Full Year 2026 New Hope Corp Ltd Earnings Call

August 17, 2026

Speaker #1: Thank you for standing by, and welcome to the New Hope Group FY26 Q4 Quarterly Activities Report and Investor Call. All participants are in a listen-only mode.

Operator: Thank you for standing by, and welcome to the New Hope Group FY26 Q4 quarterly activities report and investor call. All participants are in a listen-only mode. There will be a presentation followed by a question and answer session. If you wish to ask a question via the phones, you will need to press the star key followed by the number 1 on your telephone keypad. If you wish to ask a question via the webcast, please enter it into the Ask a Question box and click Submit. I would now like to hand the conference over to Rob Bishop, Chief Executive Officer. Please go ahead.

Speaker #1: There will be a presentation followed by a question-and-answer session. If you wish to ask a question via the phones, you will need to press the star key followed by the number 1 on your telephone keypad.

Speaker #1: If you wish to ask a question via the webcast, please enter it into the 'Ask a Question' box and click Submit. I would now like to hand the conference over to Rob Bishop, Chief Executive Officer.

Speaker #1: Please go ahead.

Speaker #2: Good morning, everyone. Thank you for joining our call today. I'm Rob Bishop, Chief Executive Officer of New Hope Group. I'm joined here by Rebecca Arnaldi, our CFO, and Dom O'Brien, our Executive General Manager and Company Secretary.

Rob Bishop: Good morning, everyone. Thank you for joining our call today. I am Rob Bishop, Chief Executive Officer of New Hope Group. I am joined here by Rebecca Rinaldi, our CFO, and Dom O'Brien, our Executive General Manager and Company Secretary. This morning, we released our quarterly report for the fourth quarter of the 2026 financial year. Hopefully, you have had a chance to go through the report, but in any case, I will briefly step you through our key highlights before we open up the lines for Q&A. The July quarter marks the end of the 2026 financial year for the New Hope Group. Operationally, it has been a great year for the group, and we are very pleased with our results today. During the quarter, our TRIFR decreased to 3.89, 12% lower than the previous quarter.

Speaker #2: This morning, we released our quarterly report for the fourth quarter of the 2026 financial year. Hopefully, you've had a chance to go through the report, but in any case, I'll briefly step you through our key highlights before we open up the lines for Q&A.

Speaker #2: The July quarter marks the end of the 2026 financial year for the New Hope Group. Operationally, it's been a great year for the group, and we are very pleased with our results to date.

Speaker #2: During the quarter, our triple decreased to 3.89, which is 12% lower than the previous quarter. However, our high potential event frequency moved up in an unfavorable direction, from 1.21 in the previous quarter to 4.65.

Rob Bishop: However, our high potential event frequency moved up in an unfavorable direction from 1.21 in the previous quarter to 4.65. Critical and fatality and fatal risk management remains a continuing focus for the group. In response to the increase in high potential events and recent serious events across the broader industry, the group has doubled down in terms of focus of the effectiveness of controls for fatal risks. This has included group-wide safety pauses, increased frontline engagement, and targeted review and verification of critical controls. The safety of our people remains our highest priority, and we are focused on continuous improvements in all aspects of safety and well-being. Bengalla Mine recorded a strong finish to the 2026 financial year, with the operation performing at the targeted 13.4 million coal production for the rate for the quarter on 100% basis.

Speaker #2: Critical and fatality risk management remains a continuing focus for the group. In response to the increase in high potential events and recent serious events across the broader industry, the group has doubled down in terms of focus on the effectiveness of controls for fatal risks.

Speaker #2: This has included group-wide safety pauses, increased frontline engagement, and targeted review and verification of critical controls. The safety of our people remains our highest priority.

Speaker #2: And we have focused on continuous improvements in all aspects of safety and wellbeing. Bengala Mine recorded a strong finish to the 2026 financial year, with the operation performing at the targeted 13.4 million goal production rate for the quarter, on a 100% basis.

Speaker #2: ROMCO production was 3 million tons, a 16% increase compared to the previous quarter, as the strip ratio moderated following the significant prime overburden removal in the first half of the year.

Rob Bishop: Raw coal production was 3 million tonnes, a 16% increase compared to the previous quarter as the strip ratio moderated following the significant prime overburden removal in the H1 of the year. Saleable coal production was 2.3 million tonnes, up 8% from the previous quarter, driven by the increase in raw coal volumes. At New Acland Mine, the raw coal production totaled 1.7 million tonnes, a 3% increase on the previous quarter, also driven by a reduction in strip ratio. New Acland Mine achieved coal sales of 0.9 million tonnes, 7% lower than the previous quarter, primarily due to rail cancellations across the network resulting from Queensland Rail-protected industrial action. The group achieved an underlying EBITDA of AUD 169 million, a 30% increase on the previous quarter. The uplift in earnings was driven by improvements in the group's realized pricing with both favorable movements in benchmark indices and foreign exchange.

Speaker #2: Salable coal production was 2.3 million tons, up 8% from the previous quarter, driven by the increase in ROM coal volumes. At New Acland Mine, the ROM coal production totaled 1.7 million tons, a 3% increase on the previous quarter, also driven by a reduction in strip ratio.

Speaker #2: New Auckland Mine achieved coal sales of 0.9 million tonnes, 7% lower than the previous quarter, primarily due to rail cancellations across the network resulting from Queensland Rail protected industrial action.

Speaker #2: The group achieved an underlying EBITDA of $169 million, a 30% increase on the previous quarter. The uplift in earnings was driven by improvements in the group's realized pricing, with both favorable movements in benchmark indices and foreign exchange.

Speaker #2: With the ongoing conflict in the Middle East, volatility in energy markets is expected to continue following supply concerns. This underpins support for thermal coal generation as a reliable energy supply.

