Company News: Coronado Resources & Deep Yellow
Coronado Resources has revised its profit guidance for FY-19. The recent decline in seaborne coking coal prices has caused the company to revise its expectation for EBITDA (earnings before interest, tax, depreciation and amortisation) to US$687 to $737 million, $50m lower than the US$737 to $807 million it had previously guided towards.
We continue to monitor the outlook for the pricing, although our initial investment thesis incorporated an expectation of price moderation.
Deep Yellow has announced that it will be initiating a pre-feasibility study at its Reptile Project. The company will conduct technical and economic studies to evaluate the economic feasibility of developing the project into a mining operation.
The decision comes after drilling over the past two years has significantly increased the company’s resource base (with expectations that further discoveries will be made with continued exploration). The company anticipates that a scoping study (which will give an initial estimate of the project’s feasibility) will be completed by December 2019, with the pre-feasibility study (a more detailed estimate of the project’s feasibility) expected to be completed in the first quarter of FY-21.