CODQL flags going concern; proposes Stanwell ABL to $265M
Filing Impact
Filing Sentiment
Form Type
10-Q
Rhea-AI Filing Summary
Coronado Global Resources Inc. reported a weak quarter as metallurgical coal prices stayed soft. Q3 revenue was $482.1 million, down from $608.2 million a year ago, and the company posted a net loss of $109.5 million (basic and diluted EPS $(0.65)). For the first nine months, revenue totaled $1.399 billion with a net loss of $281.9 million.
Liquidity tightened: cash was $172.1 million and total available liquidity was $187.4 million, including $15.5 million undrawn under the $150 million ABL facility. Interest expense rose sharply, and Coronado obtained a September 30, 2025 covenant waiver under the ABL. Management disclosed substantial doubt about the company’s ability to continue as a going concern given weak Met coal markets, potential covenant pressures, and credit rating downgrades. The company outlined a non‑binding proposal with Stanwell to refinance the ABL to $265 million, modify contract economics, and provide conditional prepayments tied to liquidity thresholds.
Positive
- None.
Negative
- Going concern warning due to weak Met coal prices, losses, and covenant pressures
- Liquidity strain with $187.4M total liquidity and high-cost ABL debt at 15%
- Credit downgrades and reliance on a covenant waiver as of September 30, 2025
Insights
Going concern warning, tight liquidity, and costly debt drive risk.
Coronado posted Q3 revenue of $482.1M and a net loss of $109.5M, with year‑to‑date losses of $281.9M. Cash was $172.1M and total liquidity $187.4M, including $15.5M availability on a $150M ABL. Interest expense increased materially, reflecting higher-cost funding such as the ABL at 15%.
The company received a covenant waiver as of Sept 30, 2025 and noted that further credit rating downgrades could trigger defaults under the ABL. Management stated substantial doubt about continued operations within one year, citing weak Met coal pricing and operating headwinds.
A non-binding proposal with Stanwell targets a refinanced ABL to $265M and conditional prepayments tied to liquidity thresholds, but execution remains contingent on diligence, documentation, and approvals. Subsequent filings may detail effectiveness and timing.
FAQ
What were CODQL’s Q3 2025 results?
Revenue was $482.1 million and net loss was $109.5 million; basic and diluted EPS were $(0.65).
What is Coronado Global Resources' (CODQL) liquidity position?
Total liquidity was $187.4 million, including $172.1 million cash and $15.5 million undrawn on the $150 million ABL.
Did CODQL receive any covenant waivers?
Yes. The company obtained a waiver for compliance as of September 30, 2025 under the ABL facility.
What is the status of CODQL’s credit ratings?
S&P downgraded to CCC+ on June 30, 2025, and Moody’s to Caa2 on July 7, 2025, triggering review events under the ABL.
What is the proposed Stanwell transaction mentioned by CODQL?
A non-binding proposal to refinance the ABL to $265 million, extend supply terms, and add conditional prepayments tied to liquidity levels.
What were CODQL’s year-to-date 2025 results?
Nine‑month revenue was $1.399 billion with a net loss of $281.9 million.
UNITED STATES
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Steel starts
here.
Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2025.
TABLE OF CONTENTS
Page
PART I – FINANCIAL INFORMATION
Item 1. Financial Statements
Condensed Consolidated Balance Sheets as of September 30, 2025 and December
31, 2024
4
Unaudited Condensed Consolidated Statements of Operations and Comprehensive
Income for the three and nine months ended September 30, 2025 and 2024
5
Unaudited Condensed Consolidated Statements of Stockholders’ Equity for the three
and nine months ended September 30, 2025 and 2024
6
Unaudited Condensed Consolidated Statements of Cash Flows for the nine months
ended September 30, 2025 and 2024
8
Notes to Unaudited Condensed Consolidated Financial Statements
9
Report of Independent Registered Public Accounting Firm
27
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of
Operations
28
Item 3. Quantitative and Qualitative Disclosures About Market Risk
53
Item 4. Controls and Procedures
55
PART II – OTHER INFORMATION
Item 1. Legal Proceedings
56
Item 1A. Risk Factors
56
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
58
Item 3. Defaults Upon Senior Securities
58
Item 4. Mine Safety Disclosures
58
Item 5. Other Information
59
Item 6. Exhibits
60
SIGNATURES
61
Table of Contents
Coronado Global Resources Inc.
PART I – FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
Condensed Consolidated Balance Sheets
(In US$ thousands, except share data)
Assets
Note
(Unaudited)
2025
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 $
and December 31, 2024
Series A Preferred stock $
authorized,
and December 31, 2024
Additional paid-in capital
Accumulated other comprehensive losses
15
(127,184 )
(137,560 )
(Accumulated losses) retained earnings
(176,045 )
Total stockholders’ equity
$
$
Total liabilities and stockholders’ equity
$
$
See accompanying notes to unaudited condensed consolidated financial statements.
Table of Contents
Coronado Global Resources Inc.
Unaudited Condensed Consolidated Statements of Operations and Comprehensive Income
(In US$ thousands, except share data)
Three months ended
Nine 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
(29,443 )
(15,808 )
(68,305 )
(42,253 )
Loss on debt extinguishment
(1,050 )
(Increase) decrease in provision for credit
losses
(2,836 )
(43 )
(3,649 )
Other, net
(19,749 )
(8,643 )
Total other expense, net
(31,819 )
(35,600 )
(72,785 )
(50,739 )
Loss before tax
(103,763 )
(102,768 )
(305,532 )
(83,280 )
Income tax (expense) benefit
(5,707 )
Net loss attributable to Coronado Global
Resources Inc.
$
(109,470 )
$
(70,997 )
$
(281,871 )
$
(54,798 )
Other comprehensive loss, net of income
taxes:
Foreign currency translation adjustments
(1,146 )
Net gain on cash flow hedges
Total comprehensive income
Total comprehensive loss attributable to
Coronado Global Resources Inc.
$
(108,928 )
$
(51,681 )
$
(271,495 )
$
(52,548 )
Loss per share of common stock
Basic
13
(0.65 )
(0.42 )
(1.68 )
(0.33 )
Diluted
13
(0.65 )
(0.42 )
(1.68 )
(0.33 )
See accompanying notes to unaudited condensed consolidated financial statements.
Table of Contents
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 )
$
Net loss
—
—
(109,470 )
(109,470 )
Other comprehensive income
—
—
Total comprehensive income (loss)
—
—
(109,470 )
(108,928 )
Share-based compensation for equity
classified awards
—
—
(274 )
(274 )
Balance September 30, 2025
$
$
$
$
(127,184 )
$
(176,045 )
$
Table of Contents
Coronado Global Resources Inc.
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 )
$
$
Net loss
—
—
(70,997 )
(70,997 )
Other comprehensive income
—
—
Total comprehensive income (loss)
—
—
(70,997 )
(51,681 )
Share-based compensation for equity
classified awards
—
—
Dividends
—
—
(8,382 )
(8,382 )
Balance September 30, 2024
$
$
$
$
(87,677 )
$
$
See accompanying notes to unaudited condensed consolidated financial statements.
Table of Contents
Coronado Global Resources Inc.
Unaudited Condensed Consolidated Statements of Cash Flows
(In US$ thousands)
Nine months ended
September 30,
2025
2024
Cash flows from operating activities:
Net loss
$
(281,871 )
$
(54,798 )
Adjustments to reconcile net income to cash and restricted cash provided by
operating activities:
Depreciation, depletion and amortization
Impairment of non-core assets
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
(18,001 )
(22,163 )
(Gain) loss on disposal of property, plant and equipment
(31 )
Loss on disposal of idled asset
Gain on operating lease derecognition
(820 )
Equity-based compensation expense
(459 )
(75 )
Deferred income taxes
(17,956 )
(27,335 )
Reclamation of asset retirement obligations
(4,126 )
(6,313 )
Increase (decrease) in provision for discounting and credit losses
(157 )
Other non-cash adjustments
(1,858 )
Changes in operating assets and liabilities:
Accounts receivable
(13,621 )
Inventories
(50,954 )
Other assets
(5,947 )
Contract obligations
Accounts payable
(13,138 )
Accrued expenses and other current liabilities
(4,933 )
(85,576 )
Operating lease liabilities
(17,606 )
(15,812 )
Income tax payable
(1,260 )
Change in other liabilities
Net cash from operating activities
Cash flows from investing activities:
Capital expenditures
(206,873 )
(201,147 )
Proceeds from disposal of idle asset
Purchase of restricted and other deposits
(89,147 )
(2,102 )
Redemption of restricted and other deposits
Net cash used in investing activities
(265,642 )
(200,887 )
Cash flows from financing activities:
Proceeds from interest bearing liabilities and other financial liabilities
Debt issuance costs and other financing costs
(7,148 )
(2,261 )
Principal payments on interest bearing liabilities and other financial liabilities
(13,646 )
(2,969 )
Principal payments on finance lease obligations
(2,156 )
(68 )
Dividends paid
(8,333 )
(16,679 )
Net cash from financing activities
Net decrease in cash and cash equivalents
(167,075 )
(161,532 )
Effect of exchange rate changes on cash and cash equivalents
(462 )
(1,414 )
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 )
$
(21,285 )
Restricted cash
$
$
See accompanying notes to unaudited condensed consolidated financial statements.
Table of Contents
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 nine months ended September 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 nine months ended September 30, 2025, the Company incurred net losses of
$
As of September 30, 2025, the Company’s aggregate sources of liquidity was $
comprised of cash and cash equivalents (excluding restricted cash) of $
to be drawn down under its $
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 lender under the ABL Facility confirmed there would be no changes
to the terms or the availability of the ABL Facility, thereby concluding each of the review events.
On September 29, 2025, the Company entered into an agreement with the Administrative Agent under the ABL
Facility (as described in Note 9. Interest Bearing Liabilities) to waive the Company’s compliance with its financial
covenants under the ABL Facility as at September 30, 2025, and reset the conditions related to credit rating
downgrades such that a review event, default or event of default would not occur under the ABL Facility due to a
one notch downgrade to the Company’s credit rating by S&P or Moody’s as at September 29, 2025 (however an
event of default will occur if there is a further two or more notches downgrade to the Company’s credit rating by
S&P or Moody’s as at September 29, 2025). The Company’s obligations to comply with those financial covenants
as at December 31, 2025, and beyond remained unchanged.
Table of Contents
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Coronado Global Resources Inc.
As the outlook for Met coal markets remains uncertain, continued low or a further deterioration in Met coal prices
and the Company’s inability to achieve production forecasts, due to factors beyond the Company’s control, could
lead to an inability to fund short-term working capital movements, further operating losses and negative operating
cash flows 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 December 31, 2025.
Non-compliance with such financial covenants, or a further two or more notches downgrade to the Company’s
credit rating by S&P or Moody’s as at September 29, 2025, 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, governing the
% Senior Secured Notes due in 2029 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.
On October 23, 2025, the manager of the Queensland Financial Provisioning Scheme, or Scheme Manager,
responsible for managing the Mineral and Energy Resources (Financial Provisioning) Act 2018 Qld, or the
Financial Provisioning Scheme Act, advised the Company that it had made an indicative risk allocation decision
on Curragh’s risk category as part of the Annual Review Allocation for the Curragh mine complex Environmental
Authority, or EA, number EPML00643713, providing an indicative allocation of “High”. This is a change to the
previous Annual Review Allocation for the EA of “Moderate”. A final Annual Review Allocation has not yet been
made.
The “High” rating would require the Company to provide a surety, in the form of bank guarantees, insurance bond
or cash collateral, of Curragh’s Estimated Rehabilitation Cost, or ERC, of $
under the Financial Provisioning Scheme Act, if:
●
category, and
●
“Moderate” risk category; and
●
12 months after the decision is made, such EA will be taken to be allocated to the “Moderate-High” risk
category for determining the contribution payable for the next twelve-month period’s obligation. A risk
allocation of “Moderate-High” requires an annual contribution to the scheme of
% of the ERC amount.
