Azzet reports on three ASX stocks with notable trading updates today.
Bowen Coking tanks on potential mothballing
Shares in Qld-based Bowen Coking Coal (ASX: BCB) were down around 50% at the open to $0.195 after the mining smallcap signalled to the market mothballing plans in response to the depressed state of coal markets.
Despite successfully achieving its FY25 production and sales guidance ahead of schedule, the miner told the market that due to depressed coal market conditions - impacting the company’s operating margins - it could mothball part or all of its flagship Burton Mine Complex near Moranbah.
In addition to significant price drops in metallurgical and thermal coal, what’s also on management’s mind is the “unstoppable” Qld coal royalty regime pressures.
In metallurgical coal markets, the Platts Australia PLV index has recently fallen to a spot price of US$175/t - down 25% since June 2024, while thermal coal has fallen to a spot price of US$66/t, also down 25% since June 2024.
Conditions contributing to tough trading conditions for global steel producers and metallurgical coal producers alike include:
- Uncertainty in global trade flows, following U.S. tariff policy announcements.
- A surplus of Chinese steel exports in the market.
- Low demand from India during the early onset of the monsoon season.
To combat these headwinds, management told the market today that it is exploring strategic and financial options to fund its transition plan and maintain liquidity.
“If immediate funding efforts are unsuccessful, and/or coal market pricing dynamics do not improve, Bowen may seek to temporarily pause operations at part, or all, of the Burton Mine Complex,” the miner told shareholders today.
The range of strategic and financing alternatives currently under consideration includes potential debt, equity, and hybrid solutions, to generate and maintain sufficient liquidity for both the near-term and foreseeable future.
Meanwhile, today’s announcement has masked some otherwise strong operational numbers, as at 31 May 2025 these include:
- May 2025 monthly ROM coal production of 304Kt, the highest production month achieved in the financial year-to-date.
- Year-to-date ROM coal production of 2.7Mt and year-to-date coal sales of 1.7Mt.
- CHPP achieved a record throughput of 10,621 feed tonnes in a 24-hour period in May.
- Year-to-date FOB unit costs (excluding royalties) are $150.6 per tonne.
Bowen Coking Coal has a market cap of $21 million; the share price is down 96% in one year and down 64% in the last month.
The stock’s shares appear to be weak with little demand from investors.
Consensus does not over this stock.
Webjet falls on board appointment
Shares in Web Travel Group (ASX: WEB) were down around 1.5% with the market seemingly uninspired by the two board appointments announced today.
Former Virgin Australia CEO Paul Scurrah - who was ousted by the airline’s then new owner Bain Capital in 2020 after just 20 months in the job – will join veteran director Melanie Wilson on Webjet’s board as independent non-executive directors from 1 July, with Brad Holman retiring in late September.
Wilson is currently a non-executive director at JB Hi-Fi and Oroton, and previously chaired Baby Bunting.
“We're committed to refresh the board following completion of the company’s demerger and are delighted to welcome Melanie and Paul,” said Web Travel chairman Roger Sharp.
“They bring strong credentials, fresh perspectives and deep experience.”
Today’s board update follows a cash offer from BGH Capital to acquire the $0.80 per share mid-May this year.
Webjet also confirmed BGH Capital to be the mystery investor which sought to acquire up to 5% of shares in the group late earlier in the month.
Webjet’s market cap is $1.6 billion; the share price is down 43% in one year and down 3% year to date.
The stock appears to have completed a medium-term rally that pulled the 5-day moving average above the 50-day moving average.
Consensus is Moderate Buy.
PointsBet halts
An hour and a half after the market opened this morning, ASX-listed bookmaker PointsBet (ASX: PBH) along with rival online wagering provider, Betr Entertainment Limited (ASX: BBT) entered a trading halt.
The latter (Betr) has been embroiled in a tussle with Japanese gaming giant Mixi to buy PointsBet out for over five-months.
Today’s trading halt follows a market update by PointsBet within which CEO Sam Swanell pointed to the superior “value and certainty” of Mixi’s offer of $1.20 a share in cash when announcing the pair had entered into a bid implementation deed on Monday.
However, Betr claims that PointsBet has overlooked the significant advantages afforded it by its proposal.
While Swanell said Betr’s cash and scrip offer translated to $1.05 a share, Betr claimed its offer was closer to $1.33 once the structure was considered.
Betr’s CEO Andrew Menz categorically rejected PointsBet's characterisation of the company’s cost synergy projections as being ‘materially overstated’.
"Having completed detailed bottom-up analysis, our confidence in the benefits of the betr Proposal for PointsBet shareholders has only increased,” said Menz.
“We are highly confident in our ability to deliver the integration and to create $1.33 of value for PointsBet shareholders that elect and receive consideration in line with the funding mix – far exceeding the $1.20 offered by MIXI.”
Meantime, while the Mixi offer is subject to acceptance by at least 50.1% of shareholders, this could be problematic given that Betr now owns nearly 20% of the company.
It is expected to consider making an off-market takeover bid if that fails.
PointsBet has a market cap of $394 million; the share price is up 158% in one year and up 19% year to date.
The stock is in a strong bullish trend confirmed by multiple indicators.
Consensus does not cover this stock.
This article does not constitute financial or product advice. You should consider independent advice before making financial decisions.