of rights vested during the 2013 year was $4.02 (2012 - $5.57). The weighted
average remaining contractual life of share rights outstanding at the end of the period was 2.2 years (2012 - 1.7 years).
71
71
ANNUAL REPORT & FINANCIAL STATEMENTS 2013NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2013
New Hope Corporation Limited and Controlled Entities
Notes to the Financial Statements
for the year ended 31st July 2013
37. BUSINESS COMBINATION
a. Summary of acquisition
On 1 August 2012, New Hope Corporation Limited's wholly owned subsidiary, Mattvale Pty Ltd, acquired 69.62% of the issued share capital
and options on issue of Bridgeport Energy Limited. Bridgeport Energy Limited is an oil and gas exploration company with interests in a
portfolio of projects in Queensland that are being progressed towards development.
Details of the purchase consideration and the net assets acquired are as follows:
Purchase consideration (refer to b. below):
Previously held interest
Cash paid - current year
Gain on previously held interest to 0.41 cents per share
Total purchase consideration
The assets and liabilities recognised as a result of the acquisition are as follows:
$000
18,876
45,488
4,109
68,473
Fair value
38
Cash
Trade receivables
Held to maturity investments
Other receivables and prepayments
Inventory
Oil producing assets
Exploration assets
Property, plant and equipment
Accounts payables
Provisions
Deferred tax liabilities
Net identifiable assets acquired
Add: goodwill
Net assets acquired
$000
1,228
685
838
157
87
47,512
16,807
1,118
(968)
(1,768)
(1,380)
64,316
4,157
68,473
Goodwill arising on consolidation of $4,156,952 is calculated in accordance with the requirement in IFRS to recognise a deferred tax liability
on the difference between the fair value of newly consolidated assets and liabilities and their tax base. None of the goodwill is expected to
be deductible for tax purposes.
(ii) Revenue and profit contribution
The acquired business contributed revenues of $6,074,501 and net loss before tax of $1,874,172 to the Group for the period from 1 August
2012 to 31 July 2013.
b. Purchase consideration
Outflow of cash to acquire subsidiary, net of cash acquired
Total cash consideration
Less: Balances acquired
Cash
Outflow of cash - investing activities
$000
45,488
(1,228)
44,260
Acquisition related costs
Acquisition costs of $3,198,664 are included in other expenses in profit or loss and in operating cash flows in the statement of cash flows.
72
72
ANNUAL REPORT & FINANCIAL STATEMENTS 2013NEW HOPE CORPORATION LIMITED AND CONTROLLED ENTITIES
New Hope Corporation Limited and Controlled Entities
Notes to the financial statements
for the year ended 31st July 2013
38. INVESTMENTS IN ASSOCIATES
a. Movements in carrying amounts
Carrying amount at the beginning of the financial year
Additions
Share of profits after income tax
Impairment
Transfer due to business combination
Carrying amount at the end of the financial year
2013
$000
2012
$000
32,530
49,615
(386)
(13,286)
(68,473)
-
31,825
1,352
(647)
-
-
32,530
37
b. Summarised financial information of associates
The Group's share of the results of its principal associates and its aggregated assets and liabilities are as follows:
2013
Quantex Energy Inc.
Quantex Research Corporation
2012
Quantex Energy Inc.
Quantex Research Corporation
Bridgeport Energy Limited
Ownership
Interest %
25
25
25
25
36
Company's share of:
Assets
Liabilities
Revenues
$000
$000
$000
Profit / (Loss)
after income tax
$000
-
-
-
524
2,918
12,691
16,133
-
-
-
1,624
(4)
662
2,282
-
-
-
-
-
2,325
2,325
(363)
(23)
(386)
(955)
(86)
394
(647)
73
73
ANNUAL REPORT & FINANCIAL STATEMENTS 2013NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2013
NEW HOPE CORPORATION LIMITED AND CONTROLLED ENTITIES
New Hope Corporation Limited and Controlled Entities
Notes to the financial statements
for the year ended 31st July 2013
39. INTERESTS IN JOINT VENTURES
a. Lenton Joint Venture
New Hope Corporation Limited has entered into a joint venture to develop the Lenton project. The subsidiary has a 90% participating
interest in this joint venture and is entitled to 90% of the output of the Lenton project. The group's interests employed in the joint venture are
included in the balance sheet, in accordance with the accounting policy described in note 1(b).
