UNITED STATES
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Washington, D.C. 20549
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FORM
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Steel starts
here.
Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2025.
TABLE OF CONTENTS
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Coronado Global Resources Inc.
PART I – FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
Condensed Consolidated Balance Sheets
(In US$ thousands, except share data)
Assets
Note
(Unaudited)
December 31,
2024
Current assets:
Cash and cash equivalents
$
$
Trade receivables, net
Inventories
4
Other current assets
5
Total current assets
Non-current assets:
Property, plant and equipment, net
6
Right of use asset – operating leases, net
8
Goodwill
Intangible assets, net
Restricted deposits
17
Other non-current assets
Total assets
$
$
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable
$
$
Accrued expenses and other current liabilities
7
Asset retirement obligations
Contract obligations
11
Lease liabilities
8
Interest bearing liabilities
9
Income tax payable
Other current financial liabilities
10
Total current liabilities
Non-current liabilities:
Asset retirement obligations
Contract obligations
11
Interest bearing liabilities
9
Other financial liabilities
10
Lease liabilities
8
Deferred income tax liabilities
Other non-current liabilities
Total liabilities
$
$
Common stock $
December 31, 2024
Series A Preferred stock $
authorized,
December 31, 2024
Additional paid-in capital
Accumulated other comprehensive losses
15
(127,726 )
(137,560 )
(Accumulated losses) retained earnings
(66,575 )
Total stockholders’ equity
$
$
Total liabilities and stockholders’ equity
$
$
See accompanying notes to unaudited condensed consolidated financial statements.
Coronado Global Resources Inc.
Unaudited Condensed Consolidated Statements of Operations and Comprehensive Income
(In US$ thousands, except share data)
Three months ended
Six months ended
Note
2025
2024
2025
2024
Revenues:
Coal revenues
$
$
$
$
Other revenues
Total revenues
3
Costs and expenses:
Cost of coal revenues (exclusive of items
shown separately below)
Depreciation, depletion and amortization
Freight expenses
Stanwell rebate
Other royalties
Selling, general, and administrative expenses
Total costs and expenses
Other (expense) income:
Interest expense, net
(20,964 )
(13,116 )
(38,862 )
(26,445 )
Loss on debt extinguishment
(1,050 )
(1,050 )
(Increase) decrease in provision for credit
losses
(183 )
(813 )
Other, net
(906 )
(241 )
Total other expense, net
(20,225 )
(13,995 )
(40,966 )
(15,139 )
(Loss) income before tax
(67,737 )
(201,769 )
Income tax (expense) benefit
(8,466 )
(7,401 )
(3,290 )
Net (loss) income attributable to Coronado
Global Resources Inc.
$
(76,203 )
$
$
(172,401 )
$
Other comprehensive loss, net of income
taxes:
Foreign currency translation adjustments
(17,066 )
Total comprehensive income (loss)
(17,066 )
Total comprehensive (loss) income
attributable to Coronado Global Resources
Inc.
$
(69,195 )
$
$
(162,567 )
$
(867 )
(Loss) earnings per share of common stock
Basic
13
(0.45 )
(1.03 )
Diluted
13
(0.45 )
(1.03 )
See accompanying notes to unaudited condensed consolidated financial statements.
Coronado Global Resources Inc.
Unaudited Condensed Consolidated Statements of Stockholders’ Equity
(In US$ thousands, except share data)
Common stock
Preferred stock
Additional
Accumulated other
Retained earnings
Total
paid in
comprehensive
(Accumulated
stockholders
Shares
Amount
Series A
Amount
capital
losses
losses)
equity
Balance December 31, 2024
$
$
$
$
(137,560 )
$
$
Net loss
—
—
(96,198 )
(96,198 )
Other comprehensive income
—
—
Total comprehensive income (loss)
—
—
(96,198 )
(93,372 )
Share-based compensation for equity
classified awards
—
—
(1,188 )
(1,188 )
Dividends
—
—
(8,382 )
(8,382 )
Balance March 31, 2025
$
$
$
$
(134,734 )
$
$
Net loss
—
—
(76,203 )
(76,203 )
Other comprehensive income
—
—
Total comprehensive income (loss)
—
—
(76,203 )
(69,195 )
Share-based compensation for equity
classified awards
—
—
Balance June 30, 2025
$
$
$
$
(127,726 )
$
(66,575 )
$
Common stock
Preferred stock
Additional
Accumulated other
Total
paid in
comprehensive
Retained
stockholders
Shares
Amount
Series A
Amount
capital
losses
earnings
equity
Balance December 31, 2023
$
$
$
$
(89,927 )
$
$
Net loss
—
—
(29,001 )
(29,001 )
Other comprehensive loss
—
—
(23,288 )
(23,288 )
Total comprehensive loss
—
—
(23,288 )
(29,001 )
(52,289 )
Share-based compensation for equity
classified awards
—
—
(1,159 )
(1,159 )
Dividends
—
—
(8,382 )
(8,382 )
Balance March 31, 2024
$
$
$
$
(113,215 )
$
$
Net income
—
—
Other comprehensive income
—
—
Total comprehensive income
—
—
Share-based compensation for equity
classified awards
—
—
Balance June 30, 2024
$
$
$
$
(106,993 )
$
$
See accompanying notes to unaudited condensed consolidated financial statements.
Coronado Global Resources Inc.
Unaudited Condensed Consolidated Statements of Cash Flows
(In US$ thousands)
Six months ended
June 30,
2025
2024
Cash flows from operating activities:
Net (loss) income
$
(172,401 )
$
Adjustments to reconcile net income to cash and restricted cash provided by
operating activities:
Depreciation, depletion and amortization
Amortization of right of use asset - operating leases
Amortization of deferred financing costs
Loss on debt extinguishment
Non-cash interest expense
Amortization of contract obligations
(12,774 )
(15,064 )
(Gain) loss on disposal of property, plant and equipment
(670 )
Loss on disposal of idled asset
Gain on operating lease derecognition
(820 )
Equity-based compensation expense
(185 )
(777 )
Deferred income taxes
(25,339 )
(1,083 )
Reclamation of asset retirement obligations
(2,742 )
(3,059 )
Increase (decrease) in provision for discounting and credit losses
(200 )
Other non-cash adjustments
(105 )
(6,960 )
Changes in operating assets and liabilities:
Accounts receivable
(26,392 )
Inventories
(18,423 )
(9,379 )
Other assets
(9,050 )
Contract obligations
Accounts payable
(3,766 )
(13,088 )
Accrued expenses and other current liabilities
(71,247 )
Operating lease liabilities
(11,532 )
(11,105 )
Income tax payable
(839 )
Change in other liabilities
Net cash from operating activities
Cash flows from investing activities:
Capital expenditures
(147,401 )
(123,477 )
Proceeds from disposal of idle asset
Purchase of restricted and other deposits
(54,804 )
(1,713 )
Redemption of restricted and other deposits
Net cash used in investing activities
(177,000 )
(122,829 )
Cash flows from financing activities:
Proceeds from interest bearing liabilities and other financial liabilities
Debt issuance costs and other financing costs
(4,098 )
(2,261 )
Principal payments on interest bearing liabilities and other financial liabilities
(2,816 )
(1,596 )
Principal payments on finance lease obligations
(872 )
(68 )
Dividends paid
(8,333 )
(8,334 )
Net cash from financing activities
Net decrease in cash and cash equivalents
(78,031 )
(74,133 )
Effect of exchange rate changes on cash and cash equivalents
(471 )
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period
$
$
Supplemental disclosure of cash flow information:
Cash payments for interest
$
$
Cash refund for taxes
$
(1,620 )
$
(16,026 )
Restricted cash
$
$
See accompanying notes to unaudited condensed consolidated financial statements.
Coronado Global Resources Inc.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
1. Description of Business, Basis of Presentation
(a)
Description of the Business
Coronado Global Resources Inc. is a global producer, marketer, and exporter of a full range of metallurgical
coals, an essential element in the production of steel. The Company has a portfolio of operating mines and
development projects in Queensland, Australia, and in the states of Pennsylvania, Virginia and West Virginia in
the United States, or U.S.
(b)
Basis of Presentation
The interim unaudited condensed consolidated financial statements have been prepared in accordance with the
requirements of U.S. generally accepted accounting principles, or U.S. GAAP, and with the instructions to Form
10-Q and Article 10 of Regulation S-X related to interim financial reporting issued by the U.S. Securities and
Exchange Commission, or the SEC. Accordingly, they do not include all of the information and footnotes required
by U.S. GAAP for complete financial statements and should be read in conjunction with the audited consolidated
financial statements and notes thereto included in the Company’s Annual Report on Form 10-K filed with the
SEC and the Australian Securities Exchange, or the ASX, on February 19, 2025.
The interim unaudited condensed consolidated financial statements are presented in U.S. dollars, unless
otherwise stated. They include the accounts of Coronado Global Resources Inc. and its wholly-owned
subsidiaries. References to “US$” or “USD” are references to U.S. dollars. References to “A$” or “AUD” are
references to Australian dollars, the lawful currency of the Commonwealth of Australia. The “Company” and
“Coronado” are used interchangeably to refer to Coronado Global Resources Inc. and its subsidiaries,
collectively, or to Coronado Global Resources Inc., as appropriate to the context. All intercompany balances and
transactions have been eliminated upon consolidation.
In the opinion of management, these interim financial statements reflect all normal, recurring adjustments
necessary for the fair presentation of the Company’s financial position, results of operations, comprehensive
income, cash flows and changes in equity for the periods presented. Balance sheet information presented herein
as of December 31, 2024 has been derived from the Company’s audited consolidated balance sheet at that date.
The Company’s results of operations for the three and six months ended June 30, 2025 are not necessarily
indicative of the results that may be expected for the year ending December 31, 2025.
(c)
Going Concern
The Company’s earnings and cash flows from operating activities have been significantly impacted by the
continued subdued performance of Met coal markets, which has led to low realized prices for the coal the
Company sells. For the three and six months ended June 30, 2025, the Company incurred net losses of $
million and $
During the three months ended June 30, 2025, the Company completed certain initiatives to improve its liquidity
position and immediate cash flows given sustained low Met coal prices.
On June 10, 2025, the Company entered into a Deed of Amendment with Stanwell Corporation Ltd, or Stanwell,
for a prepayment for future coal sales of $
to December 2025 (with an estimated value of approximately $
physical coal delivery over
, or until such time that the obligation is fully settled, starting in 2027. Refer
to Note 11. Contract Obligations for further information.
On June 18, 2025, the Company completed refinancing of its asset-based lending facility for an aggregate
principal amount up to $
the remaining $
, limited to an eligible
borrowing base. The ABL Facility is subject to financial covenants, including maintenance of leverage ratio and
interest coverage ratio, tested quarterly and commencing on September 30, 2025. Refer to Note 9. Interest
Bearing Liabilities for further information.
As of June 30, 2025, which included the effects of the above described liquidity initiatives, the Company’s
aggregate sources of liquidity were $
restricted cash) of $
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Coronado Global Resources Inc.
On June 30, 2025, S&P downgraded the Company’s credit rating from ‘B-‘ to ‘CCC+’ and, on July 7, 2025,
Moody’s downgraded the Company’s credit rating from ‘Caa1’ to ‘Caa2’, both of which resulted in a Review Event
under the ABL Facility. On July 9, 2025, the Company successfully negotiated with the Lender, who confirmed
no changes to the terms or the availability of the ABL Facility, thereby, concluding each of the Review Events.
Continued uncertainty in Met coal markets and further deterioration of future Met coal prices could result in losses
and negative cash flows from operating activities for the remainder of 2025 and into 2026, which, combined with
other factors, could impact the Company’s ability to comply with financial covenants under the ABL Facility on
and beyond September 30, 2025.
Non-compliance with financial covenants or a potential further downgrade to the Company’s credit rating by S&P
or Moody’s may result in an Event of Default under the ABL Facility and, unless the Event of Default is cured or
a waiver is obtained, could also trigger a cross-default under the indenture, dated as of October 2, 2024, or the
Indenture, governing the
% Senior Secured Notes due in 2029, or the Notes, issued by Coronado Finance
Pty Ltd, an Australian proprietary company and a wholly-owned subsidiary of the Company. Refer to Note 9.
Interest Bearing Liabilities for further information.
The Company continues to pursue a number of initiatives including, among other things, further operating and
capital cost control measures, partial asset sales and potential other debt and non-debt funding measures. While
these plans are intended to address the events and conditions described above, these initiatives have not
progressed to a stage that provides confidence in their successful execution or timely completion.
Accordingly, management has concluded that substantial doubt exists regarding the Company’s ability to
continue as a going concern within one year after the date of these Condensed Consolidated Financial
Statements.
These Condensed Consolidated Financial Statements have been prepared on a going concern basis, which
contemplates the realization of assets and discharge of liabilities in the ordinary course of business and do not
include any adjustments relating to the recoverability and classification of recorded asset amounts or the amounts
and classification of liabilities that might result from the outcome of the uncertainties described above. These
adjustments may be material.
2. Summary of Significant Accounting Policies
Please see Note 2 “Summary of Significant Accounting Policies” contained in the audited consolidated financial
statements for the year ended December 31, 2024 included in Coronado Global Resources Inc.’s Annual Report
on Form 10-K filed with the SEC and ASX on February 19, 2025.
(a) Newly Adopted Accounting Standards
During the period, there has been no new Accounting Standards Update, or ASU, issued by the Financial
Accounting Standards Board, or the FASB, that had a material impact on the Company’s consolidated financial
statements.
(b) Accounting Standards Not Yet Implemented
ASU No. 2023-09 “Income Taxes” (Topic 740)
: In December 2023, the FASB issued ASU 2023-09, which
modifies the rules on income tax disclosures to require companies to disclose specific categories in the rate
reconciliation, the income or loss from continuing operations before income tax expense or benefit (separated
between domestic and foreign) and income tax expense or benefit from continuing operations (separated by
federal, state, and foreign). The updated standard is effective for annual periods beginning after December 15,
2024. The Company is currently evaluating the impact that the updated standard will have in its financial
statement disclosures.
ASU No. 2024-03 “Income Statement – Reporting Comprehensive Income – Expense Disaggregation
Disclosures” (Subtopic 220-40)
: Disaggregation of Income Statement Expenses. In November 2024, the FASB
issued 2024-03, which require disclosure, in the notes to financial statements, of specified information about
certain costs and expenses. The amendments aim to improve financial reporting by requiring that public business
entities disclose additional information about specific expense categories in the notes to financial statements at
interim and annual reporting periods. The updated standard is effective for annual reporting periods beginning
after December 15, 2026, and interim reporting periods beginning after December 15, 2027. Early adoption is
permitted. The Company is currently evaluating the impact that the updated standard will have in its financial
statement disclosures.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Coronado Global Resources Inc.
There have been no other recent accounting pronouncements not yet effective that have significance, or potential
significance, to the Company’s consolidated financial statements.
(c) Reclassifications
Certain amounts in the prior period Condensed Consolidated Balance Sheet have been reclassified to conform
to the current period presentation. These reclassifications relate to the presentation of contract obligations, which
were previously reported within different financial statement line items. These changes had no impact on the
Company’s previously reported net income (loss).
3. Segment Information
The Company has a portfolio of operating mines and development projects in Queensland, Australia, and in the
states of Pennsylvania, Virginia and West Virginia in the U.S. The Australian Operations comprise the
%-
owned Curragh producing mine complex. The U.S. Operations comprise
%-owned producing mine
complexes (Buchanan and Logan) and
The Company operates its business along
the
operating decision maker, or CODM, manages and allocates resources to the various components of the
Company’s business.
The CODM uses Adjusted EBITDA as the primary metric to measure each segment’s operating performance.
Adjusted EBITDA is not a measure of financial performance in accordance with U.S. GAAP. Investors, analysts,
lenders and rating agencies should be aware that the Company’s presentation of Adjusted EBITDA may not be
comparable to similarly titled financial measures used by other companies.
Adjusted EBITDA is defined as earnings before interest, taxes, depreciation, depletion and amortization and other
foreign exchange losses. Adjusted EBITDA is also adjusted for certain discrete items that management exclude
in analyzing each of the Company’s segments’ operating performance. “Other and corporate” relates to additional
financial information for the corporate function such as financial reporting and accounting, treasury, legal, human
resources, compliance, and tax. As such, the corporate function is not determined to be a reportable segment
but is discretely disclosed for purposes of reconciliation to the Company’s unaudited Condensed Consolidated
Financial Statements.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Coronado Global Resources Inc.
