UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM
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.
Steel starts
here.
Quarterly Report on Form 10-Q for the quarterly period
ended March 31, 2025.
TABLE OF CONTENTS
Page
4
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47
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)
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
9
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
Dividends payable
8
Asset retirement obligations
Contract obligations
Lease liabilities
9
Interest bearing liabilities
10
Income tax payable
Other current financial liabilities
11
Total
current liabilities
Non-current liabilities:
Asset retirement obligations
Contract obligations
Deferred consideration liability
Interest bearing liabilities
10
Other financial liabilities
11
Lease liabilities
9
Deferred income tax liabilities
Other non-current liabilities
Total
liabilities
$
$
Common stock $
December 31, 2024
Series A Preferred stock $
authorized,
December 31, 2024
Additional paid-in capital
Accumulated other comprehensive losses
15
(
134,734
)
(
137,560
)
Retained earnings
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
Note
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
(
17,898
)
(
13,329
)
(Increase) decrease in provision for credit losses
(
630
)
Other, net
(
2,213
)
Total
other expense, net
(
20,741
)
(
1,144
)
Loss before tax
(
134,032
)
(
33,113
)
Income tax benefit
Net loss attributable to Coronado Global Resources Inc.
$
(
96,198
)
$
(
29,001
)
Other comprehensive loss, net of income taxes:
Foreign currency translation adjustments
(
23,288
)
Total
comprehensive loss
(
23,288
)
Total
comprehensive loss attributable to Coronado Global
Resources
Inc.
$
(
93,372
)
$
(
52,289
)
Loss per share of common stock
Basic
13
(
0.57
)
(
0.17
)
Diluted
13
(
0.57
)
(
0.17
)
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
Total
paid in
comprehensive
Retained
stockholders
Shares
Amount
Series A
Amount
capital
losses
earnings
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
)
$
$
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
)
$
$
See accompanying notes to unaudited condensed
consolidated financial statements.
Coronado Global Resources Inc.
Unaudited Condensed Consolidated Statements of
Cash Flows
(In US$ thousands)
Three months ended
March 31,
2025
2024
Cash flows from operating activities:
Net loss
$
(
96,198
)
$
(
29,001
)
Adjustments to reconcile net income to cash and restricted cash
provided by
operating activities:
Depreciation, depletion and amortization
Amortization of right of use asset - operating leases
Amortization of deferred financing costs
Non-cash interest expense
Amortization of contract obligations
(
6,307
)
(
7,597
)
Loss on disposal of property,
plant and equipment
Loss on disposal of idled asset
Equity-based compensation expense
(
1,188
)
(
1,159
)
Deferred income taxes
(
36,817
)
(
671
)
Reclamation of asset retirement obligations
(
1,158
)
(
992
)
Increase (decrease) in provision for discounting and credit losses
(
173
)
Other non-cash adjustments
(
10,064
)
Changes in operating assets and liabilities:
Accounts receivable
(
46,184
)
Inventories
Other assets
Accounts payable
(
23,969
)
Accrued expenses and other current liabilities
(
34,881
)
(
44,686
)
Operating lease liabilities
(
5,564
)
(
6,108
)
Income tax payable
(
553
)
Change in other liabilities
Net cash used in operating activities
(
37,265
)
(
53,776
)
Cash flows from investing activities:
Capital expenditures
(
72,058
)
(
54,931
)
Proceeds from disposal of idle asset
Purchase of restricted and other deposits
(
325
)
(
381
)
Net cash used in investing activities
(
70,919
)
(
55,312
)
Cash flows from financing activities:
Principal payments on interest bearing liabilities and other financial
liabilities
(
1,384
)
(
822
)
Principal payments on finance lease obligations
(
160
)
(
35
)
Net cash used in financing activities
(
1,544
)
(
857
)
Net decrease in cash and cash equivalents
(
109,728
)
(
109,945
)
Effect of exchange rate changes on cash and cash
equivalents
(
195
)
(
4,406
)
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 paid (refund) for taxes
$
$
(
12,407
)
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 months
ended March 31,
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 subdued
performance of Met coal markets, which has led
to low realized prices for the coal
we sell. For the three months
ended March
31, 2025,
the Company
incurred
net losses
of $
from operating activities of $
As
of
March 31,
2025,
the
Company’s
aggregate
sources
of
liquidity
were $
of cash
and
cash
equivalents
(excluding
restricted
cash)
of
$
borrowing under the
ABL Facility (as
described in
Note 10. Interest
bearing liabilities
). On December
30, 2024,
the Company completed an
agreement, or the Waiver
Agreement, with the Administrative
Agent under the ABL
Facility
to
temporarily
waive
the
Company’s
compliance
with
the
interest
coverage
ratio
covenant
between
December 31, 2024 to March 30, 2025. Pursuant to the Waiver Agreement, the Company is required to maintain
an aggregate
cash
balance
of
at
least
$
Balance Covenant,
until such
time that
the Company
submit a
covenant compliance
certificate to
the Lenders
pursuant to the ABL
Facility which demonstrates
the Company is
in compliance with
the interest coverage
ratio
covenant.
Subsequently, the Company completed a waiver agreement with the Administrative Agent
under the ABL Facility
to defer
the financial
covenants test
period from
the
May 31, 2025,
and to waive
the Review Event
under the terms
of the ABL
Facility due to
the downgrade of
the
Company’s
credit
ratings
up
to
April
2025.
