PERTH (miningweekly.com) – Coal miner New Hope Group has reported a 36% increase in revenue for the first half of 2018, compared with the previous corresponding period.
The ASX-listed miner on Tuesday reported revenues of A$509.3-million for the six months to January, compared with the A$374.6-million reported in the previous corresponding period, as sales volumes and thermal coal prices increased.
Profit after tax for the same period increased by 111%, to A$115.5-million, while earnings a share were also up 111% to A$13.9 a share. Earnings before interest, taxes, depreciation and amortization were also up by 63% on the previous corresponding period, to A$211.7-million.
“This strong operating result is a culmination of several factors, including a 10% increase in sales, improved spot coal prices and continued focus on cost management,” said New Hope MD Shane Stephan.
“Our strategic acquisition of 40% of the Bengalla coal mine continues to deliver with a net profit before tax of A$83.8-million for the period. Queensland mining operations contributed a net profit before tax of A$81.9-million and ensure a record first half result for the company and shareholders.”
Stephan told shareholders that the company was well positioned to take advantage of the improving commodity prices, as demand for high quality Australian coal remained strong in Asia, underpinned by ongoing construction of modern coal-fired power stations.
However, he added that the company will continue its cost management strategy over the coming periods, as improving commodity prices started to impact across the industry on both the cost of labour and other materials.