Coal shares on the ASX include Whitehaven Coal Ltd (ASX: WHC), New Hope Corporation Limited (ASX: NHC). Others include Yancoal Australia Ltd (ASX: YAL) and Allegiance Coal Ltd (ASX: AHQ).

Let's take a look at what is going on.

Opportunity to 'double' coking coal exports

Steel manufacturing giant Tata Steel is warning Indian companies may need to buy from Russia if Australia does not increase coal production.

Tata Steel Limited (NSE: TATASTEEL) CEO T.V. Narendran said in comments to The Australian:

The alternative to Australian coal is Russian coal. I know currently Russia is geopolitically not the best place to buy coal from, but going forward that is an option that Indian companies have..

He touted the "great opportunity" for the metallurgical coal industry" in Australia to invest and grow in India, adding:

Indian steel consumption or production is going to double in the next 10 years, which means there's an opportunity for Australia to double its exports of coking coal shipments to India over the next 10 years.

Narendran will meet with the Queensland Government this week in a bid to build a deeper relationship with India and grow coal exports between Australia and India.

Metallurgical coal is going to be operating for quite some time to come, particularly in India.

I think…the conversation with the government is more about how
can we plan better for growth.

Whitehaven shares are lifting nearly 2% today, while New Hope shares are jumping nearly 3%. The Yancoal Australia share price is also rising more than 3% today, while Allegiance Coal is lifting nearly 6%.

The post ASX coal shares in the spotlight amid fresh supply warnings appeared first on The Motley Fool Australia.

Four ASX shares that have failed to follow the market higher today are listed below. Here's why they are dropping:

Allegiance Coal Ltd (ASX: AHQ)

The Allegiance Coal share price has continued its decline and is down a further 22% to 14 cents. Investors have been selling off this coal miner's shares this week following the release of a very disappointing update. As Allegiance Coal has been unable to successfully ramp up production to previous expectations, it has been left in a difficult position financially. In order to keep operating, the company has established a $5 million equity facility.

LiveHire Ltd (ASX: LVH)

The LiveHire share price is down 5% to 38 cents. This morning this talent technology company released its quarterly update and reported a 10% increase in annual recurring revenue to $5.7 million. This was offset by a 22% increase in quarterly cash burn to ~$2 million. This leaves LiveHire with a precariously low cash balance of just $7.3 million, down 49% year on year.

NIB Holdings Limited (ASX: NHF)

The NIB share price is down almost 3% to $7.31. This is despite there being no news out of the private health insurer. However, it is possible that it has been impacted by some investors rotating out of lower risk defensive shares and back into higher risk options today.

Pendal Group Ltd (ASX: PDL)

The Pendal share price is down over 2% to $4.33. This may have been driven by profit taking after some strong gains in recent days. This has been driven by speculation and then confirmation that the company has received another takeover proposal from Perpetual Limited (ASX: PPT). Talks are ongoing and no deal has been reached.

The post Why Allegiance Coal, LiveHire, NIB, and Pendal shares are dropping appeared first on The Motley Fool Australia.

Four ASX shares that are falling more than most today are listed below. Here's why they are dropping:

Allegiance Coal Ltd (ASX: AHQ)

The Allegiance Coal share price is down a massive 66% to 18.5 cents. Investors have been selling this coal miner's shares following the release of a very disappointing update. Allegiance Coal has been unable to successfully ramp up production to previous expectations at its two operating mines. This has left it in a precarious position financially. In order to keep the lights on, the company has established a $5 million equity facility.

Hub24 Ltd (ASX: HUB)

The Hub24 share price is down 7% to $22.13. The catalyst for this was the release of the investment platform provider's fourth quarter update. Although that update revealed that Hub24 achieved a record annual increase in platform inflows of $11.7 billion in FY 2022, its soft finish to the year appears to have spooked investors. Hub24 revealed that it finished the period with funds under administration (FUA) of $65.6 billion. This was an increase of 11.8% year on year, but down 4% quarter on quarter.

Suncorp Group Ltd (ASX: SUN)

The Suncorp share price is down over 4% to $11.27. This morning the team at Ord Minnett downgraded this insurance giant's shares to a hold rating and cut the price target on them to $13.25. It isn't a fan of the company's decision to sell its banking operations.