The Company is currently making relevant submissions to the Scheme Manager in accordance with its rights
under the Financial Provisioning Scheme Act. However, as of the filing of this Quarterly Report on Form 10-Q, a
final Annual Review Allocation has not been issued by the Scheme Manager.
Under the above alternatives, the Company will be required to either pay a higher annual contribution to the
Scheme Manager, or the Company will be required to obtain and pay for a facility to provide the required bank
guarantee or insurance bond. A suitable bank guarantee or insurance bond facility may not be available on
commercially acceptable terms or at all.
On October 28, 2025, the Company announced it proposes to enter into a transaction, or the Proposed
Transaction, with Stanwell Corporation Ltd, or Stanwell, for a combination of financial support transactions
intended to improve the Company’s short and long-term financial position.
The Proposed Transaction, which remains non-binding and subject to completion of due diligence, definitive
documents and required external approvals, includes the following:
●
Stanwell and increasing availability from $
five-year
a lower interest rate. The borrowing base limits are expected to be amended to allow higher levels of
borrowing against working capital assets of the Company and more flexible covenant conditions.
●
its remaining contractual term and only become repayable for certain specified change of control events
or default that would lead to termination of existing Stanwell coal supply agreements.
●
2043, providing Stanwell the ability to make broader annual nominations ranging from 1.2 MMt to 2.24
MMt.
Table of Contents
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Coronado Global Resources Inc.
●
contract tonnage under the ACSA and NCSA equal the difference between current contracted prices and
a market price equivalent (to be agreed with the Company and with discount to market being not more
than
% of the price applied to the first 1.2 MMt nominated under the NCSA), or the price difference,
when the Company’s liquidity is under $
remaining contractual term of the ACSA and the NCSA. When the Company’s liquidity is between $
million and $
% of the price difference. When
liquidity is above $
NCSA apply. The accumulated prepayment amount will bear interest at
% per annum and the accrued
interest amount will be capped at
prepayment balance will be settled through delivery of coal to Stanwell in months when the Company’s
liquidity exceeds $
●
over other fixed assets in respect to the proposed ABL Facility and retain its lower-ranking security under
the NCSA obligations.
●
agreement relating to the Proposed Transaction, the Company must (1) obtain Stanwell’s consent and
(2) pay immediately to Stanwell the amount of rebate waived under the ACSA. Additionally, if the
Company’s current controlling shareholder ceases to control the Company by way of disposing a
%
or more interest in the Company without Stanwell’s consent, the Company must immediately pay to
Stanwell the amount of the rebate waived under the ACSA. The controlling shareholder may dispose an
interest in the Company less than
% without Stanwell’s consent.
●
required to maintain a minimum cash liquidity of $
to shareholders, the repurchase of any Notes in connection with the distribution, and an equal or greater
amount than the distribution will be used to reduce the prepayment amounts outstanding under ACSA
and NCSA.
In addition to the Proposed Transaction, the Company continues to pursue a number of initiatives intended to
improve liquidity including, among other things, further operating and capital cost control measures, potential
other debt and non-debt funding measures, and whole or partial asset sales.
While management believes that the Proposed Transaction, if entered into and once completed, would enhance
the Company’s liquidity, the vast majority of the potential funding under the arrangement is delivered over time
and not upfront, and does not eliminate uncertainties in relation to the Company’s future financial performance,
including the Company’s ability to achieve its production targets and manage working capital fluctuations that are
material at times depending on circumstances (production and inventory levels), due to events and factors
beyond its control, and sustained weakness in Met coal markets and consequential realized Met coal prices.
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.
Table of Contents
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Coronado Global Resources Inc.
(b) Accounting Standards Not Yet Implemented
ASU No. 2023-09 - “Income Taxes” (Topic 740)
: Improvements to Income Tax Disclosures. 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 ASU 2024-03, which requires 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 on its
financial statement disclosures.
ASU No. 2025-05 - “Financial Instruments – Credit Losses (Topic 326
)”:
Measurement of Credit Losses for
Accounts Receivables and Contract Assets
. In July 2025, FASB issued ASU 2025-05, which introduces a
practical expedient related to the estimation of expected credit losses for current accounts receivable and current
contract assets that arise from transactions accounted for under
ASU 606: Revenue from Contracts with
Customers
. The practical expedient permits an entity to assume that current conditions as of the balance sheet
date will not change for the remaining life of the current accounts receivable and current contract assets. The
updated standard will be effective for annual periods beginning after December 15, 2025, and interim reporting
periods within those annual reporting periods. The Company is currently evaluating the impact that the updated
standard will have in its’ financial statement disclosures.
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 calculated 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.
Table of Contents
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Coronado Global Resources Inc.
Reportable segment results as of and for the three and nine months ended September 30, 2025 and 2024 are
presented below:
(in US$ thousands)
Australia
United States
Other and
Corporate
Total
Three months ended September 30,
2025
Total revenues
$
$
$
$
Less:
Mining costs
(1)
(240,470 )
(118,515 )
(358,985 )
Other operating costs
(1)
(107,686 )
(30,661 )
(138,347 )
Total operating costs
(348,156 )
(149,176 )
(497,332 )
Other and unallocated costs
(2)
(42 )
(7,537 )
(7,334 )
Segment adjusted EBITDA
(47,881 )
(7,537 )
(22,539 )
Total assets
Capital expenditures
Three months ended September 30,
2024
Total revenues
$
$
$
$
Less:
Mining costs
(1)
(290,121 )
(166,210 )
(456,331 )
Other operating costs
(1)
(128,214 )
(36,105 )
(164,319 )
Total operating costs
(418,335 )
(202,315 )
(620,650 )
Other and unallocated costs
(2)
(8,773 )
(6,688 )
Segment adjusted EBITDA
(51,978 )
(8,773 )
(19,123 )
Total assets
Capital expenditures
Nine months ended September 30, 2025
Total revenues
$
$
$
$
Less:
Mining costs
(1)
(661,736 )
(424,134 )
(1,085,870 )
Other operating costs
(1)
(296,260 )
(91,170 )
(387,430 )
Total operating costs
(957,996 )
(515,304 )
(1,473,300 )
Other and unallocated costs
(2)
(59 )
(23,452 )
(21,879 )
Segment adjusted EBITDA
(122,925 )
(23,452 )
(95,925 )
Total assets
Capital expenditures
Nine months ended September 30, 2024
Total revenues
$
$
$
$
Less:
—
—
—
—
Mining costs
(1)
(826,880 )
(459,316 )
(1,286,196 )
Other operating costs
(1)
(418,857 )
(108,874 )
(527,731 )
Total operating costs
(1,245,737 )
(568,190 )
(1,813,927 )
Other and unallocated costs
(2)
(25,417 )
(19,983 )
Segment adjusted EBITDA
(25,417 )
Total assets
Capital expenditures
Table of Contents
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 and excludes Depreciation,
Depletion and Amortization.
(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
nine months ended September 30, 2025 and 2024 are as follows:
Three months ended
Nine months ended
September 30,
September 30,
(in US$ thousands)
2025
2024
2025
2024
Consolidated Adjusted EBITDA
$
(22,539 )
$
(19,123 )
$
(95,925 )
$
Depreciation, depletion and amortization
(49,198 )
(45,559 )
(135,227 )
(142,171 )
Interest expense, net
(1)
(29,443 )
(15,808 )
(68,305 )
(42,253 )
Other financing costs
(1,500 )
(1,500 )
Other foreign exchange gains (losses)
(2)
(10,190 )
(1,086 )
Loss on debt extinguishment
(1,050 )
Impairment of non-core assets
(10,585 )
(10,585 )
Losses on idled assets
(3)
(1,460 )
(1,848 )
(3,624 )
Decrease (increase) in provision for
discounting and credit losses
(2,836 )
(43 )
(3,649 )
Net loss before tax
(103,763 )
(102,768 )
(305,532 )
(83,280 )
Income tax (expense) benefit
(5,707 )
Net loss
$
(109,470 )
$
(70,997 )
$
(281,871 )
$
(54,798 )
(1)
respectively, 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 nine months ended
September 30, 2025 and 2024 are as follows:
Nine months ended September 30,
(in US$ thousands)
2025
2024
Capital expenditures per unaudited Condensed Consolidated Statements
of Cash Flows
$
$
Net movement in accruals for capital expenditures
(8,904 )
Payment for capital acquired in prior periods
(10,790 )
Capital acquired through finance leases
Advance payment to acquire long lead capital
(4,695 )
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.
Table of Contents
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Coronado Global Resources Inc.
Three months ended September 30, 2025
(in US$ thousands)
Australia
United States
Total
Product Groups:
Metallurgical coal
$
$
$
Thermal coal
Total coal revenue
Other
(1)
Total
$
$
$
Three months ended September 30, 2024
(in US$ thousands)
Australia
United States
Total
Product Groups:
Metallurgical coal
$
$
$
Thermal coal
Total coal revenue
Other
(1)
Total
$
$
$
Nine months ended September 30, 2025
(in US$ thousands)
Australia
United States
Total
Product Groups:
Metallurgical coal
$
$
$
Thermal coal
Total coal revenue
Other
(1)
Total
$
$
$
Nine months ended September 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 $
revenue from coal sales contracts cancelled at our U.S. operations.
4. Inventories
(in US$ thousands)
September 30,
2025
December 31,
2024
Raw coal
$
$
Saleable coal
Total coal inventories
Supplies and other inventory
Total inventories
$
$
Coal inventories measured at their net realizable value were $
and $
2025 and December 31, 2024, respectively.
Table of Contents
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Coronado Global Resources Inc.
5. Other Assets
(in US$ thousands)
September 30,
2025
December 31,
2024
Other current assets
Prepayments
$
$
Long service leave receivable
Tax credits receivable
Deposits to acquire capital items
Derivative assets (refer to Note 14. Derivatives and Fair Value Measurement)
Other
Total other current assets
$
$
6. Property, Plant and Equipment
(in US$ thousands)
September 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)
September 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
$
$
Table of Contents
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Coronado Global Resources Inc.
8. Leases
During the nine months ended September 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
Nine months ended
(in US$ thousands)
September 30,
2025
September 30,
2024
September 30,
2025
September 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)
September 30,
2025
December 31,
2024
Operating leases:
Operating lease right-of-use assets
$
$
Finance leases:
Property and equipment
Accumulated depreciation
(1,536 )
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
$
$
September 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
Table of Contents
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 September 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
(16,829 )
(5,347 )
Total lease liability
$
$
9. Interest Bearing Liabilities
The following is a summary of interest-bearing liabilities at September 30, 2025:
September 30, 2025
December 31, 2024
Weighted Average
Interest Rate at
September 30, 2025
Final
Maturity
% Senior Secured Notes
$
$
%
(2)
ABL Facility
%
Loan - Curragh Housing Transaction
%
(2)
Discount and debt issuance costs
(1)
(10,718 )
(12,165 )
Total interest bearing liabilities
Less: current portion
(1,596 )
(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 September 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, or the Indenture, dated as of October 2, 2024, among
Coronado Finance Pty Ltd, as issuer (the 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. 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.
Table of Contents
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Coronado Global Resources Inc.
The Notes are guaranteed on a senior secured basis by the Company and certain of the Company’s subsidiaries
that guarantee, or is a borrower, under the Company’s ABL Facility (as defined below) or certain other debt and
secured by (i) a first-priority lien on substantially all of the assets of the Issuer and each Guarantor (other than
accounts receivable and certain other rights to payment, inventory, certain investment property, certain general
intangibles and commercial tort claims, deposit accounts, securities accounts and other related assets, chattel
paper, letter of credit rights, certain insurance proceeds, intercompany indebtedness and certain other assets
related to the foregoing and proceeds and products of each of the foregoing (collectively, the “ABL Priority
Collateral”)) and (ii) a second-priority lien on the ABL Priority Collateral, which is junior to a first-priority lien for
the benefit of the lenders and other creditors under the Company’s asset-based revolving credit facility, dated as
of June 18, 2025, subject to certain exceptions and permitted liens.
