Outlook for Bowen Coal (BCB)
Hi MM Wondering what chance is there for a turnaround in the fortunes of Bowen Coal BCB? Are they a basket case to be avoided or is there some hope of a recovery? Thanks for your great service and commentary. Regards Rob
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Answer
Hi Rob,
BCB now only has a market cap of ~$54mn after crashing over 85% from its September highs. BCB is navigating a challenging period highlighted by significant losses and high debt levels. For the fiscal year ending June 30, 2024, the company reported a net loss of ~$95 million, though consensus is for a very small profit in FY25. When it last reported, debt sat over $150mn, and while that number will now be lower having raised $70 million in equity, the debt levels remain a major concern here.
- While they are still trading, there is hope of a turnaround, but they do need to get into a more sustainable debt position.
