CRN -7.74%: The 1st quarter update came in below expectation for CRN today, a similar trend to Whitehaven Coal (WHC) recently, with coal sales falling ~10% largely blamed on the Lunar New Year. Production was slightly ahead on the Dec quarter but costs also crept higher, coming in at $62.2/t. The company noted foreign exchange & weather headwinds negatively impacted costs, though they maintained guidance here of between $57-59/t, which means they have a lot to do. For Met Coal used in Steel making, which accounts for more than 80% of sales, prices were 12% better than the Dec quarter at $94.30/t highlighting the improving coal market – a trend we expect to continue.
MM is bullish CRN
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