CRN -11.55%: the US & Australian coal miner was out with first-half numbers today with a low-quality beat treated harshly by investors. They missed on Revenue ($US1.49b vs $US1.54b expected) and EBITDA ($US352m vs $US372m expected) though NPAT of $US199m was in line with expectations with the uplift coming from a lower tax rate. The company maintained guidance for production and costs, noting an improved operational outcome will be required to hit targets in the second half. The company elected to pay just US0.5cps as a dividend for the first half, the minimum required as per the updated dividend policy announced in April last year, well below the US3cps expected by the market. This follows rumours that Coronado is one of a handful of companies in the running to buy BHP’s coal assets, a transaction potentially worth $US5b. It would make a lot of sense to save your pennies if you were keen on that deal!
MM prefers WHC/NHC to CRN in the coal space
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