This mining company has no debt and is sitting on a $A1 billion pile of cash
New Hope Corp wants to buy more coal mines
Cashed up mining company New Hope are holding the torch with hopes to lead other Australian mining companies to follow in their footsteps as they prepare for growth. In uncertain times, especially in a volatile coal market, New Hope has once again demonstrated their resilience and belief in their ability to fight for survival, no matter what.
“We want to expand”
New Hope Managing Director Shane Stephan said, “we want to expand”.
New Hope is quite unique in so much as it does not sell its thermal coal to China, rather it sells it to expanding Asian markets like Japan, South Korea and Taiwan.
Shipping a whopping 2.87 million tonnes of coal in the last half of 2014, the creative Queensland mining company is in an enviable financial position. The MD of New Hope said the company had no debt and was sitting on a $A1.1 billion pile of cash.
New Hope’s current strategy is to seek out additional coal mines in Australia to compliment its two existing mines. The company had also acquired coal tenements in the Surat Basin from Cockatoo Coal and Mitsui & Co. These tenements were earmarked for development over the next five to seven years.
“We have the operational capability and the balance sheet, so we want to take the opportunity to make the right investments at a time when others are finding it quite difficult,” Stephan said in a telephone interview.
New Hope have not ruled out dipping their toes into the metallurgical coal mining business, which is currently dominated by big guns BHP Billiton and Mitsubishi. As a side note, it’s worth mentioning that there is a current oversupply of metallurgical coal in Australia.
“The metallurgical coal markets are probably under more pressure than thermal in the immediate term, but we would look at metallurgical coal,” Stephen said. “The underlying core competencies are the same.”
New Hope has recorded a $23.1 million first-half net loss versus a year-ago profit of $22.7 million. This was tied to write-downs of its oil and gas assets. Despite these losses, New Hope are in a good position to strike whilst the coal market is subdued and build an even stronger business.
About New Hope Corporation.
- The New Hope Group is an Australian owned and operated energy company and has been operating in South East Queensland for over 60 years. They have interests in developing further coal, oil, agriculture and port assets.
- New Hope is ranked as one of the 100 largest ASX listed companies
- The New Acland mine, is owned and managed by the New Hope Group, and has played a key role in the Darling Downs region as an employer and economic contributor since 2002.
- New Hope owns the New Ackland open cut coal mine North-west of Oakey, Queensland, 35 km north-west of Toowoomba.
- The Ackland mine provides direct jobs for more than 300 locals, 160 contractors, and contributes to 2300 more indirect jobs in the region.
- QLD government approved a 7.5 Mtpa expansion of the existing New Acland mine.
- See the New Acland website for more details: www.aclandproject.com.au
- New Hope also operate the Jeebropilly coal mine which is close to Ipswich and the Amberley Airforce Base.
- The company are also active in mine rehabilitation and are currently working on the inactive New Oakleigh and Chuwar coal mines.
- Jobs with New Hope are advertised on their website which can be found at: www.newhopegroup.com.au
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