New Hope Corporation Limited - 2024 Full Year Results
NHC (NHC) Share Update September 2024 Monday 16th
New Hope Corporation Reports Strong 2024 Full Year Results
New Hope Corporation Limited (ASX: NHC) has released its full year results for the 2024 financial year, showcasing strong operational performance and significant growth milestones.
Instant Summary:
- 9.1Mt of saleable coal produced, a 26.4% increase from 2023.
- Underlying EBITDA of $859.9 million, the third highest in company history.
- Net profit after tax of $475.9 million.
- Declared fully franked final dividend of 22.0 cents per ordinary share.
- Raised $300 million through senior unsecured convertible notes.
- Increased equity interest in Malabar Resources Limited to 19.97%.
Operational Performance
New Hope Corporation Limited has reported a strong operational performance for the 2024 financial year, driven by significant milestones at its key mining sites. The Bengalla Mine achieved its targeted 13.4Mtpa ROM run rate and headline washery input metric ahead of schedule. Additionally, the New Acland Mine restarted operations, with the first coal mined, railed, and sold, marking a significant milestone for the company.
Financial Results
The company produced 9.1Mt of saleable coal, a 26.4% increase from the previous year. This was supported by strong operational performance at Bengalla Mine and the successful restart of operations at New Acland Mine. The underlying EBITDA for the year was $859.9 million, the third highest result in the company's history, although it was lower than the $1,746.6 million reported in 2023.
Net profit after tax was $475.9 million, compared to $1,087.4 million in 2023. The company successfully raised $300 million through senior unsecured convertible notes, providing increased financial flexibility to support its strategy. Net cash flow from operating activities was $562.0 million, and available cash stood at $824.5 million post proceeds from the notes.
Dividends and Growth
The Board declared a fully franked final dividend of 22.0 cents per ordinary share, bringing the total dividends for the 2024 financial year to 39.0 cents per ordinary share. The company also increased its equity interest in Malabar Resources Limited from 15.0% to 19.97%, providing exposure to high-quality metallurgical coal and aligning with its strategy of investing in low-cost coal assets with long-life approvals.
Future Prospects
The acquisition of the West Muswellbrook tenement and the start of exploration drilling at EL9431, both located to the west of Bengalla Mine, provide longer-term growth options as the Bengalla open-cut pit progresses in that direction. The successful $300 million senior unsecured convertible notes raise, completed with a highly competitive rate of finance in July 2024, further supports the company's strategy.
The strong operational performance and significant growth milestones reported by New Hope Corporation are likely to have a positive impact on the company's stock. The increase in coal production, successful restart of operations at New Acland Mine, and the robust thermal coal price environment contributed to the third highest earnings result in the company's history. The declaration of a fully franked final dividend and the increased equity interest in Malabar Resources Limited further enhance the company's growth prospects.
Investor Reaction:
Analysts are likely to react positively to New Hope Corporation's strong operational performance and growth milestones. The significant increase in coal production and the successful restart of operations at New Acland Mine are expected to boost investor confidence. The declaration of a fully franked final dividend and the increased equity interest in Malabar Resources Limited are also likely to be well-received by investors.
Conclusion:
New Hope Corporation's strong operational performance and significant growth milestones for the 2024 financial year highlight the company's successful execution of its organic growth plans. Investors should consider the positive impact of these achievements on the company's stock and its future growth prospects. Stay informed on New Hope Corporation and other stock market news by subscribing to our newsletter.