Coal miner New Hope swings to full-year profit

PERTH (miningweekly.com) – Coal miner New Hope Corporation has swung back into black during the 2017 financial year, with the miner reporting a 362% increase in net profit after tax.

During the 12 months to July, net profit increased to A$140.6-million, compared with a net loss of A$53.6-million in 2016.

The miner reported on Tuesday that the well-timed investment into the Bengalla coal mine, in addition to continued solid production from its Queensland operations, had resulted in a substantially increased sales tonnage of 8.5-million tonnes for the 2017 financial year, which was up 23% on the 2016 figures.

Total revenue for the full year increased by 59%, from A$531.4-million to A$884-million.

New Hope’s 40% interest in the Bengalla joint venture boosted production and sales by some 3.4-million tonnes, with revenues from the operation reaching A$322.6-million, while earnings before interest, taxes, depreciation and amortisation (Ebitda) at Bengalla was reported at A$46.8-million.

The remaining Queensland operations contributed A$502.8-million in revenues, and Ebitda of A$135.2-million.

“What is really pleasing about this strong financial result is that we have concurrently been able to make substantial improvements to our safety performance during the same period,” MD Shane Stephan told shareholders.

“The company generated strong operating cash flows of A$313-million before interest and tax, and net cash inflow from operating activities of A$284.5-million, and has finished the year with cash and cash equivalent on the balance sheet of A$236.9-million.”

For 2018, New Hope is targeting a similar production, with the company focusing on advancing its other projects, including the newly acquired Burton mine, and the New Acland Stage 2 project.

“The Queensland Land Court recommendation in respect of the New Acland Stage 3 mining lease application was disappointing. The New Acland mine employs 275 full time employees and 507 contractors and supports many additional businesses and suppliers associated with the mine,” Stephan said.

“The livelihoods of these people and their families depend on the continuation of the mine.”

The New Acland Stage 3 project will expand the mine’s yearly output from 4.8-million tonnes to 7.5-million tonnes and will extend the operation’s life beyond the current end-date of 2017/18.

The expanded operation will see a further 260 people employed at the mine, and could inject some A$12-billion in local, state and federal revenues over the life of the project.

“New Hope remains committed to progressing the approvals required to deliver the New Acland Stage 3 project. We look forward to the Queensland government’s timely and favourable decision regarding the future of this operation,” Stephan said.