Highlights

  • New Hope has proposed acquiring the Malabar Resources shares it does not already hold through an all-share transaction.
  • Malabar shareholders would receive 0.500 New Hope shares for each Malabar share.
  • The proposal implies an approximately $1.8 billion equity value for Malabar and a $6.3 billion combined equity value.
  • Malabar’s Maxwell underground mine would add metallurgical coal production exposure.
  • Completion remains subject to shareholder, court and regulatory requirements.

New Hope Corporation Limited (ASX:NHC) produces coal through its Bengalla operation in New South Wales and New Acland operation in Queensland, alongside port and agricultural activities. The group has proposed combining with Malabar Resources, an unlisted coal producer in which it already owns 25.97%. The proposed transaction would expand New Hope’s involvement in underground metallurgical coal through Malabar’s Maxwell Mine while retaining its existing operating assets.

How the Malabar Share Exchange Would Work

Under the proposed scheme of arrangement, Malabar shareholders would receive 0.500 shares in New Hope Corporation Limited (ASX:NHC) for each Malabar share. The exchange ratio implied approximately $2.92 for each Malabar share using the referenced New Hope share price, although that implied value can change with New Hope’s trading price. The transaction uses shares rather than a fixed cash payment.

New Hope Corporation Limited (ASX:NHC) held 25.97% of Malabar at the end of FY26. The transaction addresses the remaining approximately 74% interest. The indicated ownership split following implementation is roughly 79% for existing New Hope shareholders and 21% for the other Malabar shareholders. The stated pro forma equity value of the combined business is approximately $6.3 billion.

Maxwell Mine and Production Profile

Malabar’s Maxwell underground mine is situated in the Hunter Valley and began longwall mining in April 2026. Its long-term saleable production target is 5.5 million tonnes annually, compared with approximately 0.6 million tonnes produced in FY26. The target depends on continued expansion and operational execution; it is not a completed production result.

The combined company’s indicative long-term attributable saleable production is approximately 18.9 million tonnes, against a stated FY26 combined base of 11.7 million tonnes. New Hope Corporation Limited (ASX:NHC) would therefore have a broader mix of thermal and metallurgical coal operations if the merger proceeds. Long-term production figures remain indicative rather than assured output.

Existing Operations and Financial Position

The company’s FY26 results recorded saleable coal production of 11.5Mt and coal sales of 11.8Mt. Underlying EBITDA was $514.3 million and net profit after tax reached $161.0 million. New Hope Corporation Limited (ASX:NHC) reported $564.1 million in operating cash flow and available cash of $778.5 million as at 31 July 2026.

Bengalla’s mining sequence recovered during the second half of FY26, while Stage 3 production continued to ramp up at New Acland. These operating activities remain distinct from the proposed Malabar transaction and provide context for the existing production base.

Approvals and Implementation Conditions

The scheme requires approval by Malabar shareholders and the court, an independent expert assessment and applicable regulatory clearances. The proposed implementation window extends into February or March 2027, subject to those conditions. Until they are fulfilled, New Hope Corporation Limited (ASX:NHC) and Malabar remain separate businesses.

Key Insights

The merger proposal centres on the ownership structure of Malabar and the addition of Maxwell’s underground coal operations to New Hope’s producing portfolio. The exchange ratio, implied equity values and indicative long-term production profile describe the proposed arrangement, not a completed transaction. The main remaining milestones concern approvals and the practical integration of coal operations.