Reportable segment results as of and for the three and six months ended June 30, 2025 and 2024 are presented
below:
(in US$ thousands)
Australia
United States
Other and
Corporate
Total
Three months ended June 30, 2025
Total revenues
$
$
$
$
Less:
Mining costs
(1)
(179,256 )
(158,806 )
(338,062 )
Other operating costs
(1)
(92,216 )
(32,005 )
(124,221 )
Total operating costs
(271,472 )
(190,811 )
(462,283 )
Other and unallocated costs
(2)
(42 )
(7,551 )
(6,166 )
Segment adjusted EBITDA
(10,200 )
(7,551 )
(570 )
Total assets
Capital expenditures
Three months ended June 30, 2024
Total revenues
$
$
$
$
Less:
Mining costs
(1)
(218,897 )
(145,521 )
(364,418 )
Other operating costs
(1)
(145,771 )
(37,134 )
(182,905 )
Total operating costs
(364,668 )
(182,655 )
(547,323 )
Other and unallocated costs
(2)
(8,259 )
(5,716 )
Segment adjusted EBITDA
(8,259 )
Total assets
Capital expenditures
Six months ended June 30, 2025
Total revenues
$
$
$
$
Less:
Mining costs
(1)
(421,266 )
(305,619 )
(726,885 )
Other operating costs
(1)
(188,574 )
(60,509 )
(249,083 )
Total operating costs
(609,840 )
(366,128 )
(975,968 )
Other and unallocated costs
(2)
(304 )
(15,915 )
(14,545 )
Segment adjusted EBITDA
(75,044 )
(15,915 )
(73,386 )
Total assets
Capital expenditures
Six months ended June 30, 2024
Total revenues
$
$
$
$
Less:
—
—
—
—
Mining costs
(1)
(536,762 )
(293,103 )
(829,865 )
Other operating costs
(1)
(290,640 )
(72,771 )
(363,411 )
Total operating costs
(827,402 )
(365,874 )
(1,193,276 )
Other and unallocated costs
(2)
(16,642 )
(13,295 )
Segment adjusted EBITDA
(16,642 )
Total assets
Capital expenditures
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Coronado Global Resources Inc.
(1)
The significant expense category and amount aligns with the segment-level information that is regularly provided to the CODM.
(2)
Other and unallocated items for other and corporate includes selling, general and administrative expenses.
The reconciliations of Consolidated Adjusted EBITDA to net loss attributable to the Company for the three and
six months ended June 30, 2025 and 2024 are as follows:
Three months ended
Six months ended
June 30,
June 30,
(in US$ thousands)
2025
2024
2025
2024
Consolidated Adjusted EBITDA
$
(570 )
$
$
(73,386 )
$
Depreciation, depletion and amortization
(45,508 )
(51,263 )
(86,029 )
(96,612 )
Interest expense, net
(1)
(20,964 )
(13,116 )
(38,862 )
(26,445 )
Other foreign exchange (losses) gains
(2,159 )
Loss on debt extinguishment
(1,050 )
(1,050 )
Losses on idled assets
(3)
(13 )
(1,677 )
(1,848 )
(2,164 )
(Increase) decrease in provision for
discounting and credit losses
(183 )
(813 )
Net (loss) income before tax
(67,737 )
(201,769 )
Income tax benefit (expense)
(8,466 )
(7,401 )
(3,290 )
Net (loss) income
$
(76,203 )
$
$
(172,401 )
$
(1)
and $
(2)
balances in certain entities within the group that are denominated in currencies other than their respective functional
currencies. These gains and losses are included in “Other, net” on the unaudited Condensed Consolidated Statement of
Operations and Comprehensive Income.
(3)
The reconciliations of capital expenditures per the Company’s segment information to capital expenditures
disclosed on the unaudited Condensed Consolidated Statements of Cash Flows for the six months ended June
30, 2025 and 2024 are as follows:
Six months ended June 30,
(in US$ thousands)
2025
2024
Capital expenditures per unaudited Condensed Consolidated Statements
of Cash Flows
$
$
Net movement in accruals for capital expenditures
Payment for capital acquired in prior periods
(10,790 )
Capital acquired through finance lease
Advance payment to acquire long lead capital
(141 )
Capital expenditures per segment detail
$
$
Disaggregation of Revenue
The Company disaggregates the revenue from contracts with customers by major product group for each of the
Company’s reportable segments, as the Company believes it best depicts the nature, amount, timing and
uncertainty of revenues and cash flows. All revenue is recognized at a point in time.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Coronado Global Resources Inc.
Three months ended June 30, 2025
(in US$ thousands)
Australia
United States
Total
Product Groups:
Metallurgical coal
$
$
$
Thermal coal
Total coal revenue
Other
(1)
Total
$
$
$
Three months ended June 30, 2024
(in US$ thousands)
Australia
United States
Total
Product Groups:
Metallurgical coal
$
$
$
Thermal coal
Total coal revenue
Other
(1)(2)
Total
$
$
$
Six months ended June 30, 2025
(in US$ thousands)
Australia
United States
Total
Product Groups:
Metallurgical coal
$
$
$
Thermal coal
Total coal revenue
Other
(1)
Total
$
$
$
Three months ended June 30, 2024
(in US$ thousands)
Australia
United States
Total
Product Groups:
Metallurgical coal
$
$
$
Thermal coal
Total coal revenue
Other
(1)(2)
Total
$
$
$
(1) Other revenue for the Australian segment includes the amortization of the Stanwell non-market coal supply contract obligation liability.
(2) Other revenue for the U.S. segment includes $
from coal sales contracts cancelled at our U.S. operations.
4. Inventories
(in US$ thousands)
June 30,
2025
December 31,
2024
Raw coal
$
$
Saleable coal
Total coal inventories
Supplies and other inventory
Total inventories
$
$
Coal inventories measured at its net realizable value were $
and $
and December 31, 2024, respectively.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Coronado Global Resources Inc.
5. Other Assets
(in US$ thousands)
June 30,
2025
December 31,
2024
Other current assets
Prepayments
$
$
Long service leave receivable
Tax credits receivable
Deposits to acquire capital items
Other
Total other current assets
$
$
6. Property, Plant and Equipment
(in US$ thousands)
June 30,
2025
December 31,
2024
Land
$
$
Buildings and improvements
Plant, machinery, mining equipment and transportation vehicles
Mineral rights and reserves
Office and computer equipment
Mine development
Asset retirement obligation asset
Construction in process
Total cost of property, plant and equipment
Less accumulated depreciation, depletion and amortization
Property, plant and equipment, net
$
$
7. Accrued Expenses and Other Current Liabilities
Accrued expenses and other current liabilities consist of the following:
(in US$ thousands)
June 30,
2025
December 31,
2024
Wages and employee benefits
$
$
Taxes other than income taxes
Accrued royalties
Accrued freight costs
Accrued mining fees
Other liabilities
Total accrued expenses and other current liabilities
$
$
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Coronado Global Resources Inc.
8. Leases
During the six months ended June 30, 2025, the Company entered into a number of agreements to lease mining
equipment. On mobilization, based on the Company’s assessment of terms within these agreements, the
Company recognized right-of-use assets and operating lease liabilities of $
and finance lease liabilities of $
Information related to the Company’s right-of-use assets and related lease liabilities are as follows:
Three months ended
Six months ended
(in US$ thousands)
June 30, 2025
June 30, 2024
June 30, 2025
June 30, 2024
Operating lease costs
$
$
$
$
Cash paid for operating lease liabilities
Finance lease costs:
Amortization of right-of-use assets
Interest on lease liabilities
Total finance lease costs
$
$
$
$
(in US$ thousands)
June 30,
2025
December 31,
2024
Operating leases:
Operating lease right-of-use assets
$
$
Finance leases:
Property and equipment
Accumulated depreciation
(756 )
Property and equipment, net
Current operating lease obligations
Operating lease liabilities, less current portion
Total Operating lease liabilities
Current finance lease obligations
Finance lease liabilities, less current portion
Total Finance lease liabilities
Current lease obligation
Non-current lease obligation
Total Lease liability
$
$
June 30,
2025
December 31,
2024
Weighted Average Remaining Lease Term (Years)
Weighted average remaining lease term – finance leases
-
Weighted average remaining lease term – operating leases
Weighted Average Discount Rate
Weighted discount rate – finance lease
Weighted discount rate – operating lease
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Coronado Global Resources Inc.
The Company’s operating and finance leases have remaining lease terms of
, some of
which include options to extend the terms where the Company deems it is reasonably certain the options will be
exercised. Maturities of lease liabilities as at June 30, 2025, are as follows:
(in US$ thousands)
Operating
Lease
Finance
Lease
Year ending December 31,
2025
$
$
2026
2027
2028
2029
Total lease payments
Less imputed interest
(18,801 )
(3,750 )
Total lease liability
$
$
9. Interest Bearing Liabilities
The following is a summary of interest-bearing liabilities at June 30, 2025:
June 30, 2025
December 31, 2024
Weighted Average
Interest Rate at
June 30, 2025
Final
Maturity
% Senior Secured Notes
$
$
%
(2)
ABL Facility
%
Loan - Curragh Housing Transaction
%
(2)
Discount and debt issuance costs
(1)
(11,226 )
(12,165 )
Total interest bearing liabilities
Less: current portion
(1,532 )
(1,363 )
Non-current interest-bearing liabilities
$
$
(1)
Relates to discount and debt issuance costs in connection with the Notes and Curragh Housing Transaction (each as defined below)
loan. Deferred debt issuance costs incurred in connection with the establishment of the ABL Facility have been included within "Other non-
current assets" in the unaudited Condensed Consolidated Balance Sheets.
(2)
issuance costs and discount, where applicable.
9.250% Senior Secured Notes due in 2029
As of June 30, 2025, the aggregate principal amount of the
% Senior Secured Notes due 2029, or the
Notes, outstanding was $
The Notes were issued at par and bear interest at a rate of
% per annum. Interest on the Notes is payable
semi-annually in arrears on April 1 and October 1 of each year, which began on April 1, 2025. The Notes mature
on October 1, 2029 and are senior secured obligations of the Issuer.
The terms of the Notes are governed by an indenture, dated as of October 2, 2024, or the Indenture, among
Coronado Finance Pty Ltd, as issuer, Coronado Global Resources Inc, as guarantor, the subsidiaries of
Coronado Global Resources Inc, named therein, as additional guarantors, Wilmington Trust, National
Association, as trustee and priority lien collateral trustee. The Indenture contains customary covenants for high
yield bonds, including, but not limited to, limitations on investments, liens, indebtedness, asset sales, transactions
with affiliates and restricted payments, including payment of dividends on capital stock.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Coronado Global Resources Inc.
Upon the occurrence of a “Change of Control Triggering Event”, as defined in the Indenture as the occurrence of
Change of Control and Rating Decline (each as defined in the Indenture), the Issuer is required to offer to
repurchase the Notes at
% of the aggregate principal amount thereof, plus accrued and unpaid interest, if
any, to, but excluding, the repurchase date. The Issuer also has the right to redeem the Notes at
% of the
aggregate principal amount thereof, plus accrued and unpaid interest, if any, to, but excluding, the repurchase
date, following the occurrence of a Change of Control Triggering Event, provided that the Issuer redeems at least
% of the Notes outstanding prior to such Change of Control Triggering Event. Upon the occurrence of certain
changes in tax law (as described in the Indenture), the Issuer may redeem all of the Notes at a redemption price
equal to
% of the principal amount of the Notes to be redeemed plus accrued and unpaid interest, if any, to,
but excluding, the redemption date.
The Indenture contains customary events of default, including failure to make required payments, failure to
comply with certain agreements or covenants, failure to pay or acceleration of certain other indebtedness, certain
events of bankruptcy and insolvency, and failure to pay certain judgments. An event of default under the Indenture
will allow either the Trustee or the holders of at least
% in aggregate principal amount of the then-outstanding
Notes to accelerate, or in certain cases, will automatically cause acceleration of, the amounts due under the
Notes.
As of June 30, 2025, the Company was in compliance with all applicable covenants under the Indenture.
The carrying value of debt issuance costs, recorded as a direct deduction from the face amount of the Notes,
were $
ABL Facility
On June 18, 2025, the Company, Coronado Coal Corporation, a Delaware corporation and wholly owned
subsidiary of the Company, Coronado Finance Pty Ltd, an Australian proprietary company and a wholly owned
subsidiary of the Company, or an Australian Borrower, Coronado Curragh Pty Ltd, an Australian proprietary
company and wholly owned subsidiary of the Company, or an Australian Borrower and, together with the other
Australian Borrower, the Borrowers, and the other guarantors party thereto, collectively with the Company, the
Guarantors and, together with the Borrowers, the Loan Parties, entered into an amendment and restatement of
its existing senior secured asset-based revolving credit agreement in an initial aggregate principal amount of
$
Agent, Global Loan Agency Services Australia Nominees Pty Ltd, as Collateral Agent, and Highland Park XII Pte.
Ltd., an affiliate of Oaktree Capital Management, L.P., as Lender. The ABL Facility amended and restated the
Company’s predecessor senior secured asset-based revolving credit agreement, dated May 8, 2023 (as
amended and restated from time to time), and as a result, The Hongkong and Shanghai Banking Corporation
Limited and DBS Bank Limited, Australian branch, ceased to be lenders.
The ABL Facility is a revolving credit facility that matures in 2028 and provides for up to $
borrowings. Availability under the ABL Facility is limited to an eligible borrowing base, determined by applying
customary advance rates to eligible accounts receivable and inventory. As of June 30, 2025, the eligible
borrowing base under the ABL Facility was $
available and undrawn.
Borrowings under the ABL Facility bear interest at a rate of
% per annum and are subject to an interest make-
whole premium, payable on any refinance or prepayment during the first
The undrawn capacity under the ABL Facility remains available for a further
ABL Facility and is subject to a commitment fee of
% per annum.
The ABL Facility is subject to financial covenants , including a covenant regarding the maintenance of leverage
ratio and interest coverage ratio, as described in the ABL Facility, commencing on September 30, 2025.
The ABL Facility also contains customary representations and warranties and affirmative and negative covenants
including, among others, covenants relating to the payment of dividends, or purchase or redemption of, with
respect to any equity interests of the Company or any of its subsidiaries, covenants relating to financial reporting,
covenants relating to the incurrence of liens or encumbrances, covenants relating to the incurrence or
prepayment of certain debt, compliance with laws, use of proceeds, maintenance of properties, maintenance of
insurance, payment obligations, financial accommodation, mergers and sales of all or substantially all of the
assets of the Loan Parties’ and limitations on changes in the nature of the Loan Parties’ business.
The ABL Facility provides for customary events of default, including, among other things, the event of
nonpayment of principal, interest, fees, or other amounts, a representation or warranty proving to have been
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Coronado Global Resources Inc.
materially incorrect when made, failure to perform or observe certain covenants within a specified period of time,
a cross-default to certain material indebtedness, the bankruptcy or insolvency of the Company and certain of its
subsidiaries, monetary judgment defaults of a specified amount, invalidity of any loan documentation, and ERISA
defaults resulting in liability of a material amount and a two notch downgrade of the credit rating by S&P or
Moody’s in respect of a Loan Party which applies as at June 18, 2025 or a trading halt in respect of such Loan
Party for more than
or cure period, if any), the Administrative Agent may and, at the direction of the Lender, shall declare all amounts
owing under the ABL Facility immediately due and payable, terminate the Lender’s commitment to make loans
under the ABL Facility and/or exercise any and all remedies and other rights under the ABL Facility. For certain
defaults related to insolvency and receivership, the commitments of the Lender will be automatically terminated
and all outstanding loans and other amounts will become immediately due and payable.
A
Review Event will occur under the ABL Facility if any one or more of the following occurs: (a) a downgrade of
the credit rating by S&P or Moody’s in respect of a Loan Party which applies as at the Closing Date; or (b) a
delisting of any listed Loan Party from the relevant stock exchange on which it was listed or a trading halt in
respect of such Loan Party for more than
Borrowers must promptly meet and consult in good faith with the Administrative Agent and the Lender to agree
on a strategy to address the relevant Review Event. If, at the end of a period of
occurrence of the Review Event, the Lender is not satisfied with the result of their discussion or meeting with the
Borrowers or do not wish to continue to provide their commitments, the Lender may declare all amounts owing
under the ABL Facility to be prepaid within another
On June 30, 2025, S&P downgraded the Company’s credit rating from ‘B-‘ to ‘CCC+’ and, on July 7, 2025,
Moody’s downgraded the Company’s credit rating from ‘Caa1’ to ‘Caa2’, both of which resulted in a Review Event
under the ABL Facility. On July 9, 2025, the Company successfully negotiated with the Lender, who confirmed
no changes to the terms or the availability of the ABL Facility, thereby, concluding each of the Review Events. A
potential further downgrade to the Company’s credit rating by S&P or Moody’s may result in an Event of Default
under the ABL Facility, unless the Event of Default is cured or a waiver is obtained .