Pursuant
to
the
terms
of
this
waiver
agreement,
the
Company
is
required to cash collateralize the outstanding bank guarantees
issued under the ABL Facility and the committed
availability
for
revolving
loans
under
the
ABL
Facility
can
be
restricted
at
the
Lenders’
discretion.
In
addition,
pursuant to the terms
of this waiver agreement,
the Cash Balance
Covenant is reduced
by any amount
held as
cash collateral under the ABL Facility.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS
(Continued)
Coronado Global Resources Inc.
The Company's current operating forecasts, which include its current capital expenditure programs, indicate that
it will continue to incur losses from operations
and generate negative cash flows from
operating activities for the
remainder of 2025. In
the second half of
2025, the Company expects
an improvement in its
financial performance
as result of increased production volumes connected to the production ramp up of the new underground mine
at
the
Company’s
operations
in
Australia,
or
Australian
Operations,
and
completion
of
major
capital
program
at
operations in the U.S., or
U.S. Operations. Additionally,
there is significant uncertainty
in relation to the ongoing
availability of the ABL
Facility which is dependent on
the Company’s ability to obtain further waivers or
deferment
for
the
financial
covenants
test
periods
beyond
May
31,
2025,
and
the
maintenance
of
the
Cash
Balance
Covenant, or the Company’s ability to amend
or replace the ABL Facility on favorable terms or at all.
The Company’s
cash flow
projections, risks
to available
liquidity,
the continued
uncertainty surrounding
global
coal market fundamentals,
including the impact
of tariffs
on the Company’s
export coal trade
and global supply
chains, and recent
credit rating downgrades
raise substantial doubt
about whether the
Company will be
able to
meet its obligations as they become due within one year after the
date of this Quarterly Report on Form 10-Q.
The Company
continues to
pursue a
number of
initiatives including,
among other
things, further
operating and
capital cost control measures, potential other
funding measures, including refinancing, restructuring or amending
terms of our ABL
Facility with existing lenders or third
parties, prepayments for future coal sales,
temporary idling
of certain mining leases, and negotiated alternative payment
terms with creditors.
As of
the date
of these
Condensed Consolidated
Financial Statements,
the Company
has agreed
non-binding
term sheets
with independent
third-party lenders,
pursuant to
which these
parties may
provide an
asset-based
lending facility, or an
alternative facility,
with a borrowing base of up to $
While
management
has
developed
plans
intended
to
address
the
conditions
described
above
that
raised
substantial doubt
about the
Company’s ability
to continue
as a
going concern,
including pursuing
the potential
alternative asset-based lending facilities, the satisfaction of certain conditions are outside the Company’s control
and as such
management are
not able
to conclude
that the successful
completion of
such plans
is probable at
this time. However, management continues to actively pursue
these initiatives and remains confident
in its efforts
to secure additional sufficient liquidity and strengthen
the Company’s financial position.
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.
(b) Accounting Standards Not Yet
Implemented
ASU
No.
2023-09
“Income
Taxes”
(Topic
740)
:
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.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS
(Continued)
Coronado Global Resources Inc.
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
2024-03,
which
require
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
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.
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
100%-
owned
Curragh
producing
mine
complex.
The
U.S.
Operations
comprise
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 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 months ended
March 31, 2025
and 2024 are
presented below:
(in US$ thousands)
Australia
United
States
Other and
Corporate
Total
Three months ended March 31, 2025
Total
revenues
$
$
$
$
Less:
Mining costs
(1)
(
242,008
)
(
146,815
)
(
388,823
)
Other operating costs
(1)
(
96,359
)
(
28,503
)
(
124,862
)
Total
operating costs
(
338,367
)
(
175,318
)
(
513,685
)
Other and unallocated costs
(2)
(
275
)
(
8,350
)
(
8,379
)
Segment adjusted EBITDA
(
64,844
)
(
8,350
)
(
72,816
)
Total
assets
Capital expenditures
Three months ended March 31, 2024
Total
revenues
$
$
$
$
Less:
Mining costs
(1)
(
317,864
)
(
147,584
)
(
465,448
)
Other operating costs
(1)
(
144,869
)
(
35,637
)
(
180,506
)
Total
operating costs
(
462,733
)
(
183,221
)
(
645,954
)
Other and unallocated costs
(2)
(
8,380
)
(
7,574
)
Adjusted EBITDA
(
26,227
)
(
8,380
)
Total
assets
Capital expenditures
(1)
The significant expense category and amount aligns with the
segment-level information that is regularly provided
to the CODM.
(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
months
ended March 31, 2025 and 2024 are as follows:
Three months ended
March 31,
(in US$ thousands)
2025
2024
Consolidated Adjusted EBITDA
$
(
72,816
)
$
Depreciation, depletion and amortization
(
40,521
)
(
45,349
)
Interest expense, net
(1)
(
17,898
)
(
13,329
)
Other foreign exchange (losses) gains
(
332
)
Losses on idled assets
(3)
(
1,835
)
(
492
)
(Increase) decrease in provision for discounting and credit losses
(
630
)
Net loss before tax
(
134,032
)
(
33,113
)
Income tax benefit
Net loss
$
(
96,198
)
$
(
29,001
)
(1)
(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)
NOTES TO UNAUDITED CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS
(Continued)
Coronado Global Resources Inc.
