Australian producer Bowen Coking Coal (BCC) posted lower coal sales and production in the July 2024 to June 2025 financial year, despite operating at the upper end of its guidance range.

The company produced 1.8mn t of saleable coal in 2024-25, down by 7.8pc from 1.9mn t in 2023-24, it announced in its latest quarterly report on 28 July.

But its throughput increased. The company mined 2.9mn t of run-of-mine (ROM) coal in 2024-25, up by 2.3pc on the year, and on the upper end of its 2.7mn-3mn t guidance.

BCC hit the lower end of its ROM guidance range at the end of May.

BCC sold 1.8mn t of coal over the year, down by 7.5pc on the year, although the amount was at the upper end of its 1.6mn–1.9mn t guidance range. The company sold a mix of thermal coal, coking coal, and PCI coal, as in previous years. Coking coal and PCI accounted for 71.1pc of its sales in 2024-25, down from 74.4pc in 2023-24.

The company will cut production at its flagship 5.5mn t/yr Burton mine complex in July-September, because of severe cash availability challenges. It expects to produce 500,000t of ROM coal over the quarter, down from 769,000t over the same period in 2024.

Mining services firm BUMA has made financial claims totalling A$29.4mn ($19mn), but BCC cannot pay this while meeting its other payment obligations, BCC said on 28 July. It also needs to pay A$2.7mn in mineral royalties to the Queensland Revenue Office at the end of July.

The company's cash reserves are falling relatively quickly. BCC had A$37.7mn of reserves — including A$19.4mn in restricted cash — on 28 July, down from A$45mn on 14 July.

BCC has been suspended from quotation on the Australian Stock Exchange (ASX) since 15 July, pending a financing announcement.

By Avinash Govind