New Hope Corporation's Interim Financial Results

New Hope Corporation Limited (ASX: $NHC) has reported its interim financial results for the half-year ended 31 January 2024. The company achieved a 28% increase in saleable coal production, reaching 4.1Mt, and declared an interim dividend of $143.7 million, representing 17.0 cents per ordinary share. Despite the coal price retreating from record highs, New Hope delivered targeted organic production growth and maintained strong shareholder returns.

Executive Commentary on Interim Financial Results

Consistent operational performance, delivery of organic production growth plans, and disciplined cost control have allowed us to maintain strong margins despite coal prices retreating from record highs. Our 13.4Mpta growth project at Bengalla Mine is tracking ahead of schedule, and we expect unit costs to decline as production increases in the second half of the financial year. The acquisition of the West Muswellbrook Assessment Lease (AL19) and exploration progress at EL9431 provide synergies to our mining and agricultural assets as well as long-term optionality. Despite the ongoing legal challenges to New Acland, the first coal from Stage 3 was successfully mined, railed, and sold during the period, demonstrating our commitment to providing employment and economic benefits to the region. Our recent increased shareholding in Malabar Resources and investments in low-cost coal assets with long-life approvals will favorably position New Hope to take advantage of the demand for high-quality coal expected through the energy transition.

Summary of Interim Financial Results and Outlook

New Hope Corporation Limited's interim financial results for the half-year ended 31 January 2024 showcased a 28% increase in saleable coal production, reaching 4.1Mt, and an interim dividend declaration of $143.7 million, representing 17.0 cents per ordinary share. Despite the retreat of coal prices from record highs, the company demonstrated resilience and maintained strong margins through consistent operational performance and disciplined cost control. The acquisition of AL19 and exploration progress at EL9431 near Bengalla Mine provide longer-term optionality and synergies to the company's mining and agricultural assets. New Hope's focus on low-cost coal assets and targeted organic growth positions the company favorably to capitalize on the demand for high-quality coal expected through the energy transition. The company's ambitions to continue delivering organic production growth and maintaining strong shareholder returns reflect its confidence in its growth pipeline and the potential for attractive returns to shareholders over the coming decades.