New Hope share price slides despite quarterly coal production boost

The New Hope Corporation (ASX: NHC) share price is sliding today amid a quarterly activities report.

The coal producer’s share price is currently trading at $4.87, a 1.22% fall. In contrast, the S&P/ASX 200 Index (ASX: XJO) is down 0.74% today.

Let’s take a look at what New Hope reported to the market.

New Hope reports higher coal prices

Highlights of New Hope’s results include:

• Quarterly underlying earnings before interest, tax, depreciation, and amortisation (EBITDA) of $645 million
• Unaudited final full-year EBITDA of $1.56 billion
• Quarterly ROM coal production lifted 29.1% on the previous quarter to 2.484 million tonnes
• Full-year coal production dropped 27.8% to 10.1 million tonnes
• Quarterly total coal sold lifted 0.3% on the previous quarter
• Yearly total coal sold fell 12.4% compared to FY21

What did the company report?

New Hope’s underlying EBITDA lifted in the quarter on the back of higher coal prices. The final unaudited underlying EBITDA of about $1.56 billion is considerably higher than the previous financial year.

In FY2021, New Hope reported an EBITDA of $367 million.

New Hope reported closing cash and cash equivalents of $815 million. This follows the $94.4 million investment in Malabar Resources and includes closing receivables of $504 million.

The company’s 80%-owned Bengalla operation was impacted by unfavourable weather in July and COVID-related labour shortages.

A loss of 15,186 truck hours was reported during the quarter. However, despite this, Bengalla lifted saleable coal production by 20% at these operations compared to the previous quarter. Sale volumes also lifted 5.2%.

New Hope said thermal coal prices hit record highs after the Russian invasion of Ukraine and amid global energy security concerns.

What else is going on?

New Hope is awaiting approvals from the Queensland government to secure New Acland stage three mining leases and a water licence for the company’s Queensland operations. The company is rehabilitating stage two mining areas while waiting on the outcome of this process.

The company is also working on a restart plan for its Queensland operations amid the “unprecedented coal demand”.

Since the end of the quarter, New Hope has received news that the Chuwar Coal Mine, 5km from Ipswich, is now fully rehabilitated. The Queensland government has accepted surrender of New Hope’s environmental authority and mining leases at the site.

Commenting on this news, New Hope said:

The rehabilitation work at both Chuwar and New Acland are a clear and practical demonstration of the successful co-existence of mining and agriculture.

New Hope share price snapshot

The New Hope share price has soared 154% in the past year, while it has risen 119% in a year to date.

For perspective, the benchmark ASX 200 index has lost nearly 6% in the past year.

New Hope has a market capitalisation of nearly $4.1 billion based on the current share price.

The post New Hope share price slides despite quarterly coal production boost appeared first on The Motley Fool Australia.

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Motley Fool contributor Monica O’Shea has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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