2022 ANNUAL
REPORT
CONTENTS
Acknowledgement of Country
New Hope Group acknowledges the Traditional
Owners of Country throughout Australia and
First Nations people in the locations in which
we operate our business. We pay our respects
to Elders past and present.
2
2022 ANNUAL REPORT NEW HOPE GROUP2022 Highlights 02Chairman’s Review 04Chief Executive Officer’s Review 06Favourable Market and Pricing Dynamics 08Our Operations 10Directors’ Report 12Auditor’s Independence Declaration 51 Tax Contribution Report 52Sustainability Report 54Financial Report 72Directors’ Declaration 141Independent Auditor’s Report 142Shareholder Information 1462022 Resources and Reserves 148Corporate Directory 152 OUR VISION
Energising our People,
Communities and Customers.
To deliver long-term shareholder value
through responsible investment, marketing
and asset management.
OUR VALUES
Integrity
We are ethical, honest and
trusted to do the right thing.
Respect
We listen and treat others
as we expect to be treated.
Responsibility
We are empowered and
accountable for our actions.
Wellbeing
We all seek to prevent harm,
promote safety and enhance health.
Resilience
We are adaptable and see
opportunity in change.
Collaboration
We work together and focus
on the best outcome.
01
NEW HOPE GROUP 2022 ANNUAL REPORT 01
TAX CONTRIBUTION REPORTDIRECTORS’ REPORTSUSTAINABILITY REPORTFINANCIAL REPORTOTHER INFORMATIONOPERATIONS REVIEW NEW HOPE GROUP 2022 ANNUAL REPORT 2022 HIGHLIGHTS
FULL YEAR
DIVIDEND
86c
PER SHARE
TOTAL SHAREHOLDER
RETURN
UNDERLYING EBITDA
(BEFORE NON-REGULAR ITEMS)1
147%
$1,577 MILLION
330% INCREASE
CASH GENERATED
FROM OPERATIONS
REALISED
COAL PRICE
NET
ASSETS
$1,139 MILLION
$282 / TONNE
$2,316 MILLION
285% INCREASE
178% INCREASE
32% INCREASE
02 2022 ANNUAL REPORT NEW HOPE GROUP
OPERATIONS
REVIEW
DIRECTORS’
REPORT
TAX CONTRIBUTION
REPORT
SUSTAINABILITY
REPORT
FINANCIAL
REPORT
OTHER
INFORMATION
SAFETY:
TRIFR2
2.61
GOVERNMENT
CONTRIBUTIONS
SPONSORSHIPS
AND DONATIONS
$626MILLION
52% IMPROVEMENT
353% INCREASE
THERMAL COAL PRICES
(US$/t)
450
400
350
300
250
200
150
100
50
0
$1.03MILLION
206% INCREASE
gc NewC
API-5
Jan
21
Feb
21
Mar
21
Apr
21
May
21
Jun
21
Jul
21
Aug
21
Sep
21
Oct
21
Nov
21
Dec
21
Jan
22
Feb
22
Mar
22
Apr
22
May
22
Jun
22
Jul
22
Aug
22
1
Underlying Earnings before Interest, Tax and Depreciation and Amortisation (EBITDA) is a non-IFRS measure, and has not been audited by Deloitte.
2
Total Recordable Injury Frequency Rate – total injuries recorded per million hours worked.
NEW HOPE GROUP 2022 ANNUAL REPORT 03
CHAIRMAN’S
REVIEW
The Company delivered record earnings
during the 2022 financial year, based
on a solid operating performance in
spite of the continuing challenges of
COVID-19 and the impacts of extreme
wet weather on production and
logistics at Bengalla, and Newcastle
coal prices reaching all-time highs.
While production at our flagship Bengalla operations remained
stable, saleable coal volumes reduced during the year as New
Acland was safely transitioned into care and maintenance,
awaiting approvals for the Stage 3 development.
From 31 July 2021, Newcastle coal prices (gC NEWC 6000)
began trending upwards from approximately US$150 per
tonne. Following conflict in Ukraine and concerns about global
energy security, the Newcastle index price for the fourth
quarter of the financial year reached a record of US$404.99.
Demand for high quality, low emission thermal coal remains
strong and is expected to be sustained with the ban on Russian
coal taking effect in August 2022.
The Company delivered an impressive full year profit before
tax and non-regular items of $1,421.6 million and a closing
share price on 31 July 2022 of $4.39 which is an increase
of 120 per cent on the 2021 financial year. The full year
dividend to shareholders was 86.0 cents per share, after the
Board declared a final dividend of 31.0 cents per share and
a special dividend of 25.0 cents per share, fully franked. The
combination of capital growth and dividends equates to a Total
Shareholder Return for the year of 147 per cent.
Strengthening operating cashflows throughout the year
allowed the Company to fully repay its Debt Facility and
terminate the undrawn Debt Facility before its maturity
in November 2023. We retain a Credit Support facility of
$300 million, which continues to be utilised to support the
Company’s bank guarantees, including for mining restoration
and rehabilitation obligations at Bengalla. Cancelling the Debt
Facility is an important step in our broader capital strategy
to maximise long-term investor value and alignment to our
business strategy.
The Board and management team continue to explore
opportunities to expand and diversify the Company’s
operating portfolio, to support sustained positive returns for
shareholders. At the end of the 2022 financial year, New Hope
acquired a 15 per cent interest in Malabar Resources Limited
for $94.4 million. This strategic investment diversifies our asset
base with an exposure to metallurgical coal from Malabar’s
flagship Maxwell Mine which commenced construction in May
2022 and has an estimated life of more than 25 years. The
transaction aligns with our strategy to invest surplus cash
into coal assets that are low on the cost curve and have long
approved mine lives.
Operating in a responsible and sustainable way is fundamental
to maintaining our social licence to operate and contributes to
the long-term value of our business.
Since we first reported on sustainability issues in our 2017
Annual Report, we have worked to improve the quality
of our sustainability reporting each year, endeavouring to
provide further transparency about the environmental, social
and governance matters which are most relevant to our
stakeholders.
“ The Company delivered an impressive full year
profit before tax and non-regular items of $1,421.6 million.”
04
2022 ANNUAL REPORT NEW HOPE GROUP
OPERATIONS
REVIEW
DIRECTORS’
REPORT
TAX CONTRIBUTION
REPORT
SUSTAINABILITY
REPORT
FINANCIAL
REPORT
OTHER
INFORMATION
This year we have brought our Sustainability Report back into
the pages of this Annual Report. The Sustainability Report
continues to provide transparent information about the way we
operate and the role that we play in the communities in which
we work and live.
Record coal prices undoubtedly benefited the Company’s
financial performance, but the positive result would not have
been achieved without disciplined operational management
and a capable and resilient workforce. On behalf of the Board,
I would like to thank the management and staff for their
continuing efforts. Thank you also to my fellow Directors for
their guidance, and to our shareholders for your continuing
support for the Company.
R.D. Millner
Chairman
NEW HOPE GROUP 2022 ANNUAL REPORT 05
05
NEW HOPE GROUP 2022 ANNUAL REPORT CHIEF EXECUTIVE
OFFICER’S REVIEW
Solid operating performance at our
cornerstone operation, Bengalla,
allowed the Company to capitalise
on record coal prices and deliver an
impressive result for shareholders.
I am pleased to report that safety performance across our
operations continues to improve. The All Injury Freqeuency
Rate (AIFR) was adopted as a primary safety performance
metric during the year, to recognise both short and long-term
risks that impact wellbeing. The twelve-month moving average
AIFR at 31 July 2022 was 29.72, which represents a decrease
compared to the 31 January 2022 average of 33.32. This has
largely been a result of our work to increase capability across
the workforce in identifying and managing the risk of injuries
through supervisor development training, injury prevention
activities and improved risk management practices.
We continued to monitor Total Recordable Injury Rate (TRIFR)
as a secondary safety performance indicator. Very pleasingly,
our 12 month moving average TRIFR declined from 5.41 to
2.61 year on year. Special mention must be made of our New
Acland Mine team, which has been injury free since July 2021.
This is a significant achievement given the risk of distraction in
the workforce with the phase-down to care and maintenance
occurring during the period. I thank the New Acland Mine team
for their ongoing focus on safe operations and achieving an
exceptional safety performance outcome.
While these safety performance outcomes are a positive
result for workplace health and safety, it is important that
we continue our efforts to reduce all safety risks across the
business in the year ahead. We will maintain our pursuit of
continuous improvement in safety practices and outcomes.
We have a range of improvement initiatives we intend to
progress which are designed to further reduce hazards and
risk in our operations and improve our practices and safety
performance outcomes.
The Company reported underlying EBITDA of $1,577 million,
which was an increase of 330 per cent on the previous financial
year (2021: $367 million). Rising Newcastle coal prices
throughout the year were instrumental to the record financial
outcome, backed by another solid operational performance and
in spite of adverse weather and COVID-19 labour disruptions.
Run of mine (ROM) coal production across our operations
totalled 9.978 million tonnes. This was a 29 per cent decrease
from last financial year, mostly as a result of New Acland
operations winding down and transitioning to care and
maintenance. Production at Bengalla, our flagship operation,
was 11.7 million tonnes ROM compared to 10.0 million tonnes
in 2020/21. This is a positive result in light of rain events in
the Hunter Valley which impacted production as well as the
rail line to the Port of Newcastle, and pandemic related labour
shortages across the business and supply chain.
Saleable coal production for the year totalled 7.9 million
tonnes, compared with 9.6 million tonnes in 2020/21. Saleable
coal production at Bengalla was down only 3 per cent, with
the operation losing nearly 60,000 truck hours to the effects
of poor weather and COVID-19. The completion of Stage 2
operations at New Acland also contributed to the decrease.
We realised sales of 8.8 million tonnes for the year, compared
to 9.6 million tonnes in the previous year. Purchased coal
supported sales, and allowed us to capitalise on favourable
pricing and ensure secure supply for our long-term customers
during a period of constrained supply.
Our average sales price during the year was a record for the
Group, at $281.8 per tonne compared to $101.36 per tonne
last year. Demand for our high quality, low emission coal was
robust in the first half of the financial year, and strengthened as
a result of supply constraints as a result of the war in Ukraine.
The current energy crisis has highlighted the need for increased
domestic supply and we have responded by increasing
domestic sales. Security of supply is vital for our customers,
and our forward order book is mostly sold and optimally priced
for the current financial year.
“ I am pleased to report that safety performance
across our operations continues to improve.”
06
2022 ANNUAL REPORT NEW HOPE GROUP
OPERATIONS
REVIEW
DIRECTORS’
REPORT
TAX CONTRIBUTION
REPORT
SUSTAINABILITY
REPORT
FINANCIAL
REPORT
OTHER
INFORMATION
Production at Bengalla will increase from 12.6Mtpa to
13.4Mtpa over the next two years in response to strong and
sustained demand for high quality, low emission thermal coal.
This is an important growth project for the Company and we
have made substantial commitments to increase mining and
ancillary fleet and capacity in our coal handling and processing
plant as well as supporting site infrastructure.
Oil production from Bridgeport Energy totalled 286,514bbl,
a nine per cent decrease from the previous year because of
the natural decline in the oil resource and delays in bringing
wells online. With strengthened demand, Bridgeport achieved
an increased average sale prices of US$96.26/bbl, which
was a 67 per cent increase from the previous year
(2021: US$57.77/bbl).
We continue to assess opportunities to secure additional
resources and reserves, to extend the economic life of the
mine, and the Company has also been granted an Exploration
Licence for an area adjoining the western side of the Bengalla
mining lease.
On 28 June 2022, the Department of Environment & Science
issued the Environmental Authority for New Acland Stage
3. After the reporting period, on 26 August 2022, the
Minister for Resources granted the Stage 3 mining leases.
We are continuing to work with the Department of Regional
Development, Manufacturing and Water to secure the
Associated Water Licence which will be the final approval
to allow mining operations to re-commence. The mine
management team are progressing rehabilitation of Stage 2
operations and working on a restart plan that would minimise
the time to first coal. We hope that final approvals are
granted in the near future, which would allow us to offer new
opportunities to local workers and suppliers, for the benefit of
the region.
Cost and operational disciplines across the business position
us well for the next financial year, and we expect that coal
prices will remain above historical averages. These factors have
contributed to strong cash generation during the year, which
has given the Company additional financial flexibility to identify
and pursue opportunities that align with the strategy and will
support sustainable investment returns for shareholders.
I would like to thank everyone at New Hope for their hard
work and focus throughout the year. I am also grateful to the
Board for their diligence and guidance. Finally, thank you to our
shareholders for your continued support for New Hope.
R.J. Bishop
Chief Executive Officer
07
NEW HOPE GROUP 2022 ANNUAL REPORT FAVOURABLE MARKET
& PRICING DYNAMICS
While global energy demand is
forecast to remain flat to 2030,
supply constraints are expected to
support the continuation of coal prices
above long-term historical averages,
particularly for high energy, lower
emission thermal coals.
These favourable pricing dynamics have been compounded
by the war in Ukraine which has both reduced global supply
and highlighted the need for greater domestic supply.
The graph below illustrates the trend towards global
coal demand outstripping future supply.
New Hope is well positioned to remain a robust competitor in
these market conditions and continue to generate substantial
returns. The Company has an established track record
for effective cost management disciplines and optimising
operational productivity.
GLOBAL DEMAND VS SUPPLY (BY OPERATING STATUS)
Global Demand vs Supply (by operating status)
1200
1000
s
e
n
n
o
T
n
o
i
l
l
i
M
800
600
400
200
0
Possible
Probable
Operating and highly probable
1,200
1,000
s
e
n
n
o
t
n
o
i
l
l
i
M
800
600
400
200
0
2022
China
2025
2030
2035
2040
2045
2050
India
JKT
Other Asia
ROW
Source: Wood Mackenzie Q3 2022 dataset
Suspended supply excluded
2022
2025
2030
2035
2045
2040
Ind ia
Other Asia
Possi ble
Operating an d Highly Prob ab le
China
JKT
ROW
Probable
Source: Wood Mackenzie Q3 2022 dataset. Suspended supply excluded.
The data and information provided by Wood Mackenzie should not be interpreted as advice and you should not rely on it for any
purpose. You may not copy or use this data and information except as expressly permitted by Wood Mackenzie in writing. To the
fullest extent permitted by law, Wood Mackenzie accepts no responsibility for your use of this data and information except as
specified in a written agreement you have entered into with Wood Mackenzie for the provision of such of such data and information.
08 2022 ANNUAL REPORT NEW HOPE GROUP
OPERATIONS
REVIEW
DIRECTORS’
REPORT
TAX CONTRIBUTION
REPORT
SUSTAINABILITY
REPORT
FINANCIAL
REPORT
OTHER
INFORMATION
Bengalla and New Acland are low-cost operations, which
positions New Hope in the lower quartiles of the global
cost curve (see graph on facing page). These two operations
also produce high quality coals that tend to benefit from
greater demand.
These factors ensure that, even under scenarios in which
the pace of energy transition accelerates and global demand
for thermal coal reduces, the Company’s operations will
remain relatively resilient to declining demand and create a
natural hedge against business risks in a contracting market.
This is outlined in the graph below, which shows the position
where supply meets demand in each of 2030 and 2040 for
the world to remain on a 1.5 degree and a 2 degree warming
limit pathway. Our assessment of business resilience and
strategy is outlined in more detail in the Company’s Climate
and Global Energy Transition Statement which appears in the
Sustainability section of our website.
New Hope is progressing with a
number of growth projects including
production ramp up and further
exploration at Bengalla, New Acland
Stage 3 (pending final approval) and a
new investment in Malabar Resources,
principally the Maxwell Mine.
2030 GLOBAL SEABORNE THERMAL COAL COST CURVE (QUALITY ADJUSTED)
)
2
7
0
$
.
:
X
F
,
s
m
r
e
t
l
a
e
r
,
e
n
n
o
t
/
$
S
U
)
k
r
a
m
h
c
n
e
b
R
A
G
o
t
(
d
e
t
s
u
d
a
y
t
i
l
a
u
q
C
C
T
2
2
0
2
j
200
175
150
125
100
75
50
25
0
0
e
l
i
t
n
e
c
r
e
p
h
t
5
2
e
l
i
t
n
e
c
r
e
p
h
t
0
5
e
l
i
t
n
e
c
r
e
p
h
t
5
7
2040
AET 2 DEGREE SCENARIO
2030
2040
AET 1.5 DEGREE SCENARIO
2030
e
l
i
t
n
e
c
r
e
p
h
t
5
2
e
l
i
t
n
e
c
r
e
p
h
t
0
5
e
l
i
t
n
e
c
r
e
p
h
t
5
7
2040
AET 2 DEGREE SCENARIO
2030
2040
AET 1.5 DEGREE SCENARIO
2030
100
200
300
400
500
600
700
800
900
1000
Bengalla
New Acland
Cumulative Tonnes (M)
Source: Wood Mackenzie Q3 2022 dataset. New Hope estimates for own assets.
TCC refers to total cash cost. GAR refers to 'Gross as Received'.
AET1.5 Scenario based on Aug 22 WM Data. AET2 Scenario based on Sep 21 WM Data.
NEW HOPE GROUP 2022 ANNUAL REPORT
09
150
125
100
75
50
25
0
0
100
200
300
400
500
600
700
800
900
Cumulative Tonnes (M)
Bengalla
New Acland Stage 3
OUR OPERATIONS
Coal Operations
Rehabilitation
NSW
QLD
JORC RESOURCES
361Mt
JORC RESOURCES1
1,578Mt2
BACKGROUND
CUMULATIVE REHABILITATED LAND
2024Ha
` Large scale, cost competitive mine in
` Open cut truck and excavator mine
` Core commitment to
NSW, Bengalla Mine.
` Ramp up to 13.4Mtpa ROM underway
with approvals up to 15Mtpa ROM
until 2039.
` Exploration License (EL 9431) for an area
of 556 hectares on the western side
of Bengalla.
` 15 per cent interest in Malabar Resources.
` Flag-ship asset is Maxwell Mine,
an underground metallurgical coal
project located 10kms south-west
of Muswellbrook.
` Life of mine greater 25 years, proved
and probable reserves of 144Mt.
in QLD, New Acland Mine.
` Stage 1 Mining Leases granted
in 2001 and mining commenced
2002. Stage 2 expansion Mining
Lease granted in 2006, with
mining completed in the 2022
financial year.
` Currently in care and maintenance.
` Awaiting approval of water license
for New Acland Stage 3.
being an environmentally
responsible operator.
` Best practice environmental
planning and progressive
rehabilitation incorporated
into all phases of mining life.
2022 PERFORMANCE
` 7.4Mt saleable coal produced
(80 per cent share).
` 9.4Mt ROM coal produced
(80 per cent share).
` Underlying EBITDA¹ $1,543 million.
` Realised price is $292.8/t.
` Production completed for
New Acland Stage 2.
` Underlying EBITDA¹ $36.3 million.
` New Acland achieves 12 months
injury free.
` Chuwar is the first
Queensland coal mine to be
fully rehabilitated.
` 27Ha of land rehabilitated in
2022 financial year.
1. Underlying Earnings before Interest, Tax, Depreciation and Amortisation (EBITDA). This non-IFRS information has not
been audited by Deloitte.
10
2022 ANNUAL REPORT NEW HOPE GROUP
OUR OPERATIONS
Agriculture
Port Operations
Oil and Gas
QBH
BRIDGEPORT
AGRICULTURAL LAND HOLDINGS
THROUGHPUT CAPACITY
RESERVES 2P
11,600Ha
` Agricultural activities at
New Acland and Bengalla.
` Cropping and harvesting
of sorghum, corn, wheat
and lucerne.
` Cattle breeding and
fattening activities
undertaken on
rehabilitated land.
10Mt
BACKGROUND
` Operation of the handling facility
at the Port of Brisbane.
` Leading bulk handling facility
since 1983.
` 10 years lost time injury free.
` 24/7 operation with
10Mtpa capacity.
6.2Mboe2
` Tenures held in the Cooper Basin
(QLD and SA), Surat Basin (QLD)
and Otway Basin (VIC).
` Tenures cover an area in excess
of 11,380km2.
2022 PERFORMANCE
` 34 per cent increase in
cattle prices since July 2021.
` 2.6Mt export throughput.
` 287k barrels produced.
` 50ktpa additional stockpile capacity
` EBITDA $12.2 million, an increase
` 1143 head of cattle sold.
added for key customer.
` Investment in farming
equipment and
silo infrastructure.
` Supports existing coal customers,
while diversifying into new
commodities to maximise throughput.
of 275 per cent from 2021
financial year.
` Oil price increase 67 per cent
from 2021 financial year,
to US$96.36/bbl.
2. ASX Release 20 September 2022 ‘Bridgeport Energy 2022 Reserves and Resources Statement’.
11
TAX CONTRIBUTION REPORTDIRECTORS’ REPORTSUSTAINABILITY REPORTFINANCIAL REPORTOTHER INFORMATIONOPERATIONS REVIEW NEW HOPE GROUP 2022 ANNUAL REPORT
DIRECTORS’
REPORT
For the year ended 31 July 2022
12
12
2022 ANNUAL REPORT NEW HOPE GROUP
2022 ANNUAL REPORT NEW HOPE GROUP The Directors present their report
on the consolidated entity consisting
of New Hope Corporation Limited
(‘the Company’ or ‘New Hope’) and
its controlled entities (‘the Group’).
DIRECTORS
The following persons were Directors of New Hope during the
year and up to the date of this report:
` Robert D. Millner
` Thomas C. Millner
` Jacqueline E. McGill AO
` Ian M. Williams
` Todd J. Barlow
` Steven R. Boulton
PRINCIPAL ACTIVITIES
The principal activities of New Hope consisted of the
development and operation of coal mines, port handling
and logistics, agriculture, and oil and gas development
and production.
HIGHLIGHTS
` Net profit after tax (NPAT) of $983.0 million
(2021: $79.4 million);
` Underlying EBITDA1 result of $1,577.4 million
(2021: $367.2 million);
` Net cash from operating activities $1,138.6 million
(2021: $296.1 million), an increase of 285 per cent;
` 7.9Mt of saleable coal produced (2021: 9.6Mt);
` Balance of debt repaid and cancellation of syndicated
debt facility at 31 July 2022;
` Department of Environment and Science issued
New Acland Stage 3 Environmental Authority
(28 June 2022);
` Investment of $94.4 million to acquire a 15 per cent
equity interest in Malabar Resources Limited acquired
during the period;
` 2022 Interim dividend of $141.5 million,
representing 17.0 cents per share and a Special Dividend
of $108.2 million, representing 13.0 cents per share
were paid during the period;
` 2022 Final dividend of 31.0 cents per share,
and special dividend of 25.0 cents per share,
fully franked and payable 8 November 2022; and
` NHC Closing share price at 31 July 2022, $4.39
(2021: $1.995), representing a 120 per cent increase.
1
Underlying Earnings before Interest, Tax, Depreciation and Amortisation (EBITDA) and Non-Regular Items are a non-IFRS measures.
This non-IFRS information has not been audited by Deloitte.
13
TAX CONTRIBUTION REPORTDIRECTORS’ REPORTSUSTAINABILITY REPORTFINANCIAL REPORTOTHER INFORMATIONOPERATIONS REVIEW NEW HOPE GROUP 2022 ANNUAL REPORT
HIGHLIGHTS (CONTINUED)
Statutory Revenue
Statutory Profit after tax
Underlying EBITDA1
Impairment of Queensland Coal Mining Assets
Impairment of Coal Exploration and Evaluation Assets
Onerous Contracts
New Acland Ramp Down2
Group Redundancies
Liquidation Related Expenses
Strategic Growth and M&A
Debt Wavier Consent Fees
Total Non-Regular Items
EBITDA
Financial Income and Expenses3
Depreciation and amortisation
Statutory Profit before Tax
Net Profit before Tax and before Non-Regular Items1
2022
$000
2021
$000
2,552,395
1,048,239
983,009
1,577,357
–
(4,989)
–
–
(5,491)
(9,823)
(650)
–
(20,953)
1,556,404
(14,630)
(141,136)
1,400,638
1,421,591
79,350
367,197
(40,259)
(1,618)
(37,276)
11,393
(15,733)
(2,620)
(1,370)
(1,110)
(88,593)
278,604
(18,531)
(149,353)
110,720
199,313
1
Underlying Earnings before Interest, Tax, Depreciation and Amortisation (EBITDA) and Net Profit before Tax (NPBT) and before Non-Regular Items
are non-IFRS measures. This non-IFRS information has not been audited by Deloitte.
2
New Acland Ramp Down represents a change in coal stock inventory valuation following the increase in coal prices during 2021 financial year.
3 Financial Income and Expenses comprises statutory finance income and expenses minus unwinding of discount on provisions and commitment
fees on loan facility. Refer to Note 20D.
14
2022 ANNUAL REPORT NEW HOPE GROUP OPERATING AND
FINANCIAL REVIEW
The Company reported a NPBT and before Non-Regular Items
of $1,421.6 million for the financial year ended 31 July 2022
(2021: $199.3 million). This represents a 613 per cent increase
from the comparative period (2021). The primary drivers
contributing to the NPBT and before Non-Regular Items result
include:
` An increase in average A$ realised prices to A$281.84/t
in 2022 from A$101.36/t in 2021. Thermal coal prices
continued to increase from July 2021 levels, which
materialised into strong revenue generation over the
reporting period. The quarter four average realised price was
A$493.52.
` Underlying Free On Board (FOB) costs of A$93.54/t
(2021: A$56.85/t), including trade coal purchases of
$26.9/t and excluding royalties.
Underlying Free on Rail (FOR) costs of $47.04/t
(2021: $36.53/t). Amid supply chain constraints,
inflationary pressures and inclement weather,
the Company has remained focused on sustaining
previously embedded cost reduction measures to
ensure Company profits are maximised.
` Gross revenue from coal sales increased in 2022 to
$2,488.9 million from $1,006.0 million in 2021.
This represents a 147 per cent increase based on record
high prices. Gross revenue from oil sales increased in 2022
to $33.5 million from $22.2 million in 2021 reflecting
improved prices.
The variance between Underlying EBITDA1 and Cash flow from
Operations is primarily driven by the movement in Working
Capital as outlined below.
Underlying EBITDA1
Net Interest Paid
Net Income Taxes (Paid)/Received
Settlement of Non-Regular Items1,2
Net Foreign Exchange
NOTE
2022
$000
2021
$000
1,577,357
367,197
(16,975)
(15,620)
(31,326)
19,317
(10,690)
(36,046)
(3,071)
(2,453)
Remeasurement of Assets Classified as Held for Sale
Impairment of Building Assets
-
-
Non-Cash Employee Benefit Expense — Share-Based Payments
5
850
48
2,771
72
Net Working Capital
Cash Flow from Operations
Cash Flow Summary
Operating Cash Flows
Investing Cash Flows
Financing Cash Flows
Cash and Cash Equivalents at the end of the Financial Year
Capital Management
Cash and Cash Equivalents
Undrawn Syndicated Facility3
Liquidity Available
(377,508)
(39,221)
1,138,637
296,065
1,138,637
296,065
(222,524)
(42,760)
(628,133)
98,528
715,714
424,663
715,714
424,663
-
140,000
715,714
564,663
1
Underlying Earnings before Interest, Tax, Depreciation and Amortisation (EBITDA) and Non-Regular Items are a non-IFRS measures. This non-IFRS
information has not been audited by Deloitte.
2 Settlement of Non-Regular Items are cash Items that Impact Cash Flow from Operations.
3 As at 31 July 2022, the Syndicated Debt Facility was cancelled.
15
TAX CONTRIBUTION REPORTDIRECTORS’ REPORTSUSTAINABILITY REPORTFINANCIAL REPORTOTHER INFORMATIONOPERATIONS REVIEW NEW HOPE GROUP 2022 ANNUAL REPORT
OPERATING AND FINANCIAL REVIEW (CONTINUED)
Basic earnings per share for the 2022 financial year ended is
118.1 cents compared to 9.5 cents for the comparative period.
Directors have declared a final dividend of 56.0 cents per share
(31 July 2021: 7.0 cents). This dividend is fully franked and
payable on 8 November 2022 to shareholders registered as at
Tuesday, 25 October 2022.
REVIEW OF OPERATIONS
HEALTH AND SAFETY
The Company remains committed to the safety, health and
wellbeing of our people, our environment and the communities
in which we operate. During the reporting period the All-Injury
Frequency Rate (AIFR) was adopted as a primary safety
performance metric as part of initiatives targeting ongoing
improvement in safety culture and systems. The intent of AIFR
is to recognise both short and long-term health and safety
risks that can impact wellbeing and represents all types of
injury to provide a more holistic indicator of safety incidents
and risk. The AIFR twelve month moving average to 31 July
2022 was 29.72, a decrease compared to the 1 August 2021
average of 33.70. The Company continues to monitor Total
Injury Frequency Rate (TRIFR) as a supplementary safety
performance indicator. The Company’s 12 month moving
average TRIFR was 2.61 as at 31 July 2022, a decrease of 52
per cent to the prior comparative period (2021: 5.39)
Continual improvement of our safety culture and systems is
at the front of mind. This is evidenced through such initiatives
as enhanced supervisor development training, preventative
injury activities and increased risk management practices to
pro-actively identify and manage risk. During the year, the
Company also begun a process to comprehensively review its
Enterprise Risk Framework in consultation with all business
units to understand the improvements that can be made.
New Acland Mine operations reached a milestone of 12
months injury free, and Queensland Bulk Handling have
achieved 10 years of lost-time injury free. Both of these
milestones reflect the Company’s long-term commitment to
high safety standards and practices.
The Company holds a strong capital position, with a closing
Cash and Cash Equivalents balance of $715.7 million (2021:
$424.7 million) and a Term Deposit of $100.0 million (2021:
NIL), ensuring any future strategic growth opportunities can
be supported. The closing balance of Trade Receivables also
increased materially from the comparative period to $502.0
million (2021: $123.3 million), an increase of 307 per cent.
OPERATING CASH FLOWS
The Company generated a cash operating surplus of $1,138.6
million which is an increase of 285 per cent on the prior
comparative period (2021: $296.1 million). Coal and oil pricing
both strengthened during the period driven by limited supply
in the market and increased demand given the current energy
crisis. Prices are expected to remain at elevated levels over
the next 12 months. An overall increase in cash payments is
principally due to the inclusion of trade coal purchases that
have supported the business and its customers during the
period, and higher royalty payments to the New South Wales
Government in line with higher sales prices being received.
INVESTING CASH FLOWS
Investing cash outflows were $222.5 million principally due
to the payment of $94.4 million to secure a 15 per cent equity
share in Malabar Resources Limited. This was a 420 per cent
increase from $42.8 million for the comparative period. Capital
expenditure of $48.7 million relates to the purchase of heavy
mobile equipment to support the Bengalla operation. Included
in Investing cash flows is a Term Deposit for $100.0 million
placed in July 2022 for a period of 12 months.
At completion of the divestment of the Company’s interest in
the Lenton Joint Venture, the Company received $21.5 million
in upfront payments.
FINANCING CASH FLOWS
The closing cash position for the financial year ended 31 July
2022 is $715.7 million (2021: $424.7 million).
On 28 October 2021, the Company fully repaid the debt
drawn under the Syndicated Debt Facility of $310.0 million.
Following the full repayment of the Syndicated Debt Facility,
the Company elected to terminate the facility on 15 July 2022,
prior to its maturity in November 2023. The Company’s internal
modelling of cash flows indicates the Company will not require
any funding for general corporate purposes and advances
the execution of a broader strategy seeking to maximise
sustainable long-term shareholder value.
16
2022 ANNUAL REPORT NEW HOPE GROUP ENVIRONMENT
OPERATIONS
As an environmentally responsible operator, the Company
strongly believes that mining and agriculture can exist together
and appreciates that as the custodians of large parcels of
land, it has an obligation to return land to a productive and
sustainable use post mining. During the financial year ended
31 July 2022, the Company recontoured 30 hectares and
seeded 20 hectares of land at New Acland. The total material
backfilled at New Acland was 1.9Mbcm. While New Acland
awaits approvals to restart operations, rehabilitation will
continue to be a key focus while on care and maintenance.
To date the Queensland Government has certified 349
hectares of progressively rehabilitated land at New Acland.
On 13 July 2022 the surrender of the Environmental Authority
for the Chuwar Coal Mine was approved by the Queensland
Government, and the Mining Leases were subsequently
relinquished. Chuwar Mine, located 5km from Ipswich has
become the first open-cut coal mine in Queensland to be fully
rehabilitated and relinquished.
The Company entered into an Enforceable Undertaking
with the Department of Environment and Science to invest
$2.0 million towards a native vegetation and fauna habitat
corridor for koalas at New Acland Mine. The rehabilitation
project will connect and substantially expand existing koala
habitats, linking Lagoon Creek to native vegetation north of the
Acland township. 100 hectares of land will be planted with
eucalyptus, paper bark and other refuge trees, significantly
enhancing the standard of rehabilitation post mining. The
existing environmentally significant area of Bottle Tree Hill will
also be protected in perpetuity.
The Queensland Government critically assessed the project
and concluded that all rehabilitation requirements had been
met in full, deeming the site safe, stable, non-polluting, and
able to support grazing for cattle.
The rehabilitation work at both Chuwar and New Acland are
a clear and practical demonstration of the commitment the
Company has to being a responsible operator and achieving
successful rehabilitation and restoration of the mining land
which we operate.
The Company produced 7.9Mt of saleable coal1 for the
financial year ended 31 July 2022 (2021: 9.6Mt), representing
a decrease of 18 per cent to the comparative period. The
Bengalla operation was heavily impacted by periods of
unusually high rainfall throughout the year leading to a loss of
31,008 truck operating hours. Production was also impacted
by COVID-19 related workforce shortages, both within
the operations and throughout the supply chain. Dragline
and excavator achieved above plan productivity, with the
dragline improving by eight per cent to the prior comparative
period. Contributing to this reduction in saleable coal was the
completion of Stage 2 operations at the Queensland based
New Acland Mine, which is currently awaiting Government
approvals for Stage 3.
The Company realised sales for the 2022 financial year of
8.8Mt, compared to 9.6Mt in the prior period. Coal sales were
supported by purchased coal, which has provided strategic
opportunities to take advantage of pricing dynamics during
the first half of the year. This has also assisted to mitigate
demurrage impacts caused by supply chain constraints during
periods of extreme wet weather.
The Company achieved a record average sales price during the
financial year of A$281.8/t (2021: A$101.36/t), representing
a 176 per cent increase. Robust market demand for high
quality, low emission thermal coal in the first half of the year
was then further strengthened by the Russia-Ukraine conflict,
which tightened supply. With security of supply paramount
to our key customers, our outlook is strong with a largely
sold and optimally priced forward sales book for the next 12
months. The Company continues to take advantage of pricing
dynamics when placing coal sales contracts and can respond
quickly to any change in pricing deltas between different
product qualities. The current energy crisis has also highlighted
the need for increased domestic supply. The Company has
responded by increasing sales to the domestic market and
looks forward to increasing domestic sales if approvals for New
Acland Stage 3 are granted.
During this financial year, the Japanese Reference Price (JRP),
which is historically settled during the second half of the year
was not settled. Consequently, the Company negotiated a final
price settlement directly with a key customer. The settlement
was completed at a level materially above the previous price of
US$109.97/t. The cash from this final settlement is expected to
be received in September 2022.
With the gC NEWC index pricing greater than US$400/t
(2021: US$170/t), the Company is well positioned to achieve
continued strong cash generation.
1
The Company’s share of saleable volumes and sales represents its 80 per cent interest in Bengalla Mine operations and 100 per cent interest in
New Acland Coal Mine operations.
17
TAX CONTRIBUTION REPORTDIRECTORS’ REPORTSUSTAINABILITY REPORTFINANCIAL REPORTOTHER INFORMATIONOPERATIONS REVIEW NEW HOPE GROUP 2022 ANNUAL REPORT 2021
50,482
14,002
3.6
1,004
12,685
9,589
76%
10,035
$101.36
$46.33
$35.34
$36.53
$19.38
$55.91
$0.94
$6.85
$63.70
OPERATING AND FINANCIAL REVIEW (CONTINUED)
GROUP COAL MINING OPERATIONAL METRICS
Prime overburden
Run-of-Mine (ROM) coal produced
ROM strip ratio – prime
Bypass
Coal handling preparation plant (CHPP) feed
Saleable coal produced
Product yield
Coal sales
METRIC
kbcm
kt
bcm/t
kt
kt
kt
%
kt
2022
40,068
9,978
4.0
1,155
9,215
7,889
73%
8,832
Average sale price achieved
A$/t
$281.84
Unit costs of sales
Bengalla mine site costs
Acland mine site costs
Free on Rail (FOR) cost
FOR to FOB cost (ex. State royalties and trade coal)
Underlying FOB cash costs (ex. State royalties and trade coal)
Trade Coal Purchases
State royalties
Underlying FOB cash cost
Margin
BENGALLA MINE
Bengalla (100 per cent basis) delivered 9.3Mt saleable
production for the financial year compared to 9.7Mt in the
comparative period. Despite losing over 59,848 truck hours
to unprecedented weather events, a tight labour market and
COVID-19 related absenteeism, production loss was limited
to a reduction of just four per cent to the comparative period.
Following the 2021 shutdown, the dragline performed strongly
with high availability (90 per cent) and achieved above budget
productivity rates. The addition of two new Hitachi EH5000
trucks, the optimisation of the dragline path and pit operations
in response to significant periods of wet weather and the
implementation of industry best practice activities through
the use of digital mining, have all been successful mitigation
strategies during what has been a challenging year throughout
the Hunter Valley.
Of the 11.7Mt ROM produced, over 10.4Mt was fed to the coal
handling and preparation plant (CHPP) maximising washed
product and realised pricing to the gC NEWC. Total yield
of 79 per cent was achieved, three per cent higher than the
comparative period (2021: 76 per cent) with below planned
levels of bypass (0.4Mt) due to the maximum wash strategy.
While flooding on the Hunter Valley rail network towards the
end of the year resulted in high closing product stocks on site,
this provides Bengalla a strong sales runway into the new
financial year where prices have further increased from 31 July
2022 levels.
18
A$/prod t
A$/prod t
A$/sale t
A$/sale t
A$/sale t
A$/sale t
A$/sale t
A$/sale t
$61.91
$58.47
$47.04
$19.61
$66.65
$26.90
$21.15
$114.70
A$/sale t
$167.14
$37.66
As a mitigation measure against further inclement weather
events, Bengalla purchased additional water discharge
credits and was able to undertake controlled, environmentally
approved discharges during the major wet weather event in
July. These additional discharges have significantly improved
water storage capacity moving into the 2023 financial year.
These credits are valid for a period of 10 years and allow
additional water discharges when the Hunter River is in high
flow conditions.
Bengalla continues to be recognised as a large-scale cost
competitive mine, with the FOB cost per tonne positioned
within the lowest quartile of the cost curve1, compared with
other seaborne thermal coal producers worldwide.
Constrained supply, a tight labour market and inflationary
pressures along with reduced production on account of the wet
weather and COVID-19 impacts have driven up prices with
site costs per saleable tonne increasing from the first half of
the year to $61.9/t (31 January 2022: $48.0/t). Cost increases
are primarily associated with price increases in fuel, explosives,
contract labour and plant and equipment components in the
second half of the year.
In a challenging supply market, the Company is maintaining a
strong cost discipline while optimising operational productivity
to maximise value delivery. A key focus is ensuring certainty
of supply with minimal disruption to operations, while high
energy, low emission thermal coal prices are at record levels.
2022 ANNUAL REPORT NEW HOPE GROUP 2022 TOTAL CASH COST - ADJUSTED BY REALISED PRICE AGAINST BENCHMARK
(INCL. ROYALTIES, US$/t)
e
l
i
t
n
e
c
r
e
P
h
t
5
2
e
l
i
t
n
e
c
r
e
P
h
t
0
5
e
l
i
t
n
e
c
r
e
P
h
t
5
7
275
250
225
200
175
150
125
100
75
50
25
0
Bengalla
)
k
r
a
m
h
c
n
e
b
R
A
G
o
t
(
d
e
t
s
u
d
a
y
t
i
l
a
u
q
C
C
T
2
2
0
2
j
)
2
7
0
$
.
:
X
F
,
s
m
r
e
t
l
a
e
r
,
t
/
$
S
U
(
0
100
200
300
400
500
600
700
800
900
Source: Wood Macxkenzie Q3 2022 dataset. New Hope estimates for own assets.
TCC refers to total cash cost. GAR refers to 'Gross as Received'.
Cumultative Tonnes (M)
1 Cost curve represents FOB natural market, where the natural market is defined as the major consumer for each producing region.
BENGALLA SITE CASH COSTS PER SALEABLE TONNE
412.7
+48%
292.8
197.9
Average
Sales Price
31 January
2022
48.0
8.2
0.6
0.5
1.0
58.4
0.3
3.1
61.9
+22%
31 January
2022
Fuel
Explosives
Contract
Labour
Spares and
Consumables
31 July
2022
Mine
Dewatering
Volume
Variance
31 July
2022
Average
Sales Price
H1 2022
Average
Sales Price
31 July
2022
During the financial year Bengalla negotiated a new four-year
Enterprise Agreement with its workforce with implementation
due early in the 2023 financial year. The majority of Bengalla’s
employees are employed on Individual Flexibility Agreements
underpinned by the Enterprise Agreement. In addition,
approximately 90 per cent of Bengalla’s employees and
contractors are local to the Upper Hunter, Muswellbrook
and Singleton shires, making a positive impact in the local
community. Bengalla has strong and positive relationships in its
local community which underpin its social licence to operate.
BENGALLA 13.4MT LIFE OF MINE
Early 2022 the Bengalla Joint Venture Participants approved
the updated Life of Mine Plan (LOM) for Bengalla, which
involves ramping up production from 12.5Mtpa to 13.4Mtpa
ROM (currently approved to 15.0Mtpa). This increase will
provide additional saleable coal, as well as increasing the
overall quality of the existing saleable coal produced. The
Company is focussed on this growth project and the significant
value it will provide to shareholders. Major commitments have
been made to increase mining and ancillary fleet and CHPP
capacity as well as supporting site infrastructure.
19
TAX CONTRIBUTION REPORTDIRECTORS’ REPORTSUSTAINABILITY REPORTFINANCIAL REPORTOTHER INFORMATIONOPERATIONS REVIEW NEW HOPE GROUP 2022 ANNUAL REPORT
OPERATING AND FINANCIAL REVIEW (CONTINUED)
BENGALLA EXPLORATION LICENSE (EL 9431)
COAL DEVELOPMENT AND EXPLORATION
On 4 July 2022, the New South Wales Government granted
Bengalla an Exploration License (EL 9431) for an area of 556
hectares adjoining the western side of Bengalla Mine. Bengalla
will conduct an exploration program over the area of EL 9431
aiming to identify available economic resource.
The Company maintains several development and exploration
sites. The expenditure on these assets has been maintained
to keep the tenements in good standing and meet required
obligations. Tenements related to the Yamala Project were
surrendered in early 2022.
NEW ACLAND COAL MINE
PASTORAL OPERATIONS
New Acland produced 0.4Mt of saleable coal for the
financial year, representing a decrease of 78 per cent on
the comparative period (2021: 1.8Mt) due to the completion
of Stage 2 operations. The site has safely transitioned into
care and maintenance and is currently planning for the
commencement of Stage 3 once the final approvals
are granted.
NEW ACLAND STAGE 3 DEVELOPMENT
On 17 December 2021, the Land Court of Queensland
recommended that the New Acland Mine Stage 3 Mining
Leases and the Environmental Authority amendment
application be granted, subject to conditions. On 26 May
2022, the Coordinator-General issued her change report to
the stated conditions for the Environmental Authority for New
Acland Mine Stage 3. The Coordinator-General’s change
report satisfies a condition to the Land Court of Queensland’s
recommendation that New Acland Mine Stage 3 Mining
Leases and the Environmental Authority amendment be
granted. Following this, on 28 June 2022 the Department
of Environment and Science issued the New Acland Mine
Stage 3 Environmental Authority. The Environmental
Authority includes the Coordinator-General’s amended stated
conditions in accordance with the Land Court of Queensland’s
recommendation that New Acland Mine Stage 3 Mining Leases
and Environmental Authority application be granted.
QUEENSLAND BULK HANDLING (QBH)
QBH exported 2.6Mt of coal for the financial year (2021:
3.9Mt). This is a 32 per cent decrease on the comparative
period due to reduced throughput associated with the
transition of New Acland Mine into care and maintenance.
QBH realised opportunities during the year to meet short-
term additional stockpile demand from current customers
and has engaged with new customers for coal and non-coal
throughput. The operation will continue to focus on new
customers and markets where it makes financial sense to do so.
The Company’s pastoral operations benefited from continued
strong cattle prices. Over the 12 months, 1,051 weaners
were fattened and sold, an increase of five per cent on the
comparative period. The majority of weaners were bred at
Acland Pastoral Company (APC) and fattened at Bengalla
Agricultural Company (BAC). The Company has also focused
on developing BAC’s breeding program, ending the year with
343 head of cattle, which includes 148 BAC bred weaners.
APC cropping operations were impacted by heavy rains in late
calendar year 2021 which delayed the winter crop harvest and
significantly impacted grain yield and quality. The harvest of
summer crops at APC and BAC was similarly affected from rain
events in Autumn 2022. APC has over 700 hectares of wheat
and barley currently growing.
BAC trialled several crops including corn and grain sorghum
over summer and currently have wheat and lucerne crops
in the ground. The Company is focussed on further capital
improvements, including an increase in the land under irrigation
and additional upgrades to pump and pipe networks.