Rob Bishop: With the ongoing conflict in the Middle East, volatility in energy markets is expected to continue following supply concerns, which underpin support for thermal coal generation as a reliable energy supply. Turning to our full-year results, 2026 marked another great year for New Hope Group as we continue to increase volumes and deliver our organic growth profile. The group achieved saleable coal production of 11.5 million tonnes, an 8% increase on the 2025 financial year result, and above the group's guidance range. At New Acland Mine, we continue to successfully ramp up the operation towards a 5 million tonnes per annum target. For the 2026 financial year, New Acland Mine produced 3.3 million tonnes of saleable coal, an uplift of 17% compared to the previous year.

Speaker #2: Turning to our full-year results. 2026 marked another great year for New Hope Group, as we continue to increase volumes and deliver our organic growth profile.

Speaker #2: The group achieved salable coal production of 11.5 million tons, an 8% increase on the 2025 financial year result, and above the group's guidance range.

Speaker #2: At New Auckland Mine, we continue to successfully ramp up the operation towards a 5-million-ton-per-annum target. For the 2026 financial year, New Auckland Mine produced 3.3 million tons of salable coal, an uplift of 17% compared to the previous year.

Speaker #2: The increased spot rail capacity during the year enabled coal sales of 3.6 million tons, which exceeded guidance. Looking forward, access to the Manningvale West Pit is scheduled for the second half of the calendar year 2026, which will deliver the next step in production volumes.

Rob Bishop: The operation was able to take advantage of increased spot rail capacity during the year, achieving coal sales of 3.6 million tonnes, which exceeded guidance. Looking forward, access to the Manning Vale West pit is scheduled for the H2 of the calendar year 2026, which will deliver the next step in the production volumes. Over at Bengalla Mine, the 2026 financial year reflected a period of recovery following significant weather events in the Hunter region late in the 2025 financial year. Despite these impacts, the operation delivered a strong finish and showcased its ability to achieve its targeted raw coal production rate. Bengalla Mine delivered saleable coal production and coal sales of 8.2 million tonnes, which exceeded its guidance range.

Speaker #2: Over at Bengalla Mine, the 2026 financial year reflected a period of recovery following significant weather events in the Hunter region late in the 2025 financial year.

Speaker #2: Despite these impacts, the operation delivered a strong finish and showcased its ability to achieve its targeted ROM coal production rate. Bengala Mine delivered salable coal production and coal sales of 8.2 million tons, which exceeded its guidance range.

Speaker #2: In addition, the operation achieved an FOB cash cost of $81.30 per sales tonne, sitting right at the lower end of the guidance range of between $81 and $89 per sales tonne.

Rob Bishop: In addition, the operation achieved an FOB cash cost of AUD 81.30 per sales tonne, sitting right at the lower end of guidance range of between AUD 81 to AUD 89 per sales tonne. Despite a challenging backdrop, the group achieved an underlying EBITDA of AUD 514 million for the 2026 financial year and generated operational cash flows of AUD 564 million. We invite you all to tune in on Tuesday, 15 September as we release our full-year results. We are pleased with our ability to remain a resilient, low-cost producer, and we are looking forward to another safe and productive year ahead. I will now hand over to the operator to start our Q&A session. Thank you.

Speaker #2: Despite a challenging backdrop, the group achieved an underlying EBITDA of $514 million for the 2026 financial year and generated operational cash flows of $564 million.

Speaker #2: We invite you all to tune in on Tuesday, the 15th of September, as we release our full-year results. We are pleased with our ability to remain a resilient, low-cost producer, and we are looking forward to another safe and productive year ahead.

Speaker #2: I will now hand over to the operator to start the Q&A session. Thank you.

Speaker #3: Thank you. If you wish to ask a question via the phones, you will need to press the star key, followed by the number 1 on your telephone keypad.

Operator: Thank you. If you wish to ask a question via the phones, you will need to press the star key followed by the number 1 on your telephone keypad. If you wish to ask a question via the webcast, please type it into the Ask a Question box and click Submit. We will pause for a moment to allow parties to enter the queue. The first phone question today comes from Glyn Lawcock from Barrenjoey. Please go ahead.

Speaker #3: If you wish to ask a question via the webcast, please type it into the Ask a Question box and click Submit. We'll pause for a moment to allow parties to enter the queue.

Speaker #3: The first phone question today comes from Glynn Lorcock from Barrenjoey. Please go ahead.

Glyn Lawcock: Morning, Rob.

Speaker #4: Morning, Rob. Firstly, just a cash flow question. Good morning. Cash flow generation has been exceptionally strong. I guess you finished the year with cash well ahead of everyone's expectations.

Rob Bishop: Morning, Glenn.

Glyn Lawcock: Just firstly, just the cash flow. Good morning. Cash flow generation exceptionally strong. I guess you finished the year with cash well ahead of everyone's expectations.

Speaker #4: Was there anything to call out in the quarter?

Rob Bishop: Yeah.

Glyn Lawcock: Was there anything to call out in the quarter?

Speaker #2: Nothing more than what we've already stated. I mean, certainly, we've had a strong second half to the year, and that continued in the final quarter.

Rob Bishop: Nothing more than what we have already stated. Certainly we had a strong H2 to the year, and that was continued in the final quarter. But heightened coal prices along with increased production certainly has given a good outcome to get to the cash level where we are at.

Speaker #2: But higher coal prices, along with increased production, certainly have given a good outcome. So, to get to the cash level where we're at.

Speaker #4: I guess, was there a working capital unwind or anything you can call out? Because, I mean, $200 million cash in the quarter, $800 million annualized.

Glyn Lawcock: I guess, was there a working capital unwind or anything you can call out? Because AUD 200 million cash in the quarter, AUD 800 million annualized. It is pretty impressive as sort of 18% free cash flow yield. So I just wondered if there is working capital with it was a one-off?

Speaker #4: I mean, it's pretty impressive—that sort of 18% free cash flow yield. So I just wondered if there's any working capital that was a one-off.

Speaker #2: Yeah, I think there was a slight reduction in coal stocks. I don't have the figure in front of me, but that could have played a part in it.

