New Hope Corporation Limited

Q4 FY26 underlying EBITDA was $169 million, up 30% from the prior quarter, helped by stronger realized pricing from benchmark indices and foreign exchange. FY26 saleable coal production was 11.5 million tonnes, up 8% year over year; New Acland produced 3.3 million tonnes of saleable coal, up 17%, and Bengalla delivered 8.2 million tonnes of saleable coal and sales. Bengalla’s FOB cash cost was $81.30 per sales tonne, at the low end of its $81 to $89 guidance range. FY26 underlying EBITDA was $514 million and operational cash flow was $564 million. Looking ahead, New Acland is targeting first coal from Manning Vale West in the first quarter of calendar 2027, with about $130 million required to complete that pit and related works; management also said capital spending should moderate after current projects, supporting further cash generation and shareholder returns.

Rob Bishop described FY26 as a strong year operationally, emphasizing higher volumes, ramp-up progress at New Acland, and resilient low-cost production. He said the company is focused on organic growth, especially the Manning Vale West expansion, and expects production to increase as capital intensity eases. His tone was positive but cautious, with repeated emphasis on safety, risk management, and maintaining flexibility around cash.

Rebecca Rinaldi pointed to strong cash generation in Q4 and explained that the quarter benefited from fewer outflows than Q3, when dividends and the convertible bond buyback weighed on cash. She said Bengalla’s cost variability was mainly driven by sales timing, waste movement after the prior weather event, and inflationary pressure, while noting the final quarter was a better indicator of the run-rate. She also confirmed the company is trying to hold down sustaining capex by deferring or removing some programs, while still balancing maintenance risk.

Analysts focused on why cash flow was so strong, whether Q4 cash conversion benefited from working capital unwind, and how much cash the company wants to keep on the balance sheet. Management said higher coal prices, increased production, and a slight reduction in coal stocks helped, while Q3 had been depressed by dividends and the convertible bond buyback. Questions also centered on Bengalla strip ratio and costs, rail disruptions in Queensland, and the New Acland ramp-up; management said strip ratios should stay in the 4s on average, rail constraints came from QR industrial action and Cross River Rail outages, and New Acland is still ahead of prior expectations but pushing toward 5 million tonnes per annum as quickly as possible.