As a result of the imposition of new QLD royalties, Morgans estimates the effective royalty rate at Coronado Global Resources’ Curragh mine rises to 21% from 13% in 2022, and to 14% from 11% in 2023.
After allowing for the royalty change, lower volumes and higher price and cost forecasts, the broker lowers its target to $2.50 from $2.97. Despite this, there’s still considered to be compelling capital and dividend upside risk and the Add rating is maintained.
Target price is $2.50.Current Price is $1.65. Difference: $0.85 – (brackets indicate current price is over target). If CRN meets the Morgans target it will return approximately 34% (excluding dividends, fees and charges – negative figures indicate an expected loss).