Shares of New Hope Corp Ltd (ASX: NHC) plummeted 5.34% in intraday trading on Monday, despite reporting increased coal production and sales for the quarter ended April 30. The sharp decline appears to be driven by the company's decision to lower its fiscal year 2025 guidance for saleable coal production and sales.

According to the company's latest quarterly report, New Hope's saleable coal production for the quarter rose 1% to 2.8 million tonnes, up from 2.7 million tonnes in the previous quarter. Coal sales volume also increased by 3% to 2.7 million tonnes. However, run-of-mine coal production fell 5% to 4 million tonnes from 4.2 million tonnes in the previous quarter.

Despite these mixed results, the market reacted negatively to New Hope's revised guidance for the fiscal year 2025. The company lowered its saleable coal production guidance to between 10.6 million tonnes and 11.6 million tonnes, down from the previous guidance of 10.8 million to 11.9 million tonnes. Similarly, coal sales guidance was reduced to between 10.4 million tonnes and 11.5 million tonnes, compared to the earlier projection of 10.7 million to 11.8 million tonnes. This downward revision in key operational metrics appears to have overshadowed the positive aspects of the quarterly report, leading to the significant drop in share price.