Coal news and updates

The news: New Hope Group halved its full-year earnings as lower sales prices and delivery delays at its Bengalla Mine hit the coal miner's report card.

The numbers: New Hope reported an unaudited full-year underlying EBITDA of $859.9 million, the third highest result in the company's history, but a 51% fall from last year's total at $1.75 billion.

EBITDA for the quarter was at $216.3 million, compared to $267.7 million a year ago.

The company said that its Bengalla Mine and New Acland Mine contributed to 9.1 million tonnes of saleable coal production and 8.7 million tonnes of coal sales for the 2024 financial year, 26% and 14% higher than FY23 respectively.

New Hope said the average thermal coal sales price for the June quarter was US$137.28 ($205.5) per tonne, an 8.7% increase from the previous quarter, but a 3.6% decrease compared to the same quarter last year.

New Hope shares dipped 0.8% to $4.98 at market open on the ASX.

The context: The coal miner said its main Bengalla Mine in NSW was impacted by logistics constraints during the June quarter. Significant increases in rail cancellations caused by protestor disruptions, track issues, labour availability and adverse weather meant deliveries by rail customers across the Hunter Valley region to the Port of Newcastle were impeded.

New Hope, which is majority owned by Washington H. Soul Pattinson, said the thermal coal market was balanced during the quarter with pricing indices remaining at robust levels. Ongoing Chinese demand continued to support pricing and provided a clearing house for thermal coal supplies, it said.

However, despite stabilised pricing levels, New Hope flagged that "volatility still exists", with minor demand or supply shocks have the propensity to move pricing indices by up to 10%. The miner said it expects the thermal coal market to remain balanced for the rest of the 2024 calendar year, with potential tightening into 2025, meaning any local or global supply disruptions could have "significant positive effects" on thermal coal prices.