Coronado's half-year earnings dragged down by lower coal prices
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The news: Coronado Global Resources posted a hit to half-year revenue and profit as the metallurgical coal miner experienced lower sales prices and higher mining costs compared to a year prior.
The numbers: Coronado's revenue for the half totalled $1.34 billion, down from $1.49 billion a year earlier. Net income fell 92% to $16.2 million while adjusted EBITDA lowered 62% to $135.4 million.
While sales volumes increased 2.2% to 7.8 million metric tonnes (Mt) year on year, the group's average realised price per tonne sold dropped 13% to $199.3. Mining costs also increased, up 10.8% to $107.7 per Mt.
The context: Coronado's shares rallied last month after the mining group posted production volumes for the June quarter that were up quarter on quarter but largely flat year on year.
The company noted that completion of operational improvements at its Curragh mine in Queensland led to higher production, higher sales, lower costs and improved margins in the second quarter, with improved results "expected to continue for the remainder of the year".
Coronado said "dramatic cost and productivity gains" at Curragh will set "new benchmarks for future performance".
What they said: Coronado managing director and CEO Douglas Thompson said: "Our preference for organic growth funded by cashflows, rather than bolt-on acquisitions funded by debt and equity, has proven to be prudent in a challenging market characterised by high inflation and increasing taxes and royalties."
"With improving results and a positive outlook for the second half of the year, we have reaffirmed our previously announced FY24 guidance," he said.
The source: ASX announcement
