The New Hope Corporation Limited (ASX: NHC) share price is tumbling in early trade, down 7.8%.
New Hope closed yesterday at $4.10 and is currently trading for $3.78 per share.
This comes after the S&P/ASX 200 Index (ASX: XJO) coal miner released its quarterly activities update this morning
What happened during the quarter?
The New Hope share price is sliding despite the company reporting on tailwinds from continuing increases in coal prices over the three months.
The miner achieved quarterly underlying earnings before interest, taxes, depreciation and amortisation (EBITDA) of $358.6 million. That brings its year-to-date underlying EBITDA (as at 30 April) to $913 million.
Russia's invasion of Ukraine alongside a rising global energy shortage saw thermal coal prices hit all-time highs. In April New Hope received an average of US$326 per tonne for its thermal coal. That average price was 61% higher than the comparative quarter.
14 April marked the ex-dividend date for New Hope's interim (17 cents) and special (13 cents) dividend payouts. Those were paid on 4 May.
Excluding those dividend payments, the ASX 200 coal miner had cash generation for the quarter of $281.8 million.
The New Hope share price could be coming under pressure from its report that total coal sold during the quarter declined by 26.7% from the prior quarter. The company said labour markets remained tight due to COVID-19 and it was also impacted by heavy rainfall at its Bengalla operations in New South Wales.
However, guidance for total coal sold for the 2022 financial year was lifted by 4%, to 9.461 million tonnes from the previous 9.085 million tonnes.
Looking ahead the New Hope share price could continue to benefit from elevated coal prices.
According to the company:
Pricing is expected to remain elevated for the foreseeable future, with the potential for the market to structurally shift to materially higher long-term levels than those realised in the past.
New Hope share price snapshot
Despite today's slide, the New Hope share price remains up 64% in 2022. That compares to a 6% loss posted by the ASX 200.