Rob Bishop: Yeah, I think there was a slight reduction in coal stocks. I do not have the figure in front of me, but that could have played a part in it. I do not think there was a significant drawdown on receivables.

Speaker #2: I don't think there was a significant drawdown on receivables.

Speaker #5: I guess one thing, Glynn, just to note on it: during Q3, we did have a number of significant outflows. So I'm sure you've already got the dividends in there, but we also had the cash impact of the convertible bond buyback.

Rebecca Rinaldi: I guess one thing, Glenn, just to note on it, during Q3, we did have a number of significant outflows. I am sure you have already got the dividends in there, but we also had the cash impact of the convertible bond buyback. So there was a few outliers probably in Q3, which then I guess accelerated the look of Q4 in terms of cash flow.

Speaker #5: So there were a few outliers, probably in Q3, which then, I guess, accelerated the look of Q4 in terms of cash flow.

Speaker #4: Okay, that's cool. And then, Rob, just—I know I'm not trying to get too far ahead—$800 million of available cash. How do you think about how much you want to hang on to of that cash?

Glyn Lawcock: Okay, that is cool. Rob, I am not trying to get too far ahead, but you have now got almost AUD 800 million of available cash. How do you think about how much you want to hang on to of that cash? Obviously, you have New Acland. If you could maybe share with us how much you have got left to spend there. Once we get through New Acland, which I think is another 12 months' worth of expenditure, how are you thinking about what is the right level of cash to hold on the balance sheet? Thanks.

Speaker #4: And obviously you've got New Auckland, and if you could maybe share with us how much you've got left to spend there—once we get through New Auckland, which I think is another 12 months' worth of expenditure—how are you thinking about what's the right level of cash to hold on the balance sheet and those things?

Speaker #2: Yeah, no, good question, Glynn. I think, to Auckland, we're sort of partway through executing that capital expenditure. I think we gave guidance of around about $130 million required to complete the Manningvale West Pit, or opening up that pit with the road realignment and fleet required to open up that pit.

Rob Bishop: Yeah. No, good question, Glyn. I think to Acland, we are sort of partway through executing that capital expenditure. I think we gave guidance of around AUD 130 million required to complete the Manning Vale West pit or opening up that pit with the road realignment and fleet required to open up that pit. That is partway through, and I think as you would have seen in the quarterly, we should be into first coal beginning of next calendar year. That is really the focus from a capital expenditure. We are rounding off a bit more at Bengalla. Following those, capital expenditure should get to more modest levels moving forward, albeit while production is increasing. So cash generation should improve even further than where we have been at, which is a great story. You are quite right.

Speaker #2: That's partway through, and I think, as you would have seen in the quarterly, we should be into first coal at the beginning of next calendar year.

Speaker #2: That's really the focus from a capital expenditure perspective. We're rounding off a bit more at Bengala, but following those, capital expenditure should get to more modest levels moving forward, albeit while production's increasing.

Speaker #2: So cash generation should improve even further than where we've been at, which is a great story. You're quite right—cash balances are quite high, which is a good problem to have.

Rob Bishop: Cash balances are quite high, which is a good problem to have, and certainly, we have got a significant franking account balance. So we will be looking to reward shareholders like we always do and have pretty much every year since we have been around. So that will continue. From how much cash we want to hold. Certainly, we still sort of look at it that we need to probably hold a little bit more than what we would have historically going back sort of five to 10 years ago. But fair to say our cash balances at the moment are higher than what we would ultimately want to hold on the balance sheet.

Speaker #2: And certainly, we've got a significant franking account balance. So we'll be looking to reward shareholders like we always do and have pretty much every year since we've been around.

Speaker #2: So that will continue. From how much cash we want to hold, certainly we still sort of look at it that we need to probably hold a little bit more than what we would have historically, going back sort of five to ten years ago.

Speaker #2: But it's fair to say that our cash balances at the moment are higher than what we would ultimately want to hold on the balance sheet.

Speaker #4: Sorry, can I just ask you—in your mind, what was that cash balance five to ten years ago? Your memory is probably better than mine.

Glyn Lawcock: Sorry, can I just ask you, in your mind, what was that cash balance five to 10 years ago? Your memory is probably better than mine.

Rob Bishop: When I say that, it is more a case of it was quite easy to go and source funding being a thermal coal mine. Going back many years, you could argue that you could hold less cash. Our view is, although we certainly are finding markets which are opening up to us, and we have seen that with convertible bonds recently. I guess we do not want to be in a state of stress if we did have a major stoppage at site. Not that we intend to do that, but if we were in a situation, we would not want to be stressed going to market for cash. The typical banks that would have been there for us previously are not. So, it is prudent for us to ensure that we have got a bit of extra cash on our balance sheet, just from a risk management perspective.

Speaker #2: When I say that, it's more a case of—it was quite easy to go and source funding, being a thermal coal mine going back many years, and you could argue that you could hold less cash.

Speaker #2: Our view is, although we certainly are finding markets which are opening up to us—and we've seen that with the convertible bond recently—I guess we don't want to be in a state of stress if we did have a major stoppage at site. Not that we intend to do that, but if we were in that situation, we wouldn't want to be stressed going to market for cash.

Speaker #2: The typical banks that would have been there for us previously are not, so it's prudent for us to ensure that we've got a bit of extra cash on our balance sheet.

Speaker #2: Just from a risk management perspective.

Speaker #4: And would that have been 1 to 200, 5 to 10 years ago? You're probably thinking 50% more than that, or—I'm just trying to understand what was the previous thinking 5 to 10 years ago.

Glyn Lawcock: Would that have been AUD 100 million to AUD 200 million 5 to 10 years ago? You are probably thinking 50% more than that? I am just trying to understand what was the previous thinking 5 to 10 years ago.

Speaker #2: Yeah, it was probably closer to one. You'd also need to take into account the operations which we had operating. Up until recently, we were a single asset mine.

