New Hope Surpasses FY26 Coal Targets Amid Rising Prices and Operational Resilience

Robust Production and Sales Outperform Guidance

New Hope Corporation (ASX:NHC) closed FY26 with saleable coal production of 11.5 million tonnes, exceeding the high end of its guidance range by nearly 1.3 million tonnes. Coal sales similarly outpaced forecasts, reaching 11.8 million tonnes, an 11.8% increase on the prior year. This strong operational delivery was anchored by the Bengalla Mine, which not only met but exceeded its 13.4 million tonnes per annum Run of Mine (ROM) target on a 100% basis during the quarter, producing 3.0 million tonnes of ROM coal – a 16.3% jump from the prior quarter.

The New Acland Mine also contributed to the robust performance, with ROM production of 6.9 million tonnes for the year, near the top of its guidance range, and coal sales surging 37% year-on-year to 3.6 million tonnes despite logistical headwinds.

Cost Discipline Amid Inflationary Pressures

Bengalla Mine’s FOB cash cost, excluding royalties, was $81.3 per sales tonne for FY26, hitting the lower end of guidance despite an inflationary environment. The mine’s ability to absorb increased waste movement and maintain cost outcomes within guidance underscores disciplined operational management. Sustaining capital expenditure was $84 million for the year, significantly below the revised guidance range of $100 million to $130 million, reflecting a focus on capital optimisation and timing of infrastructure projects.

Coal Pricing Strengthened by Geopolitical and Market Dynamics

The group’s average realised sales price rose 10.7% quarter-over-quarter to A$155.8 per tonne, driven by gains in the gC NEWC 6000 and API-5 indices. Global coal markets benefited from ongoing Middle East geopolitical tensions, LNG supply concerns, and seasonal demand spikes in the Northern Hemisphere. China’s mine accident and subsequent safety inspections tightened supply, while Indonesia’s export centralisation policy further constrained volumes. These factors collectively supported a firmer pricing environment.

Malabar Resources Limited, in which New Hope holds a 25.97% equity stake, marked a key milestone with the official opening of the Maxwell Underground Mine and ramped up production, contributing to the group’s broader strategic portfolio.

Safety Metrics Reflect Mixed Outcomes

Safety remains a critical focus, with the quarter seeing an uptick in high potential events and hazards, with the High Potential Event Frequency Rate rising to 4.65 from 1.21 in the previous quarter. However, the All-Injury Frequency Rate (AIFR) improved to 27.88 from 35.22, and the Total Recordable Injury Frequency Rate (TRIFR) decreased to 3.89 from 4.43, indicating some positive trends amid challenges. The group has intensified its critical risk management efforts, including safety pauses and frontline engagement, in response to these dynamics.

Logistics and Operational Challenges Addressed

While Bengalla Mine maintained solid logistics performance with rail haulage flexibility mitigating supply chain disruptions, New Acland Mine faced rail constraints due to industrial action and infrastructure outages. The company is actively engaging with Queensland Rail to improve reliability. Despite these challenges, New Acland’s coal sales exceeded guidance, highlighting effective operational focus.

Strong Financial Position and Strategic Outlook

New Hope ended the period with available cash of $778.5 million, including $484.8 million in cash and equivalents and $293.7 million in fixed income investments. The company also revised terms on its senior convertible notes, employing capped call transactions to hedge dilution risk. Exploration efforts continue, particularly at Bengalla’s EL9431 license, with an updated Coal Resources and Reserves Statement due in mid-September.