To establish the ABL Facility, the Company incurred debt issuance costs of $
elected under its accounting policy to present debt issuance costs incurred before the debt liability is recognized
(e.g. before the debt proceeds are received) as an asset which will be amortized ratably over the term of the ABL
Facility. The costs will not be subsequently reclassified as a direct deduction of the liability. The carrying value of
debt issuance costs, recorded as “Other non-current assets” in the Condensed Consolidated Balance Sheets
was $
Predecessor ABL Facility
On June 18, 2025, the ABL Facility amended and restated the predecessor ABL Facility, which resulted in the
extinguishment of the predecessor ABL Facility. As a result of the early termination of the predecessor ABL
Facility, the Company recorded a loss on debt extinguishment of $
Consolidated Statement of Operations and Comprehensive Income for each of the three and six months ended
June 30, 2025.
Loan – Curragh Housing Transaction
On May 16, 2024, the Company completed an agreement for accommodation services and the sale and
leaseback of housing and accommodation assets with a regional infrastructure and accommodation service
provider, or collectively, the Curragh Housing Transaction. Refer to Note 10. “Other Financial Liabilities” for further
information.
In connection with the Curragh Housing Transaction, the Company borrowed $
the same regional infrastructure and accommodation service provider. This amount was recorded as “Interest
Bearing Liabilities” in the unaudited Condensed Consolidated Balance Sheets. The amount borrowed is payable
in equal monthly installments over a period of
, with an effective interest rate of
%. The Curragh
Housing Transaction loan is not subject to any financial covenants.
As of June 30, 2025, the carrying value of the loan, net of issuance costs of $
million of which is classified as a current liability.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Coronado Global Resources Inc.
10. Other Financial Liabilities
The following is a summary of other financial liabilities as at June 30, 2025:
June 30, 2025
December 31,
2024
Collateralized financial liabilities payable to third-party financing companies
$
$
Collateralized financial liabilities - Curragh Housing Transaction
Debt issuance costs
(955 )
(988 )
Total other financial liabilities
Less: current portion
Non-current other financial liabilities
$
$
Collateralized financial liabilities – Curragh Housing Transaction
The Curragh Housing Transaction did not satisfy the sale criteria under Accounting Standards Codification, or
ASC, 606 – Revenues from Contracts with Customers and was deemed a financing arrangement. As a result,
proceeds of $
owned by the Company in connection with the Curragh Housing Transaction were recognized as “Other Financial
Liabilities” on the Company’s unaudited Condensed Consolidated Balance Sheets. The term of the financing
arrangement is
%. This liability will be settled in equal monthly
payments as part of the accommodation services arrangement.
In connection with the Curragh Housing Transaction, the Company has granted the counterparty mortgages over
certain leasehold and freehold land. The counterparty’s rights are subject to a priority deed in favor of the
Company’s senior secured parties including, but not limited to, holders of the Notes, lenders under the ABL
Facility and Stanwell.
The carrying value of this financial liability, net of issuance costs of $
2025, $
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Coronado Global Resources Inc.
11. Contract Obligations
(US$ thousands)
June 30, 2025
December 31,
2024
Current
Coal leases contract liability
$
$
Stanwell below market coal supply agreement
$
$
Non-current
Coal leases contract liability
$
$
Stanwell below market coal supply agreement
Deferred consideration liability
Prepaid coal supply liability - Stanwell
$
$
Prepaid Coal Supply Liability - Stanwell
On June 10, 2025, the Company and Stanwell Corporation Ltd, or Stanwell, entered into a deed of amendment
and amended the New Coal Supply Agreement dated July 12, 2019, or NCSA, whereby Stanwell will provide
approximately $
tonnage of thermal coal under the NCSA.
The Deed of Amendment included a $
rebate waiver and deferral from April 2025 to December 2025 (with an estimated value of approximately $
million), as they are incurred, both of which will be settled through reduction of the gross proceeds to be received
on the physical delivery of thermal coal to Stanwell of up to
, or until such time
that the obligation is fully settled, starting in 2027. This Prepaid Coal Supply Liability bears interest of
% per
annum.
For the three and six months ended June 30, 2025, the Company recognized interest expense of $
related to the financing component of the advance payment and deferred rebates.
Contract liability related to this arrangement will be settled as the physical delivery of coal occurs and performance
obligation is satisfied.
12. Income Taxes
For the six months ended June 30, 2025, the Company estimated its annual effective tax rate and applied this
effective tax rate to its year-to-date pretax income at the end of the interim reporting period. The tax effects of
unusual or infrequently occurring items, including effects of changes in tax laws or rates and changes in judgment
about the realizability of deferred tax assets, are reported in the interim period in which they occur.
The Company’s 2025 estimated annual effective tax rate is
%. This rate is impacted by mine depletion
deductions in the U.S. and the rate results from combining the annual effective tax rate of the U.S. and Australian
Operations. Accordingly, the Company had an income tax benefit of $
$
Income tax expense of $
annual effective tax rate of
% for the period, which included a discrete benefit of $
prior year for the U.S.
The Company utilizes the “more likely than not” standard in recognizing a tax benefit in its financial statements.
For the three months ended June 30, 2025, the Company had
expense. If accrual for interest or penalties is required, it is the Company’s policy to include these as a component
of income tax expense. The Company continues to carry an unrecognized tax benefit of $
million as at June 30, 2025 and December 31, 2024, respectively.
The Company is subject to taxation in the U.S. and its various states, as well as Australia and its various localities.
In the U.S. and Australia, the first tax return was lodged for the year ended December 31, 2018. In the U.S.,
companies are subject to open tax audits for a period of seven years at the federal level and five years at the
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Coronado Global Resources Inc.
state level. In Australia, companies are subject to open tax audits for a period of four years from the date of
assessment.
Congress has approved and, on July 4, 2025, President Donald Trump signed into law the One Big Beautiful Bill
Act, or the OBBBA, which is a sweeping legislative package designed to extend the expiring provisions of the
Tax Cuts and Jobs Act, or the TCJA, and deliver additional tax relief for individuals and businesses. Building on
the foundation established by the TCJA, the OBBBA, which also provides funding for national security, border
security, and immigration enforcement and promotes domestic energy production, among other priorities, also
includes several revenue offsets to mitigate some of the costs. The Company is continuing to evaluate the effects
of the OBBBA to determine the impact on the Company as guidance becomes available.
13. (Loss) earnings per Share
Basic (loss) earnings per share of common stock is computed by dividing net income attributable to the Company
stockholders for the period by the weighted-average number of shares of common stock outstanding during the
same period. Diluted earnings per share of common stock is computed by dividing net income attributable to the
Company by the weighted-average number of shares of common stock outstanding adjusted to give effect to
potentially dilutive securities.
Basic and diluted (loss) earnings per share were calculated as follows (in thousands, except per share
data):
Three months ended
June 30,
Six months ended
June 30,
(in US$ thousands, except per share data)
2025
2024
2025
2024
Numerator:
Net (loss) income attributable to Company
stockholders
$
(76,203 )
$
$
(172,401 )
$
Denominator (in thousands):
Weighted average shares of common stock
outstanding
Effects of dilutive shares
Weighted average diluted shares of common
stock outstanding
(Loss) Earnings Per Share (US$):
Basic
(0.45 )
(1.03 )
Dilutive
(0.45 )
(1.03 )
The Company’s common stock is publicly traded on the ASX in the form of CDIs, convertible at the option of
the holders into shares of the Company’s common stock on a
-for-1 basis.
14. Fair Value Measurement
The fair value of a financial instrument is the amount that will be received to sell an asset or paid to transfer a
liability in an orderly transaction between market participants at the measurement date. The fair values of financial
instruments involve uncertainty and cannot be determined with precision.
The Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of
unobservable inputs to the extent possible. The Company determines fair value based on assumptions that
market participants would use in pricing an asset or liability in the market. When considering market participant
assumptions in fair value measurements, the following fair value hierarchy distinguishes between observable and
unobservable inputs, which are categorized in one of the following levels:
Level 1 Inputs: Unadjusted quoted prices in active markets for identical assets or liabilities accessible to the
reporting entity at the measurement date.
Level 2 Inputs: Other than quoted prices that are observable for the asset or liability, either directly or indirectly,
for substantially the full term of the asset or liability.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Coronado Global Resources Inc.
Level 3 Inputs: Unobservable inputs for the asset or liability used to measure fair value to the extent that
observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity
for the asset or liability at measurement date.
Financial Instruments Measured on a Recurring Basis
As of June 30, 2025, there were
basis.
Other Financial Instruments
The following methods and assumptions are used to estimate the fair value of other financial instruments as of
June 30, 2025 and December 31, 2024:
●
and other current financial liabilities: The carrying amounts reported in the unaudited Condensed
Consolidated Balance Sheets approximate fair value due to the short maturity of these instruments.
●
values approximate the carrying values reported in the unaudited Condensed Consolidated Balance
Sheets.
●
cost. As of June 30, 2025, the fair value of the amounts drawn under the ABL Facility approximates the
carrying value reported in the consolidated balance sheets. The estimated fair value of the Notes as of
June 30, 2025 was approximately $
not considered active (Level 2). The estimated fair value of the Curragh Housing loan is $
based upon unobservable inputs (Level 3).
15. Accumulated Other Comprehensive Losses
The Company’s Accumulated Other Comprehensive Losses consists of foreign currency translation adjustment
of subsidiaries for which the functional currency is different to the Company’s functional currency in U.S. dollar.
Accumulated other comprehensive losses consisted of the following at June 30, 2025:
(in US$ thousands)
Foreign
currency
translation
adjustments
Balance at December 31, 2024
$
(137,560 )
Net current-period other comprehensive loss:
Loss in other comprehensive income before reclassifications
(10,243 )
Gain on long-term intra-entity foreign currency transactions
Total net current-period other comprehensive income
Balance at June 30, 2025
$
(127,726 )
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Coronado Global Resources Inc.
16. Commitments
(a) Mineral Leases
The Company leases mineral interests and surface rights from land owners under various terms and royalty
rates. The future minimum royalties and lease rental payments under these leases as of June 30, 2025 are as
follows:
(in US$ thousands)
Amount
Year ending December 31,
2025
$
2026
2027
2028
2029
Thereafter
Total
$
Mineral leases are not in scope of ASC 842 and continue to be accounted for under the guidance in ASC 932,
Extractive Activities – Mining.
(b) Other commitments
As of June 30, 2025, purchase commitments for capital expenditures were $
within the next twelve months.
In Australia, the Company has generally secured the ability to transport coal through rail contracts and coal export
terminal contracts that are primarily funded through take-or-pay arrangements with terms ranging up to
.
In the U.S., the Company typically negotiates its rail and coal terminal access on an annual basis. As of June
30, 2025, these Australian and U.S. commitments under take-or-pay arrangements totaled $
which approximately $
17. Contingencies
Surety bond, letters of credit and bank guarantees
In the normal course of business, the Company is a party to certain guarantees and financial instruments with
off-balance sheet risk, such as bank guarantees, letters of credit and performance or surety bonds.
related to these arrangements are reflected in the Company’s unaudited Condensed Consolidated Balance
Sheets. Management does not expect any material losses to result from these guarantees or off-balance sheet
financial instruments.
For the U.S. Operations, in order to provide the required financial assurance for post mining reclamation, the
Company generally uses surety bonds. The Company uses surety bonds and bank letters of credit to collateralize
certain other obligations including contractual obligations under workers’ compensation insurances. As of June
30, 2025, the Company had outstanding surety bonds of $
Company was required to cash collateralize $
obligations under workers’ compensation insurances.
For the Australian Operations, as at June 30, 2025, the Company had bank guarantees outstanding of $
million primarily in respect of certain rail and port take-or-pay arrangements of the Company.
Future regulatory changes relating to these obligations or deterioration of the Company’s credit risk rating could
result in increased obligations, additional costs or additional collateral requirements.
Restricted deposits – cash collateral
As required by certain agreements, the Company had total cash collateral in the form of deposits of $
and $
bank guarantees, other performance obligations, various other operating agreements and contractual obligations
under workers compensation insurance. These deposits are restricted and classified as “Non-current assets” in
the unaudited Condensed Consolidated Balance Sheets.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Coronado Global Resources Inc.
Future regulatory changes in relation to these obligations or deterioration of the Company’s credit risk rating
could result in increased obligations, additional costs or additional collateral requirements.
Stamp duty on Curragh acquisition
The Company, based on legal and valuation advice obtained, continues to dispute a portion of the stamp duty
paid on the acquisition of the Curragh mine in 2018 of $
appeal with the Supreme Court of Queensland on March 11, 2024. The outcome of the appeal remains uncertain
and as such, no contingent asset has been recognized at June 30, 2025.
From time to time, the Company becomes a party to other legal proceedings in the ordinary course of business
in Australia, the U.S. and other countries where the Company does business. Based on current information, the
Company believes that such other pending or threatened proceedings are likely to be resolved without a material
adverse effect on its financial condition, results of operations or cash flows. In management’s opinion, the
Company is not currently involved in any legal proceedings, which individually or in the aggregate could have a
material effect on the financial condition, results of operations and/or liquidity of the Company.
Coronado Global Resources Inc.
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Stockholders and Board of Directors of Coronado Global Resources Inc.
Results of Review of Interim Financial Statements
We have reviewed the accompanying condensed consolidated balance sheet of Coronado Global Resources
Inc. (the Company) as of June 30, 2025, the related condensed consolidated statements of operations and
comprehensive income for the three and six-month periods ended June 30, 2025 and 2024, the condensed
consolidated statements of stockholders’ equity for the three and six-month periods ended June 30, 2025 and
2024, the condensed consolidated statements of cash flows for the six-month periods ended June 30, 2025 and
2024, and the related notes (collectively referred to as the “condensed consolidated interim financial statements”).
Based on our reviews, we are not aware of any material modifications that should be made to the condensed
consolidated interim financial statements for them to be in conformity with U.S. generally accepted accounting
principles.
We have previously audited, in accordance with the standards of the Public Company Accounting Oversight
Board (United States) (PCAOB), the consolidated balance sheet of the Company as of December 31, 2024, the
related consolidated statements of operations and comprehensive income, stockholders' equity and cash flows
for the year then ended, and the related notes (not presented herein), and in our report dated February 19, 2025,
we expressed an unqualified audit opinion on those consolidated financial statements. In our opinion, the
information set forth in the accompanying condensed consolidated balance sheet as of December 31, 2024, is
fairly stated, in all material respects, in relation to the consolidated balance sheet from which it has been derived.
The Company's Ability to Continue as a Going Concern
As disclosed in Note 1, certain conditions indicate that the Company may be unable to continue as a going
concern. The accompanying condensed consolidated interim financial statements do not include any adjustments
that might result from the outcome of this uncertainty.
Basis for Review Results
These financial statements are the responsibility of the Company's management. We are a public accounting
firm registered with the PCAOB and are required to be independent with respect to the Company in accordance
with the U.S. federal securities laws and the applicable rules and regulations of the SEC and the PCAOB. We
conducted our review in accordance with the standards of the PCAOB. A review of interim financial statements
consists principally of applying analytical procedures and making inquiries of persons responsible for financial
and accounting matters. It is substantially less in scope than an audit conducted in accordance with the standards
of the PCAOB, the objective of which is the expression of an opinion regarding the financial statements taken as
a whole. Accordingly, we do not express such an opinion.
/s/ Ernst & Young
Brisbane, Australia
August 11, 2025.
Coronado Global Resources Inc.
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS
The following Management’s Discussion and Analysis of our Financial Condition and Results of Operations
should be read in conjunction with the unaudited Condensed Consolidated Financial Statements and the related
notes to those statements included elsewhere in this Quarterly Report on Form 10-Q. In addition, this Quarterly
Report on Form 10-Q should be read in conjunction with the Consolidated Financial Statements for year ended
December 31, 2024 included in Coronado Global Resources Inc.’s Annual Report on Form 10-K for the year
ended December 31, 2024, filed with the SEC and the ASX on February 19, 2025.
