The Coronado (ASX: CRN) share price is on watch today as the company announces it’s facing legal action over a fatality at one of its mines.
The post Coronado (ASX:CRN) share price on watch amid legal action appeared first on The Motley Fool Australia. –
Coronado shares finished yesterday’s session 1.9% higher at 53 cents.
Coronado is a producer of high-quality metallurgical coal, an essential element in the production of steel. The company owns a portfolio of operating mines and development projects in Queensland, Australia, and in Virginia and West Virginia in the United States.
The Coronado share price will be in focus today after the company revealed that legal charges have been issued in the Emerald Magistrates Court against its subsidiary Coronado Curragh (CCPL), the operator of the Curragh Mine.
The charges are also levelled at one of Coronado’s employees in relation to the death of Australian man Donald Rabbitt, in an incident at the Curragh mine in January 2020.
In its release, Coronado offered its consolations to the victim’s family, saying:
The safety of our people is our most important priority and we are committed to working hard every day to create an injury free workplace. We acknowledge the significant impact this incident has had on Donald’s family and loved ones and we again express our deepest sympathies to Donald’s family and co-workers.
CCPL is reviewing the charges, however, as these matters are before the Court, it is not appropriate for us to comment further at this time.
In other news that could impact Coronado shares this morning, the company also released its quarterly report today. The update outlined decreasing coal revenue from its Australian operations, partly due to the impact of China’s ban on Australian coal exports.
Coronado’s coal sales volumes increased by 14%. However, its averaged realised met coal pricing decreased from $120 to $94 per metric tonne sold, resulting in a reduction in coal revenues by 3.8% compared to the prior comparative period.
The company’s operating costs were also higher. For the three months ended 31 March 2021, Coronado’s operating expenditure was $29.7 million, or 12.9% higher compared to March 31 2020.
Its US operations also performed worse in this quarter than the prior corresponding period, with coal revenue decreasing by 14.5%.
Coronado share price snapshot
The Coronado share price has been a big loser over the past 12 months, falling by almost 50%. This comes as many countries move away from metallurgical coal into renewable energy sources. The company’s share price is down a whopping 38% in the past month alone and dropped 14% on 6 May following a capital raising initiative.
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Motley Fool contributor Lucas Radbourne-Pugh has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.