Bowen Coking Coal shares plummet after mine closure warning
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The news: Shares in small-cap metallurgical coal producer Bowen Coking Coal have plummeted after warning it could pause operations at its Burton Mine Complex amid “depressed coal markets” and “unsustainable” Queensland government royalty fees.
The numbers: Bowen Coking Coal shares had fallen 45.7% to $0.19 by 11:32am AEST and are down 97.1% over the last 12 months.
The context: Bowen Coking Coal is seeking financing to support the transition to managing the Burton Mine Complex from 1 July — as its mining services agreement with BUMA Australia expires — and to provide liquidity amid challenging market conditions.
The spot price of Metallurgical has fallen by 25% since June 2024, according to some indices, amid global trade flow uncertainty caused by US tariff policy, a surplus of Chinese steel exports, and low demand from India during the early onset of the monsoon season.
As such, the company said in a statement to the exchange that its earnings “remain under extreme pressure”.
What they said: “There is no guarantee that additional funding will be secured in order to maintain the operating business, in which case Bowen may need to consider temporarily pausing part or all of its operations until markets return,” it said.
The source: ASX
