UNITED STATES
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Steel starts
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Quarterly Report on Form 10-Q for the quarterly period
ended September 30, 2025.
TABLE OF CONTENTS
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61
Coronado Global Resources Inc.
PART I – FINANCIAL INFORMATION
ITEM 1.
FINANCIAL STATEMENTS
Condensed Consolidated Balance Sheets
(In US$ thousands, except share data)
Assets
Note
(Unaudited)
2025
December 31,
2024
Current assets:
Cash and cash equivalents
$
$
Trade receivables, net
Inventories
4
Other current assets
5
Total
current assets
Non-current assets:
Property, plant and equipment,
net
6
Right of use asset – operating leases, net
8
Goodwill
Intangible assets, net
Restricted deposits
17
Other non-current assets
Total
assets
$
$
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable
$
$
Accrued expenses and other current liabilities
7
Asset retirement obligations
Contract obligations
11
Lease liabilities
8
Interest bearing liabilities
9
Income tax payable
Other current financial liabilities
10
Total
current liabilities
Non-current liabilities:
Asset retirement obligations
Contract obligations
11
Interest bearing liabilities
9
Other financial liabilities
10
Lease liabilities
8
Deferred income tax liabilities
Other non-current liabilities
Total
liabilities
$
$
Common stock $
and December 31, 2024
Series A Preferred stock $
authorized,
and December 31, 2024
Additional paid-in capital
Accumulated other comprehensive losses
15
(
127,184
)
(
137,560
)
(Accumulated losses) retained earnings
(
176,045
)
Total
stockholders’ equity
$
$
Total
liabilities and stockholders’ equity
$
$
See accompanying notes to unaudited condensed
consolidated financial statements.
Coronado Global Resources Inc.
Unaudited Condensed Consolidated Statements of
Operations and Comprehensive Income
(In US$ thousands, except share data)
Three months ended
Nine months ended
Note
2025
2024
2025
2024
Revenues:
Coal revenues
$
$
$
$
Other revenues
Total
revenues
3
Costs and expenses:
Cost of coal revenues (exclusive of items
shown separately below)
Depreciation, depletion and amortization
Freight expenses
Stanwell rebate
Other royalties
Selling, general, and administrative expenses
Total
costs and expenses
Other (expense) income:
Interest expense, net
(
29,443
)
(
15,808
)
(
68,305
)
(
42,253
)
Loss on debt extinguishment
(
1,050
)
(Increase) decrease in provision for credit
losses
(
2,836
)
(
43
)
(
3,649
)
Other, net
(
19,749
)
(
8,643
)
Total
other expense, net
(
31,819
)
(
35,600
)
(
72,785
)
(
50,739
)
Loss before tax
(
103,763
)
(
102,768
)
(
305,532
)
(
83,280
)
Income tax (expense) benefit
(
5,707
)
Net loss attributable to Coronado Global
Resources Inc.
$
(
109,470
)
$
(
70,997
)
$
(
281,871
)
$
(
54,798
)
Other comprehensive loss, net of income
taxes:
Foreign currency translation adjustments
(
1,146
)
Net gain on cash flow hedges
Total
comprehensive income
Total
comprehensive loss attributable to
Coronado Global Resources Inc.
$
(
108,928
)
$
(
51,681
)
$
(
271,495
)
$
(
52,548
)
Loss per share of common stock
Basic
13
(
0.65
)
(
0.42
)
(
1.68
)
(
0.33
)
Diluted
13
(
0.65
)
(
0.42
)
(
1.68
)
(
0.33
)
See accompanying notes to unaudited condensed
consolidated financial statements.
Coronado Global Resources Inc.
Unaudited Condensed Consolidated Statements of
Stockholders’ Equity
(In US$ thousands, except share data)
Common stock
Preferred stock
Additional
Accumulated other
Retained earnings
Total
paid in
comprehensive
(Accumulated
stockholders
Shares
Amount
Series A
Amount
capital
losses
losses)
equity
Balance December 31, 2024
$
$
$
$
(
137,560
)
$
$
Net loss
—
—
(
96,198
)
(
96,198
)
Other comprehensive income
—
—
Total
comprehensive income (loss)
—
—
(
96,198
)
(
93,372
)
Share-based compensation for equity
classified awards
—
—
(
1,188
)
(
1,188
)
Dividends
—
—
(
8,382
)
(
8,382
)
Balance March 31, 2025
$
$
$
$
(
134,734
)
$
$
Net loss
—
—
(
76,203
)
(
76,203
)
Other comprehensive income
—
—
Total
comprehensive income (loss)
—
—
(
76,203
)
(
69,195
)
Share-based compensation for equity
classified awards
—
—
Balance June 30, 2025
$
$
$
$
(
127,726
)
$
(
66,575
)
$
Net loss
—
—
(
109,470
)
(
109,470
)
Other comprehensive income
—
—
Total
comprehensive income (loss)
—
—
(
109,470
)
(
108,928
)
Share-based compensation for equity
classified awards
—
—
(
274
)
(
274
)
Balance September 30, 2025
$
$
$
$
(
127,184
)
$
(
176,045
)
$
Coronado Global Resources Inc.
Common stock
Preferred stock
Additional
Accumulated other
Total
paid in
comprehensive
Retained
stockholders
Shares
Amount
Series A
Amount
capital
losses
earnings
equity
Balance December 31, 2023
$
$
$
$
(
89,927
)
$
$
Net loss
—
—
(
29,001
)
(
29,001
)
Other comprehensive loss
—
—
(
23,288
)
(
23,288
)
Total
comprehensive loss
—
—
(
23,288
)
(
29,001
)
(
52,289
)
Share-based compensation for equity
classified awards
—
—
(
1,159
)
(
1,159
)
Dividends
—
—
(
8,382
)
(
8,382
)
Balance March 31, 2024
$
$
$
$
(
113,215
)
$
$
Net income
—
—
Other comprehensive income
—
—
Total
comprehensive income
—
—
Share-based compensation for equity
classified awards
—
—
Balance June 30, 2024
$
$
$
$
(
106,993
)
$
$
Net loss
—
—
(
70,997
)
(
70,997
)
Other comprehensive income
—
—
Total
comprehensive income (loss)
—
—
(
70,997
)
(
51,681
)
Share-based compensation for equity
classified awards
—
—
Dividends
—
—
(
8,382
)
(
8,382
)
Balance September 30, 2024
$
$
$
$
(
87,677
)
$
$
See accompanying notes to unaudited condensed
consolidated financial statements.
Coronado Global Resources Inc.
Unaudited Condensed Consolidated Statements of
Cash Flows
(In US$ thousands)
Nine months ended
September 30,
2025
2024
Cash flows from operating activities:
Net loss
$
(
281,871
)
$
(
54,798
)
Adjustments to reconcile net income to cash and restricted cash
provided by
operating activities:
Depreciation, depletion and amortization
Impairment of non-core assets
Amortization of right of use asset - operating leases
Amortization of deferred financing costs
Loss on debt extinguishment
Non-cash interest expense
Amortization of contract obligations
(
18,001
)
(
22,163
)
(Gain) loss on disposal of property,
plant and equipment
(
31
)
Loss on disposal of idled asset
Gain on operating lease derecognition
(
820
)
Equity-based compensation expense
(
459
)
(
75
)
Deferred income taxes
(
17,956
)
(
27,335
)
Reclamation of asset retirement obligations
(
4,126
)
(
6,313
)
Increase (decrease) in provision for discounting and credit losses
(
157
)
Other non-cash adjustments
(
1,858
)
Changes in operating assets and liabilities:
Accounts receivable
(
13,621
)
Inventories
(
50,954
)
Other assets
(
5,947
)
Contract obligations
Accounts payable
(
13,138
)
Accrued expenses and other current liabilities
(
4,933
)
(
85,576
)
Operating lease liabilities
(
17,606
)
(
15,812
)
Income tax payable
(
1,260
)
Change in other liabilities
Net cash from operating activities
Cash flows from investing activities:
Capital expenditures
(
206,873
)
(
201,147
)
Proceeds from disposal of idle asset
Purchase of restricted and other deposits
(
89,147
)
(
2,102
)
Redemption of restricted and other deposits
Net cash used in investing activities
(
265,642
)
(
200,887
)
Cash flows from financing activities:
Proceeds from interest bearing liabilities and other financial
liabilities
Debt issuance costs and other financing costs
(
7,148
)
(
2,261
)
Principal payments on interest bearing liabilities and other financial
liabilities
(
13,646
)
(
2,969
)
Principal payments on finance lease obligations
(
2,156
)
(
68
)
Dividends paid
(
8,333
)
(
16,679
)
Net cash from financing activities
Net decrease in cash and cash equivalents
(
167,075
)
(
161,532
)
Effect of exchange rate changes on cash and cash
equivalents
(
462
)
(
1,414
)
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period
$
$
Supplemental disclosure of cash flow information:
Cash payments for interest
$
$
Cash refund for taxes
$
(
1,620
)
$
(
21,285
)
Restricted cash
$
$
See accompanying notes to unaudited condensed
consolidated financial statements.
Coronado Global Resources Inc.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS
1.
Description of Business, Basis of Presentation
(a)
Description of the Business
Coronado
Global
Resources
Inc.
is
a
global
producer,
marketer,
and
exporter
of
a
full
range
of
metallurgical
coals,
an
essential
element
in
the
production
of
steel.
The
Company
has
a
portfolio
of
operating
mines
and
development projects in
Queensland, Australia, and
in the states of
Pennsylvania, Virginia and
West Virginia
in
the United States, or U.S.
(b)
Basis of Presentation
The interim unaudited condensed consolidated financial statements
have been prepared in accordance with the
requirements of U.S. generally accepted
accounting principles, or U.S. GAAP,
and with the instructions to Form
10-Q
and
Article
10
of Regulation
S-X
related
to
interim
financial
reporting
issued
by
the
U.S.
Securities
and
Exchange Commission, or the SEC.
Accordingly, they do not include all of
the information and footnotes required
by U.S. GAAP for complete financial statements and should be read
in conjunction with the audited consolidated
financial
statements
and
notes
thereto
included
in
the
Company’s
Annual
Report
on Form
10-K filed
with
the
SEC and the Australian Securities Exchange, or the ASX, on February
19,
2025.
The
interim
unaudited
condensed
consolidated
financial
statements
are
presented
in
U.S.
dollars,
unless
otherwise
stated.
They
include
the
accounts
of
Coronado
Global
Resources
Inc.
and
its
wholly-owned
subsidiaries.
References
to
“US$”
or
“USD”
are
references
to
U.S.
dollars.
References
to
“A$”
or
“AUD”
are
references
to
Australian
dollars,
the
lawful
currency
of
the
Commonwealth
of
Australia.
The
“Company”
and
“Coronado”
are
used
interchangeably
to
refer
to
Coronado
Global
Resources
Inc.
and
its
subsidiaries,
collectively, or to Coronado Global Resources Inc., as
appropriate to the context.
All intercompany balances and
transactions have been eliminated upon consolidation.
In
the
opinion
of
management,
these
interim
financial
statements
reflect
all
normal,
recurring
adjustments
necessary
for
the
fair
presentation
of
the
Company’s
financial
position,
results
of
operations,
comprehensive
income, cash flows and changes in
equity
for the periods presented. Balance sheet information
presented herein
as of December 31,
2024 has been derived from
the Company’s audited consolidated balance sheet at
that date.
The
Company’s
results
of
operations
for
the
three
and
nine
months
ended
September
30,
2025
are
not
necessarily indicative of the results that may be expected for
the year ending December 31, 2025.
(c)
Going Concern
The
Company’s
earnings
and
cash
flows
from
operating
activities
have
been
significantly
impacted
by
the
continued
subdued
performance
of
Met
coal
markets,
which
has
led
to
low
realized
prices
for
the
coal
the
Company sells. For the three and
nine months ended September 30, 2025,
the Company incurred net losses
of
$
As
of
September
30,
2025,
the
Company’s
aggregate
sources
of
liquidity
was $
comprised of cash and cash equivalents (excluding restricted cash) of $
to be
drawn down under
its $
On
June
30,
2025,
S&P
downgraded
the
Company’s
credit
rating
from
‘B-‘
to
‘CCC+’
and,
on
July
7,
2025,
Moody’s downgraded the Company’s credit rating from ‘Caa1’ to ‘Caa2’, both of which resulted in a review event
under the ABL Facility. On
July 9, 2025, the lender under the ABL Facility confirmed there would
be no changes
to the terms or the availability of the ABL Facility,
thereby concluding each of the review events.
On September 29, 2025,
the Company entered into
an agreement with the
Administrative Agent under
the ABL
Facility (as described in Note 9. Interest Bearing Liabilities) to waive the Company’s compliance with its financial
covenants
under
the
ABL
Facility
as
at
September
30,
2025,
and
reset
the
conditions
related
to
credit
rating
downgrades such that a review event, default or event of default would not occur under the ABL Facility due to a
one notch downgrade to the Company’s credit rating by S&P or Moody’s as at September 29, 2025 (however an
event of default will occur
if there is a further two
or more notches downgrade
to the Company’s credit
rating by
S&P or Moody’s as
at September 29, 2025).
The Company’s obligations to
comply with those financial
covenants
as at December 31, 2025, and beyond remained unchanged.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS
(Continued)
Coronado Global Resources Inc.
As the outlook for Met coal markets remains uncertain, continued low or a further deterioration in
Met coal prices
and the Company’s inability to achieve production forecasts, due to
factors beyond the Company’s control, could
lead to an
inability to fund
short-term working capital movements,
further operating losses and
negative operating
cash
flows
for
the
remainder
of
2025
and
into
2026,
which,
combined
with
other
factors,
could
impact
the
Company’s ability to comply with financial covenants under the ABL Facility on and beyond December 31, 2025.
Non-compliance with
such financial
covenants,
or a
further two
or more
notches downgrade
to the
Company’s
credit
rating
by
S&P
or
Moody’s
as
at
September
29,
2025,
may
result
in
an
event
of
default
under
the
ABL
Facility and, unless the event of default
is cured or a waiver is obtained, could
also trigger a cross-default under
the indenture, dated as of October
2, 2024, governing the
% Senior Secured Notes due
in 2029 issued by
Coronado Finance Pty
Ltd, an Australian
proprietary company
and a wholly-owned
subsidiary of the
Company.
Refer to Note 9. Interest Bearing Liabilities for further information.
On
October
23,
2025,
the
manager
of
the
Queensland
Financial
Provisioning
Scheme,
or
Scheme
Manager,
responsible
for
managing
the
Mineral
and
Energy
Resources
(Financial
Provisioning)
Act
2018
Qld,
or
the
Financial Provisioning Scheme Act, advised
the Company that it had made
an indicative risk allocation decision
on Curragh’s risk category as part of the Annual Review Allocation for the Curragh mine complex Environmental
Authority,
or EA,
number EPML00643713,
providing an
indicative allocation
of “High”.
This is
a change
to the
previous Annual Review
Allocation for the
EA of “Moderate”.
A final Annual Review
Allocation has not yet
been
made.
The “High” rating would
require the Company to
provide a surety, in the form
of bank guarantees, insurance bond
or cash collateral, of
Curragh’s Estimated Rehabilitation Cost, or ERC,
of $
under the Financial Provisioning Scheme Act, if:
●
category, and
●
“Moderate” risk category; and
●
12 months after the
decision is made, such
EA will be taken
to be allocated to
the “Moderate-High” risk
category for
determining
the contribution
payable
for the
next twelve-month
period’s
obligation.
A risk
allocation of “Moderate-High” requires an annual
contribution to the scheme of
% of the ERC
amount.
The Company
is currently
making relevant
submissions
to the
Scheme
Manager
in accordance
with
its rights
under the Financial Provisioning Scheme Act. However,
as of the filing of this Quarterly Report on Form 10-Q, a
final Annual Review Allocation has not been issued by
the Scheme Manager.
Under
the
above
alternatives,
the
Company
will
be
required
to
either
pay
a
higher
annual
contribution
to
the
Scheme Manager,
or the Company
will be required
to obtain
and pay for
a facility to
provide the required
bank
guarantee
or
insurance
bond.
A
suitable
bank
guarantee
or
insurance
bond
facility
may
not
be
available
on
commercially acceptable terms or at all.
On
October
28,
2025,
the
Company
announced
it
proposes
to
enter
into
a
transaction,
or
the
Proposed
Transaction,
with
Stanwell
Corporation
Ltd,
or
Stanwell,
for
a
combination
of
financial
support
transactions
intended to improve the Company’s short and
long-term financial position.
The
Proposed
Transaction,
which
remains
non-binding
and
subject
to
completion
of
due
diligence,
definitive
documents and required external approvals, includes the following:
●
Stanwell and increasing availability from $
five-year
a lower
interest rate.
The borrowing
base limits
are expected
to be
amended to
allow higher
levels of
borrowing against working capital assets of the Company and
more flexible covenant conditions.
●
its remaining contractual term and only become repayable for certain specified change of control events
or default that would lead to termination of existing Stanwell
coal supply agreements.
●
2043, providing
Stanwell the
ability to
make broader
annual nominations
ranging from
1.2 MMt
to 2.24
MMt.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS
(Continued)
Coronado Global Resources Inc.
●
contract tonnage under the
ACSA and NCSA equal
the difference between current contracted
prices and
a market price
equivalent (to
be agreed with
the Company and
with discount to
market being not
more
than
% of
the price
applied to
the first
1.2 MMt
nominated under
the NCSA),
or the
price difference,
when
the
Company’s
liquidity
is
under
$
remaining contractual term
of the
ACSA and
the NCSA.
When the
Company’s liquidity is
between $
million
and
$
%
of
the
price
difference.
When
liquidity is above $
NCSA apply. The accumulated prepayment
amount will bear
interest at
% per annum
and the accrued
interest
amount
will
be
capped
at
prepayment balance will
be settled through
delivery of coal
to Stanwell in
months when the
Company’s
liquidity exceeds $
●
over other fixed assets
in respect to the
proposed ABL Facility and retain
its lower-ranking security under
the NCSA obligations.
●
agreement relating
to the Proposed
Transaction,
the Company
must (1)
obtain Stanwell’s
consent and
(2)
pay
immediately
to
Stanwell
the
amount
of
rebate
waived
under
the
ACSA.
Additionally,
if
the
Company’s current
controlling shareholder
ceases to
control the
Company by
way of
disposing a
%
or
more
interest
in
the
Company
without
Stanwell’s
consent,
the
Company
must
immediately
pay
to
Stanwell the amount of the rebate waived under the ACSA. The controlling shareholder
may dispose an
interest in the Company less than
% without Stanwell’s consent.
●
required to maintain a minimum cash
liquidity of $
to shareholders, the repurchase of any Notes in connection with the distribution,
and an equal or greater
amount than
the distribution
will be
used to
reduce the
prepayment amounts
outstanding under
ACSA
and NCSA.
In addition
to the
Proposed
Transaction,
the Company
continues to
pursue a
number of
initiatives intended
to
improve
liquidity
including,
among
other
things,
further
operating
and
capital
cost
control
measures,
potential
other debt and non-debt funding measures, and whole or
partial asset sales.
While management believes that the Proposed Transaction, if entered
into and once completed, would enhance
the Company’s
liquidity,
the vast majority
of the potential
funding under
the arrangement
is delivered over
time
and not upfront,
and does not
eliminate uncertainties in
relation to the
Company’s future financial
performance,
including the Company’s ability to achieve
its production targets and manage
working capital fluctuations that are
material
at
times
depending
on
circumstances
(production
and
inventory
levels),
due
to
events
and
factors
beyond its control, and sustained weakness in Met coal
markets and consequential realized Met coal prices.
Accordingly,
management
has
concluded
that
substantial
doubt
exists
regarding
the
Company’s
ability
to
continue
as
a
going
concern
within
one
year
after
the
date
of
these
Condensed
Consolidated
Financial
Statements.
These
Condensed
Consolidated
Financial
Statements
have
been
prepared
on
a
going
concern
basis,
which
contemplates the realization
of assets and
discharge of liabilities
in the ordinary
course of business
and do not
include any
adjustments relating to
the recoverability and
classification of recorded
asset amounts or
the amounts
and classification
of liabilities
that might
result
from the
outcome
of the
uncertainties
described
above.
These
adjustments may be material.
2.
Summary of Significant Accounting Policies
Please see Note 2 “Summary
of Significant Accounting Policies”
contained in the audited
consolidated financial
statements for the year ended December 31, 2024 included in Coronado Global Resources Inc.’s Annual Report
on Form 10-K filed with the SEC and ASX on February
19, 2025.
(a) Newly Adopted Accounting Standards
During
the
period,
there
has
been
no
new
Accounting
Standards
Update,
or
ASU,
issued
by
the
Financial
Accounting Standards Board,
or the FASB,
that had a material
impact on the Company’s
consolidated financial
statements.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS
(Continued)
Coronado Global Resources Inc.
(b) Accounting Standards Not Yet
Implemented
ASU No. 2023-09 -
“Income Taxes”
(Topic
740)
: Improvements to
Income Tax
Disclosures. In December
2023,
the
FASB
issued
ASU
2023-09,
which
modifies
the
rules
on
income
tax
disclosures
to
require
companies
to
disclose specific
categories in
the rate
reconciliation, the income
or loss
from continuing
operations before income
tax
expense
or
benefit
(separated
between
domestic
and
foreign)
and
income
tax
expense
or
benefit
from
continuing
operations
(separated
by federal,
state,
and
foreign).
The
updated
standard
is effective
for
annual
periods beginning
after December
15, 2024.
The Company
is currently
evaluating the
impact that
the updated
standard will have in its financial statement disclosures.
ASU
No.
2024-03
-
“Income
Statement
–
Reporting
Comprehensive
Income
–
Expense
Disaggregation
Disclosures” (Subtopic
220-40)
: Disaggregation
of Income
Statement Expenses.
In November
2024, the
FASB
issued
ASU
2024-03,
which
requires
disclosure,
in
the
notes
to
financial
statements,
of
specified
information
about certain
costs and
expenses. The
amendments aim
to improve
financial reporting
by requiring
that public
business
entities
disclose
additional
information
about
specific
expense
categories
in
the
notes
to
financial
statements at interim
and annual reporting
periods. The updated
standard is effective
for annual reporting
periods
beginning
after
December
15,
2026,
and
interim
reporting
periods
beginning
after
December
15,
2027.
