Curragh coal owner riding high on bumper prices

Coal producer Coronado Global has reported another record three months for revenue as the Russia- Ukraine conflict pushed seaborne metallurgical coal prices to the highest levels in history. And the company - which operates Curragh mine near Blackwater as well as USA sites - expects the bull run to continue into the next quarter. "Met coal prices and revenues for shipments from our U.S. and Australian operations reached record levels during the quarter and remain elevated due to strong global demand and disrupted Russian coal supply," chief executive officer Gerry Spindler said. "Due to our coal contracts in general being on a three-month lag basis, we expect June quarter realised pricing to improve further. "Chinese steel production recovered quickly after the end of the Winter Olympics due to the lifting of steel output restrictions but have seen a recent weakening in sentiment following COVID-19 lockdowns which have disrupted the logistics chains of raw materials and steel end-users. "We expect, over time, China steel production to return to typical levels and maintain U.S. coal imports throughout 2022 while retaining the Australian coal embargo." He said Coronado expected metallurgical coal prices to moderate from their current highs over the courseof 2022 but to remain elevated above historical averages. Ongoing trade constraints from Russia and China would drive this, along with elevated thermal coal prices providing a floor for met coal prices. Group revenue for the March quarter hit $1.3 billion ($US947 million), up 22.3 per cent on the previous record revenue December quarter of around $1 billion ($US775 million). The Curragh operation achieved ROM production for the March quarter of 3.5 Mt (up 3.9 per cent), saleable production was 2.7 Mt (up 2.9 per cent on the past quarter. The operation has stepped up capacity with the introduction of a seventh mining fleet in the Curragh Main mining area, with a focus on waste removal. It is also well advanced in establishing previously announced dry-hire arrangements at the CurraghNorth mining area, which will see the conversion of four fleets to a Coronado-operated model. In the March quarter, Curragh realised an average met coal price of $305.8 per tonne (FOB), 33.7 per cent higher than the December quarter and a record for the segment. In a statement to the ASX, Coronado said Curragh’s focus for the June quarter and the remainder of2022 was to continue implementing the ‘One Curragh Plan’ to drive operational performance to the mine plan, ensuring greater coal availability. Planned maintenance activities to one of Curragh’s draglines and the CHPP facilities are planned for the June quarter. Highwall mining activities are scheduled for the second half of the year.

Curragh coal owner riding high on bumper prices

Industry Queensland

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