Coal

Stanmore, Terracom and Coronado shares slammed as Queensland increases coal royalties

Tue 21 Jun 22, 3:01pm (AEST)
Coal 4 Emissions Greenhouse
Source: iStock

Stocks in article

crn
MktCap:
-
smr
MktCap:
-
ter
MktCap:
-

Commodities in article

Share article

Key Points

  • The Queensland budget is set to introduce a progressive three tier royalty on coal sales
  • Terracom, Stanmore and Coronado are the miners most affected
  • Coal miners share prices swing violently, with Stanmore down -20% from a +8% open

ASX coal stocks are plummeting after the Queensland government announced a massive royalty hike for local coal miners. 

Treasurer Cameron Dick said Queensland expects a surplus of $1.91bn for 2021-22, reflecting stronger-than-expected housing and labor markets, and increased royalties from coal and oil companies.

The government is introducing an additional three tier royalty rate tiers for coal sold, disposed of or used on or after 1 July 2022.

  • 20% for prices above $175/t

  • 30% for prices above $225/t

  • 40% for prices above $300/t

The royalty was previously 15% for prices over $150/t.

“The additional tiers of coal royalty rates will ensure during future periods of high coal prices that the royalty return to the people of Queensland is appropriate for the use of the state's valuable and limited natural resources,” the budget notes. 

Which ASX coal companies are at risk?

Coal companies with Queensland based projects include:

Massive intraday swing

Before the news broke out, all three affected coal names were all up around 8% on Tuesday.

Now, as at 3:00 pm AEST:

  • Terracom -5.9%

  • Stanmore -20.5%

  • Coronado -9.7%

Terracom, Stanmore and Coronado price charts
Coronado, Stanmore and Terracom intraday price charts (Source: TradingView)

 

Written By

Kerry Sun

Finance Writer & Social Media

Kerry holds a Bachelor of Commerce from Monash University. He is an avid swing trader, focused on technical set ups and breakouts. Outside of writing and trading, Kerry is a big UFC fan, loves poker and training Muay Thai. Connect via LinkedIn or email.

Get the latest news and media direct to your inbox

Sign up FREE