New Hope Posts 18% Rise in Saleable Coal and $765.8M EBITDA in FY25

Operational Highlights Amidst Challenging Conditions

New Hope Corporation’s latest quarterly report for the period ending 31 July 2025 reveals a resilient performance in a year marked by significant weather disruptions and logistical challenges. The company’s group saleable coal production rose 18.1% to 10.7 million tonnes for the financial year, comfortably within its guidance range. This growth was largely driven by a strong operational showing at the New Acland Mine in Queensland, which more than doubled its production compared to the previous year.

However, the company’s flagship Bengalla Mine in New South Wales faced considerable headwinds. Severe flooding in the Newcastle region disrupted vessel movements and rail logistics, causing shipping queues and rail cancellations that constrained coal sales and production. Despite these setbacks, Bengalla maintained disciplined cost control, achieving an FOB cash cost of $76.5 per sales tonne for FY25, well within its guidance and slightly improved from the prior year.

Financial Performance and Cash Position

New Hope reported an underlying EBITDA of $765.8 million for the full year, reflecting solid profitability despite a 39.9% drop in quarterly EBITDA to $93.4 million, primarily due to the logistics bottlenecks at Bengalla. The company generated $570.8 million in cash from operating activities over the year and ended the quarter with a robust available cash balance of $707.3 million, including $375.4 million in liquid fixed income investments yielding approximately 7% annually.

Capital management initiatives continued with an on-market share buy-back program, having repurchased 2.5 million shares at an average price below the prevailing market rate. This move underscores management’s confidence in the company’s valuation and commitment to returning capital to shareholders.

Safety and Strategic Investments

Safety remains a priority, with the twelve-month moving average Total Recordable Injury Frequency Rate (TRIFR) improving to 3.22, down from 3.65 the previous quarter. The All-Injury Frequency Rate (AIFR) also showed a modest decline on a twelve-month basis, despite a slight uptick in the most recent quarter.

On the strategic front, New Hope’s 22.98% stake in Malabar Resources continues to advance, with the Maxwell Underground Mine ramping up production and development activities. The premium pricing achieved for Maxwell’s high-quality coal sold into Japan highlights the value of this investment.

Looking Ahead

While New Acland Mine’s improved rail logistics and increased stockpile capacity bode well for sustained production growth, Bengalla’s recovery will depend on resolving ongoing weather-related and supply chain constraints. The company is actively exploring additional logistics capacity to mitigate these issues. Furthermore, New Hope is monitoring developments around Bowen Coking Coal’s voluntary administration, which could have financial implications.

Overall, New Hope’s ability to deliver solid production and financial results despite external pressures reflects operational resilience and prudent management, positioning it well as it moves into the new financial year.