Shares in the company, which owns the Curragh mine in central Queensland, fell 11 per cent when the market opened this morning.

Coal prices continue to be above historical levels and the company has been tipped to be a buyer of one of BHP’s central Queensland mines, but Coronado said it was pursuing organic growth as well as inflation moderated.

It said its balance sheet was strong and would allow it to take advantage of growth opportunities. It has a net cash position of $US192 million.

The company said it would “significantly increase production over the next two years” as it also pursued emission reductions of 30 per cent by 2030.

The revenue generated in the half was the second highest in the company’s history, but “global headwinds” and along with the royalty increase in Queensland impacted earnings.

Prices for metallurgical coal fell 37 per cent and there were high costs but Coronado expected average mining costs to trend lower in the second half.

The board has already approved the development of the Curragh North underground project and first coal from that was expected in 2024.

In its outlook, Coronado said confidence in the market was low in the first half because of the war in Ukraine, inflation and rising interest rates. even so, the average met coal price was $US293 a tonne, which was down 37 per cent on the previous year, but well above the historic average index price of $US192 a tonne.

“Chinese steel production remains high however weak domestic demand conditions continue to put pressure on steel margins, forcing steel mills to divert volume to the export market,” the company said.

“Expectations of further stimulus measures and incentives to improve the China real estate market are expected to improve demand and price sentiment in the third quarter as will Indian restocking demand, forecast to return following the country’s monsoon season and continued growth for planned infrastructure.”