Coronado Beset By Poor Prices, Higher Costs
This story features CORONADO GLOBAL RESOURCES. For more info SHARE ANALYSIS: CRN
The outlook for Coronado Global Resources has been stymied by a weak March quarter featuring poor price realisation and higher costs
-Lack of clarity on causes of higher costs
-Improving metallurgical coal prices key to the outlook
-Yet ramp-up in net debt a concern
By Eva Brocklehurst
An apparent inability to take advantage of coal pricing combined with higher costs has clouded the outlook for Coronado Global Resources ((CRN)), raising concerns about debt covenants.
Brokers were disappointed with the miner's price realisation and costs in the March quarter, which imply a first quarter cash burn of more than -$50m. Furthermore, Morgans envisages risks to unchanged cost guidance for 2021 after first quarter costs were 7% above guidance, citing the lack of a clear explanation as to why this occurred.