AUS
NZ
UK
CA
USA
IND
Highlights
- CRN has secured regulatory approval for its Mammoth Underground Mine.
- The company is focused on driving growth through projects like the Buchanan Expansion and ongoing efficiency improvements at its Curragh Complex.
- CRN’s North American annual contract negotiations for FY25 have been finalised, securing met coal pricing of approximately USD 159 per tonne.
Coronado Global Resources Inc. (ASX:CRN) is a global producer of premium-quality metallurgical coal (met coal), a critical component in steel production. The company operates mining sites and development projects in Queensland, Australia, as well as in Pennsylvania, Virginia, and West Virginia in the United States.
Mammoth Underground Mine: A Strategic Milestone for CRN
CRN has secured regulatory clearance to commence operations at the Mammoth Underground Mine, situated in Queensland's Bowen Basin. This marks a significant milestone as it is the first underground mining project of the company in Australia. This new development is set to enhance production and reduce costs, it also promises to contribute to CRN’s organic growth through strategic local partnerships.
Furthermore, CRN has made considerable progress in securing favourable U.S. domestic contracts for FY25, reinforcing a strong revenue outlook moving forward.
Financial Performance and Outlook for FY24
For the first nine months of FY24, CRN reported a decline in total revenue, which stood at USD 1.95 billion, down 11.8% YoY from USD 2.21 billion in the same period in FY23. The company’s capital expenditure during the period reached USD 201 million, reflecting 10.25% YoY rise. Production was steady, with year-to-date figures showing 19.7 million tonnes of raw coal mined and 11.7 million tonnes sold.
The company ended the period with a closing balance of USD 176 million.
Revised Guidance and Future Outlook
CRN has adjusted its FY24 guidance, reducing its saleable production forecast to 15.4–16.0 million tonnes, down from the previous projection of 16.8–17.2 million tonnes, largely due to operational hurdles at the Curragh Complex. Additionally, mining costs per tonne sold have been revised upward to USD 105–110. The upgrade reflects decrease in production and the impact of equipment downtime caused by wet weather conditions. However, capital expenditure guidance remains intact at USD 240–260 million, directed towards supporting key growth initiatives.
Looking ahead, CRN expects a rebound in hot metal production outside of China, particularly in India, as macroeconomic conditions improve. Trade measures are anticipated to offset some of the challenges posed by Chinese steel exports, which should support a recovery of non-Chinese steel production.
On the financial front, CRN’s North American annual contract negotiations for FY25 have been finalised, securing met coal pricing of approximately USD 159 per tonne, similar to FY24 levels.
Share performance of CRN
CRN shares closed 3.25% down at AUD 0.745 apiece on 15 January 2025 with a market cap of AUD 1.29 billion. Over the past year, CRN’s share price has dropped by 55.39%, and in the past three months, the share price has decreased by 36.32%.52-week high of CRN is AUD 1.77, recorded on 15 January 2024 and 52-week low is AUD 0.71, recorded on 20 December 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 15 January 2025. The reference data in this report has been partly sourced from EODHD/Others.
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