BOWEN COKING COAL LIMITED (BCB)
Share Price Analysis and Chart

29/01/2025

1

Buy

$0.04

566.67%

Bowen Coking Coal reported its best-ever EBITDA result of $26.1m in the December quarter update despite the lowest achieved coal pricing for over a year, Shaw and Partners highlights.

The broker reckons this is a testament to the improved operational performance with record shipping volumes and lowest-ever costs of $148/t.

The broker notes the achieved coal price of $204/t in the quarter was the lowest since Sep-23. The broker expects coking and thermal coal prices to improve through the year, with one catalyst being the wet weather which is now impacting the Queensland producers. 

The broker has increased FY25 EBITDA forecast by 97% on higher production and lower costs.

Buy rating and 4c target price is unchanged.

FORECAST
Shaw and Partners forecasts a full year FY25 dividend of 0.00 cents and EPS of 0.30 cents.
Shaw and Partners forecasts a full year FY26 dividend of 0.00 cents and EPS of 0.40 cents.

01/08/2024

1

Buy

$0.08

1233.33%

Operationally, Bowen Coking Coal's Burton complex is producing well, but transport logistics, closure costs, and prices have offset some of those improvements, Petra Capital notes.

The key element however is the balance sheet. In the June Q report, management discusses options around coal prepayments, working capital facilities, and royalty deferrals.

These are possible, but Petra forecasts that Bowen will need an equity injection in the near-term to cover its upcoming debt and capex commitments. Target falls to 8c from 12c, Buy retained.

FORECAST
Petra Capital forecasts a full year FY25 dividend of 0.00 cents and EPS of 1.60 cents.