Shares jump 6 per cent after Coronado reports half-year profit of more than $US560 million.
Shares in Coronado Global Resources jumped more than 5 per cent after the miner posted a $945 million turnaround in half-year profit thanks to surging coal prices, which are helping to underwrite record trade surpluses and bumper results for producers.
Its average realised price nearly tripled to a record $US292.80 a tonne, versus $US99.80 a tonne a year earlier. The price of coking coal – used for steelmaking – topped $US400 a tonne this year but is now trading at about $US215 a tonne. Coronado declared a dividend of US75¢ per Chess Depository Interest, after omitting to pay a dividend at the same time last year.Shares rose as much as 6 per cent to hit a more than one-month high, and closed up 5.6 per cent at $1.60.
Coronado said as a result, it was likely to meet the lower end of its supply market guidance of between 18 million and 19 million metric tonnes, exceeding production levels one year earlier of 17.4 million tonnes.Still, Mr Spindler said he expected Coronado to continue to profit from the strong market conditions.
Coronado is the latest company to report surging profits as a result of a global energy crunch, capping a rapid turnaround for coal operators.China’s ban on Australian coal in 2020, combined with weather and pandemic-related disruptions to mines in several nations – including multiple flooding events in NSW – droveprompted many coal consumers to blacklist Russian products and push prices even higher.
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