Rob Bishop: Yeah. It was probably closer to one. You would also need to take into account the operations which we had operating. Up until recently we were a single asset mine, whereas probably 5 to 10 years ago, we had probably three to four operations. So there are a lot of things we need to take into account. We certainly increased our minimum cash view, when we just had Bengalla going and Acland was going into care and maintenance. Obviously, with Acland ramping up, there is good solid cash flows coming out of that. So, the risk is spread a bit more. But certainly, as I said, cash is probably materially higher than what we would see as a minimum cash balance. And we have got a significant franking account balance. So I think it is fair to say there will be a reasonable dividend paid.

Speaker #2: Whereas probably five to ten years ago, we had probably three to four operations. So, there's a lot of things we need to take into account.

Speaker #2: We certainly increased our minimum cash view when we just had Bengala going and Auckland was going into care and maintenance. Obviously, with Auckland ramping up, there are good, solid cash flows coming out of that.

Speaker #2: So, the risk is spread a bit more, but certainly, as I said, cash is probably materially higher than what we would see as a minimum cash balance.

Speaker #2: So we've got a significant franking account balance. So I think it's fair to say there will be a reasonable dividend paid.

Speaker #4: All right, that's great. Thanks very much.

Glyn Lawcock: All right. That is great. Thanks very much.

Speaker #2: No problem.

Rob Bishop: No problem.

Speaker #1: Thank you. The next phone question comes from Daniel Roden from Jefferies. Please go ahead.

Operator: Thank you. The next phone question comes from Dan Morgan from Jefferies. Please go ahead.

Speaker #3: Hey there, guys, and congratulations on the results.

Dan Morgan: Good day, guys, and congratulations on the results.

Dan Roden: Good day, guys, and congratulations on the results.

Speaker #2: Thank you.

Rob Bishop: Thank you.

Speaker #3: So, a couple for me. I just wanted to get a bit of color on, I guess predominantly Bengala, but if I look at your strip ratio for the quarter, it's come back down to 4.

Dan Morgan: A couple for me. I just wanted to get a bit of color on, I guess predominantly Bengalla, but if I look at your strip ratio for the quarter, it has come back down to 4. Probably just wanted a bit of color around, I guess, operationally what you are seeing at the mine. Is 4 strip ratio more the new precedent that we are expecting into FY27 and FY28? Or is that a bit just of a quarterly short-term kind of recalibration of the pits?

Dan Roden: A couple for me. I just wanted to get a bit of color on, I guess predominantly Bengalla, but if I look at your strip ratio for the quarter, it has come back down to 4. Probably just wanted a bit of color around, I guess, operationally what you are seeing at the mine. Is 4 strip ratio more the new precedent that we are expecting into FY27 and FY28? Or is that a bit just of a quarterly short-term kind of recalibration of the pits?

Speaker #3: And probably just wanted a bit of color around, I guess, operationally what you're seeing at the mine, and is there a forced strip ratio?

Speaker #3: Is that kind of more the new precedent that we're expecting into FY27 and FY28, or is that just a bit of a quarterly, short-term recalibration of the bids?

Speaker #2: It was certainly a strong quarter. We previously provided guidance on strip ratio going back, I think, to last year, or last year's full-year result, I think.

Rob Bishop: It was certainly a strong quarter. We had previously provided guidance on strip ratio, going back, I think, to last year or last year's full year result, I think. You can probably look to that for some more detail. Certainly, at both the strip ratio is very low. Certainly, looking forward to remain in the fours on average for Bengalla for the life of the mine, and for Acland. We will see some swings in between quarters. Certainly, in the range of 4 is probably a fair estimate. I would probably recommend you go back and have a look at that prior presentation where we had that detail relative, and I think we had both Acland and Bengalla on that slide relative to industry.

Speaker #2: So you can probably look to that for some more detail, but certainly, at both, the strip ratio is very low. And certainly, looking forward, we expect it to remain in the 4s on average for Bengalla for the life of the mine.

Speaker #2: For Auckland, we will see some swings in between quarters, but certainly, in the range of 4 is probably a fair estimate.

Speaker #2: But I'd probably recommend you go back and have a look at that prior presentation, where we had that detail relative, and I think we had both Auckland and Bengala on that slide relative to industry.

Speaker #3: Yep, no, thank you. And yield as well, like yield to come back a little bit, not returning its kind of winning line of normal.

Dan Morgan: Yep. No, thank you. Yield as well. Yield has come back a little bit. Notwithstanding it is kind of within line of normal kind of things. Was that, I guess the lower yields, an increase in saleable, was that like a deliberate response to, I guess what you are seeing in the spreads between API5 and Newcastle? Or is that, I guess, recovery sequencing into areas that are a bit marginally lower quality coal relative to prior quarters? I guess just a little bit of color around what is going on there.

Dan Roden: Yep. No, thank you. Yield as well. Yield has come back a little bit. Notwithstanding it is kind of within line of normal kind of things. Was that, I guess the lower yields, an increase in saleable, was that like a deliberate response to, I guess what you are seeing in the spreads between API5 and Newcastle? Or is that, I guess, recovery sequencing into areas that are a bit marginally lower quality coal relative to prior quarters? I guess just a little bit of color around what is going on there.

Speaker #3: Kind of things. But is that a, I guess, the lower yields and increase in saleable—was that a deliberate response to, I guess, what you're seeing in the spreads between AP R5 and NUC, or is that a, I guess, recovery sequencing into areas that are a bit marginally lower-quality coal relative to prior quarters?

Speaker #3: Like, yeah, I guess just a little bit of color around what's going on there.

Speaker #2: Yeah, so, I mean, you've touched on a few points there. And it's fair to say that our wash strategy is very much driven by what we're seeing in the market.

