Investor Presentaiton
Capital allocation framework
Disciplined capital allocation builds resilience and delivers shareholder value
Operating cash flows
27
27
1
Return to shareholders
Dividends
Buy-backs
During deferred payment period for Daunia & Blackwater acquisition, we expect:
•
•
•
To maintain franked dividends within the targeted payout ratio of 20-50% of
NPAT generated from existing operations (i.e. excluding the acquired Assets)
Direct cashflows from the acquired business to retiring vendor finance
The share buy-back to remain on hold - the Board will make a decision
regarding the resumption of the buy-back at the appropriate time.
Maintain & optimise
operations
Sustaining capex, leases,
extensions of existing
operations, and investments in
HSE, new technologies and
innovation
Includes capex for early mining
of Vickery and Narrabri's 200
series
2
3
Retain cash / maintain
balance sheet strength
•
Maintain liquidity & leverage
within target of 0.5 - 1.5x
Retain cash on balance sheet
for flexibility and liquidity
•
Maintain funding diversity
• Target BB+ grade credit rating
4
Use surplus capital
for best use
Growth investments -
M&A
I⚫Acquisition of Blackwater and
Daunia is aligned with capital
allocation framework
Growth investments
Development projects
Timing of development plans and
capex will reflect competing
opportunities for capital and
deferred payments for acquisition
Additional returns to
shareholders
The acquisition is expected to
support strong TSR with a
significant step up in capital returns
after making the deferred payments
and when surplus capital emergesView entire presentation