AAP reported that Coal miner New Hope could delay its expansion plans in Queensland by up to a year and hasn't ruled out job cuts as margins come under heavy pressure.

Mr Robert Neale CEO of New Hope said that the strong Australian dollar weak commodity prices and government regulation and taxation were hurting the company's profitability. But the Brisbane based company one of just a handful of listed Australian coal producers following a rush of deals over the past few years was already lean in terms of staff numbers and remained committed to meeting its existing output goals. This time is quite difficult. But we feel we are in a strong position to move into the future.

New Hope is funded well enough to complete its developments and pursue possible acquisitions. The company posted a net profit of USD 167 million for the year to July 31. That was down 67% from USD 503 million in the previous year.

The previous year's result was boosted by the sale of stakes in Arrow Energy and the Lenton coal project in Queensland. New Hope's coal production and sales in the year to July were both up 11 per cent on the previous year. The company owns an open cut mine at Acland on the Darling Downs in Queensland and the Queensland Bulk Handling coal export terminal in Brisbane.

It also has several development projects including expansion of its Acland mine. But it is reviewing the pace at which it progresses those projects after recent falls in coal prices and the Australian dollar's ongoing strength.

Mr Neale said that New Hope was poised to deliver a solid operational performance in fiscal 2013 with production levels expected to be similar fiscal 2012. New Hope shares were up 36c or 8.61% at USD 4.54 in late morning trading.

Source - AAP

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