New Hope Boosts Coal Output 18% Amid Cost Cuts, Declares 15c Dividend
New Hope Corporation reported an 18.1% rise in coal production for FY25 alongside an 8.4% reduction in unit costs, declaring a fully franked 15-cent dividend and launching a Dividend Reinvestment Plan.
- 18.1% increase in saleable coal production to 10.7 million tonnes
- 8.4% reduction in free on board cash costs to $82.4 per tonne
- Underlying EBITDA declined to $765.8 million amid lower coal prices
- Fully franked final dividend of 15.0 cents per share declared
- Dividend Reinvestment Plan introduced for FY25 final dividend
Strong Production Growth Despite Challenges
New Hope Corporation has delivered a robust operational performance in the 2025 financial year, with saleable coal production rising 18.1% to 10.7 million tonnes. This growth was driven by steady output from the Bengalla Mine and ongoing ramp-up at the New Acland Mine’s Stage 3 expansion, despite facing significant weather disruptions and logistical bottlenecks in the Hunter Valley region.
Cost Discipline Supports Margins
The company successfully reduced its free on board cash costs by 8.4% to $82.4 per tonne, reflecting disciplined cost control and operational efficiencies. This improvement helped offset the impact of a softer coal price environment, although underlying EBITDA fell to $765.8 million from $859.9 million the previous year. Net profit after tax also declined to $439.4 million, signaling margin pressures despite higher volumes.
Shareholder Returns and Strategic Moves
In recognition of its resilient performance, New Hope declared a fully franked final dividend of 15.0 cents per share, payable in early October. The company also introduced a Dividend Reinvestment Plan (DRP), offering shareholders the option to reinvest dividends into additional shares. This move aligns with New Hope’s strategy to provide flexible shareholder value options amid market uncertainties.
Expanding Metallurgical Coal Exposure
New Hope increased its equity stake in Malabar Resources Limited to 22.98%, enhancing its exposure to metallurgical coal assets with long-life approvals. This strategic investment complements the company’s focus on low-cost, long-term coal operations, positioning it to benefit from diversified coal markets.
Outlook and Market Positioning
CEO Rob Bishop emphasized the company’s resilience and commitment to organic growth, highlighting that despite external challenges, New Hope’s assets continue to generate solid margins. The conclusion of legal challenges related to the Oakey Coal Action Alliance has cleared the way for New Acland to reach targeted production levels, underpinning future growth prospects.
Bottom Line?
New Hope’s FY25 results underscore operational resilience and strategic positioning, but market headwinds and margin pressures remain key watchpoints.
Questions in the middle?
- How will New Hope navigate ongoing coal price volatility in FY26?
- What level of shareholder uptake will the new Dividend Reinvestment Plan achieve?
- How might increased equity in Malabar Resources impact New Hope’s future earnings mix?