Unless otherwise noted, references in this Quarterly Report on Form 10-Q to “we,” “us,” “our,” “Company,” or
“Coronado” refer to Coronado Global Resources Inc. and its consolidated subsidiaries and associates, unless
the context indicates otherwise.
All production and sales volumes contained in this Quarterly Report on Form 10-Q are expressed in metric tons,
or Mt, millions of metric tons, or MMt, or millions of metric tons per annum, or MMtpa, except where otherwise
stated. One Mt (1,000 kilograms) is equal to 2,204.62 pounds and is equivalent to 1.10231 short tons. In addition,
all dollar amounts contained herein are expressed in United States dollars, or US$, except where otherwise
stated. References to “A$” are references to Australian dollars, the lawful currency of the Commonwealth of
Australia. Some numerical figures included in this Quarterly Report on Form 10-Q have been subject to rounding
adjustments. Accordingly, numerical figures shown as totals in certain tables may not equal the sum of the figures
that precede them.
CAUTIONARY NOTICE REGARDING FORWARD -LOOKING STATEMENTS
This Quarterly Report on Form 10-Q contains “forward-looking statements” within the meaning of Section 27A of
the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended,
or the Exchange Act, concerning our business, operations, financial performance and condition, the coal, steel
and other industries, as well as our plans, objectives and expectations for our business, operations, financial
performance and condition. Forward-looking statements may be identified by words such as “may,” “could,”
“believes,” “estimates,” “expects,” “intends,” “plans,” “anticipate,” “forecast,” “outlook,” “target,” “likely,”
“considers” and other similar words.
Any forward-looking statements involve known and unknown risks, uncertainties, assumptions and other
important factors that could cause actual results, performance, events or outcomes to differ materially from the
results, performance, events or outcomes expressed or anticipated in these statements, many of which are
beyond our control. Such forward-looking statements are based on an assessment of present economic and
operating conditions on a number of best estimate assumptions regarding future events and actions. These
factors are difficult to accurately predict and may be beyond our control. Factors that could affect our results, our
announced plans, or an investment in our securities include, but are not limited to:
●
●
●
governing such indebtedness;
●
policies and other barriers to trade. For example, on March 12, 2025, the U.S. government imposed a
25% tariff on steel imports, and on April 2, 2025, the U.S. government announced a baseline 10% tariff
on certain imports and higher tariffs on imports from certain countries. These developments underscore
the risk and volatility in global supply chains, financial markets and international trade policies;
●
unrest and wars, as well as risks related to government actions with respect to trade agreements, treaties
or policies;
●
commodities, such as diesel fuel, steel, explosives and tires, as the result of inflationary pressures or
otherwise;
●
developments;
Coronado Global Resources Inc.
●
relating to mining activities, including possible impacts on global climate issues, which could result in
increased regulation of coal combustion and requirements to reduce GHG emissions in many
jurisdictions, including federal and state government initiatives to control GHG emissions could increase
costs associated with coal production and consumption, such as costs for additional controls to reduce
carbon dioxide emissions or costs to purchase emissions reduction credits to comply with future
emissions trading programs, which could significantly impact our financial condition and results of
operations, affect demand for our products or our securities and reduced access to capital and insurance;
●
one or more of our major customers, including customers in the steel industry, key suppliers/contractors,
which among other adverse effects, could lead to reduced demand for our coal, increased difficulty
collecting receivables and customers and/or suppliers asserting force majeure or other reasons for not
performing their contractual obligations to us;
●
performance or otherwise;
●
●
produced, cause delay or suspend coal deliveries, or increase the cost of operating our business;
●
●
●
●
●
●
arrangements with rail and port operators;
●
●
●
●
any exposure to hazardous substances caused by our operations, as well as any environmental
contamination our properties may have or our operations may cause;
●
●
regulations;
●
●
proprietary or confidential information about us, our customers or other third parties;
●
require us to recognize impairment charges related to those assets;
●
●
impact our reported financial results; and
Coronado Global Resources Inc.
●
Factors,” set forth in Part II, Item 1A of this Quarterly Report on Form 10-Q.
We make many of our forward-looking statements based on our operating budgets and forecasts, which are
based upon detailed assumptions. While we believe that our assumptions are reasonable, we caution that it is
very difficult to predict the impact of known factors, and it is impossible for us to anticipate all factors that could
affect our actual results.
See Part I, Item 1A. “Risk Factors” of our Annual Report on Form 10-K for the year ended December 31, 2024,
filed with the SEC and ASX on February 19, 2025, and Part II, Item 1A. “Risk Factors” of our Quarterly Report
on Form 10-Q for the three months ended March 31, 2025, filed with the SEC and ASX on May 8, 2025, for a
more complete discussion of the risks and uncertainties mentioned above and for discussion of other risks and
uncertainties we face that could cause actual results to differ materially from those expressed or implied by these
forward-looking statements.
All forward-looking statements attributable to us are expressly qualified in their entirety by these cautionary
statements, as well as others made in this Quarterly Report on Form 10-Q and hereafter in our other filings with
the SEC and public communications. You should evaluate all forward-looking statements made by us in the
context of these risks and uncertainties.
We caution you that the risks and uncertainties identified by us may not be all of the factors that are important to
you. The forward-looking statements included in this Quarterly Report on Form 10-Q are made only as of the
date hereof. We undertake no obligation to publicly update or revise any forward-looking statement as a result of
new information, future events, or otherwise, except as required by applicable law.
Results of Operations
How We Evaluate Our Operations
We evaluate our operations based on the volume of coal we can safely produce and sell in compliance with
regulatory standards, and the prices we receive for our coal. Our sales prices are largely dependent upon the
terms of our coal sales contracts, for which prices generally are set based on daily index averages, on a quarterly
basis or annual fixed price contracts.
Our management uses a variety of financial and operating metrics to analyze our performance. These metrics
are significant factors in assessing our operating results and profitability. These financial and operating metrics
include: (i) safety and environmental metrics; (ii) Adjusted EBITDA; (iii) total sales volumes and average realized
price per Mt sold, which we define as total coal revenues divided by total sales volume; (iv) Met coal sales
volumes and average realized Met price per Mt sold, which we define as Met coal revenues divided by Met coal
sales volume; (v) average segment mining costs per Mt sold, which we define as mining costs divided by sales
volumes (excluding non-produced coal) for the respective segment; (vi) average segment operating costs per Mt
sold, which we define as segment operating costs divided by sales volumes for the respective segment; and (vii)
net cash (or net debt), which we define as cash and cash equivalents (excluding restricted cash) less outstanding
aggregate principal amount of the Notes and other interest-bearing liabilities.
Coal revenues are shown in our statement of operations and comprehensive income exclusive of other revenues.
Generally, export sale contracts on Free on Board, or FOB, require us to bear the cost of freight from our mines
to the applicable outbound shipping port, while freight costs from the port to the end destination are typically
borne by the customer. Certain export sales from our U.S. Operations are recognized when title to the coal
passes to the customer at the mine load out similar to a domestic sale. For our domestic sales, customers typically
bear the cost of freight. As such, freight expenses are excluded from the cost of coal revenues to allow for
consistency and comparability in evaluating our operating performance.
Non-GAAP Financial Measures; Other Measures
The following discussion of our results includes references to and analysis of Adjusted EBITDA, Segment
Adjusted EBITDA and mining costs, which are financial measures not recognized in accordance with U.S. GAAP.
Non-GAAP financial measures, including Adjusted EBITDA, Segment Adjusted EBITDA and mining costs, are
useful to our investors to measure our operating performance.
Non-GAAP financial measures are intended to provide additional information only and do not have any standard
meaning prescribed by U.S. GAAP. These measures should not be considered in isolation or as a substitute for
measures of performance prepared in accordance with U.S. GAAP.
Adjusted EBITDA, a non-GAAP measure, is defined as earnings before interest, tax, depreciation, depletion and
amortization and other foreign exchange losses. Adjusted EBITDA is also adjusted for certain discrete non-
Coronado Global Resources Inc.
recurring items that we exclude in analyzing each of our segments’ operating performance. Adjusted EBITDA is
not intended to serve as an alternative to U.S. GAAP measures of performance including total revenues, total
costs and expenses, net income or cash flows from operating activities as those terms are defined by U.S. GAAP.
Adjusted EBITDA may therefore not be comparable to similarly titled measures presented by other companies.
A reconciliation of Adjusted EBITDA to its most directly comparable measure under U.S. GAAP is included below.
Segment Adjusted EBITDA is defined as Adjusted EBITDA by operating and reporting segment, adjusted for
certain transactions, eliminations or adjustments that our CODM does not consider for making decisions to
allocate resources among segments or assessing segment performance. Segment Adjusted EBITDA is used as
a supplemental financial measure by management and by external users of our financial statements, such as
investors, industry analysts and lenders, to assess the operating performance of our business.
Mining costs, a non-GAAP measure, is based on reported cost of coal revenues, which is shown on our statement
of operations and comprehensive income exclusive of freight expense, Stanwell rebate, other royalties,
depreciation, depletion and amortization, and selling, general and administrative expenses, adjusted for other
items that do not relate directly to the costs incurred to produce coal at a mine. Mining costs excludes these cost
components as our CODM does not view these costs as directly attributabl e to the production of coal. Mining
costs is used as a supplemental financial measure by management, providing an accurate view of the costs
directly attributable to the production of coal at our mining segments, and by external users of our financial
statements, such as investors, industry analysts and ratings agencies, to assess our mine operating performance
in comparison to the mine operating performance of other companies in the coal industry.
About Coronado Global Resources Inc.
We are a producer, global marketer and exporter of high-quality Met coal products. We own a portfolio of
operating mines and development projects in Queensland, Australia, and in the states of Virginia, West Virginia
and Pennsylvania in the United States.
Our Australian Operations comprise the 100%-owned Curragh producing mine complex. Our U.S. Operations
comprise two 100%-owned producing mine complexes (Buchanan and Logan) and two development properties
(Mon Valley and Russell County). In addition to Met coal, our Australian Operations sell thermal coal domestically,
which is used to generate electricity, to Stanwell and some thermal coal in the export market. Our U.S. Operations
primarily focus on the production of Met coal for the North American domestic and seaborne export markets and
also produce and sell some thermal coal that is extracted in the process of mining Met coal.
Overview
Our results for the three months ended June 30, 2025, were materially impacted by continued weakness in the
Met coal markets, stemming from a combination of weak steel demand and structural oversupply from key steel-
producing regions, such as China, Europe and India, and continuing macroeconomic and trade policy uncertainty,
which continues to affect investor and consumer confidence .
The Australian Premium Low Volatile Hard Coking Coal index, or AUS PLV HCC, averaged $184.2 per Mt for
the three months ended June 30, 2025, $58.1 per Mt lower compared to the same period in 2024, and $0.9 Mt
lower compared to the three months ended March 31, 2025.
Although coal markets remained unfavorable, our operations performed strongly in the second quarter compared
to the first quarter of 2025, delivering higher quarter-on -quarter run-of-mine, or ROM, coal production, saleable
production and sales volumes. ROM coal production for the three months ended June 30, 2025, was 1.2 MMt,
or 20% higher compared to the first quarter of 2025 and was the primary contributor to the significant build in
ROM coal inventory in the second quarter.
For the three months ended June 30, 2025, saleable production and sales volumes were 3.7 MMt, 0.4 MMt lower
compared to the three months ended June 30, 2024, primarily driven by our Australia Operations due to above-
average wet weather events for the second quarter of 2025, unforeseen equipment downtime and change of
mine sequencing, caused by delays in drill preparation reducing excavator performance, which impacted
production.
In the June quarter, we commissioned our Buchanan expansion project at our U.S. Operations while major
development works significantly progressed at the Mammoth mine in our Australian Operations. Both of these
projects are expected to increase production into the second half of 2025
Our saleable production for the six months ended June 30, 2025, was 7.2 MMt, 0.3 MMt lower than the same
period in 2024, while our sales volume for the six months ended June 30, 2025, of 7.1 MMt, was 0.7 MMt lower
than the six months ended June 30, 2024. Lower saleable production and sales volume in 2025, were primarily
driven by above-average seasonal wet weather and equipment disruption at our Australian Operations and lost-
Coronado Global Resources Inc.
time due to unforeseen equipment downtime and adverse geological features impacting production yield at our
U.S. Operations.
Coal revenues of $900.8 million for the six months ended June 30, 2025, decreased $396.6 million compared to
the same period in 2024, were driven by lower sales volumes, and lower average realized Met prices, $49.5 per
Mt sold lower compared to the six months ended June 30, 2024.
Mining costs for the six months ended June 30, 2025 were $103.0 million lower compared to the corresponding
period in 2024, driven primarily by reduced contractor fleets at our Australian Operations in 2024 and the
associated cost savings, and favorable average foreign exchange rates on translation of the Australian
Operations for the six months ended June 30, 2025. Mining costs per Mt sold was $102.1 for the six months
ended June 30, 2025, which was $5.6 per Mt sold lower compared to the six months ended June 30, 2024, driven
by lower mining costs partially offset by lower sales volume of 0.6 MMt.
Liquidity and Going Concern
As of June 30, 2025, Coronado had cash and cash equivalents (excluding restricted cash) of $261.6 million and
$22.4 million of undrawn capacity under the ABL Facility. As of June 30, 2025, Coronado had $500.0 million of
aggregate principal amount of interest-bearing liabilities outstanding. Our net debt of $238.4 million as of June
30, 2025 comprised of $500.0 million of aggregate principal amount of interest-bearing liabilities outstanding less
cash and cash equivalents (excluding restricted cash).
During the three months ended June 30, 2025, we completed certain initiatives to improve our liquidity position
and immediate cash flows given sustained low Met coal prices, including entry to the Deed of Amendment with
Stanwell for a coal prepayment of $75.0 million and the Stanwell rebate waiver and deferral from April 2025 to
December 2025 (with an estimated value of approximately $75.0 million), as they are incurred, of approximately
$75.0 million, and refinancing of our ABL Facility for an amount up to $150.0 million, as discussed in Part I, Item
1. “Financial Statements”, Note 11. “Contract Obligations” and Note 9. “Interest Bearing Liabilities”, respectively.
On June 30, 2025, S&P downgraded the Company’s credit rating from ‘B-‘ to ‘CCC+’ and, on July 7, 2025,
Moody’s downgraded the Company’s credit rating from ‘Caa1’ to ‘Caa2’, both of which resulted in a Review Event
under the ABL Facility. On July 9, 2025, we successfully negotiated with the Lender, who confirmed no changes
to the terms or the availability of the ABL Facility, thereby, concluding each of the Review Events.
The outlook for the Met coal market remains uncertain. A further decline in Met coal prices or continued market
volatility could result in sustained operating losses and negative operating cash flows for the remainder of 2025
and into 2026. These condition s may place pressure on our ability to comply with financial covenants under the
ABL Facility on and beyond September 30, 2025.
Non-compliance with financial covenants or a potential further downgrade to the Company’s credit rating by S&P
or Moody’s may result in an Event of Default under the ABL Facility and, unless the Event of Default is cured or
a waiver is obtained, could also trigger a cross-default under the Indenture (as defined below) governing our
Notes.
While these plans are intended to address the events and conditions described above, these initiatives have not
progressed to a stage that provides confidence in their successful execution or timely completion.
Accordingly, we concluded that substantial doubt exists regarding our ability to continue as a going concern within
one year after the date of the accompanying Condensed Consolidated Financial Statements.
Dividends
In April 2025, the Company settled previously declared dividends of $8.4 million, which were paid to stockholders
from available cash.
Safety
For our Australian Operations, the twelve-month rolling average Total Reportable Injury Frequency Rate at June
30, 2025 was 3.05, compared to a rate of 2.22 at the end of December 31, 2024. At our U.S. Operations, the
twelve-month rolling average Total Reportable Incident Rate at June 30, 2025 was 1.63, compared to a rate of
2.21 at the end of December 31, 2024.
The health and safety of our workforce is our number one priority and we remain focused on the safety and
wellbeing of all employees and contracting parties. Coronado continues to implement safety initiatives to improve
our safety rates every quarter.
Coronado Global Resources Inc.
Segment Reporting
In accordance with ASC 280, Segment Reporting, we have adopted the following reporting segments: Australia
and the United States. In addition, “Other and Corporate” is not a reporting segment but is disclosed for the
purposes of reconciliation to our consolidated financial statements.
Three Months Ended June 30, 2025 Compared to Three Months Ended June 30, 2024
Summary
The financial and operational summary for the three months ended June 30, 2025 include:
●
to a net income of $45.2 million for the three months ended June 30, 2024, which was primarily driven
by lower average realized prices and lower sales volume, partially offset by lower operating costs.
