Bowen Coking Coal reveals loss of more than $150m

Central Queensland coal producer Bowen Coking Coal has reported an operating loss of $152.8 million for the past financial year compared to a loss of $17.6 million in 2021-22. The company points the finger at increased operational expenditure linked to ramp-up of mining activities at Bluff and Broadmeadow East mines in 2022-23, combined with start-up operating expenditure incurred for the newly acquired Burton Complex. Production costs were lifted by inflationary pressures including rising input prices for labour, parts and materials, including diesel fuel and explosives. The loss after income tax was $162.9 million, compared to $18.3 million the previous year. In its full-year financial report, Bowen Coking Coal identified other drivers contributing to the loss including: $12.9 million for depreciation and amortisation driven by increased property, plant and equipment investment, due to assets brought into service during the past financial year; $38.0 million relating to administrative, overhead and corporate costs that support the expanding multi-mine operations; $11.1 million net finance charges, relating to the group’s fully drawn debt facilities and convertible note; and $35.6 million non-cash related expense ($19.1 million impairment and $16.5 million onerous contracts expense) relating to the Bluff mine, following the review of the recoverable value of the Bluff mine The company recently undertook a strategic review across its portfolio, stepping back from its previous goal of hitting 5Mtpa ROM coal production across its Queensland operations by 2024. The company is discussing the future operational status of the Bluff mine near Blackwater with customers, contractors and other key stakeholders. The 2022-23 financial report shows that operating expenses per saleable tonne of coal at Bluff across the year were $416.59 compared to 231.03 at Broadmeadow East. Related: Strategic shake-up for Bowen Coking Coal Bowen Coking Coal produced about 1.66 million tonnes of ROM coal across its operations for the year. It reported revenues and other income of $209.9 million in 2022-23 compared to 11.9 million in the previous year reflecting its expanding operations in that time. Operational highlights for the year ended June 30, 2023 included: Broadmeadow East pit achieved planned production rates, after the first coal mined in July 2022; Start of Ellensfield South box cut at the Burton complex; Isaac River Project gained federal environmental approval; Sumitomo Corporation committed to contribute $2.5 million in the next financial year towards the next stage of exploration at the Hillalong coking coal project.

Bowen Coking Coal reveals loss of more than $150m

Industry Queensland

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