New Hope in the black despite coal collapse

Source :


New Hope Coal chief executive Reinhold Schmidt says the company is making money at current coal prices but is unlikely to spend big on acquisitions in the immediate future.

Speaking for the first time since joining the company on September 1, Mr Schmidt said he would take a prudent approach to New Hope's finances amid severely depressed thermal coal prices.

''We are still cash positive,'' Mr Schmidt told The Australian Financial Review.

''We have and will continue to take steps to ensure we are cash positive.''

New Hope appeared to go backwards over the past six months, reporting full-year underlying profit of $119.5 million on Tuesday compared with first-half underlying profit of $123.5 million.

Liquidity risk has become the immediate focus for investors in the coal sector since Whitehaven Coal signalled in August it was barely breaking even at prevailing prices.

Related Regular News: