Well, it's called Bowen
COKING Coal, not Bowen S*ty Coal.
With HCC now at US$307 (remember: BCB is producing at US$90/t according to last quarterly), the future is bright! Don't forget BCB only started washing coal at Burton in May. There should be plenty of cash coming in now and debt should not be an issue anymore very soon.
High prices show that demand is strong (and/or supply is tight) - despite recessionary headwinds. The Panama Canal drought is limiting shipment capacity from the Americas to Asia. And thermal coal (a byproduct for BCB) prices are strong and firming further heading into the Northern Hemisphere's winter months and given Australian LNG strikes.
And if there is any doubt, reading helps...
28 August Update"Mining operations across the Burton Complex have been performing very well. 183kt of coal has been shipped to date this month whilst the Company’s planned fourth vessel for August is now scheduled to be loaded for export on 1 September with
81kt of BME coking coal. While the Company’s initial focus at Burton has been the Broadmeadow East Pit, the Ellensfield South Pit within the Burton Complex will become an operation’s cornerstone in the near term delivering up to 2.75Mt of ROM production per year
to take advantage of recent improvements in coking coal pricing."
24 July Quarterly Report"Product mix at BME was adversely affected by the previous sale of bottom seam coal as unwashed product whilst the CHPP refurbishment was being completed, leading to the sale of only thermal coal for the quarter.
Shipments of coking coal from BME have now commenced (post quarter end) and are planned to continue and may be enhanced with the addition of a higher coking coal split once Ellensfield South is in production (expected by September 2023)."
Burton Lenton (Website)
"The Burton mine has a proven track record for the reliable production of coking coal that was valued by the steel industry worldwide for its high quality, low ash and low sulphur."
Hillalong (Website)
"The maiden resource estimate for Hillalong South follows an earlier exploration program which demonstrated seam continuance and an exceptional intersection of the 9m thick coalesced Elphinstone and Hynds seams. Based on the previous exploration program and coal quality and washability results, there is potential to produce a Mid Volatile Matter (25% ad basis) coking coal from the Hillalong South project, which complements the other products within the Bowen Coking Coal portfolio, including the Low Volatile Matter coking coals of Broadmeadow East. The third exploration program for Hillalong is currently underway."
(20min delay)