Coronado share price slips despite record coal prices

What did Coronado reveal at the AGM today? Let’s take a look.

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Key points

  • The Coronado Global Resources share price is down 3% today 
  • However, multiple ASX coal shares are also having a tough day on the market 
  • Coronado held its AGM today, where the company highlighted record coal prices in recent times

The Coronado Global Resources Inc (ASX: CRN) share price is in the red today. The coal miner’s shares are currently trading at $2.26 apiece, a 3% fall.

The fall comes on the day of the company’s annual general meeting. Let’s take a look at what Coronado reported today.

Coal prices in focus

The Coronado share price is sliding today, but it is not the only ASX energy share to fall. The New Hope Corporation Limited (ASX: NHC) share price is down 9%, Allegiance Coal Ltd (ASX: AHQ) is slipping 7%, while the Whitehaven Coal Ltd (ASX: WHC) share price has plunged 6.3%. For context, the S&P/ASX 200 Energy Index (ASX: XEJ) is falling 1.2% at the time of writing.

The benchmark coal price has fallen 1.96% to US$400 per tonne, Trading Economics data shows.

However, in today’s AGM presentation, Coronado reported metallurgical coal index prices reached a new record price of US$670 per tonne in March 2022.

Coronado’s group metallurgical coal realised price for the first quarter of 2022 was US$267 per tonne, a 183% boost from the prior corresponding quarter. Tight supply, strong demand, and geopolitical tensions have helped drive record realised prices, Coronado noted. The company said there is long-term demand for the company’s products in Asia.

AGM address

Addressing shareholders at the AGM, chairman William Koeck said the Russia/Ukraine conflict pushed coal prices to “unprecedented levels”. He said:

While Met Coal prices are expected to moderate over the course of 2022, we anticipate they will remain elevated above historical averages due to ongoing trade restraints from Russia and China and elevated thermal coal pricing providing a floor for Met Coal prices.

Coronado revenue in the 2021 financial year jumped 47% to $2.148 billion. Looking ahead, Coronado said it will continue to take advantage of high coal prices. The company is aiming for full-year production of 18 to 19 million tonnes. The mine is weighted to greater production in the second half of the year. Koeck added:

To achieve this, we will double our investment in the business, increasing capital expenditure from $91.1 million to between $170 million and $190 million. Continually strengthening our business will allow us to take advantage of opportunities as they arise and deliver the next phase of growth.

The company has declared a $200 million unfranked special dividend to be paid on 21 June this year.

Coronado share price snapshot

The Coronado share price has ascended by 245% in the past year, while it is up 81% in the year to date.

For perspective, the benchmark S&P/ASX 200 Index (ASX: XJO) has returned nearly 2% in the past year.

Coronado has a market capitalisation of about $8.9 billion based on today’s share price.

The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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