New Hope shares lift after strong April quarter
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The news: Shares in New Hope are trading higher after the coal miner reported a sharp lift in quarterly sales and production amid steady Chinese demand.
The numbers: New Hope said saleable coal production rose 20.7% to 2.5 million tonnes for the three months to 30 April, while coal sales were up 20.8% to 2.4 million tonnes.
As a result, underlying earnings were up 21.6% to $218.8 million for the quarter, with an average realised sales price of $179.78 per tonne, in-line with the previous quarter.
New Hope shares were up 4.5% to $4.89 in early trading on the ASX while over the last 12 months it has fallen 4.66%.
The context: The coal miner said its main Bengalla Mine in NSW achieved a 7.8% reduction in cash costs on the back of some of the highest monthly production and sales in its history. It also lifted its full-year sales guidance for the New Acland mine in Queensland to 0.8 million tonnes from 0.66 million tonnes following availability of additional short term rail capacity.
New Hope, which is majority owned by Washington H. Soul Pattinson, said despite a decrease in benchmark coal price index, its realised price has remained steady due to favourable sales mix and foreign exchange rates.
The source: ASX announcement
