New Hope Reports 33% Surge in Saleable Coal Production for H1 FY25
New Hope Group delivered a robust quarterly performance with a 21.8% rise in underlying EBITDA and a 33% jump in saleable coal production for the first half of FY25, underpinned by operational efficiencies and strategic investments.
- Underlying EBITDA up 21.8% to $517.3 million in H1 FY25
- Saleable coal production rises 32.9% year-on-year to 5.4Mt
- Bengalla Mine reduces FOB cash costs by 15.9% to $68.3/t
- Safety metrics improve with TRIFR down to 4.40
- Equity stake in Malabar Resources increased to 22.97%
Strong Financial and Operational Momentum
New Hope Group has reported a solid quarterly update for the period ending 31 January 2025, showcasing significant progress across its coal production, safety performance, and strategic investments. The company’s underlying EBITDA surged 21.8% to $517.3 million for the first half of the 2025 financial year, reflecting both higher volumes and improved cost management.
Saleable coal production reached 2.7 million tonnes for the quarter, maintaining steady output levels, while the first half of FY25 saw a 32.9% increase to 5.4 million tonnes compared to the previous corresponding period. This growth is a direct result of New Hope’s ongoing organic expansion initiatives, particularly at its flagship Bengalla and New Acland mines.
Operational Highlights and Cost Efficiencies
Bengalla Mine, where New Hope holds an 80% interest, experienced a slight production dip this quarter due to a planned 14-day Coal Handling and Preparation Plant (CHPP) shutdown and wet weather impacts. Despite this, the mine achieved a notable 15.9% reduction in FOB cash costs to $68.3 per sales tonne for the half-year, positioning it well within guidance ranges.
Meanwhile, New Acland Mine in Queensland continues its ramp-up, with saleable coal production increasing by 52% quarter-on-quarter to 0.7 million tonnes. The mine is on track to reach its target of approximately 5 million tonnes per annum by early 2026, supported by the recent resolution of legal challenges concerning water licensing, which clears the path for expansion into the Manning Vale West mining area.
Safety and Strategic Investments
Safety remains a priority, with the company reporting a 12-month moving average Total Recordable Injury Frequency Rate (TRIFR) improvement to 4.40, down from 5.20 last quarter. This reflects New Hope’s sustained focus on reducing workplace incidents and enhancing employee wellbeing.
On the investment front, New Hope increased its equity stake in Malabar Resources Limited from 19.97% to 22.97%, acquiring shares worth approximately $31.6 million. Malabar’s Maxwell Underground Mine is progressing well, with recent milestones including the commencement of longwall coal cutting and premium pricing achieved for its high-quality product in the Japanese market.
Market Conditions and Outlook
The thermal coal market remains challenging, with oversupply and subdued demand exerting downward pressure on prices. New Hope’s average realised sales price for the quarter was $159.1 per tonne, lower than previous periods, reflecting these market dynamics. However, elevated gas prices globally could provide upside potential if supply disruptions occur.
Logistics constraints, particularly rail system outages linked to the Cross River Rail project in Brisbane, pose short- to medium-term challenges for coal transport. New Hope is actively managing these risks by securing additional port capacity and monitoring infrastructure developments closely.
Looking ahead, the company maintains its FY25 guidance, targeting increased production and lower unit costs, supported by ongoing organic growth and operational improvements.
Bottom Line?
New Hope’s strong half-year performance and strategic positioning set the stage for navigating market headwinds and capitalising on growth opportunities in FY25.
Questions in the middle?
- How will ongoing rail infrastructure projects impact New Hope’s logistics and delivery schedules?
- What are the implications of the increased stake in Malabar Resources for New Hope’s long-term coal portfolio?
- How might evolving thermal coal market dynamics affect pricing and profitability in the second half of FY25?
