The New Hope Corp Ltd (ASX: NHC) share price is sliding today.
Shares in the S&P/ASX 200 Index (ASX: XJO) coal miner closed on Friday trading for $5.02. In morning trade on Monday, shares are changing hands for $4.96 apiece, down 1.2%.
For some context, the ASX 200 is down 0.1% at this same time.
This underperformance comes following the release of the coal miner's four quarter (through to 31 July) and unaudited FY 2024 results.
Here are the highlights.
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New Hope share price falls alongside earnings
- FY 2024 earnings before interest, taxes, depreciation and amortisation (EBITDA) of $859.9 million, down 51% from FY 2023's record result
- Cash generated from operating activities of $562.0 million in FY 2024, down 63% from the FY 2023 record result
- Average realised sales price of $181 per tonne achieved for the quarter, in line with the prior quarter
- Available cash of $824.5 million
What else happened with the ASX 200 coal stock?
Investors may be pressuring the New Hope share price amid the 51% year on year fall in FY 2024 EBITDA.
But it's worth noting that FY 2023 represented all-time high earnings, with New Hope highlighting that its FY 2024 earnings results are the third highest in the company's history.
And underlying EBITDA of $216.3 million for the quarter was in line with the previous quarter.
It's a similar story with the big year on year decrease in cash generated from operations, which came in at a record $1.53 billion in FY 2023.
In other highlights, New Hope noted the strong performances from its Bengalla Mine and New Acland Mine. These contributed to 9.1 million tonnes of saleable coal production and 8.7 million tonnes of coal sales in FY 2024. That's 26% higher than the saleable coal production the mines achieved in FY 2023 and 14% higher than their FY 2023 coal sales.
New Hope also reported that its Bengalla Mine achieved an FOB (free on board) cash cost (excluding state royalties) of $77.8 per sales tonne in FY 2024. Management said this was "comfortably within guidance range despite non-controllable rail cancellations affecting fourth quarter volumes".
The ASX 200 coal miner also successfully raised $300 million in senior convertible notes, providing it with increased financial flexibility.
New Hope's cash balance as at 31 July, post the notes, was $824.5 million. That consists of $638.7 million in cash and cash equivalents and $185.8 million in fixed income investments.
What's next?
Looking to what could impact the New Hope share price in the months ahead, the company said that despite stabilised pricing levels, volatility still exists.
Management noted that even minor demand or supply shocks can move coal prices by up to 10%.
As for the upcoming year, New Hope said:
We expect the thermal coal market to remain balanced for the rest of calendar year 2024, with potential tightening into calendar year 2025, meaning any supply disruptions, either locally or globally, could have significant positive effects on thermal coal prices.
The company's forward sales book remains well supported, with more than 85% of production for the next six months sold.
New Hope share price snapshot
With today's intraday slide factored in, the New Hope share price is down 13% over 12 months.
