Bowen Coking Coal maintained steady production in the December quarter despite ongoing administration and a challenging market, though rising costs and a 12% sales dip highlight operational pressures.
- Stable ROM coal production at 716Kt in December quarter
- 12% decline in coal sales due to co-shipper delays
- FOB unit costs rose 25% to $161/t amid higher strip ratios and admin expenses
- 29% improvement in safety with reduced injury frequency
- Company remains in voluntary administration with $59.6 million cash reserves
Steady Production Amid Uncertainty
Bowen Coking Coal Limited (ASX, BCB) reported a largely stable operational performance for the December 2025 quarter, maintaining run-of-mine (ROM) coal production at 716,000 tonnes, consistent with the prior comparative period. This was achieved through a hybrid owner-operator mining model focused on low-cost, low strip ratio mining at the Burton Mine Complex in Queensland’s Bowen Basin.
Despite the company’s ongoing voluntary administration and sale process, operations at Burton have continued uninterrupted, underscoring the resilience and commitment of Bowen’s workforce and contractors. The company’s Coal Handling and Preparation Plant (CHPP) performed well, with 94% availability and 87% utilisation, producing 412,000 tonnes of saleable coal.
Cost Pressures and Sales Challenges
However, Bowen faced headwinds as coal sales volumes declined by 12% to 380,000 tonnes, primarily due to delays by co-shippers late in the quarter. This sales shortfall, combined with increased strip ratios and higher administrative costs, pushed FOB unit costs up by 25% to A$161 per tonne, a notable rise compared to the previous quarter.
The company’s revenue for the quarter was approximately A$69 million, with an average realised coal price of A$170 per tonne. The metallurgical coal segment accounted for 61% of revenue, reflecting Bowen’s strategic focus on higher-value coking coal products. Despite the cost pressures, Bowen’s safety performance improved significantly, with a 29% reduction in the total recordable injury frequency rate (TRIFR), highlighting ongoing operational discipline.
Paused Development Projects and Market Outlook
Key development projects such as the Isaac Pit, Lenton, and Hillalong remain on hold pending the outcome of the administration process. These projects represent important future growth opportunities but have seen all technical and regulatory work paused indefinitely.
Market conditions remain mixed. Metallurgical coal prices showed strength, with premium low-volatile hard coking coal prices rising through the quarter, while thermal coal prices experienced volatility driven by geopolitical and supply factors. Bowen anticipates potential near-term improvements in coal export pricing, which could support future margins.
Financial Position and Regulatory Compliance
Bowen ended the quarter with cash and cash equivalents of A$59.6 million, including restricted cash, despite a net operating cash outflow of A$0.6 million. The company continues to meet its contractual obligations and maintain environmental compliance across its operations, including care and maintenance sites like Bluff and Broadmeadow East.
Notably, Bowen remains suspended on the ASX due to outstanding periodic reports, with deadlines set for September 2026 and July 2027 to satisfy the exchange’s requirements for resumption of trading. This regulatory backdrop adds an additional layer of uncertainty for investors.
Bottom Line?
As Bowen Coking Coal navigates administration, its operational resilience is clear, but rising costs and regulatory hurdles pose challenges ahead.
Questions in the middle?
- How will the ongoing sale process impact Bowen’s operational continuity and project development?
- Can Bowen sustain cost reductions and improve sales volumes amid market volatility?
- What are the prospects and timelines for Bowen’s paused development projects post-administration?