Coal prices drive New Hope’s annual profit

NEW Hope Corp booked a record annual profit in 2017/18, driven by higher coal prices.

The New Acland miner reported a six per cent rise in net profit to $149.5 million. Profit before tax and non-regular items, however, jumped 96 per cent to a record $361 million. The full year dividend totalled 14 cents, fully franked, up 40 per cent on the previous financial year.

The company told shareholders at yesterday’s annual general meeting it was well positioned to meet the growing energy demands of its Asian customers.

It said its 2019 financial year targets included obtaining New Acland stage three approvals and completing the acquisition of a further interest in the Bengalla joint venture from Wesfarmers.

In November last year the company purchased 90% of the north Queensland Burton Coal Mine’s four mining tenements and infrastructure from Peabody. Drilling work was undertaken on the tenements and the company is now seeking infrastructure access on appropriate terms.

New Acland said significant positive progress was made during the year in achieving the long awaited New Acland stage three approvals.

Firstly in May 2018, the Supreme Court judicial review of the initial Land Court recommendation found grounds for review and ordered the original decision be set aside and the matter to be referred back to the Land Court for further consideration.

The Supreme Court decision is being appealed by the Oakey Coal Action Alliance Inc. and this appeal is scheduled to be heard in February, 2019.

Most recently, New Hope said it was pleased to advise that the Queensland Land Court handed down a positive recommendation in respect of the New Acland Mine stage three mining lease and environmental authority amendment applications.

In August, New Hope announced that it had reached a commitment with Wesfarmers to buy a further 40% interest in the Bengalla joint venture for $860 million.

This transaction was continuing through its pre-emptive rights process and should be completed about the end of the calendar year.