Bowen Coking Coal has a spring in its step after delivering a record half-year earnings before interest, tax, depreciation and amortisation (EBITDA) of $23.7 million for the six months ended December 31, 2024.

The company’s HY 2025 results were also highlighted by positive cashflow generation, improved liquidity, and a 10.4 per cent reduction in unit costs to $148.9 per tonne (freight on board) compared to the previous comparative period.

Main image: BCC’s Plumbtree North operation

Bowen Coking Coal had turned a corner, chief executive officer Daryl Edwards said.

“The company rallied together and delivered upon a shared objective to improve our operational and financial performance,” he said. 

“With the support of our staff, customers, suppliers and investors, our business delivered a record half-year EBITDA result, despite a 16 per cent decline in headline premium low-volatile (PLV) coking coal prices. 

“Operationally, our business delivered 9 per cent higher run-of-mine (ROM) production tonnages at a unit cost 10 per cent lower than the prior year.  

These results were driven by improvements across the entire operation, Mr Edwards said.

 “… greater efficiencies in waste removal, coal mining, processing and haulage combined with 57 per cent lower strip ratios.  

“These productivity improvements have allowed the group to invest in future growth at the Plumtree North operation where box-cut development works remain on track. 

“At a corporate level, we also successfully completed several transactions to strengthen the balance sheet and improve liquidity including a $70 million equity raise, 10 per cent sale of our Broadmeadow East Mine, and successful restructuring of existing debt arrangements and extension of repayment terms. 

“As we move into the second half of the year, I am pleased to confirm our previously announced market guidance metrics remain firmly on target.”

Half Year Highlights

• Record half-year EBITDA of $23.7 million (HY 2024: EBITDA loss $57.0 million), 142% improvement. 
• Operating profit of $2.6 million (HY 2024: Operating loss $54.6 million), 105% improvement. 
• After accruing $21.7 million in QLD State Government royalties, Bowen posted a loss after income tax expense of $8.7 million (HY 2024: $65.1 million loss), 87% improvement. 
• Cash generated from operating activities of $15.6 million (HY 2024: $22.4 million), 31% reduction. 
• Closing cash on hand balance of $54.4 million (30 June 2024: $21.7 million), 151% improvement. 
• Unit costs (FOB) of $148.9/tonne (HY 2024: $166.2/t), 10% improvement 
• Completed the sale of 10% of Broadmeadow East to MPC Lenton Pty Ltd, for $13 million cash plus royalties. 
• Completed a $70 million equity raise through a 2.66-for-1 pro-rata renounceable entitlement offer at $0.009 per share; and 
• Restructured debt arrangements, extending the repayment terms of senior and subordinated loan facilities.