Bowen Coking Coal (BCB) Q1 2025 earnings summary

Executive summary

• Achieved 769Kt ROM coal mined, 444Kt saleable coal produced, and 415Kt coal sales for the quarter ended 30 September 2024, with robust operational performance and cost reductions.

• Mining cost per ROM tonne reduced 7% sequentially to $53, and 52% year-over-year; strip ratio improved to 5.9:1, below plan.

• CHPP availability at 92% and utilisation at 91%, with yield improvement initiatives underway.

• Equity raising and debt restructuring initiatives commenced to strengthen liquidity and balance sheet.

Financial highlights

• FOB cash costs (excl. State royalties/inventory) at $193/t, down 11% year-over-year but above quarterly outlook due to demurrage costs.

• Quarterly EBITDA loss of $1.3M at Burton Complex; operating cash outflow of $22.4M for the group.

• Average realised coal price A$216/t, down 5% year-over-year; coking coal at A$267.7/t, thermal at A$139.6/t.

• Cash receipts from customers $68.8M, down $41.9M year-over-year due to shipping delays and lower prices.

• Cash and cash equivalents at quarter end $5.5M; estimated 0.25 quarters of funding available pre-equity raise.

Outlook and guidance

• FY2025 guidance: managed ROM coal mining 2.7–3.0Mt, coal sales 1.6–1.9Mt, unit cash costs (FOB, ex-royalty) $145–$165/t.

• Cost reduction initiatives and improved logistics expected to lower demurrage and operating costs in coming quarters.

• Equity raise of ~$70M (partially underwritten) and debt restructuring to support Plumtree North development and working capital.