Coronado Global Resources (CRN) H1 2024 earnings summary

Executive summary

• Achieved significant operational improvements in H1 2024, with higher production, sales, and cost reductions, especially in Q2, though net income fell 92% to $16.2M due to lower prices and higher costs.

• Group revenue for H1 2024 was $1.3 billion, with 95.7% from metallurgical coal sales; adjusted EBITDA was $135 million.

• Available liquidity at June 30, 2024, was $414 million, supporting ongoing organic growth projects and a strong balance sheet.

• Safety performance improved year-over-year, though impacted by a fatality at Buchanan; investigation ongoing.

• The Board declared a fully franked dividend of $0.005 per CDI, payable September 18, 2024.

Financial highlights

• H1 2024 group revenue was $1.3 billion, adjusted EBITDA $135 million, and net income $16 million.

• Mining cost per tonne sold was $107.7/t in H1 2024, up from $97.2/t in H1 2023.

• Paid $226 million in government royalties and rebates, and $51.5 million in stamp duty and tax interest.

• Operating cash flow (excluding stamp duty) was $63 million for H1 2024.

• Net debt at June 30, 2024, was $4.7 million.

Outlook and guidance

• 2024 guidance reaffirmed, with expectations for higher saleable production in H2 due to simultaneous longwall operations and productivity gains.

• First coal from Mammoth expected December 2024, Buchanan expansion completion in Q2 2025.

• Management expects sufficient liquidity to meet obligations over the next 12 months despite market volatility.

• Anticipates positive free cash flow by year-end if guidance is met.

• Met coal prices expected to rebound from September 2024, with long-term demand growth driven by India.