The investment in farming equipment and silos at APC has
been critical in reducing operating costs and increasing storage
capacity to reduce grain loss and maximise revenues.
The above average rainfall has increased weed control costs
at both APC and BAC.
BRIDGEPORT ENERGY PTY LTD (BEL)
Oil production totalled 286,514bbl. This was a nine per cent
decrease on the comparative period due to the natural decline
in the oil resource and delays with wells coming online.
Following strengthened market demand, oil prices have
remained robust with BEL achieving an average realised price
of US$96.36/bbl (2021: US$57.77/bbl). This represents an
increase 67 per cent to the comparative period. Increased
prices have significantly improved BEL’s full year result,
reporting revenue of A$33.5 million, an increase of
$11.4 million to the comparative period.
20
2022 ANNUAL REPORT NEW HOPE GROUP On 1 November 2021, Vintage Energy Limited (ASX: VEN)
announced a tripling of Vali field 2P Reserves. The Company
has assessed the results of the Vali gas discovery, in which
it holds 25 per cent interest, and supported the change in
2P Reserves. As at 31 July 2022, three Vali wells had been
completed and the fourth undergoing testing, with all major
equipment in country and ready for installation. First gas is
expected by the end of 31 January 2023.
MALABAR RESOURCES LIMITED
The Company, through a wholly owned subsidiary acquired a
15 per cent interest in Malabar Resources Limited (Malabar)
for a total investment of $94.4 million, paid in July 2022.
Malabar’s flagship asset is the Maxwell Mine, an underground
metallurgical coal project located 10kms south-west of
Muswellbrook in the Hunter Velley.
The Company’s investment in Malabar aligns with its strategy
to invest into low-cost coal assets with long life approvals.
The acquisition diversifies the Company’s portfolio by
providing exposure to metallurgical coal, mined by low impact
underground methods, and is expected to provide attractive
investment returns over the life of the project.
Mining leases for the Maxwell Mine were granted in November
2021 and the project has received final state and federal
approvals. The estimated life of the mine is greater than
25 years with proved and probable reserves totalling
144 mt. Malabar’s assets also include:
` Approved 25MW Maxwell Solar Farm (Stage One) located
on more than 105 hectares of rehabilitated mine land
within the NSW Government’s designated Hunter-Central
Coast Renewable Energy Zone and with close proximity
to high voltage network infrastructure, with the capacity to
significantly increase large-scale solar generation and battery
storage;
` Spur Hill exploration project (EL 7429); and
` Agricultural assets including the Merton Vineyard. Malabar’s
strategy is to deliver low-impact underground mines
which target metallurgical products, while co-existing and
facilitating substantial sustainable, renewable enterprises.
OUTLOOK
The Company remains firm that the demand for high quality, low
emission thermal coal, produced from our Australian operations
is critical to supporting the transition to a decarbonised economy.
Government policy will provide a framework as to how the
transition to a decarbonised economy will occur, and the
Company will work within the policy framework to ensure that
low-cost, reliable energy continues to be provided to those in
need, including the Australian domestic market.
The Company’s long-term strategy is to remain focused on
coal, both through its existing thermal portfolio and in new
opportunities in either metallurgical or thermal coal production.
The Company will continue to invest in assets that suit its
portfolio and provide shareholders with strong cash generation,
and consistent returns. The Company believes that Australia’s
economy is dependent on fossil fuels and is proud of the
contributions it makes to local, state and federal Government
departments which help to underpin the living standards
of all Australians.
Subject to New Acland receiving its final approval, with the
recent announcement regarding the granting of the Stage
3 (New Acland Mining Leases), the Company looks forward
to adding safe and efficient production to its portfolio in the
coming 12 months. Coupled with the recent investment in
Malabar Resources and the increase in production at Bengalla,
the Company looks forward to a future of growth, capitalising
on the current high price environment.
The significant cash build, the near-term price outlook and the
Company’s generous franking account balance has enabled the
Board to reward shareholders with a fully franked Final Dividend
of 31.0 cents per share, and an additional fully franked Special
Dividend of 25.0 cents per share, both payable on 8 November
2022 to shareholders on record as at 25 October 2022.
As part of its broader capital management strategy, the
Company is also looking at options to return a portion
of its surplus capital to securityholders. The Company is
reviewing several options in this regard to ensure any capital
management decision is the most efficient and value-
enhancing. These options include the management of dilution
associated with the existing Convertible Notes, and options
around the most efficient use of our significant franking account
balance. Future surplus capital deployment may include, M&A
opportunities aligned with our strategy, returning funds to
securityholders through mechanisms such as buy-backs (either
on or off-market), dividends or capital returns or entry into
cash-settled equity transactions with a bank counterparty to
hedge dilution associated with the existing Convertible Notes.
21
TAX CONTRIBUTION REPORTDIRECTORS’ REPORTSUSTAINABILITY REPORTFINANCIAL REPORTOTHER INFORMATIONOPERATIONS REVIEW NEW HOPE GROUP 2022 ANNUAL REPORT RISK
MANAGEMENT
The Company has a robust risk management framework
which is overseen by the Audit and Risk Committee (ARC), the
Sustainability and People Committee (SPC), and the Board of
Directors. The framework assists the organisation to identify,
classify, document, manage and report on the risks facing
the Company. Each identified risk is tracked in a risk register
and allocated to an accountable individual who manages and
reports on the risk.
The perceived likelihood and potential consequence of each risk
are used to determine the risk level, which in turn determines
the actions required to manage the risk and reporting
obligations. The risk management framework requires that
all significant risks have a specific documented action plan,
mitigation measures, and that updates are provided to the
Board of Directors on a periodic basis.
A summary of the significant risks facing the entity include
the following:
RISK CATEGORY
POTENTIAL RISKS
POTENTIAL OPPORTUNITIES
APPLICATION TO NEW HOPE
Social Licence
New Acland Stage
3 Approval
A number of stakeholders
have interest in the impact
our operations have on the
surrounding environment and
the communities in which
we operate. In addition, the
Company is subject to stringent
regulation and reporting
obligations spanning multiple
government jurisdictions
and departments. Failure to
adequately acknowledge and
address the interests of these
stakeholders could negatively
impact the operations of the
Company, and potentially
result in an inability to secure,
maintain or renew the regulatory
approvals required to continue
the operations of the Company.
There is a risk that the Water
License approval for the New
Acland Stage 3 expansion is not
obtained. This approval is critical
to ensure operations continue
beyond Stage 2 as reserves on
the existing lease are depleted.
Risks associated with prolonged
approval delays or an inability to
secure project approvals include,
but are not limited to, the further
impairment of asset values, take
or pay commitments exceeding
project requirements or the
potential loss of key long-term
customers.
The Company engages appropriately
qualified experts to both manage
the underlying risks and to engage
proactively with stakeholder groups.
The Company also utilises a variety
of systems to manage and report
upon the Company’s performance
against those obligations.
The Company has developed
valuable and longstanding
relationships with key
stakeholder groups and is
well respected in the areas
that we operate. Many of
these stakeholder groups
independently advocate on
behalf of the Company which
is a critical component in
developing relationships in
new areas of operation or with
emerging stakeholder groups.
Obtaining the necessary water
license for the New Acland
Stage 3 project will secure
employment for the existing and
proposed workforce, provide
continuing economic stimulus to
the local community and deliver
value to shareholders.
The Company has engaged
appropriately qualified experts to
both manage the underlying risks
and to engage proactively with
stakeholder groups. The Company
also utilises a variety of systems
to manage and report upon the
Company’s performance against
those obligations.
Detailed impairment indicator
assessments for the assets have
been undertaken (detailed in Note 14
of the Financial Statements), with no
impairment indicators being identified
at 31 July 2022.
As Stage 2 coal has been depleted,
supplier and customer commitments
have been appropriately managed
while Stage 3 approvals continue to
be pursued.
22
2022 ANNUAL REPORT NEW HOPE GROUP RISK CATEGORY
POTENTIAL RISKS
POTENTIAL OPPORTUNITIES
APPLICATION TO NEW HOPE
Project
Development
The Company’s ongoing
economic sustainability is
dependent on successful
identification and development
of projects. Failure to do so
effectively will limit the Group’s
longevity.
The Company actively seeks to
identify potential opportunities
that offer the prospect of
building shareholder value. The
Company acknowledges that
sustainable long-term value
creation can only be achieved
by respecting and delivering
positive outcomes for the
broader stakeholder community.
The Company is actively pursuing
growth through both development
of existing assets and the acquisition
of complementary assets. Such
activities will ultimately require the
deployment of capital. To ensure
that capital is deployed in an optimal
manner, the Company undertakes
rigorous and well documented due
diligence using a mix of internal and
external subject matter experts prior
to making any investment decisions.
All significant project development
and acquisition transactions require
approval from the Board of Directors.
The Company engages with the
Bengalla Mine management team
on an ongoing basis with the aim
to identify, monitor, mitigate and
actively manage risks, not only
unique to Bengalla, but also across
the Group.
Knowledge gained from risk
identification and management
at one or more mines, including
approaches to mitigating and
managing those risks, can be
shared across management
teams, thereby improving the
Group’s overall risk management
strategy.
Bengalla Joint
Venture
Failure of
Infrastructure
The Company has an active
role in the direct management
of day-to-day activities for the
Bengalla Mine. The Bengalla
Mine faces many of the same
risks as the New Acland
mining operation. Bengalla
Mine management is tasked
with discharging these duties
day to day, with the Company
providing oversight and
governance via participation
in the Bengalla Joint Venture
management committee and
by monitoring operational
performance.
The Company is highly
dependent upon the availability
and effectiveness of key
infrastructure in order to produce
and bring products to market.
Market Risk
The Company's activities expose
it to a variety of financial risks
including, but not limited to,
commodity price risk, foreign
currency risk and interest rate
risk.
Monitoring and early
identification of potential failures
will improve productivity and
performance outcomes for the
Company. There is ongoing
effort to identify opportunities
and adopt processes that will
reduce infrastructure failure or
reduce the cost to the Company
in the event that a failure does
occur.
Opportunities exist to refine the
existing policies for commodity
price hedging and foreign
exchange hedging such as
investigating the use of different
hedging instruments or the
level of cover that is taken. The
Company has the ability to
consider active management of
any interest rate and commodity
price exposures.
The Company undertakes timely and
effective preventative maintenance
as well as regular third-party
inspections of key infrastructure
to minimise the risk of unforeseen
failure. The Company also actively
participates in a comprehensive
insurance program to ensure assets
are insured for appropriate value.
The Company'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
to hedge risk exposures associated
with fluctuations in foreign exchange
rates and has placed commodity
hedge contracts during opportunistic
pricing periods.
23
TAX CONTRIBUTION REPORTDIRECTORS’ REPORTSUSTAINABILITY REPORTFINANCIAL REPORTOTHER INFORMATIONOPERATIONS REVIEW NEW HOPE GROUP 2022 ANNUAL REPORT RISK MANAGEMENT (CONTINUED)
CLIMATE RELATED RISKS
OUR POSITION ON CLIMATE CHANGE AND OUR
ROLE IN THE GLOBAL ENERGY TRANSITION
Climate change is a critical global issue which, together with
the transition to a lower carbon economy, poses potential risks
to our business over the short, medium and long term.
The identification and management of climate-related risks is
integrated into the Company’s risk management framework. As
with other risks, the scope of the framework applies to climate-
related risks that are material to the achievement of the key
objectives of the Company and related business plans.
The Company’s analysis of material climate-related risks
and identified mitigation measures is included in the
summary table below.
The Company most recently published a detailed overview
of its position on climate change, and its resilience to lower-
carbon scenarios, in its 2021 Sustainability Report.
The Company expects to periodically provide updated
statements relating to climate change issues, including the
company’s approach to governance, strategy, risk management
and metrics and target. The Company expects to provide
its next update around the time of release of the
Company’s Annual Report.
RISK CATEGORY RISK AND DESCRIPTION
POTENTIAL IMPACT
MITIGATION OR OPPORTUNITY
Policy and Legal Legislative and Policy Changes
Changes in government policies
that restrict the mining or use of
coal or the use of land for coal
mining and related activities.
The introduction of new and/or
more stringent domestic policies
such as carbon pricing and/or
tightened safeguard mechanisms
targeting scope 1 and/or 2
GHG emissions.
Changes in government policy
relating to either coal consumption
or energy generation in
customer economies.
The ability of the Company to
develop new coal projects or to
extend the life of existing projects
could be impacted, together with
increased project risk and cost
associated with the granting
of approvals.
New and/or more stringent carbon
pricing mechanisms could reduce
the demand for thermal coal as a
source of energy.
The Company could incur
increased operational costs as a
result of the potential introduction
of regulatory carbon pricing
mechanisms and/or
trading systems.
The Company may be required to
source and procure carbon offsets
from the voluntary market.
Reduced demand for thermal coal
in key customer markets could
reduce revenues.
The Company could incur
additional costs establishing
supply to new markets.
The Company continues to proactively
monitor the policy environment both
domestically and internationally,
including social and government
appetite for changes that may
impact the Group. The Company
also engages with domestic
policymakers to advocate for positive
policy outcomes.
The Bengalla mine has existing
approvals that extend out to 2039,
enabling it to avoid potentially long
and costly mine extension approvals.
If the New Acland expansion is
approved, the New Acland Mine will
have an approval term matching the
remaining mine life.
The Company has established
detailed GHG emissions baselines
for its assets. A range of potential
emissions abatement options have
been identified, including energy
efficiency and energy productivity
projects, which will be considered
for progression in line with relevant
internal governance and project
development guidelines.
The Company will explore access to
voluntary carbon offset markets as
part of an overall strategy to reduce
net emissions in line with mandated
emissions reduction pathways.
24
2022 ANNUAL REPORT NEW HOPE GROUP RISK CATEGORY RISK AND DESCRIPTION
POTENTIAL IMPACT
MITIGATION OR OPPORTUNITY
Policy and Legal Exposure to litigation and regulatory scrutiny
Increased litigation from
communities and stakeholders
against governments
and companies.
Litigation may include claims
for compensation for damages
attributed to climate-related
impacts or inadequate disclosure
of climate risks, or orders to
wind back approvals for existing
operations or to block approval of
expanded operations.
Increased costs associated with
defending legal claims (including
public liability claims) and/or
environmental and development
approvals for new coal projects or
the extension of existing projects.
Reputational damage because of
stakeholders’ perception that the
Company’s operations heighten
climate change risk, together with
ongoing stigmatisation of the
coal sector.
Project risk associated with
injunctive actions against thermal
coal mining operations.
Market
Market driven shift to a lower carbon economy
An accelerated or disorderly
transition toward a net zero carbon
global economy has the potential
to reduce global demand for
thermal coal.
Markets will be affected by the
transition to a net zero carbon
global economy through shifts in
supply and demand for certain
commodities, products, and
services as climate-related risks
and opportunities are increasingly
defining decisions and actions.
Rational investment decisions
require clear signals for decision
makers, with a level of certainty
about the path and pace of
transition. A disorderly or
fragmented transition to the
zero-carbon economy may lead to
sub-optimal allocation of financial,
human and natural capital.
The Company will continue to
work closely with its key customers
to ensure it has clear foresight
around near and medium-term
demand forecasts.
The number and mix of market
participants could lead to increased
volatility in the supply and pricing
of thermal coal with associated
risks to cashflows.
The Company has a long-standing
reputation as a responsible
operator and continues to operate
in accordance with conditions
of approved mining leases and
environmental authorities.
The Company has adopted a
proactive approach to assessing
ongoing climate-related impacts on
the coal industry through regular
participation in industry groups such
as Queensland Resources Council
and Minerals Council of Australia
and other stakeholder groups,
and active engagement with state
and federal regulators to monitor
any potential challenges to
existing approvals.
The Company monitors relevant
legal proceedings across courts
with relevant jurisdiction and seeks
legal advice on such developments
when required.
The Company provides transparent
disclosure of climate-related
impacts and risks to investors
and stakeholders.
The Company will continue to work
closely with its key customers to
ensure it has clear foresight
around near and medium-term
demand forecasts.
The Company’s largest asset
(Bengalla) produces high calorific
value coal which is forecast to
remain in demand during a range of
scenarios for transition to a net zero
carbon economy.
25
TAX CONTRIBUTION REPORTDIRECTORS’ REPORTSUSTAINABILITY REPORTFINANCIAL REPORTOTHER INFORMATIONOPERATIONS REVIEW NEW HOPE GROUP 2022 ANNUAL REPORT RISK MANAGEMENT (CONTINUED)
RISK CATEGORY RISK AND DESCRIPTION
POTENTIAL IMPACT
MITIGATION OR OPPORTUNITY
Market
Market driven shift to a lower carbon economy (continued)
Pressure from external
stakeholders could see some
producers exit the thermal coal
industry with heightened threat
of stranded assets and with a
resultant reduction in supply and
increase in pricing for remaining
industry participants.
An accelerated transition may
bring forward requirements to
resource and execute exit and/or
business transformation
strategies, including mine
rehabilitation activities.
Pricing for financing and key
services such as insurance may
continue to increase, or access
may become more conditional,
if the pool of parties prepared
to partner with the thermal coal
industry reduces significantly.
Access to capital and insurance
Driven by investor concern over
climate-related risks, changes
to ESG policies by funding and
insurance providers may limit
access to and increase the cost of
capital and insurance.
Technology
Substitution of thermal coal for lower emissions technologies
There are technological risks
associated with the transition
away from thermal coal toward
lower emissions and renewable
energy sources.
Demand for thermal coal could
be impacted if alternative energy
sources become more competitive
and reliable, relative to
thermal coal.
Disruptions during the domestic
energy transition, including the
removal of baseload power from
the market, could affect the cost
and reliability of energy supply to
our operations.
The Company will continue to stress-
test the Company’s portfolio and
business strategy against a range of
scenarios outlined by the International
Energy Agency (IEA), and other
relevant third parties, on the future of
the global energy and seaborne coal
markets.
The Company undertakes progressive
rehabilitation of all mine sites, thereby
reducing exposure to legacy risks.
The Company will monitor market
conditions and explore opportunities
to diversify funding sources, as well
as maintain active engagement with
existing and future potential providers.
The Company will continue to ensure
that all existing obligations are met
with regard to existing operations.
The Company will continue its
disclosures on climate-related risks
and opportunities.
The Company will continue to
advocate for the important role of
high-quality thermal coal in reducing
global emissions.
As the global economy transitions
towards lower emission energy
sources, Paris Agreement-aligned
scenarios forecast that there will be
ongoing demand in the medium term
for high quality thermal coal to supply
high efficiency low emission coal fired
power stations in order to generate
affordable baseload power.
The Company’s high-quality thermal
coal reserves are ideally placed to
meet that demand.
The Company will continue to monitor
developments that have application
to the mining and broader energy
industries and consider investing in
new technologies including those that
improve energy efficiency and lower
carbon intensity and nature-based
and other forms of carbon
offsetting projects.
26
2022 ANNUAL REPORT NEW HOPE GROUP RISK CATEGORY RISK AND DESCRIPTION
POTENTIAL IMPACT
MITIGATION OR OPPORTUNITY
Reputation
Stakeholder exclusion
Suppliers and other stakeholders
include climate related
considerations into their decision-
making processes around
businesses with which they will
transact and engage.
Community sentiment is
increasingly affected by negative
perceptions about thermal coal.
Risk of the loss of support from
suppliers, leading to increased
costs and operational risks from
a more fragmented supply chain.
Reduced community support
may impact essential negotiations
with landowners and other
local stakeholders.
Reduced community support may
lead to legal challenges and an
unfavourable political environment
for the approval of mining projects.
The ability to attract and retain a
suitably skilled workforce could be
impacted by employee perceptions
about what it means to work in the
coal mining industry.
Physical
Climate Change
Increases in the frequency and
intensity of extreme weather
events.
Rising mean temperatures
and long-term shifts in
climate patterns.
Disruptions to mining and port
operations, or damage to or loss
of key infrastructure, resulting in
delays, increased operating costs
and lost revenue.
Rising mean temperatures may
impact workplace health and
safety and the ability of our
workforce to carry out their job in
acceptable conditions.
Intensity and duration of droughts
may have a longer-term impact on
operational reliability or longevity
of mining equipment.
The Company has strong relationships
with key stakeholders and maintains
dialogue covering the full spectrum
of environmental, sustainability and
governance issues.
The Company will continue to sponsor
local schools and to provide university
and trade pathways to support the
next generation of our workforce.
The Company will continue to monitor
requirements in respect of and
communicate transparently in relation
to disclosure of climate-related
impacts and risks to investors and
stakeholders.
The Company operates in accordance
with world-class environmental
practices in a highly regulated
environment which supports our
social licence to operate.
The Company has land holdings and
assets which in the medium to long
term may be re-purposed for alternate
uses, such as enhanced biodiversity
and conservation zones, renewable
energy generation and other industrial
or commercial uses which provide
opportunity for workforce transition
and enhanced community and local
economic outcomes.
The Company actively manages climate
change risks through our Risk Action
Plan and the standard risk management
process which incorporates business
continuity and crisis management
planning to aid preparedness.
The Company’s Bengalla Mine
has implemented various water
management initiatives, including
through securing additional water
discharge rights and through the
increased capacity of its discharge dam.
The Company’s New Acland Mine
utilises recycled wastewater, increasing
its resilience in the event of drought and
avoiding undersupply of water.
The Company continues to investigate
opportunities to minimise water usage
and secure alternative, reliable water
sources (including recycled water
sources, where available) to strengthen
our operations’ resilience to water
availability risks.
27
TAX CONTRIBUTION REPORTDIRECTORS’ REPORTSUSTAINABILITY REPORTFINANCIAL REPORTOTHER INFORMATIONOPERATIONS REVIEW NEW HOPE GROUP 2022 ANNUAL REPORT RISK MANAGEMENT (CONTINUED)
INSURANCE OF OFFICERS
In accordance with the provisions of the Corporations Act 2001,
New Hope Corporation Limited has a Directors’ and Officers’
Liability policy covering Directors and Officers of the Group. The
insurance policy prohibits disclosure of the nature of the liability
insured against and the amount of the premium.
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 Company with leave of the Court under section 237 of the
Corporations Act 2001.
SIGNIFICANT CHANGES IN
THE STATE OF AFFAIRS
Other than this and matters outlined 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
Company, to affect substantially the operations or results of the
consolidated entity in subsequent financial years.
MATTERS SUBSEQUENT TO THE
END OF THE FINANCIAL YEAR
NEW ACLAND MINING LEASE APPROVAL
On 26 August 2022, the Minister for Resources granted the
New Acland Mine Stage 3 Mining Leases. The grant of the
Mining Leases follows an independent assessment by the
Minster for Resources including the consideration of the Land
Courts recommendation that the New Acland Stage 3 Mining
Leases be granted. The only remaining approval required
before mining can begin is the granting of the Associated
Water Licence by the Department of Regional Development,
Manufacturing and Water.
CONVERTIBLE BOND CONVERSION
On 25 August 2022, the Company received a Conversion
Notice in relation to holder of the Company’s Convertible Notes
electing to convert their Notes in accordance with the conditions
of the Notes into ordinary shares in New Hope Corporation
Limited at the conversion price. The number of ordinary shares
that were issued on 6 September 2022 under the Conversion
Notice was 106,746.
On 8 September 2022, the Company received a Conversion
Notice in relation to holder of the Company’s Convertible Notes
electing to convert their Notes in accordance with the conditions
of the Notes into ordinary shares in New Hope Corporation
Limited at the conversion price.
28
The number of ordinary shares that were issued on
14 September 2022 under the Conversion Notice was 426,985.
There are no other events that have occurred since 31 July 2022
which require disclosure.
LIKELY DEVELOPMENTS
AND EXPECTED RESULTS OF
OPERATIONS
The activities of the consolidated entity in the 2023 Financial
Year are expected to be similar to those of the 2022 Financial
Year. The Company will disclose further information on likely
developments in the operations of the consolidated entity and
the expected results of operations as appropriate.
CORPORATE GOVERNANCE
STATEMENT
The Company’s Corporate Governance statement can be
accessed on the New Hope Corporation website:
newhopegroup.com.au/corporate-governance
WORKPLACE COMPLIANCE
The Company has complied with the Workplace Gender
Equality Act 2012 and has lodged its report with the
Workplace Gender Equality Agency. The report can be a
ccessed on the New Hope Corporation website at:
newhopegroup.com.au/corporate-governance
SUSTAINABILITY
Since 2017 the Company has published an annual Sustainability
Report which has reported against various environmental,
social and governance metrics. The format and content of the
Sustainability Report has evolved over time and will this year be
provided as a section within the Company’s Annual Report.
STATUTORY COMPLIANCE
ENVIRONMENTAL COMPLIANCE
During the 2022 financial year, the Company received two
Penalty Infringement Notices, one relating to a production oil
leak ($13,785) and the other relating to the late submission of
an Annual Return ($3,336). The Company was not prosecuted
for any breach of environmental laws during the financial year.
2022 ANNUAL REPORT NEW HOPE GROUP INFORMATION
ON DIRECTORS
ROBERT D. MILLNER
(NON-EXECUTIVE CHAIRMAN)
TODD J. BARLOW B.BUS, LLB (HONS)
(NON-EXECUTIVE DIRECTOR)
EXPERIENCE
EXPERIENCE
Robert D. Millner is Chairman of the Company’s holding
company Washington H. Soul Pattinson and Company Limited
(WHSP). Robert D. Millner joined the Board of New Hope
Corporation Limited on 1 December 1995 and was appointed
Chairman on 27 November 1998. He has extensive experience
in the investment industry.
Todd J. Barlow joined the Board of New Hope Corporation
Limited on 22 April 2015. He is the Chief Executive Officer
and Managing Director of Washington H. Soul Pattinson
and Company Limited since 2015. Prior to this, he was the
Managing Director of Pitt Capital Partners Limited for
five years.
OTHER CURRENT LISTED DIRECTORSHIPS
` Washington H. Soul Pattinson and Company Limited –
Appointed 1984, Chairman since 1998
` Apex Healthcare Berhad – Appointed 2000
` BKI Investment Company Limited – Appointed 2003,
Chairman since 2003
` Brickworks Limited – Appointed 1997, Chairman since 1999
` TPG Corporation Limited – Appointed 2000
` TPG Telecom Limited – Appointed 2020
` TUAS Limited – Appointed 2020
` Aeris Resources Limited – Appointed 2022
FORMER LISTED DIRECTORSHIPS IN LAST
THREE YEARS
` Australian Pharmaceutical Industries Limited – Appointed
2000, resigned July 2020
` Milton Corporation Limited – Appointed 1998, resigned
October 2021
SPECIAL RESPONSIBILITIES
` Chair of the Board
INTERESTS IN SHARES AND OPTIONS
` 5,222,774 Ordinary Shares in New Hope Corporation
Limited (comprising 279,559 shares directly held and
4,943,215 shares held through family related interests)
` NIL Options or Performance Rights over Ordinary Shares in
New Hope Corporation Limited
Todd J. Barlow has extensive experience in mergers and
acquisitions, equity capital markets and investing, and has been
responsible for a number of WHSP’s investments since joining
the WHSP Group in 2014. His career has spanned positions in
law and investment banking in Sydney and Hong Kong. Todd
J. Barlow has a Bachelor of Business and Bachelor of Laws
(Honours) from the University of Technology, Sydney.
OTHER CURRENT LISTED DIRECTORSHIPS
` Washington H. Soul Pattinson and Company Limited –
Appointed 2015
FORMER LISTED DIRECTORSHIPS IN LAST
THREE YEARS
` Palla Pharma Limited – Appointed 2015, resigned 2020
SPECIAL RESPONSIBILITIES
` Chair of the Nomination Committee
` Member of Sustainability & People Committee
` Member of the Audit and Risk Committee
INTERESTS IN SHARES AND OPTIONS
` 19,900 Ordinary Shares in New Hope Corporation Limited
` NIL Options or Performance Rights over Ordinary Shares in
New Hope Corporation Limited
29
TAX CONTRIBUTION REPORTDIRECTORS’ REPORTSUSTAINABILITY REPORTFINANCIAL REPORTOTHER INFORMATIONOPERATIONS REVIEW NEW HOPE GROUP 2022 ANNUAL REPORT INFORMATION ON DIRECTORS (CONTINUED)
JACQUELINE E. MCGILL AO BSC, MBA, GAICD
(INDEPENDENT NONEXECUTIVE DIRECTOR)
THOMAS C. MILLNER
(NON-EXECUTIVE DIRECTOR)
EXPERIENCE
EXPERIENCE
Jacqui McGill AO was appointed as a Non-Executive Director of
the Company on 22 June 2020. She is a highly accomplished
Executive and Non-Executive Director with a career spanning
30 years across a range of commodities.
Jacqui McGill is a Non-Executive Director of Goldfields,
29Metals, the Royal Automobile Association of South Australia,
and a Trustee of Adelaide Festival Centre.
During her executive career she held senior leadership roles
with BHP including leadership of BHP Mitsui Coal and Olympic
Dam Corporation, as well as other senior leadership roles in
BHP’s copper, uranium, and iron ore divisions.
Jacqui McGill has a Bachelor of Science, an MBA and an
honorary doctorate from Adelaide University. She is a Graduate
of the Australian Institute of Company Directors and was
included in the 2020 Australia Day honours list recognising her
services for diversity and inclusion.
OTHER CURRENT LISTED DIRECTORSHIPS
` 29 Metals – Appointed as Non-Executive Director July 2021
` Gold Fields Limited – Appointed as an Independent Non-
Executive Director November 2021
FORMER LISTED DIRECTORSHIPS IN LAST
THREE YEARS
` NIL
SPECIAL RESPONSIBILITIES
` Chair of the Sustainability & People Committee
` Member of the Audit and Risk Committee
` Member of Nomination Committee
INTERESTS IN SHARES AND OPTIONS
` 50,000 Ordinary Shares in New Hope Corporation Limited
` NIL Options or Performance Rights over Ordinary Shares in
New Hope Corporation Limited
Thomas C. Millner joined the Board of New Hope Corporation
Limited on 16 December 2015. He is Director and Portfolio
Manager of Contact Asset Management. He is also a Non-
Executive Director of Washington H. Soul Pattinson and
Company Limited.
Thomas C. Millner has over 20 years’ experience within the
financial services and funds management industry and over
10 years as a Director of Australian publicly listed companies.
Thomas C. Millner has a Bachelor of Industrial Design degree
and a Graduate Diploma in Applied Finance.
He is a Fellow of the Financial Services Institute of Australasia
and Graduate of the Australian Institute of Company Directors.
OTHER CURRENT LISTED DIRECTORSHIPS
` Washington H. Soul Pattinson and Company Limited –
Appointed 2011
FORMER LISTED DIRECTORSHIPS IN LAST THREE
YEARS
` NIL
SPECIAL RESPONSIBILITIES
` NIL
INTERESTS IN SHARES AND OPTIONS
` 4,874,368 Ordinary Shares in New Hope Corporation
Limited (comprising 21,153 shares directly held and
4,853,215 shares held through family related interests)
` NIL Options or Performance Rights over Ordinary Shares in
New Hope Corporation Limited
30
2022 ANNUAL REPORT NEW HOPE GROUP IAN M. WILLIAMS BEC, LLB, GAICD
(INDEPENDENT NON-EXECUTIVE DIRECTOR)
STEVEN R. BOULTON
(INDEPENDENT NON-EXECUTIVE DIRECTOR)
EXPERIENCE
EXPERIENCE
Ian M. Williams was appointed as a Non-Executive Director of
the Company on 1 November 2012.
Ian M. Williams is an experienced Non-Executive Director and
corporate advisor and was a corporate partner of international
law firms Herbert Smith Freehills and Ashurst for 20 years. He
is a graduate of Sydney University and Oxford University and
the Australian Institute of Company Directors.
Steven R. Boulton recently joined the Board of New Hope
Corporation Limited on 29 July 2022. He is an accomplished
CEO and board director with more than 40 years of experience
in infrastructure, investment/funds management and asset
management sectors.
He is Chairman of both SeaSwift, and a Non-Executive Director
of Fulton Hogan and Airlie Energy.
He is Chair of Lindsay Australia and NXT Building Group, a
Director of KGL Resources, National Group Corporation, Spicers
Paper, Softbank Robotics Australia, Stoddart Group and
Baseball Australia and Vice-President of the Australia Japan
Business Co-operation Committee.
OTHER CURRENT LISTED DIRECTORSHIPS
` Lindsay Australia Limited – Appointed September 2021
` KGL Resources Limited – Appointed June 2022
FORMER LISTED DIRECTORSHIPS IN THE LAST
THREE YEARS
` NIL
SPECIAL RESPONSIBILITIES
` Chair of the Audit and Risk Committee
` Member of the Sustainability & People Committee
` Member of Nomination Committee
` Director of New Hope Japan KK
INTERESTS IN SHARES AND OPTIONS
` NIL Ordinary Shares in New Hope Corporation Limited
` NIL Options or Performance Rights over Ordinary Shares in
New Hope Corporation Limited
Steven R. Boulton has a Graduate Diploma in Applied
Corporate Governance, a Bachelor of Business (Business
Management & HR Management) degree and a Master of
Technology Management. He is a Fellow of the Australian
Institute of Company Directors, the Governance Institute of
Australia and Australian Institute of Managers and Leaders.
He is also a Certified Professional of the Australian Human
Resources Institute.
OTHER CURRENT LISTED DIRECTORSHIPS
` NIL
FORMER LISTED DIRECTORSHIPS IN THE LAST
THREE YEARS
` NIL
SPECIAL RESPONSIBILITIES
` NIL
INTERESTS IN SHARES AND OPTIONS
` NIL Ordinary Shares in New Hope Corporation Limited
` NIL Options or Performance Rights over Ordinary Shares in
New Hope Corporation Limited
31
TAX CONTRIBUTION REPORTDIRECTORS’ REPORTSUSTAINABILITY REPORTFINANCIAL REPORTOTHER INFORMATIONOPERATIONS REVIEW NEW HOPE GROUP 2022 ANNUAL REPORT INFORMATION ON DIRECTORS (CONTINUED)
COMPANY SECRETARY
DOMINIC H. O’BRIEN BA, LLB (HONS), LLM, GAICD
(COMPANY SECRETARY APPOINTED
1 FEBRUARY 2022)
Dominic H. O’Brien joined the Company on 1 December 2020
as General Manager, People and Legal. Dominic H. O’Brien
was appointed in 2022 as Executive General Manager and
Company Secretary, leading the Company’s People, Legal,
Company Secretary, Corporate Affairs, Risk and Health &
Safety functions.
Dominic H. O’Brien has over 23 years’ experience as a legal
practitioner and in senior management and executive roles
gained in Australia and internationally, having worked at Allens
Lawyers, MIM Holdings, Xstrata and Peabody Energy during
his career. Dominic H. O’Brien holds a Bachelor of Arts and
Bachelor of Laws (Hons) from the University of Queensland,
a Master of Laws from the Queensland University of
Technology and is a Graduate of the Australian Institute of
Company Directors.
ROBERT J. BISHOP B.COMM, B.BUS (MAR), GAICD
(COMPANY SECRETARY UNTIL
1 FEBRUARY 2022)
Robert J. Bishop joined the Company in 2019 as General
Manager of Corporate Development and in 2020 was
appointed as Chief Financial Officer and Company Secretary,
assuming responsibility for the Group’s finance and company
secretarial functions. In 2022, Robert J. Bishop was appointed
as Chief Executive Officer and ceased being Company
Secretary on 1 February 2022.
Robert J. Bishop has more than 20 years’ experience in the
resources and manufacturing sectors. Prior to joining the
company, Mr Bishop was Chief Financial Officer and Company
Secretary of AMCI Investments Pty Ltd and is a Graduate of the
Australian Institute of Company Directors.
32
2022 ANNUAL REPORT NEW HOPE GROUP REMUNERATION
REPORT
The information provided in the Remuneration Report has been audited as required by section 308(3C) of the Corporations Act 2001
(Cth) (Corporations Act).
PERSONS ADDRESSED AND SCOPE OF THE REMUNERATION REPORT
The Remuneration Report sets out the remuneration information of the Company’s Key Management Personnel (KMP) in accordance
with section 300A of the Corporations Act and associated regulations. KMP are defined as those persons who, directly or indirectly,
have authority and responsibility for planning, directing and controlling the major activities of the Company.
The names and positions held by the Company’s KMPs in office at any time during the 2022 financial year are outlined below:
NAME
Directors
POSITIONS HELD
COMMENCED
CEASED
Robert D. Millner
Non-Executive Director
Chair
Todd J. Barlow
Non-Executive Director
Jacqueline E. McGill AO
Independent Non-Executive Director
Chair of the Nomination Committee
01 Dec 1995
27 Nov 1998
22 Apr 2015
24 Apr 2016
22 Jun 2020
Chair of the Sustainability and People Committee (SPC)
17 Nov 2020
Thomas C. Millner
Non-Executive Director
Ian M. Williams
Independent Non-Executive Director
Chair of the Audit and Risk Committee (ARC)
Non-Executive Director of Controlled Subsidiary
Steven R. Boulton
Independent Non-Executive Director
16 Dec 2015
01 Nov 2012
25 Nov 2019
02 Sep 2019
29 July 2022
Executive KMP
Robert J. Bishop1
Chief Financial Officer (CFO)
Company Secretary (CoSec)
Acting Chief Executive Officer (CEO)
01 Aug 2020
14 Feb 2022
17 Nov 2020
01 Feb 2022
01 Dec 2021
13 Feb 2022
Chief Executive Officer (CEO)
14 Feb 2022
Rebecca S. Rinaldi
Acting Chief Financial Officer (CFO)
01 Feb 2022
13 Feb 2022
Dominic H. O’Brien
Executive General Manager (EGM)
Chief Financial Officer (CFO)
Company Secretary (CoSec)
Former Executive KMP
14 Feb2022
01 Feb 2022
01 Feb 2022
Reinhold H. Schmidt2
Chief Executive Officer (CEO)
1 Sep 2020
14 Jan 2022
1
2
Robert J. Bishop was Acting CEO for the period 1 December 2021 to 13 February 2022 during the period of personal leave and post resignation of
Reinhold H. Schmidt.
Reinhold H. Schmidt began a short period of personal leave on 1 December 2021 which became extended to 14 January 2022.
Following this period of personal leave, Reinhold H. Schmidt resigned from his position and ceased as KMP effective 14 January 2022.
33
TAX CONTRIBUTION REPORTDIRECTORS’ REPORTSUSTAINABILITY REPORTFINANCIAL REPORTOTHER INFORMATIONOPERATIONS REVIEW NEW HOPE GROUP 2022 ANNUAL REPORT REMUNERATION REPORT (CONTINUED)
REMUNERATION GOVERNANCE
The performance of the Company can only be achieved by
identifying and retaining high calibre Directors and Executives
with appropriate experience and capability. Developing an
appropriate remuneration strategy is a key factor in ensuring
employees are engaged and motivated to perform over the
long-term.
The Board maintains overall responsibility for the remuneration
of the Executive KMP and ensures the structures are
competitive and aligned with the long-term interests of the
Company and shareholders. While the Board maintains
overall responsibility and approval for the Executive KMP
remuneration, it delegates oversight to the Sustainability and
People Committee (SPC, formerly known as the Health, Safety,
Environment and People Committee) to regularly review,
report and make recommendations to the Board in relation to
remuneration.
To ensure that remuneration is consistent with current industry
practices, the SPC seeks and considers advice from a wide
range of sources including:
` Shareholders;
` External remuneration consultants;
` Other experts and independent consultants;
` Legal advisors;
` Management; and
` Independent surveys, reviews, market information and
reports.
Advice from other experts and independent consultants will
typically cover Non-Executive Director fees, Executive KMP
remuneration and pay structures and equity plans.
The SPC has procedures in place to ensure that all
engagements with independent external remuneration
consultants, and recommendations (if any) are free from undue
influence. At times, remuneration consultants may be required
to interact with management to obtain the relevant information
needed to form any remuneration recommendations. In
these instances, a Non-Executive Director will always have
oversight of interactions between independent consultants
and management. The Board confirms that remuneration
recommendations made during the 2022 financial year were
made free from undue influence as these procedures were
adhered to.
REVIEW OF REMUNERATION
ARRANGEMENTS
At the commencement of the 2022 financial year, the SPC
sought information and advice (including remuneration
recommendations) from independent remuneration advisers,
Godfrey Remuneration Group Pty Ltd (GRG) on the matters
and for the professional fees set out following:
` KMP remuneration package composition, relativities and
quantum – $16,000;
` the review and re-design of STI and LTI plans applicable to
KMP and other eligible employees- $58,000.
Following the receipt of advice and recommendations from GRG,
the SPC proposed revised KMP remuneration arrangements,
both in terms of quantum and relative composition, for
appointments made to KMP roles during the 2022 financial year.
The SPC also proposed adoption of revised STI and LTI plans
designed by GRG, together with related documents prepared
by GRG to implement and administer the respective plans.
The Board consulted with management, considered feedback
received from shareholders on remuneration arrangements and
ultimately determined to implement the SPC’s recommended
proposals. During the review process, awards which might
ordinarily have been decided and granted throughout the year
were deferred pending final Board decisions arising from the
review process with intention that awardees not be prejudiced
by any delay to the timing of award grants. The outcomes of
the review process and material terms of the revised STI and
LTI plans which have been adopted are detailed in this
remuneration report.
SECURITIES TRADING POLICY
The Company has adopted a Securities Trading Policy to
assist Directors and certain employees (and their associates)
to comply with their obligations under the insider trading
prohibitions of the Corporations Act) and to protect the
reputation of the Company, its Directors and employees.
Specifically, the Company’s Securities Trading Policy prohibits
trading in Company securities by certain personnel except
during specific trading windows and with written consent.
In addition to guidance on inside information and dealing in
our securities, the Policy prohibits our Directors and certain
employees from entering into margin lending or other
secured financing arrangements, short-term trading in, or
“short-selling”, our securities, or entering into any hedging
arrangement that limits the economic risk of securities or
entitlements to acquire our securities (such as options or
share rights) including hedging or similar arrangements.
The Securities Trading Policy is available on the Company’s
website: newhopegroup.com.au/corporate-governance
34
2022 ANNUAL REPORT NEW HOPE GROUP
EMPLOYMENT CONTRACTS
Employment contracts with the Executive KMP detail the individual terms and conditions of employment. They provide for a cash
salary, superannuation and non-cash benefits, details of which are provided on page 37 of this report. Executive KMP may elect
to salary sacrifice a portion of their cash salary into superannuation or other benefits. The details of key employment terms are
detailed below.
NAME
Current Executive KMP
TERM OF AGREEMENT
AND NOTICE PERIOD1
BASE REMUNERATION
PLUS SUPERANNUATION
TERMINATION PAYMENTS2
Robert J. Bishop
No fixed-term | 6-month notice period
956,2923
6-months’ base remuneration
Rebecca S. Rinaldi
No fixed-term | 3-month notice period
516,7243
3-months’ base remuneration
Dominic H. O’Brien
No fixed-term | 3-month notice period
526,7243
3-months’ base remuneration
Former Executive KMP
Reinhold H. Schmidt
No fixed-term | six month notice period
1,500,0003
Six months’ base remuneration
1 This notice period applies equally to all parties.
2 Base salary is payable if the Company terminates Executive KMP with notice, and without cause (e.g. for reasons other than unsatisfactory
performance) as defined in their employment contracts. In the event of summary termination, it is without notice or payment in lieu.
3 Fixed remuneration quoted is current as at 31 July 2022 and is reviewed annually by the SPC.
REMUNERATION STRUCTURE – NON-EXECUTIVE DIRECTORS
Remuneration of Non-Executive Directors is determined by the Board with reference to market rates for comparable companies and
reflective of the responsibilities and commitment required of the Non-Executive Director.
Non-Executive Directors are paid within an aggregate fee limit approved by shareholders. The current limit is $1,750,000 per
financial year and was approved by shareholders on 15 November 2012. In the 2022 financial year, the aggregate amount expended
for Non-Executive Directors’ remuneration was at 54 per cent of this limit. The Board will not seek an increase to the aggregate fee
limit at the 2022 AGM.
Non-Executive Directors are paid a fixed annual fee (inclusive of superannuation where relevant) and do not participate in any
performance-related incentive awards or receive shares or share options. Non-Executive Directors do not receive retirement benefits
other than inclusive superannuation payments. Non-Executive Director fees currently consist of base fees for the Chair and Non-
Executive Directors of the Board and fees for the Chairs and Members of the SPC and ARC.
Fees paid to Non-Executive Directors are set out in the table below.
BOARD
AUDIT AND RISK
COMMITTEE
SUSTAINABILITY
AND PEOPLE
COMMITTEE (SPC)
NOMINATION
COMMITTEE
CONTROLLED
SUBSIDIARY
242,092
143,054
240,992
142,404
55,021
11,004
54,771
10,954
17,341
11,004
17,263
10,954
n/a
n/a
n/a
n/a
47,374
33,013
47,159
32,863
20221
Chair
Member
2021
Chair
Member
1
On 1 July 2022, the superannuation guarantee percentage increased from 10.0 per cent to 10.5 per cent. 2022 fees include this increase for one
month of the 2022 financial year.
35
TAX CONTRIBUTION REPORTDIRECTORS’ REPORTSUSTAINABILITY REPORTFINANCIAL REPORTOTHER INFORMATIONOPERATIONS REVIEW NEW HOPE GROUP 2022 ANNUAL REPORT REMUNERATION REPORT (CONTINUED)
REMUNERATION STRUCTURE — EXECUTIVE KMP
Remuneration of the Executive KMP is underpinned by the Company’s Vision and Core Values.
