NHC Then.... and Now, page-13

AUST today (extract only):
COAL PRICE BONANZA TO ROLL ON: NEW HOPE
Perry Williams
The price of Newcastle thermal coal will remain at record levels into next year amid supply constraints and an ongoing market crunch following Russia’s invasion of Ukraine, mining producer New Hope has said, after quadrupling its annual earnings and issuing a special dividend.
The price of one of Australia’s biggest commodity exports has surged to all-time highs, with the price of Newcastle coal soaring as miners cash in amid a deepening energy crisis in Europe.
Thermal coal rose to a new peak earlier in September with Newcastle futures trading above $US440 a tonne, more than doubling since the start of the year, and New Hope said prices could keep rising over the next six months.
The miner’s shares surged on the news, closing up 8.8 per cent at $5.94 to make it the best performer on the S&P/ASX 200 index.
“It has been consistently over $US400 a tonne for a couple of months now,” New Hope chief executive Rob Bishop said after releasing the miner’s results. “And our view is that it’s looking to go up further as the winter in the northern hemisphere takes full effect.
“Whether you see a five in front of it is hard to say, but it’s definitely going to stay in the fours for longer and possibly for the best part of six months and maybe even longer. Even if you look at the 2024 calendar year futures, you are looking in the $US300s per tonne.”
A supply crunch was likely to persist, according to Mr Bishop, as more buyers focus on security of supply unfolding from the Ukraine crisis.
“Most are certainly increasing their stockpiles which is certainly exacerbating demand because security of supply is critical,” he said.
“You can’t have countries with their lights going out and this has really highlighted that reliable, baseload power is needed. The world is starting to realise you need to solve that problem before you can move away from fossil fuels. That is a far time away.”
New Hope, which owns the New Acland mine in Queensland and the Bengalla mine in NSW, has been among miners reaping a windfall from soaring coal prices despite weather issues and Covid-19 labour problems, which resulted in a 12 per cent decline in the amount of tonnes sold to buyers.
The company’s annual underlying earnings jumped to $1.6bn, from $367m a year ago, in line with guidance handed down in August, while its net profit after tax rose to $983m, from $79m in the prior 12-month period.
New Hope rewarded its shareholders with a special dividend of 25c a share, taking total payments to 56c a share.
New Hope’s New Acland coal mine is one step away from its long-awaited $900m expansion after the Queensland government late last month granted the project mining leases after years of legal wrangling and delays.
Situated near Oakey on the Darling Downs, west of Toowoomba, the mine has been shuttered since last year, when it ran out of coal while awaiting approvals.
“We’re now waiting on the water licence, which is the final approval we need before we can commence stage three operations,” Mr Bishop said.
Brisbane-based New Hope, controlled by the wealthy Millner family, paid $860m to buy Wesfarmers’ stake in the Bengalla coal mine in NSW.
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