●
per Mt sold lower compared to $194.7 per Mt sold for the same period in 2024. Coking coal index prices
declined since June 30, 2024, due to oversupply of steel and consequential Met coal demand out of key
steel-producing regions, primarily in Asia.
●
same period in 2024, because of unforeseen equipment downtime and change in mine sequencing,
caused by delays in drill preparation reducing excavator performance, which impacted production at our
Australian Operations.
●
Adjusted EBITDA of $120.8 million for the three months ended June 30, 2024. The decline was due to
lower coal sales revenues, partially offset by reduced operating costs.
●
of $261.6 million and $22.4 million of undrawn capacity under the ABL Facility.
Coronado Global Resources Inc.
Three months ended
June 30,
2025
2024
Change
%
(in US$ thousands)
Revenues:
Coal revenues
$
459,337
$
664,379
$
(205,042)
Other revenues
8,542
9,449
(907)
Total revenues
467,879
673,828
(205,949)
Costs and expenses:
Cost of coal revenues (exclusive of items
shown separately below)
339,632
372,743
(33,111)
Depreciation, depletion and amortization
45,508
51,263
(5,755)
Freight expenses
62,706
60,704
2,002
Stanwell rebate
21,931
26,451
(4,520)
Other royalties
38,014
87,425
(49,411)
Selling, general, and administrative expenses
7,600
8,646
(1,046)
Total costs and expenses
515,391
607,232
(91,841)
Other income (expenses):
Interest expense, net
(20,964)
(13,116)
(7,848)
Loss on debt extinguishment
(1,050)
—
(1,050)
(Increase) decrease in provision for
credit losses
(183)
27
(210)
Other, net
1,972
(906)
2,878
Total other expenses, net
(20,225)
(13,995)
(6,230)
Net (loss) income before tax
(67,737)
52,601
(120,338)
Income tax expense
(8,466)
(7,401)
(1,065)
Net (loss) income attributable to Coronado
Global Resources, Inc.
$
(76,203)
$
45,200
$
(121,403)
Coal Revenues
Coal revenues were $459.3 million for the three months ended June 30, 2025, a decrease of $205.0 million,
compared to $664.4 million for the three months ended June 30, 2024. This decrease was primarily attributable
to lower average realized Met price and lower export Met sales volume.
Cost of Coal Revenues (Exclusive of Items Shown Separately Below)
Cost of coal revenues comprise costs related to produced tons sold, along with changes in both the volumes and
carrying values of coal inventory. Cost of coal revenues include items such as direct operating costs, which
includes employee-related costs, materials and supplies, contractor services, coal handling and preparation costs
and production taxes.
Total cost of coal revenues was $339.6 million for the three months ended June 30, 2025, $33.1 million, or 8.9%
lower, compared to $372.7 million for the three months ended June 30, 2024.
Cost of coal revenues for our Australian Operations for the three months ended June 30, 2025, were $38.1 million
lower compared to the same period in 2024, primarily driven by cost savings from reduced contractor truck and
excavator fleets since March 2024 and favorable average foreign exchange rates on translation of the Australian
Operations for the three months ended June 30, 2025, of A$/US$ 0.64 compared to 0.66 for the same period in
2024.
Cost of coal revenues for our U.S. Operations for the three months ended June 30, 2025, was $9.0 million higher
compared to the three months ended June 30, 2024, mainly due to a higher inventory drawdown as a result of
lower ROM production and lower saleable production exceeding lower sales volumes when compared to the
same period in 2024.
Depreciation, Depletion and Amortization
Depreciation, depletion and amortization was $45.5 million for the three months ended June 30, 2025, a decrease
of $5.8 million, compared to $51.3 million for the three months ended June 30, 2024. The decrease was
associated with changes to depreciation rates following annual useful life review and favorable average foreign
Coronado Global Resources Inc.
exchange rates on translation of the Australian Operations, partially offset by equipment brought into service
during the twelve months since June 30, 2024.
Stanwell Rebate
The Stanwell rebate was $21.9 million for the three months ended June 30, 2025, a decrease of $4.5 million,
compared to $26.4 million for the three months ended June 30, 2024. The decrease was largely driven by lower
realized reference coal pricing for the prior twelve-month period applicable to three months ended June 30, 2025,
used to calculate the rebate compared to the same period in 2024, and favorable foreign exchange rate on
translation of our Australian Operations.
Other Royalties
Other royalties were $38.0 million in the three months ended June 30, 2025, a decrease of $49.4 million
compared to $87.4 million for the three months ended June 30, 2024, a product of lower coal revenues coupled
with favorable foreign exchange rate on translation of our Australian Operations.
Interest expense, net
Interest expense, net was $20.9 million for the three months ended June 30, 2025, an increase of $7.8 million
compared to $13.1 million for the three months ended June 30, 2024. The increase was driven by higher average
indebtedness, due to additional borrowings under the Notes and the Curragh Housing Transaction, and lower
interest income on cash equivalents and restricted deposits during the three months ended June 30, 2025,
compared to the same period in 2024.
Income Tax Expense
Income tax expense was $8.5 million for the three months ended June 30, 2025 , an increase of $1.1 million,
compared to $7.4 million for the three months ended June 30, 2024. The income tax expense is the result of an
effective tax rate of 14.6% for the six months ended June 30, 2025.
Coronado Global Resources Inc.
Six months ended June 30, 2025 compared to Six months ended June 30, 2024
Summary
The financial and operational summary for the six months ended June 30, 2025 include:
●
to a net income of $16.2 million for the six months ended June 30, 2024. The decrease was a result of
lower coal revenues partially offset by lower costs and income tax benefit on losses in the first half of
2025 compared to income tax expense in the same period last year.
●
Mt sold lower compared to $199.3 per Mt sold for the six months ended June 30, 2024. The AUS PLV
HCC index averaged $184.6 per Mt for the six months ended June 30, 2025, $91.0 per Mt lower
compared to the same period in 2024. The downward trend is driven by improved supply from major
exporters, including Russia and Australia, and oversupply of steel, which resulted in declining demand
for Met coal.
●
six months ended June 30, 2024. Sales volumes declined due to equipment downtime and above-
average wet weather at our Australian operations, and adverse geology and surface mine idling at Logan
in our U.S. Operations.
●
compared to an income of $135.4 million for the six months ended June 30, 2024. This decrease was
primarily due to lower coal revenues partially offset by lower operating costs.
●
liabilities outstanding. As of June 30, 2025, the Company had net debt of $238.4 million, consisting of
closing cash and cash equivalents (excluding restricted cash) of $261.6 million and $500.0 million
aggregate principal amounts outstanding of interest-bearing liabilities.
Six months ended
June 30,
2025
2024
Change
%
(in US$ thousands)
Revenues:
Coal revenues
$
900,788
$
1,297,372
$
(396,584)
(30.6%)
Other revenues
16,339
44,605
(28,266)
(63.4%)
Total revenues
917,127
1,341,977
(424,850)
(31.7%)
Costs and expenses:
Cost of coal revenues (exclusive of items
shown separately below)
729,923
845,263
(115,340)
(13.6%)
Depreciation, depletion and amortization
86,029
96,612
(10,583)
(11.0%)
Freight expenses
122,894
117,526
5,368
4.6%
Stanwell rebate
43,784
57,902
(14,118)
(24.4%)
Other royalties
79,367
172,585
(93,218)
(54.0%)
Selling, general, and administrative expenses
15,933
17,461
(1,528)
(8.8%)
Total costs and expenses
1,077,930
1,307,349
(229,419)
(17.5%)
Other income (expenses):
Interest expense, net
(38,862)
(26,445)
(12,417)
47.0%
Loss on debt extinguishment
(1,050)
—
(1,050)
100.0%
Decrease in provision for discounting and
credit losses
(813)
200
(1,013)
(506.5%)
Other, net
(241)
11,106
(11,347)
(102.2%)
Total other expenses, net
(40,966)
(15,139)
(25,827)
170.6%
Net (loss) income before tax
(201,769)
19,489
(221,258)
(1,135.3%
)
Income tax benefit (expense)
29,368
(3,290)
32,658
(992.6%)
Net (loss) income attributable to Coronado Global
Resources, Inc.
$
(172,401)
$
16,199
$
(188,600)
(1,164.3%
)
Coronado Global Resources Inc.
Coal Revenues
Coal revenues were $900.8 million for the six months ended June 30, 2025, a decrease of $396.6 million,
compared to $1,297.4 million for the six months ended June 30, 2024. The decrease was driven by lower average
Met realized price combined with lower sales volume compared to the same period in 2024.
Other Revenues
Other revenues were $16.3 million for the six months ended June 30, 2025, a decrease of $28.3 million compared
to $44.6 million for the six months ended June 30, 2024. The decrease was primarily driven by a non-recurring
termination fee revenue from a coal sales contract cancelled in the first quarter of 2024 at our U.S. Operations.
Cost of Coal Revenues (Exclusive of Items Shown Separately Below)
Total cost of coal revenues was $729.9 million for the six months ended June 30, 2025, a decrease of $115.3
million, compared to $845.3 million for the six months ended June 30, 2024.
Cost of coal revenues for our Australian Operations in the six months ended June 30, 2025, were $120.5 million
lower compared to the same period in 2024, primarily driven by cost savings from reduction in contractor fleets
since March 2024 and associated costs, lower inventory drawdown, and favorable foreign exchange rate on
translation of our Australian Operations for the six months ended June 30, 2025, of A$/US$: 0.63 compared to
0.66 for the same period in 2024.
Depreciation, Depletion and Amortization
Depreciation, depletion and amortization was $86.0 million for the six months ended June 30, 2025, a decrease
of $10.6 million, as compared to $96.6 million for the six months ended June 30, 2024. The decrease was
associated with changes to depreciation rates following annual useful life review and favorable average foreign
exchange rates on translation of the Australian Operations, partially offset by the equipment brought into service
during the twelve months since June 30, 2024.
Freight Expenses
Freight expenses totaled $122.9 million for the six months ended June 30, 2025, an increase of $5.4 million
compared to $117.5 million for the six months ended June 30, 2024. Our Australian Operations contributed $10.4
million to higher sales volume shipped through WICET, which attracts higher port handling charges and higher
deficit tonnage charges compared to the six months ended June 30, 2024. Freight costs in our U.S. Operations
for the six months ended June 30, 2025 decreased by $5.0 million due to lower coal sales under FOB terms
compared to the six months ended June 30, 2024.
Stanwell Rebate
The Stanwell rebate was $43.8 million for the six months ended June 30, 2025, a decrease of $14.1 million
compared to $57.9 million for the six months ended June 30, 2024. The decrease was due to lower export sales
volume and lower realized reference coal pricing for the prior twelve-month period applicable to the six months
ended June 30, 2025, used to calculate the rebate compared to the same period in 2024 and favorable average
foreign exchange rates on translation of the Australian Operations.
Other Royalties
Other royalties were $79.4 million for the six months ended June 30, 2025, a decrease of $93.2 million, as
compared to $172.6 million for the six months ended June 30, 2024 due to lower coal revenues combined with
favorable average exchange rates on translation of the Australian Operations.
Interest expense, net
Interest expense, net was $38.9 million in the six months ended June 30, 2025, an increase of $12.4 million, as
compared to $26.4 million for the six months ended June 30, 2024. The increase was driven by higher
indebtedness due to additional borrowings under the Notes and Curragh Housing Transaction and lower interest
income on cash equivalents and restricted deposits during the six months ended June 30, 2025, compared to
the same period in 2024.
Coronado Global Resources Inc.
Other, net
Other, net was at a loss of $0.2 million for the six months ended June 30, 2025, a decrease of $11.3 million
compared to an income of $11.1 million for the six months ended June 30, 2024. The decrease was largely driven
by higher exchange losses on translation of short-term inter-entity balances between certain entities within the
group that are denominated in currencies other than their respective functional currencies.
Income Tax Benefit (Expense)
Income tax benefit of $29.4 million for the six months ended June 30, 2025, decreased by $32.7 million, compared
to $3.3 million tax expense for the six months ended June 30, 2024, primarily driven by net loss position in the
2025 period.
Supplemental Segment Financial Data
Three months ended June 30, 2025 compared to three months ended June 30, 2024
Australia
Three months ended
June 30,
2025
2024
Change
%
(in US$ thousands)
Sales volume (MMt)
2.2
2.7
(0.5)
(17.5)%
Total revenues ($)
259,845
458,491
(198,646)
(43.3)%
Coal revenues ($)
251,537
449,497
(197,960)
(44.0)%
Average realized price per Mt sold ($/Mt)
113.1
166.7
(53.6)
(32.2)%
Met coal sales volume (MMt)
1.6
2.0
(0.4)
(21.3)%
Met coal revenues ($)
230,624
429,506
(198,882)
(46.3)%
Average realized Met price per Mt sold ($/Mt)
147.5
216.2
(68.7)
(31.8)%
Mining costs ($)
179,256
218,897
(39,641)
(18.1)%
Mining cost per Mt sold ($/Mt)
80.6
81.7
(1.1)
(1.3)%
Operating costs ($)
271,472
364,668
(93,196)
(25.6)%
Operating costs per Mt sold ($/Mt)
122.0
135.3
(13.3)
(9.8)%
Segment Adjusted EBITDA ($)
(10,200)
94,582
(104,782)
(110.8)%
Coal revenues for our Australian Operations decreased largely due to lower average realized Met price per Mt
sold, which was $68.7 lower compared to the same period in 2024, and lower Met sales volume of 0.5 MMt.
Operating costs decreased by $93.2 million, or 25.6%, for the three months ended June 30, 2025, compared to
the three months ended June 30, 2024, driven by lower mining costs and lower Stanwell rebate and other
royalties, a product of lower realized prices. Mining costs were $39.6 million lower for the three months ended
June 30, 2025, driven primarily by cost savings from reduced contractor fleets in 2024 and favorable average
foreign exchange rates on translation of our Australian Operations. Mining and Operating costs per Mt sold were
$1.1 and $13.3 lower, respectively, compared to the same period in 2024, despite lower sales volume.
Segment Adjusted EBITDA loss of $10.2 million for the three months ended June 30, 2025, was $104.8 million,
or 110.8%, lower compared to income of $94.6 million for the three months ended June 30, 2024, largely driven
by lower coal revenues, partially offset by lower operating costs.
Coronado Global Resources Inc.
United States
Three months ended
June 30,
2025
2024
Change
%
(in US$ thousands)
Sales volume (MMt)
1.4
1.4
—
6.9%
Total revenues ($)
208,034
215,337
(7,303)
(3.4)%
Coal revenues ($)
207,800
214,882
(7,082)
(3.3)%
Average realized price per Mt sold ($/Mt)
143.4
158.5
(15.1)
(9.5)%
Met coal sales volume (MMt)
1.3
1.3
—
1.4%
Met coal revenues ($)
196,704
209,855
(13,151)
(6.3)%
Average realized Met price per Mt sold ($/Mt)
149.6
161.7
(12.1)
(7.5)%
Mining costs ($)
158,806
145,521
13,285
9.1%
Mining cost per Mt sold ($/Mt)
109.6
110.0
(0.4)
(0.4)%
Operating costs ($)
190,811
182,655
8,156
4.5%
Operating costs per Mt sold ($/Mt)
131.7
134.7
(3.0)
(2.2)%
Segment Adjusted EBITDA ($)
17,181
34,466
(17,285)
(50.2)%
Coal revenues for our U.S. Operations decreased by $7.1 million, largely attributed to lower average realized Met
price per Mt sold compared to the three months ended June 30, 2024, driven by oversupply of steel from key
steel producing regions which has consequently resulted in weakened demand for Met coal and lower prices
achieved from annual domestic price contracts compared to 2024.
Mining and Operating costs increased by $13.3 million and $8.2 million, respectively, for the three months ended
June 30, 2025, compared to the three months ended June 30, 2024, due to drawdown of coal inventories resulting
from sales volume slightly exceeding saleable production compared to a build in inventory compared to second
quarter of 2024. Higher mining costs were partially offset by lower freight expenses and lower purchased coal.
Segment Adjusted EBITDA of $17.2 million for the three months ended June 30, 2025, decreased by $17.3
million compared to $34.5 million for the three months ended June 30, 2024, primarily driven by lower coal
revenues and higher operating costs.