Early
adoption is permitted. The Company is currently evaluating the impact that the updated
standard will have on its
financial statement disclosures.
ASU
No.
2025-05
-
“Financial
Instruments
–
Credit
Losses
(Topic
326
)”:
Measurement
of
Credit
Losses
for
Accounts
Receivables
and
Contract
Assets
.
In
July
2025,
FASB
issued
ASU
2025-05,
which
introduces
a
practical expedient related to the
estimation of expected credit losses
for current accounts receivable and
current
contract
assets
that
arise
from
transactions
accounted
for
under
ASU
606:
Revenue
from
Contracts
with
Customers
. The practical expedient
permits an entity to
assume that current conditions
as of the balance
sheet
date will
not change
for the
remaining life
of the
current accounts
receivable and
current contract
assets.
The
updated standard will
be effective
for annual periods
beginning after December
15, 2025, and
interim reporting
periods within those annual
reporting periods.
The Company is currently
evaluating the impact that
the updated
standard will have in its’ financial statement disclosures.
There have been
no other recent
accounting pronouncements
not yet effective
that have significance,
or potential
significance, to the Company’s consolidated financial
statements.
(c) Reclassifications
Certain amounts in
the prior period
Condensed Consolidated
Balance Sheet have
been reclassified to
conform
to the current period
presentation. These reclassifications relate to
the presentation of contract
obligations, which
were
previously
reported
within
different
financial
statement
line
items.
These
changes
had
no
impact
on
the
Company’s previously reported net income (loss).
3.
Segment Information
The Company has a portfolio of operating
mines and development projects in
Queensland, Australia, and in the
states of
Pennsylvania,
Virginia
and West
Virginia
in the
U.S. The
Australian Operations
comprise the
%-
owned
Curragh
producing
mine
complex.
The
U.S.
Operations
comprise
%-owned
producing
mine
complexes (Buchanan and Logan) and
The Company operates its
business along
the
operating
decision
maker,
or
CODM,
manages
and
allocates
resources
to
the
various
components
of
the
Company’s business.
The CODM
uses Adjusted
EBITDA as
the primary
metric to
measure each
segment’s
operating performance.
Adjusted EBITDA is not
a measure of
financial performance calculated in accordance with
U.S. GAAP. Investors,
analysts,
lenders
and
rating
agencies
should
be
aware
that
the
Company’s
presentation
of
Adjusted
EBITDA
may not be comparable to similarly titled financial measures
used by other companies.
Adjusted EBITDA is
defined as earnings
before interest, taxes,
depreciation, depletion and
amortization and other
foreign exchange losses. Adjusted EBITDA is
also adjusted for certain discrete items that
management exclude
in analyzing each
of the
Company’s segments’ operating performance.
“Other and corporate”
relates to additional
financial information for
the
corporate function,
such as financial
reporting and accounting, treasury, legal, human
resources, compliance,
and tax.
As such, the
corporate function
is not determined
to be
a reportable segment
but is
discretely disclosed
for purposes
of reconciliation
to the
Company’s
unaudited Condensed
Consolidated
Financial Statements.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS
(Continued)
Coronado Global Resources Inc.
Reportable segment
results as
of and for
the three
and nine
months ended
September 30,
2025 and
2024 are
presented below:
(in US$ thousands)
Australia
United States
Other and
Corporate
Total
Three months ended September 30,
2025
Total
revenues
$
$
$
$
Less:
Mining costs
(1)
(
240,470
)
(
118,515
)
(
358,985
)
Other operating costs
(1)
(
107,686
)
(
30,661
)
(
138,347
)
Total
operating costs
(
348,156
)
(
149,176
)
(
497,332
)
Other and unallocated costs
(2)
(
42
)
(
7,537
)
(
7,334
)
Segment adjusted EBITDA
(
47,881
)
(
7,537
)
(
22,539
)
Total
assets
Capital expenditures
Three months ended September 30,
2024
Total
revenues
$
$
$
$
Less:
Mining costs
(1)
(
290,121
)
(
166,210
)
(
456,331
)
Other operating costs
(1)
(
128,214
)
(
36,105
)
(
164,319
)
Total
operating costs
(
418,335
)
(
202,315
)
(
620,650
)
Other and unallocated costs
(2)
(
8,773
)
(
6,688
)
Segment adjusted EBITDA
(
51,978
)
(
8,773
)
(
19,123
)
Total
assets
Capital expenditures
Nine months ended September 30, 2025
Total
revenues
$
$
$
$
Less:
Mining costs
(1)
(
661,736
)
(
424,134
)
(
1,085,870
)
Other operating costs
(1)
(
296,260
)
(
91,170
)
(
387,430
)
Total
operating costs
(
957,996
)
(
515,304
)
(
1,473,300
)
Other and unallocated costs
(2)
(
59
)
(
23,452
)
(
21,879
)
Segment adjusted EBITDA
(
122,925
)
(
23,452
)
(
95,925
)
Total
assets
Capital expenditures
Nine months ended September 30, 2024
Total
revenues
$
$
$
$
Less:
—
—
—
—
Mining costs
(1)
(
826,880
)
(
459,316
)
(
1,286,196
)
Other operating costs
(1)
(
418,857
)
(
108,874
)
(
527,731
)
Total
operating costs
(
1,245,737
)
(
568,190
)
(
1,813,927
)
Other and unallocated costs
(2)
(
25,417
)
(
19,983
)
Segment adjusted EBITDA
(
25,417
)
Total
assets
Capital expenditures
NOTES TO UNAUDITED CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS
(Continued)
Coronado Global Resources Inc.
(1)
The significant expense category and
amount aligns with the segment-level
information that is regularly provided
to the CODM and excludes
Depreciation,
Depletion and Amortization.
(2)
Other and unallocated items for other and corporate includes
selling, general and administrative expenses.
The reconciliations
of Consolidated
Adjusted EBITDA
to net
loss attributable
to the Company
for the three
and
nine months ended September 30, 2025 and 2024 are
as follows:
Three months ended
Nine months ended
September 30,
September 30,
(in US$ thousands)
2025
2024
2025
2024
Consolidated Adjusted EBITDA
$
(
22,539
)
$
(
19,123
)
$
(
95,925
)
$
Depreciation, depletion and amortization
(
49,198
)
(
45,559
)
(
135,227
)
(
142,171
)
Interest expense, net
(1)
(
29,443
)
(
15,808
)
(
68,305
)
(
42,253
)
Other financing costs
(
1,500
)
(
1,500
)
Other foreign exchange gains (losses)
(2)
(
10,190
)
(
1,086
)
Loss on debt extinguishment
(
1,050
)
Impairment of non-core assets
(
10,585
)
(
10,585
)
Losses on idled assets
(3)
(
1,460
)
(
1,848
)
(
3,624
)
Decrease (increase) in provision for
discounting and credit losses
(
2,836
)
(
43
)
(
3,649
)
Net loss before tax
(
103,763
)
(
102,768
)
(
305,532
)
(
83,280
)
Income tax (expense) benefit
(
5,707
)
Net loss
$
(
109,470
)
$
(
70,997
)
$
(
281,871
)
$
(
54,798
)
(1)
respectively, and $
(2)
balances
in
certain
entities
within
the
group
that
are
denominated
in
currencies
other
than
their
respective
functional
currencies.
These gains
and losses
are included
in “Other,
net”
on
the unaudited
Condensed
Consolidated
Statement of
Operations and Comprehensive Income.
(3)
The
reconciliations
of
capital
expenditures
per
the
Company’s
segment
information
to
capital
expenditures
disclosed
on
the
unaudited
Condensed
Consolidated
Statements
of
Cash
Flows
for
the
nine
months
ended
September 30, 2025 and 2024 are as follows:
Nine months ended September 30,
(in US$ thousands)
2025
2024
Capital expenditures per unaudited Condensed Consolidated
Statements
of Cash Flows
$
$
Net movement in accruals for capital expenditures
(
8,904
)
Payment for capital acquired in prior periods
(
10,790
)
Capital acquired through finance leases
Advance payment to acquire long lead capital
(
4,695
)
Capital expenditures per segment detail
$
$
Disaggregation of Revenue
The Company disaggregates the revenue
from contracts with customers by
major product group for each of
the
Company’s
reportable
segments,
as
the
Company
believes
it
best
depicts
the
nature,
amount,
timing
and
uncertainty of revenues and cash flows.
All revenue is recognized at a point in time.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS
(Continued)
Coronado Global Resources Inc.
Three months ended September 30, 2025
(in US$ thousands)
Australia
United States
Total
Product Groups:
Metallurgical coal
$
$
$
Thermal coal
Total
coal revenue
Other
(1)
Total
$
$
$
Three months ended September 30, 2024
(in US$ thousands)
Australia
United States
Total
Product Groups:
Metallurgical coal
$
$
$
Thermal coal
Total
coal revenue
Other
(1)
Total
$
$
$
Nine months ended September 30, 2025
(in US$ thousands)
Australia
United States
Total
Product Groups:
Metallurgical coal
$
$
$
Thermal coal
Total
coal revenue
Other
(1)
Total
$
$
$
Nine months ended September 30, 2024
(in US$ thousands)
Australia
United States
Total
Product Groups:
Metallurgical coal
$
$
$
Thermal coal
Total
coal revenue
Other
(1)(2)
Total
$
$
$
(1) Other revenue for the Australian segment includes
the amortization of the Stanwell non-market coal
supply contract obligation liability.
(2) Other
revenue for
the U.S.
segment includes
$
revenue from coal sales contracts cancelled at our
U.S. operations.
4.
Inventories
(in US$ thousands)
September 30,
2025
December 31,
2024
Raw coal
$
$
Saleable coal
Total
coal inventories
Supplies and other inventory
Total
inventories
$
$
Coal inventories measured at their net realizable value were $
and $
2025 and December 31, 2024, respectively.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS
(Continued)
Coronado Global Resources Inc.
5. Other Assets
(in US$ thousands)
September 30,
2025
December 31,
2024
Other current assets
Prepayments
$
$
Long service leave receivable
Tax
credits receivable
Deposits to acquire capital items
Derivative assets (refer to Note 14. Derivatives and Fair
Value Measurement)
Other
Total
other current assets
$
$
6.
Property, Plant and
Equipment
(in US$ thousands)
September 30,
2025
December 31,
2024
Land
$
$
Buildings and improvements
Plant, machinery, mining
equipment and transportation vehicles
Mineral rights and reserves
Office and computer equipment
Mine development
Asset retirement obligation asset
Construction in process
Total
cost of property,
plant and equipment
Less accumulated depreciation, depletion and amortization
Property, plant and
equipment, net
$
$
7.
Accrued Expenses and Other Current Liabilities
Accrued expenses and other current liabilities consist of the
following:
(in US$ thousands)
September 30,
2025
December 31,
2024
Wages and employee benefits
$
$
Taxes
other than income taxes
Accrued royalties
Accrued freight costs
Accrued mining fees
Other liabilities
Total
accrued expenses and other current liabilities
$
$
NOTES TO UNAUDITED CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS
(Continued)
Coronado Global Resources Inc.
8.
Leases
During the nine months ended September 30, 2025,
the Company entered into a number of
agreements to lease
mining equipment. On mobilization, based on the Company’s assessment of terms within these agreements, the
Company recognized right-of-use assets and operating lease liabilities of $
and finance lease liabilities of $
Information related to the Company’s right-of-use
assets and related lease liabilities are as follows:
Three months ended
Nine months ended
(in US$ thousands)
September 30,
2025
September 30,
2024
September 30,
2025
September 30,
2024
Operating lease costs
$
$
$
$
Cash paid for operating lease liabilities
Finance lease costs:
Amortization of right-of-use assets
Interest on lease liabilities
Total
finance lease costs
$
$
$
$
(in US$ thousands)
September 30,
2025
December 31,
2024
Operating leases:
Operating lease right-of-use assets
$
$
Finance leases:
Property and equipment
Accumulated depreciation
(
1,536
)
Property and equipment, net
Current operating lease obligations
Operating lease liabilities, less current portion
Total
Operating lease liabilities
Current finance lease obligations
Finance lease liabilities, less current portion
Total
Finance lease liabilities
Current lease obligation
Non-current lease obligation
Total
Lease liability
$
$
September 30,
2025
December 31,
2024
Weighted Average Remaining
Lease Term (Years)
Weighted average remaining lease term – finance
leases
-
Weighted average remaining lease term – operating
leases
Weighted Average Discount
Rate
Weighted discount rate – finance lease
Weighted discount rate – operating lease
NOTES TO UNAUDITED CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS
(Continued)
Coronado Global Resources Inc.
The Company’s
operating
and finance
leases have
remaining
lease terms
of
, some
of
which include options to extend the terms where the Company
deems it is reasonably certain the options will be
exercised. Maturities of lease liabilities as at September
30, 2025, are as follows:
(in US$ thousands)
Operating
Lease
Finance
Lease
Year ending
December 31,
2025
$
$
2026
2027
2028
2029
Total
lease payments
Less imputed interest
(
16,829
)
(
5,347
)
Total
lease liability
$
$
9.
Interest Bearing Liabilities
The following is a summary of interest-bearing liabilities
at September 30, 2025:
September 30, 2025
December 31, 2024
Weighted Average
Interest Rate at
September 30, 2025
Final
Maturity
% Senior Secured Notes
$
$
%
(2)
ABL Facility
%
Loan - Curragh Housing Transaction
%
(2)
Discount and debt issuance costs
(1)
(
10,718
)
(
12,165
)
Total
interest bearing liabilities
Less: current portion
(
1,596
)
(
1,363
)
Non-current interest-bearing liabilities
$
$
(1)
Relates to discount and debt issuance costs
in connection with the Notes and Curragh Housing
Transaction (each as defined below)
loan. Deferred debt issuance costs incurred in
connection with the establishment of the ABL Facility
have been included within
"Other non-
current assets" in the unaudited Condensed Consolidated
Balance Sheets.
(2)
issuance costs and discount, where applicable.
9.250% Senior Secured Notes due in 2029
As of
September 30,
2025, the
aggregate principal
amount of
the
% Senior
Secured Notes
due 2029,
or
the Notes, outstanding was $
The Notes were issued at par and bear
interest at a rate of
% per annum. Interest on the Notes
is payable
semi-annually in arrears on April 1 and October 1 of each year, which began on April 1, 2025. The Notes mature
on October 1, 2029 and are senior secured obligations
of the Issuer.
The terms
of the
Notes are
governed
by an
indenture,
or the
Indenture,
dated
as of
October
2, 2024,
among
Coronado Finance Pty
Ltd, as issuer
(the Issuer),
Coronado Global
Resources Inc., as
guarantor, the subsidiaries
of
Coronado
Global
Resources
Inc.,
named
therein
as
additional
guarantors,
and
Wilmington
Trust,
National
Association, as trustee
and priority lien
collateral trustee. The
Indenture contains
customary covenants for
high
yield bonds, including,
but not limited
to, limitations on
investments, liens, indebtedness, asset
sales, transactions
with affiliates and restricted payments, including payment
of dividends on capital stock.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS
(Continued)
Coronado Global Resources Inc.
The Notes are guaranteed on a
senior secured basis by the Company and certain of
the Company’s subsidiaries
that guarantee,
or is a borrower,
under the Company’s ABL Facility
(as defined below) or certain other debt
and
secured by
(i) a first-priority
lien on
substantially all
of the assets
of the Issuer
and each
Guarantor (other
than
accounts receivable and
certain other rights
to payment, inventory,
certain investment
property,
certain general
intangibles and
commercial tort
claims, deposit
accounts, securities
accounts and
other related
assets, chattel
paper,
letter
of credit
rights,
certain
insurance proceeds,
intercompany
indebtedness
and certain
other assets
related
to
the
foregoing
and
proceeds
and
products
of
each
of
the
foregoing
(collectively,
the
“ABL
Priority
Collateral”)) and
(ii) a second-priority
lien on
the ABL
Priority Collateral,
which is
junior to
a first-priority
lien for
the benefit of the lenders and other creditors under the Company’s asset-based revolving credit facility, dated as
of June 18, 2025, subject to certain exceptions and permitted
liens.
Upon the
occurrence of
a “Change
of Control
Triggering
Event”, defined
in the
Indenture as
the occurrence
of
Change
of
Control
and
Rating
Decline
(each
as
defined
in
the
Indenture),
the
Issuer
is
required
to
offer
to
repurchase the
Notes at
% of
the aggregate
principal amount
thereof, plus
accrued and
unpaid interest,
if
any,
to, but
excluding, the
repurchase date.
The Issuer
also has
the right
to redeem
the Notes
at
% of
the
aggregate principal
amount thereof,
plus accrued
and unpaid
interest, if
any,
to, but
excluding, the
repurchase
date, following the occurrence of
a Change of Control
Triggering Event, provided that the Issuer
redeems at least
% of the Notes outstanding prior
to such Change of Control
Triggering Event. Upon
the occurrence of certain
changes in tax law (as described in the Indenture), the Issuer may redeem all of the Notes at a redemption price
equal to
% of the principal amount
of the Notes to be redeemed
plus accrued and unpaid interest,
if any,
to,
but excluding, the redemption date.
The
Indenture
contains
customary
events
of
default,
including
failure
to
make
required
payments,
failure
to
comply with certain agreements
or covenants, failure to
pay or acceleration of
certain other indebtedness, certain
events of
bankruptcy and
insolvency, and failure to
pay certain
judgments. An
event of
default under
the Indenture
will allow either the
trustee or the holders
of at least
% in aggregate principal
amount of the then-outstanding
Notes
to
accelerate,
or
in
certain
cases,
will
automatically
cause
acceleration
of,
the
amounts
due
under
the
Notes.
As of September 30, 2025, the Company was in compliance
with all applicable covenants under the Indenture.
The carrying
value of
debt issuance
costs, recorded
as a
direct deduction
from the
face amount
of the
Notes,
was $
ABL Facility
On
June
18,
2025,
the
Company,
Coronado
Coal
Corporation,
a
Delaware
corporation
and
wholly
owned
subsidiary of the
Company,
Coronado Finance Pty
Ltd, an Australian
proprietary company
and a wholly
owned
subsidiary
of
the
Company,
or
an
Australian
Borrower,
Coronado
Curragh
Pty
Ltd,
an
Australian
proprietary
company and wholly
owned subsidiary of
the Company,
or an Australian
Borrower and, together
with the other
Australian Borrower,
the Borrowers,
and the
other guarantors
party thereto,
collectively with
the Company,
the
Guarantors and, together
with the Borrowers,
the Loan Parties,
entered into an
amendment and restatement
of
its
existing
senior
secured
asset-based
revolving
credit
agreement
in
an
initial
aggregate
principal
amount
of
$
Agent, Global Loan Agency
Services Australia Nominees Pty
Ltd, as Collateral Agent,
and Highland Park XII
Pte.
Ltd., an
affiliate of
Oaktree Capital
Management, L.P.,
as Lender.
The ABL
Facility amended
and restated
the
Company’s
predecessor
senior
secured
asset-based
revolving
credit
agreement,
dated
May 8,
2023
(as
amended and
restated from
time to
time), and
as a
result, The
Hongkong and
Shanghai Banking
Corporation
Limited and DBS Bank Limited, Australian branch, ceased to
be lenders.
The
ABL
Facility
is
a
revolving
credit
facility
that
matures
in
2028
and
provides
for
up
to
$
borrowings. Availability
under the
ABL Facility
is limited
to an
eligible borrowing
base, determined
by applying
customary advance
rates to
eligible accounts
receivable and
inventory.
As of
September 30,
2025, the
eligible
borrowing base under the ABL
Facility was $
available and undrawn.
Borrowings under the ABL Facility bear interest at a rate of
% per annum and are subject to an interest make-
whole premium, payable on any refinance or prepayment during the
first
The
undrawn
capacity
under
the
ABL
Facility
remains
available
until
June
18,
2026
and
is
subject
to
a
commitment fee of
% per annum.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS
(Continued)
Coronado Global Resources Inc.
The ABL Facility
is guaranteed by
the Guarantors. Amounts
outstanding under
the ABL Facility
are secured by
(i) first priority
lien in the
ABL Priority Collateral,
and (ii) a
second-priority lien on
substantially all of
the Company’s
assets and the assets of the guarantors, other than the ABL
Priority Collateral.
The ABL Facility is subject to financial covenants,
including a covenant regarding the maintenance of a leverage
ratio and an interest coverage ratio, as described in the ABL
Facility.
The ABL Facility
also contains customary
representations and warranties and
affirmative and negative covenants
including,
among
others,
covenants
relating
to
the
payment
of
dividends
with
respect
to,
or
the
purchase
or
redemption of, any equity
interests of the Company
or any of its subsidiaries,
financial reporting, the
incurrence
of liens or encumbrances, the incurrence or prepayment
of certain debt, compliance with laws, use of
proceeds,
maintenance of
properties, maintenance
of insurance,
payment obligations,
financial accommodation,
mergers
and sales of
all or substantially all
of the assets
of the Loan
Parties and changes in
the nature of
the Loan Parties’
business.
The
ABL
Facility
provides
for
customary
events
of
default,
including,
among
other
things,
the
nonpayment
of
principal, interest, fees, or other amounts, a representation or warranty proving to have been materially incorrect
when made, the failure to perform or observe certain covenants within a specified period of time, a cross-default
to certain
material indebtedness,
the bankruptcy
or insolvency
of the
Company
and certain
of its
subsidiaries,
monetary
judgment
defaults
of
a
specified
amount,
the
invalidity
of
any
loan
documentation,
ERISA
defaults
resulting in
liability of
a material amount,
a two
notch downgrade of
a Loan Party’s
credit rating by
S&P or Moody’s
which applies
as at
the closing
date, or
a trading
halt in
respect of
such Loan
Party for
more than
days.
In
the
event
of
a
default
by
the
Borrowers
(beyond
any
applicable
grace
or
cure
period,
if
any),
the
Administrative
Agent
may
and,
at the
direction
of
the
Lender,
shall
declare
all
amounts
owing
under
the
ABL
Facility immediately due and payable, terminate
the Lender’s commitment to make loans
under the ABL Facility
and/or
exercise
any
and
all
remedies
and
other
rights
under
the
ABL
Facility.
For
certain
defaults
related
to
insolvency and receivership, the commitments of the Lender will be automatically terminated and all outstanding
loans and other amounts will become immediately due
and payable.