Upon the occurrence of a “Change of Control Triggering Event”, 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 September 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,
was $
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 September 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 until June 18, 2026 and is subject to a
commitment fee of
% per annum.
Table of Contents
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Coronado Global Resources Inc.
The ABL Facility is guaranteed by the Guarantors. Amounts outstanding under the ABL Facility are secured by
(i) first priority lien in the ABL Priority Collateral, and (ii) a second-priority lien on substantially all of the Company’s
assets and the assets of the guarantors, other than the ABL Priority Collateral.
The ABL Facility is subject to financial covenants, including a covenant regarding the maintenance of a leverage
ratio and an interest coverage ratio, as described in the ABL Facility.
The ABL Facility also contains customary representations and warranties and affirmative and negative covenants
including, among others, covenants relating to the payment of dividends with respect to, or the purchase or
redemption of, any equity interests of the Company or any of its subsidiaries, financial reporting, the incurrence
of liens or encumbrances, 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 changes in the nature of the Loan Parties’
business.
The ABL Facility provides for customary events of default, including, among other things, the nonpayment of
principal, interest, fees, or other amounts, a representation or warranty proving to have been materially incorrect
when made, the 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, the invalidity of any loan documentation, ERISA defaults
resulting in liability of a material amount, a two notch downgrade of a Loan Party’s credit rating by S&P or Moody’s
which applies as at the closing date, or a trading halt in respect of such Loan Party for more than
days. In the event of a default by the Borrowers (beyond any applicable grace 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 of a Loan Party by S&P or Moody’s 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
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
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 two or more notches 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 .
On September 29, 2025, the Company entered into an agreement with the Administrative Agent under the ABL
Facility to waive the Company’s compliance with financial covenants as at September 30, 2025, and reset the
conditions related to credit rating downgrades such that a review event, default or event of default would not
occur under the ABL Facility due to a one notch downgrade to the Company’s credit rating by S&P or Moody’s
as at September 29, 2025 (however an event of default will occur if there is a further two or more notches
downgrade to the Company’s credit rating by S&P or Moody’s as at September 29, 2025). The Company’s
obligation to comply with financial covenants as at December 31, 2025, and beyond remained unchanged.
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 unaudited Condensed Consolidated Balance
Sheets was $
Table of Contents
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Coronado Global Resources Inc.
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 nine months ended
September 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 September 30, 2025, the carrying value of the loan, net of issuance costs of $
$
10. Other Financial Liabilities
The following is a summary of other financial liabilities as at September 30, 2025:
September 30,
2025
December 31,
2024
Collateralized financial liabilities payable to third-party financing companies
$
$
Collateralized financial liabilities - Curragh Housing Transaction
Unsecured notes payable to insurance premium finance company
Debt issuance costs
(917 )
(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 $
30, 2025, $
Table of Contents
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Coronado Global Resources Inc.
Unsecured notes payable to insurance premium finance company
In July 2025, the Company entered into an agreement with an insurance premium finance company to obtain
$
policies. The liability bears a fixed interest rate of
%, payable in three monthly instalments of $
will mature in December 2025.
The carrying value of this financial liability was $
11. Contract Obligations
(US$ thousands)
September 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
Stanwell 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 provided
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, expected to start in early 2027, of up to
over
, or until such time that the obligation is fully settled. This Prepaid Coal Supply Liability bears
interest of
% per annum. Contract liability related to this arrangement will be settled as the physical delivery of
coal occurs and performance obligation is satisfied.
For the three and nine months ended September 30, 2025, the Company recognized interest expense of $
million and $
rebates.
12. Income Taxes
For the nine months ended September 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 inclusion of a current
year valuation allowance relating to both the Australia and the U.S. operations. Accordingly, the Company had
an income tax benefit of $
September 30, 2025, which includes discrete expense of $
The Company had an income tax benefit of $
months ended September 30, 2024.
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NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Coronado Global Resources Inc.
The Company utilizes the “more likely than not” standard in recognizing a tax benefit in its financial statements.
For the three months ended September 30, 2025, the Company had
in tax 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 $
and $
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
state level. In Australia, companies are subject to open tax audits for a period of four years from the date of
assessment.
13. Loss 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 per share were calculated as follows (in thousands, except per share data):
Three months ended
September 30,
Nine months ended
September 30,
(in US$ thousands, except per share data)
2025
2024
2025
2024
Numerator:
Net loss attributable to Company stockholders
$
(109,470 )
$
(70,997 )
$
(281,871 )
$
(54,798 )
Denominator (in thousands):
Weighted average shares of common stock
outstanding
Weighted average diluted shares of common
stock outstanding
Loss Per Share (US$):
Basic
(0.65 )
(0.42 )
(1.68 )
(0.33 )
Diluted
(0.65 )
(0.42 )
(1.68 )
(0.33 )
The Company’s common stock is publicly traded on the ASX in the form of CDIs, convertible at the option of
the holders into shares of the Company’s common stock on a
-for-1 basis.
14. Derivatives and Fair Value Measurement
a) Derivatives
The Company may use derivative financial instruments to manage its financial risks in the normal course of
operations, including foreign currency risks, commodity price risk related to purchase of raw materials (such as
gas or diesel) and interest rate risk. Derivatives for speculative purposes are strictly prohibited under the Treasury
Risk Management Policy approved by the Board of Directors.
The financing counterparties to the derivative contracts potentially expose the Company to credit-related risk.
Credit risk is the risk that a third party might fail to fulfill its obligations under the terms of the financial instrument.
The Company mitigates credit risk by entering into derivative contracts with high credit quality counterparties,
limiting the amount of exposure to each counterparty and frequently monitoring their financial condition.
Forward foreign currency contracts
The Company’s Australian Operations utilize the cash generated from US$ denominated coal sales revenues to
fund operating costs, which are predominantly in A$. During the nine months ended September 30, 2025, the
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NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Coronado Global Resources Inc.
Company entered into forward foreign currency contracts to hedge its foreign exchange exposure on a portion of
the US$ denominated coal sales revenue at its Australian Operations, whose functional currency is A$.
The aggregated notional amount of the outstanding forward foreign currency derivative contracts designated as
cash flow hedges was $
designated as cash flow hedges, the unrealized gain of $
other comprehensive loss” at September 30, 2025 in the Unaudited Condensed Balance Sheet, and will be
reclassified into “Coal revenues” in the Unaudited Condensed Statements of Operations and Comprehensive
Income in the period in which the hedged transaction impacts income, expected to be within the next 4 months.
Refer to Note 15. Accumulated Other Comprehensive Losses.
As of September 30, 2025, the Company recognized a derivative asset of $
currency contracts, classified within “Other Current Assets” .
The following table presents the details of outstanding foreign currency contracts:
September 30, 2025
Notional amount
(thousands)
Unit of
measure
Varying maturity
dates
Forward foreign currency contracts
US$
October 2025 -
January 2026
b) 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.
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 September 30, 2025, the Company’s forward foreign currency contracts, a net derivative asset of $
million, were required to be measured at fair value on a recurring basis based on a valuation that is corroborated
by the use of market-based pricing (Level 2). As at December 31, 2024, there were no financial instruments
required to be measured at fair value on a recurring basis.
Other Financial Instruments
The following methods and assumptions were used to estimate the fair value of other financial instruments as of
September 30, 2025 and December 31, 2024:
●
and other current financial liabilities: The carrying amounts reported in the unaudited Condensed
Consolidated Balance Sheets approximated fair value due to the short maturity of these instruments.
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NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Coronado Global Resources Inc.
●
values approximate d the carrying values reported in the unaudited Condensed Consolidated Balance
Sheets.
●
cost. As of September 30, 2025, the fair value of the amounts drawn under the ABL Facility approximated
the carrying value reported in the consolidated balance sheets. The estimated fair value of the Notes as
of September 30, 2025 was approximately $
that is not considered active (Level 2). The estimated fair value of the Curragh Housing loan was $
million based upon unobservable inputs (Level 3).
15. Accumulated Other Comprehensive Losses
The Company’s Accumulated Other Comprehensive Losses consisted of foreign currency translation adjustment
of subsidiaries for which the functional currency is different to the Company’s functional currency in U.S. dollar
and net unrealized gains (losses) of forward foreign currency contracts designated as cash flow hedge as of
September 30, 2025, as follow:
(in US$ thousands)
Foreign
currency
translation
adjustments
Net unrealized
gain on cash
flow hedge -
forward foreign
currency
contracts
Total
Balance at December 31, 2024
$
(137,560 )
$
(137,560 )
Net current-period other comprehensive losses:
(Loss) gain in other comprehensive income before
reclassifications
(14,457 )
(12,434 )
Gain on long-term intra-entity foreign currency transactions
Gain reclassified from accumulated other comprehensive
losses
(335 )
(335 )
Total net current-period other comprehensive losses
Balance at September 30, 2025
$
(128,872 )
$
(127,184 )
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 September 30, 2025
were 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 September 30, 2025, purchase commitments for capital expenditures were $
obligated within the next twelve months.
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NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Coronado Global Resources Inc.
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
September 30, 2025, these Australian and U.S. commitments under take-or-pay arrangements totaled
$
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 insurance. As of
September 30, 2025, the Company had outstanding surety bonds of $
For the Australian Operations, as at September 30, 2025, the Company had bank guarantees outstanding of
$
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 $
support for 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.
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, continues to dispute a portion of the stamp duty paid on the
acquisition of the Curragh mine in 2018 of $
Supreme Court of Queensland on March 11, 2024. The outcome of the appeal remains uncertain and as such,
no contingent asset was recognized at September 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.
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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 September 30, 2025, the related condensed consolidated statements of operations and
comprehensive income for the three and nine-month periods ended September 30, 2025 and 2024, the
condensed consolidated statements of stockholders’ equity for the three-month periods ended March 31, June
30, and September 30, 2025 and 2024, the condensed consolidated statements of cash flows for the nine-month
periods ended September 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 to the condensed consolidated interim financial statements, 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
November 10, 2025.
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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 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 using 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;
●
our current ABL Facility, on acceptable terms, or at all, and our ability to comply with applicable covenants
included in the New ABL Facility with Stanwell and to achieve the anticipated benefits of the Proposed
Transaction with Stanwell;
●
regulations, including our ability to provide applicable surety of Curragh’s ERC under the Financial
Provisioning Scheme Act;
●
policies and other barriers to trade. For example, on April 2, 2025, the U.S. government announced a
baseline 10% tariff on certain imports and higher tariffs on imports from certain countries, and on June
4, 2025, the U.S. government increased tariffs on steel imports to 50%. These developments underscore
the risk and volatility in global supply chains, financial markets and international trade policies;
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Coronado Global Resources Inc.
●
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;
●
arising from mining activities, including possible impacts on global climate issues, which could result in
increased regulation of coal combustion and GHG emissions and increased 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 reduce our access to capital and insurance;
●
one or more of our major customers, including customers in the steel industry, and 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;
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Coronado Global Resources Inc.
●
require us to recognize impairment charges related to those assets;
●
●
impact our reported financial results; and
●
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, Part II, Item 1A. “Risk Factors” of our Quarterly Report on
Form 10-Q for the quarterly period ended March 31, 2025, filed with the SEC and ASX on May 8, 2025, and Part
II, Item 1A. “Risk Factors” of our Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2025,
filed with the SEC and ASX on August 11 , 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.
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Coronado Global Resources Inc.
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-
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. Adjusted EBITDA and Segment
Adjusted EBITDA are used as supplemental financial measures 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 exclude these cost
components as our CODM does not view these costs as directly attributable 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, which is
used to generate electricity, domestically to Stanwell and 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 and nine months ended September 30, 2025, were negatively impacted as Met coal
markets remained subdued through the quarter amid continued softness in steel demand and ample global
supply. However, operational performance continued to improve, with saleable production surpassing the prior
quarter.
