Coronado Achieves Higher Production Volumes in Q4 2024 with Strong 2025 Growth Potential

Released on 23 Jan 2025:

Production Volume and Related Insights

Quarterly Performance (Q4 2024):

1. ROM Production:

   • Total: 6.9 Mt, an 8.8% increase from 6.3 Mt in Q3 2024.

   • Australia (Curragh Complex): 3.4 Mt, a significant 29.1% increase from 2.6 Mt in Q3.

   • USA: 3.5 Mt, a 5.7% decrease from 3.7 Mt in Q3, due to scheduled longwall moves at Buchanan.

2. Saleable Production:

   • Total: 4.0 Mt, a 4.1% increase from 3.8 Mt in Q3.

   • Australia: 2.6 Mt, up 12.9% from 2.3 Mt in Q3.

   • USA: 1.4 Mt, down 8.6% from 1.6 Mt in Q3.

3. Inventory Build-Up:

   • The company ended the year with 0.6 Mt of ROM inventory, exceeding the plan. This surplus will positively impact production metrics in early 2025 when processed.

Year-to-Date (YTD 2024):

1. ROM Production:

   • Total: 26.6 Mt, a 4.5% increase from 25.4 Mt in 2023.

   • Australia: 12.6 Mt, a slight 1.9% decrease from 12.8 Mt in 2023.

   • USA: 14.0 Mt, a 10.9% increase from 12.6 Mt in 2023.

2. Saleable Production:

   • Total: 15.3 Mt, down 3.0% from 15.8 Mt in 2023.

   • Australia: 9.7 Mt, down 3.6% from 10.0 Mt in 2023.

   • USA: 5.7 Mt, down 1.9% from 5.8 Mt in 2023.

3. Sales Volumes:

   • Q4 2024: 4.1 Mt, up 4.7% from Q3 (3.9 Mt).

   • YTD 2024: 15.8 Mt, consistent with 2023.

Production Outlook and Key Projects

1. Mammoth Underground Mine:

   • Officially started production in December 2024, on time and within budget.

   • The mine has 41 Mt of met coal reserves and is expected to deliver 1.5–2.0 Mtpa of saleable production during its first phase.

   • Full production ramp-up will continue throughout 2025, contributing significantly to Coronado’s overall output.

2. Buchanan Expansion:

   • The project remains on track for completion by mid-2025.

   • Key developments include:

     • Installation of a second set of skips.

     • Completion of surface raw coal storage and associated infrastructure.

   • Once operational, the expansion will provide enhanced capacity and redundancy, supporting higher production rates.

3. Productivity Enhancements:

   • In Australia:

     • Focused on improving the dragline fleet and drill/blast systems.

     • The dragline system achieved an overburden removal ratio of 52%, exceeding the FY2024 plan.

     • Operational adjustments, including the removal of less productive equipment, have reduced costs and optimized efficiency.

   • In the USA:

     • Buchanan benefits from two longwalls, ensuring better operational flexibility and higher skip counts.

4. Future Production Guidance:

   • Coronado expects a recovery in steel production outside of China in 2025, boosting demand for metallurgical coal.

   • Indian demand is anticipated to grow, driven by restocking and government support for domestic steel and coke producers.

Production-Related Challenges and Mitigations

1. Australia (Curragh Complex):

   • Q4 operations were impacted by intermittent power outages, but the resulting ROM inventory will support higher saleable output in early 2025.

2. Market Trends:

   • Met coal prices fell in Q4 2024, but a recovery is expected in 2025, driven by increased demand in non-China markets.

   • Coronado's production strategy is aligned with anticipated market improvements, ensuring readiness for higher demand.

3. Cost Management:

   • Q4 average mining costs per tonne sold dropped to $97.3/t, reflecting successful cost reduction programs.

Conclusion:

Coronado’s Q4 2024 production volumes reflect strong performance, particularly in Australia, despite planned downtime in the USA. With strategic investments in the Mammoth and Buchanan projects, and a positive market outlook for 2025, the company is well-positioned to capitalize on anticipated demand growth and maintain operational efficiency.