WiseTech Global Ltd (ASX: WTC)

The WiseTech share price is down over 5% to $44.80. As well as being hit by weakness in the tech sector, the logistics solutions software company's shares were dealt a blow from Macquarie this morning. The broker has downgraded them to an underperform rating with a $42.00 price target. The broker suspects that the company's margins may be peaking, which it fears could weigh on its valuation.

The post Why Allegiance Coal, Hub24, Suncorp, and WiseTech shares are dropping appeared first on The Motley Fool Australia.

The move follows the ASX coal miner releasing its quarterly activities and cash flow report and announcing an equity facility and strategic review.

The company's coal production was "considerably below our target" in the June quarter. The company has also secured a $5 million equity facility to tide it over while it reviews its liquidity requirements.

Allegiance Coal is focused on the development, operation, and supply of steel-making coal to the seaborne market. It has operating mines in the United States and a development project in Canada.

It currently has three mines online called Tenas, Black Warrior, and New Elk.

Allegiance share price crashes 65% on liquidity concerns

The ASX coal share has plummeted by 63.39% to trade at 21 cents at the time of writing.

Here are the key points from its activities report for the three months ending 30 June:

• Coal sales revenue totalled US$32.1M compared to US$14.5M in the prior quarter
• Cash receipts from customers of A$50.5M (approximately A$6.2M were carryover receipts)
• Positive net cash from operating activities of A$13.6M
• Run-of-mine (ROM) coal production totalled 220kt against 148kt for the March quarter. This was up 48% and "continuing the strong upward trend, but still considerably below our target".

What happened in the June quarter?

Allegiance Coal told ASX investors that "severe labour shortage within BNSF [Railway] and Union Pacific rail systems due to COVID lay-offs" had caused problems at New Elk.

This includes "a build-up of coal inventory at New Elk's rail load-out and mine stockpiles and, more critically, a delay in getting coal to port for sale".

In its statement, the ASX coal miner said:

New Elk is due to receive a second rail set end of this month which will double capacity to move coal to port notwithstanding an increase in train cycle times. Ongoing delays at McDuffie Coal Terminal caused a New Elk 80kt vessel scheduled to load on 25 June to be delayed with loading now scheduled in July.

The impact of strong commodity prices

Allegiance reported average coal sales prices of US$258/t in the June quarter against US$261/t in the March quarter.

The prices ranged from US$360/t for high-vol A to US$222/t for a trial cargo of high-vol B product.

The price for premium low-vol hard coking coal continued its recent downward trend but remained historically high.

Allegiance said thermal coal prices "look extremely strong". This is due to the European ban on Russian coal purchases, and the threat of imported Russian gas disruptions.

Allegiance said this meant "excellent opportunities for high energy low sulphur coals sales into Europe".

The company said weakening demand for steel in Asia and Europe amid recession fears had resulted in coking coal prices falling "quite dramatically" in the June quarter, with thermal coal prices now outperforming coking coal.

"We have already taken advantage of the strong prices for thermal coal contracting two small cargoes for delivery in H1 FY 23 into Europe and are assessing medium-term opportunities in this market".

What did management say?

Allegiance Coal CEO Jon Romcke said:

The results for the June quarter demonstrate the impact of strong coal prices coupled with improvement in the production capability of both the Black Warrior and New Elk mines where the quarterly ROM production figures were the best on record since Allegiance commenced operations.

Unfortunately, the ability of the mine to port logistics chain to keep pace with production has affected the timeliness of cashflow receipts for the Company from sales and inventory finance arrangements.

We are working to address the logistics constraints and improve the working capital position at Allegiance.

What's next for Allegiance coal?

Allegiance Coal has entered into a A$5 million equity facility with Regal Funds Management. It has already drawn down $3 million. In exchange, the fund will be issued with shares at a discount.

Allegiance Coal explained why it had decided to obtain the equity facility:

The Company has been unable to successfully ramp up production to previous expectations at its two
operating mines. In addition, the Company has been unable to secure medium term equipment financing at both Black Warrior and New Elk, which has driven lower than expected performance.

In light of the lack of available financing, the Company is considering different capital initiatives to fund equipment acquisition and upgrades at both mines.

