New Hope Corporation Limited ABN 38 010 653 844 ASX Appendix 4E A. Statutory results Current period From 1 August 2023 to 31 July 2024 Previous period From 1 August 2022 to 31 July 2023 B. Results for announcement to the market Statutory results 2024 $000 2023 $000 Movement Revenue from ordinary activities 1,802,206 2,754,498 Down 34.6% Profit from ordinary activities after tax attributable to members 475,855 1,087,402 Down 56.2% Net profit for the period attributable to members 475,855 1,087,402 Down 56.2% C. Brief explanation of figures reported This report is based on the audited Financial Statements of the Company. The Independent Auditor’s Report, which was unmodified, is included within the Company’s Annual Financial Report for the period ending 31 July 2024 which accompanies this Appendix 4E. For a brief explanation of the figures above, please refer to the Company’s Presentation of Full-Year 2024 Results, and the Directors’ Report which forms part of the Annual Financial Report. D. Dividends – ordinary shares Dividends paid during the reporting period Amount Cents per share Franked amount Cents per share 2023 final dividend1 21.0 21.0 2023 special dividend1 9.0 9.0 2024 interim dividend2 17.0 17.0 1. Declared 19 September 2023, paid 7 November 2023. 2. Declared 19 March 2024, paid 1 May 2024. 2024 final dividend declared Amount Cents per share Franked amount Cents per share 2024 final dividend 22.0 22.0 The Directors have declared a final dividend of 22.0 cents per share. The dividend is fully franked based on tax paid at 30 per cent. The dividends are payable on Thursday, 24 October 2024 to shareholders registered as at Friday, 4 October 2024. E. Net tangible assets per security 31 July 2024 Cents 31 July 2023 Cents Net tangible assets per security 293.2 295.8 F. Foreign entities Foreign entities have been accounted for in accordance with Australian Accounting Standards. G. Control gained or lost over entities during the period (a) Names of entities where control was gained in the period There were no entities over which control was gained during the period. (b) Names of entities where control was lost in the period There were no entities over which control was lost during the period. Annual Report 2024 Coal. Energy. Agriculture. Responsibly. Reliably. 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. New Hope Group is an Australian coal producer with associated port, oil and gas, and agricultural operations. Contents Highlights 02 Our operations and markets 04 Our value chain 06 Chairman and CEO’s review 08 Operating and financial review 12 Sustainability Report 20 Tax Transparency Report 50 Directors’ Report 52 Auditor’s independence declaration 81 Financial Report 82 Independent Auditor’s Report 149 Shareholder information 153 Consolidated entity disclosure statement 154 Resources and reserves 155 Corporate directory 157 Coal. Energy. Agriculture. Responsibly. Reliably. Purpose and Vision Responsibility We are empowered and accountable for our actions. Respect We listen and treat others as we expect to be treated. Integrity We are ethical, honest and trusted to do the right thing. Collaboration We work together and focus on the best outcome. Resilience We are adaptable and see opportunity in change. Wellbeing We all seek to prevent harm, promote safety and enhance health. Values Strategy Our strategy is to safely, responsibly and efficiently operate our low-cost, long-life assets, with a focus on disciplined capital management, providing valuable returns to our shareholders. Annual Report 2024 New Hope Group 01 Annual Report 2024 New Hope Group 01 Highlights Operational highlights Saleable coal production 26% increase 9.1Mt Safety – TRIFR1 151% increase 5.32 ROM coal production 32% increase 12.3Mt Coal sales 14% increase 8.7Mt Financial highlights Fully franked final dividend Per share 22¢ Cash flow from operations 63% decrease $562m Underlying EBITDA2 (Before Non-regular Items) 51% decrease $860m NPAT 56% decrease $476m 1. Total Recordable Injury Frequency Rate (TRIFR) – 12-month moving average. 2. Underlying earnings before interest, tax and depreciation and amortisation (EBITDA) and profit before tax and non-regular items are non-IFRS measures. This non-IFRS information has not been audited. New Hope Group 02 Annual Report 2024 Organic growth driving significant production increases Investment Highlights Annual Report 2024 New Hope Group 03 Targeted organic saleable coal production increase (Mt) Bengalla Mine3 New Acland Mine Maxwell Mine4 3. Bengalla Mine – attributing 80 per cent share of saleable coal production. 4. Maxwell Mine – attributing 19.97 per cent share of Maxwell Mine saleable coal production. 18 FY23 FY24 FY25 FY26 FY27 FY28 LT 6 4 2 8 10 12 14 16 0 +14Mt Strong industry outlook Low-cost, high-CV thermal coal producer Significant organic production growth pipeline Key focus on providing shareholder returns Responsible operator of assets Strong balance sheet and free cash flow generation Our operations and markets Bengalla Maxwell Brisbane and QBH Newcastle Sydney New Acland Cooper Basin Otway Basin Surat Basin Bee Creek North Surat QLD NSW SA NT VIC ACT TAS Key locations Offices New Hope Group head office (Brisbane) New Hope Japan office (Tokyo) Bridgeport head office (Sydney) Bengalla (80% joint venture, open-cut) New Acland (100%, open-cut) Maxwell (19.97% interest, underground) Operating coal mines Bengalla Agricultural Company Acland Pastoral Company Agricultural operations Bee Creek North Surat1 Tenements near New Acland and Bengalla, including EL9431 and AL19 Coal exploration Queensland Bulk Handling Port facility Bridgeport Energy2 Surat, Cooper and Otway Basins Oil and gas production and exploration 1. Assets associated with the North Surat Coal Project are impaired as at 31 July 2024. 2. As at 31 July 2024, Bridgeport was held for sale. New Hope Group 04 Annual Report 2024 International and domestic coal customer locations Chile Brisbane Newcastle NSW & QLD China Taiwan Vietnam Other Japan Export facility Domestic customer destination International customer destination 15% 23% 2% 46% Korea 1% 9% 2% 2% Note: Percentages represent proportion of all coal revenue in the 2024 financial year. ‘Other’ includes third-party customer contracts with undisclosed geographical information. Bengalla Mine Saleable coal production 8.046Mt Average realised sales price per sales tonne $201.2 Margin3 per sales tonne $107.62 New Acland Mine Stage 3 Ramp-up Saleable coal production 1.027Mt Local employee workforce 195 Average realised sales price $138.78 per sales tonne Agricultural operations Acland Pastoral Company cropping yield increase 30% Strong safety performance Zero Queensland port operations Export throughput 3.327Mt Long term port lease extension to 2042 Long-term growth opportunities AL19 acquisition – increase in coal resources 513Mt EL9431 Exploration License Exploration drilling commenced lost time injuries 3. Including net commodity and FX gains. Segment highlights Annual Report 2024 New Hope Group 05 Our value chain We have a capable, energised and productive team, and a streamlined structure. We focus on providing a workplace where everyone is treated fairly and with respect. People and organisation We use our financial resources and manage financial and business risk with discipline, seek to reduce cost, and focus on delivering sustainable financial returns. Financial resources Procurement and business support functions We engage with partners aligned with our business objectives and values, and provide required support across the business to enable efficient, effective and compliant operations. Systems, processes and technology We utilise appropriate systems and processes to support effective and efficient business activities, continued growth and good corporate governance. Our inputs Our approach We identify and develop low-cost, long-life assets, with a portfolio focused on thermal coal for electricity generation. We operate responsibly and progressively restore mined land to a safe and productive post-mining land use. Ex plo ra tio n, de ve lo pm en t a nd a cq uis iti on S a f e t y a n d w el l b ei n g Re ha bil ita tio n We prioritise providing a safe and healthy work environment and seek to prevent harm, promote safety and enhance wellbeing. New Hope Group 06 Annual Report 2024 Value created in FY24 We aim to deliver operational targets safely, on time and within budget, while meeting customer needs. We have longstanding relationships with clients and customers. We work with rail and port partners to reliably supply coal to customers in Australia and abroad. Sa fe, p ro du cti ve o pe ra tio ns R e s p o n si b le o p e r a ti o n Sa le s, ma rk eti ng a nd lo gis tic s We seek to operate responsibly and ensure the ongoing acceptance of our business and activities by the government, community, investors and other stakeholders. Governments $618m paid to local, state and federal governments Communities Suppliers local to our mines accounted for 24% of procurement spend 88% of mine employees live local to the mine operations $0.95m in community sponsorships and donations $222.5m spent with 429 suppliers local to active mining operations Customers and markets 8.7Mt of coal sold to export and domestic markets Reliable supplier of high energy coal Investors 12.6% Gross Dividend Yield2 $397.3m paid in dividends Strong Underlying EBITDA1 of $859.9 million People 1,084 employees $221.3m paid in wages Rehiring of staff at NAC 169 new jobs created 1. Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) is a non-IFRS measure. This non-IFRS information has not been audited. 2. Net shareholder returns based on gross dividends reinvested per share. Annual Report 2024 New Hope Group 07 Chairman and CEO’s review We provide domestic and international customers with a reliable source of energy, whilst safely and efficiently operating our low-unit cost, high-quality assets to provide strong and consistent returns to our shareholders. Dear shareholders, We are pleased to present New Hope’s Annual Report for the 2024 financial year. A strong operational performance at Bengalla Mine and the restart of operations at New Acland Mine led to increased coal production providing greater energy security to our customers and the regions they service. Our highly skilled and dedicated workforce, operating our low-unit cost assets, enabled New Hope to reward our shareholders with consistent returns throughout the 2024 financial year. During the year, the thermal coal market stabilised after experiencing record and unprecedented pricing levels and volatility due to the global energy crisis in the 2022 and 2023 financial years. The thermal coal price remains at robust levels, above long-term historical averages, which has allowed our quality assets to generate outsized returns and contribute to the third highest earnings result in the Group’s history. We acknowledge that the world is pursuing a transition to a decarbonised economy over the coming decades and that the overall role of coal in the world’s energy mix will decline longer term. We believe, however, that coal – and especially that of high energy content, which our assets possess – will continue to play a vital role in providing reliable and secure energy supply as the transition occurs. This outlook gives us confidence that we can continue to responsibly operate our assets for their approved lives. Safety performance The safety of our people is paramount and takes precedence over all other aspects of our business. Unfortunately, during the year we have seen our primary safety measure, the All-Injury Frequency Rate, increase from 27.10 to 32.60. Whilst an increase to this safety measure is disappointing, it’s important to note that the restart of operations at New Acland Mine means we have new people operating new equipment, resulting in additional operating hours and naturally a higher likelihood for an incident to occur. Additionally, there were no critical incidents or near misses during the year; rather, the majority of cases consisted of minor first aid incidents. Similarly, our secondary safety measure, Total Recordable Injury Frequency Rate, increased from 2.12 to 5.32 in the 2024 financial year, which regrettably now sits above the five-year industry average for New South Wales open-cut coal mines. Whilst these measures have already begun to decrease subsequent to the reporting period, our full focus is on improving performance against these metrics, resulting in several initiatives already being implemented company wide. We will continue to take meaningful steps to address this trend in the 2025 financial year. Operational performance A strong operational performance at our flagship asset, Bengalla Mine, resulted in improvements to key metrics compared to the previous period, as the asset begins to realise productivity benefits from the 13.4Mpta Growth Project. The targeted Run-of-mine (ROM) production run rate and washery input metric, both related to the Growth Project, were achieved during the year and ahead of schedule, allowing increased coal production and washery capacity. Logistical disruptions due to significant increases in rail cancellations caused by protestor activity, track issues, labour availability and adverse weather were experienced by many rail customers along the Hunter Valley coal chain, which resulted in the delay of product to the Port of Newcastle and ultimately coal sales in the fourth quarter of the 2024 financial year. However, these downstream constraints resulted in Robert D. Millner AO Chairman Robert J. Bishop Chief Executive Officer Cumulative TSR performance (%)1 ASX All Ordinaries Accumulation Index ASX NHC 1. Since IPO to 31 July 2024 and includes reinvestment of dividends. 2. ASX All Ordinaries Accumulation Index. 7,000 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 1,000 2,000 3,000 4,000 5,000 6,000 0 Total return on investment since IPO ~10x greater than the ASX All Ordinaries2 +4,972% +512% New Hope Group 08 Annual Report 2024 Underlying EBITDA1 (Before Non-regular Items) 51% decrease $860m Full year dividend Per share 39¢ elevated inventory levels and higher overburden removal in the latter months of the year, which will provide a strong production runway to the start of the 2025 financial year. Following the restart of operations at New Acland, first coal was mined, railed and sold during the year, marking a significant milestone in the development of Stage 3 operations after its protracted approvals process. Key development activities were completed, including refurbishment of the secondary Coal Handling and Preparation Plant (CHPP) and construction of the Lagoon Creek Crossing, allowing access to the Willeroo Pit. A successful first full year of operations saw New Acland Mine achieve 2.4Mt of ROM coal production and over 1.0Mt of saleable coal production. The site now has almost 200 employees, with further intakes planned for the 2025 financial year, as the asset ramps up to a 5.0Mtpa operation over the next three years. During the year, we continued to focus on the longer-term growth of our business by increasing our equity interest in Malabar Resources Limited (Malabar) from 15.0 per cent to 19.97 per cent, which provides exposure to high-quality metallurgical coal and aligns with our strategy of investing in low-cost coal assets with long-life approvals. In addition, we acquired the West Muswellbrook tenement (AL19) and began drilling at EL9431, both of which are located to the western side of Bengalla Mine. The acquisition of AL19 and drilling program at EL9431 will provide us with longer-term growth optionality as the open-cut pit at Bengalla Mine progresses to the west. 1. Underlying earnings before interest, tax and depreciation and amortisation (EBITDA) is a non-IFRS measures. This non-IFRS information has not been audited. Annual Report 2024 New Hope Group 09 Chairman and CEO’s review continued Group saleable coal production for the year was 9.1Mt, an increase of 26.4 per cent compared to the previous year due to the restart of operations at New Acland Mine and realisation of productivity benefits from the Growth Project at Bengalla Mine. Financial performance A robust thermal coal price environment and strong operational performance contributed to Underlying earnings before interest, taxes, depreciation and amortisation of $859.9 million, the third highest in the Company’s history. The earnings result was a 50.8 per cent reduction on the previous period, which was a record year given the unprecedented pricing levels experienced as a result of the global energy crisis. Net profit after tax totalled $475.9 million, a decrease of 56.2 per cent compared to the previous period. During the year, we successfully raised $300 million senior unsecured convertible notes (Notes) and concurrently purchased certain cash-settled call options to manage any potential future dilution risk. The Notes will provide increased financial flexibility to support our strategy and ultimately maximise shareholder returns. Throughout the year, fully franked dividends were the predominant method of returning value to shareholders, as the Company looks to utilise its significant franking credit account. A total of $397.3 million was paid to shareholders in the form of fully franked dividends, representing 47.0 cents per share paid during the period. The Board declared a fully franked final dividend of 22.0 cents per share for the 2024 financial year, a 29.4 per cent increase on the interim dividend, reflecting the improved operational and financial performance in the second half of the year. With the combination of targeted organic production increases, disciplined cost control and robust thermal coal pricing environments, we believe our shareholders will continue to benefit from strong returns into the future. Sustainability We aim to continue creating value for our stakeholders by safely, responsibly and efficiently operating our coal assets. Locally, this means we strive to responsibly manage the impacts on our people, communities and the environment as we carry out our mining activities – and by meeting our domestic coal supply obligations. In a global context, we supply our customers with secure and reliable energy. The increased production activity this year has enabled New Hope to increase its positive impact – through employment, procurement and community investment. We have also bolstered our resourcing, systems and processes to manage and mitigate the environmental and other impacts of increased operational activity. We continue to enhance disclosures around our economic, environmental and social impacts and performance in response to stakeholder interest and invite you to find out more in the Sustainability Report within this Annual Report. We also recognise the mandatory climate-related financial disclosure regime set to apply to New Hope Group from the 2026 financial year and continue to work towards meeting those requirements. Conclusion Looking forward, we remain focused on the organic growth of our business via the ramp-up of New Acland Mine, the Growth Project at Bengalla Mine and the development of Malabar’s Maxwell Underground Mine, all of which are low- unit cost assets. This existing growth pipeline will provide our business with significant targeted production increases, which will ultimately create additional value to return to our shareholders. Our achievements this year could not have been possible without the dedication and support of our employees, our Management team and our Board. We thank them for their contribution and look forward to a safe and successful 2025 financial year. We would also like to thank you, our shareholders, for your continued support of New Hope. Robert Millner AO Chairman Robert Bishop Chief Executive Officer New Hope Group 10 Annual Report 2024 Annual Report 2024 New Hope Group 11 Operating and financial review As at 31 July 2024 The Company recorded Net profit before tax and before Non-regular items of $703.1 million for the financial year ended 31 July 2024 (2023: $1,629.3 million). The decrease was primarily driven by a lower average realised price of $183.25/t, compared to $346.73/t in the previous period. Reduced sales pricing reflects coal prices retreating from unprecedented highs following the global energy crisis during 2022 and 2023. While demand for high energy products softened during the period, with the gC NEWC 6000 closing at US$135.09/t as at 31 July 2024, pricing remained above historical levels. High demand from China for lower energy coal provided a floor for the gC NEWC 6000 and strong support for API-5 (5500 NAR) pricing. Weaker pricing in the period led to lower gross revenue from coal sales of $1,695.2 million (2023: $2,648.8 million). Coal sales increased to 8.7Mt for the 2024 financial year, 7.6Mt in the previous period, driven by 0.8Mt produced from New Acland Mine and strong operational performance at Bengalla Mine. Net gains from foreign exchange on sales, commodity and foreign currency hedges of $103.4 million were realised during the period, an increase of $117.4 million, or 839.8 per cent from the previous period. Underlying Free on Rail (FOR) cash costs of $69.8/t (2023: $56.75) increased, in part due to the restart of operations at New Acland Mine. Bengalla Mine, alongside other rail customers across the Hunter Valley region, was impacted by rail cancellations in the last quarter of the 2024 financial year, resulting in delayed coal sales, which increased FOR cash costs. FOR cash costs also increased due to labour, fuel, parts and consumables to support newly commissioned mining equipment which were integral to achieving the 13.4Mtpa Run-of-mine (ROM) production run rate. Underlying Free on Board (FOB) cash costs excluding royalties were $90.04/t (2023: $70.31/t). Operating cash flows The Company generated an operating cash surplus of $562.0 million, a decrease of 63.1 per cent on the previous period (2023: $1,524.8 million), primarily due to lower realised pricing. Income taxes paid were $419.1 million for the 2024 financial year, decreasing from $539.4 million in the previous period. Income taxes paid included the 2023 financial year final tax payment of $190.5 million. The variance between Underlying EBITDA1 and cash flow from operations is outlined below. Investing cash flows Investing cash outflows were $508.5 million, representing an increase of 417.4 per cent from the previous period (2023: $98.3 million). Payments for property, plant and equipment increased by 50.1 per cent from the previous period to $262.0 million, supporting Bengalla Mine 13.4Mtpa Growth Project and ramp-up of New Acland Mine Stage 3. Investing cash outflows included $80.6 million related to the acquisition of an additional 4.97 per cent equity stake in Malabar Resources Limited (Malabar), bringing the Company’s total equity interest to 19.97 per cent at the end of the period. Notes 2024 $000 2023 $000 Underlying EBITDA1 859,932 1,746,580 Net interest received 11,504 18,540 Distributions from managed funds 7,275 – Net income taxes paid (419,120) (539,431) Settlement of non-regular items1,2 – (38,385) Net foreign exchange 79 2,675 Non-cash employee benefit expense – share-based payments 5 5,571 3,216 Settlement of provisional pricing – 363,102 Net working capital 96,723 (31,508) Cash flow from operations 561,964 1,524,789 1. Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) is a non-IFRS measure. This non-IFRS information has not been audited. 2. Settlement of non-regular items are cash items that impact cash flow from operations. 3. Refer to the Directors’ Report in the Annual Report 2024 for a reconciliation from EBITDA to Statutory profit after tax. Strong operational performance contributing to Underlying EBITDA 1 of $859.9 million, the third highest in the Company’s history. Statutory revenue 35% decrease $1,802m Fully franked final dividend Per share, 29.4% increase from the FY24 interim dividend 22¢ New Hope Group 12 Annual Report 2024 Cash outflows of $160.1 million for other financial assets (2023: $20.0 million) represent fixed income investments which are predominantly short-term fixed interest funds that yield higher returns than cash and term deposits. These investments are actively managed and can be readily converted into cash to support the Company’s capital management and strategic growth requirements. Financing cash flows and capital management Cash outflows from financing activities were $145.4 million, a decrease of 89.7 per cent from the previous period (2023: $1,408.9 million), largely due to lower dividends paid, completion of the convertible debt buy-back in the previous period, and no further shares bought back on the market. During the period the Company successfully raised $300.0 million senior unsecured convertible notes due 12 July 2029 (Notes), with a fixed coupon of 4.25 per cent per annum. The Notes are convertible into fully paid ordinary shares in the Company, or at the option of the Company can be cash-settled. The initial conversion price of the Notes is $6.63 per ordinary share, which represents a conversion premium of 30 per cent over the reference share price of $5.10 per ordinary share (Reference Share Price). Concurrently, and in connection with the issuance, the Company purchased certain cash-settled call options (Capped Call Transactions) related to ordinary shares in the Company. The Capped Call Transactions provide an economic hedge up to the cap price, which is initially set at $9.18 per ordinary share, equivalent to an 80 per cent premium over the Reference Share Price. Entry into the Capped Call Transactions is designed to manage potential future dilution from conversion of the Notes. The fixed coupon of 4.25 per cent per annum plus the cost of the Capped Call Transactions are equal to an effective total yield cost of 6.3 per cent per annum, which is materially below the Company’s current cost of equity. This provides the Company with a highly competitive rate of finance with no financial covenants, compared to more restrictive, secured financing otherwise available to the industry. The Notes provide increased financial flexibility to support the Company’s strategy to maximise shareholder returns through disciplined operational management, cost control, production growth and capital management. Cash inflows, net of transaction costs, including the cost of the Capped Call Transactions, for the Notes total $265.0 million. 2024 $000 2023 $000 Payments for property, plant and equipment (262,084) (174,617) Payments for intangibles (521) (676) Proceeds from property, plant and equipment 240 8,693 Payments for equity investment (80,564) – Payments for exploration and evaluation assets (9,699) (11,964) Payments for other financial assets (160,118) (20,000) Proceeds from sale of equity investment 4,208 – Term deposits – 100,000 Cash flow from investing activities (508,538) (98,294) Investing cash flows continued Annual Report 2024 New Hope Group 13 Operating and financial review continued Notes 2024 $000 2023 $000 Share buy-back 23(d) – (192,447) Convertible debt buy-back – (367,325) Proceeds from convertible bond 291,139 – Payment for capped call option on convertible bond 26,160 – Purchase of shares to settle employee share plans 3,300 – Dividends paid 24 (397,307) (839,120) Repayment of lease liabilities (9,771) (9,988) Cash flow from financing activities (145,399) (1,408,880) The Company ended the period with a closing cash and cash equivalents balance of $638.8 million (2023: $730.7 million) and $185.8 million in fixed income investments, classified as other financial assets (2023: $20.0 million). Cash flow summary 2024 $000 2023 $000 Operating cash flows 561,964 1,524,789 Investing cash flows (508,538) (98,294) Financing cash flows (145,399) (1,408,880) Effects of exchange rate changes 79 (2,675) Cash and cash equivalents at the end of the period 638,760 730,654 Capital management Notes 2024 $000 2023 $000 Cash and cash equivalents 17 638,760 730,654 Other financial assets 18 185,765 19,984 Unsecured convertible notes 22(a) (258,730) – Option liability component – convertible notes 22(a) (34,500) – Net cash / (Net debt)¹ 531,295 750,638 1. Net cash / (Net debt) excludes lease liabilities and includes other financial assets, which are predominantly short-term fixed interest funds that can be readily converted into cash. In line with the Company’s capital management framework, the Company focused on returning funds to shareholders through dividends following the funding of growth capital at Bengalla Mine, and investment activitiesincluding the increased equity in Malabar. During the period, the fully franked 2023 final and special dividends totalling 21.0 and 9.0 cents per ordinary share respectively were paid to shareholders, totalling $253.6 million. The 2024 interim fully franked dividend of 17.0 cents per share, totalling $143.7 million, was also paid to shareholders during the period. Dividends paid during the period totalled $397.3 million (2023: $839.1 million). Given the significant value of the Company’s franking account, dividends are the presently preferred method for returning capital to shareholders. Directors have declared a final dividend of 22.0 cents per share (31 July 2023: 21.0 cents). The dividend is fully franked and payable on Thursday 24 October 2024 to shareholders registered as at Friday 4 October 2024. Financing cash flows and capital management continued New Hope Group 14 Annual Report 2024 Review of operations Health, safety and wellbeing The Company aims to foster a culture that reflects our Core Values of integrity, respect, responsibility, wellbeing, resilience and collaboration. We work to maintain a safe working environment, and create workplaces where everyone feels included, is treated fairly and with respect, and is supported to succeed. For detail on our safety performance, see the Sustainability section of the Annual Report 2024. Environment The Company manages its mining tenements and agricultural land responsibly, including through progressively rehabilitating mining land, alongside a range of other measures to minimise operational impacts. For detail on our environmental performance, see the Sustainability section of the Annual Report 2024. Marketing The Company achieved an average sales price of $183.25/t, a 47.1 per cent decrease from the previous period (2023: A$346.73/t). A milder winter in the northern hemisphere and increased customer inventories resulted in softening of demand, creating downward pressure on prices following record highs in the previous financial year. Despite volatility in the high Calorific Value (CV) market, demand for thermal coal remained robust, with the gC NEWC 6000 closing the period at US$135.09/t. Strong demand from China to satisfy increased electricity consumption resulted in a narrowing in the spread between gC NEWC 6000 and API-5 5500 kcal/kg Net CV (NAR), with the latter averaging US$96.67/t for the period (2023: US$132.86/t). API-5 remained well supported during the period, providing a clearing house for thermal coal supplies, closing at US$87.95/t as at 31 July 2024. Throughout the 2024 financial year, as the differential between gC NEWC 6000 and API-5 narrowed, the Company was able to alternate production between the two products to optimise margins based on the changing indices. Despite stabilised pricing levels volatility still exists, with minor demand or supply shocks having the potential to move pricing indices materially. It is expected that the thermal coal market will remain balanced for the rest of the 2024 calendar year, with potential tightening of supply into calendar year 2025, meaning any supply disruptions, either locally or globally, could positively impact thermal coal prices. The Company started the 2025 financial year, with elevated opening inventory and a well-supported forward sales book including more than 85 per cent of production for the next six months sold. Logistics During quarter four of the 2024 financial year, increased rail cancellations caused by high rainfall, track issues, labour availability and protestor activities were experienced by many rail customers across the Hunter Valley region, impacting delivery of product to the Port of Newcastle. As a result of these uncontrollable disruptions, Bengalla Mine experienced delayed coal sales of approximately 0.4Mt to 0.5Mt¹ and further impacts to production due to inventory constraints. The Company has been in discussions with Port Waratah Coal Services located at the Port of Newcastle to secure increased port capacity for Bengalla Mine. The increased capacity will assist Bengalla Mine to mitigate downstream disruption impacts at the port in the future, increasing certainty of coal supply to customers. 1. Reflects the Company’s 80 per cent interest in Bengalla Mine. Annual Report 2024 New Hope Group 15 Operating and financial review continued New Acland Mine has been able to take advantage of additional spot rail capacity that became available during the 2024 financial year, and remains well positioned to utilise this increased capacity as it becomes available. At the end of the period, discussions with Aurizon and Queensland Rail were underway to contractually secure access to additional rail capacity in the second half of the 2025 financial year. NSW Domestic Coal Reservation Scheme On 22 December 2022, the New South Wales Government introduced a Domestic Coal Reservation Scheme and price cap of $125/t. During the period, Bengalla Mine complied with its obligations under the Scheme, which concluded on 30 June 2024. Bengalla Mine will continue to support its domestic customers. The New South Wales coal royalty increase came into effect on 1 July 2024, increasing from 8.2 per cent to 10.8 per cent for open-cut mines, and 7.2 per cent to 9.8 per cent for underground mines. Group coal mining operational metrics1 Metric 2024 2023 Prime overburden kbcm 56,675 46,544 Run-of-mine (ROM) coal produced kt 12,337 9,335 ROM strip ratio – prime bcm/t 4.6 5.0 Bypass kt 1,725 1,377 Coal handling preparation plant (CHPP) feed kt 10,648 7,754 Saleable coal produced kt 9,063 7,217 Washed product yield² % 69% 75% Purchased coal kt 85 222 Coal sales³ kt 8,686 7,638 Average sale price achieved A$/sale t 183.25 346.73 Average sale price achieved (including net commodity and FX movement) A$/sale t 195.15 344.98 Unit costs of sales Free on Rail (FOR) cash cost A$/sale t 69.79 56.75 FOR to FOB cost (ex. state royalties and trade coal) A$/sale t 20.25 13.56 Underlying FOB cash costs (ex. state royalties and trade coal) A$/sale t 90.04 70.31 Trade coal purchases A$/sale t 1.32 15.66 State royalties A$/sale t 14.51 27.32 Underlying FOB cash cost A$/sale t 105.87 113.29 Margin A$/sale t 77.38 233.44 Margin (including net commodity and FX movement) A$/sale t 89.28 231.69 1. Metrics reflect the Company’s 80 per cent interest in Bengalla Mine. 2. Washed product yield was impacted by higher volume of lower yielding product from New Acland Mine due to ramp-up activities. 3. Includes purchased coal. Bengalla Mine – 100 per cent basis Bengalla Mine realised the productivity benefits from the Growth Project with additional capacity from the early commissioning of the Leibherr 9800 excavator resulting in an increase in prime overburden movement to 61.0mbcm, 7.2 per cent higher from 56.9mbcm in the previous period. The operation delivered 12.5Mt ROM production, an increase of 6.0 per cent from 11.8Mt in the previous period. Bengalla Mine delivered 10.1Mt (2023: 9.0Mt) in saleable coal production and 9.8Mt in coal sales (2023: 9.5Mt). The annual dragline shutdown was brought forward to the first half of the 2024 financial year to reduce operational disruption and has achieved strong productivity rates throughout the year. Improved weather conditions and increased equipment capacity resulted in Bengalla Mine achieving the 13.4Mtpa ROM run rate in the second half of the 2024 financial year. Following the dragline shutdown, construction of the Coal Handling and Preparation Plant (CHPP) tailings capacity upgrade was completed, resulting in the CHPP ramping-up washery feed. To mitigate plant availability during the 14-day CHPP shutdown, higher coal bypass was processed during the period. Despite the impacts from stock constraints caused by uncontrollable rail cancellations, feed to the CHPP was 10.4Mt, a 7.2 per cent increase from the previous period (2023: 9.7Mt). During the period, there was a strong focus on improving processing capacity of the CHPP, with early results returning increased washery yields. In quarter four of the 2024 financial year, delays caused by rail cancellations impacted coal sales and created further upstream impacts to production, which resulted in pit inventory constraints and slowing of coal uncovery. As a result, Bengalla Mine now holds elevated levels of in-pit inventory and product coal stocks that will benefit the business in future periods. New Hope Group 16 Annual Report 2024 Underlying FOR cash costs were $64.63/saleable tonne, an increase of 7.6 per cent from the previous period (2023: $60.06/t). Increased unit costs associated with increased operational labour, fuel, parts and consumables to support the additional fleet capacity are expected to have a temporary impact until increased saleable production rates are embedded. Inflationary cost pressures have eased as fuel and explosive prices softened from the elevated levels in the previous period, with the average fuel price of $1.11/L (2023: 1.20/L). Maintenance activity associated with the aging haul truck fleet increased subcontractor, parts and consumables expenditure. Delivery of replacement haul trucks has been brought forward with the first truck expected to arrive at the end of calendar year 2025. Optimising productivity and limiting expenditure on controllable costs remain the focus, ensuring Bengalla Mine continues to operate as a large-scale, cost-competitive mine. Bengalla Mine 13.4Mt Growth Project While overall volumes were constrained due to downstream logistics disruptions, annualised growth throughput rates were achieved ahead of schedule for the headline washery input metric of 12.9Mtpa. The mining fleet has the capacity to deliver 13.4Mtpa ROM run rates and the CHPP is currently ramping- up washery feed following the recent tailings capacity upgrade. The remaining work is now focused on supporting infrastructure, predominantly on a new public car park and an integrated CHPP operations hub, due for completion by the end of the 2024 calendar year. Bengalla Mine FOR cash costs per saleable tonne FY23 FOR cash cost/saleable t FY24 FOR cash cost/saleable t Growth-related labour, parts & fuel Maintenance – aging truck fleet Other Volume 60.1 4.8 0.9 1.0 2.1 64.6 +8% Annual Report 2024 New Hope Group 17 Operating and financial review continued New Acland Mine Following recommencement of operations, New Acland Mine moved 7.9mbcm in prime overburden and achieved 2.4Mt in ROM coal production during the 2024 financial year. Saleable coal production was 1.0Mt, with coal sales of 0.8Mt, including 0.07Mt of purchased coal from New Wilkie Energy Pty Ltd (New Wilkie), shipped out of the Queensland Bulk Handling (QBH) facility. Refurbishment of the secondary CHPP was completed during the period, allowing both plants to be available during the ramp-up. Construction of the Lagoon Creek Crossing was completed early in the second half of the 2024 financial year, providing access to Willeroo Pit. The early commissioning of a new Hitachi EX5600 excavator and the commencement of night shift operations contributed to the ramp-up of operations being ahead of schedule. As a result of these activities, New Acland Mine was able to take advantage of additional spot rail capacity to increase product railings to port and is well positioned to utilise future spot rail capacity that may become available. New Acland Mine onboarded 99 employees during the period, with a total of more than 190 locally-based employees now working at the operation. Further intakes are planned for early in the 2025 financial year. The Land Court of Queensland is yet to set dates for the hearing of the Oakey Coal Action Alliance’s legal challenge to the grant of the Associated Water Licence by the Queensland Government. New Acland Mine will continue mining activities in both Manning Vale East and Willeroo Pits, and progress planning and surface infrastructure works in preparation for mining activities in the Manning Vale West Pit, currently targeted to commence in the second half of calendar year 2025. New Acland Renewables Precinct The Company has continued investigations into developing a large-scale, alternate energy facility on land owned by New Hope near New Acland Mine comprising a pumped hydro complex, including on-site solar and wind generation that would take advantage of the site’s topography and location within the Southern Queensland Renewable Energy Zone. It is envisaged the complex would operate alongside mining operations, and continue post- mining to support long-term value creation and local employment opportunities. During the period, prefeasibility studies focused on engineering, geotechnical and equipment selection progressed. These studies are presently undergoing peer review. Assuming the conclusions from the initial studies are confirmed, it is anticipated the program of work will progress to conducting a detailed feasibility study and developing scenarios for commercial structuring and financing opportunities. Queensland Bulk Handling (QBH) QBH delivered 3.3Mt in coal exports for the 2024 financial year, an increase of 65.6 per cent from 2.0Mt in the previous period, due to sales from New Acland Mine. On 27 December 2023, one of QBH’s customers, New Wilkie Energy Pty Ltd, which operated the Wilkie Creek coal mine, entered voluntary administration. In January 2024, production from the Wilkie Creek coal mine was suspended and receivers and managers were appointed. During the year, QBH purchased 0.07Mt of coal from New Wilkie, with the purchase price offset against New Wilkie’s outstanding obligations to QBH under the Port Services Agreement. The coal was then on-sold to New Acland Mine. The majority of QBH’s revenue is generated from long-term customer contracts indexed to inflation. QBH continues to be a high-performing and low-risk asset within the Group’s portfolio, with its rental lease extending to 2042 following execution of lease agreements with the Port of Brisbane. Exploration Licence 9431 (EL9431) Bengalla Mine has approval from the NSW Resources Regulator to carry out Assessable Prospecting Operations over EL9431, an area of 556 hectares contiguous to the western boundary of Bengalla Mine. An exploration drilling program commenced during the period, with core samples undergoing analysis for coal quality, geotechnical and geochemical properties. Further exploration drilling is expected early in the 2025 financial year. West Muswellbrook Assessment Lease (AL19) On 25 January 2024, the Company completed the acquisition of AL19 from Idemitsu Australia. Located close to the western side of Bengalla Mine and proximate to the Maxwell Underground Mine near Muswellbrook, AL19 is a 8,100 hectare Assessment Lease tenement together with surface title over 27 properties. The acquisition of AL19 provides synergies to our existing mining and agricultural assets while providing longer-term optionality. During the period, the Company began to engage with landholders and residents in the area, and developed a Community Consultation Strategy. The Company continues to progress conceptual studies, including the identification of exploration targets, geological model updates and potential operational scenarios for both open-cut or underground opportunities. New Hope Group 18 Annual Report 2024 The Company’s estimates for AL19 are included in its annual coal resources and reserves statement included in the Annual Report 2024. Coal development and exploration In addition to EL9431 and AL19, the Company maintains several development and exploration sites. Expenditure on these assets has been maintained to keep the tenements in good standing and meet required obligations. Malabar Resources Limited (Malabar) – 19.97 per cent interest On 7 February 2024, the Company announced its commitment to take up to $105.0 million of a minimum $160.0 million institutional placement equity raising launched by Malabar. On 21 February 2024, Malabar successfully completed an upsized ~$180 million equity raise that resulted in the Company’s total ordinary shareholding interest in Malabar increasing from 15.0 per cent to 19.9 per cent. The equity raise was completed and a total of 44,284,885 ordinary shares were allotted to the Company at $1.80 per ordinary share for a subscription amount of $79,712,713. At the end of the period, the Company’s equity interest in Malabar Resources was 19.97 per cent. Malabar will use the proceeds from the equity raise to accelerate the development of the Maxwell Mine Project as a 300m longwall underground mine expected to produce 6.0Mtpa of coal sales. Development activities advanced significantly during the period, including the launch of a major recruitment drive for more than 200 team members and infrastructure activities in readiness for the longwall operation. The Company’s investment in Malabar aligns with its strategy of investing in low-cost coal assets with long-life approvals, and offers increased exposure to metallurgical coal. Pastoral operations Drought-like conditions affected Bengalla Agricultural Company (BAC) during the period, with a return to more favourable conditions late in the 2024 financial year. During the period 519 head of cattle were purchased and 481 sold, with a closing inventory of 1,009 head as at 31 July 2024. Hay and livestock fodder crops were maintained during the period, ensuring high-quality nutritional feed for fattening livestock and good plant health and foliage for the coming hay season. As at 31 July 2024, 60 hectares of lucerne were under irrigation, consisting of 20 hectares of existing and 40 hectares of newly planted lucerne. At Acland Pastoral Company (APC), approximately 750 head of cattle were sold and 212 steers were purchased during the period, ending the 2024 financial year with closing inventory of 2,248 head. The 2024 livestock breeding program produced strong results with a pregnancy testing rate of 98 per cent, a significant improvement on the previous financial year. APC harvested approximately 2,600t of winter grain (wheat and barley), 140t of barley straw bales, and approximately 2,300t of summer grain (sorghum and millet), with yield increases of greater than 30 per cent from the previous period. APC has approximately 900 hectares of wheat and barley currently growing for grain production, and 200 hectares of oats grazed by backgrounder steers. Capital purchases of equipment, grain storage and investments to improve stock water and irrigation systems have supported the operations through drought conditions and provided operational flexibility in a volatile pricing market. Rainfall at both APC and BAC in the second half of the 2024 financial year, combined with sustainable stocking rates, resulted in healthy bodies of feed being available leading into the 2025 financial year. Bridgeport Energy Pty Ltd (Bridgeport) Oil and gas production totalled 314,447 boe, a slight increase from the previous period (2023: 310,107 boe). The average realised oil price was US$85.53/bbl, in line with the previous period of US$84.81/bbl. Oil production was impacted by increased downtime due to wet weather conditions, unplanned equipment outages and natural decline. During the year, Bridgeport completed restoration work at ATP 608P and ATP 805P and worked over seven operated wells to bring oil production back to target. During the period, the Company was approached with an acquisition proposal for Bridgeport. The Company has engaged with the potential buyer, which is presently completing due diligence and negotiating the long form transaction documents. The Company classified Bridgeport as held for sale as at 31 July 2024. Safeguard Mechanism Reforms to the Australian Government’s Safeguard Mechanism took effect on 1 July 2023. The Safeguard Mechanism requires facilities with Scope 1 emissions of more than 100,000 tonnes of carbon dioxide equivalent (CO2-e) per year to progressively reduce Scope 1 emissions against a determined baseline by 4.9 per cent per annum to 2030. The Safeguard Mechanism requirements apply to Bengalla Mine. For further detail on how the Company is addressing the requirements of the Safeguard Mechanism, see the Sustainability section of Annual Report 2024. Outlook The Company’s long-term strategy is to safely, responsibly and efficiently operate our low-cost, long-life assets with a focus on disciplined capital management, providing valuable returns to our shareholders. The Company believes the demand outlook for thermal coal produced from our low-cost Australian operations will remain strong, with increasing electricity consumption per capita, particularly in developing Southeast Asia. Coupled with a supply shortfall due to underinvestment and aging thermal coal assets, the expectation is thermal coal pricing will remain above historical averages over the medium to long term.1 Targeted organic growth from the Company’s existing assets are expected to provide significant upside to future cash flows for our shareholders. We acknowledge that climate-related policy and legislation will continue to evolve and likely increase regulatory compliance requirements for the Company. For more detail on our climate-related reporting approach, see the Sustainability section in the Annual Report 2024. 