New Hope (NHC) Q2 2025 TU earnings summary

Executive summary

• Achieved a 15% reduction in 12-month moving average TRIFR, reflecting improved safety performance; AIFR also declined.

• Group ROM coal production rose 5% sequentially to 4.2 million tons; first half FY25 saleable coal production reached 5.4Mt, up 32.9% year-over-year.

• OCAA withdrew its legal challenge, ending an 18-year approval process for New Acland Stage 3, providing operational certainty.

• Increased equity interest in Malabar Resources to just under 23%.

Financial highlights

• Underlying EBITDA for the quarter was AUD 213 million, with first half underlying EBITDA reaching AUD 517 million, up 22% year-over-year.

• Cash flows from operations totaled AUD 317 million for the half, a significant year-over-year improvement.

• Average realized price was AUD 176/tonne for the half; Bengalla's FOB cash cost was AUD 68/tonne, a 16% reduction.

• Available cash balance as of 31 January 2025 was AUD 805.1 million, including fixed income investments.

Outlook and guidance

• Guidance for FY25 remains unchanged, targeting 10.8–11.9Mt saleable coal production and 10.7–11.8Mt coal sales, both up over 25% from FY24.

• Production base expected to increase, with a target of 5 million tonnes per annum by FY 2027 as Manning Vale West comes online.

• Bengalla Mine FY25 FOB cash cost guidance (ex-royalty) is $71–$79 per sales tonne.