Coronado Global Resources - Half Year 2024 Financial and Operational Results
CRN (CRN) Share Update August 2024 Monday 5th
Coronado Global Resources Reports Strong Operational Gains in HY24
Coronado Global Resources Inc. (ASX: CRN) has released its half-year financial results for the six months ending 30 June 2024, showcasing notable operational improvements and strategic investments.
Instant Summary:
- Completion of operational improvements at Curragh leading to higher production and lower costs.
- Group revenue of $1.342 billion, down 10% from HY23 due to lower Met Coal prices.
- Net income of $16.2 million, a significant decrease from $199.2 million in HY23.
- Adjusted EBITDA of $135.4 million, down 61.6% from HY23.
- Available liquidity of $414 million as of 30 June 2024.
- Declaration of a bi-annual fully franked dividend of USD 0.5 cents per CDI.
Operational Improvements
Coronado Global Resources has completed significant operational improvements at its Curragh mine, resulting in higher production, higher sales, lower costs, and improved margins in Q2 2024. The company has also commenced mining in the Buchanan southern district with steady yield improvements month-on-month.
Investments in organic growth projects at Buchanan and Curragh (Mammoth Underground) continue to be funded from existing operational cashflows, without the need for raising additional debt or equity. Coronado has reaffirmed its previously announced FY24 guidance.
Financial Performance
Group revenue for HY24 was $1.342 billion, a 10% decrease compared to HY23, primarily due to lower average Met Coal prices. The Group's average realised Met Coal price was $199.3 per tonne, reflecting a 72% realisation to the average HY24 Australian Met Coal index price.
Net income for HY24 was $16.2 million, a significant decrease from $199.2 million in HY23. Adjusted EBITDA was $135.4 million, down 61.6% from HY23. The Group's available liquidity was $414 million as of 30 June 2024, with a closing net debt position of $5 million.
Health and Safety
The safety and well-being of Coronado's workforce remain a top priority. The Group's Total Reportable Incident Rate (TRIR) as of 30 June 2024 was 1.01, reflecting a 14% year-on-year improvement.
Dividend Declaration
Coronado's Board of Directors has declared a bi-annual fully franked fixed dividend of USD 0.5 cents per CDI, amounting to $8.4 million. The dividend record date is 28 August 2024, and the payment date is 18 September 2024.
The operational improvements and strategic investments are expected to positively impact Coronado's stock, despite the decrease in revenue and net income. The reaffirmation of FY24 guidance and the declaration of a dividend indicate confidence in future performance.
Investor Reaction:
Analysts are likely to react positively to the operational improvements and strategic investments. However, the significant decrease in net income and adjusted EBITDA may raise concerns among some investors.
Conclusion:
Investors should monitor Coronado's continued operational improvements and strategic investments, as well as the final valuation release on 23 August 2024. Coronado's ability to maintain its positive momentum will be crucial in sustaining investor confidence.