New Hope Corporation Ltd's stock surged 5.05% intraday on Thursday, reaching a two-year peak.
The rally follows a bullish analysis from Barrenjoey, which raised its long-term dividend payout ratio forecast for the coal miner to 80% from 50%. The broker noted New Hope's strong cash position of A$620 million and expects the company to prioritize increased returns to shareholders once its capital expenditure program is complete and debt obligations are addressed.
Additionally, the broader coal sector gained following geopolitical tensions in the Middle East. An Iranian attack on Qatar's Ras Laffan Industrial City caused extensive damage to gas facilities, raising concerns about energy supply and boosting prices for alternative fuels like coal.