Key facts about Bowen Coking Coal (ASX:BCB) and its FY24 production results

Bowen Coking Coal (ASX:BCB) has reported a strong performance for the year ended 30 June 2024, achieving record ROM coal mined of 86Mt and saleable coal produced of 94Mt. The company's Burton Mine Complex demonstrated a 73% increase in ROM coal mined and a 114% increase in saleable coal produced compared to the prior year. The positive production performance for the June quarter, with record ROM mined and low stripping ratio, signals a turning point in operations. The 2H FY2024 EBITDA of $12.9M reflects a significant turnaround from the 1H FY2024 performance, marking a 149% improvement. However, declining coal prices negatively impacted the average realized sales price for the June quarter, resulting in a 14% decrease compared to the March quarter.

Executive commentary on FY24 performance and outlook

The company's executive highlighted the positive production performance for the June quarter, emphasizing the record ROM mined and low stripping ratio as indicators of a turning point in operations. The 2H FY2024 EBITDA of $12.9M was noted as a significant turnaround from the 1H FY2024 performance, reflecting a 149% improvement. However, the impact of declining coal prices on the average realized sales price for the June quarter was acknowledged, resulting in a 14% decrease compared to the March quarter. The management's continued focus on cost reduction and operational improvement initiatives to lower costs, increase profitability, and generate positive cash flows was emphasized as crucial for ensuring a sustainable cost base.

Summary of FY24 production results and outlook

In summary, Bowen Coking Coal (ASX:BCB) delivered a strong performance in FY24, achieving record ROM coal mined and saleable coal produced. The company's executive commentary highlighted the positive production performance for the June quarter, emphasizing the record ROM mined and low stripping ratio as indicators of a turning point in operations. However, declining coal prices negatively impacted the average realized sales price for the June quarter. Looking ahead, the company aims to focus on cost reduction and operational improvement initiatives to lower costs, increase profitability, and ensure a sustainable cost base.