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Highlights:
- Coronado shared that discussions with Peabody about a potential merger have been ceased by the companies jointly.
- The company said that the ending of merger talks with Peabody will not impact its fourth-quarter plans.
- Coronado’s share price dropped by almost 8% on Monday (7 November 2022) during the early trading hours.
Metallurgical coal producer Coronado Global Resources Inc. (ASX:CRN) on Monday (7 November 2022) shared via an ASX filing that talks with Peabody Energy Corporation about a potential merger have ceased mutually.
Peabody is a coal-producing company that provides essential products for developing reliable and affordable steel and energy.
Coronado shares opened in red on Monday. At 10:57 AM AEDT, the shares were spotted trading 8.37% lower at AU$2.08 per share. Meanwhile, the benchmark index, ASX 200 Materials (INDEXASX:XMJ), was up 2.81% to 16,054.80 points at 11:19 AM AEDT.
Coronado has not specified the reason for the abandoning of discussions of a merger.
On 12 October 2022, the company had confirmed that it was in discussions with Peabody regarding a combination of the companies. The company had not disclosed any further details regarding the merger discussions at that time.
This is the second time in a year that the company did not proceed with the merger. The first time was in May, when the company shared that talks with Arch Resources, Inc., regarding a potential merger had ended.
What did Coronado say about the development?
Coronado informed the market that the end of the discussion with Peabody would not have an impact on the fourth-quarter plans.
The company added:
Guidance update
While sharing the quarterly production report, the company revised its guidance for financial year 2022 (FY22). It reduced its saleable production guidance from 18.0–19.0 million tonnes to 16.9–17.1 million tonnes.
The average mining cost per tonne sold guidance was updated to AU$81.0–AU$83.0, from AU$79.0–AU$81.0.