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
three
months
ended
March 31, 2025 and 2024 are as follows:
Three months ended March 31,
(in US$ thousands)
2025
2024
Capital expenditures per unaudited Condensed Consolidated
Statements
of Cash Flows
$
$
Net movement in accruals for capital expenditures
Capital acquired through finance lease
Advance payment to acquire long lead capital
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.
Three months ended March 31, 2025
(in US$ thousands)
Australia
United States
Total
Product Groups:
Metallurgical coal
$
$
$
Thermal coal
Total
coal revenue
Other
(1)
Total
$
$
$
Three months ended March 31, 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
$
from coal sales contracts cancelled at our U.S. operations.
4.
Inventories
(in US$ thousands)
March 31,
2025
December 31,
2024
Raw coal
$
$
Saleable coal
Total
coal inventories
Supplies and other inventory
Total
inventories
$
$
Coal inventories measured
at its net realizable value
were $
and December 31, 2024, respectively.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS
(Continued)
Coronado Global Resources Inc.
5. Other Assets
(in US$ thousands)
March 31,
2025
December 31,
2024
Other current assets
Prepayments
$
$
Long service leave receivable
Tax
credits receivable
Deposits to acquire capital items
Other
Total
other current assets
$
$
6.
Property, Plant and
Equipment
(in US$ thousands)
March 31,
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)
March 31,
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
$
$
8. Dividends payable
On
February
19,
2025,
the
Company’s
Board
of
Directors
declared
a
bi-annual
fully
franked
fixed
ordinary
dividend of $
$
Australian dollars.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS
(Continued)
Coronado Global Resources Inc.
9.
Leases
During the
three months
ended March
31, 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
(in US$ thousands)
March 31, 2025
March 31, 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)
March 31,
2025
December 31,
2024
Operating leases:
Operating lease right-of-use assets
$
$
Finance leases:
Property and equipment
Accumulated depreciation
(
133
)
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
$
$
March 31,
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 March 31,
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
(
20,237
)
(
1,521
)
Total
lease liability
$
$
10.
Interest Bearing Liabilities
The following is a summary of interest-bearing liabilities
at March 31, 2025:
March 31, 2025
December 31, 2024
Weighted Average
Interest Rate at
March 31, 2025
Final
Maturity
% Senior Secured Notes
$
$
%
(2)
ABL Facility
Loan - Curragh Housing Transaction
%
(2)
Discount and debt issuance costs
(1)
(
11,685
)
(
12,165
)
Total
interest bearing liabilities
Less: current portion
(
1,422
)
(
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
March
31, 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,
dated as
of October
2, 2024,
or the
Indenture,
among
Coronado
Finance
Pty
Ltd,
as
issuer,
Coronado
Global
Resources
Inc,
as
guarantor,
the
subsidiaries
of
Coronado
Global
Resources
Inc,
named
therein,
as
additional
guarantors,
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.
Upon the occurrence of a “Change of Control Triggering Event”, as defined in the Indenture as the occurrence of
Change
of
Control
or
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.
As of March 31, 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,
were $
ABL Facility
On May
8, 2023,
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
a senior
secured asset-based
revolving credit
agreement in an
initial aggregate amount
of $
Australia Pty Ltd, as the Administrative Agent, Global
Loan Agency Services Australia Nominees Pty Ltd,
as the
Collateral Agent, the Hongkong and Shanghai Banking Corporation Limited, Sydney Branch, as the Lender, and
DBS Bank Limited, Australia Branch, as the Lender and, together
with the other Lender,
the Lenders.
The ABL Facility matures in August 2026 and provides for up to $
million
sublimit
for
the
issuance
of
letters
of
credit
and
$
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 March
31, 2025, the
eligible borrowing
base
under the ABL
Facility was $
of the
Company
under
the
letter
of credit
sublimit
and
$
availability under
the ABL
Facility reduced
to $
sublimit of ABL Facility.
Borrowings under
the ABL
Facility bear
interest at
a rate
per annum
equal to
an applicable
rate of
% plus
Bank
Bill Swap
Bid Rate,
or BBSY,
for
loans
denominated
in
A$,
or
the
Secured
Overnight
Finance
Rate,
or
SOFR, for loans denominated in US$, at the Company’
s
election.
The
ABL
Facility
contains
customary
representations
and
warranties
and
affirmative
and
negative
covenants
including, among
others, a
covenant regarding
the maintenance
of leverage
ratio to
be less
than
covenant regarding maintenance of interest coverage ratio to be more than
payment of dividends, or purchase or redemption of, with respect to any Equity Interests of Holdings or
any of its
Subsidiaries,
covenants
relating
to
financial
reporting,
covenants
relating
to
the
incurrence
of
liens
or
encumbrances, covenants relating to 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 Borrowers
and Guarantors’, collectively
the Loan Parties,
assets
and limitations on changes in the nature of the Loan Parties’
business.
On December 30, 2024, the Company completed the
Waiver Agreement with the Administrative Agent under the
ABL Facility
to temporarily
waive compliance
with the
ABL Facility’s
interest coverage
ratio covenant
between
December 31, 2024 to March 30,
2025, or the waiver period. Pursuant
the Waiver Agreement, the Company was
required
to
maintain
an
aggregate
cash
balance
of
at
least
$
Lenders,
or
the
Cash
Balance
Covenant,
until
such
time
that
the
Company
submit
a
covenant
compliance
certificate to
the Lenders
pursuant to
the ABL
Facility which
demonstrates the
Company is
in compliance
with
the interest coverage ratio covenant.