Corporate and Other Adjusted EBITDA
The following table presents a summary of the components of Corporate and Other Adjusted EBITDA:
Three months ended
June 30,
2025
2024
Change
%
(in US$ thousands)
Selling, general, and administrative expenses
$
7,600
$
8,646
$
(1,046)
(12.1)%
Other, net
(49)
(387)
338
(87.3)%
Total Corporate and Other Adjusted EBITDA
$
7,551
$
8,259
$
(708)
(8.6)%
Corporate and other Adjusted EBITDA of $7.5 million for the three months ended June 30, 2025, were $0.7
million lower compared to the three months ended June 30, 2024 due to cost savings initiatives implemented at
the corporate level.
Coronado Global Resources Inc.
Mining and operating costs for the three months ended June 30, 2025 compared to three months
ended June 30, 2024
A reconciliation of segment costs and expenses, segment operating costs, and segment mining costs is shown
below:
Three months ended June 30 2025
(in US$ thousands)
Australia
United
States
Other /
Corporate
Total
Consolidated
Total costs and expenses
$
292,326
$
215,071
$
7,994
$
515,391
Less: Selling, general and administrative
expense
(3)
(13)
(7,584)
(7,600)
Less: Depreciation, depletion and amortization
(20,851)
(24,247)
(410)
(45,508)
Total operating costs
271,472
190,811
—
462,283
Less: Other royalties
(27,684)
(10,330)
—
(38,014)
Less: Stanwell rebate
(21,931)
—
—
(21,931)
Less: Freight expenses
(41,031)
(21,675)
—
(62,706)
Less: Other non-mining costs
(1,570)
—
—
(1,570)
Total mining costs
179,256
158,806
—
338,062
Sales Volume excluding non-produced coal
(MMt)
2.2
1.4
—
3.7
Mining cost per Mt sold ($/Mt)
80.6
109.6
—
92.0
Three months ended June 30, 2024
(in US$ thousands)
Australia
United
States
Other /
Corporate
Total
Consolidated
Total costs and expenses
$
390,576
$
207,737
$
8,919
$
607,232
Less: Selling, general and administrative
expense
(23)
—
(8,623)
(8,646)
Less: Depreciation, depletion and amortization
(25,885)
(25,082)
(296)
(51,263)
Total operating costs
364,668
182,655
—
547,323
Less: Other royalties
(77,462)
(9,963)
—
(87,425)
Less: Stanwell rebate
(26,451)
—
—
(26,451)
Less: Freight expenses
(37,801)
(22,903)
—
(60,704)
Less: Other non-mining costs
(4,057)
(4,268)
—
(8,325)
Total mining costs
218,897
145,521
—
364,418
Sales Volume excluding non-produced coal
(MMt)
2.7
1.3
—
4.0
Mining cost per Mt sold ($/Mt)
81.7
110.0
—
91.1
Average realized Met price per Mt sold for the three months ended June 30, 2025 compared to three
months ended June 30, 2024
A reconciliation of the Company’s average realized Met price per Mt sold is shown below:
Three months ended
June 30,
2025
2024
Change
%
(in US$ thousands)
Met coal sales volume (MMt)
2.9
3.3
(0.4)
(12.3)%
Met coal revenues ($)
427,328
639,361
(212,033)
(33.2)%
Average realized Met price per Mt sold ($/Mt)
148.4
194.7
(46.3)
(23.8)%
Coronado Global Resources Inc.
Six months ended June 30, 2025 compared to Six months ended June 30, 2024
Australia
Six months ended
June 30,
2025
2024
Change
%
(in US$ thousands)
Sales volume (MMt)
4.5
5.2
(0.7)
(14.2)%
Total revenues ($)
533,122
894,596
(361,474)
(40.4)%
Coal revenues ($)
517,561
877,094
(359,533)
(41.0)%
Average realized price per Mt sold ($/Mt)
115.7
168.2
(52.5)
(31.2)%
Met coal sales volume (MMt)
3.2
3.8
(0.6)
(15.8)%
Met coal revenues ($)
480,690
837,809
(357,119)
(42.6)%
Average realized Met price per Mt sold ($/Mt)
150.3
220.5
(70.2)
(31.9)%
Mining costs ($)
421,266
536,762
(115,496)
(21.5)%
Mining cost per Mt sold ($/Mt)
94.2
103.5
(9.3)
(9.1)%
Operating costs ($)
609,840
827,402
(217,562)
(26.3)%
Operating costs per Mt sold ($/Mt)
136.3
158.7
(22.4)
(14.1)%
Segment Adjusted EBITDA ($)
(75,044)
68,354
(143,398)
(209.8)%
Coal revenues for our Australian Operations for the six months ended June 30, 2025, were $359.5 million lower
compared to the six months ended June 30, 2024. The decrease was driven by lower average realized Met price
per Mt sold, $70.2 per Mt lower compared to the six months ended June 30, 2024. Coal revenues were further
impacted by 0.7 MMt lower sales volume as a result of lower production caused by above average seasonal wet
weather in the first quarter, equipment downtime and changes in mine sequencing as a result of delays in drill
preparation reducing excavator performance.
Operating costs decreased by $217.6 million driven by lower Stanwell rebate and other royalties, due to lower
realized price and lower coal revenues, coupled with lower mining costs. Mining costs were $115.5 million lower
for the six months ended June 30, 2025, primarily driven by cost savings from reduced contractor’s fleet since
March 2024 and favorable foreign exchange rate on translation of our Australian Operations for the six months
ended June 30, 2025 compared to the same period in 2024. Mining and Operating costs per Mt sold were $9.3
and $22.4, respectively, lower compared to the six months ended June 30, 2024.
Segment Adjusted EBITDA loss of $75.0 million for the six months ended June 30, 2025, decreased by $143.4
million, or 209.8%, compared to Adjusted EBITDA of $68.3 million for the six months ended June 30, 2024 due
to lower coal revenues, partially offset by lower operating costs.
United States
Six months ended
June 30,
2025
2024
Change
%
(in US$ thousands)
Sales volume (MMt)
2.6
2.6
—
2.6%
Total revenues ($)
384,005
447,381
(63,376)
(14.2)%
Coal revenues ($)
383,227
420,278
(37,051)
(8.8)%
Average realized price per Mt sold ($/Mt)
144.8
162.9
(18.1)
(11.4)%
Met coal sales volume (MMt)
2.5
2.4
0.1
1.5%
Met coal revenues ($)
368,141
403,386
(35,245)
(8.7)%
Average realized Met price per Mt sold ($/Mt)
149.3
166.0
(16.7)
(10.4)%
Mining costs ($)
305,619
293,103
12,516
4.3%
Mining cost per Mt sold ($/Mt)
115.5
116.2
(0.7)
(0.9)%
Operating costs ($)
366,128
365,874
254
0.1%
Operating costs per Mt sold ($/Mt)
138.4
141.8
(3.4)
(2.8)%
Segment Adjusted EBITDA ($)
17,573
83,694
(66,121)
(79.0)%
Coal revenues decreased by $37.1 million, or 8.8%, to $383.2 million for the six months ended June 30, 2025,
compared to $420.3 million for the six months ended June 30, 2024. This decrease was driven by lower average
realized Met price per Mt sold of $149.3 for the six months ended June 30, 2025 compared to $166.0 per Mt sold
Coronado Global Resources Inc.
and lower prices achieved from annual domestic price contracts for 2025 compared to 2024, caused by
unfavorable market conditions.
Mining costs were $12.5 million, or $0.7 per Mt sold, higher for the six months ended June 30, 2025, due to lower
inventory build, saleable production exceeding sales volume, compared to the six months ended June 30, 2024.
Operating costs remained broadly in line with higher mining costs offset by lower freight expenses, driven by
lower demurrage, and lower coal purchases needed to satisfy sales commitments.
Adjusted EBITDA of $17.6 million decreased by $66.1 million, or 79.0%, for the six months ended June 30, 2025,
compared to $83.7 million for the six months ended June 30, 2024. This decrease was primarily driven by lower
coal revenues and lower other revenues driven by termination fee revenue from a coal sales contract cancelled
in the 2024 period.
Corporate and Other Adjusted EBITDA
The following table presents a summary of the components of Corporate and Other Adjusted EBITDA:
Six months ended
June 30,
2025
2024
Change
%
(in US$ thousands)
Selling, general, and administrative expenses
$
15,933
$
17,461
$
(1,528)
(8.8)%
Other, net
(18)
(819)
801
(97.8)%
Total Corporate and Other Adjusted EBITDA
$
15,915
$
16,642
$
(727)
(4.4)%
Corporate and other costs of $15.9 million for the six months ended June 30, 2025, were $0.7 million lower
compared to $16.6 million for the six months ended June 30, 2024, due to cost savings initiatives implemented
at the corporate level.
Coronado Global Resources Inc.
Mining and operating costs for the Six months ended June 30, 2025 compared to Six months ended
June 30, 2024
A reconciliation of segment costs and expenses, segment operating costs, and segment mining costs is shown
below:
Six months ended June 30, 2025
(in US$ thousands)
Australia
United
States
Other /
Corporate
Total
Consolidated
Total costs and expenses
$
647,451
$
413,609
$
16,870
$
1,077,930
Less: Selling, general and administrative
expense
(7)
(13)
(15,913)
(15,933)
Less: Depreciation, depletion and amortization
(37,604)
(47,468)
(957)
(86,029)
Total operating costs
609,840
366,128
—
975,968
Less: Other royalties
(60,097)
(19,270)
—
(79,367)
Less: Stanwell rebate
(43,784)
—
—
(43,784)
Less: Freight expenses
(81,655)
(41,239)
—
(122,894)
Less: Other non-mining costs
(3,038)
—
—
(3,038)
Total mining costs
421,266
305,619
—
726,885
Sales Volume excluding non-produced coal
(MMt)
4.5
2.6
—
7.1
Mining cost per Mt sold ($/Mt)
94.2
115.5
—
102.1
Six months ended June 30, 2024
(in US$ thousands)
Australia
United
States
Other /
Corporate
Total
Consolidated
Total costs and expenses
$
874,248
$
415,083
$
18,018
$
1,307,349
Less: Selling, general and administrative
expense
(34)
—
(17,427)
(17,461)
Less: Depreciation, depletion and amortization
(46,812)
(49,209)
(591)
(96,612)
Total operating costs
827,402
365,874
—
1,193,276
Less: Other royalties
(153,450)
(19,135)
—
(172,585)
Less: Stanwell rebate
(57,902)
—
—
(57,902)
Less: Freight expenses
(71,261)
(46,265)
—
(117,526)
Less: Other non-mining costs
(8,027)
(7,371)
—
(15,398)
Total mining costs
536,762
293,103
—
829,865
Sales Volume excluding non-produced coal
(MMt)
5.2
2.5
—
7.7
Mining cost per Mt sold ($/Mt)
103.5
116.2
—
107.7
Average realized Met price per Mt sold for the Six months ended June 30, 2025 compared to Six
months ended June 30, 2024
A reconciliation of the Company’s average realized Met price per Mt sold is shown below:
Six months ended June 30,
2025
2024
Change
%
(in US$ thousands)
Met coal sales volume (MMt)
5.7
6.2
(0.5)
(9.1)%
Met coal revenues ($)
848,831
1,241,195
(392,364)
(31.6)%
Average realized Met price per Mt sold ($/Mt)
149.8
199.3
(49.5)
(24.8)%
Coronado Global Resources Inc.
Reconciliation of Non-GAAP Financial Measures
Adjusted EBITDA
Three months ended
June 30,
Six months ended June 30,
(in US$ thousands)
2025
2024
2025
2024
Reconciliation to Adjusted EBITDA:
Net (loss) income
$
(76,203)
$
45,200
$
(172,401)
$
16,199
Add: Depreciation, depletion and amortization
45,508
51,263
86,029
96,612
Add: Interest expense (net of interest income)
20,964
13,116
38,862
26,445
Add: Other foreign exchange losses (gains)
(551)
2,159
(219)
(9,104)
Add: Loss on extinguishment of debt
1,050
—
1,050
—
Add: Income tax expense (benefit)
8,466
7,401
(29,368)
3,290
Add: Losses on idled assets
13
1,677
1,848
2,164
Add: Increase (decrease) in provision for
credit losses
183
(27)
813
(200)
Adjusted EBITDA
$
(570)
$
120,789
$
(73,386)
$
135,406
Liquidity and Capital Resources
Overview
Our objective is to maintain a prudent capital structure and to ensure that sufficient liquid assets and funding is
available to meet both anticipated and unanticipated financial obligations, including unforeseen events that could
have an adverse impact on revenues or costs. Our principal sources of funds are cash and cash equivalents,
cash flow from operations and availability under our debt facilities.
Our main uses of cash have historically been, and are expected to continue to be, the funding of our operations,
working capital, capital expenditure, debt service obligations, business or assets acquisitions and payment of
dividends.
Our ability to generate sufficient cash depends on our future performance, which may be subject to a number of
factors beyond our control, including general economic, financial, competitive and weather conditions and other
risks described in this Quarterly Report on Form 10-Q, Part I, Item 1A. “Risk Factors” of our Annual Report on
Form 10-K for the year ended December 31, 2024, filed with the SEC and ASX on February 19, 2025 and Part
II, Item 1A. “Risk Factors” of our Quarterly Report on Form 10-Q for the three months ended March 31, 2025,
filed with the SEC and ASX on May 8, 2025.
Sources of liquidity as of June 30, 2025 and December 31, 2024 was as follows:
(in US$ thousands)
June 30, 2025
December 31,
2024
Cash and cash equivalents, excluding restricted cash
$
261,585
$
339,374
Availability under the ABL Facility
(1)
22,432
128,563
Total
$
284,017
$
467,937
(1)
Availability under the ABL Facility is limited to an eligible borrowing base, determined by applying customary advance rates
to eligible accounts receivable and inventory.
Coronado Global Resources Inc.
Our total indebtedness as of June 30, 2025 and December 31, 2024 consisted of the following:
(in US$ thousands)
June 30, 2025
December 31,
2024
Current installments of interest bearing liabilities
$
1,652
$
1,477
Interest bearing liabilities, excluding current installments
498,360
422,995
Current installments of other financial liabilities and other
finance lease obligations
10,060
6,163
Other financial liabilities and finance lease obligations, excluding
current installments
35,654
19,694
Total
$
545,726
$
450,329
Liquidity
Coronado has been significantly impacted by declining demand and prices in the coal market that impacted our
earnings during the year ended December 31, 2024 and through June 30, 2025.
During the three months ended June 30, 2025, we completed certain initiatives to improve our liquidity position
and immediate cash flows given sustained low Met coal prices, including entry to the Deed of Amendment with
Stanwell for a coal prepayment of $75.0 million and the Stanwell rebate waiver and deferral from April 2025 to
December 2025 (with an estimated value of approximately $75.0 million), as they are incurred, and refinancing
of our ABL Facility for an amount up to $150.0 million, as discussed in Part I, Item 1. “Financial Statements”, Note
11. “Contract Obligations” and Note 9. “Interest Bearing Liabilities”, respectively.
The ABL Facility is subject to financial covenants, including maintenance of leverage ratio and maintenance of
coverage ratio, tested quarterly commencing on September 30, 2025.
On June 30, 2025, S&P downgraded the Company’s credit rating from ‘B-’ to ‘CCC+’ and, on July 7, 2025,
Moody’s downgraded the Company’s credit rating from ‘Caa1’ to ‘Caa2’, both of which resulted in a Review Event
under the ABL Facility. On July 9, 2025, the Company successfully negotiated with the Lender, who confirmed
no changes to the terms or the availability of the ABL Facility, thereby, concluding each of the Review Events.
losses and negative cash flows from operating activities for the remainder of 2025 and into 2026, which, combined
with other factors, could impact the Company’s ability to comply with financial covenants under the ABL Facility
on and beyond September 30, 2025.
Non-compliance with financial covenants or a potential further downgrade to the Company’s credit rating by S&P
or Moody’s, may result in an Event of Default under the ABL Facility and, unless the Event of Default is cured or
a waiver is obtained, could also trigger a cross-default under the Indenture governing our Notes.
We continue to pursue a number of initiatives including, among other things, further operating and capital cost
control measures, partial asset sale and potential other debt and non-debt funding measures.
Based on our outlook for the next twelve months, which is subject to uncertainties with respect to execution of
the financing initiatives described above, continued changing demand from our customers, volatility in coal prices,
current and future trade barriers and tariffs and the uncertainty of impacts from ongoing civil unrest and wars, we
believe expected cash generated from operations together with our sources of liquidity and other strategic and
financial initiatives, may not be sufficient to meet the needs of our existing operations, capital expenditure and
service our debt obligations.