In the third quarter of 2025, Met coal spot prices remained broadly stable relative to the second quarter of 2025,
with the Australian Premium Low Volatile Hard Coking Coal index, or AUS PLV HCC, averaging $183.5 per Mt,
slightly lower than the prior quarter. This flat to slightly softer pricing reflected continued weak steel-sector
demand, particularly from China, where output curbs and property-sector softening weighed on coking-coal
imports, combined with ample supply and high inventory levels globally. With no major supply disruptions
emerging in the third quarter of 2025, and shipping and logistics functioning smoothly, the market continued to
favor buyers rather than sellers, limiting upward price momentum .
Although coal markets remained unfavorable, our operations continued to perform strongly in the third quarter
compared to the second quarter of 2025, delivering higher quarter-on-quarter run-of-mine, or ROM, coal
production, saleable production and sales volumes.
Saleable production for the three and nine months ended September 30, 2025, was 4.5 MMt and 11.7 MMt,
respectively, 0.7 MMt and 0.3 MMt higher compared to the three and nine months ended September 30, 2024,
respectively. Improved production was supported by higher equipment utilization, enhanced owner-operated
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Coronado Global Resources Inc.
fleets at our open cut mine and continued ramp up of our Mammoth underground mine at our Australian
Operations, partially offset by lower output from our U.S. Operations following temporary idling of surface mines
and lower than expected yields.
Despite strong saleable production, our sales volume of 11.1 MMt for the nine months ended September 30,
2025, was 0.7 MMt lower than the same period in 2024. The decrease was primarily driven by (1) lower production
at our U.S. Operations, a product of temporary idling of surface mines and lower yields, (2) rail, port and pier
constraints at our U.S. Operations and co-shipment scheduling delays at our Australian Operations, which
together resulted in the deferral of five vessels into October 2025, and (3) significant port inventory built by our
Australian Operations in December 2023, due to port constraints, which was shipped in the first quarter of 2024.
Coal revenues of $1,377.5 million for the nine months ended September 30, 2025, decreased $520.6 million
compared to the same period in 2024, driven by lower sales volumes, and average realized Met prices, which
were $43.2 per Mt lower than during the nine months ended September 30, 2024.
Mining costs for the nine months ended September 30, 2025 were $200.3 million lower compared to the
corresponding period in 2024, primarily driven by cost savings from reduction in contractor fleets, which occurred
progressively since March 2024, and associated costs, favorable average foreign exchange rates on translation
of the Australian Operations for the nine months ended September 30, 2025, and temporary idling of Logan’s
surface mine at our U.S. Operations. Mining costs per Mt sold were $97.6 for the nine months ended September
30, 2025, which was $13.4 per Mt lower than during the nine months ended September 30, 2024, driven by lower
mining costs, partially offset by lower sales volume of 0.6 MMt.
Liquidity and Going Concern
As of September 30, 2025, Coronado had cash and cash equivalents (excluding restricted cash) of $171.8 million
and $15.5 million of undrawn capacity under the ABL Facility. Our net debt of $328.0 million as of September 30,
2025 comprised of $499.8 million of aggregate principal amount of interest-bearing liabilities outstanding less
cash and cash equivalents (excluding restricted cash).
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.
On September 29, 2025, we entered into an agreement with the Administrative Agent under the ABL Facility to
waive compliance with applicable financial covenants as at September 30, 2025, and reset the conditions related
to credit rating downgrades such that a review event, default or event of default would not occur under the ABL
Facility due to a one notch downgrade to the Company’s credit rating by S&P or Moody’s as at September 29,
2025 (however an event of default will occur if there is a further two or more notches downgrade to the Company’s
credit rating by S&P or Moody’s as at September 29, 2025). The requirements to comply with financial covenants
beyond September 30, 2025 remained unchanged.
As the outlook for Met coal markets remains uncertain, continued low or a further deterioration in Met coal prices
and our inability to achieve production forecasts, due to factors beyond our control, could lead to an inability to
fund short-term working capital movements, further operating losses and negative operating cash flows for the
remainder of 2025 and into 2026, which, combined with other factors, could impact our ability to comply with
financial covenants under the ABL Facility on and beyond December 31, 2025.
Non-compliance with financial covenants or a potential further two or more notches 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.
On October 28, 2025, the Company announced the Proposed Transaction with Stanwell that intends to enhance
the Company’s short and long-term financial viability.
The Proposed Transaction, which remains non-binding and subject to completion of due diligence, definitive
documents and required external approvals, include (1) Stanwell providing a $265.0 million financing facility
replacing the existing ABL Facility, (2) Stanwell waiving the remaining rebate payments under the ACSA, (3)
extension of the NCSA from 2037 to 2043, (4) Stanwell will make additional prepayments in relation to its future
annual contract tonnage under the ACSA and NCSA, which will bear interest and be settled through delivery of
coal to Stanwell in months when the Company’s liquidity exceeds $300.0 million, (5) change of control events
triggering repayment of the rebate waived and (6) minimum liquidity requirements to declare distributions to
shareholders.
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Coronado Global Resources Inc.
In addition to the Proposed Transaction, we continue to pursue a number of initiatives intended to improve liquidity
including, among other things, further operating and capital cost control measures, potential other debt and non-
debt funding measures, and whole or partial asset sales.
While management believes that the Proposed Transaction, if entered into and once completed, would enhance
the Company’s liquidity, the vast majority of the potential funding under the arrangement is delivered over time
and not upfront, and does not eliminate uncertainties in relation to the Company’s future financial performance,
including the our ability to achieve production targets and manage working capital fluctuations that are material
at times depending on circumstances (production and inventory levels), due to events and factors beyond our
control, and sustained weakness in Met coal market and consequential realized Met coal prices.
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.
Safety
For our Australian Operations, the twelve-month rolling average Total Reportable Injury Frequency Rate at
September 30, 2025, was 2.88, 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 September 30, 2025, was 1.95,
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 with the
goal of improving our safety rates every quarter.
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 September 30, 2025 Compared to Three Months Ended September 30, 2024
Summary
The financial and operational summary for the three months ended September 30, 2025 includes:
●
higher compared to a net loss of $102.8 million for the three months ended September 30, 2024, which
was primarily driven by lower operating costs including the impact of a build in coal inventories due to
higher saleable production exceeding slightly higher sales volumes, partially offset by lower average
realized prices.
●
$31.0 per Mt sold lower compared to $179.6 per Mt sold for the same period in 2024, reflecting a
downward trend since September 30, 2024, due to lower restocking by Chinese mills and oversupply of
steel, resulting in reduced Met coal demand from key steel-producing regions, particularly in Europe and
Asia.
●
to the same period in 2024, while saleable production was 0.7 MMt higher, largely driven by improved
performance at our Australian Operations, supported by higher equipment utilization and enhanced open
cut output from owner-operated fleets. Higher saleable production volumes did not result in higher sales
volumes to the same extent due to rail, port and pier constraints which resulted in deferral of three vessels
into October 2025 at our U.S. Operations, as well as co-shipper delays which caused two vessels to be
deferred to October 2025 at our Australian Operations.
●
million higher compared to an Adjusted EBITDA loss of $19.1 million for the same period in 2024. Lower
coal sales revenues were largely offset by lower operating costs, including a significant build in saleable
coal inventories.
●
cash) of $171.8 million and $15.5 million of undrawn capacity under the ABL Facility.
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Coronado Global Resources Inc.
Three months ended
September 30,
2025
2024
Change
%
(in US$ thousands)
Revenues:
Coal revenues
$
476,670
$
600,703
$
(124,033)
Other revenues
5,457
7,512
(2,055)
Total revenues
482,127
608,215
(126,088)
Costs and expenses:
Cost of coal revenues (exclusive of items
shown separately below)
360,588
466,113
(105,525)
Depreciation, depletion and amortization
49,198
45,559
3,639
Freight expenses
71,723
66,126
5,597
Stanwell rebate
26,331
25,391
940
Other royalties
38,690
63,020
(24,330)
Selling, general, and administrative expenses
7,541
9,174
(1,633)
Total costs and expenses
554,071
675,383
(121,312)
Other income (expenses):
Interest expense, net
(29,443)
(15,808)
(13,635)
(Increase) decrease in provision for
credit losses
(2,836)
(43)
(2,793)
Other, net
460
(19,749)
20,209
Total other expenses, net
(31,819)
(35,600)
3,781
Net loss before tax
(103,763)
(102,768)
(995)
Income tax (expense) benefit
(5,707)
31,771
(37,478)
Net loss attributable to Coronado Global
Resources, Inc.
$
(109,470)
$
(70,997)
$
(38,473)
Coal Revenues
Coal revenues were $476.7 million for the three months ended September 30, 2025, a decrease of $124.0 million,
compared to $600.7 million for the three months ended September 30, 2024. This decrease was primarily
attributable to lower average realized Met coal prices and a sales mix which was weighted more towards export
thermal volumes as our Australian Operations experienced reliability issues with the coal handling preparation
plant, or CHPP, and bypassed raw coal to manage cash flows.
Cost of Coal Revenues (Exclusive of Items Shown Separately Below)
Cost of coal revenues consists of costs related to produced tons sold, along with changes in both the volumes
and carrying values of coal inventory. Cost of coal revenues includes 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 $360.6 million for the three months ended September 30, 2025, $105.5 million,
or 22.6% lower, compared to $466.1 million for the three months ended September 30, 2024.
Cost of coal revenues for our Australian Operations for the three months ended September 30, 2025, was $57.8
million lower compared to the same period in 2024, primarily driven by higher inventory build due to saleable
production exceeding sales volume, lower coal purchases and a favorable average foreign exchange rates on
translation of the Australian Operations for the three months ended September 30, 2025, of A$/US$ 0.65
compared to 0.67 for the same period in 2024.
Cost of coal revenues for our U.S. Operations for the three months ended September 30, 2025, was $47.7 million
lower compared to the three months ended September 30, 2024, mainly due to the temporary idling of surface
mining at Logan beginning in March 2025 and reduced well drilling at Buchanan, and inventory build as saleable
production exceeded sales volume due to rail, port and pier constraints during the three months ended September
30, 2025.
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Coronado Global Resources Inc.
Depreciation, Depletion and Amortization
Depreciation, depletion and amortization was $49.2 million for the three months ended September 30, 2025, an
increase of $3.6 million, compared to $45.6 million for the three months ended September 30, 2024. The increase
was associated with equipment brought into service during the twelve months since September 30, 2024, partially
offset by a favorable average foreign exchange rate s on translation of the Australian Operations.
Freight Expenses
Freight expenses relate to costs associated with rail and port providers, including take-or-pay commitments at
our Australian Operations, and demurrage costs. Freight expenses were $71.7 million for the three months ended
September 30, 2025, an increase of $5.6 million, compared to $66.1 million for the same period in 2024. Our
Australian Operations contributed $8.2 million of the increase, driven by higher export sales volume and greater
volumes shipped through Wiggins Island Coal Export Terminal, or WICET, which incurs higher port and handling
charges, partially offset by lower coal sales under under Free on Board (FOB) terms at our U.S. Operations.
Other Royalties
Other royalties were $38.7 million in the three months ended September 30, 2025, a decrease of $24.3 million
compared to $63.0 million for the three months ended September 30, 2024, driven by lower coal revenues
coupled with a favorable foreign exchange rate on translation of our Australian Operations.
Interest expense, net
Interest expense, net was $29.4 million for the three months ended September 30, 2025, an increase of $13.6
million compared to $15.8 million for the three months ended September 30, 2024. The increase was driven by
higher average indebtedness, due to additional borrowings under the Notes, ABL Facility, insurance premium
financing, and coal prepayment facility combined with lower interest income on cash equivalents and restricted
deposits during the three months ended September 30, 2025, compared to the same period in 2024.
