Image source: Shutterstock

Highlights

  • Coronado Global resources is a metallurgical coal production company with operations in Australia, the US and Virgina
  • In FY23, the company’s revenue stood at USD 2,890.60 and cash and cash equivalent stood at USD 339 million
  • Group LLC has highest stake in CRN with a shareholding of 50.41%

ASX-listed materials company, Coronado Global Resources Inc (ASX: CRN) produces metallurgical coal, which is a crucial component in steel production. The company addresses the steel demand arising for manufacturing renewable energy infrastructure. The company is amongst the largest met coal producers globally which is supplying across five continents. The projects and operations of CRN are located in the US, Australia and Virginia.

The company has operating asset life of over twenty years and has maintained met coal reserves of more than 2 billion tonnes.

In the financial year 2023 (FY23), the company delivered the second highest revenue performance and continued investment in major growth projects. During the reported period, CRN’s revenue fell by 19.06% YoY to USD 2,890.60 million, net cash increased by 4.99% YoY to USD 96.70 million and capital expenditure surged by 22.87% YoY to USD 227.80 million.

At the end of the December 2023 quarter, the company had USD 489.0 million in liquidity including cash and cash equivalents of USD 339 million.

Top 10 shareholders of CRN

The top 10 shareholders of CRN have around 64.08% shareholding in the company, while the top four have almost 61.55% shareholding. Group LLC and AustralianSuper have maximum stake in the company, with a shareholding of 50.41% and 9.03%, respectively.

Recent business update

Through an ASX-update dated 23 January 2024, the company shared that in December 2023 quarter, group ROM coal production was 6.1Mt, up 3.3% YoY, while group saleable production was 3.9Mt, up 6.4% YoY. At Curragh, the company realized higher production rates because of greater coal availability as per the mine plan following record waste movement works.

Outlook

In FY24, the company aims to attain increased production rates, enhanced margins, and reduced costs to fully capitalize on the heightened price environment for met coal. In FY24, the company expects to achieve saleable production of 16.4Mmt to 17.2Mmt.

At Buchanan and Curragh, the company is developing its organic growth pipeline and seeking incremental production.

Share performance of CRN

CRN shares closed 1.6% down at AUD 1.23 apiece on 20 Mrach 2024. With this, in the last one year, CRN’s share price has dropped by nearly 25.90%, and in the past one month, it has declined by 16.89%.

The 52-week high of CRN is AUD 2.01, recorded on 29 September 2023, while the 52-week low is AUD 1.188, recorded on 13 March 2024.

Note 1: Past performance is neither an Indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, and currency, is 20 March 2024. The reference data in this report has been partly sourced from REFINITIV.