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Highlights

  • Mammoth Underground and Buchanan Expansion are progressing on time and budget, targeting enhanced production in 2025.
  • In 1HFY24, revenue dropped by 10.13% YoY to USD 1,342 million, impacted by lower coal prices.
  • FY24 production guidance has been decreased to 15.4–16.0 Mt (from 16.4–17.2 Mt) due to challenges at Curragh Complex.

Coronado Global Resources Inc. (ASX:CRN) is a metallurgical coal production company with operations in the United States and Australia. The Mammoth Underground and Buchanan Expansion projects, CRN’s growth initiatives, are on schedule, within budget, and target enhanced production in 2025.

For the Mammoth Underground project, the company has submitted applications for regulatory approvals and expects first coal production by December 2024. The project is projected to add around 3 Mtpa of incremental production when 100% operational.

With the Buchanan expansion, the company targets increased production capacity to 7Mtpa by mid-2025.

Recent financial performance

In the first half of the financial year 2024 (1HFY24), the company reported a 10.13% year-on-year decline in revenue to USD 1,342 million, primarily due to lower metallurgical coal prices. During the reported period, capital expenditure jumped 53.71% YoY to USD 136.80 million.

As of 30 June 2024, liquidity stood at USD 414 million and net debt of USD 5 million was recorded.

Outlook

The company has revised its FY24 guidance due to challenges encountered at Curragh Complex. FY24 production guidance has been cut to 15.4-16.0 Mt from 16.4-17.2Mt.

The FY24 guidance for average mining cost per tonne sold has been revised to USD 105-110, up from the previous estimate of USD 95-99, due to lower production levels and the impact of equipment downtime caused by wet conditions.  

In 4QFY24, the company anticipates demand recovery outside China and improved market conditions.

Share Performance of CRN

CRN shares closed at AUD 0.935 apiece on 27 November 2024. Over the past one year, CRN’s share price has dropped by almost 43.84% and in the last three months, the share price has declined by nearly 21.43%.

52-week high of CRN is AUD 1.81, recorded on 10 January 2024 and 52-week low is AUD 0.86, recorded on 9 September 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 27 November 2024. The reference data in this report has been partly sourced from REFINITIV.