A
Review Event will occur
under the ABL Facility
if any one or more
of the following occurs:
(a) a downgrade of
the credit rating of a Loan Party by S&P or Moody’s which applies as at the closing date; or (b) a delisting of any
listed Loan Party from the
relevant stock exchange on which it
was listed or a trading
halt in respect of such
Loan
Party for more than
meet and consult
in good
faith with
the Administrative
Agent and
the Lender
to agree
on a
strategy to
address
the relevant
Review
Event.
If, at
the
end
of
a period
of
Event, the Lender is not satisfied with the result of their
discussion or meeting with the Borrowers or do not
wish
to continue
to provide
their commitments,
the Lender
may declare
all amounts
owing under
the ABL
Facility to
be prepaid within another
On
June
30,
2025,
S&P
downgraded
the
Company’s
credit
rating
from
‘B-‘
to
‘CCC+’
and,
on
July
7,
2025,
Moody’s downgraded the Company’s credit
rating from ‘Caa1’
to ‘Caa2’, both
of which resulted
in a Review
Event
under the ABL
Facility.
On July
9, 2025, the
Company successfully
negotiated with
the Lender,
who confirmed
no changes to the terms or the availability of the ABL Facility,
thereby, concluding
each of the Review Events. A
potential further two
or more notches
downgrade to the
Company’s credit
rating by S&P
or Moody’s
may result
in an Event of Default under the ABL Facility,
unless the Event of Default is cured or a waiver is obtained
.
On September 29, 2025,
the Company entered into
an agreement with the
Administrative Agent under
the ABL
Facility to
waive the
Company’s compliance
with financial
covenants as
at September
30, 2025,
and reset
the
conditions
related
to
credit
rating
downgrades
such
that
a review
event,
default
or event
of
default
would
not
occur under the
ABL Facility
due to a
one notch downgrade
to the Company’s
credit rating by
S&P or Moody’s
as
at
September
29,
2025
(however
an
event
of
default
will
occur
if
there
is
a
further
two
or
more
notches
downgrade
to
the
Company’s
credit
rating
by
S&P
or
Moody’s
as
at
September
29,
2025).
The
Company’s
obligation to comply with financial covenants as at December
31, 2025, and beyond remained unchanged.
To
establish
the
ABL
Facility,
the
Company
incurred
debt
issuance
costs
of
$
elected under its accounting policy to present debt issuance costs incurred before the debt liability is recognized
(e.g. before the debt proceeds are received)
as an asset which will be
amortized ratably over the term of
the ABL
Facility. The costs will not be subsequently reclassified as a direct deduction of the liability. The carrying value of
debt issuance costs, recorded as “Other non-current assets” in the unaudited Condensed Consolidated Balance
Sheets was $
NOTES TO UNAUDITED CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS
(Continued)
Coronado Global Resources Inc.
Predecessor ABL Facility
On June
18, 2025,
the ABL
Facility amended
and restated
the predecessor
ABL Facility,
which resulted
in the
extinguishment
of
the
predecessor
ABL
Facility.
As
a
result
of
the
early
termination
of
the
predecessor
ABL
Facility,
the
Company
recorded
a
loss
on
debt
extinguishment
of
$
Consolidated Statement of Operations and Comprehensive Income for each
of the three and nine months ended
September 30, 2025.
Loan – Curragh Housing Transaction
On
May
16,
2024,
the
Company
completed
an
agreement
for
accommodation
services
and
the
sale
and
leaseback
of
housing
and
accommodation
assets
with
a
regional
infrastructure
and
accommodation
service
provider, or collectively, the Curragh
Housing Transaction. Refer
to Note
10. “Other
Financial Liabilities”
for further
information.
In connection with the Curragh Housing Transaction, the
Company borrowed $
the same
regional
infrastructure
and accommodation
service provider.
This amount
was recorded
as “Interest
Bearing Liabilities” in the unaudited Condensed Consolidated Balance Sheets. The amount borrowed is payable
in equal monthly
installments over
a period of
, with an
effective interest
rate of
%. The Curragh
Housing Transaction loan is not subject
to any financial covenants.
As of September 30, 2025, the
carrying value of the loan, net of
issuance costs of $
$
10. Other Financial Liabilities
The following is a summary of other financial liabilities
as at September 30, 2025:
September 30,
2025
December 31,
2024
Collateralized financial liabilities payable to third-party financing
companies
$
$
Collateralized financial liabilities - Curragh Housing Transaction
Unsecured notes payable to insurance premium finance company
Debt issuance costs
(
917
)
(
988
)
Total
other financial liabilities
Less: current portion
Non-current other financial liabilities
$
$
Collateralized financial liabilities – Curragh Housing Transaction
The Curragh
Housing Transaction
did not
satisfy the
sale criteria
under Accounting
Standards Codification,
or
ASC, 606
– Revenues
from Contracts
with Customers
and was
deemed a
financing arrangement.
As a
result,
proceeds of $
owned by the
Company in connection with
the Curragh Housing
Transaction were recognized as
“Other Financial
Liabilities”
on
the
Company’s
unaudited
Condensed
Consolidated
Balance
Sheets.
The
term
of
the
financing
arrangement is
%. This
liability will
be settled
in equal
monthly
payments as part of the accommodation services arrangement.
In connection with the
Curragh Housing Transaction,
the Company has granted the
counterparty mortgages over
certain
leasehold
and
freehold
land.
The
counterparty’s
rights
are
subject
to
a
priority
deed
in
favor
of
the
Company’s
senior
secured
parties
including,
but
not
limited
to,
holders
of
the
Notes,
lenders
under
the
ABL
Facility and Stanwell.
The carrying
value of
this financial liability, net
of issuance
costs of
$
30, 2025, $
NOTES TO UNAUDITED CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS
(Continued)
Coronado Global Resources Inc.
Unsecured notes payable to insurance premium finance
company
In July
2025, the
Company entered
into an
agreement with
an insurance
premium finance
company to
obtain
$
policies. The liability bears a fixed
interest rate of
%, payable in three monthly
instalments of $
will mature in December 2025.
The carrying value of this financial liability was $
11.
Contract Obligations
(US$ thousands)
September 30,
2025
December 31,
2024
Current
Coal leases contract liability
$
$
Stanwell below market coal supply agreement
$
$
Non-current
Coal leases contract liability
$
$
Stanwell below market coal supply agreement
Stanwell deferred consideration liability
Prepaid coal supply liability - Stanwell
$
$
Prepaid Coal Supply Liability - Stanwell
On June 10, 2025,
the Company and Stanwell
Corporation Ltd, or
Stanwell, entered into a
deed of amendment
and
amended
the
New
Coal
Supply
Agreement
dated
July
12,
2019,
or
NCSA,
whereby
Stanwell
provided
approximately
$
tonnage of thermal coal under the NCSA.
The Deed of Amendment included a $
rebate waiver
and deferral
from April 2025
to December
2025 (with an
estimated value
of approximately
$
million), as they are incurred, both of
which will be settled through reduction of the gross
proceeds to be received
on the physical delivery of thermal
coal to Stanwell, expected to start in
early 2027, of up to
over
,
or
until
such
time
that
the
obligation
is
fully
settled.
This
Prepaid
Coal
Supply
Liability
bears
interest of
% per annum. Contract liability related to this arrangement will be settled as the physical delivery of
coal occurs and performance obligation is satisfied.
For the
three and
nine months
ended September
30, 2025,
the Company
recognized interest
expense of
$
million and $
rebates.
12.
Income Taxes
For the nine
months ended September 30,
2025, the Company estimated
its annual effective tax
rate and applied
this effective tax
rate to its year-to-date
pretax income at
the end of the interim
reporting period. The
tax effects
of
unusual
or
infrequently
occurring
items,
including
effects
of
changes
in
tax
laws
or
rates
and
changes
in
judgment about the realizability of deferred tax assets, are reported
in the interim period in which they occur.
The Company’s 2025 estimated annual
effective tax rate is
%. This rate is impacted by
inclusion of a current
year valuation
allowance relating
to both
the Australia
and the U.S.
operations. Accordingly,
the Company
had
an income
tax benefit
of $
September 30, 2025, which includes discrete expense
of $
The Company had an income tax benefit of $
months ended September 30, 2024.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS
(Continued)
Coronado Global Resources Inc.
The Company utilizes the
“more likely than not”
standard in recognizing
a tax benefit in
its financial statements.
For the three months ended September 30, 2025, the
Company had
in tax
expense. If
accrual for
interest or
penalties
is required,
it is
the Company’s
policy to
include these
as a
component of income tax expense. The
Company continues to carry an unrecognized tax
benefit of $
and $
The Company is
subject to taxation
in the
U.S. and its
various states, as
well as Australia
and its
various localities.
In the
U.S.
and
Australia, the
first tax
return
was
lodged for
the
year
ended December
31,
2018. In
the U.S.,
companies are
subject to
open tax
audits for
a period
of seven
years at
the federal
level and
five years
at the
state level.
In Australia,
companies
are subject
to open
tax audits
for a
period of
four years
from the
date of
assessment.
13.
Loss per Share
Basic (loss) earnings per
share of common stock
is computed by dividing
net income attributable to
the Company
stockholders for the period
by the weighted-average number
of shares of common stock
outstanding during the
same period.
Diluted earnings per share of common stock is computed by
dividing net income attributable to the
Company
by the
weighted-average
number
of shares
of common
stock
outstanding
adjusted to
give
effect
to
potentially dilutive securities.
Basic and diluted loss per share were calculated as
follows (in thousands, except per share data):
Three months ended
September 30,
Nine months ended
September 30,
(in US$ thousands, except per share data)
2025
2024
2025
2024
Numerator:
Net loss attributable to Company stockholders
$
(
109,470
)
$
(
70,997
)
$
(
281,871
)
$
(
54,798
)
Denominator (in thousands):
Weighted average shares of common stock
outstanding
Weighted average diluted shares of common
stock outstanding
Loss Per Share (US$):
Basic
(
0.65
)
(
0.42
)
(
1.68
)
(
0.33
)
Diluted
(
0.65
)
(
0.42
)
(
1.68
)
(
0.33
)
The Company’s common stock is publicly traded on
the ASX in the form of CDIs, convertible at the option of
the holders into shares of the Company’s common
stock on a
-for-1 basis.
14.
Derivatives and Fair Value
Measurement
a) Derivatives
The
Company
may
use
derivative
financial
instruments
to
manage
its
financial
risks
in
the
normal
course
of
operations, including foreign
currency risks, commodity
price risk related
to purchase of
raw materials (such
as
gas or
diesel) and interest
rate risk. Derivatives
for speculative purposes
are strictly prohibited
under the Treasury
Risk Management Policy approved by the Board of Directors.
The financing
counterparties
to the
derivative
contracts
potentially expose
the
Company
to credit-related
risk.
Credit risk is the risk that a
third party might fail to fulfill its obligations under the
terms of the financial instrument.
The Company
mitigates
credit risk
by entering
into derivative
contracts with
high credit
quality counterparties,
limiting the amount of exposure to each counterparty and
frequently monitoring their financial condition.
Forward foreign currency contracts
The Company’s Australian Operations utilize the cash
generated from US$ denominated coal sales revenues to
fund operating
costs, which
are predominantly
in A$.
During the
nine months
ended September
30, 2025,
the
NOTES TO UNAUDITED CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS
(Continued)
Coronado Global Resources Inc.
Company entered into forward foreign currency contracts to hedge its
foreign exchange exposure on a portion of
the US$ denominated coal sales revenue at its Australian Operations,
whose functional currency is A$.
The aggregated notional amount of
the outstanding forward foreign
currency derivative contracts
designated as
cash flow hedges
was $
designated as
cash flow
hedges, the
unrealized gain
of $
other
comprehensive
loss”
at
September
30,
2025
in
the
Unaudited
Condensed
Balance
Sheet,
and
will
be
reclassified
into
“Coal
revenues”
in
the
Unaudited
Condensed
Statements
of
Operations
and
Comprehensive
Income in the period in which
the hedged transaction impacts
income, expected to be
within the next 4 months.
Refer to Note 15. Accumulated Other Comprehensive
Losses.
As of
September 30,
2025, the
Company recognized a
derivative asset of
$
currency contracts, classified within “Other Current Assets”
.
The following table presents the details of outstanding
foreign currency contracts:
September 30, 2025
Notional amount
(thousands)
Unit of
measure
Varying maturity
dates
Forward foreign currency contracts
US$
October 2025 -
January 2026
b) Fair Value Measurement
The fair
value of
a financial
instrument is
the amount
that will
be received
to sell
an asset
or paid
to transfer
a
liability in
an orderly transaction
between market participants
at the
measurement date. The
fair values
of financial
instruments involve uncertainty and cannot be determined with
precision.
The Company utilizes valuation
techniques that maximize
the use of observable inputs
and minimize the use of
unobservable
inputs
to
the
extent
possible.
The
Company
determines
fair
value
based
on
assumptions
that
market participants would use in pricing
an asset or liability in the
market.
When considering market participant
assumptions in fair
value measurements, the
following fair value
hierarchy distinguishes between observable
and
unobservable inputs, which are categorized in one of the following
levels:
Level
1 Inputs:
Unadjusted
quoted
prices
in
active
markets
for identical
assets
or liabilities
accessible
to
the
reporting entity at the measurement date.
Level 2 Inputs:
Other than quoted prices that are observable for the
asset or liability,
either directly or indirectly,
for substantially the full term of the asset or liability.
Level
3
Inputs:
Unobservable
inputs
for
the
asset
or
liability
used
to
measure
fair
value
to
the
extent
that
observable inputs
are not
available, thereby
allowing for
situations in
which there
is little, if
any,
market activity
for the asset or liability at measurement date.
Financial Instruments Measured on a Recurring Basis
As
of
September
30,
2025,
the
Company’s
forward
foreign
currency
contracts,
a
net
derivative
asset
of
$
million, were required to be measured at fair value on a recurring basis based on
a valuation that is corroborated
by
the
use
of
market-based
pricing
(Level
2).
As
at
December
31,
2024,
there
were
no
financial
instruments
required to be measured at fair value on a recurring basis.
Other Financial Instruments
The following methods and assumptions were used to estimate the fair value of other financial instruments
as of
September 30, 2025 and December 31, 2024:
●
and
other
current
financial
liabilities:
The
carrying
amounts
reported
in
the
unaudited
Condensed
Consolidated Balance Sheets approximated
fair value due to the short maturity of these instruments.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS
(Continued)
Coronado Global Resources Inc.
●
values approximate
d
the
carrying
values
reported
in
the
unaudited
Condensed
Consolidated
Balance
Sheets.
●
cost. As of
September 30, 2025,
the fair value
of the amounts
drawn under the
ABL Facility approximated
the carrying value reported in the consolidated balance sheets.
The estimated fair value of the Notes as
of September 30, 2025 was
approximately $
that is not considered
active (Level 2). The
estimated fair value of
the Curragh Housing
loan was $
million based upon unobservable inputs (Level 3).
15.
Accumulated Other Comprehensive Losses
The Company’s Accumulated Other Comprehensive Losses consisted
of foreign currency translation adjustment
of subsidiaries
for which the
functional currency
is different
to the Company’s
functional currency
in U.S. dollar
and
net
unrealized
gains
(losses)
of
forward
foreign
currency
contracts
designated
as
cash
flow
hedge
as
of
September 30, 2025, as follow:
(in US$ thousands)
Foreign
currency
translation
adjustments
Net unrealized
gain on cash
flow hedge -
forward foreign
currency
contracts
Total
Balance at December 31, 2024
$
(
137,560
)
$
(
137,560
)
Net current-period other comprehensive losses:
(Loss) gain in other comprehensive income before
reclassifications
(
14,457
)
(
12,434
)
Gain on long-term intra-entity foreign currency transactions
Gain reclassified from accumulated other comprehensive
losses
(
335
)
(
335
)
Total
net current-period other comprehensive losses
Balance at September 30, 2025
$
(
128,872
)
$
(
127,184
)
16.
Commitments
(a)
Mineral Leases
The
Company
leases
mineral
interests
and
surface
rights
from
land
owners
under
various
terms
and
royalty
rates. The
future minimum
royalties and
lease rental
payments under
these leases
as of
September 30,
2025
were as follows:
(in US$ thousands)
Amount
Year ending
December 31,
2025
$
2026
2027
2028
2029
Thereafter
Total
$
Mineral leases are not
in scope of ASC
842 and continue to
be accounted for
under the guidance in
ASC 932,
Extractive Activities – Mining.
(b)
Other commitments
As of
September
30, 2025,
purchase
commitments
for
capital expenditures
were $
obligated within the next twelve months.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS
(Continued)
Coronado Global Resources Inc.
In Australia, the
Company has generally
secured the ability
to transport coal
through rail contracts
and coal export
terminal contracts that are primarily funded
through take-or-pay arrangements with terms ranging up to
.
In
the
U.S.,
the
Company
typically
negotiates
its
rail
and
coal
terminal
access
on
an
annual
basis.
As
of
September
30,
2025,
these
Australian
and
U.S.
commitments
under
take-or-pay
arrangements
totaled
$
17.
Contingencies
Surety bond, letters of credit and bank guarantees
In the
normal course
of business,
the Company
is a
party to
certain guarantees
and financial
instruments with
off-balance sheet risk, such as bank
guarantees, letters of credit and performance
or surety bonds.
related
to
these
arrangements
are
reflected
in
the
Company’s
unaudited
Condensed
Consolidated
Balance
Sheets. Management does
not expect any
material losses to
result from these
guarantees or off-balance
sheet
financial instruments.
For
the U.S.
Operations,
in
order to
provide
the required
financial
assurance
for post
mining
reclamation,
the
Company generally uses
surety bonds. The
Company uses surety
bonds and bank
letters of credit
to collateralize
certain
other
obligations
including
contractual
obligations
under
workers’
compensation
insurance.
As
of
September 30, 2025, the Company had outstanding surety
bonds of $
For
the
Australian
Operations,
as at
September
30,
2025, the
Company
had
bank
guarantees
outstanding
of
$
Future regulatory changes relating to
these obligations or deterioration of
the Company’s credit risk
rating could
result in increased obligations, additional costs or additional
collateral requirements.
Restricted deposits – cash collateral
As required by
certain agreements, the
Company had total
cash collateral in
the form of
deposits of $
and
$
support for bank guarantees, other
performance obligations, various other operating agreements
and contractual
obligations under workers compensation insurance.
These deposits are restricted and classified as “Non-current
assets” in the unaudited Condensed Consolidated Balance
Sheets.
Future
regulatory
changes
in
relation
to
these
obligations
or
deterioration
of
the
Company’s
credit
risk
rating
could result in increased obligations, additional costs or
additional collateral requirements.
Stamp duty on Curragh acquisition
The Company, based on legal and valuation advice, continues to dispute a portion of the stamp duty paid on the
acquisition of the Curragh
mine in 2018 of
$
Supreme Court of
Queensland on March
11,
2024. The outcome
of the appeal
remains uncertain and
as such,
no contingent asset was recognized at September 30, 2025.
From time to time, the
Company becomes a
party to other legal
proceedings in the
ordinary course of business
in Australia, the U.S. and other countries where the Company does business.
Based on current information, the
Company believes that such other pending
or threatened proceedings are likely to
be resolved without a material
adverse
effect
on
its
financial
condition,
results
of
operations
or
cash
flows.
In
management’s
opinion,
the
Company is not currently
involved in any legal
proceedings, which individually
or in the aggregate
could have a
material effect on the financial condition, results of
operations and/or liquidity of the Company.
Coronado Global Resources Inc.
REPORT OF INDEPENDENT REGISTERED PUBLIC
ACCOUNTING FIRM
To the Stockholders
and Board of Directors of Coronado Global Resources
Inc.
Results of Review of Interim Financial Statements
We
have
reviewed
the
accompanying
condensed
consolidated
balance sheet
of
Coronado
Global
Resources
Inc. (the Company) as
of September 30, 2025, the
related condensed consolidated statements of operations and
comprehensive
income
for
the
three
and
nine-month
periods
ended
September
30,
2025
and
2024,
the
condensed consolidated
statements of
stockholders’ equity
for the
three-month periods
ended March
31, June
30, and September 30, 2025 and
2024, the condensed consolidated statements of cash flows
for the nine-month
periods ended September
30, 2025 and 2024,
and the related
notes (collectively referred
to as the “condensed
consolidated interim financial
statements”). Based on our
reviews, we are
not aware of
any material modifications
that should be made to the
condensed consolidated interim financial statements for them to be
in conformity with
U.S. generally accepted accounting principles.
We
have
previously
audited,
in
accordance
with
the
standards
of
the
Public
Company
Accounting
Oversight
Board (United States) (PCAOB), the
consolidated balance sheet of the Company
as of December 31, 2024, the
related consolidated statements
of operations
and comprehensive
income, stockholders'
equity and cash
flows
for the year then ended, and
the related notes (not presented herein), and
in our report dated February 19, 2025,
we
expressed
an
unqualified
audit
opinion
on
those
consolidated
financial
statements.
In
our
opinion,
the
information set
forth in
the accompanying
condensed consolidated
balance sheet
as of December
31, 2024,
is
fairly stated, in all material
respects, in relation to the consolidated balance
sheet from which it has been
derived.
The Company's Ability to Continue as a Going Concern
As disclosed
in Note
1 to
the condensed
consolidated
interim financial
statements,
certain conditions
indicate
that the Company
may be
unable to continue
as a going
concern. The
accompanying condensed
consolidated
interim financial statements do
not include any
adjustments that might result
from the outcome
of this uncertainty.
Basis for Review Results
These financial
statements
are the
responsibility
of the
Company's
management.
We
are a
public accounting
firm registered with the PCAOB and are required
to be independent with respect to the Company
in accordance
with the
U.S. federal
securities laws
and the
applicable rules
and regulations
of the
SEC and
the PCAOB.
We
conducted our review
in accordance with
the standards of
the PCAOB. A
review of interim
financial statements
consists principally
of applying
analytical procedures
and making
inquiries of
persons
responsible for
financial
and accounting matters.
It is substantially
less in scope
than an audit
conducted in accordance
with the standards
of the PCAOB, the objective of which is the expression of an opinion regarding the financial statements taken as
a whole. Accordingly,
we do not express such an opinion.
/s/ Ernst & Young
Brisbane, Australia
November 10, 2025.
Coronado Global Resources Inc.
