Russia/Ukraine war provided tailwind for Coronado: Quarterly revenue up 22%

Coronado Global Resources (ASX: CRN) was up 2.57% at the close following revelations the Australian metallurgical (Met) coal producer had achieved its highest quarterly revenue to date.

Management also guided to another strong quarter ahead with geopolitically tensions providing further tailwinds courtesy of higher prices.

The company benefitted from higher MET coal prices in the March quarter, with revenue for the coal producer up 22% (at US$947m) for the period due to a 24.4% rise in average pricing to $US267 a tonne, despite a lift in average production costs.

In light of the company’s strong financial position, Coronado recently announced a surprise US9c dividend and will look to buy back US$100m of debt.

Highlights for the period ending 31 March 2022 include:

• Group run-of-mine production of 6.7m tonnes, increasing 5% from the prior quarter

• Saleable production of 4.2m tonnes, up 3.5% from the prior quarter

• Record quarterly realised metallurgical coal price of US$267 per tonne

• Mining cost per tonne for the March quarter of US$76.3 per tonne

• Closing net cash position at the end of the quarter of US$257m

• Fixed annual dividend policy of US$0.010 cents per CDI announced

Record levels

Met coal prices and revenues for shipments from US and Australian operations reached record levels during the quarter, and management expects these to remain elevated due to strong global demand and disrupted Russian coal supply.

“Due to our coal contracts in general being on a three-month lag basis, we expect June quarter realised pricing to improve further," the company noted.

Reflecting on the past quarter, CEO Gerry Spindler commented:

Coronado was one of the first pure-play coal operators in the world to return to a net cash position following the impacts of COVID-19 and lower price cycle.”

“Our balance sheet is strong, and we are delivering on our capital management plans as promised.”

Coronado Global Resources: A 12-month share price snapshot.