Whitehaven Metallurgical Coal Acquisition Presentation
We are delivering our strategy through a disciplined
approach to risk management and capital allocation
Strategy
Evaluation
and risk
management
•
Capital
allocation
Our strategy is to own and sustainably operate large, cost-efficient mines that support economic development and
the global energy transition. A core pillar of our strategy has been to increase exposure to metallurgical coal over time.
Our strategy informs capital allocation to support Whitehaven transitioning to the optimal portfolio for the future.
Our strategy should evolve over time as we continue to use long-term scenarios to test portfolio resilience and identify new
opportunities as supply and demand opportunities evolve.
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•
For organic and inorganic investment decisions both risk and reward are carefully considered including risks of under-
investing in the business, and risks of entering new markets
Quantitative and qualitative assessments are undertaken including stress testing and sensitivity analysis through the cycle
and under a range of market scenarios, external forecasts and regulatory risks
Alternate capital structures and funding opportunities are carefully considered
Capital allocation framework provides clarity for shareholders and promotes clear capital discipline with all investments
tested against additional returns to shareholders
Targeted payout ratio of 20% - 50% of NPAT (excluding NPAT from acquired businesses while paying down vendor finance)1
Targeted leverage of 0.5 x debt/EBITDA at the bottom of the cycle and up to 2.0 x debt/EBITDA as a result of acquisitions
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1.
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Optimal cash balance on balance sheet depends on strategic priorities, alternate funding sources, point in cycle
The bridge facility which expires on 30 June 2024 includes a restriction on distributions while the bridge is in effect. We expect to replace the bridge expeditiously.
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