Subsequently, the Company completed a waiver agreement with the Administrative Agent
under the ABL Facility
to defer
the financial
covenants test
period from
the
May 31, 2025,
and to waive
the Review Event
under the terms
of the ABL
Facility due to
the downgrade of
the
NOTES TO UNAUDITED CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS
(Continued)
Coronado Global Resources Inc.
Company’s
credit
ratings
up
to
April
2025.
Pursuant
to
the
terms
of
this
waiver
agreement,
the
Company
is
required to cash collateralize the outstanding bank guarantees
issued under the ABL Facility and the committed
availability for revolving loans under the ABL
Facility can be restricted at the
ABL Lenders’ discretion. In addition,
pursuant to the terms
of this waiver agreement,
the Cash Balance
Covenant is reduced
by any amount
held as
cash collateral under the ABL Facility.
The committed availability of the ABL Facility is subject to Lenders’ discretion
and dependent on the Company’s
ability to obtain further waivers or deferment for the financial
covenants test periods beyond May 31, 2025.
Unless the Company obtains further waivers or deferment for the financial covenants test periods under the ABL
Facility, any
breach of such financial covenants
would constitute an event of
default under the terms
of the ABL
Facility and
the Lenders
shall declare
all amounts
owing under
the ABL
Facility immediately
due and
payable,
terminate such
Lenders’
commitments
under
the
ABL Facility,
require
the
Borrowers
to cash
collateralize
any
letter of credit obligations and/or exercise any and all remedies
and other rights under the ABL Facility.
Under the terms of the
ABL Facility,
a Review Event (as defined
in the ABL Facility)
is triggered if, among other
matters, a “change of control” (as defined in the ABL Facility)
occurs.
Following the
occurrence of
a Review
Event, the
Borrowers must
promptly meet
and consult
in good
faith with
the Administrative Agent and the Lenders to agree a
strategy to address the relevant Review Event including but
not limited
to a
restructure of
the terms
of the
ABL Facility
to the
satisfaction of
the Lenders.
If at
the end
of a
period of 20 business days after
the occurrence of the Review Event,
the Lenders are not satisfied with the
result
of their
discussion or
meeting with
the Borrowers
or do
not wish
to continue
to provide
their commitments,
the
Lenders may
declare all
amounts
owing under
the ABL
Facility
immediately due
and payable,
terminate such
Lenders’
commitments
under
the
ABL
Facility,
require
the
Borrowers
to
cash
collateralize
any
letter
of
credit
obligations and/or exercise any and all remedies and
other rights under the ABL Facility.
The
carrying
value
of
debt
issuance
costs,
recorded
as
“Other
non-current
assets”
in
the
Condensed
Consolidated Balance
Sheets was $
respectively.
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
11. “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.
The carrying value of the
loan, net of issuance costs of
$
million of which is classified as a current liability.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS
(Continued)
Coronado Global Resources Inc.
11. Other Financial Liabilities
The following is a summary of other financial liabilities
as at March 31, 2025:
March 31, 2025
December 31,
2024
Collateralized financial liabilities payable to third-party financing
companies
$
$
Collateralized financial liabilities - Curragh Housing Transaction
Debt issuance costs
(
954
)
(
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 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
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 $
31, 2025, $
12.
Income Taxes
For the
three months
ended March
31, 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
mine
depletion
deductions in the U.S.
and the rate results from
combining the annual effective tax rate
of the U.S. and
Australian
Operations. Accordingly,
the Company had an
income tax benefit of
$
$
relating to a valuation allowance on deferred tax assets
for the U.S.
Operations.
Income
tax
benefit
of
$
estimated annual effective tax rate of
% for the period.
The Company utilizes the
“more likely than not”
standard in recognizing
a tax benefit in
its financial statements.
For the three months ended
March 31, 2025, the Company
had
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 $
million as at March 31, 2025 and December 31, 2024,
respectively.
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.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS
(Continued)
Coronado Global Resources Inc.
The Company assessed the need for valuation allowances by evaluating future taxable income, available for tax
strategies and the reversal of temporary tax differences.
13.
Loss per Share
Basic earnings (loss) 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
March 31,
(in US$ thousands, except per share data)
2025
2024
Numerator:
Net loss attributable to Company stockholders
$
(
96,198
)
$
(
29,001
)
Denominator (in thousands):
Weighted average shares of common stock
outstanding
Weighted average diluted shares of common stock
outstanding
Loss Per Share (US$):
Basic
(
0.57
)
(
0.17
)
Dilutive
(
0.57
)
(
0.17
)
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.
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 March
31, 2025, there
were
basis.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS
(Continued)
Coronado Global Resources Inc.
Other Financial Instruments
The following methods
and assumptions
are used to
estimate the fair
value of other
financial instruments
as of
March 31, 2025 and December 31, 2024:
●
and
other
current
financial
liabilities:
The
carrying
amounts
reported
in
the
unaudited
Condensed
Consolidated Balance Sheets approximate fair value due to the
short maturity of these instruments.
●
values
approximate
the
carrying
values
reported
in
the
unaudited
Condensed
Consolidated
Balance
Sheets.
●
cost. As of March 31, 2025, there were
Facility.
