Coronado Global Resources, Australia’s largest coal mining company, is eager to boost its profit despite Beijing's sanctions on coal.
Since November 2020, China has stopped importing Australian coal and has also introduced tariffs on the country’s wine. Although political discord had deprived Australia of the largest importer, its coal behemoth quickly gathered wits, remembering that it had ample opportunities for exports. The company wasted no time and soon produced impressive results.
Coronado Global Resources is one of the leading international producers of high-quality metallurgical coal, having mine sites in many countries. Its operations are located in metallurgical coal basins in the Central Appalachian region in the United States and the Bowen Basin in Australia. When China imposed tariffs on the giant unexpectedly, the coal producer shifted its focus towards other importers. Nowadays, one-third of the company’s coal produced from the two mines operating in the Central Appalachian region is sold in the United States, Coronado's CEO Garold Spindler reported. Meanwhile, coal mined from Curragh, Australia’s largest mine, is supplied to India. The miner also supplies coal to other Asian markets.
Coronado’s main advantage is geographical diversity. Owing to this fact, its coal prices remain on the rise. Between July and September, prices added 37% and the company's total revenue for the reporting period increased by more than a third. Vast sales territories worked in Coronado’s favor at the time of political turmoil.
Last year, the company was forced to temporarily suspend its US mines due to the pandemic. In August 2020, Coronado had to raise $188 million in a deeply-discounted equity issue amid risks of breaching debt obligations. So far, the miner is trying to reduce its debt and attract a large cash inflow by the end of the year.
As Bloomberg reports, Coronado Global Resources shares have soared by 30% since the start of the year. At the same time, its market value totaled $1.77 billion, or A$2.36 billion.
