New Hope Corporation Ltd (ASX: NHC) shares are starting the week with a bang.
In morning trade, the ASX 200 mining stock is up almost 5% to $4.93.
This has been driven by the release of the coal miner's first quarter update.
ASX 200 mining stock jumps on strong profit growth
- Coal sales up 8% quarter on quarter to 2.8 million tonnes.
- Saleable coal production up 9% to 2.72 million tonnes
- Underlying EBITDA up 41% to $304.6 million
- Cash balance of $822.7 million
What happened during the quarter?
For the three months ended 31 October, New Hope posted a 9% increase in saleable coal production to 2.72 million tonnes.
This supported an 8% increase in coal sales to 2.8 million tonnes for the three months.
Pleasingly, this was achieved with an average realised sales price of $192.4 per tonne, which was up from $181 per tonne in the previous quarter.
And with the ASX 200 mining stock reporting a 19.3% reduction in cash costs from the Bengalla Mine, the company's profits grew at a very strong rate.
New Hope's underlying EBITDA was up 41% quarter on quarter to $304.6 million. This led to the company ending the period with an available cash balance of $822.7 million. This is after the payment of its final fully franked dividend of 22 cents per share or $186 million.
What's next?
Also giving the ASX 200 mining stock a boost today has been management's guidance for FY 2025.
It is guiding to strong growth in production and sales volumes over the 12 months, as well as lower unit costs. Management notes that this reflects the continued execution of its organic growth plans.
ROM coal production is expected to be 15.48 million tonnes to 17 million tonnes. At the midpoint of this guidance range, it will be a 32% increase on FY 2024's production of 12.337 million tonnes.
Saleable coal production is expected in the range of 10.83 million tonnes to 11.87 million tonnes. The midpoint of this guidance range represents a 25% increase on the 9.063 million tonnes it achieved in FY 2024.
Management is also guiding to FOB cash costs of $71 to $79 per tonne at the Bengalla Mine. This compares to $77.8 per tonne in the previous financial year.
Following today's gain, this ASX 200 mining stock is now up 18% since early September. It has also paid out a sizeable 22 cents per share dividend during this time.
