Earnings up over 53% for Australia's metallurgical coal mines

By Richard Foy | Monday, August 20, 2018 7:50 AM ET

Despite the first significant increase in six years in production costs for Australian metallurgical coal mines, EBITDA grew more than 53% in 2017. The total cash cost margins, including freight, increased by US$31/t, due primarily to the ongoing price recovery, which was driven in 2017 by robust demand and faltering supply.

Growing and sustained crude steel production in China, Japan and India drove increased coal requirements for Australian coal products. This, alongside supply-side disruptions in Queensland, Australia, and coal production cuts in China, caused the 2017 Australian premium coking coal benchmark price to rise more than 30% compared with the 2016 average. We expect EBITDA to increase in 2018 despite rising costs, with increased production and robust metallurgical coal prices offering relief.

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Earnings up over 53% for Australia's metallurgical coal mines

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