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 NHC New Hope Coal
New Hope Coal (NHC)
Looking Good, and Heard Good news about Up Grade of Deposit and new Coal contracts ???
Kind Regards,
Robbo 
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Member
Robbo
Big volume goimg through recently
2.6m gone through already today
On average the daily volume for the last month - 1.3m
But only 375k avaerge for the 52weeks
Hrmm
Chart looks good for a break out as well.
Think the recently declared divi has got people interested.
Maybe one for my Super Fund.
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NEW HOPE COAL (NHC)
I wacked more than a few Dollars into NHC the other day Dave,
So do hope that WE are BOTH are right...
My Maths says that Margin of Safety is on our side.....Dave 
Below are the NUMBERS and an article from today, courtesy of the AFR. 28/9/05
New Hope promises good times will roll
Stephen Wisenthal 28 September 2005
Australian Financial Review
NEW HOPE COAL (ASX Code: NHC)
Full year 2005($m) 2004($m)
Sales 230.7 191.0
Pretax 536.5 108.0
Net (op) 96.7 41.0
Net 463.3 59.4
EPS 59.1 ¢ 7.4 ¢
Interim div 2.75 ¢p 0.75 ¢ f
Final div* 3 ¢ f 1.5 ¢ f
Special div* 13 ¢ f
Capital return** 10 ¢
Shares (yest) $1.38 +7 ¢
*Payable November 16 **Payable December/January, subject to tax ruling Coalminer New Hope will return to shareholders half the $366.7 million profit
from the sale of its Indonesian mines, keeping the rest for expansion projects in Queensland.
The miner, controlled by investment group Washington H Soul Pattinson, increased its net profit from $59.4 million a year earlier to $463.3 million for the 12 months ended July 31. Operating earnings more than doubled to $96.7 million as the company increased production in Australia and benefited from high coal prices.
This year's result was likely to be similar to last year's, said New Hope chairman Robert Millner, who also chairs Soul Pattinson. "Even though coal prices have suffered a little bit, most of our production is locked in until the end of March at the old higher prices," he said.
Interest on New Hope's cash hoard would make up for the loss of earnings from its stake in the PT Adaro mine in Indonesia, the largest open-cut coalmine in the southern hemisphere, which was sold for $US406 million in June to a consortium of Indonesian, Singaporean and US-based investors.
That sale has also proved a boon for New Hope executives.
New Hope issued more than 60 million shares last financial year through the exercise of 45 ¢ options granted before it was spun off from Soul Pattinson and listed on the Australian Stock Exchange two years ago.
Most of these options, deep in the money at New Hope's closing price of $1.38 yesterday, were exercised by executives of the Indonesian operation. They left when that business was sold, Mr Millner said.
The Australian operations made a profit of $54.6 million for 2004-05, up from $21.9 million a year earlier.
New Hope's first expansion project is at its biggest mine, New Acland, near Ipswich, west of Brisbane. It has ordered processing equipment to support annual production of 3.7 million tonnes by 2007, from 2.6 million last year.
It plans to lift New Acland's output of thermal coal, used to generate
electricity, to 5 million tonnes by the end of the decade.
It is also drilling prospects in the Bowen Basin in central Queensland, which appear to contain coking coal, the most valuable form of the fuel, which is used by steelmakers.
"Early indications are quite promising," Mr Millner said. "We've got some exciting prospects."
These deposits include Phillips Creek, near BHP Billiton Mitsubishi Alliance's Saraji mine. New Hope has also been drilling at the Lenton project next to the Burton Downs coalmine, and has an exploration permit at Mackenzie, near Wesfarmers' Curragh coalmine.
It expected to start production from some of these deposits between 2009 and 2011, Mr Millner said.
The total development cost would be hundreds of millions of dollars, some of which would come from the Indonesian sale, supplemented by cash flow and borrowings, he said.
