Coronado Targets 20 Million Tonnes Annual Production by 2027

Confidential Discussions and SEC Filing

Coronado Global Resources Inc. (ASX, CRN) has recently filed a Form 8-K with the U.S. Securities and Exchange Commission, disclosing confidential information previously shared with an Ad Hoc Group of holders of its 9.25% Senior Secured Notes due 2029. While the company is not currently continuing negotiations with this group, the filing satisfies its public disclosure obligations and sheds light on Coronado’s strategic positioning amid ongoing liquidity management efforts.

Operational Footprint and Growth Projects

Headquartered in Brisbane, Coronado operates three high-quality metallurgical coal mines across Australia and the United States, including the Curragh Complex in Queensland, and the Buchanan and Logan mines in the U.S. These assets boast long mine lives ranging from 22 to 32 years, underpinning a stable production base. Notably, the company has recently completed key growth projects, the Mammoth Underground mine commenced production in late 2024 and is ramping up to deliver approximately 2 million tonnes per annum, while the Buchanan expansion is expected to add around 1 million tonnes annually. These projects are on track to enhance saleable production volumes and improve cost profiles.

Liquidity and Stanwell Agreement

In June 2025, Coronado secured a $75 million facility from Stanwell, coupled with a waiver and deferral of rebates, to support liquidity through a challenging pricing environment. This arrangement includes a coal supply agreement that will reset in 2027, offering potential for improved cash flow as rebates expire and coal volumes are redirected to higher pricing mechanisms. The agreement also grants Stanwell rights to nominate additional coal volumes annually from 2027 to 2031, blending fixed and market-based pricing. These measures are critical as Coronado navigates depressed metallurgical coal prices and seeks to sustain its operational momentum.

Financial and Production Outlook

Coronado’s medium-term guidance anticipates production between 17 and 20 million tonnes annually, supported by ramping expansions and operational improvements, particularly at the Curragh mine. Capital expenditure is expected to stabilize between $140 million and $170 million, focusing on sustaining capital and mine development. The company emphasizes ongoing cost reduction initiatives, including workforce optimization and contractor fleet reductions, to enhance competitiveness. Adjusted EBITDA estimates reflect a rebound in 2027, aligned with the Stanwell agreement reset and anticipated coal price recovery.

Market Position and Strategic Considerations

Coronado’s diversified customer base spans five continents, with strong ties to steelmakers in Asia, Europe, and the Americas. Its portfolio includes premium low-volatile hard coking coal and other metallurgical coal products, well-positioned to benefit from the steel sector’s role in the global energy transition. The company’s strategic focus on Tier 1 jurisdictions and long-life assets underpins its resilience. However, the forward-looking statements caution investors about inherent uncertainties, including commodity price volatility and capital availability.