THE COMPANY’S REMUNERATION OBJECTIVES
Attract quality
Directors and
Executives
Deliver the Group’s
short-term
objectives
Deliver sustainable
and long-term
Shareholder Value
Aligned to the Company’s
Vision, Purpose and
Core Values
OUR VISION
Energising our People, Communities and Customers
OUR PURPOSE
To deliver long-term Shareholder Value through responsible investment, Marketing and Asset Management
OUR CORE VALUES
INTEGRITY
We are ethical,
honest and can be
trusted to do the
right thing
RESPECT
We listen and treat
others as we expect
to be treated
ACCOUNTABILITY
We are empowered
and accountable for
our actions
WELLBEING
We all seek to
prevent harm,
promote safety and
enhance health
RESILIENCE
We are adaptable
and see opportunity
in change
COLLABORATION
We work together
and focus on the
best outcome
36
2022 ANNUAL REPORT NEW HOPE GROUP The following table summarises the Company’s policy regarding Executive KMP remuneration.
TOTAL FIXED REMUNERATION (TFR) SHORT-TERM INCENTIVE (STI)
LONG-TERM INCENTIVE (LTI)
Purpose
To attract, motivate and retain
Executive KMP with the appropriate
experience and capabilities to
deliver our Vision and Purpose in
accordance with our Core Values.
Create a strong link between
performance and reward over the
short to medium-term.
Focus the attention on delivering
against short-term goals that
underpin the success of
the Company.
Link to
Performance
Motivate Executive KMP to drive
a strong and positive culture and
deliver on the business strategy and
outcomes.
Gateways to reward and KMP
Personalised scorecards include
strategic annual objectives
linking individual and company
performance.
Performance
Measures
Individual accountabilities that
support the execution of the
business strategy.
Gateways to performance
assessment include:
` Nil fatalities;
The Executive KMP receive a fixed
amount which is recommended
annually by the SPC and set by the
Board.
` Nil serious environmental harm;
` Nil serious cultural heritage harm;
and
` Threshold EBITDA achieved.
Individual performance indicators
are based upon the short-term
requirements of the role and the
Company.
Company key performance
indicators (KPIs) which link
performance to achievement of the
short-term business objectives.
Delivery
Competitive market based fixed
remuneration comprising base salary,
superannuation, and other
non-cash benefits.
Awards are payable in cash
following the release of the Annual
Financial results upon the company
gateway and company scorecard
and individual performance targets
being achieved.
Create a strong link between
performance and reward over the
long-term. Encourage sustainable,
long-term value creation through
equity ownership.
Align the long-term interests of
shareholders with the Executive
KMP who have a key role in
influencing the creation of long-term
value.
Performance hurdles are set by the
Board over three-year periods to
deliver sustained shareholder value.
For the 2022 financial year grant,
performance will be measured over
a rolling three-year period with
reference to a combination of:
` Total shareholder return (TSR)
achieved by the Company relative
to comparative index.
` Comparative costs control
performance assessed by
measuring ranking in the top 40
thermal coal mines in Australia;
` Execution of business strategy
and ESG objectives assessed by
the Board; and
` Risk management and safety and
well-being outcomes assessed by
the Board.
There is also a concurrent service
condition alongside the above
performance conditions which
provides that Rights will lapse if the
participant resigns before the end of
the performance period.
LTI is delivered in Performance
Rights which can be exercised
into Ordinary Shares upon meeting
required performance hurdles and
satisfying the requisite service
conditions over the performance
period.
37
TAX CONTRIBUTION REPORTDIRECTORS’ REPORTSUSTAINABILITY REPORTFINANCIAL REPORTOTHER INFORMATIONOPERATIONS REVIEW NEW HOPE GROUP 2022 ANNUAL REPORT REMUNERATION REPORT (CONTINUED)
TOTAL FIXED REMUNERATION STRUCTURE
TFR is based on the position, scope and leadership accountability of the KMP. TFR is determined by a process of review of Company
requirements and individual experience and capability, relevant comparative remuneration both in the market and internally, and,
where appropriate, external independent advice on remuneration structure, policies and practices.
SHORT-TERM AND LONG-TERM INCENTIVE STRUCTURES
The Board considers the use of STI and LTI as reasonable means of remunerating Executive KMP on the basis they:
` Encourage Executive KMP to achieve objectives linked to shareholder value creation;
` Reward performance including actions and behaviours enabling value creation and driving company success;
` Provide flexibility to the Company to actively manage the way in which it remunerates and incentivises Executive KMP; and
` Contribute to the attraction and retention of skilled talent in a competitive market.
The following diagram sets out the remuneration mix of TFR, STI award and LTI award value at target for the Executive KMP for the
2022 financial year.
REMUNERATION MIX
CEO
Other KMP
58%
22%
20%
59%
21%
21%
Fixed TFR
STI – At risk
LTI – At risk
38
2022 ANNUAL REPORT NEW HOPE GROUP VARIABLE EXECUTIVE REMUNERATION — SHORT-TERM INCENTIVES
ASPECT
DESCRIPTION
Form of Award
Awards are delivered in Cash.
Performance Period
The Company’s financial year (12 months).
STI Opportunity
The target and maximum awards payable for KMP are outlined below:
CEO
Other KMP
OPPORTUNITY AS A % OF TFR
TARGET
35.0%
35.0%
STRETCH
52.5%
52.5%
Award Determination
and Payment
STI award is determined following a review of performance over the year against the Company and
individual KPIs as assessed by the CEO and the Board.
Awards will generally be paid in cash in the month of October following the end of the performance
period.
Gate
To enable payment of STI to KMP, key financial and non-financial gateways must be satisfied.
The gateways are:
` Nil fatalities;
` Nil serious environmental harm;
` Nil serious cultural heritage harm; and
` Threshold EBITDA achieved
Cessation of
Employment During a
Period
Generally, no STI will be awarded if cessation of employment occurs prior to end of the performance
period. The Board in its absolute discretion may determine that in other cases of cessation of
employment, such as retirement, death or total or permanent disability, awards will be pro-rated with
respect to the percent of the Performance Period that has elapsed.
Board Discretion
The Board retains discretion to increase or decrease, including to nil, the extent of STI awarded to
Executive KMP if it forms the view that it is appropriate to do so given the circumstances that prevailed
during the Performance Period.
Major Corporate
Transactions
Awards vest pro-rata relative to the percent of the Measurement Period that has elapsed in the event of a
change of control transaction going unconditional, unless determined otherwise by the Board.
Malus and Clawback
STI awards may be reduced or cancelled, and action may be taken to recover awards in the event of
erroneous or misleading data, misconduct, misstatement of accounts, serious reputational damage or
corporate failure.
Company and
Individual KPIs
The Company KPIs assess wholistic Company performance referencing Group financial, costs,
production, health, safety, risk and controls, environment and community measures.
The Individual KPIs include specific safety, operational, project and strategic measures in addition to the
level of demonstration of the Company’s Core Values and behaviours. KPI components are weighted.
39
TAX CONTRIBUTION REPORTDIRECTORS’ REPORTSUSTAINABILITY REPORTFINANCIAL REPORTOTHER INFORMATIONOPERATIONS REVIEW NEW HOPE GROUP 2022 ANNUAL REPORT REMUNERATION REPORT (CONTINUED)
SHORT-TERM INCENTIVE OUTCOMES – LINK TO PERFORMANCE
SUMMARY OF 2022 FINANCIAL YEAR STI PERFORMANCE MEASURES AND OUTCOMES
Performance is assessed by examination of outcomes against threshold, target and stretch levels across a range of measures.
The measures are wholistic to the Company’s activities and are specified at a Company and Individual level. Targets are determined
annually at levels which appropriately represent improved performance over prior periods to drive actions and initiatives providing
continuous improvement outcomes. Stretch is set at levels which would represent material improvement. An outline of the relevant
range of measure is set out below. The SPC and Board considers that these measures and their relevant threshold, target and stretch
levels create a strong link between performance and reward over the short to medium-term and focus management attention on
delivering against short-term goals that underpin the success of the Company.
Non-Financial
TARGET
WEIGHTING
10%
MEASURE
Health, Safety,
Environment &
Community
Risk, Audit and
Controls
10%
DESCRIPTION
THRESHOLD TARGET STRETCH
OUTCOME
Rewards continuous improvement on
HSEC measured through a balance
of lead and lag indicators. Indicators
include frequency and potential/severity
analysis of: all injuries, total recordable
injuries, hazard identification and
reduction, environmental incidents, and
non-vexatious community complaints.
Initiatives designed to improve HSEC
performance and effectiveness of
actions are also considered.
Rewards effective mitigation of existing
risks and detect emerging risks through
assessment and control frameworks.
Indicators include execution and
effectiveness of risk plan and critical
control activities, timely completion of
audit corrective actions, and completion
rate of training initiatives designed to
educate employees about risk areas and
improve risk mitigation practices and
outcomes.
Financial
Group
EBITDA
Group Cost/
Tonne
Overburden
(Prime)
Group
Production
20%
Rewards improvement to earnings.
20%
10%
Rewards improvement to
cost management.
Rewards improvement to
mine-planning.
10%
Rewards improvement to production.
Total Company Performance
80%
110%
40
2022 ANNUAL REPORT NEW HOPE GROUP Individual measures assess the efforts and effectiveness of actions and outcomes against targets set by the SPC and approved
by the Board which focus on improvement in strategy, culture and people, diversity and inclusion, safety, risk management,
sustainability, financial stability and value creation.
KMP
Robert J. Bishop
Rebecca S. Rinaldi
Dominic H. O’Brien
TARGET
WEIGHTING
OUTCOME
THRESHOLD
TARGET
STRETCH
20%
20%
20%
2022 FINANCIAL YEAR PERFORMANCE COMMENTARY
Group safety performance measured by all injury frequency rate (AIFR) and total recordable injury frequency rate (TRIFR) improved.
Other targeted safety improvement initiatives focussed on improving hazard and incident investigation and reporting by potential
were implemented. Revised company policy and governance structures to support transparent determination and implementation
of community engagement programs and activities were implemented. Community complaints declined. Environmental reporting
frameworks were improved. Environmental incidents declined excluding water discharge during flood events. Due to sites’ water
management practices, water quality was not impacted and the regulator determined no action to be taken. The SPC recommended
and the Board agreed that stretch health, safety, environment and community performance was achieved.
Transparency and reporting around risk plan and critical control activities improved during the year. Targeted actions were largely
achieved throughout the year with delays to action completion dates occurring due to delays in supply of materials required to
complete construction and commissioning of operational improvements. A detailed equipment fire risk review was completed during
the year with all improvement actions adopted in full and completed on time. Training initiatives designed to educate employees
about risk areas and improve risk mitigation practices and outcomes were delivered with completion and minimum pass rates
achieved. The SPC recommended and the Board agreed that targeted risk, audit and controls community performance was achieved.
The Group achieved stretch performance against targeted EBITDA and cost reduction performance. Overburden (prime) and
production performance were adversely impacted by uncontrollable, extreme weather events and labour availability disruption due to
COVID-19. During the year, Management implemented mitigation strategies which were successful in reducing the impacts of the
uncontrollable events. If the uncontrollable events impacts were excluded, performance in excess of target was achieved. The SPC
recommended and the Board agreed that financial targets were exceeded by an overall average factor of 1.41.
The SPC recommended and the Board agreed, in consultation with the CEO, to implement a detailed action plan of targeted
improvements and initiatives to be delivered with achievements and outcomes assessed on scorecard basis. Accountability for
delivery rested with the CEO with specific areas of responsibility delegated to KMP and other senior management roles. The
developed and agreed action plan was wholistic encompassing targeted improvements in strategy definition and implementation
plans, company culture and values focussed decision making, people engagement, Bengalla enterprise agreement re-negotiation
without disruption, diversity and inclusion initiatives to improve participation by under-represented groups, safety governance
and due diligence practices, enterprise risk framework review, risk management and controls effectiveness, responsible operator
practices, rehabilitation outcomes, environmental performance, sustainability reporting, marketing strategy, financial stability and
capital management strategy development and articulation, investor and proxy advisory engagement, and value creation through
successful execution of transactions and strategy. The collective actions and achievements of management and the Company are
detailed elsewhere in this report. The SPC recommended and the Board agreed that targeted performance was met and/or exceeded
across the range of detailed measures. The Board consequently determined individual performance outcomes as set out in the
individual performance measures table above. Individual STI awards were calculated accordingly.
In light of the performance outcomes detailed in the table above, the Board has determined to make the following Executive KMPs’
STI awards in relation to the 2022 financial year:
STI MAXIMUM
$
STI PAYABLE
$
STI PAYABLE
%
STI FORFEITED
$
STI FORFEITED
%
Current Executive KMP
Robert J. Bishop
Rebecca S. Rinaldi
Dominic H. O’Brien
502,053
271,280
276,530
452,518
244,514
258,464
90.1%
90.1%
93.5%
49,535
26,766
18,066
9.9%
9.9%
6.5%
41
TAX CONTRIBUTION REPORTDIRECTORS’ REPORTSUSTAINABILITY REPORTFINANCIAL REPORTOTHER INFORMATIONOPERATIONS REVIEW NEW HOPE GROUP 2022 ANNUAL REPORT REMUNERATION REPORT (CONTINUED)
SPECIAL INCENTIVE AWARDS
In light of the significant efforts and achievements across the Group and the exceptional returns generated throughout FY22, the
SPC recommended and the Board determined to make special incentive awards payments to all employees in the Group. The Board
considered it appropriate to exercise a discretion to provide all employees with a special incentive award additional to determined
STIP awards to demonstrate the link between reward and the success of the Group and to reinforce the Group’s employee value
proposition that the Group’s remuneration and reward arrangements are designed to attract and retain motivated and talented
employees. The special incentive awards paid to all employees In the Group were structured as either a fixed cash payment or a cash
payment calculated as a percentage of FY22 STIP award achieved, depending upon role in the Group. Special incentive awards were
made to the Executive KMP as set out in the table below. The awards to Executive KMP were delivered as a restricted right which can
be exercised into Ordinary Shares upon meeting a 12-month service condition from the date of award. The award will be recognised
over the service period, in line with the attached 12-month service condition.
SPECIAL INCENTIVE AWARD
$
PERCENTAGE OF TFR
$
RESTRICTED RIGHTS
AWARDED
Current Executive KMP
Robert J. Bishop
Rebecca S. Rinaldi
Dominic H. O’Brien
226,259
122,257
129,232
24%
24%
25%
54,986
29,711
31,406
*
The Share Price used to calculate the grant of Restricted Rights was based on a volume weighted average price (VWAP) of $4.1148 over the 20
trading days preceding 1 August 2022.
VARIABLE EXECUTIVE REMUNERATION — LONG-TERM INCENTIVES
ASPECT
Instrument
DESCRIPTION
LTI is delivered in Performance Rights which can be exercised into Ordinary Shares upon meeting required
performance hurdles and satisfying the requisite service conditions over the measurement period. The
Rights are “Indeterminate Rights” which may be settled in the form of a Company Share (including a
Restricted Share), or cash equivalent, upon valid exercise.
Award Opportunity
The target and maximum awards payable for KMP are outlined below:
CEO
Other KMP
Grant Frequency
LTI is granted annually.
OPPORTUNITY AS A % OF TFR
TARGET
37%
35%
STRETCH
74%
70%
Grant calculation
The number of Rights in each Tranche of LTI to be granted are calculated via the application of the
following formula:
Number of Rights = Total Fixed Remuneration (TFR) x LTI % ÷ 20-day VWAP
Where LTI % is the maximum LTI opportunity as a % of TFR.
The Share Price used to calculate the grant of Rights was based on a volume weighted average price
(VWAP) of $1.9005 over the 20 trading days preceding 1 August 2021.
Measurement Period
Three financial years from 1 August 2021 to 31 July 2024.
Service Period
The Executive KMP must remain an employee of the Company during the performance period to be
eligible for LTI award vesting.
42
2022 ANNUAL REPORT NEW HOPE GROUP ASPECT
DESCRIPTION
Performance
Conditions
For 2022 financial year LTI grants, the following performance conditions apply:
Tranche 1 Performance Rights (55% weighting at Target) are subject to an TSR vesting condition. This
vesting condition ranks the Company’s TSR growth over the performance period against the TSRs of
companies in a blend of Global Coal and ASX100-200 companies.
The vesting scale for this performance vesting metric is as follows:
PERFORMANCE LEVEL
COMPANY’S TSR OVER
MEASUREMENT PERIOD
VESTING % OF TRANCHE
Stretch
P75
Between Target and Stretch
> P50 & < P75
Target
Below Target
P50
< P50
100%
Pro-rata
50%
0%
Tranche 2 Performance Rights (15% weighting) are subject to a comparative costs control vesting
condition. This vesting condition measures the statistical ranking of Bengalla Mine’s cost control
performance compared to Australia’s top 40 export thermal coal mines.
The vesting scale for this performance vesting metric is as follows:
PERFORMANCE LEVEL
BENGALLA MINE’S COST POSITION
RELATIVE TO AUSTRALIA’S TOP 40
EXPORT THERMAL COAL MINES
OVER MEASUREMENT PERIOD
VESTING % OF TRANCHE
Stretch
≤ 4%
Between Target and Stretch
< 7% & > 4%
Target
= 7%
Between Threshold and Target
< 10% & > 7%
Threshold
= 10%
100%
Pro-rata
50%
Pro-rata
25%
Below Threshold
Tranche 3 Performance Rights (7.5% weighting) are subject to a strategic vesting condition.
> 10%
0%
The vesting scale for this performance vesting metric is as follows:
Performance Level
Company Strategic Objectives
% Vesting of Tranche
Stretch
Target
Threshold
Operational performance and returns
from transactions executed materially
exceed transaction objectives
100%
Transactions executed achieve target
returns and synergies
Implementation of strategic plan
actions
50%
25%
Tranche 4 Performance Rights (7.5% weighting) are subject to an ESG vesting condition.
The vesting scale for this performance vesting metric is as follows:
PERFORMANCE LEVEL
COMPANY ESG OBJECTIVES
% VESTING OF TRANCHE
Stretch
Target
Threshold
Material improvement in ESG
practices, disclosure and
performance (e.g., increase in
sustainability analytics scores and
other independent recognition)
Achieve key actions from ESG
improvement plan
Complete review of ESG disclosure
and practices/strategy and document
improvement plan
100%
50%
25%
43
TAX CONTRIBUTION REPORTDIRECTORS’ REPORTSUSTAINABILITY REPORTFINANCIAL REPORTOTHER INFORMATIONOPERATIONS REVIEW NEW HOPE GROUP 2022 ANNUAL REPORT REMUNERATION REPORT (CONTINUED)
ASPECT
DESCRIPTION
Performance
Conditions
Tranche 5 Performance Rights (7.5% weighting) are subject to a safety vesting condition.
The vesting scale for this performance vesting metric is as follows:
PERFORMANCE LEVEL
COMPANY SAFETY OBJECTIVES
% VESTING OF TRANCHE
Stretch
Target
Threshold
Material improvement in safety metrics
over period, and third-party audit confirms
effectiveness of safety governance and due
diligence practices.
Improvement in safety metrics year on year over
the measurement period, and safety metrics
remain below industry average.
Implement recommendations from the Safety
Governance Practices and Due Diligence review,
and no fatalities during the measurement period
caused by failure of Company Health and Safety
Management System.
100%
50%
25%
Tranche 6 Performance Rights (7.5% weighting) are subject to a risk management vesting condition.
The vesting scale for this performance vesting metric is as follows:
PERFORMANCE LEVEL
COMPANY RISK MANAGEMENT OBJECTIVES
% VESTING OF TRANCHE
Stretch
Target
Third party audit confirms effectiveness of the
Risk Framework and Practices at an industry best
practices level.
100%
Third party audit confirms compliance with Risk
Framework and Practices, and all material risk
actions completed on time as per framework
deadlines.
50%
25%
Threshold
Implement recommendations from the Risk
Framework and Practices review.
Cessation of
Employment During
the Service Period
Generally, all unvested LTI awards will be forfeited if employment ceases prior to the completion of the
Service Period. The Board in its absolute discretion may determine that in other cases of cessation of
employment, such as retirement, death, total or permanent disability, awards will result in retaining
unvested Performance Rights for testing at the end of the performance period.
Malus and Clawback
LTI awards may be reduced or cancelled and action may be taken to recover vested awards in the event
of erroneous or misleading data, misconduct, misstatement of accounts, serious reputational damage or
corporate failure.
Retesting
There is no retesting applicable to any LTI award.
44
2022 ANNUAL REPORT NEW HOPE GROUP ASPECT
DESCRIPTION
Dividend and Voting
Entitlements
Performance Rights carry no entitlement to voting prior to being exercised into Ordinary Shares. At the
time and to the extent Performance Rights are vested, the Company will make a dividend equivalent
payment in respect of dividends that would have been paid on the shares underlying vested rights during
the measurement period. Participants also receive dividend equivalent payments in respect of vested
Rights at the time a dividend is paid by the Company.
Major Corporate
Transactions
Board Discretion
Awards vest pro-rata relative to the percent of the Measurement Period that has elapsed as well as
the change in share price up to the point of a change of control transaction going unconditional, unless
determined otherwise by the Board.
The Board retains discretion to increase or decrease, including to nil, the extent of vesting in relation
to each Tranche of Performance Rights if it forms the view that it is appropriate to do so given the
circumstances that prevailed during the Measurement Period. In exercising this discretion, the Board shall
take into account, amongst other factors it considers relevant, Company performance from the perspective
of Shareholders over the relevant Measurement Period.
The performance conditions detailed on page 43–44 are wholistic to the Company’s activities. Targets are determined at levels which
appropriately represent improved performance over prior periods to drive actions and initiatives providing continuous improvement
outcomes. Stretch is set at levels which would represent material improvement. The SPC and Board considers that these measures
and their relevant threshold, target and stretch levels create a strong link between performance and reward over the long-term and
encourage sustainable, long-term value creation through equity ownership.
45
TAX CONTRIBUTION REPORTDIRECTORS’ REPORTSUSTAINABILITY REPORTFINANCIAL REPORTOTHER INFORMATIONOPERATIONS REVIEW NEW HOPE GROUP 2022 ANNUAL REPORT REMUNERATION REPORT (CONTINUED)
REMUNERATION – STATUTORY TABLES
Details of the remuneration of Directors and the Executive KMP of the Company during the 2022 financial year are set out below.
SHORT-TERM BENEFITS
LONG-TERM
BENEFITS
POST-
EMPLOYMENT
OTHER
SHARE-BASED
PAYMENTS
CASH
SALARY
AND FEES
CASH
BONUS
NON-
CASH
BENEFITS1
LONG
SERVICE
LEAVE
SUPER-
ANNUATION2
TERMINATION
BENEFITS3
EQUITY SETTLED
SHARES
TOTAL
$
2022
Non-Executive Directors
Robert D. Millner
Todd J. Barlow4
Jacqueline E. McGill AO
Thomas C. Millner
Ian M. Williams
Steven R. Boulton6
220,000
130,000
155,759
130,000
220,000
–
Total Non-Executive Directors
855,759
Other KMP
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
22,092
13,054
15,641
13,054
22,092
–
85,933
Robert J. Bishop5
807,899 452,518
29,061
26,518
25,129
Rebecca S. Rinaldi6
245,154 244,514
21,899
Dominic H O’Brien6
250,716 258,464
11,991
8,218
5,962
13,959
10,280
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
242,092
143,054
171,400
143,054
242,092
–
941,692
504,530 1,845,655
111,789
645,533
134,632
672,044
Reinhold H. Schmidt3 & 6
738,216
–
–
–
11,784
410,680
(275,244)
885,436
Total Other KMP
2,041,985 955,496
62,951
40,698
61,152
410,680
475,707 4,048,668
Total Remuneration – 2022
2,897,744 955,496
62,951
40,698
147,085
410,680
475,707 4,990,360
2021
Non-Executive Directors
Robert D. Millner
Todd J. Barlow7
Jacqueline E. McGill AO
Thomas C. Millner
Ian M. Williams
William H. Grant OAM6
220,000
130,000
153,839
130,000
220,000
46,357
Total Non-Executive Directors
900,196
Executive Directors
Shane O. Stephan8 & 9
114,187
Other KMP
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
20,992
12,404
14,680
12,404
20,992
4,404
85,876
34,280
2,036
3,616
Reinhold H. Schmidt6 & 8
1,355,848 595,019 113,904
24,402
22,163
Robert J. Bishop5 & 8
541,460 206,412
18,323
12,387
24,648
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
240,992
142,404
168,519
142,404
240,992
50,761
986,072
(32,753)
121,366
50,044 2,161,380
16,095
819,325
Andrew L Boyd8 & 9
Benjamin C. Armitage8 & 9
303,467
180,765
– 125,734
5,547
9,039
519,349
(147,790)
815,346
–
7,941
(41,059)
9,039
400,008
(69,798)
486.896
Total Other KMP
2,381,540 801,431 265,902
1,277
64,889
919,357
(151,449) 4,282,947
Total Remuneration – 2021
3,395,923 801,431 300,182
3,313
154,381
919,357
(184,202) 5,390,385
46
2022 ANNUAL REPORT NEW HOPE GROUP
1 Non-cash benefits include movements in annual leave provisions and fringe benefit tax incurred by the Company related to property under
termination arrangements.
2 Superannuation guarantee requirements for the 2022 and 2021 financial years is in line with the Australian Taxation Office’s legislated
requirements.
3 Termination payments aligned to contractual terms and conditions and finalised in individual deed of release.
4 Thomas C. Millner elected to waive his committee fees for the 2022 financial year.
5 Robert J. Bishop was Acting CEO for the period from 1 December 2021 to 13 February 2022 included acting allowance of $230,000 p.a (pro rata),
Effective 14 February 2022 Robert J. Bishop was appointed permanently to the position of CEO.
6 Individuals who commenced or ceased as KMP during the 2022 financial year. Refer to page 33 for commencement and cessation dates.
7 Todd J. Barlow’s base salary excludes Committee fees of $20,000 (2021: $20,000) for his services as member of the Audit and Risk Committee
and member of the Sustainability, and People Committee. He elected to waive his remuneration for these services.
8 A temporary part-time arrangement (nine-day fortnight) was implemented as a cost saving initiative in response to the impact of the COVID-19
pandemic, reducing base salaries from 1 July 2020 to 31 December 2020 by approximately 10 per cent.
9 Individuals who commenced or ceased as KMP during the 2021 financial year.
SHARE-BASED COMPENSATION
The terms and conditions of each LTI award series awarded to Executive KMP in the current or future reporting periods and the
associated pricing model inputs are detailed in the table below.
KMP
NAME
Robert
J. Bishop
LTI
SERIES
GRANT
DATE
VESTING
DATE
NUMBER
GRANTED
VALUE
PER SHARE
NUMBER
VESTED
VESTED
%
NUMBER
FORFEITED
FORFEITED
%
NUMBER
LAPSED
LAPSED
%
2021 Dec-20 Aug-24
133,169
$0.761
2022 Sep-22 Aug-24
173,425
2022 Sep-22 Aug-24
141,893
Rebecca
S. Rinaldi
Dominic
H. O’Brien
2022 Sep-22 Aug-24
80,714
2022 Sep-22 Aug-24
66,039
2022 Sep-22 Aug-24
97,207
2022 Sep-22 Aug-24
79,533
$5.161
$5.502
$5.161
$5.502
$5.161
$5.502
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
TOTAL AWARD
VALUE IN FUTURE
FINANCIAL YEARS3
101,208
894,872
780,412
416,485
363,214
501,588
437,432
1 Fair values at grant date are independently determined using the Black-Scholes options pricing model that considers the exercise price, the term of
the option, the impact of dilution, the share price at grant date and expected volatility of the underlying share, the expected dividend yield and risk-
free interest rate for the term of the option.
2 Share price at grant date
3 Calculated with reference to the grant date fair value. This value may change depending on the actual share price at vesting date.
FORMER KMP
LTI
SERIES
GRANT
DATE
VESTING
DATE
NUMBER
GRANTED1
VALUE
PER SHARE
NUMBER
VESTED
VESTED
%
NUMBER
FORFEITED
FORFEITED
%
NUMBER
LAPSED
LAPSED
%
TOTAL AWARD
VALUE IN FUTURE
FINANCIAL YEARS2
2021 Dec-20 Aug-24 414,056
$0.76
–
– 414,056
–
–
–
–
NAME
Reinhold
H. Schmidt2
1 Fair values at grant date are independently determined using the Black-Scholes options pricing model that considers the exercise price, the term
of the option, the impact of dilution, the share price at grant date and expected volatility of the underlying share, the expected dividend yield and
risk-free interest rate for the term of the option.
2 Ceased as KMP 14 January 2022
47
TAX CONTRIBUTION REPORTDIRECTORS’ REPORTSUSTAINABILITY REPORTFINANCIAL REPORTOTHER INFORMATIONOPERATIONS REVIEW NEW HOPE GROUP 2022 ANNUAL REPORT REMUNERATION REPORT (CONTINUED)
EQUITY HOLDINGS
The tables below show the number of Performance Rights (STI and LTI) and shares in New Hope Corporation Limited that were held
during the 2022 financial year by KMP and their related parties either directly, indirectly or beneficially.
PERFORMANCE RIGHTS HOLDINGS LTI – KMP
NAME
BALANCE AT
THE START
OF THE YEAR
GRANTED AS
REMUNERATION
VESTED FORFEITED
LAPSED
BALANCE AT
THE END OF
THE YEAR
UNVESTED
Robert J. Bishop
133,169
Rebecca S. Rinaldi
Dominic H. O’Brien
–
–
315,318
146,753
176,740
–
–
–
–
–
–
–
–
–
448,487
448,487
146,753
146,753
176,740
176,740
PERFORMANCE RIGHTS HOLDINGS LTI – FORMER KMP
NAME
BALANCE AT
THE START
OF THE YEAR
GRANTED AS
REMUNERATION
VESTED FORFEITED LAPSED
BALANCE AT
THE END OF
THE YEAR
UNVESTED
Reinhold H. Schmidt
414,056
–
–
(414,056)
–
–
–
SHAREHOLDING
NAME
BALANCE AT
THE START
OF THE YEAR
PURCHASED/
(SOLD)
RECEIVED ON
THE VESTING OF
PERFORMANCE RIGHTS
CEASED AS KMP
BALANCE AT THE
END OF THE YEAR
Robert D. Millner
4,177,774
1,045,000
Todd J. Barlow
19,900
–
Jacqueline E. McGill AO
30,000
20,000
Thomas C. Millner
4,004,368
870,000
Ian M. Williams
Robert J. Bishop
Rebecca S. Rinaldi
Dominic H. O’Brien
–
–
–
–
–
–
–
150,000
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
5,222,774
19,900
50,000
4,874,368
–
–
–
150,000
SHARES ISSUED ON THE VESTING OF PERFORMANCE RIGHTS
Since the end of the 2022 financial year, no Performance Rights have vested and converted to Ordinary Shares in the Company.
LOANS TO DIRECTORS AND EXECUTIVES
There were no loans to Directors or Executives granted during the 2022 financial year, nor were there any outstanding loans as at
31 July 2022.
VOTING AT THE COMPANY’S 2021 ANNUAL GENERAL MEETING
At the AGM held on 18 November 2021, shareholders approved the resolution to pass the 2021 Remuneration Report by
89.16 per cent.
End of Remuneration Report
48
2022 ANNUAL REPORT NEW HOPE GROUP NON-AUDIT SERVICES
Deloitte Touche Tohmatsu has acted as auditor for the Group for the entire 2022 year. 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.
During the 2022 Financial 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):
Deloitte and Related Network Firms
Audit or Review of Financial Reports:
Group
Subsidiaries and Joint Operations
Other Assurance and Agreed-Upon Procedures under Other Legislation or Contractual Arrangements
Group
Other Services
Advisory Services
Total
2022
2021
641,000
538,669
264,233
127,667
905,233
666,336
10,000
105,000
10,000
105,000
442,285
51,500
442,285
51,500
1,357,518
822,836
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 51.
ROUNDING
The Company is of a kind referred to in ASIC Corporations Instrument 2016/191, issued by the Australian Securities and Investments
Commission (ASIC), relating to the “rounding off” of amounts in the Directors’ report. Amounts in the Directors’ report have been
rounded off in accordance with that ASIC Instrument to the nearest thousand dollars, or in certain cases, to the nearest dollar.
49
TAX CONTRIBUTION REPORTDIRECTORS’ REPORTSUSTAINABILITY REPORTFINANCIAL REPORTOTHER INFORMATIONOPERATIONS REVIEW NEW HOPE GROUP 2022 ANNUAL REPORT
MEETINGS OF DIRECTORS
The following table sets out the number of meetings of the Company’s Directors held during the year ended 31 July 2022 and the
number of meetings attended by each Director:
FULL MEETINGS
OF DIRECTORS
AUDIT AND RISK
COMMITTEE
SUSTAINABILITY AND
PEOPLE COMMITTEE
NOMINATION
COMMITTEE
HELD
ATTENDED
HELD
ATTENDED
HELD
ATTENDED
HELD
ATTENDED
Robert D. Millner
Todd J. Barlow
Jacqueline E. McGill AO
Thomas C. Millner
Ian M. Williams
Steven R. Boulton1
1 Appointed on 29 July 2022
14
14
14
14
14
–
14
14
13
14
14
–
–
5
5
–
5
–
–
5
5
–
5
–
–
4
4
–
4
–
–
3
4
–
4
–
–
1
1
–
1
–
–
1
1
–
1
–
Signed at Sydney, 19 September 2022, in accordance with a resolution of Directors.
R.D. Millner
Director
50
2022 ANNUAL REPORT NEW HOPE GROUP
Deloitte Touche Tohmatsu
ABN 74 490 121 060
Level 23, Riverside Centre
123 Eagle Street
Brisbane, QLD, 4000
Australia
Deloitte Touche Tohmatsu
ABN 74 490 121 060
Phone: +61 7 3308 7000
Level 23, Riverside Centre
www.deloitte.com.au
123 Eagle Street
Brisbane, QLD, 4000
Australia
Phone: +61 7 3308 7000
www.deloitte.com.au
The Board of Directors
New Hope Corporation Limited
Level 16, 175 Eagle Street
Brisbane, QLD, 4000
The Board of Directors
New Hope Corporation Limited
Level 16, 175 Eagle Street
Brisbane, QLD, 4000
19 September 2022
Dear Board Members,
19 September 2022
Dear Board Members,
Auditor’s Independence Declaration to New Hope Corporation Limited
In accordance with section 307C of the Corporations Act 2001, I am pleased to provide the following declaration
of independence to the directors of New Hope Corporation Limited.
Auditor’s Independence Declaration to New Hope Corporation Limited
As lead audit partner for the audit of the financial report of New Hope Corporation Limited for the year ended
In accordance with section 307C of the Corporations Act 2001, I am pleased to provide the following declaration
31 July 2022, I declare that to the best of my knowledge and belief, there have been no contraventions of:
of independence to the directors of New Hope Corporation Limited.
(i)
the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and
As lead audit partner for the audit of the financial report of New Hope Corporation Limited for the year ended
31 July 2022, I declare that to the best of my knowledge and belief, there have been no contraventions of:
(ii) any applicable code of professional conduct in relation to the audit.
(i)
the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and
(ii) any applicable code of professional conduct in relation to the audit.
Yours faithfully,
Yours faithfully,
DELOITTE TOUCHE TOHMATSU
DELOITTE TOUCHE TOHMATSU
Stephen Tarling
Partner
Chartered Accountants
Stephen Tarling
Partner
Chartered Accountants
Liability limited by a scheme approved under Professional Standards Legislation.
Member of Deloitte Asia Pacific Limited and the Deloitte organisation.
Liability limited by a scheme approved under Professional Standards Legislation.
41
New Hope Group 2022 Annual Financial Report
Member of Deloitte Asia Pacific Limited and the Deloitte organisation.
41
New Hope Group 2022 Annual Financial Report
51
TAX CONTRIBUTION REPORTDIRECTORS’ REPORTSUSTAINABILITY REPORTFINANCIAL REPORTOTHER INFORMATIONOPERATIONS REVIEW NEW HOPE GROUP 2022 ANNUAL REPORT TAX CONTRIBUTION
REPORT
The Group is pleased to present its Tax
Contribution Report for the financial
year ended 31 July 2022. The Group
considers that this disclosure, as a
‘large’ business under the Voluntary
Tax Transparency Code, assists
stakeholders in understanding its
position as a responsible corporate
taxpayer and is a key part of its social
and economic responsibility.
Our guiding principle in relation to taxation is to pay the right
amount of tax at the appropriate time. We will comply with all
tax obligations and engage in a constructive manner with the
tax authorities.
The Group’s core values underpin the execution of the strategic
vision and guide our decisions and actions. These principles are
critical to the successful management of our tax affairs.
TAX POLICY AND GOVERNANCE
APPROACH TO TAX
Our approach to tax is aligned with our Code of Conduct and
our long term business strategy.
` New Hope acts to pay the right amount of tax, in the right
place, at the right time.
` We comply with our legal obligations for tax, we file our tax
returns on time with full disclosure of all relevant matters,
and pay our taxes on time.
` The Group has a low risk threshold in respect of
taxation matters.
` The Group’s approach to tax compliance, governance and
risk is focused on people. A flat management structure and
clear understanding of responsibilities by those involved in
managing the tax affairs of the Group is key to successful tax
management for the Group.
TAX GOVERNANCE
The Group’s tax affairs are overseen by the Board of
Directors who approve the overall tax strategy and appetite
for tax related risk. Executive management are responsible
for ensuring that resources are capable of accurately and
effectively discharging all tax related obligations in line
with the overall tax strategy. The executive team employs
finance personnel with relevant experience and engages
external consultants when appropriate. Tax governance is
managed within the Group’s broader governance processes
and our Corporate Governance Statement can be found at:
www.newhopegroup.com.au/content/investors/corporate-
governance.
TAX STRATEGY
The key elements of New Hope’s tax strategy are to:
` Effectively manage risk by applying our approach to tax listed
above;
` Observe all applicable laws, rules, regulations and disclosure
requirements;
` Apply diligent professional care and judgment to arrive at
well-supported conclusions;
` Develop and foster good working relationships with tax
authorities, government bodies and other relevant parties;
and
` Seek expert advice on any positions where tax law is unclear
or subject to interpretation, and ensure positions ultimately
adopted are supportable and well documented.
INTERNATIONAL RELATED PARTY DEALINGS
The Group’s international party dealings are limited to dealings
with a subsidiary in Japan which provide coal sales marketing
support. The related party transactions are at arm’s length
terms, and all related party transaction are reviewed by the tax
function to ensure compliance with the relevant tax authorities.
Our international transactions are disclosed in our tax returns
and in the OECD lodgements in each country.
52
2022 ANNUAL REPORT NEW HOPE GROUP
In line with the Group’s record earnings performance in the
year ended 31 July 2022, total tax contributions increased to
$626.5 million from $138.1 million in the previous financial year.
` Effective tax rate: 29.8 per cent (2021: 28.4 per cent)
` Corporate tax payable: $389.0 million (2021: $24.6 million
payable)
` Mining royalties paid: $178.8 million (2021: $60.6 million)
CORPORATE TAX
ROYALTIES
$389 MILLION
UP 1481%
$181.8
MILLION
UP 194%
TAX CONTRIBUTIONS SUMMARY
YEAR ENDED
Corporate Tax
Corporate Tax – adjustment from prior years
Mining Royalties¹
Oil Royalties
Employee Taxes Withheld
Fringe Benefits Tax
Payroll Tax
Other Taxes, Rates and Levies
Total Tax Contributions
2022
’000
389,050
(2,712)
178,795
2,956
38,115
1,193
6,236
12,907
626,540
2021
’000
24,669
(3,582)
60,615
1,346
36,081
1,712
5,930
11,367
138,138
1 Mining Royalties includes amounts paid to third party landholders in line with State legislation requirements.
53
TAX CONTRIBUTION REPORTDIRECTORS’ REPORTSUSTAINABILITY REPORTFINANCIAL REPORTOTHER INFORMATIONOPERATIONS REVIEW NEW HOPE GROUP 2022 ANNUAL REPORT SUSTAINABILITY
REPORT
For the year ended 31 July 2022
5454 2022 ANNUAL REPORT NEW HOPE GROUP
2022 ANNUAL REPORT NEW HOPE GROUP Since our first Sustainability Report
was published within our 2017
Annual Report, we have worked to
improve the quality of our sustainability
reporting each year, endeavouring to
provide further transparency about
the environmental, social and
governance matters which are most
relevant to our stakeholders.
In recent years we published a standalone
Sustainability Report, however, in 2022
we are again including our Sustainability
Report within our Annual Report. This
will allow the Sustainability Report to
reach our shareholders at the same time
as our core published reporting.
All content within this Sustainability
Report is subject to a detailed internal
review and approval process involving
subject matter experts and relevant
executives. The Board reviews the
disclosures to satisfy itself that the
Sustainability Report provides a
balanced, accurate and relevant view
of our sustainability performance and
approves its publication.
As with the rest of our Annual Report,
this Sustainability Report applies
to the 1 August 2021 to 31 July 2022
reporting period.
OUR APPROACH TO
SUSTAINABILITY
Each year, we review and identify the environmental, social and
governance (ESG) issues which are material to the decisions of
our stakeholders, communities and the long-term sustainability
of our business.
This process is informed by the following frameworks:
` The United Nations Sustainable Development Goals
(UN SDGs)
` Global Reporting Initiative (GRI) Standards (including the GRI’s
latest impact materiality guidance)
` Taskforce on Climate-related Financial Disclosures (TCFD)
(through separate reporting).
` Group Risk Management Framework and guidance provided
by key bodies, including the International Council on Mining
and Metals (ICMM).
While our reporting on sustainability is continually being
refined, we have strived to align our approach with disclosure
of sustainability metrics and outcomes in accordance with
industry specific GRI Standards (GRI-12), which link to UNSDGs.
For a full listing of sustainability issues and the associated links
to the reporting frameworks, refer to the Sustainability section
of our website.
The material topics which have been included within this
Sustainability Report following this review are:
ENVIRONMENT
` Rehabilitation
` Waste and recycling management
` Water stewardship
` Emissions
COMMUNITIES
` Community engagement
` Economic development of local and regional communities
OUR PEOPLE
` Health, safety, and wellbeing
` Mental health and wellbeing
` Diversity of board and workforce
55
TAX CONTRIBUTION REPORTDIRECTORS’ REPORTSUSTAINABILITY REPORTFINANCIAL REPORTOTHER INFORMATIONOPERATIONS REVIEW NEW HOPE GROUP 2022 ANNUAL REPORT
Beyond the scope of this report, more extensive data and
information about our approach to sustainability will be
progressively added to the Sustainability section of our website
to provide readily accessible information to our stakeholders.
We intend to continue to review the materiality of specific
sustainability related issues to ensure we respond to evolving
stakeholder and business priorities and expectations.
OPERATIONS WITHIN THE
SCOPE OF THIS REPORT
Unless otherwise specified, the following operations are
included within the scope of information provided in this report:
` Bengalla Mine – Coal mining and rehabilitation and
coal marketing1,2
` New Acland Mine – Coal mining and rehabilitation and coal
marketing (currently in care and maintenance)1
` West Moreton Operations (Jeebropilly, New Oakleigh and
Chuwar) – Rehabilitation
` North Surat – Exploration and potential future development
` Queensland Bulk Handling – Port facility
` Bridgeport Energy – Oil and gas exploration and production
` Acland Pastoral Company and Bengalla Agricultural
Company – Agriculture.
Data tables in the Sustainability Report will report at a Group
level, unless specific assets are explicitly called out.
During the reporting period, New Hope divested its 90 per cent
interest in the Lenton/Burton development project. Accordingly,
Lenton/Burton is not included in this report or in data relating
to prior comparative periods.
ENTITIES REFERRED TO IN THIS
REPORT
In this report:
` “New Hope” or the “Company” refers to New Hope
Corporation Limited and, as the context requires, New Hope’s
subsidiary entities.
` “Bengalla” refers to the Bengalla Mine and also refers to its
operator, the Bengalla Mining Company Pty Ltd, in which a
wholly-owned New Hope subsidiary holds an 80 per cent
interest.
` “Bridgeport” refers to Bridgeport Energy Pty Ltd and its
subsidiary entities. Bridgeport is a wholly-owned subsidiary
of New Hope.
` “New Acland” refers the New Acland Mine and also refers
to its operator, New Acland Coal Pty Ltd, which is a wholly-
owned subsidiary of New Hope.
` “QBH” refers to the Queensland Bulk Handling facility and
also refers to its operator, Queensland Bulk Handling Pty Ltd.
QBH is a wholly-owned subsidiary of New Hope.
KEY SITE: Due to the scale of Bengalla and New Acland relative to the other parts of our business, the disclosures within this report largely focuses
on the performance of these two operations, with references to other assets’ performance by exception.
New Hope subsidiaries manage the Bengalla Mine and hold an 80 per cent interest in the mine through the Bengalla Joint Venture. For the
purposes of this report, data relating to the Bengalla Mine is reported on an operational control (or 100 per cent) basis, rather than based on New
Hope’s effective 80 per cent interest, unless otherwise stated.
1
2
56
2022 ANNUAL REPORT NEW HOPE GROUP GOVERNANCE
New Hope’s Board oversees and
is responsible for sustainability
performance against our business
objectives, purpose, and values.
The Sustainability and People Committee (SPC),
which comprises three members of the New Hope
Board, oversees, monitors and reviews the Company’s
practices and governance in the area of sustainability,
environment, climate change, social performance and
human rights and security. The charter for the SPC is
available on the Company’s website.