b. Taroom-Yamala Joint Venture
In March 2006, New Hope Corporation Limited entered into a joint venture in relation to its Yamala (EPC927) project on the following terms:
An external company will earn a 30% Joint Venture interest in the Yamala project (EPC927) through sole funding a three-stage $5.30 million
exploration and evaluation programme designed to take the project from its current status as an exploration target to completion of a
bankable feasibility study for establishment of a mine within the tenement. On completion of the funding of the $5.30 million farm-in, the
external company will have the option to acquire a further 19% joint venture interest for $6.65 million. As at 31 July 2013, the first two
stages had been completed by funding of $3.00 million and had earned a 17% interest in the project. At 31 July 2013, $nil is carried as
exploration expenditure in relation to EPC927.
c. Ashford Joint Venture
In February 2005, New Hope Corporation Limited entered into a joint venture in relation to the Ashford project. This project allows for the
exploration and evaluation, and if warranted, development and exploitation of the tenements and all of the minerals within the tenements.
Northern Energy acquired a 50% participating interest in the tenements with an option to acquire a further 25% participating interest in the
tenements by sole funding certain expenditure.
d. Oilwells Inc. of Kentucky Joint Venture
New Hope Corporation Limited has a 60% interest in the Oilwells Inc. of Kentucky Joint Venture. The principle activity of this joint venture is
to extract oil from PL 214 of which the subsidiary is entitled to 60% of the output. The group's interests employed in the joint venture are
included in the balance sheet, in accordance with the accounting policy described in note (b).
e. Bridgeport Bounty Exploration Joint Venture
New Hope Corporation Limited has a 60% interest in the Bridgeport Bounty Exploration Joint Venture. The principle activity of this joint
venture is to conduct exploration on ATP 560 of which the subsidiary is entitled to 60% of the output. The group's interests employed in the
joint venture are included in the balance sheet, in accordance with the accounting policy described in note 1(b).
74
74
ANNUAL REPORT & FINANCIAL STATEMENTS 2013 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2013
New Hope Corporation Limited and Controlled Entities
Notes to the financial statements
for the year ended 31st July 2013
40. PARENT ENTITY FINANCIAL INFORMATION
a. Summary financial information
The individual financial statements for the parent entity show the following aggregate amounts:
Balance Sheet
Current assets
Non-current assets
Total assets
Current liabilities
Non-current liabilities
Total liabilities
Shareholders' equity
Issued capital
Reserves
Share-based payments
Retained earnings
Profit for the year
Total comprehensive income
b. Guarantees entered into by parent entity
Bank guarantees issued in relation to rehabilitation and utility obligations
2013
$000
2012
$000
2,026,667
1,963,160
13,806
13,932
2,040,473
1,977,092
520,899
229,613
1,388
6,164
522,287
235,777
93,342
92,509
1,642
1,423,202
1,518,186
1,216
1,647,590
1,741,315
33,078
375,019
33,078
375,019
38,230
38,230
37,474
37,474
The parent entity has given unsecured guarantees in respect of mining restoration and rehabilitation. The liability has been recognised by
the parent entity in relation to its rehabilitation obligations. See notes 24, 25 and 1(aa).
Further guarantees are provided in respect of statutory body suppliers with no liability being recognised by the parent entity as no losses are
foreseen on these contingent liabilities.
c. Contingent liabilities of the parent entity
Details and estimates of maximum amounts of contingent liabilities for which no provision is included in the accounts, are as follows:
Controlled entities
The bankers of the consolidated entity have issued undertakings and guarantees to the Department of
Natural Resources and Mines, Statutory Power Authorities and various other entities.
No losses are anticipated in respect of any of the above contingent liabilities.
For information about guarantees given by the parent entity, please see above.
2013
$000
2012
$000
14,822
14,857
d. Contractual commitments for the acquisition of property, plant and equipment
As at 31 July 2013, the parent entity had contractual commitments for the acquisition of property, plant or equipment totalling $95,000 (2012 -
$74,000). These commitments are not recognised as liabilities as the relevant assets have not yet been received.