Legacy coal sales contracts at New Elk, coupled with production constraints, staffing issues and poor logistics performance in transporting coal to port, have meant that the mine is running at an operating cash flow loss which has significantly constrained cash flows.

It is currently unclear if Black Warrior or New Elk have the capability to meet, within a material margin,
previously advised target production rates.

Allegiance expects to complete the strategic review before the end of August.

The value of the ASX coal miner's shares is down 71% over the past 12 months. This compares with a 9% loss for the S&P/ASX All Ordinaries Index (ASX: XAO).

The post Why did ASX coal share Allegiance just plunge 65%? appeared first on The Motley Fool Australia.

The Whitehaven Coal Ltd (ASX: WHC) share price is falling 3.88% — having earlier been down almost 11% — and Allegiance Coal Ltd (ASX: AHQ) is dropping 4.35%. The S&P/ASX 200 Energy Index (ASX: XEJ) is 0.74% in the red at the time of writing.

Other ASX coal shares to fall include New Hope Corporation Limited (ASX: NHC), sliding 7%, and Coronado Global Resources Inc (ASX: CRN), falling 2.6%. Meanwhile, Yancoal Australia (ASX: YAL) is in a trading halt.

Let's take a look at what could be impacting ASX coal shares today

Coal prices fall

ASX coal shares appear to be reacting to a decline in the coal price. Coal prices have descended 1.96% to US$400 per tonne, Trading Economics data shows.

Meanwhile, ministers from the G7 are considering phasing out coal energy by 2030. The energy, climate, and environment ministers are meeting in Berlin from Wednesday to Friday. A draft meeting document seen by Reuters states:

We commit to phase out domestic unabated coal power generation and non-industrial coal-powered heat generation aiming at the year 2030.

New Hope shares are declining today amid the company releasing its quarterly results. Coal sold in the quarter fell by 26.7% compared to the previous quarter.

Unseasonal rainfall and COVID-19 impacts on the workforce led to a "challenging quarter" at the company's Bengalla operations in NSW. This operation lost 20,354 hours due to weather and labour issues. Despite this, the company reported thermal coal prices hit record highs after the Russian invasion of Ukraine.

In today's AGM, Coronado Resources also highlighted Australian average index coal prices jumped by 32% in the first quarter of 2022. Spot prices hit a peak of US$670 per tonne in March.

Chairman William Koeck said he expects coal prices to moderate in 2022 but remain higher than historical averages. He attributed this to trade restraints from Russia and China and elevated thermal coal pricing "providing a floor" for metallurgical coal prices.

Coal miner Yancoal entered a trading halt today pending an announcement. As my Foolish colleague Aaron reported, the company share price is frozen pending a potential market transaction. Media speculates parent company Yankuang could be considering a bid for Yancoal.

Share price snapshot

The S&P/ASX 200 Energy Index (ASX: XEJ) has surged 27% in the past year, while it is rising 25% year to date.

Among ASX coal shares, the Whitehaven Coal share price has surged 236% in a year, while New Hope has soared 186%. Yancoal has soared 191% in a year, while Coronado has rocketed 249% and Allegiance is holding steady.

Meanwhile, the S&P/ASX 200 Index (ASX: XJO) has climbed 0.38% in the past year.

The post Why are ASX coal shares sliding today? appeared first on The Motley Fool Australia.

Earlier today, the coal miner's shares were up 7.21% to an intraday high of 59.5 cents. They have since partially retreated and are swapping hands for 56.5 cents apiece, a 3.67% gain on yesterday's closing price.

What did Allegiance announce?

Investors are pushing the Allegiance Coal share price higher after the company updated its near-term production guidance from its Black Warrior and New Elk mines.

By November 2021, clean coal production from both its high-vol A hard coking coal Black Warrior mine and the high-vol B coking coal New Elk mine is forecast to exceed 100,000 tonnes per month. However, in the 2022 calendar year, this number is expected to reach 120,000 tonnes per month, slightly under an annualised rate of 1.5 million tonnes.

The improved guidance comes off the back of the Black Warrior mine in Alabama ramping up clean coal production efforts. Allegiance stated its strategy is to increase production from the mine, and transition from a domestic to an export focus.

