New Hope Corporation (ASX: NHC)Share Price and News
About New Hope Corporation
New Hope Corporation is an Australian-based energy and resources company primarily engaged in coal mining and exploration.
The company's portfolio is headlined by two flagship producing mines: the 100%-owned New Acland open-cut thermal coal mine in the Darling Downs, Queensland, and the 80%-owned Bengalla mine in the Hunter Valley, New South Wales.
With a focus on thermal and metallurgical coal, New Hope operates several mining assets across Queensland, providing energy for both domestic and international markets.
New Hope Corporation History
New Hope Corporation is one of Australia's oldest and most enduring coal producers, tracing its origins to 1952 when it was established in Ipswich, Queensland. The company built its early business around the rich coal seams of the Ipswich region, and by the early 1980s had become one of the first Australian miners to successfully export coal into Japanese markets, a relationship that remains commercially significant today. To service that growing export business, New Hope co-developed Queensland Bulk Handling (QBH), a dedicated coal loading facility at the Port of Brisbane commissioned in 1983. New Hope retains a 50% stake in QBH to this day, giving it a vertically integrated logistics advantage that peers cannot easily replicate.
In the 1970s, the company was acquired by Washington H. Soul Pattinson (ASX: SOL), the diversified investment house that remains the anchor shareholder with approximately 39% of the register. New Hope listed on the ASX in September 2003 and soon after sold overseas interests to concentrate on its Australian operations. It bought stakes in a number of smaller resources and energy companies across the 2010s, some worked out but others did not.
The company benefited from high coal prices post Russia's invasion of Ukraine with its profits surging by several hundred percent. To meet high demand, New Hope has pushed for expansion of its Queensland-based New Acland mine and increased output at its flagship Bengalla thermal coal mine in NSW and these requests were granted.
New Hope Corporation's Future Outlook
New Hope's outlook is defined by a clear and credible production growth trajectory anchored by the ramp-up of New Acland Stage 3 — the largest organic growth project in the company's history.
FY26 production guidance of 10.2–11.5 million saleable tonnes reflects the ongoing ramp-up at New Acland and a recovery at Bengalla from weather-related disruptions that affected pit sequencing in FY25. Bengalla is expected to return to its normal 13.4 million tonne per annum ROM coal production rate in the second half of FY26 as sequences normalise, which should meaningfully reduce unit costs in the back half of the year. The Q2 FY26 quarterly — covering the three months to January 31, 2026 — showed group coal sales up 8.2% quarter-on-quarter to 2.9 million tonnes, an average realised price of A$139 per tonne, and first-half underlying EBITDA of A$214.8 million, with available cash of A$616.8 million.
Looking further out, the long-term production target is compelling. New Acland Stage 3, which received long-awaited approval certainty following the conclusion of the Oakey Coal Action Alliance's legal challenge, is targeting approximately 5 million tonnes per annum via the Manning Vale West mining area. Combined with a stable Bengalla output, analysts forecast total group production reaching approximately 13 million tonnes annually by FY28 — a 24% uplift from current levels with no new acquisitions required.
The commodity backdrop is nuanced but supportive. High-quality thermal coal from New Hope's mines commands a premium in Asian export markets, and demand from Japan — New Hope's largest revenue market at 32% of sales — remains structurally resilient. Growing electricity consumption across Asia, driven by industrialisation and the power demands of AI data centres, continues to underpin near- to medium-term demand for high-calorific-value coal.
Is New Hope (ASX: NHC) a Good Stock to Buy?
New Hope is one of the most financially robust coal producers on the ASX — but at current prices, the valuation debate is legitimate and investors should enter with clear eyes.
The fundamental case is strong. FY25 delivered group saleable production of 10.7 million tonnes (up 18.1% year-on-year) alongside revenue of A$1.80 billion, net profit of A$439 million, and operating cash flows of A$571 million. The board declared total FY25 dividends of A$0.34 per share, fully franked, including a final dividend of A$0.15 per share. Management has further committed to an on-market share buyback of up to A$100 million. With a forward dividend yield of approximately 6.7% and available cash of A$616.8 million at January 31, 2026, the income credentials are real. H1 FY26 results are due March 17, 2026 and are expected to show continued progress.
The complication is valuation. The share price has surged approximately 33% over the past 12 months to around A$5.35, trading 27% above its 200-day moving average and well ahead of analyst consensus price targets of around A$4.27 — implying the market has already priced in a significant amount of the production growth story. At a trailing P/E of approximately 18 times, NHC is no longer the deep value proposition it once was.
The structural headwinds of thermal coal (namely: ESG-driven capital exclusion, long-term demand uncertainty, and regulatory risk in Queensland) remain real considerations. But for investors seeking a high-quality, fully franked yield from a low-cost producer with a genuine production growth catalyst, New Hope remains one of the better-run names in the sector. The key question is not whether NHC is a good company - it clearly is! Rather, whether the current price leaves enough margin of safety to justify fresh capital today.
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Frequently Asked Questions
New Hope offers an attractive dividend yield of over 6% as of mid-March 2026, which is an appealing factor for income-focused investors. The company has a strong track record of dividend payments, making it a reliable choice for those seeking regular income.