The cashed-up coal miner (NHC) plans to take advantage of the weak coal price to buy cheap open cut mines and boost thermal coal production for new generation power stations in Asia.

New Hope shares jumped more than 10 per cent as the company lifted its final dividend and increased profit, excluding impairment charges.

Managing director Shane Stephan said coal would be a principle energy source for electricity generation in Asia for a significant period into the future.

“Technology in renewables is improving but technology with coal utilisation isn’t standing still either, so we believe in the longer-term future of thermal coal in Asia and we’re prepared to take a longer-term view,” Mr Stephan told AAP.

“We will see a rebalancing of supply and demand over time in thermal coal markets in Asia.” Still, he acknowledged that a recovery in global coal prices was likely to be gradual and some time away.

New Hope is actively investigating acquisition opportunities, with a focus on open cut operations in NSW, Queensland and western Canada, Mr Stephan said.

The company has $1.065 billion in cash and term deposits and cash flows of $88.5 million, giving it the capacity to fund acquisitions.

But more than $73 million in impairment and other charges dragged New Hope into the red for the year to July 31, compared with a $58.45 million profit the previous year.

Excluding the charges, which related to its coal and oil assets, net profit rose 24.7 per cent to $51.75 million.

The result was helped by its recent cost-cutting drive.

Mr Stephan added that the company continued to address the global coal price weakness through cost reductions and prudent financial management.

New Hope would focus on reducing onsite costs in the year ahead as supply began to moderate, Mr Stephan said.

The company increased its final dividend by 25 per cent to 2.5c and continued its special dividend of 3.5 cents.

Fat Prophets Resources analyst David Lennox said New Hope was comfortable looking for cheap acquisitions in the subdued thermal coal sector.

“It’s not a bad financial result,” Mr Lennox said.

“It’s typical of what we’ve seen across the sector. It’s been volume increases, a weak Aussie dollar and cost savings that have really put the results in the not-too-bad bracket.” He said the impairments and the decline in asset values had been expected, but the continuation of a special dividend was a welcome surprise.