75
75
ANNUAL REPORT & FINANCIAL STATEMENTS 2013
NEW HOPE CORPORATION LIMITED AND CONTROLLED ENTITIES
New Hope Corporation Limited and Controlled Entities
Notes to the financial statements
for the year ended 31st July 2013
41. DEED OF CROSS GUARANTEE
During 2012, a number of entities within the group entered into a deed of cross guarantee. New Hope Corporation Limited, Jeebropilly
Collieries Pty Ltd, Acland Pastoral Co. Pty Ltd, New Oakleigh Coal Pty Ltd, New Acland Coal Pty Ltd, New Lenton Coal Pty Ltd, Andrew Wright
Holdings Pty Ltd, Arkdale Pty Ltd and Queensland Bulk Handling Pty Ltd are parties to a deed of cross guarantee under which each company
guarantees the debts of the others. By entering into the deed, the wholly-owned entities have been relieved from the requirement to prepare a
financial report and directors' report under Class Order 98/1418 (as amended) issued by the Australian Securities and Investments
Commission.
Consolidated statement of comprehensive income
a.
The above companies represent a "closed group" for the purposes of the Class Order, and as there are no other parties to the deed of cross
guarantee that are controlled by New Hope Corporation Limited, they also represent the "extended closed group".
Set out below is the consolidated statement of comprehensive income for the year ended 31 July 2013 for the closed group consisting of New
Hope Corporation Limited, Jeebropilly Collieries Pty Ltd, Acland Pastoral Co. Pty Ltd, New Oakleigh Coal Pty Ltd, New Acland Coal Pty Ltd,
New Lenton Coal Pty Ltd, Andrew Wright Holdings Pty Ltd, Arkdale Pty Ltd and Queensland Bulk Handling Pty Ltd.
Revenue from continuing operations
Other income
Expenses
Cost of sales
Marketing and transportation
Administration
Other expenses
Profit before income tax
Income tax expense
Profit after income tax for the year
Other comprehensive income
Items to be reclassified to profit and loss
Changes in the fair value of cash flow hedges, net of tax
Net transfer to profit and loss
Other comprehensive income for the year, net of tax
Total comprehensive income for the year
2013
$000
2012
$000
610,852
-
610,852
(282,870)
(139,314)
(13,287)
-
175,381
(52,015)
123,366
739,883
151
740,034
(335,587)
(140,846)
(26,101)
(1)
237,499
(64,616)
172,883
(39,824)
(10,431)
(50,255)
73,111
10,708
(17,934)
(7,226)
165,657
76
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ANNUAL REPORT & FINANCIAL STATEMENTS 2013
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2013
New Hope Corporation Limited and Controlled Entities
Notes to the financial statements
for the year ended 31st July 2013
41. DEED OF CROSS GUARANTEE (continued)
Consolidated balance sheet
b.
Set out below is a consolidated balance sheet as at 31 July 2013 of the closed group consisting of New Hope Corporation Limited, Jeebropilly
Collieries Pty Ltd, Acland Pastoral Co. Pty Ltd, New Oakleigh Coal Pty Ltd, New Acland Coal Pty Ltd, New Lenton Coal Pty Ltd, Andrew Wright
Holdings Pty Ltd, Arkdale Pty Ltd and Queensland Bulk Handling Pty Ltd.
Current assets
Cash and cash equivalents
Trade and other receivables
Inventories
Held to maturity investments
Derivative financial instruments
Other
Total current assets
Non-current assets
Receivables
Other financial assets
Derivative financial instruments
Property, plant and equipment
Exploration and evaluation assets
Deferred tax assets
Intangible assets
Total non-current assets
Total assets
Current liabilities
Trade and other payables
Current tax liabilities
Provisions
Derivative financial instruments
Total current liabilities
Non-current liabilities
Deferred tax liabilities
Provisions
Derivative financial instruments
Total non-current liabilities
Total liabilities
Net assets
Equity
Contributed equity
Reserves
Retained earnings
Total equity
2013
$000
2012
$000
18,746
331,158
58,604
1,228,995
-
106
1,637,609
2,775
248,183
-
405,809
29,295
38,752
9,411
734,225
2,371,834
123,102
54,258
28,434
29,721
235,515
-
41,853
11,707
53,560
289,075
2,082,759
89,246
9,112
1,984,401
2,082,759
69,025
218,913
59,560
1,435,961
20,392
116
1,803,967
4,181
248,183
9,971
370,715
17,148
-
8,525
658,723
2,462,690
58,952
54,345
27,592
-
140,889
23,699
32,246
-
55,945
196,834
2,265,856
88,413
58,941
2,118,502
2,265,856
42. EVENTS OCCURRING AFTER THE REPORTING PERIOD
During the final quarter, New Hope Corporation Limited entered into a contract to acquire a 15% interest in the Cuisinier tenement from Arrow
Energy subject to government approvals and transfer of title. This additional tenement will increase oil production by approximately 240 barrels
of oil per day, based on current rates.