The estimated
fair value
of the
Notes as
of March
31, 2025
was approximately
$
based upon quoted market
prices in a market that
is not considered active (Level
2). The estimated fair
value of the Curragh Housing loan is $
15.
Accumulated Other Comprehensive Losses
The Company’s Accumulated Other Comprehensive
Losses consists of foreign currency translation adjustment
of subsidiaries for which the functional currency is different
to the Company’s functional currency in
U.S. dollar.
Accumulated other comprehensive losses consisted of
the following at March 31, 2025:
(in US$ thousands)
Foreign
currency
translation
adjustments
Balance at December 31, 2024
$
(
137,560
)
Net current-period other comprehensive loss:
Loss in other comprehensive income before reclassifications
(
1,040
)
Gain on long-term intra-entity foreign currency transactions
Total
net current-period other comprehensive income
Balance at March 31, 2025
$
(
134,734
)
NOTES TO UNAUDITED CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS
(Continued)
Coronado Global Resources Inc.
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 March 31, 2025
are 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
March 31, 2025,
purchase commitments for
capital expenditures were
$
within the next twelve months.
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 March
31,
2025,
these
Australian
and
U.S.
commitments
under
take-or-pay
arrangements
totaled
$
which approximately $
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
insurances. As of March
31, 2025, the
Company had
outstanding surety
bonds of
$
from the letter of credit sublimit available under the ABL Facility.
For the
Australian Operations,
as at
March 31,
2025, the
Company had
bank guarantees
outstanding of
$
million, including $
respect of certain rail and port take-or-pay arrangements
of the Company.
As at
March 31, 2025,
the Company in
aggregate had total
outstanding bank guarantees
provided of $
to secure
its obligations
and commitments, including
$
under the ABL Facility.
Future regulatory changes
relating to these
obligations 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 $
for bank
guarantees not
issued under
the ABL
Facility,
other performance
obligations, various
other operating
NOTES TO UNAUDITED CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS
(Continued)
Coronado Global Resources Inc.
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.
In accordance
with the
terms of
the ABL
Facility,
the Company
may be
required
to cash
collateralize
the ABL
Facility to the extent of outstanding letters
of credit after the expiration or termination
date, including an event of
default, of
such letter
of credit.
As of
March 31,
2025,
such
Stamp duty on Curragh acquisition
On September 27, 2022, the Company received from
the Queensland Revenue Office, or QRO,
an assessment
of the stamp duty
payable on its
acquisition of the Curragh
mine in March
2018. The QRO assessed
the stamp
duty on this acquisition at an amount of $
2022,
the
Company
filed
an
objection
to
the
assessment.
The
Company’s
objection
was
based
on
legal
and
valuation advice obtained, which supported an estimated stamp duty
payable of $
the Curragh acquisition.
On January 9, 2024, the Company’s objection to the
assessed stamp duty was disallowed by the QRO.
As per the Taxation Administration Act (Queensland) 2001, the Company could only appeal or apply for a review
of QRO’s
decision if
it has
paid the
total assessed
stamp duty
of $
interest of $
On March 6, 2024,
the Company made an
additional payment, and
paid in full, the stamp
duty assessed by
the
QRO.
The Company disputes
the additional
amount of assessed
stamp duty and,
on March 11,
2024, filed its
appeal
with the Supreme
Court of Queensland.
The outcome of
the appeal remains
uncertain and as
such, no contingent
asset has been recognized at March 31, 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
March
31,
2025,
the
related
condensed
consolidated
statements
of
operations
and
comprehensive
income,
stockholders’
equity
and cash
flows
for the
three
months
ended March
31, 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
May 8, 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
our
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
on
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,
including
our
ability
to
amend
or
replace
the
ABL
Facility
(as
defined
below) on favorable terms or at all;
●
policies and
other barriers
to trade.
For example,
on March
12, 2025,
the U.S.
government imposed
a
25% tariff on steel
imports, and on April
2, 2025, the U.S.
government announced a
baseline 10% tariff
on certain imports and higher tariffs
on imports from certain countries. These
developments underscore
the risk and volatility in global supply chains, financial
markets and international trade policies;
●
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;
Coronado Global Resources Inc.
●
developments;
●
relating
to
mining
activities,
including
possible
impacts
on global
climate
issues,
which
could
result
in
increased
regulation
of
coal
combustion
and
requirements
to
reduce
GHG
emissions
in
many
jurisdictions, including federal and state government initiatives to control GHG emissions could increase
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 reduced
access to capital
and insurance;
●
one or more of our major
customers, including customers in the steel industry, 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;
●
require us to recognize impairment charges related to those assets;
●
Coronado Global Resources Inc.
●
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 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.
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.
Coronado Global Resources Inc.
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.
Segment Adjusted EBITDA is used as
a supplemental
financial measure
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 excludes these cost
components as
our CODM
does not
view these
costs as
directly attributabl
e
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 leading 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
domestically,
which is
used to generate
electricity, to Stanwell and
some thermal coal
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 months ended March 31, 2025, were significantly
impacted by subdued performance of
the
Met
coal
markets,
which
led
to
a
substantial
decline
in
market
prices
of
coal,
characterized
by
reduced
demand from
key steel
producing regions,
such as
China, Europe
and India,
macroeconomic uncertainty,
and
evolving trade dynamics,
which outweighed
the reduced supply
from expected
wet weather
in the beginning
of
the year.
