Bowen Coking Coal (BCB) H2 2024 earnings summary

Executive summary

• Revenue more than doubled to $450.2 million for FY2024, driven by increased production and sales from the Burton Complex and Ellensfield South Mine, despite challenging coal price declines and operational headwinds.

• Operating loss before tax and net finance expenses improved 55% to $68.8 million, with net loss after tax at $95.5 million, a 41% improvement year-over-year.

• Strategic review led to pausing underperforming assets (Bluff and Broadmeadow East) and focusing on low-cost, high-quality Ellensfield South, achieving steady-state production in Q4.

• Major refinancing and equity raises provided liquidity, but closing cash fell to $21.7 million from $48.9 million, reflecting ongoing development and debt service.

• Subsequent to year-end, a 10% sale of Broadmeadow East to Formosa completed, with proceeds used to reduce senior debt.

Financial highlights

• Revenue: $450.2 million, up 114% from $209.9 million in FY2023.

• Operating loss before tax and net finance expenses: $68.8 million (FY2023: $152.8 million loss).

• Net loss after tax: $95.5 million (FY2023: $162.9 million loss).

• Cash used in operating activities: $5.0 million (FY2023: $105.1 million).

• Closing cash: $21.7 million (FY2023: $48.9 million).

• Underlying EBITDA: $(47.1) million, reflecting improvement but still negative.

Outlook and guidance

• Focus remains on ramping up Ellensfield South and developing Plumtree North to sustain production as Ellensfield South depletes.

• Debt restructuring and potential equity raise underway to address liquidity and working capital constraints.

• Market headwinds from lower coal prices and high state royalties expected to persist.