1. Average future long-term coal prices ~US$127/t (real) – Average forecast gC NEWC 6000 price between Wood Mackenzie and Commodity Insights from 2028 to 2050. Annual Report 2024 New Hope Group 19 Sustainability Report This Sustainability Report (and all references to ‘this year’) applies to the 1 August 2023 to 31 July 2024 reporting period, unless specifically noted otherwise. Our Sustainability Report has been prepared with reference to the Global Reporting Initiative (GRI) standards. To see where we address each applicable disclosure, refer to our GRI Index table at newhopegroup.com.au/ results-and-reports. We have considered a number of additional performance benchmarks in developing this Sustainability Report. This year, we undertook a self-assessment of performance against sustainability topics recommended by the internationally recognised Towards Sustainable Mining framework, as an additional internal benchmarking exercise. We also undertook a gap analysis against the recommendations of the Taskforce on Nature-related Financial Disclosures (TNFD) as we recognise increasing stakeholder interest in our nature-related impacts, and are currently considering opportunities to incorporate the Locate, Evaluate, Assess and Prepare approach to identify and assess nature-related issues proposed by the TNFD framework into our future disclosures. At the date of this Annual Report, a mandatory climate-related financial disclosure regime was being finalised in Australia, set to apply to New Hope Group from the 2026 financial year. This disclosure regime has been informed by the International Financial Reporting Standards, which have incorporated the recommendations from the Taskforce on Climate-related Financial Disclosures (TCFD). While we are focused on aligning future disclosures to this upcoming regime, we recognise stakeholder interest in our position and response to climate-related matters and thus continue to address these in this year’s Sustainability Report. Due to the materiality of our coal mining operations at the Bengalla and New Acland Mines relative to the other parts of our business, as well as the relative greater significance of their actual and potential sustainability impacts and opportunities, disclosures within this Sustainability Report predominantly focus on the performance of our coal mining operations, with references to our non- mining operations where relevant and by exception. Group-level disclosures include all New Hope Group operational subsidiaries listed below. Unless otherwise specified, entities referenced in this Sustainability Report are as follows: • ‘New Hope’ refers to New Hope Corporation Limited and ‘New Hope Group’ (or ‘the Group’) refers to New Hope and its controlled entities. • ‘Bengalla’ refers to Bengalla Mine, operated by Bengalla Mining Company Pty Ltd, in which New Hope holds an 80 per cent interest in joint venture with Taipower Bengalla Pty Ltd. For the purposes of this Sustainability Report, data relating to Bengalla is reported on an operational control (or 100 per cent) basis, unless otherwise stated. • ‘New Acland’ refers to New Acland Mine and its operator, New Acland Coal Pty Ltd. • ‘QBH’ refers to the Queensland Bulk Handling facility and its operator, Queensland Bulk Handling Pty Ltd. • ‘Bridgeport’ refers to Bridgeport Energy Pty Ltd and its subsidiary entities. • ‘Jeebropilly’ refers to the former Jeebropilly Mine, operated by Jeebropilly Collieries Pty Ltd.1 • ‘Acland Pastoral Company’ refers to Acland Pastoral Company Pty Ltd. • ‘Bengalla Agricultural Company’ refers to Bengalla Agricultural Company Pty Ltd. • ‘Agricultural operations’ refers to Acland Pastoral Company and Bengalla Agricultural Company collectively. This Sustainability Report seeks to provide a balanced, accurate and relevant view of our performance. The New Hope Group Board has reviewed the Sustainability Report and approved its publication. All content within this Sustainability Report is based on information available prior to the date of publication. The content has not been independently verified, but has been subject to detailed internal review using all reasonable care to state accurate facts and reasonable opinions. The content includes some forward-looking statements, which by their nature involve factors that are uncertain and may change, and no representation or warranty is made as to the fairness, accuracy or completeness of the information and opinions contained in this Sustainability Report. Questions, requests for clarification or feedback can be directed to cosec@newhopegroup.com.au. Approach to sustainability Our aim is to continue creating value for our stakeholders by safely, responsibly and efficiently operating our coal assets. Locally, this means we strive to responsibly manage the impacts on our people, communities and the environment in carrying out our activities and in meeting our domestic coal supply obligations. In a global context, we produce coal for those countries that use coal to provide secure and reliable energy. Sustainability governance As detailed in the Company’s Corporate Governance Statement 2024, New Hope’s Board oversees and is responsible for monitoring performance against our business objectives, purpose and values. This responsibility is delegated where appropriate through the Group’s risk management and governance mechanisms. The Board recognises that risk management and internal controls are fundamental to sound management and that oversight of such matters is a key responsibility of the Board. The Board’s role in relation to risk is to oversee and review the Group’s Risk Appetite Statement and its Enterprise Risk Management Framework. This allows management to facilitate the effective identification, management and mitigation of any significant risks to which the Group is exposed. We strive to operate responsibly and to transparently disclose our economic, environmental and social impacts and performance in response to stakeholder interest, as well as regulatory requirements. 1. New Hope Group divested Jeebropilly Mine in August 2024, shortly after the end of the reporting period. Data for the reporting period is available in the data tables at newhopegroup.com.au/results-reports, and is otherwise referenced by exception throughout this Sustainability Report. New Hope Group 20 Annual Report 2024 The Board has identified the Executive General Manager and Company Secretary, who reports directly to the CEO, as the senior role in the Group responsible for risk and accountable for developing, maintaining and governing the Enterprise Risk Management Framework. The Sustainability Committee assists the Board in meeting its responsibilities in relation to health, safety, wellbeing, environment, climate, community and people matters. The Sustainability Committee has primary responsibility for the management of the risks associated with these responsibility areas and is responsible for reporting and updating the Board about climate change and sustainability matters. The Sustainability Committee, in conjunction with the Audit and Risk Committee and in consultation with responsible Executives and employees, reviews the Group’s risk register and Enterprise Risk Management Framework at least annually for the relevant risks and agrees the allocation of responsibility by respective Committee per identified risk. See the Sustainability Committee Charter for further details. Stakeholder engagement We believe that a fundamental aspect to operating responsibly is listening to, understanding and valuing the interests, objectives and concerns of our key stakeholders. This approach helps us to understand the impacts of our operations on different stakeholder groups and helps inform our operational and strategic decisions. Key stakeholder groups include employees and contractors, local communities, Traditional Owners, neighbouring landholders, customers, suppliers, shareholders and joint venture partners, financiers and insurers, government agencies and regulators and industry associations. We identify specific stakeholders primarily through ongoing, direct (one-to-one) engagement, documented in internal stakeholder engagement plans, and prioritise engagement with those most directly impacted by our operations. We aim to engage meaningfully and support respectful and considerate two-way communication through various channels, from one-to-one interaction to wide-reaching channels such as our website and social media. During the year, we refreshed our website to further improve how stakeholders can access information about our business and operations, including sustainability-related matters. We also increased our direct engagement with current and prospective investors in Australia and abroad, and undertook a perception study to better understand investor and analyst sentiment. As detailed below, a materiality assessment contributed to our understanding of our stakeholder interests. Material sustainability topics We seek to understand and report the issues of interest to our stakeholders as well as where we have a significant economic, environmental or social impact. This year we have again used the coal sector specific GRI Standard GRI-12 to guide our approach. In addition, we have considered the Oil and Gas, and Agriculture, Aquaculture and Fishing Standards GRI-11 and GRI-13 respectively. As noted earlier, this Sustainability Report focuses on our coal operations and the data tables at newhopegroup.com.au/ results-reports provide further detail. This year we engaged an independent consultant to undertake a materiality assessment, which included qualitative interviews with internal stakeholders, and an online survey completed by employees and external stakeholders including community members, near neighbours, investors, industry representatives and suppliers. Through this process, we identified social and economic topics to be relatively more material. We also considered feedback provided via other channels, including direct engagement and external ESG assessments, and the corporate risk register. The sustainability topics identified as material for disclosure were reviewed and approved by the Sustainability Committee and Board and are as follows. Our people • Health, safety and wellbeing • Employment practices • Attracting and retaining a diverse workforce • Workplace behaviours and raising concerns Communities • Our approach to community engagement • Economic and social impact • First Nations engagement • Amenity impacts Environment • Greenhouse gas emissions • Closure and rehabilitation • Water use • Biodiversity and land use • Cultural heritage management • Air quality • Waste management Climate, transition and resilience • Our strategy • Climate-related risks and opportunities • Metrics and targets • Governance Responsible business conduct • Forced labour and modern slavery • Anti-bribery and corruption • Payments to government • Public policy and political donations • Privacy and cyber security • Compliance Annual Report 2024 New Hope Group 21 Our people Sustainability Report continued We aim to foster a culture that reflects our core values of integrity, respect, responsibility, wellbeing, resilience and collaboration. We focus on creating safe workplaces where everyone feels included, is treated fairly and with respect, and is supported to succeed. During the year, our total workforce1 increased by 18 per cent to 1,084, primarily reflecting increased recruitment at New Acland. Our two mines are residential, with around 88 per cent of employees living local to our mining operations.2 For detailed performance data, see the data tables at newhopegroup.com.au/results-and-reports. Health, safety and wellbeing Ours is a high-risk industry and we continue to improve our systems, process and culture focusing on providing and maintaining a safe working environment. This includes engaging our workforce through a range of formal and informal mechanisms to ensure the way we work is fit-for-purpose, supported by an occupational health and safety management system that covers all employees and site-based contractors. Our approach is based on the complementary Plan, Do, Check, Act model and High Reliability Organisation principles, which focus on proactively mitigating risk by analysing and avoiding high potential events and hazards. Work-related health and safety hazards are identified through a range of methods including the New Hope Group Risk Management Process, site risk assessments, audits, inspections, safety interactions and industry alerts. Site-specific Broad- Brush Risk Assessments (BBRAs) outline the risks across our businesses and controls required to mitigate these risks. This process is supported by critical risk management programs at our mine sites. In addition to reporting statutory high potential incidents, we monitor and analyse high potential events and high potential hazards. Any events or hazards in these categories are investigated, with actions developed to prevent contributing factors from recurring. This year we revised the New Hope Group Safety and Wellbeing Policy with reference to ISO Standard 45001:2018 Occupational Health and Safety Management Systems. 1. Workforce is defined as all employees including Directors of New Hope and its controlled entities. 2. Local to Bengalla Mine is defined as employees or suppliers based in the following Local Government Areas: Muswellbrook, Upper Hunter, Singleton. Local to New Acland Mine is defined as employees or suppliers based in the following Local Government Areas: Toowoomba, Western Downs, South Burnett, Lockyer Valley, Southern Downs. New Hope Group 22 Annual Report 2024 We further updated this policy to incorporate our commitment to eliminating psychological harm, respect and behaviours, and speaking out without fear of retribution. We also updated our Group Contractor Management Standard to ensure contractors, service providers and consultants meet our expectations around managing health, safety and environment risks. Additionally, we implemented a new workforce management system at our coal mines, QBH and offices to connect and protect information about our people and their training and medical information as required by state regulators, whilst maintaining strong cyber security and governance. This streamlined system helps ensure employees, contractors and others visiting our sites are compliant, qualified and authorised to do so. At our agricultural operations, we revised our health and safety management system and undertook BBRAs. Recognising the connection between occupational health and hygiene, work- related injuries, fitness for work and overall wellbeing, we have both preventative and mitigating controls built into the way we operate and manage health and wellbeing. Key controls include medical assessments to detect and intervene in occupational diseases, hygiene monitoring, facilitating early return to work with reasonable adjustments where possible, and wellbeing awareness and education programs. We continue to use technology to better analyse risk and standardise our health, safety and wellbeing procedures and tools to improve effectiveness and collaboration across the Group. Our key operational safety metric is the All-Injury Frequency Rate (AIFR), which provides a holistic measure of minor and more serious injury outcomes. The 12-month moving average AIFR to 31 July 2024 was 32.60, up from 27.10 as at 31 July 2023. The majority of all injuries are minor first aid cases, not severe injuries or near misses – which potentially also indicates our people may be more willing to report incidents, which we have been encouraging. New Hope Group health and safety performance Indicator Year to 31 July 2024 Year to 31 July 2023 Year to 31 July 2022 Fatalities 0 0 0 Total recordable injuries 16 5 5 Rate of recordable work-related injuries (TRIFR) 5.32 2.12 2.61 All-injury frequency rate (AIFR) 32.60 27.10 29.70 Number of first aid incidents 81 59 52 Number of medically treated incidents 8 2 2 Number of lost-time incidents (LTI) (including disabling and restricted) 8 3 3 Note: Data reported includes employees and contractors at a Group level including Bengalla Mine on a 100 per cent basis. The Total Recordable Injury Frequency Rate (TRIFR) increased from 2.12 to 5.32 in the year to 31 July 2024. This increase in both AIFR and TRIFR has been influenced by the ramp-up of operations at New Acland, with new people on new equipment contributing to more recordable injuries. There have also been more first aid cases and reportable injuries at Bengalla and QBH. An analysis of injuries indicates some of our recordable injuries are musculo- skeletal; however, the majority of all injuries are hand injuries. Hand injuries have been prevalent across the industry in recent years, and we have undertaken hand injury awareness training at our operations and examined how work could be done differently to reduce hand injury exposure risk. We continue to take steps to address this trend, including reviewing our training and fitness for work criteria, the quality of our leading indicators, and increasing health, safety and wellbeing resourcing. Annual Report 2024 New Hope Group 23 Sustainability Report continued Our people continued Workplace hygiene We value and seek a safe work environment where the risk to harmful exposures such as dust, noise and vibration is eliminated or mitigated as far as reasonably practicable. We monitor and manage workplace hygiene through programs that identify health hazards and then reduce and prevent harmful exposures, developed by qualified hygienists. Personal protective equipment is provided to ensure exposure to hazards is kept to a minimum. We also offer free annual influenza vaccinations and skin cancer checks for our employees. Subsequent to the reporting period, we have recruited a new role, Specialist – Injury Management, Health and Hygiene, to increase our capability and knowledge in these areas and support our operations to implement appropriate controls. Wellbeing Mental health and wellbeing are key contributors to physical health, and this year we continued our Healthy Body and Mind program that provides science-based information and services to help our people and their families set and achieve healthy lifestyle goals. We encourage our people to take advantage of these resources that may benefit them personally as well as professionally, during work hours. We also offer training programs to help our people identify psychosocial hazards in the workplace as well as a free and confidential Employee Assistance Program, which helps our people, and their families address mental health and wellbeing concerns with experienced, independent specialists. To further reduce a barrier for people to improve their fitness and thereby help reduce injuries, we introduced a new fitness subsidy available to all employees and specifically designed to be accessible for those in regional areas near our operations. We also partner with multiple private health insurance providers to offer discounted coverage to our people, building on a program that was already in place at Bengalla, and 15 per cent of eligible employees have taken advantage of the offer so far. Employment practices Our workforce comprises 98 per cent full-time employees. Our full-time and part-time employees have the same entitlements. Our turnover rate in the year to 31 July 2024 was 11 per cent, a further improvement on the prior year, and below the mining industry average of 17.6 per cent.1 Although the majority of our workforce comprises permanent employees, we do employ a contractor workforce as it allows us flexibility to maintain operations during cyclical downturns and to build up capability before we bring people on in permanent positions. We continue to convert contractors to permanent employees where suitable. Regarding remuneration and benefits, last year we undertook a Group-wide review of fixed remuneration and implemented the outcomes this year. A key component was increasing salaries in many roles to reflect an increase in fixed remuneration above the Australian coal industry average, to remain competitive. We provide superannuation payments to all employees as required by Australian law, and offer paid parental and secondary carer leave in addition to government-funded parental leave. 1. Aon MIE report, April 2024. Former Brisbane Broncos captain and mental health advocate, Darius Boyd visited New Acland Mine as part of Mental Health Awareness Week. Read more This year we unveiled a new truck tray at Bengalla in support of mental health charity Where There’s A Will, which helps young people in the Upper Hunter build resilience. New Hope Group 24 Annual Report 2024 Freedom of association and collective bargaining All employees have the right to form or join a trade union, to bargain collectively and to engage in trade union activities. Under Australia’s industrial relations framework, enterprise agreements (EAs) are negotiated on a collective basis with employees and their bargaining and union representatives. New EAs are usually negotiated every three or four years and final agreements are approved by and registered with the Fair Work Commission and made publicly available. This year we renegotiated EAs with employees and unions at QBH and New Acland, providing our employees with increases in wages. EAs are in place across all of our major operations, with a total of 65 per cent of the employed workforce currently covered by a registered EA. During the year, a range of significant industrial relations reforms came into effect in Australia, including around casual and contractor engagement. New Hope outlined its position in a submission to the Education and Employment Legislation Committee on the Fair Work Legislation Amendment (Closing Loopholes) Bill 2023, available on the Parliament of Australia website. A ‘same job, same pay’ claim related to employees of labour hire companies working at Bengalla was lodged in July 2024, and is set to be heard by the Fair Work Commission in the 2025 financial year. Attracting and retaining a diverse workforce We value our people and the differences and similarities each individual contributes, and we are dedicated to building a fair and dynamic workplace. We also recognise our role in providing stable and rewarding employment in regional areas. We offer training opportunities to support professional development and career ambitions and aim to fill new roles through internal promotions where possible. We also encourage our people to explore career pathways across the Group, including through secondments that provide leadership development opportunities and build experience across corporate and operational roles. 14 remarkable Bengalla employees have been celebrated for their resilience, passion and service at two Recognition of Service Awards ceremonies. Read more Annual Report 2024 New Hope Group 25 Sustainability Report continued Our people continued Through our Study Assistance Policy we provide partial financial support to employees seeking to study to attain formal qualifications, with eight people supported this year. We also encourage and support our people to gain exposure and experience beyond our business through participation in industry events and initiatives, and training and mentorship opportunities. This year, two employees participated in the APCC Emerging Leaders program, four were mentors and one was a mentee in the Women in Mining and Resources Queensland Mentoring Program, and two participated in the Women in Mining (WIMnet) New South Wales mentoring program. We participate in industry-wide efforts to attract people to our industry. This year our head office and New Acland teams partnered with the Australian Resources and Energy Employer Association to sponsor the Bright Future STEM Program. The Program showcases Science, Technology, Engineering and Maths and the diversity of career opportunities within the resources and energy industries, and a number of our team participated in the program at schools throughout Toowoomba, Oakey and Brisbane. We continue to provide additional benefits to our people, this year launching a new platform that provides access to discounts on essential goods such as groceries and fuel. This year, around 25 per cent of our employees were regularly using this platform. Diversity We acknowledge that better business outcomes and innovations are achieved when ideas and opinions are developed from within diverse teams, recognising the difference individuals bring from their own backgrounds, values, perspectives, and experience. Our commitment is detailed in our Diversity and Inclusion Statement, supported by a Diversity and Inclusion Framework. These guide our efforts to create a more consistent approach to increasing diversity of thought and experience across our business. The Diversity and Inclusion Framework targets five key enablers to drive practical action: physical environment; education programs; leadership, values and behaviours; mentorship and development; and employment pathways. At 31 July 2024, total female workforce participation was 16 per cent, compared to 17 per cent last year and 15 per cent in the 2022 financial year. We know there is more to do to increase the proportion of women in our workforce. We are committed to a fair and equitable process, where the most suitable candidate is appointed, and appreciate the power of recruitment practices in increasing the diversity of our workforce. In 2022 we set a target for new employee recruitment to comprise 40 per cent women, 40 per cent men and 20 per cent any gender. In early 2024, we joined forces with AREEA to help facilitate the Bright Future STEM Program at Sunnybank State School, south of Brisbane. The program is designed to engage primary school students in Years 5-6 in the wonders of Science, Technology, Engineering and Maths education and careers – and our New Hope teammates had a brilliant time interacting with students and inspiring the next generation of STEM enthusiasts. Bengalla’s Sara Spokes named as a NSW Women in Mining Awards finalist. Read more New Hope Group 26 Annual Report 2024 Recruitment this year focused on experienced returning employees and the local employment pool at New Acland; as a result, the proportion of female recruits dropped slightly to 18 per cent. We have seen more of a gender balance amongst candidates for entry-level operator roles towards the end of the reporting period and into the 2025 financial year. This year we also reviewed the language in our advertising, and are developing a Group recruitment guideline to continue to remove bias from the process. We remain committed to implementing and monitoring initiatives to support the 40:40:20 recruitment target. We actively review remuneration to understand and remove any actual gender pay gap, including through the Group- wide review noted earlier and our cyclical and recruitment-related remuneration reviews. We recognise job roles, and seniority, also influence potential gender pay gaps, and are working to increase women in leadership roles. A key lever to do so is through internal promotion, and of the 56 people promoted during the year, 44 per cent were women. Further detail is available in our reporting to the Workplace Gender Equality Agency, available on our website, as well as in the sustainability data tables. Workplace behaviours and raising concerns New Hope Group does not tolerate or accept any forms of inappropriate behaviour, as outlined in the Code of Conduct, Appropriate Workplace Behaviours Policy, and Diversity and Inclusion Statement. Our Issue Resolution Procedure provides clear guidance to employees to raise and address issues related to harassment, bullying, discrimination or other inappropriate behaviours. This year we undertook sexual assault and sexual harassment risk assessments across our corporate office, agricultural operations and QBH, and at Bengalla shortly after the reporting period. A risk assessment will be undertaken at New Acland in the coming year. We are concurrently progressing a range of measures to reduce the risk of sexual assault, harassment and discrimination in our workplaces. We are also working to eliminate psychosocial hazards. This year we piloted a psychosocial survey to understand job demands, resources and potential psychological distress in our corporate office. We conducted multiple focus groups to further understand the results and contribute to a related action plan to address identified hazards. New Hope Group workforce composition Indicator As at 31 July 2024 As at 31 July 2023 As at 31 July 2022 Number of employees 1,084 915 690 Employees by gender Female 178 (16%) 152 (17%) 103 (15%) Male 906 (84%) 763 (83%) 587 (85%) Undisclosed Not disclosed Not disclosed Not disclosed Employees by location QLD 335 (31%) 229 (25%) 114 (17%) NSW 749 (69%) 679 (74%) 576 (83%) Other 0 (0%) 7 (1%) 0 (0%) Employee turnover rate 11% 13% 26% Female 16% 14% 20% Male 9% 12% 27% Recruitment by gender1 Female 18% 21% Not reported Male 82% 79% Not reported Note: All employee figures include Directors of New Hope and its controlled entities. 1. Recruitment data presented for the year to 31 July. Our Issue Resolution Procedure provides clear guidance to employees to raise and address issues related to harassment, bullying, discrimination or other inappropriate behaviours. Following this trial, we are also educating our operational teams on the process and outcomes. Combined, these actions demonstrate our continued focus on ensuring appropriate workplace behaviours, policy and procedural fairness, maintaining positive physical work environments and creating a greater understanding of these matters amongst our workforce. This coming year, we will conduct training on the Code of Conduct, active bystander and psychosocial hazard awareness to ensure our people understand our expectations for workplace behaviours and are equipped to respond appropriately. Annual Report 2024 New Hope Group 27 Communities Sustainability Report continued We invest significant resources to ensure we are a responsible neighbour and make a positive contribution to our communities in the Upper Hunter in New South Wales and Darling Downs in Queensland.1 We are open, transparent and engage respectfully, seeking to build enduring relationships based on mutual respect and long-term commitment. We seek to sustain and increase the positive impacts of our operations, while monitoring and managing the at-times unavoidable amenity impacts of our operations. During the year, production ramped up at New Acland and substantial growth activities were completed at Bengalla. We also acquired the West Muswellbrook Assessment Lease (AL19) and started exploration drilling at Exploration Lease 9431, both to the west of Bengalla. These production and exploration activities have contributed to an increase in community interactions, as well as investment and engagement. Our agricultural operations near our mines are managed to ensure productive and long-term sustainable land use, and further our positive contribution to those communities. To that end, this year we invested in further maintenance at both of our agricultural operations, as well as new equipment to improve efficiencies and yields. We are also working closely with Toowoomba Regional Council to manage feral pigs and wild dogs in the broader region where our New Acland and Acland Pastoral Company are located. Our approach to community engagement We proactively engage with a range of stakeholders relevant to our operations including Traditional Owners in the areas where our operations are located, First Nations community members, local landholders, near neighbours, community groups, local industry, and government bodies. We work to ensure local community access to grievance mechanisms and other remediation processes to facilitate meaningful engagement, and seek to understand and address any actual or potential negative impacts from our activities. Our operational impacts are outlined in impact assessments, which form part of our approvals. Our activities are governed by authorities and management plans approved and monitored by the respective bodies in New South Wales and Queensland, available at newhopegroup. com.au/general-reporting. These plans form the foundations of our stakeholder engagement planning, which are reviewed regularly and adjusted to incorporate responses from the community provided through stakeholder impact surveys and ongoing informal feedback. Community members can learn about our operations, share feedback and raise concerns through a range of formal and informal channels. These include: • Bengalla’s Community Consultative Committee (CCC), comprising community representatives, a First Nations representative and Muswellbrook Shire Council (Council). CCC members meet quarterly, and meeting minutes are available on our website. • New Acland’s Community Reference Group, an advisory body comprising local residents representing different parts of the community including health, education, landholders and local government. • Community information sessions, newsletters, local advertising, local media and social media. • Scheduled mine tours for community members, school groups and careers advisers. • In person at our New Acland Community Information Centre – which, following its reopening in June 2023, now accounts for around half of New Acland’s community interactions. • 24-hour complaints phone hotlines for both mines. • Online feedback forms at newhopegroup.com.au. Our export terminal operations at QBH similarly maintains a complaint response process and are represented on the Port of Brisbane CCC, which provides a direct link to stakeholders and local communities and provides funding to local projects. Our teams frequently participate in a range of local events, enabling community members to directly ask questions or provide feedback. We work closely with local government and are active in local business communities, with senior representatives from both New Acland and Bengalla participating in the Oakey Chamber of Commerce and Muswellbrook Chambers of Commerce and Industry respectively. Reflecting the ramp-up in operations at New Acland, this year community interactions more than doubled compared to the 2023 financial year. We have adjusted our approach to engagement based on feedback, including by establishing new quarterly New Acland Community Catch Ups to share project updates and employment opportunities to the communities of Kulpi, Jondaryan, Goombungee and Oakey. In addition to its ongoing and longstanding community engagement activities, in October 2024 Bengalla will host its bi-annual Community Open Day, offering the public an opportunity to visit and learn about the mine. We have extensive landholdings, mostly near our mining operations. We regularly engage with landholders and tenants, both within and adjacent to our landholdings, on matters including land access, environmental monitoring, road closures and operational updates. At New Acland, we have seen increased interaction with landholders during the year, with inquiries largely relating to pit progression and production ramp-up. Near Bengalla, we have started to engage with landholders and other near neighbours in relation to the West Muswellbrook Assessment Lease area and have developed an initial Community Consultation Strategy for the newly-acquired asset. 1. For the purpose of this Sustainability Report, local to Bengalla is defined as employees or suppliers based in the following Local Government Areas: Muswellbrook, Upper Hunter, Singleton. Local to New Acland is defined as employees or suppliers based in the following Local Government Areas: Toowoomba, Western Downs, South Burnett, Lockyer Valley, Southern Downs. See the sustainability data tables for more detail. New Hope Group 28 Annual Report 2024 Economic and social impact We provide reliable local employment, training and procurement opportunities and invest in the social and economic development of our communities. Around 88 per cent of employees live in areas local to our mining operations in New South Wales and Queensland. In total, New Hope Group paid $221.3 million in wages and salaries for the year, with much of this paid to regional area employees. We value local small and medium enterprises, and encourage our operations to support local suppliers where they can competitively offer quality goods and services. In this way, we contribute to and support supplier development and provide opportunities for local employment. This enhances purchasing power in the community and therefore stimulates local businesses and indirectly encourages further infrastructure investment. In total, 24 per cent of New Hope’s procurement spend this year was with suppliers local to our active mining and agricultural operations.1 New Hope Group pays mining and oil royalties to state governments each year, further contributing to services and infrastructure in Queensland and New South Wales. See the Tax Transparency Report 2024, within the Annual Report 2024, for more detail. More than a dozen local businesses played an essential role in building the $5 million Lagoon Creek Crossing, which allows for all-weather access to Willeroo Pit, facilitating the expansion of New Acland Mine Stage 3. Read more 1. This year, we worked to further refine our definition of ‘local supplier’ across the Group, making use of new systems across the business to develop a more robust process. For further detail on the definition and performance, see the data tables at newhopegroup.com.au/results-and-reports. Annual Report 2024 New Hope Group 29 The team at QBH has a proud history of working with the Bulimba Creek Catchment Coordinating Committee, contributing to the restoration and protection of the Bulimba Creek catchment in Brisbane. Sustainability Report continued Communities continued Community investment We contribute to a range of community initiatives, focusing on skills, training and employability, health, environment, and social development in the local community – both at a mine site and at a Group level, and both financially and in-kind. Community groups local to our mine operations have multiple formal pathways to seek financial and in-kind support. Community members participate in awarding funding, ensuring investments respond to community needs. In addition to annual funding opportunities, we have a range of longstanding partnerships in the areas around our operations, supporting events and initiatives that are central to our communities. This year, Bengalla donated $557,264 (80 per cent basis) supporting 74 community organisations, events and programs and also scholarship opportunities. We are working to ensure investments from Bengalla continue to be in the areas of most relevance. This year, we commissioned a social baseline study, which identified socio-economic trends expected to impact the area in the coming years, including the closure of several coal mines in the Upper Hunter. Following completion of the study, we will commence a community needs assessment. We also contribute to local infrastructure in New South Wales, with Bengalla and the Council working together to identify opportunities for infrastructure development. In the year to 31 July 2024, Bengalla paid more than $800,000 (100 per cent basis) to the Council via Voluntary Planning Agreement contributions. In recent years, this funding has contributed to projects including the construction of Council’s Tertiary Education Centre, and the restoration of Loxton House, both of which form part of a major initiative aimed at supporting education and innovation. In Queensland, we donated almost $400,000 to 54 community groups, a significant increase on the prior year enabled by the restart of operations at New Acland. We also updated our sponsorship and donations process to better understand the community benefits of our investments, and inform our investment approach. We are now undertaking a community needs analysis to inform social impact management, planning and investment. Skills development We support local skills development and employment through our apprenticeship, work experience and scholarship programs. This year at Bengalla, our apprenticeship program provided opportunities for 11 new apprentices to start their trade career – our biggest intake ever, bringing the total number of apprentices on site to 25. Additionally, 11 students from local schools and vocational education institutions gained exposure to a real-world work environment through our work experience program. Since 2000, we have supported local students through our scholarship program. This year Bengalla supported eight local students entering university through the undergraduate scholarship scheme. In addition, six scholarships were awarded to students undertaking a mining-related degree. These students complete vacation work on site with the aim to move into a graduate role at the end of their studies. Goombungee’s stunning Jacaranda Day will bloom again thanks to a two-year, $20,000 donation from New Acland Coal. Read more Read more Bengalla welcomed 11 new apprentices to the team in November 2024, and they spent their first week completing a community project at St Joseph’s High School, Aberdeen. Read more New Hope Group 30 Annual Report 2024 At New Acland, we have increased our engagement with schools in our region. This year, three students completed work experience at the mine, and one student completed work experience at our agricultural operations. We have also welcomed a trainee stationhand at our agricultural operations. We are exploring potential traineeship, apprenticeship and scholarship opportunities with local education providers, aligned with potential future employment needs and pathways in our industries. We continue to offer tours to local students, including in partnership with industry associations, to build understanding of our operations and our role in the community. This year, Bengalla hosted 102 students and teachers from four schools, as well as 13 careers advisers, and New Acland welcomed 140 students and teachers, as well as 122 other community members, on seven mine tours. In early 2024, we welcomed 74 students from Downlands College in Toowoomba to New Acland Mine to learn about the mining and rehabilitation processes, as well as career pathways in our industry. New Acland’s $20,000 donation to Quinalow Prep-10 State School will allow the expansion of the school’s agriculture- science program. Read more Annual Report 2024 New Hope Group 31 Sustainability Report continued Communities continued Brisbane Toowoomba New Acland QLD FY24 Regional impact – QLD Bengalla Newcastle Sydney NSW FY24 Regional impact – NSW employees, 97% local, at New Acland 195 donated to 54 community groups ~$400,000 in wages and salaries at New Acland $29.8m spent with 169 suppliers local to New Acland $36.9m employees, 86% local, at Bengalla 722 donated to 74 community groups and scholarship recipients $550,000+ in wages and salaries at Bengalla $120.7m spent with 260 suppliers local to Bengalla $185.6m in coal royalties paid to the NSW Government $122.7m Note: Local to Bengalla is defined as employees or suppliers based in the following Local Government Areas: Muswellbrook, Upper Hunter, Singleton. Monetary figures reflect New Hope’s 80 per cent interest in Bengalla. Note: Local to New Acland is defined as employees or suppliers based in the following Local Government Areas: Toowoomba, Western Downs, South Burnett, Lockyer Valley, Southern Downs. New Hope Group 32 Annual Report 2024 Annual Report 2024 New Hope Group 33 Sustainability Report continued Communities continued To kick off our new partnership with the Clontarf Foundation, in November 2023 Year 12 Clontarf Academy students visited New Hope Group’s head office in Brisbane, delivered a presentation and networked with the entire team, including CEO Rob Bishop and Executive General Manager and Company Secretary Dominic O’Brien. At Bengalla, we’re excited to partner with Dreampath to welcome new trainees to our team, continuing our strong tradition of local employment. First Nations engagement 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, we work to obtain the consent of Traditional Owners for activities associated with our operations. We work with Traditional Owners of the areas around our mine sites with regard to cultural heritage management, including the Wanaruah Local Aboriginal Land Council for Bengalla and the Western Wakka Wakka People and their endorsed parties for New Acland. Find out more in the Environment chapter of this report. The majority of land where Bridgeport operates is subject to recognised Native Title, and Bridgeport’s activities are governed under relevant agreements and processes including Right to Negotiate Agreements, Cultural Heritage Management Plans, Indigenous Land Use Agreements, and Ancillary Agreements. Groups include the Bidjara People, Bigambul People, Boonthamurra People, Kullilli People, Mandandanji People, Mardigan People, Mithaka People and Wongkumara People. These areas where Bridgeport operates cross