Shares in coal miner Coronado Global Resources Ltd (ASX: CRN) surged more than 10% on Thursday after the company reported strong growth across all of its key metrics as well as better-than-expected operational costs.
The company said in its quarterly statement to the ASX on Thursday that its saleable production for the quarter came in 21% higher than for the previous quarter at 4.5 million tonnes, which was the best result since 2021.
Managing director Douglas Thompson said the company had "another strong quarter" and had good momentum.
He added:
Our performance is expected to continue to improve into the fourth quarter, with our expansion projects scheduled to hit planned run rates by the end of year and the continuation of benefits from our cost reduction programs. The Buchanan expansion project and Mammoth are forecasted to generate an additional circa three million tonnes (annualised) of saleable production. These projects are also expected to result in lower unit cost and drive significantly improved earnings and cash generation.
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Cost controls working
The company said it was the second quarter in a row where the company's unit production costs had come in below guidance, with the month of September "well below guidance at $80 per tonne".
Mr Thompson said pricing for metallurgical coal remained "persistently low, but the company was implementing new cost saving initiatives in response".
He said:
These initiatives included reductions in both operating and capital expenditures, rephasing of project timelines, and optimisation of working capital. These actions continue progressing well to deliver liquidity improvements of approximately $80 million over the course of 2025, with about $25 million delivered in the quarter.
Mr Thompson said, looking to the future, the company remained confident in the strength of its asset base.
Our high-quality, long-life coal reserves, strategically located operations, highly sought-after products and well-established relationships with customers in high growth markets provide a solid foundation for long-term value creation.
Coronado's realised price per tonne of coal came in at US$145.10 for the quarter, down 1.6% on the previous quarter and 30.1% down on the same period last year.
The company said it expected "a gradual strengthening in metallurgical coal prices'', underpinned by a recovery in global steel production outside China, including sustained growth in Indian steel output.
Coronado shares jumped following the release of the quarterly report, changing hands for 32.5 cents, up 12.1% by early afternoon.
Coronado was valued at $486.2 million at the close of trade on Wednesday.
