Australian miner New Hope Corp. on Thursday reported a fall in coal output quarter-on-quarter, but said it continues to benefit from a surge in thermal-coal prices. Here are some remarks from its first-quarter operational report for the three months through October.

On production:

“Bengalla ROM [run-of-mine] production was above plan in August, before further significant wet weather and flooding events impacted production with a total of 11,268 truck hours lost. Unseasonal wet weather and skilled labor shortages represents a 14.3% reduction of saleable coal production [at Bengalla] to the July 2022 quarter. The water discharge credits secured last quarter have been a valuable flood mitigation strategy against the unseasonal wet weather and are expected to provide further value given the forecasts of continued inclement weather in the Hunter Valley.”
On demand:
“Security of supply was a key focus for buyers during the quarter, delivering robust demand. Disruptive weather played a key role in limiting any supply-side response, which highlighted further the demand and supply imbalance within the seaborne coal market. Moving into October the market has been quiet due to customers being well stocked as they move into a currently mild winter. As the temperatures in the northern hemisphere fall and coal burn increases, restocking will occur and it is expected to provide further strength to pricing. Trade flows continue to support high prices for high quality, low emission thermal coal.”
Write to Rhiannon Hoyle at rhiannon.hoyle@wsj.com