Coronado Posts Strong Q2 Recovery With 39% Sales Boost and Cost Cuts
Coronado Global Resources surged back to profitability in Q2 2026, driven by a 39.3% jump in saleable production and a 27.7% fall in mining cash costs. Buchanan mine hit record half-year output, while Curragh staged a major operational turnaround.
- Group saleable production up 39.3% to 4.1Mt in Q2
- Mining cash costs down 27.7% to US$97.9/t
- Buchanan mine delivers record half-year ROM production
- Curragh mine recovers with 75.6% rise in saleable output
- Logan Complex sale expected to close soon, improving cash flow
Operational Turnaround Drives Earnings Rebound
Coronado Global Resources (ASX:CRN) returned to positive earnings in the June quarter of 2026, reversing a slump that began in mid-2024. The company reported an 18.4% increase in Run of Mine (ROM) production to 6.4 million tonnes and an even more impressive 39.3% surge in saleable production to 4.1 million tonnes compared to the March quarter. This operational upswing translated into an earnings improvement of approximately US$100 million, marking a clear shift in momentum heading into the second half of the year.
The turnaround was underpinned by strong performances at Coronado’s key assets. The Buchanan mine in the US achieved a record half-year ROM production of 4.7 million tonnes, a 26.2% increase year-on-year, while generating around US$60 million in earnings year-to-date. Meanwhile, the Curragh complex in Australia staged a significant recovery with ROM production rising 74% quarter-on-quarter to 3.9 million tonnes, supported by record Coal Handling Preparation Plant (CHPP) operating hours and improved throughput.
Cost Efficiencies and Reset Program Bolster Margins
Mining cash costs across the group fell sharply by 27.7% from the previous quarter to US$97.9 per tonne, driven by higher saleable volumes and better plant utilisation. At Curragh, cash costs plummeted 33.5% to US$98.9/t, reflecting improved fixed cost absorption and operational leverage. Buchanan maintained strong cost discipline with cash costs at US$91.2/t, highlighting the scalability of its expanded operation.
These cost improvements come as part of a structural, operational, and commercial reset program nearing completion. The reset focuses on productivity enhancements, contract restructuring, and mine plan optimisation, particularly at Curragh, aiming to restore profitability and strengthen cash flow without requiring major capital expenditure. Coronado is working with consultants AlixPartners and Odin Partnership to implement these initiatives, which are already showing early benefits in operating performance and cash generation.
Logan Complex Sale to Remove Drag on Earnings
The company is also poised to close the sale of its Logan Mining Complex, an asset that has faced structural challenges in the High-Volatile coal market. The divestment is expected to eliminate ongoing losses (approximately US$30 million in the first half) and improve the group’s earnings and cash flow profile. This move aligns with Coronado’s strategy to concentrate on its core metallurgical coal assets with stronger market fundamentals.
Cash at the end of the quarter stood at around US$98 million, with additional commercial arrangements underway to enhance liquidity and product flexibility. Capital expenditure remained tightly controlled at US$25 million, reflecting the completion of recent growth projects and a focus on preserving cash and improving the balance sheet.
Metallurgical Coal Market Remains Supportive
Market conditions for metallurgical coal remained broadly stable during the quarter, with benchmark Premium Low-Volatile Hard Coking Coal (PLV HCC) prices averaging around US$240 per tonne FOB Australia. Demand was supported by steady steel production outside China, particularly in India and Southeast Asia, alongside supply discipline from major exporters and weather-related disruptions in Queensland and Mongolia.
Coronado’s realised metallurgical coal pricing rose 3.1% quarter-on-quarter to US$170.5 per tonne, aided by a higher proportion of metallurgical coal in sales (up to 80.4%) and increased export volumes (77.4%). However, the company noted some seasonal softening in prices post-quarter, reflecting cautious buying in China and seasonal demand trends in Asia.
Safety and Leadership Initiatives
On the safety front, Coronado reported a slight improvement with a Total Reportable Incident Rate (TRIR) of 1.34, down 3% from the previous quarter, and a 30% reduction in severity rate. The company is rolling out a leadership training program aimed at enhancing frontline engagement, risk management, and safety culture across operations. This initiative complements ongoing safety measures designed to eliminate serious injuries and fatalities.
Bottom Line?
Coronado’s Q2 operational rebound and cost discipline set the stage for stronger earnings and cash flow, but sustaining momentum will depend on execution of the reset program and market conditions.
Questions in the middle?
- How will the completion of the Logan Complex sale impact Coronado's future cash flow and earnings?
- Can the operational reset at Curragh maintain the improved production and cost trajectory through H2 2026?
- What risks do seasonal demand fluctuations and geopolitical tensions pose to metallurgical coal pricing?
