Coronado riding high on coal price surge

Curragh mine owner Coronado Global Resources has presented a rosy financial outlook in its latest quarterly report, with realised metallurgical coal prices surging by almost 50 per cent. The company reported a record quarterly revenue of $US774.5 million across its operations globally, up 35 per cent on the September quarter. "Met coal prices for shipments from both our U.S. and Australian operations reached record levels during the quarter and remain elevated due to a continuation of strong global demand and tight supply," chief executive officer Gerry Spindler said. "Chinese CFR Met Coal prices have corrected on the back of Chinese winter steel production cuts and a release of some warehoused Australian coking coal by customs. "Chinese steel production is expected to remain subdued in the near term as China celebrates Chinese New Year and hosts the 24th Winter Olympics in February, however, we expect China steel production to return and maintain similar levels of U.S. coal imports throughout 2022 while retaining the Australian coal embargo. "Looking beyond the near term, Coronado expects met coal prices to moderate in 2022 as supply recovers and lifts inresponse to the current high prices but remain above historical averages for the balance of 2022." Coronado's portfolio of operating mines and development projects includes sites in Pennsylvania, Virginia and West Virginia in the United States as well as its Curragh mine near Blackwater in Queensland. The company said the Australian business’s realised met coal price was $US228.8 per tonne (FOB) for the December quarter, an increase of 47.7 per cent compared to the previous quarter. Related: Coronado beefs up Curragh coal fleet The realised price for the U.S. operations of $US195.5 per tonne (FOR) was 48.6 per cent higher than the prior quarter, the company said. Coronado expects that Curragh’s average realised met coal price in the March 2022 quarter will at least mirror the December quarter. Curragh operations realised an average met coal price of $US143.1 per tonne (FOB) for FY21 sales, which was 51.6 per cent higher than the previous fiscal year. Factors including the temporary suspension of operations following a fatality in November, higher wet weather in the December quarter, and the breakdown of the bucket-wheel reclaimer in the March quarter have hampered Curragh recent production rates. Installed capacity at Curragh Main mining area will increase by introducing a seventh fleet for 12 months, commencing in February 2022. Fellow Bowen Basin coal producer TerraCom this week reported its results for the month of December, hitting an EBITDA of $19.8 million for Blair Athol operations. The operating EBITDA result was achieved from coal sales of 167,000 tonnes and represent an operating cash margin of approximately $118 per tonne.

Coronado riding high on coal price surge

Industry Queensland

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