ITEM 2.
MANAGEMENT’S DISCUSSION
AND ANALYSIS
OF FINANCIAL
CONDITION AND
RESULTS
OF
OPERATIONS
The following
Management’s Discussion
and Analysis
of Financial
Condition and
Results of Operations
should
be read in conjunction
with the unaudited
Condensed Consolidated Financial
Statements and the
related notes
to those statements included elsewhere in this Quarterly Report on Form 10-Q. In addition, this Quarterly Report
on
Form 10-Q
should
be
read
in
conjunction
with
the
Consolidated
Financial
Statements
for
year
ended
December 31,
2024
included
in
Coronado
Global
Resources
Inc.’s
Annual
Report
on
Form 10-K
for
the
year
ended December 31, 2024, filed with the SEC and the
ASX on February 19, 2025.
Unless otherwise
noted,
references
in this
Quarterly
Report on
Form 10-Q
to “we,”
“us,”
“our,”
“Company,”
or
“Coronado” refer
to Coronado
Global Resources
Inc. and
its consolidated
subsidiaries and
associates, unless
the context indicates otherwise.
All production and sales volumes contained in this Quarterly Report on Form 10-Q
are expressed in metric tons,
or Mt,
millions of
metric tons,
or MMt,
or millions
of metric
tons per
annum, or
MMtpa, except
where otherwise
stated. One Mt
(1,000 kilograms) is equal
to 2,204.62 pounds and
is equivalent to 1.10231
short tons. In addition,
all
dollar
amounts
contained
herein
are
expressed
in
United
States
dollars,
or
US$,
except
where
otherwise
stated.
References
to
“A$”
are
references
to
Australian
dollars,
the
lawful
currency
of
the
Commonwealth
of
Australia. Some numerical figures included in this Quarterly Report
on Form 10-Q have been subject to rounding
adjustments. Accordingly, numerical figures shown as
totals in certain
tables may not
equal the sum
of the figures
that precede them.
CAUTIONARY NOTICE REGARDING FORWARD
-LOOKING STATEMENTS
This Quarterly Report on Form 10-Q contains “forward-looking statements” within the meaning of Section 27A of
the Securities Act of 1933, as
amended, and Section 21E of the Securities
Exchange Act of 1934, as amended,
or the Exchange
Act, concerning
our business,
operations, financial
performance and
condition, the
coal, steel
and
other
industries,
as well
as
our
plans,
objectives
and
expectations
for
our
business,
operations,
financial
performance
and
condition.
Forward-looking
statements
may
be
identified
by
words
such
as
“may,”
“could,”
“believes,”
“estimates,”
“expects,”
“intends,”
“plans,”
“anticipate,”
“forecast,”
“outlook,”
“target,”
“likely,”
“considers” and other similar words.
Any
forward-looking
statements
involve
known
and
unknown
risks,
uncertainties,
assumptions
and
other
important factors that
could cause actual
results, performance,
events or outcomes
to differ
materially from
the
results,
performance,
events
or
outcomes
expressed
or
anticipated
in
these
statements,
many
of
which
are
beyond
our
control.
Such
forward-looking
statements
are
based
on
an
assessment
of
present
economic
and
operating conditions
using a
number of
best estimate
assumptions regarding
future events
and actions.
These
factors are difficult to accurately predict and may be beyond our control. Factors that could affect our results, our
announced plans, or an investment in our securities include,
but are not limited to:
●
●
●
governing such indebtedness;
●
our current
ABL Facility, on acceptable
terms, or
at all,
and our
ability to
comply with applicable
covenants
included in the
New ABL Facility
with Stanwell
and to
achieve the anticipated
benefits of the
Proposed
Transaction with Stanwell;
●
regulations,
including
our
ability
to
provide
applicable
surety
of
Curragh’s
ERC
under
the
Financial
Provisioning Scheme Act;
●
policies and
other barriers
to trade.
For example,
on April
2, 2025,
the U.S.
government announced
a
baseline 10% tariff
on certain
imports and higher
tariffs on
imports from
certain countries,
and on June
4, 2025, the
U.S. government increased tariffs on
steel imports to 50%.
These developments underscore
the risk and volatility in global supply chains, financial
markets and international trade policies;
Coronado Global Resources Inc.
●
unrest and wars,
as well as
risks related to
government actions with
respect to trade
agreements, treaties
or policies;
●
commodities, such
as diesel
fuel, steel,
explosives
and tires,
as the
result of
inflationary
pressures
or
otherwise;
●
developments;
●
arising from mining
activities, including
possible impacts
on global climate
issues, which
could result
in
increased regulation
of coal combustion
and GHG
emissions and
increased
costs associated
with coal
production and consumption, such as costs for
additional controls to reduce carbon dioxide emissions or
costs to purchase
emissions reduction credits
to comply with
future emissions
trading programs,
which
could significantly impact
our financial condition
and results of
operations, affect demand for
our products
or our securities and reduce our access to capital and
insurance;
●
one
or
more
of
our
major
customers,
including
customers
in
the
steel
industry,
and
key
suppliers/contractors, which
among other
adverse effects,
could lead
to reduced
demand for
our coal,
increased
difficulty
collecting
receivables
and
customers
and/or
suppliers
asserting
force
majeure
or
other reasons for not performing their contractual
obligations to us;
●
performance or otherwise;
●
●
produced, cause delay or suspend coal deliveries, or
increase the cost of operating our business;
●
●
●
●
●
●
arrangements with rail and port operators;
●
●
●
●
any
exposure
to
hazardous
substances
caused
by
our
operations,
as
well
as
any
environmental
contamination our properties may have or our operations
may cause;
●
regulations;
●
●
proprietary or confidential information about us, our customers
or other third parties;
Coronado Global Resources Inc.
●
require us to recognize impairment charges related to those assets;
●
●
impact our reported financial results; and
●
Factors,” set forth in Part II, Item 1A of this Quarterly Report
on Form 10-Q.
We
make
many
of
our
forward-looking
statements
based
on
our
operating
budgets
and
forecasts,
which
are
based upon
detailed assumptions.
While we
believe that
our assumptions
are reasonable,
we caution
that it
is
very difficult to
predict the impact
of known factors,
and it is
impossible for us
to anticipate all
factors that could
affect our actual results.
See Part I, Item
1A. “Risk Factors”
of our Annual Report
on Form 10-K for
the year ended December
31, 2024,
filed with
the SEC
and ASX
on February
19, 2025,
Part II,
Item 1A.
“Risk Factors”
of our
Quarterly Report
on
Form 10-Q for the quarterly period ended March 31, 2025, filed with the SEC and ASX on May 8,
2025, and Part
II, Item 1A.
“Risk Factors”
of our Quarterly
Report on
Form 10-Q for
the quarterly
period ended June
30, 2025,
filed with the
SEC and
ASX on
August 11
,
2025, for
a more complete
discussion of
the risks
and uncertainties
mentioned above
and for
discussion of
other risks
and uncertainties
we face
that could
cause actual
results to
differ materially from those expressed or implied by
these forward-looking statements.
All
forward-looking
statements
attributable
to
us
are
expressly
qualified
in
their
entirety
by
these
cautionary
statements, as well as others
made in this Quarterly Report on Form
10-Q and hereafter in our other
filings with
the
SEC
and
public
communications.
You
should
evaluate
all
forward-looking
statements
made
by
us
in
the
context of these risks and uncertainties.
We caution you that the risks and uncertainties identified by us may not be all of the factors that are important to
you. The
forward-looking
statements
included in
this
Quarterly Report
on Form
10-Q are
made only
as of
the
date hereof. We undertake no obligation to publicly update or revise any forward-looking statement as a
result of
new information, future events, or otherwise, except as required
by applicable law.
Results of Operations
How We Evaluate Our Operations
We
evaluate
our
operations
based
on
the
volume
of
coal
we
can
safely
produce
and
sell
in
compliance
with
regulatory standards,
and the
prices we
receive for
our coal.
Our sales
prices are
largely dependent
upon the
terms of our coal
sales contracts, for which prices
generally are set based
on daily index averages,
on a quarterly
basis or annual fixed price contracts.
Our management
uses a
variety of
financial and
operating metrics
to analyze
our performance.
These metrics
are significant factors
in assessing
our operating results
and profitability.
These financial
and operating metrics
include: (i) safety and environmental metrics; (ii) Adjusted EBITDA; (iii) total sales volumes and average realized
price
per
Mt
sold,
which
we
define
as
total
coal
revenues
divided
by
total
sales
volume;
(iv) Met
coal
sales
volumes and average realized Met price per
Mt sold, which we define as Met coal
revenues divided by Met coal
sales volume; (v) average
segment mining costs
per Mt sold,
which we define
as mining costs
divided by sales
volumes (excluding non-produced coal) for the respective segment; (vi) average segment operating costs
per Mt
sold, which we define as segment operating costs divided by sales volumes for the respective segment; and (vii)
net cash (or net
debt), which we define
as cash and
cash equivalents (excluding restricted cash)
less outstanding
aggregate principal amount of the Notes and other
interest-bearing liabilities.
Coal revenues are
shown in our
statement of operations
and comprehensive income
exclusive of other
revenues.
Generally, export
sale contracts on Free on Board,
or FOB, require us to bear the
cost of freight from our mines
to
the
applicable
outbound
shipping
port,
while
freight
costs
from
the
port
to
the
end
destination
are
typically
borne
by
the
customer.
Certain
export
sales
from
our
U.S.
Operations
are
recognized
when
title
to
the
coal
passes to
the customer
at the
mine load
out similar
to a
domestic sale.
For our
domestic sales,
customers typically
bear
the
cost
of
freight.
As
such,
freight
expenses
are
excluded
from
the
cost
of
coal
revenues
to
allow
for
consistency and comparability in evaluating our operating
performance.
Non-GAAP Financial Measures; Other Measures
The
following
discussion
of
our
results
includes
references
to
and
analysis
of
Adjusted
EBITDA,
Segment
Adjusted EBITDA and mining
costs, which are financial
measures not recognized in
accordance with U.S. GAAP.
Coronado Global Resources Inc.
Non-GAAP financial
measures, including
Adjusted EBITDA,
Segment Adjusted
EBITDA and
mining costs,
are
useful to our investors to measure our operating performance.
Non-GAAP financial measures are intended to provide additional information only and do not have any standard
meaning prescribed by U.S. GAAP.
These measures should not be considered
in isolation or as a substitute for
measures of performance prepared in accordance with
U.S. GAAP.
Adjusted EBITDA, a non-GAAP measure, is defined as earnings before interest, tax, depreciation, depletion and
amortization
and
other
foreign
exchange
losses.
Adjusted
EBITDA
is
also
adjusted
for
certain
discrete
non-
recurring items that we exclude in
analyzing each of our segments’
operating performance. Adjusted EBITDA
is
not intended
to serve
as an
alternative to
U.S. GAAP measures
of performance
including total
revenues, total
costs and expenses,
net income or
cash flows from
operating activities as
those terms are
defined by U.S.
GAAP.
Adjusted EBITDA may
therefore not be
comparable to
similarly titled measures
presented by other
companies.
A reconciliation of
Adjusted EBITDA to
its most
directly comparable measure
under U.S. GAAP is
included below.
Segment
Adjusted
EBITDA
is
defined
as
Adjusted
EBITDA
by
operating
and
reporting
segment,
adjusted
for
certain
transactions,
eliminations
or
adjustments
that
our
CODM
does
not
consider
for
making
decisions
to
allocate
resources
among
segments
or
assessing
segment
performance.
Adjusted
EBITDA
and
Segment
Adjusted EBITDA
are used
as supplemental
financial
measures by
management
and by
external users
of our
financial statements,
such as
investors, industry
analysts and
lenders, to
assess the
operating performance
of
our business.
Mining costs, a
non-GAAP measure, is
based on
reported cost of
coal revenues, which
is shown
on our
statement
of
operations
and
comprehensive
income
exclusive
of
freight
expense,
Stanwell
rebate,
other
royalties,
depreciation,
depletion
and
amortization,
and selling,
general and
administrative
expenses,
adjusted for
other
items that do not relate directly
to the costs incurred to produce
coal at a mine. Mining
costs exclude these cost
components as
our CODM
does not
view these
costs as
directly attributable
to the
production of
coal. Mining
costs
is
used
as
a
supplemental
financial
measure
by
management,
providing
an
accurate
view
of
the
costs
directly
attributable
to
the
production
of
coal
at
our
mining
segments,
and
by
external
users
of
our
financial
statements, such as
investors, industry analysts and
ratings agencies, to assess
our mine operating
performance
in comparison to the mine operating performance of other
companies in the coal industry.
About Coronado Global Resources Inc.
We
are
a
producer,
global
marketer
and
exporter
of
high-quality
Met
coal
products.
We
own
a
portfolio
of
operating mines and development
projects in Queensland, Australia,
and in the states of
Virginia, West Virginia
and Pennsylvania in the United States.
Our Australian
Operations
comprise the
100%-owned
Curragh producing
mine complex.
Our U.S.
Operations
comprise two 100%-owned producing
mine complexes (Buchanan and
Logan) and two development
properties
(Mon Valley
and Russell
County). In
addition to
Met coal,
our Australian
Operations sell
thermal coal,
which is
used to
generate
electricity,
domestically
to
Stanwell
and
in the
export
market.
Our
U.S. Operations
primarily
focus
on
the
production
of
Met
coal
for
the
North
American
domestic
and
seaborne
export
markets
and
also
produce and sell some thermal coal that is extracted in
the process of mining Met coal.
Overview
Our results
for the
three and
nine months
ended September
30,
2025, were
negatively
impacted as
Met
coal
markets
remained
subdued
through
the
quarter
amid
continued
softness
in
steel
demand
and
ample
global
supply.
However,
operational performance
continued to
improve, with
saleable production
surpassing the
prior
quarter.
In the third quarter of 2025, Met coal spot prices remained
broadly stable relative to the second quarter of 2025,
with the Australian Premium
Low Volatile
Hard Coking Coal index,
or AUS PLV
HCC, averaging $183.5 per
Mt,
slightly
lower
than
the
prior
quarter.
This
flat
to
slightly
softer
pricing
reflected
continued
weak
steel-sector
demand,
particularly
from
China,
where
output
curbs
and
property-sector
softening
weighed
on
coking-coal
imports,
combined
with
ample
supply
and
high
inventory
levels
globally.
With
no
major
supply
disruptions
emerging in
the third
quarter of
2025, and
shipping and
logistics functioning
smoothly,
the market
continued to
favor buyers rather than sellers, limiting upward price momentum
.
Although coal
markets remained
unfavorable, our
operations continued
to perform
strongly in
the third
quarter
compared
to
the
second
quarter
of
2025,
delivering
higher
quarter-on-quarter
run-of-mine,
or
ROM,
coal
production, saleable production and sales volumes.
Saleable
production
for
the
three
and
nine
months
ended
September
30,
2025,
was
4.5
MMt
and
11.7
MMt,
respectively,
0.7 MMt and
0.3 MMt higher
compared to the
three and nine
months ended September
30, 2024,
respectively.
Improved
production
was
supported
by
higher
equipment
utilization,
enhanced
owner-operated
Coronado Global Resources Inc.
fleets
at
our
open
cut
mine
and
continued
ramp
up
of
our
Mammoth
underground
mine
at
our
Australian
Operations, partially offset by lower
output from our U.S. Operations following
temporary idling of surface mines
and lower than expected yields.
Despite
strong saleable
production,
our sales
volume
of 11.1
MMt
for the
nine
months
ended
September
30,
2025, was
0.7 MMt
lower than
the same
period in
2024. The
decrease was
primarily driven
by (1)
lower production
at our
U.S. Operations,
a product
of temporary
idling of
surface mines
and lower
yields, (2)
rail, port
and pier
constraints
at
our
U.S.
Operations
and
co-shipment
scheduling
delays
at
our
Australian
Operations,
which
together resulted in
the deferral of
five vessels
into October 2025,
and (3)
significant port
inventory built by
our
Australian Operations in December 2023, due to port constraints, which was shipped in the first
quarter of 2024.
Coal
revenues
of
$1,377.5
million
for
the
nine
months
ended
September
30,
2025,
decreased
$520.6
million
compared to
the same
period in
2024, driven
by lower
sales volumes,
and average
realized Met
prices, which
were $43.2 per Mt lower than during the nine months
ended September 30, 2024.
Mining
costs
for
the
nine
months
ended
September
30,
2025
were
$200.3
million
lower
compared
to
the
corresponding period in 2024, primarily driven
by cost savings from reduction in
contractor fleets, which occurred
progressively since March 2024, and associated
costs, favorable average foreign exchange rates
on translation
of the
Australian Operations
for the
nine months
ended September
30, 2025,
and temporary
idling of
Logan’s
surface mine at our U.S. Operations. Mining costs per Mt sold were $97.6 for the nine months ended September
30, 2025,
which was $13.4 per Mt
lower than during the nine
months ended September 30, 2024,
driven by lower
mining costs, partially offset by lower sales volume
of 0.6 MMt.
Liquidity and Going Concern
As of September
30, 2025, Coronado had
cash and cash equivalents
(excluding restricted cash) of
$171.8 million
and $15.5 million of undrawn capacity under the ABL
Facility.
Our net debt of $328.0 million as of
September 30,
2025 comprised
of
$499.8
million
of aggregate
principal
amount
of
interest-bearing
liabilities
outstanding
less
cash and cash equivalents (excluding restricted cash).
On
June
30,
2025,
S&P
downgraded
the
Company’s
credit
rating
from
‘B-‘
to
‘CCC+’
and,
on
July
7,
2025,
Moody’s downgraded the Company’s credit
rating from ‘Caa1’
to ‘Caa2’, both
of which resulted
in a Review
Event
under the ABL Facility. On
July 9, 2025, we successfully negotiated with the Lender,
who confirmed no changes
to the terms or the availability of the ABL Facility,
thereby, concluding
each of the Review Events.
On September 29,
2025, we entered
into an agreement
with the Administrative
Agent under the
ABL Facility to
waive compliance with applicable financial covenants as
at September 30, 2025, and
reset the conditions related
to credit rating downgrades
such that a review
event, default or
event of default
would not occur under
the ABL
Facility due to
a one notch
downgrade to the
Company’s credit
rating by
S&P or
Moody’s as
at September
29,
2025 (however an
event of default
will occur
if there is
a further two
or more notches
downgrade to the
Company’s
credit rating by S&P
or Moody’s as at September 29,
2025). The requirements to comply
with financial covenants
beyond September 30, 2025 remained unchanged.
As the outlook for Met coal markets remains uncertain, continued low or a further deterioration in
Met coal prices
and our inability
to achieve
production forecasts,
due to factors
beyond our
control, could
lead to an
inability to
fund short-term
working capital
movements, further
operating losses
and negative
operating cash
flows for
the
remainder
of 2025
and
into
2026,
which,
combined
with
other
factors,
could
impact
our
ability
to comply
with
financial covenants under the ABL Facility on and beyond December
31, 2025.
Non-compliance with financial covenants or
a potential further two
or more notches downgrade
to the Company’s
credit rating by
S&P or Moody’s
may result in
an Event of
Default under the
ABL Facility and,
unless the Event
of Default
is cured
or
a waiver
is obtained,
could
also
trigger
a cross
-default
under
the
Indenture
(as
defined
below) governing our Notes.
On October 28, 2025, the Company announced the Proposed Transaction with Stanwell that intends to enhance
the Company’s short and long-term financial
viability.
The
Proposed
Transaction,
which
remains
non-binding
and
subject
to
completion
of
due
diligence,
definitive
documents
and
required
external
approvals,
include
(1)
Stanwell
providing
a
$265.0
million
financing
facility
replacing
the
existing
ABL
Facility,
(2)
Stanwell
waiving
the
remaining
rebate
payments
under
the
ACSA,
(3)
extension of the NCSA from 2037
to 2043, (4) Stanwell will make additional
prepayments in relation to its future
annual contract tonnage
under the ACSA
and NCSA, which
will bear interest
and be settled through
delivery of
coal to
Stanwell in
months when
the Company’s
liquidity exceeds
$300.0 million,
(5) change
of control
events
triggering
repayment
of
the
rebate
waived
and
(6)
minimum
liquidity
requirements
to
declare
distributions
to
shareholders.
Coronado Global Resources Inc.
In addition
to the
Proposed Transaction, we
continue to pursue
a number
of initiatives
intended to
improve liquidity
including, among other things, further operating and capital cost control measures, potential other debt and non-
debt funding measures, and whole or partial asset sales.
While management believes that the Proposed Transaction, if entered
into and once completed, would enhance
the Company’s
liquidity,
the vast
majority of the
potential funding
under the arrangement
is delivered over
time
and not upfront,
and does not
eliminate uncertainties in
relation to the
Company’s future financial
performance,
including the our
ability to achieve
production targets
and manage working
capital fluctuations
that are material
at times
depending on
circumstances (production
and inventory
levels), due
to events
and factors
beyond our
control, and sustained weakness in Met coal market and consequential
realized Met coal prices.
Accordingly, we concluded that
substantial doubt exists
regarding our ability
to continue as
a going
concern within
one year after the date of the accompanying Condensed
Consolidated Financial Statements.
Safety
For
our
Australian
Operations,
the
twelve-month
rolling
average
Total
Reportable
Injury
Frequency
Rate
at
September
30,
2025,
was
2.88,
compared
to
a
rate
of
2.22
at
the
end
of
December
31,
2024.
At
our
U.S.
Operations, the twelve-month
rolling average Total
Reportable Incident Rate
at September 30,
2025, was 1.95,
compared to a rate of 2.21 at the end of December 31,
2024.
The
health
and
safety
of
our
workforce
is
our
number
one
priority
and
we
remain
focused
on
the
safety
and
wellbeing of
all employees
and contracting
parties. Coronado
continues to
implement safety
initiatives with
the
goal of improving our safety rates every quarter.
Segment Reporting
In accordance with ASC
280, Segment Reporting, we
have adopted the following
reporting segments: Australia
and
the
United
States.
In
addition,
“Other
and
Corporate”
is
not
a
reporting
segment
but
is
disclosed
for
the
purposes of reconciliation to our consolidated financial
statements.
