New Hope Corp Ltd NHC

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A$4.66 −0.05 (1.06%)

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As of Apr 19, 2024 6:10am Delayed Price Post-Trading: A$4.66 0.00

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Company Report

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Opportunities in Mining Sector in Coal and Gold; Commodity Prices Generally Supportive

Jon Mills, Apr 16, 2024

Commodity prices diverged in the quarter. Despite solid China steel production, iron ore and metallurgical coal prices are down, while copper rose on supply issues and hopes of faster global growth. However, prices are elevated compared with history and cost-curve support.

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Price vs Fair Value

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NHC is trading at a 20% discount.

Price

A$4.71

Apr 18, 2024

Fair Value

A$3.30

Apr 4, 2024

Uncertainty

Very High

1-Star Price: A$41.71
5-Star Price: A$9.89
Economic Moat: Kmhrp
Capital Allocation: Fxnrvzdn

Bulls Say, Bears Say

Bulls

Demand from Asia for New Hope’s high-quality (high energy, low ash) thermal coal is likely to remain robust for the next decade.

Bears

Greater action on climate change could see demand for thermal coal curtailed sooner and more significantly than anticipated.

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News

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New Hope to Deliver First Coal to China Since Unofficial Ban Ended — Commodity Comment

Global News Select May 22, 2023 12:06am

Trading Information

Previous Close Price: A$4.71
Day Range: A$4.65–4.74
52-Week Range: A$4.20–6.52
Bid/Ask: A$4.66 / A$4.68
Market Cap: A$3.94 Bil
Volume/Avg: 3.0 Mil / 3.2 Mil

Key Statistics

Price/Earnings (Normalized): 5.43
Price/Sales: 2.05
Dividend Yield (Trailing): 8.15%
Dividend Yield (Forward): 7.30%
Total Yield: 24.32%

Company Profile

New Hope Corporation is an Australian thermal coal miner. It has two operating mines: the 100%-owned New Acland coal mine in Queensland and its 80%-owned Bengalla coal mine in New South Wales. The company should produce around 13 million metric tons of equity salable thermal coal annually from fiscal 2028, up from around 7.5 million in fiscal 2023, driven by the construction and ramp up of New Acland Stage 3. The vast majority of New Hope’s production is sold into seaborne thermal coal export markets. Reserves at New Acland and Bengalla are sufficient to support multidecade mine lives. New Hope also has significant undeveloped coal resources in Queensland, as well as a 20% holding in the Malabar-Maxwell metallurgical coal mine, which began production in 2023.

Sector: Energy
Industry: Thermal Coal
Stock Style Box: Mid Value
Total Number of Employees: 550
Website: https://www.newhopegroup.com.au

Competitors

Valuation

Metric	NHC	BHP	WHC
Price/Earnings (Normalized)	5.43	10.90	5.28
Price/Book Value	1.57	3.55	1.27
Price/Sales	2.05	2.66	1.70
Price/Cash Flow	6.04	6.89	9.59

Price/Earnings

NHC

BHP

WHC

Financial Strength

Metric	NHC	BHP	WHC
Quick Ratio	2.82	1.08	3.68
Current Ratio	4.07	1.57	3.95
Interest Coverage	79.22	7.59	41.55

Quick Ratio

NHC

BHP

WHC

Profitability

Metric	NHC	BHP	WHC
Return on Assets (Normalized)	20.98%	13.90%	15.81%
Return on Equity (Normalized)	26.96%	31.67%	22.25%
Return on Invested Capital (Normalized)	25.06%	21.70%	20.52%

Return on Assets

NHC

BHP

WHC

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