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Coal producers achieve major milestone

Bowen Coking Coal

New Hope Group’s July 2023 quarterly report contained healthy underlying earnings before interest, taxes, depreciation, and amortisation (EBITDA) totalling $1.75 billion.

Production and sale of inaugural coal is underway at Malabar’s Maxwell mine, marking the first phase of its bord and pillar operation. This mine began operating south of Muswellbrook in New South Wales’ Upper Hunter region in May 2022. It is anticipated to create 430 full-time positions. This translates to an injection of $86 million in annual salaries.

Moreover, projections indicate the mine will contribute a staggering $1B to $1.2B in mining royalties to local residents throughout its 26-year operating lifespan.

Recent Bengalla Mining Company coal sales figures totalled 2.11 million tonnes (Mt), aligning with the preceding quarter’s 2.15Mt and 7.6Mt for fiscal 2023.

The Bengalla mine, which received its development consent back in 1996, continues to meet global market demand for thermal coal. The mine’s workforce operate on a rotating shift, ensuring round-the-clock production.

There has been a marked surge in the average realised sales price, which was 281.8 at the time of publication. Additionally, the ongoing share buy-back initiative led to the repurchase of 37.1M ordinary shares, amounting to $192.4M, since inception on 3 November 2022.

The New Acland mine, located in the Darling Downs region, embarked on its third phase of mining operations on May 1, with 1.3Mbcm of prime waste successfully relocated. This is noteworthy given New Hope’s 13-year-long advocacy for advancing New Acland’s third stage.

Engaging with the Oakey community, the project is at least 10km from the central business district. It will still be subject to stringent scientific and environmental evaluations by the State Government, adhering to environmental impact statement protocols.

In financial terms, the closing cash and equivalents are reported at $121.2M, culminating in a record $1.5B for fiscal 2023.

Key findings:

  • Impressive EBITDA: New Hope Group reported a record underlying EBITDA of $1B to $1.2B in mining royalties over 26 years
  • Consistent coal supply: The Bengalla mine has consistently supplied thermal coal to international markets since 1996.
  • Sales price surge: A notable increase in the average realised sales price to 281.8.

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