The SPC also provides input into our annual materiality
assessment of ESG issues and receives an update
on findings of external reviews to validate the priority
material sustainability topics. The implementation of our
sustainability priorities is carried out by senior management.
The Company seeks to adopt leading practice and
contemporary governance standards, and apply these
in a manner consistent with our culture and values.
Further information about the governance of the
Company is provided in the Company’s Corporate
Governance Statement which is available in the
Corporate Governance section of our website.
The Company’s governance framework guides our
people and partners to uphold our expectation to act
fairly, ethically and in accordance with the law. The
framework includes a ‘Speak Up’ Policy (Whistleblower
Policy) to encourage the reporting of potential
misconduct, an Anti-Bribery and Corruption Policy, a
Modern Slavery Policy and a range of other policies
to ensure that our commitment to uphold the highest
ethical business practices is fulfilled.
57
TAX CONTRIBUTION REPORTDIRECTORS’ REPORTSUSTAINABILITY REPORTFINANCIAL REPORTOTHER INFORMATIONOPERATIONS REVIEW NEW HOPE GROUP 2022 ANNUAL REPORT
ENVIRONMENT
REHABILITATION
Through our mining activities, the most visible interaction we
have with the environment is land disturbance. As part of
our commitment to being a responsible operator and in line
with our environmental licences, we undertake progressive
rehabilitation of our mined land. To achieve this, we have
developed a range of practical, achievable solutions which
ensure responsible rehabilitation practices are implemented
throughout the mine life cycle.
We work to restore and improve land features including contours
and vegetation, to optimise water drainage and maximise
productive soil characteristics of the disturbed land to support
long-term environmental resilience. We take a precautionary
approach to environmental management and comply with all
relevant environmental laws and regulations. We recognise
our operations exist in a broader ecosystem, and therefore
also support the preservation and enhancement of nearby
ecosystems through funding contributions and volunteering
of time.
DEVELOPMENT OF A KOALA HABITAT
CORRIDOR AT NEW ACLAND
In the reporting period, through an Enforceable Undertaking
agreement with the Queensland Department of Environment
and Science (DES), relating to a dispute over the authorisation
of mining in West Pit, New Hope committed to invest $2 million
into the development of a koala habitat corridor at the New
Acland site. The project will increase rehabilitation outcomes
from previously mined areas, and connect and substantially
expand existing koala habitats from Lagoon Creek to native
vegetation north of Acland town. 100 hectares of land will be
planted with eucalyptus, paper bark and other refuge trees,
designed to support koala habitat and enhance the standard of
rehabilitation post-mining. Bottle Tree Hill, which is an existing
conservation area, will also be protected in perpetuity.
DISTURBED AND REHABILITATED LAND1
Having moved into a care and maintenance phase, planned
rehabilitation activities continued as planned at New Acland
during the reporting period.
ESTABLISHING HIGH-DENSITY WOODY
VEGETATION AT BENGALLA
At Bengalla, New Hope progressively rehabilitates land at a
rate consistent with the rate of mine site development. This
ensures the area of disturbed land is minimised during the
active life of the mine. In the reporting period, 27 hectares
were rehabilitated, which is slightly greater than in previous
years. Consistent with the environmental licence, rehabilitation
activities include establishment of high-density woody
vegetation areas, which were not present immediately prior
to mining operations. This provides an enhanced and nature-
positive outcome. To date, approximately 56 hectares of high-
density woody vegetation have been established, improving
visual amenity for the towns of Muswellbrook and Denman,
and supporting habitat corridors for native fauna as the stands
mature. Compared with pastoral grassland, high-density
woody vegetation supports greater ecosystem biodiversity
and resilience. A total area of 308 hectares has been
rehabilitated to pastoral and high-density woody vegetated
land at Bengalla since 2005.
As a responsible operator, we believe in the importance of
supporting the resilience of the land on which we operate, and
the broader natural environment. Recognising this, Bengalla
has supported a trial seed mulching program to rehabilitate
land surrounding Lake Liddell, with $21,575 donated to the
program through the Bengalla Community Development Fund.
This initiative supports biodiversity and resilience of the local
ecosystem.
INDICATORS
GROUP TOTAL
NEW ACLAND
BENGALLA WEST MORETON
BRIDGEPORT
Total cumulative land
disturbed (ha)
Total land rehabilitated during
the reporting year (ha)
Total cumulative land
rehabilitated (ha)
<4,128
1,524
27
–
2,024
690.2
963
27
308
1,441
<200
–
1,008
–
18
1 Only sites remaining under New Hope control are shown. Land is counted as rehabilitated based on certification processes applying for the relevant site,
meaning rehabilitation activities may be ongoing without necessarily being certified during the reporting period.
58
2022 ANNUAL REPORT NEW HOPE GROUP
WASTE COLLECTION AND RECYCLING (WASTE REMOVED FROM SITE)
INDICATOR
YEAR TO 31 JULY 2022
YEAR TO 31 JULY 2021
Total hazardous and non-hazardous waste (tonnes)
Total hazardous waste (tonnes)
Total non-hazardous waste (tonnes)
Total waste recycled (tonnes)
Total hazardous waste recycled (tonnes)
Total non-hazardous waste recycled (tonnes)
Percentage of total waste recycled
WASTE AND RECYCLING
MANAGEMENT
New Hope adopts a responsible approach to the management
of both regulated and non-regulated waste. Our sites
have environmental management plans (EMPs) that detail
requirements for disposal, tracking, and reporting of mineral
and non-mineral wastes. We continue to focus on effective
waste stream segregation to maximise recycling and reuse,
and ensure compliance with relevant legislative requirements
and regulations.
We identify and collect environmentally hazardous (mainly
effluents and waste oils) and non-hazardous waste (including
scrap steel, mixed solid waste, and timber) and recycle where
possible through reliable and regulated third-party providers.
Non-mineral waste generated at our sites that cannot be
recycled and is considered non-hazardous is disposed of at
appropriate landfill facilities by responsible and trusted third-
party providers. Hazardous non-mineral waste that cannot
be re-used or recycled is collected and removed from site for
treatment and specialised disposal.
3,301
617
2,684
1,470
568
902
45%
3,709
1,014
2,695
1,295
522
773
35%
BENGALLA’S TAILINGS MANAGEMENT
The Bengalla Mine site does not have a tailings dam. Instead,
fine reject material is treated, dewatered, and combined
with other coarse reject streams generated from the product
processing (overburden and rock waste) and conveyed to
reject bins. Haul trucks load the reject material for co-disposal
with overburden and rock waste, forming the base layer of
rehabilitated land. This method reduces void size and removes
legacy environmental and safety risks relating to effluent
seepage associated with tailings dam management. Processing
water is recovered and reused in site operations through
dewatering. Additionally, by not operating tailings dams, there
is a significant reduction in land disturbance and ongoing
rehabilitation requirements at the site.
DECREASE IN WASTE AND INCREASING
RECYCLING AT OUR OTHER MINE SITES
With New Acland moving into care and maintenance while we
await approvals to resume operations, waste generated at our
other sites has remained relatively constant or has decreased
since the last reporting period.
WASTE MANAGEMENT INCIDENTS
In the last reporting period, no incidents of waste management
non-compliance have been reported.
59
TAX CONTRIBUTION REPORTDIRECTORS’ REPORTSUSTAINABILITY REPORTFINANCIAL REPORTOTHER INFORMATIONOPERATIONS REVIEW NEW HOPE GROUP 2022 ANNUAL REPORT ENVIRONMENT (CONTINUED)
Before
After
WEST MORETON (CHUWAR)
REHABILITATION SITE
SURRENDERED
The site of Chuwar was an open cut mine in the
1980s, located in the Ipswich coal fields, less
than an hour’s drive from the centre of Brisbane.
In the reporting period, Chuwar became the first
open cut coal mine in Queensland to relinquish
its Environmental Authority (EA), and after
the reporting period the associated Mining
Leases were also surrendered. The Queensland
Government critically assessed the project and
concluded that all rehabilitation requirements
had been met in full, deeming the site safe,
stable, non-polluting, and able to support grazing.
The rehabilitation work at Chuwar is a clear and
practical demonstration of the successful and
responsible completion of the full life cycle of
a mining project.
WATER STEWARDSHIP
Water is a critical resource in our operations that is also a
valuable resource shared with our communities. Recognising
this, our sites have individual, tailored water management plans
in place which are reviewed on an ongoing basis to ensure that
we sustainably manage water resources and manage potential
impacts to the environment and other water users.
BENGALLA
The main clean water source at Bengalla is the Hunter River
accessed under water licences. Other sources of water include
sediment water runoff from disturbed and rehabilitated areas
and water from the mine including groundwater inflow.
Water is pumped to dams or collected in sediment traps and
settling dams and directed to storage dams for re-use onsite
where appropriate.
We also recycle water from both the bathhouse and the vehicle
wash bay through the wastewater treatment plant for reuse onsite.
Where reasonable and feasible clean water is redirected away
from disturbed areas. To manage above average rainfall our
discharge dam provides 700ML of capacity to manage excess
water in support of our site water management system. During
the reporting period, 840ML was discharged under the Hunter
River Salinity Trading Scheme to the Hunter River.
Bengalla also holds credits to discharge water into the Hunter
River during periods of high flow and flood flow under the
Hunter River Salinity Trading Scheme.
NEW ACLAND
At New Acland, we minimise our impact on the groundwater
system by utilising a purpose built 45-kilometre pipeline to
transfer recycled wastewater from the city of Toowoomba. The
recycled water purchased from Toowoomba city is sufficient for
all production activities at the New Acland site, and also services
our neighbouring pastoral operations for crop irrigation and stock
water. The ability to draw on recycled water provides the mine
with significant resilience in periods of drought when the mine
is in full operation, eliminates draw from natural waterways and
provides a valuable revenue stream for Toowoomba Regional
Council from its produced water.
New Acland also makes use of runoff water for dust
suppression and in the coal handling and preparation plant.
Groundwater is only used for potable water supply and
for bathrooms. No groundwater is used with production
activities at the New Acland site.
WATER WITHDRAWAL BY CATEGORY – MINING OPERATIONS1
CATEGORY
Surface water captured (ML)
Groundwater drawn (ML)2
River water sourced (Bengalla only) (ML)
Recycled water sourced (New Acland only) (ML)
BENGALLA
NEW ACLAND
FY21
1,969
139
768
NA
CY20
1,326
113
1,147
NA
FY22
1920
116
NA
292
FY21
1200
339
NA
428
1 For operating mines for the most recently reported period and prior corresponding period. Bengalla’s information is reported on calendar year (CY) basis.
2
Groundwater drawn Includes water drawn into open cut pits, and water drawn for potable use at New Acland. Bengalla groundwater drawn figures
shown are for the most recent calendar year.
60
2022 ANNUAL REPORT NEW HOPE GROUP EMISSIONS
New Hope reports on emissions, energy consumption and
energy production to the Clean Energy Regulator annually,
in accordance with the National Greenhouse and Energy
Report (NGER) scheme legislation. This includes recording
and disclosing our Scope 1 and Scope 2 emissions on an
operational control basis.
As a site which emits over 100,000 tonnes in Scope
1 emissions, Bengalla is also subject to the Safeguard
Mechanism under the National Greenhouse and Energy
Reporting Act 2007, which requires net emissions from
operations to be kept below applicable baseline limits.
The tables below set out emissions and energy related data
across our operations, reflecting data reported through the
NGER reporting scheme. Due to timing requirements for
reporting data to the Clean Energy Regulator under the NGER
reporting scheme after the release of our Annual Report,
analysis presented is for the Australian financial year ending
30 June 2021.
Against the prior financial year, the period to 30 June 2021
saw a reduction in New Hope’s overall emissions and energy
consumption. Contributions to this reduction included the end
of mining at Jeebropilly, reducing operations at New Acland,
and temporarily reduced operations at Bengalla due to a major
scheduled dragline shutdown.
TOTAL EMISSIONS AND ENERGY USE –
YEAR ON YEAR
INDICATORS
Total Scope 1 and Scope
2 Emissions (tCO2-e)
Total energy consumed
(Gigajoules (GJ))
FY21
FY20
569,233
702,779
3,678,311
3,938,219
The following table shows a breakdown of emissions,
emissions intensity, and energy consumed by our operations
for the year to 30 June 2021.
HYDROGEN AT KENMORE
The Bridgeport Kenmore field produces
approximately 3.5ML per year of water associated
with oil production. Whilst part of this water
is used for stock watering under an authorised
beneficial use agreement with the state and local
landowners, Bridgeport is in the feasibility stage
of a hydrogen generation project from this water.
A flash distillation unit (delivered and undergoing
testing) driven by a solar array at Kenmore will
make distilled water from the produced water
and feed an electrolyser sited at Eromanga.
The concept is to provide truck and aircraft
refuelling capability in the Quilpie Council area
by installing solar panels to power a 1MW
demonstration electrolyser at Eromanga to
generate hydrogen from the produced water.
As part of this project a further 4MW of power
and 0.5MW of battery storage for the community
and industrial users in this remote community
area is being considered which can potentially
reduce reliance on the national electricity grid by
Eromanga residents and reduce their power costs.
OPERATIONAL EMISSIONS AND & ENERGY CONSUMPTION – YEAR TO 30 JUNE 2021
UNIT OF
MEASUREMENT
BENGALLA
(100% BASIS)
NEW
ACLAND BRIDGEPORT
tCO2-e
503,093
40,760
19,072
QBH
OTHER
4,681
1,617
INDICATOR
Total Scope 1 and Scope 2
greenhouse gas emissions
Operational throughput
Tonnes/bbl/
tonnes processed
12,277,354
(ROM tonnes)
3,963,215
(ROM tonnes)
258,614
(bbl
produced)
4,054,889 (tonnes
throughput)
N/A
N/A
GHG emissions intensity
tCO2-e/t
0.0410 per
ROM tonne
0.0103 per
ROM tonne
0.0737
per bbl
0.0012 per tonne
throughput
Total energy consumed
Gigajoules (GJ)
2,808,053
461,832
354,760
33,301
20,365
61
TAX CONTRIBUTION REPORTDIRECTORS’ REPORTSUSTAINABILITY REPORTFINANCIAL REPORTOTHER INFORMATIONOPERATIONS REVIEW NEW HOPE GROUP 2022 ANNUAL REPORT ENVIRONMENT (CONTINUED)
EMISSIONS ANALYSIS AND ABATEMENT
OPPORTUNITIES
Given the increasing regulatory and community focus on the
issue of carbon emissions and the likelihood of lower baseline
targets, in 2022 substantial work was carried out to better
understand our emissions footprint at our largest
operation, Bengalla.
The table below shows the key sources of the mine’s Scope
1 and Scope 2 emissions. Approximately 10 per cent of the
mine’s emissions come from electricity consumption (Scope 2),
while 55 per cent is from fugitive emissions (Scope 1) and the
balance is from the consumption of fuel in vehicles used on site
(also Scope 1).
The 2022 emissions study also identified opportunities for
future emissions abatement, with a number of specific potential
projects for future emissions reductions identified.
Achievable emissions abatement opportunities with positive
value will be the first to be considered for implementation.
In the longer term, opportunities for abatement exist through
a decarbonised electricity grid, on-site solar, investment in off-
site renewable energy projects, and the potential electrification
of our fleet of haul trucks and other heavy equipment.
To varying degrees, these opportunities are contingent on
technological developments and the federal and state
policy environment.
Over time we expect that the learnings from activities carried
out at Bengalla will support future abatement work across our
other operations.
REGULATORY COMPLIANCE
We work closely with our stakeholders, including state and
federal government agencies, traditional custodians and
our communities, to ensure appropriate business systems
and processes are in place to manage compliance with
environmental regulatory approvals. We undertake stringent
internal compliance auditing on an ongoing basis to measure
compliance against environmental obligations and
relevant standards.
During the reporting period, there were two environment-
related regulatory actions involving New Hope sites:
` In April 2022, the Queensland Department of Environment
and Science (DES) issued an infringement notice to
Bridgeport (Surat Basin) Pty Ltd in relation to an unintentional
hydrocarbon release from a flowline at the Moonie field.
A penalty of $13,785 was imposed with the notice.
` In June 2022, New Acland Coal Pty Ltd (NAC) entered into
an enforceable undertaking with DES in respect of alleged
unauthorised mining in the area known as West Pit, and part
of South Pit, at New Acland. Pursuant to the enforceable
undertaking, NAC will invest $2 million into a rehabilitation
project to develop a koala habitat.
BENGALLA SCOPE 1 AND 2 EMISSIONS ANALYSIS
FY21 TOTAL EMISSIONS (SCOPE 1 AND 2) (kt CO2-e)
FY21 FUEL EMISSIONS (kt CO2-e)
Total emissions
502
Fugitive emissions
276
Non-fugitive emissions
226
Fuel
172
Electricity
54
97
31
25
Haul trucks
Excavators
Dozers
Drills
Loaders
Graders
Water Carts
Light Vehicles
Draglines
Other
6
5
3
3
3
0
1
FY21 ELECTRICITY EMISSIONS (kt CO2-e)
Processing Plant
34
Dragline
17
Overhead
3
62
2022 ANNUAL REPORT NEW HOPE GROUP
CCUS AT MOONIE
Bridgeport’s Moonie Oil Field is the oldest
continuously producing oilfield in Queensland.
After 60 years of primary production, the Moonie
field reservoir provides an ideal opportunity
for tertiary oil recovery by re-pressurising
the reservoir with injected CO2 to flush the
remaining oil and at the same time capturing
and sequestering the CO2 as a carbon capture
utilisation and storage (CCUS) outcome. The
technology of enhanced oil recovery (EOR) by
this method is not new, with many fields in North
America having used this tertiary recovery and
storage technique for decades. CCUS is one of
the priority low emissions technologies set out
in the Australian Government’s “Technology
Investment Roadmap”.
The Moonie CCUS- EOR project, which is
undergoing environmental regulatory approval
via an Environmental Impact Statement (EIS)
process, will take CO2 captured by the Carbon
Transport and Storage Company (CTSCo) from
the nearby Millmerran Power Station and utilise
it in the Moonie reservoir. The CO2 injection will
allow enhanced recovery of the remaining oil in
the field, while permanently trapping waste CO2
which would have otherwise been released to
the atmosphere from a thermal coal fired power
plant. Once the tertiary oil recovery stage of
the project is completed, then the site has the
potential to be re-purposed purely as a carbon
capture and storage (CCS) facility. Learning from
the project will also contribute to the knowledge
base of the industry to advance deployment of
the technology at scale.
63
TAX CONTRIBUTION REPORTDIRECTORS’ REPORTSUSTAINABILITY REPORTFINANCIAL REPORTOTHER INFORMATIONOPERATIONS REVIEW NEW HOPE GROUP 2022 ANNUAL REPORT COMMUNITIES
Our operations play an important
role in the communities in which we
operate. Our role as a responsible
and sustainable corporate citizen is to
support and promote broad economic
and social benefits for the communities
in which we operate. As a sustainable
operator, we have a duty to continue
developing long-term, meaningful, and
mutually beneficial relationships in our
communities, creating a positive social
impact.
COMMUNITY ENGAGEMENT
New Hope’s approach to sustainability is highly dependent
upon the strength of our relationships with our broad range of
stakeholders. Our stakeholders are any group or individual who
influences or is impacted by our business and our constructive
and transparent engagement with them is the foundation of our
approach to sustainability.
As a long-standing member of the communities in which
we operate, we proactively engage with a wide variety of
stakeholders including First Nations peoples, local landholders,
near neighbours, community groups, employees, and
government bodies. We work to ensure local community
access to decision making processes, grievance mechanisms,
and other remediation processes to increase engagement and
help address any actual or potential negative impacts from
our activities.
BENGALLA IN THE UPPER HUNTER
COMMUNITY
Bengalla employees consider themselves embedded in the
fabric of the Upper Hunter community.
The Community Consultative Committee (CCC) provides a
forum for community discussion and contains representation
from Bengalla, Muswellbrook Shire Council, Wanaruah Local
Aboriginal Land Council, and three representatives from the
local community.
Bengalla also engages with local community business leaders
via the Muswellbrook Chamber of Commerce (MCC), with the
mine’s General Manager a Director on the MCC Board.
Through annual Voluntary Planning Agreement (VPA)
meetings, Bengalla and the Muswellbrook Shire Council
collaborate to identify community priorities and opportunities
for local infrastructure development. In the last reporting
period, Bengalla provided $832,978.75 in support to the
Muswellbrook Shire Council via VPA contributions.
Bengalla also engages with local community groups through
promotion and support of community programs and events.
These initiatives provide opportunities to communicate with
local groups, and develop a sense of community and local
network.
Through long-standing relationships, Bengalla provides annual
support to select community groups and programs, including:
` The Bengalla Cup Race Day
` The Muswellbrook Chamber of Commerce and Industry
Business Awards
` The Muswellbrook Art Prize
` The Blue Heeler Film Festival
` The Upper Hunter Show
` The Upper Hunter Education Fund
` PCYC Muswellbrook
` Warbirds over Scone
Community groups seek Bengalla’s support through a
Community Development Fund application process, which also
helps Bengalla identify and prioritise areas of community need.
64
2022 ANNUAL REPORT NEW HOPE GROUP
SUPPORTING THE LOCAL COMMUNITY –
NEW ACLAND
As an enduring member of the Darling Downs region,
New Acland continues to support employability and skills
development opportunities for the next generation workforce.
The mine also continued to support local community
organisations through donations, such as $360,000 for Oakey
PCYC Youth Connect Program.
COMMUNITY SUPPORT
INDICATOR
Total number of community
support recipients
Sponsorships and
partnerships
YEAR ENDING
31 JULY 2022
YEAR ENDING
31 JULY 2021
79
78
$1,032,763
$337,000
Development contributions
(VPA)
$832,979
$713,627
PRESERVING ABORIGINAL HERITAGE
New Hope aims to work in partnership with the traditional
custodians of the land where our projects are located to ensure
sites of cultural significance are identified and protected.
We respect and acknowledge the UN Declaration on the
Rights of Indigenous Peoples and the human rights principles
it embodies, including the principle of free, prior and informed
consent. In alignment with the principles of the International
Council on Mining and Metals (ICMM), we work to obtain the
consent of traditional custodians for activities located on their
traditional lands.
We are committed to work hand in hand with our traditional
custodians to ensure Aboriginal heritage is managed
sustainably and responsibly.
NEW ACLAND AND
YOUTH CONNECT
The PCYC Youth Connect Program supports
young people between 12 and 24 to develop
necessary life skills, training, and pathways to
employment.
After applications to local, state and federal
government for funding for the Youth Connect
Program were unsuccessful, PCYC Toowoomba
approached New Hope to develop a partnership
for support of the program operating in Oakey.
Our partnership with PCYC saw New Hope
commit $360,000 over a two-year period to fund
vital PCYC community services.
Our funding support contributed to employment
of one full-time PCYC Youth Services Project
Manager, one full-time PCYC Youth Worker,
the delivery of youth-focused community
development activities, and the operational costs
of the program for a two-year period.
This program reinforces New Hope’s
commitment to supporting local economies
through employment, and the development of
skills in the communities of our operations.
Warbirds over Scone
Where There’s a Will branded truck tray
65
TAX CONTRIBUTION REPORTDIRECTORS’ REPORTSUSTAINABILITY REPORTFINANCIAL REPORTOTHER INFORMATIONOPERATIONS REVIEW NEW HOPE GROUP 2022 ANNUAL REPORT COMMUNITIES (CONTINUED)
AIR QUALITY AND NOISE
We recognise that dust, noise and other impacts of our
operations have an effect on members of the community who
live near our sites.
Both Bengalla and New Acland maintain offsite dust and noise
monitoring equipment which provides real time data to inform
their operations.
The sites operate environmental hotline for community
issues relating to their operations. In all cases, we attempt to
respectfully respond to and resolve any stakeholder complaints
in a timely manner and to the best of our abilities. Complaints
received in the last reporting period are provided below.
Noise complaints decreased from 22 to 11 compared to
the prior reporting period, falling at both New Acland and
Bengalla.
Dust complaints also decreased from the prior reporting period,
and are substantially lower than earlier years, assisted by
wetter climatic conditions.
Our sites provide regular reporting on their environmental
monitoring at: https://newhopegroup.com.au/general-reporting.
Detailed registers of complaints received and how they were
actioned are available at:
https://newhopegroup.com.au/complaints-incidents-registers
COMPLAINTS RECEIVED BY CATEGORY
(ALL SITES)
INDICATOR
Noise complaints
Air quality complaints
Blasting complaints
(overpressure, vibration, fume)
Visual complaints (light)
Other complaints
Total complaints
YEAR ENDING
31 JULY 2022
YEAR ENDING
31 JULY 2021
11
1
31
0
2
45
22
8
42
3
4
79
ECONOMIC DEVELOPMENT
OF LOCAL AND REGIONAL
ECONOMIES
Our operations are an important source of employment,
investment, and income for local communities. Through local
procurement of goods and services, our operations contribute
to and support supplier development, and deliver considerable
local employment. This enhances purchasing power in the
community and therefore stimulates local businesses, and
indirectly encourages further infrastructure investment.
New Hope operations procured $182.4 million in local services
and materials and paid $147.2 million in total salaries and
wages, and $625.9 million in taxes and royalties in the last
reporting period, as detailed in the Tax Contribution Report.
We recognise that payment of tax is an important element
of our commitment to ensure communities benefit from our
operations. We strive for full and timely compliance with the
letter and intent of the prevailing tax law and we seek strong,
collaborative working relationships with all relevant
revenue authorities. We are committed to transparency
across all aspects of our business, including in relation to
our tax obligations.
Indirect economic benefits to the regions include championing
local education, skills development, and employment. We
support local skills development and employment through
our annual apprenticeship, work experience, and scholarship
programs. In the last reporting period, our:
` Apprenticeship program provided opportunities for 5
apprentices to start their trade career. Bengalla currently
hosts 16 apprentices across the 1st to 4th year of their trade.
` Work experience program/work placement/vacation work
program provided 10 school students and undergraduates
with opportunities to further develop their experience and
gain exposure to a real-world work environment.
New Hope also provides ongoing stimulus and employment to
the local economy and agricultural industry generally through
our pastoral companies.
Bengalla apprentices 2021
Tarni Pereira, Engineering Scholarship recipient 2021,
with some of the Bengalla Team
66
2022 ANNUAL REPORT NEW HOPE GROUP BENGALLA SUPPORTS LOCAL EMPLOYABILITY
90 per cent of Bengalla’s workforce resides within the
Muswellbrook, Singleton, and Upper Hunter shires, ensuring
ongoing and valuable economic contributions to the local
economy. Bengalla’s ongoing apprenticeship, work experience
and education support programs help foster the next
generation of workers in the region.
Bengalla has over a long period of time maintained
relationships with local schools. Bengalla has awarded one
engineering and eight undergraduate scholarships per year
since 2000, fostering local education and providing career
pathways for students. Last reporting period, Bengalla
awarded an additional engineering scholarship to a student
local to the Muswellbrook area. As part of the engineering
scholarship, Bengalla offers practical experience through on-
site vacation work, providing opportunities for participants to
develop their skills, and partner with industry experts at the
Bengalla Mine.
Bengalla, through its Community Strategic Plan, has
identified the opportunity to assist local charities in the
hospitality sector. Last year Bengalla supported the Scone
Neighbourhood Resource Centre through a sponsorship to
assist with establishing the Made in Scone Café. This will be
a training environment for individuals experiencing barriers
to long term employment and to develop skills and gain work
experience. Bengalla also provided $35,000 to the Polly Farmer
Foundation’s Follow the Dream Program. This is an after-
school enrichment program for Aboriginal students in years
7-12, which supports students to develop their talents, so they
can successfully complete their secondary education and reach
their potential.
SUPPORTING NEW ACLAND’S LOCAL
WORKFORCE
With the New Acland Mine entering care and maintenance
until the remaining approvals are finalised, our focus has been
on ensuring our employees are supported during the transition
process. Over the past two years, departing employees have
undergone additional training, been awarded nationally
accredited skills certifications, received résumé and interview
coaching, and had their pre-employment medical examinations
updated.
Our rehabilitation program supports ongoing and productive
land use beyond the life of the mine. Rehabilitation and post
mining agricultural activities provide sustainable employment
opportunities to the region. The Acland Pastoral Company
(APC) was established to conduct agricultural operations on
rehabilitated land. APC operations support three full-time
employees and include grazing of 2,000 head of cattle
and 2,400 hectares of crops which are sold in the Darling
Downs region, providing stimulus to the local community
and agricultural industry. Through our rehabilitation and
agricultural activities, we have been able to support 25 people
in transitioning to a post-mining environment.
QUEENSLAND AND NEW SOUTH
WALES FLOOD APPEAL
In early 2022, tens of thousands of people in parts
of Queensland and New South Wales experienced
weeks of intense rainfall and flash flooding.
Many of the communities we work closely with,
including some of our own team members, were
directly impacted by the recent flood events. To
support communities and help with rebuilding,
New Hope donated $100,000 to the Queensland
and New South Wales Flood Appeal.
The donation was made to GIVIT, an organisation
that partnered with the New South Wales and
Queensland governments to ensure that 100
per cent of public-donated funds reached the
communities impacted by recent storms
and flooding.
We hope that our contribution can help those
communities and people who may still be
struggling long after the waters have receded.
LOCAL DEVELOPMENT AND INVESTMENT
INDICATOR
EMPLOYABILITY
Scholarships
Apprenticeships
Work experience/
trainees
YEAR ENDING
31 JULY 2022
YEAR ENDING
31 JULY 2021
10
16
10
9
16
25
Wages and salaries
(including on-costs)1
$147.2M
$164.5M
NUMBER OF LOCAL SUPPLIERS
New South Wales
Queensland
281
304
358
363
PAYMENTS TO LOCAL SUPPLIERS AND CONTRACTORS
New South Wales
Queensland
$91.9M
$90.5M
$141.6M
$156.0M
1 Across whole of Group, with Bengalla shown on an 80 per cent basis.
67
TAX CONTRIBUTION REPORTDIRECTORS’ REPORTSUSTAINABILITY REPORTFINANCIAL REPORTOTHER INFORMATIONOPERATIONS REVIEW NEW HOPE GROUP 2022 ANNUAL REPORT OUR
PEOPLE
HEALTH, SAFETY,
AND WELLBEING
The health, safety, and wellbeing of our employees is a major
priority for our business. We see our employees as our greatest
asset and strive to promote a work culture that reflects our
commitment to health, safety, and wellbeing. New Hope
recognises that work-related injuries, ill health or fatalities are
still prevalent in the coal sector. Because of this, we continue to
review operations and processes in an effort to provide a work
environment that is both safe and healthy.
Our Health and Safety Plan is based around the principles of
Plan, Do, Check, and Act and is aimed at proactively mitigating
the risk of avoidable injuries. We are constantly investigating
ways to improve our identification, management, and
monitoring of health and safety risks. To ensure consistency
across our sites, we use standardised risk management tools
outlined in our Environmental Health and Safety Management
System. During the reporting period, the system was audited
to review the quality of the tools used to manage risk, and
the results of the audits were used to improve procedural and
supporting systems and their operational application. For all
mine site personnel, New Hope provides statutory health and
safety training.
During the reporting period, new health and safety metrics
were introduced across the New Hope business in response
to recommendations made by the Brady Review into
fatalities in coal mining. Our focus in the last year has been
to work towards understanding and implementing these
recommendations. Emphasis has been placed on refining our
hazard identification and near miss recording capabilities,
and recording new metrics including All Injury Frequency
Rate, and Hazard/Near Miss Frequency. In conjunction with
these changes, New Hope’s Standard for Event Reporting
Investigation and Analysis was also reviewed. The revised
Incident Reporting Standard was published in the last quarter
of the reporting period. Finally, revised metric reporting
templates were developed and introduced to our sites to
standardise reporting processes, thereby improving our
visibility and monitoring of our health and safety performance
across all sites.
Additional changes in the last reporting period include the
review of the Group Risk Management Framework. This Group-
level change has triggered a review of the Health, Safety and
Environment Risk Management Procedure, which involved
further development of training modules, and updating the
Health, Safety & Environment Risk matrix.
68
2022 ANNUAL REPORT NEW HOPE GROUP WORKPLACE BEHAVIOURS AND
RAISING CONCERNS
In the reporting period, we developed a Sexual Assault and
Sexual Harassment (SASH) action plan and commenced
implementation, which included training delivered to senior
leaders and discussions with employees about SASH risks
and the expected standards of behaviour. SASH actions will
continue to be progressed.
In support of the SASH action plan, we developed and released
a new Appropriate Workplace Behaviours Policy and enhanced
the workplace expectations sections of our Code of Conduct.
A key focus of the SASH action plan has been to help our
team members understand the role they can play as active
bystanders, whether in relation to sexual harassment, bullying,
discrimination or other inappropriate behaviours. A new Issues
Resolution Procedure provides a road map for team members
in dealing with these behaviours, including guidance on how
to resolve workplace-related issues and what to expect when
raising a concern.
All team members remain able to raise concerns though our
Whistleblower channels and are entitled to protections from
reprisal under our Whistleblower Policy.
HELPING HANDS TEAM
BUILDING EXERCISE
New Hope has recently engaged with the Helping
Hands Program as part of the onboarding and
team building exercise program at Bengalla
mine. The Helping Hands Program involves
participants building prosthetic hands that are
then donated to amputee landmine and industrial
accident victims throughout the developing world.
This activity not only creates real and lasting
contributions to people’s lives, but reinforces the
importance of workplace health and safety in our
business. To date, 25 Bengalla employees have
participated in the program, building six hands for
donation. A further 200 employees are planned
to participate in the program over the next 12
months, equating to 50 hands for donation.
WORKPLACE HYGIENE
New Hope undertakes hygiene monitoring across our
operational sites and in line with legislated requirements for the
jurisdictions in which we operate.
Based on nature of the risks relevant to each site, monitoring
is undertaken for a variety of health hazards such as airborne
contaminates including respirable quartz, respirable and
inhalable coal dust, diesel particulate matter and welding fumes.
Along with airborne contaminates, monitoring for noise and
vibration is also undertaken.
Results of monitoring activities are reviewed to ensure that
new and existing controls are appropriately implemented
and maintained.
COVID-19
COVID-19 prevention and workforce management, for sites
and individuals continues to be a major focus. In particular,
a pandemic risk assessment was completed in the reporting
period to ensure our internal control systems and processes
are robust.
Additionally, to improve our employees’ understanding of
COVID-19, New Hope undertook Group-wide workshops to
provide education around the facts and myths associated with
the virus.
We are proud of the following achievements:
REDUCTION IN
FIRST AID CASES
21%
66%
DECREASE
REDUCTION IN
LOST TIME INJURIES
IN TOTAL RECORDABLE
INJURY FREQUENCY RATE
QBH
10 YEARS LOST
TIME INJURY FREE
BRIDGEPORT
8 YEARS LOST
TIME INJURY FREE
69
TAX CONTRIBUTION REPORTDIRECTORS’ REPORTSUSTAINABILITY REPORTFINANCIAL REPORTOTHER INFORMATIONOPERATIONS REVIEW NEW HOPE GROUP 2022 ANNUAL REPORT OUR PEOPLE (CONTINUED)
The table below outlines the Group’s performance on key health and safety measures in the reporting period.
HEALTH AND SAFETY PERFORMANCE
INDICATOR
Fatalities (employees and contractors)
Total recordable injuries (employees and contractors)
YEAR ENDING
31 JULY 2022
YEAR ENDING
31 JULY 2021
YEAR ENDING
31 JULY 2020
0
5
0
13
0
8
Number of hours worked (employees and contractors)
1,914,178
2,413,936
2,696,907
Rate of recordable work-related injuries (TRIFR)
New occupational illness cases
Safety interactions (operational mine sites only)
Number of first aid incidents
Number of medically treated incidents
Number of lost-time incidents (LTI) (including disabling and restricted)
2.61
0
5,717
52
2
3
5.39
3
5.99
3
11,575
11,505
65
10
3
55
6
2
MENTAL HEALTH
AND WELLBEING
We are focused on promoting and supporting the mental health
and wellbeing of all our employees. We see this as particularly
important given the regional environment of our operations. We
recognise that access to mental health services is substantially
more limited in regional communities than in major cities.
Our model for wellness is decentralised, with individual sites
targeting what is important to them and their people. Our
sites have Health and Safety Committees which promote
and champion wellness initiatives, going beyond targeting
interventions for occupational exposures.
To support the positive mental health and wellbeing of our
workforce, we provide and promote access to our Employee
Assistance Program (EAP) which includes provision for
counselling, as required. Our focus is raising awareness,
proactive identification, and management of mental health
issues. Key initiatives that we have supported in the last
reporting period include employee training programs for mental
health identification through our peer support and mental
health first aid programs.
In the last reporting period, over 50 employees and their family
members utilised EAP services.
Pre-employment and periodic medical assessments provided
by New Hope assist early identification and intervention of
employee health risks, further supporting the mental health and
wellbeing of our people.
DIVERSITY OF BOARD
AND WORKFORCE
During the reporting period, the Sustainability and People
Committee set a gender diversity target for recruiting new
employees of 40 per cent male:40 per cent female:20 per
cent any gender (40:40:20). This target applies to all hires
across the Group, including the Board and senior executives,
and will be assessed and reported upon on an annual basis
commencing in the 2023 financial year.
We have implemented initiatives and practices to support
gender diversity, such as educating people involved in
recruitment activity about unconscious bias, providing gender
diversity training and establishing weekly recruitment reports
which include gender diversity statistics (and other diversity
statistics more broadly) to enable monitoring of recruitment
processes, actions and outcomes. As an industry, we must
and can do more to build on our commitment to developing
a diverse workforce that is reflective of society and to
foster a workplace culture that truly embraces diversity and
inclusiveness.
During the reporting period there was a slight increase in the
percentage of female workforce participation across the Group,
from 13 per cent to 15 per cent.
70
2022 ANNUAL REPORT NEW HOPE GROUP DIVERSITY OF BOARD AND WORKFORCE
INDICATOR
Board
Executive
Senior management
Management
Frontline employees
FY22
FY21
FEMALE
1 (17%)
1 (33%)
1 (13%)
6 (13%)
MALE
5 (83%)
2 (67%)
7 (87%)
39 (87%)
94 (15%)
535 (85%)
FEMALE
1 (20%)
0 (0%)
1 (9%)
7 (15%)
83 (13%)
MALE
4 (80%)
2 (100%)
10 (91%)
40 (85%)
579 (87%)
Note: Table shows employees at the end of the financial year. Excludes site-based contractors.
71
TAX CONTRIBUTION REPORTDIRECTORS’ REPORTSUSTAINABILITY REPORTFINANCIAL REPORTOTHER INFORMATIONOPERATIONS REVIEW NEW HOPE GROUP 2022 ANNUAL REPORT FINANCIAL
REPORT
The Company 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,
Level 16, 175 Eagle Street,
Brisbane, QLD, 4000.
Financial Statements
Statement of Comprehensive Income 73
74
Statement of Financial Position
75
Statement of Changes in Equity
76
Statement of Cash Flows
Notes to the
Financial Statements
Financial Reporting Segments
Revenue
Results for the Year
1.
2.
3. Other Income and Expenses
4.
5.
Income Taxes
Reconciliation of Profit/(Loss)
After Income Tax to Net Cash
from Operating Activities
Earnings Per Share
6.
Operating Assets and Liabilities
7. Receivables
8.
9.
10A. Assets Classified as Held
Trade and Other Payables
Inventories
77
78
83
84
86
89
90
91
92
92
for Sale
93
10B. Disposal of New Lenton Coal
94
11. Property, Plant and Equipment 95
12.
98
13.
Intangible Assets
Exploration and
Evaluation Assets
Impairments of Assets
14.
15. Provisions
99
100
105
Capital
108
16. Cash and Cash Equivalents
108
17. Term Deposits
109
18. Equity Investments
110
19. Unearned Revenue
20. Borrowings
110
21 Derivative Financial Instruments 117
120
22. Dividends
121
23. Equity
Risk
24. Financial Risk Management
Group Structure
25.
Interests in Other Entities
Unrecognised Items
26. Commitments
27.
Events Occurring after
the Reporting Period
Other
28. Related Party Transactions
29. Share-Based Payments
30. Parent Entity Disclosures
31. Deed of Cross Guarantee
32. Remuneration of Auditors
33. Other Accounting Policies
Directors' Declaration
Independent
Auditor’s Report
123
130
130
131
131
133
134
136
139
139
141
142
A description of the nature of the
consolidated entity’s operations
and its principal activities is
included in the Directors’ Report
on pages 12 to 51, which is not
part of this Financial Report. The
Financial Report was authorised
for issue by the Directors on 19
September 2022. 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/
investor-information.
72
2022 ANNUAL REPORT NEW HOPE GROUP
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 JULY 2022 STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 JULY 2022
Revenue and Other Income
Revenue
Other Income
Expenses
Cost of Sales
Marketing and Transportation
Administration
Other Expenses
Financing Expenses
Impairment of Assets
Profit before Income Tax
Income Tax (Expense)/Benefit
Net Profit for the Year
Net Profit attributable to New Hope Shareholders
Other Comprehensive Income/(Loss) for the year, net of Tax
Items that may be reclassified to Profit or Loss:
Exchange difference on the Translation of Foreign Operations
Changes to the fair value of Cash Flow Hedges, net of Tax
Transfer to Profit or Loss for Cash Flow Hedges, net of Tax
Items that will not be reclassified to Profit or Loss:
NOTES
2022
$000
2021
$000
2
3(a)
2,552,395
1,048,239
6,043
5,739
2,558,438
1,053,978
3(b)
(984,607)
(658,721)
(115,327)
(198,207)
(16,324)
(9,823)
(26,730)
(4,989)
(12,339)
(2,620)
(26,675)
(44,696)
20(d)
3(b)
1,400,638
110,720
4(a)
(417,629)
(31,370)
983,009
983,009
79,350
79,350
23(f)
23(f)
23(f)
(145)
(26)
(113,694)
(69,982)
6,609
38,470
Changes to the fair value of Equity Investments, net of Tax
23(f)
261
37
Other Comprehensive Income/(Loss) for the Year, net of Tax
Total Comprehensive Income for the Year
(106,969)
(31,501)
876,040
47,849
Total Comprehensive Income for the Year attributable to New Hope Shareholders
876,040
47,849
Earnings per share for Profit attributable to the Ordinary Equity Holders
of the Company
Basic Earnings per Share – Cents/Share
Diluted Earnings per Share – Cents/Share
6
6
118.1
106.0
9.5
9.5
The above Statement of Comprehensive Income should be read in conjunction with the accompanying
Notes to the Financial Statements.
73
NEW HOPE GROUP 2022 ANNUAL REPORTTAX CONTRIBUTION REPORTDIRECTORS’ REPORTSUSTAINABILITY REPORTFINANCIAL REPORTOTHER INFORMATIONOPERATIONS REVIEW
STATEMENT OF FINANCIAL POSITION
AS AT 31 JULY 2022
Current Assets
Cash and Cash Equivalents
Receivables
Term Deposits
Derivative Financial Instruments
Inventories
Assets Classified as Held for Sale
Total Current Assets
Non-Current Assets
Receivables
Derivative Financial Instruments
Equity Investments
Deferred Tax Assets
Property, Plant and Equipment
Intangible Assets
Exploration and Evaluation Assets
Total Non-Current Assets
Total Assets
Current Liabilities
Trade and Other Payables
Derivative Financial Instruments
Borrowings
Current Tax Liabilities
Provisions
Financial Guarantee Liability
Unearned Revenue
Total Current Liabilities
Non-Current Liabilities
Borrowings
Derivative Financial Instruments
Provisions
Unearned Revenue
Total Non-Current Liabilities
Total Liabilities
Net Assets
Equity
Contributed Equity
Reserves
Retained Earnings
Total Equity
NOTES
2022
$000
2021
$000
16
7
17
21
9
10
7
21
18
4(e)
11
12
13
8
21
20
15
10(b)
19
20
21
15
19
715,714
501,972
100,000
–
59,743
–
424,663
123,323
–
9,746
73,343
10,067
1,377,429
641,142
39,557
1,365
94,973
14,795
364
–
229
214
1,756,246
1,951,833
71,627
71,043
76,552
105,533
2,049,606
2,134,725
3,427,035
2,775,867
94,478
17,335
10,690
379,500
31,833
2,463
906
78,786
–
11,019
24,528
53,433
–
–
537,205
167,766
277,831
127,263
166,361
2,844
574,299
586,879
–
274,609
–
861,488
1,111,504
1,029,254
2,315,531
1,746,613
23(c)
23(f)
23(g)
97,536
(89,229)
97,536
16,890
2,307,224
1,632,187
2,315,531
1,746,613
The above Statement of Financial Position should be read in conjunction with the accompanying Notes to the Financial Statements.