numerous regions in Queensland but are predominantly in southwest Queensland where most operations occur. We do not have Native Title or Indigenous Land Use Agreements associated with our mining or agricultural operations, or QBH, as these operations are not subject to native title claims. We have respectful relationships with First Nations communities around our operations, and work to ensure they have the opportunity to benefit from our operations. We have established a First Nations Engagement Framework to further guide our efforts to increase opportunities for First Nations and First Nations businesses in our Group, with the initial focus on opportunities at New Acland. Priority areas include education and training, employment, cultural heritage, land management partnerships, and contributing to programs that support community development and wellbeing. We have partnered with an First Nations engagement and employment service provider to help implement the framework, and are working to recruit a community liaison role at New Acland with a special focus on First Nations engagement to further develop and implement relevant initiatives. This year marks the first of New Hope Group’s three-year partnership with the Clontarf Foundation, which exists to improve the education, discipline, self-esteem, life skills and employment prospects of young Aboriginal and Torres Strait Islander men through its academies based at schools across the country. We are contributing $150,000 per annum, with funding focused on the Darling Downs region. In November 2023, we welcomed Clontarf students to our Brisbane office, and offered insights into our industry as well as interview tips at an employment forum. We are working with Clontarf to develop further engagement opportunities. We continue to work with the Indigenous Business Connector Program, through the Toowoomba and Surat Basin Enterprise organisation, to identify procurement opportunities in Queensland. This year we established a new partnership with an First Nations-owned and operated property services business, to provide maintenance services at our New Acland. We have also implemented a new supplier onboarding management tool that will allow us to better understand our level of engagement with First Nations businesses across the Group. Through our partnership with the PCYC Oakey Youth Connect Program, we support efforts to help students re-engage with schooling. During the year, the team has built educational capacity to ensure positive long-term outcomes for young people. The team works with service providers and community leaders across education, healthcare, law enforcement, business and support services to enhance the wellbeing of young people in Oakey and surrounding communities. Bengalla supports the Polly Farmer Foundation Muswellbrook ‘Follow the Dream’ program, which delivers academic enrichment programs to empower and support Muswellbrook High School students in their post-school pathways. This year, the team at Bengalla worked with Dreampath for the first time, welcoming six trainees who have started a two-year Certificate 3 in Surface Vehicle Extraction. This partnership offers First Nations people a pathway into the mining industry. New Hope Group 34 Annual Report 2024 Amenity impacts Dust, vibration and noise related to our mining operations can impact people who live near our sites, and we have a range of measures to manage and reduce these impacts. Both Bengalla and New Acland maintain dust and noise monitoring equipment that provides real-time data to inform and adjust operations as necessary. We provide regular reporting on environmental monitoring on our website. We also share real-time air quality and noise monitoring data from New Acland online, available here. This year Bengalla participated in the New South Wales Environmental Protection Authority’s (NSW EPA) ‘Bust the Dust’ campaign, which seeks to address cumulative impacts of mining in the Upper Hunter region. While air quality is regulated and managed through the site approvals, the NSW EPA conducts additional inspections and monitoring in periods of high wind and dry weather to further reduce impacts on nearby communities. Community complaints We investigate all complaints, including those made via our environmental hotlines, and work to resolve issues in a timely manner. Registers of complaints received, and how they were handled, are available on our website. This year, we received 18 per cent more complaints related to our mine operations, following the restart of operations at New Acland. There were three complaints related to blasting, noise and dust at New Acland. Investigations found the operations to be within the limits of the environmental authority. As noted earlier, we have increased our resources to educate the community about our operations and address any questions or concerns. In the year to 31 July 2024, Bengalla received 42 community complaints related to blast vibration, air quality and noise. There have not been any compliance issues associated with these complaints. For a detailed breakdown, see the data tables on our website. Both Bengalla and New Acland maintain dust and noise monitoring equipment that provides real-time data to inform and adjust operations as necessary. At New Acland, we monitor air quality and noise 24/7, and real-time performance data is available online. View dashboard Annual Report 2024 New Hope Group 35 Environment Sustainability Report continued Our primary objective is to manage our mining tenements and our agricultural land responsibly, as outlined in our Environment Policy. Core to our approach is our practice of progressive rehabilitation of mining land, working alongside other measures to minimise our operational impacts. Our agricultural operations enhance our land management opportunities by enabling grazing and farming to occur consistent with surrounding areas, as well as on rehabilitated mining land. Our mines are subject to strict environmental assessment, approval, monitoring, reporting and auditing requirements – both at a state and a federal level. During the year, we bolstered resourcing to support increased production activity. As part of our new First Nations Engagement Framework, we are working with First Nations people to seek to increase the business and employment opportunities at our mining and agricultural operations, including for land management. For detailed environmental performance data, including across sites and over time, see the data tables. Greenhouse gas emissions New Hope reports on emissions, energy consumption and energy production to the Clean Energy Regulator (CER) annually, in accordance with, and using the methodology set out under, the National Greenhouse and Energy Reporting (NGER) Scheme. This reporting includes recording and disclosing Scope 1 and Scope 2 greenhouse gas (GHG) emissions on an operational control basis. We are committed to improving our understanding of our emissions profile and to reduce emissions where reasonable and feasible. This year we undertook gas drilling at New Acland, with results confirming it is a low-emitting operation due to the low presence of fugitive gases. Drilling and analysis to be conducted during the 2025 financial year will inform an updated gas model for the life of the Bengalla. This section sets out emissions and energy related data across our operations, as reported through the NGER Scheme. Reflecting the timing of reporting requirements under the NGER Scheme, data presented is for the year to 30 June 2023. We are working towards meeting the requirements of the mandatory climate- related financial disclosure regime, set to apply to New Hope Group from the 2026 financial year. Scope 1 and 2 emissions New Hope Group’s total operational Scope 1 and 2 emissions were 653,440 tonnes of carbon dioxide equivalent (tCO2-e) for the year to 30 June 2023, a 21 per cent reduction compared to the prior year. Factors impacting the Group’s emissions included the following: • Whilst there was slightly increased activity at New Acland, there was no coal produced. • The coal seams mined at Bengalla had fewer fugitive emissions than those mined in the previous reporting year. • Steady operations and slightly decreased emissions and energy use at Bridgeport and QBH. For further detail, including Scope 1 and 2 emissions by site over time, see the data tables. New Hope Group 36 Annual Report 2024 New Hope Group Annual Report 2024 New Hope Group emissions and energy use, year on year Indicator Unit of measurement Year to 30 June 2023 Year to 30 June 2022 Year to 30 June 2021 Total Scope 1 and Scope 2 GHG emissions tCO2-e 653,440 823,733 569,223 Scope 1 GHG emissions tCO2-e 595,100 753,651 500,309 Scope 2 GHG emissions tCO2-e 58,456 70,082 68,914 Total energy use Gigajoules (GJ) 3,254,412 3,155,801 3,678,311 Note: Bengalla Mine reported on a 100 per cent basis. Operational GHG emissions intensity Unit of measurement Year to 30 June 2023 Year to 30 June 2022 Year to 30 June 2021 Bengalla Mine tCO2-e/ROMt 0.0545 0.0654 0.0409 New Acland Mine tCO2-e/ROMt 01 0.0140 0.0103 Bridgeport tCO2-e/bbl 0.0630 0.0786 0.0737 QBH tCO2-e/tonnes throughput 0.0013 0.0012 0.0012 1. No coal was produced at New Acland Mine during this period. Note: Bengalla Mine reported on a 100 per cent basis. Jeebropilly Mine is not reported above as it has been under rehabilitation since the 2020 financial year. Emissions intensity includes Scope 1 and Scope 2 emissions. Scope 3 emissions Our major sources of Scope 3 emissions relate to the use of our coal in power stations and other industrial facilities. These downstream Scope 3 emissions represent our customer facilities’ Scope 1 emissions. Over the past two years, we have worked with third-party experts to build our emissions profiles across our facilities, in order to provide meaningful and reasonable estimates. For the year to 30 June 2023, total Scope 3 emissions for the Group are estimated at 27,406,003t C02-e as shown below, For the ‘use of sold products’ category, emissions factors and methods for non- transport purposes from the National Greenhouse and Energy Reporting (Measurement) Determination 2008 have been used. Coal has been assumed to be bituminous coal and combusted as fuel, with energy content of 27 GJ/tonne and emission factor of 90.24 kg CO2-e/GJ. We intend to refine our approach to the collection and reporting of Scope 3 data in future years, including to align with Australian Sustainability Reporting Standards that are expected to require reporting of Scope 3 emissions across all 15 categories of the Greenhouse Gas Protocol. Estimated composition of New Hope Group Scope 3 emissions (ktCO2e), year to 30 June 2023 26,934 368 47 41 16 Use of sold products Downstream transportation and distribution Capital goods Fuel and energy related activities Purchased goods and services Downstream emissions (27.30 Mt CO2e) Total Scope 3 emissions (27.4 Mt CO2e) Upstream emissions (0.10 Mt CO2e) with ‘use of sold products’ accounting for 98 per cent of the total. This estimate has been prepared using five of the Greenhouse Gas Protocol’s (GHG Protocol) 15 categories of Scope 3 emissions, which we determined to be most material to our business based on a significance test. Given the challenges of obtaining complete direct measurements of emissions that are outside of our operational control, for each reported Scope 3 category we have relied on a calculation methodology based on activity data and an applicable emissions factor. Annual Report 2024 New Hope Group 37 Sustainability Report continued Environment continued Reducing GHG emissions As part of its Nationally Determined Contribution under the Paris Agreement, the Australian Government has targeted a 43 per cent reduction in GHG emissions below 2005 levels by 2030 and net zero by 2050. Certain high-emitting facilities are required to progressively reduce Scope 1 emissions by 4.9 per cent per annum to 2030 under the Australian Government’s Safeguard Mechanism. Australian Carbon Credit Units (ACCUs), currently capped at $75 per unit, and Safeguard Mechanism Credit units (tradeable credits generated when facilities reduce emissions below baselines) can be used to meet these obligations, with conditions. From 1 July 2023, under the Safeguard Mechanism, Bengalla has been required to progressively reduce and/or offset Scope 1 emissions against a determined baseline by 4.9 per cent per annum to 2030. This year we lodged an application for a Facility-Specific Emissions-Intensity Determination for Bengalla to reflect revised methodology released by the Australian Government, as well as updated emissions modelling. This application was accepted after the reporting period and will be used to determine emissions reduction requirements based on actual Run-of-mine coal production each year. New Acland is below the current Safeguard Mechanism threshold. Based on current data and modelling, we expect that New Acland’s Scope 1 emissions will continue to remain below the current threshold, even as production expands, due to its GHG emissions profile. GHG reduction initiatives Operational decarbonisation presents a significant challenge for our business. While some incremental emissions reduction initiatives can be implemented, large-scale emission reductions will be more difficult to achieve. As both of our operating mines currently have scheduled lives into the mid to late 2030s, returns of potential emissions reduction investments (both financial and avoided emissions) are limited. Our emissions reduction trajectory is unlikely to be linear, reflecting the time and investment required to plan and implement large-scale emissions reduction initiatives, and that some measures will require sectoral or industry changes that are beyond New Hope’s control. We continue to investigate potential initiatives at our mines to develop a decarbonisation plan. Our planning and assessment include understanding the financial, social and environmental costs and benefits for employing both proven and new or emerging emission reduction methods. Due to New Acland’s GHG emissions profile, we focus our GHG reduction initiatives on opportunities most applicable to Bengalla. Fuel emissions Mining operations are reliant on heavy equipment, including haul trucks, excavators, loaders, graders, water trucks and other equipment. Diesel emissions represented around 31 per cent of Bengalla’s Scope 1 emissions and 100 per cent of New Acland’s Scope 1 emissions in the year to 30 June 2023 (as there was no coal produced at New Acland during this period). We continuously review and update the mine schedule to maximise production and improve efficiency at our mine sites, including to reduce our fuel use and emissions. At Bengalla, we use a fuel management system to understand, analyse and adjust our vehicle movements and maintenance schedule to improve efficiency. In recent years we have implemented initiatives to reduce fuel use, such as truck tray upgrades and changing mine layouts and roadways. We have also investigated trolley- assist haulage and in-put crushing and conveying, and have determined these to be unsuitable for our operations due to the layout of Bengalla, notwithstanding changes made to reduce fuel usage. At present, we have determined there is no alternative-fuelled fleet solution currently commercially available at the scale required to operate Bengalla efficiently, particularly as the existing fleet is relatively new. Nonetheless, we continue to work with equipment manufacturers to understand the feasibility of using alternative fuels for the mining fleet and other equipment on site. Fugitive emissions Fugitive emissions occur when coal is exposed during the mining process, releasing CO2 and methane inherent in the coal seam. The nature and volume of emissions depend on both the coal resource properties and the mining method. At about 63 per cent, fugitive emissions are by far the largest source of Bengalla’s Scope 1 emissions. New Acland’s coal seams have much lower levels than Bengalla, and no coal was produced during the reporting period, so fugitive emissions only represented about 0.001 per cent of its Scope 1 emissions in the year to 30 June 2023. Capturing fugitive emissions is particularly challenging at an open-cut coal mine, where the emissions are diffuse, compared to an underground mine. Even if they can be feasibly implemented, emissions capture projects generally require a medium or long-term time horizon1 to be delivered, given the scale of activity required to design, seek approval for, construct and implement the relevant infrastructure and systems for the drainage, collection and treatment of mine gases. 1. We define time horizons as follows: short-term (up to three years on a rolling basis), medium-term (up to 15 years, approximately reflecting our remaining mine lives under current plans) and long-term (more than 15 years, beyond our current mine plans). New Hope Group 38 Annual Report 2024 This year at Bengalla, we completed a conceptual study on the potential for recovering fugitive emissions that would involve drilling vertical wells to enable fugitive gas extraction. We are now undertaking pre-feasibility assessments. We are also in the early stages of investigating another approach that involves a horizontal in-pit drilling technique used in underground coal mining, with gas extracted at a remote vertical well. Any future fugitive emissions capture project at Bengalla would require regulatory review and approval. New Acland’s GHG emissions profile further limits opportunities for feasible emissions capture projects. Nevertheless, we keep a watching brief on opportunities to reduce Scope 1 and 2 emissions, and regularly undertake assessments of carbon sequestration projects and energy efficiency opportunities that may one day be feasible, based on their cost and suitability to the mine. Electricity use We continue to investigate alternative on-site generation projects, and note we expect our Scope 2 GHG emissions from electricity use to decrease as the overall electricity grid decarbonises. At Bengalla, detailed engineering design is now underway for a modest scale solar PV and battery storage project, to meet on-site power requirements. The available locations within the mining boundary limit the potential to use our land to generate renewable electricity to feed into the grid. Among other factors, any project approved for implementation will be subject to a suitable economic and environmental return, footprint availability and approvals. Work continues on investigations into developing a large-scale, alternate energy facility on land owned by New Hope near New Acland comprising a pumped hydro complex, including on-site solar and wind generation that would take advantage of the site’s topography and location within the Southern Queensland Renewable Energy Zone. It is envisaged the complex would operate alongside mining operations, and continue post-mining to support long-term value creation and local employment opportunities. This year, prefeasibility studies focused on engineering, geotechnical and equipment selection were progressed and are now undergoing peer review. Assuming the conclusions from the initial studies are confirmed, it is anticipated that investigations will progress to conducting a detailed feasibility study and developing scenarios for commercial structuring and financing opportunities. Carbon offsets and credits We have developed a carbon credit strategy for the Group as part of the suite of actions to meet Safeguard Mechanism obligations. The strategy incorporates purchasing ACCUs and considers acquisitions of existing projects and the generation of ACCUs on our existing land. As detailed above, we are investigating a range of initiatives to reduce emissions; however, the timing and viability of realising potential reductions is uncertain. During the year, we purchased ACCUs to satisfy our immediate short-term obligations under the Safeguard Mechanism, which are available for surrender if required. We are also considering carbon sequestration and ACCU generation at our agricultural operations. In particular, we are investigating opportunities to adjust our land management practices at Bengalla Agricultural Company, to potentially increase productivity, as well as soil carbon levels. As part of this project, this year we commenced soil carbon testing. Preliminary results indicate good potential for our land to support a soil carbon sequestration project, and we are undertaking further financial, legal and science-based analysis of such a project. Pending further analysis, we may explore the scalability of these types of projects to additional agricultural land within the Group. Decarbonisation initiatives at Bengalla Mine Scope 1 – Hydrocarbons Scope 1 – Fugitives Scope 2 Scope 1 Implemented Ongoing New haulage routes* Identifying and implementing operational efficiencies to reduce fuel consumption Truck tray upgrades* Fugitive emissions capture Carbon offsets and credits Modest solar PV and battery storage Investigated In-pit crushing and conveying Trolley-assist haulage Alternative-fuelled fleet * Initiatives implemented during the 2023 financial year. Annual Report 2024 New Hope Group 39 Sustainability Report continued Environment continued Contributing to research and development We continue to support research and development through Low Emission Technology Australia (LETA), which invests in technologies to reduce GHG emissions. Contributions to LETA for the 2024 financial year exceeded $660,000 (inclusive of Bengalla’s contribution on a 100 per cent basis). In June 2024, the Queensland Government prohibited carbon capture and storage projects in the Great Artesian Basin. As a result, Bridgeport’s Moonie CO2 Enhanced Oil Recovery Project has been suspended indefinitely. Read more about the project and Bridgeport’s view on the impacts of this policy change on the Bridgeport website. Closure and rehabilitation We progressively rehabilitate mined land towards final land uses outlined in closure and rehabilitation plans approved by relevant government authorities. We work to restore disturbed land and to improve rehabilitation and post-mining land use outcomes by planting vegetation, optimising water drainage and generating productive soil on rehabilitated land. At Bengalla, our rehabilitation efforts are aimed at restoring the land to a combination of pastoral grassland and high-density woody vegetated land, with a total of 328 hectares rehabilitated at Bengalla, including 20 hectares completed this year. High-density woody vegetation continues to be established, in accordance with the approved final landform and rehabilitation objectives, to improve visual amenity for local communities and provide habitat corridors for native fauna as plantings mature. At New Acland, our rehabilitation program returns land to both agricultural and conservation uses, contributing to the region’s agribusiness industry and re-establishing native species. Generally, the areas where mining occurred during New Acland Stages 1 and 2 are being returned to a combination of grazing land and enhanced rehabilitation bio-diverse areas. Stage 3 mining areas will mostly be rehabilitated to grazing and farming land uses. While rehabilitation work continued during care and maintenance, this year we prioritised the restart of operations. Rehabilitation will continue in the coming years as areas become available. Overall, the proportion of land disturbed for mining that has been rehabilitated was 46 per cent as at 31 July 2024. At New Acland, 43 per cent of land disturbed for mining has been rehabilitated, exceeding the Queensland thermal coal mine average of 36 per cent.1 At Bengalla, this ratio was 28 per cent, below the Upper Hunter average of 39 per cent,2 reflecting the mine’s current stage of operations. Disturbed and rehabilitated land as at 31 July 2024 Mine site total Bengalla New Acland Jeebropilly1 Land disturbed for mining activities (ha) 3,921 1,154 1,612 1,155 Land rehabilitated in the year to 31 July 2024 (ha) 20 20 0 0 Cumulative land rehabilitated (ha) 1,812 328 698 786 Proportion of land disturbed for mining that has been rehabilitated (%) 46% 28% 43% 68% 1. New Hope Group divested Jeebropilly Mine in August 2024, shortly after the end of the reporting period. Watch a short video on the rehabilitation underway at New Acland. 1. Queensland Mine Rehabilitation Commissioner 2022-23 Annual Report, pp. 20, available at https://www.qmrc.qld.gov.au/__data/assets/pdf_file/0023/326570/qmrc-2022-23-annual-report.pdf. 2. Upper Hunter Mining Dialogue, Rehabilitation 2022, available at https://miningdialogue.com.au/ project/rehab/results/2022-results. New Hope Group 40 Annual Report 2024 Water use Water is a critical resource for our operations and our communities. Our operations have site-specific water management plans that are reviewed and implemented on an ongoing basis to ensure we responsibly manage water. We continue to monitor our water consumption and needs and look for water efficiency improvements. At Bengalla the main water source is the Hunter River, with the volume of water available to be extracted from the river controlled by water licences. Other sources of water include sediment water run-off from disturbed and rehabilitated areas, water from the mine, including groundwater inflow, and recycled water from the on-site wastewater treatment plant. Where reasonable and feasible, clean water from the undisturbed catchment area is directed away from disturbed areas. To manage rainfall and other inflows to the Bengalla water management system, our main mine water storage and discharge dam provides 700ML of capacity. We hold credits to discharge water into the Hunter River during periods of high flow and flood flow under the Hunter River Salinity Trading Scheme and did not discharge any water under the Scheme in the reporting period. The main water source for Bengalla Agricultural Company is also extraction from the Hunter River, with water licences shared with the mine. Water is used for cropping, stock watering and general pasture management. At New Acland, the main surface water source is rainfall captured in on-site dams. A purpose-built, 45km pipeline also transfers recycled wastewater purchased from Toowoomba Regional Council. This third-party recycled water is used for all production activities, including in the coal handling and preparation plant, and services our neighbouring pastoral operations for crop irrigation and stock water. Acland Pastoral Company also uses this recycled water from Toowoomba Regional Council, and collects rainwater run-off. The ability to draw on recycled water provides the mine with resilience in periods of drought, eliminates the need to draw from natural water sources and provides a revenue stream for the Council. Groundwater is only used for potable water supply and for bathrooms; no groundwater is used for production activities at New Acland. New Acland is authorised to release water via Spring Creek and Lagoon Creek during periods when there is natural flow. No water was released during the year to 31 July 2024. The mine is also authorised to use excess water stored on site for beneficial agricultural purposes at properties adjoining the mine, as long as water quality requirements are met. Given the increased rainfall last year and the existing water reserves on site (including rainfall collected during care and maintenance), it is presently anticipated there are sufficient water reserves stored on the New Acland lease to meet mining and agricultural needs for the coming years. Our Bridgeport oil and gas operations produce a significant amount of water as part of the oil extraction process. The team has undertaken a feasibility study to reuse this water to generate hydrogen alongside its operations at Kenmore in southwest Queensland. Read more here. Water withdrawal by category New Acland1 83% 11% 6% Surface water 1,933ML Groundwater 246ML Third-party water2 139ML Bengalla3 94% 6% Surface water 2,567ML Groundwater 175ML 1. Year to 31 July 2024. 2. Recycled water purchased from Toowoomba Regional Council. 3. Year to 31 December 2023. Annual Report 2024 New Hope Group 41 Sustainability Report continued Environment continued Biodiversity and land use Our landholdings are used for a range of purposes in addition to mining. Our agricultural operations adjacent to both Bengalla and New Acland Mines are used for cropping and cattle grazing, and dairy farming in the case of Bengalla. These productive agricultural businesses also act as a physical separation, to provide a buffer from our operations for our near neighbours. We also own and manage land for biodiversity purposes, to offset ecological disturbance at our mines under both federal and state government requirements. The management of the offset properties is outlined in plans approved by the relevant government bodies. Activities on these properties include managing weed and pest species, maintenance on fencing, controlled burns to manage bushfire risk and ecological surveys to monitor targeted flora and fauna. During the year, we secured new areas to offset the impacts of mining now underway at New Acland Stage 3, as required under our environmental authorities. These areas were to offset impacts on agricultural land and biodiversity. New Acland also manages several conservation zones in areas that will not be disturbed by mining. Like biodiversity offsets, these areas are managed under strict regulatory conditions. At the Bottle Tree Hill conservation zone, we are working towards re-establishing native tree species.1 This year we also started work on a major project within the Lagoon Creek conservation zone, which will see the vegetation corridor along Lagoon Creek widened and more than 3,000 native trees planted in the next decade. Read more on the New Hope website. A 120-year-old bottle tree has found new roots at the entrance of New Acland Read more Cultural heritage management We partner with the traditional custodians of the land where we operate to identify and protect sites of cultural significance. At Bengalla, we have a strong relationship with the Wanaruah Local Aboriginal Land Council (WLALC), with a representative of the WLALC sitting on the Bengalla CCC. We manage cultural heritage in accordance with the approved Aboriginal Cultural Heritage Management Plan. We periodically undertake cultural heritage surveys to ensure accurate information when undertaking ground disturbance activities on both the mining and exploration leases, as well as fulfilling annual reporting requirements. At New Acland, we work with the Western Wakka Wakka People and their endorsed parties to manage cultural heritage, in accordance with the approved Aboriginal Cultural Heritage Management Plan and our First Nations Engagement Framework, detailed in the Communities chapter. While most areas of proposed disturbance within the Stage 3 Project’s boundaries were completed in prior years, our work in this space continues with the assistance of the Western Wakka Wakka People. Watch a short video on how we are enhancing biodiversity at the Lagoon Creek Conservation Zone. 1. This activity at Bottle Tree Hill is pursuant to an Enforceable Undertaking with the Queensland Department of Environment, Science and Innovation. New Hope Group 42 Annual Report 2024 Air quality We monitor air emissions in accordance with Air Quality Management Plans for each coal operation, which reflect state-based legislative and approval requirements. Air emissions are also disclosed through the Australian Government’s National Pollutant Inventory. See the Communities chapter for information about how we manage amenity impacts such as noise and dust. Waste management We work to responsibly manage both regulated and non-regulated waste. This year, we recycled 50 per cent of total waste at our mine sites and QBH, consistent with the prior year. Our sites have management plans that detail requirements for disposal, tracking and reporting of mineral and non-mineral wastes. Where practicable, we seek 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) for recycling with 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 third- party providers. Hazardous non-mineral waste that cannot be reused or recycled is collected and removed for treatment and specialised disposal. Bengalla has an on-site bioremediation facility to treat hydrocarbon contaminated material, reducing the amount of waste that is disposed off site. We also continue to engage with Tyre Stewardship Australia to investigate industry-wide initiatives to recycle tyres. Tailings management At Bengalla, fine reject material is treated, dewatered and placed in specifically identified and engineered locations called ‘reject cells’ within the overburden emplacement area. At Bengalla we do not have any tailings dams or major tailings storage facilities. At New Acland we have in-pit tailings dams, which pose less risk to the environment and community than out- of-pit facilities. We manage the in-pit facilities in accordance with our strict approval requirements. Annual Report 2024 New Hope Group 43 Climate, transition and resilience Sustainability Report continued Thermal coal remains vital to global economic activity and living standards as the largest single source of electricity generation in the world.1 We accept the scientific evidence that greenhouse gas (GHG) emissions are contributing to rising global temperatures and climate change. We also acknowledge the commitments of nations under the Paris Agreement to keep global warming well below 2 degrees Celsius above pre-industrial levels, while pursuing efforts to limit the temperature increase to 1.5 degrees Celsius.2 Achieving these decarbonisation ambitions will be immensely challenging. The use of thermal coal to generate electricity will need to decrease in order to achieve these ambitions. This presents immense risks for our business, but also some opportunities. We acknowledge the interest from shareholders, customers and the community in the role of our business in this complex and evolving landscape. Our strategy New Hope Group’s overarching business strategy is to safely, responsibly and efficiently operate our low-cost, long- life assets, while focusing on disciplined capital management and providing valuable returns to our shareholders. Our strategy is underpinned by: • Our assessment of future demand: Despite forecast declining usage over the coming decades, thermal coal is likely to continue to play a significant role in global energy generation, particularly in Asia, for at least the planned life of our existing mining operations. • Our expertise and experience: Coal mining and marketing are at the core of our business and capabilities and have enabled us to generate competitive returns to shareholders. • The quality of our products: We mostly produce coal that is of a high calorific value as demanded by our customers. These products are generally more energy efficient than lower calorific value coals as a lower volume is required to produce the equivalent amount of energy. We expect high calorific value thermal coal will remain in demand longer than other lower calorific value products. • Low-cost production: As relatively low- cost production assets, with low-strip ratios, the profitability of our mines is expected to be relatively resilient even as overall demand for coal reduces. • Highly-regulated operating environment: We operate in accordance with internal environmental management standards and procedures, as well as the strict state and federal regulatory requirements in place in Australia. • A prudent approach: We carry out progressive rehabilitation of our sites, while maintaining balance sheet strength and making provisions for future closure costs and employee entitlements. In assessing new projects and acquisitions, we maintain a disciplined approach to the deployment of capital. Our strategy allows us to focus on continuing to provide returns to shareholders from our current operations while cautiously assessing the energy landscape for future projects and investments. Climate-related risks and opportunities Climate-related risks, especially transition risks relating to the shift to low or zero emitting sources of energy, are very significant to New Hope as an organisation. There are two key risks fundamental to our future: • Risk of demand decline for our product due to moves away from the use of thermal coal in energy generation, driven by national emissions reduction targets as well as increasing adoption of substitute sources of energy. This is not an immediate short-term risk to our business; however, it is a substantial risk over the longer term beyond the planned life of our existing assets. • Risks to our ability to operate, grow and keep supplying our markets, with substantial public sentiment against thermal coal mining in Australia and national emissions reduction commitments leading to a very challenging legal, policy and approvals landscape. For example, a challenge is underway in the Queensland Land Court seeking to overturn the state government’s approval of New Acland’s Associated Water Licence, which is necessary for New Acland to operate. This follows many years of court challenges and delays before the grant of New Acland’s Stage 3 mining lease in 2022. While this specific court action is not directly related to climate matters, concerns about climate change contribute to negative sentiment and difficulty obtaining approvals. Bengalla is required to progressively reduce Scope 1 emissions under the Australian Government’s Safeguard Mechanism, resulting in additional costs to pursue direct emissions reductions or acquire offsets. There is an ever-present risk of more onerous conditions being applied. 1. IEA (2024), Coal Mid-Year Update – July 2024, IEA, Paris https://www.iea.org/reports/coal-mid-year-update-july-2024, Licence: CC BY 4.0. 2. The Paris Agreement is available at https://unfccc.int/process-and-meetings/the-paris-agreement. New Hope Group 44 Annual Report 2024 Risk and resilience for our current business In assessing the resilience of our current business model, we cautiously assume that the world is on a pathway towards achieving net zero emissions by 2050 – that is, a pathway that limits the rise in global temperatures to 1.5 degrees Celsius above pre-industrial levels (1.5 degree pathway). While there are multiple potential and varying scenarios to limit warming to 1.5 degrees, a 1.5 degree pathway will most likely entail a significant shift away from the use of thermal coal on a global basis over the period leading up to 2050.3 Assuming a significant shift away from the use of thermal coal, we believe the following factors presently support the resilience of our business strategy: • While the world will pivot away from the use of thermal coal, demand in Asia as a region is likely to persist longer than in Europe and the US, where emissions reduction actions are further progressed.4 • Challenges remain to the adoption of alternative energy sources as a complete replacement for thermal coal in the global energy mix.5 • As global demand declines, we expect supply to also be constrained as approvals and funding for mining projects become more difficult, especially in Australia, potentially creating opportunities for suppliers that remain in the market. 3. The IEA models demand for coal in 2050 under its Stated Policies, Announced Pledges and Net Zero Emissions by 2050 Scenarios, at varying levels. Source: IEA (2024), Accelerating Just Transitions for the Coal Sector, IEA, Paris https://www.iea.org/reports/accelerating-just-transitions-for-the-coal-sector, Licence: CC BY 4.0, pp. 17. 4. Demand for coal developing countries including Asia will offset declines in the US and Europe in the short term (IEA (2024), Coal Mid-Year Update – July 2024, IEA, Paris https://www.iea.org/reports/coal-mid-year-update-july-2024, Licence: CC BY 4.0). Further, countries in Asia have a range of net zero emissions pledges, with some pledging to reach net zero emissions by 2050 (Japan, Taiwan, South Korea, Vietnam), and others have longer-term horizons towards achieving net zero emissions (China – 2060, Thailand – 2065, India – 2070). Source: IEA Climate Pledges Explorer. 5. International Energy Agency, WEO Special Report: Accelerating Just Transitions for the Coal Sector, March 2024; IEA (2024), COP28 Tripling Renewable Capacity Pledge, IEA, Paris https://www.iea.org/reports/cop28-tripling-renewable-capacity-pledge, Licence: CC BY 4.0, pp. 43. 6. As noted above, the grant of a key New Acland approval (its Associated Water Licence) is currently subject to challenge. 7. IEA (2024), Coal Mid-Year Update – July 2024, IEA, Paris https://www.iea.org/reports/coal-mid-year-update-july-2024, Licence: CC BY 4.0. 8. IEA (2024), Coal Mid-Year Update – July 2024, IEA, Paris https://www.iea.org/reports/coal-mid-year-update-july-2024, Licence: CC BY 4.0. 9. IEA (2024), Accelerating Just Transitions for the Coal Sector, IEA, Paris https://www.iea.org/reports/accelerating-just-transitions-for-the-coal-sector, Licence: CC BY 4.0, pp. 15. • Bengalla and New Acland both presently hold the necessary state and federal approvals to continue mining until in the mid-2030s6. • Bengalla and New Acland are cost effective operations relative to other producers in the global seaborne thermal coal market due to their low strip ratios, and mostly produce higher calorific value coals, meaning on a rational economic assessment they should be among the last mines to exit the market. Coal demand As noted by the International Energy Agency (IEA) in July 2024, “coal remains the primary global energy source for electricity generation, and increased demand for electricity continues to fuel global coal demand”.7 Global coal demand reached an all-time high in 2023, and is expected to plateau throughout 2024 and 2025, with growth in demand in emerging economies, particularly in Asia, expected to offset declining demand in advanced economies.8 As the IEA states, “since 1980...the decline in the share of coal in electricity generation has been slower than the increase in electricity generation, and the output of coal‐fired electricity has continued to increase. The global fleet of coal‐fired power plants is relatively young, particularly in developing Asia following a surge of capacity additions since the beginning of the century.”9 Annual Report 2024 New Hope Group 45 Sustainability Report continued Climate, transition and resilience continued Future projects and investments In assessing new investments, or in making decisions to expand existing projects or develop new projects, the position we face is increasingly complex and challenging. The potential for expansion exists at both Bengalla and New Acland, if we can have confidence in future demand and obtain the necessary approvals to pursue such projects.1 The exploration area at EL9431, and the West Muswellbrook Assessment Lease (AL19), both to the west of Bengalla, are potential growth opportunities with potential synergies with Bengalla. We expect the case for new or expanded projects will be harder to make as global actions to achieve a 1.5 degree pathway strengthen, and approval conditions on such projects are likely to be increasingly onerous. However, all prospective projects within our existing portfolio are many years away from investment decisions, which will be made in light of our best assessment of demand and prices at the time. In the meantime, we continue to take a prudent approach to investment decisions, seeking to limit capital outlay while maintaining project optionality where possible. Even though we regularly look at new opportunities, in recent years New Hope has been less active than peers in pursuing expansion through acquisition. This in part is reflective of our caution in taking on the extensive rehabilitation liabilities that come with many legacy assets. Our cautious approach has for now left us with a core portfolio of two established low-cost and stable operating assets. Nonetheless, we consider strategic acquisitions and opportunities that are consistent with our risk appetite and present value to shareholders. We also consider alternative uses for our landholdings and assets. One recent investment we have made is of a 19.97 per cent interest in Malabar Resources Limited, which owns the Maxwell Underground Mine near Muswellbrook, currently under development. Approach to risk Our review and management of climate-related risks and opportunities are integrated into our overall Enterprise Risk Management Framework, which provides a holistic overview of risk identification, assessment, management and reporting. Further information regarding our approach to risk management and reporting is set out in our Annual Report and details regarding our Enterprise Risk Management Framework are available in our Corporate Governance Statement. A climate-related risk assessment process is conducted at least annually, guided by the recommendations of the Taskforce on Climate-related Financial Disclosures (TCFD) including consideration of both transitional risks (legal, policy, market, technology and reputational) and physical risks (acute and chronic) to the Group’s activities. Risks are considered against time horizons representing our current operating plans in the short term (up to three years on a rolling basis), medium term (up to 15 years, approximately reflecting our remaining mine lives under current plans) and long term (more than 15 years, beyond our current mine plans). Material climate-related risks are disclosed in the Operating and financial review section of the Directors’ Report. 