The New Hope Corporation Ltd (ASX: NHC) share price is in focus after the company posted a quarterly update. Group Run-of-Mine (ROM) coal production rose 5.0% to 4.3 million tonnes and underlying EBITDA jumped 21.7% to $130.1 million, compared to the prior quarter.
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What did New Hope Corporation report?
- Group ROM coal production: 4.26Mt, up 5.0% on the previous quarter
- Saleable coal production: 3.01Mt, up 8.7% quarter on quarter
- Total coal sales: 3.20Mt, a 10.4% quarterly lift
- Average realised sales price: $140.7/t, up 1.2% from prior quarter
- Underlying EBITDA: $130.1 million, up 21.7% from the previous quarter
- Available cash: $571.6 million at quarter end
What else do investors need to know?
New Hope successfully issued $300 million in new convertible notes due 2032, while repurchasing $293.3 million of notes due 2029, extending its debt maturity profile and reducing near-term refinancing risks. The cash balance was further supported by a fully franked 10 cent interim dividend totalling $84.3 million that was paid during the quarter.
On the operational front, the Bengalla Mine achieved a 12.4% improvement in FOB cash costs to $74.0 per sales tonne, driven by stronger sales and operational performance. New Acland Mine coal sales also increased, despite slightly lower ROM production due to higher strip ratios.
What's next for New Hope Corporation?
For the remainder of FY26, the company reaffirmed production guidance for both Bengalla and New Acland mines, while lowering Bengalla's sustaining capital expenditure forecast by 21%. New Hope anticipates ongoing strong demand for thermal coal from key Asian markets, with most production for the next quarter already contracted.
The company plans continued capital management initiatives, with its on-market share buy-back remaining active, and says it will keep assessing options to return further value to shareholders.
New Hope Corporation share price snapshot
Over the past 12 months, New Hope Corporation shares have risen 43%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 4% over the same period.
