New Hope Corporation Limited

For Q4 FY26, New Hope reported underlying EBITDA of $169 million, up 30% from the previous quarter. FY26 saleable coal production was 11.5 million tonnes, up 8% year over year and above guidance. New Acland FY26 saleable coal production was 3.3 million tonnes, up 17% year over year, and coal sales were 3.6 million tonnes, above guidance. Bengalla FY26 saleable coal production and coal sales were both 8.2 million tonnes, above guidance, and Bengalla FOB cash cost was $81.30 per sales tonne, at the low end of the $81 to $89 guidance range. The group also generated operational cash flows of $564 million for FY26. Looking ahead, management said capital spend is still partly focused on New Acland, with around $130 million required to complete Manning Vale West, and that future capital expenditure should become more modest as production rises; they also reiterated that shareholders should continue to be rewarded, with cash balances currently higher than the level they would ultimately want to hold.

Rob Bishop described FY26 as “another great year” operationally, emphasizing volume growth, organic expansion, and resilience as a low-cost producer. He said the key strategic focus remains ramping New Acland toward its 5 million tonnes per annum target, with Manning Vale West as the next step, and noted the company is pushing hard to get there safely. He was upbeat on future cash generation and said the company has a significant franking account balance and intends to continue rewarding shareholders.

Rebecca Rinaldi pointed to cash flow strength and explained that Q3 had several outflows, including dividends and the cash impact of the convertible bond buyback, which made Q4 look even stronger by comparison. On Bengalla, she said the final quarter is probably more indicative of run-rate cost performance, while noting unit costs were affected by fewer-than-planned sales, higher waste movement earlier in the year after weather disruption, and inflationary pressures across the industry. She also said the worker contract issue mentioned by analysts does not kick in until this year and is still to be negotiated and finalized.

Analysts pressed management on the strong cash generation, asking whether working capital unwind or one-off items inflated the quarter; management said there was some reduction in coal stocks and no major receivables drawdown, while Q3 outflows such as dividends and the convertible bond buyback also made Q4 appear stronger. Questions also focused on Bengalla strip ratio, yields, and volatile unit costs; management said strip ratios should remain in the 4s on average at Bengalla and that wash strategy flexes with market discounts, while cost swings mostly reflect sales timing and waste sequencing. On capital allocation, management said cash is above their preferred minimum, they plan to keep rewarding shareholders, and they are not actively chasing external acquisitions.