1. We also hold a number of undeveloped coal assets in Queensland, including the North Surat Coal Project and the Bee Creek tenement. The North Surat Coal Project was impaired in 2023 as detailed in the 2023 Annual Report. New Hope Group 46 Annual Report 2024 The mine has long-dated state and federal approvals and gives us exposure to metallurgical coal, used in steelmaking. The pathway for future returns and resilience is part of the rationale for this investment. Metrics and targets We report on emissions, energy consumption and energy production to the Clean Energy Regulator annually, in accordance with the National Greenhouse and Energy Reporting Scheme, including Scope 1 and Scope 2 GHG emissions on an operational control basis. The Australian Government’s Safeguard Mechanism sets statutory limits on, and reduction requirements for, GHG emissions for any facility that emits more than 100,000 tonnes of carbon dioxide equivalent (tCO2-e) per year. From 1 July 2023, under the Safeguard Mechanism, Bengalla has been required to progressively reduce and/or offset Scope 1 emissions against a determined baseline by 4.9 per cent per annum to 2030. We have not presently adopted targets separate to the Safeguard Mechanism. For further detail about emissions, metrics and targets, see the Environment chapter of the Sustainability Report 2024. Governance New Hope’s Board of Directors is the governance body responsible for overseeing impacts of climate-related matters on business objectives and performance. Specific responsibilities regarding climate and environmental risks are delegated to the Sustainability Committee, which considers these risks to business performance and objectives and provides recommendations to the Board on matters including: • New Hope’s compliance requirements with climate and environmental laws and regulations • the development of Group climate and environmental policies and procedures and alignment with New Hope’s business strategy and objectives • development of New Hope’s sustainability initiatives, governance and reporting with reference to the GRI Coal Sector Standard (GRI-12) • oversight of climate-related disclosure and reporting processes. The Audit and Risk Committee supplements the climate-related responsibilities of the Sustainability Committee by providing oversight of all enterprise risks and risk management processes, including identification and assessment of New Hope’s climate-related risks. The Audit and Risk Committee also provides recommendations to the Board on developing climate-related compliance frameworks that affect the company’s financial reporting, audit and assurance and governance obligations. During the year the Group formed an internal Decarbonisation Working Group, which consists of senior management and specialists across Group functions and divisions. The Decarbonisation Working Group provides a collaborative forum for discussion and development of decarbonisation initiatives and regulatory and compliance developments. Matters discussed within the Decarbonisation Working Group are reported to the Sustainability Committee and Audit and Risk Committee for consideration as appropriate. The Nomination and Remuneration Committee provides recommendations to the Board regarding the assessment of annual performance measures and remuneration incentives for Key Management Personnel, including performance metrics linked to sustainability measures. Further detail is available in the Remuneration Report, within the Annual Report 2024. Further detail about the Board’s oversight role and responsibilities delegated to its independent Committees is set out in our Corporate Governance Statement. We report on emissions, energy consumption and energy production to the Clean Energy Regulator annually, in accordance with the National Greenhouse and Energy Reporting Scheme, including Scope 1 and Scope 2 GHG emissions on an operational control basis. Annual Report 2024 New Hope Group 47 Responsible business conduct Sustainability Report continued New Hope Group’s policies, codes and charters support the conduct of our business in a responsible and ethical manner. Our cornerstone policy is our Code of Conduct, which provides our Directors, Executives, employees and relevant contractors and suppliers with a compass to guide daily decisions and actions. Our employees and relevant contractors undertake periodic training on the Code of Conduct and other policies applicable to their roles. To further enhance our supplier engagement processes and improve our understanding of our supply chain against New Hope’s sustainability priorities, this year we introduced a new supplier onboarding management tool. The tool streamlines our diligence processes and requires new suppliers to provide information on their approach to labour practices, First Nations participation, non-discrimination, health and safety, risk management, environment, anti-bribery and corruption and other statutory compliance matters. Existing suppliers are also being progressively reviewed for compliance with these criteria. We provide mechanisms for our workforce and suppliers to raise concerns about misconduct or other issues without fear of reprisal, dismissal or discriminatory treatment, as outlined in our ‘Speak Up’ (Whistleblower) Policy and reinforced in our Safety and Wellbeing Policy. A key mechanism for raising concerns is a whistleblower hotline, maintained by an independent third party, Stopline. This hotline offers both phone and online lodgement methods, and allows for anonymous disclosures. Further detail about our Governance Framework is provided in our Corporate Governance Statement, published annually in accordance with ASX guidelines. New Hope Group’s key policies, codes and charters are available on the Corporate Governance section of our website at newhopegroup.com.au/corporate- governance. Forced labour and modern slavery Forms of modern slavery, such as forced labour, child labour, debt bondage, servitude, human trafficking and deceptive recruiting for labour or services are a violation of human rights, are not only against Australian law, but also completely at odds with New Hope Group’s Core Values. Our Modern Slavery Policy is built on a foundation of respecting human rights and outlines our stance on these practices. Our ‘Speak Up’ (Whistleblower) Policy also specifically encourages disclosure of any suspected instances of forced labour, human trafficking or slavery-like offences in our operations and supply chains. We obtain contractual assurances and undertakings in relation to our suppliers’ labour practices and review suppliers’ labour practices as part of our supplier onboarding process, and undertake thorough due diligence on selected suppliers. Further detail is available in our Modern Slavery Statement, published annually in accordance with the Modern Slavery Act 2018 (Cth). The next Statement will be released in January 2025. Anti-bribery and corruption Our Anti-Bribery and Corruption Policy prohibits members of our workforce and contractors acting on our behalf from giving or receiving money or other benefits to secure improper influence or benefits. There is no exception for transactions commonly known as ‘facilitation payments’. This year, we worked to update our Anti- Bribery and Corruption Policy to reflect strengthened Australian Government foreign bribery reforms that introduced a ‘failure to prevent foreign bribery’ offence, and conducted an internal review of processes and procedures to identify, address and mitigate foreign bribery risk. Employees in relevant roles undertake regular training on bribery and corruption and we undertake periodic anti-bribery and corruption risk assessments in relation to our business activities. Our Code of Conduct also prohibits giving or receiving gifts over a modest threshold value without approval, and requires all conflicts of interest and potential conflicts of interest involving Directors or employees to be formally declared. New Hope Group 48 Annual Report 2024 There were no confirmed incidents of bribery or corruption involving the Group during the year. Payments to government We make a substantial contribution to federal, state and local governments through taxes, royalties and council rates. See our Tax Transparency Report for more detail. Public policy and political donations New Hope Group is a full member of the Minerals Council of Australia and the Queensland Resources Council, and this year became a founding member of Coal Australia, a not-for-profit membership organisation that promotes the positive contribution of the Australian coal industry. Bengalla Mining Company is a member of the New South Wales Minerals Council. These industry bodies advocate on behalf of their members in the minerals and resources sectors. In general, we support the positions put forward by these associations. From time to time, we also directly contribute to policy development through formal government consultation processes. The New Hope Board must approve any political donations. Any donations are disclosed in line with applicable state and federal requirements. No political donations were made during the year. Privacy and cyber security We regularly review our governance and practices to maintain the integrity and security of confidential information and our technology environment. This year, we started a program to further improve information governance, including a process for regular review of identification, classification and retention to ensure our controls are effective and meet evolving legislative requirements. We work to have appropriate measures in place to detect, respond to and recover from potential attacks or incidents, and ensure our people are aware of and can respond to threats. Our systems and processes include controls to react to third-party incidents. We provide ongoing security awareness training to ensure our people understand how to manage personal information and other privacy and cyber security matters, including to raise awareness of evolving cyber threats our people may encounter both professionally and personally. We have also increased resourcing to address this evolving area. We have also developed an Artificial Intelligence (AI) Policy to educate employees and contractors on the risks associated with using AI, and outline our expectations for how AI is used in connection with our activities and operations. New Hope Group had no reportable privacy data breaches in the year. Compliance Our definition of a reportable non- compliance was updated this year to reflect both GRI-12 and our own New Hope Group standards. New Hope Group’s definition of a Reportable Non-Compliance is as follows: Any confirmed breach of a statutory, regulatory or licence obligation which is sanctionable by fine, penalty, cancellation of a licence (or similar authorisation) or order for cessation or rectification by a government, court or statutory authority. Excluded are breaches of a solely administrative nature where fines or penalties are less than $5,000. In the reporting year, New Hope Group recorded one reportable non-compliance relating to an administrative oversight resulting in a 10-day late submission of an Estimated Rehabilitation Cost application in November 2023. Consequently, on 6 February 2024, the Queensland Department of Science and Innovation (DESI) issued a breach notice to New Acland Mine as it was determined that New Hope Group failed to comply with section 302(2)(b) of the Act. We responded following this notice and DESI subsequently issued New Acland Mine with a breach on 20 February 2024, which included a Penalty Infringement Notice (a PIN) of $3,870. This item has since been resolved. Annual Report 2024 New Hope Group 49 Tax Transparency Report New Hope presents its Tax Transparency Report for the financial year ended 31 July 2024. New Hope’s guiding principle is to operate as a transparent and compliant corporate citizen, ensuring we pay the right amount of tax at the right time. We are committed to assisting our stakeholders to understand our position as a responsible corporate taxpayer that engages constructively with tax authorities. The disclosures in this report are guided by the Board of Taxation’s Tax Transparency Code (TTC), and the Global Reporting Initiative (GRI) Standard 207: Tax 2019. We aim to demonstrate how our core values, strategic vision and robust risk management and governance principals underpin the successful management of our tax affairs. Our contribution In the 2024 financial year, New Hope’s tax contribution to the Australian economy was $393.3 million. This included income tax payments of $193.3 million and state mining royalties of $125.9 million. These contributions were made to both state and federal governments and include income, payroll and fringe benefits taxes as well as mining royalties. These payments are vital to supporting public services, infrastructure and community development across Australia. New Hope takes pride in the contributions it makes to the Australian economy, and we value the role we play in supporting the communities in which we operate. the table on page 51 reconciles the prima facie tax expense for the New Hope tax consolidated group, summarised from Note 4 of the Annual Report 2024. Effective tax rate 2023: 29.6% 31.7% Corporate tax paid 2023: $377.3m $193.3m Coal mining royalties paid 2023: $210.1m $124.3m Tax contributions summary ($000) 2023 Total $652,394 Royalties1 Fringe benefits tax Corporate tax Payroll tax Employee taxes withheld Other taxes, rates and levies 1. Royalties include amounts paid to third-party landholders in line with state legislation requirements. $377,654 $212,613 $37,600 $1,015 $6,881 $16,631 2024 Total $393,251 $193,327 $125,943 $47,413 $2,171 $8,461 $15,936 Approach to tax New Hope’s Code of Conduct and Corporate Governance Framework underpin how we govern our approach to tax. Our core values, purpose and vision are embedded in the framework and form the basis of our robust policies and procedures that determine how we manage our tax affairs. Key principles that guide our approach to tax are: • Compliance – we are compliant with applicable tax legislation in all jurisdictions in which we operate. • Commercial substance – Our transactions have a clear commercial purpose and provide tangible economic benefits, irrespective of tax considerations. • Communication – Maintaining transparent and constructive relationships with tax authorities. New Hope Group 50 Annual Report 2024 Reconciliation of income tax (expense) / benefit to profit before income tax Year ended 2024 $000 2023 $000 Profit before income tax 697,185 1,544,984 Income tax calculated at 30% (2023: 30%) (209,156) (463,495) Tax effect of amounts which are not deductible / (taxable) in calculating taxable income: Loss on sale of financial instruments (1,278) - Derecognition of deferred tax assets on classification as held for sale (8,376) - Net gain from remeasurement of convertible debt - 5,477 Other non-temporary items (94) (462) (218,904) (458,480) (Under) / over provided in prior year (2,426) 898 Income tax (expense) / benefit (221,330) (457,582) Effective tax rate 31.7% 29.6% Tax governance, control and risk management Tax risk is inherent within the complex and evolving legislative environment in which we operate. The New Hope Board is committed to setting and overseeing high standards of corporate governance to ensure compliance to legislative requirements. The Board has delegated oversight to the Audit and Risk Committee (ARC) to identify, assess and mitigate risks in accordance with our Enterprise Risk Management Framework (ERMF) and the ARC Charter. In addition to our ERMF, our Tax Policy outlines our approach to risk management, our internal controls and how tax risks are escalated. As part of managing tax risk, our Tax Policy includes: • Obtaining assurance from external auditors on our Financial Report, which includes tax disclosures as set out in the Financial Statements Note 4: Income tax in our Annual Report 2024. • Applying a pro-active approach to tax risk management by engaging experienced subject-matter tax experts where appropriate. • Interacting with tax authorities professionally, effectively and in a timing manner, in line with our Code of Conduct. Country-by-Country reporting In line with Australian tax legislation, aligned to the OECD transfer pricing guidelines, New Hope prepares a Master File and Country-by-Country (CbC) report annually. These documents provide a high-level overview of our economic activities across jurisdictions, including the allocation of income and taxes paid. New Hope also prepares Local Files for relevant jurisdictions where required, which provide more detail regarding the internation related party dealings relevant to that jurisdiction. International related party dealings New Hope ensures compliance with the Australian and Japanese transfer pricing legislation to prevent the underpayment of tax through international related party dealings that are non-arm’s length. We do this by undertaking an annual review of our international related party dealings. This annual review includes conducting relevant benchmarking studies to ensure that our international related party dealings are conducted using arm’s length pricing, resulting in fair tax outcomes. All international related party dealings are disclosed in our annual Local File in accordance with Australian tax legislation, underscoring our commitment to transparency and responsible tax management. Annual Report 2024 New Hope Group 51 Directors’ Report 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 or up to the date of this report: Robert D. Millner AO Ian M. Williams Thomas C. Millner Todd J. Barlow (resigned 30 June 2024) Jacqueline E. McGill AO Steven R. Boulton Lucia A. Stocker Brent C. A. Smith (commenced 1 July 2024) Principal activities The principal activities of New Hope consisted of the development and operation of coal mines, port handling and logistics, investment in coal mines, agriculture and oil and gas development and production. Highlights • Strong financial performance: – underlying EBITDA1 result of $859.9 million, a decrease of 50.8 per cent (2023: $1,746.6 million), the third highest in the Company’s history – Net profit after tax of $475.9 million, a decrease of 56.2 per cent (2023: $1,087.4 million) • net cash from operating activities of $562.0 million, a decrease of 63.1 per cent (2023: $1,524.8 million), and closing cash and cash equivalents of $638.8 million (2023: $730.7 million) • successful completion of $300.0 million in senior unsecured convertible notes • increase in equity interest in Malabar Resources to 19.97 per cent (2023: 15.0 per cent) • 9.1Mt of saleable coal produced (2023: 7.2Mt), an increase of 26.4 per cent, supported by ramp-up of activities at New Acland and strong performance from Bengalla • 8.7Mt of coal sales, an increase of 14.5 per cent (2023: 7.6Mt) • 2023 fully franked final dividend of $177.5 million, representing 21.0 cents per share, and fully franked special dividend of $76.1 million, representing 9.0 cents per share, paid to shareholders during the period • 2024 fully franked interim dividend of $143.7 million, representing 17.0 cents per share paid to shareholders during the period • New Hope closing share price at 31 July 2024 of $4.87 (2023: $5.31), a decrease of 8.3 per cent. 2024 $000 2023 $000 Statutory revenue 1,802,206 2,754,498 Statutory profit after tax 475,855 1,087,402 Underlying EBITDA1 859,932 1,746,580 Impairment of oil and coal exploration and evaluation assets (5,932) (64,202) Net liquidation related expenses² – (37,783) Net gain from remeasurement of convertible debt – 17,690 Total non-regular items (5,932) (84,295) EBITDA 854,000 1,662,285 Net interest income/(expense) 11,258 24,273 Depreciation and amortisation (168,073) (141,574) Statutory profit before tax 697,185 1,544,984 Net profit before tax and before non-regular items1 703,117 1,629,279 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. 2. Net liquidation related expenses comprise total legal settlement, legal expenses and insurance recoveries. Operating and financial review The operating and financial review for the Group for the financial year is set out on pages 12 to 19, and forms part of this Annual Report 2024. New Hope Group 52 Annual Report 2024 Risk management The Company’s Enterprise Risk Management Framework (ERMF) is key to the Company’s integrated and consistent approach to risk management. It supports the achievement of strategic and operational objectives by identifying and managing threats, and realising potential opportunities, guided by relevant risk appetite. The ERMF is overseen by the Audit and Risk Committee (ARC) and the Sustainability Committee (SC), and the Board of Directors. The ERMF assists the Company to identify, assess, document, report and manage its risks. The ERMF requires that all material risks have a specific documented action plan and mitigation measures, and that updates are periodically provided to the Board of Directors. All risks are assessed at least annually in conjunction with the Sustainability Committee and in consultation with relevant Company Executives and responsible employees. Risks are maintained in asset and business operation-specific risk registers and allocated to an accountable individual who manages and reports on the relevant risks. To effectively embed risk management in our Company and culture, risk management is considered a part of our everyday activities and is key to supporting informed decision making across all levels of the Company. It is integrated with relevant business processes such as strategic and business planning, operational frameworks, environment management, responding to climate change, project management and budget setting. Risk is integrated in strategic and business planning There is ownership of risk at all levels of the business Risk is reviewed and approved Our people understand risk and it supports decision-making Further information regarding how the Company recognises and manages risk is available in our Corporate Governance Statement. Risk category Risk summary Risk management approach Social licence to operate Maintaining social license remains a key risk to the Company with a number of stakeholders have an interest in the impact our operations have on the surrounding environment and the communities in which we operate. The trend of negative sentiment towards the coal industry continues to increase. This risk is exacerbated by the increasing trend of negative sentiment toward the coal industry. The Company is subject to stringent regulation and reporting obligations across state and federal jurisdictions. Failing to comply with these requirements can be detrimental to the Company’s ability to secure stakeholder support. Failing to adequately acknowledge and address the interests of our stakeholders could negatively impact the Company through constraints placed on existing operations and/or compromised ability to secure, maintain or renew the regulatory approvals required to continue operating as planned. Since 2023, the Company’s control approach has continued to improve through the appointment of an additional stakeholder management resource, stakeholder mapping and increased community engagement. The Company continues to maintain its valuable and longstanding relationships with key stakeholder groups. The Company is developing new community needs analyses for its primary operations and engages appropriately proactively and strategically with stakeholder groups. A variety of systems are used to manage and report upon the Company’s performance against relevant obligations, and disclosure against accepted standards as they continue to mature. Directors’ Report Auditor’s independence declaration Financial Report Directors’ declaration Independent Auditor’s Report Shareholder information Resources and reserves Corporate directory Annual Report 2024 New Hope Group 53 Risk category Risk summary Risk management approach Safety and wellbeing There are inherent health and safety risks in the coal mining industry and across the Company’s operations and activities. Critical health and safety hazards facing our workforce include, but are not limited to, working at heights, confined spaces, hot works, vehicle interactions, electric shock, spontaneous combustion, fires, crushing, entanglement, inundation and psycho-social hazards. A continuous improvement philosophy is applied to our health and safety control approach. The health and safety of the Company’s employees, contractors and the communities in which we operate is of the utmost importance. Our core objective is to provide a safe and healthy work environment that ensures all people go home at the end of each day unharmed. This is embedded in our Company Core Values, behaviours and ‘responsible operator’ philosophy. A variety of systems and processes, including the Company’s critical risk program, are applied to prevent harm, promote safety and enhance health across the Company. Standard operating procedures are applied at a site level to manage health and safety risks and regular assurance reviews are undertaken to ensure these controls are applied and working in the manner intended. Health and safety performance is continually measured and reported to the Executive KMP, the Sustainability Committee and the Board of Directors. Environment The nature of the Company’s activities poses potential risks to the environment and cultural heritage. These include: • environmental degradation and pollution such as oil spills, excessive dust emissions, chemical spills, uncontrolled water discharge, carbon/greenhouse gas emissions • impacts on native title and cultural heritage, such as unapproved clearing, operational activities outside of approved boundaries • biodiversity destruction such as impacts to flora and fauna, or failing to adequately rehabilitate and implement closure plans • causing harm to the environment could result in fines and penalties, breach of compliance requirements, increased costs to rectify damage, and damage to our reputation. The Company has strong systems and processes in place at corporate and site levels to manage potential environmental risks. Continuous improvement initiatives are applied to enhance the Company’s environmental culture and practices. The Company is designing and implementing a critical risk program for environmental matters. The Company has implemented an Enterprise Decarbonisation Framework, which sets out processes and accountabilities for carbon reduction initiatives. Environmental performance is continually measured and reported to the Executive KMP, Sustainability Committee and Board of Directors. Inability to expand Bengalla beyond current mine life There may be a shortfall or delay in achieving planned ROM production rate. The increasing trend of negative sentiment towards the coal industry combined with a difficult approvals and regulatory environment may impact our ability to expand Bengalla’s mining area beyond the existing approvals footprint. An inability to extend Bengalla’s Mine life beyond 2037 could see the Company unable to capture value from the expected reserves. The Company continues to apply a rigorous and well- documented due diligence process using a mix of internal and external subject matter experts prior to making any investment decisions. Bengalla Mine’s project budget has been approved and a dedicated project team is in place. The Company regularly reviews its strategic direction in the context of external macro factors. The Company’s approach has continued to evolve over the past 12 months: • a task group focused on extending Bengalla mine life beyond 2037 has been established. • Drilling has commenced on Exploration Licence (EL9431) (to the west of the Bengalla operation) to assess the potential scale and location of future mining areas. • the West Muswellbrook (AL19) tenement, located further to the west of Bengalla Mine, has been acquired by a wholly-owned New Hope entity, with desktop studies commenced to assess potential exploration targets. • engagement has begun with community members and other stakeholders to deepen our understanding of community needs and expectations in the area. Directors’ Report continued New Hope Group 54 Annual Report 2024 Risk category Risk summary Risk management approach New Acland expansion Delivering New Acland Stage 3 in a timely manner remains a material risk for the Company. The project may experience further delays due to a Land Court appeal against the Queensland Government’s decision to grant an Associated Water Licence (AWL). This approval is critical to ensuring that operations can continue at the mine. Concern remains around obtaining all outstanding approvals and the construction of necessary infrastructure to ensure mining can occur as planned, haulage of product coal can continue without substantial disruption, and forecast revenue is not impacted. There may be a delay in achieving required run rate due to rail capacity constraints (externally driven), delays in delivering capital works programs and/or operational constraints (such as dust and noise). This could result in delays to planned revenue, increased costs to address constraints and damage to our reputation. The Company continues to engage with all relevant stakeholders with regards to the Land Court appeal and other outstanding approvals. The government has confirmed that Stage 3 stacks up environmentally, socially and financially. Contingencies are being considered to address potential rail capacity constraints. Detailed project and capital works plans and project budget have been developed and approved. Dedicated project team is in place. Operations activity modelling and studies have been completed to understand potential impacts and efficiently plan operations activity in compliance with approval conditions. Operational performance The ability to achieve our operational targets may be compromised by a range of factors internal and external to the Company: • The Company is highly dependent upon the availability and effectiveness of key infrastructure in order to produce and bring products to market. • A catastrophic plant and equipment failure could disrupt operations for an extended period of time. • A material non-conformance against approval and permit conditions may require operations to shut down while investigations take place and issues are rectified. • Reserves and resources may be below expectations leading to reduced life of mine. • Our key business partners may underperform. These risks have the potential to result in increased costs, delayed or loss of revenue, and damage to our reputation. Our operational framework provides the structure, processes, oversight and assurance to support achievement of operational targets. 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. The Company undertakes timely and effective preventative maintenance as well as regular third-party inspections of key plant and infrastructureto support asset life and minimise the risk of an unforeseen failure. The Company maintains appropriate policies of insurance, including in respect of loss or damage to its assets, general liabilities and business interruption risks. Operating controls are in place to ensure approval and permit conditions are complied with. Geology processes, a drilling program and mine planning processes seek to provide a level of certainty over resources and Ceserves in accordance with JORC Code requirements. M&A/ divestment/ investment If the Company proceeds with a merger, acquisition or divestment without conducting required due diligence and planning, expected benefits may not be realised. This could result in sunk costs, loss of opportunity and damage to our reputation. The Company has increased its shareholding in Malabar Resources and therefore has greater exposure to the Maxwell Mine underperforming against expectations. This could result in a smaller than anticipated return on investment. The Company has a robust strategic planning process in place and any potential merger, acquisition or divestment would be subject to appropriate due diligence and investment decision approval processes. The New Hope CEO is a board member of Malabar Resources and New Hope Executives have conducted Maxwell Mine site visits. An extensive due diligence process has been undertaken on Malabar Resources and performance is continually monitored. 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. The Company has the ability to consider active management of any interest rate and commodity price exposures. 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 Company 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. Directors’ Report Auditor’s independence declaration Financial Report Directors’ declaration Independent Auditor’s Report Shareholder information Resources and reserves Corporate directory Annual Report 2024 New Hope Group 55 Risk category Risk summary Risk management approach Climate change – demand/ market risk Driven by commitments to transition to lower emitting energy sources, demand for thermal coal is likely to reduce over time in key customer markets. This could result in lower prices and loss of opportunity for additional revenue. Further, securing required support from key stakeholders may become increasingly difficult: • the cost of financing and insurance may become prohibitive and constrain operations and/or growth opportunities • suppliers may cease to transact with the Company • skilled personnel may be unavailable to the Company. These potential outcomes could result in increased costs, operational delays and downtime, loss of planned revenue and loss of opportunity for additional revenue. The Company works closely with customers to understand short, medium and long-term demand forecasts, and undertakes scenario analysis to recognise trends and other market signals and their potential impact on the Company. The Company’s primary operations (Bengalla Mine and New Acland Mine) have relatively low costs of production and produce relatively high energy thermal coal, which we expect to remain in demand for remaining asset life, based on current mine plans. The Company regularly reviews its Capital management plans to manage current and future funding requirements. Annual insurance renewal process takes into account changing business needs and physical climate change risks to ensure insurance policies meet requirements. The Company seeks to be transparent regarding climate- related impacts, risks and opportunities in its dealings with stakeholders, and its annual reporting is guided by international international disclosure standards (the Global Reporting Initiative (GRI) Coal Sector Standard (GRI-12) and the Taskforce on Climate-related Financial Disclosures (TCFD). Climate change – supply/ operational risks Evolving climate related regulations and policies (such as emission caps, strengthened carbon pricing mechanisms, stringent/costly conditions and obligations, lengthy approval timelines) may place onerous conditions and/or restrictions on the production and use of fossil fuels impacting the Company’s ability to: • deliver approved production volumes at existing operations • expand existing operations beyond current mine plans • develop new coal projects. This could result in increased costs to meet conditions (such as purchasing offsets to meet decarbonisation targets in the absence of available technology), loss of planned revenue, loss of asset value, and loss of opportunity for additional revenue. The domestic and international policy environment is continually monitored, including social and government appetite for changes that may impact the Company. While the Company has begun exploration and analysis of potential options to expand existing operations beyond current approvals, any new project and any expansion of existing operations would be subject to robust strategic and economic assessment prior to any final investment decision. The Company’s largest assets (Bengalla Mine and New Acland Mine) have existing approvals that allow mining to continue in accordance with mine plans in the medium term without the need for lengthy and costly mine extension approvals. The Company has implemented an Enterprise Decarbonisation Framework, which sets out processes and accountabilities for carbon reduction initiatives including offset acquisition and monitoring of technology developments. Climate change – physical risks Changing climatic conditions (such as extreme weather events, rising temperatures, excessive rain, rising sea levels) have the potential to disrupt the Company’s operations through: • damage to mining, haulage and port infrastructure • restricted access to site • disruption to workforce productivity • impacts to workforce safety. Regular review of relevant geographical climate data (variable annual average rainfall, average temperatures, sea level rise, extreme heat days, extreme fire weather days, extreme rainfall) to understand potential impacts on the Company. Business as usual project and operational processes require ongoing review of the Company’s operating environment to ensure appropriate mitigations are in place to address perceived safety risks and reduce delays and downtime. Opportunities to minimise water usage and to secure alternative, reliable water sources are regularly considered to strengthen resilience to water availability risks. The Company’s Enterprise Risk Management Framework incorporates climate change, business continuity and crisis management planning. Directors’ Report continued New Hope Group 56 Annual Report 2024 Insurance of Officers In accordance with the provisions of the Corporations Act 2001, the Company 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 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 West Moreton The Company previously operated a number of coal mines at West Moreton, near Ipswich in South East Queensland. Following closure of the last of these operations (Jeebropilly) in 2019, the Company progressed with rehabilitation activities and divested some of the land and mining leases. During the period, the Company progressed towards divestment of the remaining West Moreton land assets and subsidiary companies, including the former Jeebropilly mine and its associated mining leases. As at 31 July 2024, the Company was engaged with a buyer to complete due diligence activities required as a condition of the sale and as a consequence, the Company’s West Moreton land assets and subsidiary companies were classified as held for sale as at 31 July 2024. A series of sale transactions with the buyer were fully completed on 30 August 2024 and are treated as a subsequent event in the Company’s 2024 Financial Report. Likely developments and expected results of operations Changes to Accounting Standards – Sustainability The Australian Accounting Standards Board released an exposure draft on Sustainability Reporting Standards – Disclosure of Climate- related Financial Information in October 2023. The Australian Government subsequently released draft legislation for large businesses and other entities in January 2024, which was subsequently passed in August 2024. The sustainability reporting standards will apply to New Hope for financial reporting periods commencing 1 August 2025. The Company continues to monitor updates to the Australian sustainability reporting framework and is well positioned to align its future reporting to any such regime. Since 2017, the Company has published an annual Sustainability Report which has reported against various environmental, social and governance metrics. The Sustainability Report is provided as a section within this Annual Report. Corporate Governance Statement The Company’s Corporate Governance Statement can be accessed on the New Hope Corporation website at: https://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 accessed on the New Hope Corporation website at: https://newhopegroup.com.au/corporate-governance Environmental compliance During the 2024 financial year, the Company received one Penalty Infringement Notice from the Queensland Department of Environment Science and Innovation. New Acland’s Environment Rehabilitation submission was submitted 10 days late. The financial penalty was $3,870. Directors’ Report Auditor’s independence declaration Financial Report Directors’ declaration Independent Auditor’s Report Shareholder information Resources and reserves Corporate directory Annual Report 2024 New Hope Group 57 Board of Directors Robert D. Millner AO Non-Executive Chairman Experience Robert D. Millner AO is Chairman of the associate company, Washington H. Soul Pattinson and Company Limited (Soul Patts). Robert joined the Board of New Hope on 1 December 1995 and was appointed Chairman on 27 November 1998. Robert has extensive experience in the investment industry. Additionally, he was included in the King’s Honours announced 12 June 2023 for his contributions to business, rugby union as an administrator, and philanthropic efforts in the community. 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 Telecom Limited – Appointed 2020 • Tuas Limited – Appointed 2020 • Aeris Resources Limited – Appointed 2022 Former listed directorships in the last three years • Milton Corporation Limited – Appointed 1998, ceased October 2021 Special responsibilities • Chair of the Board Interests in shares and options • 6,222,774 ordinary shares in New Hope (comprising 279,559 shares directly held and 5,943,215 shares held through family related interests). • Nil options or performance rights over ordinary shares in New Hope Corporation Limited. Ian M. Williams Independent Non-Executive Director Experience Ian M. Williams joined the Board as an Independent Non-Executive Director of New Hope on 1 November 2012. Ian is Chair of ASX-listed Lindsay Australia and NEX Building Group, and a Director of Spicers Paper, Softbank Robotics Australia, Stoddard Group, National Group and Baseball Australia and Vice- President of the Australia Japan Business Co-operation Committee. Ian is an experienced Non-Executive Director. He was a Partner of international law firms Herbert Smith Freehills and Ashurst for 20 years. Ian holds a Bachelor’s degree in Economics and Law from Sydney University, and a Post-Graduate Diploma from Oxford University in Politics, Philosophy and Economics. He is also a graduate from the Australian Institute of Company Directors, and represented both Australia and Japan in rugby union. Ian has written extensively on Japan-Australia business and investment relationships, and in 2016 was awarded Japanese Foreign Minister’s Commendation for service to the Japan-Australia relationship in business and sport. Other current listed directorships • Lindsay Australia Limited – Appointed September 2021 Former listed directorships in the last three years • KGL Resources Limited – Appointed June 2022, ceased November 2022 Special responsibilities • Chair of the Audit and Risk Committee • Member of the Sustainability Committee • Member of Remuneration and Nomination Committee • Chair of New Hope Japan KK Interests in shares and options • 10,000 ordinary shares in New Hope. • Nil options or performance rights over ordinary shares in New Hope Corporation Limited. Directors’ Report continued New Hope Group 58 Annual Report 2024 Thomas C. Millner Non-Executive Director Experience Thomas C. Millner joined the Board as a Non-Executive Director of New Hope in 2015. Tom is Director and Portfolio Manager of Contact Asset Management and has over 20 years’ experience in investment markets and Portfolio Management. Tom has over 13 years’ experience as a Director of Australian public companies. He is Portfolio Manager of BKI Investment Company (BKI.ASX) and has been deeply involved in the company since BKI listed on the ASX in 2003. Tom was a Non-Executive Director of Washington H. Soul Pattinson and Company Limited (SOL.ASX) for 13 years, retiring in December 2023. Tom has a Bachelor of Industrial Design degree from the University of Newcastle, a Graduate Diploma in Applied Finance from FINSIA and is a Fellow of the Financial Services Institute of Australasia and graduate of the Australian Institute of Company Directors. Other current listed directorships • Nil Former listed directorships in the last three years • Washington H. Soul Pattinson and Company Limited – Appointed 2011, ceased December 2023 Special responsibilities • Nil Interests in shares and options • 5,874,368 ordinary shares in New Hope (comprising 21,153 shares directly held and 5,853,215 shares held through family related interests). • Nil options or performance rights over ordinary shares in New Hope Corporation Limited. Jacqueline E. McGill AO Independent Non-Executive Director Experience Jacqui E. McGill AO joined the Board as a Non-Executive Director of New Hope on 22 June 2020. Jacqui has significant executive experience in the resources sector and is a highly accomplished Executive and Non-Executive Director with a career spanning over 35 years across a range of commodities. During her executive career, Jacqui held senior leadership roles with BHP, including in BHP Mitsui Coal and Olympic Dam Corporation, as well as other senior leadership roles in BHP’s copper, uranium and iron ore divisions. Jacqui 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 listing recognising her services for diversity and inclusion. Other current listed directorships • Mineral Resources – Appointed February 2024 • 29Metals – Appointed July 2021 • Gold Fields Limited – Appointed November 2021 Former listed directorships in the last three years • Nil Special responsibilities • Chair of the Sustainability Committee • Member of the Audit and Risk Committee • Member of Nomination and Remuneration Committee Interests in shares and options • 80,000 ordinary shares in New Hope. • Nil options or performance rights over ordinary shares in New Hope Corporation Limited. Directors’ Report Auditor’s independence declaration Financial Report Directors’ declaration Independent Auditor’s Report Shareholder information Resources and reserves Corporate directory Annual Report 2024 New Hope Group 59 Steven R. Boulton Independent Non-Executive Director Experience Steven R. Boulton joined the Board as an Independent Non-Executive Director of New Hope on 29 July 2022. Steven is an accomplished CEO and board Director with more than 40 years of experience in infrastructure, investments/funds management and asset management sectors. Steven has served on more than 20 boards during his career, and is currently a Director of the Tri-Star Group. Steven has a Graduate Diploma in Applied Corporate Governance from the Governance Institute of of Australia, a bachelor of Business (Business Management & HR Management) degree and a Master of Technology Management from Griffith University. Steven 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 • Chair of the Nomination and Remuneration Committee • Member of the Audit and Risk Committee Interests in shares and options • 10,000 ordinary shares in New Hope. • Nil options or performance rights over ordinary shares in New Hope. Lucia A. Stocker Independent Non-Executive Director Experience Lucia A. Stocker joined the Board as an Independent Non-Executive Director of New Hope on 1 February 2023. Lucy is a highly recognised industry leader who has over 30 years’ combined experience of mining, engineering and strategic planning, as well as founding and operating a successful privately owned agricultural business. She is currently an independent consultant and has previously been a Non-Executive Director of Perth NRM. Lucy holds a Master of Business Administration (Technology Management) from Deakin University, Bachelor of Engineering (Mining) Honours from the University of Wollongong and is a graduate of the Australian Institute of Company Directors. Other current listed directorships • Nil Former listed directorships in the last three years • Nil Special responsibilities • Member of the Sustainability Committee Interests in shares and options • 20,000 ordinary shares in New Hope. • Nil options or performance rights over ordinary shares in New Hope. Board of Directors continued Directors’ Report continued New Hope Group 60 Annual Report 2024 Brent C. A. Smith Non-Executive Director Experience Brent C. A. Smith joined the Board as a Non-Executive Director of New Hope on 1 July 2024. Brent is an Executive Director – Strategic Investments and Private Equity of Washington H. Soul Pattinson and Company Limited (SOL.ASX) and has over 20 years’ experience in senior investment and leadership roles with experience in the mining and energy sectors. Brent holds a Bachelor of Business from the University of Technology Sydney and a Graduate Diploma of Applied Finance and Investment from the Financial Services Institute of Australasia. Other current listed directorships • Nil Former listed directorships in the last three years • Heritage Brands – Appointed 2019, resigned March 2023 Special responsibilities • Nil Interests in shares and options • Nil ordinary shares