The Coronado Global Resources Inc (ASX: CRN) share price has climbed 2% in early trade after announcing a 92.7% increase in its half-yearly net profit.
What were Coronado's half-year highlights?
Coronado reported a 1.8% year-on-year (YoY) increase in production to 10.4 megatonnes (mt) while sales volumes climbed 5.3% YoY from 9.9 mt to 10.4 mt during 1H 2019.
The company reported revenue of US$1,234.3 million (A$1.82 billion) for the half, up 10.6% on its 2018 half-yearly numbers largely due to improved realised prices, a higher percentage of metallurgical coal sold and increased sales volumes.
Coronado reported earnings before interest, tax, depreciation and amortisation (EBITDA) of US$405.4 million (A$597.4 million), up 54.1% due to higher production, lower costs and improved realised prices.
Positively, Coronado's mining cost per tonne sold fell 11.1% YoY to US$51.4 per tonne, while statutory net profit after tax (NPAT) rocketed 92.7% to US$214.3 million (A$315.6 million).
Some of the other key highlights from Coronado's results included:
- Safety metrics continued to outperform national industry averages across the group with Australian rolling 12-month Total Recordable Injury Frequency Rate (TRIFR) of 5.46 and US rolling 12-month TRIR of 1.65
- The Board has declared a total interim distribution of $0.41 per share comprised of a franked dividend of $0.112 per share and capital return of $0.298 per share.
- ROM production of 16.7Mt, up 7.3% driven by operating efficiencies at Coronado's Curragh mine.
- Developed new Curragh mine plan that will target 15Mt of production per annum by 2023, additional 6Mt over the Prospectus 5-year forecast period (see separate ASX announcement on 5 August 2019)
- The Independent Directors of the Board approved the early release of 10,631,687 of the shares of common stock in Coronado held by Coronado Group LLC from voluntary escrow.
- Successfully executed the New Coal Supply Agreement with Stanwell Corporation, which concludes the acquisition of the Stanwell Reserved Area
Where to now for the Coronado share price?
The result looks positive for Coronado, with its strong EBITDA figures and 92.7% YoY increase in net profit both solid highlights for the group.
The Coronado share price has climbed just 7.8% higher so far this year, but looks set to continue to climb higher this morning on strong underlying and statutory numbers across the board.
