Golden Energy and Resources has reported earnings of US$16.5 million for 1HFY2020 ended June 30, up 32.4% y-o-y. The better profitability came on the back of a 18.6% y-o-y growth in revenue to US$593.5 million, as the company sold a higher volume of coal, even though average selling prices declined.
Between 1HFY2020 and 1HFY2019, the average selling price GEAR was able to fetch for its thermal coal dropped by 6.8% to US$33.38 per tonne. However, its volume increased by 32% y-o-y to 16.7 million tonnes in the same period, which includes contribution from a newly acquired mine.
The company was also able to achieve a higher bottomline because it kept operating costs under control. Between 1HFY2019 and 1HFY2020, cash cost, excluding royalty, was US$22.53 per tonne, down 4.4%.