Coronado Global Resources (ASX:CRN), an international coal mining company headquartered in Brisbane, reported $608m in group revenue for Q3 FY24, down 9.7% from the previous quarter and part of a year-to-date revenue total of $1.95bn — 11.8% lower than the same period in 2023. The revenue dip reflects weaker market conditions, driven by a 10.6% decline in the PLV HCC FOB AUS coal index and a drop in US domestic contract pricing. (The Premium Low-Volatile Hard Coking Coal Free On Board Australia index is a benchmark price index for high-quality, low-volatile hard metallurgical coal exported from Australia.) The company’s average realised price per tonne of metallurgical coal also declined, adding to the revenue strain compared to last year.
Production at Coronado’s Curragh complex in Australia faced obstacles, with significant weather disruptions and equipment issues resulting in reduced output. CEO Douglas Thompson commented on the challenges, saying, “The skill and resilience of our people allowed us to remain focused on our growth strategy, even when faced with operational challenges.”
The company adjusted its production and cost guidance, aligning Curragh’s capacity with revised production volumes, reducing fleet sizes, and enhancing dragline productivity to offset increased operational costs. Saleable production was reduced to a range of 15.4–16.0 million metric tonnes (MMt), down from the original guidance of 16.4–17.2 MMt. Average mining cost per tonne sold was increased to $105–$110 from the previous $95–$99.
The company's US segment, however, saw stable output, supported by improved yield at the Buchanan mine and a focus on operational efficiency. To strengthen its balance sheet, Coronado completed a $400m Senior Secured Notes issuance in October at a 9.25% interest rate — an improvement from the previous 10.75% on outstanding notes. This refinancing allows Coronado to navigate volatile markets with enhanced liquidity.
Looking ahead, Coronado will continue implementing productivity improvements at both US and Australian operations, with upcoming projects like the Mammoth Underground development set to support long-term growth and cost control. The company remains cautious as macroeconomic uncertainties persist in the steel and coal markets.
