Bowen Coking Coal (BCB) H2 2024 earnings summary

Executive summary

• Achieved record production of 2.86Mt ROM coal and 1.94Mt clean coal sold, with steady-state operations at Burton Complex and significant cost reductions through lower strip ratios and operational efficiencies.

• Transitioned focus to low-cost, high-margin assets, closing Bluff and pausing Broadmeadow East due to operational and economic challenges.

• Completed major debt restructuring and launched a $70 million equity raise to strengthen the balance sheet and support future growth.

• Faced industry-wide headwinds including lower coal prices, increased royalties, and rising input costs, but positioned for improved performance in FY2025.

Financial highlights

• Revenue increased 114% to $450.2 million year-over-year; operating loss before tax and net finance expenses improved 55% to $68.8 million.

• Loss after tax reduced 41% to $95.5 million; cash used in operations improved 95% to $5.0 million outflow.

• Underlying EBITDA was negative $47.1 million, reflecting losses at Bluff and ramp-up costs at Ellensfield South.

• Average realised coal price fell 15.8% to $153.7/t, with coking coal at $212.9/t, PCI at $174.0/t, and thermal at $92.1/t.

• Closing cash balance at $21.7 million, down from $48.9 million prior year.

Outlook and guidance

• Expectation of improved financial results in FY2025 as steady-state production is maintained and cost reductions continue.

• Development of Plumtree North Mine to ensure production continuity; first coal expected Q1 2025.

• Market forecasts indicate potential for higher coking coal prices in the medium term.