New Hope will pay 28.75 ¢ a share in dividends and capital return for 2004-05, giving a yield of 20.8 per cent at yesterday's close of $1.38, up 7 ¢.
It will pay a final dividend of 3 ¢ a share and a special dividend of 13 ¢.
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Member
Nice spotting Robbo.
Had a nice little run over the last week or so.
Director/Chairman happy to buy at current prices. As announced yesterday he picked up another $500K recently.
I'm holding in my super fund.
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Junior Member
resurrecting an old thread...
New Hope Coal with a Mkt Cap of 3.72B just sold one of its coal deposits, New Saraji for $2.45 billion.
It has 800 odd million shares so the sale is worth $3 per share. The current price is around $4.60 so all its other projects are worth $1.60
What’s interesting is that the 690 million ton resource at New Saraji is broken up by 534 million tonnes inferred and 156 million tonnes indicated.
http://finance.google.com/finance?q=ASX%3ANHC
http://www.newhopecoal.com.au/home.aspx
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A couple of points of difference to other coalers are:
- They export through the Port of Brisbane
- They own their own coal loader and berth near Fishermans Island at the mouth of the Brisbane River - smaller ships, but no queues!
- They are looking at various land development options for their old coal mines around Ipswich Qld.
- They own about 18% of Arrow Energy.
Interesting company.
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I'll borrow the following summary from Huntley's....
NHC mines thermal coal primarily from Acland, 140km west of Brisbane, a mid-low cost, long life mine. Smaller contributions are from Jeebropilly and Oakleigh near Ipswich where land redevelopment offers potential post closure earnings. Group production is 5Mt a year, 75% export, 25% domestic. Exports are via NHC’s 100% owned port in Brisbane. Growth is from Acland expansion. Coal seam gas via Arrow (AOE) and coal to liquids may drive long term growth. Sale of the New Saraji project for $2.45bn in September 2008 sees the balance sheet in immaculate condition with about $2.6bn net cash. Management is focused on cash generation, dividends and long term investment. Single commodity, infrastructure and mining risk require consideration.
In this crazy market, market cap of approx $2.65b equals cash at bank. They will have to pay tax on the profit from the New Saraji sale, but what price is the market putting on a 4+ mt thermal coal mine (with plans to go to 10mt), a 100% company owned port facility, land development options in Ipswich, coal to liquids feasibility study and 18% of Arrow Energy, not to mentions a couple of advanced thermal/coking coal exploration projects??
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 Originally Posted by Huang Chung
I'll borrow the following summary from Huntley's....
NHC mines thermal coal primarily from Acland, 140km west of Brisbane, a mid-low cost, long life mine. Smaller contributions are from Jeebropilly and Oakleigh near Ipswich where land redevelopment offers potential post closure earnings. Group production is 5Mt a year, 75% export, 25% domestic. Exports are via NHC’s 100% owned port in Brisbane. Growth is from Acland expansion. Coal seam gas via Arrow (AOE) and coal to liquids may drive long term growth. Sale of the New Saraji project for $2.45bn in September 2008 sees the balance sheet in immaculate condition with about $2.6bn net cash. Management is focused on cash generation, dividends and long term investment. Single commodity, infrastructure and mining risk require consideration.
In this crazy market, market cap of approx $2.65b equals cash at bank. They will have to pay tax on the profit from the New Saraji sale, but what price is the market putting on a 4+ mt thermal coal mine (with plans to go to 10mt), a 100% company owned port facility, land development options in Ipswich, coal to liquids feasibility study and 18% of Arrow Energy, not to mentions a couple of advanced thermal/coking coal exploration projects??
HC
Thanks for unearthing this little gem
BTW, I see the portfolio has had a shake up!
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A lower risk strategy of course would be to buy majority shareholder Soul Patts ( SOL ).
This is near the top of my watchlist for the Great Recovery.
Last edited by macduffy; 10-10-2008 at 08:37 PM.
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