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Coal miner New Hope reports 'exceptional' performance in FY23 with net profit exceeding A$1 billion

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(Kitco News) - Australian coal miner New Hope (ASX: NHC) yesterday announced “exceptional” performance across its business for the year ended 31 July 2023 (FY23), underpinned by strong demand and global supply constraints, which pushed thermal coal prices to record levels in the first half of FY23.

The company said that in FY23, it produced 7.2Mt of saleable coal (FY22: 7.9Mt) and generated underlying EBITDA of A$1,746.6 million (FY22: A$1,577.4 million), net cash from operating activities of A$1,524.8 million (FY22: A$1,138.6 million), and net profit after tax of A$1,087.4 million (FY22: A$983 million).

New Hope also declared a final fully franked ordinary dividend of 21.0 cents per ordinary share, as well as a final fully franked special dividend of 9.0 cents per ordinary share.

Importantly, the company said that total full-year fully franked dividends of 70.0 cents per ordinary share provide shareholders with a 13% dividend yield based on a closing share price of A$5.31.

“Exceptional performance across the business throughout FY23 enabled our team to capitalize on the market conditions, finishing the year with A$730.7 million cash at bank, no debt following the convertible note repurchase and a net asset position of A$2,525.3 million,” said CEO Rob Bishop.

“Our flagship operation, the Bengalla Mine, delivered 9.0Mt of saleable production in FY23, a reduction of 3% compared to FY22 and a commendable effort in light of rainfall, flooding and logistics disruptions,” he added.

On top of that, the company reported that during the year, all necessary approvals from the Queensland Government for the New Acland Mine Stage 3 were secured, including an Environmental Authority, Mining Leases and an Associated Water License.

“We are proud to be welcoming team members back to New Acland. Stage 3 operations commenced at the Mine’s Manning Vale East Pit in May 2023, and the Coal Handling and Processing and Plant washed first coal earlier this month,” Bishop said.

New Hope Group is a majority Australian owned and operated diversified energy company with business interests and operations spanning coal mining, exploration, port operation, oil, agriculture, innovative technologies and investment.

New Hope currently has two open cut coal mines, one in the Darling Downs and one in the Hunter Valley: New Acland, north of Oakey in Queensland, and Bengalla, west of Newcastle in New South Wales.

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