Coronado Global Resources reported its highest saleable coal production since early 2021, driven by ramped-up operations and expansion projects, while securing a $265 million loan facility to bolster liquidity amid ongoing market challenges.
- 21% increase in saleable coal production, highest since Q1 2021
- 9% rise in sales volumes with improved operational efficiency
- Unit costs consistently below guidance, hitting $80/t in September
- Proposed $265 million asset-based loan facility with Stanwell to enhance liquidity
- Expansion projects Mammoth and Buchanan driving production growth and cost reductions
Strong Operational Momentum
Coronado Global Resources delivered a standout third quarter in 2025, achieving its highest saleable coal production since the first quarter of 2021. This surge was propelled by the continued ramp-up of the Mammoth Underground Mine and the Buchanan Expansion Project, alongside solid productivity gains at its base operations. Saleable production jumped 21% quarter-on-quarter, while sales volumes increased by 9%, underscoring the company’s operational resilience despite a subdued metallurgical coal market.
Unit costs remained impressively below guidance for the second consecutive quarter, with September’s costs dropping to $80 per tonne, well under the lower end of the forecast range. These cost efficiencies are critical as the company navigates persistently low coal prices globally.
Liquidity Strengthened Amid Market Headwinds
In response to ongoing market pressures, Coronado has proactively enhanced its liquidity position through a proposed $265 million asset-based loan facility with Stanwell. This transaction, currently non-binding and subject to due diligence and approvals, is designed to replace the existing facility and provide flexible covenant terms. It also removes rebate obligations from 2026 and offers additional financial support if liquidity falls below $250 million.
The arrangement is expected to deliver approximately $80 million in liquidity improvements throughout 2025, with $25 million realised in the September quarter alone. This financial backing is crucial for sustaining operations and funding expansion projects during a prolonged period of low metallurgical coal prices.
Expansion Projects Driving Future Growth
The Mammoth and Buchanan projects are on track to reach planned run rates by year-end, collectively forecasted to add around 3 million tonnes of annualised saleable production. Mammoth has doubled its output this quarter, operating at 65% of its nameplate capacity, while Buchanan’s expansion has increased skip counts by 25%, enhancing operational flexibility and throughput.
These expansions not only boost production volumes but are also expected to lower unit costs and significantly improve earnings and cash flow generation. Coronado’s strategic focus on cost control, operational efficiency, and liquidity preservation positions it well for a market recovery.
Market Outlook and Strategic Priorities
While metallurgical coal prices remain subdued, Coronado anticipates support from factors such as India’s restocking cycle, domestic coke producer protections, and ongoing supply rationalisation in key producing regions. The company maintains a positive medium-term outlook, expecting gradual price recovery driven by global steel production growth outside China and trade dynamics.
Coronado’s leadership remains committed to navigating current challenges with a clear strategy – operate safely and efficiently, protect cash, secure liquidity, and preserve optionality. The company is also exploring value-enhancing opportunities, including potential minority asset sales, to strengthen its position ahead of an eventual market upswing.
Bottom Line?
Coronado’s record production and strengthened liquidity set the stage for resilience and growth, but market volatility remains a watchpoint.
Questions in the middle?
- Will the Stanwell loan facility close on schedule and under what final terms?
- How quickly can Mammoth and Buchanan reach full nameplate production?
- What impact will ongoing low metallurgical coal prices have on Coronado’s cash flow in 2026?