By David Winning
SYDNEY-Coronado Global Resources cut its annual coal production guidance and forecast higher-than-expected mining costs after encountering setbacks at its Curragh and Buchanan operations.
Coronado said it now expects saleable coal production of between 16.2 million metric tons and 16.4 million tons in the 12 months through December, compared to prior guidance for 16.8 million-17.2 million tons.
The company on Monday said mining at the Buchanan mine in the U.S. was temporarily impacted by geological conditions in the coal seam that slowed production rates and impacted yield.
“With geological conditions returning to normal, every effort is now being made to recover these lost tons in 4Q 2023 and 1Q 2024,” Coronado said in a regulatory filing.
Separately, Coronado said one of the draglines at its Curragh mining complex in Australia experienced a mechanical failure in the propel unit in the middle of last month. It expects to complete repairs no later than the end of October.
As a result of these setbacks, Coronado said it now expected average mining costs per ton of coal sold to customers would be between $97 and $102 in fiscal 2023. That compared to prior guidance for $84-$87.
Still, the company expected capital expenditure in the current fiscal year to be $220 million-$240 million, which is less than previously forecast.
“Net of the efficiency gains in capital expenditures, we expect this to have a minimal impact on year-end cash on the balance sheet of a maximum $10 million reduction assuming none of the lost production can be recovered,” Executive Chairman Gerry Spindler said.
Write to David Winning at [email protected]
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