New Hope Group Announces Strong FY23 Performance

The New Hope Group (ASX: NHC) has reported a remarkable financial performance for the fiscal year ending July 31, 2023. The company's Chief Executive Officer, Rob Bishop, highlighted several key achievements that have contributed to this outstanding outcome.

Robust Dividends Declared

The company declared a final fully franked ordinary dividend of 21.0 cents per ordinary share and an additional final fully franked special dividend of 9.0 cents per ordinary share. This brings the total full-year fully franked dividends declared to 70.0 cents per ordinary share, which translates to an impressive 13 percent dividend yield for shareholders, based on a closing share price of AU$5.311 as of July 31, 2023.

Strong Financial Metrics

The New Hope Group reported an impressive Underlying Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of AU$1,746.6 million, marking an 11 percent increase compared to the previous year. The company also achieved a Net Profit After Tax (NPAT) of AU$1,087.4 million, surpassing the 2022 figure of AU$983 million. These financial metrics reflect the company's robust financial health.

Operational Excellence

Despite facing challenges such as rainfall, flooding, and logistics disruptions, the New Hope Group's flagship operation, the Bengalla Mine, delivered 9.0 million metric tons of saleable production in FY23, showcasing the company's operational resilience and capability.

Strategic Investments and Diversification

The company owns 15 percent of Malabar Resources, which successfully initiated operations at the Maxwell Mine, a 6.5 million metric tons per annum (Mtpa) underground metallurgical coal project near Muswellbrook in New South Wales. This strategic investment aligns with the New Hope Group's strategy to diversify its portfolio by investing in low-cost coal assets with long-life approvals, thereby ensuring attractive investment returns over the project's lifespan.

Supporting the Decarbonized Economy

Rob Bishop emphasized the company's commitment to producing high-quality, low-emission Australian thermal coal that plays a crucial role in supporting the transition to a decarbonized economy. New Hope's coal is vital for providing secure and essential energy, contributing to improved living standards and economic development opportunities for its customers.

Focus on Long-Term Strategy

The New Hope Group's long-term strategy is centered on the responsible, safe, and efficient operation of its low-cost, long-life assets throughout the energy transition. The company remains dedicated to disciplined capital management and delivering substantial returns to its valued shareholders.

In conclusion, the New Hope Group's exceptional financial performance, robust dividends, operational excellence, and strategic investments underscore its resilience and strategic positioning within the energy sector, setting the stage for continued growth and value creation.

Customer Notice:

Nextgen Global Services Pty Ltd trading as Kapitales Research (ABN 89 652 632 561) is a Corporate Authorised Representative (CAR No. 1293674) of Enva Australia Pty Ltd (AFSL 424494). The information contained in this website is general information only. Any advice is general advice only. No consideration has been given or will be given to the individual investment objectives, financial situation or needs of any particular person. The decision to invest or trade and the method selected is a personal decision and involves an inherent level of risk, and you must undertake your own investigations and obtain your own advice regarding the suitability of this product for your circumstances. Please be aware that all trading activity is subject to both profit & loss and may not be suitable for you. The past performance of this product is not and should not be taken as an indication of future performance.

Kapitales Research, Level 13, Suite 1A, 465 Victoria Ave, Chatswood, NSW 2067, Australia | 1800 005 780 | info@kapitales.com