Coal weakness won't derail Mastermyne's record year: Caruso

MASTERMYNE remains on track for a record year despite some softness in metallurgical coal prices over the past two months.
Coal weakness won't derail Mastermyne's record year: Caruso Coal weakness won't derail Mastermyne's record year: Caruso Coal weakness won't derail Mastermyne's record year: Caruso Coal weakness won't derail Mastermyne's record year: Caruso Coal weakness won't derail Mastermyne's record year: Caruso

Mastermyne CEO Tony Caruso.

Mastermyne CEO Tony Caruso told the Wilsons Rapid Insights Conference that the company secured $208 million of revenue for FY2021 and he expected earnings and net profit to be up on the first half's performance.

The company's FY2020 guidance range narrowed for revenue and earnings before interest, tax, depreciation, and amortisation to $295 million-$300 million and $27 million-$29 million respectively.

"The plan for growth remains unchanged," Caruso said.

"Firstly, to maximise returns from the core coal business, secondly expand the underground service offering, and thirdly build a whole of mine business."

Caruso said a disciplined approach to overhead cost management was also benefiting the company's earnings margins.

Approximately 95% of Mastermyne's order book is in metallurgical coal.

The price of metallurgical coal has has softened over the past two months because of the COVID-19 crisis.

Caruso said met coal prices were expected to bounce back because the long-term fundamentals remained strong.

"China demand remains steady and India demand continues to increase," he said.

"Australia remains best placed to supply the seaborne metallurgical coal market.

"Twenty of Australia's 22 closest neighbours are developing nations and still have significant steel and power requirements."

  • FREE coverage on the rapidly developing coronavirus pandemic. Visit our COVID-19 hub.
  • Latest COVID-19 Coverage: Pandemic no impediment. Read more.
  • Latest COVID-19 Coverage: Like sand through the hourglass. Read more