Stock in S&P/ASX 200 Index (ASX: XJO) coal producer and 2022 dividend winner Coronado Global Resources Inc (ASX: CRN) is tumbling on Tuesday despite the company posting record full-year results and shareholder returns.
The Coronado share price is currently $2.095, 2.1% lower than its previous close.
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Coronado share price powers down on earnings update
Here are the key takeaways from the company's quarterly earnings:
- December quarter revenue reached US$717 million – an 18% quarter-on-quarter fall
- Quarterly run of mine (ROM) coal production lifted 4.4% to 6.7 million tonnes
- Quarterly saleable production came in at 4.3 million tonnes – a 4.4% jump
- Full-year revenue, however, came to a record US$3.57 billion – a 66% increase
- The company also paid a record US$700 million in dividends over 2022
- It ended last year with a US$92 million net cash position and US$434.4 million of liquidity
Coronado says the benchmark index price of Australian coking coal averaged at US$278 per tonne last quarter – up from US$250 a tonne in the September quarter.
Meanwhile, the benchmark index price of US coking coal was US$273 – up from US$259 in the prior quarter.
However, wet weather, inflation, and planned maintenance saw its average mining costs increase 34.5% to US$88.40 per tonne in 2022.
Meanwhile, its capital expenditure more than doubled to US$185.4 million last year as the company worked to improve production rates.
What else happened in the December quarter
The Coronado share price rose 13.7% last quarter while the ASX 200 gained 8.7%.
The company repaid U$72 million of senior secured notes obligations in the December quarter and increased its coal production despite increasingly heavy rainfall at its Australian operation.
It also paid out a 14.1 cent special dividend in December.
What did management say?
Coronado CEO Gerry Spindler commented on the news seemingly weighing on the ASX 200 stock today, saying:
Our record financial results and returns have occurred despite the impacts to production from considerable wet weather conditions in Queensland and global economic circumstances that have driven significantly higher inflation.
Expectations are that weather patterns will improve in 2023 and global inflationary impacts will ease, which should translate to improved production and costs for our business.
However, should these events, which are outside of our control continue, I remain extremely confident in our ability to address all challenges presented to the company and in our ability to continue to provide enhanced value and returns to all shareholders.
What's next?
The market can expect to hear from the ASX 200 stock on 22 February when it releases its annual report and financial year 2023 guidance.
The company will also boast a new CEO shortly, with current chief operations officer Douglas Thompson taking the reins in May. Meanwhile, Spindler will take on the role of executive chair.
Coronado expects metallurgical coal prices to remain above historical averages in 2023. It will likely be supported by elevated thermal coal prices, the removal of Russian coal from key markets, rising demand for steel, and China's reopening.
Coronado stock outperforms ASX 200
While the Coronado share price is tumbling today, the stock has outperformed the ASX 200 in recent months.
It has gained 10% so far this year compared to the index's 7.8% gain.
Coronado shares have also soared 48% over the last 12 months. Meanwhile, the ASX 200 has dropped almost 5%.