74
2022 ANNUAL REPORT NEW HOPE GROUP
STATEMENTS OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JULY 2022
Balance as at 1 August 2021
97,536
16,890
1,632,187
1,746,613
CONTRIBUTED
EQUITY
$000
NOTES
RESERVES
$000
RETAINED
EARNINGS
$000
TOTAL
$000
Profit for the Year
Other Comprehensive (Loss)/Income
Total Comprehensive Income/(Loss)
Transactions with Owners in their capacity
as Owners
Dividends Paid
Share-Based Payment Transactions
22(a)
23(d),(f)
–
–
–
–
–
–
–
983,009
(106,969)
(106,969)
–
983,009
983,009
(106,969)
876,040
–
850
850
(307,972)
(307,972)
–
850
(307,972)
(307,122)
Balance as at 31 July 2022
97,536
(89,229)
2,307,224
2,315,531
Balance as at 1 August 2020
96,692
42,553
1,586,135
1,725,380
Profit/(Loss) for the Year
Other Comprehensive (Loss)/Income
Total Comprehensive Income/(Loss)
Transactions with Owners in their capacity
as Owners
Dividends Paid
Convertible Notes Issued
Share-Based Payment Transactions
22(a)
23(d),(f)
23(d),(f)
–
–
–
–
–
844
844
–
79,350
(31,501)
(31,501)
–
79,350
79,350
(31,501)
47,849
–
6,610
(772)
5,838
(33,298)
(33,298)
–
–
6,610
72
(33,298)
(26,616)
Balance as at 31 July 2021
97,536
16,890
1,632,187
1,746,613
The above Statements of Changes in Equity should be read in conjunction with the accompanying Notes to the Financial Statements.
75
NEW HOPE GROUP 2022 ANNUAL REPORTTAX CONTRIBUTION REPORTDIRECTORS’ REPORTSUSTAINABILITY REPORTFINANCIAL REPORTOTHER INFORMATIONOPERATIONS REVIEW
STATEMENT OF CASH FLOWS
Cash Flows from Operating Activities
Receipts from Customers
Payments to Suppliers and Employees
Net Interest Paid
Net Income Taxes (Paid)/Received
Net Cash Inflow from Operating Activities
Cash Flows from Investing Activities
Payments for Property, Plant and Equipment
Proceeds from Sale of Property, Plant and Equipment
Payments for Equity Investment
Payments for Exploration and Evaluation Assets
Term Deposits
Proceeds for Sale of Business
Refunds/(Payments) for Security and Bond Guarantees
Net Cash (Outflow) from Investing Activities
Cash Flows from Financing Activities
Proceeds from Secured Debt
Repayments of Secured Debt
Net Proceeds from Convertible Notes
Repayment of Lease Liabilities
Dividends Paid
Net Cash Inflow/(Outflow) from Financing Activities
Net Increase 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
NOTES
2022
$000
2021
$000
2,240,254
1,042,813
(1,053,316)
(750,444)
(16,975)
(31,326)
5
1,138,637
(15,620)
19,317
296,065
18
13
17
10(b)
20(a)
20(a)
20(c)
22(a)
(65,361)
26,492
(94,483)
(12,468)
(100,000)
21,625
1,671
(49,850)
22,724
–
(10,813)
–
–
(4,821)
(222,524)
(42,760)
–
(310,000)
20,000
(70,000)
–
195,702
(10,161)
(307,972)
(628,133)
(13,876)
(33,298)
98,528
287,980
424,663
351,833
70,377
3,071
2,453
Cash and Cash Equivalents at the end of the Financial Year
715,714
424,663
The above Statement of Cash Flows should be read in conjunction with the accompanying Notes to the Financial Statements.
76
2022 ANNUAL REPORT NEW HOPE GROUPFOR THE YEAR ENDED 31 JULY 2022
The Financial Report covers New Hope Corporation Limited and its subsidiaries as the consolidated entity and together are referred
to as New Hope, the Company or the Group in this Financial Report. The Financial Report for the year ended 31 July 2022 was
authorised for issue in accordance with a resolution of the Directors on 19 September 2022.
BASIS OF PREPARATION
This Financial Report is a general purpose financial report which:
• Has been prepared in accordance with Australian Accounting Standards, other authoritative pronouncements of the
Australian Accounting Standards Board (AASB), Australian Accounting Interpretations and the Corporations Act 2001;
• Complies with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board
(IASB). For the purposes of preparing the consolidated Financial Statements, the Company is a for profit entity;
• Adopts policies which are consistent with those of the previous financial year and corresponding interim reporting period with
the exception of changes required on adoption of new accounting standards as identified in Note 33;
• Does not adopt any Accounting Standards and Interpretations that have been issued or amended but are not yet effective.
Refer to Note 33 for more information on this and other accounting policies;
• Has been prepared under the historical cost convention, as modified by the revaluation of equity investments, trade
receivables held at fair value, derivative instruments carried at fair value and agricultural assets carried at fair value;
•
Is for a company which is of a kind referred to in ASIC Corporations Instrument 2016/191, issued by the Australian Securities
and Investment Commission, relating to the ‘rounding off’ of amounts in the Consolidated Financial Statements. Amounts in
the Consolidated Financial Statements have been rounded off in accordance with that Instrument to the nearest thousand
dollars, or in certain cases, to the nearest dollar; and
• Presents comparative information that has been reclassified where appropriate to enhance comparability.
The Directors have presented these Consolidated Financial Statements on a going concern basis and have a reasonable expectation
that the Group will be able to pay its debts as and when they fall due for at least the next 12 months.
The Company has successfully navigated the economic impacts of COVID-19 to date and continues to monitor and respond to the
evolving situation.
BASIS OF CONSOLIDATION
(A) SUBSIDIARIES
The Consolidated Financial Statements incorporate the assets and liabilities of all subsidiaries of New Hope Corporation Limited
(Company or parent entity) as at 31 July 2022 and the results of all subsidiaries for the year then ended.
Subsidiaries are all those entities over which the Group has control. The Group controls an entity when the Group is exposed to,
or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power to
direct the activities of the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They
are deconsolidated from the date that control ceases.
The acquisition method of accounting is used to account for the acquisition of subsidiaries by the Group.
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 Statement of Comprehensive Income,
Statement of Financial Position and Statement of Changes in Equity respectively.
77
NOTES TO THE FINANCIAL STATEMENTS NEW HOPE GROUP 2022 ANNUAL REPORTTAX CONTRIBUTION REPORTDIRECTORS’ REPORTSUSTAINABILITY REPORTFINANCIAL REPORTOTHER INFORMATIONOPERATIONS REVIEWFOR THE YEAR ENDED 31 JULY 2022 BASIS OF CONSOLIDATION (CONTINUED)
(B) INTERESTS IN OTHER ENTITIES
For information on Joint Arrangements and interests in Other unincorporated entities refer to Note 25.
OTHER ACCOUNTING POLICIES
Significant and other accounting policies relevant to gaining an understanding of the Consolidated Financial Statements have been
grouped with the relevant Notes to the Financial Statements.
KEY JUDGEMENTS AND ESTIMATES
The preparation of Financial Statements requires the use of certain critical accounting estimates. It also requires management to
exercise its judgement 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 within the
following notes:
Note 4
Note 11
Note 11
Note 12
Note 13
Note 14
Note 15
Deferred Tax Assets
Impairment Assessment
Estimation of Coal and Oil Reserves and Resources
Goodwill Impairment Assessments
Exploration and Evaluation Expenditure
Impairment of Assets
Provisions – Rehabilitation
1. FINANCIAL REPORTING SEGMENTS
PAGE
57
64
64
65
66
69
71
ACCOUNTING POLICY
Operating Segments have been determined based on reports reviewed by Key Management Personnel (KMP) which are
used to make strategic decisions. KMP has been identified as the Board, the Chief Executive Officer (CEO), the Chief Financial
Officer (CFO) and the Executive General Manager and Company Secretary. The reportable segments reflect how performance
is measured, and decisions regarding allocations of resources are made by KMP.
The Group disaggregates revenue based on the geographical region to which goods and services are provided to customers.
Outlined in Note 1(c) is the disaggregation of the Group’s Revenue from Contracts with Customers. Refer to Note 2 for further
information on the Group’s Revenue accounting policy.
A. DESCRIPTION OF SEGMENTS
The Group has three reportable segments, namely Coal Mining in Queensland (including mining related production, processing,
transportation, port operations and marketing), Coal Mining in New South Wales (including mining related production, processing,
transportation and marketing) and Other (including coal exploration, oil and gas related exploration, development, production and
processing, pastoral operations and administration). Treasury and Income Tax expense have not been allocated to an Operating
Segment and are reconciling items.
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 Other segment. Segment information is presented on the same basis
as that used for internal reporting purposes.
78
NOTES TO THE FINANCIAL STATEMENTS2022 ANNUAL REPORT NEW HOPE GROUPFOR THE YEAR ENDED 31 JULY 2022 1. FINANCIAL REPORTING SEGMENTS (CONTINUED)
B. SEGMENT INFORMATION
YEAR ENDED 31 JULY 2022
Total Segment Revenue
Intersegment Revenue
Revenue from External Customers
Interest Revenue
Total Revenue from External Customers
NOTES
COAL MINING
NSW
$000
2,380,925
(111)
2,380,814
COAL MINING
QLD
$000
128,570
–
128,570
Underlying EBITDA before Non-Regular Items2
Segment Underlying EBITDA before Non-Regular Items2
Depreciation and Amortisation
Net Interest Expense3
Segment Profit/(Loss) before Tax and Non-Regular Items
3
Non-Regular Items before Tax1
Segment Profit/(Loss) before Tax after Non-Regular Items
Treasury Loss before Income Tax and Non-Regular Items
Non-Regular Treasury Items before Tax
Treasury Loss before Income Tax
Profit/(Loss) before Tax (after Non-Regular Items)
Income Tax (Expense)/Benefit
Profit/(Loss) after Tax and Non-Regular Items
4(a)
1,542,818
(115,628)
(873)
1,426,317
–
1,426,317
36,296
(17,736)
(2,918)
15,642
(5,304)
10,338
OTHER
$000
53,821
(12,317)
41,504
795
(7,772)
(10,839)
(17,816)
TOTAL
$000
2,563,316
(12,428)
2,550,888
1,507
2,552,395
1,577,357
1,579,909
(141,136)
(14,630)
1,424,143
(15,649)
(33,465)
(20,953)
1,403,190
(2,552)
–
(2,552)
1,400,638
(417,629)
983,009
Reportable Segment Assets
2,133,391
234,966
1,058,678
3,427,035
Total Segment Assets includes:
Additions of Non-Current Capital Assets
Increase in Impairment of Assets
52,936
–
27,940
–
15,939
(4,989)
96,815
(4,989)
1
2
Non-Regular Items for the financial year ended 31 July 2022 relate to Group Redundancy Costs, Liquidation Related Expenses,
Strategic Growth and M&A.
Underlying Earnings before Interest, Tax, Depreciation and Amortisation (EBITDA) and Net Profit before Tax (NPBT) and before
Non-Regular Items are non-IFRS measures. This non-IFRS information has not been audited by Deloitte.
3 Net interest expense comprises finance income and expenses minus unwinding of discount on provisions and commitment fees
on loan facility. Refer to note 20D.
2022 SEGMENT PERFORMANCE ($MILLION)
2022 SEGMENT ASSETS ($MILLION)
2500
2,381
2000
1500
1000
500
0
(500)
1,543
1,426 1,426
Segment Revenue from
External Customers
Segment EBITDA
Segment Profit/(Loss) before
Tax and Non-Regular Items
Segment Profit/(Loss) before tax
129 36
16
10 42
(18) (33)
Coal Mining NSW
Coal Mining QLD
Other
1,059
235
Coal Mining NSW
Coal Mining QLD
2,133
Other
79
NOTES TO THE FINANCIAL STATEMENTS NEW HOPE GROUP 2022 ANNUAL REPORTTAX CONTRIBUTION REPORTDIRECTORS’ REPORTSUSTAINABILITY REPORTFINANCIAL REPORTOTHER INFORMATIONOPERATIONS REVIEWFOR THE YEAR ENDED 31 JULY 2022
1. FINANCIAL REPORTING SEGMENTS (CONTINUED)
B. SEGMENT INFORMATION (CONTINUED)
YEAR ENDED 31 JULY 2021
Total Segment Revenue
Intersegment Revenue
Revenue from External Customers
Interest Revenue
Total Revenue from External Customers
NOTES
COAL MINING
NSW
$000
815,784
(134)
815,650
COAL MINING
QLD
$000
201,526
–
201,526
OTHER
$000
46,060
(15,050)
31,010
Underlying EBITDA before Non-Regular Items2
Segment Underlying EBITDA before Non-Regular Items2
Depreciation and Amortisation
3
Interest Expense
Segment Profit/(Loss) before Tax and Non-Regular Items
359,076
(118,279)
(1,155)
239,642
18,798
(22,136)
(3,065)
(6,403)
(9,151)
(8,938)
(953)
(19,042)
TOTAL
$000
1,063,370
(15,184)
1,048,186
53
1,048,239
367,197
368,723
(149,353)
(5,173)
214,197
Non-Regular Items before Tax1
Segment Profit/(Loss) before Tax after Non-Regular Items
–
239,642
(74,681)
(81,084)
(12,802)
(31,844)
(87,483)
126,714
Treasury Loss before Income Tax and Non-Regular Items
Non-Regular Treasury Items before Tax
Treasury Loss before Income Tax
Profit/(Loss) before Tax (after Non-Regular Items)
Income Tax (Expense)/Benefit
Profit/(Loss) after Tax and Non-Regular Items
4(a)
(14,884)
(1,110)
(15,994)
110,720
(31,370)
79,350
Reportable Segment Assets
1,655,866
404,228
715,773
2,775,867
Total Segment Assets includes:
Additions to Non-Current Capital Assets
Increase in Impairment of Assets
79,625
–
4,837
(40,307)
12,955
(4,389)
97,417
(44,696)
1
Non-Regular Items for the financial year ended 31 July 2021 relate to Coal Mining Asset and Coal Exploration Asset Impairments, Onerous
Contracts, New Acland Ramp Down Costs, Group Redundancy Costs, Liquidation Related Expenses, Strategic Growth and M&A and Debt
Waiver Consent Fees.
2
Underlying Earnings before Interest, Tax, Depreciation and Amortisation (EBITDA) and Net Profit before Tax (NPBT) and before
Non-Regular Items are non-IFRS measures. This non-IFRS information has not been audited by Deloitte.
2021 SEGMENT PERFORMANCE ($MILLION)
2021 SEGMENT ASSETS ($MILLION)
816
1000
800
600
400
200
0
(200)
359
240 240 202
Segment Revenue from
External Customers
Segment EBITDA
Segment Profit/(Loss) before
Tax and Non-Regular Items
Segment Profit/(Loss) before tax
19
31
(6)
(81)
(9) (19) (32)
Coal Mining NSW
Coal Mining QLD
Other
404
716
Coal Mining NSW
Coal Mining QLD
1,656
Other
Coal Min-
Coal Min-
1
Oth-
80
Segment
Segment Profit/(Loss) be-
Segment
NOTES TO THE FINANCIAL STATEMENTS2022 ANNUAL REPORT NEW HOPE GROUPFOR THE YEAR ENDED 31 JULY 2022
1. FINANCIAL REPORTING SEGMENTS (CONTINUED)
C. OTHER SEGMENT INFORMATION
(i) SEGMENT REVENUE
YEAR ENDED 31 JULY 2022
Total Segment Revenue by Geographical Region
COAL MINING
NSW
$000
COAL MINING
QLD
$000
NOTES
OTHER
$000
TOTAL
$000
Japan
Taiwan
Chile
Korea
India
Other1
Australia
1,115,027
78,512
301,923
34,539
45,687
14,680
350,229
130,707
–
4,467
30,591
–
–
–
–
–
–
–
–
1,193,539
301,923
39,006
76,278
14,680
350,229
182,729
15,003
37,019
Revenue from Customer Contracts2
1,992,792
128,574
37,019
2,158,384
Provisional Pricing
Other Revenue
Total Revenue
2
382,498
11,512
2,552,394
1 Other revenue from customer contracts relates to third party customer contracts with undisclosed geographical information.
2 Revenue from customers contracts includes income from commodity sales and services. Refer Note 2.
Revenues of $277,350,000 (2021 – $161,911,000) are derived from a single external customer, representing 13 per cent of
total Revenue from Customer Contracts. These revenues are attributed to the Taiwan geographical segment. Provisional pricing
adjustments of $353,277,000 (2021: $34,716,000) relate to this customer. There are no other individual customers who represent
more than 10 per cent of revenue from customer contracts for the year ended 31 July 2022.
2022 REVENUE BY DESTINATION $000
2021 REVENUE BY DESTINATION $000
8%
9%
16%
1%
4%
2%
14%
55%
6%
2%
2%
6%
6%
6%
Japan
Taiwan
Chile
Korea
India
China
Vietnam
Other
Australia
21%
43%
81
NOTES TO THE FINANCIAL STATEMENTS NEW HOPE GROUP 2022 ANNUAL REPORTTAX CONTRIBUTION REPORTDIRECTORS’ REPORTSUSTAINABILITY REPORTFINANCIAL REPORTOTHER INFORMATIONOPERATIONS REVIEWFOR THE YEAR ENDED 31 JULY 2022 1. FINANCIAL REPORTING SEGMENTS (CONTINUED)
C. OTHER SEGMENT INFORMATION (CONTINUED)
(I) SEGMENT REVENUE (CONTINUED)
YEAR ENDED 31 JULY 2021
NOTES
Total Segment Revenue by Geographical Region
COAL MINING
NSW
$000
COAL MINING
QLD
$000
OTHER
$000
TOTAL
$000
Japan
Taiwan
Chile
Korea
India
China
Vietnam
Other1
Australia
345,200
205,211
16,969
45,672
37,322
20,638
82,314
–
46,046
15,971
21,969
–
–
15,885
56,196
48,855
–
12,536
24,920
–
–
–
–
–
–
–
–
427,514
205,211
63,015
61,643
59,291
20,638
15,885
56,196
86,311
Revenue from Customer Contracts2
776,063
194,721
24,920
995,704
Provisional Pricing
Other Revenue
Total Revenue
2
42,341
10,194
1,048,239
1 Other revenue from customer contracts relates to third party customer contracts with undisclosed geographical information.
2 Revenue from customers contracts includes income from commodity sales and services. Refer Note 2.
Revenues of $161,911,000 (2020 – $58,538,000) are derived from a single external customer, representing 16 per cent of
total Revenue from Customer Contracts. These revenues are attributed to the Taiwan geographical segment. Provisional pricing
adjustments of $34,716,000 (2020: $8,199,000) relating to this customer. There are no other individual customers who represent
more than 10 per cent of revenue from customer contracts for the year ended 31 July 2021.
(II) SEGMENT ASSETS
The amounts provided to KMP with respect to total assets are measured in a manner consistent with that of the Consolidated
Financial Statements. These assets are allocated based on the operations of the Segment. All Non-Current Assets are located
in Australia.
82
NOTES TO THE FINANCIAL STATEMENTS2022 ANNUAL REPORT NEW HOPE GROUPFOR THE YEAR ENDED 31 JULY 2022 2. REVENUE
ACCOUNTING POLICY
The Group recognises Sales Revenue related to the transfer of promised goods or services when the performance obligations
under the contract have been satisfied. The amount of Revenue recognised reflects the consideration to which the Group is
or expects to be entitled for satisfying the performance obligation.
Revenue is recognised for the major business activities as follows:
• Coal Sales Revenue is recognised at the point in time when control of the products have been transferred to
the customer in accordance with the sales terms, in this instance when the risks and benefits of ownership has
transferred. The transfer of title, risks and rewards, and therefore the fulfilment of performance obligations normally
occurs at the time of loading the shipment for export sales, and generally at the time the coal is delivered to the
customer for domestic sales.
• Coal sales are reflected at final prices by the end of the reporting period, except for certain Coal Sales that are
provisionally priced at the date revenue is recognised, which include a future price reference that is adjusted
for discount and quality.
• Oil Sales Revenue is recognised at the point in time when control of the products have been transferred to the
customer in accordance with the sales terms, in this instance when the risks and benefits of ownership have
transferred. This is normally when the oil is delivered to the customer.
• The Group’s products are sold to customers under contracts that vary in tenure and pricing mechanisms, primarily
being monthly or quarterly indexes.
• Service Fee Income and Management Fee Income is recognised as Revenue over time as the services are performed.
Sales Revenue
Revenue from Commodity Sales
Revenue from Provisional Pricing Adjustments
Services
Other Revenue
Property Rent
Interest
Sundry Revenue1
Total Revenue
NOTES
2022
$000
2021
$000
2,143,384
983,528
382,498
15,002
42,341
12,226
2,540,884
1,038,095
20(d)
2,172
1,644
7,695
1,509
85
8,550
1(b),(c)
2,552,395
1,048,239
1 Included within Sundry Revenue for the 2021 financial year is an amount relating to COVID-19 Government relief in the form of JobKeeper
payments received by the Group of $5,861,000. No JobKeeper payments were received by the Group in FY2022.
83
NOTES TO THE FINANCIAL STATEMENTS NEW HOPE GROUP 2022 ANNUAL REPORTTAX CONTRIBUTION REPORTDIRECTORS’ REPORTSUSTAINABILITY REPORTFINANCIAL REPORTOTHER INFORMATIONOPERATIONS REVIEWFOR THE YEAR ENDED 31 JULY 2022
3. OTHER INCOME AND EXPENSES
Profit/(Loss) before Income Tax includes the following specific income/(expenses):
A. OTHER INCOME
Insurance Recovery
Land Access Compensation
Gain from Lenton Divestment
Total Other Income
B. BREAKDOWN OF EXPENSES
(I) COST OF SALES1&2
Purchase Coal
Royalties
Other Production Costs
Mining
Non-Mining
Total Cost of Sales
1 Employee-Related Expenses relating to Cost of Sales of $134,086,000
(FY2021: 152,084,000) have been excluded
2 Depreciation and Amortisation Expenses relating to Cost of Sales
of $140,257,000 (FY2021: 147,138,000) have been excluded.
(II) EMPLOYEE-RELATED EXPENSES
Salary and wages
Superannuation
Share-based payments expense
Redundancy expenses
Other employee benefits expenses
Total employee-related expenses
NOTES
10(b)
2022
$000
–
5
6,038
6,043
2021
$000
5,739
–
–
5,739
NOTES
2022
$000
2021
$000
(237,570)
(181,752)
(9,446)
(62,038)
(272,039)
(264,253)
(18,903)
(23,605)
(710,264)
(359,342)
(130,138)
(135,992)
(9,157)
(850)
(5,491)
(1,542)
(9,399)
(72)
(15,733)
(3,330)
(147,178)
(164,526)
84
NOTES TO THE FINANCIAL STATEMENTS2022 ANNUAL REPORT NEW HOPE GROUPFOR THE YEAR ENDED 31 JULY 2022 3. OTHER INCOME AND EXPENSES (CONTINUED)
B. BREAKDOWN OF EXPENSES (CONTINUED)
NOTES
2022
$000
2021
$000
(III) DEPRECIATION AND AMORTISATION
Depreciation
Buildings
Plant and equipment
Total Depreciation
Amortisation
Mining reserves and leases
Mine and port development
Oil producing assets
Software
Right-of-use assets
Mining information
Water rights
Total Amortisation
(IV) IMPAIRMENT OF ASSETS
Impairment of QLD coal mining assets
Impairment of coal exploration and evaluation assets
Impairment of building assets
Total Impairment Charge
(V) OTHER EXPENSES
Liquidation related expenses1
Onerous contract expenses2
Net (Loss)/Gain on disposal of property, plant and equipment
Lease costs expensed3
1 Liquidation related costs have been included in Other Expenses. Refer to Note 15(d).
2 Onerous contract expense is included in Marketing and Transportation expenses. Refer to Note 15(c).
3 Expenses relating to Leases of Low Value Assets.
11
11
11
11
11
12
11
12
12
14
14
14
(1,180)
(59,315)
(60,495)
(1,937)
(61,255)
(63,192)
(58,857)
(61,664)
(4,968)
(4,946)
(458)
(7,888)
(2,969)
(555)
(5,637)
(5,529)
(551)
(9,256)
(2,969)
(555)
(80,641)
(86,161)
–
(40,307)
(4,989)
–
(1,618)
(2,771)
(4,989)
(44,696)
(9,823)
(2,620)
–
(37,276)
(563)
4,981
–
(51)
85
NOTES TO THE FINANCIAL STATEMENTS NEW HOPE GROUP 2022 ANNUAL REPORTTAX CONTRIBUTION REPORTDIRECTORS’ REPORTSUSTAINABILITY REPORTFINANCIAL REPORTOTHER INFORMATIONOPERATIONS REVIEWFOR THE YEAR ENDED 31 JULY 2022
4. INCOME TAXES
ACCOUNTING POLICY
The Income Tax Expense or Revenue for the period is the tax payable on the current period’s Taxable Income, based on the
relevant Income Tax Rate for each jurisdiction, adjusted by changes in Deferred Tax Assets and Liabilities attributable to
Temporary Differences, and 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 jurisdictions where the Company’s subsidiaries and associates operate and generate taxable income.
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 Statement of Financial Position date and
are expected to apply when the related Deferred Income Tax Asset is realised or the Deferred Income Tax Liability is settled.
Tax Consolidation Legislation
New Hope Corporation Limited and its wholly owned Australian controlled entities are subject to tax consolidation legislation.
All entities within the group are party to both Tax Sharing and Funding Agreements (TSA and TFA). The TSA, in the opinion
of the Directors, limits the joint and several liability of each entity in the case of default by New Hope Corporation Limited.
The TFA provides the basis to account for compensation for tax related items transferred between the subsidiaries and the
head entity of the group. The head entity, New Hope Corporation Limited, and the controlled entities in the tax consolidated
group account for their own current and deferred tax amounts.
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 TFAs with the tax consolidated entities are recognised
as amounts receivable from or payable to other entities in the Group. Any difference between the amounts assumed and
amounts receivable or payable under the TFA are recognised as a contribution to (or distribution from) wholly-owned tax
consolidated entities.
A. INCOME TAX (EXPENSE)/BENEFIT
Income Tax – Current Tax Expense
Income Tax – Adjustments for Current Tax of Prior Periods
Income Tax – Deferred Tax (Expense)/Benefit
Effective Tax Rate
2022
$000
2021
$000
(389,050)
(24,631)
2,733
(31,312)
(417,629)
3,582
(10,321)
(31,370)
29.8%
28.3%
86
NOTES TO THE FINANCIAL STATEMENTS2022 ANNUAL REPORT NEW HOPE GROUPFOR THE YEAR ENDED 31 JULY 2022
4. INCOME TAXES (CONTINUED)
B. NUMERICAL RECONCILIATION OF INCOME TAX (EXPENSE)/BENEFIT TO PRIMA FACIE
TAX RECEIVABLE/(PAYABLE)
Profit/(Loss) before Income Tax
Income Tax calculated at 30% (2021: 30%)
Tax effect of amounts which are not deductible/(taxable) in calculating Taxable Income:
CGT Income not assessable
Non-Assessable accounting gain from property disposals
Non-Assessable Interest relating to convertible notes
Other Non-Temporary Items
Under/(Over) provided in prior year
Income Tax (Expense)/Benefit
2022
$000
1,400,638
(420,191)
–
3,334
(614)
(1,805)
2021
$000
110,720
(33,216)
1,716
–
89
(419,276)
(31,411)
1,647
41
(417,629)
(31,370)
C. TAX (EXPENSE)/BENEFIT RELATING TO ITEMS OF OTHER COMPREHENSIVE INCOME
Cash Flow Hedges
2022
$000
2021
$000
(45,894)
(13,506)
87
NOTES TO THE FINANCIAL STATEMENTS NEW HOPE GROUP 2022 ANNUAL REPORTTAX CONTRIBUTION REPORTDIRECTORS’ REPORTSUSTAINABILITY REPORTFINANCIAL REPORTOTHER INFORMATIONOPERATIONS REVIEWFOR THE YEAR ENDED 31 JULY 2022
4. INCOME TAXES (CONTINUED)
D. DEFERRED TAX BALANCES
ACCOUNTING POLICY
Deferred Tax Assets are recognised for the deductible Temporary Differences and unused Tax Losses only when 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.
NET
BALANCE AT
1 AUGUST
$000
RECOGNISED
IN PROFIT
OR LOSS
$000
RECOGNISED
IN OCI
$000
2022
Rehabilitation Provision
80,387
(30,926)
Property, Plant and Equipment
Capitalised Exploration
Cash Flow Hedges
Inventories
Employee Benefits
Other
Capital Losses
Lease Liabilities
2021
Rehabilitation Provision
Property, Plant and Equipment
Capitalised Exploration
Cash Flow Hedges
Inventories
Employee Benefits
Other
Capital Losses
Lease Liabilities
(101,125)
(12,966)
(2,923)
(8,140)
11,287
1,991
1,500
30,203
214
74,717
(81,465)
(10,327)
(16,429)
(4,475)
14,143
(4,012)
1,500
23,374
9,976
(751)
–
(2,112)
(3,435)
(3,046)
–
(1,019)
(31,312)
5,670
(19,660)
(2,639)
–
–
–
45,894
–
–
–
–
–
45,894
–
–
–
–
13,506
(3,665)
(2,856)
6,003
–
6,829
–
–
–
–
–
DEFERRED
TAX
ASSETS
$000
DEFERRED
TAX
LIABILITIES
$000
49,461
–
–
42,971
–
(91,149)
(13,717)
–
–
(10,252)
7,852
–
1,500
29,184
–
(1,055)
–
–
130,968
(116,173)
NET
$000
49,461
(91,149)
(13,717)
42,971
(10,252)
7,852
(1,055)
1,500
29,184
14,795
80,387
80,387
–
(101,125)
(12,966)
(2,923)
(8,140)
11,287
1,991
1,500
30,203
–
–
–
–
(101,125)
(12,966)
(2,923)
(8,140)
11,287
1,991
1,500
30,203
–
–
–
–
(2,974)
(10,318)
13,506
214
125,368
(125,154)
88
NOTES TO THE FINANCIAL STATEMENTS2022 ANNUAL REPORT NEW HOPE GROUPFOR THE YEAR ENDED 31 JULY 2022 4. INCOME TAXES (CONTINUED)
E. UNRECOGNISED DEFERRED TAX ASSETS
Deferred Tax Assets have not been recognised in respect of the following items:
Tax Losses (Capital)
Temporary Differences associated with Equity Investments
2022
$000
2021
$000
4,522
5,709
10,231
6,607
5,709
12,316
SIGNIFICANT JUDGEMENTS AND ESTIMATES
The deferred taxation benefits will only be obtained if assessable income is derived of a nature and of an amount sufficient
to enable the benefit from the deductions to be realised, conditions for deductibility imposed by the law are complied with
and no changes in tax legislation adversely affect the realisation of the benefit from the deductions. Deferred tax assets are
recognised for 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.
Capital Tax Losses do not expire under current tax legislation. Deferred Tax Assets have not been recognised in respect
of these items because it is uncertain when future Capital Gains will be available against which the Group can utilise the
benefits from these assets.
5. RECONCILIATION OF PROFIT/(LOSS) AFTER INCOME TAX TO NET CASH
FROM OPERATING ACTIVITIES
Profit after Income Tax
Depreciation and Amortisation
Non-Cash Employee Benefit Expense – Share-Based Payments
Gain from Disposal of Entity – Lenton
Impairment of Assets
Net Foreign Exchange Gains
Net Loss/(Profit) on sale of Non-Current Assets
Net Income Taxes (Paid)/Received1
Income Tax Expense/(Benefit)
Non-Cash Finance Costs
Provision for Onerous Contract
Changes in Operating Assets and Liabilities
(Increase) in Receivables and Prepayments
Decrease in Inventories
(Decrease) in Trade and Other Payables
(Decrease)/Increase in Provisions
Net Cash from Operating Activities
NOTES
29
10
3(b)
3(b)
4(a)
20(d)
15(c)
2022
$000
983,009
141,136
850
6,038
4,989
(3,071)
563
(31,326)
417,629
10,444
–
2021
$000
79,350
149,353
72
–
44,696
(2,453)
(4,981)
19,317
31,370
2,076
16,477
(384,236)
(54,973)
11,479
7,942
(26,809)
1,138,637
7,643
(3,768)
11,886
296,065
1
The amount of Income Taxes paid for the 2022 financial year represents current year instalments less a refund of instalments paid
for the year ended 31 July 2021.
89
NOTES TO THE FINANCIAL STATEMENTS NEW HOPE GROUP 2022 ANNUAL REPORTTAX CONTRIBUTION REPORTDIRECTORS’ REPORTSUSTAINABILITY REPORTFINANCIAL REPORTOTHER INFORMATIONOPERATIONS REVIEWFOR THE YEAR ENDED 31 JULY 2022
6. EARNINGS PER SHARE
ACCOUNTING POLICY
Basic Earnings Per Share
Basic Earnings per Share is calculated by dividing the Profit attributable to Ordinary 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.
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.
A. EARNINGS PER SHARE ATTRIBUTABLE TO ORDINARY EQUITY HOLDERS OF THE COMPANY
Basic Earnings per Share
Diluted Earnings per Share
B. RECONCILIATION OF ADJUSTED PROFITS
Profit/(Loss) attributable to the Ordinary Equity Holders of the Company
Profit/(Loss) attributable to the Ordinary Equity Holders of the Company
C. WEIGHTED AVERAGE NUMBER OF SHARES USED AS THE DENOMINATOR
Weighted average number of Ordinary Shares (Basic)
Performance Rights
Convertible bond – Equity
Weighted average number of Ordinary Shares (Diluted)
D. PERFORMANCE RIGHTS GRANTED TO EMPLOYEES
Performance 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. Performance Rights have not been included
in the determination of Basic Earnings Per Share. Details relating to Performance Rights are set out in Note 29.
90
EARNINGS PER SHARE (CENTS)
2022
$000
118.1
106.0
2021
$000
9.5
9.5
BASIC
2022
$000
983,009
2021
$000
79,350
DILUTIVE
2022
$000
988,346
2021
$000
79,771
CONSOLIDATED
2022
2021
832,357,082
832,348,195
322,614
553,434
99,918,722
7,566,862
932,598,418
840,468,491
NOTES TO THE FINANCIAL STATEMENTS2022 ANNUAL REPORT NEW HOPE GROUPFOR THE YEAR ENDED 31 JULY 2022
7. RECEIVABLES
ACCOUNTING POLICY
Trade Receivables derived from contracted sales are recognised initially at fair value and subsequently at amortised cost,
less any expected credit losses (ECL). Trade Receivables from provisionally priced sales are carried at fair value. The carrying
value less the estimated credit adjustments are assumed to approximate their fair values due to their short-term nature. Trade
Receivables are due for settlement no more than forty-five days from the date of recognition.
Other 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 any ECLs. 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.
Other (Non-Current) Receivables from Bowen Coking Coal Limited as part of the purchase consideration from the Lenton
Divestiture are carried at fair value.
The Group measures the loss allowance for a Financial Asset at an amount equal to the lifetime ECL. Where the Financial
Asset’s credit risk has not increased significantly since initial recognition, the Group will measure the loss allowance based on
twelve months ECL. A simplified approach is taken to accounting for Trade and Other Receivables as well as contract assets
and records the loss allowance at the amount equal to the lifetime ECL. In applying this simplified method, the Group uses its
historical experience, external indicators and forward-looking information to calculate the ECL.
Current
Trade Receivables
Trade Receivables – Provisionally Priced
Other Receivables1
Prepayments
Total Current
Non-Current
Other Receivables2
Total Non-Current
2022
$000
2021
$000
82,466
389,888
14,896
14,722
78,995
9,216
21,364
13,748
501,972
123,323
39,557
39,557
364
364
1
2
These amounts relate to Long Service Leave payments recoverable from the Coal Mining Industry Long Service Leave Fund, Rebates
Receivable, Goods and Services Tax (GST) refunds receivable and Security Deposits. None of these receivables are impaired or past due.
Included in the Non-Current Other Receivables are royalty and milestone payments from Bowen Coking Coal Limited of $39,471,000,
carried at fair value. Refer to note 10 for more details.
Trade Receivables – Provisionally Priced
During this financial year, the Japanese Reference Price (JRP), which is historically settled during the second half of the year was not
settled. The cash from this final settlement was received in September 2022.
Other Receivables – Receivables from Lenton
With the execution of the Lenton sale transaction, a new receivable from Bowen Coking Coal Limited was recognised on 1 July 2022
and carried at fair value. For more details, please refer to note 10(b).
91
NOTES TO THE FINANCIAL STATEMENTS NEW HOPE GROUP 2022 ANNUAL REPORTTAX CONTRIBUTION REPORTDIRECTORS’ REPORTSUSTAINABILITY REPORTFINANCIAL REPORTOTHER INFORMATIONOPERATIONS REVIEWFOR THE YEAR ENDED 31 JULY 2022
7. RECEIVABLES (CONTINUED)
A. 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 24.
B. FAIR VALUE AND CREDIT RISK
Due to the short-term nature of current Receivables, their carrying value is assumed to approximate their fair value. The fair value
of Non-Current Receivables approximates their carrying amounts. Information about the Group’s exposure to fair value and credit
risk in relation to Trade and Other Receivables is provided in Note 24. The Group assessed the ECL in relation to Trade and Other
Receivables in the current year and the prior year to be immaterial and no loss allowance has been recorded.
8. TRADE AND OTHER PAYABLES
ACCOUNTING POLICY
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. Trade Payables from
provisionally priced purchases are carried at fair value.
Trade and Other Payables1
1
Included in the Trade Payables is the Provisionally Priced Payable of $4,806,000 (FY2021: NIL).
2022
$000
94,478
2021
$000
78,786
9. INVENTORIES
ACCOUNTING POLICY
Coal Stocks are valued at the lower of cost and net realisable value. Cost comprises the weighted average costs of 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.
Self-Generating and Regenerating Assets relate to the Group’s agricultural inventories and are valued at fair value less costs
to sell.
Inventories of Consumable Supplies and Spare Parts expected to be used in production are valued at weighted average cost.
A provision for stock obsolescence in relation to Raw Materials and stores is raised for items which have become obsolete
over time.
Coal stocks
Self-Generating and Regenerating Assets
Raw Materials and Stores at cost
Less: Provision for Obsolescence
Total Inventories
92
2022
$000
26,435
6,033
32,539
(5,264)
59,743
2021
$000
42,090
5,120
29,276
(3,143)
73,343
NOTES TO THE FINANCIAL STATEMENTS2022 ANNUAL REPORT NEW HOPE GROUPFOR THE YEAR ENDED 31 JULY 2022
9. INVENTORIES (CONTINUED)
A. INVENTORY EXPENSE
Coal Stocks recognised as an expense during the year ended 31 July 2022 amounted to $857,483,000 (2021: $689,838,000).
The Group did not recognise any inventory write-down to net realisable value for the Financial Year (2021: $NIL).
10A. ASSETS CLASSIFIED AS HELD FOR SALE
ACCOUNTING POLICY
Non-Current Assets (or disposal group) are classified as Held For Sale if their carrying amount will be recovered principally
through a sale transaction rather than through continuing use. When the sale is considered highly probable and is available
for immediate sale, the asset is valued at the lower of its carrying amount and fair value less costs to sell, with any gain or loss
on remeasurement recognised in the Statement of Comprehensive Income.
Land – Mining1
Buildings – Non-Mining2
Total
2022
$000
–
–
–
2021
$000
7,067
3,000
10,067
1
$6,498,000 related to the Pastoral CGU and $569,000 related to the Qld Coal Mining Operations CGU, both included in the Coal Mining
QLD Segment.
2
Included in ‘Other’ Operating Segment.
The Group has classified from Property, Plant and Equipment to Assets Classified as Held for Sale in the 2021 financial year,
with the sale transactions completed in the 2022 financial year. Key updates for the current financial year are outlined below:
• A gain on disposal of parcels of land of $5,251,000 was recognised in the Statement of Comprehensive Income in the 2022
financial year.
• On 28 July 2021, the Group entered a contract for sale of the previous corporate office at Brookwater, Queensland.
The sale was subject to a Put and Call Option with the Group and was executed in the current financial year, with proceeds
of $3,000,000 received and a loss of $613,000 recognised in the Statement of Comprehensive Income in the 2022
financial year.
93
NOTES TO THE FINANCIAL STATEMENTS NEW HOPE GROUP 2022 ANNUAL REPORTTAX CONTRIBUTION REPORTDIRECTORS’ REPORTSUSTAINABILITY REPORTFINANCIAL REPORTOTHER INFORMATIONOPERATIONS REVIEWFOR THE YEAR ENDED 31 JULY 2022 10B. DISPOSAL OF NEW LENTON COAL
On 2 August 2021 the Group entered into a Binding Term Sheet to divest 100 per cent of the shares in New Lenton Coal Pty
Ltd (which held a 90 per cent interest in the Lenton Joint Venture) to Bowen Coking Coal Limited (ASX: BCB). On 24 December
2021 the Group signed a Sale and Purchase Agreement with Bowen Coking Coal in line with the Binding Term Sheet. A total of
$1.0 million of upfront cash payments were received. There were several conditions precedent included in the Sale and Purchase
Agreement. These were subsequently satisfied and the sale completed on 1 July 2022.
The sale consideration included cash, a series of milestone payments and a royalty stream. The determination of the fair value
of the receivable in relation to the future royalty stream and milestone payments involves judgement and is based on expectations
in relation to the timing of relevant approvals, production and forecast price assumptions.
A summary of the sale transaction out is presented below:
Deposit and Contract Settlement Payment
Receivables
Total Purchase Consideration
Total Assets
Total Liabilities
Total Net Assets Disposed
Financial Guarantee Liability Provided
Profit on Sale
2022
$000
21,625
39,471
61,096
122,410
(69,815)
52,595
(2,463)
6,038
As part of the sale, the Group provided a guarantee to the State of Queensland for an amount of $61.5m in relation to New Lenton
Coal Pty Ltd’s rehabilitation obligation. The guarantee is provided through a bank letter of credit, issued in favour of the State of
Queensland. The terms associated with the letter of credit allows for the bank to claim from the Group the value of the guarantee
called upon by the State in the event of default by New Lenton on its rehabilitation obligation.
Under a separate agreement entered in to with Bowen Coking Coal, the Group has agreed that the guarantee will be terminated after
24 months.
The Group recognised the guarantee as a financial liability as at 31 July 2022 and measured the liability at fair value having regard
to a probability weighted assessment of the risk of default. The Group has considered its position and has determined that the
probability of default is highly unlikely as at 31 July 2022. A liability of $2,500,000 has been recognised as a result.
94
NOTES TO THE FINANCIAL STATEMENTS2022 ANNUAL REPORT NEW HOPE GROUPFOR THE YEAR ENDED 31 JULY 2022 11. PROPERTY, PLANT AND EQUIPMENT
ACCOUNTING POLICY
Property, Plant And Equipment
Property, Plant and Equipment 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, 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 subsequent costs are expensed to the Statement of Comprehensive Income during the financial period in which
they are incurred.
Right Of Use Assets
At the commencement date of a lease (other than leases of 12 months or less and leases of low value assets), the Group
recognises a Right-of-Use Asset representing its Right-of-Use to the underlying asset. Right-of-Use Assets are initially
recognised at cost, comprising the amount of the initial measurement of the lease liability, any lease payments made at or
before the commencement date of the lease, less any lease incentives received, any initial direct costs incurred by the Group
and an estimate of the costs to dismantle and remove the underlying asset.
Subsequent to initial recognition, Right-of-Use Assets are measured at cost (adjusted for any remeasurement of the associated
lease liability), less Accumulated Depreciation and any Accumulated Impairment Loss. Right-of-Use Assets are depreciated over
the shorter of the lease term and the estimated useful life of the underlying asset, including any lease extensions.
Depreciation
Depreciation is calculated so as to write off the cost of each item of Property, Plant and Equipment over 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. An annual review of the appropriateness of the
method of depreciation is also undertaken, noting that the majority of assets were depreciated using the straight-line method
in the 2022 financial year. The expected useful life of Plant and Equipment is four to 20 years, Buildings is 25 to 40 years
and Motor Vehicles is four to eight years. Land is not depreciated.
Disposals
Gains and losses on disposals are determined by comparing proceeds with carrying amount. These are included in the
Statement of Comprehensive Income.
Impairment
Assets are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not
be recoverable. Refer to Note 14 for further detail on impairment of assets.
Mine Properties, Development Costs, Reserves And Leases and Oil Producing Assets
Development expenditure incurred by the Group is accumulated separately for each area of interest in which economically
recoverable resources have been identified to the satisfaction of the Directors. Direct development expenditure, pre-operating
start-up costs and an appropriate portion of related overhead expenditures are capitalised as development costs up until
the relevant area of interest is ready for use. The cost of acquiring reserves and resources are capitalised in the Statement
of Financial Position as incurred.
Mining Reserves, Leases and Mine and Port Development Assets are amortised over the estimated productive life of
each applicable mine or port on either a unit of production basis or years of operation basis, as appropriate. Amortisation
commences when an area of interest is ready for use.
Oil Producing Assets are amortised on a unit of production basis. The method uses the actual costs of the asset to date plus
all its projected future development costs. Amortisation commences when an area of interest is ready for use.
Deferred Stripping Costs
The Group does not recognise any deferred stripping costs. Based on the nature of the Group’s mining operations and the
stripping ratio for the components of its operations, the recognition criteria of a deferred stripping asset are not satisfied.
Further, it is anticipated that the operations will maintain a consistent stripping ratio at the component level and as such
no overburden in advance should be recognised.