Rob Bishop: Yeah. I mean, you have touched on a few points there, and it is fair to say that our wash strategy is very much driven by what we are seeing in the market. We do have the flexibility and particularly since the growth project where we have upgraded the wash plant. We do have the ability to flex between periods of high discount or low discount between high and low ash coal sales to really maximize the profitability of the mine. You will see that happen throughout the year. We also are in a mine, we have got a number of seams there, which are not mined for a number of months. You will see some swings between the high ash and low ash on a quarterly basis and yields as a result. Probably if you look more over an annualized basis, it will be pretty consistent year on year.

Speaker #2: So we do have the flexibility, and particularly since the Growth Project, where we've upgraded the wash plant, we do have the ability to flex between periods of high discount or low discount, between high and low-ash coal sales, to really maximize the profitability of the mine.

Speaker #2: So you will see that happen throughout the year. We also are in a mine, which is — we've got a number of seams there, which are mined for a number of months.

Speaker #2: So, you will see some swings between the high ash and low ash on a quarterly basis—and yields as a result. But probably, if you sort of look more over an annualized basis, it will be pretty consistent year on year.

Speaker #3: Yes, okay. And last one from me for now. The sustaining capex—you decreased guidance for that mid-year, and then you've come in below, on deferral of some of the capital programs.

Dan Morgan: Yep. Okay. Last one from me for now. The sustaining CapEx, you decreased guidance for that mid-year, and then you have come in below and on deferral of some of the capital programs. To the extent you can talk about it, how much of that deferral would we be expecting FY27 or is it still a bit of an open question on what is happening in Manning Vale West and the rail?

Dan Roden: Yep. Okay. Last one from me for now. The sustaining CapEx, you decreased guidance for that mid-year, and then you have come in below and on deferral of some of the capital programs. To the extent you can talk about it, how much of that deferral would we be expecting FY27 or is it still a bit of an open question on what is happening in Manning Vale West and the rail?

Speaker #3: To the extent you can talk about it, how much of that deferral would we be expecting in FY27, or is it still a bit of an open question on what's happening in many of our Western and the rail?

Speaker #2: Yeah, so I'll probably so I think really the focus from a capital perspective and it's something which we it's similar to cost. We're very focused on minimizing capex when we can.

Rob Bishop: Yeah. So I think really the focus from a capital perspective, and it is something which we, it is similar to cost. We are very focused on minimizing CapEx when we can. So that really comes down to good management of overhauls, pushing our assets so that we maximize the productivities, but also balancing that up with risk of unplanned breakdowns. So we put a lot of focus into really optimizing that work in the last year, and that has meant that we have been able to push out some sustaining capital. Some of that is deferral, but some of it is just taking it out and ensuring we are keeping our cash flows to, or cash outflows to a minimum.

Speaker #2: So that really comes down to good management of overhauls, pushing our assets so that we maximize productivity, but also balancing that with the risk of unplanned breakdowns.

Speaker #2: So we put a lot of focus into really optimizing that work in the last year. And that meant that we've been able to push out some sustaining capital, some of that is deferral, but some of it is just taking it out and ensuring we're keeping our cash flows to or cash outflows to a minimum.

Speaker #3: Okay, sounds good. I had a few questions, maybe on Malabar, but I might requeue and let others ask some questions. So, cheers.

Dan Morgan: Okay. Sounds good. I had a few questions maybe on Malabar, but I might break you and let others ask some questions. Cheers.

Dan Roden: Okay. Sounds good. I had a few questions maybe on Malabar, but I might break you and let others ask some questions. Cheers.

Speaker #2: Sure.

Rob Bishop: Sure.

Speaker #1: Thank you once again. To ask a question via the phones, please press star one on your telephone and wait for your name to be announced.

Operator: Thank you once again. To ask a question via the phones, please press star 1 on your telephone and wait for your name to be announced. To register a question via the webcast, please type it into the Ask a Question box and click Submit. Moving to webcast questions. The first webcast question is: Could you please provide an update on the Brisbane rail network? You mentioned there was constraints in the quarterly.

Speaker #1: To register a question via the webcast, please type it into the 'Ask a Question' box and click submit. Moving to webcast questions, the first webcast question is: Could you please provide an update on the Brisbane Rail Network?

Speaker #1: You mentioned there were constraints in the quarterly.

Speaker #2: Yeah, so unfortunately, rough performance in the fourth quarter was impacted by QR, or Queensland Rail, protected industrial action. So this has been well publicized.

Rob Bishop: Yeah. Unfortunately, rail performance in Q4 was impacted by QR or Queensland Rail protected industrial action. This has been well-publicized, and there is also the complication of Cross River Rail outages. We have been working very closely with QR to try and mitigate as much of that impact as possible. But, certainly we have seen some constraints, and has resulted in lower overall paths provided during the quarter.

Speaker #2: And there's also the complication of Cross River Rail outages, so we've been working very closely with QR to try and mitigate as much of that impact as possible.

Speaker #2: But certainly, we have seen some constraints, and as a result, it led to lower overall pass provided during the quarter.

Speaker #1: Thank you. The next webcast question is: Safety in the coal industry has been at the forefront of media in recent weeks. What are you doing at New Hope Group to ensure safety at sites?

Operator: Thank you. The next webcast question is: Safety in the coal industry has been at the forefront of media in recent weeks. What are you doing at New Hope Group to ensure safety at sites?

Speaker #2: Yeah, no, it's a good question. And I think probably, first of all, I just want to acknowledge those affected by recent events. Mining is a large industry.

Rob Bishop: Yeah. No, it is a good question, and I think probably first of all, just want to acknowledge those affected by recent events. Mining is a large industry, but a small community. The events which we have seen probably go back only three or four weeks ago with the two fatalities across the east seaboard is very tragic. It has also prompted us to really reflect on our own sites. Consistent with our values, we have held safety pauses across the group, and really had a particular focus on listening to frontline people, understanding what they are seeing and experiencing, rather than assuming that we know all the answers and we run safety perfectly. It is always a journey, for want of a better term. It is always going to be something which we can never keep our eyes off. We have got a strong culture of sharing across the group, learning, and really challenging ourselves.

