AUS
NZ
UK
CA
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IND
Highlights
- Increased export demand, particularly from India, is anticipated to boost CRN’s revenues in 2H FY24.
- CRN's revenue dropped 10% YoY in 1H FY24 to USD 1,342 million due to lower coal prices, with 96% of revenue coming from metallurgical coal.
- Mammoth Underground project regulatory approvals are submitted, with first production anticipated in December 2024.
- The company announced a bi-annual dividend of USD 0.005 per CDI, paid on 18 September 2024.
Coronado Global Resources, Inc. (ASX:CRN) is an international metallurgical coal production company with operations in the United States and Australia. The company expects to see a significant increase in export demand, especially from India as it is expected to become a prominent player in the global metallurgical coal market.
On the back of forecast uptick in metallurgical coal prices because of supply constraints and Indian restocking post-monsoon is expected to support revenue growth in the second half of the financial year (2HFY24).
In the recent half (1HFY24), CRN’s revenue dropped by almost 10% YoY to USD 1,342 million because of lower metallurgical prices, with 96% of revenue from met coal. During the reported period, the average realised price stood at USD 199.3 per tonne which is 72% of the index price.
The period saw 53.71% YoY rise in capital expenditure to USD 136.80 million and 2.63% YoY jump in sales volume to 7.80Mt.
Recently, CRN informed that it is facing challenges at its Curragh Complex, and due to this, production guidance for FY24 has been revised. The company expects coal production to be between 15.4 and16.0 MMT, a drop from 16.4-17.2MMt, due to higher rainfall and mechanical repairs, deferred production into FY25.
The guidance for average mining cost per tonne sold has been increased to USD 105-110 (from USD 95-99), demonstrating lower production levels and the impact of idling equipment during wet season.
Outlook
Regulatory approvals for the Mammoth Underground project have been submitted and first production is anticipated in December 2024. This development is expected to add incremental production of up to 3Mtpa, once fully ramped up.
The company is committed to become a world-class provider of metallurgical coal, with focus on maximising returns through efficiency and expansion gains.
Dividend announced
The company has announced a bi-annual dividend of USD 0.005 per CDI. The 100% franked dividend was paid on 18 September 2024.
Share performance of CRN
CRN shares closed 2.94% lower at AUD 1.155 apiece on 2 October 2024. In the past one year, CRN’s share price has declined by almost 34.93%, while in the past three months, it has dropped by 16.61%.
52-week high of CRN is AUD 1.935, recorded on 2 October 2023, and 52-week low is AUD 0.86, recorded on 9 September 2024.
CRN Daily Technical Chart, Source: EODHD/Others
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 02 October 2024. The reference data in this report has been partly sourced from EODHD/Others.
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