Coal miner Coronado Global Resources has adjusted its production guidance for the 2023 fiscal year due to challenging operating conditions at its Buchanan mine in the US and unexpected downtime repairs at its Curragh mining complex in Queensland. The company has downgraded its saleable production expectations from the original guidance of 16.8 million to 17.2 million tonnes to a range of 16.2 million to 16.4 million tonnes.

Average mining cost estimates have also increased from the previous range of $84 to $87 per tonne sold to $97 to $102 per tonne sold, while full-year capital expenditure has decreased from a range of $260 million to $290 million to $220 million to $240 million.

Coronado explained that geological conditions in the coal seam at the Buchanan mine temporarily slowed production rates and impacted yield during the September quarter. These conditions, related to a rock intrusion, have now been addressed, and operations are returning to normal. Efforts are being made to recover the lost tonnes in the fourth quarter of 2023 and the first quarter of 2024.

Additionally, one of the draglines at Curragh experienced a mechanical failure in the propel unit in mid-September. Repairs are underway and expected to be completed no later than the end of October. Production from Curragh in the 2023 fiscal year will be impacted due to the resulting delayed ability to move waste. Coronado is revising its plans for the balance of 2023 and full year 2024 to mitigate the impact from these dragline repairs.

Coronado's executive chairperson, Gerry Spindler, stated that despite these operational challenges, the company expects a minimal impact on year-end cash on the balance sheet, with a maximum reduction of $10 million, assuming none of the lost production can be recovered. The company is actively pursuing actions to recover as much of the impacted tonnes as possible in the next six months.