Coronado Global Resources (CRN) Q2 2024 earnings summary

Executive summary

• Group ROM coal production rose 24% quarter-over-quarter to 7.4 million tonnes; sellable production up 22% to 4.1 million tonnes.

• Group mining costs dropped 27% to $91/tonne, driven by operational improvements and fleet demobilisation at Curragh.

• Total revenue increased 1% to $674 million despite lower coal prices.

• Safety performance improved, with group total recordable injury rate at 1.01, down from 1.18 year-over-year; both regions reported safety rates below industry averages.

• Continued investment in organic growth projects at Mammoth Underground and Buchanan, funded by operational cash flows.

Financial highlights

• Q2 revenue was $674 million, up 1% sequentially; H1 2024 revenue at $1.34 billion, down 10% year-over-year due to lower met coal prices.

• Group realized met coal price for the quarter was $195/tonne, about 80% of the Australian Premium Low Vol index.

• Net debt position at $4.7 million as of June 30, with $264 million in cash and $414 million in available liquidity.

• Year-to-date capital expenditure at $137 million, mainly for organic growth at Buchanan and Curragh.

• Capital expenditure for the quarter was $64.5 million, down 10.8% sequentially.

Outlook and guidance

• FY24 guidance reaffirmed: saleable production of 16.4–17.2 Mt, average mining costs of $95–$99/t, and capex of $220–$250 million.

• Mammoth Underground project on schedule for first coal in December 2024, pending regulatory approval.

• Buchanan’s new coal stockpile facility and hoisting capacity projects remain on track for completion in 2025.

• Market expects met coal prices to remain elevated in Q3, supported by Indian restocking and supply constraints.

• July performance has been strong, with further cost and productivity improvements expected from additional fleet demobilisation at Curragh.