in New Hope. • Nil options or performance rights over ordinary shares in New Hope. Directors’ Report Auditor’s independence declaration Financial Report Directors’ declaration Independent Auditor’s Report Shareholder information Resources and reserves Corporate directory Directors who ceased during the financial year Todd J. Barlow was a Non-Executive Director from 22 April 2015 to 30 June 2024. At the end of the 2024 financial year, Todd’s interests in shares and options was 19,900 ordinary shares in New Hope and nil options or performance rights over ordinary shares in New Hope. Annual Report 2024 New Hope Group 61 Robert J. Bishop Chief Executive Officer Experience Robert J. Bishop was appointed as the Chief Executive Officer of New Hope on 14 February 2022. Robert has over 20 years’ experience in finance and Executive leadership roles across the resources and manufacturing sectors. This includes two years as Chief Financial Officer at AMCI prior to joining New Hope Corporation along with senior leadership roles at Vale Australia’s coal division. Robert joined New Hope as General Manager Corporate Development in 2019, and was subsequently appointed as the Chief Financial Officer in October 2020 prior to his CEO appointment. Robert holds a Bachelor of Commerce from the University of Queensland and Bachelor of Business – Marketing from the Queensland University of Technology. Rebecca S. Rinaldi Chief Financial Officer Experience Rebecca S. Rinaldi was appointed as the Chief Financial Officer of New Hope on 14 February 2022 after joining the Company in 2021. Rebecca oversees the Company’s finance, procurement, technology and internal audit functions. Rebecca’s experience includes over 20 years as a chartered accountant and a variety of senior financial management roles at Stanmore Resources, Senex Energy and Vale. Rebecca holds a Bachelor of Business (Accounting) from the Queensland University of Technology and is a member of Chartered Accountants Australia and New Zealand. Dominic H. O’Brien Executive General Manager and Company Secretary Experience Dominic H. O’Brien joined New Hope on 1 December 2020 and was appointed as Executive General Manager and Company Secretary on 1 February 2022. Dominic oversees the Company’s People, Legal, Company Secretary, Corporate Affairs and Health and Safety functions. Dominic’s experience includes 23 years as a legal practitioner and a variety of senior management roles at Allens Lawyers, MIM Holdings, Xstrata and Peabody Energy. He 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. Directors’ Report continued Executive Leadership Team New Hope Group 62 Annual Report 2024 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 table below outlines the names and positions held by the Company’s KMP during the 2024 financial year, including designation as either Director or Executive KMP. Name Positions held Commenced Ceased Directors Robert D. Millner AO Non-Executive Director Chair 01 Dec 1995 27 Nov 1998 Ian M. Williams Independent Non-Executive Director Chair of the Audit and Risk Committee Chair of Controlled Subsidiary 01 Nov 2012 25 Nov 2019 02 Sep 2019 Todd J. Barlow Non-Executive Director 22 Apr 2015 30 Jun 2024 Thomas C. Millner Non-Executive Director 16 Dec 2015 Jacqueline E. McGill AO Independent Non-Executive Director Chair of the Sustainability Committee 22 Jun 2020 17 Nov 2020 Steven R. Boulton Independent Non-Executive Director Chair of the Nomination and Remuneration Committee 29 July 2022 22 Jun 2023 Lucia A. Stocker Independent Non-Executive Director 01 Feb 2023 Brent C. A. Smith Non-Executive Director 01 July 2024 Executive KMP Robert J. Bishop Chief Executive Officer (CEO) 14 Feb 2022 Rebecca S. Rinaldi Chief Financial Officer (CFO) 14 Feb 2022 Dominic H. O’Brien Executive General Manager (EGM) Company Secretary (CoSec) 01 Feb 2022 01 Feb 2022 Directors’ Report Auditor’s independence declaration Financial Report Directors’ declaration Independent Auditor’s Report Shareholder information Resources and reserves Corporate directory Annual Report 2024 New Hope Group 63 Remuneration governance Identifying and retaining high-calibre Directors and Executive KMP with appropriate experience and capability are primary drivers of Company performance. Developing an appropriate remuneration strategy which supports an attractive employee value proposition is a key factor in ensuring employees are engaged and motivated to perform over the long term. The section below outlines the Company’s governance practices that underpin how the Board determines the remuneration of KMP, including describing the role of the Board’s Nomination and Remuneration Committee (NRC). Remuneration governance Company remuneration objectives Aligned to the Company’s Vision, Purpose and Core Values Attract quality Directors and Executives Deliver the Group’s short-term objectives Deliver sustainable and long-term shareholder value Seek and consider advice from a wide range of sources Shareholders External remuneration consultants Other experts and independent consultants Legal advisors Management Independent surveys reviews, market information and reports Advice from other experts and independent consultants will typically cover Non-Executive Director fees, KMP remuneration, pay structures and equity plans Objectives Provides recommendations on the Board’s membership and performance Provides recommendations on the Company’s policy and practices The NRC is authorised by the Board to: perform the activities required to discharge its responsibilities to the Board determine the terms of engagement of any advisers it deems necessary unrestricted access to Company officers and Executives, including requiring their attendance at NRC meetings 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 maintaining overall responsibility and approval for the KMP remuneration, it delegates oversight to the NRC to regularly review, report and make recommendations to the Board in relation to remuneration Nomination and Remuneration Committee The Company 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, the Chair of the Nomination and Remuneration Committee will always have oversight of interactions between independent consultants and management. The Board confirms that remuneration recommendations made during the 2024 financial year were made free from undue influence. Review of remuneration arrangements The Company conducts an annual review of remuneration levels, taking into account both Company performance and individual achievements. This review process is designed to ensure that our remuneration practices remain competitive and aligned with market trends, particularly in the context of external market conditions such as job market shifts and wage growth. In order to align with the market changes, we engage in remuneration benchmarking against other ASX-listed companies. These benchmarking exercises help us stay in line with industry standards and ensure that our remuneration packages are reflective of market conditions. Additionally, regular reviews incorporate an evaluation of individual performance, role responsibilities and the experience of our KMP. Company performance is also a critical component of our remuneration framework. We focus on how performance drives shareholder value and organisational resilience, ensuring that Executive remuneration is directly linked to the Company’s success and long-term value creation for our shareholders. During the 2024 financial year, the Board conducted the annual review of Executive KMP Total Fixed Remuneration (TFR). Independent remuneration advisers, Godfrey Remuneration Group Pty Ltd (GRG), provided information regarding Executive KMP remuneration, administration of incentive plans, and statutory reporting and disclosures. Total professional fees paid (excluding GST) were $4,400. Directors’ Report continued New Hope Group 64 Annual Report 2024 Remuneration Report continued The changes made to Executive KMP TFR were approved by the Board and were the result of a detailed annual review process carried out in the manner described above, including a benchmarking analysis considering market data information provided by GRG and publicly available industry peer information. The reviewed Executive KMP TFR amounts are intended to ensure the market competitiveness of the Company’s remuneration practices for its Executive KMP. The reviewed Executive KMP TFR amounts, effective from 1 February 2024, are as follows: Executive KMP Previous TFR $ Reviewed TFR $ Robert J. Bishop 1,207,107 1,325,078 Rebecca S. Rinaldi 652,107 714,578 Dominic H. O’Brien 652,107 730,195 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 prior written approval strictly in accordance with the Policy. In addition to guidance on insider 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 at https://newhopegroup.com.au/corporate-governance. Employment contracts Written 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 77 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 outlined below. Name Term of agreement and notice period1 Base remuneration plus superannuation Termination payments2 Executive KMP Robert J. Bishop No fixed term | 6-month notice period 1,325,0783 6 months’ base remuneration Rebecca S. Rinaldi No fixed term | 3-month notice period 714,5783 3 months’ base remuneration Dominic H. O’Brien No fixed term | 3-month notice period 730,1953 3 months’ base remuneration 1. This notice period applies equally to both 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 2024 and is reviewed annually by the Nomination and Remuneration Committee. 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 $2,250,000 per financial year and was approved by shareholders on 23 November 2023. In the 2024 financial year, the aggregate amount expended for Non-Executive Directors’ remuneration was 70 per cent of this limit. 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 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 Sustainability Committee, Nomination and Remuneration Committee and Audit and Risk Committee. Directors’ Report Auditor’s independence declaration Financial Report Directors’ declaration Independent Auditor’s Report Shareholder information Resources and reserves Corporate directory Annual Report 2024 New Hope Group 65 Fees paid to Non-Executive Directors are set out in the table below. Board $ Audit and Risk Committee $ Sustainability Committee $ Nomination and Remuneration Committee $ Controlled subsidiary $ 20241 Chair 313,032 47,193 39,836 37,865 22,208 Member 161,010 27,760 28,871 19,988 N/A 20232 Chair 243,192 55,271 17,420 N/A 33,163 Member 143,704 11,054 11,054 N/A N/A 1. On 1 July 2024, the superannuation guarantee percentage increased from 11.0 per cent to 11.5 per cent. 2024 fees include this increase for one month of the 2024 financial year. 2. On 1 July 2023, the superannuation guarantee percentage increased from 10.5 per cent to 11.0 per cent. 2023 fees include this increase for one month of the 2023 financial year. Remuneration structure – Executive KMP The following table summarises the Company’s policy and framework regarding Executive KMP remuneration. Total Fixed Remuneration (TFR) Short-Term Incentive (STI) Long-Term Incentive (LTI) Purpose Attract, motivate and retain Executive KMP with the appropriate experience and capabilities to deliver our Vision, Purpose and Strategy 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. 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 and the Executive KMP to drive the creation of long-term value. 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 utilisation of scorecards, which include strategic annual objectives linking individual and Company performance. Performance hurdles are set by the Board over three-year periods to deliver sustained shareholder value. Performance measures Individual accountabilities that support the execution of the Company’s strategy. The Executive KMP receive a fixed amount, which is recommended annually by the Nomination and Remuneration Committee and approved by the Board. Gateways to performance assessment include: • nil fatalities • nil serious environmental harm • nil serious cultural heritage harm • capacity to pay determined by the Board considering EBITDA outcomes, dividends paid and the Company’s Capital Management Plan. Individual performance indicators are based upon the short-term requirements of the role and the Company. Company KPIs link performance to achievement of the short-term strategy and objectives. For the 2024 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 a comparative index • comparative cost control performance assessed by measuring ranking in the top 40 thermal coal mines in Australia • execution of strategic, capital management and environment, social and governance (ESG) objectives assessed by the Board • risk management and safety and wellbeing 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. Delivery Competitive market-based fixed remuneration comprising base salary, superannuation and other non-cash benefits. Awards are payable 50 per cent in cash following the release of the annual financial results upon the Company gateway and Company and individual KPIs being achieved. The balance (50 per cent) of award value is delivered in restricted rights that can be exercised into ordinary shares upon satisfying a 12-month service condition. Delivered in performance rights that can be exercised into ordinary shares upon meeting required performance hurdles and satisfying the requisite service conditions over the performance period. Directors’ Report continued New Hope Group 66 Annual Report 2024 Remuneration Report continued Total Fixed Remuneration structure TFR is based on the position, scope and leadership accountability of the Executive 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 that drive Company success • provide flexibility to the Company to actively manage the way it remunerates and incentivises Executive KMP • 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 2024 financial year. CEO Other KMP 27% 46% 27% 37% 39% 24% Fixed TFR STI – At risk LTI – At risk Directors’ Report Auditor’s independence declaration Financial Report Directors’ declaration Independent Auditor’s Report Shareholder information Resources and reserves Corporate directory Annual Report 2024 New Hope Group 67 Variable Executive KMP remuneration – Short-Term Incentives Aspect Description Form of award Awards are delivered 50 per cent in cash and 50 per cent as restricted rights with vesting deferred for 12 months, subject to meeting a minimum service condition. Performance period The Company’s financial year (12 months). STI opportunity The target and maximum awards payable for Executive KMP are outlined below: Opportunity as a % of TFR Target Stretch CEO 60% 90% Other Executive KMP 60% 90% Award determination and payment The 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. 50 per cent of the determined STI award will generally be paid in cash in the month of October following the end of the performance period, with the balance granted as restricted rights with vesting deferred for 12 months, subject to meeting a minimum service condition. Gate To enable the award and payment of STI to Executive KMP, key financial and non-financial gateways must be satisfied. The gateways are: • nil fatalities • nil serious environmental harm • nil serious cultural heritage harm • capacity to pay determined by the Board considering EBITDA outcomes, dividends paid and the Company’s Capital Management Plan. 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 some 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. Dividend and voting entitlements Restricted rights carry no entitlement to voting prior to being exercised into ordinary shares. At the time restricted 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 Awards vest pro-rata relative to the proportion of the performance 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 holistic Company performance referencing Group financial, cost, production, safety, wellbeing, risk and controls, environment and community measures. The individual KPIs include specific safety, operational, capital management and strategic measures in addition to the level of demonstration of the Company’s Core Values and behaviours. KPI components are weighted. Directors’ Report continued New Hope Group 68 Annual Report 2024 Remuneration Report continued Short-Term Incentive outcomes – link to performance Summary of 2024 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 holistic to the Company’s activities and are specified at a Company and individual level. Targets are determined annually at levels that appropriately represent improved performance over prior periods, and drive actions and initiatives that provide continuous improvement outcomes. Stretch is set at levels that would represent material improvement. An outline of the relevant range of measures is set out below. 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’s attention on delivering against short-term goals that underpin the success of the Company. Target weighting Outcome Category Measure Description Threshold Target Stretch Non-financial Health, Safety, Environment & Community 18.40% Rewards continuous improvement on HSEC performance measured through a balance of lead and lag indicators. Indicators include frequency and potential/severity analysis of all injuries, hazard identification and reduction, safety and wellbeing critical controls maturity, environmental incidents, and non-vexatious community complaints. Initiatives designed to improve HSEC performance and effectiveness of actions are also considered. Risk, audit and controls 13.60% Rewards effective mitigation of existing risks and detection of 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 16% Rewards improvement to earnings. Group cost/tonne 16% Rewards improvement to cost management. Overburden (Prime) 8% Rewards improvement to mine planning. Group production 8% Rewards improvement to production. Total Company performance 80% 43% Individual measures assess the efforts and effectiveness of actions and outcomes of Executive KMP on improvement in strategy, culture and people, diversity and inclusion, safety, risk management, sustainability, financial stability and value creation. Outcome Executive KMP Target weightings Threshold Target Stretch Robert J. Bishop 20% Rebecca S. Rinaldi 20% Dominic H. O’Brien 20% Directors’ Report Auditor’s independence declaration Financial Report Directors’ declaration Independent Auditor’s Report Shareholder information Resources and reserves Corporate directory Annual Report 2024 New Hope Group 69 Summary of Company financial performance A snapshot of Company key performance indicators for the past five financial years is set out below: Performance measure 2024 2023 2022 2021 2020 Revenue ($m) 1,802 2,754 2,552 1,048 1,084 Underlying EBITDA ($m)1 860 1,747 1,556 279 (55) Net profit/(loss) after tax ($m) 476 1,087 983 79 (157) Share price at year end (dollars per share) 4.87 5.31 4.39 2.00 1.31 Basic Earnings per share (EPS) 56.3 126.0 118.1 9.5 (18.9) Diluted EPS 56.1 118.6 106.0 9.5 (18.9) Shareholder dividends paid (cents per share) 47 96 37 4 15 TRIFR 5.32 2.12 2.60 5.41 5.93 AIFR2 32.60 27.10 29.72 – – Saleable production (Mt) 9.1 7.2 7.9 9.6 11.3 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. 2. The Company commenced tracking AIFR in 2022 financial year. 2024 financial year performance commentary Group safety performance measured by All Injury Frequency Rate and high potential incidents and events frequency rate declined during the period. This was despite improvement in leading indicator performance designed to improve safety and wellbeing performance outcomes. The nature and severity of safety and wellbeing incident outcomes have been carefully examined with determined actions and change management targeting improved performance outcomes being implemented where required. Learnings from high potential incidents and events have been shared across the Group through quarterly lessons learned forums and Safety and Wellbeing Committee meetings. Across the Group, there was increased focus year on year on safety and wellbeing critical controls with targeted objectives and actions to improve critical risk controls and practices demonstrating further maturation. Environmental incident frequency increased year on year; however, no critical incidents occurred. Community engagement activities and support increased during the 2024 financial year; however, the total community complaints increased marginally. The Nomination and Remuneration Committee recommended, and the Board agreed, that targeted health, safety, environment and community performance was not achieved, other than for safety and wellbeing critical controls maturity objectives. Targeted improvements in risk management practices and maturity were achieved. The Enterprise Risk Management Framework and Risk Appetite Statement were reviewed. All risk registers underwent further comprehensive review with additional topic-specific risk registers created where risk potential applies across the Group. Reporting of risk planning and actions to the Board further matured during the period. Measured cyber risk test outcomes achieved target. Audit actions for critical risk items were implemented as per plans save for three specific items relating to corporate systems where delays to implementation have been influenced by external factors. The Nomination and Remuneration Committee recommended, and the Board agreed, that overall risk, audit and controls performance was marginally below target. Group financial KPI outcomes were partly impacted by logistics disruptions and weather events during the last quarter as detailed elsewhere in this report. These disruptions resulted in lower saleable production of approximately 0.27Mt based on the number of hours the CHPP was shut due to being stock bound, with the final result over the threshold but below target. The lower saleable production also impacted average unit costs performance resulting in a failure to meet threshold. The EBITDA outcome was also impacted with the final result over threshold but below target. Overburden removal was greater than target reflecting management’s decision to pivot to advancing overburden removal when faced with downstream logistics impediments in the last quarter. While downstream logistics impediments were mostly uncontrollable, the relative impact was determined to be immaterial and no adjustment was made to the KPI measures or actual outcomes when considering STI outcomes. Consequently, the Nomination and Remuneration Committee recommended, and the Board agreed, that the overall financial performance measures were mid-way between threshold and target. Directors’ Report continued New Hope Group 70 Annual Report 2024 Remuneration Report continued 2024 performance highlights Consistent with the approach in the previous financial year, the Board established holisitic improvement objectives across a range of business functions and activities targeted towards operational, strategic, risk management, capital management, employee and community engagement priorities. Accountability for delivery rested with the CEO, with specific areas of responsibility delegated to Executive KMP and other senior management roles. The collective actions and achievements of management and the Company are detailed elsewhere in this report, but notable achievements in strategic priority areas include: • significant ongoing improvement in safety and wellbeing leading activities and reporting • improved critical controls activities and further matured risk management practices • executed New Acland Stage 3 mining activity ramp-up to plan with productions targets exceeded • increased strategic investment in Malabar to 19.97% • undertook mitigation actions to reduce adverse operational impact on-site at Bengalla throughout a period of irregular and unpredictable downstream logistics interruptions due to rail outages and protestor activity • disciplined cost control at Bengalla despite ongoing inflationary pressures • record total prime waste and total material moved at Bengalla providing a strong foundation for increasing future output, managing planned dragline outages for maintenance and business resilience to future operational challenges • successful execution of the 13.4Mtpa Bengalla Growth Project objectives, including achieving steady state targeted production ahead of schedule • acquisition of AL19, which, together with EL9431, provides optionality for extending the life of and production area of Bengalla • successfully executed all capital management objectives • successful $300 million convertible bond capital raise providing increased financial flexibility. The Nomination and Remuneration Committee recommended, and the Board agreed, that targeted individual performance objectives were met or exceeded. 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 KMP STI awards in relation to the 2024 financial year: Of target STI Executive KMP STI target $ STI maximum $ STI payable $ Cash benefit $ Restricted rights1 STI payable % of TFR STI forfeited $ STI forfeited % Robert J. Bishop 796,567 1,194,850 500,690 250,345 51,201 38% 295,877 37% Rebecca S. Rinaldi 430,267 645,400 270,448 135,224 27,656 38% 159,819 37% Dominic H. O’Brien 439,637 659,456 298,320 149,160 30,506 41% 141,317 32% 1. The share price used to calculate the grant of restricted rights was based on a volume weighted average price (VWAP) of $4.8894 over the 20 trading days preceding 1 August 2024. Variable Executive KMP remuneration – Long-Term Incentives Aspect Description Instrument LTI is delivered in performance rights that 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’ that 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 Executive KMP for the 2024 financial year are outlined below: Opportunity as a % of TFR Target Stretch CEO 95% 190% Other Executive KMP 60% 120% Grant frequency LTI is granted annually. Directors’ Report Auditor’s independence declaration Financial Report Directors’ declaration Independent Auditor’s Report Shareholder information Resources and reserves Corporate directory Annual Report 2024 New Hope Group 71 Aspect Description Grant calculation The number of rights in each tranche of LTI to be granted are calculated as follows: Number of rights = Total Fixed Remuneration (TFR) x LTI % ÷ 20-day volume weighted average price (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 VWAP of $5.0561 over the 20 trading days preceding 1 August 2023. Measurement period In respect of the 2024 financial year awards, three financial years from 1 August 2023 to 31 July 2026. Service period The Executive KMP must remain an employee of the Company during the measurement period to be eligible for LTI award vesting. Performance conditions The performance conditions are holistic to the Company’s activities. Targets are determined at levels that appropriately represent improved performance over prior periods, to drive actions and initiatives that provide continuous improvement outcomes. Stretch is set at levels that would represent material improvement. 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. For 2024 financial year LTI grants, the following performance conditions apply: Tranche 1 performance rights (55 per cent weighting at target) are subject to a Total Shareholder Return (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 100% Between target and stretch > P50 & < P75 Pro-rata Target P50 50% Below target < P50 0% Tranche 2 performance rights (15 per cent weighting) are subject to a comparative cost control vesting condition This vesting condition measures the relative performance of the Group’s operational cost control performance compared to other Australian coal producers. The vesting scale for this performance vesting metric is as follows: Performance level Group operational cost control relative to other Australian coal producers over measurement period % Vesting of tranche Stretch Improved relative cost control performance throughout the performance period and rank in lowest cost quartile 100% Target Maintained relative cost control performance throughout the performance period and rank in lowest cost quartile 50% Threshold Maintained relative cost control performance throughout the performance period 25% Tranche 3 performance rights (7.5 per cent weighting) are subject to a strategic and capital management vesting condition The vesting scale for this performance vesting metric is as follows: Performance level Company strategic and capital management objectives % Vesting of tranche Stretch Operational performance and returns flowing from implementation of strategic and capital management objectives exceed target objectives 100% Target Operational performance and returns flowing from implementation of strategic and capital management objectives achieve target objectives 50% Threshold Implementation of strategic plan and capital management actions 25% Directors’ Report continued New Hope Group 72 Annual Report 2024 Remuneration Report continued Aspect Description Performance conditions continued Tranche 4 performance rights (7.5 per cent 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 Material improvement in ESG practices, disclosure and performance (e.g. increase in sustainability analytics scores and other independent recognition) 100% Target Achieve targeted actions from ESG improvement plan 50% Threshold Implement key actions from ESG improvement plan 25% Tranche 5 performance rights (7.5 per cent 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 Material improvement in safety metrics over the measurement period, and third-party audit confirms ongoing maturity and effectiveness of safety governance and due diligence practices 100% Target Improvement in safety metrics over the measurement period, and safety metrics remain below industry average 50% Threshold Implement safety maturity plan key actions, and no fatalities during the measurement period caused by failure of Company Health and Safety Management System 25% Tranche 6 performance rights (7.5 per cent 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 Third-party audit confirms effectiveness of Risk Framework and Practices at an industry best practices level 100% Target Third-party audit confirms compliance with Risk Framework and Practices, and all material risk actions completed on time as per framework deadlines 50% Threshold Implement risk management maturity plan key actions 25% 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 vesting 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. 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 Awards vest pro-rata relative to the proportion 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. Board discretion 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 71 – 73 are holisitic to the Company’s activities. Targets are determined at levels that appropriately represent improved performance over prior periods, and drive actions and initiatives that provide continuous improvement outcomes. Stretch is set at levels that would represent material improvement. The Nomination and Remuneration Committee and Board consider 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. Directors’ Report Auditor’s independence declaration Financial Report Directors’ declaration Independent Auditor’s Report Shareholder information Resources and reserves Corporate directory Annual Report 2024 New Hope Group 73 Long-Term Incentive outcomes – link to performance Summary of vested LTI performance measures and outcomes Since the end of the 2024 financial year to the date of this report, performance rights granted to Executive KMP for the LTI Awards granted for the 2021 and 2022 financial years have vested as set out following. 2022 series LTI Awards The 2022 series LTI measures performance over the period 1 August 2022 to 31 July 2024 assessing conditions holisitic to the Company’s activities. Targets are determined at levels that appropriately represent improved performance over prior periods, to drive actions and initiatives that provide continuous improvement outcomes. Stretch is set at levels that would represent material improvement. 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. For 2022 series LTI grants, the applicable performance conditions and outcomes are as follows: Tranche Measure Target weighting Description Threshold Outcome target Stretch Vesting % 1. Total Shareholder Return 55% 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. 55% The Company’s TSR growth over the performance period against the comparator group was 75 per cent, equating to a stretch performance outcome. 2. Cost performance 15% This vesting condition measures the statistical ranking of Bengalla Mine’s cost control performance compared to Australia’s top 40 export thermal coal mines. 7.5% The Board examined Bengalla’s cost performance over the performance period and compared it to the data available about the cost performance of Australia’s top 40 export thermal coal mines. Detailed cost data on a per mine basis was not available for every mine, however, the Board was able to examine publicly available portfolio information published by other producers as well as data from industry analysts to compile an appropriate data set and undertake a comparative analysis. The Board determined that Bengalla’s costs increased the least relative to comparator group peers, and that Bengalla’s costs control performance during the performance period equated to a stretch performance outcome. 3. Strategy 7.5% This vesting condition measures the extent of performance and returns from the implementation of the Group strategy with specific focus on executed transactions and material capital management activities. 7.5% The Board examined the strategic objectives and plans determined at each annual strategy day and assessed the extent of implemetaion of plans and the outcomes of each transaction executed and capital management activity completed. The Board determined that the actions for determined strategy had been implemented as required and that each transaction and activity that had been executed had materially exceeded the original objectives. Notable achievements were the capital management activities, in particular the convertible bond raisings, and portfolio reshaping, in particular the divestment of non-core assets and the investments in Malabar Resources Limited. 4. ESG 7.5% This vesting condition measures the extent to which management has implemented the ESG improvement and demonstrated maturation of practices and activities. 5.625% The Board reviewed the actions implemented and completed since 2022 under the ESG Improvement plan noting in particular the improvements in reporting, stakeholder engagement on ESG matters, increased coordination across the Group on ESG matters, data collection, analysis and disclosure, maturation in risk practices, and improved scores from sustainability ratings agencies. Consequently, the Board determined that performance was mid-way between target and stretch. Directors’ Report continued New Hope Group 74 Annual Report 2024 Remuneration Report continued Tranche Measure Target weighting Description Threshold Outcome target Stretch Vesting % 5. Safety 7.5% This vesting condition measures the safety, health and wellbeing performance of the Group with particular focus on the extent of demonstrated continual improvement and positive safety and wellbeing outcomes. 1.875% The Board assessed the extent of implementation of the recommendations and actions in the safety governance practices and due diligence review and reflected upon the quality and maturation of safety and wellbeing reporting, engagement, focus and activities across the Group. The Board noted that leading indicators have shown improvement over the performance period, and there was demonstrated continuous improvement in safety, health and wellbeing initiatives and practices. The Board also identified that while the lag indicator performance improved during the first two years of the performance period, lagging indicator performance declined during the last 12 months making a target performance outcome unobtainable due to the failure to achieve year on year performance improvement. Given the improvements in and maturation of safety, health and wellbeing initiatives and practices, including the demonstrated implementation of the recommendations and actions in the safety governance practices and due diligence review, the Board assessed overall performance at threshold level. 6. Risk 7.5% This vesting condition measures the extent of maturity of risk management practices and actions, with specific focus given to the extent of actions and outcomes in accordance with the Group’s Enterprise Risk Management Framework. 3.75% At the beginning of the performance period, the Board engaged an independent risk management advisor to assess the maturity level of the Group’s Enterprise Risk Management Framework and assist to devise actions to continually improve and achieve embedded maturity of the Group’s Enterprise Risk Management Framework. At the end of the performance period, the Board requested the advisor to update the maturity level review assessment not only for the purposes of determining this vesting condition outcome, but also to assist to further develop the ongoing maturity objectives. The Board determined that there was demonstrated improvement in risk management leadership, engagement across the Group, alignment and consistency of practices, which meet busineess needs across the Group, clarity in roles and responsibilities, and clear and concise reporting on material risks, actions and outcomes. Consequently, the Board assessed overall performance at target level. Total 88.75% The vesting of the 2022 series LTI award for Executive KMP is as follows: Name Granted KPI outcome Total vesting Total forfeited Robert J. Bishop 315,318 88.75% 279,844 35,474 Rebecca S. Rinaldi 146,753 88.75% 130,243 16,510 Dominic H. O’Brien 176,740 88.75% 156,856 19,884 Directors’ Report Auditor’s independence declaration Financial Report Directors’ declaration Independent Auditor’s Report Shareholder information Resources and reserves Corporate directory Annual Report 2024 New Hope Group 75 2021 series LTI Awards The 2021 series LTI measures performance over the period 1 August 2021 to 31 July 2023 and requires service to be maintained until 31 July 2024. The CEO is the only Executive KMP with a subsisting award from the 2021 series LTI. For 2021 series LTI grants, the applicable performance conditions and outcomes are as follows: Tranche Measure Target weighting Description Threshold Outcome target Stretch Vesting % 1. Total Shareholder Return 75% This vesting condition measures the Company’s TSR performance relative to the total net return of the ASX200. 75% The Company’s TSR performance versus the ASX200 net return was 1,026 per cent, equating to a stretch performance outcome. 2. Individual performance 25% This vesting condition measures the Executive KMP’s individual performance with reference to the Company’s strategic plan and objectives and the requirements of the role. 23% The Board acknowledged that the service condition was met and examined the CEO’s individual performance over the performance period noting in particular the completion of the corporate office restructuring, the asset portfolio review and successful divestment of and strategy regarding non-core assets, the investments in Malabar Resources Limited, the capital management activities, the effective management of New Acland into care and maintenance and subsequent emergence out of care and maintenance, and execution of the ramp-up plan following obtaining all required primary approvals, the Bengalla Growth Project execution and oversight of improvements in and maturation of corporate culture and practices, especially in relation to internal controls and reporting, stakeholder engagement, ESG focus, and safety and risk management practices. The Board determined that the CEO’s performance over the performance period was approaching stretch. 98% The vesting of the 2021 series LTI award for the Executive KMP is as follows: Name Granted KPI outcome Total vesting Total forfeited Robert J. Bishop 133,169 98% 130,505 2,664 Directors’ Report continued New Hope Group 76 Annual Report 2024 Remuneration Report continued Remuneration – statutory tables Details of the remuneration of Directors and the Executive KMP of the Company during the 2024 financial year are set out below. Short-term benefits Long-term benefits Post- employment Others Share- based payments Name Cash salary and fees $ Cash bonus $ Non-cash benefits1 $ Long service leave $ Super- annuation2 $ Termination benefits $ Equity- settled shares $ Total $ 2024 Non-Executive Directors Robert D. Millner AO 285,000 – – – 28,113 – – 313,113 Ian M. Williams 251,500 – – – 27,570 – – 279,070 Todd J. Barlow3 132,917 – – – 14,621 – – 147,538 Thomas C. Millner 145,000 – – – 17,202 – – 162,202 Jacqueline E. McGill AO 223,875 – – – 24,720 – – 248,595 Steven R. Boulton 204,092 – – – 22,535 – – 226,627 Lucia A. Stocker 171,000 – – – 18,881 – – 189,881 Brent C. A. Smith3 12,083 – – – 1,390 – – 13,473 Total Non-Executive Directors 1,425,467 155,032 1,580,499 Executive KMP Robert J. Bishop 1,238,702 349,411 (1,701) 29,226 28,032 – 1,830,336 3,474,006 Rebecca S. Rinaldi 656,174 176,040 11,682 14,142 28,032 – 854,516 1,740,586 Dominic H. O’Brien 640,105 205,779 8,633 15,213 28,032 – 924,138 1,821,900 Total Executive KMP 2,534,981 731,230 18,614 58,581 84,096 – 3,608,990 7,036,492 Total remuneration – 2024 3,960,448 731,230 18,614 58,581 239,128 – 3,608,990 8,616,991 2023 Non-Executive Directors Robert D. Millner AO 220,000 – – – 23,192 – – 243,192 Ian M. Williams 220,000 – – – 23,192 – – 243,192 Todd J. Barlow4 130,000 – – – 13,704 – – 143,704 Thomas C. Millner5 131,137 – – – 9,100 – – 140,237 Jacqueline E. McGill AO 155,759 – – – 16,420 – – 172,179 Steven R. Boulton 131,048 – – – 13,814 – – 144,862 Lucia A. Stocker6 65,000 – – – 6,879 – – 71,879 Total Non-Executive Directors 1,052,944 106,301 1,159,245 Executive KMP Robert J. Bishop 1,055,354 316,408 27,634 31,415 25,468 – 1,019,890 2,476,169 Rebecca S. Rinaldi 558,070 170,931 47,323 13,855 25,468 – 539,440 1,355,087 Dominic H. O’Brien 558,233 180,712 58,166 13,828 25,468 – 604,900 1,441,307 Total Executive KMP 2,171,657 668,051 133,123 59,098 76,404 – 2,164,230 5,272,563 Total remuneration – 2023 3,224,601 668,051 133,123 59,098 182,705 – 2,164,230 6,431,808 1. Non-cash benefits include movements in annual leave provisions. 2. Superannuation guarantee requirements for the 2023 and 2024 financial years are in line with the Australian Taxation Office’s legislated requirements. 3. Individuals who commenced or ceased as Non-Executive directors during the 2024 financial year as detailed on page 63. 4. Todd J. Barlow elected to waive his Committee fees for the 2023 financial year. 5. Thomas C. Millner elected to waive his Committee fees for the 2023 financial year and implemented a superannuation exemption certificate effective from 1 April 2023 – 30 June 2023. 6. Individuals who commenced as KMP during the 2023 financial year are detailed in the 2023 Renumeration Report. Directors’ Report Auditor’s independence declaration Financial Report Directors’ declaration Independent Auditor’s Report Shareholder information Resources and reserves Corporate directory Annual Report 2024 New Hope Group 77 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. Executive KMP Name LTI series Grant date Vesting date Number granted Value per share Number vested Vested % Number forfeited Forfeited % Number lapsed Lapsed % Total award value in future financial years3 $ Robert J. Bishop 20214 Dec-20 Aug-24 133,169 $0.761 – – – – – – 101,208 20225 Sep-22 Aug-24 173,425 $5.161 – – – – – – 894,872 20225 Sep-22 Aug-24 141,893 $5.502 – – – – – – 780,412 2023 Sep-22 Aug-25 94,588 $4.211 – – – – – – 398,215 2023 Sep-22 Aug-25 77.390 $5.502 – – – – – – 425,646 2024 Sep-23 Aug-26 249,485 $4.571 – – – – – – 1,140,146 2024 Sep-23 Aug-26 204,125 $5.862 – – – – – – 1,196,173 Rebecca S. Rinaldi 20225 Sep-22 Aug-24 80,714 $5.161 – – – – – – 416,485 20225 Sep-22 Aug-24 66,039 $5.502 – – – – – – 363,214 2023 Sep-22 Aug-25 48,347 $4.211 – – – – – – 203,542 2023 Sep-22 Aug-25 39,557 $5.502 – – – – – – 217,564 2024 Sep-23 Aug-26 85,122 $4.571 – – – – – – 389,008 2024 Sep-23 Aug-26 69,647 $5.862 – – – – – – 408,131 Dominic H. O’Brien 20225 Sep-22 Aug-24 97,207 $5.161 – – – – – – 501,588 20225 Sep-22 Aug-24 79,533 $5.502 – – – – – – 437,432 2023 Sep-22 Aug-25 49,283 $4.211 – – – – – – 207,481 2023 Sep-22 Aug-25 40,322 $5.502 – – – – – – 221,771 2024 Sep-23 Aug-26 85,122 $4.571 – – – – – – 389,008 2024 Sep-23 Aug-26 69,647 $5.862 – – – – – – 408,131 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. 4. See ‘2021 series LTI awards’ information on page 76 for information regarding the vesting outcome, which occurred since the end of the 2024 financial year to the date of this report. 5. See ‘2022 series LTI awards’ information on page 74 for information regarding the vesting outcome, which occurred since the end of the 2024 financial year to the date of this report. Equity holdings The tables below show the number of restricted rights and performance rights (STI and LTI) and shares in the Company that were held during the 2024 financial year by KMP and their related parties either directly, indirectly or beneficially. Restricted rights holdings – Executive 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 54,986 74,516 (54,986) – – 74,516 74,516 Rebecca S. Rinaldi 29,711 40,254 (29,711) – – 40,254 40,254 Dominic H. O’Brien 31,406 42,189 (31,406) – – 42,189 42,189 Directors’ Report continued New Hope Group 78 Annual Report 2024 Remuneration Report continued Performance rights holdings – Executive 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 620,465 453,610 – – – 1,074,075 1,074,075 Rebecca S. Rinaldi 234,657 154,769 – – – 389,426 389,426 Dominic H. O’Brien 266,345 154,769 – – – 421,114 421,114 Shareholding – KMP Name Balance at the start of the year Purchased/ (sold) Received on the vesting and exercise of performance or restricted rights Ceased as KMP Balance at the end of the year Robert D. Millner AO 6,022,774 200,000 – – 6,222,774 Todd J. Barlow1 19,900 – – (19,900) – Jacqueline E. McGill AO 70,000 10,000 – – 80,000 Thomas C. Millner 5,674,368 200,000 – – 5,874,368 Ian M. Williams – 10,000 – – 10,000 Steven R. Boulton – 10,000 – – 10,000 Lucia A. Stocker 9,500 10,500 – – 20,000 Brent C.A. Smith2 – – – – – Robert J. Bishop – – 54,986 – 54,986 Rebecca S. Rinaldi – 20,000 29,711 – 49,711 Dominic H. O’Brien 200,000 100,000 31,406 – 331,406 1. Resigned and ceased as Director on 30 June 2024. 