New Hope Corporation - 2024 Coal Resources and Reserves Update - 17 September 2024
NHC (NHC) Share Update September 2024 Monday 16th
New Hope Corporation Reports Significant Increase in Coal Resources
New Hope Corporation Limited (ASX: NHC) has released an updated report on its coal resources and reserves as of 31 May 2024, showcasing a significant increase in total coal resources.
Instant Summary:
- Total coal resources increased to 2,426 million tonnes from 1,928 million tonnes in 2023.
- Acquisition of West Muswellbrook adds 513 million tonnes to resources.
- Updated geological data for Bengalla Mine.
- New Acland resources adjusted for a 2 million tonne depletion.
- All other resource estimates remain unchanged from 2023.
Coal Resources Update
New Hope Corporation has reported a substantial increase in its coal resources, rising to 2,426 million tonnes as of 31 May 2024, up from 1,928 million tonnes in 2023. This increase is primarily driven by the acquisition of an Assessment Lease (AL19) at West Muswellbrook, which added 513 million tonnes to the company's resources.
The updated resources for the Bengalla Mine are based on an updated geological model and the current extents of mining. The New Acland Mine's resources have been adjusted to account for a 2 million tonne depletion due to mining activities between reporting periods. The resources for Elimatta, Collingwood, Taroom, and Woori remain unchanged from the 2023 estimates.
Coal Reserves Update
Alongside the increase in resources, New Hope Corporation has also updated its coal reserves. The total recoverable reserves now stand at 837 million tonnes, a slight decrease from 852 million tonnes in 2023. Marketable reserves are reported at 521 million tonnes.
The New Acland Mine holds 364 million tonnes of recoverable reserves, while the Bengalla Mine has 154 million tonnes. Elimatta and Taroom also contribute significantly to the company's total reserves.
Competent Person Declarations
The resource estimates for all projects, excluding West Muswellbrook, were compiled by Ms. Carrie Schuler, a Competent Person and a Member of The Australasian Institute of Mining and Metallurgy. The West Muswellbrook estimates were compiled by Mr. Peter Handley, also a Competent Person and a Member of The Australasian Institute of Mining and Metallurgy.
The coal reserves statement is based on information compiled by Mr. Brett Domrow, a Competent Person and a full-time employee of New Hope Corporation. All declarations comply with the JORC Code (2012).
The significant increase in coal resources, particularly from the West Muswellbrook acquisition, is a positive development for New Hope Corporation. This expansion may boost investor confidence and positively impact the company's stock price. However, the slight decrease in total recoverable reserves could temper some of the enthusiasm.
Investor Reaction:
Analysts are likely to view the substantial increase in coal resources as a strong positive for New Hope Corporation. The acquisition of West Muswellbrook and the updated geological data for Bengalla Mine are particularly noteworthy. However, the slight decrease in recoverable reserves may prompt some cautious optimism among investors.
Conclusion:
Investors should closely monitor New Hope Corporation's ongoing development and strategic initiatives following this significant update. The increase in coal resources positions the company well for future growth, but careful attention to reserve management will be crucial.