Coronado’s June Quarter Sees 20% Production Rise, 18% Cost Cut, $284M Liquidity

Strong Operational Momentum

Coronado Global Resources has reported a standout quarter for June 2025, achieving its highest monthly run-of-mine (ROM) production since July 2019. The company’s ROM output surged 20% quarter-on-quarter to 7.0 million tonnes, driven by operational improvements and the early contributions from key expansion projects. This production leap was accompanied by an 18% reduction in average mining costs per tonne sold, now at $92, placing costs at the lower end of full-year guidance.

The June quarter’s performance reflects a concerted effort by Coronado’s leadership, including new CFO Barrie Van der Merwe and COO Craig Manz, to accelerate efficiency and cost discipline. Their focused program is already yielding tangible results, with further gains anticipated as the year progresses.

Expansion Projects Driving Future Growth

Two major growth initiatives, the Mammoth Underground Mine and the Buchanan Expansion Project, are on track to reach full production rates by the December quarter of 2025. Together, these projects are expected to add approximately 3 million tonnes of annualised saleable coal, significantly boosting output and lowering unit costs. The Buchanan expansion notably delivered its first coal on time and within budget during the quarter, marking a critical milestone.

With Mammoth now operating three continuous miner panels and Buchanan commissioning its second set of skips, Coronado is poised for a step-change in production and cash flow in the second half of 2025. These expansions underpin the company’s confidence in delivering improved earnings and free cash flow despite ongoing market headwinds.

Liquidity and Financial Resilience

Coronado has strengthened its financial position amid challenging metallurgical coal market conditions marked by persistently low prices. The company secured a new $150 million Asset Based Lending (ABL) Facility with Oaktree Capital Management and obtained an additional $150 million liquidity support from Stanwell through future coal supply agreements. These measures have increased immediately available liquidity to $284 million, with further undrawn capacity available.

Cost and capital expenditure reductions, including rephasing project timelines and optimizing working capital, have contributed to liquidity improvements of approximately $80 million expected over 2025. Coronado’s strategic cash preservation and operational efficiency initiatives have positioned it to weather the current pricing environment while preparing for growth when market conditions improve.

Market Conditions and Outlook

Despite weak global demand and pricing pressures from tariff impacts and intensified competition, Coronado remains optimistic about a potential price recovery in the second half of 2025. The company cites supply rationalisation, tariff-driven trade flow changes, and robust steel production growth in India as key factors supporting this outlook.

Coronado’s high-quality, long-life coal reserves and strategic customer relationships provide a solid foundation for long-term value creation. The anticipated reset of Stanwell obligations in early 2027 could further enhance cash flow by approximately $150 million annually at current thermal coal prices.

Navigating Challenges While Building for the Future

Coronado’s June quarter results underscore a business in transition, balancing near-term operational and financial discipline with strategic investments that promise to unlock significant growth. The company’s ability to deliver record production and reduce costs amid a tough market signals resilience and adaptability. As expansion projects ramp up, investors will be watching closely to see how these developments translate into improved earnings and cash flow in the coming quarters.