The Australian
Premium Low
Volatile
Hard Coking
Coal index,
or AUS
PLV
HCC, averaged
$185.1 per
Mt for
the three months ended March
31, 2025, $123.3 per
Mt lower compared to the
same period in 2024, and
$17.7
Mt lower compared to the three months ended December
31, 2024.
Although coal
markets
remained
unfavorable
during
the quarter,
our
U.S.
and
Australia
operations
performed
broadly in
line with
our expected
results.
Overall run-of-mine, or
ROM, coal
production was
on plan
despite above-
average seasonal wet
weather at our
Australian Operations and
lost-time due to
unforeseen equipment downtime
and
adverse
geological
features
impacting
production
yield
at
our
U.S.
Operations.
These
challenges
were
effectively
managed,
reflecting
the
operational
resilience
and
discipline
across
our
business.
Our
saleable
production was
3.5 MMt
for the
three months
ended March
31, 2025,
0.1 MMt
higher than
the same
period in
2024. Sales volume
of 3.4 MMt
for the three
months ended
March 31, 2025,
was 0.3 MMt
lower than the
three
months ended
March 31,
2024. Higher
sales volume
for the
three months
ended March
31, 2024
was largely
driven by our
Australian Operations,
which drew on
significant coal inventory
available, built in
December 2023
due to logistical issues at port.
Coal revenues of $441.5
million for the three
months ended March 31,
2025, decreased $191.5 million compared
to the same
period in 2024,
driven by $53.0
per Mt sold
lower average Met
realized price
compared to
the first
quarter in 2024.
Mining costs
for the
three months
ended March
31, 2025,
were $76.6
million lower
compared to
the corresponding
period in
2024,
driven primarily
by contractor
fleets
demobilized
at our
Australian
Operations
in
2024 and
the
Coronado Global Resources Inc.
associated
cost
savings,
and
favorable
average
foreign
exchange
rates
on
translation
of
the
Australian
Operations for the
three months ended
March 31, 2025.
Mining costs per
Mt sold was
$112.8 for the three
months
ended March
31, 2025,
which was
$12.8 per
Mt sold
lower compared
to three
months ended
March 31,
2024,
driven by lower mining costs partially offset by
lower sales volume of 0.3 MMt.
Liquidity and Going Concern
Coronado
had
cash
and
cash
equivalents
(excluding
restricted
cash)
of
$229.5
million
and
$95.7
million
of
undrawn capacity under a senior secured asset-based revolving credit agreement in an initial aggregate amount
of $150.0 million, or the ABL Facility,
as of March 31, 2025. Our net debt of
$194.9 million as of March 31, 2025
comprised of $424.4 million
of aggregate principal amount
of interest-bearing liabilities outstanding less
cash and
cash equivalents (excluding restricted cash).
On December
30, 2024,
we completed
an agreement,
or the
Waiver Agreement,
with the
Administrative Agent
under the ABL Facility to temporarily waive the Company’s compliance with the interest coverage ratio covenant
between December 31, 2024 to March 30, 2025.
Pursuant to the Waiver Agreement, we are required to maintain
an
aggregate
cash
balance
of
at
least
$100.0
million
until
such
time
that
we
submit
a
covenant
compliance
certificate to
the Lenders
pursuant to
the ABL
Facility
which demonstrates
that we
are in
compliance
with the
interest coverage ratio covenant.
Subsequently,
we completed a
waiver agreement
with the Administrative
Agent under
the ABL Facility
to defer
the financial
covenants test
period from
the twelve
months to
March 31,
2025 to
the twelve
months to
May 31,
2025
and
to
waive
the
Review
Event
under
the
terms
of the
ABL
Facility
due
to
the
downgrade
of
our credit
ratings up to April 2025. Pursuant to the terms of this waiver agreement we are required to cash collateralize the
outstanding
bank
guarantees
issued
under
the
ABL
facility
and
the
committed
availability
for
revolving
loans
under the ABL Facility can be restricted
at the ABL Lenders’ discretion.
In addition, pursuant to the terms
of this
waiver agreement, the Cash Balance Covenant is reduced by any amount held as cash collateral under the ABL
Facility.
The committed
availability of
the ABL
Facility is
subject to
Lenders’ discretion
and dependent
on our
ability to
obtain further waivers or deferment for the financial covenants
test periods beyond May 31, 2025.
Our cash
flow projections,
risks to
available liquidity,
the continued
uncertainty surrounding
global coal
market
fundamentals, including the impact of tariffs
on our export coal trade and global supply chains,
and recent credit
rating downgrades raise substantial
doubt about whether the
Company will be able
to meet its
obligations as they
become due within one year after the date of this Quarterly
Report on Form 10-Q.
While
management
has
developed
plans
intended
to
address
the
conditions
described
above
that
raised
substantial doubt
about our
ability to
continue
as a
going concern,
including pursuing
the potential
alternative
asset-based lending facilities, satisfaction of certain conditions are outside our control and as such management
are
not
able
to
conclude
that
the
successful
completion
of
such
plans
is
probable
at
this
time.
However,
management continues to actively
pursue these initiatives and
remains confident in its
efforts to secure additional
sufficient liquidity and strengthen our financial
position.
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 March
31, 2025
was 2.57,
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 March
31, 2025 was
1.5, 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
to improve
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.
Coronado Global Resources Inc.