2. Appointed and commenced as Director on 1 July 2024. Shares issued on the vesting of restricted rights and performance rights – Executive KMP Since the end of the 2024 financial year to the date of this report, restricted rights granted to Executive KMP for the Special Incentive Awards granted for the 2023 financial year and performance rights for the LTI awards granted for the 2021 and 2022 financial years have vested and/or been exercised as follows: Name Vested Exercised1 Robert J. Bishop 484,685 130,505 Rebecca S. Rinaldi 170,497 40,254 Dominic H. O’Brien 199,045 42,189 1. Restricted rights exercised into ordinary shares held beneficially by the Executive KMP. Otherwise, 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 KMP Executives granted during the 2024 financial year, nor were there any outstanding loans as at 31 July 2024. Voting at the Company’s 2023 Annual General Meeting At the AGM held on 23 November 2023 shareholders approved: • the resolution to pass the 2023 Remuneration Report by 99 per cent • the resolution to increase the Non-Executive Director remuneration pool by 99 per cent. End of Remuneration Report. Directors’ Report Auditor’s independence declaration Financial Report Directors’ declaration Independent Auditor’s Report Shareholder information Resources and reserves Corporate directory Annual Report 2024 New Hope Group 79 Non-audit services Deloitte Touche Tohmatsu (Deloitte) has acted as auditor for the Group for the 2024 financial year. The Company may decide to employ the auditor on assignments additional to its statutory audit duties where the auditor’s expertise and experience with the Company are important. During the 2024 financial year the following fees were paid or payable for services provided by the auditor of the Company, its related practices and non-related audit firms (refer Note 34): 2024 $ 2023 $ Deloitte and related network firms Audit or review of Financial Reports: Group 549,280 666,100 Subsidiaries and joint operations 325,581 223,127 874,861 889,227 Other assurance and agreed-upon procedures under other legislation or contractual arrangements Group 135,000 – Subsidiaries and joint operations 18,000 14,000 153,000 14,000 Other services Advisory services 525,700 459,392 525,700 459,392 Total 1,553,561 1,362,619 Auditor’s independence declaration A copy of the auditor’s independence declaration as required under section 307C of the Corporations Act is set out on page 81. 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. Meetings of Directors The following table sets out the number of meetings of the Company’s Board of Directors and independent Committees held during the year ended 31 July 2024 and the number of meetings attended by each Director: Full meetings of Directors Audit and Risk Committee Sustainability Committee Nomination and Remuneration Committee Name Held Attended Held Attended Held Attended Held Attended Robert D. Millner AO 13 13 – – – – – – Todd J. Barlow1 12 12 – – – – – – Jacqueline E. McGill AO 13 13 6 6 5 5 5 5 Thomas C. Millner 13 13 – – – – – – Ian M. Williams 13 13 6 6 5 5 5 5 Steven R. Boulton 13 13 6 6 – – 5 5 Lucia A. Stocker 13 13 – – 5 5 – – Brent C. A. Smith2 1 1 – – – – – – 1. Todd J. Barlow resigned on 30 June 2024. 2. Brent C. A. Smith commenced on 1 July 2024. Signed at Sydney, 16 September 2024, in accordance with a resolution of Directors. Robert D. Millner Director Directors’ Report continued New Hope Group 80 Annual Report 2024 Directors’ Report Auditor’s independence declaration Financial Report Directors’ declaration Independent Auditor’s Report Shareholder information Resources and reserves Corporate directory Auditor’s independence declaration Liability limited by a scheme approved under Professional Standards Legislation. Member of Deloitte Asia Pacific Limited and the Deloitte organisation. 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 16 September 2024 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. As lead audit partner for the audit of the financial report of New Hope Corporation Limited for the year ended 31 July 2024, I declare that to the best of my knowledge and belief, there have been no contraventions of: (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, DELOITTE TOUCHE TOHMATSU Stephen Tarling Partner Chartered Accountants The Board of Directors New Hope Corporation Limited Level 18, 175 Eagle Street Brisbane, QLD, 4000 Annual Report 2024 New Hope Group 81 Financial Report Statement of Comprehensive Income 83 Statement of Financial Position 84 Statement of Changes in Equity 85 Statement of Cash Flows 86 Notes to the Financial Statements 87 1. Financial reporting segments 88 2. Revenue 93 3. Other income and expenses 94 4. Income taxes 96 5. Reconciliation of profit/(loss) after income tax to net cash from operating activities 99 6. Earnings Per Share 100 7. Receivables 101 8. Trade and other payables 102 9. Inventories 103 10. Assets held for sale and directly associated liabilities 103 11. Financial guarantee liability 104 12. Property, plant and equipment 105 13. Intangible assets 108 14. Exploration and evaluation assets 109 15. Impairment of assets 110 16. Provisions 113 17. Cash and cash equivalents 115 18. Other financial assets 116 19. Equity investments 116 20. Investment in associates 117 21. Unearned revenue 119 22. Borrowings 119 23. Derivative financial instruments 125 24. Dividends 128 25. Equity 129 26. Financial risk management 131 27. Interests in other entities 137 28. Commitments 137 29. Events occurring after the reporting period 138 30. Related party transactions 138 31. Share-based payments 140 32. Parent entity disclosures 141 33. Deed of Cross Guarantee 143 34. Remuneration of auditors 146 35. Other accounting policies 146 Directors’ declaration 148 Independent Auditor’s Report 149 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 18, 175 Eagle Street, Brisbane, QLD, 4000. A description of the nature of the consolidated entity’s operations and its principal activities is included in the Directors’ Report on pages 52 to 80, which is not part of this Financial Report. The Financial Report was authorised for issue by the Directors on 16 September 2024. 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 at newhopegroup.com.au/investor-information. Annual Report 2024 82 New Hope Group Directors’ Report Auditor’s independence declaration Financial Report Directors’ declaration Independent Auditor’s Report Shareholder information Resources and reserves Corporate directory Statement of Comprehensive Income For the year ended 31 July 2024 Notes 2024 $000 2023 $000 Revenue and other income Revenue 2 1,802,206 2,754,498 Net gain from remeasurement of convertible debt 22(a) – 17,690 Share of results from equity accounted associates 20 286 – Other income 3(a) 1,643 22,145 1,804,135 2,794,333 Expenses Cost of sales 3(b) (906,468) (952,435) Marketing and transportation (121,427) (95,049) Administration (56,368) (56,811) Other expenses 3(b) (3,637) (66,647) Financing expenses 22(d) (13,118) (14,205) Impairment of assets 3(b) (5,932) (64,202) Profit before income tax 697,185 1,544,984 Income tax expense 4(a) (221,330) (457,582) Net profit 475,855 1,087,402 Net profit attributable to New Hope shareholders 475,855 1,087,402 Other comprehensive (loss)/income for the year, net of tax Items that may be reclassified to profit or loss: Exchange difference on the translation of foreign operations 25(f) (151) (113) Changes to the fair value of cash flow hedges, net of tax 25(f) 10,474 175,349 Transfer to profit or loss for cash flow hedges, net of tax 25(f) (69,778) 4,674 Items that will not be reclassified to profit or loss: Changes to the fair value of equity investments, net of tax 25(f) (47) 80,917 Share of other comprehensive income of associates 20 428 – Other comprehensive (loss)/income, net of tax (59,074) 260,827 Total comprehensive income 416,781 1,348,229 Total comprehensive income attributable to New Hope shareholders 416,781 1,348,229 Earnings per share for profit attributable to the ordinary equity holders Cents/ share Cents/ share Basic Earnings per share 6(a) 56.3 126.0 Diluted earnings per share 6(a) 56.1 118.6 The above Statement of Comprehensive Income should be read in conjunction with the accompanying Notes to the Financial Statements. Annual Report 2024 New Hope Group 83 Statement of Financial Position For the year ended 31 July 2024 Notes 2024 $000 2023 $000 Current assets Cash and cash equivalents 17 638,760 730,654 Receivables 7 159,365 207,250 Other financial assets 18 185,963 19,984 Derivative financial instruments 23 59,548 92,658 Inventories 9 116,753 59,239 Current tax assets 1,499 – Assets classified as held for sale 10 101,048 – Total current assets 1,262,936 1,109,785 Non-current assets Receivables 7 25,332 37,820 Derivative financial instruments 23 715 28,475 Investment in associates 20 291,754 – Equity investments 19 116 210,639 Property, plant and equipment 12 1,806,215 1,769,755 Intangible assets 13 65,004 68,639 Exploration and evaluation assets 14 16,499 18,194 Total non-current assets 2,205,635 2,133,522 Total assets 3,468,571 3,243,307 Current liabilities Trade and other payables 8 189,285 95,416 Derivative financial instruments 23 34,691 6,825 Borrowings 22 268,201 9,787 Current tax liabilities – 219,454 Provisions 16 49,295 37,924 Financial guarantee liability 11 11,375 11,968 Unearned revenue 21 – 1,281 Liabilities directly associated with assets held for sale 10 61,838 – Total current liabilities 614,685 382,655 Non-current liabilities Derivative financial instruments 23 3,863 366 Borrowings 22 93,293 75,136 Deferred tax liabilities 4(d) 97,152 99,064 Provisions 16 116,427 162,330 Unearned revenue 21 – 2,349 Total non-current liabilities 310,735 339,245 Total liabilities 925,420 721,901 Net assets 2,543,151 2,521,406 Equity Contributed equity 25(c) 8,453 8,453 Reserves 25(f) (99,356) (42,553) Retained earnings 25(g) 2,634,054 2,555,506 Total equity 2,543,151 2,521,406 The above Statement of Financial Position should be read in conjunction with the accompanying Notes to the Financial Statements. New Hope Group 84 Annual Report 2024 Directors’ Report Auditor’s independence declaration Financial Report Directors’ declaration Independent Auditor’s Report Shareholder information Resources and reserves Corporate directory Statement of Changes in Equity For the year ended 31 July 2024 Notes Contributed equity $000 Reserves $000 Retained earnings $000 Total $000 Opening equity as at 1 August 2023 8,453 (42,553) 2,555,506 2,521,406 Profit – – 475,855 475,855 Other comprehensive income/(loss) – (59,074) – (59,074) Total comprehensive income/(loss) – (59,074) 475,855 416,781 Transactions with owners in their capacity as owners Dividends paid 24(a) – – (397,307) (397,307) Share-based payment transactions 25(f) – 5,571 – 5,571 Purchase of shares to settle employee share plans 25(c) – (3,300) – (3,300) – 2,271 (397,307) (395,036) Closing equity as at 31 July 2024 8,453 (99,356) 2,634,054 2,543,151 Opening equity as at 1 August 2022 97,536 (89,229) 2,307,224 2,315,531 Profit – – 1,087,402 1,087,402 Other comprehensive income/(loss) – 260,827 – 260,827 Total comprehensive income/(loss) – 260,827 1,087,402 1,348,229 Transactions with owners in their capacity as owners Dividends paid 24(a) – – (839,120) (839,120) Share-based payment transactions 25(f) – 3,216 – 3,216 Share buy-back (181,783) (10,664) – (192,447) Conversion of convertible debt to equity 92,700 – – 92,700 Convertible debt buy-back – (206,703) – (206,703) (89,083) (214,151) (839,120) (1,142,354) Closing equity as at 31 July 2023 8,453 (42,553) 2,555,506 2,521,406 The above Statements of Changes in Equity should be read in conjunction with the accompanying Notes to the Financial Statements. Annual Report 2024 New Hope Group 85 Statement of Cash Flows For the year ended 31 July 2024 Notes 2024 $000 2023 $000 Cash flows from operating activities Receipts from customers 1,919,533 3,101,074 Payments to suppliers and employees (958,973) (1,020,879) Cash flows from operations 960,560 2,080,195 Net interest received 11,504 18,540 Distributions from managed funds 7,275 – Income taxes paid (419,120) (539,431) Payments for legal settlement 16(c) – (51,000) Reimbursement from insurers 16(c) 745 19,359 Refunds/(payments) for security deposits 1,000 (2,874) Net cash inflow from operating activities 5 561,964 1,524,789 Cash flows from investing activities Payments for property, plant and equipment (262,084) (174,617) Payments for intangibles (521) (676) Proceeds from sale of property, plant and equipment 240 8,693 Payments for exploration and evaluation assets 14 (9,699) (11,694) Payments for equity accounted associates 20 (80,564) – Payments for other financial assets (160,118) (20,000) Proceeds from sale of other financial assets 4,208 – Term deposits – 100,000 Net cash outflow from investing activities (508,538) (98,294) Cash flows from financing activities Repayment of lease liabilities (9,771) (9,988) Net proceeds from convertible bond issue 22(a) 291,139 – Payment for capped call option 22(a) (26,160) – Purchase of shares to settle employee share plans (3,300) – Share buy-back – (192,447) Convertible debt buy–back 22(a) – (367,325) Dividends paid 24(a) (397,307) (839,120) Net cash outflow from financing activities (145,399) (1,408,880) Net (decrease)/increase in cash and cash equivalents (91,973) 17,615 Cash and cash equivalents at the beginning of the financial year 730,654 715,714 Effects of exchange rate changes on cash and cash equivalents 79 (2,675) Cash and cash equivalents at the end of the financial year 638,760 730,654 The above Statement of Cash Flows should be read in conjunction with the accompanying Notes to the Financial Statements. New Hope Group 86 Annual Report 2024 Directors’ Report Auditor’s independence declaration Financial Report Directors’ declaration Independent Auditor’s Report Shareholder information Resources and reserves Corporate directory Notes to the Financial Statements For the year ended 31 July 2024 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 2024 was authorised for issue in accordance with a resolution of the Directors on 16 September 2024. 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 that 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 35 • does not adopt any Accounting Standards and Interpretations that have been issued or amended but are not yet effective. Refer to Note 35 for more information on this and other accounting policies • has been prepared under the historical cost convention, as modified by the revaluation of trade receivables and payables held at fair value, financial assets carried at fair value, financial guarantee provision carried at fair value, derivative instruments carried at fair value and agricultural assets carried at fair value • is for a company that 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 • presents reclassified comparative information where required for consistency with the current year’s presentation. 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. 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 2024, 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. Annual Report 2024 New Hope Group 87 Notes to the Financial Statements continued For the year ended 31 July 2024 Basis of consolidation continued (B) Interests in other entities For information on joint arrangements and interests in other unincorporated entities, refer to Note 27. Other accounting policies Material 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: Page Note 4 Recognition of deferred tax assets 99 Note 7 Fair value measurement of other receivables 102 Note 12 Estimation of coal and oil and gas reserves and resources 107 Note 14 Exploration and evaluation expenditure 109 Note 15 Impairment assessments – measurement of recoverable amount 112 Note 16 Rehabilitation 115 Note 20 Significant influence assessment of Malabar 117 1. Financial reporting segments Accounting Policy Operating segments have been determined based on reports reviewed by Key Management Personnel (Executive KMP) which are used to make strategic decisions. Executive 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 Executive 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, being 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, marketing, exploration and the equity accounted associate Malabar Resources Limited) and Other (including coal exploration outside of existing operational areas, oil and gas-related exploration, development and production, pastoral operations, treasury and administration). Income tax expense has not been allocated to an operating segment and is a reconciling item. Other immaterial coal mining and related operations that do not meet the quantitative thresholds requiring separate disclosure in AASB8 Operating Segments have been combined within the Other segment. Segment information is presented on the same basis as that used for internal reporting purposes. New Hope Group 88 Annual Report 2024 Directors’ Report Auditor’s independence declaration Financial Report Directors’ declaration Independent Auditor’s Report Shareholder information Resources and reserves Corporate directory B. Segment information Year ended 31 July 2024 Notes Coal Mining NSW $000 Coal Mining QLD $000 Other $000 Total $000 Total segment revenue 1,559,726 166,515 60,985 1,787,226 Intersegment revenue (9,396) (9,396) Revenue from external customers 1,559,726 166,515 51,589 1,777,830 Interest revenue 22(d) 24,376 Total revenue from external customers 2 1,802,206 Underlying EBITDA Before Non-regular Items1 859,932 Segment underlying EBITDA Before Non-regular Items1 853,545 40,431 (34,044) 859,932 Depreciation and amortisation 3(b) (139,109) (19,414) (9,550) (168,073) Net interest income/(expense) 22(d) (777) (5,933) 17,968 11,258 Segment profit/(loss) before tax and non-regular Items 713,659 15,084 (25,626) 703,117 Non-regular items before tax2 – – (5,932) (5,932) Segment profit/(loss) before tax after non-regular Items 713,659 15,084 (31,558) 697,185 Income tax (expense)/benefit 4(a) (221,330) Profit/(loss) after tax and non-regular items 475,855 Reportable segment assets 2,073,784 399,557 995,230 3,468,571 Total segment assets includes: Additions to non-current capital assets 163,781 66,408 42,115 272,304 Increase in impairment of assets – – (5,932) (5,932) 1. Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) and Net profit before tax (NPBT) and before Non-regular items are non-IFRS measures. This non-IFRS information has not been audited by Deloitte. 2. Non-regular items for the financial year ended 31 July 2024 relate to impairment of assets held for sale. 2024 Segment assets ($ million) 2024 Segment performance ($ million) 995 2,074 400 Revenue from external customers Segment EBITDA 1,560 854 167 52 40 -34 Coal Mining NSW Coal Mining QLD Other Coal Mining NSW Other Coal Mining QLD Annual Report 2024 New Hope Group 89 1. Financial reporting segments continued B. Segment information continued Year ended 31 July 2023 Notes Coal Mining NSW $000 Coal Mining QLD $000 Other $000 Total $000 Total segment revenue 2,619,015 40,857 67,101 2,726,973 Intersegment revenue – – (10,953) (10,953) Revenue from external customers 2,619,015 40,857 56,148 2,716,020 Interest revenue 22(d) 38,478 Total revenue from external customers 2 2,754,498 Underlying EBITDA Before Non-regular Items1 1,746,580 Segment underlying EBITDA Before Non-regular Items1 1,803,224 (12,094) (44,550) 1,746,580 Depreciation and amortisation 3(b) (118,398) (15,400) (7,776) (141,574) Net interest income/(expense) 22(d) (1,491) (5,172) 30,936 24,273 Segment profit/(loss) before tax and non-regular items 1,683,335 (32,666) (21,390) 1,629,279 Non-regular items before tax2 (84,295) (84,295) Segment profit/(loss) before tax after non-regular items 1,683,335 (32,666) (105,685) 1,544,984 Income tax (expense)/benefit 4(a) (457,582) Profit/(loss) after tax and non-regular items 1,087,402 Reportable segment assets 2,081,594 196,351 965,362 3,243,307 Total segment assets includes: Additions to non-current capital assets 89,721 71,173 26,499 187,393 Increase in impairment of assets – – (64,202) (64,202) 1. Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) and Net profit before tax (NPBT) and before Non-regular items are non-IFRS measures. This non-IFRS information has not been audited. 2. Non-regular Items for the financial year ended 31 July 2023 relate to impairment of assets, net liquidation related expenses, net gain from remeasurement of convertible debt and Group redundancy expenses. 2023 Segment performance ($ million) Revenue from external customers Segment EBITDA 2,619 1,803 41 56 -12 -45 Coal Mining NSW Coal Mining QLD Other 2023 Segment assets ($ million) 965 2,082 196 Coal Mining NSW Other Coal Mining QLD Notes to the Financial Statements continued For the year ended 31 July 2024 New Hope Group 90 Annual Report 2024 Directors’ Report Auditor’s independence declaration Financial Report Directors’ declaration Independent Auditor’s Report Shareholder information Resources and reserves Corporate directory C. Other segment information (i) Segment revenue Year ended 31 July 2024 Notes Coal Mining NSW $000 Coal Mining QLD $000 Other $000 Total $000 Total segment revenue by geographical region Japan 806,912 37,181 – 844,093 Taiwan 381,314 – – 381,314 Chile 29,230 – – 29,230 Korea 17,174 – – 17,174 China 165,098 96,577 – 261,674 Vietnam 38,303 – – 38,303 Indonesia 6,511 – – 6,511 Other1 34,393 – – 34,393 Australia 144,923 29,628 35,922 210,473 Revenue from customer contracts2 1,623,858 163,385 35,922 1,823,166 Provisional pricing (57,831) Other revenue 36,871 Total revenue 2 1,802,206 1. Other revenue from customer contracts relates to third-party customer contracts with undisclosed geographical information. 2. Revenue from customer contracts includes income from commodity sales and services. Revenues of $521,686,000 (2023: $1,310,554,000) are derived from two external customers, each of whom represent more than 10 per cent of total revenue from customer contracts. These revenues are attributed to the Japan and Taiwan geographical segments. Negative provisional pricing adjustments of $67,137,000 (2023: negative $69,726,000) relate to these customers. 2024 Segment revenue % ($ million) 2023 Segment revenue % ($ million) Japan Taiwan China Australia Chile Korea Vietnam Other 14% 12% 46% 21% 3% 9% 65% 21% 1% 2% 2% 1% 2% Annual Report 2024 New Hope Group 91 1. Financial reporting segments continued C. Other segment information continued (i) Segment revenue continued Year ended 31 July 2023 Notes Coal Mining NSW $000 Coal Mining QLD $000 Other $000 Total $000 Total segment revenue by geographical region Japan 1,794,031 14,251 – 1,808,282 Taiwan 589,275 – – 589,275 Chile 24,944 – – 24,944 China 79,592 – – 79,592 Australia 201,851 21,842 36,693 260,386 Revenue from customer contracts1 2,689,693 36,093 36,693 2,762,479 Provisional pricing (61,820) Other revenue 53,839 Total revenue 2 2,754,498 1. Revenue from customer contracts includes income from commodity sales and services. Refer Note 2. Revenues of $1,310,554,000 (2022: $277,350,000) are derived from three external customers, each of whom represent more than 10 per cent of total revenue. These revenues are attributed to the Japan and Taiwan geographical segments. Negative provisional pricing adjustments of $69,726,000 (2022: positive $353,277,000) relate to these customers. (ii) Segment assets The amounts provided to Executive 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. Notes to the Financial Statements continued For the year ended 31 July 2024 New Hope Group 92 Annual Report 2024 Directors’ Report Auditor’s independence declaration Financial Report Directors’ declaration Independent Auditor’s Report Shareholder information Resources and reserves Corporate directory 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 has been transferred to the customer in accordance with the sales terms, in this instance when the risks and benefits of ownership have 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 includes a future price reference. • 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 are recognised as revenue over time as the services are performed. Notes 2024 $000 2023 $000 Sales revenue Revenue from commodity sales 1,793,514 2,740,609 Provisional pricing adjustments (57,831) (61,820) Services 29,652 21,870 1,765,335 2,700,659 Other revenue Property rent 1,989 2,212 Interest 22(d) 24,376 38,478 Distributions from managed funds 7,275 – Sundry revenue 3,231 13,149 Total revenue 1(b) 1,802,206 2,754,498 Annual Report 2024 New Hope Group 93 3. Other income and expenses Profit/(loss) before income tax includes the following specific income/(expenses): A. Other income Notes 2024 $000 2023 $000 Insurance recoveries 783 19,359 Royalty receivable revaluation 7 (5,637) 2,786 Fair value gain on other financial assets 5,671 – Fair value gain on derivatives fair valued through profit or loss 22(a) 826 – Total other income 1,643 22,145 B. Breakdown of expenses 2024 $000 2023 $000 (i) Cost of sales1,2,3 Purchased coal (11,447) (119,637) Royalties (127,700) (210,153) Other production costs Mining (386,128) (304,407) Non-mining (18,006) (25,362) Total cost of sales (543,281) (659,559) 1. Employee-related expenses relating to cost of sales of $197,554,000 (2023: $153,583,000) have been disclosed with 3B(ii) below. 2. Depreciation and amortisation expenses relating to cost of sales of $165,633,000 (2023: $139,293,000) have been disclosed with 3B(iii) below. 3. Care and maintenance expenditure for New Acland Mine is nil (2023: $39,708,000). (ii) Employee-related expenses Salaries and wages (196,596) (149,263) Superannuation (15,580) (11,481) Share-based payments (5,571) (3,216) Other employee benefits (3,580) (2,811) Total employee-related expenses (221,327) (166,771) Notes to the Financial Statements continued For the year ended 31 July 2024 New Hope Group 94 Annual Report 2024 Directors’ Report Auditor’s independence declaration Financial Report Directors’ declaration Independent Auditor’s Report Shareholder information Resources and reserves Corporate directory Notes 2024 $000 2023 $000 (iii) Depreciation and amortisation Depreciation Buildings 12 (1,259) (1,207) Plant and equipment 12 (80,750) (59,575) Total depreciation (82,009) (60,782) Amortisation Mining reserves and leases 12 (63,516) (59,558) Mine and port development 12 (5,436) (4,897) Oil producing assets 12 (6,246) (4,903) Software 13 (112) (140) Right-of-use assets 12 (7,215) (7,770) Mining information 13 (2,977) (2,969) Water rights 13 (562) (555) Total amortisation (86,064) (80,792) (iv) Impairment of assets Assets held for sale 10(b) (5,932) – Coal exploration and evaluation assets 15 – (34,511) Oil producing and exploration assets 15 – (21,108) Land and building assets 15 – (8,583) Total impairment charge (5,932) (64,202) (v) Other expenses Loss on sale of investments (4,230) – Revaluation of Financial guarantee liability 11 593 (9,505) Liquidation related expenses 16(c) – (57,142) Total other expenses (3,637) (66,647) Net loss on disposal of property, plant and equipment (8,151) (13,078) Annual Report 2024 New Hope Group 95 4. Income taxes Accounting Policy The income tax expense or benefit 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 part of a tax consolidated group, and 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. The Group has applied the temporary exception issued by the IASB in May 2023 from the accounting requirements for deferred taxes in AASB112. The Group does not recognise deferred tax assets and liabilities related to Pillar Two income taxes. Given the Group’s tax structure, the implementation of Pillar Two income taxes is not material. A. Income tax (expense)/benefit 2024 $000 2023 $000 Current tax expense (194,101) (455,305) Adjustments for current tax of prior periods (3,725) (356) Deferred tax (expense)/benefit (23,504) (1,921) (221,330) (457,582) Effective tax rate 31.7% 29.6% Notes to the Financial Statements continued For the year ended 31 July 2024 New Hope Group 96 Annual Report 2024 Directors’ Report Auditor’s independence declaration Financial Report Directors’ declaration Independent Auditor’s Report Shareholder information Resources and reserves Corporate directory B. Numerical reconciliation of income tax (expense)/benefit to profit before income tax 2024 $000 2023 $000 Profit before income tax 697,185 1,544,984 Income tax calculated at 30% (2023: 30%) (209,156) (463,495) Tax effect of amounts that are not deductible/(taxable) in calculating taxable income: Loss on sale of financial instruments (1,278) – Derecognition of deferred tax assets on classification as held for sale (8,376) – Net gain from remeasurement of convertible debt – 5,477 Other non-temporary items (94) (462) (218,904) (458,480) (Under)/over provided in prior year (2,426) 898 Income tax (expense)/benefit (221,330) (457,582) C. Tax (expense)/benefit relating to items of other comprehensive income 2024 $000 2023 $000 Cash flow hedges (25,416) 77,153 Equity investments – 34,787 Annual Report 2024 New Hope Group 97 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 Net $000 Deferred tax assets $000 Deferred tax liabilities $000 2024 Rehabilitation provision 49,911 (10,158) – 39,753 39,753 – Property, plant and equipment (103,698) (19,823) – (123,521) – 123,521 Exploration and evaluation assets (5,459) (633) – (6,092) – (6,092) Cash flow hedges (34,182) – 25,416 (8,766) – (8,766) Inventories (10,119) (2,774) – (12,893) – (12,893) Investment in associates – (34,819) – (34,819) – (34,819) Equity investments (34,787) 34,787 – – – – Employee provisions 11,353 665 – 12,018 12,018 – Other 940 (1,158) – (218) – (218) Capital losses 1,500 5,016 – 6,516 6,516 – Lease liabilities 25,477 5,393 – 30,870 30,870 – (99,064) (23,504) 25,416 (97,152) 89,157 (186,309) 2023 Rehabilitation provision 49,461 450 – 49,911 49,911 – Property, plant and equipment (91,149) (12,549) – (103,698) – (103,698) Exploration and evaluation assets (13,717) 8,258 – (5,459) – (5,459) Cash flow hedges 42,971 – (77,153) (34,182) – (34,182) Inventories (10,252) 133 – (10,119) – (10,119) Equity investments – – (34,787) (34,787) – (34,787) Employee provisions 7,852 3,501 – 11,353 11,353 – Other (1,055) 1,995 – 940 940 – Capital losses 1,500 – – 1,500 1,500 – Lease liabilities 29,184 (3,707) – 25,477 25,477 – 14,795 (1,921) (111,939) (99,064) 89,181 (188,245) Notes to the Financial Statements continued For the year ended 31 July 2024 New Hope Group 98 Annual Report 2024 Directors’ Report Auditor’s independence declaration Financial Report Directors’ declaration Independent Auditor’s Report Shareholder information Resources and reserves Corporate directory E. Unrecognised deferred tax assets 2024 $000 2023 $000 Deferred tax assets have not been recognised in respect of the following items: Tax losses (capital) 8,196 8,849 Temporary differences associated with equity investments 5,979 5,965 14,175 14,814 Significant judgements and estimates Recognition of deferred tax assets 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 Notes 2024 $000 2023 $000 Profit after income tax 475,855 1,087,328 Depreciation and amortisation 168,073 141,574 Share-based payments 3(b) 5,571 3,216 Net gain from remeasurement of convertible debt 22(a) – (17,690) Impairment of assets 3(b) 5,932 64,202 Net foreign exchange gains 68 2,946 Net loss/(profit) on sale of non-current assets 3(b) 8,151 13,078 Net loss on sale of other financial assets 4,230 – Net income taxes (paid)/received (419,120) (539,431) Income tax expense/(benefit) 4(a) 221,330 457,582 Non-cash finance costs 22(d) 7,818 2,946 Fair value gain – Other financial assets 3(a) (5,671) – Fair value gain – Derivatives fair valued through profit and loss 3(a) (826) – Share of associate’s profit 20 (286) – Changes in operating assets and liabilities Decrease in trade receivables and prepayments 47,084 305,536 (Increase)/Decrease in inventories (60,920) 504 Increase in trade and other payables 103,149 938 Increase in provisions 1,526 2,060 Net cash from operating activities 561,964 1,524,789 Annual Report 2024 New Hope Group 99 6. Earnings per share Accounting Policy Basic Earnings per share The calculation of Basic Earnings per share is based on the profit attributable to ordinary shareholders and a weighted average number of ordinary shares outstanding during the year. Diluted Earnings per share Diluted earnings per share is based on the profit attributable to ordinary shareholders and a weighted average number of ordinary shares outstanding adjusted for the diluting impact of potential equity instruments. A. Earnings per share attributable to ordinary equity holders of the Company Earnings per share (cents) 2024 2023 Basic Earnings per share 56.3 126.0 Diluted earnings per share 56.1 118.6 B. Profit and adjusted profit Basic 2024 $000 2023 $000 Profit/(loss) attributable to the ordinary equity holders of the Company 475,855 1,087,402 Dilutive1 2024 $000 2023 $000 Profit/(loss) attributable to the ordinary equity holders of the Company 477,319 1,077,081 1. Current period adjustment between profit and diluted profits consists of interest and transaction fees expensed relating to convertible bonds. Prior period adjustment consists of interest and net gain from remeasurement of convertible debt. C. Weighted average number of shares used as the denominator Consolidated 2024 2023 Weighted average number of ordinary shares (basic)1 845,009,023 863,236,771 Performance rights 2,933,026 1,439,418 Convertible bond 3,044,858 43,211,265 Weighted average number of ordinary shares (diluted) 850,986,907 907,887,453 1. Excludes treasury shares held, refer Note 25(c). 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 31. Notes to the Financial Statements continued For the year ended 31 July 2024 New Hope Group 100 Annual Report 2024 Directors’ Report Auditor’s independence declaration Financial Report Directors’ declaration Independent Auditor’s Report Shareholder information Resources and reserves Corporate directory 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. Trade receivables are due for settlement no more than 45 days from the date of recognition. Other non-derivative financial assets with fixed or determinable payments that are not quoted in an active market 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 12 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. 2024 $000 2023 $000 Current Trade receivables 73,032 123,697 Trade receivables – provisionally priced 30,145 16,661 Other receivables1,2 41,995 41,399 Prepayments 14,193 25,493 Total current 159,365 207,250 Non-current Other receivables2 25,332 37,820 Total non-current 25,332 37,820 1. 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. 2. Other receivables include royalty and milestone payments receivable from Bowen Coking Coal Limited of $30,991,000 (2023: $41,486,000), carried at fair value. The value of the current receivable is $5,659,000 (2023: $3,767,000). A further current receivable of $5,789,000 (2023: $6,285,000) is included in respect of net interest receivable from Bowen Coking Coal arising on a separate agreement to compensate the Group for arranging a financial guarantee on behalf of the entity, see Note 11. Royalty and milestone receivables Included in the Other receivables are a series of milestone payments and a royalty stream related to the previous sale of New Lenton Coal Pty to Bowen Coking Coal Limited, a company listed on the ASX on 1 July 2022 (see also Note 11). These receivables are measured at fair value through profit or loss. Annual Report 2024 New Hope Group 101 7. Receivables continued Critical estimate – fair value measurement of other receivables The determination of the fair value of other receivables relating to consideration for the sale to Bowen Coking Coal Limited involves judgement and is based on expectations in relation to the timing of the counter party receiving relevant approvals, as well as discount rate, credit risk, production and forecast price assumptions. 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. The above judgements, estimates and assumptions are subject to risk and uncertainty and may change as new information becomes available. The credit risk assessment has been updated to reflect most recent information available at 31 July 2024. See further information under Note 11. 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 26. 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 includes adjustments for credit risk. Information about the Group’s exposure to fair value and credit risk in relation to trade and other receivables is provided in Note 26. The Group assessed the ECL in relation to trade and other receivables in the current year and a loss allowance of $2,715,000 has been recorded (2023: $2,095,000). 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 45 days of recognition. Trade payables from provisionally priced purchases are carried at fair value. 2024 $000 2023 $000 Trade and other payables1 189,285 95,416 1. Included in trade payables are provisionally priced payables of $63,609,000 (2023: $166,000). Notes to the Financial Statements continued For the year ended 31 July 2024 New Hope Group 102 Annual Report 2024 Directors’ Report Auditor’s independence declaration Financial Report Directors’ declaration Independent Auditor’s Report Shareholder information Resources and reserves Corporate directory 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. 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 that have become obsolete over time. Self-generating and regenerating assets relate to the Group’s agricultural inventories and are valued at fair value less costs to sell. Carbon credits that are purchased to meet compliance obligations as part of mining operations are valued at the lower of cost and net realisable value. 2024 $000 2023 $000 Coal stocks 67,706 23,674 Raw materials and stores at cost 38,166 34,306 Less: provision for obsolescence (1,171) (2,508) Self-generating and regenerating assets 5,283 3,767 Carbon credits 6,769 – Total inventories 116,753 59,239 A. Inventory expense Coal stocks recognised as an expense during the year ended 31 July 2024 amounted to $773,533,000 (2023: $693,057,000). The Group did not recognise any inventory write-down to net realisable value for the financial year (2023: nil). 10. Assets held for sale and directly associated liabilities A. West Moreton 2024 $000 2023 $000 Property, plant and equipment 13,224 – Other assets 1,183 – Total assets held for sale 14,407 – 2024 $000 2023 $000 Provisions (13,329) – Other liabilities (601) – Total liabilities directly associated with assets held for sale (13,930) – At 31 July 2024, the Group was negotiating a potential transaction for the sale and purchase of the remaining West Moreton land assets and subsidiary companies. The assets classified as held for sale are disclosed in the QLD Coal Mining operating segment and considered to be non-core activities. The sale completed subsequently to 31 July 2024, refer to Note 29 for further details. Annual Report 2024 New Hope Group 103 10. Assets held for sale and directly associated liabilities continued B. Bridgeport 2024 $000 2023 $000 Property, plant and equipment 67,855 – Exploration and evaluation assets 7,914 – Other assets 10,872 – Total assets held for sale 86,641 – 2024 $000 2023 $000 Provisions (37,437) – Other liabilities (10,471) – Total liabilities directly associated with assets held for sale (47,908) – The Group is negotiating a potential transaction for the sale and purchase of the Bridgeport Group. If successful, the sale is expected to be completed within the next 12 months. A write-down of the assets of $5,932,000 has been recorded through impairment in the current period. The assets classified as held for sale are disclosed in the other operating segment and are considered to be non-core activities. 11. Financial guarantee liability On 24 December 2021 the Group signed a Sale and Purchase Agreement with Bowen Coking Coal Limited (ASX: BCB) 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). The sale completed on 1 July 2022. As part of the sale, the Group provided a financial guarantee facility to allow the provision of a guarantee to the State of Queensland for an amount of $61,586,000 in relation to New Lenton Coal Pty Ltd’s rehabilitation obligation. As part of the financial guarantee liability facility, the Group provided an insurance surety bond in favour of the State of Queensland. The terms associated with the letter of surety allow 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. During the financial year the underlying surety bond was revised downwards to $45,189,000 (2023: $47,872,000) following approval from the State of Queensland. The Group recognises the guarantee as a financial liability, measured at fair value having regard to a probability weighted assessment of risk of default. The financial guarantee provision balances are shown below, with the movement being taken through other expenses in the period. 2024 $000 2023 $000 Financial guarantee liability provided 11,375 11,968 Notes to the Financial Statements continued For the year ended 31 July 2024 New Hope Group 104 Annual Report 2024 Directors’ Report Auditor’s independence declaration Financial Report Directors’ declaration Independent Auditor’s Report Shareholder information Resources and reserves Corporate directory 12. 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. Gains and losses on disposals are determined by comparing proceeds with carrying amount. These are included in the Statement of Comprehensive Income. 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. An annual review of the appropriateness of the method of depreciation is undertaken, noting that the majority of assets were depreciated using the straight-line method in the 2024 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. 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 expenditure are capitalised as development costs up until the relevant area of interest reaches commercial production. The cost of acquiring reserves and resources is capitalised in the Statement of Financial Position as incurred. Mining reserves, leases, 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. Deferred stripping costs Expenditure incurred to remove overburden or waste material during the production phase of an open-cut mining operation is deferred to the extent it gives rise to future economic benefits. This expenditure is charged to operating costs on a units of production basis using the estimated average stripping ratio for the area being mined. Changes in estimates of average stripping ratios are accounted for prospectively. The stripping activity asset is subsequently depreciated on a units of production basis over the life of the identified component of the ore body that became more accessible as a result of the stripping activity. Annual Report 2024 New Hope Group 105 Notes Land and buildings mining $000 Land and buildings non-mining $000 Plant and equipment $000 Mining reserves and leases $000 Mine and port development $000 Oil and gas producing assets $000 Plant under construction $000 Right-of-use assets $000 Total $000 Year ended 31 July 2024 Balance at 1 August 2023 162,192 3,960 456,288 864,147 57,823 59,648 78,102 87,595 1,769,755 Additions 21,840 – 159,466 – 16,224 9,499 54,714 341 262,084 Movements in rehabilitation – – – – 31 5,190 – – 5,221 Remeasurement of assets1 – – – – – – – 25,452 25,452 Transfers within property plant and equipment (2,239) 196 32,816 – 10,982 – (43,892) 2,137 – Transfers from exploration and evaluation assets 14 – – – – – 3,322 – – 3,322 Transfers to assets held for sale 10 (13,254) (4) (2,149) – – (65,481) (250) (170) (81,308) Disposal of assets – – (3,815) – – – – (4,142) (7,957) Impairment charge 15 – – – – – (5,932) – – (5,932) Depreciation/amortisation expense (1,153) (106) (80,750) (63,516) (5,436) (6,246) – (7,215) (164,422) Balance at 31 July 2024 167,386 4,046 561,856 800,631 79,624 – 88,674 103,998 1,806,215 Year ended 31 July 2023 Balance at 1 August 2022 175,420 2,011 436,466 923,705 75,550 36,965 10,221 95,908 1,756,246 Additions 3,973 2,068 82,065 – 5,390 8,973 71,327 1,227 175,023 Movements in rehabilitation – – – – (4,356) 1,328 – – (3,028) Remeasurement of assets1 – – – – – – – (1,770) (1,770) Transfers within property plant and equipment – – 2,356 – 147 – (2,503) – – Transfers from exploration and evaluation assets 14 – – – – – 17,285 – – 17,285 Disposal of assets (7,518) (12) (5,024) – (5,650) – (943) – (19,147) Impairment charge 15 (8,583) – – – (8,361) – – – (16,944) Depreciation/amortisation expense (1,100) (107) (59,575) (59,558) (4,897) (4,903) – (7,770) (137,910) Balance at 31 July 2023 162,192 3,960 456,288 864,147 57,823 59,648 78,102 87,595 1,769,755 1. Remeasurement of assets relates to remeasurement of right-of-use assets due to a change in lease terms. 12. Property, plant and equipment continued Notes to the Financial Statements continued For the year ended 31 July 2024 New Hope Group 106 Annual Report 2024 Directors’ Report Auditor’s independence declaration Financial Report Directors’ declaration Independent Auditor’s Report Shareholder information Resources and reserves Corporate directory 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 15 for further detail on the significant judgements and estimates used in impairment assessment. (B) Estimation of coal and oil and gas 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 2023). 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 closure 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 15 for details on impairment of assets. (C) New Acland Stage 3 approvals An assessment was undertaken based on these key developments as at 31 July 2024 for any potential indicators of impairment to the Coal Mining QLD operations CGU assets. Refer to Note 15 for details on impairment of assets. Annual Report 2024 New Hope Group 107 13. Intangible assets Accounting Policy Water rights and mining information 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 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 but 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 15 for details of impairment testing. Goodwill impairments are not reversible. Software $000 Goodwill $000 Water rights $000 Mining information $000 Total $000 Year ended 31 July 2024 Balance at 1 August 2023 414 5,595 10,304 52,326 68,639 Additions – – 521 – 521 Amortisation charge (112) – (562) (2,977) (3,651) Disposal – – (484) – (484) Transfers to assets held for sale (21) – – – (21) Balance at 31 July 2024 281 5,595 9,779 49,349 65,004 Year ended 31 July 2023 Balance at 1 August 2022 400 5,595 10,337 55,295 71,627 Additions 154 – 522 – 676 Amortisation charge (140) – (555) (2,969) (3,664) Balance at 31 July 2023 414 5,595 10,304 52,326 68,639 Critical estimate – goodwill impairment assessment Management uses judgement in determining the CGUs that should be used for impairment testing and allocating goodwill that arises from business combinations to these CGUs. The Group’s goodwill of $5,595,000 (2023: $5,595,000) relates to the acquisition of Queensland Bulk Handling Pty Ltd (QBH). Refer to Note 15 for the details regarding the impairment assessments performed at 31 July 2024 and any related impairment charge recognised in the Statement of Comprehensive Income. Notes to the Financial Statements continued For the year ended 31 July 2024 New Hope Group 108 Annual Report 2024 Directors’ Report Auditor’s independence declaration Financial Report Directors’ declaration Independent Auditor’s Report Shareholder information Resources and reserves Corporate directory 14. 