Three Months Ended September 30, 2025 Compared
to Three Months Ended September 30, 2024
Summary
The financial and operational summary for the three months
ended September 30, 2025 includes:
●
higher compared to a net
loss of $102.8 million
for the three months ended
September 30, 2024, which
was primarily
driven by
lower operating
costs including
the impact
of a
build in
coal inventories
due to
higher
saleable
production
exceeding
slightly
higher
sales
volumes,
partially
offset
by
lower
average
realized prices.
●
$31.0
per
Mt
sold
lower
compared
to
$179.6
per
Mt
sold
for
the
same
period
in
2024,
reflecting
a
downward trend since September 30,
2024, due to lower restocking by Chinese
mills and oversupply of
steel, resulting in reduced Met coal demand from key steel-producing regions,
particularly in Europe and
Asia.
●
to the
same period
in 2024,
while saleable
production was
0.7 MMt
higher,
largely driven
by improved
performance at our
Australian Operations, supported by
higher equipment utilization and
enhanced open
cut output from owner-operated fleets. Higher saleable production volumes did not result in higher
sales
volumes to
the same
extent due
to rail,
port and
pier constraints which
resulted in
deferral of
three vessels
into October 2025 at our U.S.
Operations, as well as co-shipper
delays which caused two vessels
to be
deferred to October 2025 at our Australian Operations.
●
million higher compared to an Adjusted EBITDA loss of $19.1 million for the same period in 2024. Lower
coal sales revenues were largely offset by lower operating costs, including a significant
build in saleable
coal inventories.
●
cash) of $171.8 million and $15.5 million of undrawn capacity
under the ABL Facility.
Coronado Global Resources Inc.
Three months ended
September 30,
2025
2024
Change
%
(in US$ thousands)
Revenues:
Coal revenues
$
476,670
$
600,703
$
(124,033)
Other revenues
5,457
7,512
(2,055)
Total
revenues
482,127
608,215
(126,088)
Costs and expenses:
Cost of coal revenues (exclusive of items
shown separately below)
360,588
466,113
(105,525)
Depreciation, depletion and amortization
49,198
45,559
3,639
Freight expenses
71,723
66,126
5,597
Stanwell rebate
26,331
25,391
940
Other royalties
38,690
63,020
(24,330)
Selling, general, and administrative expenses
7,541
9,174
(1,633)
Total
costs and expenses
554,071
675,383
(121,312)
Other income (expenses):
Interest expense, net
(29,443)
(15,808)
(13,635)
(Increase) decrease in provision for
credit losses
(2,836)
(43)
(2,793)
Other, net
460
(19,749)
20,209
Total
other expenses, net
(31,819)
(35,600)
3,781
Net loss before tax
(103,763)
(102,768)
(995)
Income tax (expense) benefit
(5,707)
31,771
(37,478)
Net loss attributable to Coronado Global
Resources, Inc.
$
(109,470)
$
(70,997)
$
(38,473)
Coal Revenues
Coal revenues were
$476.7 million for
the three months
ended September 30,
2025, a
decrease of $124.0
million,
compared
to
$600.7
million
for
the
three
months
ended
September
30,
2024.
This
decrease
was
primarily
attributable to lower average realized Met
coal prices and a sales mix
which was weighted more towards
export
thermal volumes
as our
Australian Operations
experienced reliability
issues with
the coal
handling preparation
plant, or CHPP,
and bypassed raw coal to manage cash flows.
Cost of Coal Revenues (Exclusive of Items Shown
Separately Below)
Cost of coal
revenues consists
of costs
related to produced
tons sold,
along with
changes in
both the volumes
and carrying values of coal inventory. Cost of coal revenues includes items such as direct operating
costs, which
includes employee-related costs,
materials and
supplies, contractor services,
coal handling
and preparation costs
and production taxes.
Total
cost of coal revenues
was $360.6 million for the
three months ended September
30, 2025, $105.5 million,
or 22.6% lower, compared to
$466.1 million for the three months ended September
30, 2024.
Cost of coal revenues for our Australian Operations for the three months ended September 30, 2025, was $57.8
million lower
compared
to the
same period
in 2024,
primarily
driven by
higher inventory
build due
to saleable
production exceeding
sales volume,
lower coal
purchases
and a
favorable average
foreign exchange
rates on
translation
of
the
Australian
Operations
for
the
three
months
ended
September
30,
2025,
of
A$/US$
0.65
compared to 0.67 for the same period in 2024.
Cost of coal
revenues for our
U.S. Operations for the
three months ended September
30, 2025, was $47.7
million
lower compared
to the three
months ended
September 30,
2024, mainly
due to the
temporary idling
of surface
mining at Logan beginning in March 2025 and reduced well drilling at Buchanan, and inventory build as saleable
production exceeded
sales volume
due to
rail, port
and pier
constraints during the
three months
ended September
30, 2025.
Coronado Global Resources Inc.
Depreciation, Depletion and Amortization
Depreciation, depletion and amortization
was $49.2 million for the
three months ended September
30, 2025, an
increase of $3.6
million, compared to
$45.6 million for
the three months
ended September 30,
2024. The increase
was associated
with equipment brought
into service
during the twelve
months since September
30, 2024,
partially
offset by a favorable average foreign exchange rate
s
on translation of the Australian Operations.
Freight Expenses
Freight expenses
relate to
costs associated
with rail
and port
providers, including
take-or-pay commitments
at
our Australian Operations,
and demurrage costs.
Freight expenses
were $71.7 million
for the three
months ended
September 30,
2025, an
increase of
$5.6 million,
compared to
$66.1 million
for the
same period
in 2024.
Our
Australian Operations contributed $8.2 million
of the increase, driven by higher export
sales volume and greater
volumes shipped through Wiggins Island Coal Export Terminal, or WICET,
which incurs higher port and handling
charges, partially offset by lower coal sales
under under Free on Board (FOB) terms at our U.S. Operations.
Other Royalties
Other royalties
were $38.7
million in the
three months
ended September
30, 2025,
a decrease
of $24.3
million
compared
to
$63.0
million
for
the
three
months
ended
September
30,
2024,
driven
by
lower
coal
revenues
coupled with a favorable foreign exchange rate on translation
of our Australian Operations.
Interest expense, net
Interest expense,
net was
$29.4 million
for the
three months
ended September
30, 2025,
an increase
of $13.6
million compared to
$15.8 million for the
three months ended
September 30, 2024.
The increase was
driven by
higher average
indebtedness,
due to
additional
borrowings under
the Notes,
ABL Facility,
insurance
premium
financing, and coal
prepayment facility combined
with lower interest
income on cash
equivalents and
restricted
deposits during the three months ended September 30,
2025, compared to the same period in 2024.
Other, net
Other,
net for
the three
months
ended September
30, 2025,
was
positive $0.5
million, an
improvement of
$20.2 million compared to a loss of $19.7 million for the three months ended
September 30, 2024. The decrease
was largely
driven by
an impairment
charge of
$10.6 million
recognized against
property,
plant and
equipment
relating to a long-standing,
non-core, idled asset sold within our U.S. Operations
during the three months ended
September 30, 2024, and lower exchange losses on translation
of short-term inter-entity balances.
Income Tax Expense (Benefit)
Income
tax
expense
was
$5.7
million
for
the
three
months
ended
September
30,
2025,
a
decrease
of
$37.5
million compared to an income tax benefit of $31.8 million for the
three months ended September 30, 2024. The
decrease
in
income
tax
expense
was
the
result
of
an
effective
tax
rate
of
7.7%
for
the
nine
months
ended
September 30, 2025, compared to
an effective tax rate of
34.2% for the nine months
ended September 30, 2024.
Coronado Global Resources Inc.
Nine months ended September 30, 2025 compared to
Nine months ended September 30, 2024
Summary
The financial and operational summary for the nine months
ended September 30, 2025 includes:
●
compared to a net
loss of $54.8 million
for the nine months
ended September 30,
2024. The higher net
loss was a result of
lower coal revenues and
higher interest expense,
partially offset by lower
operating
costs.
●
$43.2 per
Mt lower
compared to
$192.6 per
Mt sold
for the
same period
in 2024.
The AUS
PLV
HCC
index averaged $184.2 per Mt for the nine months ended September 30,
2025, a decline of $68.9 per Mt
compared to the same period in
2024. This decrease primarily reflected persistent softness in
global Met
coal markets, driven by ongoing oversupply from major exporters, including Australia and Russia. Lower
steel
production
and
restocking
activity
in
key
Asian
markets,
particularly
China
and
India,
further
contributed to weaker demand and downward pressure on prices.
●
compared to
the nine
months ended September
30, 2024.
The decrease was
primarily driven by
(1) lower
production at
our U.S.
Operations, due
to temporary
idling of
a surface
mine and
lower yields,
(2) rail,
port
and
pier
constraints
at
our
U.S.
Operations
and
co-shipper
scheduling
delays
at
our
Australian
Operations,
which
resulted
in
a
total
of five
vessels
delayed
to
October
2025,
and
(3)
significant
port
inventory built by our Australian Operations in December
2023, which was shipped in the first quarter
of
2024.
●
million lower compared
to an income
of $116.3
million for the
nine months ended
September 30, 2024.
This decrease was primarily due to lower coal revenues
partially offset by lower operating costs.
●
cash
equivalents
(excluding
restricted
cash)
of
$171.8
million
and
$499.8
million
aggregate
principal
amounts of interest-bearing liabilities outstanding.
Coronado Global Resources Inc.
Nine months ended
September 30,
2025
2024
Change
%
(in US$ thousands)
Revenues:
Coal revenues
$
1,377,458
$
1,898,075
$
(520,617)
(27.4%)
Other revenues
21,796
52,117
(30,321)
(58.2%)
Total
revenues
1,399,254
1,950,192
(550,938)
(28.3%)
Costs and expenses:
Cost of coal revenues (exclusive of items
shown separately below)
1,090,511
1,311,377
(220,866)
(16.8%)
Depreciation, depletion and amortization
135,227
142,171
(6,944)
(4.9%)
Freight expenses
194,617
183,652
10,965
6.0%
Stanwell rebate
70,115
83,293
(13,178)
(15.8%)
Other royalties
118,057
235,605
(117,548)
(49.9%)
Selling, general, and administrative expenses
23,474
26,635
(3,161)
(11.9%)
Total
costs and expenses
1,632,001
1,982,733
(350,732)
(17.7%)
Other income (expenses):
Interest expense, net
(68,305)
(42,253)
(26,052)
61.7%
Loss on debt extinguishment
(1,050)
—
(1,050)
100.0%
Decrease in provision for discounting and
credit losses
(3,649)
157
(3,806)
(2,424.2%
)
Other, net
219
(8,643)
8,862
(102.5%)
Total
other expenses, net
(72,785)
(50,739)
(22,046)
43.4%
Net loss before tax
(305,532)
(83,280)
(222,252)
266.9%
Income tax benefit
23,661
28,482
(4,821)
(16.9%)
Net loss attributable to Coronado Global
Resources, Inc.
$
(281,871)
$
(54,798)
$
(227,073)
414.4%
Coal Revenues
Coal
revenues
were
$1,377.5
million
for
the
nine
months
ended
September
30,
2025,
a
decrease
of
$520.6
million, compared to $1,898.1 million for
the nine months ended September
30, 2024. The decrease was
driven
by lower average Met coal realized prices
and lower sales volumes.
Other Revenues
Other revenues were $21.8
million for the nine
months ended September 30,
2025, a decrease
of $30.3 million
compared to
$52.1 million
for the
nine months
ended September
30, 2024.
The decrease
was primarily
driven
by a non-recurring termination fee revenue from a coal sales contract cancelled in the first quarter of 2024 at our
U.S. Operations.
Cost of Coal Revenues (Exclusive of Items Shown
Separately Below)
Total
cost of coal revenues was
$1,090.5 million for the nine
months ended September 30, 2025,
a decrease of
$220.9 million, compared to $1,311.4
million for the nine months ended September
30, 2024.
Cost of coal revenues for our Australian Operations for the nine months
ended September 30, 2025, was $178.3
million lower compared to the same period
in 2024, primarily driven by cost savings
from reduction in contractor
fleets since March 2024 and associated costs, inventory build due to higher saleable production and lower sales
volume
compared
to
an
inventory
drawdown
in
2024,
lower
coal
purchases
and
a
favorable
average
foreign
exchange rate
on translation
of our
Australian Operations
for the
nine months
ended
September
30, 2025,
of
A$/US$: 0.64 compared to 0.66 for the same period in
2024.
Cost of coal revenues for our U.S. Operations for
the nine months ended September 30, 2025, was $42.6 million
lower compared
to the
same period
in 2024,
driven by
the temporary idling
of the
surface mines at
Logan, reduced
sections and well
drilling activity
at Buchanan,
lower coal purchases
combined with
higher inventory
build, with
saleable production exceeding sales volume, compared
to the corresponding period in 2024.
Coronado Global Resources Inc.
Depreciation, Depletion and Amortization
Depreciation, depletion
and amortization
was $135.2
million for the
nine months
ended September 30,
2025, a
decrease of
$6.9 million,
as compared
to $142.2
million for
the nine
months ended
September
30, 2024.
The
decrease
was
associated
with
changes
to
depreciation
rates
following
our
annual
useful
life
review
at
the
beginning
of
2025
and
favorable
average
foreign
exchange
rates
on
translation
of
the
Australian
Operations,
partially offset by the equipment brought into service
during the twelve months since September 30, 2024.
Freight Expenses
Freight expenses
totaled $194.6
million for
the nine
months ended
September 30,
2025, an
increase of
$11.0
million
compared
to
$183.6
million
for
the
nine
months
ended
September
30,
2024.
Freight
expenses
for
our
Australian Operations
increased by
$18.6 million
due to
higher export
sales volumes
shipped through
WICET,
which has higher port handling charges and higher take-or-pay deficit tonnage costs. This was partially offset
by
a $5.0 million reduction
in freight costs
at our U.S.
Operations due to
lower coal sales
under FOB terms
compared
to the nine months ended September 30, 2024.
Stanwell Rebate
The
Stanwell
rebate
was
$70.1
million
for
the
nine
months
ended
September
30,
2025,
a
decrease
of
$13.2
million
compared
to
$83.3
million
for
the
nine
months
ended
September
30,
2024.
The
decrease
was
due
to
lower export
sales volume,
lower realized
reference coal
pricing used
to calculate
the rebate
compared to
the
same period in 2024 and favorable average foreign exchange
rates on translation of the Australian Operations.
Other Royalties
Other royalties were $118.1 million for the
nine months ended September 30,
2025,
a decrease of $117.5 million,
as
compared
to
$235.6
million
for
the
nine
months
ended
September
30,
2024,
due
to
lower
coal
revenues
combined with favorable average exchange rates on translation
of the Australian Operations.
Interest expense, net
Interest
expense,
net
was
$68.3
million
in the
nine
months
ended
September
30,
2025,
an
increase of
$26.1
million as
compared to
$42.2 million
for the
nine months
ended September
30, 2024.
The increase
was driven
by higher
indebtedness due
to additional
borrowings under
the Notes, ABL
Facility, Curragh Housing Transaction,
insurance
premium
financing
and
coal
prepayment
facility
combined
with
lower
interest
income
on
cash
equivalents and restricted
deposits during the
nine months
ended September
30, 2025, compared
to the same
period in 2024.
Other, net
Other,
net was
a gain
of $0.2
million for
the nine
months ended
September 30,
2025, an
improvement of
$8.9
million compared
to a
loss
of $8.6
million
for the
nine
months
ended
September
30, 2024.
The
increase
was
largely driven by
an impairment charge
of $10.6 million
recognized against property, plant and equipment
relating
to
a
long-standing,
non-core,
idled
asset
sold
within
our
U.S.
Operations
during
the
nine
months
ended
September
30,
2024,
and
lower
foreign
exchange
losses
on
translation
of
short-term
inter-entity
balances
between certain entities within
the group that are
denominated in currencies other than
their respective functional
currencies.
Income Tax Benefit
Income tax
benefit of
$23.7 million
for the
nine months
ended September
30, 2025,
decreased by
$4.8 million,
compared to income tax benefit of $28.5 million for the nine months ended September 30, 2024, primarily driven
by an effective tax rate of 7.7% for the nine months
ended September 30, 2025.
In calculating the annual effective tax rate for
the Group:
●
forward losses, a full valuation allowance was included
as part of the annual effective tax rate
calculation, thereby reducing the rate to nil.
●
deferred tax assets
was assessed and
as a result
a partial valuation
allowance was included
as part of
the annual effective tax rate, thereby reduci
ng the annual effective tax rate to 7.7%.
Coronado Global Resources Inc.
Supplemental Segment Financial Data
Three months ended September 30, 2025 compared to
three months ended September 30, 2024
Australia
Three months ended
September 30,
2025
2024
Change
%
(in US$ thousands)
Sales volume (MMt)
2.8
2.4
0.4
14.2%
Total
revenues ($)
300,317
365,953
(65,636)
(17.9)%
Coal revenues ($)
294,872
358,652
(63,780)
(17.8)%
Average realized price per Mt sold ($/Mt)
107.0
148.6
(41.6)
(28.0)%
Met coal sales volume (MMt)
1.8
1.7
0.1
2.9%
Met coal revenues ($)
257,752
334,594
(76,842)
(23.0)%
Average realized Met price per Mt sold ($/Mt)
145.1
193.8
(48.7)
(25.1)%
Mining costs ($)
240,470
290,121
(49,651)
(17.1)%
Mining cost per Mt sold ($/Mt)
87.3
122.8
(35.5)
(28.9)%
Operating costs ($)
348,156
418,335
(70,179)
(16.8)%
Operating costs per Mt sold ($/Mt)
126.4
173.3
(46.9)
(27.1)%
Segment Adjusted EBITDA ($)
(47,881)
(51,978)
4,097
(7.9)%
Coal revenues for our Australian Operations decreased largely due to an average realized Met
coal price per Mt
sold, which was $48.7 per
Mt lower compared to the same
period in 2024,
and a sales mix which
was weighted
more towards export thermal volumes
as we experienced reliability issues
with the CHPP and
bypassed raw coal
to manage cash flows, partially offset by higher
Met sales volume.
Operating
costs
decreased
by
$70.2
million,
or
16.8%,
for
the
three
months
ended
September
30,
2025,
compared to the
three months ended
September 30, 2024,
driven by lower
other royalties,
resulting from lower
realized
prices,
and
lower
mining
costs.
Mining
costs
were
$49.7
million
lower
for
the
three
months
ended
September 30, 2025 compared to the same
period in 2024, largely a result of an
inventory build due to saleable
production
exceeding
sales
volumes,
compared
to
an
inventory
drawdown
in
2024,
and
a
favorable
average
foreign exchange rates on translation of our Australian Operations. Mining and Operating costs per Mt sold were
$35.5 and $46.9
lower, respectively,
attributable to lower
mining and operating
costs and 0.4
MMt higher sales
volume for the three months ended September 30, 2025
compared to the same period in 2024.
Segment
Adjusted
EBITDA
loss
of
$47.9
million
for
the
three
months
ended
September
30,
2025,
was
$4.1
million,
or
7.9%,
lower
compared
to
a
loss
of
$52.0
million
for
the
three
months
ended
September
30,
2024,
largely driven by lower operating costs, partially offset
by lower coal revenues.
Coronado Global Resources Inc.
United States
Three months ended
September 30,
2025
2024
Change
%
(in US$ thousands)
Sales volume (MMt)
1.2
1.5
(0.3)
(17.7)%
Total
revenues ($)
181,810
242,262
(60,452)
(25.0)%
Coal revenues ($)
181,798
242,051
(60,253)
(24.9)%
Average realized price per Mt sold ($/Mt)
145.8
159.8
(14.0)
(8.8)%
Met coal sales volume (MMt)
1.1
1.5
(0.4)
(22.7)%
Met coal revenues ($)
173,523
237,101
(63,578)
(26.8)%
Average realized Met price per Mt sold ($/Mt)
154.2
162.8
(8.6)
(5.3)%
Mining costs ($)
118,515
166,210
(47,695)
(28.7)%
Mining cost per Mt sold ($/Mt)
95.0
109.7
(14.7)
(13.4)%
Operating costs ($)
149,176
202,315
(53,139)
(26.3)%
Operating costs per Mt sold ($/Mt)
119.6
133.6
(14.0)
(10.5)%
Segment Adjusted EBITDA ($)
32,879
41,628
(8,749)
(21.0)%
Coal revenues
for our
U.S.
Operations decreased
by $60.3
million, largely
attributable
to an
average realized
Met coal price which
was $14.0 per Mt
lower compared to
the three months ended
September 30, 2024, driven
by unfavorable
market conditions and
lower fixed
prices achieved
from annual
domestic price
contracts compared
to 2024. Coal revenues were also impacted by
lower sales volume of 0.3 MMt due
to lower production yields, the
temporary idling
of surface
mines at
Logan, and
rail, port
and pier
constraints which
resulted in
the deferral
of
three vessels into October 2025.
Operating costs were
$53.1 million lower
for the three
months ended September 30,
2025, compared to
the same
period in 2024, driven by lower mining costs a result
of temporary idling of surface mine operations at Logan and
reduced well
drilling at
Buchanan, and
a higher
build in
inventory as
lower sales
volumes, caused
by port,
rail
and
pier
constraints,
exceeded
lower
production
during
the
three
months
ended
September
30,
2025
when
compared to the
same period in
2024. Mining and
Operating costs per
Mt sold were
lower by $14.7
and $14.0,
respectively, attributable
to lower mining and operating costs, partially offset
by lower sales volume.
Segment Adjusted
EBITDA was
$32.9 million
for the
three months
ended September
30, 2025,
a decrease
of
$8.7 million compared to $41.6 million for
the three months ended September 30, 2024, primarily driven
by lower
coal revenues,
partially offset by lower operating costs.
Corporate and Other Adjusted EBITDA
The following table presents a summary of the components
of Corporate and Other Adjusted EBITDA:
Three months ended
September 30,
2025
2024
Change
%
(in US$ thousands)
Selling, general, and administrative expenses
$
7,541
$
9,174
$
(1,633)
(17.8)%
Other, net
(4)
(401)
397
(99.0)%
Total
Corporate and Other Adjusted EBITDA
$
7,537
$
8,773
$
(1,236)
(14.1)%
Corporate and other costs
of $7.5 million for
the three months ended September
30, 2025, was $1.2 million
lower
compared
to
the
three
months
ended
September
30,
2024
due
to cost
savings
initiatives
implemented
at
the
corporate level, partially offset by costs incurred
to pursue various initiatives to improve liquidity.
