PERTH (miningweekly.com) – Coal miner New Hope Corporation has reported a solid financial year for the year ended July, with net profits after tax and underlying earnings before interest, taxes, depreciation and amortisation (Ebitda) both growing.

Despite saleable coal production in the 2023 financial year declining to 7.2-million tonnes, from the 7.9-million tonnes achieved in the 2022 financial year, net profits after tax increased from A$983-million to A$1.08-billion as strong demand and global supply chain constraints pushed thermal coal prices to record levels in the first half of the financial year.

Underlying Ebitda for the same period increased from A$1.57-billion to A$1.74-billion.

“Exceptional performance across the business throughout FY23 enabled our team to capitalise on the market conditions, finishing the year with A$730.7-million cash at bank, no debt following the convertible note repurchase and a net asset position of A$2.525-billion,” said New Hope CEO Rob Bishop.

“This outstanding result has enabled the company to reward shareholders with a final fully franked dividend of 21c per ordinary share, and a special fully franked dividend of 9c per ordinary share.”

“Our flagship operation, the Bengalla mine, delivered 9-million tonnes of saleable production in the 2023 financial year, a reduction of 3% compared to 2022 and a commendable effort in light of rainfall, flooding and logistics disruptions.

”During the year, all necessary approvals from the Queensland government for the New Acland mine Stage 3 were secured, including an Environmental Authority, Mining Leases and an Associated Water Licence.

“We are proud to be welcoming team members back to New Acland. Stage 3 operations commenced at the mine’s Manning Vale East Pit in May 2023, and the coal handling and processing plant washed first coal earlier this month,” he added.

The Stage 3 expansion project will increase the mine’s yearly output from 4.8-million tonnes to 7.5-million tonnes and will extend the operation’s life by 12 years.

At the peak of construction, there will be approximately 600 local workers at New Acland mine. Throughout the life of the project, the permanent workforce will be approximately 400 full-time roles, made up of Darling Downs locals.

First coal sales from the Stage 3 project are targeted in the 2024 financial year, and the project will ramp up to full production by the 2027 financial year.

New Hope is expected to spend A$459-million on the project over the next three financial years, which will be funded by operational cash flows.