Other, net
Other, net for the three months ended September 30, 2025, was positive $0.5 million, an improvement of
$20.2 million compared to a loss of $19.7 million for the three months ended September 30, 2024. The decrease
was largely driven by an impairment charge of $10.6 million recognized against property, plant and equipment
relating to a long-standing, non-core, idled asset sold within our U.S. Operations during the three months ended
September 30, 2024, and lower exchange losses on translation of short-term inter-entity balances.
Income Tax Expense (Benefit)
Income tax expense was $5.7 million for the three months ended September 30, 2025, a decrease of $37.5
million compared to an income tax benefit of $31.8 million for the three months ended September 30, 2024. The
decrease in income tax expense was the result of an effective tax rate of 7.7% for the nine months ended
September 30, 2025, compared to an effective tax rate of 34.2% for the nine months ended September 30, 2024.
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Coronado Global Resources Inc.
Nine months ended September 30, 2025 compared to Nine months ended September 30, 2024
Summary
The financial and operational summary for the nine months ended September 30, 2025 includes:
●
compared to a net loss of $54.8 million for the nine months ended September 30, 2024. The higher net
loss was a result of lower coal revenues and higher interest expense, partially offset by lower operating
costs.
●
$43.2 per Mt lower compared to $192.6 per Mt sold for the same period in 2024. The AUS PLV HCC
index averaged $184.2 per Mt for the nine months ended September 30, 2025, a decline of $68.9 per Mt
compared to the same period in 2024. This decrease primarily reflected persistent softness in global Met
coal markets, driven by ongoing oversupply from major exporters, including Australia and Russia. Lower
steel production and restocking activity in key Asian markets, particularly China and India, further
contributed to weaker demand and downward pressure on prices.
●
compared to the nine months ended September 30, 2024. The decrease was primarily driven by (1) lower
production at our U.S. Operations, due to temporary idling of a surface mine and lower yields, (2) rail,
port and pier constraints at our U.S. Operations and co-shipper scheduling delays at our Australian
Operations, which resulted in a total of five vessels delayed to October 2025, and (3) significant port
inventory built by our Australian Operations in December 2023, which was shipped in the first quarter of
2024.
●
million lower compared to an income of $116.3 million for the nine months ended September 30, 2024.
This decrease was primarily due to lower coal revenues partially offset by lower operating costs.
●
cash equivalents (excluding restricted cash) of $171.8 million and $499.8 million aggregate principal
amounts of interest-bearing liabilities outstanding.
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Coronado Global Resources Inc.
Nine months ended
September 30,
2025
2024
Change
%
(in US$ thousands)
Revenues:
Coal revenues
$
1,377,458
$
1,898,075
$
(520,617)
(27.4%)
Other revenues
21,796
52,117
(30,321)
(58.2%)
Total revenues
1,399,254
1,950,192
(550,938)
(28.3%)
Costs and expenses:
Cost of coal revenues (exclusive of items
shown separately below)
1,090,511
1,311,377
(220,866)
(16.8%)
Depreciation, depletion and amortization
135,227
142,171
(6,944)
(4.9%)
Freight expenses
194,617
183,652
10,965
6.0%
Stanwell rebate
70,115
83,293
(13,178)
(15.8%)
Other royalties
118,057
235,605
(117,548)
(49.9%)
Selling, general, and administrative expenses
23,474
26,635
(3,161)
(11.9%)
Total costs and expenses
1,632,001
1,982,733
(350,732)
(17.7%)
Other income (expenses):
Interest expense, net
(68,305)
(42,253)
(26,052)
61.7%
Loss on debt extinguishment
(1,050)
—
(1,050)
100.0%
Decrease in provision for discounting and
credit losses
(3,649)
157
(3,806)
(2,424.2%
)
Other, net
219
(8,643)
8,862
(102.5%)
Total other expenses, net
(72,785)
(50,739)
(22,046)
43.4%
Net loss before tax
(305,532)
(83,280)
(222,252)
266.9%
Income tax benefit
23,661
28,482
(4,821)
(16.9%)
Net loss attributable to Coronado Global
Resources, Inc.
$
(281,871)
$
(54,798)
$
(227,073)
414.4%
Coal Revenues
Coal revenues were $1,377.5 million for the nine months ended September 30, 2025, a decrease of $520.6
million, compared to $1,898.1 million for the nine months ended September 30, 2024. The decrease was driven
by lower average Met coal realized prices and lower sales volumes.
Other Revenues
Other revenues were $21.8 million for the nine months ended September 30, 2025, a decrease of $30.3 million
compared to $52.1 million for the nine months ended September 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 $1,090.5 million for the nine months ended September 30, 2025, a decrease of
$220.9 million, compared to $1,311.4 million for the nine months ended September 30, 2024.
Cost of coal revenues for our Australian Operations for the nine months ended September 30, 2025, was $178.3
million lower compared to the same period in 2024, primarily driven by cost savings from reduction in contractor
fleets since March 2024 and associated costs, inventory build due to higher saleable production and lower sales
volume compared to an inventory drawdown in 2024, lower coal purchases and a favorable average foreign
exchange rate on translation of our Australian Operations for the nine months ended September 30, 2025, of
A$/US$: 0.64 compared to 0.66 for the same period in 2024.
Cost of coal revenues for our U.S. Operations for the nine months ended September 30, 2025, was $42.6 million
lower compared to the same period in 2024, driven by the temporary idling of the surface mines at Logan, reduced
sections and well drilling activity at Buchanan, lower coal purchases combined with higher inventory build, with
saleable production exceeding sales volume, compared to the corresponding period in 2024.
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Coronado Global Resources Inc.
Depreciation, Depletion and Amortization
Depreciation, depletion and amortization was $135.2 million for the nine months ended September 30, 2025, a
decrease of $6.9 million, as compared to $142.2 million for the nine months ended September 30, 2024. The
decrease was associated with changes to depreciation rates following our annual useful life review at the
beginning of 2025 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 September 30, 2024.
Freight Expenses
Freight expenses totaled $194.6 million for the nine months ended September 30, 2025, an increase of $11.0
million compared to $183.6 million for the nine months ended September 30, 2024. Freight expenses for our
Australian Operations increased by $18.6 million due to higher export sales volumes shipped through WICET,
which has higher port handling charges and higher take-or-pay deficit tonnage costs. This was partially offset by
a $5.0 million reduction in freight costs at our U.S. Operations due to lower coal sales under FOB terms compared
to the nine months ended September 30, 2024.
Stanwell Rebate
The Stanwell rebate was $70.1 million for the nine months ended September 30, 2025, a decrease of $13.2
million compared to $83.3 million for the nine months ended September 30, 2024. The decrease was due to
lower export sales volume, lower realized reference coal pricing 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 $118.1 million for the nine months ended September 30, 2025, a decrease of $117.5 million,
as compared to $235.6 million for the nine months ended September 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 $68.3 million in the nine months ended September 30, 2025, an increase of $26.1
million as compared to $42.2 million for the nine months ended September 30, 2024. The increase was driven
by higher indebtedness due to additional borrowings under the Notes, ABL Facility, Curragh Housing Transaction,
insurance premium financing and coal prepayment facility combined with lower interest income on cash
equivalents and restricted deposits during the nine months ended September 30, 2025, compared to the same
period in 2024.
Other, net
Other, net was a gain of $0.2 million for the nine months ended September 30, 2025, an improvement of $8.9
million compared to a loss of $8.6 million for the nine months ended September 30, 2024. The increase was
largely driven by an impairment charge of $10.6 million recognized against property, plant and equipment relating
to a long-standing, non-core, idled asset sold within our U.S. Operations during the nine months ended
September 30, 2024, and lower foreign 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
Income tax benefit of $23.7 million for the nine months ended September 30, 2025, decreased by $4.8 million,
compared to income tax benefit of $28.5 million for the nine months ended September 30, 2024, primarily driven
by an effective tax rate of 7.7% for the nine months ended September 30, 2025.
In calculating the annual effective tax rate for the Group:
●
forward losses, a full valuation allowance was included as part of the annual effective tax rate
calculation, thereby reducing the rate to nil.
●
deferred tax assets was assessed and as a result a partial valuation allowance was included as part of
the annual effective tax rate, thereby reduci ng the annual effective tax rate to 7.7%.
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Coronado Global Resources Inc.
Supplemental Segment Financial Data
Three months ended September 30, 2025 compared to three months ended September 30, 2024
Australia
Three months ended
September 30,
2025
2024
Change
%
(in US$ thousands)
Sales volume (MMt)
2.8
2.4
0.4
14.2%
Total revenues ($)
300,317
365,953
(65,636)
(17.9)%
Coal revenues ($)
294,872
358,652
(63,780)
(17.8)%
Average realized price per Mt sold ($/Mt)
107.0
148.6
(41.6)
(28.0)%
Met coal sales volume (MMt)
1.8
1.7
0.1
2.9%
Met coal revenues ($)
257,752
334,594
(76,842)
(23.0)%
Average realized Met price per Mt sold ($/Mt)
145.1
193.8
(48.7)
(25.1)%
Mining costs ($)
240,470
290,121
(49,651)
(17.1)%
Mining cost per Mt sold ($/Mt)
87.3
122.8
(35.5)
(28.9)%
Operating costs ($)
348,156
418,335
(70,179)
(16.8)%
Operating costs per Mt sold ($/Mt)
126.4
173.3
(46.9)
(27.1)%
Segment Adjusted EBITDA ($)
(47,881)
(51,978)
4,097
(7.9)%
Coal revenues for our Australian Operations decreased largely due to an average realized Met coal price per Mt
sold, which was $48.7 per Mt lower compared to the same period in 2024, and a sales mix which was weighted
more towards export thermal volumes as we experienced reliability issues with the CHPP and bypassed raw coal
to manage cash flows, partially offset by higher Met sales volume.
Operating costs decreased by $70.2 million, or 16.8%, for the three months ended September 30, 2025,
compared to the three months ended September 30, 2024, driven by lower other royalties, resulting from lower
realized prices, and lower mining costs. Mining costs were $49.7 million lower for the three months ended
September 30, 2025 compared to the same period in 2024, largely a result of an inventory build due to saleable
production exceeding sales volumes, compared to an inventory drawdown in 2024, and a favorable average
foreign exchange rates on translation of our Australian Operations. Mining and Operating costs per Mt sold were
$35.5 and $46.9 lower, respectively, attributable to lower mining and operating costs and 0.4 MMt higher sales
volume for the three months ended September 30, 2025 compared to the same period in 2024.
Segment Adjusted EBITDA loss of $47.9 million for the three months ended September 30, 2025, was $4.1
million, or 7.9%, lower compared to a loss of $52.0 million for the three months ended September 30, 2024,
largely driven by lower operating costs, partially offset by lower coal revenues.
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Coronado Global Resources Inc.
United States
Three months ended
September 30,
2025
2024
Change
%
(in US$ thousands)
Sales volume (MMt)
1.2
1.5
(0.3)
(17.7)%
Total revenues ($)
181,810
242,262
(60,452)
(25.0)%
Coal revenues ($)
181,798
242,051
(60,253)
(24.9)%
Average realized price per Mt sold ($/Mt)
145.8
159.8
(14.0)
(8.8)%
Met coal sales volume (MMt)
1.1
1.5
(0.4)
(22.7)%
Met coal revenues ($)
173,523
237,101
(63,578)
(26.8)%
Average realized Met price per Mt sold ($/Mt)
154.2
162.8
(8.6)
(5.3)%
Mining costs ($)
118,515
166,210
(47,695)
(28.7)%
Mining cost per Mt sold ($/Mt)
95.0
109.7
(14.7)
(13.4)%
Operating costs ($)
149,176
202,315
(53,139)
(26.3)%
Operating costs per Mt sold ($/Mt)
119.6
133.6
(14.0)
(10.5)%
Segment Adjusted EBITDA ($)
32,879
41,628
(8,749)
(21.0)%
Coal revenues for our U.S. Operations decreased by $60.3 million, largely attributable to an average realized
Met coal price which was $14.0 per Mt lower compared to the three months ended September 30, 2024, driven
by unfavorable market conditions and lower fixed prices achieved from annual domestic price contracts compared
to 2024. Coal revenues were also impacted by lower sales volume of 0.3 MMt due to lower production yields, the
temporary idling of surface mines at Logan, and rail, port and pier constraints which resulted in the deferral of
three vessels into October 2025.