Three Months Ended March 31, 2025 Compared to
Three Months Ended March 31, 2024
Summary
The financial and operational highlights for the three months
ended March 31, 2025 include:
●
to a loss of
$29.0 million for
the three months ended
March 31, 2024. Higher
losses were primarily
due
to lower average realized
prices
and lower sales
volume,
which were partially
offset by lower
operating
costs and higher income tax benefit.
●
$53.0 per
Mt sold
lower compared
to $204.3
per Mt
sold for
the same
period
in 2024.
Lower realized
prices were a
result of the
declining coking coal
index prices due
to soft demand
from key steel-producing
markets.
●
the same period
in 2024. Higher
sales in the
first quarter of
the prior year
was driven by
the availability
of higher opening
port stocks caused by
logistical issues in December
2023 at our Australian
Operations.
●
adjusted EBITDA of $14.6 million
for the three months ended
March 31, 2024. The loss
was due to lower
coal sales revenues,
partially offset by lower operating costs.
Three months ended
March 31,
2025
2024
Change
%
(in US$ thousands)
Revenues:
Coal revenues
$
441,451
$
632,993
$
(191,542)
Other revenues
7,797
35,156
(27,359)
Total
revenues
449,248
668,149
(218,901)
Costs and expenses:
Cost of coal revenues (exclusive of items
shown separately below)
390,291
472,521
(82,230)
Depreciation, depletion and amortization
40,521
45,349
(4,828)
Freight expenses
60,188
56,822
3,366
Stanwell rebate
21,853
31,451
(9,598)
Other royalties
41,353
85,160
(43,807)
Selling, general, and administrative expenses
8,333
8,815
(482)
Total
costs and expenses
562,539
700,118
(137,579)
Other income (expenses):
Interest expense, net
(17,898)
(13,329)
(4,569)
(Increase) decrease in provision for
credit losses
(630)
173
(803)
Other, net
(2,213)
12,012
(14,225)
Total
other expenses, net
(20,741)
(1,144)
(19,597)
Net loss before tax
(134,032)
(33,113)
(100,919)
Income tax benefit
37,834
4,112
33,722
Net loss attributable to Coronado Global
Resources, Inc.
$
(96,198)
$
(29,001)
$
(67,197)
Coal Revenues
Coal revenues
were $441.5
million for
the three
months ended
March 31,
2025, a
decrease of
$191.5 million,
compared to $633.0 million for the three months ended
March 31, 2024. This decrease was primarily attributable
to lower average realized Met price and lower export Met sales
volume.
Coronado Global Resources Inc.
Other Revenues
Other revenues typically
include amortization of
the Stanwell non-market
coal supply contract
obligation liability
applicable to our Australian Operations. Other
revenues in the 2024 period included a
non-recurring termination
fee of $25.0 million from the coal sales contract cancelled
at our U.S. Operations.
Cost of Coal Revenues (Exclusive of Items Shown
Separately Below)
Cost of coal revenues comprise costs related
to produced tons sold, along with
changes in both the volumes and
carrying
values
of
coal
inventory.
Cost
of
coal
revenues
include
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
$390.3
million
for the
three
months
ended
March
31,
2025, $82.2
million,
or
17.4% lower, compared to
$472.5 million for the three months ended March 31, 2024.
Cost
of coal
revenues
for
our Australian
Operations
for the
three
months
ended
March
31, 2025,
were $78.4
million
lower
compared
to
the
same
period
in
2024,
primarily
driven
by
cost
savings
from
demobilization
of
contractor fleets
since late March
2024 and associated
costs, following completion
of the
historical pre-strip waste
deficit works and favorable average foreign exchange rates
on translation of the Australian Operations.
Cost of coal
revenues for our U.S.
Operations for the three
months ended March 31,
2025, was $3.8 million
lower
compared to the three months ended March
31, 2024, attributable to lower coal purchases
and higher inventory
stockpiles, as saleable production exceeded sales volume.
Depreciation, Depletion and Amortization
Depreciation,
depletion
and
amortization
was
$40.5
million
for
the
three
months
ended
March
31,
2025,
a
decrease of $4.8
million, compared to
$45.3 million for
the three months
ended March 31,
2024. The decrease
was
associated
with
changes
to
depreciation
rates
following
annual
useful
life
review
and
favorable
average
foreign exchange rates on translation of the Australian
Operations.
Stanwell Rebate
The Stanwell rebate
was $21.9
million for the
three months
ended March
31, 2025,
a decrease
of $9.6 million,
compared to $31.5 million for
the three months ended March
31, 2024. The decrease was largely
driven by lower
realized
reference
coal
pricing
for the
prior
twelve-month
period
applicable
to
three
months
ended
March
31,
2025, used
to calculate
the rebate
compared to
the same
period in
2024, and
favorable foreign
exchange rate
on translation of our Australian Operations.
Other Royalties
Other
royalties
were
$41.4
million
in
the
three
months
ended
March
31,
2025,
a
decrease
of
$43.8
million
compared to $85.2 million for the three months
ended March 31, 2024, a product of lower
coal revenues coupled
with a favorable foreign exchange rate on translation
of our Australian Operations.
Interest expense, net
Interest expense, net was
$17.9 million for the
three months ended
March 31, 2025, an
increase of $4.6 million
compared
to
$13.3
million
for
the
three
months
ended
March
31,
2024.
