Coal producer New Hope has cut its full-year sales guidance but says the market is showing early signs of a rebound after a prolonged slump in prices.

Shares in New Hope fell almost 7 per cent to $3.66 after the company cut its sales and saleable production forecasts and reported a 27 per cent drop in quarterly underlying earnings before interest, taxes, depreciation, and amortisation to $155.2 million because of lower coal prices.

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