New Hope Sets FY2025 Final Dividend at AUD 0.15 with DRP Price Revised to $4.01

• Final ordinary dividend of AUD 0.15 per share for FY2025
• Dividend fully franked at 100%, reflecting strong tax credits
• Dividend payable on 8 October 2025 with record date 23 September 2025
• Dividend Reinvestment Plan (DRP) price updated to AUD 4.01
• No shareholder or regulatory approvals required before payment

Dividend Update and Context

New Hope Corporation Limited (ASX – NHC), a key player in the coal mining sector, has confirmed its final ordinary dividend for the financial year ending 31 July 2025. The company announced a fully franked dividend of 15 cents per share, payable on 8 October 2025. This dividend reflects New Hope’s continued commitment to returning value to shareholders amid a challenging global commodities environment.

The dividend is fully franked, meaning shareholders will benefit from a 30% corporate tax credit, which can be particularly attractive for Australian investors seeking tax-effective income streams. The record date for entitlement to this dividend is 23 September 2025, with the ex-dividend date set a day earlier on 22 September 2025.

Dividend Reinvestment Plan Details

Alongside the dividend announcement, New Hope updated the price applicable to its Dividend Reinvestment Plan (DRP). The DRP price has been set at AUD 4.01 per share, calculated as the average volume weighted average price (VWAP) of shares traded on the ASX between 25 September and 1 October 2025. This update supersedes the previous DRP price guidance issued on 16 September 2025.

The DRP remains fully optional, with the default position for shareholders who do not elect to participate being a cash dividend payment. Importantly, the DRP shares will be newly issued and rank pari passu with existing shares, ensuring equal rights from the date of issue. There are no minimum or maximum participation limits, allowing shareholders flexibility in how they manage their dividend income.

Implications for Investors and Market

New Hope’s decision to maintain a fully franked dividend at 15 cents per share signals confidence in its underlying cash flows and balance sheet strength. For income-focused investors, this dividend offers a reliable yield with the added benefit of franking credits. The updated DRP price at $4.01 also provides a benchmark for the company’s share valuation in the near term.

Notably, no external approvals; such as shareholder or regulatory consents; are required before the dividend payment, streamlining the process and reducing uncertainty. Market participants will be watching closely how many shareholders opt into the DRP, as this will influence the company’s capital structure and potential share dilution.

Overall, New Hope’s dividend update reinforces its shareholder-friendly approach while balancing capital management in a volatile commodity market.

Bottom Line?

As New Hope finalises its FY2025 dividend, investor focus will shift to DRP uptake and its impact on share capital.

Questions in the middle?

• What level of participation will shareholders show in the updated DRP?
• How might the DRP share issuance affect New Hope’s share price post-dividend?
• Will New Hope maintain or increase dividend payouts in FY2026 amid commodity price fluctuations?