95
NOTES TO THE FINANCIAL STATEMENTS NEW HOPE GROUP 2022 ANNUAL REPORTTAX CONTRIBUTION REPORTDIRECTORS’ REPORTSUSTAINABILITY REPORTFINANCIAL REPORTOTHER INFORMATIONOPERATIONS REVIEWFOR THE YEAR ENDED 31 JULY 2022 11. PROPERTY, PLANT AND EQUIPMENT (CONTINUED)
,
3
3
8
1
5
9
1
,
5
6
1
7
9
,
4
9
6
8
,
5
9
2
5
4
,
0
7
5
8
0
1
,
2
6
5
2
8
9
,
8
3
1
0
2
5
,
3
9
1
3
,
6
1
2
6
8
1
,
1
2
0
2
t
s
u
g
u
A
1
t
a
e
c
n
a
l
a
B
0
0
0
$
L
A
T
O
T
-
T
H
G
R
I
E
S
U
-
F
O
S
T
E
S
S
A
0
0
0
$
0
0
0
$
I
N
O
T
C
U
R
T
S
0
0
0
$
S
T
E
S
S
A
T
N
E
M
P
O
L
E
V
E
D
S
E
S
A
E
L
D
N
A
T
N
E
M
P
U
Q
E
I
I
G
N
N
M
I
I
G
N
N
M
I
0
0
0
$
0
0
0
$
0
0
0
$
0
0
0
$
0
0
0
$
S
E
T
O
N
2
2
0
2
y
l
u
J
1
3
d
e
d
n
e
r
a
e
Y
-
N
O
C
R
E
D
N
U
I
G
N
C
U
D
O
R
P
T
R
O
P
T
N
A
L
P
I
L
O
D
N
A
E
N
M
I
S
E
V
R
E
S
E
R
D
N
A
T
N
A
L
P
-
N
O
N
I
S
G
N
D
L
U
B
I
I
G
N
N
M
I
I
S
G
N
D
L
U
B
I
D
N
A
D
N
A
L
D
N
A
D
N
A
L
96
)
8
8
7
8
5
,
(
–
–
–
)
6
5
6
0
3
,
(
–
–
–
–
–
7
1
8
6
7
,
)
7
3
4
2
5
,
(
–
–
1
3
6
6
,
1
3
6
6
,
)
4
5
1
7
3
1
,
(
)
8
8
8
7
,
(
–
–
)
0
0
0
2
,
(
)
3
0
5
2
1
,
(
–
–
–
–
0
3
0
6
1
,
1
6
5
3
,
8
0
1
1
,
–
–
–
–
–
–
–
–
–
–
–
–
)
5
4
9
6
,
(
)
0
6
1
9
2
,
(
–
–
–
–
–
–
–
–
9
2
6
3
5
,
)
2
3
3
6
1
,
(
–
)
8
4
6
1
5
,
(
3
0
5
2
1
,
–
–
–
–
–
–
–
–
–
–
)
8
0
5
2
2
,
(
)
6
4
0
1
,
(
)
2
0
1
7
,
(
–
–
9
8
4
2
,
n
o
i
t
a
t
i
l
i
b
a
h
e
R
n
i
s
t
n
e
m
e
v
o
M
1
s
t
e
s
s
A
f
o
t
n
e
m
e
r
u
s
a
e
m
e
R
s
n
o
i
t
i
d
d
A
)
0
4
1
5
,
(
0
1
n
o
t
n
e
L
–
l
a
s
o
p
s
D
i
–
–
3
1
4
1
d
n
a
n
o
i
t
a
r
o
l
p
x
E
o
t
s
r
e
f
s
n
a
r
T
y
t
r
e
p
o
r
P
n
h
t
i
i
w
s
r
e
f
s
n
a
r
T
i
t
n
e
m
p
u
q
E
d
n
a
t
n
a
l
P
s
t
e
s
s
A
n
o
i
t
a
u
l
a
v
E
s
t
e
s
s
A
f
o
l
a
s
o
p
s
D
i
e
g
r
a
h
C
t
n
e
m
r
i
a
p
m
I
n
o
i
t
a
s
i
t
r
o
m
A
n
o
i
t
a
c
e
r
p
e
D
/
i
,
6
4
2
6
5
7
1
,
8
0
9
5
9
,
1
2
2
0
1
,
5
6
9
6
3
,
0
5
5
5
7
,
5
0
7
3
2
9
,
6
6
4
6
3
4
,
1
1
0
2
,
0
2
4
5
7
1
,
2
2
0
2
y
l
u
J
1
3
t
a
e
c
n
a
l
a
B
,
7
2
8
4
8
0
2
,
8
4
1
1
8
,
6
0
1
5
2
,
7
2
8
5
4
,
6
4
6
3
1
1
,
,
6
2
2
4
4
0
1
,
2
3
3
8
5
5
,
6
6
0
7
,
6
7
4
9
0
2
,
0
2
0
2
t
s
u
g
u
A
1
t
a
e
c
n
a
l
a
B
1
2
0
2
y
l
u
J
1
3
d
e
d
n
e
r
a
e
Y
4
0
6
6
8
,
4
8
0
7
3
,
1
6
1
2
,
7
3
7
2
,
–
)
7
0
8
4
,
(
)
7
0
8
4
,
(
)
7
6
0
0
1
,
(
)
2
9
9
(
–
)
–
–
–
8
6
8
4
,
(
)
)
3
4
7
7
1
,
(
8
4
4
3
4
,
(
)
8
7
2
5
4
1
,
(
)
6
5
2
9
,
(
)
6
3
1
2
,
(
–
–
–
)
3
7
5
8
1
,
(
–
–
–
–
5
5
2
4
9
4
,
4
4
5
5
,
)
6
0
6
2
,
(
–
–
–
–
–
–
–
–
–
–
)
2
9
9
(
)
5
8
3
1
,
(
)
9
2
5
5
,
(
)
7
3
6
5
,
(
–
–
–
–
–
–
–
–
)
4
6
6
1
6
,
(
–
–
5
3
8
6
3
,
8
8
2
5
,
–
1
4
4
3
2
,
)
2
1
3
2
1
,
(
)
1
9
1
0
3
,
)
5
5
2
1
6
,
(
(
–
–
–
–
–
8
3
n
o
i
t
a
t
i
l
i
b
a
h
e
R
n
i
s
t
n
e
m
e
v
o
M
i
d
e
fi
s
s
a
l
C
t
e
s
s
A
o
t
s
r
e
f
s
n
a
r
T
1
s
t
e
s
s
A
f
o
t
n
e
m
e
r
u
s
a
e
m
e
R
s
n
o
i
t
i
d
d
A
)
0
0
0
3
,
(
)
7
6
0
7
,
(
0
1
e
l
a
S
r
o
f
d
l
e
H
s
a
–
–
–
)
5
3
6
(
–
–
)
1
3
4
5
,
(
)
1
0
1
9
,
(
3
1
4
1
d
n
a
n
o
i
t
a
r
o
l
p
x
E
o
t
s
r
e
f
s
n
a
r
T
s
t
e
s
s
A
n
o
i
t
a
u
l
a
v
E
i
t
n
e
m
p
u
q
E
d
n
a
t
n
a
l
P
s
t
e
s
s
A
f
o
l
a
s
o
p
s
D
i
e
g
r
a
h
C
t
n
e
m
r
i
a
p
m
I
)
8
3
2
(
)
9
9
6
1
,
(
e
s
n
e
p
x
E
n
o
i
t
a
s
i
t
r
o
m
A
n
o
i
t
a
c
e
r
p
e
D
/
i
,
y
t
r
e
p
o
r
P
n
h
t
i
i
w
s
r
e
f
s
n
a
r
T
,
3
3
8
1
5
9
1
,
5
6
1
7
9
,
4
9
6
8
,
5
9
2
5
4
,
0
7
5
8
0
1
,
2
6
5
2
8
9
,
8
3
1
0
2
5
,
3
9
1
3
,
6
1
2
6
8
1
,
1
2
0
2
y
l
u
J
1
3
t
a
e
c
n
a
l
a
B
.
s
m
r
e
t
e
s
a
e
l
n
i
e
g
n
a
h
c
a
o
t
e
u
d
s
t
e
s
s
A
e
s
U
-
f
o
-
t
h
g
R
i
f
o
t
n
e
m
e
r
u
s
a
e
m
e
r
o
t
s
e
t
a
l
e
r
s
t
e
s
s
a
f
o
t
n
e
m
e
r
u
s
a
e
m
e
R
1
)
6
4
9
4
,
(
)
8
6
9
4
,
(
)
7
5
8
8
5
,
(
)
6
1
3
9
5
,
(
)
6
3
1
(
)
3
4
0
1
,
(
e
s
n
e
p
x
E
NOTES TO THE FINANCIAL STATEMENTS2022 ANNUAL REPORT NEW HOPE GROUPFOR THE YEAR ENDED 31 JULY 2022
11. PROPERTY, PLANT AND EQUIPMENT (CONTINUED)
SIGNIFICANT JUDGEMENTS AND ESTIMATES
(A) Impairment Assessment
All Property, Plant and Equipment allocated to Cash Generating Units (CGUs) containing Goodwill must be tested for
impairment at the CGU level on an annual basis. Other Property, Plant and Equipment assets must also be tested for
impairment when impairment indicators are identified. Refer to Note 14 for further detail on the significant judgements
and estimates used in impairment assessment.
(B) Estimation Of Coal And Oil Reserves And Resources
The Group estimates its coal reserves and resources based on information compiled by Competent Persons as defined
in accordance with the JORC Code, which is produced by the Australasian Joint Ore Reserves Committee (JORC). The oil
reserves and resources are equivalently calculated by appropriately qualified persons in accordance with the Society of
Petroleum Engineers Petroleum Reserves Management System (SPE-PRMS) (updated May 2022).
The estimation of reserves and resources requires judgement to interpret available geological data and then to select an
appropriate mining method and establish an extraction schedule. It also requires assumptions about future commodity prices,
exchange rates, production costs, recovery rates and discount rates and, in some instances, the renewal of mining licences.
There are many uncertainties in the estimation process and assumptions that are valid at the time of estimation may change
significantly when new information becomes available. In particular, the increasing global focus on climate change and
associated policy and regulatory risks may impact on future coal demand and prices which could impact reserves and
resource estimations, including the commercial viability of their extraction.
Changes in coal and oil reserves could have an impact on the calculation of depreciation, amortisation and impairment
charges; the timing of the payment of closedown and restoration costs; and the recovery of deferred tax assets.
Changes in coal and oil resources could have an impact on the recoverability of exploration and evaluation costs capitalised.
Refer to Note 14 for details on Impairment of Assets.
(C) New Acland Stage 3 Approvals
There have been several key developments in the approvals of the New Acland Stage 3 project (NAC03) during the reporting
period. An assessment has undertaken based on these key developments as at 31 July 2022 for any potential indicators of
impairment to the Coal Mining QLD operations CGU assets. Refer to Note 14 for details on Impairment of Assets.
97
NOTES TO THE FINANCIAL STATEMENTS NEW HOPE GROUP 2022 ANNUAL REPORTTAX CONTRIBUTION REPORTDIRECTORS’ REPORTSUSTAINABILITY REPORTFINANCIAL REPORTOTHER INFORMATIONOPERATIONS REVIEWFOR THE YEAR ENDED 31 JULY 2022 12. INTANGIBLE ASSETS
ACCOUNTING POLICY
IT Development
and Software
Water Rights
and Mining
Information
Goodwill
Costs incurred in IT development and developing software 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
three to five years.
The Group benefits from Water Rights associated with its mining operations through the efficient and
cost-effective operation of the mine. These rights are amortised on a straight-line basis over the life of
the mine. The value of exploration, pre-feasibility and feasibility costs necessary for regulatory, reporting
and internal control purposes have been recognised as a Mining Information Intangible Asset. The total
value is amortised over the estimated life of the mine.
Goodwill on acquisitions of subsidiaries is included in Intangible Assets. Goodwill on acquisitions of
associates is included in Investments in Associates. Goodwill is not amortised. Goodwill 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. Goodwill is allocated to CGUs for the purpose
of impairment testing. The allocation is made to those CGUs or groups of CGUs that are expected to
benefit from the business combination in which the goodwill arose.
Impairment
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. Refer to Note 14 for details of impairment testing. Goodwill impairments are
not reversible.
NOTES
SOFTWARE
$000
GOODWILL
$000
WATER
RIGHTS
$000
MINING
INFORMATION
$000
Year ended 31 July 2022
Balance at 1 August 2021
Amortisation Charge
Disposal
Disposal – Lenton
Balance at 31 July 2022
Year ended 31 July 2021
Balance at 1 August 2020
Amortisation Charge
Balance at 31 July 2021
10
892
(458)
(34)
–
400
1,443
(551)
892
TOTAL
$000
76,552
(3,982)
(34)
(909)
5,595
–
–
–
10,892
(555)
–
–
59,173
(2,969)
–
(909)
5,595
10,337
55,295
71,627
5,595
–
5,595
11,447
(555)
10,892
62,142
(2,969)
59,173
80,627
(4,075)
76,552
CRITICAL ESTIMATE – GOODWILL IMPAIRMENT ASSESSMENT
Management use judgement in determining the CGU’s that should be used for impairment testing and allocating Goodwill
that arises from business combinations to these CGU’s. The Group’s Goodwill of $5,595,000 (2021: $5,595,000)
relates to the acquisition of Queensland Bulk Handling Pty Ltd (QBH). Refer to Note 14 for the details regarding the
impairment assessments performed at 31 July 2022 and any related impairment charge recognised in the Statement
of Comprehensive Income.
98
NOTES TO THE FINANCIAL STATEMENTS2022 ANNUAL REPORT NEW HOPE GROUPFOR THE YEAR ENDED 31 JULY 2022
13. EXPLORATION AND EVALUATION ASSETS
ACCOUNTING POLICY
Costs are carried forward only if they relate to an area of interest for which rights of tenure are current and either such costs
are expected to be recouped through successful development and exploration or from sale of the area or activities in the area
of interest have not (at reporting date) reached a stage that permits a reasonable assessment of existence or otherwise of
economically recoverable reserves. At the time that a decision is taken to develop an area with proven technical feasibility
and commercial viability the costs will cease to be capitalised as exploration and evaluation assets and existing assets will be
transferred to Property, Plant and Equipment.
Exploration and Evaluation expenditure which do not satisfy these criteria are expensed.
Total Exploration and Evaluation Assets
Reconciliation
Balance at 1 August
Additions
Movements in Rehabilitation
Disposal – Lenton
Transfers from Property, Plant and Equipment
Impairment Charge
Balance at 31 July
NOTES
2022
$000
2021
$000
71,043
105,533
105,533
13,367
(277)
(42,591)
–
(4,989)
71,043
94,223
10,813
753
992
(1,248)
105,533
10
14
CRITICAL JUDGEMENT – EXPLORATION AND EVALUATION EXPENDITURE
During the year the Group capitalised various items of expenditure to the Exploration and Evaluation Asset. The relevant
items of expenditure were deemed to be part of the capital cost of developing future mining and oil operations, which will
subsequently be amortised over the life of the mine or oil field. 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
area.
There are a number of factors which will be considered in determining the potential for successful development or sale of an
exploration asset, including but not limited to, judgements in relation to future commercial viability of exploration tenements,
potential for successful development, the risk of expiration of exploration rights without renewal and planned expenditure for
further exploration, all of which may be further impacted by climate change considerations.
If after expenditure is capitalised information becomes available suggesting that the recovery of expenditure is unlikely,
the amount capitalised is recognised in the Statement of Comprehensive Income in the period when the new information
becomes available. Refer to Note 14 for the details regarding the impairment assessments performed at 31 July 2022 and
any related impairment charge recognised in the Statement of Comprehensive Income.
99
NOTES TO THE FINANCIAL STATEMENTS NEW HOPE GROUP 2022 ANNUAL REPORTTAX CONTRIBUTION REPORTDIRECTORS’ REPORTSUSTAINABILITY REPORTFINANCIAL REPORTOTHER INFORMATIONOPERATIONS REVIEWFOR THE YEAR ENDED 31 JULY 2022
14. IMPAIRMENT OF ASSETS
ACCOUNTING POLICY
The Group tests assets for impairment whenever events or changes in circumstances indicate that the carrying amount may
not be recoverable.
An Impairment Charge is recognised immediately in the Statement of Comprehensive Income 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 Dispose (FVLCD) and its value in use (VIU).
For the purposes of assessing impairment, 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 (CGU).
Irrespective of whether there is any indication of impairment, the Group also tests Intangible Assets with an indefinite useful
life or Intangible Assets not yet available for use for impairment annually. Goodwill is tested for impairment annually, or more
frequently if events or changes in circumstances indicate that the CGU to which it is allocated to for impairment testing might
be impaired.
With the exception of Goodwill, the Company assesses annually for any indicator of a reversal of a previous impairment.
Goodwill previously impaired is non-reversible.
A. CGU ASSESSMENT
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 CGUs. These CGUs are different to the Group’s Operating Segments outlined in Note 1.
B. IMPAIRMENT INDICATOR ASSESSMENT AND ASSESSMENT OF RECOVERABLE AMOUNT
The Company performed an impairment indicator assessment across all CGUs for the 2022 financial year and detailed impairment
assessments where indicators of impairment have been identified or where Goodwill has been allocated to the CGU. An asset is
impaired when its carrying amount exceeds its recoverable value. Where estimates of recoverable amounts have been required
these have been determined using either a FVLCD or VIU discounted cash flow model, with the exception of exploration related
CGUs and assets which uses a comparable resource multiple. These methodologies are subject to critical judgement, estimates
and assumptions. Relevant considerations in respect of the Company’s impairment indicator assessments and the determination
of CGU recoverable value are included below:
(I) QLD COAL MINING OPERATIONS CGU
The QLD Coal Mining Operations CGU is predominantly comprised of the New Acland Coal Mine, which includes New Acland Stage
2 and New Acland Stage 3 (NAC03). During the 2022 financial year the Company continued to consider the potential impact that
recent developments in the legal and regulatory environment in relation to NAC03 may have on the recoverable amount for the CGU
and whether there were any further indicators of impairment or factors suggesting reversal of previously recognised impairments
of NAC03.
100
NOTES TO THE FINANCIAL STATEMENTS2022 ANNUAL REPORT NEW HOPE GROUPFOR THE YEAR ENDED 31 JULY 2022 14. IMPAIRMENT OF ASSETS (CONTINUED)
B. ASSESSMENT OF RECOVERABLE AMOUNT (CONTINUED)
(I) QLD COAL MINING OPERATIONS CGU (CONTINUED)
A summary of key events pertaining to NAC03 approvals since July 2020 are detailed below:
• The NAC03 project requires a Regional Interests Development Approval (RIDA) in accordance with the Regional Planning
Interests Act 2014. Following an extended history of appeal, NAC03’s application for a RIDA was approved, with conditions,
by the Queensland Treasury on the 27 August 2020;
• On 3 February 2021, the High Court of Australia upheld the appeal by Oakey Coal Action Alliance (OCAA) against NAC03
in respect of the previous orders issued by the Queensland Court of Appeal given on 1 November 2019;
• The High Court ordered the matter of NAC03’s application for Mining Leases and Environmental Authority to be re-heard
in the Queensland Land Court;
• On 17 December 2021, the Land Court of Queensland recommended that the Mining Leases and Environmental Authority
amendment application be granted, subject to conditions;
• On 26 May 2022, the Coordinator-General issued her change report to the stated conditions for the Environmental Authority
for NAC03;
• The Coordinator-General’s change report satisfies a condition to the Land Court of Queensland’s recommendation that
NAC03’s Mining Leases and the Environmental Authority amendment be granted;
• On 28 June 2022, the Department of Environment and Science issued the New Acland Mine Stage 3 Environmental
Authority. The Environmental Authority includes the Coordinator-General’s amended stated conditions in accordance with
the Land Court of Queensland’s recommendation that New Acland Mine Stage 3’s Mining Leases and the Environmental
Authority amendment application be granted; and
• On 26 August 2022, the Minister for Resources granted the New Acland Stage 3 Mining Leases, such that the associated
water licence (AWL) remains the key outstanding approval. An Amended AWL application was submitted on 19 January
2019, which progressed through public consultation and is with the Minister for decision.
For the year ending 31 July 2021, the Directors determined the recoverable amount for the CGU based on a FVLCD calculation, using
discounted cashflow projections, adjusted with probability weightings specific to individual scenarios to derive a weighted average
recoverable amount. An impairment charge of $40,259,000 was charged to Statement of Comprehensive Income. Given the above
developments during the year ending 31 July 2022, the Directors reviewed the carrying amount for the CGU and whether there were
any further indicators of impairment at 31 July 2022 or factors suggesting a reversal of impairment may be appropriate.
No impairment indicators were identified during the period ended 31 July 2022, thus no impairment charge has been recognised in
the Statement of Comprehensive Income (31 July 2021: $40,259,000).
101
NOTES TO THE FINANCIAL STATEMENTS NEW HOPE GROUP 2022 ANNUAL REPORTTAX CONTRIBUTION REPORTDIRECTORS’ REPORTSUSTAINABILITY REPORTFINANCIAL REPORTOTHER INFORMATIONOPERATIONS REVIEWFOR THE YEAR ENDED 31 JULY 2022 14. IMPAIRMENT OF ASSETS (CONTINUED)
B. ASSESSMENT OF RECOVERABLE AMOUNT (CONTINUED)
(I) QLD COAL MINING OPERATIONS CGU (CONTINUED)
The Carrying Value as at 31 July 2022 and Impairment Charge in the comparative period are outlined below:
Property, Plant and Equipment
Land and Buildings – Mining
Plant and Equipment
Mining Reserves, Leases and Development Assets
Plant under Construction
Intangibles
Software
Exploration and Evaluation
Exploration and Evaluation at cost
Total
2022
2021
CARRYING
VALUE
$000
IMPAIRMENT
CHARGE
$000
RECOVERABLE
AMOUNT1
$000
IMPAIRMENT
CHARGE
$000
18,561
9,831
68
311
38
6,147
34,956
–
–
–
–
–
–
–
18,859
19,007
9,053
30,191
97
252
373
–
–
–
2,204
40,792
1,015
40,259
1
Recoverable amount as at 31 July 2021 represents the carrying value of the CGU, post impairment recognised of $40.3m. The total
cumulative impairment recognised against the CGU is $151m.
Additional considerations
The QLD Coal Mining Operations CGU has existing long term take or pay agreements for port and water supply. In respect of the
water agreement, should the remaining water licence approval for Stage 3 ultimately not be granted and the operations be placed
into long-term care and maintenance or otherwise abandoned or disposed, an onerous contract may need to be recognised if the
unavoidable costs of the contract cannot be mitigated. The take or pay agreement for rail that was in place in the prior comparative
period expired in December 2021, refer Note 15(c).
The QLD Coal Mining Operations CGU is a customer of the Port Operations CGU of the Group. As such in the event that the mining
operations at NAC03 do not recommence, this may be relevant to the recoverable value of the Port Operations CGU and will be a
factor in any future impairment considerations. Whilst at 31 July 2022 no indicators of impairment had been identified with respect to
the Port Operations CGU, as the CGU includes an allocation of Goodwill the recoverable value of the Port Operations CGU is required
to be compared to its carrying value on an annual basis in accordance with Australian Accounting Standards, as outlined in (B)(ii).
102
NOTES TO THE FINANCIAL STATEMENTS2022 ANNUAL REPORT NEW HOPE GROUPFOR THE YEAR ENDED 31 JULY 2022
14. IMPAIRMENT OF ASSETS (CONTINUED)
B. ASSESSMENT OF RECOVERABLE AMOUNT (CONTINUED)
(I) QLD COAL MINING OPERATIONS CGU (CONTINUED)
The Carrying Value of the Port Operation CGU assets is set out below:
Property, Plant and Equipment
Land and Buildings
Plant and Equipment
Right-of-Use Assets
Port Development
Plant under Construction
Intangibles
Software
Goodwill
Total Carrying Value
(II) GOODWILL
2022
$000
2021
$000
1,388
70,214
57,486
9,839
–
31
5,595
1,466
74,835
54,513
10,348
50
54
5,595
144,553
146,861
Goodwill relates to the acquisition of Queensland Bulk Handling Pty Ltd (Port Operations), $5,595,000, (2021: $5,595,000).
Port Operations
The recoverable amount of the Port Operations CGU has been determined based on a VIU calculation. This calculation uses a
discounted cash flow model. The future cashflows have been discounted using a post-tax discount rate of 9.5 per cent (2021:
9.5 per cent). At 31 July 2022 the recoverable amount was assessed to be greater than the carrying value for this CGU and as such
no impairment charge was recognised for the 2022 financial year (2021: NIL). The Port Operations CGU is part of the Group’s Coal
Mining QLD segment.
(III) COAL EXPLORATION AND EVALUATION ASSETS
The recoverable amount of the assets has historically been determined based on a FVLCD calculation underpinned by a resource
multiple. A resource multiple is considered the appropriate valuation methodology for an exploration asset of this type as it represents
the price paid for the resources in market transactions for exploration tenures. The Group determined that a resource multiple of
$0.03 (31 July 2021: $0.03) be ascribed to the JORC resources.
Impairment indicators were identified for the Yamala Coal Project resulting in the recognition of an impairment charge of $4,898,000.
No other impairment indicators were identified during the period ended 31 July 2022 in the Statement of Comprehensive Income
(2021: $1,618,000).
103
NOTES TO THE FINANCIAL STATEMENTS NEW HOPE GROUP 2022 ANNUAL REPORTTAX CONTRIBUTION REPORTDIRECTORS’ REPORTSUSTAINABILITY REPORTFINANCIAL REPORTOTHER INFORMATIONOPERATIONS REVIEWFOR THE YEAR ENDED 31 JULY 2022
14. IMPAIRMENTS OF ASSETS (CONTINUED)
B. ASSESSMENT OF RECOVERABLE AMOUNT (CONTINUED)
(III) COAL EXPLORATION AND EVALUATION ASSETS (CONTINUED)
The Carrying Value and Impairment Charge calculated is outlined below:
North Surat Coal Project
Exploration and Evaluation
Property, Plant and Equipment
Yamala Coal Project
Exploration and Evaluation
Total
2022
2021
CARRYING
VALUE
$000
IMPAIRMENT
CHARGE
$000
CARRYING
VALUE
$000
IMPAIRMENT
CHARGE
$000
25,952
8,685
–
34,637
–
–
4,989
4,989
25,530
8,797
4,989
39,316
233
1,385
–
1,618
CRITICAL JUDGEMENTS AND ESTIMATES
The determination of FVLCD and VIU requires the Directors to make estimates and assumptions about the expected long-
term commodity prices, production timing and probabilities, tonnages and recovery rates, foreign exchange rates, operating
costs, reserve and resource estimates (refer to Note 11), closure costs and discount rates. Estimates in respect of the timing
of project expansions and the cost to complete asset construction are also critical to determining the recoverable amounts
for CGUs. The fair value measurements used in these calculations are based on non-observable market data which are
considered Level 3 in the fair value hierarchy.
In determining a comparable resource multiple, judgement is involved in determining the appropriate discount to apply to the
resource multiple. The resource multiple is considered Level 3 in the fair value hierarchy due to this judgement, which uses
non-observable market data, rather than quoted prices to determine the discount.
The above judgements, estimates and assumptions are subject to risk and uncertainty and may change as new information
becomes available. In particular, the increasing global focus on climate change and associated policy and regulatory risk may
impact some of the above judgements, estimates and assumptions. In particular future supply and demand for fossil fuels
impacted by legislation and or regulation to a lower carbon economy may impact the commodity prices the Company receives
for its products in global energy markets and the commercial viability of its exploration and evaluation assets. Such changes
may result in additional impairment indicators for the Company’s assets and CGUs in the future. In the event the recoverable
amount of assets is impacted by changes in these, the carrying amount of the assets may be further impaired with the impact
recognised in the Statement of Comprehensive Income.
104
NOTES TO THE FINANCIAL STATEMENTS2022 ANNUAL REPORT NEW HOPE GROUPFOR THE YEAR ENDED 31 JULY 2022
15. PROVISIONS
ACCOUNTING POLICY
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.
Short-Term Employee
Benefit Obligations
Other Long-Term
Employee Benefit
Obligations
Restoration,
Rehabilitation and
Environmental
Expenditure
Onerous contracts
Liabilities for wages and salaries, including non-monetary benefits, annual leave, vesting sick leave
and redundancies expected to be settled within 12 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. These are measured at the amounts expected to be paid when the
liabilities are settled. The liability for 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.
The liability for long service leave and annual leave which is not expected to be settled within
12 months of balance date 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. 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 a high-quality
corporate bonds rate with terms to maturity and currency that match, as closely as possible, the
estimated future cash outflows.
Provisions are raised for restoration and rehabilitation expenditure as soon as an obligation exists,
with the cost being charged to the Statement of Comprehensive Income 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.
A provision for onerous contracts is recognised when the expected benefits to be derived by
the Group from a contract are lower than the unavoidable cost of meeting its obligations under
the contract. The provision is measured at the present value of the lower of expected cost of
terminating the contract and the expected new cost of continuing with the contract.
Other provisions
including legal claims
The Group recognises a provision when: a) it has a present obligation, b) it is probable that an
outflow of resources embodying economic benefits will be required to settle the obligation and
c) a reliable estimate can be made of the amount to settle the obligation.
If the Group has a present obligation arising from past events but d) it is possible rather than
probable that an outflow of resources embodying economic benefits will be required to settle the
obligation, or e) the amount of the obligation cannot be measured with sufficient reliability, the
Group discloses a contingent liability.
105
NOTES TO THE FINANCIAL STATEMENTS NEW HOPE GROUP 2022 ANNUAL REPORTTAX CONTRIBUTION REPORTDIRECTORS’ REPORTSUSTAINABILITY REPORTFINANCIAL REPORTOTHER INFORMATIONOPERATIONS REVIEWFOR THE YEAR ENDED 31 JULY 2022 15. PROVISIONS (CONTINUED)
EMPLOYEE
BENEFITS
$000
RESTORATION/
REHABILITATION
$000
ONEROUS
CONTRACTS
$000
2022
Current
Non-Current
2021
Current
Non-Current
A. EMPLOYEE BENEFITS
25,734
7,590
33,324
36,630
6,976
43,606
Current long service leave obligations expected to be settled after 12 months
6,099
158,771
164,870
–
–
–
TOTAL
$000
31,833
166,361
198,194
326
16,477
267,633
267,959
–
16,477
53,433
274,609
328,042
2022
$000
7,932
2021
$000
11,138
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.
B. MINING RESTORATION AND REHABILITATION
Movements
Balance at 1 August
Provision Capitalised
Disposal – Lenton
Provision charged/(released) to Profit or Loss
Charged to Profit or Loss – unwinding of discount
Balance at 31 July
C. ONEROUS CONTRACTS
NOTES
2022
$000
2021
$000
10b
20(d)
267,959
249,056
(52,714)
(50,327)
(4,389)
4,341
3,490
–
11,517
3,896
164,870
267,959
At 31 July 2022, the provision for the onerous take or pay rail contract as a result of the ramp down of its QLD Mining operations was
unwound as the contract ended in December 2021.
106
NOTES TO THE FINANCIAL STATEMENTS2022 ANNUAL REPORT NEW HOPE GROUPFOR THE YEAR ENDED 31 JULY 2022
15. PROVISIONS (CONTINUED)
D. LIQUIDATION PROCESSES
The Directors of the Company’s subsidiaries, Northern Energy Corporation Limited (NEC) and Colton Coal Pty Ltd (Colton Coal),
placed the companies into voluntary administration on 17 October 2018. The companies were subsequently placed into liquidation
by creditors at a meeting on 26 July 2019. The Liquidators commenced proceedings in the Supreme Court of New South Wales on
26 March 2021 against the Company, associated subsidiary companies and former directors and officers of NEC and Colton.
The claims made by the Liquidators include that NEC and Colton were trading whilst insolvent. The Liquidators estimate the total
value of the alleged claims to be approximately $175,000,000 plus interest and costs.
• On 26 August 2021, the Liquidators filed and served an Amended Statement of Claim joining Wiggins Island Coal Export
Terminal Pty Limited as a plaintiff to the proceedings;
• The parties have exchanged evidence;
• Discovery of documents is substantively completed but remains ongoing;
• The Court has set down the matter for hearing to commence on 13 February 2023 with a six-week period reserved; and
• The Group denies the claims made by the Liquidators and intends to vigorously defend the proceedings.
The Company has considered its position and has determined that no provision is required to be made as at 31 July 2022.
The Company recognises legal expenses as incurred. The Group incurred Liquidation related expenses including legal expenses of
$9,823,000 during the year ending 31 July 2022 ($2,620,000 31 July 2021).
SIGNIFICANT ESTIMATE – DETERMINATION OF RESERVES ESTIMATES,
REHABILITATION COSTS AND ONEROUS CONTRACTS
Rehabilitation
Provision is made for rehabilitation, restoration and environmental costs when the obligation arises, based on the net present
value of estimated future costs. The ultimate cost of rehabilitation and restoration is uncertain, and management uses its
judgment and experience to provide for these costs over the life of the operations.
The Group makes estimates about the future cost of rehabilitating tenements which are currently disturbed, based on
legislative requirements and current costs. There are policy change risks in particular with the growing global focus on climate
change which may impact on rehabilitation obligations. 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.
The estimation of reserves and resources are also a key judgement that affects the timing of the payment of closedown
and restoration costs as detailed in Note 11.
Onerous Contracts
A provision for onerous contracts is recognised when the expected benefits to be derived by the Group from a contract are
lower than the unavoidable cost of meeting its obligations under the contract. The provision is measured at the present value
of the lower of expected cost of terminating the contract and the expected new cost of continuing with the contract.
107
NOTES TO THE FINANCIAL STATEMENTS NEW HOPE GROUP 2022 ANNUAL REPORTTAX CONTRIBUTION REPORTDIRECTORS’ REPORTSUSTAINABILITY REPORTFINANCIAL REPORTOTHER INFORMATIONOPERATIONS REVIEWFOR THE YEAR ENDED 31 JULY 2022 16. CASH AND CASH EQUIVALENTS
ACCOUNTING POLICY
Cash and Cash Equivalents include Cash at Bank and 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 cash flows of the Group.
Cash at bank and on hand
A. CASH AT BANK AND ON HAND
2022
$000
2021
$000
715,714
424,663
Cash at Bank and on Hand includes deposits for which there is a short-term identified use in the operating cash flows of the Group
and attracts interest at rates between 0 per cent and 0.6 per cent (2021 – 0 per cent and 0.6 per cent).
B. RISK EXPOSURE
Information about the Group’s exposure to foreign exchange risk and credit risk is detailed in Note 24.
17. TERM DEPOSITS
ACCOUNTING POLICY
Investments are nonderivative 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. Investments are carried at amortised cost.
Term Deposits
2022
$000
100,000
2021
$000
–
Following the Company’s strong accumulation of cash and equivalents in the year, a Term Deposit for $100.0 million was placed in
July 2022 for a period of 12 months.
108
NOTES TO THE FINANCIAL STATEMENTS2022 ANNUAL REPORT NEW HOPE GROUPFOR THE YEAR ENDED 31 JULY 2022 18. EQUITY INVESTMENTS
ACCOUNTING POLICY
The Group classifies its Financial Assets as either subsequently measured at fair value (FV) or amortised cost and the
classification is determined by the Group’s business model for managing the Financial Assets and the contractual terms
of the cash flows.
For assets measured at fair value, gains and losses will be recorded through Profit or Loss or OCI. For Equity Investments
the Group must make an irrevocable election on initial recognition to account for any Equity Investment at FVOCI. At initial
recognition the Group measures a Financial Asset at its fair value plus transaction costs attributable to the acquisition
(where the asset is not FVTPL). Transaction costs for Financial Assets that are FVTPL are expensed in the Statement of
Comprehensive Income.
Listed Equity Securities
Un-Listed Equity Securities
Total Equity Securities
2022
$000
490
94,483
94,973
2021
$000
229
–
229
An irrevocable election has been made to classify existing Equity Investments held by the Group at FVOCI.
Malabar Resources Limited
The Company, through a wholly owned subsidiary, has acquired, with a settlement date of 27 July 2022, a 15 per cent interest in
Malabar Resources Limited (Malabar) for a total investment of $94.4 million. Malabar is an unlisted public company whose flagship
asset is the Maxwell Mine, an underground metallurgical coal project located 10kms south-west of Muswellbrook in the Hunter
Valley. Construction of the project commenced in May 2022.
The Company’s investment in Malabar:
• Aligns with the Company’s strategy to invest its surplus cash into coal assets that are low on the cost curve with long life
approvals;
• Adds meaningful equity tonnes at an attractive entry price investing alongside well-respected founders who have a strong
track record of developing coal projects and companies;
• Diversifies the Company’s asset base by providing exposure to metallurgical coal mined by low impact, underground
methods;
• Facilitates delivery of a project with strong technical and operational foundations and the ability to unlock value with the use
of significant established infrastructure; and
• Provides attractive investment returns over the life of the project with additional upside return opportunities from diversified
enterprises including exploration and agricultural assets and the future development of an approved 25MW solar farm.
The Company’s investment in Malabar Resources was pursuant to an equity raising conducted by Malabar Resources in which
the Company acquired 75,530,455 ordinary shares at $1.25 per share funded from existing cash (paid 27 July 2022).
The investment in Malabar Resources is classified as a Financial Asset and the Group has made an irrevocable election to account
for the equity investment at fair value through other comprehensive income.
The Company considered the nature of its investment in Malabar Resources and assessed whether it has significant influence
over the entity. The determination of the existence of significant influence requires judgement, having regard to a number of
factors. Based on its shareholding and board composition, the Company determined that it does not have significant influence over
Malabar Resources.
109
NOTES TO THE FINANCIAL STATEMENTS NEW HOPE GROUP 2022 ANNUAL REPORTTAX CONTRIBUTION REPORTDIRECTORS’ REPORTSUSTAINABILITY REPORTFINANCIAL REPORTOTHER INFORMATIONOPERATIONS REVIEWFOR THE YEAR ENDED 31 JULY 2022 19. UNEARNED REVENUE
ACCOUNTING POLICY
Unearned Revenue relates to the advance consideration received from customers for contractual obligations, e.g., transfer of
goods or services. Revenue is recognised over the period during which the service or performance obligation is delivered.
Current Liabilities
Unearned revenue
Total Current
Non-Current
Unearned revenue
Total Non-Current
Total Unearned Revenue
2022
$000
906
906
2,844
2,844
3,750
2021
$000
–
–
–
–
–
Unearned revenue represents the revenue received in advance in relation to the sale of gas.
20. BORROWINGS
ACCOUNTING POLICY
Borrowings comprise Interest-Bearing Loans and Lease Liabilities, net of Finance Costs. Refer to each sub-section which
follows for details of the Group’s accounting policies on Interest-Bearing Loans (Secured and Unsecured), Leases Liabilities
and Finance Income and Expense.
2022
$000
2021
$000
10,690
–
10,690
86,590
–
191,241
277,831
288,521
10,066
953
11,019
90,585
307,101
189,193
586,879
597,898
Current Liabilities
Lease Liabilities
Secured loan
Total Current
Non-Current Liabilities
Lease Liabilities
Secured Loan1
Unsecured Convertible Notes2
Total Non-Current
Total Borrowings
1 Net of transaction costs capitalised $NIL (2021: $2,898,000).
2 Net of transaction costs capitalised.
110
NOTES TO THE FINANCIAL STATEMENTS2022 ANNUAL REPORT NEW HOPE GROUPFOR THE YEAR ENDED 31 JULY 2022
20. BORROWINGS (CONTINUED)
Details of the Group’s exposure to risks arising from current and non-current borrowing are set out below.
A. INTEREST-BEARING LOANS
ACCOUNTING POLICY
Interest-Bearing Loans are initially recognised at fair value, net of any transactions costs incurred and subsequently measured
at amortised cost. Any difference between the proceeds (net of transaction costs) and the redemption amount is recognised
in the Statement of Comprehensive Income over the term of the liability using the effective interest method. Fees paid on
the establishment of loan facilities are recognised as transaction costs of the loan to the extent that it is probable that some
or all of the facility will be drawn down. In this case, the fee is deferred until the draw down occurs. To the extent there is
no evidence that it is probable that some or all of the facility will be drawn down, the fee is capitalised as a prepayment for
liquidity services and amortised over the term of the facility to which it relates.
Interest-Bearing Loans are classified as Current Liabilities to the extent that the Group has no unconditional right to defer
settlement of the liability for at least 12 months after the balance date.
On issuance of Convertible Notes, the fair value of the liability component is determined using a market rate for an equivalent
non-convertible note. This amount is carried as a Non-Current Liability on an amortised basis until extinguished on conversion
or redemption. The increase in liability due to the passage of time is recognised as a Finance Cost. The remainder of the
proceeds are allocated to the conversion option that is recognised and included in Contributed Equity, net of transaction cost.
The carrying amount of the conversion option is not remeasured in subsequent years. Transaction costs are apportioned
between the liability and equity components of the Convertible Note based on the allocation of proceeds to the liability and
equity components when the instruments are first recognised.
(I) SECURED LOANS
Current Liabilities
Non-Current Liabilities
Total
2022
$000
–
–
–
2021
$000
953
307,101
308,054
Financing Activities During The Period
The $600,000,000 drawable amortising facility was cancelled by the Group prior to 31 July 2022. The $300,000,000 credit support
facility remains in place.
Secured Liabilities And Assets Pledged As Security
Lenders under the Secured Loan Facility have been granted a registered security interest over all assets held by the Group (with the
exception of excluded subsidiaries). The excluded subsidiaries include the following controlled subsidiaries Bridgeport Energy Pty
Limited, Bridgeport Eromanga Pty Ltd, Bridgeport (Cooper Basin) Pty Ltd, Bridgeport (QLD) Pty Ltd, Bridgeport Surat Basin Pty Ltd,
Oilwells Inc of Kentucky and Oilwells Sole Risk Pty Ltd as well as previously controlled subsidiaries NEC and Colton. Lessors hold first
rights in respect of leased assets.
(II) UNSECURED CONVERTIBLE NOTES
On 2 July 2021, the Company issued Convertible Notes (Notes) with an aggregate principal amount of $200,000,000. There has
been no movement in the number of these Notes since the issue date.
111
NOTES TO THE FINANCIAL STATEMENTS NEW HOPE GROUP 2022 ANNUAL REPORTTAX CONTRIBUTION REPORTDIRECTORS’ REPORTSUSTAINABILITY REPORTFINANCIAL REPORTOTHER INFORMATIONOPERATIONS REVIEWFOR THE YEAR ENDED 31 JULY 2022 20. BORROWINGS (CONTINUED)
A. INTEREST-BEARING LOANS (CONTINUED)
The Notes are convertible at the option of the Noteholders into Ordinary Shares based on an initial conversion price of $2.10 per
share at any time on or after 12 August 2021 up to the date falling five business days prior to the final maturity date, 2 July 2026.
The Noteholder has the option to require the Company to redeem all or some of the Noteholder’s Notes on 2 July 2024 for an amount
equal to 100 per cent of the principal amount of the Notes plus any accrued but unpaid interest. Any Notes not converted will be
redeemed on 2 July 2026 at the principal amount of the Notes plus any accrued but unpaid interest.
The Notes carry interest at a rate of 2.75 per cent per annum which is payable semi-annually in arrears on 2 July and 2 January.
Total interest paid during the 2022 financial year period was $5,500,000 (2021: NIL).
The net proceeds from the Notes, after deducting all the related costs and expenses, were $195,202,000. The proceeds were
recorded in Cash and Cash Equivalents at 31 July 2021.
The fair value of the liability component of the Notes was estimated at the issuance date using an equivalent market interest rate
of a similar bond. The net proceeds received from the issuance of the Notes have been split between the financial liability element
and an equity component, representing the fair value of the embedded option to convert the financial liability into equity of the Group,
as follows:
CONVERTIBLE NOTES – INITIAL RECOGNITION OF COMPONENTS
Nominal Value of Convertible Notes issued
Equity Component of the Convertible Notes1
Transaction Fees1
At Inception
Liability Component
Opening Balance
Repayment
Interest on Convertible Notes
Unsecured Non-Current Liabilities
2022
$000
–
–
–
–
2021
$000
200,000
(6,610)
(4,798)
188,592
189,193
188,592
(5,500)
7,548
–
601
191,241
189,193
1
Transaction costs are proportionately allocated, with $4,635,000 allocated to the liability component and $163,000 to the equity
component on initial recognition.
No Notes converted to Ordinary Shares during the 2022 financial year. The number of Ordinary Shares into which the Notes may
convert at 31 July 2022 is 106,746,372 (2021: 95,238,095). The movement relates to changes in the conversion price made by the
Company in accordance with the conditions of the Note into ordinary shares in New Hope Corporation Limited.
112
NOTES TO THE FINANCIAL STATEMENTS2022 ANNUAL REPORT NEW HOPE GROUPFOR THE YEAR ENDED 31 JULY 2022
20. BORROWINGS (CONTINUED)
B. LEASE LIABILITIES
ACCOUNTING POLICY
Lease Liabilities are recognised, measured, presented and disclosed in accordance with AASB 16 Leases (AASB 16).
The Group presents Right-of-Use assets in Property, Plant and Equipment and Lease Liabilities in Borrowings in the
Statement of Financial Position.
The Group assesses whether a contract is or contains a lease, at inception of the contract. The Group recognises a Right-
of-Use Asset and a corresponding Lease Liability with respect to all lease arrangements in which it is the lessee, except for
short-term leases (defined as leases with a lease term of 12 months or less) and leases of low-value assets. For these leases,
the Group recognises the lease payments as an operating expense on a straight-line basis over the term of the lease, which
takes into account any extensions that are likely to be enacted, unless another systematic basis is more representative of the
time pattern in which economic benefits from the leased assets are consumed.
