Coronado Global Resources (CRN) Q3 2024 earnings summary

Executive summary

• Strong U.S. operational performance offset challenges in Australia, with productivity and yield improvements at Buchanan driving higher production and sales volumes quarter on quarter; group ROM production was 6.3 Mt and sales volumes 3.9 Mt for Q3 FY24.

• Australian operations at Curragh faced significant challenges due to unplanned equipment repairs, geological anomalies, and record rainfall, leading to lower production and a revision of full-year guidance.

• Major projects, including Mammoth Underground (Curragh) and Buchanan expansion, remain on budget and on schedule, funded from available cash.

• Safety performance remains strong, with a total recordable injury rate of 1.13 and Australia TRIFR at 1.54, both below industry averages.

• Cost base lowered through fleet reductions and productivity gains, especially at Curragh; further improvements expected.

Financial highlights

• Group revenue for the September quarter was $608 million; year-to-date revenue reached $1.95 billion, down 11.8% year-over-year.

• Average realized met coal price was $179.6/tonne for Q3, below the benchmark index of $211/tonne; YTD realized price was $192.6/tonne.

• Group sales volumes for the quarter were 3.9 million tonnes; year-to-date sales volumes were 11.7 million tonnes, in line with last year.

• Average mining cost per tonne sold increased to $117.7 in the quarter, with year-to-date average at $111/tonne.

• Net debt at quarter-end was $93.9 million, with a closing cash balance of $176 million and available liquidity of $326.1 million.

Outlook and guidance

• Full-year production and cost guidance revised downward due to adverse weather and operational impacts at Curragh; FY24 saleable production guidance now 15.4–16.0 Mt and cost guidance $105–110/tonne.

• North American annual contract negotiations for FY2025 are complete, with 40% of U.S. production contracted at $159/tonne.

• Positive momentum expected from India and non-Chinese steel production in the December quarter as macroeconomic conditions improve.

• Mammoth Underground first coal targeted for late Q4 2024, subject to regulatory approval.

• December quarter expected to benefit from productivity improvements and reduced costs, especially at Curragh.