Miner New Hope swings to profit
New Hope has rebounded from a loss with a $140.6m annual profit on the back of stronger sales and improved coal prices.
Mining company New Hope Corporation swung to an annual profit on the back of stronger sales and sharply improved coal prices.
New Hope (NHC) today reported a net profit of $140.6 million for the year through July, rebounding from a year-earlier loss of $53.7 million. Revenue for the year climbed by 59 per cent to $844.0 million from $531.5 million.
The miner said it planned to pay a final dividend of 6 cents a share, a jump on the 2 cents paid last year, for a full-year payout of 10 cents.
In late August, New Hope recorded an 18 per cent rise in raw coal production for the year to 14.7 million tonnes and a 23 per cent jump in total coal sold to 8.5 million tonnes as it benefited from the acquisition of a 40 per cent stake in the Bengalla joint venture in New South Wales state. It also lifted barrels of oil sold over the year by 61 per cent on the back of acquisitions in the last two years.
New Hope in March 2016 closed a $US616.7 million deal for Rio Tinto’s interest in the Bengalla thermal coal mine. Last month, New Hope’s majority-owned Lenton joint venture said it was buying Peabody Energy Corp’s Burton coal mine and infrastructure near its own New Lenton project for $14 million.
However, the miner was dealt a blow in May when a court in eastern Queensland state recommended against granting mining leases and environmental authority for an expansion of its Acland mine, although the company has sought a judicial review of the decision and said it remains committed to the project.
Dow Jones Newswires
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