The Lease Liability is initially measured at the present value of the lease payments that are not paid at the commencement
date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Group’s
incremental borrowing rate. Generally, the Group uses its incremental borrowing rate as the discount rate. Lease payments
included in the measurement of the lease liability comprise:
• Fixed lease payments (including in-substance fixed payments), less any lease incentives receivable;
• Variable lease payments that depend on an index or rate, initially measured using the index or rate at the
commencement date;
• The amount expected to be payable under residual value guarantees; and
• The exercise price under a purchase option that the Group is reasonably certain to exercise, lease payments in an
optional renewal period if the Group is reasonably certain to exercise an extension option and penalties for early
termination of a lease unless the Group is reasonably certain not to terminate early.
The Lease Liability is subsequently measured by increasing the carrying amount to reflect interest on the Lease Liability
(using the effective interest method) and by reducing the carrying amount to reflect the lease payments made.
It is remeasured when there is a change in future lease payments arising from a change in an index or rate, if there is a change
in the Group’s estimate of the amount expected to be payable under a residual value guarantee, or if the Group changes its
assessment of whether it will exercise a purchase, extension or termination option. When the lease liability is remeasured
in this way, a corresponding adjustment is made to the carrying amount of the Right-of-Use Asset, or is recorded in the
Statement of Comprehensive Income if the carrying amount of the Right-of-Use Asset has been reduced to zero.
Payments associated with short-term leases of equipment and vehicles and all leases of low-value assets are recognised
on a straight-line basis as an expense in the Statement of Comprehensive Income. Short-term leases are leases with a lease
term of 12 months or less. Low-value assets are comprised of IT equipment and small items of office furniture.
The Group leases property, including office buildings and port facilities, and plant and equipment. Lease terms are negotiated on an
individual basis and contain a wide range of terms and conditions.
113
NOTES TO THE FINANCIAL STATEMENTS NEW HOPE GROUP 2022 ANNUAL REPORTTAX CONTRIBUTION REPORTDIRECTORS’ REPORTSUSTAINABILITY REPORTFINANCIAL REPORTOTHER INFORMATIONOPERATIONS REVIEWFOR THE YEAR ENDED 31 JULY 2022 20. BORROWINGS (CONTINUED)
B. LEASE LIABILITIES (CONTINUED)
The maturity profile of Lease Liabilities recognised at the end of the Financial Year is:
Lease Liabilities are payable as follows:
Within One Year
Later than One Year but not later than Five Years
Later than Five Years
Minimum Lease Payments
Future Finance Charges
Total Lease Liability
The present value of Lease Liabilities is as follows:
Within One Year
Later than One Year but not later than Five Years
Later than Five Years
Total Lease Liability
Amounts recognised in the Statement of Comprehensive Income during the financial year:
Depreciation Expense on Right-of-Use Assets
Impairment of Right-of-Use Assets
Interest Expense on Lease Liabilities
Expense relating to Short-Term Leases1
Expense relating to Leases of Low-Value Assets1
2022
$000
2021
$000
15,157
45,737
75,079
14,398
52,195
73,072
135,973
139,665
(38,693)
97,280
(39,014)
100,651
10,690
32,738
53,852
97,280
7,888
–
4,421
129
–
10,066
38,977
51,608
100,651
9,256
2,136
5,173
516
51
Total Expense for Leases recognised in the Statement of Comprehensive Income
12,438
17,132
1 Amounts recognised within the Statement of Comprehensive Income as Cost of Sales
SECURED LIABILITY
Lease Liabilities are effectively secured as the rights to the leased assets recognised in the Consolidated Financial Statements revert
to the lessor in the event of default.
114
NOTES TO THE FINANCIAL STATEMENTS2022 ANNUAL REPORT NEW HOPE GROUPFOR THE YEAR ENDED 31 JULY 2022
NON-CASH
CHANGES1
$000
6,790
2,076
7,548
NON-CASH
CHANGES1
$000
31,382
2,102
2022
$000
97,280
–
191,241
288,521
2021
$000
100,651
308,054
(6,509)
189,193
26,975
597,898
20. BORROWINGS (CONTINUED)
C. MOVEMENTS IN INTEREST-BEARING LOANS AND LEASE LIABILITIES
Details of the Group’s exposure to risks arising from current and non-current borrowings are set out below:
CHANGES ARISING IN LIABILITIES
FROM FINANCING ACTIVITIES
Lease Liabilities
Secured Loans
Unsecured Convertible Notes
Total Liabilities from Financing Activities
2022
$000
CASH FLOWS
$000
100,651
308,054
189,193
597,898
(10,161)
(310,130)
(5,500)
(325,791)
16,414
CHANGES ARISING IN LIABILITIES FROM FINANCING
ACTIVITIES
2021
$000
CASH FLOWS
$000
Lease Liabilities
Secured Loans
Unsecured Convertible Notes
Total Liabilities from Financing Activities
83,145
355,952
–
439,097
(13,876)
(50,000)
195,702
131,826
1
Total non-cash change in Lease Liabilities during the 2022 financial year includes $6,631,000 related to a remeasurement of leases
during the year. In the 2021 financial year, total non-cash changes included $37,085,000 of new leases recognised and a reduction of
$4,723,000 related to a remeasurement of leases during the year.
The fair value of Interest-Bearing Liabilities materially approximates their respective carrying values as at 31 July 2022.
D. FINANCE INCOME AND EXPENSE
ACCOUNTING POLICY
Finance Income comprises Interest Income on funds invested. Interest Income is recognised as it accrues, using the effective
interest method.
Finance Expenses comprise Interest Expense on Interest-Bearing Liabilities, Unwinding of the Discount on Provisions,
Interest Expense in relation to Leases. All Finance Expenses are recognised as expenses in the period in which they are
incurred unless they relate to the construction of a qualifying asset and are then capitalised. Qualifying Assets are assets that
necessarily take a substantial period of time to get ready for their intended use or sale.
115
NOTES TO THE FINANCIAL STATEMENTS NEW HOPE GROUP 2022 ANNUAL REPORTTAX CONTRIBUTION REPORTDIRECTORS’ REPORTSUSTAINABILITY REPORTFINANCIAL REPORTOTHER INFORMATIONOPERATIONS REVIEWFOR THE YEAR ENDED 31 JULY 2022 20. BORROWINGS (CONTINUED)
D. FINANCE INCOME AND EXPENSE (CONTINUED)
Recognised in the Statement of Comprehensive Income
Interest Income
Finance Income
Interest on Drawn Secured Loan
Amortisation of Transaction Costs on Secured Loan
Commitment Fees on Secured Loan
Interest on Unsecured Convertible Notes
Interest Expense on Lease Liabilities
Unwinding of Discount on Provisions
Other Financing Costs
Financing Expenses
E. CONTINGENT LIABILITIES
2022
$000
1,644
1,644
(1,553)
(1,346)
(6,115)
(7,548)
(4,421)
(4,341)
(1,406)
2021
$000
85
85
(10,681)
(2,076)
(2,275)
(601)
(5,173)
(3,896)
(1,973)
(26,730)
(26,675)
Details and estimates of maximum amounts of Contingent Liabilities for which no provision is included in the accounts are as follows:
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.
2022
$000
14,686
2021
$000
14,132
The Parent Company has given secured guarantees in respect of:
(i) Mining Restoration and Rehabilitation
158,374
102,091
The liability has been recognised by the Group in relation to its rehabilitation obligations.
(ii) Statutory body suppliers, financiers and various other entities
14,686
14,132
With the exception of the Financial Guarantee Liability of $2.5 million recognised in relation to Lenton (Refer Note 10B), no liabilities
were recognised by the Consolidated Entity in relation to these guarantees as no losses are foreseen on these Contingent Liabilities.
Other than the above and the matters set out in Note 10(b) and Note 15(d) there are no other contingent liabilities for the Group at
31 July 2022 (2021: NIL).
116
NOTES TO THE FINANCIAL STATEMENTS2022 ANNUAL REPORT NEW HOPE GROUPFOR THE YEAR ENDED 31 JULY 2022
20. BORROWINGS (CONTINUED)
F. LINES OF CREDIT
Unrestricted access was available at 31 July 2022 to the following lines of credit available of $300,000,000 (2021: $300,000,000).
2022 $000
2021 $000
126,940
183,777
173,060
116,223
Guarantee Facility Utilised
Guarantee Facility Unutilised
21. DERIVATIVE FINANCIAL INSTRUMENTS
ACCOUNTING POLICY
Commodity Hedging And 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).
At the inception of the transaction, the Group documents 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 a Cash Flow Hedge is
recognised in the Hedging Reserve. The gain or loss relating to the ineffective portion is recognised immediately in the
Statement of Comprehensive Income.
Amounts accumulated in Equity are recycled in the Statement of Comprehensive Income 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 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 the Statement of Comprehensive Income. When a forecast transaction is no longer
expected to occur, the cumulative gain or loss that was reported in Equity is immediately reclassified to the Statement of
Comprehensive Income.
117
NOTES TO THE FINANCIAL STATEMENTS NEW HOPE GROUP 2022 ANNUAL REPORTTAX CONTRIBUTION REPORTDIRECTORS’ REPORTSUSTAINABILITY REPORTFINANCIAL REPORTOTHER INFORMATIONOPERATIONS REVIEWFOR THE YEAR ENDED 31 JULY 2022 21. DERIVATIVE FINANCIAL INSTRUMENTS (CONTINUED)
2022
Notional amount
Carrying amount of the hedging instrument:
- Assets
- Liabilities
Total carrying amount of the hedging instrument
Change in value of hedging instrument(i)
Change in value of hedged item(i)
Change in value of the hedging instrument recognised in reserve(ii)
Hedge ineffectiveness recognised in profit or loss(iii)
Amount reclassified from hedge reserve to profit or loss
Balance in cash flow hedge reserve for continuing hedges
Notes
(i) Amounts related to change in value include time value components.
CASH FLOW HEDGES
FECS
$’000
FX OPTIONS
$’000
COMMODITY
SWAPS
$’000
TOTAL
$’000
USD 60,000 USD 480,000 USD 722,925
-
(1,922)
(1,922)
(11,668)
11,668
(20,880)
–
9,212
(1,922)
1,365
(8,479)
(7,114)
(7,114)
7,114
(7,343)
–
229
-
1,365
(134,197)
(144,598)
(134,197)
(143,233)
(134,197)
(152,979)
134,197
152,979
(134,197)
(162,420)
–
–
9,441
(7,114)
(134,197)
(143,233)(iv)
(ii) Hedge effectiveness is the extent to which the changes in fair value of the hedging instrument offsets changes in the fair value of the
hedged item.
(iii) Hedge ineffectiveness is the extent to which the changes in the cash flows of the hedging instrument are greater or less than the hedged
item. Sources of ineffectiveness include the effect of credit risk on the hedging instrument. A positive number represents a gain in the Profit
or Loss.
(iv) The post-tax equivalent of the total balance in cash flow hedge reserve for continuing hedges is A$(100,263,000)
2022
$000
2021
$000
–
9,746
1,365
1,365
2022
$000
(17,335)
(127,263)
(144,598)
–
9,746
2021
$000
–
–
–
Current Assets
Derivatives – Hedging Instruments
Non-Current Assets
Derivatives – Hedging Instruments
Total Derivatives Financial Assets
Current Liabilities
Derivatives – Hedging Instruments
Non-Current Liabilities
Derivatives – Hedging Instruments
Total Derivatives Financial Liabilities
118
NOTES TO THE FINANCIAL STATEMENTS2022 ANNUAL REPORT NEW HOPE GROUPFOR THE YEAR ENDED 31 JULY 2022
21. DERIVATIVE FINANCIAL INSTRUMENTS (CONTINUED)
A. INSTRUMENTS USED BY THE GROUP
New Hope Corporation Limited and certain 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 and commodity pricing.
At 31 July 2022, Derivative Financial Instruments represented assets with a fair value of $1,365,000 (2021 – $9,746,000) and
liabilities of $144,598,000 (2021 – NIL). At balance date the details of outstanding contracts are:
(I) FOREIGN EXCHANGE CONTRACTS
MATURITY
0 to 6 months
6 to 12 months
More than 12 months
Total Foreign Exchange Contracts
II) FOREIGN EXCHANGE OPTIONS
MATURITY
0 to 6 months
6 to 12 months
More than 12 months
Total Foreign Exchange Options
III) COMMODITY SWAPS
MATURITY
0 to 6 months
6 to 12 months
More than 12 months
Total Commodity Swaps
B. CREDIT RISK EXPOSURES
SELL US DOLLARS
BUY AUSTRALIAN DOLLARS
AVERAGE EXCHANGE RATE
2022
$000
2021
$000
2022
RATE
2021
RATE
60,000
46,319
0.7116
0.5829
–
–
–
–
60,000
46,319
–
–
–
–
SELL US DOLLARS
BUY AUSTRALIAN DOLLARS
AVERAGE EXCHANGE RATE
2022
$000
2021
$000
2022
RATE
2021
RATE
120,000
230,000
130,000
480,000
0.7038
0.7261
0.6700
–
–
–
–
–
–
–
–
SELL COAL USD PRICE
BUY COAL USD PRICE
AVERAGE COAL USD PRICE
2022
$000
2021
$000
2022
PRICE
2021
PRICE
60,750
54,675
607,500
722,925
$405.00
$405.00
$405.00
–
–
–
–
–
–
–
–
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 and pricing contracts and the consolidated entity is exposed to loss in the event
that counterparties fail to deliver the contracted amount. At 31 July 2022 $60,000,000 (2021: $46,319,000) was receivable relating
to Forward Foreign Exchange Contracts.
119
NOTES TO THE FINANCIAL STATEMENTS NEW HOPE GROUP 2022 ANNUAL REPORTTAX CONTRIBUTION REPORTDIRECTORS’ REPORTSUSTAINABILITY REPORTFINANCIAL REPORTOTHER INFORMATIONOPERATIONS REVIEWFOR THE YEAR ENDED 31 JULY 2022 22. DIVIDENDS
ACCOUNTING POLICY
Provision is made for any Dividend declared on or before the end of the Financial Year but not distributed at balance date.
A. ORDINARY DIVIDEND PAID
2021 Final Dividend at 7.00 cents per share – 100% franked (tax rate – 30%)
(paid on 9 Nov 2021)
2022 Interim Dividend at 17.00 cents per share – 100% franked (tax rate – 30%)
(paid on 4 May 2022)
2022 Special Dividend at 13.00 cents per share – 100% franked (tax rate – 30%)
(paid on 4 May 2022)
Total Dividends Paid
B. PROPOSED DIVIDENDS
2022
$000
58,265
2021
$000
–
141,500
33,298
108,207
–
307,972
33,298
In addition to the above Dividends, the Directors have declared a Final Dividend of 31.0 cents (2021: 7.00) and special dividend of
25.0 cents per share (2021: Nil). The Dividend is fully franked based on Tax paid at 30 per cent. The proposed Dividend expected to
be paid on 8 November 2022. The declared Final Dividend has not been recognised as a liability at 31 July 2022 (2021: $NIL).
C. FRANKED DIVIDENDS
The franked portions of the Final Dividend recommended after 31 July 2022 will be franked out of existing Franking Credits.
Franking Credits available for subsequent financial years based on a tax rate of 30%
(2021 – 30%)
2022
$000
2021
$000
389,984
490,626
The above amounts represent the balances of the franking account as at the end of the Financial Year. This includes Franking
Debits that arose from the payment of Dividends recognised as a liability at the reporting date and Franking Credits that arose
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 after the 2022 financial year end, but not recognised as a liability at 31 July 2022, will result in a
reduction in the franking account of $199,765,700 (2021: $14,270,000) when paid.
D. DIVIDEND REINVESTMENT PLANS
There were no Dividend Reinvestment Plans in operation at any time during or since the end of the Financial Year (2021: NIL).
120
NOTES TO THE FINANCIAL STATEMENTS2022 ANNUAL REPORT NEW HOPE GROUPFOR THE YEAR ENDED 31 JULY 2022 23. EQUITY
ACCOUNTING POLICY
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.
A. ORDINARY SHARES
Ordinary Shares entitle the Shareholder 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. Every Shareholder 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. PERFORMANCE RIGHTS
Information relating to the Performance Rights Plan, including details of rights granted, vested and the amount lapsed during the
Financial Year and Performance Rights outstanding at the end of the Financial Year, is set out in Note 29.
C. SHARE CAPITAL
Issued and Paid-Up Capital
832,357,082
97,536
832,357,082
97,536
2022
NUMBER OF
SHARES
2022
$000
2021
NUMBER OF
SHARES
2021
$000
D. MOVEMENTS IN SHARE CAPITAL
DATE
DETAILS
1 August 2021
Opening Balance
31 July 2022
Balance
1 August 2020
Opening Balance
ISSUE
PRICE
NUMBER OF
SHARES
832,357,082
832,357,082
831,708,318
1 August 2020
Vesting of Performance Rights
648,764
$0.00
31 August 2020
Share-Based Payment Transactions
31 July 2021
Balance
–
832,357,082
$000
97,536
97,536
96,692
–
844
97,536
E. CAPITAL RISK MANAGEMENT
The Group’s objectives when managing capital are to maintain the Company’s ability to continue as a going concern, so that they can
continue to provide returns for shareholders.
121
NOTES TO THE FINANCIAL STATEMENTS NEW HOPE GROUP 2022 ANNUAL REPORTTAX CONTRIBUTION REPORTDIRECTORS’ REPORTSUSTAINABILITY REPORTFINANCIAL REPORTOTHER INFORMATIONOPERATIONS REVIEWFOR THE YEAR ENDED 31 JULY 2022
23. EQUITY (CONTINUED)
F. RESERVES
)
9
7
0
0
9
,
(
)
9
6
1
(
0
1
6
6
,
)
9
2
0
6
,
(
3
7
5
)
3
6
2
0
0
1
,
(
2
1
4
7
2
,
)
6
5
5
9
1
,
(
3
4
3
1
,
–
–
0
5
8
–
–
–
–
–
–
–
–
–
–
–
0
5
8
–
–
–
–
–
–
–
–
–
–
–
–
)
9
2
2
9
8
(
,
)
9
6
1
(
0
1
6
6
,
)
9
2
0
6
(
,
3
2
4
1
,
)
3
6
2
0
0
1
(
,
2
1
4
7
2
,
)
6
5
5
9
1
(
,
3
4
3
1
,
1
4
4
9
,
)
2
3
8
2
,
(
–
–
0
9
8
6
1
,
)
4
2
(
6
2
7
8
4
,
–
)
4
0
3
2
6
1
,
(
)
5
4
1
(
L
A
T
O
T
0
0
0
$
0
0
0
$
I
N
G
E
R
O
F
Y
C
N
E
R
R
U
C
I
N
O
T
A
L
S
N
A
R
T
–
–
–
–
E
L
B
I
0
0
0
$
S
E
T
O
N
0
1
6
6
,
–
–
–
–
–
–
–
–
)
9
2
0
6
,
(
3
7
5
0
0
0
$
2
2
8
6
,
1
4
4
9
,
)
2
3
8
2
,
(
)
0
2
4
2
6
1
,
6
2
7
8
4
,
(
–
–
–
–
–
–
–
1
6
2
–
–
–
–
-
T
R
E
V
N
O
C
I
M
U
M
E
R
P
I
D
A
P
0
0
0
$
1
I
C
N
N
O
0
0
0
$
-
E
R
A
H
S
D
E
S
A
B
S
T
N
E
M
Y
A
P
I
G
N
G
D
E
H
0
0
0
$
-
L
A
V
E
R
I
N
O
T
A
U
I
Y
T
U
Q
E
-
T
S
E
V
N
I
S
T
N
E
M
0
0
0
$
0
0
0
$
I
L
A
T
P
A
C
I
S
T
F
O
R
P
2
1
4
7
2
,
)
7
1
8
9
1
,
(
3
4
3
1
,
S
E
T
O
N
)
s
s
o
L
(
/
t
fi
o
r
p
t
e
N
o
t
r
e
f
s
n
a
r
T
s
s
o
r
G
–
)
s
s
o
L
(
/
t
fi
o
r
p
t
e
N
o
t
r
e
f
s
n
a
r
T
s
s
o
r
G
–
n
o
i
t
a
u
l
a
v
e
R
x
a
T
d
e
r
r
e
f
e
D
–
x
a
T
d
e
r
r
e
f
e
D
–
n
o
i
t
a
u
l
a
v
e
R
1
2
0
2
t
s
u
g
u
A
1
t
A
s
r
e
n
w
O
h
t
i
w
s
n
o
i
t
c
a
s
n
a
r
T
s
r
e
n
w
O
s
a
y
t
i
c
a
p
a
c
r
i
e
h
t
n
i
-
e
r
a
h
S
n
i
t
n
e
m
e
v
o
M
t
e
N
e
v
r
e
s
e
R
t
n
e
m
y
a
P
d
e
s
a
B
y
t
i
u
q
e
f
o
n
o
i
t
i
n
g
o
c
e
R
2
t
n
e
n
o
p
m
o
c
122
2
1
4
7
2
,
)
4
5
8
9
1
,
(
3
4
3
1
,
0
2
0
2
t
s
u
g
u
A
1
t
A
3
5
5
2
4
,
7
5
9
4
5
,
)
7
8
4
6
1
,
(
2
–
–
)
4
6
9
9
9
,
(
)
6
2
(
3
9
9
9
2
,
–
2
5
0
1
1
,
)
4
2
(
0
1
6
6
,
2
7
)
4
4
8
(
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
)
9
2
0
6
,
(
5
4
3
1
,
)
9
2
0
6
,
(
5
4
3
1
,
4
3
3
8
3
,
7
5
9
4
5
,
)
7
8
4
6
1
,
(
)
5
7
9
9
9
,
(
2
2
8
6
,
3
9
9
9
2
,
–
–
–
–
–
–
–
7
3
–
–
–
–
2
1
4
7
2
,
)
7
1
8
9
1
,
(
3
4
3
1
,
–
–
0
1
6
6
,
–
–
–
–
2
7
)
4
4
8
(
–
–
–
–
–
–
–
–
–
–
–
–
0
9
8
6
1
,
)
4
2
(
0
1
6
6
,
)
9
2
0
6
(
,
3
7
5
2
2
8
6
,
2
1
4
7
2
,
)
7
1
8
9
1
(
,
3
4
3
1
,
9
2
)
d
(
3
2
d
e
t
u
b
i
r
t
n
o
C
o
t
r
e
f
s
n
a
r
T
2
2
0
2
y
l
u
J
1
3
t
A
y
t
i
u
q
E
9
2
)
s
s
o
L
(
/
t
fi
o
r
p
t
e
N
o
t
r
e
f
s
n
a
r
T
s
s
o
r
G
–
)
s
s
o
L
(
/
t
fi
o
r
p
t
e
N
o
t
r
e
f
s
n
a
r
T
s
s
o
r
G
–
n
o
i
t
a
u
l
a
v
e
R
x
a
T
d
e
r
r
e
f
e
D
–
x
a
T
d
e
r
r
e
f
e
D
–
n
o
i
t
a
u
l
a
v
e
R
s
r
e
n
w
O
h
t
i
w
s
n
o
i
t
c
a
s
n
a
r
T
s
r
e
n
w
O
s
a
y
t
i
c
a
p
a
c
r
i
e
h
t
n
i
-
e
r
a
h
S
n
i
t
n
e
m
e
v
o
M
t
e
N
e
v
r
e
s
e
R
t
n
e
m
y
a
P
d
e
s
a
B
y
t
i
u
q
e
f
o
n
o
i
t
i
n
g
o
c
e
R
2
t
n
e
n
o
p
m
o
c
)
d
(
3
2
d
e
t
u
b
i
r
t
n
o
C
o
t
r
e
f
s
n
a
r
T
1
2
0
2
y
l
u
J
1
3
t
A
y
t
i
u
q
E
.
)
,
0
0
0
3
6
1
$
:
1
2
0
2
I
(
L
N
$
f
o
s
t
s
o
c
n
o
i
t
c
a
s
n
a
r
t
f
o
t
e
N
.
t
s
e
r
e
t
n
I
g
n
i
l
l
o
r
t
n
o
C
-
n
o
N
–
I
C
N
1
2
NOTES TO THE FINANCIAL STATEMENTS2022 ANNUAL REPORT NEW HOPE GROUPFOR THE YEAR ENDED 31 JULY 2022
23. EQUITY (CONTINUED)
F. RESERVES (CONTINUED)
NATURE AND PURPOSE OF RESERVES
Capital Profits
This reserve represents amounts allocated from retained profits that were profits of a capital nature.
Equity Investments Changes in the fair value of Equity Investments are taken to this Reserve. Amounts are recognised in the
Statement of Comprehensive Income or transferred to Retained Earnings when the associated assets are
sold or impaired.
Revaluation
Hedging
Share-Based
Payments
Premium Paid on
Non-Controlling
Interest Acquisition
This Reserve represents the revaluation arising on the fair value uplift of Property, Plant and Equipment on
the initial holding of QBH further to the acquisition of the remaining 50 per cent of this company.
The Hedging Reserve is used to record the changes in fair value of a hedging instrument in a Cash Flow
Hedge that are recognised directly in Equity, as described in Note 21. Amounts are recognised in the
Statement of Comprehensive Income when the associated hedged transaction affects the Statement of
Comprehensive Income.
The Share-Based Payment Reserve is used to recognise the fair value of Performance Rights issued, but not
yet exercised. Fair values at grant date are independently determined using the Black-Scholes options pricing
model that takes into account the exercise price, the term of the Performance Right, the impact of dilution,
the Share Price at grant date and expected volatility of the underlying share, the expected dividend yield and
risk-free interest rate for the term of the Performance Right.
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.
Convertible Notes
This reserve represents the equity component of convertible notes (see note 20 A. (ii)).
G. RETAINED PROFITS
Carrying Amount at Beginning of Year
Net profit/(Loss) after Income Tax
Dividends Paid
Balance at End of Year
24. FINANCIAL RISK MANAGEMENT
ACCOUNTING POLICY
NOTES
2022
$000
2021
$000
1,632,187
1,586,135
983,009
79,350
22(a)
(307,972)
(33,298)
2,307,224
1,632,187
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.
123
NOTES TO THE FINANCIAL STATEMENTS NEW HOPE GROUP 2022 ANNUAL REPORTTAX CONTRIBUTION REPORTDIRECTORS’ REPORTSUSTAINABILITY REPORTFINANCIAL REPORTOTHER INFORMATIONOPERATIONS REVIEWFOR THE YEAR ENDED 31 JULY 2022 24. FINANCIAL RISK MANAGEMENT (CONTINUED)
The Group holds the following financial instruments:
FAIR VALUE
THROUGH OTHER
COMPREHENSIVE
INCOME
$000
NOTES
HEDGING
DERIVATIVES
$000
AMORTISED
COST
$000
FAIR VALUE
THROUGH
PROFIT & LOSS
$000
TOTAL
$000
715,714
526,721
100,000
94,973
1,365
–
–
–
–
1,365
1,365
–
–
–
–
9,746
9,746
715,714
97,362
100,000
–
–
–
429,359
–
–
–
913,076
429,359
1,438,773
424,663
100,359
–
–
–
–
9,216
–
–
–
424,663
109,575
–
229
9,746
525,022
9,216
544,213
–
–
–
–
144,598
144,598
97,280
89,672
–
191,241
–
–
4,806
–
–
–
378,193
4,806
–
–
–
–
–
–
100,651
78,786
308,054
189,193
–
676,684
–
–
–
–
–
–
97,280
94,478
–
191,241
144,598
527,597
100,651
78,786
308,054
189,193
–
676,684
Financial Assets
2022
Cash and Cash Equivalents
Trade and Other Receivables
Term Deposit
Equity Investments
Derivative Financial Instruments
2021
Cash and Cash Equivalents
Trade and Other Receivables
Term Deposit
Equity Investments
Derivative Financial Instruments
Financial Liabilities
2022
Lease Liabilities
Trade and Other Payables
Secured Loans
Unsecured Loans
Derivative Financial Instruments
2021
Lease Liabilities
Trade and Other Payables
Secured Loans
Unsecured Loans
Derivative Financial Instruments
16
7
17
18
21
16
7
17
18
21
20
8
20
20
21
20
8
20
20
21
–
–
–
94,973
–
94,973
–
–
–
229
–
229
–
–
–
–
–
–
–
–
–
–
–
–
124
NOTES TO THE FINANCIAL STATEMENTS2022 ANNUAL REPORT NEW HOPE GROUPFOR THE YEAR ENDED 31 JULY 2022
24. FINANCIAL RISK MANAGEMENT (CONTINUED)
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 Group’s functional currency. The Group is exposed to foreign exchange risk arising from currency exposures to the
US dollar.
Forward contracts and Options are used to manage foreign exchange risk. Senior management is responsible for managing
exposures in each foreign currency by using forward currency contracts and options. Contracts and Options are designated as Cash
Flow Hedges. Foreign Exchange Contracts and Options are designated at Group level as hedges of foreign exchange risk on specific
future transactions.
The Group’s risk management framework is to hedge anticipated transactions (export coal sales) in US dollars for the subsequent
year as deemed necessary. All hedges of projected export coal sales qualify as ‘highly probable’ forecast transactions for hedge
accounting purposes. The Group’s exposure to foreign currency risk at the reporting date was as follows:
Cash and Cash Equivalents
Trade Receivables
Derivatives – Foreign Exchange Forward Contracts1
Derivatives – Foreign Exchange Options1
Derivatives – Commodity Swaps1
Trade Payables
1 Notional amounts.
(II) COMMODITY HEDGE RISK
2022
USD
$000
2,908
310,833
60,000
480,000
722,925
11,049
2021
USD
$000
50,768
47,344
27,000
–
–
5,020
Commodity hedge contracts are used to manage price risk. Senior management is responsible for managing exposures in pricing by
using commodity hedge contracts as deemed necessary. Contracts are designated as Cash Flow Hedges. Commodity price contracts
are designated at Group level as hedges of price risk on specific future transactions.
Group sensitivity
Based on the Trade Receivables, Cash and Trade Payables held at 31 July 2022, had the Australian dollar weakened/strengthened by
10 per cent against the US dollar with all other variables held constant, the Group’s post-tax profit for the year would have increased/
(decreased) by $33,598,000/($27,490,000) (2021 – $8,026,000/($9,809,000)), mainly as a result of foreign exchange gains/losses
on translation of US dollar receivables and Cash and Cash Equivalents balance 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 2022, had the Australian dollar weakened/strengthened by 10 per cent
against the US dollar with all other variables held constant, the Group’s equity would have increased/(decreased) by $10,826,000/
($6,472,000) (2021 – $3,324,000/($4,062,000)). There is no effect on post-tax profits.
Based on the foreign exchange options held at 31 July 2022, had the Australian dollar weakened/strengthened by 10 per cent
against the US dollar with all other variables held constant, the Group’s equity may be impacted to the extent that the increased/
decreased spot rate reaches a level beyond the Protective and the Participation rates.
125
NOTES TO THE FINANCIAL STATEMENTS NEW HOPE GROUP 2022 ANNUAL REPORTTAX CONTRIBUTION REPORTDIRECTORS’ REPORTSUSTAINABILITY REPORTFINANCIAL REPORTOTHER INFORMATIONOPERATIONS REVIEWFOR THE YEAR ENDED 31 JULY 2022 24. FINANCIAL RISK MANAGEMENT (CONTINUED)
A. MARKET RISK (CONTINUED)
(III) PRICE RISK
The Group is exposed to equity securities price risk arising from certain investments held by the Group and classified on the
Statement of Financial Position as equity instruments.
The Group’s equity investment is publicly traded. The impact of increases/decreases in the financial instrument on the Group’s equity
as at balance date is $65,600/($65,600)) (2021 – $31,000/($31,000)). The analysis is based on the assumption that the equity
instrument had increased/decreased by 10 per cent with all other variables held constant.
The price risk for unlisted securities is immaterial in terms of the possible impact on total equity. It has therefore not been included
in the sensitivity analysis.
(IV) FAIR VALUE INTEREST RATE RISK
Refer to Note 24 (e).
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 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 26). 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 information
about counterparty default rates. The table below summarises the assets which are subject to credit risk.
Trade and Other Receivables
Cash at Bank
Term Deposits
Derivative Financial Instruments
C. LIQUIDITY RISK
NOTES
16
21
2022
$000
526,721
715,714
100,000
1,365
2021
$000
109,575
424,663
–
9,746
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.
FINANCING ARRANGEMENTS
The Group’s only significant external borrowings relate to unsecured convertible notes and leases detailed in Note 20. The maturity
of these arrangements is shown on the following page.
126
NOTES TO THE FINANCIAL STATEMENTS2022 ANNUAL REPORT NEW HOPE GROUPFOR THE YEAR ENDED 31 JULY 2022 24. FINANCIAL RISK MANAGEMENT (CONTINUED)
D. MATURITY OF FINANCIAL LIABILITIES
The maturity groupings of Derivative Financial Instruments are detailed in Note 21.
Trade Payables and Accruals (Note 8) are normally settled within 45 days of recognition. The Group’s Borrowings (Note 20)
comprise Lease Liabilities and Secured and Unsecured Loans.
The Group’s Secured Loan was terminated effective 15 July 2022 prior to its maturity in November 2023.
Lease liabilities are fixed rate leases with a weighted average interest rate of 4.54 per cent (FY21: 4.45 per cent) and are payable
over a period of one to 20 years (FY21: 21 years).
Unsecured convertible notes represent the liability component of Convertible Notes (net of transaction costs) with a coupon rate
of 2.75 per cent and option premium of 3.5 per cent. Interest is payable semi-annually over a five-year period.
The table below details the contractual cash flows of Lease Liabilities, Unsecured Convertible Notes and Derivative Liabilities.
2022
Lease Liabilities
Unsecured Convertible Notes
Derivatives
2021
Lease Liabilities
Unsecured Convertible Notes
0 TO 6
MONTHS
$000
6 TO 12
MONTHS
$000
1 TO 2
YEARS
$000
2 TO 5
YEARS
$000
AFTER 5
YEARS
$000
TOTAL
$000
CARRYING
AMOUNT
$000
7,665
2,750
3,198
7,688
2,750
13,902
31,551
75,333
136,139
97,278
5,500
211,000
–
222,000
191,241
14,137
92,403
34,860
144,598
144,598
7,060
2,750
7,338
2,750
14,726
37,469
73,072
139,665
5,500
216,500
–
227,500
100,651
189,193
E. CASH FLOW AND FAIR VALUE INTEREST RATE RISK
The Group is exposed to interest rate risk because entities in the Group borrow funds at floating interest rates. This risk of adverse
movements in floating interest rates has been considered and at this time is not deemed appropriate to actively mitigate this risk
through the use of derivatives or similar products.
Group Sensitivity
The Group is no longer exposed to interest rate risk as the secured loan facilities have been cancelled as at 31 July 2022 (2021:
$4,340,000/($4,340,000)).
127
NOTES TO THE FINANCIAL STATEMENTS NEW HOPE GROUP 2022 ANNUAL REPORTTAX CONTRIBUTION REPORTDIRECTORS’ REPORTSUSTAINABILITY REPORTFINANCIAL REPORTOTHER INFORMATIONOPERATIONS REVIEWFOR THE YEAR ENDED 31 JULY 2022 24. FINANCIAL RISK MANAGEMENT (CONTINUED)
F. FAIR VALUE MEASUREMENTS
ACCOUNTING POLICY
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 balance 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 Assets and Financial Liabilities must be estimated for recognition and measurement or for
disclosure purposes.
AASB 13 Fair Value Measurement requires disclosure of fair value measurements by level of the following fair value
measurement hierarchy:
(a) Quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1);
(b) 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
(c) Inputs for the asset or liability that are not based on observable market data (unobservable inputs) (Level 3).
128
NOTES TO THE FINANCIAL STATEMENTS2022 ANNUAL REPORT NEW HOPE GROUPFOR THE YEAR ENDED 31 JULY 2022 24. FINANCIAL RISK MANAGEMENT (CONTINUED)
F. FAIR VALUE MEASUREMENTS (CONTINUED)
The following table presents the Group’s assets and liabilities measured and recognised at fair value as at 31 July 2022
and 31 July 2021.
2022
Assets
Derivatives Financial Instruments
Trade Receivables – Provisionally Priced
Other Receivables – Lenton
Equity Investments
Total Assets
Liabilities
Derivatives Financial Instruments
Trade Payables -Provisionally Priced
Total Liabilities
2021
Assets
Derivatives Financial Instruments
Trade Receivables – Provisionally Priced
Equity Investments
Total Assets
Liabilities
Derivatives Financial Instruments
Total Liabilities
LEVEL 1
$000
LEVEL 2
$000
TOTAL
$000
–
–
–
490
490
–
–
–
–
–
229
229
–
–
1,365
1,365
389,888
389,888
39,471
94,483
39,471
94,973
525,842
525,697
144,598
144,598
4,806
4,806
149,404
149,404
9,746
9,216
–
9,746
9,216
229
18,962
19,191
–
–
–
–
The fair value of financial instruments traded in active markets (such as equity investments) is based on quoted market prices at the
reporting date. The quoted market price used for financial assets held by New Hope Corporation Limited is the last sale price.
The fair value of forward exchange contracts is determined using forward exchange market rates at the reporting date.
The fair value of trade receivables on provisionally priced sales is determined with reference to market pricing and contractual terms
at the reporting date.
129
NOTES TO THE FINANCIAL STATEMENTS NEW HOPE GROUP 2022 ANNUAL REPORTTAX CONTRIBUTION REPORTDIRECTORS’ REPORTSUSTAINABILITY REPORTFINANCIAL REPORTOTHER INFORMATIONOPERATIONS REVIEWFOR THE YEAR ENDED 31 JULY 2022 25. INTERESTS IN OTHER ENTITIES
A. SUBSIDIARIES
Significant subsidiaries include New Hope Bengalla Pty Ltd and Bridgeport Energy Pty Limited as well as the companies
identified in the Deed of Cross Guarantee in Note 31.
B. JOINT ARRANGEMENTS
Accounting Policy
Under AASB 11 Joint Arrangements, investments in joint arrangements are classified as either Joint Operations or Joint
Ventures. The classification depends on the contractual rights and obligations of each investor, rather than the legal structure
of the joint arrangement.
Joint Operations
The Group recognises its direct right to the assets, liabilities, revenues and expenses of Joint Operations and its share of any
jointly held or incurred assets, liabilities, revenues and expenses. These have been incorporated in the Consolidated Financial
Statements under the appropriate headings.
Joint Ventures
Interests in Joint Ventures are accounted for using the equity method, after initially being recognised at cost in the Statement
of Financial Position.
Other Unincorporated Arrangements
In some cases, the Group participates in unincorporated arrangements and has rights to its share of the assets and
obligations rather than a right to a net return but does not share joint control. In such cases, the Group recognises its share of
assets and liabilities; revenue from the sale of its share of the output and its share of any revenue generated from the sale of
the output by the unincorporated arrangement and its share of expenses. The Group measures these interests in accordance
with the terms of the arrangement, which is usually in proportion to the Group’s ownership interest. These amounts are
recorded in the Group’s Consolidated Financial Statements on the appropriate lines.
Bengalla Joint Venture
New Hope Corporation Limited holds an 80 per cent interest in the Bengalla thermal coal mine in New South Wales. This is
an unincorporated Joint Venture that is operated by Bengalla Mining Company Pty Ltd (BMC). BMC is proportionately owned
by the participants.
26. 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
B. LEASE COMMITMENTS
(I) NON-CANCELLABLE LEASES AS LESSOR
2022
$000
2021
$000
100,141
11,350
On 30 May 2021, the Group entered a sub-lease arrangement for its head office building for a period of five years, with an option to
extend for a further four years or alternatively with an option to extend until one day prior to the expiry of the head lease on 31 March
2030. This sublease lease arrangement commenced on 18 October 2021, with lease payments receivable monthly and annual rent
review escalation clauses included in the lease terms.
130
NOTES TO THE FINANCIAL STATEMENTS2022 ANNUAL REPORT NEW HOPE GROUPFOR THE YEAR ENDED 31 JULY 2022 26. COMMITMENTS (CONTINUED)
C. TAKE OR PAY COMMITMENTS
The Group has purchase obligations in relation to take or pay agreements which are legally binding and enforceable with rail, water
and port service providers in respect of operating sites. Refer to Note 14 and 15(c).
27. EVENTS OCCURRING AFTER THE REPORTING PERIOD
NEW ACLAND MINING LEASE APPROVAL
On 26 August 2022, the Minister for Resources granted the New Acland Mine Stage 3 Mining Leases. The grant of the Mining
Leases follows an independent assessment by the Minster for Resources including the consideration of the Land Courts
recommendation that the New Acland Stage 3 Mining Leases be granted. The only remaining approval required before mining can
begin is the granting of the Associated Water Licence by the Department of Regional Development, Manufacturing and Water.
CONVERTIBLE BOND CONVERSION
On 25 August 2022, the Company received a Conversion Notice in relation to holder of the Company’s Convertible Notes electing
to convert their Notes in accordance with the conditions of the Notes into ordinary shares in New Hope Corporation Limited at the
conversion price. The number of ordinary shares that were issued on 6 September 2022 under the Conversion Notice was 106,746.
On 8 September 2022, the Company received a Conversion Notice in relation to holder of the Company’s Convertible Notes electing
to convert their Notes in accordance with the conditions of the Notes into ordinary shares in New Hope Corporation Limited at the
conversion price. The number of ordinary shares that were issued on 14 September 2022 under the Conversion Notice was 426,985.
28. RELATED PARTY TRANSACTIONS
A. PARENT ENTITIES
With the appointment of a new Director, as at 29 July 2022, Washington H. Soul Pattinson and Company Limited (WHSP) no longer
held control and is no longer the ultimate Australian parent entity and controlling entity.
Washington H. Soul Pattinson and Company Limited (WHSP) as at 29 July 2022 owned 37.62 per cent (2021 – 36.95 per cent)
of the issued ordinary shares of New Hope Corporation Limited, thus has significant influence and will treat New Hope Corporation
Limited as an Associate from 30 July 2022 onwards.
B. KEY MANAGEMENT PERSONNEL
(I) DIRECTORS
The following persons were Directors of New Hope Corporation Limited during the Financial Year:
Chairman – Non-Executive
Robert D. Millner
Non-Executive Directors
Todd J. Barlow
Jacqueline E. McGill AO
Thomas C. Millner
Ian M. Williams
Steven R. Boulton
131
NOTES TO THE FINANCIAL STATEMENTS NEW HOPE GROUP 2022 ANNUAL REPORTTAX CONTRIBUTION REPORTDIRECTORS’ REPORTSUSTAINABILITY REPORTFINANCIAL REPORTOTHER INFORMATIONOPERATIONS REVIEWFOR THE YEAR ENDED 31 JULY 2022 28. RELATED PARTY TRANSACTIONS (CONTINUED)
B. KEY MANAGEMENT PERSONNEL (CONTINUED)
(II) 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:
CURRENT EXECUTIVE KMP
NAME
Robert J. Bishop
Rebecca S. Rinaldi
Dominic H. O’Brien
FORMER EXECUTIVE KMP
POSITION
Chief Executive Officer
Chief Financial Officer
Executive General Manager and Company
Secretary
EMPLOYER
New Hope Corporation Limited
New Hope Corporation Limited
New Hope Corporation Limited
NAME
POSITION
EMPLOYER
Reinhold H. Schmidt1
Chief Executive Officer
New Hope Corporation Limited
1 Reinhold H. Schmidt ceased as KMP on 14 January 2022.
(III) KEY MANAGEMENT PERSONNEL COMPENSATION
Short-Term Employee Benefits
Long-Term Employee Benefits
Post-Employment Benefits
Termination Payment
Share-Based Payment
C. TRANSACTIONS WITH RELATED PARTIES
Dividends paid to ultimate Australian controlling entity (WHSP)1
Payment for consulting services rendered (Pitt Capital Partners Ltd)
1 Deconsolidation effective 29 July 2022
2022
$
2021
$
3,916,190
4,497,536
40,698
147,085
410,680
475,707
3,313
154,381
919,357
(184,202)
4,990,360
5,390,385
2022
$
2021
$
115,845,675
13,883,857
300,000
238
Detailed remuneration disclosures can be found in the Remuneration Report on pages 24 to 39.
D. OUTSTANDING BALANCES ARISING FROM SALES/PURCHASES OF GOODS AND SERVICES
There are no outstanding balances arising from sales/purchases of goods and services from related parties at 31 July 2022
(2021: NIL).
E. TERMS AND CONDITIONS
Transactions relating to dividends were on the same terms and conditions that applied to other shareholders.
132
NOTES TO THE FINANCIAL STATEMENTS2022 ANNUAL REPORT NEW HOPE GROUPFOR THE YEAR ENDED 31 JULY 2022 F. OTHER TRANSACTIONS OF KEY MANAGEMENT PERSONNEL
R.D. Millner, T.C. Millner and T.J. Barlow are Directors of WHSP, the ultimate parent company of New Hope Corporation Limited and
Pitt Capital Partners Limited, up until the effective date of de-consolidation as at 29 July 2022. Pitt Capital Partners Limited acted as
financial advisor to the Group for various corporate transactions during the 2022 and 2021 financial years. All transactions were on
normal commercial terms.
Directors are required to take all reasonable steps to manage actual, potential or perceived conflicts of interest. Directors are required
to consider and notify the Company of any potential or actual conflicts of interest and Related Party transactions. Directors do not
participate in any negotiations of transactions with related parties.
G. LOANS TO KEY MANAGEMENT PERSONNEL
No loans have been made available to the Key Management Personnel of the Group.
29. SHARE-BASED PAYMENTS
ACCOUNTING POLICY
Share-based compensation benefits are provided to employees via the New Hope Corporation Limited Employee
Performance Rights Share Plan.
