Bowen Coking Coal has reported a record $19.1 million in operating cash flow for the June quarter, overcoming a trading suspension, significant debt repayments, and a $29 million contractor dispute. Bowen Coking Coal is a Queensland-based company focused on developing a portfolio of high-quality coking coal projects. The company aims to deliver maximum shareholder returns through efficient operations and strategic growth.
The company produced 752,000 kilotonnes of run-of-mine coal and 428,000 kilotonnes of saleable coal during the quarter. This output drove unit costs down to $US137.20 per tonne, positioning its Burton complex within the lowest quartile of producers in the Bowen Basin. Total revenue for the fiscal year reached $344.4 million, a 23 per cent decrease compared to the previous period, which the company attributes to lower coal prices.
Bowen Coking Coal remains suspended from the ASX as it continues negotiations with secured lenders, contractor BUMA Australia, and the Queensland Revenue Office in an effort to maintain liquidity. Approximately half of its $37.7 million cash balance is currently restricted. BUMA is seeking $29.3 million in payments, a claim that Bowen disputes. The company has engaged McGrathNicol to assist with refinancing efforts, having ruled out additional equity or debt raisings.
The company also stated, “The plan was implemented with great professionalism from our people and contractors that allowed us to meet our milestones, while improving safety results quarter-on-quarter.” As production shifts to a low-strip owner-operator model, Bowen anticipates mining 500,000 tonnes of ROM coal in the current quarter. The company’s shares remain suspended pending further financial clarification.