Operating costs were $53.1 million lower for the three months ended September 30, 2025, compared to the same
period in 2024, driven by lower mining costs a result of temporary idling of surface mine operations at Logan and
reduced well drilling at Buchanan, and a higher build in inventory as lower sales volumes, caused by port, rail
and pier constraints, exceeded lower production during the three months ended September 30, 2025 when
compared to the same period in 2024. Mining and Operating costs per Mt sold were lower by $14.7 and $14.0,
respectively, attributable to lower mining and operating costs, partially offset by lower sales volume.
Segment Adjusted EBITDA was $32.9 million for the three months ended September 30, 2025, a decrease of
$8.7 million compared to $41.6 million for the three months ended September 30, 2024, primarily driven by lower
coal revenues, partially offset by lower operating costs.
Corporate and Other Adjusted EBITDA
The following table presents a summary of the components of Corporate and Other Adjusted EBITDA:
Three months ended
September 30,
2025
2024
Change
%
(in US$ thousands)
Selling, general, and administrative expenses
$
7,541
$
9,174
$
(1,633)
(17.8)%
Other, net
(4)
(401)
397
(99.0)%
Total Corporate and Other Adjusted EBITDA
$
7,537
$
8,773
$
(1,236)
(14.1)%
Corporate and other costs of $7.5 million for the three months ended September 30, 2025, was $1.2 million lower
compared to the three months ended September 30, 2024 due to cost savings initiatives implemented at the
corporate level, partially offset by costs incurred to pursue various initiatives to improve liquidity.
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Coronado Global Resources Inc.
Mining and operating costs for the three months ended September 30, 2025 compared to three
months ended September 30, 2024
A reconciliation of segment costs and expenses, segment operating costs, and segment mining costs is shown
below:
Three months ended September 30, 2025
(in US$ thousands)
Australia
United
States
Other /
Corporate
Total
Consolidated
Total costs and expenses
$
370,733
$
175,232
$
8,106
$
554,071
Less: Selling, general and administrative
expense
(4)
—
(7,537)
(7,541)
Less: Depreciation, depletion and amortization
(22,573)
(26,056)
(569)
(49,198)
Total operating costs
348,156
149,176
—
497,332
Less: Other royalties
(30,035)
(8,655)
—
(38,690)
Less: Stanwell rebate
(26,331)
—
—
(26,331)
Less: Freight expenses
(49,717)
(22,006)
—
(71,723)
Less: Other non-mining costs
(1,603)
—
—
(1,603)
Total mining costs
240,470
118,515
—
358,985
Sales Volume excluding non-produced coal
(MMt)
2.8
1.2
—
4.0
Mining cost per Mt sold ($/Mt)
87.3
95.0
—
89.7
Three months ended September 30, 2024
(in US$ thousands)
Australia
United
States
Other /
Corporate
Total
Consolidated
Total costs and expenses
$
438,184
$
227,466
$
9,733
$
675,383
Less: Selling, general and administrative
expense
(12)
—
(9,162)
(9,174)
Less: Depreciation, depletion and amortization
(19,837)
(25,151)
(571)
(45,559)
Total operating costs
418,335
202,315
—
620,650
Less: Other royalties
(51,567)
(11,453)
—
(63,020)
Less: Stanwell rebate
(25,391)
—
—
(25,391)
Less: Freight expenses
(41,474)
(24,652)
—
(66,126)
Less: Other non-mining costs
(9,782)
—
—
(9,782)
Total mining costs
290,121
166,210
—
456,331
Sales Volume excluding non-produced coal
(MMt)
2.4
1.5
—
3.9
Mining cost per Mt sold ($/Mt)
122.8
109.7
—
117.7
Average realized Met price per Mt sold for the three months ended September 30, 2025 compared to
three months ended September 30, 2024
A reconciliation of the Company’s average realized Met price per Mt sold is shown below:
Three months ended
September 30,
2025
2024
Change
%
(in US$ thousands)
Met coal sales volume (MMt)
2.9
3.2
(0.3)
(8.8)%
Met coal revenues ($)
431,275
571,695
(140,420)
(24.6)%
Average realized Met price per Mt sold ($/Mt)
148.6
179.6
(31.0)
(17.3)%
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Coronado Global Resources Inc.
Nine months ended September 30, 2025 compared to Nine months ended September 30, 2024
Australia
Nine months ended
September 30,
2025
2024
Change
%
(in US$ thousands)
Sales volume (MMt)
7.2
7.6
(0.4)
(5.2)%
Total revenues ($)
833,439
1,260,549
(427,110)
(33.9)%
Coal revenues ($)
812,433
1,235,746
(423,313)
(34.3)%
Average realized price per Mt sold ($/Mt)
112.4
162.0
(49.6)
(30.6)%
Met coal sales volume (MMt)
5.0
5.5
(0.5)
(10.0)%
Met coal revenues ($)
738,442
1,172,404
(433,962)
(37.0)%
Average realized Met price per Mt sold ($/Mt)
148.4
212.2
(63.8)
(30.0)%
Mining costs ($)
661,736
826,880
(165,144)
(20.0)%
Mining cost per Mt sold ($/Mt)
91.5
109.6
(18.1)
(16.5)%
Operating costs ($)
957,996
1,245,737
(287,741)
(23.1)%
Operating costs per Mt sold ($/Mt)
132.5
163.3
(30.8)
(18.9)%
Segment Adjusted EBITDA ($)
(122,925)
16,377
(139,302)
(850.6)%
Coal revenues for our Australian Operations for the nine months ended September 30, 2025, were $423.3 million
lower compared to the nine months ended September 30, 2024. The decrease was driven by the average realized
Met coal price being $63.8 per Mt lower and a sales mix which was weighted toward thermal coal. Coal revenues
were further impacted by sales volumes being 0.4 MMt lower driven by the delay caused by co-shippers of two
vessels into October 2025 and partially offset by the sale of port inventory built in December 2023 due to port
constraints, which were shipped in the first quarter of 2024.
Operating costs decreased by $287.7 million driven by lower mining costs and lower Stanwell rebate and other
royalties, resulting from lower realized prices and lower coal revenues. Mining costs were $165.1 million lower
for the nine months ended September 30, 2025, primarily driven by cost savings from reduced contractors’ fleet
costs since March 2024, higher inventory build as a result of higher saleable production and lower sales volume
and favorable foreign exchange rate on translation of our Australian Operations for the nine months ended
September 30, 2025 compared to the same period in 2024. Mining and Operating costs per Mt sold were $18.1
and $30.8 lower, respectively, compared to the nine months ended September 30, 2024.
Segment Adjusted EBITDA decreased from $16.4 million for the nine months ended September 30, 2024 to a
loss of $122.9 million for the nine months ended September 30, 2025 due to lower coal revenues, partially offset
by lower operating costs.
United States
Nine months ended
September 30,
2025
2024
Change
%
(in US$ thousands)
Sales volume (MMt)
3.9
4.1
(0.2)
(4.9)%
Total revenues ($)
565,815
689,643
(123,828)
(18.0)%
Coal revenues ($)
565,025
662,329
(97,304)
(14.7)%
Average realized price per Mt sold ($/Mt)
145.1
161.8
(16.7)
(10.6)%
Met coal sales volume (MMt)
3.6
3.9
(0.3)
(7.6)%
Met coal revenues ($)
541,663
640,488
(98,825)
(15.4)%
Average realized Met price per Mt sold ($/Mt)
150.8
164.8
(14.0)
(8.8)%
Mining costs ($)
424,134
459,316
(35,182)
(7.7)%
Mining cost per Mt sold ($/Mt)
108.9
113.7
(4.8)
(4.5)%
Operating costs ($)
515,304
568,190
(52,886)
(9.3)%
Operating costs per Mt sold ($/Mt)
132.4
138.8
(6.4)
(5.0)%
Segment Adjusted EBITDA ($)
50,452
125,322
(74,870)
(59.7)%
Coal revenues decreased by $97.3 million, or 14.7%, to $565.0 million for the nine months ended September 30,
2025, compared to $662.3 million for the nine months ended September 30, 2024. This decrease was driven by
weak global Met coal markets which resulted in a lower average realized Met coal price of $150.8 per Mt for the
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Coronado Global Resources Inc.
nine months ended September 30, 2025, and lower fixed prices achieved from annual domestic price contracts
for 2025 compared to 2024.
Operating costs were $52.9 million lower for the nine months ended September 30, 2025, compared to the same
period in 2024, driven by lower mining costs, lower coal purchase and lower other royalties, a product of lower
coal revenues. Mining costs decreased by $35.2 million for the nine months ended September 30, 2025,
compared to the nine months ended September 30, 2024, due to the temporary idling of surface mine operations
at Logan and reduced well drilling at Buchanan, lower maintenance costs and higher inventory build as lower
sales volumes exceeded lower saleable production.
Adjusted EBITDA of $50.4 million decreased by $74.9 million, or 59.7%, for the nine months ended September
30, 2025, compared to $125.3 million for the nine months ended September 30, 2024. This decrease was
primarily driven by lower coal and other revenues partially offset by lower operating costs.
Corporate and Other Adjusted EBITDA
The following table presents a summary of the components of Corporate and Other Adjusted EBITDA:
Nine months ended
September 30,
2025
2024
Change
%
(in US$ thousands)
Selling, general, and administrative expenses
$
23,474
$
26,635
$
(3,161)
(11.9)%
Other, net
(22)
(1,218)
1,196
(98.2)%
Total Corporate and Other Adjusted EBITDA
$
23,452
$
25,417
$
(1,965)
(7.7)%
Corporate and other costs of $23.5 million for the nine months ended September 30, 2025, were $2.0 million
lower compared to $25.4 million for the nine months ended September 30, 2024, due to cost savings initiatives
implemented at the corporate level partially offset by costs incurred to pursue various initiatives to improve
liquidity.
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Coronado Global Resources Inc.
Mining and operating costs for the Nine months ended September 30, 2025 compared to Nine months
ended September 30, 2024
A reconciliation of segment costs and expenses, segment operating costs, and segment mining costs is shown
below:
Nine months ended September 30, 2025
(in US$ thousands)
Australia
United
States
Other /
Corporate
Total
Consolidated
Total costs and expenses
$
1,018,184
$
588,841
$
24,976
$
1,632,001
Less: Selling, general and administrative
expense
(11)
(13)
(23,450)
(23,474)
Less: Depreciation, depletion and amortization
(60,177)
(73,524)
(1,526)
(135,227)
Total operating costs
957,996
515,304
—
1,473,300
Less: Other royalties
(90,132)
(27,925)
—
(118,057)
Less: Stanwell rebate
(70,115)
—
—
(70,115)
Less: Freight expenses
(131,372)
(63,245)
—
(194,617)
Less: Other non-mining costs
(4,641)
—
—
(4,641)
Total mining costs
661,736
424,134
—
1,085,870
Sales Volume excluding non-produced coal
(MMt)
7.2
3.9
—
11.1
Mining cost per Mt sold ($/Mt)
91.5
108.9
—
97.6
Nine months ended September 30, 2024
(in US$ thousands)
Australia
United
States
Other /
Corporate
Total
Consolidated
Total costs and expenses
$
1,312,432
$
642,548
$
27,753
$
1,982,733
Less: Selling, general and administrative
expense
(47)
—
(26,588)
(26,635)
Less: Depreciation, depletion and amortization
(66,648)
(74,358)
(1,165)
(142,171)
Total operating costs
1,245,737
568,190
—
1,813,927
Less: Other royalties
(205,018)
(30,587)
—
(235,605)
Less: Stanwell rebate
(83,293)
—
—
(83,293)
Less: Freight expenses
(112,736)
(70,916)
—
(183,652)
Less: Other non-mining costs
(17,810)
(7,371)
—
(25,181)
Total mining costs
826,880
459,316
—
1,286,196
Sales Volume excluding non-produced coal
(MMt)
7.5
4.0
—
11.6
Mining cost per Mt sold ($/Mt)
109.6
113.7
—
111.0
Average realized Met price per Mt sold for the Nine months ended September 30, 2025 compared to
Nine months ended September 30, 2024
A reconciliation of the Company’s average realized Met price per Mt sold is shown below:
Nine months ended
September 30,
2025
2024
Change
%
(in US$ thousands)
Met coal sales volume (MMt)
8.6
9.4
(0.8)
(9.0)%
Met coal revenues ($)
1,280,105
1,812,892
(532,787)
(29.4)%
Average realized Met price per Mt sold ($/Mt)
149.4
192.6
(43.2)
(22.4)%
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Coronado Global Resources Inc.
