The Brisbane based New Hope produced an impressive profit turnaround this week when it announced a half year earnings result of $330 million and delivered investors 30 cents a share payout, which included a 17-cent special dividend.

Morgans analyst Tom Sartor indicated there could be more to come.

“We forecast full year 2022 net cash to rise to $425 million (from $324 million in the first half). If New Hope targets around $200 million of net cash post end FY22 then this infers $225 million, or 27 cents a share, is available as a second half dividend. Clearly, there is upside potential to our forecast,” Sartor told investors.

The company also has deep pockets thanks to the record-breaking coal prices and strong performance from its Bengalla mine, but Sartor said the company and other independents were likely to keep at least $100 million in reserve through the price cycle.

“But we think NHC will retain more for acquisition firepower and flexibility and to assist in debt refinancing,” he said.

However, Sartor indicated that New Hope may be a buyer of BHP’s Queensland coal assets under the BMA joint venture.

“NHC looks in no rush to pursue acquisitions at this stage of the cycle but we understand it favours its strengths in coal and may consider related industry services and infrastructure.”

He said a catalyst for price growth was any new purchase or the approval of the controversial Acland coal mine, which he said was less likely.