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 that does not satisfy these criteria is expensed. Notes 2024 $000 2023 $000 Total exploration and evaluation assets 16,499 18,194 Reconciliation Balance at 1 August 18,194 71,043 Additions 9,699 11,237 Movements in rehabilitation (132) 457 Transfers to property, plant and equipment (3,322) (17,285) Transfers to assets held for sale 10 (7,940) – Impairment charge – (47,258) Balance at 31 July 16,499 18,194 Critical estimate – 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 resource. The key judgement applied in considering whether the costs should be capitalised, is that costs are expected to be recovered through successful development or sale of the relevant area. There are a number of factors that are 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 15 for the details regarding the impairment assessments performed at 31 July 2024 and any related impairment charge recognised in the Statement of Comprehensive Income. Annual Report 2024 New Hope Group 109 15. 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). Goodwill is tested for impairment annually, or more frequently if events or changes in circumstances indicate that the CGU to which it is allocated 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 as outlined in Note 1. B. Impairment indicator assessment of recoverable amount The Company performed an impairment indicator assessment across all CGUs and exploration and evaluation assets for the 2024 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 that have historically been assessed using 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 New Acland Mine, specifically New Acland Mine Stage 3. During the 2024 financial year the Company continued to consider the potential impact that recent developments in the legal and regulatory environment in relation to the New Acland Mine Stage 3 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 New Acland Mine. A summary of key events pertaining to New Acland Mine Stage 3 approvals since the grant of the New Acland Mine Stage 3 Associated Water Licence (AWL) on 20 October 2022 by the Department of Regional Development, Manufacturing and Water is detailed below: • On 15 May 2023, the Oakey Coal Action Alliance (OCAA) launched a new legal challenge in the Land Court of Queensland against New Acland Mine Stage 3 seeking to overturn the decision of the Queensland Department of Regional Development, Manufacturing and Water (DRDMW) to grant New Acland Coal an AWL. New Acland Coal has also sought amendment of two specific conditions of the AWL concerning mining a small area of basalt and final landform requirements. This appeal is proceeding concurrently with the OCAA appeal. • On 14 July 2023, the OCAA filed a stay application in the Land Court seeking orders preventing New Acland Coal from carrying out mining activity impacting upon groundwater at New Acland Mine Stage 3 until OCAA’s legal challenge to the grant of the AWL by the Queensland Government is heard and determined by the Land Court. • On 14 August 2023, the OCAA withdrew its stay application following discussions between both parties where New Acland Coal undertook to not commence the mining of overburden and coal from the yet to be developed Manning Vale West Pit until the earlier of the Land Court of Queensland decision and an agreed date; presently 1 June 2025. Resolving the stay application with the OCAA allowed New Acland Coal to commence mining coal from the Manning Vale East Pit, construct the Lagoon Creek Crossing to provide access to the Willeroo Pit, and commence mining of overburden and coal in the Willeroo Pit. While mining of overburden and coal in Manning Vale West Pit is restricted, New Acland Coal may undertake particular surface works, including building infrastructure, exploration and bore drilling on the site of the Manning Vale West Pit. • The Land Court of Queensland is yet to set dates for the hearing of appeals to the grant of the AWL by the DRDMW. Given the above developments during the year ended 31 July 2024, the Directors reviewed the carrying amount for the CGU and whether there were any further indicators of impairment at 31 July 2024 or factors suggesting a reversal of impairment may be appropriate. No impairment indicators or reversal of impairment indicators were identified during the period ended 31 July 2024, thus no impairment charge has been recognised in the Statement of Comprehensive Income (2023: nil). Notes to the Financial Statements continued For the year ended 31 July 2024 New Hope Group 110 Annual Report 2024 Directors’ Report Auditor’s independence declaration Financial Report Directors’ declaration Independent Auditor’s Report Shareholder information Resources and reserves Corporate directory The carrying values as at 31 July 2024 and the prior period are outlined below: 2024 $000 2023 $000 Property, plant and equipment Land and buildings – mining 17,569 19,552 Plant and equipment 36,019 3,459 Mining reserves, leases and development assets 30,649 68 Plant under construction 19,976 28,118 Intangibles Software – 21 Exploration and evaluation Exploration and evaluation at cost 12,926 7,783 Total 117,139 59,001 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, as the AWL was granted in the 2023 financial year and operations have recommenced, it is expected that the financial obligations will be met. Should future legal outcomes result in long term cessation of operations an onerous contract may need to be recognised, if the unavoidable costs of the contract cannot be mitigated. 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 the New Acland Mine Stage 3 project do not proceed as anticipated, 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 2024 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, outlined in (B)(ii). The carrying value of the port operation CGU assets is set out below: 2024 $000 2023 $000 Property, plant and equipment Land and buildings – mining 1,224 1,300 Plant and equipment 59,104 65,976 Right-of-use assets 75,696 53,740 Port development 3,469 3,679 Plant under construction 2,828 1,456 Intangibles Software 1 146 Goodwill 5,595 5,595 Total 147,917 131,893 (ii) Goodwill Goodwill relates to the acquisition of Queensland Bulk Handling Pty Ltd (port operations), $5,595,000, (2023: $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 cash flows have been discounted using a post-tax discount rate of 10.0 per cent (2023: 10.0 per cent). At 31 July 2024, 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 2024 financial year (2023: nil). The port operations CGU is part of the Group’s Coal Mining QLD segment. Annual Report 2024 New Hope Group 111 (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 was 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. In the prior period, the North Surat Coal Project was fully impaired due to the cancellation of previously proposed mines in the area, which were to share infrastructure costs. In the current period, no indicators have been identified to suggest an impairment reversal would be appropriate. The original operating plan of the North Surat Coal Project was to act in coordination with the other projects, and there has been no material change in circumstances since the prior period assessment. No costs have been capitalised to the project for the current period (2023: impairment of $43,094,000) and the carry value is nil (2023: nil). (iv) Oil producing and exploration assets In the prior period the Company determined that indicators of impairment existed in respect of its oil and gas producing and exploration assets. The indicators arose due to inflationary pressures in the sector, the Company’s future capital planning and the implications for pursuit and development of current exploration permits. The recoverable amount of the oil and gas producing assets was determined based on a VIU calculation using discounted cash flows. This impairment analysis resulted in nil impairment to producing assets, and $21,108,000 impairment of exploration and evaluation assets. The Group is negotiating a potential transaction for the sale and purchase of the Bridgeport group, which has resulted in the oil and gas CGU being classified as held for sale. Refer to Note 10(b) for details of the potential transaction and impairment charge on the assets. The carrying value and impairment charge calculated is outlined below: 2024 2023 Carrying value $000 Impairment charge $000 Carrying value $000 Impairment charge $000 Property, plant and equipment – – 2,328 – Oil and gas producing assets – – 59,648 – Exploration and evaluation – – 7,395 21,108 Total – – 69,371 21,108 Critical estimate – exploration and evaluation expenditure 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, carbon costs, reserve and resource estimates (refer to Note 12), 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. 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. The Company’s obligations to meet the legislative requirements for carbon emissions targets have been considered in the impairment indicator assessment performed by the Group. Based on initial modelling, the impacts as at 31 July 2024 are not considered to have a material impact on the impairment indicator assessment. Changes to the beforementioned factors 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. Notes to the Financial Statements continued For the year ended 31 July 2024 New Hope Group 112 Annual Report 2024 Directors’ Report Auditor’s independence declaration Financial Report Directors’ declaration Independent Auditor’s Report Shareholder information Resources and reserves Corporate directory 16. 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. Employee benefits 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 that 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. Restoration, rehabilitation and environmental expenditure 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. Safeguard Mechanism Reforms to the Australian Government’s Safeguard Mechanism took effect on 1 July 2023. The reformed Safeguard Mechanism requires facilities with Scope 1 emissions of more than 100,000 tonnes of carbon dioxide equivalent per year to progressively reduce Scope 1 emissions against a determined baseline by 4.9 per cent per annum to 2030. The Group’s Bengalla Mine qualifies as a covered production facility under the Safeguard Mechanism. Where estimated emissions are in excess of the baseline for the period, a provision is recognised based on the quantum of excess emissions. Where Australian Carbon Credit Units (ACCUs) are owned and will be surrendered to settle the liability, the cost base of credits held is used in measuring the provision. Where sufficient credits are not owned, the provisions are measured using current market value of credits at reporting date. 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. Annual Report 2024 New Hope Group 113 16. Provisions continued Safeguard Mechanism $000 Employee benefits $000 Restoration/ rehabilitation $000 Total $000 2024 Current 2,970 29,440 16,885 49,295 Non-current – 8,342 108,085 116,427 2,970 37,782 124,970 165,722 2023 Current – 25,470 12,454 37,924 Non-current – 8,414 153,916 162,330 – 33,884 166,370 200,254 A. Employee benefits 2024 $000 2023 $000 Current long service leave obligations expected to be settled after 12 months 8,927 8,100 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 Notes 2024 $000 2023 $000 Movements Balance at 1 August 166,370 164,870 Provision capitalised 5,089 (2,571) Disposal – Oakleigh – (2,399) Provision transferred to liabilities directly associated with assets held for sale 10 (49,090) – Provision charged/(released) to profit or loss (4,145) 438 Charged to profit or loss – unwinding of discount 22(d) 6,746 6,032 Balance at 31 July 124,970 166,370 C. 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 Coal, alleging claims approximating $175,000,000 plus interest and costs. On 24 February 2023, the parties to the proceedings entered into a binding Heads of Agreement on a no admission of liability basis agreeing to effect settlement through entry into a Deed of Company Arrangement proposed by the Company, which was subsequently approved by creditors of NEC and Colton Coal on 8 March 2023. On 23 March 2023, in accordance with the Heads of Agreement and the Deed of Company Arrangement, a settlement sum was paid into the deed fund in full and final settlement of the proceedings. New Hope and the other parties to the proceedings have been released from all matters relating to the proceedings and the proceedings have been discontinued. There were no costs incurred during the reporting period relating to this matter (2023: $57,142,000 total liquidation related expenses (Note 3(b)) (inclusive of $6,142,057 legal expenses) and offsetting insurance recoveries of $19,359,000 (Note 3(a)). Notes to the Financial Statements continued For the year ended 31 July 2024 New Hope Group 114 Annual Report 2024 Directors’ Report Auditor’s independence declaration Financial Report Directors’ declaration Independent Auditor’s Report Shareholder information Resources and reserves Corporate directory Significant estimate – determination of reserves estimates and rehabilitation costs 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 judgement and experience to provide for these costs over the life of the operations. The Group makes estimates about the future cost of rehabilitating tenements that 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 is also a key judgement that affects the timing of the payment of closedown and restoration costs as detailed in Note 12. 17. 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 that 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. 2024 $000 2023 $000 Cash at bank and on hand 637,570 650,654 Short-term deposits 1,190 80,000 Total cash and cash equivalents 638,760 730,654 A. Cash at bank and on hand Cash at bank and on hand includes deposits for which there is a short-term identified use in the operating cash flows of the Group and attracts interest at rates between 0.0 per cent and 4.5 per cent (2023: 0.0 per cent and 5.2 per cent). B. Risk exposure Information about the Group’s exposure to foreign exchange risk and credit risk is detailed in Note 26. Annual Report 2024 New Hope Group 115 18. Other financial assets Accounting Policy Other financial assets comprise investments that are non-derivative financial assets with fixed or determinable payments and fixed maturities that the Group’s management has the positive intention and ability to hold to maturity. 2024 $000 2023 $000 Financial assets at fair value through profit or loss Managed investment funds 185,765 19,984 Equity swap derivative assets 198 – Total other financial assets 185,963 19,984 The Group holds investments in various managed investment funds to meet short- to medium-term capital needs. These funds are invested in a combination of cash, fixed interest securities, equities and other alternatives and are generally liquid between one and three days. Some of these investments incur an early redemption fee; however, the Group does not expect to access these funds prior to maturity. During the period the Group reached agreement with Bowen Coking Coal (BCB) and its senior lender to amend the financial guarantee facility to allow for the provision of a guarantee to the State of Queensland as part of the Group’s divestment of New Lenton Coal Pty to BCB in July 2022 (refer to Note 11). In accordance with the amended facility agreement, during the period BCB issued the Group with 76,923,000 BCB shares, with the issued value of the shares in settlement of the interest receivable on the loan facility up to 30 September 2023. The majority of these shares were subsequently sold, with an ending balance of 5,657,585 shares remaining in an equity swap position at the end of the period. BCB also issued the Group with 100,000,000 warrants that can be converted into BCB shares at an exercise price of 11.44 cents per share, with proceeds allocated to settlement of any accrued interest of the financial guarantee facility. The warrants expire on 30 September 2024 and are exercisable at the discretion of the Group. No warrants have been exercised during the 2024 financial year and the fair value of these warrants is not material at 31 July 2024. These assets are classified as financial assets at fair value through profit or loss (see Note 3(a)) as they provide cash flows that are not solely payments of principal and interest. 19. 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. 2024 $000 2023 $000 Listed equity securities 116 163 Unlisted equity securities – 210,476 Total equity securities 116 210,639 Notes to the Financial Statements continued For the year ended 31 July 2024 New Hope Group 116 Annual Report 2024 Directors’ Report Auditor’s independence declaration Financial Report Directors’ declaration Independent Auditor’s Report Shareholder information Resources and reserves Corporate directory Malabar Resources Limited On 27 July 2022, the Group, through a wholly-owned subsidiary, acquired a 15.0 per cent interest in Malabar Resources Limited (Malabar) for a total investment of $94,483,000 and made the irrevocable election to classify the investment as fair value through OCI. Malabar is an unlisted public company whose flagship asset is the Maxwell Mine, an underground metallurgical coal project located 10kms southwest of Muswellbrook in the Hunter Valley. Construction of the project commenced in May 2022, and first coal was washed and sold in June 2023. In February 2024, the Group acquired an additional 4.95 per cent stake in Malabar through participation in an equity raising. The increased interest, in conjunction with other factors, has led the Group to conclude that from that date it exercises significant influence over Malabar. Accordingly, the investment has been reclassified as an equity accounted associate (refer Note 20), with the previously recorded fair value for 15.0 per cent interest being transferred as deemed cost of investment. An additional 0.02 per cent stake was purchased from other shareholders subsequent to the equity raising, with an ending interest in Malabar of 19.97 per cent as at 31 July 2024, at an additional cost during the year of $80,654,000. 20. Investment in associates Accounting Policy Associates are all entities over which the Group has significant influence and are neither subsidiaries nor jointly controlled. This is generally the case where the Group holds between 20.0 per cent and 50.0 per cent of the voting rights. Significant influence is the power to participate in the financial and operating decisions of the investee, but not have control or joint control over those decisions. Investments in associates are accounted for in the Consolidated Financial Statements using the equity method of accounting, after initially being recognised at cost. The Group’s investment in associates includes the identifiable assets and liabilities and any embedded goodwill at the acquisition date of the investment. The Group’s share of its associates’ post-acquisition profits or losses is recognised in the profit or loss and its share of post-acquisition other comprehensive income is recognised in the Consolidated Statement of Comprehensive Income. The cumulate post-acquisition movements are adjusted against the carrying value of the investment. Dividends received/receivable from associates are recognised in the Consolidated Financial Statements by reducing the carrying amount of the investment. When the Group’s share of losses in an associate equals or exceeds its interest in the associate, including any unsecured receivables, the Group does not recognise further losses, unless it has incurred obligation or made payments on behalf of the associate. If there is objective evidence that the group’s net investment in an associate is impaired, the requirements of AASB136 Impairment of Assets are applied to determine whether it is necessary to recognise any impairment loss with respect to the Group’s investment. When necessary, the entire carrying amount of the investment (including goodwill) is tested for impairment in accordance with AASB136 as a single asset by comparing its recoverable amount (higher of value in use and fair value less costs of disposal) with its carrying amount. Any impairment loss recognised is not allocated to any asset, including goodwill that forms part of the carrying amount of the investment. Any reversal of that impairment loss is recognised in accordance with IAS 36 to the extent that the recoverable amount of the investment subsequently increases. As disclosed in Note 19, in February 2024 the Group acquired an additional 4.95 per cent interest in Malabar through participation in an equity raise. At that time, the Directors concluded that the Group exercises significant influence over Malabar. An additional 0.02 per cent stake was purchased from other shareholders, with an ending interest in Malabar of 19.97 per cent as at 31 July 2024. The Group reassessed the fair value of its interest in Malabar Resources at the date of reclassification, with no material changes from previous valuation. This has resulted in nil fair value gain or loss recorded in the 2024 financial year (2023: $116,100,000 gain, which was taken through other comprehensive income). Significant judgements and estimates Significant influence assessment of Malabar Following its increased investment in Malabar during the period, the Directors have concluded that the Group now exerts significant influence over Malabar. In February 2024, New Hope increased its interest in Malabar from 15 to 19.95 per cent as a result of participation in an equity raise, with an additional 0.02 per cent purchased subsequently. Notwithstanding it holds just under 20.0 per cent, other changes to Malabar’s share register and the fact that New Hope has representation on the board have led the Board to conclude that the Group exerts significant influence and accordingly will apply equity accounting for its investment from the date of its increased investment. Annual Report 2024 New Hope Group 117 20. Investment in associates continued 2024 $000 2023 $000 Investment in associates 291,754 – Reconciliation of changes in the carrying value of associates 2024 $000 2023 $000 Opening balance at 1 August – – Reclassification of an equity investment to equity accounted associate – Malabar 210,476 – Purchase of additional equity – Malabar 80,564 – Share of results from equity accounted associates 286 – Share of other comprehensive income of associates 428 – Closing balance 31 July 291,754 – Contribution to Group result Carrying value Year ended 31 July 2024 $000 2023 $000 2024 $000 2023 $000 Malabar Resources Limited 286 N/A1 291,754 N/A1 Share of results from associates 286 291,754 1. The Group’s investment in Malabar was accounted for under equity accounting for the first time in the current period, following an increase in ownership interest. Refer to Note 19 for prior period details of the equity investment. Extract of associates financial information material to the Group – Malabar 2024 $000 2023 $000 Current assets 211,575 N/A Non-current assets 588,014 N/A Current liabilities (40,480) N/A Non-current liabilities (217,080) N/A Net assets 542,029 N/A Group’s percentage holding 19.97% 15.00% Group’s share of total net assets 108,243 N/A Mining reserves and identifiable assets 183,511 N/A Equity accounted carrying value 291,754 N/A Revenue1 15,576 N/A Profit after tax1 1,435 N/A Other comprehensive income1 2,146 N/A Dividends received by NHG from associate – N/A Group’s share of capital commitments 24,206 N/A Group’s share of contingent liabilities – N/A 1. Figures calculated from commencement date of classification as an investment in associate (21 February 2024). Notes to the Financial Statements continued For the year ended 31 July 2024 New Hope Group 118 Annual Report 2024 Directors’ Report Auditor’s independence declaration Financial Report Directors’ declaration Independent Auditor’s Report Shareholder information Resources and reserves Corporate directory 21. Unearned revenue Unearned revenue represents the revenue received in advance in relation to the sale of gas. During the current period these balances have been classified as liabilities associated with assets held for sale (refer to Note 10(b)) (2023 balances: $1,281,000 current and $2,349,000 non-current). 22. Borrowings Accounting Policy Borrowings comprise interest-bearing loans and lease liabilities, net of finance costs. Refer to each sub-section that follows for details of the Group’s accounting policies on interest-bearing loans (secured and unsecured), leases liabilities and finance income and expense. 2024 $000 2023 $000 Current liabilities Lease liabilities 9,471 9,787 Unsecured convertible notes1 258,730 – Total current 268,201 9,787 Non-current liabilities Lease liabilities 93,293 75,136 Total non-current 93,293 75,136 Total borrowings 361,494 84,923 1. Net of transaction costs capitalised and excludes derivative liability portion of convertible notes recorded separately. Details of the Group’s exposure to risks arising from current and non-current borrowing are set out below. A. Unsecured convertible notes Accounting Policy On issuance of convertible notes where the conversion option is classified as a derivative liability, the fair value of the conversion option is determined and recorded as a stand-alone instrument, with the remaining value being allocated to the liability component of the note. The conversion option is measured at fair value each reporting period, with gains or losses recognised in the Statement of Comprehensive Income. The liability component of the note is measured at amortised basis using the effective interest rate until extinguished on conversion or redemption. Transaction costs are allocated between the liability and the derivative liability components based on their respective fair values. The transaction costs relating to the derivative liability are expensed in profit or loss. The increase in the liability component of the note due to the passage of time is recognised as a finance cost. On issuance of convertible notes where the conversion option is classified as equity, the fair value of the liability component is determined using a market rate for an equivalent non-convertible note. The liability component is initially recognised at fair value. After initial recognition, the liability is measured at amortised cost using the effective interest rate method. The increase in the 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. Transaction costs are allocated between the liability and equity components based on their respective fair values. The carrying amount of the conversion option is not remeasured in subsequent years. Annual Report 2024 New Hope Group 119 22. Borrowings continued A. Unsecured convertible notes continued (i) Issue of convertible notes On 12 July 2024, the Company issued convertible notes (Notes) with an aggregate principal amount of $300,000,000 maturing on 12 July 2029. There has been no movement in the number of these Notes since the issue date. The Notes entitle the holders to require the Company to convert the Notes into ordinary shares of the Company at an initial conversion price of $6.63 per share (subject to adjustments in certain circumstances) at any time during the period from 22 August 2024 to the date falling five business days prior to the maturity date. The Company has the right to settle such conversion in cash or equity at its discretion. The Notes also include an option for the holder to redeem early on 12 July 2027 in cash. The Notes bear interest at a rate of 4.25 per cent per annum payable semi-annually in arrears on 12 July and 12 January commencing 12 January 2025. As the terms of the Notes provide the Company with the right to settle any conversion of the Notes in cash, the conversion option is classified as a derivative liability. As the Notes entitle the holders to require the Company to convert the Notes at any time from 22 August 2024, the liability relating to the Notes is classified as current – although the Company does not expect to settle these Notes within the next 12 months. The net proceeds from the Notes, after deducting all the related costs and expenses, were $291,138,000. The fair value of the conversion option derivative liability component of the Notes was fair valued at the issuance date using the Black-Scholes option pricing model. The net proceeds received from the issuance of the Notes have been allocated as follows on initial recognition: Convertible notes – initial recognition of components 2024 $000 Opening balance 1 August 2023 – Nominal value of convertible notes issued 300,000 Derivative liability component of the convertible notes1 (34,500) Transaction fees2 (7,842) At inception 257,658 Opening balance 257,658 Interest accrued on convertible notes 1,072 Unsecured current liabilities as at 31 July 2024 258,730 1. Refer to Note 23 for the derivative liability as at 31 July 2024. 2. Transaction costs are proportionately allocated based on the respective fair values of the derivative liability and liability component of the notes, with $7,842,000 allocated to the liability component and $1,020,000 to the derivative liability component (expensed immediately) on initial recognition. (ii) Capped call options As set out in (i) above, the Company has the option to settle any conversion requests from holders in respect of the Notes in cash or in equity. In connection with this conversion settlement option, the Company entered into capped call option transactions, which are expected to reduce potential dilution to shareholders upon conversion of the Notes by offsetting any cash payments the Company may be required to make, at its election, in excess of the principal amounts on conversion. The capped call options consist of lower and upper strike call options that align to the value and maturity profile of the Notes. The capped call options are accounted for as a derivative asset and are recognised at their fair value. On initial recognition, the capped call options were recognised at a fair value of $26,160,000, reflecting the premium paid. The capped call options will be fair valued through profit or loss at each reporting period. Refer to Note 23 for the derivative asset as at 31 July 2024. Notes to the Financial Statements continued For the year ended 31 July 2024 New Hope Group 120 Annual Report 2024 Directors’ Report Auditor’s independence declaration Financial Report Directors’ declaration Independent Auditor’s Report Shareholder information Resources and reserves Corporate directory (iii) Buy-back of 2021 convertible notes During the prior period, the Company undertook a process to buy-back the unsecured convertible notes that it had issued during July 2021 (‘2021 notes’). On 21 December 2022, the Company committed to repurchasing $75,800,000 of the principal amount of the 2021 Notes. The repurchase price was determined with reference to the volume weighted average trading price of the Company’s shares over the five-day period prior to settlement. The settlement of these repurchases occurred over a period from 3 January 2023 to 14 March 2023. In addition, the Company completed on-market buy-backs for an additional $12,800,000 of the principal amount of the 2021 notes in December 2022, and $18,700,000 of the principal amount during April and May 2023. The total consideration paid on settlement of repurchase of the 2021 notes was $367,300,000. The total accounting gain recognised during the prior period relating to the convertible note revaluations and repurchases was $17,690,000. The difference between the value of the consideration attributable to the repurchase of the liability component and the repurchase amount, totalling $284,710,000, was recorded in equity in the prior period with the associated tax benefit of $78,007,000 also recorded in equity. Additionally, during the prior period noteholders converted notes with a carrying value of $92,700,000 to ordinary shares. 2021 Notes 2023 $000 Liability component Opening balance 191,241 Conversion to ordinary shares1 (92,700) Gain on remeasurement (17,446) Coupon repayment (1,483) Buy-back (82,558) Interest on convertible notes 2,946 Unsecured non-current liabilities – 1. 50,037,233 ordinary shares were issued due to note conversions during the 2023 financial year. All 2021 notes had been repurchased or converted as at 31 July 2023. Annual Report 2024 New Hope Group 121 22. Borrowings continued B. Lease liabilities Accounting Policy Lease liabilities are recognised, measured, presented and disclosed in accordance with AASB16 Leases (AASB16). 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 • 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. 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. Notes to the Financial Statements continued For the year ended 31 July 2024 New Hope Group 122 Annual Report 2024 Directors’ Report Auditor’s independence declaration Financial Report Directors’ declaration Independent Auditor’s Report Shareholder information Resources and reserves Corporate directory The maturity profile of lease liabilities recognised at the end of the financial year is: Lease liabilities 2024 $000 2023 $000 Lease liabilities are payable as follows: Within one year 14,485 13,804 Later than one year but not later than five years 41,562 37,032 Later than five years 92,160 69,817 Minimum lease payments 148,207 120,653 Future finance charges (45,443) (35,730) Total lease liability 102,764 84,923 The present value of lease liabilities is as follows: Within one year 9,471 9,787 Later than one year but not later than five years 25,143 24,293 Later than five years 68,150 50,843 Total lease liability 102,764 84,923 Amounts recognised in the Statement of Comprehensive Income during the financial year: Depreciation expense on right-of-use assets 7,215 7,770 Interest expense on lease liabilities 4,551 4,287 Expense relating to short-term leases1 224 207 Total expense for leases recognised in the Statement of Comprehensive Income 11,990 12,264 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. 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: Opening 2024 $000 Cash flows $000 Non-cash changes1 $000 Closing 2024 $000 Changes arising in liabilities from financing activities Lease liabilities 84,923 (14,322) 32,163 102,764 Unsecured convertible notes – 291,139 (32,409) 258,730 Total liabilities from financing activities 84,923 276,817 (246) 361,494 Changes arising in liabilities from financing activities Opening 2023 $000 Cash flows $000 Non-cash changes1 $000 Closing 2023 $000 Lease liabilities 97,280 (14,275) 1,918 84,923 Unsecured convertible notes 191,241 (194,187) 2,946 – Total liabilities from financing activities 288,521 (208,462) 4,864 84,923 1. Total non-cash change in lease liabilities during the 2024 financial year includes lease remeasurements of $25,452,000 relating to Queensland Bulk Handing port lease market rent review mechanism. In the 2023 financial year, total non-cash change includes a lease addition of $1,227,000 and lease remeasurements of $3,596,000. The non-cash change in unsecured convertible notes during 2024 includes derivative liability conversion option. The fair value of interest-bearing liabilities materially approximates their respective carrying values as at 31 July 2024. Annual Report 2024 New Hope Group 123 22. Borrowings continued 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, and 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. 2024 $000 2023 $000 Recognised in the Statement of Comprehensive Income Interest income 24,376 38,478 Finance income 24,376 38,478 Interest on unsecured convertible notes (1,072) (2,946) Interest expense on lease liabilities (4,551) (4,287) Unwinding of discount on provisions (6,746) (6,032) Other financing costs (749) (940) Financing expenses (13,118) (14,205) E. Contingent liabilities Details and estimates of maximum amounts of contingent liabilities for which no provision is included in the accounts are as follows: 2024 $000 2023 $000 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 18,909 16,765 No losses are anticipated in respect of any of the above contingent liabilities – – The parent Company has given secured guarantees in respect of: (i) Mining restoration and rehabilitation 142,292 142,197 The liability has been recognised by the Group in relation to its rehabilitation obligations (ii) Statutory body suppliers, financiers and various other entities 18,909 16,765 With the exception of the Financial Guarantee Liability of $11,375,000 recognised in relation to Lenton (refer Note 11), no liabilities were recognised by the consolidated entity in relation to these guarantees as no losses are foreseen on these contingent liabilities. F. Lines of credit During the period the Group’s bank guarantee facility expired, which has been replaced with a surety bonding facility solely available for rehabilitation obligations and a bank guarantee facility for all other purposes. Unrestricted access was available at 31 July 2024 to the following lines of credit available of $243,000,000 (2023: $250,000,000). Notes to the Financial Statements continued For the year ended 31 July 2024 Guarantee facility – available Guarantee facility – utilised Unused at balance date 243,000 81,799 161,201 250,000 91,038 158,962 2024 $000 2023 $000 New Hope Group 124 Annual Report 2024 Directors’ Report Auditor’s independence declaration Financial Report Directors’ declaration Independent Auditor’s Report Shareholder information Resources and reserves Corporate directory 23. Derivative financial instruments Accounting Policy Commodity hedging and foreign exchange hedging 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. FEC $000 FX options $000 Cash flow hedges commodity swaps $000 Total $000 2024 Notional amounts Nil US$730,000 US$81,392 Carrying amount of the hedging instrument: Assets – 2,859 34,378 37,237 Liabilities – (8,014) – (8,014) Total carrying amount of the hedging instrument – (5,155) 34,378 29,223 Change in value of hedging instrument (i) – 1,804 (86,524) (84,720) Change in value of hedged item (i) – (1,804) 86,524 84,720 Change in value of the hedging instrument recognised in reserve (ii) – (7,005) 21,968 14,963 Hedge ineffectiveness recognised in profit or loss (iii) – – – – Amount reclassified from hedge reserve to profit or loss – 8,809 (108,492) (99,683) Balance in cash flow hedge reserve for continuing hedges (iv) – (5,155) 34,378 29,223 Notes: (i) Amounts related to change in value include time value components. (ii) Hedge effectiveness is the extent to which the changes in fair value of the hedging instrument offset 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 $20,456,000. Annual Report 2024 New Hope Group 125 23. Derivative financial instruments continued FEC $000 FX options $000 Cash flow hedges commodity swaps $000 Total $000 2023 Notional amounts Nil US$700,000 US$228,050 Carrying amount of the hedging instrument: Assets – 2,849 120,902 123,751 Liabilities – (9,808) – (9,808) Total carrying amount of the hedging instrument – (6,959) 120,902 113,943 Change in value of hedging instrument (i) 1,922 155 255,099 257,176 Change in value of hedged item (i) (1,922) (155) (255,099) (257,176) Change in value of the hedging instrument recognised in reserve (ii) 1,922 (31,715) 280,292 250,499 Hedge ineffectiveness recognised in profit or loss (iii) – – – – Amount reclassified from hedge reserve to profit or loss – 31,870 (25,193) 6,677 Balance in cash flow hedge reserve for continuing hedges (iv) – (6,959) 120,902 113,943 Notes: (i) Amounts related to change in value include time value components. (ii) Hedge effectiveness is the extent to which the changes in fair value of the hedging instrument offset 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 $(79,760,000). 2024 $000 2023 $000 Current assets Derivatives – hedging instruments 36,522 92,658 Derivatives – capped call option asset 23,026 – Non-current assets Derivatives – hedging instruments 715 28,475 Total derivatives financial assets 60,263 121,133 2024 $000 2023 $000 Current liabilities Derivatives – hedging instruments (4,151) (6,825) Derivatives – conversion option on convertible bond (30,540) – Non-current liabilities Derivatives – hedging instruments (3,863) (366) Total derivatives financial liabilities (38,554) (7,191) Notes to the Financial Statements continued For the year ended 31 July 2024 New Hope Group 126 Annual Report 2024 Directors’ Report Auditor’s independence declaration Financial Report Directors’ declaration Independent Auditor’s Report Shareholder information Resources and reserves Corporate directory 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 2024, Derivative financial instruments represented assets with a fair value of $60,263,000 (2023: $121,133,000) and liabilities of $38,554,000 (2023: $7,191,000). At balance date the details of outstanding contracts are: (i) Foreign exchange options Sell US dollars Buy Australian dollars Average exchange rate 2024 USD $000 2023 USD $000 2024 Rate 2023 Rate Maturity 0 to 6 months 280,000 240,000 0.6507 0.6633 6 to 12 months 180,000 300,000 0.6489 0.6669 More than 12 months 270,000 160,000 0.6516 0.6585 Total foreign exchange contracts 730,000 700,000 (ii) Commodity swaps Sell Coal USD price Average Coal USD price 2024 USD $000 2023 USD $000 2024 Price 2023 Price Maturity 0 to 6 months 67,752 101,550 $213.05 $238.94 6 to 12 months 7,440 69,000 $155.00 $230.00 More than 12 months 6,200 57,500 $155.00 $230.00 Total commodity swaps 81,392 228,050 (iii) Capped Call Options (Convertible bond) Buy NHC share call option Sell NHC share call option Average share price 2024 $000 2023 $000 2024 Price 2023 Price Maturity Bought – American Call Option – expiring 12 July 2029 300,000 – $6.63 – Sold – American Call Option – expiring 12 July 2029 300,000 – $9.18 – Total capped call 600,000 – N/A – (iv) Conversion Option (Convertible bond) Sell NHC share call option Average share price 2024 $000 2023 $000 2024 Price 2023 Price Maturity Sold – American Call Option – expiring 12 July 2029 300,000 – $6.63 – Total conversion option on Convertible bond 300,000 – N/A – B. Credit risk exposures Credit risk also arises from the potential failure of counterparties to meet their obligations under the respective contracts at maturity. The consolidated entity is exposed to loss in the event that counterparties fail to deliver the contracted amount. Annual Report 2024 New Hope Group 127 24. 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 2024 $000 2023 $000 2023 final dividend at 21.0 cents per share – 100% franked (tax rate – 30%) 177,520 271,449 (paid on 7 November 2023 (2023: 8 November 2022)) 2023 special dividend at 9.0 cents per share – 100% franked (tax rate – 30%) 76,080 218,911 (paid on 7 November 2023 (2023: 8 November 2022)) 2024 interim dividend at 17.0 cents per share – 100% franked (tax rate – 30%) 143,707 261,570 (paid on 1 May 2024 (2023: paid 3 May 2023)) 2023 special dividend at 10.00 cents per share – 100% franked (tax rate – 30%) – 87,190 (paid on 3 May 2023) Total dividends paid 397,307 839,120 B. Proposed dividends In addition to the above dividends, the Directors have declared a final dividend of 22.0 cents per share (2023: 21.00 cents per share and special dividend of 9.0 cents per share). This dividend is fully franked based on tax paid at 30 per cent. The proposed dividends are expected to be paid on 24 October 2024. The declared final dividend has not been recognised as a liability at 31 July 2024 (2023: nil). C. Franked dividends The franked portions of the final dividend recommended after 31 July 2024 will be franked out of existing franking credits. 2024 $000 2023 $000 Franking credits available for subsequent financial years based on a tax rate of 30% (2023: 30%) 810,544 562,769 The impact on the franking account of the dividends recommended by the Directors after the 2024 financial year end, but not recognised as a liability at 31 July 2024, will result in a reduction in the franking account of $79,703,058 (2023: $108,686,000) 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 (2023: nil). Notes to the Financial Statements continued For the year ended 31 July 2024 New Hope Group 128 Annual Report 2024 Directors’ Report Auditor’s independence declaration Financial Report Directors’ declaration Independent Auditor’s Report Shareholder information Resources and reserves Corporate directory 25. 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 31. C. Share capital 2024 Number of shares 2024 $000 2023 Number of shares 2023 $000 Issued and paid-up capital 845,335,464 8,453 845,335,464 8,453 During the period, $3,300,000 (2023: nil) of shares were purchased by an employee share ownership trust on behalf of the Company to satisfy employee share awards vesting. These contributions have been included in the share-based payment reserve, refer to Note 25(f). During the period 674,819 shares were acquired and at the end of the period, 532,330 shares (2023: nil), valued at $2,592,000 were held in the employee share ownership trust on behalf of the Company. D. Movements in share capital Date Details Number of shares Issue price $000 1-Aug-23 Opening balance 845,335,464 – 8,453 31-Jul-24 Balance 845,335,464 8,453 1-Aug-22 Opening balance 832,357,082 – 97,536 Convertible debt conversion to equity 50,037,223 1.85 92,700 Share buy-back (37,058,841) 4.91 (181,783) 31-Jul-23 Balance 845,335,464 8,453 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. Annual Report 2024 New Hope Group 129 Notes Capital profits $000 Equity invest- ments $000 Reval- uation $000 Hedging $000 Share- based payments $000 Premium paid on NCI1 $000 Share buy-back premium $000 Conver- tible notes $000 Share of associates’ reserves $000 Foreign currency translation $000 Total $000 At 1 August 2023 1,343 61,361 27,412 79,760 4,639 (6,029) (10,664) (200,093) – (282) (42,553) Transfer to net profit/(loss) – gross 23 – – – (99,683) – – – – – – (99,683) Transfer to net profit/(loss) – deferred tax 4 – – – 29,905 – – – – – – 29,905 Revaluation – gross 23 – (67) – 14,963 – – – – 428 (151) 15,173 Revaluation – deferred tax 4 – 20 – (4,489) – – – – – – (4,469) 1,343 61,314 27,412 20,456 4,639 (6,029) (10,664) (200,093) 428 (433) (101,627) Transactions with owners in their capacity as owners Share-based payment expense 31 – – – – 5,571 – – – – – 5,571 Purchase of shares to satisfy share awards to employees – – – – (3,300) – – – – – (3,300) At 31 July 2024 1,343 61,314 27,412 20,456 6,910 (6,029) (10,664) (200,093) 428 (433) (99,356) At 1 August 2022 1,343 (19,556) 27,412 (100,263) 1,423 (6,029) – 6,610 – (169) (89,229) Transfer to net profit/(loss) – gross 23 – – – 6,677 – – – – – – 6,677 Transfer to net profit/(loss) – deferred tax 4 – – – (2,003) – – – – – – (2,003) Revaluation – gross 23 – 115,596 – 250,498 – – – (284,710) – (113) 81,271 Revaluation – deferred tax 4 – (34,679) – (75,149) – – – 78,007 – – (31,821) 1,343 61,361 27,412 79,760 1,423 (6,029) – (200,093) – (282) (35,105) Transactions with owners in their capacity as owners Share-based payment expense 31 – – – – 3,216 – – – – – 3,216 Share buy-back – – – – – – (10,664) – – – (10,664) At 31 July 2023 1,343 61,361 27,412 79,760 4,639 (6,029) (10,664) (200,093) – (282) (42,553) 1. NCI – Non-controlling interest. 