Coronado Global Resources reported a solid FY25 with increased saleable production and reduced mining costs, underpinned by key expansions and refinancing deals that set the stage for stronger cash flow in 2026.
- Saleable production up 4% to 16 million tonnes in FY25
- Average mining costs per tonne sold down 9% to $97.5
- Buchanan and Mammoth expansions delivering expected run rates
- Liquidity boosted by $265 million refinancing and Stanwell agreement
- Two fatal safety incidents prompt ongoing investigations
Strong Operational Momentum in FY25
Coronado Global Resources closed out 2025 with a performance that met market expectations, highlighted by a 4% increase in saleable coal production to 16 million tonnes and a notable 9% reduction in average mining costs per tonne sold to $97.5. The company’s operational improvements were driven by the successful completion and ramp-up of its Buchanan expansion and Mammoth Underground projects, which together are expected to add approximately 3 million tonnes of saleable production annually in 2026.
The Curragh Complex in Australia also showed robust growth, with half-year production up 36.6% compared to the first half of the year, supported by enhanced dragline operations and ongoing productivity initiatives. These gains contributed to the highest quarterly sales volumes since 2021, underscoring the company’s ability to sustain production increases while compressing costs.
Financial Strength Bolstered by Refinancing and Strategic Partnerships
Coronado’s financial position was materially strengthened in 2025 through a $265 million refinancing of its asset-based lending facility with Stanwell, a Queensland government-owned entity. This refinancing, combined with a re-set of coal supply arrangements, has enhanced liquidity by over $400 million and is expected to provide an additional $200–250 million in cash flow support during 2026. These measures not only improve near-term financial flexibility but also align with the company’s strategy to deleverage its balance sheet as market conditions improve.
The company ended the year with a cash balance of $173 million and no significant debt maturities until 2029, providing operational and financial stability. Coronado plans to prioritise debt reduction and shareholder returns as cash flows strengthen, leveraging its lower cost base and increased production capacity.
Safety Challenges and Ongoing Investigations
Despite operational successes, Coronado faced two tragic fatal incidents in late 2025; one at its Logan Complex in West Virginia and another at the Curragh Complex in Australia. Both incidents are under investigation, with operations temporarily suspended at the affected sites. The company emphasised that safety remains its top priority and is implementing targeted interventions and cultural initiatives to reinforce safety standards across its operations.
Market Outlook and Strategic Focus for 2026
Metallurgical coal prices showed encouraging signs, with benchmark prices reaching their highest levels since mid-2024, supported by supply constraints and growing demand from markets such as India. Coronado’s diversified footprint across Australia and the U.S. positions it well to navigate shifting trade flows and regional market dynamics.
Looking ahead, the company aims to optimise throughput at the Curragh Complex’s coal handling preparation plant to convert increased mining volumes into higher saleable production and cash generation. With major capital investments largely complete, Coronado is focused on operational efficiency, portfolio optimisation, and exploring value-enhancing options including potential minority asset sales.
Overall, Coronado enters 2026 with a structurally improved cost base, enhanced liquidity, and a clear strategic roadmap to capitalise on improving market conditions while maintaining a strong commitment to safety and sustainability.
Bottom Line?
Coronado’s FY25 progress sets a promising stage for 2026, but safety and market volatility remain key watchpoints.
Questions in the middle?
- How will the outcomes of the fatal incident investigations impact operational practices and costs?
- What is the timeline and expected impact of the planned CHPP upgrades at Curragh on production and margins?
- How will evolving global metallurgical coal trade flows affect Coronado’s U.S. operations and product mix?