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Your thoughts on Coronado Global Resources (CRN) and Peninsula Energy (PEN)

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Question asked 30/08/2025

Your thoughts on Coronado Global Resources (CRN) and Peninsula Energy (PEN)

Hi MM, Coronado Global Resources (CRN) share price has dropped like an elevator this year. After getting down to 10 cents it is rising as quickly as it fell, even though the price of coal hasn't changed much over the past few months. What do you believe is fair value in terms of the share price, based on current coal prices, and do you believe there are any ongoing liquidity or balance sheet risks remaining? Peninsula Energy (PEN) has recently returned from suspension and is undertaking an equity raise. The company has failed to deliver the targets they had previously stipulated and now need further funds. What are your current thoughts on this company, especially from a risk reward perspective, at the current share price? Thankyou Chris

Answer

Hi Chris,

Two underperforming ASX energy companies that as you said have endured tough times of late:

Coronado Global Resources (CRN) – certainly a volatile journey for this junior coal miner which has been plagued with liquidity issues. This month’s report showed glimmers of hope:

1H revenue of $917.1mn was down from $1.34bn YoY.
1H net loss of $172.4mn compared to a $16.2mn profit last year.
They achieved breakeven EBITDA in the 2Q.

Valuing this stock is really hard as is demonstrated from the 13c to 30c variance from the 9 brokers who cover it. We see no reason to own the stock as the company burns cash, which is on course to run out in the next 12-18 months, hence we regard it as a sell in the 35-40c region.

Peninsula Energy (PEN) – returned from its capital raise this week with the stock trading ~35c, significantly below the $4 enjoyed just 2-years ago. We see no reason to buy PEN and prefer Paladin (PDN) from a risk/reward perspective.

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Coronado Global Resources (CRN)

LAST UPDATED 29/08/2025 14:15

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