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ANNUAL REPORT & FINANCIAL STATEMENTS 2013
DIRECTORS DECLARATION
DIRECTORS’
DECLARATION
In the Directors' opinion:
New Hope Corporation Limited and Controlled Entities
Directors Declaration
a.
the financial statements and notes set out on pages 29 to 77 are in accordance with the Corporations Act 2001 , including:
(i)
(ii)
complying with Accounting Standards ,
requirements; and
the Corporations Regulations 2001 and other mandatory professional
reporting
giving a true and fair view of the consolidated entity's financial position as at 31 July 2013 and of their performance, for the
financial year ended on that date; and
b.
there are reasonable grounds to believe that the Company will be able to pay its debts, as and when they become due and payable; and
Note 1(a) confirms that the financial statements also comply with International Financial Reporting Standards as issued by the International
Accounting Standards Board.
The Directors have been given the declarations by the chief executive officer and chief financial officer required by section 295A of the
Corporations Act 2001.
This declaration is made in accordance with a resolution of the Directors.
R.D. Millner
Director
S.J.Palmer
Director
Sydney
16 September 2013
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ANNUAL REPORT & FINANCIAL STATEMENTS 2013
78
ANNUAL REPORT & FINANCIAL STATEMENTS 2013 INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF NEW HOPE CORPORATION LIMITED
Independent auditor’s report to the members of New Hope
Corporation Limited
Report on the financial report
We have audited the accompanying financial report of New Hope Corporation Limited (the company), which
comprises the consolidated balance sheet as at 31 July 2013, and the consolidated statement of
comprehensive income, consolidated statement of changes in equity and consolidated cashflow statement for
the year ended on that date, a summary of significant accounting policies, other explanatory notes and the
directors’ declaration for the New Hope Corporation Limited Group (the consolidated entity). The
consolidated entity comprises the company and the entities it controlled at the year's end or from time to time
during the financial year.
Directors’ responsibility for the financial report
The directors of the company are responsible for the preparation of the financial report that gives a true and
fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such
internal control as the directors determine is necessary to enable the preparation of the financial report that is
free from material misstatement, whether due to fraud or error. In Note 1, the directors also state, in
accordance with Accounting Standard AASB 101 Presentation of Financial Statements , that the financial
statements comply with International Financial Reporting Standard s.
Auditor’s responsibility
Our responsibility is to express an opinion on the financial report based on our audit. We conducted our audit
in accordance with Australian Auditing Standards. These Auditing Standards require that we comply with
relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain
reasonable assurance whether the financial report is free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the
financial report. The procedures selected depend on the auditor’s judgement, including the assessment of the
risks of material misstatement of the financial report, whether due to fraud or error. In making those risk
assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation
of the financial report in order to design audit procedures that are appropriate in the circumstances, but not
for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also
includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting
estimates made by the directors, as well as evaluating the overall presentation of the financial report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
audit opinions.
Independence
In conducting our audit, we have complied with the independence requirements of the Corporations Act
2001.
PricewaterhouseCoopers, ABN 52 780 433 757
Riverside Centre, 123 Eagle Street, BRISBANE QLD 4000, GPO Box 150, BRISBANE QLD 4001
T: +61 7 3257 5000, F: +61 7 3257 5999, www.pwc.com.au
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ANNUAL REPORT & FINANCIAL STATEMENTS 2013 NEW HOPE CORPORATION LIMITED AND CONTROLLED ENTITIES
Auditor's opinion
In our opinion:
(a)
the financial report of New Hope Corporation Limited is in accordance with the Corporations Act 2001 ,
including:
(i)
(ii)
giving a true and fair view of the consolidated entity’s financial position as at 31 July 2013 and of its
performance for the year ended on that date; and
complying with Australian Accounting Standards (including the Australian Accounting
Interpretations) and the Corporations Regulations 2001 ; and
(b)
the financial report and notes also comply with International Financial Reporting Standards as
disclosed in Note 1.
