The New Hope Corporation Ltd (ASX: NHC) share price edged lower yesterday despite a positive quarterly result from the Aussie coal miner.
What did New Hope report yesterday?
New Hope reported quarterly total saleable coal production 39% higher on the prior corresponding period (pcp) as total coal sales came in 32% higher on pcp.
The biggest factor was the group's increased ownership in the Bengalla mine, having purchased the 40% stake in the joint venture held by Wesfarmers Ltd (ASX: WES).
Total saleable coal of 3,316,000 tonnes was a big positive for the group, while New Hope also reported full-year Australian production of 10.9mt was the highest in its history.
New Hope noted dry weather conditions in key areas had increased the need for strong dust management processes, with below-average rainfall hurting the performance of its Pastoral operations.
The company said its Acland Pastoral operations were impacted by lower grazing pastures and planting of winter crops, while cattle numbers came in at 1,271 breeder cows, 55 bulls, 237 weaner heifers and 1,019 weaner steers.
In terms of coal exploration, New Hope drilled 29 holes throughout the year for a total of 3,184 metres with activities at its Taroom site focused on collecting coal quality samples for analysis.
How did the New Hope share price react?
Despite initially spiking higher on the strong update, the New Hope share price slid towards the end of trade and closed 0.46% lower at $2.15 per share.
However, with the Aussie coal miner set to report its full-year results on Tuesday 17 September, I think this latest update bodes well for a strong full-year result.
The big question is how much the Adani mining operations in Queensland could hurt New Hope's market position in coming years, while investors are also waiting to see how New Hope has dealt with slowing Chinese demand for coal.
There is the potential that overselling in recent weeks amongst the ASX Resources sector could make New Hope a bargain at its current price, but I'd be waiting until the company's full-year results before making a buy, hold or sell decision.
