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- Coronado Global Resources (CRN) posts sturdy cash and earnings growth over 2021, with revenue almost US$2.15 billion for the full calendar year
- This represents revenue growth of 47 per cent compared to 2020, with net income up 184 per cent to US$189.4 million and EBITDA up 804 per cent to US$486.1 million
- All this came on top of a marginal improvement in Coronado’s production of saleable Met coal, which amounted to 17.4 million metric tonnes (MMt) for 2021
- Coronado gave an annual production guidance of between 18 MMt and 19 MMt, with mining costs per tonne sold expected to land between US$69 million and US$71 million
- Shares in Coronado Global Resources are up 3 per cent to $1.55
Metallurgical coal producer Coronado Global Resources (CRN) has posted sturdy cash and earnings growth over 2021, with revenue almost US$2.15 billion (A$3 billion) for the full calendar year.
This represents revenue growth of 47 per cent compared to 2020, with Coronado citing surging Met coal prices for the bump.
The company tabled net income of US$189.4 million (A$262 million) over 2021, reversing the net loss of US$226.5 million (A$313 million) posted the year before.
Meanwhile, adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) grew a whopping 804 per cent to US$486.1 million (A$673 million).
All this came on top of a marginal improvement in Coronado’s production of saleable Met coal, which amounted to 17.4 million metric tonnes (MMt) for 2021 compared to 17 MMt the year before.
The company had US$538 million (A$745 million) in available liquidity at the end of December.
In light of the annual results, Coronado announced a US$0.09 (A$0.12) dividend for the full year.
Coronado Managing Director and CEO Gerry Spindler said the company finished the year in a “very strong” financial position.
“We delivered substantial increases in revenue, EBITDA and net profit and returned the balance sheet to a net cash position,” Mr Spindler said.
“The Coronado team has again responded exceptionally well to the challenges presented throughout the year as we continued to navigate the Covid-19 pandemic and general economic and geopolitical uncertainty.”
He said the positive annual results, while certainly driven by high coal prices, were a testament to the company’s “hard decisions” in 2021 to restructure its debt arrangements. Specifically, Coronado completed a major US$550 million (A$761 million) refinancing plan to enhance its liquidity and provide a more flexible capital structure in the future.
Met coal demand to remain strong
Looking ahead, Coronado said it predicted demand for Met coal to continue to grow even through to 2050, pushing seaborne trade for the commodity higher by a third over the next three decades.
The company said seaborne trade for Met coal was expected to grow from 301 MMT in 2021 to 403 MMT by 2050. India will be a key driver of this demand growth, Coronado said, given its significant potential for urbanisation and industrialisation.
With Indian crude steel production to increase from 115 MMt in 2021 to 380 MMt by 2050, Met coal imports are expected to surge.
As such, Coronado said it was focusing on optimising production levels to meet the predicted uptake in demand and make the most of the heightened price environment.
What’s next for CRN?
Coronado said it was expecting capital expenditure of between US$170 million and US$190 million (A$235 million and A$263 million) for 2022 as it worked to maintain a healthy liquidity position and solidify its production base.
Meanwhile, the company gave an annual production guidance of between 18 MMt and 19 MMt, with mining costs per tonne sold expected to land between US$69 million and $71 million (A$95.5 million and A$98 million).
“As we look to 2022, the prospect of prolonged higher Met coal prices is apparent as demand for steel continues to rise and outstrips supply in the short term,” Mr Spindler said.
“Coronado is targeting improved production rates in 2022 to take advantage of higher prices, continue to focus on cost control, and work to strengthen all aspects of our business so that we can take advantage of opportunities as they arise and prepare the company for the next phase of growth.”
Shares in Coronado Global Resources were up 3 per cent to $1.55 at 1:47 pm AEDT.