Reconciliation of Non-GAAP Financial Measures
Adjusted EBITDA
Three months ended
September 30,
Nine months ended
September 30,
(in US$ thousands)
2025
2024
2025
2024
Reconciliation to Adjusted EBITDA:
Net loss
$
(109,470)
$
(70,997)
$
(281,871)
$
(54,798)
Add: Depreciation, depletion and amortization
49,198
45,559
135,227
142,171
Add: Interest expense (net of interest income)
29,443
15,808
68,305
42,253
Add: Other financing costs
1,500
—
1,500
—
Add: Other foreign exchange (gains) losses
(1,753)
10,190
(1,972)
1,086
Add: Loss on extinguishment of debt
—
—
1,050
—
Add: Income tax expense (benefit)
5,707
(31,771)
(23,661)
(28,482)
Add: Impairment of non-core assets
—
10,585
—
10,585
Add: Losses on idled assets
—
1,460
1,848
3,624
Add: Increase (decrease) in provision for
credit losses
2,836
43
3,649
(157)
Adjusted EBITDA
$
(22,539)
$
(19,123)
$
(95,925)
$
116,282
Liquidity and Capital Resources
Overview
Our objective is to maintain a prudent capital structure and to ensure that sufficient liquid assets and funding are
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 expenditures, debt service obligations, business or asset 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, Part II,
Item 1A. “Risk Factors” of our Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2025,
filed with the SEC and ASX on May 8, 2025, and Part II, Item 1A. “Risk Factors” of our Quarterly Report on Form
10-Q for the quarterly period ended June 30, 2025, filed with the SEC and ASX on August 11, 2025.
Sources of liquidity as of September 30, 2025 and December 31, 2024 were as follows:
(in US$ thousands)
September 30,
2025
December 31,
2024
Cash and cash equivalents, excluding restricted cash
$
171,837
$
339,374
Availability under the ABL Facility
(1)
15,536
128,563
Total
$
187,373
$
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.
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Coronado Global Resources Inc.
Our total indebtedness as of September 30, 2025 and December 31, 2024 consisted of the following:
(in US$ thousands)
September 30,
2025
December 31,
2024
Current installments of interest bearing liabilities
$
1,717
$
1,477
Interest bearing liabilities, excluding current installments
498,100
422,995
Current installments of other financial liabilities and other
finance lease obligations
18,497
6,163
Other financial liabilities and finance lease obligations, excluding
current installments
40,446
19,694
Total
$
558,760
$
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 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.
On September 29, 2025, we entered into an agreement with the Administrative Agent under the ABL Facility to
waive compliance with financial covenants as at September 30, 2025, and reset the conditions related to credit
rating obligations such that a review event, default or event of default would not occur under the ABL Facility due
to a one notch downgrade to the Company’s credit rating by S&P or Moody’s as at September 29, 2025 (however
an event of default will occur if there is a further two or more notches downgrade to the Company’s credit rating
by S&P or Moody’s as at September 29, 2025). The Company’s obligation to comply with financial covenants
beyond September 30, 2025, remained unchanged.
As the outlook for Met coal markets remains uncertain, continued low or a further deterioration in Met coal prices
and our inability to achieve production forecasts, due to factors beyond our control, could lead to an inability to
fund short-term working capital movements, further operating losses and negative operating cash flows for the
remainder of 2025 and into 2026, which, combined with other factors, could impact our ability to comply with
financial covenants under the ABL Facility on and beyond December 31, 2025.
Non-compliance with financial covenants or a potential further two or more notches 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.
On October 23, 2025, the Scheme Manager under the Financial Provisioning Scheme Act advised the Company
that it had completed an indicative decision related to the Annual Review Allocation for the Curragh mine complex
EA number EPML00643713, providing an indicative allocation of “High”. This is a change to the previous Annual
Review Allocation for the EA of “Moderate”. A final Annual Review Allocation has not yet been made.
The “High” rating would require the Company to provide a surety, in the form of bank guarantees, insurance bond
or cash collateral, of Curragh’s ERC of $242.7 million to the scheme. However, under the Financial Provisioning
Scheme Act, if:
●
category, and
●
“Moderate” risk category; and
●
12 months after the decision is made, such EA will be taken to be allocated to the “Moderate-High” risk
category for determining the contribution payable for the next twelve-month period’s obligation. A risk
allocation of “Moderate-High” requires a contribution to the scheme of 6.5% of the ERC amount.
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Coronado Global Resources Inc.
We are currently making relevant submissions to the Scheme Manager in accordance with its rights under the
Financial Provisioning Scheme Act. However, as of the filing of this Quarterly Report on Form 10-Q, a final Annual
Review Allocation has not been issued by the Scheme Manager .
On October 28, 2025, the Company announced the Proposed Transaction with Stanwell for a combination of
financial support transactions intended to improve our short and long-term financial liability.
The Proposed Transaction, which remains non-binding and subject to completion of due diligence, definitive
documents and required external approvals, includes the following:
●
Stanwell and increasing availability from $150.0 million to $265.0 million, with a five-year maturity and at
a lower interest rate. The borrowing base limits are expected to be amended to allow higher levels of
borrowing against working capital assets of the Company and more flexible covenant conditions.
●
become repayable for certain specified change of control events or default that would lead to termination
of existing Stanwell coal supply agreements.
●
to make broader annual nominations ranging from 1.2 MMt to 2.24 MMt.
●
tonnage under the ACSA and NCSA equal the difference between current contracted prices and a market
price equivalent (to be agreed with the Company and with discount to market being not more than 10%
of the price difference applied to the first 1.2 MMt nominated under the NCSA), or the price difference,
when our liquidity is under $200 million. This additional prepayment is available for the remaining
contractual term of the ACSA and the NCSA. When our liquidity is between $200.0 million and $250.0
million, the additional prepayment reduces to 50% of the price difference. When liquidity is above $250.0
million, no prepayments will be made, and the existing terms of the ACSA and NCSA apply. The
accumulated prepayment amount will bear interest at 7.5% per annum and the accrued interest amount
will be capped at 1.2 times of the accumulated principal prepayment amount. The prepayment balance
will be settled through delivery of coal to Stanwell in months when our liquidity exceeds $300.0 million.
All liquidity thresholds will be annually adjusted for inflation .
●
over other fixed assets in respect to the proposed ABL Facility and retain its lower-ranking security under
the NCSA obligations.
●
agreement relating to the Proposed Transaction, we must (1) obtain Stanwell’s consent and (2) pay
immediately to Stanwell the amount of rebate waived under the ACSA. Additionally, if our current
controlling shareholder ceases to control the Company by way of disposing a 20% or more interest in
the Company without Stanwell’s consent, we must immediately pay to Stanwell the amount of the rebate
waived under the ACSA. The controlling shareholder may dispose an interest in the Company less than
20% without Stanwell’s consent.
●
required to maintain a minimum cash liquidity of $300.0 million following the payment of such distribution
to shareholders, the repurchase of any Notes in connection with the distribution and an equal or greater
amount than the distribution will be used to reduce the prepayment amounts outstanding under ACSA
and NCSA.
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Coronado Global Resources Inc.
In addition to the Proposed Transaction, we continue to pursue a number of initiatives intended to improve liquidity
including, among other things, further operating and capital cost control measures, potential other debt and non-
debt funding measures, and whole or partial asset sales.
While management believes that the Proposed Transaction, if entered into and once completed, would enhance
our liquidity, the vast majority of the potential funding under the arrangement is delivered over time and not
upfront, and does not eliminate uncertainties in relation to our future financial performance, including our ability
to achieve its production targets and manage working capital fluctuations that are material at times depending
on circumstances (production and inventory levels), due to events and factors beyond its control, and sustained
weakness in Met coal markets and consequential realized Met coal prices.
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 in excess of 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.
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 September 30, 2025, the eligible borrowing base under the ABL Facility was $90.5 million,
of which $75.0 million had been drawn and $15.5 million remained available to be drawn.
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 until June 18, 2026, 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, as described in the ABL Facility.
The ABL Facility also contains customary representations and warranties and affirmative and negative covenants
including, among others, covenants relating to the payment of dividends with respect to, or the purchase or
redemption of, any equity interests of the Company or any of its subsidiaries, financial reporting, the incurrence
of liens or encumbrances, 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 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) a downgrade of
a Loan Party’s credit rating by S&P or Moody’s 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.
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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, 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 two or more notches 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.
On September 29, 2025, we entered into an agreement with the Administrative Agent under the ABL Facility to
waive compliance with financial covenants as at September 30, 2025, and reset the conditions related to credit
rating obligations such that a review event, default or event of default would not occur under the ABL Facility due
to a one notch downgrade to the Company’s credit rating by S&P or Moody’s as at September 29, 2025 (however
an event of default will occur if there is a further two or more notches downgrade to the Company’s credit rating
by S&P or Moody’s as at September 29, 2025). The Company’s obligation to comply with financial covenants as
at December 31, 2025, and beyond remained unchanged.
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 September 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, or the Indenture, dated as of October 2, 2024, among
Coronado Finance Pty Ltd, as issuer (the 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. 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.
Upon the occurrence of a “Change of Control Triggering Event”, 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 September 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.
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Coronado Global Resources Inc.
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.
Unsecured note payable to insurance premium finance company
In July 2025, we entered into an agreement with an insurance premium finance company to obtain $16.5 million
of unsecured insurance financing funding. The liability bears a fixed interest rate of 2.99%, payable in three
monthly instalments of $2.5 million and will mature in December 2025.
Finance leases
During the nine months ended September 30, 2025, the Company entered into various finance lease agreements.
Our total finance lease commitments were $32.9 million as at September 30, 2025. The terms of the outstanding
lease agreements mature through August 2029 and bear fixed interest rates ranging from 8.6% to 14.0%.
Surety bonds, letters of credit and bank guarantees
We are required to provide financial assurances and securities to satisfy contractual and other requirements in
the normal course of business. Some of these assurances are provided to comply with state or other government
agencies’ statutes and regulations.
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 insurance. As of September 30, 2025,
we had outstanding surety bonds of $20.0 million.
For the Australian Operations, as at September 30, 2025 , we had bank guarantees outstanding of $35.2 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 had total cash collateral in the form of deposits of $128.9 million as of
September 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.
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Coronado Global Resources Inc.
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 $0.1 million
foreign exchange gain on payment of dividends to certain CDI holders who elected to be paid in Australian dollars.
Capital Requirements
Our main uses of cash have historically been the funding of our operations, working capital, capital expenditures,
and the payment of interest and dividends. We intend to use cash to fund debt service payments of our Notes,
the ABL Facility and our other indebtedness, to fund operating activities, working capital, capital expenditures,
including organic growth projects, business or assets acquisitions and, if declared, payment of dividends.