The company is acquiring new large-scale mining equipment, as well as adding a night shift to increase production. The new excavator is expected to remove three times as much waste rock as the mine's existing 3 excavators. In addition, 4 new 200-tonne haul trucks are set to replace some of the 18 60-tonne fleet.

Investors seem to have reacted positively to this news, pushing up the Allegiance Coal share price.

What's happening at the New Elk mine?

The company also provided an update on its New Elk mine. It noted the start-up has been slower than planned due to some of the workforce contracting COVID-19 and the shortage of housing near the mine.

Discussions are currently being held with the mayor's office of the City of Trinidad to create an immediate housing capacity. It's projected the issue will be solved by the end of the year.

The mine has one production unit manned, but the second unit has been unable to restart so far. New employees are due to arrive on site this week to begin operations.

As a result, there's been a delay in the shipment of 280,000 tonnes of coking coal to Asian steel mills. The first of four shipments are scheduled for completion this December, with the remainder in Q1 2022.

About the Allegiance Coal share price

Over the past 12 months, Allegiance shares have tracked upwards of 70%, with year-to-date gains of close to 50%. The Allegiance Coal share price reached a 52-week high of 78 cents in June before some profit-taking took place.

Based on today's price, Allegiance commands a market capitalisation of around $195.6 million and has roughly 329 million shares outstanding.

The post Why the Allegiance Coal (ASX:AHQ) share price is climbing today appeared first on The Motley Fool Australia.

Earlier today, the Allegiance share price reached a new all-time high of 78 cents,18% higher than yesterday's close.

Price of coal

The coal miner's share price gains come while the price of coal is skyrocketing ­and China is attempting to cool it. Increasing global demand – alongside China's embargo of Australian coal ­– has sent the commodity's price soaring.

Currently, one tonne of coal is selling for US$107.04.

But enough of politics and commodity prices, let's look at what Allegiance has been up to lately.

Recent news

The last time we heard from Allegiance was in late May.

Then, Allegiance updated the market with news it had started production at the Blue Seam of its New Elk coal mine in the United States.

The operation's start date had previously been delayed due to COVID-19 impacts.

According to Allegiance, the delay allowed it to sell 4 lots of 70,000 tonnes of cargo from the site to Asian steel mills. It was also in talks to sell another 10,000 to 20,000 tonnes to a steel mill in Europe.

Allegiance share price snapshot

2021 has been good to the Allegiance share price on the ASX. It's gained 93% since the beginning of the year. It is also 110% higher than it was this time last year.

Allegiance has a market capitalisation of around $185 million, with approximately 280 million shares outstanding.

The post The Allegiance Coal (ASX:AHQ) share price is up 13% today appeared first on The Motley Fool Australia.

At the time of writing, shares in the coal miner are trading for 60 cents each – up 8.18%.

Let's take a closer look at today's announcement and what it might mean for the Allegiance Coal share price.

Allegiance Coal's latest update

In a statement to the ASX, Allegiance Coal advised that production has started at the Blue Seam in the New Elk coal mine in Colorado, United States.

Operations were scheduled to start 3 weeks ago but were delayed due to issues obtaining regulatory approval. The company stressed the delays were a result of COVID impacts on the regulator's office in Colorado and not due to any material issues with the mine.

During this delay, the company was able to secure the sale of 4x 70,000 tonnes of cargo from the site to steel mills in Asia.

Allegiance did not disclose the sale price but did state it was "at fixed price levels providing a margin above free-on-board (FOB) cash costs for New Elk.

The company also said it was in discussions to sell another between 10,000-20,000 tonnes of coal to a steel mill in Europe. These sales may pique the interest of investors and affect the Allegiance share price.

Finally, Allegiance also announced Mike Madden — a longtime executive at Warrior Met Coal — would join its staff as a sales in expert in the global and US coal markets.

Allegiance share price snapshot

Over the past 12 months, the Allegiance share price has increased 54.9%. At the same time, the price of coal is at its highest price in 2 years, trading for US $102.5 a tonne. However, its share price is still 29% lower than the first trading day of 2020, before the onset of the COVID-19 pandemic.

Allegiance Coal has a market capitalisation of $153.4 million.

The post Allegiance (ASX:AHQ) share price shoots 8% higher after new mine opens appeared first on The Motley Fool Australia.

