Ann: Investor Presentation March 2024 Quarterly Update, page-3

Shaw’s have released an updated research report today (following the BCB quarterly report). The report maintains Shaws ‘Buy’ rating on BCB and its 12-month price target of 23c, noting that it views BCB as “highly under-valued if it can deliver on its production outlook for FY25 in a strong coal price environment”.

My own view is rather more cautious. As I see it, BCB still faces a tough challenge in coming quarters to maintain a positive cash balance, service its high level of debt ($165m at end March) and avoid yet another capital raising. If it can achieve those three things by significantly boosting its production levels and sales, while also containing (and desirably reducing) its costs, I think that Shaw’s optimism will prove well-founded for FY25 and beyond.