Coronado Global Resources Inc.
Mining
and
operating
costs
for
the
three
months
ended
September
30,
2025
compared
to
three
months ended September 30, 2024
A reconciliation of
segment costs and
expenses, segment operating
costs, and segment
mining costs is
shown
below:
Three months ended September 30, 2025
(in US$ thousands)
Australia
United
States
Other /
Corporate
Total
Consolidated
Total costs and
expenses
$
370,733
$
175,232
$
8,106
$
554,071
Less: Selling, general and administrative
expense
(4)
—
(7,537)
(7,541)
Less: Depreciation, depletion and amortization
(22,573)
(26,056)
(569)
(49,198)
Total operating costs
348,156
149,176
—
497,332
Less: Other royalties
(30,035)
(8,655)
—
(38,690)
Less: Stanwell rebate
(26,331)
—
—
(26,331)
Less: Freight expenses
(49,717)
(22,006)
—
(71,723)
Less: Other non-mining costs
(1,603)
—
—
(1,603)
Total mining costs
240,470
118,515
—
358,985
Sales Volume excluding non-produced
coal
(MMt)
2.8
1.2
—
4.0
Mining cost per Mt sold ($/Mt)
87.3
95.0
—
89.7
Three months ended September 30, 2024
(in US$ thousands)
Australia
United
States
Other /
Corporate
Total
Consolidated
Total costs and
expenses
$
438,184
$
227,466
$
9,733
$
675,383
Less: Selling, general and administrative
expense
(12)
—
(9,162)
(9,174)
Less: Depreciation, depletion and amortization
(19,837)
(25,151)
(571)
(45,559)
Total operating costs
418,335
202,315
—
620,650
Less: Other royalties
(51,567)
(11,453)
—
(63,020)
Less: Stanwell rebate
(25,391)
—
—
(25,391)
Less: Freight expenses
(41,474)
(24,652)
—
(66,126)
Less: Other non-mining costs
(9,782)
—
—
(9,782)
Total mining costs
290,121
166,210
—
456,331
Sales Volume excluding non-produced
coal
(MMt)
2.4
1.5
—
3.9
Mining cost per Mt sold ($/Mt)
122.8
109.7
—
117.7
Average realized Met price per
Mt sold for the three months
ended September 30, 2025
compared to
three months ended September 30, 2024
A reconciliation of the Company’s average realized
Met price per Mt sold is shown below:
Three months ended
September 30,
2025
2024
Change
%
(in US$ thousands)
Met coal sales volume (MMt)
2.9
3.2
(0.3)
(8.8)%
Met coal revenues ($)
431,275
571,695
(140,420)
(24.6)%
Average realized Met price per Mt sold ($/Mt)
148.6
179.6
(31.0)
(17.3)%
Coronado Global Resources Inc.
Nine months ended September 30, 2025 compared to
Nine months ended September 30, 2024
Australia
Nine months ended
September 30,
2025
2024
Change
%
(in US$ thousands)
Sales volume (MMt)
7.2
7.6
(0.4)
(5.2)%
Total
revenues ($)
833,439
1,260,549
(427,110)
(33.9)%
Coal revenues ($)
812,433
1,235,746
(423,313)
(34.3)%
Average realized price per Mt sold ($/Mt)
112.4
162.0
(49.6)
(30.6)%
Met coal sales volume (MMt)
5.0
5.5
(0.5)
(10.0)%
Met coal revenues ($)
738,442
1,172,404
(433,962)
(37.0)%
Average realized Met price per Mt sold ($/Mt)
148.4
212.2
(63.8)
(30.0)%
Mining costs ($)
661,736
826,880
(165,144)
(20.0)%
Mining cost per Mt sold ($/Mt)
91.5
109.6
(18.1)
(16.5)%
Operating costs ($)
957,996
1,245,737
(287,741)
(23.1)%
Operating costs per Mt sold ($/Mt)
132.5
163.3
(30.8)
(18.9)%
Segment Adjusted EBITDA ($)
(122,925)
16,377
(139,302)
(850.6)%
Coal revenues for our
Australian Operations for the nine
months ended September 30,
2025, were $423.3 million
lower compared
to the
nine months
ended September
30, 2024.
The decrease
was driven
by the
average realized
Met coal price being $63.8
per Mt lower and a
sales mix which was weighted toward
thermal coal.
Coal revenues
were further impacted
by sales volumes
being 0.4 MMt
lower driven by
the delay caused
by co-shippers of
two
vessels into
October 2025
and partially
offset by
the sale
of port
inventory built
in December
2023 due
to port
constraints, which were shipped in the first quarter
of 2024.
Operating costs decreased
by $287.7 million
driven by lower
mining costs and
lower Stanwell rebate
and other
royalties, resulting
from lower
realized prices
and lower
coal revenues.
Mining costs
were $165.1
million lower
for the nine months ended September
30, 2025, primarily driven by cost
savings from reduced contractors’
fleet
costs since March 2024, higher inventory build as a
result of higher saleable production and lower sales
volume
and
favorable
foreign
exchange
rate
on
translation
of
our
Australian
Operations
for
the
nine
months
ended
September 30, 2025 compared to
the same period in 2024.
Mining and Operating costs
per Mt sold were $18.1
and $30.8 lower, respectively,
compared to the nine months ended September 30, 2024.
Segment Adjusted
EBITDA decreased
from $16.4
million for
the nine
months ended
September 30,
2024 to
a
loss of $122.9 million for the nine months ended September 30, 2025 due to lower coal revenues, partially offset
by lower operating costs.
United States
Nine months ended
September 30,
2025
2024
Change
%
(in US$ thousands)
Sales volume (MMt)
3.9
4.1
(0.2)
(4.9)%
Total
revenues ($)
565,815
689,643
(123,828)
(18.0)%
Coal revenues ($)
565,025
662,329
(97,304)
(14.7)%
Average realized price per Mt sold ($/Mt)
145.1
161.8
(16.7)
(10.6)%
Met coal sales volume (MMt)
3.6
3.9
(0.3)
(7.6)%
Met coal revenues ($)
541,663
640,488
(98,825)
(15.4)%
Average realized Met price per Mt sold ($/Mt)
150.8
164.8
(14.0)
(8.8)%
Mining costs ($)
424,134
459,316
(35,182)
(7.7)%
Mining cost per Mt sold ($/Mt)
108.9
113.7
(4.8)
(4.5)%
Operating costs ($)
515,304
568,190
(52,886)
(9.3)%
Operating costs per Mt sold ($/Mt)
132.4
138.8
(6.4)
(5.0)%
Segment Adjusted EBITDA ($)
50,452
125,322
(74,870)
(59.7)%
Coal revenues decreased by $97.3 million, or 14.7%,
to $565.0 million for the nine months ended
September 30,
2025, compared to $662.3 million for
the nine months ended September 30, 2024.
This decrease was driven by
weak global Met coal markets which resulted
in a lower average realized Met coal price
of $150.8 per Mt for the
Coronado Global Resources Inc.
nine months ended September
30, 2025, and lower
fixed prices achieved
from annual domestic
price contracts
for 2025 compared to 2024.
Operating costs were $52.9 million lower for the
nine months ended September 30, 2025, compared to
the same
period in 2024,
driven by lower
mining costs,
lower coal purchase
and lower
other royalties,
a product of
lower
coal
revenues.
Mining
costs
decreased
by
$35.2
million
for
the
nine
months
ended
September
30,
2025,
compared to the nine months ended
September 30, 2024, due to the
temporary idling of surface mine operations
at Logan
and reduced
well drilling
at Buchanan,
lower maintenance
costs and
higher
inventory build
as lower
sales volumes exceeded lower saleable production.
Adjusted EBITDA of
$50.4 million decreased
by $74.9 million,
or 59.7%, for
the nine months
ended September
30,
2025,
compared
to
$125.3
million
for
the
nine
months
ended
September
30,
2024.
This
decrease
was
primarily driven by lower coal and other revenues
partially offset by lower operating costs.
Corporate and Other Adjusted EBITDA
The following table presents a summary of the components
of Corporate and Other Adjusted EBITDA:
Nine months ended
September 30,
2025
2024
Change
%
(in US$ thousands)
Selling, general, and administrative expenses
$
23,474
$
26,635
$
(3,161)
(11.9)%
Other, net
(22)
(1,218)
1,196
(98.2)%
Total
Corporate and Other Adjusted EBITDA
$
23,452
$
25,417
$
(1,965)
(7.7)%
Corporate and
other costs
of $23.5
million for
the nine
months
ended September
30, 2025,
were $2.0
million
lower compared to
$25.4 million for
the nine months
ended September 30,
2024,
due to cost savings
initiatives
implemented
at
the
corporate
level
partially
offset
by
costs
incurred
to
pursue
various
initiatives
to
improve
liquidity.
Coronado Global Resources Inc.
Mining and operating costs
for the Nine
months ended September 30,
2025 compared to Nine
months
ended September 30, 2024
A reconciliation of
segment costs and
expenses, segment operating
costs, and segment
mining costs is
shown
below:
Nine months ended September 30, 2025
(in US$ thousands)
Australia
United
States
Other /
Corporate
Total
Consolidated
Total costs and
expenses
$
1,018,184
$
588,841
$
24,976
$
1,632,001
Less: Selling, general and administrative
expense
(11)
(13)
(23,450)
(23,474)
Less: Depreciation, depletion and amortization
(60,177)
(73,524)
(1,526)
(135,227)
Total operating costs
957,996
515,304
—
1,473,300
Less: Other royalties
(90,132)
(27,925)
—
(118,057)
Less: Stanwell rebate
(70,115)
—
—
(70,115)
Less: Freight expenses
(131,372)
(63,245)
—
(194,617)
Less: Other non-mining costs
(4,641)
—
—
(4,641)
Total mining costs
661,736
424,134
—
1,085,870
Sales Volume excluding non-produced
coal
(MMt)
7.2
3.9
—
11.1
Mining cost per Mt sold ($/Mt)
91.5
108.9
—
97.6
Nine months ended September 30, 2024
(in US$ thousands)
Australia
United
States
Other /
Corporate
Total
Consolidated
Total costs and
expenses
$
1,312,432
$
642,548
$
27,753
$
1,982,733
Less: Selling, general and administrative
expense
(47)
—
(26,588)
(26,635)
Less: Depreciation, depletion and amortization
(66,648)
(74,358)
(1,165)
(142,171)
Total operating costs
1,245,737
568,190
—
1,813,927
Less: Other royalties
(205,018)
(30,587)
—
(235,605)
Less: Stanwell rebate
(83,293)
—
—
(83,293)
Less: Freight expenses
(112,736)
(70,916)
—
(183,652)
Less: Other non-mining costs
(17,810)
(7,371)
—
(25,181)
Total mining costs
826,880
459,316
—
1,286,196
Sales Volume excluding non-produced
coal
(MMt)
7.5
4.0
—
11.6
Mining cost per Mt sold ($/Mt)
109.6
113.7
—
111.0
Average realized Met
price per Mt
sold for the
Nine months ended
September 30, 2025
compared to
Nine months ended September 30, 2024
A reconciliation of the Company’s average realized
Met price per Mt sold is shown below:
Nine months ended
September 30,
2025
2024
Change
%
(in US$ thousands)
Met coal sales volume (MMt)
8.6
9.4
(0.8)
(9.0)%
Met coal revenues ($)
1,280,105
1,812,892
(532,787)
(29.4)%
Average realized Met price per Mt sold ($/Mt)
149.4
192.6
(43.2)
(22.4)%
Coronado Global Resources Inc.
Reconciliation of Non-GAAP Financial Measures
Adjusted EBITDA
Three months ended
September 30,
Nine months ended
September 30,
(in US$ thousands)
2025
2024
2025
2024
Reconciliation to Adjusted EBITDA:
Net loss
$
(109,470)
$
(70,997)
$
(281,871)
$
(54,798)
Add: Depreciation, depletion and amortization
49,198
45,559
135,227
142,171
Add: Interest expense (net of interest income)
29,443
15,808
68,305
42,253
Add: Other financing costs
1,500
—
1,500
—
Add: Other foreign exchange (gains) losses
(1,753)
10,190
(1,972)
1,086
Add: Loss on extinguishment of debt
—
—
1,050
—
Add: Income tax expense (benefit)
5,707
(31,771)
(23,661)
(28,482)
Add: Impairment of non-core assets
—
10,585
—
10,585
Add: Losses on idled assets
—
1,460
1,848
3,624
Add: Increase (decrease) in provision for
credit losses
2,836
43
3,649
(157)
Adjusted EBITDA
$
(22,539)
$
(19,123)
$
(95,925)
$
116,282
Liquidity and Capital Resources
Overview
Our objective is to maintain a prudent capital structure and to ensure that sufficient liquid assets and funding are
available to meet both anticipated and
unanticipated financial obligations, including unforeseen events that could
have an
adverse impact
on revenues
or costs.
Our principal
sources of
funds are
cash and
cash equivalents,
cash flow from operations and availability under our debt
facilities.
Our main uses of cash have historically been, and are expected to continue to be, the funding of our
operations,
working capital,
capital
expenditures,
debt
service
obligations,
business
or asset
acquisitions
and
payment
of
dividends.
Our ability to generate sufficient cash
depends on our future performance,
which may be subject to a number
of
factors beyond our control,
including general economic, financial,
competitive and weather conditions
and other
risks described
in this
Quarterly Report
on Form
10-Q, Part
I, Item
1A. “Risk
Factors” of
our Annual
Report on
Form 10-K
for the
year ended
December 31,
2024, filed
with the
SEC and
ASX on
February 19,
2025, Part
II,
Item 1A.
“Risk Factors”
of our
Quarterly Report
on Form
10-Q for
the quarterly
period ended
March 31,
2025,
filed with the SEC and ASX on May 8,
2025, and Part II, Item 1A. “Risk Factors” of our
Quarterly Report on Form
10-Q for the quarterly period ended June 30, 2025, filed
with the SEC and ASX on August 11,
2025.
Sources of liquidity as of September 30, 2025 and December
31, 2024 were as follows:
(in US$ thousands)
September 30,
2025
December 31,
2024
Cash and cash equivalents, excluding restricted cash
$
171,837
$
339,374
Availability under the ABL Facility
(1)
15,536
128,563
Total
$
187,373
$
467,937
(1)
Availability under the ABL
Facility is limited
to an eligible
borrowing base, determined
by applying customary
advance rates
to eligible accounts receivable and inventory.
Coronado Global Resources Inc.
Our total indebtedness as of September 30, 2025 and
December 31, 2024 consisted of the following:
(in US$ thousands)
September 30,
2025
December 31,
2024
Current installments of interest bearing liabilities
$
1,717
$
1,477
Interest bearing liabilities, excluding current installments
498,100
422,995
Current installments of other financial liabilities and other
finance lease obligations
18,497
6,163
Other financial liabilities and finance lease obligations, excluding
current installments
40,446
19,694
Total
$
558,760
$
450,329
Liquidity
Coronado has been significantly
impacted by declining demand
and prices in the
coal market that impacted
our
earnings during the year ended December 31, 2024 and
through September 30,
2025.
On
June
30,
2025,
S&P
downgraded
the
Company’s
credit
rating
from
‘B-’
to
‘CCC+’
and,
on
July
7,
2025,
Moody’s downgraded the Company’s credit
rating from ‘Caa1’
to ‘Caa2’, both
of which resulted
in a Review
Event
under the ABL
Facility.
On July
9, 2025, the
Company successfully
negotiated with
the Lender,
who confirmed
no changes to the terms or the availability of the ABL Facility,
thereby, concluding
each of the Review Events.
On September 29,
2025, we entered
into an agreement
with the Administrative
Agent under the
ABL Facility to
waive compliance with
financial covenants as
at September 30,
2025, and reset
the conditions related
to credit
rating obligations such that a review event, default or
event of default would not occur under the
ABL Facility due
to a one
notch downgrade to the
Company’s credit rating by S&P
or Moody’s as at
September 29, 2025 (however
an event of default will occur
if there is a further two
or more notches downgrade
to the Company’s credit
rating
by S&P
or Moody’s
as at
September 29,
2025). The
Company’s
obligation to
comply with
financial covenants
beyond September 30, 2025, remained unchanged.
As the outlook for Met coal markets remains uncertain, continued low or a further deterioration in
Met coal prices
and our inability
to achieve
production forecasts,
due to factors
beyond our
control, could lead
to an inability
to
fund short-term
working capital
movements, further
operating losses
and negative
operating cash
flows for
the
remainder
of 2025
and
into
2026,
which,
combined
with
other
factors,
could
impact
our
ability
to comply
with
financial covenants under the ABL Facility on and beyond December
31, 2025.
Non-compliance with financial covenants or
a potential further two
or more notches downgrade
to the Company’s
credit rating by S&P
or Moody’s, may result
in an Event of Default
under the ABL Facility
and, unless the Event
of Default is
cured or a
waiver is obtained,
could also trigger
a cross-default under
the Indenture governing
our
Notes.
On October 23, 2025, the Scheme Manager under the Financial Provisioning Scheme Act advised the Company
that it had
completed an indicative
decision related to
the Annual Review
Allocation for the
Curragh mine complex
EA number EPML00643713, providing an indicative allocation of “High”. This is a change to the previous Annual
Review Allocation for the EA of “Moderate”. A final Annual
Review Allocation has not yet been made.
The “High” rating would
require the Company to
provide a surety, in the form
of bank guarantees, insurance bond
or cash collateral, of Curragh’s ERC of $242.7 million to
the scheme. However, under
the Financial Provisioning
Scheme Act, if:
●
category, and
●
“Moderate” risk category; and
●
12 months after the
decision is made, such
EA will be taken
to be allocated to
the “Moderate-High” risk
category for
determining
the contribution
payable
for the
next twelve-month
period’s
obligation.
A risk
allocation of “Moderate-High” requires a contribution to
the scheme of 6.5% of the ERC amount.
Coronado Global Resources Inc.
We are
currently making
relevant submissions
to the
Scheme Manager
in accordance
with its
rights under
the
Financial Provisioning Scheme
Act. However, as of
the filing of
this Quarterly Report
on Form 10-Q,
a final Annual
Review Allocation has not been issued by the Scheme Manager
.
On October
28,
2025, the
Company
announced
the
Proposed Transaction
with
Stanwell for
a combination
of
financial support transactions intended to improve our
short and long-term financial liability.
The
Proposed
Transaction,
which
remains
non-binding
and
subject
to
completion
of
due
diligence,
definitive
documents and required external approvals, includes the following:
●
Stanwell and increasing availability from $150.0 million to $265.0 million, with a five-year maturity and at
a lower
interest rate.
The borrowing
base limits
are expected
to be
amended to
allow higher
levels of
borrowing against working capital assets of the Company and
more flexible covenant conditions.
●
become repayable for certain specified change of
control events or default that would lead
to termination
of existing Stanwell coal supply agreements.
●
to make broader annual nominations ranging from 1.2
MMt to 2.24 MMt.
●
tonnage under
the ACSA
and NCSA
equal the
difference between current
contracted prices and
a market
price equivalent (to be agreed
with the Company and
with discount to market
being not more than
10%
of the price
difference applied
to the first
1.2 MMt nominated
under the NCSA),
or the price
difference,
when
our
liquidity
is
under
$200
million.
This
additional
prepayment
is
available
for
the
remaining
contractual term
of the
ACSA and
the NCSA.
When our
liquidity is
between $200.0
million and
$250.0
million, the additional prepayment reduces to 50%
of the price difference. When liquidity is above
$250.0
million,
no
prepayments
will
be
made,
and
the
existing
terms
of
the
ACSA
and
NCSA
apply.
The
accumulated prepayment amount will bear interest
at 7.5% per annum and the accrued interest
amount
will be capped
at 1.2 times
of the accumulated
principal prepayment
amount. The prepayment
balance
will be settled
through delivery
of coal to
Stanwell in months
when our
liquidity exceeds $300.0
million.
All liquidity thresholds will be annually adjusted for inflation
.
●
over other fixed assets
in respect to the
proposed ABL Facility and retain
its lower-ranking security under
the NCSA obligations.
●
agreement
relating
to
the
Proposed
Transaction,
we
must
(1)
obtain
Stanwell’s
consent
and
(2)
pay
immediately
to
Stanwell
the
amount
of
rebate
waived
under
the
ACSA.
Additionally,
if
our
current
controlling shareholder
ceases to
control the
Company by
way of
disposing a
20% or
more interest
in
the Company without Stanwell’s consent, we must immediately pay to Stanwell
the amount of the rebate
waived under the ACSA. The controlling shareholder
may dispose an interest in the Company less than
20% without Stanwell’s consent.
●
required to maintain a minimum cash
liquidity of $300.0 million following the payment of
such distribution
to shareholders, the repurchase of any Notes in connection
with the distribution and an equal or greater
amount than
the distribution
will be
used to
reduce the
prepayment amounts
outstanding under
ACSA
and NCSA.
Coronado Global Resources Inc.
In addition
to the
Proposed Transaction, we
continue to pursue
a number
of initiatives
intended to
improve liquidity
including, among other things, further operating and capital cost control measures, potential other debt and non-
debt funding measures, and whole or partial asset sales.
While management believes that the Proposed Transaction, if entered
into and once completed, would enhance
our
liquidity,
the
vast
majority
of
the
potential
funding
under
the
arrangement
is
delivered
over
time
and
not
upfront, and does
not eliminate uncertainties
in relation to
our future financial
performance, including
our ability
to achieve
its production
targets and
manage working
capital fluctuations
that are
material at
times depending
on circumstances (production and inventory
levels), due to events and factors
beyond its control, and sustained
weakness in Met coal markets
and consequential realized Met coal prices.
Based on
our outlook
for the
next twelve
months, which
is subject
to uncertainties
with respect
to execution
of
the financing
initiatives described above,
continued changing demand
from our
customers, volatility in
coal prices,
current and future trade barriers and tariffs and the uncertainty of impacts
from ongoing civil unrest and wars, we
believe expected
cash generated
from operations
together with
our sources
of liquidity
and other
strategic and
financial initiatives,
may not
be sufficient
to meet
the needs
of our
existing operations,
capital expenditure
and
service our debt obligations.
Cash and cash equivalents
Cash
and
cash
equivalents
are
held
in
multicurrency,
interest-bearing
bank
accounts
available
to
be
used
to
service
the
working
capital
needs
of
the
Company.