At the time of writing, the Allegiance Coal share price is up 14.2%, trading at 12 cents.

GEAR has also agreed to provide US$27 million in funding to New Elk Coal Company, a wholly-owned subsidiary of Allegiance Coal located in the US state of Colorado.

The Allegiance Coal share price is 10.5 cents at the time of writing.

Allegiance Coal is an Australia-based company engaged in the acquisition and exploration of coal tenements. The company's projects include Telkwa Metallurgical Coal, Tenas Metallurgical Coal, Back Creek Project, New Elk Mine, and the Kilmain Project.

Allegiance Coal and GEAR's partnership

GEAR's US$27 million funding for New Elk Coal is for the reconstruction of the 27-mile rail spur from a main rail line to the New Elk Mine.

Allegiance Coal says this is a crucial investment, as it removes the restriction on production tonnes allowed to be trucked on the road and instantly reduces cash costs by US$6 per tonne.

These investments underwrite Allegiance's growth plans for the New Elk Mine. They are currently budgeted to be funded from retained earnings generated from the first production unit, which is expected to start mining later this month.

GEAR's $15.5 million placement in Allegiance Coal is priced at $0.09 per share.

Funds raised under the placement will be used to accelerate production at the New Elk Mine and, in particular, to refurbish the second production unit, which would have otherwise been funded from retained earnings.

What Allegiance Coal management said

Allegiance Coal chair Mark Gray welcomed the investment, saying:

I am delighted to announce this investment, and welcome GEAR as a shareholder, in our company.

While we are fully funded in our plans to recommence mining at New Elk, the insurance that GEAR's investment and commitment provides our company in terms of its growth and development, is of enormous comfort to the board.

Allegiance Coal share price snapshot

The Allegiance Coal share price has returned 52% over the past 12 months and is up 13% against the basic materials sector. It's also up 26% against the S&P/ASX 200 Index (ASX: XJO). 

The post Allegiance Coal (ASX:AHQ) share price is rocketing 14% today. Here's why appeared first on The Motley Fool Australia.

Today's big share price gains followed on an earlier announcement, released this morning, relating to the company's New Elk coking coal mine. That mine is located in southeast Colorado in the United States.

What did Allegiance Coal report to send its shares up 40%?

In this morning's ASX release, Allegiance Coal delivered a progress report stating that its New Elk start-up mine plan has been finalised. The company expects production, subject to raising the start-up capital requirement, to start in the second quarter of 2021.

Back in April, Allegiance Coal announced its New Elk mine plan involves mining 22.2Mt of saleable coal reserves from the Blue seam. Today's release revealed a change in rescheduling labour and equipment by a reduction in production units from four to two. This means the coal reserves will be mined over a period of 24 years instead of 15.

Earlier in December, the company reported that its acquisition of the Pratt seam coal from Mays Mining, Inc would offset the loss in annual sales from the reduced rate of production at Blue seam.

The reduced production units have seen the start-up capital required also reduced to US$13.5 million (AU$17.8 million) from the initial US$24 million. The company plans to fund this with project debt.

According to the release, coal sales should commence in June 2021 at 75ktpm. Allegiance Coal plans to increase this to 137ktpm by December 2021. It reported it expects to mine 40ktpm of Blue seam coal from June 2021, with that level increasing to 73ktpm by December. The company also plans to mine 35ktpm of Pratt seam coal from June 2021, with that level increasing to 64ktpm by December.

At the end of next year, Allegiance forecasts its annualised coal sales will hit 1.6Mt , a level it expects to maintain over the following years.

With both assets located in the US, the company noted that the Chinese ban on Aussie coal has created short-term opportunities for US coking coals.

Allegiance Coal snapshot

Allegiance Coal is an Australia-based company engaged in the acquisition and exploration of coal tenements.

Allegiance shares had a rough start to the year, tumbling 63% by 24 March. Despite today's 40.3% leap, the Allegiance share price remains down 50% year-to-date.

For comparison the broader All Ordinaries Index (ASX: XAO) is up 2% for the year.

The post Why the Allegiance Coal (ASX:AHQ) share price rocketed 40% higher today appeared first on The Motley Fool Australia.