Coal miner New Hope Corporation is bracing for excessive volatility within the export market to persist for a while but, as a coronavirus-driven international glut retains coal costs stubbornly low.
The firm on Tuesday revealed it had slumped to a $156 million full-year loss and withdrew its dividend after a sequence of hefty writedowns throughout a lot of its property. New Hope mentioned it was going through delays in receiving approval for its New Acland mine in Queensland’s Darling Downs and has been pressured to chop practically 200 jobs because of this.
New Hope’s 69 per cent revenue fall on an underlying foundation, from $384 million to $119 million, comes because the COVID-19 financial slowdown weighs on international power demand and the value of coal, one among Australia’s largest commodity export. The benchmark worth for top-quality New South Wales thermal coal has plummeted from $US68 a tonne to lower than $US55, effectively under the yearly common of practically $US100 a tonne within the 2019 monetary 12 months.
Wilsons analysts famous New Hope made $345.1 million in pre-tax write-downs for the 12 months to July 31, together with the impairment of its Queensland mining property, coal exploration, and a near-total write-down of the Bridgeport oil enterprise.