News: NHC New Hope Corporation Says Underlying EBITDA Of A$448.1 Million For Quarter, page-3

AUST Business today:
NEW HOPE RAKING IT IN AFTER STRONG QUARTER
Cameron England

New Hope has boosted its third-quarter earnings substantially, despite weaker coal prices, and is preparing for major infrastructure works at its New Acland Stage 3 project in Queensland, where a key approval was recently granted.
It is also about to restart coal sales into China, as trade relations begin to thaw with Australia’s major export partner, and says its cash pile is also generating income for the company.
The coalminer told the Australian Securities Exchange on Monday it had posted underlying EBITDA of $448.1m in its April quarter – up 14.8 per cent on the previous quarter and 20.6 per cent on the same quarter last year.
Sales from its Bengalla coal operations in NSW were up 47 per cent on the previous quarter to 2.15 million tonnes, while the first coal was also recently produced at Malabar Resources’ Maxwell Mine, also in NSW and in which New Hope has a 15 per cent stake.
Production from that project fell outside the time frame of the report released on Monday.
New Hope said it was cashed-up at the end of the quarter, with $827m in cash and cash equivalents after paying its interim and special dividends (which returned $348.8m to shareholders), and was “now earning material net interest income on its positive cash balances’’.
New Hope’s positive results come despite much weaker coal prices than at this time last year, with the company saying the average index price came in at $US191.80, down from $US311.70 for the same period last year and 48.1 per cent down on the January quarter “due to mild winter conditions in the northern hemisphere and customers holding above average coal inventories’’.
“Market pricing stabilised in the quarter and high energy coals saw some gains in April, finishing with an average … monthly price of $US189.70.’’
Imports into key markets were expected to increase in coming months, New Hope told the ASX, with global supplies remaining tight. “The outlook for the remainder of calendar year 2023 remains positive, with market forwards continuing to show a contango,’’ the company said. “With import restrictions on Australian coal into China being lifted … we have refreshed our relationships into the Chinese market and completed our first sales which will be delivered in the next quarter.
“The robust demand from China of lower energy product has provided an outlet for a portion of our coal over the low season.’’
New Hope said it had also started site works at the New Acland Mine Stage 3 project in Queensland, after an internal review at the Department of Regional Development, Manufacturing and Water upheld the agency’s decision to grant the project an associated water licence.
New Hope noted that the Oakey Coal Action Alliance had in May launched a fresh legal challenge in the Land Court of Queensland against the approval. However, the company was forging ahead with land clearing to allow production drilling to start.
“The coal handling and preparation plan refurbishment project is ongoing, preparing the plant for first coal washing during quarter one, financial year 2024,’’ New Hope said.
“Preparations are under way for major infrastructure works, including a train loadout facility, rail lines, roads, bridges and dams.’’
New Hope said its 80 per cent-owned Bengalla operation performed strongly after a dragline shutdown in December.
New Hope shares rose 0.8 per cent on Monday to $5.15.