Coronado shares slide 3.3% as guidance reduced

The news: Shares in metallurgical coal miner Coronado have slid 3.34% in early trading after the company reduced its FY23 guidance. Geological and operational issues took a toll on expected production which in turn increased mining costs already elevated due to broader inflationary pressures, the miner said.

The numbers: Conado's expected saleable production range fell from 16.8Mt-17.2Mt to 16.2Mt-16.4Mt while the upper bounds of its expected mining costs per tonne sold rose by $87 to $102. Capital expenditure efficiencies reduced capex guidance maximums from $290 million to $240 million but savings weren't enough to excite investors. Coronado shares were fetching $1.88 at 11:10am AEST. Coronado executive chair Gerry Spindler said the company didn't expect the changes to have a material impact on FY23 cashflows.

The context: Last week Czech-based investment group Sev.en signed a binding agreement to acquire a 51% stake in Coronado from private equity firm Energy & Minerals Group for an undisclosed price. The purchase is still subject to Australian and United States regulatory approval. Last year Coronado produced more than 16 million tonnes of metallurgical coal from its mines in Queensland and the central Appalachian region of the USA.