Coronado’s 2025: $432M Loss, 22% Revenue Drop, and $265M New Credit Facility

Market Pressures and Financial Results

Coronado Global Resources Inc. has revealed a challenging financial year for 2025, posting a net loss of $432.1 million, a significant deterioration compared to the $108.9 million loss in 2024. This steep decline was primarily driven by a 22% drop in revenue to $1.95 billion, reflecting sustained weakness in global metallurgical coal prices, particularly in China where subdued steel production and construction activity dampened demand.

The benchmark price for premium low volatile hard coking coal fell 21.7% year-on-year, exacerbated by increased supply from Australia, Mongolia, and Russia. These market dynamics pressured Coronado’s average realised metallurgical coal price down by $36 per metric tonne to $149.3, contributing heavily to the revenue shortfall.

Operational Performance and Cost Management

Despite the adverse market backdrop, Coronado delivered operational improvements with saleable production rising to 16.0 million tonnes, up 0.7 million tonnes from 2024. This was supported by the ramp-up of the Mammoth Underground mine, completion of the Buchanan expansion, and productivity gains at the Curragh mine in Australia. However, sales volume slightly declined by 0.2 million tonnes due to logistical constraints and shipment timing issues.

Cost discipline was a highlight, with mining costs reduced by $165.8 million, aided by contractor fleet reductions and idling of higher-cost surface operations. Mining costs per tonne improved to $97.5, down nearly $10 from the previous year, helping to partially offset the revenue pressures and leading to margin recovery in the second half of 2025.

Liquidity and Financial Stability

Coronado strengthened its liquidity position through a refinancing deal with Stanwell Corporation Limited, securing a new five-year asset-based revolving credit facility (ABL Facility) with more flexible covenants and a $265 million limit. This replaced the previous credit facility and included amendments to coal supply agreements that provide near-term cash flow support and downside protection.

As of year-end, the company held $172.8 million in cash and cash equivalents, with net debt standing at $524.1 million. Management affirmed that current liquidity and forecasted cash flows are sufficient to fund operations and meet obligations for at least the next 12 months, alleviating prior concerns about going concern status.

Safety and Operational Challenges

Safety incidents impacted operations late in the year, with fatal accidents at the Logan mining complex and Mammoth Underground mine leading to temporary suspensions. Both sites have since resumed production, with full output expected to return in early 2026. The company reported an increase in injury frequency rates in Australia, underscoring ongoing safety challenges.

Looking Ahead

Coronado’s outlook remains cautiously optimistic. Operational improvements and cost efficiencies provide a foundation for recovery, but the company remains exposed to volatile coal markets and logistical risks. The strategic partnership with Stanwell offers financial stability, but contingent liabilities related to rebate waivers and regulatory compliance continue to pose uncertainties.