Coronado Hits First Coal at Mammoth Mine, Slashes Costs Amid Market Headwinds
Coronado Global Resources marked a key milestone with the Mammoth Underground Mine delivering first coal on time and budget, while reporting improved production and cost efficiencies in Q4 2024 despite softer coal prices.
- Mammoth Underground Mine achieves first coal on schedule and budget
- Q4 production and sales volumes rise, with ROM up 8.8% and sales up 4.7%
- Mining costs per tonne sold drop 17% quarter-on-quarter
- FY2024 revenue declines 13.2% due to lower coal prices
- Strong cash position with $340 million closing cash and $468 million liquidity
Operational Milestone at Mammoth Underground Mine
Coronado Global Resources celebrated a significant achievement in December 2024 as its Mammoth Underground Mine, part of the Curragh Complex in Australia, delivered its first coal on time and within budget. This milestone marks a critical step in the company’s growth strategy, with the mine expected to incrementally add 1.5 to 2.0 million tonnes per annum of saleable metallurgical coal in its initial phase.
The successful commissioning of Mammoth underscores Coronado’s operational discipline and project execution capabilities. The company anticipates a ramp-up in production throughout 2025 as new panels come online, supporting its broader growth portfolio.
Production and Sales Performance
Coronado’s December quarter results showed robust operational momentum. Group Run of Mine (ROM) production rose 8.8% quarter-on-quarter to 6.9 million tonnes, while saleable production increased 4.1% to 4.0 million tonnes. Sales volumes also climbed 4.7% to 4.1 million tonnes, driven by gains in both Australian and U.S. operations.
Year-to-date (YTD) figures reveal a 4.5% increase in ROM production to 26.6 million tonnes, although saleable production dipped 3% to 15.3 million tonnes, reflecting inventory build-up and processing timing. Sales volumes remained steady at 15.8 million tonnes, consistent with the prior year.
Cost Reductions and Financial Strength
One of the standout achievements in Q4 was a 17% reduction in average mining costs per tonne sold, down to $97.3. This improvement was largely driven by productivity enhancements and cost-cutting initiatives at the Curragh Complex, including fleet demobilisations and optimized dragline operations. The company’s focus on operational efficiency is evident in the dragline system exceeding its FY2024 plan by moving 52% of overburden in December, up from 37% the previous year.
Despite a 13.2% decline in full-year revenue to $2.5 billion, primarily due to lower metallurgical coal prices, Coronado maintained a strong balance sheet. The company closed the quarter with $340 million in cash and $468 million in available liquidity, supported by a successful refinancing of senior secured notes at a lower coupon rate.
Safety and Operational Outlook
Safety metrics remained solid, with Total Reportable Injury Frequency Rates (TRIFR) in both Australia and the U.S. below industry averages. The U.S. division introduced enhanced safety programs aimed at further reducing incidents in 2025.
Looking ahead, Coronado is optimistic about market conditions. While acknowledging near-term challenges from subdued Chinese steel demand and softer coal prices, the company expects a recovery in steel production outside China, particularly in the U.S. and India, to support metallurgical coal demand. The Buchanan Expansion project in the U.S. is progressing on schedule for completion in mid-2025, promising additional capacity and operational flexibility.
Leadership and Strategic Focus
Coronado announced the appointment of Barrie van der Merwe as Chief Financial Officer effective April 2025, signaling continuity in financial stewardship as the company advances its growth agenda. CEO Douglas Thompson emphasized the company’s commitment to driving further operational improvements and cost reductions, leveraging its organic growth pipeline and strong liquidity position.
Bottom Line?
Coronado’s blend of disciplined project delivery, cost control, and strategic expansion positions it well to navigate 2025’s market uncertainties and capitalize on emerging demand.
Questions in the middle?
- How quickly will Mammoth Underground Mine ramp up to steady-state production?
- What impact will the Buchanan Expansion have on U.S. operations’ cost and output?
- How will evolving Chinese steel demand and international trade policies affect metallurgical coal prices?