Ann: Quarterly Activities/Appendix 5B Cash Flow Report, page-3

Bowen Coking Coal Ltd (BCB) - Bluff Re-starts Production (Petra 13/4/2022)

BCB has begun coal mining operations at the Bluff PCI mine. This marks an important milestone for BCB as it is now officially a coal producer and the company has reiterated that first coal sales are expected in FY22. This is the first of three mines that BCB is bringing into production during 2022, expected to produce 2.4Mtpa in FY23. BCB has flagged that mining costs at Bluff have risen by 10-15% compared to estimates from October 2021 of A$120-137/t FOB (excluding royalties), or an increase of approximately A$20/t to A$147/t. It should be noted however that coal prices have risen far more. We have updated our modelling for production, prices, and costs (Figure 1).
Maintain BUY with a PT of $0.66/sh (prev. $0.52/sh).

Key Dates Ahead

• Jun. Q’22 – First Bluff coal sales

• Sep. Q’22 – First large scale production and sales

• Mid 2022 – Burton mine and washplant re-start

• 2H 2022 – Isaac River Approvals and re-start