Rail damage impacts New Hope

NEW Hope expects Queensland Rail National to repair the damaged sections of the Western rail system by mid-April, while it continues to truck coal from its key Acland mine. Raw coal production was down 16% year-on-year for its recent quarter.
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New Hope's mines in red.

Blair Price

The company uses its own unique quarterly reporting timeframes, and raw coal production for three months to the end of January reached 2.4 million tonnes, compared to the 2.85Mt in the previous corresponding period.

Coal seals also slipped 9% year-on-year to 1.21Mt in New Hope’s recent quarter. Coal can still be railed from its West Moreton operations, and the company said all mining operations were at full capacity.

The company noted its mines were never flooded during the quarter, but there was localised flooding around them.

At the company’s New Lenton project, preliminary 3D seismic survey results indicate the project could possibly host underground mining as well as open cut.

New Hope received coal permit EPC 1876 in late November, and has made an application for a coal permit in Central Queensland with the company expecting it to be granted in the first half of 2012.

The company issued net profit after tax guidance of $A400-407 million for the half year ending January 31.

New Hope’s $1.85 cash bid for Northern Energy Corporation shares is due to close at 7pm (AEDT) today, with most of NEC board’s expected to sell their shares.

New Hope shares are up 1c to $4.87 this morning.