Cash
balances
in
excess
of
immediate
working
capital
requirements
are
invested
in
short-term,
interest-bearing
deposit
accounts
or
used
to
repay
interest-bearing
liabilities.
ABL Facility
On June 18,
2025, we entered
into an amendment
and restatement of
our existing senior
secured asset-based
revolving credit agreement in an initial aggregate principal
amount of $150.0 million, or the ABL Facility.
The ABL Facility is
a revolving credit facility
which matures in 2028.
Availability under the
ABL Facility is limited
to an eligible
borrowing base,
determined by
applying customary
advance rates
to eligible accounts
receivable
and inventory.
As of September 30,
2025, the eligible
borrowing base under the
ABL Facility was $90.5
million,
of which $75.0 million had been drawn and $15.5 million
remained available to be drawn.
Borrowings under
the ABL
Facility bear
interest of
15% per
annum and
are subject
to an
interest make-whole
premium, payable
on any
refinance or
prepayment during
the first
eighteen months
after the
closing date.
The
undrawn capacity under
the ABL Facility remains
available until June 18,
2026, and is subject
to a commitment
fee equal to 9.00% per annum.
The ABL
Facility is
subject to
financial covenants
including a
covenant regarding
the maintenance
of leverage
ratio and interest coverage ratio to be tested quarterly,
as described in the ABL Facility.
The ABL Facility
also contains customary
representations and warranties and
affirmative and negative covenants
including,
among
others,
covenants
relating
to
the
payment
of
dividends
with
respect
to,
or
the
purchase
or
redemption of, any equity
interests of the Company
or any of its subsidiaries,
financial reporting, the
incurrence
of liens or encumbrances, the incurrence or prepayment
of certain debt, compliance with laws, use of
proceeds,
maintenance of
properties, maintenance
of insurance,
payment obligations,
financial accommodation,
mergers
and sales of
all or substantially all
of the assets
of the Loan
Parties and changes in
the nature of
the Loan Parties’
business.
A
Review Event will occur
under the ABL Facility
if any one or more
of the following occurs:
(a) a downgrade of
a Loan Party’s credit rating by
S&P or Moody’s which applies as
at the closing date; or (b) delisting
of any listed
Loan Party from the relevant
stock exchange on which it
was listed or a
trading halt in respect of
such Loan Party
for more than 5 business days. Following
the occurrence of a Review Event,
the Borrowers must promptly meet
and consult
in good
faith with
the
Administrative
Agent and
the
Lender to
agree on
a strategy
to address
the
relevant Review Event.
If, at the end
of a period
of 10 business
days after the occurrence
of the Review
Event,
the
Lender
is
not
satisfied
with
the
result
of
their
discussion
or
meeting
with
the
Borrowers
or
do
not
wish
to
continue to provide
their commitments,
the Lender may
declare all amounts
owing under the
ABL Facility to
be
prepaid within another 20 business days.
Coronado Global Resources Inc.
On
June
30,
2025,
S&P
downgraded
the
Company’s
credit
rating
from
‘B-’
to
‘CCC+’
and,
on
July
7,
2025,
Moody’s downgraded the Company’s credit
rating from ‘Caa1’
to ‘Caa2’, both
of which resulted
in a Review
Event
under the ABL Facility. On
July 9, 2025, we successfully negotiated with the Lender,
who confirmed no changes
to the
terms or
the availability
of the
ABL Facility,
thereby,
concluding
each of
the Review
Events. A
potential
further two or more
notches downgrade to the Company’s credit
rating by S&P or Moody’s may
result in an Event
of Default
under the
ABL Facility,
and unless
the Event
of Default
is cured
or a
waiver is
obtained, could
also
trigger a cross-default under the Indenture governing our
Notes.
On September 29,
2025, we entered
into an agreement
with the Administrative
Agent under the
ABL Facility to
waive compliance with
financial covenants as
at September 30,
2025, and reset
the conditions related
to credit
rating obligations such that a review event, default or
event of default would not occur under the
ABL Facility due
to a one
notch downgrade to the
Company’s credit rating by S&P
or Moody’s as at
September 29, 2025 (however
an event of default will occur
if there is a further two
or more notches downgrade
to the Company’s credit
rating
by S&P or Moody’s as at September 29, 2025). The Company’s obligation to comply with financial covenants as
at December 31, 2025, and beyond remained unchanged.
Subject to customary grace periods and notice requirements, the ABL Facility also contains customary events of
default.
Refer to Part I, Item 1, Note 10. “Interest Bearing Liabilities”
for further information.
9.250% Senior Secured Notes
As of September
30, 2025, the
outstanding amount of
our Notes was
$400.0 million. The
Notes were issued
at
par and bear
interest at a
rate of 9.250%
per annum. Interest
on the Notes
is payable
semi-annually in
arrears
on April 1 and October 1 of each year, which
began on April 1, 2025. The Notes mature on October 1, 2029 and
are senior secured obligations of the Issuer.
The terms
of the
Notes are
governed
by an
indenture,
or the
Indenture,
dated
as of
October
2, 2024,
among
Coronado Finance Pty
Ltd, as issuer
(the Issuer),
Coronado Global
Resources Inc., as
guarantor, the subsidiaries
of
Coronado
Global
Resources
Inc.
named
therein
as
additional
guarantors,
and
Wilmington
Trust,
National
Association, as trustee
and priority lien
collateral trustee. The
Indenture contains
customary covenants for
high
yield bonds, including,
but not limited
to, limitations on
investments, liens, indebtedness,
asset sales, transactions
with affiliates and restricted payments, including
payment of dividends on capital stock.
Upon the occurrence of a “Change
of Control Triggering
Event”, defined in the Indenture
as the occurrence of a
Change
of
Control
and
a
Rating
Decline
(each
as
defined
in
the
Indenture),
the
Issuer
is
required
to
offer
to
repurchase the
Notes at
101% of
the aggregate
principal amount
thereof, plus
accrued and
unpaid interest,
if
any,
to, but
excluding, the
repurchase date.
The Issuer
also has
the right
to redeem
the Notes
at 101%
of the
aggregate principal
amount thereof,
plus accrued
and unpaid
interest, if
any,
to, but
excluding, the
repurchase
date, following the occurrence of
a Change of Control
Triggering Event, provided that the Issuer redeems
at least
90% of the Notes outstanding
prior to such Change of
Control Triggering Event.
Upon the occurrence of certain
changes in tax law (as described in the Indenture), the Issuer may redeem all of the Notes at a redemption price
equal to 100% of the principal
amount of the Notes to
be redeemed plus accrued and
unpaid interest, if any,
to,
but excluding, the redemption date.
The
Indenture
contains
customary
events
of
default,
including
failure
to
make
required
payments,
failure
to
comply with certain agreements
or covenants, failure to
pay or acceleration of
certain other indebtedness, certain
events of
bankruptcy and
insolvency, and failure to
pay certain
judgments. An
event of
default under
the Indenture
will allow either the
trustee or the holders
of at least 25%
in aggregate principal amount
of the then-outstanding
Notes
to
accelerate,
or
in
certain
cases,
will
automatically
cause
acceleration
of,
the
amounts
due
under
the
Notes.
As of September 30,
2025, the Company was in compliance with all applicable
covenants under the Indenture.
We may redeem
some or all
of the Notes
at the redemption
prices and on
the terms specified
in the Indenture.
In
addition,
we
may,
from
time
to
time,
seek
to
retire
or
repurchase
outstanding
debt
through
open-market
purchases, privately negotiated transactions or otherwise. Such repurchases, if
any, will be upon such terms and
at
such
prices
we
may
determine,
and
will
depend
on
prevailing
market
conditions,
liquidity
requirements,
contractual restrictions and other factors.
Refer to Part I, Item 1, Note 9. “Interest Bearing Liabilities
”
for further information.
Coronado Global Resources Inc.
Loan – Curragh Housing Transaction
In 2024, the Company completed
the Curragh Housing Transaction,
an agreement for accommodation services
and
the
sale
and
leaseback
of
housing
and
accommodation
assets
with
a
regional
infrastructure
and
accommodation service provider.
The Curragh Housing Transaction did not satisfy the sale criteria under ASC 606, Revenues from Contracts with
Customers, and was deemed
a financing arrangement. As a
result, the proceeds of $23.0
million (A$34.6 million)
received for the sale and leaseback of property,
plant and equipment owned by the Company in connection with
the Curragh Housing
Transaction
were recognized
as “Other
Financial Liabilities”
on the Company’s
unaudited
Condensed Consolidated Balance
Sheets. The term
of the financing
arrangement is ten
years with an
effective
interest rate
of 14.14%.
This
liability
will
be settled
in
equal monthly
payments
as
part of
the
accommodation
service arrangement.
In line
with the
Company’s capital
management strategy,
the Curragh
Housing Transaction
provides additional
liquidity. In
addition, the accommodation services
component of the Curragh Housing
Transaction is anticipated
to enhance the level of service for our employees at our
Curragh Mine.
In connection with the Curragh Housing Transaction,
the Company borrowed $26.9 million (A$40.4 million) from
the same
regional
infrastructure
and accommodation
service provider.
This amount
was recorded
as “Interest
Bearing Liabilities” in the unaudited Condensed Consolidated Balance Sheets. The amount borrowed is payable
in equal monthly installments over a period of ten years,
with an effective interest rate of 14.14%.
Refer to
Part I,
Item I.
Note 9.
“Interest Bearing
Liabilities” and
Note 10.
“Other Financial
Liabilities” for
further
information.
Unsecured note payable to insurance premium finance
company
In July 2025, we entered into an agreement with an
insurance premium finance company to obtain $16.5
million
of
unsecured
insurance
financing
funding.
The
liability
bears
a
fixed
interest
rate
of
2.99%,
payable
in
three
monthly instalments of $2.5 million and will mature in December
2025.
Finance leases
During the
nine months ended
September 30, 2025,
the Company
entered into
various finance lease
agreements.
Our total finance lease commitments were $32.9 million as at September 30,
2025. The terms of the outstanding
lease agreements mature through August 2029 and bear fixed
interest rates ranging from 8.6% to 14.0%.
Surety bonds, letters of credit and bank guarantees
We are
required to
provide financial
assurances and
securities to satisfy
contractual and
other requirements
in
the normal course of
business. Some of these assurances are
provided to comply with
state or other government
agencies’ statutes and regulations.
For
the
U.S.
Operations,
in
order
to
provide
the
required
financial
assurance
for
post
mining
reclamation,
we
generally
use surety
bonds.
We
also
use surety
bonds
and bank
letters
of credit
to collateralize
certain
other
obligations including contractual obligations under workers’ compensation insurance. As of September 30,
2025,
we had outstanding surety bonds of $20.0 million.
For the Australian Operations,
as at September 30, 2025
,
we had bank guarantees
outstanding of $35.2 million
primarily in respect of certain rail and port take-or-pay
arrangements of the Company.
Future regulatory
changes
relating
to
these
obligations
or deterioration
of
our
credit
risk
rating could
result
in
increased obligations, additional costs or additional collateral
requirements.
Restricted deposits – cash collateral
As required
by certain
agreements, we
had total
cash collateral
in the
form of
deposits of
$128.9 million
as of
September 30,
2025 to provide
back-to-back support for
bank guarantees, financial
payments, other performance
obligations,
various
other
operating
agreements
and
contractual
obligations
under
workers
compensation
insurance.
These
deposits
are
restricted
and
classified
as
non-current
assets
in
the
unaudited
Condensed
Consolidated Balance Sheets.
Future regulatory changes
in relation to
these obligations or
deterioration of our
credit risk rating
could result in
increased obligations, additional costs or additional collateral
requirements.
Coronado Global Resources Inc.
Dividends
On February 19,
2025, our Board
of Directors declared
a bi-annual fully
franked fixed ordinary
dividend of $8.4
million,
or
0.5
cents
per
CDI.
On
April
4,
2025,
the
Company
paid
$8.3
million
to
holders,
net
of
$0.1
million
foreign exchange
gain on
payment of
dividends to
certain CDI
holders who
elected to be
paid in
Australian dollars.
Capital Requirements
Our main uses of cash
have historically been the funding of
our operations, working capital, capital expenditures,
and the payment
of interest
and dividends. We
intend to use
cash to fund
debt service payments
of our Notes,
the ABL
Facility and
our other
indebtedness, to
fund operating
activities, working
capital, capital
expenditures,
including organic growth projects, business or assets
acquisitions and, if declared, payment of dividends.
Historical Cash Flows
The following
table summarizes
our cash
flows for
the nine
months ended
September 30,
2025 and
2024, as
reported in the accompanying consolidated financial statements:
Cash Flow
Nine months ended
September 30,
(in US$ thousands)
2025
2024
Net cash from operating activities
$
54,850
$
11,472
Net cash used in investing activities
(265,642)
(200,887)
Net cash from financing activities
43,717
27,883
Net change in cash and cash equivalents
(167,075)
(161,532)
Effect of exchange rate changes on cash and cash
equivalents
(462)
(1,414)
Cash and cash equivalents at beginning of period
339,625
339,295
Cash and cash equivalents at end of period
$
172,088
$
176,349
Operating activities
Net
cash
provided
by
operating
activities
was
$54.9
million
for
the
nine
months
ended
September
30,
2025,
compared to
$11.5
million
for the
nine months
ended
September 30,
2024. The
increase
in cash
provided
by
operating activities was
primarily driven by
a prepayment
from Stanwell of
$75.0 million and
a $44.6 million
waiver
and deferral of the Stanwell rebate, both of which are to be settled via future coal deliveries, as well as favorable
working
capital
movement
due
to
early
collections
from
certain
customers
and
lower
payments
to
suppliers,
partially offset by Adjusted EBITDA loss for the
nine months ended September 30, 2025.
Investing activities
Net
cash
used
in
investing
activities
was
$265.6
million
for
the
nine
months
ended
September
30,
2025,
compared
to
$200.9
million
for
the
nine
months
ended
September
30,
2024,
and
consisted
of
cash
spent
on
capital
expenditures
of
$205.5
million,
of
which
$112.2
million
related
to
the
Australian
Operations
and
$94.6
million was
related
to our
U.S. Operations
,
and
the posting
of cash
collateral
of $60.2
million
as a
security
to
satisfy contractual and other requirements.
Financing activities
Net
cash
provided
by
financing
activities
was
$43.7
million
for
the
nine
months
ended
September
30,
2025.
Included in
net cash
provided by
financing activities
were proceeds
of $75.0
million from
drawing down
on the
new ABL Facility, partially offset by payment for debt issuance and other financing costs of $7.1 million, dividend
payments of $8.3
million, finance lease
obligations principal payments
of $2.2 million and
repayment of interest
bearing and other financial liabilities of $13.6 million.
Contractual Obligations
Except as set
forth below, there were
no material changes
to the Company’s contractual
obligations as previously
disclosed in
our Annual
Report on
Form 10-K
for the
year ended
December 31,
2024, filed
with the
SEC and
ASX on February 19, 2025.
Coronado Global Resources Inc.
On June 10, 2025, we entered into a Deed of Amendment with Stanwell
for a prepayment for future coal sales of
$75.0 million
and a
rebate waiver
and deferral
from April
2025 to
December 2025
(with an
estimated value
of
approximately
$75.0 million)
,
as they
are incurred,
both of
which will
be settled
through physical
coal
delivery
over five
years, or
until such
time that
the obligation
is fully
settled, commencing
2027. Refer
to Part
I, Item
1.
“Financial Statements”, Note 11.
“Contract Obligations” for further information.
On June 18, 2025, we completed refinancing of our ABL Facility
for an aggregate principal amount up to $150.0
million, of which $75.0
million was drawn on
completion.
The remaining $75.0 million is
available to the Company
for until June
18, 2026, limited
to an eligible
borrowing base. The
ABL Facility is
subject to financial
covenants,
including maintenance of leverage ratio and interest coverage
ratio tested quarterly.
The
ABL
Facility
is
a
revolving
credit
facility
which
matures
in
2028.
Borrowings
under
the
ABL
Facility
bear
interest at a
rate of
15% per annum
and are
subject to an
interest make-whole premium,
payable on any
refinance
or
prepayment
during
the
first
eighteen
months
after
the
closing
date.
Refer
to
Part
I,
Item
1.
“Financial
Statements”, Note 9. Interest Bearing Liabilities for further
information.
In July
2025, the
Company entered
into an
agreement with
an insurance
premium finance
company to
obtain
$16.5 million of unsecured insurance financing funding. The liability bears a fixed interest rate of 2.99%, payable
in three monthly instalments of $2.5 million and will mature in December
2025. Refer to Part I, Item 1. “Financial
Statements”, Note 10. Other Financial Liabilities for further information
.
Critical Accounting Policies and Estimates
The preparation
of
our
financial
statements
in
conformity
with
U.S. GAAP
requires
us to
make
estimates
and
assumptions that affect the
reported amounts of assets and liabilities
at the date of the financial statements
and
the reported
amounts of
revenue and
expenses during
the reporting
period. On
an ongoing basis,
we evaluate
our estimates. Our estimates are
based on historical experience
and various other assumptions
that we believe
are appropriate, the results of
which form the basis
for making judgments about the
carrying values of assets and
liabilities
that
are
not
readily
apparent
from
other
sources.
Actual results
may
differ
from
these
estimates.
All
critical accounting estimates
and assumptions, as
well as the resulting
impact to our financial
statements, have
been discussed with the Audit, Governance and Risk Committee
of our Board of Directors.
Our
critical
accounting
policies
are discussed
in
Item
7. “Management’s
Discussion
and
Analysis
of Financial
Condition and Results of
Operations” of our Annual
Report on Form 10-K for
the year ended December
31, 2024,
filed with the SEC and ASX on February 19, 2025.
Newly Adopted Accounting Standards and Accounting
Standards Not Yet Implemented
See
Note
2.
(a)
“Newly
Adopted
Accounting
Standards”
and
Note
2.
(b)
“Accounting
Standards
Not
Yet
Implemented” to our unaudited condensed consolidated
financial statements for further information.
Coronado Global Resources Inc.
ITEM 3.
QUANTITATIVE
AND QUALITATIVE
DISCLOSURES ABOUT MARKET RISK
Our activities
expose us
to
a variety
of financial
risks, such
as commodity
price risk,
interest rate
risk, foreign
currency risk, liquidity risk and credit
risk. The overall risk management objective is
to minimize potential adverse
effects on our financial performance from those
risks which are not coal price related.
We manage
financial risk
through policies
and procedures
approved by
our Board
of Directors.
These specify
the responsibility
of the
Board
of Directors
and
management
with regard
to the
management
of financial
risk.
Financial risks are
managed centrally by
our finance
team under the
direction of the
Group Chief Financial
Officer.
The finance team manages risk exposures primarily through delegated authority limits approved
by the Board of
Directors. The finance team regularly monitors
our exposure to these financial risks and reports
to management
and
the
Board
of
Directors
on
a
regular
basis.
Policies
are
reviewed
at
least
annually
and
amended
where
appropriate.
We may use
derivative financial instruments such
as forward fixed
price commodity contracts, interest
rate swaps
and
foreign
exchange
rate
contracts
to
hedge
certain
risk
exposures.
Derivatives
for
speculative
purposes
is
strictly prohibited by the Treasury Risk Management Policy approved by our Board of
Directors. We use different
methods
to
measure
the
extent
to
which
we
are
exposed
to
various
financial
risks.
These
methods
include
sensitivity analysis
in the
case of
interest rates,
foreign exchange
and other
price risks
and aging
analysis for
credit risk.
Commodity Price Risk
Coal Price Risk
We
are
exposed
to
domestic
and
global
coal
prices.
Our
principal
philosophy
is
that
our
investors
would
not
consider hedging coal prices to be in the long-term interest of
our stockholders. Therefore, any potential hedging
of coal
prices
through
long-term
fixed price
contracts
is subject
to the
approval
of our
Board
of Directors
and
would only be adopted in exceptional circumstances.
The
expectation
of
future
prices
for
coal
depends
upon
many
factors
beyond
our
control.
Met
coal
has
been
volatile commodity over the
past ten years. The
demand and supply in the
Met coal industry changes
from time
to
time.
There
are
no
assurances
that
oversupply
will
not
occur,
that
demand
will
not
decrease
or
that
overcapacity will not occur, which could cause
declines in the prices of
coal, which could have a
material adverse
effect on our financial condition and results
of operations.
Access to
international markets
may be
subject to
ongoing interruptions
and trade
barriers due
to policies
and
tariffs
of
individual
countries.
We
may
or
may
not
be
able
to
access
alternate
markets
for
our
coal
should
interruptions
or
trade
barriers
occur
in
the
future.
The
inability
of
Met
coal
suppliers
to
access
international
markets would likely result in an oversupply of Met coal and may result in a decrease in prices or the curtailment
of production.
We manage
our commodity
price risk
for our non-trading,
thermal coal
sales through
the use
of long-term
coal
supply agreements in our
U.S. Operations. In Australia, thermal
coal is sold
to Stanwell on a
supply contract. See
Item
1A.
“Risk
Factors—Risks
related
to
the
Supply
Deed
with
Stanwell
may
adversely
affect
our
financial
condition and results of operations” in our Annual Report on Form 10-K filed with the SEC and ASX on February
19, 2025.
Sales commitments in the
Met coal market are typically
not long-term in nature,
and we are therefore subject
to
fluctuations in
market pricing.
Certain coal
sales are
provisionally priced
initially.
Provisionally priced
sales are
those for which price finalization,
referenced to the relevant index,
is outstanding at the reporting
date. The final
sales price is determined
within 7 to
90 days after
delivery to the customer.
As of September
30, 2025,
we had
$4.2 million of
outstanding provisionally priced receivables
subject to changes
in the relevant
price index. If
prices
decreased
10%,
these
provisionally
priced
receivables
would
decrease
by
$0.4
million.
See
Item
1A.
“Risk
Factors—Our profitability
depends upon
the prices
we receive
for our
coal. Prices
for coal
are volatile
and can
fluctuate widely
based upon
a number
of factors
beyond our
control” in
our Annual
Report on
Form 10-K
filed
with the SEC and ASX on February 19, 2025.
Diesel Fuel
We may
be exposed
to price
risk in
relation to
other commodities
from time
to time
arising from
raw materials
used in our
operations (such
as gas
or diesel).
