New Hope shares tumble on downgraded guidance
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More news: Shares in New Hope Corporation tumbled nearly 7% to $3.67 in early trading after the coal miner downgraded its full-year production guidance due to rail capacity constraints at its New Acland mine in Queensland.
The miner trimmed group guidance by 2% to the range of 10.58 million to 11.57 million tonnes, which included a 9% cut in New Acland’s physical guidance to reflect expected rail performance and availability for the remainder of the financial year.
New Hope cuts FY guidance as rail limits Acland output
The news: Coal miner New Hope Corp. has posted steady production in its third quarter and trimmed its full-year guidance due to rail capacity constraints at its New Acland mine in Queensland.
The numbers: Saleable coal production for the three months to 30 April was up 1% on quarter to 2.76 million tonnes, while coal sales were up 3% to 2.74 million tonnes. Underlying earnings for the quarter were down 27% to $155.2 million, as a result of lower prices and flat volumes, with average realised sales price of $147.50 per tonne, down from $159.1 a tonne in the previous quarter.
The context: The coal miner said its main Bengalla Mine in NSW achieved a 3% lift in saleable coal production on the back of higher yield and plant capacity. However, production at the New Acland mine in Queensland was down 4% due to availability of rail capacity and product stockpiles reaching maximum capacity.
As a result, the miner has cut New Acland’s physical guidance by 9% to reflect expected rail performance and availability for the remainder of the financial year. For the group, full-year production guidance is down 2% in the range of 10.58 million to 11.57 million tonnes.
New Hope, which is majority owned by Washington H. Soul Pattinson, said it is working to secure additional rail and haulage capacity in the West-Moreton rail corridor to manage this issue.
The source: ASX