Report on the Remuneration Report
We have audited the remuneration report included in pages 14 to 21 of the directors’ report for the year ended
31 July 2013. The directors of the company are responsible for the preparation and presentation of the
remuneration report in accordance with section 300A of the Corporations Act 2001 . Our responsibility is to
express an opinion on the remuneration report, based on our audit conducted in accordance with Australian
Auditing Standards.
Auditor's opinion
In our opinion, the remuneration report of New Hope Corporation Limited for the year ended 31 July 2013,
complies with section 300A of the Corporations Act 2001.
PricewaterhouseCoopers
Simon Neill
Partner
Sydney
16 September 2013
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ANNUAL REPORT & FINANCIAL STATEMENTS 2013
80
ANNUAL REPORT & FINANCIAL STATEMENTS 2013 SHAREHOLDER INFORMATION AS AT 14 SEPTEMBER 2013
SHAREHOLDER INFORMATION
AS AT 14 SEPTEMBER 2013
New Hope Corporation Limited
Shareholder Information as at 13 September 2013
As at 13 September 2013 there were 9,192 holders of ordinary shares in the Company.
Voting entitlement is one vote per fully paid ordinary share.
Distribution of equity securities
1 - 1,000
1,001 - 5,000
5,001 - 10,000
10,001 - 100,000
100,001 and over
Number of
shareholders
2,259
3,600
2,045
1,201
87
9,192
Fully paid
ordinary
shares
1,194,984
10,536,618
14,446,979
29,193,255
775,343,389
830,715,225
Number of
rights holders
Ordinary
rights
-
-
-
-
4
4
-
-
-
209,378
-
209,378
Holding less than a marketable parcel
349
14,836
The names of substantial shareholders as disclosed in substantial shareholder notices received by the Company:
Shareholder
Washington H Soul Pattinson And Company Limited
Mitsubishi Materials Corporation
Perpetual Limited and subsidiaries
20 largest shareholders as disclosed on the share register as at 13 September 2013
Farjoy Pty Ltd
J P Morgan Nominees Australia Limited
1 Washington H Soul Pattinson And Company Limited
2 Mitsubishi Materials Corporation
3
4 RBC Investor Services Australia Nominees Pty Limited (Pi Pooled A/C)
5 Domer Mining Co Pty Limited
6
7 BKI Investment Company Limited
8 National Nominees Limited
9 HSBC Custody Nominees (Australia) Limited
10 Ubs Nominees Pty Ltd
11 Citicorp Nominees Pty Limited
12 Taiheiyo Kouhatsu Inc
13 Pacific Custodians Pty Limited (New Hope Employee S/P A/C)
14 BNP Paribas Noms Pty Ltd (Drp)
15 BNP Paribas Nominees Pty Ltd (Agency Lending Drp A/C)
16 RBC Investor Services Australia Nominees Pty Limited (PIIC A/C)
17 J S Millner Holdings Pty Limited
18 RBC Investor Services Australia Nominees Pty Ltd (Piselect A/C)
19 Milton Corporation Limited
20 Dixson Trust Pty Limited
Number
of shares
495,696,418
91,490,000
67,674,630
495,696,418
93,240,000
26,942,434
24,391,120
22,000,000
15,500,000
14,760,452
12,062,646
11,930,130
10,187,046
6,750,337
4,054,000
3,750,000
3,262,289
2,867,517
2,090,464
2,009,197
1,763,500
1,290,107
1,225,596
755,773,253
%
59.67%
11.01%
8.15%
59.67%
11.22%
3.24%
2.94%
2.65%
1.87%
1.78%
1.45%
1.44%
1.23%
0.81%
0.49%
0.45%
0.39%
0.35%
0.25%
0.24%
0.21%
0.16%
0.15%
90.99%
Unquoted equity securities
Rights issued under the New Hope Corporation Limited Employee
Performance Rights Share Plan to take up ordinary shares
Number on
issue
Number of
holders
209,378
4
81
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ANNUAL REPORT & FINANCIAL STATEMENTS 2013
ABN: 38 010 653 844