The New Hope Corporation Limited (ASX: NHC) share price is dipping in the red during afternoon trade. This comes after the coal miner released its annual general meeting (AGM) address and presentation today.
At the time of writing, New Hope shares are changing hands at $1.962, down 3.35%.
What did New Hope announce?
A possible catalyst for the New Hope share price backtracking could be the spot price of coal misfiring. The crucial commodity is currently fetching for US$150.15 a tonne, down 0.17%.
Despite losing steam of almost 40% in a month, the price of coal has surged close to 140% over the past year.
New Hope provided investors with its AGM address highlighting a strong performance despite facing challenging and uncertain conditions.
The group noted that during the first-half of FY21, Newcastle coal prices were at a near all-time low of US$50 a tonne. This was attributed to COVID-19 affecting global economic activity which drove a material decline in coal prices.
However, the significant turnaround bumped up its underlying earnings before interest, tax, depreciation and amortisation (EBITDA) to $367 million. A 27% increase on the prior corresponding period.
Since the start of FY22, the price of coal has surged to record highs. In particular, October saw coal averaging US$222 a tonne.
The company also mentioned that the largest net importer of coal, China, continues to have a material impact on the global seaborne trade market. Despite Japan continuing to explore cleaner energy sources, the limited availability of these alternatives has fuelled higher demand for thermal power generation.
New Hope’s cornerstone operation, Bengalla is producing strong production and cost results following major maintenance and upgrades. New Acland is moving closer to a shutdown as it awaits stage 3 approvals early next year. Once granted, the mine will restart as it transitions into rehabilitation works whilst maintaining site readiness in the coming months.
About the New Hope share price
Over the last 12 months, New Hope shares moved in circles before shooting higher to register a gain of 60%. The company’s shares accelerated from late September to mid-October, reaching a 52-week high of $2.70.
New Hope has a market capitalisation of roughly $1.64 billion, with approximately 832.36 million shares on its registry.