Coronado shares dive on Q3 output cuts
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More news: Shares in Coronado Global Resources sank on the ASX after the coal miner reported lower production and higher costs during the September quarter.
Coronado was the worst performing stock across the ASX 200 by 11am AEDT, with shares down 4% to $1.01. The miner has seen more than 40% wiped from its share price since January.
Coronado posts lower Q3 production after rain hits operations
The news: Coal miner Coronado Global Resources reported lower production and higher costs during the September quarter, after heavy rainfall dented output at its Queensland operations.
The numbers: Q3 run-of-mine production totalled 6.3 million tonnes (Mt), down 14.9% quarter over quarter. Output from its Australian operation weighed on the result, falling 30.8% compared to Q2, while US production grew 1.7%.
Saleable production was down 6.9% to 3.8 Mt, with a 15.4% drop in Australia compared to an 8.7% rise in the US.
Group revenue lowered 9.7% quarter on quarter to $608.2 million, while average mining costs were 29.2% higher at $117.7 per tonne sold.
The context: Last month, Brisbane-based Coronado revised down its production guidance and increased cost estimates for the year ending December 2024, after heavy rainfall impacted its operations in Queensland.
Coronado's Curragh mine was negatively impacted by required mechanical repairs to its overland conveyor, while subsequent rainfall levels were more than three times the 10-year monthly average for the area, the company said.
What they said: "The skill and resilience of our people and the flexibility inherent in our business allowed us to remain focused on executing our growth strategy when faced with numerous operational challenges in Q3 of FY24," Coronado managing director and CEO Douglas Thompson said.
"We overcame mechanical and geological circumstances at Curragh.
"However, with the continued impact of rainfall we have reissued a revision to full year production and cost guidance."
The source: ASX announcement
