New Hope coal operations remain profitable

New Hope Corporation has delivered strong operational performance in FY2014; the company remains focused on low-cost production to manage current market conditions.

Highlights

• Net profit after tax of US$ 58.4 million for the year ended 31 July 2014, a 21.2% decrease year-on-year.
• Financial result impacted by lower export coal prices and the high Australian dollar.
• Coal mining and logistics operations remain profitable.
• Focus on low cost production positions New Hope strongly for an improvement in market conditions in the medium term.
• New Acland Coal Mine Stage 3 approvals continue to advance positively.

Comments

Commenting on the financial results, CEO Shane Stephan, said: “The cyclical downturn in market conditions for Australian coal producers continued throughout FY2014. Significant falls in export coal prices, combined with a stubbornly high AU$:US$ exchange rate, meant New Hope’s focus remained on the tight control of costs, whilst also steadily advancing project approvals, to position the Group for growth when market conditions improve.”

Mining operations

New Hope produced 5.6 million t of clean coal during FY2014, lower than the 5.8 million t produced in FY2013, due to the planned cessation of mining at New Oakleigh following the recovery of all economic coal reserves.

Export sales for the year were 6.0 million, which include trade coal sales of 0.3 million t, on a level with the total sales figure for FY2013.

The management of on-site costs continued to be a focus for New Hope in FY2014, and the Group remains one of the lower cost coal producers in Australia. A range of initiatives, including changes to the operational structure, a reduction in work hours and scheduled operational shut downs were successful in delivering further efficiencies.

Queensland Bulk Handling

Queensland Bulk Handling (QBH), New Hope’s 100% owned multi-user coal terminal at the Port of Brisbane, exported 7.86 million t of coal on 100 vessels during FY2014. This was 0.9 million t lower than last year, mainly due to the closure of Peabody Energy’s Wilkie Creek mine in late 2013 and the resulting reduction in throughput.

Adapted from press release by Katie Woodward

Read the article online at: https://www.worldcoal.com/mining/26092014/new-hope-fy2014-results-1360/