Speaker #2: But a small community. So the events which we've seen probably go back only three or four weeks ago, with the two fatalities across the east at Seaboard, is very tragic.

Speaker #2: It's also prompted us to really reflect on our own sites. Consistent with our values, we've held safety pauses across the group and really had a particular focus on listening to the frontline people, understanding what they're seeing and experiencing.

Rob Bishop: Consistent with our values, we have held safety pauses across the group, and really had a particular focus on listening to frontline people, understanding what they are seeing and experiencing, rather than assuming that we know all the answers and we run safety perfectly. It is always a journey, for want of a better term. It is always going to be something which we can never keep our eyes off. We have got a strong culture of sharing across the group, learning, and really challenging ourselves. Our primary focus of safety is just to really focus on risks capable of causing fatal or serious harm. Certainly it is an area of focus for the group and will remain so.

Speaker #2: Rather than assuming that we know all the answers and that we run safety perfectly, it's always a journey, for want of a better term. It's always going to be something which we can never keep our eyes off.

Speaker #2: We've got a strong culture of sharing across the group, learning, and really challenging ourselves. So, our primary focus for safety is to really focus on risks capable of causing fatal or serious harm.

Rob Bishop: Our primary focus of safety is just to really focus on risks capable of causing fatal or serious harm. Certainly it is an area of focus for the group and will remain so.

Speaker #2: So, certainly, it's an area of focus for the group and will remain so.

Speaker #1: Thank you. Going back to the phone questions, we now have a follow-up from Daniel Roden from Jefferies. Please go ahead.

Operator: Thank you. Going back to the phone questions, we now have a follow-up from Dan Morgan from Jefferies. Please go ahead.

Speaker #3: Can I rough long time?

Dan Morgan: G'day, Ross. Long time.

Dan Roden: G'day, Ross. Long time.

Speaker #2: Let me guess, Malabar.

Rob Bishop: Let me get Malabar.

Speaker #3: Yeah, no, just a few checking ones if I can. I was just wondering, with the, I guess, the 25 or aggregate 26% equity ownership, how you're expecting to account for that on the books going forward, now that it's, I guess, in this ramp-up period and starting to generate a bit of cash?

Dan Morgan: Yeah, just a few cheeky ones, if I can.

Dan Roden: Yeah, just a few cheeky ones, if I can.

Rob Bishop: Yeah.

Dan Morgan: I was just wondering, with the, I guess the 25% or aggregate 26% equity ownership, how you are expecting to account that on the books going forward now that it is, I guess, in its ramp-up period and starting to generate a bit of cash?

Dan Roden: I was just wondering, with the, I guess the 25% or aggregate 26% equity ownership, how you are expecting to account that on the books going forward now that it is, I guess, in its ramp-up period and starting to generate a bit of cash?

Speaker #2: Yeah, so it's certainly in its ramp-up phase. We were down on site probably about a month or so ago, down underground to see the longwall operating, which was great to see.

Rob Bishop: Yeah. So it is certainly in its ramp-up phase. We were down on site, probably about a month or so ago. Got down underground to see the longwall operating, which was great to see. So certainly for the team there, it is an exciting time and productivities will continue to ramp up from this point onwards. So it should get to a point, in the not-too-distant future of being cash generative, which is exciting.

Speaker #2: So certainly, for the team there, it's an exciting time, and productivities will continue to ramp up from this point onwards. So it should get to a point in the not-too-distant future of being cash generative.

Speaker #2: Which is exciting.

Speaker #3: Yeah, okay. And I guess you saw Malabar picked up some tenements from Mount Arthur, the BSP asset to the north. To the extent you can talk about it, do you have any indication around how that might fit into the production and development pipeline?

Dan Morgan: Yeah. Okay. I guess, you saw Malabar Resources picked up some tenements from Mount Arthur, the BHP asset. To the extent you can talk about it, do you have, I guess, any indication around how that might fit into the, I guess, production and development pipeline, given that New South Wales has a ban on greenfield developments now that seems like a pretty good strategic asset to have in that portfolio.

Dan Roden: Yeah. Okay. I guess, you saw Malabar Resources picked up some tenements from Mount Arthur, the BHP asset. To the extent you can talk about it, do you have, I guess, any indication around how that might fit into the, I guess, production and development pipeline, given that New South Wales has a ban on greenfield developments now that seems like a pretty good strategic asset to have in that portfolio.

Speaker #3: Given that New South Wales has a ban on greenfield development now, that seems like a pretty good strategic asset to have in that portfolio.

Speaker #2: Yeah, no, it's a good point. And that was a—that in itself, that transaction was a—which was a good outcome. It provided assistance to BHP, but also provided future optionality for Malabar.

Rob Bishop: Yeah. No, it is a good point, and that in itself, that transaction was a good outcome. It provided assistance to BHP, but also provided future optionality for Malabar Resources. You just pointed out the stance from New South Wales Government. I think that really supports the kind of transaction which happens. This would not be regarded as greenfield, if the team at Malabar Resources were to progress any potential opportunities for further development in those tenements.

Speaker #2: So you just pointed out the stance from the New South Wales government. I think that really supports the kind of transaction which happens, as this would not be regarded as greenfield.

Speaker #2: If the team at Malabar were to progress any potential opportunities for further development in those tenements.

Speaker #3: Yep, yeah, okay. And I just wanted to ask as well—it's just a bit of a, maybe potentially, left field—but you've seen Malabar has been, I guess, semi-publicly doing a bit of a data set play out at the Mayfields.