Historical Cash Flows
The following table summarizes our cash flows for the nine months ended September 30, 2025 and 2024, as
reported in the accompanying consolidated financial statements:
Cash Flow
Nine months ended
September 30,
(in US$ thousands)
2025
2024
Net cash from operating activities
$
54,850
$
11,472
Net cash used in investing activities
(265,642)
(200,887)
Net cash from financing activities
43,717
27,883
Net change in cash and cash equivalents
(167,075)
(161,532)
Effect of exchange rate changes on cash and cash equivalents
(462)
(1,414)
Cash and cash equivalents at beginning of period
339,625
339,295
Cash and cash equivalents at end of period
$
172,088
$
176,349
Operating activities
Net cash provided by operating activities was $54.9 million for the nine months ended September 30, 2025,
compared to $11.5 million for the nine months ended September 30, 2024. The increase in cash provided by
operating activities was primarily driven by a prepayment from Stanwell of $75.0 million and a $44.6 million waiver
and deferral of the Stanwell rebate, both of which are to be settled via future coal deliveries, as well as favorable
working capital movement due to early collections from certain customers and lower payments to suppliers,
partially offset by Adjusted EBITDA loss for the nine months ended September 30, 2025.
Investing activities
Net cash used in investing activities was $265.6 million
for the nine months ended September 30, 2025,
compared to $200.9 million for the nine months ended September 30, 2024, and consisted of cash spent on
capital expenditures of $205.5 million, of which $112.2 million related to the Australian Operations and $94.6
million was related to our U.S. Operations , and the posting of cash collateral of $60.2 million as a security to
satisfy contractual and other requirements.
Financing activities
Net cash provided by financing activities was $43.7 million for the nine months ended September 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 for debt issuance and other financing costs of $7.1 million, dividend
payments of $8.3 million, finance lease obligations principal payments of $2.2 million and repayment of interest
bearing and other financial liabilities of $13.6 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.
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Coronado Global Resources Inc.
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 a 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. The remaining $75.0 million is available to the Company
for until June 18, 2026, 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.
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. Refer to Part I, Item 1. “Financial
Statements”, Note 9. Interest Bearing Liabilities for further information.
In July 2025, the Company entered into an agreement with an insurance premium finance company to obtain
$16.5 million of unsecured insurance financing funding. The liability bears a fixed interest rate of 2.99%, payable
in three monthly instalments of $2.5 million and will mature in December 2025. Refer to Part I, Item 1. “Financial
Statements”, Note 10. Other Financial Liabilities for further information .
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.
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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 for our coal should
interruptions or trade barriers occur in the future. The inability of Met coal suppliers to access international
markets would likely result in an oversupply of Met coal and may result in a decrease in prices 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 September 30, 2025, we had
$4.2 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 $0.4 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. 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.
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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 budget and ensuring that changes in interest rates will not have a material impact
on our financial performance.
As of September 30, 2025, we had $558.8 million of fixed rate borrowings, Notes and finance leases and no
variable-rate borrowings outstanding.
We currently do not hedge against interest rate fluctuations.
Foreign Exchange Risk
A significant portion of our sales are denominated in US$. 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.
We entered into forward exchange contracts to manage the foreign currency exposure of our Australian
Operations by selling US$ generated from export coal sales revenue at Curragh and purchasing A$ required to
settle Curragh’s A$ operating costs. The fair value of the forward foreign currency derivative contracts as of
September 30, 2025 was an asset of $1.7 million.
For our Australian Operations, we translate all monetary assets and liabilities at the period end exchange rate,
all non-monetary assets and liabilities at historical rates and revenue and expenses at the average exchange
rates in effect during the periods. The net effect of these translation adjustments is shown in the accompanying
Consolidated Financial Statements within components of net income.
For the unhedged portion of US$ required to purchase A$ to settle our Australian Operations’ operating costs, a
10% increase in the A$ to US$ exchange rate would have increased reported total costs and expenses by
approximately $28.6 million and $77.0 million for the three and nine months ended September 30, 2025,
respectively.
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 September 30, 2025, we had financial assets of $451.8 million, consisting 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 credit losses of $4.3 million was recorded as of September 30, 2025.
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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, there were no 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.
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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, Part II, Item 1A. “Risk Factors” of our Quarterly Report on Form 10-Q for the
quarterly period ended March 31, 2025, filed with the SEC and ASX on May 8, 2025, and Part II, Item 1A. “Risk
Factors” of our Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2025, filed with the SEC
and ASX on August 11 , 2025. The risk factors 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.
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 are subject to volatility in 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.
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 two or more notches downgrade to the Company’s credit rating by S&P or Moody’s may result
in an Event of Default under the ABL Facility.
On September 29, 2025, we agreed with the Administrative Agent under the ABL Facility to waive compliance
with applicable financial covenants as at September 30, 2025, and reset the conditions related to credit rating
downgrades such that a review event, default or event of default would not occur under the ABL Facility due to a
one notch downgrade to the Company’s credit rating by S&P or Moody’s as at September 29, 2025 (however an
event of default will occur if there is a further two or more notches downgrade to the Company’s credit rating by
S&P or Moody’s as at September 29, 2025). The requirements to comply with financial covenants beyond
September 30, 2025, remained unchanged.
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 December 31, 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,
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
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
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Coronado Global Resources Inc.
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 September 30, 2025 includes an explanatory paragraph that indicates the existence of
substantial doubt about our ability to continue as going concern.
We may not realize the anticipated benefits of the Proposed Transaction, and we may not be able to
successfully complete additional initiatives intended to improve liquidity, which could have a material
adverse effect on our business, financial condition and results of operations.
On October 28, 2025, we announced the Proposed Transaction with Stanwell, which includes a combination of
financial support transactions intended to improve our short and long-term financial position.
The Proposed Transaction remains non-binding and is subject to completion of due diligence, definitive
documents and required external approvals. The Proposed Transaction includes: (1) Stanwell providing a $265.0
million financing facility replacing the exiting ABL Facility; (2) Stanwell waiving remaining rebate payments under
the ACSA; (3) extension of the NCSA from 2037 to 2043; (4) Stanwell making additional prepayments in relation
to its future annual contract tonnage under the ACSA and NCSA, which will bear interest and be settled through
delivery of coal to Stanwell in months when our liquidity exceeds $300.0 million; (5) change of control events
triggering repayment of the rebate waived; and (6) minimum liquidity requirements to declare distributions to
shareholders. There can be no assurance that the Proposed Transaction will be completed on acceptable terms
or at all, or that we will realize the anticipated benefits of the Proposed Transaction.
Our ability to make scheduled debt payments, including under the New ABL Facility with Stanwell, or to refinance
our debt obligations, depends on our ability to generate cash in the future and our financial condition and
operating performance, which are subject to prevailing economic and competitive conditions and to certain
financial, business and other factors beyond our control. There can be no assurance that we will maintain a level
of cash flows from operating activities sufficient to permit us to pay the principal, premium (if any) and interest on
our debt.
In addition to the Proposed Transaction, we continue to pursue a number of initiatives intended to improve liquidity
including, among other things, further operating and capital cost control measures, potential other debt and non-
debt funding measures, and whole or partial asset sales.
While management believes that the Proposed Transaction, if entered into and once completed, would enhance
our liquidity, the vast majority of the potential funding under the arrangement is delivered over time and not
upfront, and does not eliminate uncertainties in relation to our future financial performance, including our ability
to achieve production targets and manage working capital fluctuations that are material at times depending on
circumstances (production and inventory levels), due to events and factors beyond our control, and sustained
weakness in Met coal market and consequential realized Met coal prices .
There can be no assurance that our plan to improve our operating performance and financial position, including
the Proposed Transaction with Stanwell, 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, which could have a material adverse effect on our business,
financial condition and results of operations.
We could be adversely affected if we fail to appropriately provide financial assurances for our obligations.
Australian laws and U.S. federal and state laws require us to provide financial assurances related to requirements
to reclaim lands used for mining, to pay federal and state workers’ compensation, to provide financial assurances
for coal lease obligations and to satisfy other miscellaneous obligations. The primary methods we use to meet
those obligations in the United States are to provide a third-party surety bond, cash collateral or provide a letter
of credit. As of September 30, 2025, we provided $20.0 million of third-party surety bonds and $71.9 million as
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Coronado Global Resources Inc.
cash collateral in connection with our U.S. Operations. There are no cash collateral requirements to support any
of the outstanding bonds.
Our financial assurance obligations may increase due to a number of factors, including the size of our mining
footprint and new government regulations, and we may experience difficulty procuring or renewing our surety
bonds. In addition, our bond issuers may demand higher fees or additional collateral, including letters of credit or
other terms less favorable to us upon those renewals. Because we are required by federal and state law to have
these bonds or other acceptable security in place before mining can commence or continue, any failure to
maintain surety bonds, letters of credit or other guarantees or security arrangements would adversely affect our
ability to mine coal. That failure could result from a variety of factors, including lack of availability of surety bond
or letters of credit, higher expense or unfavorable market terms, the exercise by third-party surety bond issuers
of their right to refuse to renew the surety and the requirement to provide collateral for future third-party surety
bond issuers under the terms of financing arrangements. If we fail to maintain adequate bonding, our mining
permits could be invalidated, which would prevent mining operations from continuing, and future operating results
could be materially and adversely affected.
In Australia, the Financial Provisioning Scheme Act establishes the way that our Australian Operations provide
for and manage associated costs of providing financial assurances related to mine rehabilitation obligations. EAs
undergo an annual risk category allocation assessment process to determine whether the company will be
required to provide a contribution to the Scheme’s Financial Provisioning Fund and/or to provide surety to the
Scheme Manager for that EA. The risk categories include high, moderate, low and very low.
The Curragh mine complex EA number EPML00643713 currently has a risk category of “Moderate” and, as a
result, we are required to pay an annual contribution to the Scheme of 2.75% of the ERC amount. On October
23, 2025, the Scheme Manager under the Financial Provisioning Scheme Act advised the Company that it had
completed an indicative decision related to the Annual Review Allocation for the Curragh mine complex, providing
an indicative allocation of “High”. A final Annual Review Allocation has not yet been made. If the Curragh mine
complex receives a “High” rating, then we will be required to provide a surety, in the form of bank guarantees,
insurance bond or cash collateral, of Curragh’s ERC of $242.7 million to the scheme. Alternatively, if the Curragh
mine complex is allocated a “Moderate-High” rating, we will be required to pay an annual contribution to the
Scheme of 6.5% of the ERC amount.
There can be no assurances that the Company will be able to obtain any applicable bank guarantees, insurance
bond or cash collateral on commercially acceptable terms or at all, or that the Company will be able to pay any
applicable annual contribution to the Scheme, which could materially and adversely impact our financial condition
and results of operations.
For more information on the Financial Provisioning Scheme Act, see Item 1. “Business —Regulatory Matters—
Australia—Environmental Protection Act 1994 (Qld)” 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.
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.
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Coronado Global Resources Inc.
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 September 30, 2025, no director or officer (as defined in Rule 16a-1(f) promulgated
under the Exchange Act) of the Company
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Coronado Global Resources Inc.
ITEM 6. EXHIBITS
The following documents are filed as exhibits hereto:
Exhibit No.
Description of Document
3.1
Amended and Restated Certificate of Incorporation (filed as Exhibit 3.1 to the Company’s
Registration Statement on Form 10 (File No. 000-56044) filed on April 29, 2019 and incorporated
herein by reference)
3.2
Amended and Restated By-Laws (filed as Exhibit 3.2 to the Company’s Registration Statement
on Form 10 (File No. 000-56044) filed on April 29, 2019 and incorporated herein by reference)
10.1
Employment agreement dated July 28, 2025, between Coronado Global Resources Inc. and
Philip Peacock.
15.1
Acknowledgement of Independent Registered Public Accounting Firm
31.1
Certification of the Chief Executive Officer pursuant to SEC Rules 13a-14(a) or 15d-14(a)
adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2
Certification of the Group Chief Financial Officer pursuant to SEC Rules 13a-14(a) or 15d-14(a)
adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1
Certifications pursuant to 18 U.S.C. Section 1350, adopted pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002
95.1
Mine Safety Disclosures
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)
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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: November 10, 2025