Cash and cash equivalents
Cash and cash equivalents are held in multicurrency interest bearing bank accounts available to be used to
service the working capital needs of the Company. Cash balances surplus to immediate working capital
requirements are invested in short-term interest-bearing deposit accounts or used to repay interest bearing
liabilities.
ABL Facility
On June 18, 2025, we entered into an amendment and restatement of our existing senior secured asset-based
revolving credit agreement in an initial aggregate principal amount of $150.0 million, or the ABL Facility.
Coronado Global Resources Inc.
The ABL Facility is a revolving credit facility which matures in 2028. Availability under the ABL Facility is limited
to an eligible borrowing base, determined by applying customary advance rates to eligible accounts receivable
and inventory. As of June 30, 2025, the eligible borrowing base under the ABL Facility was $97.4 million, of which
$75.0 million had been drawn and $22.4 million remained available.
Borrowings under the ABL Facility bear interest of 15% per annum and are subject to an interest make-whole
premium, payable on any refinance or prepayment during the first eighteen months after the closing date. The
undrawn capacity under the ABL Facility remains available for a further twelve months from the date of this ABL
Facility and is subject to a commitment fee equal to 9.00% per annum.
The ABL Facility is subject to financial covenants including a covenant regarding the maintenance of leverage
ratio and interest coverage ratio to be tested quarterly and commencing on September 30, 2025.
The ABL Facility also contains customary representations and warranties and affirmative and negative covenants
including, among others, covenants relating to the payment of dividends, or purchase or redemption of, with
respect to any equity interests of the Company or any of its subsidiaries, covenants relating to financial reporting,
covenants relating to the incurrence of liens or encumbrances, covenants relating to the incurrence or
prepayment of certain debt, compliance with laws, use of proceeds, maintenance of properties, maintenance of
insurance, payment obligations, financial accommodation, mergers and sales of all or substantially all of the
assets of the Loan Parties’ and limitations on changes in the nature of the Loan Parties’ business.
A
Review Event will occur under the ABL Facility if any one or more of the following occurs: (a) downgrade of the
credit rating by S&P or Moody’s in respect of a Loan Party which applies as at the Closing Date; or (b) delisting
of any listed Loan Party from the relevant stock exchange on which it was listed or a trading halt in respect of
such Loan Party for more than 5 business days. Following the occurrence of a Review Event, the Borrowers must
promptly meet and consult in good faith with the Administrative Agent and the Lender to agree on a strategy to
address the relevant Review Event. If, at the end of a period of 10 business days after the occurrence of the
Review Event, the Lender is not satisfied with the result of their discussion or meeting with the Borrowers or do
not wish to continue to provide their commitments, the Lender may declare all amounts owing under the ABL
Facility to be prepaid within another 20 business days.
On June 30, 2025, S&P downgraded the Company’s credit rating from ‘B-’ to ‘CCC+’ and, on July 7, 2025,
Moody’s downgraded the Company’s credit rating from ‘Caa1’ to ‘Caa2’, both of which resulted in a Review Event
under the ABL Facility. On July 9, 2025, we successfully negotiated with the Lender, who confirmed no changes
to the terms or the availability of the ABL Facility, thereby, concluding each of the Review Events. A potential
further downgrade to the Company’s credit rating by S&P or Moody’s may result in an Event of Default under the
ABL Facility, unless the Event of Default is cured or a waiver is obtained, could also trigger a cross-default under
the Indenture governing our Notes.
Subject to customary grace periods and notice requirements, the ABL Facility also contains customary events of
default.
Refer to Part I, Item 1, Note 10. “Interest Bearing Liabilities” for further information.
9.250% Senior Secured Notes
As of June 30, 2025, the outstanding amount of our Notes was $400.0 million. The Notes were issued at par and
bear interest at a rate of 9.250% per annum. Interest on the Notes is payable semi-annually in arrears on April 1
and October 1 of each year, which began on April 1, 2025. The Notes mature on October 1, 2029 and are senior
secured obligations of the Issuer.
The terms of the Notes are governed by an indenture, dated as of October 2, 2024, among Coronado Finance
Pty Ltd, as issuer, Coronado Global Resources Inc, as guarantor, the subsidiaries of Coronado Global Resources
Inc., named therein, as additional guarantors, and Wilmington Trust, National Association, as trustee and priority
lien collateral trustee, or the Indenture. The Indenture contains customary covenants for high yield bonds,
including, but not limited to, limitations on investments, liens, indebtedness, asset sales, transactions with
affiliates and restricted payments, including payment of dividends on capital stock.
Coronado Global Resources Inc.
Upon the occurrence of a “Change of Control Triggering Event”, as defined in the Indenture as the occurrence of
a Change of Control and a Rating Decline (each as defined in the Indenture), the Issuer is required to offer to
repurchase the Notes at 101% of the aggregate principal amount thereof, plus accrued and unpaid interest, if
any, to, but excluding, the repurchase date. The Issuer also has the right to redeem the Notes at 101% of the
aggregate principal amount thereof, plus accrued and unpaid interest, if any, to, but excluding, the repurchase
date, following the occurrence of a Change of Control Triggering Event, provided that the Issuer redeems at least
90% of the Notes outstanding prior to such Change of Control Triggering Event. Upon the occurrence of certain
changes in tax law (as described in the Indenture), the Issuer may redeem all of the Notes at a redemption price
equal to 100% of the principal amount of the Notes to be redeemed plus accrued and unpaid interest, if any, to,
but excluding, the redemption date.
The Indenture contains customary events of default, including failure to make required payments, failure to
comply with certain agreements or covenants, failure to pay or acceleration of certain other indebtedness, certain
events of bankruptcy and insolvency, and failure to pay certain judgments. An event of default under the Indenture
will allow either the Trustee or the holders of at least 25% in aggregate principal amount of the then-outstanding
Notes to accelerate, or in certain cases, will automatically cause acceleration of, the amounts due under the
Notes.
As of June 30, 2025, the Company was in compliance with all applicable covenants under the Indenture.
We may redeem some or all of the Notes at the redemption prices and on the terms specified in the Indenture.
In addition, we may, from time to time, seek to retire or repurchase outstanding debt through open-market
purchases, privately negotiated transactions or otherwise. Such repurchases, if any, will be upon such terms and
at such prices we may determine, and will depend on prevailing market conditions, liquidity requirements,
contractual restrictions and other factors.
Refer to Part I, Item 1, Note 9. “Interest Bearing Liabilities ” for further information.
Loan – Curragh Housing Transaction
In 2024, the Company completed the Curragh Housing Transaction, an agreement for accommodation services
and the sale and leaseback of housing and accommodation assets with a regional infrastructure and
accommodation service provider.
The Curragh Housing Transaction did not satisfy the sale criteria under ASC 606, Revenues from Contracts with
Customers and was deemed a financing arrangement. As a result, the proceeds of $23.0 million (A$34.6 million)
received for the sale and leaseback of property, plant and equipment owned by the Company in connection with
the Curragh Housing Transaction were recognized as “Other Financial Liabilities” on the Company’s unaudited
Condensed Consolidated Balance Sheets. The term of the financing arrangement is ten years with an effective
interest rate of 14.14%. This liability will be settled in equal monthly payments as part of the accommodation
service arrangement.
In line with the Company’s capital management strategy, the Curragh Housing Transaction provides additional
liquidity. In addition, the accommodation services component of the Curragh Housing Transaction is anticipated
to enhance the level of service for our employees at our Curragh Mine.
In connection with the Curragh Housing Transaction, the Company borrowed $26.9 million (A$40.4 million) from
the same regional infrastructure and accommodation service provider. This amount was recorded as “Interest
Bearing Liabilities” in the unaudited Condensed Consolidated Balance Sheets. The amount borrowed is payable
in equal monthly installments over a period of ten years, with an effective interest rate of 14.14%.
Refer to Part I, Item I. Note 9. “Interest Bearing Liabilities” and Note 10. “Other Financial Liabilities” for further
information.
Finance leases
During the six months ended June 30, 2025, the Company entered into various finance lease agreements. Our
total finance lease commitments were $20.6 million as at June 30, 2025. The terms of the outstanding lease
agreements mature through May 2029, and bear fixed interest rates ranging from 8.55% to 12.0%.
Surety bonds, letters of credit and bank guarantees
We are required to provide financial assurances and securities to satisfy contractual and other requirements
generated in the normal course of business. Some of these assurances are provided to comply with state or other
government agencies’ statutes and regulations.
Coronado Global Resources Inc.
For the U.S. Operations, in order to provide the required financial assurance for post mining reclamation, we
generally use surety bonds. We also use surety bonds and bank letters of credit to collateralize certain other
obligations including contractual obligations under workers’ compensation insurances. As of June 30, 2025, we
had outstanding surety bonds of $43.8 million. Subsequent to June 30, 2025, we cash collateralized $20.3 million
of our surety bonds in connection with our contractual obligations under workers’ compensation insurances.
For the Australian Operations, as at June 30, 2025, we had bank guarantees outstanding of $25.8 million primarily
in respect of certain rail and port take-or-pay arrangements of the Company.
Future regulatory changes relating to these obligations or deterioration of our credit risk rating could result in
increased obligations, additional costs or additional collateral requirements.
Restricted deposits – cash collateral
As required by certain agreements, we have total cash collateral in the form of deposits of $99.7 million as of
June 30, 2025 to provide back-to-back support for bank guarantees, financial payments, other performance
obligations, various other operating agreements and contractual obligations under workers compensation
insurance. These deposits are restricted and classified as non-current assets in the unaudited Condensed
Consolidated Balance Sheets.
Future regulatory changes in relation to these obligations or deterioration of our credit risk rating could result in
increased obligations, additional costs or additional collateral requirements
Dividends
On February 19, 2025, our Board of Directors declared a bi-annual fully franked fixed ordinary dividend of $8.4
million, or 0.5 cents per CDI. On April 4, 2025, the Company paid $8.3 million to holders, net of $0.1 million
foreign exchange gain on payment of dividends to certain CDI holders who elected to be paid in Australian dollars.
Capital Requirements
Our main uses of cash have historically been the funding of our operations, working capital, capital expenditure,
and the payment of interest and dividends. We intend to use cash to fund debt service payments of our Notes,
the ABL Facility and our other indebtedness, to fund operating activities, working capital, capital expenditures,
including organic growth projects, business or assets acquisitions and, if declared, payment of dividends.
Historical Cash Flows
The following table summarizes our cash flows for the six months ended June 30, 2025 and 2024, as reported in
the accompanying consolidated financial statements:
Cash Flow
Six months ended
June 30,
(in US$ thousands)
2025
2024
Net cash from operating activities
$
40,088
$
11,095
Net cash used in investing activities
(177,000)
(122,829)
Net cash from financing activities
58,881
37,601
Net change in cash and cash equivalents
(78,031)
(74,133)
Effect of exchange rate changes on cash and cash equivalents
242
(471)
Cash and cash equivalents at beginning of period
339,625
339,295
Cash and cash equivalents at end of period
$
261,836
$
264,691
Operating activities
Net cash provided by operating activities was $40.1 million for the six months ended June 30, 2025, compared
to $11.1 million for the six months ended June 30, 2024. The increase in cash provided by operating activities
was driven by a coal prepayment from Stanwell of $75.0 million, $20.5 million waiver and deferral of the Stanwell
rebate, favorable working capital movement due to early collections from certain customers and lower payment
to suppliers, partially offset by Adjusted EBITDA loss for the six months ended June 30, 2025.
Coronado Global Resources Inc.
Investing activities
Net cash used in investing activities was $177.0 million
for the six months ended June 30, 2025, compared to
$122.8 million for the six months ended June 30, 2024. Cash spent on capital expenditures for the six months
ended June 30, 2025, was $147.4 million, of which $80.9 million related to the Australian Operations and $66.5
million was related to our U.S. Operations and a net cash collateral, in the form of restricted deposits, of $31.1
million as a security to satisfy contractual and other requirements. The increase in capital expenditures was
largely due to the investment in organic growth projects at both of our U.S. Operations and Australian Operations,
which were substantially completed in the first half of 2025.
Financing activities
Net cash provided by financing activities was $58.9 million for the six months ended June 30, 2025. Included in
net cash provided by financing activities were proceeds of $75.0 million from drawing down on the new ABL
Facility, partially offset by payment of debt issuance and other financing costs of $4.1 million, dividend payments
of $8.3 million, and repayment of interest bearing and other financial liabilities of $3.7 million.
Contractual Obligations
Except as set forth below, there were no material changes to the Company’s contractual obligations as previously
disclosed in our Annual Report on Form 10-K for the year ended December 31, 2024, filed with the SEC and
ASX on February 19, 2025.
On June 10, 2025, we entered into a Deed of Amendment with Stanwell for a prepayment for future coal sales of
$75.0 million and the Stanwell rebate waiver and deferral from April 2025 to December 2025 (with an estimated
value of approximately $75.0 million), as they are incurred, both of which will be settled through physical coal
delivery over five years, or until such time that the obligation is fully settled, commencing 2027. Refer to Part I,
Item 1. “Financial Statements”, Note 11. “Contract Obligations” for further information.
On June 18, 2025, we completed refinancing of our ABL Facility for an aggregate principal amount up to $150.0
million, of which $75.0 million was drawn on completion and the remaining $75.0 million is available to the
Company for a further twelve months, limited to an eligible borrowing base. The ABL Facility is subject to financial
covenants, including maintenance of leverage ratio and interest coverage ratio, tested quarterly and commencing
on September 30, 2025. Refer to Part I, Item 1. “Financial Statements”, Note 9. Interest Bearing Liabilities for
further information.
The ABL Facility is a revolving credit facility which matures in 2028. Borrowings under the ABL Facility bear
interest at a rate of 15% per annum and are subject to an interest make-whole premium, payable on any refinance
or prepayment during the first eighteen months after the closing date. The undrawn capacity under the ABL
Facility remains available for a further twelve months from the date of the ABL Facility and is subject to a
commitment fee of 9.00% per annum.
Critical Accounting Policies and Estimates
The preparation of our financial statements in conformity with U.S. GAAP requires us to make estimates and
assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and
the reported amounts of revenue and expenses during the reporting period. On an ongoing basis, we evaluate
our estimates. Our estimates are based on historical experience and various other assumptions that we believe
are appropriate, the results of which form the basis for making judgments about the carrying values of assets and
liabilities that are not readily apparent from other sources. Actual results may differ from these estimates. All
critical accounting estimates and assumptions, as well as the resulting impact to our financial statements, have
been discussed with the Audit, Governance and Risk Committee of our Board of Directors.
Our critical accounting policies are discussed in Item 7. “Management’s Discussion and Analysis of Financial
Condition and Results of Operations” of our Annual Report on Form 10-K for the year ended December 31, 2024,
filed with the SEC and ASX on February 19, 2025.
Newly Adopted Accounting Standards and Accounting Standards Not Yet Implemented
See Note 2. (a) “Newly Adopted Accounting Standards” and Note 2. (b) “Accounting Standards Not Yet
Implemented” to our unaudited condensed consolidated financial statements for further information.
Coronado Global Resources Inc.
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
Our activities expose us to a variety of financial risks, such as commodity price risk, interest rate risk, foreign
currency risk, liquidity risk and credit risk. The overall risk management objective is to minimize potential adverse
effects on our financial performance from those risks which are not coal price related.
We manage financial risk through policies and procedures approved by our Board of Directors. These specify
the responsibility of the Board of Directors and management with regard to the management of financial risk.
Financial risks are managed centrally by our finance team under the direction of the Group Chief Financial Officer.
The finance team manages risk exposures primarily through delegated authority limits approved by the Board of
Directors. The finance team regularly monitors our exposure to these financial risks and reports to management
and the Board of Directors on a regular basis. Policies are reviewed at least annually and amended where
appropriate.
We may use derivative financial instruments such as forward fixed price commodity contracts, interest rate swaps
and foreign exchange rate contracts to hedge certain risk exposures. Derivatives for speculative purposes is
strictly prohibited by the Treasury Risk Management Policy approved by our Board of Directors. We use different
methods to measure the extent to which we are exposed to various financial risks. These methods include
sensitivity analysis in the case of interest rates, foreign exchange and other price risks and aging analysis for
credit risk.
Commodity Price Risk
Coal Price Risk
We are exposed to domestic and global coal prices. Our principal philosophy is that our investors would not
consider hedging coal prices to be in the long-term interest of our stockholders. Therefore, any potential hedging
of coal prices through long-term fixed price contracts is subject to the approval of our Board of Directors and
would only be adopted in exceptional circumstances.
