Whitehaven Metallurgical Coal Acquisition Presentation
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Capital allocation framework - current priorities
Allocation of capital will be reviewed in light of the acquisition
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Operating cash flows
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Maintain & optimise
operations
Includes capital expenditure for early
mining of Vickery and Narrabri's
200 series in line with plan
Retain cash / maintain
balance sheet strength
We will maintain liquidity and
leverage within our target of 0.5x-
1.5x including deferred payments
Return to shareholders
Dividends
Buy-backs
During the deferred payment period, we expect to maintain franked dividends within the
targeted payout ratio of 20-50% of NPAT generated from Whitehaven's existing
operations (i.e. excluding the acquired Assets). Cashflows from the acquired business will
be directed to retiring vendor finance.
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.
The share buy-back is similarly expected to remain on hold during this period; the
Board will make a decision regarding the resumption of the buy-back at the appropriate time.
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Use surplus capital
for best use
Growth investments -
M&A
Acquisition of Daunia and Blackwater |
assets aligned with capital
allocation framework
Growth investments -
Development projects
In light of acquisition, timing of
development plans and capex to be
reviewed reflecting competing
opportunities for capital
Additional returns to
shareholders
The acquisition is expected to support strong
Total Shareholder Returns including a
significant step up in capital returns when
deferred payments are made and surplus
capital is available
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