Thermal Coal, as opposed to Met. coal remains a large proportion of NHC’s earnings, but they haven’t been spending big; hence, their relatively attractive yield remains, especially since Yancoal’s move earlier this month to scrap its dividend. In June NHC announced a better-than-expected 3rd quarter sales update with solid production growth heading into the end of the year, costs tracking lower, and $381m in cash. Assuming it maintains this performance next month, we will continue to like NHC as a medium-term “yield play”.
NB New Hope (NHC) will report next month on the 19th of September.
- We are long NHC as a dividend play. The stock is estimated to yield 6.5% in 2025. MM is long NHC in our Active Income Portfolio.