The expectation of future prices for coal depends upon many factors beyond our control. Met coal has been
volatile commodity over the past ten years. The demand and supply in the Met coal industry changes from time
to time. There are no assurances that oversupply will not occur, that demand will not decrease or that
overcapacity will not occur, which could cause declines in the prices of coal, which could have a material adverse
effect on our financial condition and results of operations.
Access to international markets may be subject to ongoing interruptions and trade barriers due to policies and
tariffs of individual countries. We may or may not be able to access alternate markets of our coal should
interruptions or trade barriers occur in the future. An inability for Met coal suppliers to access international markets
would likely result in an oversupply of Met coal and may result in a decrease in prices and or the curtailment of
production.
We manage our commodity price risk for our non-trading, thermal coal sales through the use of long-term coal
supply agreements in our U.S. Operations. In Australia, thermal coal is sold to Stanwell on a supply contract. See
Item 1A. “Risk Factors—Risks related to the Supply Deed with Stanwell may adversely affect our financial
condition and results of operations” in our Annual Report on Form 10-K filed with the SEC and ASX on February
19, 2025.
Sales commitments in the Met coal market are typically not long-term in nature, and we are therefore subject to
fluctuations in market pricing. Certain coal sales are provisionally priced initially. Provisionally priced sales are
those for which price finalization, referenced to the relevant index, is outstanding at the reporting date. The final
sales price is determined within 7 to 90 days after delivery to the customer. As of June 30, 2025, we had $15.2
million of outstanding provisionally priced receivables subject to changes in the relevant price index. If prices
decreased 10%, these provisionally priced receivables would decrease by $1.5 million. See Item 1A. “Risk
Factors—Our profitability depends upon the prices we receive for our coal. Prices for coal are volatile and can
fluctuate widely based upon a number of factors beyond our control” in our Annual Report on Form 10-K filed
with the SEC and ASX on February 19, 2025.
Diesel Fuel
We may be exposed to price risk in relation to other commodities from time to time arising from raw materials
used in our operations (such as gas or diesel). The expectation of future prices for diesel depends upon many
factors beyond our control. The current Middle East conflict could create significant uncertainty regarding
interruptions to global oil supply causing significant volatility in prices of related commodities, including the price
of diesel fuel we purchase. These commodities may be hedged through financial instruments if the exposure is
considered material and where the exposure cannot be mitigated through fixed price supply agreements.
The fuel required for our operations for the remainder of fiscal year 2025 will be purchased under fixed-price
contracts or on a spot basis.
Coronado Global Resources Inc.
Interest Rate Risk
Interest rate risk is the risk that a change in interest rates on our borrowing facilities will have an adverse impact
on our financial performance, investment decisions and stockholder return. Our objectives in managing our
exposure to interest rates include minimizing interest costs in the long term, providing a reliable estimate of
interest costs for the annual work program and budget and ensuring that changes in interest rates will not have
a material impact on our financial performance.
As of June 30, 2025, we had $545.7 million of fixed rate borrowings and Notes and no variable-rate borrowings
outstanding.
We currently do not hedge against interest rate fluctuations.
Foreign Exchange Risk
A significant portion of our sales are denominated in US$. Foreign exchange risk is the risk that our earnings or
cash flows are adversely impacted by movements in exchange rates of currencies that are not in US$.
Our main exposure is to the A$-US$ exchange rate through our Australian Operations, which have predominantly
A$ denominated costs. Greater than 70% of expenses incurred at our Australian Operations are denominated in
A$. Approximately 30% of our Australian Operations’ purchases are made with reference to US$, which provides
a natural hedge against foreign exchange movements on these purchases (including fuel, several port handling
charges, demurrage, purchased coal and some insurance premiums). Appreciation of the A$ against US$ will
increase our Australian Operations’ US$ reported cost base and reduce US$ reported net income. For the portion
of US$ required to purchase A$ to settle our Australian Operations’ operating costs, a 10% increase in the A$ to
US$ exchange rate would increase reported total costs and expenses by approximately $21.5 million and $48.5
million for the three and six months ended June 30, 2025.
Under normal market conditions, we generally do not consider it necessary to hedge our exposure to this foreign
exchange risk. However, there may be specific commercial circumstances, such as the hedging of significant
capital expenditure, acquisitions, disposals and other financial transactions, where we may deem foreign
exchange hedging as appropriate and where a US$ contract cannot be negotiated directly with suppliers and
other third parties.
For our Australian Operations, we translate all monetary assets and liabilities at the period end exchange rate,
all non-monetary assets and liabilities at historical rates and revenue and expenses at the average exchange
rates in effect during the periods. The net effect of these translation adjustments is shown in the accompanying
Consolidated Financial Statements within components of net income.
We currently do not hedge our non-US$ exposures against exchange rate fluctuations.
Credit Risk
Credit risk is the risk of sustaining a financial loss as a result of a counterparty not meeting its obligations under
a financial instrument or customer contract.
We are exposed to credit risk when we have financial derivatives, cash deposits, lines of credit, letters of credit
or bank guarantees in place with financial institutions.
To
mitigate against credit risk from financial counterparties,
we have minimum credit rating requirements with financial institutions where we transact.
We are also exposed to counterparty credit risk arising from our operating activities, primarily from trade
receivables. Customers who wish to trade on credit terms are subject to credit verification procedures, including
an assessment of their independent credit rating, financial position, past experience and industry reputation. We
monitor the financial performance of counterparties on a routine basis to ensure credit thresholds are achieved.
Where required, we will request additional credit support, such as letters of credit, to mitigate against credit risk.
Credit risk is monitored regularly, and performance reports are provided to our management and Board of
Directors.
As of June 30, 2025, we had financial assets of $517.5 million, comprising of cash and cash equivalents, trade
and other receivables and restricted deposits, all of which are exposed to varied levels of counterparty credit risk.
These financial assets have been assessed under ASC 326,
Financial Instruments – Credit Losses
, and a
provision for discounting and credit losses of $1.5 million was recorded as of June 30, 2025.
Coronado Global Resources Inc.
ITEM 4. CONTROLS AND PROCEDURES
Disclosure Controls and Procedures
We maintain disclosure controls and procedures that are designed to ensure that information required to be
disclosed in our Exchange Act reports is recorded, processed, summarized and reported within the time periods
specified in the SEC’s rules and forms, and that such information is accumulated and communicated to our
management, including the Chief Executive Officer and the Group Chief Financial Officer, as appropriate, to allow
timely decisions regarding required disclosure based solely on the definition of “disclosure controls and
procedures” in Rule 13a-15(e) promulgated under the Exchange Act. In designing and evaluating the disclosure
controls and procedures, management recognized that any controls and procedures, no matter how well
designed and operated, can provide only reasonable assurance of achieving the desired control objectives, and
management necessarily was required to apply its judgment in evaluating the cost-benefit relationship of possible
controls and procedures.
As of the end of the period covered by this Quarterly Report on Form 10-Q, we carried out an evaluation under
the supervision and with the participation of our management, including the Chief Executive Officer and the Group
Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures.
Based on the foregoing, the Chief Executive Officer and the Group Chief Financial Officer concluded that our
disclosure controls and procedures were effective.
Changes to Internal Control over Financial Reporting
During the fiscal quarter covered by this Quarterly Report on Form 10-Q, the Company completed the
implementation of a new Enterprise Resource Planning, or ERP, system. Our new ERP system is intended to
provide us with enhanced transactional processing, security and management tools, and it is an important
component of our system of disclosure controls and procedures. We modified and removed certain existing
internal controls, as well as implemented new internal controls and procedures impacted by the implementation
of the new ERP system. We will continue to monitor and evaluate design effectiveness and operating
effectiveness of the related controls during subsequent periods.
Except with respect to the implementation of the new ERP system, there were no other changes in the Company's
internal control over financial reporting, as such term is defined in Rule 13a-15(f) of the Exchange Act, that
materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial
reporting.
Coronado Global Resources Inc.
PART II – OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
We are subject to various legal and regulatory proceedings. For a description of our significant legal proceedings
refer to Note 17. “Contingencies” to the unaudited condensed consolidated financial statements included in
Part I, Item 1. “Financial Statements” of this Quarterly Report on Form 10-Q, which information is incorporated
by reference herein.
ITEM 1A. RISK FACTORS
Except as set forth below, there were no material changes to the risk factors previously disclosed in Part I, Item
1A, “Risk Factors,” of our Annual Report on Form 10-K for the year ended December 31, 2024, filed with the SEC
and ASX on February 19, 2025 and Part II, Item 1A. “Risk Factors” of our Quarterly Report on Form 10-Q for the
three months ended March 31, 2025, filed with the SEC and ASX on May 8, 2025. The risk factor presented
below should be read in conjunction with all of the risk factors disclosed in the Company’s Annual Report on
Form 10-K for the year ended December 31, 2024.
As a result of operating losses and negative cash flows from operations, together with other factors,
including the possibility that the Company may not be able to obtain covenant waivers or otherwise
remediate covenant breaches, could cause the liquidity provided by the ABL Facility to become
unavailable. As such, we may not have sufficient liquidity to sustain our operations and to continue as a
going concern.
The Company’s earnings and cash flows from operating activities have been significantly impacted by subdued
performance of Met coal markets, which has led to low realized prices for the coal we sell. The Company's current
operating forecasts, which is subject to volatility in the Met coal prices and the achievement of forecast production,
indicate that we will continue to incur losses from operations and generate negative cash flows from operating
activities. These projections and certain liquidity risks raise substantial doubt about whether we will meet our
obligations as they become due within one year after the date of issuance of this Quarterly Report on Form 10-
Q.
During the three months ended June 30, 2025, we completed certain initiatives to improve our liquidity position
and immediate cash flows given sustained low Met coal prices .
On June 10, 2025, we entered into a Deed of Amendment with Stanwell for a prepayment for future coal sales of
$75.0 million and the Stanwell rebate waiver and deferral from April 2025 to December 2025 (with an estimated
value of approximately $75.0 million), as they are incurred, both of which will be settled through physical coal
delivery over five years, or until such time that the obligation is fully settled, commencing in 2027.
On June 18, 2025, we completed refinancing of our ABL Facility for an aggregate principal amount up to $150.0
million, of which $75.0 million was drawn on completion and the remaining $75.0 million is available to the
Company for a further twelve months, subject to an eligible borrowing base. The ABL Facility is subject to financial
covenants, including maintenance of leverage ratio and interest coverage ratio, tested quarterly and commencing
on September 30, 2025.
On June 30, 2025, S&P downgraded the Company’s credit rating from ‘B-’ to ‘CCC+’ and, on July 7, 2025,
Moody’s downgraded the Company’s credit rating from ‘Caa1’ to ‘Caa2’, both of which resulted in a Review Event
under the ABL Facility. On July 9, 2025, the Company successfully negotiated with the Lender, who confirmed
no changes to the terms or the availability of the ABL Facility, thereby, concluding each of the Review Events.
A
potential further downgrade to the Company’s credit rating by S&P or Moody’s may result in an Event of Default
under the ABL Facility.
There is uncertainty in relation to the ongoing availability of the ABL Facility, which is dependent on our ability to
comply with financial covenants on September 30, 2025 and beyond. Unless the Company obtains waivers or
deferment of financial covenants testing periods, any breach of such financial covenants would constitute an
event of default under the terms of the ABL Facility and the Administrative Agent may declare the commitment
of the Lender to make the loans to be terminated, declare the unpaid principal amount of all outstanding loans to
be paid, including all interest accrued and unpaid thereon, any make-whole premium and other amounts owing
or payable to be immediately due and payable.
The indenture governing our Notes includes a cross-default provision. If, following an event of default under the
ABL Facility, the Lenders declare all amounts owing under the ABL Facility immediately due and payable, we
may be required to immediately repay all amounts outstanding under the Notes. If our indebtedness is
Coronado Global Resources Inc.
accelerated, we may not be able to repay our debt or borrow sufficient funds to refinance such indebtedness on
favorable terms or at all. Furthermore, if our indebtedness is accelerated, we could be forced to pursue other
strategic alternatives, including restructuring or reorganization.
As a result of these factors, including the Company’s cash flow projections, risks to available liquidity, the
continued uncertainty surrounding global coal market fundamentals, such as the impact of tariffs on the
Company’s export coal trade and global supply chains, and recent credit rating downgrades, among others, there
exists substantial doubt whether we will be able to continue as a going concern.
The accompanying Condensed Consolidated Financial Statements are prepared on a going concern basis which
contemplates the realization of assets and discharge of liabilities in the ordinary course of business and do not
include any adjustments relating to the recoverability and classification of recorded asset amounts or the amounts
and classification of liabilities that might result from the outcome of the uncertainties described above. The report
from our independent registered public accounting firm on our Condensed Consolidated Financial Statements
for the quarter ended June 30, 2025 includes an explanatory paragraph that indicates the existence of substantial
doubt about our ability to continue as going concern.
We continue to pursue alternatives for other sources of capital for ongoing liquidity needs and initiatives to
enhance our ability to comply with the financial covenants under our ABL Facility, including, among other things,
further operating and capital cost control measures, partial asset sale and potential other debt and non-debt
funding measures.
However, there can be no assurance that our plan to improve our operating performance and financial position
will be successful or that we will be able to obtain additional financing, on commercially reasonable terms or at
all. As a result, our liquidity and ability to timely pay our obligations when due could be adversely affected.
Furthermore, our creditors may resist renegotiation or lengthening of payment and other terms through legal
action or otherwise. If we are not able to timely, successfully or efficiently implement the strategies that we are
pursuing to improve our operating performance and financial position, obtain alternative sources of capital or
otherwise meet our liquidity needs, we may not have sufficient liquidity to sustain our operations and to continue
as a going concern.
ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
None.
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
None.
ITEM 4. MINE SAFETY DISCLOSURES
Safety is the cornerstone of the Company’s values and is the number one priority for all employees at Coronado
Global Resources Inc.
Our U.S. Operations include multiple mining complexes across three states and are regulated by both the U.S.
Mine Safety and Health Administration, or MSHA, and state regulatory agencies. Under regulations mandated
by the Federal Mine Safety and Health Act of 1977, or the Mine Act, MSHA inspects our U.S. mines on a regular
basis and issues various citations and orders when it believes a violation has occurred under the Mine Act.
In accordance with Section 1503(a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act and
Item 104 of Regulation S-K (17 CFR 229.104), each operator of a coal or other mine in the United States is
required to report certain mine safety results in its periodic reports filed with the SEC under the Exchange Act.
Information pertaining to mine safety matters is included in Exhibit 95.1 attached to this Quarterly Report on
Form 10-Q. The disclosures reflect the United States mining operations only, as these requirements do not apply
to our mines operated outside the United States.
ITEM 5. OTHER INFORMATION
During the quarter ended June 30, 2025, no director or officer (as defined in Rule 16a-1(f) promulgated under
the Exchange Act) of the Company
Coronado Global Resources Inc.
ITEM 6. EXHIBITS
The following documents are filed as exhibits hereto:
Exhibit No.
Description of Document
3.1
3.2
10.1*‡
10.2*
15.1
31.1
31.2
32.1
95.1
101.INS
Inline XBRL Instance Document
101.SCH
Inline XBRL Taxonomy Extension Schema Document
101.CAL
Inline XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF
Inline XBRL Taxonomy Extension Definition Linkbase Document
101.LAB
Inline XBRL Taxonomy Extension Label Linkbase Document
101.PRE
Inline XBRL Taxonomy Extension Presentation Linkbase Document
104
Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)
* Certain schedules and exhibits to this agreement have been omitted pursuant to Item 601(a)(5) and redacted
pursuant to Item 601(a)(6) of Regulation S-K. A copy of any omitted schedule and/or exhibit will be furnished to
the Securities and Exchange Commission upon request.
‡ Certain confidential portions of this exhibit have been redacted pursuant to Item 601(b)(10)(iv) of Regulation S-
K. The omitted information is (i) not material, and (ii) the type of information that the registrant treats as private
and confidential. We agree to furnish supplementally an unredacted copy of the exhibit to the Securities and
Exchange Commission on its request.
Coronado Global Resources Inc.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report
to be signed on its behalf by the undersigned, thereunto duly authorized.
Coronado Global Resources Inc.
By:
/s/ Barend J. van der Merwe
Barend J. van der Merwe
Group Chief Financial Officer (as duly authorized officer
and as principal financial officer of the registrant)
Date: August 11, 2025