Metallurgical Coal Demand to Outstrip Supply: Coronado Global Resources

The transcript discusses the current global economic uncertainty and its impact on METCO, a crucial mineral in steelmaking. Despite headwinds in China and the US, and a recent drop in thermal coal prices, the long-term outlook for METCO remains positive due to a structural supply-demand imbalance. The discussion also covers the cyclical nature of the market, with expected short-term downturns, and the role of METCO in the energy transition. The potential acquisition of BHP's met coal mines is also considered, emphasizing the importance of distinguishing between coal for energy and steel production.

What is the long-term outlook for METCO despite current global economic challenges?

• Neutral with no significant changes

• Positive due to its critical role in steel production

• Negative due to oversupply

• Uncertain due to fluctuating demand

What is expected to happen to METCO pricing by the fourth quarter?

• It will recover and increase

• It will be unpredictable

• It will decrease significantly

• It will remain stable

How does the energy transition impact the METCO market?

• It has no impact on METCO

• It leads to a surplus of METCO

• It creates more buoyancy in METCO pricing

• It reduces demand for METCO

What is the main difference between the two types of coal discussed?

• Both are used for steel

• Both are used for energy

• One is used for energy, the other for steel

• One is renewable, the other is not

Why is there interest in acquiring BHP's METCO assets in Queensland?

• They are expected to decrease in value

• They are not relevant to current market needs

• They are strategically valuable despite uncertainties

• They are in a poor jurisdiction