Resurgent New Hope cracks $6 billion as investors rush in
New Hope’s market valuation cracked the $6 billion level on Friday as investors rushed in on the last day before dividends.
Coal is likely to shape debate in the upcoming election (File image)
The Brisbane company has benefitted from a spectacular increase in the price of thermal coal, which hit $US440 a tonne recently, but has since slid below the $US400 level.
The company goes ex-dividend on Monday so Friday was the last day of share trading for investors to pick up a final dividend of 31 cents as well as the special dividend of 25 cents.
Its shares rose another 4 per cent this morning to be at $7.18 as investors rushed in.
The company was also buoyed by the granting of its final approval yesterday for the $900 million New Acland coal mine expansion project with work expected to start quickly.
Analysts expect the price of coal to remain elevated for the rest of the year as the northern hemisphere enters winter and demand for energy remains high.
The expectation was that price for thermal coal, used in electricity generation, would settle in the $US300 range in 2024, However, continued wet weather over the Hunter Valley could stall mining and lead to an increase in prices.
Shares in fellow coal producer Whitehaven Coal have risen 270 per cent this year.