The expectation
of future
prices for
diesel depends
upon many
factors beyond our
control. These commodities
may be hedged
through financial
instruments if the
exposure is
considered material and where the exposure cannot be
mitigated through fixed price supply agreements.
The fuel
required
for
our operations
for
the remainder
of fiscal
year
2025
will
be
purchased
under
fixed-price
contracts or on a spot basis.
Coronado Global Resources Inc.
Interest Rate Risk
Interest rate risk is the risk that a change in interest rates
on our borrowing facilities will have an adverse impact
on
our
financial
performance,
investment
decisions
and
stockholder
return.
Our
objectives
in
managing
our
exposure
to
interest
rates
include
minimizing
interest
costs
in
the
long
term,
providing
a
reliable
estimate
of
interest costs
for the
annual budget
and ensuring
that changes
in interest
rates will
not have
a material
impact
on our financial performance.
As of
September
30, 2025,
we had
$558.8
million
of fixed
rate
borrowings,
Notes
and finance
leases and
no
variable-rate borrowings outstanding.
We currently do not hedge against interest rate
fluctuations.
Foreign Exchange Risk
A significant portion of our
sales are denominated in US$.
Foreign exchange risk is
the risk that our earnings
or
cash flows are adversely impacted by movements in exchange
rates of currencies that are not in US$.
Our main exposure
is to the
A$-US$ exchange rate
through our Australian
Operations, which have
predominantly
A$ denominated costs. Greater than 70% of expenses incurred at our Australian Operations are denominated in
A$. Approximately 30%
of our Australian Operations’ purchases are
made with reference to US$,
which provides
a natural hedge against foreign
exchange movements on these
purchases (including fuel, several
port handling
charges, demurrage,
purchased coal
and some
insurance premiums).
Appreciation of
the A$
against US$
will
increase our Australian Operations’ US$ reported cost
base and reduce US$ reported net income.
We
entered
into
forward
exchange
contracts
to
manage
the
foreign
currency
exposure
of
our
Australian
Operations by selling US$
generated from export
coal sales revenue at
Curragh and purchasing
A$ required to
settle
Curragh’s
A$
operating
costs.
The
fair
value
of
the
forward
foreign
currency
derivative
contracts
as
of
September 30, 2025 was an asset of $1.7 million.
For our
Australian Operations,
we translate
all monetary
assets and
liabilities at the
period end
exchange rate,
all non-monetary
assets and
liabilities at
historical
rates
and revenue
and expenses
at the
average exchange
rates in effect during
the periods. The net
effect of these
translation adjustments is
shown in the accompanying
Consolidated Financial Statements within components
of net income.
For the unhedged portion of US$ required to purchase
A$ to settle our Australian Operations’ operating costs,
a
10%
increase
in
the
A$
to
US$
exchange
rate
would
have
increased
reported
total
costs
and
expenses
by
approximately
$28.6
million
and
$77.0
million
for
the
three
and
nine
months
ended
September
30,
2025,
respectively.
Credit Risk
Credit risk is the risk of
sustaining a financial loss
as a result of a counterparty
not meeting its obligations
under
a financial instrument or customer contract.
We are exposed
to credit risk
when we have financial
derivatives, cash deposits,
lines of credit, letters
of credit
or bank guarantees
in place with
financial institutions.
To
mitigate against credit risk
from financial counterparties,
we have minimum credit rating requirements with financial
institutions where we transact.
We
are
also
exposed
to
counterparty
credit
risk
arising
from
our
operating
activities,
primarily
from
trade
receivables. Customers who wish to trade
on credit terms are subject to credit
verification procedures, including
an assessment of their independent credit rating, financial position, past experience and industry reputation.
We
monitor the financial performance
of counterparties on a routine
basis to ensure credit
thresholds are achieved.
Where required, we will request additional credit
support, such as letters of credit,
to mitigate against credit risk.
Credit
risk
is
monitored
regularly,
and
performance
reports
are
provided
to
our
management
and
Board
of
Directors.
As of September
30, 2025,
we had financial
assets of
$451.8 million,
consisting of
cash and
cash equivalents,
trade
and
other
receivables
and
restricted
deposits,
all
of
which
are
exposed
to
varied
levels
of
counterparty
credit risk. These
financial assets
have been assessed
under ASC 326,
Financial Instruments
– Credit Losses
,
and a provision for credit losses of $4.3 million was recorded
as of September 30, 2025.
Coronado Global Resources Inc.
ITEM 4.
CONTROLS AND PROCEDURES
Disclosure Controls and Procedures
We
maintain
disclosure
controls
and
procedures
that
are
designed
to
ensure
that
information
required
to
be
disclosed in our Exchange Act reports is recorded, processed, summarized and
reported within the time periods
specified
in
the
SEC’s
rules
and
forms,
and
that
such
information
is
accumulated
and
communicated
to
our
management, including the
Chief Executive Officer
and the Group
Chief Financial Officer, as appropriate,
to allow
timely
decisions
regarding
required
disclosure
based
solely
on
the
definition
of
“disclosure
controls
and
procedures” in Rule 13a-15(e) promulgated under the
Exchange Act. In designing and evaluating the disclosure
controls
and
procedures,
management
recognized
that
any
controls
and
procedures,
no
matter
how
well
designed and operated, can provide only reasonable
assurance of achieving the desired control
objectives, and
management necessarily was
required to apply
its judgment in
evaluating the cost-benefit
relationship of possible
controls and procedures.
As of the end
of the period
covered by this Quarterly
Report on Form
10-Q, we carried
out an evaluation
under
the supervision and
with the participation
of our
management, including the
Chief Executive Officer
and the
Group
Chief Financial
Officer, of the effectiveness of
the design and
operation of
our disclosure controls
and procedures.
Based on
the foregoing,
the
Chief Executive
Officer
and the
Group Chief
Financial
Officer
concluded
that our
disclosure controls and procedures were effective.
Changes to Internal Control over Financial Reporting
During the
fiscal quarter covered
by this
Quarterly Report on
Form 10-Q,
there were
no changes
in the
Company's
internal
control
over
financial
reporting,
as
such
term
is
defined
in
Rule
13a-15(f)
of
the
Exchange
Act,
that
materially
affected,
or
are
reasonably
likely
to
materially
affect,
the
Company’s
internal
control
over
financial
reporting.
Coronado Global Resources Inc.
PART II – OTHER
INFORMATION
ITEM 1.
LEGAL PROCEEDINGS
We are subject to various legal and
regulatory proceedings. For a description of our significant legal
proceedings
refer
to
Note 17. “Contingencies” to
the
unaudited
condensed
consolidated
financial
statements
included
in
Part I, Item 1. “Financial
Statements” of
this Quarterly
Report on
Form 10-Q,
which information
is incorporated
by reference herein.
ITEM 1A.
RISK FACTORS
Except as set forth below,
there were no material changes
to the risk factors previously
disclosed in Part I, Item
1A, “Risk Factors,” of
our Annual Report on
Form 10-K for the
year ended December 31,
2024, filed with the
SEC
and ASX
on February
19, 2025,
Part II,
Item 1A.
“Risk Factors”
of our
Quarterly Report
on Form
10-Q for
the
quarterly period ended March 31,
2025, filed with the SEC
and ASX on May 8, 2025,
and Part II, Item 1A. “Risk
Factors” of our Quarterly Report on
Form 10-Q for the quarterly
period ended June 30, 2025, filed
with the SEC
and ASX on August 11
,
2025. The risk factors presented
below should be read in conjunction
with all of the risk
factors disclosed in the Company’s Annual Report
on Form 10-K for the year ended December 31,
2024.
Operating
losses
and
negative
cash
flows
from
operations,
together
with
other
factors,
including
the
possibility
that
the
Company
may
not
be
able
to
obtain
covenant
waivers
or
otherwise
remediate
covenant
breaches,
could
cause
the
liquidity
provided
by
the
ABL
Facility
to
become
unavailable.
As
such, we may not have sufficient liquidity to sustain our operations and
to continue as a going concern.
The Company’s earnings
and cash flows from
operating activities have
been significantly impacted
by subdued
performance of Met
coal markets, which
has led to
low realized prices
for the coal
we sell. The
Company's current
operating forecasts, which are subject to volatility in Met coal prices and the achievement of forecast production,
indicate that
we will
continue to
incur losses
from operations
and generate
negative cash
flows from
operating
activities.
These
projections
and
certain
liquidity
risks
raise
substantial
doubt
about
whether
we
will
meet
our
obligations as they become
due within one year
after the date of
issuance of this
Quarterly Report on Form
10-
Q.
On
June
30,
2025,
S&P
downgraded
the
Company’s
credit
rating
from
‘B-’
to
‘CCC+’
and,
on
July
7,
2025,
Moody’s downgraded the Company’s credit
rating from ‘Caa1’
to ‘Caa2’, both
of which resulted
in a Review
Event
under the ABL
Facility.
On July
9, 2025, the
Company successfully
negotiated with
the Lender,
who confirmed
no changes to the terms
or the availability of the
ABL Facility,
thereby concluding each of
the Review Events.
A
potential further two
or more notches
downgrade to the
Company’s credit
rating by S&P
or Moody’s
may result
in an Event of Default under the ABL Facility.
On September
29, 2025,
we agreed
with the
Administrative Agent
under the
ABL Facility
to waive
compliance
with applicable
financial covenants
as at
September 30,
2025, and
reset the
conditions related
to credit
rating
downgrades such that a review event, default or event of default would not occur under the ABL Facility due to a
one notch downgrade to the Company’s credit rating by S&P or Moody’s as at September 29, 2025 (however an
event of default will occur
if there is a further two
or more notches downgrade
to the Company’s credit
rating by
S&P
or
Moody’s
as
at
September
29,
2025).
The
requirements
to
comply
with
financial
covenants
beyond
September 30, 2025, remained unchanged.
There is uncertainty in relation to the ongoing availability of the ABL Facility,
which is dependent on our ability to
comply with
financial covenants
on December
31, 2025,
and beyond.
Unless the
Company obtains
waivers or
deferment
of
financial
covenants
testing
periods,
any
breach
of
such
financial
covenants
would
constitute
an
event of default
under the terms
of the ABL
Facility and
the Administrative
Agent may declare
the commitment
of the Lender
to make the
loans to be
terminated, declare
the unpaid principal
amount of all
outstanding loans,
including all interest accrued
and unpaid thereon, any
make-whole premium and other
amounts owing or payable
to be immediately due and payable.
The indenture governing our Notes includes a cross-default provision.
If, following an event of default under the
ABL Facility,
the Lenders
declare all
amounts owing
under the
ABL Facility
immediately due
and payable,
we
may
be
required
to
immediately
repay
all
amounts
outstanding
under
the
Notes.
If
our
indebtedness
is
accelerated, we may not be able to
repay our debt or borrow sufficient
funds to refinance such indebtedness
on
favorable terms
or at
all. Furthermore,
if our
indebtedness
is accelerated,
we could
be forced
to pursue
other
strategic alternatives, including restructuring or reorganization.
As
a
result
of
these
factors,
including
the
Company’s
cash
flow
projections,
risks
to
available
liquidity,
the
continued
uncertainty
surrounding
global
coal
market
fundamentals,
such
as
the
impact
of
tariffs
on
the
Coronado Global Resources Inc.
Company’s export coal trade
and global supply chains,
and recent credit
rating downgrades, among others,
there
exists substantial doubt whether we will be able to continue
as a going concern.
The accompanying Condensed Consolidated Financial Statements
are prepared on a
going concern basis which
contemplates the realization
of assets and
discharge of liabilities
in the ordinary
course of business
and do not
include any
adjustments relating to
the recoverability and
classification of recorded
asset amounts or
the amounts
and classification of liabilities that might
result from the outcome of the
uncertainties described above. The report
from our
independent registered
public accounting
firm on
our Condensed
Consolidated Financial
Statements
for
the
quarter
ended
September
30,
2025
includes
an
explanatory
paragraph
that
indicates
the
existence
of
substantial doubt about our ability to continue as going concern.
We
may
not
realize
the
anticipated
benefits
of
the
Proposed
Transaction,
and
we
may
not
be
able
to
successfully
complete additional
initiatives intended
to improve
liquidity,
which could
have a
material
adverse effect on our business, financial condition
and results of operations.
On October 28,
2025, we announced
the Proposed Transaction
with Stanwell,
which includes a
combination of
financial support transactions intended to improve our short
and long-term financial position.
The
Proposed
Transaction
remains
non-binding
and
is
subject
to
completion
of
due
diligence,
definitive
documents and required external
approvals.
The Proposed Transaction includes: (1) Stanwell
providing a $265.0
million financing facility replacing the exiting ABL Facility; (2) Stanwell waiving remaining rebate payments under
the ACSA; (3) extension of the NCSA from 2037 to 2043; (4) Stanwell making additional prepayments in relation
to its future annual contract tonnage under the
ACSA and NCSA, which will bear interest and
be settled through
delivery of
coal
to Stanwell
in months
when
our liquidity
exceeds $300.0
million;
(5) change
of control
events
triggering
repayment
of
the
rebate
waived;
and
(6)
minimum
liquidity
requirements
to
declare
distributions
to
shareholders. There can be no assurance that the Proposed Transaction
will be completed on acceptable terms
or at all, or that we will realize the anticipated benefits of the
Proposed Transaction.
Our ability to make
scheduled debt payments, including under the
New ABL Facility with Stanwell,
or to refinance
our
debt
obligations,
depends
on
our
ability
to
generate
cash
in
the
future
and
our
financial
condition
and
operating
performance,
which
are
subject
to
prevailing
economic
and
competitive
conditions
and
to
certain
financial, business and other factors beyond our control. There can be no assurance that we
will maintain a level
of cash flows from operating activities sufficient to permit us to pay
the principal, premium (if any) and interest on
our debt.
In addition
to the
Proposed Transaction, we
continue to pursue
a number
of initiatives
intended to
improve liquidity
including, among other things, further operating and capital cost control measures, potential other debt and non-
debt funding measures, and whole or partial asset sales.
While management believes that the Proposed Transaction, if entered
into and once completed, would enhance
our
liquidity,
the
vast
majority
of
the
potential
funding
under
the
arrangement
is
delivered
over
time
and
not
upfront, and does
not eliminate uncertainties
in relation to
our future financial
performance, including our
ability
to achieve
production targets
and manage
working capital
fluctuations that
are material
at times
depending on
circumstances (production
and inventory
levels), due
to events
and factors
beyond our
control, and
sustained
weakness in Met coal market and consequential realized Met coal prices
.
There can be no assurance
that our plan to improve our
operating performance and financial
position, including
the Proposed Transaction
with Stanwell, will be
successful or that we
will be able to
obtain additional financing,
on commercially reasonable terms or at all. As
a result, our liquidity and ability to
timely pay our obligations when
due could be adversely
affected. Furthermore, our
creditors may resist
renegotiation or lengthening
of payment
and other
terms through legal
action or
otherwise. If
we are not
able to
timely, successfully or efficiently implement
the strategies that
we are pursuing
to improve our
operating performance and
financial position, obtain
alternative
sources
of
capital
or
otherwise
meet
our
liquidity
needs,
we
may
not
have
sufficient
liquidity
to
sustain
our
operations
and
to
continue
as
a
going concern,
which
could
have
a
material
adverse
effect
on
our
business,
financial condition and results of operations.
We could
be adversely
affected if we
fail to
appropriately provide financial
assurances for
our obligations.
Australian laws and
U.S. federal and
state laws require
us to provide
financial assurances related
to requirements
to reclaim lands used
for mining, to pay
federal and state workers’
compensation, to provide financial assurances
for coal
lease obligations
and to
satisfy other
miscellaneous obligations.
The primary
methods we
use to
meet
those obligations in the United
States are to provide a
third-party surety bond,
cash collateral or provide
a letter
of credit. As
of September
30, 2025, we
provided $20.0
million of third-party
surety bonds
and $71.9 million
as
Coronado Global Resources Inc.
cash collateral in connection with our U.S. Operations. There are no cash collateral requirements
to support any
of the outstanding bonds.
Our financial
assurance obligations
may increase
due to
a number
of factors,
including the
size of
our mining
footprint and
new government
regulations,
and
we may
experience
difficulty
procuring
or renewing
our surety
bonds. In addition, our bond issuers may demand higher fees or additional collateral, including letters of
credit or
other terms less favorable to us upon those renewals. Because we are required by federal and state law to have
these
bonds
or
other
acceptable
security
in
place
before
mining
can
commence
or
continue,
any
failure
to
maintain surety bonds, letters
of credit or other guarantees or
security arrangements would adversely
affect our
ability to mine coal. That failure
could result from a variety
of factors, including lack of
availability of surety bond
or letters of credit,
higher expense or
unfavorable market terms,
the exercise by
third-party surety bond
issuers
of their right
to refuse
to renew
the surety
and the
requirement to
provide collateral
for future
third-party surety
bond
issuers
under
the
terms
of
financing
arrangements.
If
we
fail
to
maintain
adequate
bonding,
our
mining
permits could be
invalidated, which would
prevent mining operations from
continuing, and future
operating results
could be materially and adversely affected.
In Australia, the
Financial Provisioning
Scheme Act
establishes the
way that our
Australian Operations
provide
for and manage associated costs of
providing financial assurances related to mine
rehabilitation obligations. EAs
undergo
an
annual
risk
category
allocation
assessment
process
to
determine
whether
the
company
will
be
required to
provide a
contribution to
the Scheme’s
Financial Provisioning
Fund and/or
to provide
surety to
the
Scheme Manager for that EA. The risk categories include high,
moderate, low and very low.
The Curragh
mine complex
EA number
EPML00643713 currently
has a
risk category
of “Moderate”
and, as
a
result, we are
required to
pay an annual
contribution to
the Scheme
of 2.75% of
the ERC amount.
On October
23, 2025, the
Scheme Manager under
the Financial Provisioning
Scheme Act advised
the Company that
it had
completed an indicative
decision related to
the Annual Review
Allocation for the
Curragh mine complex,
providing
an indicative allocation
of “High”. A
final Annual Review
Allocation has not
yet been made.
If the Curragh
mine
complex receives
a “High”
rating, then
we will
be required
to provide
a surety,
in the
form of
bank guarantees,
insurance bond or cash collateral, of
Curragh’s ERC of $242.7 million to the
scheme. Alternatively, if the Curragh
mine
complex
is
allocated
a
“Moderate-High”
rating,
we
will
be
required
to
pay
an
annual
contribution
to
the
Scheme of 6.5% of the ERC amount.
There can be no assurances that the Company will be able to obtain any applicable bank guarantees, insurance
bond or cash collateral
on commercially acceptable
terms or at all,
or that the Company
will be able to
pay any
applicable annual contribution to
the Scheme, which
could materially and adversely
impact our financial
condition
and results of operations.
For more
information on
the Financial
Provisioning Scheme
Act, see
Item 1. “Business
—Regulatory Matters—
Australia—Environmental
Protection
Act
1994
(Qld)”
of
our
Annual
Report
on
Form
10-K
for
the
year
ended
December 31, 2024, filed with the SEC and ASX on
February 19, 2025.
ITEM 2.
UNREGISTERED SALES OF EQUITY SECURITIES
AND USE OF PROCEEDS
None.
ITEM 3.
DEFAULTS
UPON SENIOR SECURITIES
None.
ITEM 4. MINE SAFETY DISCLOSURES
Safety is the cornerstone of the Company’s values and is the number one priority
for all employees at Coronado
Global Resources Inc.
Our U.S. Operations
include multiple mining
complexes across
three states and
are regulated by
both the U.S.
Mine Safety
and Health
Administration, or
MSHA, and
state regulatory
agencies. Under
regulations mandated
by the Federal Mine Safety and Health Act of 1977, or the Mine Act, MSHA inspects our U.S. mines on a regular
basis and issues various citations and orders when it believes
a violation has occurred under the Mine Act.
In accordance
with
Section 1503(a) of
the
Dodd-Frank
Wall
Street
Reform
and
Consumer
Protection
Act
and
Item
104
of
Regulation
S-K
(17
CFR
229.104),
each
operator
of
a
coal
or
other
mine in
the
United
States
is
required to report certain mine safety results
in its periodic reports filed with the SEC under the
Exchange Act.
Coronado Global Resources Inc.
Information
pertaining
to
mine
safety
matters
is
included
in
Exhibit 95.1
attached
to
this
Quarterly
Report
on
Form 10-Q. The disclosures reflect the United
States mining operations only, as these requirements do not
apply
to our mines operated outside the United States.
ITEM 5.
OTHER INFORMATION
During the
quarter ended
September 30,
2025,
no director
or officer
(as defined
in Rule
16a-1(f) promulgated
under the Exchange
Act) of the
Company
Coronado Global Resources Inc.
ITEM 6.
EXHIBITS
The following documents are filed as exhibits hereto:
Exhibit No.
Description of Document
3.1
3.2
10.1
15.1
31.1
31.2
32.1
95.1
101.INS
Inline XBRL Instance Document
101.SCH
Inline XBRL Taxonomy
Extension Schema Document
101.CAL
Inline XBRL Taxonomy
Extension Calculation Linkbase Document
101.DEF
Inline XBRL Taxonomy
Extension Definition Linkbase Document
101.LAB
Inline XBRL Taxonomy
Extension Label Linkbase Document
101.PRE
Inline XBRL Taxonomy
Extension Presentation Linkbase Document
104
Cover Page Interactive Data File (formatted as Inline
XBRL and contained in Exhibit 101)
Coronado Global Resources Inc.
SIGNATURES
Pursuant to the requirements
of the Securities Exchange
Act of 1934, the registrant
has duly caused this
report
to be signed on its behalf by the undersigned, thereunto
duly authorized.
Coronado Global Resources Inc.
By:
/s/ Barend J. van der Merwe
Barend J. van der Merwe
Group Chief Financial Officer (as duly authorized officer
and as principal financial officer of the registrant)
Date: November 10, 2025
TABLE OF CONTENTS
Part I, Item 1. Financial Statements Of This Quarterly Report on Form 10-q, Which Information Is IncorporatedItem 1A. Risk FactorsItem 2. Unregistered Sales Of Equity Securities and Use Of ProceedsItem 3. Defaults Upon Senior SecuritiesItem 4. Mine Safety DisclosuresItem 104 Of Regulation S-k (17 Cfr 229. 104), Each Operator Of A Coal Or Other Mine in The United States IsItem 5. Other InformationItem 6. Exhibits