Dan Morgan: Yep. Yeah. Okay. I just wanted to ask as well, it is just a bit of a, maybe potentially left field, but you have seen Malabar has been, I guess, semi-publicly, doing a bit of a data center play out, the Mayfields, energy precincts and data center projects. I guess, given you have a fairly material stake, in Malabar

Dan Roden: Yep. Yeah. Okay. I just wanted to ask as well, it is just a bit of a, maybe potentially left field, but you have seen Malabar has been, I guess, semi-publicly, doing a bit of a data center play out, the Mayfields, energy precincts and data center projects. I guess, given you have a fairly material stake, in Malabar do you have a view on, I guess, how that shapes up and what the, I guess, mechanisms there are and how that gets monetized into the portfolio? I guess firstly, a view on that. Are you looking at any similar opportunities given your tenements are a stone's throw away as well, and it seems like there is a lot of moves in that area to go and try and monetize data centers and battery developments and everything like that? Yeah. Cheers.

Speaker #3: Kind of energy precincts and data center projects. I guess, do you have a given you have a fairly material stake in Malabar, do you have a view on, I guess, how that shapes up and what the, I guess, mechanisms there are and how that gets monetized into the portfolio and I guess, firstly, like a I guess, a view on that.

Dan Morgan: do you have a view on, I guess, how that shapes up and what the, I guess, mechanisms there are and how that gets monetized into the portfolio? I guess firstly, a view on that. Are you looking at any similar opportunities given your tenements are a stone's throw away as well, and it seems like there is a lot of moves in that area to go

Speaker #3: But are you looking at any similar opportunities, given your tenements, to store or stow away as well? And it seems like there's a lot of moves in that area to go and try and monetize data centers and battery developments and everything like that.

Dan Morgan: and try and monetize data centers and battery developments and everything like that? Yeah. Cheers.

Speaker #2: Yeah, no, it's a good question. I think just with regards to New Hope—and if you look, I guess, at the Malabar setup with regards to land and access to various infrastructure, etc.—Bengal is probably in a bit of a different space.

Rob Bishop: Yeah. No, it is a good question. I think just with regards to New Hope and if you look, I guess at the Malabar setup with regards to land and access to various infrastructure, et cetera. Bengalla is probably in a bit of a different space. It is not something we are actively pursuing at Bengalla, but it is certainly a potential opportunity in the future for the Malabar team. It is fair to say the number one focus is on the Maxwell Mine and ramping that up. But there are also some exciting opportunities on the side, for want of a better term, for data centers, battery, et cetera, which Wayne and the team are progressing. Then some, I guess, larger decisions will have to be made on those potential investments in the future given their quantum.

Speaker #2: It's not something we're actively pursuing at Bengala, but it is certainly a potential Malabar team. It's fair to say the number one focus is on the Maxwell mine and ramping that up.

Speaker #2: But there's also some exciting opportunities on the side, for want of a better term, for a data center's battery, etc., which Wayne and the team are progressing.

Speaker #2: And then some, I guess, larger decisions will have to be made on those potential investments in the future, given their quantum.

Speaker #3: No, perfect. So I really appreciate your answers, then. And I'll hand it over. Thanks.

Dan Morgan: No, perfect. I really appreciate your answers, mate, and I will hand it over. Thanks.

Dan Roden: No, perfect. I really appreciate your answers, mate, and I will hand it over. Thanks.

Speaker #2: No worries.

Rob Bishop: No worries.

Speaker #1: Thank you. The next phone questionnaire is from Christopher Creech from Morgan's Financial. Please go ahead.

Operator: Thank you. The next phone questioner is from Christopher Creevey from Morgans Financial. Please go ahead.

Speaker #3: Good morning, Rob, Rebecca, and Tom. Thanks very much. On the fourth quarter, just a cheeky question from me, Rob, just around New Auckland. I mean, you guys had a pretty good year there.

Christopher Creevey: Morning, Rob, Rebecca, and Dom. Thanks very much.

Christopher Creech: Morning, Rob, Rebecca, and Dom. Thanks very much.

Rob Bishop: Thank you.

Christopher Creevey: On the Q4, just a cheeky question from me, Rob, just around New Hope. You guys had a pretty good year there. Last year in your end of year presentation pack, you put some color in there around your growth potential for all three of those assets, Bengalla Mine, New Acland Mine, and then Maxwell Mine.

Christopher Creech: On the Q4, just a cheeky question from me, Rob, just around New Hope. You guys had a pretty good year there. Last year in your end of year presentation pack, you put some color in there around your growth potential for all three of those assets, Bengalla Mine, New Acland Mine, and then Maxwell Mine. That sort of implies that you are getting to your nameplate capacity at New Acland Mine by sort of, let us say, 2029 onwards. Is that still holding true, or are you thinking that you potentially could get there slightly earlier? How should we view the ramp-up to nameplate for New Hope, if you would be so kind?

Speaker #3: And last year in your sort of end-of-year presentation pack, you sort of put some color in there around sort of your growth sort of potential for all three of those sort of assets, Bengal and New Auckland and Maxwell.

Speaker #3: And that sort of implies that you're getting to your nameplate capacity at New Auckland by sort of, let's say, 29 onwards. Is that still sort of holding true, or are you sort of thinking that you potentially could get there sort of slightly earlier, like how should we sort of view the ramp-up name or ramp-up to nameplate for New Auckland if you could be so kind?

Christopher Creevey: That sort of implies that you are getting to your nameplate capacity at New Acland Mine by sort of, let us say, 2029 onwards.

Christopher Creevey: Is that still holding true, or are you thinking that you potentially could get there slightly earlier? How should we view the ramp-up to nameplate for New Hope, if you would be so kind?

Speaker #2: Yeah, I think, and it's probably consistent with what I've said previously. We're pushing as hard as we can to ramp up that asset—obviously in a safe manner—but we haven't been holding back, for want of a better term. Opening up the Manningvale West pit is key to that.

Rob Bishop: Yeah, I think, and it is probably consistent with what I have said previously, we are pushing as hard as we can to ramp up that asset, obviously in a safe manner. But we haven't been holding back, for want of a better term. Opening up the Manning Vale West pit is key to that. As I said, we will be on first coal, first quarter calendar year next year, and that will really open up the mine to get up to that 5 million product. So I think, as far as our target goes, that probably hasn't changed. But certainly, as we have probably seen this year, we are probably a little bit ahead of schedule. So, we are managing the rail, the short-term rail impacts of QR. But certainly, we will be pushing as hard as possible to get to that 5 million ton run rate.