The fair value of Performance Rights granted under the New Hope Corporation Limited Employee Performance Rights Share
Plan are 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 Performance
Rights. Performance Rights vest at the nominated vesting date upon successful completion of applicable service and
performance conditions. Detailed vesting conditions are set out in the Directors’ Report.
The fair value of Performance Rights is determined based on the market price of shares at the grant date, with an adjustment
made to take into account the vesting period, expected dividends during that period that will not be received by the
participants and the probability that the performance conditions will be met The fair value of Performance Rights at grant
date is independently determined using a Black Scholes Monte Carlo simulation valuation approach that takes into account
the term of the Performance Right, the vesting criteria, the impact of dilution, the non-tradeable nature of the Performance
Right, 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 Performance Right.
The fair value of the Performance Rights 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
Performance Rights that are expected to become exercisable. At each reporting date, the Group revises its estimate of the
number of Performance Rights 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.
Performance Rights are granted under the New Hope Corporation Limited Employee Performance Rights Share Plan (Rights Plan).
Membership of the 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.
Performance Rights are granted for no consideration. Performance Rights will vest and automatically convert to ordinary shares
in the Company following the satisfaction of the relevant service and performance conditions. Service and performance conditions
applicable to each issue of Performance Rights are determined by the Directors at the time of grant. Total expense arising from rights
issued under the Rights Plan during the financial year was $850,000 (2021: ($72,000)).
133
NOTES TO THE FINANCIAL STATEMENTS NEW HOPE GROUP 2022 ANNUAL REPORTTAX CONTRIBUTION REPORTDIRECTORS’ REPORTSUSTAINABILITY REPORTFINANCIAL REPORTOTHER INFORMATIONOPERATIONS REVIEWFOR THE YEAR ENDED 31 JULY 2022 29. SHARE-BASED PAYMENTS (CONTINUED)
Performance Rights
Set out below is a summary of Performance Rights granted under the LTI plan:
As at 1 August
Granted during the year
Lapsed during the year
Forfeited during the year
Vested and Exercised during the year
As at 31 July
2022
2021
AVERAGE
PRICE
PER SHARE
NUMBER OF
PERFORMANCE
RIGHTS
AVERAGE
PRICE
PER SHARE
NUMBER OF
PERFORMANCE
RIGHTS
$1.995
$5.290
–
547,225
807,337
–
$0.760
(414,056)
–
–
$1.513
940,506
$2.279
$1.400
$1.290
$1.159
$1.290
$1.995
1,508,091
547,225
(35,865)
(823,462)
(648,764)
547,225
The weighted average share price at the date of vesting of Performance Rights during the 2022 year was $NIL (2021: $1.34).
Performance Rights (LTI) outstanding at the end of the year have the following vesting date and fair value at grant date:
GRANT DATE
29 Nov 2020
13 Sep 2022
Total
VESTING
DATE
1 Aug 2024
1 Aug 2024
VALUE OF
PERFORMANCE RIGHT
AT GRANT DATE
$0.76
$3.76
Weighted average remaining contractual life of Performance Rights outstanding at end of period
2.0 years
PERFORMANCE RIGHTS
2022
133,169
807,337
940,506
2021
547,225
–
547,225
3.0 years
30. PARENT ENTITY DISCLOSURES
ACCOUNTING POLICY
The financial information for the Parent entity, New Hope Corporation Limited, 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, Associates 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 Statement of Comprehensive
Income rather than being deducted from the carrying amount of these investments.
134
NOTES TO THE FINANCIAL STATEMENTS2022 ANNUAL REPORT NEW HOPE GROUPFOR THE YEAR ENDED 31 JULY 2022 30. PARENT ENTITY DISCLOSURES (CONTINUED)
A. SUMMARY FINANCIAL INFORMATION
The individual Financial Statements for the Parent entity show the following aggregate amounts:
Statement of Financial Position
Current Assets
Non-Current Assets
Total Assets
Current Liabilities
Non-Current Liabilities
Total Liabilities
Shareholders’ Equity
Contributed Equity
Reserves
Share-Based Payment
Other Reserves
Retained Earnings
Total Equity
Loss for the Year
Total Comprehensive Loss
B. GUARANTEES ENTERED INTO BY PARENT ENTITY
Bank Guarantees issued in relation to rehabilitation, statutory body suppliers
and various other entities.
2022
$000
2021
$000
741,067
409,467
759,271
799,281
1,150,534
1,558,552
709,300
204,341
913,641
483,088
507,393
990,481
97,536
97,536
1,423
6,610
131,324
236,893
573
6,610
463,352
568,071
(24,063)
(24,063)
(31,041)
(31,041)
2022
$000
2021
$000
173,060
116,223
The Parent entity has given secured guarantees in respect of mining restoration and rehabilitation. The liability has been recognised
in the consolidated accounts of the Parent entity in relation to its rehabilitation obligations however are not recognised in the parent
entity Statement of Financial Position. See Note 20(e).
Further guarantees are provided in respect of statutory body suppliers and other various entities with no liability being recognised by
the Parent entity as no losses are foreseen on these Contingent Liabilities.
135
NOTES TO THE FINANCIAL STATEMENTS NEW HOPE GROUP 2022 ANNUAL REPORTTAX CONTRIBUTION REPORTDIRECTORS’ REPORTSUSTAINABILITY REPORTFINANCIAL REPORTOTHER INFORMATIONOPERATIONS REVIEWFOR THE YEAR ENDED 31 JULY 2022
30. PARENT ENTITY DISCLOSURES (CONTINUED)
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.
2022
$000
2021
$000
173,060
116,223
No losses are anticipated in respect of any of the above Contingent Liabilities, except for matters set out in Note 10B.
D. CONTRACTUAL COMMITMENTS FOR THE ACQUISITION OF PROPERTY, PLANT AND EQUIPMENT
As at 31 July 2022, the Parent entity had contractual commitments for the acquisition of Property, Plant or Equipment totalling NIL
(2021 – NIL).
31. DEED OF CROSS GUARANTEE
New Hope Corporation Limited and each of the wholly-owned subsidiaries set out below (together the Closed Group) are party to a
deed of cross guarantee (Deed), as defined in ASIC legislative instrument: ‘ASIC Corporations (Wholly-owned Companies) Instrument
2016/785’ (previously ASIC Class Order 98/1418 Wholly-owned entities) (ASIC Instrument).
The general effect of the Deed is that each entity in the Closed Group guarantees the payment in full of all debts of other entities in
the Closed Group in the event of their winding up.
The purpose of entering into the Deed was so that members of the Closed Group could be eligible to obtain relief from the
requirements under the Corporations Act 2001 to prepare and lodge audited financial reports. As at the end of the year, New Acland
Coal Pty. Ltd., Andrew Wright Holdings Pty. Limited, Queensland Bulk Handling Pty Ltd, New Hope Bengalla Pty Ltd and Dexplan
Pty Ltd were relying on the relief under the ASIC Instrument.
The following entities are parties to the Deed and part of the Closed Group as at the end of the year1:
• New Hope Corporation Limited
•
Jeebropilly Collieries Pty. Ltd.
• Acland Pastoral Co. Pty Ltd
• New Oakleigh Coal Pty. Ltd.
• New Acland Coal Pty. Ltd.
• Andrew Wright Holdings Pty. Limited
• Arkdale Pty Ltd
• Queensland Bulk Handling Pty Ltd
• New Hope Bengalla Pty Ltd2
• Dexplan Pty Ltd3
• Tivoli Collieries Pty. Ltd.4
As there are no other parties to the Deed that are controlled by New Hope Corporation Limited, the above entities also represent the
‘Extended Closed Group’ for the purposes of the ASIC Instrument.
1
New Lenton Coal Pty Ltd ceased to be a member of the Closed Group and a party to the Deed on 1 July 2022 by reason of being
the subject of a notice of disposal.
2
Added as a party to the Deed under an Assumption Deed dated 21 July 2022.
3
Added as a party to the Deed under an Assumption Deed dated 21 July 2022.
4
Added as a party to the Deed under an Assumption Deed dated 21 July 2022.
136
NOTES TO THE FINANCIAL STATEMENTS2022 ANNUAL REPORT NEW HOPE GROUPFOR THE YEAR ENDED 31 JULY 2022 31. DEED OF CROSS GUARANTEE (CONTINUED)
A. STATEMENT OF CONSOLIDATED COMPREHENSIVE INCOME
Set out below is the Statement of Consolidated Comprehensive Income for the year ended 31 July 2022 for the Closed Group:
Revenue from Operations
Other Income
Expenses
Cost of Sales
Marketing and Transportation
Administration
Financing Costs
Other Expenses
Impairment of Assets
Loss before Income Tax
Income Tax Benefit
Loss after Income Tax for the Year
Other Comprehensive Income/(Loss)
Items to be reclassified to Profit and Loss
Changes in the fair value of Cash Flow Hedges, net of Tax
Transfer to Profit or Loss for Cash Flow Hedges, net of Tax
Other Comprehensive Income/(Loss) for the Year, net of Tax
Total Comprehensive Income/(Loss) for the Year
2022
$000
2021
$000
2,503,471
185,907
–
17
2,503,471
185,924
(978,597)
(122,665)
(80,142)
(107,829)
(3,287)
(25,025)
(9,823)
–
(11,429)
(20,382)
(2,620)
(43,030)
1,406,597
(122,031)
(419,185)
36,584
987,412
(85,447)
(113,694)
6,609
(107,085)
880,327
18
8,521
8,539
(76,908)
137
NOTES TO THE FINANCIAL STATEMENTS NEW HOPE GROUP 2022 ANNUAL REPORTTAX CONTRIBUTION REPORTDIRECTORS’ REPORTSUSTAINABILITY REPORTFINANCIAL REPORTOTHER INFORMATIONOPERATIONS REVIEWFOR THE YEAR ENDED 31 JULY 2022
31. DEED OF CROSS GUARANTEE (CONTINUED)
B. STATEMENT OF FINANCIAL POSITION
Set out below is a Statement of Financial Position as at 31 July 2022 of the Closed Group:
CURRENT ASSETS
Cash and Cash Equivalents
Receivables
Derivative Financial Instruments
Inventories
Assets Classified as Held for Sale
Current Tax Assets
Total Current Assets
Non-Current Assets
Receivables
Other Financial Assets
Property, Plant and Equipment
Intangible Assets
Exploration and Evaluation Assets
Deferred Tax Assets
Derivative Financial Instruments
Total Non-Current Assets
Total Assets
Current Liabilities
Trade and Other Payables
Borrowings
Current Tax Liabilities
Provisions
Derivative financial instruments
Total Current Liabilities
Non-Current Liabilities
Borrowings
Provisions
Derivative financial instruments
Total Non-Current Liabilities
Total Liabilities
Net Assets
Equity
Contributed Equity
Reserves
Retained Earnings
Total Equity
138
2022
$000
705,618
473,516
–
61,211
–
–
2021
$000
395,532
396,394
404
32,853
3,000
–
1,240,345
828,183
165,191
152,690
1,664,616
75,849
6,147
8,273
1,365
523,006
52,620
352,609
6,932
43,897
54,611
–
2,074,131
1,033,675
3,314,476
1,861,858
89,753
10,294
379,042
35,491
17,335
25,503
4,276
24,528
36,900
531,915
91,207
279,980
138,906
127,263
546,149
1,078,064
560,865
130,824
–
691,689
782,896
2,236,412
1,078,962
97,536
(63,996)
97,536
35,701
2,202,872
945,725
2,236,412
1,078,962
NOTES TO THE FINANCIAL STATEMENTS2022 ANNUAL REPORT NEW HOPE GROUPFOR THE YEAR ENDED 31 JULY 2022 32. REMUNERATION OF AUDITORS
During the year the following fees were paid or payable for services provided by the auditor of the Parent company, its related
practices and non-related audit firms:
A. DELOITTE AND RELATED NETWORK FIRMS
Audit or Review of Financial Reports:
Group
Subsidiaries and Joint Operations
Other assurance and agreed upon procedures under other legislation or contractual arrangements
Group
Other Services
Other Advisory Services
Total
33. OTHER ACCOUNTING POLICIES
A. FOREIGN CURRENCY TRANSLATION
(I) FUNCTIONAL AND PRESENTATION CURRENCY
2022
$000
2021
$000
641,000
264,233
905,233
538,669
127,667
666,336
10,000
10,000
105,000
105,000
442,285
442,285
51,500
51,500
1,357,518
822,836
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 Group operates (the functional currency). The Consolidated Financial Statements are presented in
Australian dollars, which is New Hope Corporation Limited’s functional and presentation currency.
(II) TRANSACTIONS AND BALANCES
Foreign currency transactions are translated into the functional currency using the exchange rates at the dates of the transactions.
Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation of monetary assets
and liabilities denominated in foreign currencies at year end exchange rates are generally recognised in Profit or Loss. They are
deferred in Equity if they relate to qualifying Cash Flow Hedges and qualifying net investment hedges or are attributable to part of
the net investment in a foreign operation.
Translation differences on non-monetary items, such as Equity Instruments held at fair value through profit or loss, are reported as
part of the fair value gain or loss on the instrument. Translation differences on non-monetary items are included in the fair value
reserve in Equity.
139
NOTES TO THE FINANCIAL STATEMENTS NEW HOPE GROUP 2022 ANNUAL REPORTTAX CONTRIBUTION REPORTDIRECTORS’ REPORTSUSTAINABILITY REPORTFINANCIAL REPORTOTHER INFORMATIONOPERATIONS REVIEWFOR THE YEAR ENDED 31 JULY 2022
33. OTHER ACCOUNTING POLICIES (CONTINUED)
A. FOREIGN CURRENCY TRANSLATION (CONTINUED)
(III) GROUP COMPANIES
The results and financial position of all foreign operations (none of which has the currency of a hyperinflationary economy) that have
a functional currency different from the presentation currency are translated into the presentation currency as follows:
• Assets and liabilities for each Statement of Financial Position presented are translated at the closing rate at the date of that
Statement of Financial Position;
•
Income and expenses for each 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
• All resulting exchange differences are recognised in Other Comprehensive Income.
On consolidation, exchange differences arising from the translation of any net investment in foreign entities, and of Borrowings and
other Financial Instruments designated as hedges of such Investments, are recognised in Other Comprehensive Income. When a
foreign operation is sold or any borrowings forming part of the net investment are repaid, the associated exchange differences are
reclassified to the Statement of Comprehensive Income, as part of the gain or loss on sale.
B. 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 Statement of Financial Position.
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.
C. NEW ACCOUNTING STANDARDS AND INTERPRETATIONS ADOPTED
The following standards, amendments to standards and interpretations have been identified as those which may impact the Group
in the period of initial application, are effective for annual periods beginning after 1 August 2021:
(I) AMENDMENTS TO IAS 1 – CLASSIFICATION OF LIABILITIES AS CURRENT OR NON-CURRENT
The amendments clarify that the classification of liabilities as current or non-current is based on rights that are in existence at the
end of the reporting period, specify that classification is unaffected by expectations about whether an entity will exercise its right
to defer settlement of a liability, explain that rights are in existence if covenants are complied with at the end of the reporting period,
and introduce a definition of ‘settlement’ to make clear that settlement refers to the transfer to the counterparty of cash, equity
instruments, other assets or services. The amendments are applied retrospectively for annual periods beginning on or after 1 January
2023, with early application permitted. The potential effects on adoption of the amendment are yet to be determined.
(II) ANNUAL IMPROVEMENTS TO IFRS STANDARDS 2018–2020
IFRS 9 Financial Instruments
The amendment clarifies that in applying the ‘10 per cent’ test to assess whether to derecognise a financial liability, an entity includes
only fees paid or received between the entity (the borrower) and the lender, including fees paid or received by either the entity or
the lender on the other’s behalf. The amendment is applied prospectively to modifications and exchanges that occur on or after the
date the entity first applies the amendment. The amendment is effective for annual periods beginning on or after 1 January 2022,
with early application permitted. The Group has commenced its consideration of the potential effects on adoption of the Annual
Improvement. The potential effects on adoption of the annual improvement are yet to be determined.
140
NOTES TO THE FINANCIAL STATEMENTS2022 ANNUAL REPORT NEW HOPE GROUPFOR THE YEAR ENDED 31 JULY 2022 DIRECTORS’ DECLARATION
In the Directors’ opinion:
a) the financial statements and notes set out on pages 73 to 140 are in accordance with the Corporations Act 2001, including:
(i)
(i)
complying with Accounting Standards, the Corporations Regulations 2001 and other mandatory professional
reporting requirements
giving a true and fair view of the consolidated entity’s financial position as at 31 July 2022 and of their performance,
for the financial year ended on that date
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.
The Basis of preparation on page 47 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.
At the date of this declaration, the Company is within the class of companies affected by ASIC Class Order 98/1418. The nature
of the deed of cross guarantee is such that each company which is party to the deed guarantees to each creditor payment in full
of any debt in accordance with the deed of cross guarantee. In the Directors’ opinion, there are reasonable grounds to believe
that the Company and the companies to which the ASIC Class Order applies, as detailed in Note 31 to the financial statements
will, as a group, be able to meet any obligations or liabilities to which they are, or may become, subject by virtue of the deed of
cross guarantee.
This declaration is made in accordance with a resolution of the Directors.
R.D. Millner
Director
Sydney, 19 September 2022
141
NEW HOPE GROUP 2022 ANNUAL REPORTTAX CONTRIBUTION REPORTDIRECTORS’ REPORTSUSTAINABILITY REPORTFINANCIAL REPORTOTHER INFORMATIONOPERATIONS REVIEW
INDEPENDENT AUDITOR’S REPORT
Deloitte Touche Tohmatsu
ABN 74 490 121 060
Level 23, Riverside Centre
123 Eagle Street
Brisbane, QLD, 4000
Australia
Phone: +61 7 3308 7000
www.deloitte.com.au
to the Members of New Hope Corporation Limited
Independent Auditor’s Report to the Members of New Hope
Corporation Limited
Deloitte Touche Tohmatsu
ABN 74 490 121 060
Level 23, Riverside Centre
123 Eagle Street
Brisbane, QLD, 4000
Australia
Deloitte Touche Tohmatsu
ABN 74 490 121 060
Level 23, Riverside Centre
Phone: +61 7 3308 7000
123 Eagle Street
www.deloitte.com.au
Brisbane, QLD, 4000
Australia
RReeppoorrtt oonn tthhee AAuuddiitt ooff tthhee FFiinnaanncciiaall RReeppoorrtt
Phone: +61 7 3308 7000
www.deloitte.com.au
Opinion
Giving a true and fair view of the Group’s financial position as at 31 July 2022 and of its financial performance
for the year then ended; and
Independent Auditor’s Report to the Members of New Hope
Corporation Limited
We have audited the financial report of New Hope Corporation Limited (the “Company”) and its subsidiaries (the “Group”)
Independent Auditor’s Report to the Members of New Hope
which comprises the consolidated statement of financial position as at 31 July 2022, the consolidated statement of
comprehensive income, the consolidated statement of changes in equity and the consolidated statement of cash flows
Corporation Limited
for the year then ended, and notes to the financial statements, including a summary of significant accounting policies and
RReeppoorrtt oonn tthhee AAuuddiitt ooff tthhee FFiinnaanncciiaall RReeppoorrtt
other explanatory information, and the directors’ declaration.
Opinion
In our opinion, the accompanying financial report of the Group is in accordance with the Corporations Act 2001, including:
RReeppoorrtt oonn tthhee AAuuddiitt ooff tthhee FFiinnaanncciiaall RReeppoorrtt
We have audited the financial report of New Hope Corporation Limited (the “Company”) and its subsidiaries (the “Group”)
(i)
which comprises the consolidated statement of financial position as at 31 July 2022, the consolidated statement of
Opinion
comprehensive income, the consolidated statement of changes in equity and the consolidated statement of cash flows
for the year then ended, and notes to the financial statements, including a summary of significant accounting policies and
We have audited the financial report of New Hope Corporation Limited (the “Company”) and its subsidiaries (the “Group”)
(ii)
other explanatory information, and the directors’ declaration.
which comprises the consolidated statement of financial position as at 31 July 2022, the consolidated statement of
comprehensive income, the consolidated statement of changes in equity and the consolidated statement of cash flows
In our opinion, the accompanying financial report of the Group is in accordance with the Corporations Act 2001, including:
for the year then ended, and notes to the financial statements, including a summary of significant accounting policies and
Basis for Opinion
other explanatory information, and the directors’ declaration.
(i)
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are
In our opinion, the accompanying financial report of the Group is in accordance with the Corporations Act 2001, including:
further described in the Auditor’s Responsibilities for the Audit of the Financial Report section of our report. We are
complying with Australian Accounting Standards and the Corporations Regulations 2001.
(ii)
independent of the Group in accordance with the auditor independence requirements of the Corporations Act 2001 and
Giving a true and fair view of the Group’s financial position as at 31 July 2022 and of its financial performance
(i)
the ethical requirements of the Accounting Professional & Ethical Standards Board’s APES 110 Code of Ethics for
for the year then ended; and
Professional Accountants (including Independence Standards) (the Code) that are relevant to our audit of the financial
Basis for Opinion
(ii)
report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.
Giving a true and fair view of the Group’s financial position as at 31 July 2022 and of its financial performance
for the year then ended; and
complying with Australian Accounting Standards and the Corporations Regulations 2001.
complying with Australian Accounting Standards and the Corporations Regulations 2001.
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are
We confirm that the independence declaration required by the Corporations Act 2001, which has been given to the
further described in the Auditor’s Responsibilities for the Audit of the Financial Report section of our report. We are
directors of the Company, would be in the same terms if given to the directors as at the time of this auditor’s report.
Basis for Opinion
independent of the Group in accordance with the auditor independence requirements of the Corporations Act 2001 and
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
the ethical requirements of the Accounting Professional & Ethical Standards Board’s APES 110 Code of Ethics for
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are
Professional Accountants (including Independence Standards) (the Code) that are relevant to our audit of the financial
further described in the Auditor’s Responsibilities for the Audit of the Financial Report section of our report. We are
report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.
independent of the Group in accordance with the auditor independence requirements of the Corporations Act 2001 and
Key Audit Matters
the ethical requirements of the Accounting Professional & Ethical Standards Board’s APES 110 Code of Ethics for
We confirm that the independence declaration required by the Corporations Act 2001, which has been given to the
Professional Accountants (including Independence Standards) (the Code) that are relevant to our audit of the financial
directors of the Company, would be in the same terms if given to the directors as at the time of this auditor’s report.
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the
report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.
financial report for the current period. These matters were addressed in the context of our audit of the financial report
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
We confirm that the independence declaration required by the Corporations Act 2001, which has been given to the
directors of the Company, would be in the same terms if given to the directors as at the time of this auditor’s report.
Key Audit Matters
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the
financial report for the current period. These matters were addressed in the context of our audit of the financial report
as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the
financial report for the current period. These matters were addressed in the context of our audit of the financial report
Liability limited by a scheme approved under Professional Standards Legislation.
as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
Member of Deloitte Asia Pacific Limited and the Deloitte organisation.
New Hope Group 2022 Annual Financial Report
100
142
Liability limited by a scheme approved under Professional Standards Legislation.
Member of Deloitte Asia Pacific Limited and the Deloitte organisation.
Liability limited by a scheme approved under Professional Standards Legislation.
Member of Deloitte Asia Pacific Limited and the Deloitte organisation.
New Hope Group 2022 Annual Financial Report
100
New Hope Group 2022 Annual Financial Report
100
2022 ANNUAL REPORT NEW HOPE GROUP INDEPENDENT AUDITOR’S REPORT
to the Members of New Hope Corporation Limited
KKeeyy AAuuddiitt MMaatttteerr
CCaarrrryyiinngg vvaalluuee ooff pprrooppeerrttyy ppllaanntt aanndd eeqquuiippmmeenntt,,
iinnttaannggiibbllee aasssseettss aanndd eexxpplloorraattiioonn aanndd eevvaalluuaattiioonn
aasssseettss..
Refer to notes 11, 12, 13 and 14 of the financial
statements.
At 31 July 2022 the Group’s consolidated statement
of financial position included property, plant and
equipment (PPE) of $1,756 million and intangible
assets of $72 million. The Group also had
exploration and evaluation assets (E&E) of $71
million.
As disclosed in note 14, the Group performed an
impairment indicator assessment across all cash-
generating units (“CGUs”) to which PPE and
intangible assets belong, including the Queensland
Coal Mining CGU which includes New Acland Stage
3 that has been subject to delays in approvals.
An impairment assessment was also performed on
the Queensland Port operations CGU to which $6m
goodwill has been allocated comparing the carrying
value of the CGU to its recoverable amount.
The assessment for indicators of impairment and
estimation of a CGU’s recoverable amount involves
judgement and includes consideration of a number
of factors including, but not limited to forecast
demand and commodity prices, mineral reserves
and resources, discount rates and the regulatory
environment.
The Group concluded that no impairment
indicators were present in relation to PPE and
intangible assets, and that no impairment was
identified in relation to the Queensland Port
Operations CGU.
With respect to E&E assets, the assessment for
impairment indicators includes, but is not limited
to, judgements in relation to future commercial
viability of exploration tenements, potential for
successful development, the risk of expiration of
exploration rights without renewal and planned
expenditure for further exploration.
As disclosed in note 14, the Group identified an
impairment loss of $5million in relation to E&E
assets.
HHooww tthhee ssccooppee ooff oouurr aauuddiitt rreessppoonnddeedd ttoo tthhee KKeeyy AAuuddiitt
MMaatttteerr
Our audit procedures included, but were not limited to:
· Obtaining an understanding of management’s process
and policies in relation to performing impairment
indicator assessments;
· Understanding the key controls management have in
place for identifying impairment indicators;
· Evaluating management’s identification of CGUs;
· Evaluating management’s impairment indicators
assessment including:
o Challenging the reasonableness of
management’s key market related assumptions
including forecast demand, commodity prices,
discount rates and long-term inflation rates
against external data with support from our
internal valuation specialists;
o Challenging the impact of the regulatory
environment on the remaining approvals
required in respect of New Acland Stage 3; and
o Agreeing resources and reserves for the CGUs to
the latest approved resources and reserve
statements.
· Assessing management’s process for determining the
recoverable amount of the CGU to which goodwill has
been allocated including challenging the cashflows and
cross checking to implied industry multiples.
· Evaluating management’s assessment of indicators of
impairment for E&E assets including:
o Confirming that the Group has a continuing right
to explore each area of interest and where such
rights may expire in the near future, that the
Group intends to renew those rights;
o Assessing management’s intention and strategy
in relation to continued exploration and
evaluation activities for each relevant area of
interest;
o Assessing whether exploration activities in each
area of interest have not led to the discovery of
commercially viable quantities of mineral
resources and the Group’s intention to continue
activities in those areas; and
o Reviewing approved budgets in relation to
exploration and evaluation activity.
· Assessing the appropriateness of the disclosures in notes
11, 12, 13 and 14 to the financial statements.
101
New Hope Group 2022 Annual Financial Report
143
NEW HOPE GROUP 2022 ANNUAL REPORT INDEPENDENT AUDITOR’S REPORT
to the Members of New Hope Corporation Limited
Other Information
The directors are responsible for the other information. The other information comprises the Directors’ Report, Shareholder
Information and 2022 Coal Resources and Reserves, which we obtained prior to the date of this auditor’s report, and also
includes the following information which will be included in the Group’s annual report (but does not include the financial report
and our auditor’s report thereon): Chairman’s Review, Chief Executive Officer’s Review and Tax Contribution Report, which is
expected to be made available to us after that date.
Our opinion on the financial report does not cover the other information and we do not express any form of assurance conclusion
thereon.
In connection with our audit of the financial report, our responsibility is to read the other information identified above and, in
doing so, consider whether the other information is materially inconsistent with the financial report or our knowledge obtained
in the audit, or otherwise appears to be materially misstated. If, based on the work we have performed on the other information
that we obtained prior to the date of this auditor’s report, we conclude that there is a material misstatement of this other
information, we are required to report that fact. We have nothing to report in this regard.
When we read the Chairman’s Review, Chief Executive Officer’s Review and Tax Contribution Report, if we conclude that there
is a material misstatement therein, we are required to communicate the matter to the directors and use our professional
judgement to determine the appropriate action.
Responsibilities of the Directors 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 gives a true and fair view and is free from material
misstatement, whether due to fraud or error.
In preparing the financial report, the directors are responsible for assessing the ability of the Group to continue as a going
concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the
directors either intend to liquidate the Group or to cease operations, or has no realistic alternative but to do so.
Auditor’s Responsibilities for the Audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material
misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance
is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Australian Auditing Standards
will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered
material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users
taken on the basis of this financial report.
As part of an audit in accordance with the Australian Auditing Standards, we exercise professional judgement and maintain
professional scepticism throughout the audit. We also:
·
Identify and assess the risks of material misstatement of the financial report, whether due to fraud or error, design and
perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to
provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for
one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the
override of internal control.
· Obtain an understanding of internal control relevant to the audit 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 Group’s
internal control.
· Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related
disclosures made by the directors.
144
New Hope Group 2022 Annual Financial Report 102
2022 ANNUAL REPORT NEW HOPE GROUP INDEPENDENT AUDITOR’S REPORT
to the Members of New Hope Corporation Limited
·
·
·
·
·
·
Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and, based on the audit
Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and, based on the audit
evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt
evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt
on the Group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required
on the Group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required
to draw attention in our auditor’s report to the related disclosures in the financial report or, if such disclosures are
to draw attention in our auditor’s report to the related disclosures in the financial report or, if such disclosures are
inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our
inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our
auditor’s report. However, future events or conditions may cause the Group to cease to continue as a going concern.
auditor’s report. However, future events or conditions may cause the Group to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the financial report, including the disclosures, and whether
Evaluate the overall presentation, structure and content of the financial report, including the disclosures, and whether
the financial report represents the underlying transactions and events in a manner that achieves fair presentation.
the financial report represents the underlying transactions and events in a manner that achieves fair presentation.
Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities
Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities
within the Group to express an opinion on the financial report. We are responsible for the direction, supervision and
within the Group to express an opinion on the financial report. We are responsible for the direction, supervision and
performance of the Group’s audit. We remain solely responsible for our audit opinion.
performance of the Group’s audit. We remain solely responsible for our audit opinion.
We communicate with the directors regarding, among other matters, the planned scope and timing of the audit and significant
We communicate with the directors regarding, among other matters, the planned scope and timing of the audit and significant
audit findings, including any significant deficiencies in internal control that we identify during our audit.
audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide the directors with a statement that we have complied with relevant ethical requirements regarding
We also provide the directors with a statement that we have complied with relevant ethical requirements regarding
independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on
independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on
our independence, and where applicable, actions taken to eliminate threats or safeguards applied.
our independence, and where applicable, actions taken to eliminate threats or safeguards applied.
From the matters communicated with the directors, we determine those matters that were of most significance in the audit of
From the matters communicated with the directors, we determine those matters that were of most significance in the audit of
the financial report of the current period and are therefore the key audit matters. We describe these matters in our auditor’s
the financial report of the current period and are therefore the key audit matters. We describe these matters in our auditor’s
report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we
report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we
determine that a matter should not be communicated in our report because the adverse consequences of doing so would
determine that a matter should not be communicated in our report because the adverse consequences of doing so would
reasonably be expected to outweigh the public interest benefits of such communication.
reasonably be expected to outweigh the public interest benefits of such communication.
RReeppoorrtt oonn tthhee RReemmuunneerraattiioonn RReeppoorrtt
RReeppoorrtt oonn tthhee RReemmuunneerraattiioonn RReeppoorrtt
Opinion on the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included in pages 24 to 39 of the Directors’ Report for the year ended 31 July 2022.
We have audited the Remuneration Report included in pages 33 to 50 of the Directors’ Report for the year ended 31 July 2022.
In our opinion, the Remuneration Report of New Hope Corporation Limited, for the year ended 31 July 2022, complies with
In our opinion, the Remuneration Report of New Hope Corporation Limited, for the year ended 31 July 2022, complies with
section 300A of the Corporations Act 2001.
section 300A of the Corporations Act 2001.
Responsibilities
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the Remuneration Report in accordance
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
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.
on our audit conducted in accordance with Australian Auditing Standards.
DELOITTE TOUCHE TOHMATSU
DELOITTE TOUCHE TOHMATSU
SStteepphheenn TTaarrlliinngg
SStteepphheenn TTaarrlliinngg
Partner
Partner
Chartered Accountants
Chartered Accountants
Brisbane, 19 September 2022
Brisbane, 19 September 2022
103
103
New Hope Group 2022 Annual Financial Report
New Hope Group 2022 Annual Financial Report
145
NEW HOPE GROUP 2022 ANNUAL REPORT SHAREHOLDER INFORMATION
ORDINARY SHAREHOLDINGS
As at 15 September 2022 there were 12,850 holders of ordinary shares in the Company.
Voting entitlement is one vote per fully paid ordinary share.
RANGE OF UNITS – ORDINARY SHARES
1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
100,001 and over
NUMBER OF
SHAREHOLDERS
FULLY PAID1
ORDINARY
SHARES
NUMBER OF
PERFORMANCE
RIGHTS
HOLDERS
PERFORMANCE
RIGHTS
3,930
2,005,322
5,095
14,504,651
2,519
19,181,719
2,753
75,144,289
209 721,521,101
14,506 832,357,082
–
–
–
–
4
4
–
–
–
–
940,506
940,506
Holding less than a marketable parcel1
418
11,284
1
Information as at 31st August 2022.
146
2022 ANNUAL REPORT NEW HOPE GROUP
SHAREHOLDER INFORMATION
ORDINARY SHAREHOLDINGS (CONTINUED)
The names of substantial shareholders as disclosed in substantial shareholder notices received by the Company:
SHAREHOLDER
Washington H Soul Pattinson and Company Limited
NUMBER
OF SHARES
%
331,696,418
39.85%
20 largest shareholders as disclosed on the share register as at 15 September 2022
Washington H Soul Pattinson and Company Limited
J P Morgan Nominees Australia Pty Limited
Citicorp Nominees Pty Limited
HSBC Custody Nominees (Australia) Limited
National Nominees Limited
BNP Paribas Noms Pty Ltd
BKI Investment Company Limited
Farjoy Pty Ltd
BNP Paribas Nominees Pty Ltd
Bond Street Custodians Limited
BNP Paribas Nominees Pty Ltd
Neweconomy com au Nominees PTY Limited <900 ACCOUNT>
HSBC Custody Nominees (Australia) Limited – GSCO ECA
HSBC Custody Nominees (Australia) Limited – A/C2
Bond Street Custodians Limited
Quotidian No2 Pty Ltd
National Nominees Limited
JS Millner Holdings Pty Limited
Citicorp Nominees Pty Limited
National Nominees Limited
UNQUOTED EQUITY SECURITIES
313,096,418
93,737,917
59,304,032
57,996,530
37,593,665
27,722,130
12,950,952
8,700,000
7,164,730
6,533,450
5,965,372
5,354,229
3,871,834
3,847,289
3,660,933
2,939,800
2,800,220
2,629,197
2,609,279
2,105,205
37.59%
11.25%
7.12%
6.96%
4.51%
3.33%
1.55%
1.04%
0.86%
0.78%
0.72%
0.64%
0.46%
0.46%
0.44%
0.35%
0.34%
0.32%
0.31%
0.25%
660,583,182
79.31%
NUMBER
ON ISSUE
NUMBER
OF HOLDERS
Rights issued under the New Hope Corporation Limited Employee Performance Rights Share Plan
to take up ordinary shares
940,506
Convertible Notes1
–
4
–
1 No Convertible Notes were converted to Ordinary Shares during the 2022 financial year. Convertible Notes do not carry a right to vote.
147
TAX CONTRIBUTION REPORTDIRECTORS’ REPORTSUSTAINABILITY REPORTFINANCIAL REPORTOTHER INFORMATIONOPERATIONS REVIEW NEW HOPE GROUP 2022 ANNUAL REPORT 2022 RESOURCES AND RESERVES
New Hope Group are pleased to announce the 2022 update of Coal Resources and Reserves, in accordance with the JORC
Code 2012.
Key updates from the previous reporting period are:
• The Bengalla Resource and Reserves estimate utilises updated geological model data, along with the current extents
of mining.
• The New Acland Resource and Reserves volumes (tonnes) are relatively unchanged from 2021, as there has been limited
mining undertaken in the area over the period.
• A new geological model for the Elimatta project has been utilised.
• Burton and Lenton deposits were sold in 2022 and previously reported resources have been removed.
• The tenements associated with the Yamala project have been relinquished and previously reported resources removed,
after a detailed review and decision by the joint venture parties.
Coal Resources and Reserves are stated as at 31st May 2022.
COAL RESOURCES
DEPOSIT
STATUS
COAL RESOURCES AS AT 31ST MAY 2022 (MILLION TONNES)
(COAL RESOURCES ARE INCLUSIVE OF THE RESERVES REPORTED BELOW)
New Acland
Bengalla1
Elimatta
Collingwood
Taroom
Woori
Burton2
Lenton2
Yamala3
Total
Notes on Resources:
Mine
Mine
Exploration
Exploration
Exploration
Exploration
Mine
Exploration
Exploration
INFERRED
INDICATED
MEASURED
2022
TOTAL
2021
TOTAL
16
24
43
94
122
42
–
–
–
193
176
86
139
338
67
–
–
–
285
161
110
43
–
–
–
–
–
494
361
239
276
460
109
–
–
–
494
381
286
276
460
109
32
380
237
341
999
599
1,939
2,655
1
Figures shown are 100 per cent of total Resources. New Hope Group share is 80 per cent. The Resource number includes
76 Mt of Underground Resource.
2 Burton and Lenton sold in 2022. New Hope Group share was 90 per cent.
3 Yamala exploration project fully surrendered in March 2022 as agreed by all Joint Venture parties. New Hope Group Share was 70 per cent.
148
2022 ANNUAL REPORT NEW HOPE GROUP 2022 RESOURCES AND RESERVES
JORC DECLARATION – COAL RESOURCES
The estimates of Coal Resources reported herein, have been prepared in accordance with the Australasian Code for Reporting of
Exploration Results, Mineral Resources and Ore Reserves – The JORC Code (2012). These resources are inclusive of the Reserves
Statement and are as at 31/05/2022 unless otherwise stated. The updated resources for Bengalla and Elimatta are based on
information compiled by New Hope Group geologists. New Acland, Collingwood, Taroom and Woori have been re-quoted from the
2021 New Hope Group annual report.
The resource estimates are based on information reviewed by Ms Carrie Schuler, who is the Competent Person for coal resources and
a full-time employee of the company. Ms Schuler has sufficient experience relevant to the style of mineralisation and type of deposit
under consideration and to the activity that is being undertaken, to qualify as Competent Person as defined in the 2012 Edition of the
‘Australian Code for Reporting Exploration Results, Mineral Resources and Ore Reserves’. Ms Schuler consents to the inclusion in the
report of the matters based on her information in the form and context in which it appears.
COAL RESERVES
STATUS
Mine
Exploration
Exploration
Mine
Exploration
DEPOSIT
New Acland1
Lenton2
Elimatta
Bengalla3
Taroom
Total
Notes on Reserves:
COAL RESERVES AS AT 31ST MAY 2022 (MILLION TONNES)
RECOVERABLE RESERVES
MARKETABLE RESERVES4
PROBABLE
PROVED
2022
TOTAL
2021
TOTAL
PROBABLE
PROVED
121
–
26
45
207
399
245
–
86
138
469
366
–
112
183
207
868
366
35
119
196
207
923
66
–
16
34
130
246
134
–
56
111
301
1 260Mt of Recoverable Reserves require additional approvals beyond Acland Stage 3.
2 Lenton was sold in 2022. New Hope Group share was 90%.
3 Figures shown are 100% of total Reserves. New Hope Group share is 80%.
4 Marketable Reserves are based on modelled wash plant yields, and for operating mines have been correlated to reconciled data.
5 Changes for Elimatta relative to 2021 relate to a geological model revision including re-correlation of the seams.
JORC DECLARATION – COAL RESERVES
The information in this Coal Reserves Statement is based on information compiled by Mr Brett Domrow, a Competent Person who is
a Member of The Australasian Institute of Mining and Metallurgy. Mr Brett Domrow is a full-time employee of the company and has
sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being
undertaken to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration
Results, Mineral Resources and Ore Reserves’. Mr Brett Domrow consents to the inclusion in the report of the matters based on his
information in the form and context in which it appears.
149
TAX CONTRIBUTION REPORTDIRECTORS’ REPORTSUSTAINABILITY REPORTFINANCIAL REPORTOTHER INFORMATIONOPERATIONS REVIEW NEW HOPE GROUP 2022 ANNUAL REPORT 2022 RESOURCES AND RESERVES
OIL RESERVES AND RESOURCES
Mr Barry Smith holding the position of Chief Technical Officer within Bridgeport, has a Bachelor of Science (Hons) and is a member
of the American Association or Petroleum Geologists (Emeritus), the Petroleum Exploration Society of Australia (Fellow) and the
Society of Exploration Geophysicists. He has 40 years industry experience and is qualified in accordance with ASX listing rule
5.41 and has consented to the inclusion of the reserves and resources information in this report in the form and context in which
it appears.
Mr Chris Way holding the joint position of Chief Executive Officer and Chief Operating Officer of Bridgeport Energy, has a Bachelor
of Science (Hons) and a Bachelor of Engineering (Mech), is a CPEng and a 30-year member of the Society of Petroleum Engineers,
is qualified in accordance with ASX listing rule 5.41 and has consented to the inclusion of the reserves and resources information in
this report in the form and context in which it appears.
NET RESERVES
(AS AT 31 JULY 2022)
Oil Equivalent (Mboe)
NET CONTINGENT RESOURCES
(AS AT 31 JULY 2022)
Oil Equivalent (Mboe)
Notes on Reserves:
2022
2021
1P
2,379
1C
6,139
2P
6,216
3P
11,209
2C
3C
10,951
21,601
1P
2,357
1C
5,323
2P
5,882
2C
9,311
3P
11,525
3C
18,408
1
Mboe = thousand barrels of oil equivalent. A conversion from gas volume to oil equivalent (at 171,940 boe per PJ) was based on a
standard industry metric.
2 Petroleum reserves have been prepared using principally deterministic methods, supported by field reservoir modelling where available.
3
Contingent resources (2C) have been estimated using a combination of deterministic assessments and probabilistic
volumetric assessments.
4 BEL aggregates reserves (1P, 2P and 3P) and contingent resources (2C) using arithmetic summation.
5
The economic assumptions used to evaluate each project are commercially sensitive. Reserves have been assessed as economic using
discounted cash flow methods in compliance with PRMS guideline. Costs have been estimated using actual costs and reasonable
estimates of forecast future costs. Oil prices have been forecast using reasonable estimates of future prices.
6 Production is for the 14 month period 1 June 2021 to 31 July 2022, which aligns with the Company financial year end.
7
The reference points are at each field where crude oil is sold into a road tanker with IOR Petroleum, except for Cuisinier and Naccowlah
where the reference point is at the Moomba plant inlet and Vali, which is the Moomba sales outlet.
8 Reserves reported include fuel consumed in operations at each field; totalling 220 1P, 570 2P and 977 3P Mboe.
9
In accordance with the SPE-PRMS guidelines, only committed infill wells or similar projects are captured as 2P reserves.
10 As per SPE-PRMS guidelines 2C resources include; uncommitted infill drilling opportunities, discoveries that are contingent on
development and enhanced recovery projects such as waterflood or CO2 miscible sweep.
11 Due to rounding, volumes may not reconcile to totals.
150
2022 ANNUAL REPORT NEW HOPE GROUP 151
TAX CONTRIBUTION REPORTDIRECTORS’ REPORTSUSTAINABILITY REPORTFINANCIAL REPORTOTHER INFORMATIONOPERATIONS REVIEW NEW HOPE GROUP 2022 ANNUAL REPORT CORPORATE DIRECTORY
DIRECTORS
Robert D. Millner
Chairman
Todd J. Barlow
Non Executive Director
Jacqueline E. McGill AO
Non Executive Director
Thomas C. Millner
Non Executive Director
Ian M. Williams
Non Executive Director
Steven R. Boulton
Non Executive Director
COMPANY OFFICERS
Robert J. Bishop
Chief Executive Officer
Rebecca S. Rinaldi
Chief Financial Officer
Dominic H. O’Brien
Executive General Manager & Company Secretary
AUDITORS
Deloitte Touche Tohmatsu
Level 23, Riverside Centre
123 Eagle Street
Brisbane QLD 4000
PRINCIPAL ADMINISTRATION
& REGISTERED OFFICE
Level 16, 175 Eagle Street
Brisbane QLD 4000
Telephone : (07) 3418 0500
Facsimile : (07) 3418 0355
WEBSITE ADDRESS
www.newhopegroup.com.au
SHARE REGISTER
Computershare Investor Services Pty Limited
Level 1, 200 Mary Street
Brisbane QLD 4000
Telephone : 1300 552 270
Website : www.computershare.com
ASX CODE: NHC
152
2022 ANNUAL REPORT NEW HOPE GROUP TAX CONTRIBUTION REPORTDIRECTORS’ REPORTSUSTAINABILITY REPORTFINANCIAL REPORTOTHER INFORMATIONOPERATIONS REVIEW ecoStar is an environmentally responsible paper made Carbon Neutral.
The greenhouse gas emissions of the manufacturing process including
transportation of the finished product to BJ Ball Papers Warehouses has
been measured by the Edinburgh Centre for Carbon Neutral Company
and the fibre source has been independently certified according to the
Forest Stewardship Council® Standards (FSC®). ecoStar is manufactured
from 100% Post Consumer Recycled paper in a Process Chlorine Free
environment under the ISO 14001 environmental management system.