New Hope Corporation reported a 4.8% rise in coal production and an 8.2% increase in sales for the January quarter, maintaining steady earnings and reducing capital expenditure guidance amid improving logistics and operational resilience.
- Group ROM coal production up 4.8% to 4.1Mt
- Coal sales rise 8.2% to 2.9Mt with improved logistics
- Underlying EBITDA steady at $106.9 million for the quarter
- Bengalla Mine sustaining capital guidance cut to $100-$130 million
- Malabar Resources advances Maxwell Underground Mine with new debt facility
Production and Sales Momentum
New Hope Corporation has delivered a solid operational performance in the quarter ended January 2026, with group Run of Mine (ROM) coal production increasing by 4.8% to 4.1 million tonnes. This uplift was driven primarily by strong mining conditions at the Bengalla Mine, which rebounded following significant weather disruptions in the previous quarter. Coal sales also rose sharply by 8.2% to 2.9 million tonnes, reflecting improved logistics and rail availability across both the Bengalla and New Acland mines.
The average realised coal price nudged higher to A$139.0 per tonne, supported by modest gains in benchmark indices despite a stronger Australian dollar. Underlying EBITDA remained stable at $106.9 million for the quarter, signalling steady earnings amid a challenging pricing environment.
Operational Highlights and Capital Discipline
Bengalla Mine, where New Hope holds an 80% interest, saw a 4.7% increase in ROM coal production to 2.2 million tonnes, despite a slight rise in the strip ratio. The mine’s coal handling plant completed a planned seven-day shutdown for maintenance but returned to near-record throughput levels in January. Importantly, sustaining capital expenditure guidance for Bengalla has been trimmed by up to 21%, now forecast between $100 million and $130 million for FY26, reflecting a disciplined approach to capital allocation amid current market conditions.
Meanwhile, New Acland Mine boosted saleable coal production by 24.5% to 0.9 million tonnes and coal sales by 20.4%, benefiting from higher coal yields and improved rail logistics. The mine continues to prepare for operational expansion, including road realignment works to access new pits scheduled for later this year.
Strategic Investment Progress and Financial Position
New Hope’s 25.97% equity investment in Malabar Resources is progressing well, with the Maxwell Underground Mine advancing its Bord and Pillar operation and longwall development. Malabar secured a US$330 million senior debt facility to refinance existing obligations and support ramp-up activities. The high-quality coal produced continues to attract a premium price, particularly in the Japanese market.
Financially, New Hope remains robust with an available cash balance of $616.8 million, including cash and fixed income investments. The company is actively managing capital through an ongoing $100 million on-market share buy-back and is monitoring financing options ahead of the 2029 Convertible Notes maturity.
Safety and Risk Management
Safety metrics showed an increase in injury frequency rates during the quarter, with the All-Injury Frequency Rate rising to 35.20. The company continues to monitor these trends closely as it balances operational ramp-up with workforce wellbeing.
Additionally, New Hope is nearing resolution of a financial guarantee liability related to its divestment of assets to Bowen Coking Coal. A proposed Deed of Settlement would extinguish this liability for $12 million, pending creditor approval, potentially removing a notable contingent risk from the balance sheet.
Bottom Line?
New Hope’s operational resilience and capital prudence set the stage for a stronger second half, but safety and market volatility remain key watchpoints.
Questions in the middle?
- Will Bengalla Mine sustain its targeted 13.4Mtpa production rate in the second half of FY26?
- How will safety performance trends impact operational continuity and costs going forward?
- What are the implications of the Bowen Coking Coal settlement for New Hope’s financial risk profile?