New Hope Group posts 32 per cent increase in coal production, offers $100 million share buyback

The New Acland mine is on track to hit its 2027 target of extracting 5 million tonnes of coal per year as it posts profits across the board.

New Hope Group has announced a $100 million share buyback.

New Acland Coal owner, the New Hope Corporation Limited, has posted a net profit after tax off $340.3 million for the first half of the 2024-25 financial year.

The result is down to a 32 per cent increase in coal production as it ramps up activity at the Darling Downs mine in light of the Oakey Coal Action Alliance dropping its latest legal challenge to its Stage 3 expansion.

Supported by the Environmental Defenders Office, OCAA initiated a Land Court challenged to the Queensland Government’s decision to issue the Stage 3 expansion’s associated water licence.

OCAA secretary Paul King said a ‘strategic decision’ was made to drop the appeal in a bid to preserve resources ahead of a potential fight against a Stage 4 expansion.

“It is difficult for community organisations to sustain long-term legal campaigns,” he said.

“Our resources were a significant factor in our decision to withdraw.”

Output was further buoyed by extra coal production at the company’s Bengella mine.

New Hope CEO Rob Bishop said the Bengella mine was producing 13.4 million tonnes per year, while New Acland had a ‘clear runway’ to hit about 5 million tonnes per year by 2027.

“Earnings are up compared to the first half of 2024, even as the coal price has declined, thanks to our continued focus on cost control and execution of our organic growth plans,” he said.

“This outcome demonstrates our low-cost operations’ greater resilience to coal price fluctuations.

“We remain focused on ramping up production at New Acland Mine and sustaining increased production at Bengalla Mine, while continuing our disciplined approach to cost control.”

The company will pay a fully franked interim dividend of 19.0 cents per ordinary share while the board has voted to approve an on-market share buyback of up to $100 million.

Originally published as New Hope Group posts 32 per cent increase in coal production, offers $100 million share buyback