25. Equity continued F. Reserves Notes to the Financial Statements continued For the year ended 31 July 2024 New Hope Group 130 Annual Report 2024 Directors’ Report Auditor’s independence declaration Financial Report Directors’ declaration Independent Auditor’s Report Shareholder information Resources and reserves Corporate directory 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 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 50.0 per cent of this Company. Hedging 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 23. Amounts are recognised in the Statement of Comprehensive Income when the associated hedged transaction affects the Statement of Comprehensive Income. Share-based payments 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. Premium paid on non- controlling interest acquisition The premium paid on non-controlling interest acquisition is used to recognise any excess paid on the acquisition of a non-controlling interest in a subsidiary. Share buy-back premium This reserve represents the premium paid on shares (above share capital value) bought back and subsequently cancelled as part of the on-market share buy-back, announced November 2022. Share of associates’ reserves This reserve represents the Groups’ share of associates’ OCI since date of obtaining significant influence (see Note 20). Convertible Notes This reserve represents the equity component of convertible notes (see Note 22(a)). G. Retained earnings Notes 2024 $000 2023 $000 Carrying amount at beginning of year 2,555,506 2,307,224 Net profit or loss after income tax 475,855 1,087,402 Dividends paid 24(a) (397,307) (839,120) Balance at end of year 2,634,054 2,555,506 26. Financial risk management Accounting Policy 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. Annual Report 2024 New Hope Group 131 26. Financial risk management continued The Group holds the following financial instruments: Notes Fair value through other comprehensive income $000 Hedging derivatives $000 Amortised cost $000 Fair value through profit or loss $000 Total $000 Financial assets 2024 Cash and cash equivalents 17 – – 638,760 – 638,760 Trade and other receivables 7 – – 109,368 61,136 170,504 Other financial assets – – – 185,963 185,963 Equity investments 19 116 – – – 116 Derivative financial instruments 23 – 37,237 – 23,026 60,263 116 37,237 748,128 270,125 1,055,606 2023 Cash and cash equivalents 17 – – 730,654 – 730,654 Trade and other receivables 7 – – 161,329 58,147 219,476 Other financial assets – – – 19,984 19,984 Equity investments 19 210,476 – – – 210,476 Derivative financial instruments 23 – 121,133 – – 121,133 210,476 121,133 891,983 78,131 1,301,723 Financial liabilities 2024 Lease liabilities 22 – – 102,764 – 102,764 Trade and other payables 8 – – 125,676 63,609 189,285 Financial guarantee liabilty 11 – – – 11,375 11,375 Unsecured loans 22 – – 258,730 – 258,730 Derivative financial instruments 23 – 8,014 – 30,540 38,554 – 8,014 487,170 105,524 600,708 2023 Lease liabilities 22 – – 84,923 – 84,923 Trade and other payables 8 – – 95,416 – 95,416 Financial guarantee liabilty 11 – – – 11,968 11,968 Derivative financial instruments 23 – 7,191 – – 7,191 – 7,191 180,339 11,968 199,498 Notes to the Financial Statements continued For the year ended 31 July 2024 New Hope Group 132 Annual Report 2024 Directors’ Report Auditor’s independence declaration Financial Report Directors’ declaration Independent Auditor’s Report Shareholder information Resources and reserves Corporate directory 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 Enterprise 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: 2024 US$000 2023 US$000 Cash and cash equivalents 70,099 7,071 Trade receivables 55,691 63,690 Derivatives – foreign exchange options1 730,000 700,000 Derivatives – commodity swaps1 81,392 228,050 Trade payables 43,870 3,287 1. Notional amounts. (ii) Commodity hedge risk 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. The change in equity due to a 10.0 per cent increase/ decrease in coal/USD price for the valuation of the hedging instrument would result an increase of $9.1 million (before tax) and a decrease of $9.1 million (before tax) (2023: $21.8 million increase and $21.8 million decrease). Group sensitivity Based on the trade receivables, cash and trade payables held at 31 July 2024, 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 $9,816,000/($8,031,000) (2023: $7,854,000/($6,426,000)), 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 foreign exchange options held at 31 July 2024, the change in equity due to a 10.0 per cent increase/decrease in the exchange rate of the Australian dollar against the US dollar translation of the hedging instrument would result an increase of $73.4 million (before tax) and a decrease of $84.1 million (before tax) (2023: $68.3 million increase and $76.9 million decrease). (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 has a publicly traded equity investment. The impact of increases/decreases in the financial instrument on the Group’s equity as at balance date is $16,000/($16,000)) (2023: $22,000/($22,200)). The analysis is based on the assumption that the equity instrument had increased/decreased by 10.0 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 26(e). Annual Report 2024 New Hope Group 133 26. Financial risk management continued B. Credit risk Credit risk is managed on a Group basis. Credit risk arises from cash and cash equivalents, Derivative financial instruments and deposits with banks and financial institutions, as well as credit exposure to export and domestic customers, including outstanding receivables and committed transactions. The Group has no significant concentrations of credit risk. The Group has policies in place to ensure that sales of products and services are made to customers with an appropriate credit history. The majority of customers, both export and domestic, have long-term relationships with the Group and sales are secured with long-term supply contracts. Sales are secured by letters of credit when deemed appropriate. Derivative counterparties 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 and facilities given to certain parties (see Note 22 and Note 11). Such facilities are only provided in exceptional circumstances and are subject to specific Board approval. The accrued interest on this facility and other receivables from the same counterparty is also subject to credit risk (see Note 7). 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 that are subject to credit risk. Notes 2024 $000 2023 $000 Trade and other receivables 170,504 219,476 Cash at bank 17 637,570 730,654 Term deposits 1,190 – Other financial assets 185,963 19,984 Derivative financial instruments 23 60,263 121,133 C. Liquidity risk Prudent liquidity risk management is adopted through maintaining sufficient cash and marketable securities, the ability to borrow funds from credit providers and to close-out market positions. The Group manages liquidity risk by continuously monitoring forecast and actual cash flows and matching the maturity profiles of financial assets and liabilities. Surplus funds are generally only invested in instruments that are tradeable in highly liquid markets. Financing arrangements The Group’s only significant external borrowings relate to unsecured convertible notes and leases detailed in Note 22. The maturity of these arrangements is shown as below: Notes to the Financial Statements continued For the year ended 31 July 2024 New Hope Group 134 Annual Report 2024 Directors’ Report Auditor’s independence declaration Financial Report Directors’ declaration Independent Auditor’s Report Shareholder information Resources and reserves Corporate directory D. Maturity of financial liabilities The maturity groupings of Derivative financial instruments are detailed in Note 23. Trade payables and accruals (Note 8) are normally settled within 45 days of recognition. The Group’s borrowings (Note 22) comprise of lease liabilities and convertible notes. Lease liabilities are fixed rate leases with a weighted average interest rate of 5.05 per cent (2023: 4.88 per cent) and are payable over a period of one to 18 years (2023: 19 years). Unsecured notes represent the liability component of convertible notes (net of transaction costs) with a coupon rate of 4.25 per cent, payable semi-annually over a five-year period. As conversion may occur at any point, these have been represented at face value at demand in the below maturity table. Refer to Note 22(a) for further details. The table below details the contractual cash flows of lease liabilities, unsecured convertible notes and derivative liabilities. 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 2024 Lease liabilities 7,036 10,405 10,952 27,654 92,160 148,207 102,764 Derivatives 3,639 512 3,863 – – 8,014 8,014 Unsecured notes 300,000 – – – – 300,000 258,730 2023 Lease liabilities 6,924 6,880 15,990 21,042 69,817 120,653 84,923 Derivatives 3,022 3,803 366 – – 7,191 7,191 E. Cash flow and fair value interest rate risk The Group may be exposed to interest rate risk. 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. F. Fair value measurement 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 fair value of financial assets and financial liabilities must be estimated for recognition and measurement or for disclosure purposes. AASB13 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) (c) inputs for the asset or liability that are not based on observable market data (unobservable inputs) (Level 3). Annual Report 2024 New Hope Group 135 26. Financial risk management continued F. Fair value measurement continued The following table presents the Group’s assets and liabilities measured and recognised at fair value as at 31 July 2024 and 31 July 2023. Level 1 $000 Level 2 $000 Level 3 $000 Total $000 2024 Assets Derivatives financial instruments – 60,263 – 60,263 Trade receivables – provisionally priced – 30,145 – 30,145 Other receivables – Lenton – – 30,991 30,991 Other financial assets 185,963 – – 185,963 Equity investments 116 – – 116 Total assets 186,079 90,408 30,991 307,478 Liabilities Derivatives financial instruments – 38,554 – 38,554 Trade payables – provisionally priced – 63,609 – 63,609 Total liabilities – 102,163 – 102,163 2023 Assets Derivatives financial instruments – 121,133 – 121,133 Trade receivables – provisionally priced – 16,661 – 16,661 Other receivables – Lenton – – 41,486 41,486 Other financial assets 19,984 – – 19,984 Equity investments 163 – 210,476 210,639 Total assets 20,147 137,794 251,962 409,903 Liabilities Derivatives financial instruments – 7,191 – 7,191 Trade payables – provisionally priced – 166 – 166 Total liabilities – 7,357 – 7,357 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 trade receivables on provisionally priced sales is determined with reference to market pricing and contractual terms at the reporting date. Notes to the Financial Statements continued For the year ended 31 July 2024 New Hope Group 136 Annual Report 2024 Directors’ Report Auditor’s independence declaration Financial Report Directors’ declaration Independent Auditor’s Report Shareholder information Resources and reserves Corporate directory 27. Interests in other entities A. Subsidiaries Significant subsidiaries include New Hope Bengalla Pty Ltd as well as the companies identified in the Deed of Cross Guarantee in Note 33. B. Joint arrangements Accounting Policy Under AASB11 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 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. 28. Commitments A. Capital commitments Capital expenditure contracted for at the reporting date but not recognised as liabilities is as follows: 2024 $000 2023 $000 Property plant and equipment Within one year 122,600 102,276 B. Take or pay commitments The Group has purchase obligations in relation to take or payment agreements, which are legally binding and enforceable with rail, water and port service providers in respect of operating sites. Refer to Note 15. Annual Report 2024 New Hope Group 137 29. Events occurring after the reporting period West Moreton The Company previously operated a number of coal mines at West Moreton, near Ipswich in South East Queensland. Following closure of the last of these operations (Jeebropilly) in 2019, the Company progressed with rehabilitation activities and divested some of the land and mining leases. During the period, the Company progressed towards divestment of the remaining West Moreton land assets and subsidiary companies, including the former Jeebropilly mine and its associated mining leases. As at 31 July 2024, the Company was engaged with a buyer to complete due diligence activities required as a condition of the sale and as a consequence, the Company’s West Moreton land assets and subsidiary companies were classified as held for sale as at 31 July 2024. A series of sale transactions with the buyer were fully completed on 30 August 2024. The gain on these transactions will be reported in the first quarter of the 31 July 2025 financial year. 30. Related party transactions A. Key Management Personnel (i) Directors The following persons were Directors of New Hope Corporation Limited during the 2024 financial year: Chairman – Non-Executive Robert D. Millner AO Non-Executive Directors Todd J. Barlow Jacqueline E. McGill AO Thomas C. Millner Ian M. Williams Steven R. Boulton Lucia A. Stocker Brent C. A. Smith (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 Position Employer Robert J. Bishop Chief Executive Officer New Hope Corporation Limited Rebecca S. Rinaldi Chief Financial Officer New Hope Corporation Limited Dominic H. O’Brien Executive General Manager and Company Secretary New Hope Corporation Limited (iii) Key Management Personnel compensation 2024 $ 2023 $ Short-term employee benefits 4,710,292 4,025,775 Long-term employee benefits 58,581 59,098 Post-employment benefits 239,128 182,705 Share-based payment 3,608,990 2,164,230 8,616,991 6,431,808 Notes to the Financial Statements continued For the year ended 31 July 2024 New Hope Group 138 Annual Report 2024 Directors’ Report Auditor’s independence declaration Financial Report Directors’ declaration Independent Auditor’s Report Shareholder information Resources and reserves Corporate directory B. Transactions with related parties 2024 $ 2023 $ Dividends paid to Washington H. Soul Pattinson and Company Limited (WHSP) 154,037,316 300,572,561 Payment for electrical engineering services (AMP Control) 1,246,529 534,344 Payment for consulting services rendered (Pitt Capital Partners Ltd) 600,000 600,000 Detailed remuneration disclosures can be found in the Remuneration Report on pages 63 to 79. C. Outstanding balances arising from sales/purchases and goods and services There are no outstanding balances arising from sales/purchases of goods and services from related parties at 31 July 2024 (2023: nil). D. Terms and conditions Transactions relating to dividends were on the same terms and conditions that applied to other shareholders. E. Other transactions of Key Management Personnel R.D. Millner, T.C. Millner, T.J. Barlow (resigned 30 June 2024) and B.C.A. Smith (appointed 1 July 2024) were Directors of WHSP (T.C. Millner resigned from WHSP Board in December 2023), a company that holds significant influence over New Hope Corporation Limited, Pitt Capital Partners Limited and AMP Control. Pitt Capital Partners Limited acted as financial advisor to the Group for various corporate transactions during the 2023 and 2024 financial years. AMPcontrol provided electrical engineering consulting services, equipment and installation to the Group’s Bengalla Mine during the 2024 and 2023 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. F. Loans to Key Management Personnel No loans have been made available to the Key Management Personnel of the Group. Annual Report 2024 New Hope Group 139 31. 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 is recognised as an employee benefit expense with a corresponding increase in equity. The fair value is measured at grant date and recognised over the period during which the employee becomes unconditionally entitled to the 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, 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 $5,571,000 (2023: $3,216,000). Performance rights Set out below is a summary of performance rights granted: 2024 2023 Average price per right Number of performance rights Average price per right Number of performance rights As at 1 August $5.01 1,921,509 $5.37 940,506 Granted during the year $4.83 1,674,522 $4.66 981,003 Vested and exercised during the year $5.50 (142,489) – – As at 31 July $4.90 3,453,542 $5.01 1,921,509 Notes to the Financial Statements continued For the year ended 31 July 2024 New Hope Group 140 Annual Report 2024 Directors’ Report Auditor’s independence declaration Financial Report Directors’ declaration Independent Auditor’s Report Shareholder information Resources and reserves Corporate directory Performance rights outstanding at the end of the year have the following vesting date and fair value at grant date: Grant date Vesting date Value of performance right at grant date Performance rights 2024 Performance rights 2023 29-Nov-20 1-Aug-24 $0.76 133,169 133,169 13-Sep-22 1-Aug-24 $3.76 807,337 807,337 13-Sep-22 1-Aug-23 $5.50 – 142,489 13-Sep-22 1-Aug-25 $4.79 427,555 427,555 13-Sep-22 1-Aug-25 $4.24 410,959 410,959 13-Sep-23 1-Aug-24 $5.86 198,084 – 13-Sep-23 1-Aug-26 $4.57 506,692 – 13-Sep-23 1-Aug-26 $5.86 414,572 – 18-Mar-24 1-Aug-26 $2.46 166,093 – 18-Mar-24 1-Aug-26 $4.43 389,081 – Total 3,453,542 1,921,509 Weighted average remaining contractual life of performance rights outstanding at end of period 1.1 years 1.4 years 32. 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. Annual Report 2024 New Hope Group 141 32. Parent entity disclosures continued A. Summary financial information The individual Financial Statements for the parent entity show the following aggregate amounts: 2024 $000 2023 $000 Statement of Financial Position Current assets 1,235,050 1,267,488 Non-current assets 61,911 57,997 Total assets 1,296,961 1,325,485 Current liabilities 305,424 280,695 Non-current liabilities 35,463 8,771 Total liabilities 340,887 289,466 Shareholders’ equity Contributed equity 8,456 8,456 Reserves Share-based payment 5,977 4,360 Other reserves (210,757) (210,757) Retained earnings 1,152,398 1,233,960 Total equity 956,074 1,036,019 Profit for the year 315,642 1,941,758 Total comprehensive income 315,642 1,941,758 B. Guarantees entered into by parent entity 2024 $000 2023 $000 Secured guarantees issued in relation to rehabilitation, statutory body suppliers and various other entities 161,201 158,962 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 22(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. 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 2024 $000 2023 $000 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 161,201 158,962 No losses are anticipated in respect of any of the above contingent liabilities, except for matters set out in Note 11. D. Contractual commitments for the acquisition of property, plant and equipment As at 31 July 2024, the parent entity had contractual commitments for the acquisition of property, plant or equipment totalling nil (2023: nil). Notes to the Financial Statements continued For the year ended 31 July 2024 New Hope Group 142 Annual Report 2024 Directors’ Report Auditor’s independence declaration Financial Report Directors’ declaration Independent Auditor’s Report Shareholder information Resources and reserves Corporate directory 33. 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 subsidiary members of the Closed Group could be eligible to opt-in for relief from the requirements under the Corporations Act 2001 (Cth) 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 year: • 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 Ltd • Dexplan Pty Ltd • Tivoli Collieries Pty Ltd 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. Annual Report 2024 New Hope Group 143 33. 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 2024 for the Closed Group: 2024 $000 2023 $000 Revenue from operations 1,761,514 2,711,109 Net gains from convertible debt buy-back – 17,690 Other income 1,627 22,145 1,763,141 2,750,944 Expenses Cost of sales (863,203) (916,931) Marketing and transportation (119,829) (92,923) Administration (316,189) (43,813) Financing costs (11,929) (12,977) Other expenses (4,230) (66,647) Impairment of assets – – Profit before income tax 447,759 1,617,653 Income tax expense (211,958) (474,720) Profit after income tax for the year 235,802 1,142,933 Other comprehensive income/(loss) Items to be reclassified to profit or loss Changes in the fair value of cash flow hedges, net of tax 10,474 175,349 Transfer to profit or loss for cash flow hedges, net of tax (69,778) 4,674 Other comprehensive income/(loss) for the year, net of tax (59,304) 180,023 Total comprehensive income/(loss) for the year 176,498 1,322,956 Notes to the Financial Statements continued For the year ended 31 July 2024 New Hope Group 144 Annual Report 2024 Directors’ Report Auditor’s independence declaration Financial Report Directors’ declaration Independent Auditor’s Report Shareholder information Resources and reserves Corporate directory B. Statement of Financial Position Set out below is a Statement of Financial Position as at 31 July 2024 of the Closed Group: 2024 $000 2023 $000 Current assets Cash and cash equivalents 635,545 721,075 Receivables 126,613 266,717 Other financial assets 185,963 19,984 Derivative financial instruments 59,548 92,658 Inventories 115,417 55,192 Current tax assets 900 – Assets classified as held for sale 1,485 – Total current assets 1,125,470 1,155,626 Non-current assets Receivables 25,332 100,876 Other financial assets – 35,423 Derivative financial instruments 715 28,475 Equity investments 47,391 – Property, plant and equipment 1,773,711 1,684,388 Intangible assets 64,998 68,592 Exploration and evaluation assets 12,926 7,783 Total non-current assets 1,925,074 1,925,537 Total assets 3,050,544 3,081,163 Current liabilities Trade and other payables 193,975 109,141 Derivative financial instruments 34,692 6,825 Borrowings 268,201 9,471 Current tax liabilities – 217,889 Provisions 48,934 32,683 Financial guarantee liability 11,375 – Liabilities directly associated with assets held for sale 13,674 – Total current liabilities 570,851 376,009 Non-current liabilities Borrowings 93,293 75,136 Provisions 116,410 132,473 Deferred tax liabilities 72,841 83,929 Derivative financial instruments 3,863 366 Total non-current liabilities 286,407 291,904 Total liabilities 857,258 667,913 Net assets 2,193,286 2,413,250 Equity Contributed equity 3,592 8,695 Reserves (155,157) (98,124) Retained earnings 2,344,851 2,502,679 Total equity 2,193,286 2,413,250 Annual Report 2024 New Hope Group 145 34. 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 2024 2023 Audit or review of financial reports: Group 549,280 666,100 Subsidiaries and joint operations 325,581 223,127 874,861 889,227 Other assurance and agreed upon procedures under other legislation or contractual arrangements Group 135,000 – Subsidiaries and joint operations 18,000 14,000 153,000 14,000 Other services Other advisory services1 525,700 459,392 525,700 459,392 Total 1,553,561 1,362,619 1. Includes public mining supervisor training courses and asset management advisory services. 35. Other accounting policies A. Foreign currency translation (i) Functional and presentation currency Items included in the Financial Statements of each of the Group’s entities are measured using the currency of the primary economic environment in which the Group operates (the functional currency). The Consolidated Financial Statements are presented in Australian dollars, which is the Company’s functional and presentation currency. (ii) Transactions and balances Foreign currency transactions are translated into the functional currency using the exchange rates at the date 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. (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) • 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. Notes to the Financial Statements continued For the year ended 31 July 2024 New Hope Group 146 Annual Report 2024 Directors’ Report Auditor’s independence declaration Financial Report Directors’ declaration Independent Auditor’s Report Shareholder information Resources and reserves Corporate directory 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 that are recoverable from, or payable to, the taxation authority, are presented as operating cash flows. C. New accounting standards and interpretations adopted (i) New and amended accounting pronouncements adopted in the current year AASB2021-2 Amendments to Australian Accounting Standards – Disclosure of Accounting Policies and Definition of Accounting Estimates Amends AASB Standards to improve accounting policy disclosures and clarify the distinction between accounting policies and accounting estimates. Amendments with specific impacts for the Group are: AASB101 Presentation of Financial Statements, to require entities to disclose their material accounting policy information rather than their significant accounting policies and AASB108 Accounting Policies, Changes in Accounting Estimates and Errors, to clarify how entities should distinguish changes in accounting policies and changes in accounting estimates. AASB2023-2 Amendments to Australian Accounting Standards – International Tax Reform – Pillar Two Model Rules Amends AASB112 Income Taxes to introduce a mandatory temporary exception to the recognition and disclosure of deferred taxes arising from the Organisation for Economic Co-operation and Development (OECD) Pillar Two reforms and disclosure requirements to help financial statement users understand an entity’s exposure to income taxes arising from the reform, particularly in periods before legislation implementing the rules is in effect. The Group has applied the temporary exception issued by the IASB in May 2023 from the accounting requirements for deferred taxes in IAS 12. Accordingly, the Group neither recognises nor discloses information about deferred tax assets and liabilities related to Pillar Two income taxes. Given the Group’s tax structure, the implementation of Pillar Two income taxes is not expected to be material. (ii) Accounting Standards and Interpretations not yet issued in Australia Amendments to AASB101 – classification of liabilities as current or non-current Effective annual reporting periods beginning on or after 1 January 2025, 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. AASB18 Presentation and Disclosure in Financial Statements Effective annual reporting periods beginning on or after 1 January 2027, this replaces IAS 1 Presentation of Financial Statements, introducing enhanced requirements for the presentation of financial statements, including: • in the Statement of Profit or Loss, introducing new required categories (operating, investing and financing) and subtotals (‘operating profit’ and ‘profit before financing and income taxes’) • disclosures about management-defined performance measures (MPMs), limited to subtotals of income and expenses and requiring • a reconciliation of the MPM to an IFRS-defined subtotal • an explanation of why the MPM is reported • an explanation of how the MPM is calculated • an explanation of any changes to the MPM • enhanced guidance on grouping of information (aggregation and disaggregation), including guidance on whether information should be presented in the primary Financial Statements or disclosed the notes, and disclosures about items labelled as ‘other’. Annual Report 2024 New Hope Group 147 Directors’ declaration For the year ended 31 July 2024 In the Directors’ opinion: (a) the Financial Statements and notes set out on pages 82 to 147 are in accordance with the Corporations Act 2001, including: (i) complying with Accounting Standards, the Corporations Regulations 2001 and other mandatory professional reporting requirements (ii) giving a true and fair view of the consolidated entity’s financial position as at 31 July 2024 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 (c) the attached consolidated entity disclosure statement is true and correct. The basis of preparation on page 87 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 Corporation (Wholly-owned Companies) Instrument 2016/785. The nature of the Deed of Cross Guarantee is such that each company that 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 Instrument applies, as detailed in Note 33 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. Robert D. Millner AO Director Sydney, 16 September 2024 New Hope Group 148 Annual Report 2024 Directors’ Report Auditor’s independence declaration Financial Report Directors’ declaration Independent Auditor’s Report Shareholder information Resources and reserves Corporate directory Independent Auditor’s Report Liability limited by a scheme approved under Professional Standards Legislation. Member of Deloitte Asia Pacific Limited and the Deloitte organisation. 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 Independent Auditor’s Report to the Members of New Hope Corporation Limited Report on the Audit of the Financial Report Opinion We have audited the financial report of New Hope Corporation Limited (the “Company”) and its subsidiaries (the “Group”) which comprises the consolidated statement of financial position as at 31 July 2024, the consolidated statement of 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 material accounting policy information and other explanatory information, the directors’ declaration and the Consolidated Entity Disclosure Statement. In our opinion, the accompanying financial report of the Group is in accordance with the Corporations Act 2001, including: • Giving a true and fair view of the Group’s financial position as at 31 July 2024 and of its financial performance for the year then ended; and • Complying with Australian Accounting Standards and the Corporations Regulations 2001. Basis for Opinion We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Report section of our report. We are independent of the Group in accordance with the auditor independence requirements of the Corporations Act 2001 and the ethical requirements of the Accounting Professional & Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code. 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. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. 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 as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. Annual Report 2024 New Hope Group 149 Independent Auditor’s Report continued Key Audit Matter How the scope of our audit responded to the Key Audit Matter Carrying value of property plant and equipment, intangible assets and exploration and evaluation assets Refer to notes 12, 13, 14 and 15 to the financial statements. At 31 July 2024 the Group’s consolidated statement of financial position included property, plant and equipment (“PPE”) of $1,806 million and intangible assets of $65 million. The Group also had exploration and evaluation (“E&E”) assets of $16 million. As disclosed in note 15, the Group performed an impairment indicator assessment across all E&E assets and cash-generating units (“CGUs”) to which PPE and intangible assets belong, including the NSW Mining CGU and the Queensland Coal Mining Operations CGU which includes New Acland Stage 3 that is the subject of a legal challenge before the Land Court of Queensland. An impairment assessment was also performed on the Queensland Port operations CGU to which $6 million 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 allocated to the NSW Mining CGU and the Queensland Coal Mining Operations CGU, and that no impairment was identified in relation to the Queensland Port Operations CGU. 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 and where relevant management’s impairment assessment including: o Challenging the reasonableness of management’s key market related assumptions including commodity prices, discount rates and long- term inflation rates against external data with support from our internal valuation specialists; o Challenging the impact of various regulatory developments and the legal challenge before the Land Court of Queensland 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 the appropriateness of the disclosures in notes 12, 13, 14 and 15 to the financial statements. Other Information The directors are responsible for the other information. The other information comprises the information included in the Group’s annual report for the year ended 31 July 2024, but does not include the financial report and our auditor’s report thereon. Our opinion on the financial report does not cover the other information and we do not express any form of assurance conclusion thereon. New Hope Group 150 Annual Report 2024 Directors’ Report Auditor’s independence declaration Financial Report Directors’ declaration Independent Auditor’s Report Shareholder information Resources and reserves Corporate directory In connection with our audit of the financial report, our responsibility is to read the other information 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, 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. Responsibilities of the Directors for the Financial Report The directors of the Company are responsible: • For the preparation of the financial report in accordance with the Corporations Act 2001, including giving a true and fair view of the financial position and performance of the Group in accordance with Australian Accounting Standards; and • For such internal control as the directors determine is necessary to enable the preparation of the financial report in accordance with the Corporations Act 2001, including giving a true and fair view of the financial position and performance of the Group, 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. • 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 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 inadequate, to modify our opinion. Our Annual Report 2024 New Hope Group 151 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. • 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. • 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 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 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 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. 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 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 reasonably be expected to outweigh the public interest benefits of such communication. Report on the Remuneration Report Opinion on the Remuneration Report We have audited the Remuneration Report included in pages 63 to 79 of the Directors’ Report for the year ended 31 July 2024. In our opinion, the Remuneration Report of New Hope Corporation Limited for the year ended 31 July 2024, complies with section 300A of the Corporations Act 2001. Responsibilities The directors of the Company are responsible for the preparation and presentation of the Remuneration Report in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the Remuneration Report, based on our audit conducted in accordance with Australian Auditing Standards. DELOITTE TOUCHE TOHMATSU Stephen Tarling Saeed Seedat Partner Partner Chartered Accountants Chartered Accountants Brisbane, 16 September 2024 Brisbane, 16 September 2024 Independent Auditor’s Report continued New Hope Group 152 Annual Report 2024 Shareholder information Ordinary shareholdings As at 12 September 2024 there were 22,854 holders of ordinary shares in the Company. Voting entitlement is one vote per fully paid ordinary share. Range of units – ordinary shares Number of shareholders Fully paid ordinary shares Number of performance rights holders Performance rights 1 – 1,000 7,792 3,650,387 – – 1,001 – 5,000 8,076 22,465,033 25 77,922 5,001 – 10,000 3,361 25,790,031 18 127,961 10,001 – 100,000 3,408 91,966,328 24 760,250 100,001 and over 217 701,463,685 4 2,289,325 22,854 845,335,464 71 3,255,458 Holding less than a marketable parcel 1,237 88,631 The names of substantial shareholders as disclosed in substantial shareholder notices received by the Company: Shareholders Number of shares % Washington H. Soul Pattinson and Company Limited 331,696,418 39.24% 20 largest shareholders as disclosed on the share register as at 12 September 2024 Washington H. Soul Pattinson and Company Limited 331,696,418 39.24% HSBC Custody Nominees (Australia) Limited 101,202,838 11.97% J P Morgan Nominees Australia Pty Limited 73,844,271 8.74% Citicorp Nominees Pty Limited 65,898,963 7.80% BKI Investment Company Limited 12,950,952 1.53% HSBC Custody Nominees (Australia) Limited-GSCO ECA 10,249,691 1.21% BNP Paribas Noms Pty Ltd9,206,765 1.09% Bond Street Custodians Limited 6,533,450 0.77% BNP Paribas Nominees Pty Ltd < Agency Lending Collateral> 5,257,000 0.62% BNP Paribas Nominees Pty Ltd 4,644,004 0.55% BNP Paribas Nominees Pty Ltd 4,275,868 0.51% Farjoy Pty Ltd 3,585,255 0.42% J S Millner Holdings Pty Limited 3,429,197 0.41% National Nominees Limited 3,406,655 0.40% BNP Paribas Noms Pty Ltd 2,934,845 0.35% BNP Paribas Nominees Pty Ltd 2,231,259 0.26% Netwealth Investments Limited 1,882,680 0.22% Warbont Nominees Pty Ltd 1,744,150 0.21% HSBC Custody Nominees (Australia) Limited – A/C 2 1,583,139 0.19% Tom Hadley Enterprises Pty Ltd 1,500,000 0.18% 648,057,400 76.66% Unquoted equity securities Number on issue Number of holders Rights issued under the New Hope Corporation Limited Employee Performance Rights Share Plan to take up ordinary shares 3,255,458 71 Directors’ Report Auditor’s independence declaration Financial Report Directors’ declaration Independent Auditor’s Report Shareholder information Resources and reserves Corporate directory Annual Report 2024 New Hope Group 153 Consolidated entity disclosure statement As at 31 July 2024 Body corporates Tax residency Entity name Entity type Place formed or incorporated % of share capital held Australian or foreign Foreign jurisdiction Acland Pastoral Co. Pty Ltd Body corporate Australia 100% Australian N/A Andrew Wright Holdings Pty Ltd Body corporate Australia 100% Australian N/A Appdale Pty Ltd Body corporate Australia 100% Australian N/A Arkdale Pty Ltd Body corporate Australia 100% Australian N/A Bengalla Agricultural Company Pty Ltd Body corporate Australia 100% Australian N/A Bridgeport (Cooper Basin) Pty Ltd Body corporate Australia 100% Australian N/A Bridgeport (Eromanga) Pty Ltd Body corporate Australia 100% Australian N/A Bridgeport (Surat Basin) Pty Ltd Body corporate Australia 100% Australian N/A Bridgeport Drilling Pty Ltd Body corporate Australia 100% Australian N/A Bridgeport Energy (QLD) Pty Limited Body corporate Australia 100% Australian N/A Bridgeport Energy Pty Limited Body corporate Australia 100% Australian N/A Databelt Pty Ltd Body corporate Australia 100% Australian N/A Dexplan Pty Ltd Body corporate Australia 100% Australian N/A eCOALogical Fuels Pty Ltd Body corporate Australia 100% Australian N/A Elimatta Pastoral Pty Ltd Body corporate Australia 100% Australian N/A Hueridge Pty Ltd Body corporate Australia 100% Australian N/A Jeebropilly Collieries Pty Ltd Body corporate Australia 100% Australian N/A Krestlake Pty Ltd Body corporate Australia 100% Australian N/A Mattvale Pty Ltd Body corporate Australia 100% Australian N/A New Acland Coal Pty Ltd Body corporate Australia 100% Australian N/A New Hope Bengalla Pty Ltd1 Body corporate Australia 100% Australian N/A New Hope Coal Marketing Pty Ltd Body corporate Australia 100% Australian N/A New Hope Collieries Pty Ltd Body corporate Australia 100% Australian N/A New Hope Corporation Limited Body corporate Australia 100% Australian N/A New Hope Corporation Limited Employee Share Trust Trust Australia N/A N/A N/A New Hope Exploration Pty Ltd Body corporate Australia 100% Australian N/A New Hope Group Services Pty Ltd Body corporate Australia 100% Australian N/A New Hope Japan KK Body corporate Japan 100% Foreign Japan New Hope Malabar Pty Ltd Body corporate Australia 100% Australian N/A New Hope Marketing International Pty Ltd Body corporate Australia 100% Australian N/A New Hope Water Pty Ltd Body corporate Australia 100% Australian N/A New Hope West Muswellbrook Pty Ltd Body corporate Australia 100% Australian N/A New Oakleigh Coal Pty Ltd Body corporate Australia 100% Australian N/A North Surat Coal Pty Ltd Body corporate Australia 100% Australian N/A Oilwells of Kentucky (Sole Risk) Pty Ltd Body corporate Australia 100% Australian N/A Oilwells, Inc. of Kentucky Body corporate United States of America 100% Dual tax resident United States of America Queensland Bulk Handling Pty Ltd Body corporate Australia 100% Australian N/A Taroom Coal Pty Ltd Body corporate Australia 100% Australian N/A Tetard Holdings Pty Ltd Body corporate Australia 100% Australian N/A Tivoli Collieries Pty Ltd Body corporate Australia 100% Australian N/A Uniford Pty Ltd Body corporate Australia 100% Australian N/A Yamala Coal Pty Ltd Body corporate Australia 100% Australian N/A 1. New Hope Bengalla Pty Ltd is a participant in Bengalla joint venture which is consolidated in the consolidated financial statements. New Hope Group 154 Annual Report 2024 Resources and reserves 2024 Coal Resources and Reserves New Hope Group is pleased to announce the 2024 update of Coal Resources and Reserves, in accordance with the JORC Code 2012. Key updates from the previous reporting period are: • The Company has acquired an Assessment Lease (AL19, West Muswellbrook) and has included an additional 513Mt of Resources pertaining to this area. • 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 based off depletion of 2Mt that has been mined between reporting periods. • All remaining resource and reserves estimates remain unchanged from 2023. Coal Resources and Reserves are stated as at 31 May 2024. Production information for the 2024 financial year is available in the 2024 annual Financial Report. Coal Resources Coal Resources as at 31 May 2024 (million tonnes) (Coal Resources are inclusive of the Reserves reported below) Deposit Status Inferred Indicated Measured 2024 Total 2023 Total New Acland Mine 16 193 283 492 494 Bengalla1 Mine 16 146 175 337 350 West Muswellbrook2 Exploration 267 199 47 513 – Elimatta Exploration 43 86 110 239 239 Collingwood Exploration 94 139 43 276 276 Taroom Exploration 122 338 – 460 460 Woori Exploration 42 67 – 109 109 Total 600 1,168 658 2,426 1,928 Notes on resources: 1. Figures shown are 100 per cent of total resources. New Hope Group share is 80 per cent. The resource number includes 76Mt of underground resource. 2. Figures shown represent the resources acquired from AL19. 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 (2012 Edition JORC Code). The updated Resources for Bengalla are based on an updated geological model along with the current extents of mining. The Resources for New Acland have been determined based on 2023 quoted values, less depletion. Elimatta, Collingwood, Taroom and Woori have been re-quoted from the Company’s 2023 Annual Financial Report. West Muswellbrook Resources are being reported for the first time. The resource estimates are based on information compiled by Carrie Schuler, a Competent Person who is a Member of The Australasian Institute of Mining and Metallurgy. Ms Schuler 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 JORC Code. 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. The resource estimates for West Muswellbrook are based on information compiled by Peter Handley, a Competent Person who is a Member of The Australasian Institute of Mining and Metallurgy and a full-time employee of Measured Group Pty. Ltd. Mr Handley 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 JORC Code. Mr Handley consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. Directors’ Report Auditor’s independence declaration Financial Report Directors’ declaration Independent Auditor’s Report Shareholder information Resources and reserves Corporate directory Annual Report 2024 New Hope Group 155 Resources and reserves continued 2024 Coal Resources and Reserves continued JORC declaration – Coal Resources continued Coal resources Coal Reserves as at 31 May 2024 (million tonnes) Recovered Reserves Marketable Reserves Deposit Status Probable Proved Total 2024 Total 2023 Probable Proved Total 2024 New Acland1 Mine 121 243 364 366 66 133 199 Elimatta Exploration 26 86 112 112 16 56 72 Bengalla2 Mine 31 123 154 167 24 96 120 Taroom Exploration 207 – 207 207 130 – 130 Total 385 452 837 852 236 285 521 Notes on Resources: 1. 260Mt of recoverable Reserves require additional approvals beyond New Acland Mine Stage 3. 2. Figures shown are 100 per cent of total Reserves. New Hope Group share is 80 per cent. 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 JORC Code. 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. 2024 Oil Resources and Reserves Mr Barry Smith, holding the position of Chief Technical Officer of Bridgeport Energy, has a Bachelor of Science (Hons) and is a member of the American Association of Petroleum Geologists (Emeritus), the Petroleum Exploration Society of Australia (Fellow) and the Society of Exploration Geophysicists. He has over 45 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 positions of Chief Executive Officer and Chief Operating Officer of Bridgeport Energy, has a Bachelor of Science (Hons Geology) and a Bachelor of Engineering (Mechanical). Mr Way, who is a CPEng and RPEQ-registered, is a 40-year member of the Society of Petroleum Engineers and is qualified in accordance with ASX Listing Rule 5.41. Mr Way 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 2024 2023 (As at 31 July 2024) 1P 2P 3P 1P 2P 3P Oil equivalent (Mboe) 1,048 4,391 7,601 2,150 6,865 12,087 Net contingent resources 2024 2023 (As at 31 July 2024) 1C 2C 3C 1C 2C 3C Oil equivalent (Mboe) 2,238 4,869 9,371 6,761 12,308 24,568 Notes on resources and reserves: 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 12-month period 1 August 2023 to 31 July 2024, which aligns with the Company’s financial year. 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 Port Bonython, and for Vali and Odin, where the reference point is the Moomba sales outlet. 8. Reserves reported include fuel consumed in operations at each field totalling 112Mboe 1P, 530Mboe 2P and 870Mboe 3P. 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. 11. Due to rounding, volumes may not reconcile to totals. New Hope Group 156 Annual Report 2024 Corporate directory Directors Robert D. Millner AO Chairman Ian M. Williams Non-Executive Director Thomas C. Millner Non-Executive Director Jacqueline E. McGill AO Non-Executive Director Steven R. Boulton Non-Executive Director Lucia A. Stocker Non-Executive Director Brent C. A. Smith 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 and registration office Level 18, 175 Eagle Street Brisbane QLD 4000 Telephone: (07) 3418 0500 Email: enquiries@newhopegroup.com.au Website 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 Both the printer and the paper used to produce this document have Forest Stewardship Council® (FSC®) and ISO 14001 environmental certification. FSC® is a Chain of Custody (COC) process. IS0 14001 is the international standard of Environmental Management Systems (EMS) designed to ensure the continuous measurement and reduction of environmental impacts. Printed on FSC® certified paper. MDM Design® Directors’ Report Auditor’s independence declaration Financial Report Directors’ declaration Independent Auditor’s Report Shareholder information Resources and reserves Corporate directory Annual Report 2024 New Hope Group 157