Coal market downturn hits New Hope profit
PERTH (miningweekly.com) – Coal miner New Hope Corporation has reported a 67% decline in profit for the interim period to the end of January as coal prices slumped.
For the six months, net profits reached A$22.6-million, compared with the A$68.7-million reported in the previous corresponding period, with revenue down by 11.8% on the previous quarter, to A$284.9-million, despite coal sales being up to 3-million tonnes a year, from the previously sold 2.7-million tonnes a year.
“New Hope is managing the current downturn in the global coal markets with a clear focus on cost management and operational efficiencies. We have managed our total production costs by revising mine plans at New Acland and Jeebropilly and implementing productivity improvement initiatives at all of our sites,” said New Hope CEO Shane Stephan.
The company produced 2.7-million tonnes of coal during the six months under review, which was 11.3% lower than the previous corresponding period, owing to the planned closure of the New Oakleigh mine, the revision of mine plans, and the Jeebropilly mine moving to a five-day roster.
Stephan pointed out that while conditions remained challenging for all Australian coal producers, New Hope was well placed to withstand the downturn owing to its comparative low cost of production, diversified asset portfolio, and its strong balance sheet.
The company would maintain its focus on cost management and continually assess the timing of development projects, he added.
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