New Hope Corporation's H1 FY24 performance overview

New Hope Corporation Limited (ASX: $NHC) reported an underlying EBITDA of A$179.9 million for the quarter, marking a 26.5% decrease from the previous quarter. The H1 FY24 underlying EBITDA of A$424.8 million reflects a significant 59.1% decrease compared to H1 FY23's A$1,038.5 million. The company also produced 4.1Mt of saleable coal for H1 FY24, indicating a 29.4% increase from H1 FY23. Additionally, the average realised sales price for the quarter was A$180.64/t, down from A$211.40/t in the previous quarter.

Executive commentary on company performance and strategic initiatives

The All-Injury Frequency Rate decreased by 10.3% from the previous quarter, reflecting the company's commitment to safety. The decrease in the gC NEWC index average price is attributed to soft demand resulting from a mild winter in the Northern Hemisphere. New Hope Corporation remains focused on optimizing production and sales based on changing pricing indices. The company's strategic investments in Malabar Resources and the acquisition of West Muswellbrook ('AL19') tenement align with its long-term strategy of investing in low-cost coal assets with long life approvals and providing increased exposure to metallurgical coal mined by low-impact, underground methods.

Summary of New Hope Corporation's outlook and strategic direction

New Hope Corporation's H1 FY24 performance reflects a decrease in underlying EBITDA, primarily due to realised pricing. The company remains committed to increasing equity interest in Malabar Resources and has completed the acquisition of West Muswellbrook ('AL19') tenement, aiming to leverage synergies with its existing assets. The company's focus on safety and risk discussions, along with its strategic investments, underpin its efforts to navigate market challenges and pursue long-term growth opportunities. With available cash of A$480.4 million, New Hope Corporation is well-positioned to execute its corporate strategy and capitalize on potential exploration activities and future investments.