New Hope Group parent company posts strong profit despite sinking coal price

New Hope Group has recorded a 28 per cent increase in the amount of coal it has produced as the first loads leave the Darling Downs, destined for domestic and overseas power producers.

The New Acland Mine has extracted coal for the first time from the Queensland Government approved Stage 3 site. Picture: New Hope Group

New Acland Mine’s parent company has posted a 28 per cent increase in the amount of coal it has produced as the first loads were shipped out of the Darling Downs.

New Hope Group CEO Rob Bishop made the announcement as part of the company’s half year results reporting.

“Consistent operational performance, delivery of our organic production growth plans, and disciplined cost control have allowed us to maintain strong margins despite coal prices retreating from record highs,” he said.

As for January 31, the company posted a net profit after tax of $251.7 million.

NHG shares will pay an interim dividend declared of $143.7 million, 17 cents per ordinary share, on May 1.

The positive financial news comes as NHG waits on the outcome of a Land Court challenge to the Queensland Government’s decision to grant the New Acland Stage Three an associated water licence.

New Hope Group CEO Rob Bishop New and New Acland Mine General Manager Dave O’Dwyer.

That challenge was brought by the Oakey Coal Action Alliance and the Environmental Defenders office.

As part of the Land Court challenge NHG has agreed to delay extracting coal from New Acland Coal Manning Vale West Pit until September 1 of this year.

It has however, started extracting coal from the Manning Vale East pit, with the first load ship to Brisbane for export in December 2023.

Mr Bishop said the company will continue to expand its workforce at New Acland.

“Despite the ongoing distraction of legal challenges to New Acland, the first coal from Stage Three was mined, railed and sold during the period,” he said.

“Continuing our track record of providing employment and other economic benefits to the region for more than two decades.”

Maps of the Stage 3 expansion of the New Acland Coal Mine. The area is green shows the new coal pits. The town of Acland is in the centre.

The company’s profits were further buoyed by its increased shareholding in Malabar Resources.

“It is an investment that also lifts our exposure to metallurgical coal and will provide attractive returns to shareholders over the coming decades,” Mr Bishop said.

“At our Bengalla Mine, our growth project is tracking ahead of schedule, and we expect to see unit costs decline as production increases in the second half of the financial year.

“During the half, New Hope acquired the West Muswellbrook Assessment Lease and progressed exploration work at our exploration lease area.

“Both to the west of our Bengalla Mine, these provide synergies to our mining and agricultural assets as well as long-term optionality.”