Bowen Coking Coal (BCB) Q4 2024 earnings summary

Executive summary

• Achieved strong operational turnaround in FY2024, with record ROM coal mined and improved production and sales at Burton Mine Complex, despite weather and logistics disruptions.

• Transitioned to a low-cost producer model, focusing on Burton Mine Complex and cost reduction, with strip ratios declining and steady-state mining rates at Ellensfield South.

• Secured annual contracts for hard coking coal with major Tier 1 steelmakers in Japan, Korea, Europe, and other regions through 2024 and Q1 2025.

• Ongoing rail and port delays led to increased demurrage costs and inventory buildup.

• Bluff Mine remains on care and maintenance; all mining equipment demobilised.

Financial highlights

• Group ROM coal mined in FY2024 reached 2.86Mt, up 73% year-over-year; group coal sales were 1.94Mt, up 155%.

• Burton Mine Complex ROM coal mined in Q4 FY2024 was 820Kt, up 33% sequentially; total coal sales were 425Kt, up 20%.

• 2H FY2024 EBITDA was $10.2M, a significant turnaround from a 1H FY2024 EBITDA loss of ($29M); Q4 EBITDA was ($4.3M), impacted by lower coal prices and one-off costs.

• Average realised sales price for Q4 was US$150/t (A$228/t), down 14–15% from the previous quarter.

• Cash balance at 30 June 2024 was A$21.7M, down from A$34.7M at 31 March 2024, after significant royalty and one-off payments.

Outlook and guidance

• FY2024 guidance met on all key metrics: managed ROM coal production of 2.5Mt, managed coal sales of 1.5Mt, and unit cash costs (FOB) of $185/t.

• FY2024 capex was A$90M, 14% above guidance, mainly due to Ellensfield South boxcut development.

• Steady-state mining rates achieved at Ellensfield South; targeted long-term strip ratio of 7:1 at Burton Mine Complex, with transition into Plumtree North Mine.

• First coal from Plumtree North Mine expected in Q3 FY2025, with annual ROM production target of 2.0–2.4Mt and ~5-year mine life.

• Cost improvement initiatives planned to lower operating costs by A$10–$15/t in coming quarters.