Speaker #2: As I said, we'll be on first coal in the first quarter of the calendar year next year. And that'll really sort of open up the mine to get up to that 5 million product.

Speaker #2: So I think, as far as our target goes, that probably hasn't changed. But certainly, as we've probably seen this year, we're probably a little bit ahead of schedule.

Speaker #2: So, we're managing the rail—or the short-term rail—impacts of QR. But certainly, we'll be pushing as hard as possible to get to that 5 million tonne run rate.

Speaker #3: Perfect. Thanks so much.

Christopher Creevey: Perfect. Thanks so much.

Christopher Creech: Perfect. Thanks so much.

Speaker #2: No problem.

Rob Bishop: No problem.

Speaker #1: Thank you. The next phone question is a follow-up from Glen Lorcock from Barron Joey. Please go ahead.

Operator: Thank you. The next phone question is a follow-up from Glyn Lawcock from Barrenjoey. Please go ahead.

Speaker #4: Hey Rob, thanks again. Maybe one for Rebecca. Just the Bengala cost jumps around a lot. I mean, first half was sort of $84, then you went down to $74, back up to $84.50 in Q4.

Glyn Lawcock: Hey, Rob. Thanks again. Maybe one for Rebecca. The Bengalla costs jump around a lot. H1 was sort of AUD 84, then you went down to AUD 74, back up to AUD 84.50 in Q4. And the dollar spend was, if you multiply by the coal sales, quite low in Q3. Why the jump? Is it somewhere in the middle as we exit 2026, or is the final quarter more indicative of how we should think about Bengalla moving forward?

Speaker #4: And the dollar spend was, if you multiplied by the coal sales, quite low in Q3. Why is the jump? And is it somewhere in the middle as we exit '26, or is the final quarter more indicative of how we should think about Bengala moving forward?

Speaker #5: Yeah, I think probably the final quarter is more indicative of Bengala. But I mean, as Rob touched on, cost control is a key focus of ours.

Rebecca Rinaldi: Yeah, I think probably the final quarter is more indicative of Bengalla. As Rob touched on, cost control is a key focus of ours. We are trying to really, I guess, stay in front of those inflationary impacts, which we have seen across the industry over the last 6 months. Just to touch on the higher unit rate for Q4, though. There were, I guess, less sales than we originally planned. I think in terms of waste, that H1 of the year, we had to move a lot more waste to get the pit back into sequence following the significant weather event back end of 2025. Yeah, I think coupled with inflationary impacts, we will try and really hold tight on the full year cost. Noting Bengalla, and you have seen the pit, Glenn, it is generally pretty consistent.

Speaker #5: We're trying to really, I guess, stay in front of those inflationary impacts, which we've seen across the industry over the last six months. Just to touch on the higher unit rate for Q4, though, there were, I guess, fewer sales than we originally planned.

Speaker #5: And I think in terms of waste, that first half of the year, we had to move a lot more waste to get the pit back into sequence following the significant weather event at the back end of 2025.

Speaker #5: But yeah, I think, coupled with inflationary impacts, we'll try and really hold tight on the full-year cost. But noting Bengalla—and you've seen the pit, Glenn—I mean, it's quite generally pretty consistent.

Speaker #5: So, when sales potentially move out of the plan, that does drive a bit of a variance in the unit cost.

Rebecca Rinaldi: When sales potentially move out of the plan, that does drive a bit of a variance in the unit cost.

Speaker #4: Okay, but the final quarter of it had the diesel in. Is there like a new contract for the workers that kicks in this year, or is your—?

Glyn Lawcock: Okay. The final quarter, it had the diesel in. Is there a new contract for the workers that kicks in this year?

Speaker #5: No, that is next year. Oh, sorry—this year that we're in now. So that's, I think, August or September. That'll be negotiated and finalized.

Rebecca Rinaldi: No, that is next year. Sorry, this year that we are in now. So that is, I think, August, September.

Rebecca Rinaldi: No, that is next year. Sorry, this year that we are in now. So that is, I think, August, September. That will be negotiated and finalized.

Rebecca Rinaldi: That will be negotiated and finalized.

Speaker #4: Okay, and then maybe just a final question for you, Rob. Obviously, last quarter, there have been a couple of sales completed—the Anglo sale, second time around, plus the old Rio mine, which has gone on in a couple of ways.

Glyn Lawcock: Okay. Then maybe just a final question, going back to you, Rob.

Glyn Lawcock: Just obviously, last quarter, there has been a couple of sales completed. The Anglo American sale second time around, plus the old Rio Tinto mine, which gone a couple of ways. Is anything out there exciting you or grabbing your attention, or is the real focus all just internal at the moment, there is nothing external?

Speaker #4: Is there anything out there exciting you or grabbing your attention, or is the real focus all just internal at the moment? There's nothing external?

Speaker #2: Yeah, I don't think there's anything external which is getting us excited. Our focus is, and has always been, focusing on the organic growth piece, which we're almost there.

Rob Bishop: Yeah, I don't think there's anything external which is getting us excited. Our focus is and has always been focusing on the organic growth piece. We're almost there. But yeah, nothing really out on the market at the moment, which is a right fit for our assets.

Speaker #2: But yeah, nothing really out on the market at the moment which is the right fit for our assets.

Speaker #4: All right. Thanks again.

Glyn Lawcock: All right. Thanks again.

Speaker #2: No worries.

Rob Bishop: No worries.

Speaker #1: Thank you. That does conclude the question and answer session. I'll hand the conference back to Rob for any closing remarks.

Operator: Thank you. That does conclude the question and answer session. I'll hand the conference back to Rob for any closing remarks.

Rob Bishop: No worries. Thanks very much for your time today, all. Appreciate you dialing in, and have a great day. Thank you.

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