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- Coronado Global Resources (CRN) has entered back-to-back trading halts ahead of a capital raise
- Company shares will stay locked up until Tuesday, August 18, or when it releases an update about the raise
- Yesterday, Coronado released its half-year financial results
- It reported a net income loss after tax of US$123.2 million (nearly A$173 million) and a revenue of US$713.7 million (approximately $1 billion), which is down 42.2 per cent on this time last year
- The lower production and sales were impacted by a January shut down, Queensland’s wet weather, the slowdown of its U.S. operations and the low demand for metallurgical coal due to COVID-19 pandemic
- CEO Gerry Spindler said the first half of 2020 has been one of the most challenging times in the last 50 years for the steel and metallurgical coal sectors
- Coronado shares last traded for 82.5 cents each on August 11.
Coronado Global Resources (CRN) has entered back-to-back trading halts ahead of a capital raise.
This means company shares won’t trade until Tuesday, August 18, or when it releases an update to the market about the raise. It is uncertain how much the company is aiming to raise or what the funds will be used for.
Yesterday, Coronado released its half-year financial results. It reported a net income loss after tax of US$123.2 million (nearly A$173 million) and a revenue of US$713.7 million (approximately $1 billion), which is down 42.2 per cent on this time last year.
The company said its production and sales were impacted by a January shut down after a tragic death at its Curragh Mine Complex in Queensland.
Coronado also felt the impact from the wet weather in Queensland, the slowdown of its U.S. operations in April to May, and the low demand for metallurgical coal due to COVID-19 pandemic.
Managing Director and CEO Gerry Spindler said the first half of 2020 has been one of the most challenging times in the last 50 years for the steel and metallurgical coal sectors.
“The effects of the COVID-19 pandemic have been severe and far-reaching, and
come at a great economic cost,” he said.
“Although we experienced a number of operational issues at various mines that affected production, we have been pro-active in minimising the impact of the pandemic on the health and safety of our people at all our mine sites,” he added.
Coronado will now focus on weathering the current market conditions and taking advantage of the recovery of the metallurgical coal market, whenever that may be.
“Given the overall importance of government-backed economic stimulus post-COVID-19, we anticipate a rapid recovery in steel demand, and a return of production over time, however, the timing of the recovery is uncertain at present,” Gerry said.
Coronado shares last traded for 82.5 cents each on August 11.
