New Hope Corp (NHC) is a coal producer with open-cut mines at Acland on the Darling Downs, and at Rosewood near Ipswich.
NHC markets its thermal coal and approximately 65% of sales are exported to customers in the Asia-Pacific area, including Japan, Korea and also Chile. The remaining 35% is sold domestically for electricity production and to industry.
On 21 September, NHC reported a 91% slide in FY10 net profit to $183.8 million, with the result hammered by lower coal export prices, higher production costs and a higher exchange rate.
Revenue increased 6.3% to $745 million, while coal production edged up 15% to 5.9 million metric tons.
NHC forecast similar coal output for FY11 and that annual contract thermal coal prices are likely to remain steady in US$ terms.
NHC declared a final dividend of 4.5 cents, which was unchanged from a year ago.
NHC was one of the shares to buy in recent months, with the stock benefiting from rising interest in Australia’s coal sector.
However, the disappointing results announcement saw its share price slumped 3.9% today.