New Hope starts early Acland works as cash pours in
New Hope has revealed it has begun work on a restart plan for its controversial Acland coal mine after it announced unaudited cash earnings of $1.5 billion for the financial year.
New Hope has waited more than a decade for approval of the Acland expansion
The company’s bumper year followed soaring prices for thermal coal. The benchmark Newcastle coal price was $US404 for the final quarter during which New Hope generated an underlying EBITDA of $645 million.
The company now had cash and equivalents of $815 million and its forward sales book “remains heavily sold in the coming 12 months”.
New Hope’s Acland expansion project received its environmental approvals earlier this year after more than a decade of delays, but it is still waiting for a mining lease and water licence.
“While the company awaits approvals outcomes, rehabilitation of stage 2 mining areas continues. The company is working on a restart plan to minimize the time to first coal to assist in filling unprecedented coal demand,” it said in a quarterly update to the ASX.
The company also said its Chuwar mine, near Ipswich, had been rehabilitated and its mining lease and environmental authority surrendered to the Queensland Government. It was the first open cut coal mine in Queensland to be rehabilitated.
“Demand for high quality, low emission thermal coal remained strong and is expected ti remain supported in the short term with the impending ban on Russian coal trade coning into effect in August,” the company said.
“A warmer than expected northern hemisphere summer increased coal burns with customers now focussed on replenishment of stock before the onset of winter.
“Australian domestic coal demand, particularly in NSW, continues to be very strong and the company has sold further coal into the domestic market in addition to existing contracted domestic supply.”
