Coronado Reports US$981 Million Revenue and Q2 Positive EBITDA

Strong Q2 Operational Turnaround

Coronado Global Resources (ASX:CRN) delivered a significant operational and financial recovery in the June quarter, following a disrupted first quarter marked by a major Curragh CHPP shutdown and longwall relocations at Buchanan. Saleable production surged nearly 40% quarter-on-quarter, while earnings swung from a loss to a positive Adjusted EBITDA of US$6.8 million, an improvement of approximately US$100 million compared to Q1. This rebound reflects restored operating continuity and record CHPP operating hours at both Curragh and Buchanan mines, underpinning higher production run-rates as the half closed.

Buchanan Expansion Enhances Earnings Profile

The Buchanan mine, Coronado’s highest-margin asset, completed a major expansion that increased its capacity to around 4.5 million tonnes per annum. This expansion has established a new operating baseline with record first-half ROM production, improved fixed-cost absorption, and stronger cash generation. Buchanan’s consistent positive earnings through multiple market cycles highlight its resilience and strategic importance to Coronado’s portfolio.

Curragh Reset Program Targets Stability and Margins

At Curragh, the company has embarked on a comprehensive reset program aimed at stabilising operations, improving margins, and boosting cash flow. New mine plans introduced in Q2 focus on reducing execution risks, optimising pit geometries, and establishing inventory buffers to smooth production variability. Early signs are promising, with record CHPP operating hours and improved throughput. Coronado is also restructuring mining services and procurement contracts to align costs with revised production plans, simplifying operations into a two-mine company structure. The reset is expected to deliver incremental benefits through FY2026 and more substantial gains in FY2027.

Financial Results Reflect Recovery and Strategic Actions

For the half year, Coronado reported revenue of US$981 million, up 7% year-on-year, but posted a net loss of US$418 million, including a non-cash impairment of US$177 million related to the divested Logan Complex. Adjusted EBITDA was a loss of US$83 million, weighed down by Q1 disruptions, though Q2’s positive EBITDA signals a trajectory towards profitability. Mining cash costs rose to US$113.5 per tonne produced, partly due to inflationary pressures and a stronger Australian dollar, but are expected to moderate as reset initiatives take effect. Saleable production remained stable at 7.1 million tonnes, with inventory levels intentionally elevated to support operational reliability.

Liquidity and Portfolio Optimisation

Liquidity remains a priority, with available cash and equivalents at US$98 million as of June 30, supported by existing financing facilities and commercial prepayment arrangements. Notably, Coronado secured a US$75 million offtake prepayment from Glencore, repayable over twelve months through coal deliveries at 14% interest. The recent divestment of the Logan Complex reduces exposure to challenging high-volatile coal markets and improves portfolio quality, enabling a sharper focus on core metallurgical coal assets.

Guidance and Strategic Focus for 2026

Coronado reaffirmed 2026 guidance with saleable production targeted at 16 to 17 million tonnes and mining cash costs expected between US$88 and US$96 per tonne. Capital expenditure is forecast to be materially lower at US$150 to US$175 million, reflecting the completion of major growth projects and a disciplined approach to cash generation. The company’s strategic emphasis has shifted from volume growth to margin expansion, productivity improvements, and balance sheet strengthening, positioning it to capitalise on anticipated metallurgical coal market recovery.