The
increase
was
driven
by
higher
average
indebtedness,
due
to
additional
borrowings
under
the
Notes
and
the
Curragh
Housing
Transaction,
during the
three months
ended March
31, 2025,
compared to
the same
period in
2024, and
partially offset
by
higher interest income on cash equivalents and restricted
deposits.
Other, net
Other, net
was at a loss of
$2.2 million for the three
months ended March 31,
2025, a decrease of
$14.2 million
compared to an income
of $12.0 million for
the three months
ended March 31, 2024.
The decrease was
largely
attributable to
the lower
foreign exchange
losses in
the translation
of short-term
inter-entity balances
between
certain
entities
within
the
group
that
are
denominated
in
currencies
other
than
their
respective
functional
currencies.
Coronado Global Resources Inc.
Income Tax Benefit
Income tax benefit
was $37.8
million for the
three months ended
March 31, 2025
,
an increase of
$33.7 million,
compared to
$4.1 million
for the
three months
ended March
31, 2024,
driven by
a higher loss
before tax
in the
2025 period.
We have
historically
calculated
the provision
for income
taxes during
interim reporting
periods
by applying
an
estimate of the annual effective tax rate for the full fiscal year to “ordinary”
income or loss (pretax income or loss
excluding unusual or
infrequently occurring
discrete items)
for the reporting
period. We
used an actual
discrete
geographical effective tax rate method to calculate
taxes for the three-month period ended March 31,
2024.
Supplemental Segment Financial Data
Three months ended March 31, 2025 compared to three months
ended March 31, 2024
Australia
Three months ended
March 31,
2025
2024
Change
%
(in US$ thousands)
Sales volume (MMt)
2.2
2.5
(0.3)
(10.7)%
Total
revenues ($)
273,277
436,106
(162,829)
(37.3)%
Coal revenues ($)
266,024
427,597
(161,573)
(37.8)%
Average realized price per Mt sold ($/Mt)
118.3
169.8
(51.5)
(30.3)%
Met coal sales volume (MMt)
1.6
1.8
(0.2)
(9.8)%
Met coal revenues ($)
250,065
408,303
(158,238)
(38.8)%
Average realized Met price per Mt sold ($/Mt)
152.9
225.2
(72.3)
(32.1)%
Mining costs ($)
242,008
317,864
(75,856)
(23.9)%
Mining cost per Mt sold ($/Mt)
107.6
126.9
(19.3)
(15.2)%
Operating costs ($)
338,367
462,733
(124,366)
(26.9)%
Operating costs per Mt sold ($/Mt)
150.5
183.7
(33.2)
(18.1)%
Segment Adjusted EBITDA ($)
(64,844)
(26,227)
(38,617)
147.2%
Coal revenues for our Australian Operations, for the three months ended March 31, 2025, were $266.0 million, a
decrease of
$161.6 million,
or 37.8%, compared
to $427.6
million for
the three
months ended
March 31, 2024
.
This decrease was largely driven by
average realized Met price per Mt
sold of $152.9, $72.3 lower compared
to
$225.2 per Mt sold
during the same period
in 2024, and 0.2
MMt lower Met sales
volume, partially offset
by the
benefits of lower thermal coal sales to Stanwell at below
market rates.
Operating costs decreased by
$124.4 million, or 26.9%,
for the three months ended
March 31, 2025, compared
to the
three months
ended March
31, 2024,
driven by
lower mining
costs, Stanwell
rebate and
other royalties.
Mining costs
were $75.9
million lower
for the
three months
ended March
31, 2025,
driven primarily
by cost
savings
from demobilization
of contractor fleets
in 2024 and
favorable average
foreign exchange rates
on translation
of
our Australian
Operations.
Mining and
Operating
costs per
Mt sold
were $19.3
and $33.2
lower,
respectively,
compared to the same period in 2024, despite lower sales volume
.
Segment Adjusted EBITDA loss
of $64.8 million for the three
months ended March 31, 2025,
was $38.6 million,
or 147.2%, higher compared to $26.2 million for the three months ended March 31, 2024, largely driven
by lower
coal revenues,
partially offset by lower operating costs.
Coronado Global Resources Inc.
United States
Three months ended
March 31,
2025
2024
Change
%
(in US$ thousands)
Sales volume (MMt)
1.2
1.2
—
(2.2)%
Total
revenues ($)
175,971
232,043
(56,072)
(24.2)%
Coal revenues ($)
175,427
205,396
(29,969)
(14.6)%
Average realized price per Mt sold ($/Mt)
146.5
167.8
(21.3)
(12.7)%
Met coal sales volume (MMt)
1.2
1.1
0.1
1.6%
Met coal revenues ($)
171,437
193,531
(22,094)
(11.4)%
Average realized Met price per Mt sold ($/Mt)
149.0
170.9
(21.9)
(12.8)%
Mining costs ($)
146,815
147,584
(769)
(0.5)%
Mining cost per Mt sold ($/Mt)
122.6
122.9
(0.3)
(0.2)%
Operating costs ($)
175,318
183,221
(7,903)
(4.3)%
Operating costs per Mt sold ($/Mt)
146.5
149.7
(3.2)
(2.1)%
Segment Adjusted EBITDA ($)
378
49,228
(48,850)
(99.2)%
Coal
revenues
for
our
U.S.
Operations
decreased
by
$30.0
million,
or
14.6%,
to
$175.4
million
for
the
three
months ended
March 31,
2025, compared
to $205.4
million for
the three
months
ended March
31, 2024.
The
decrease was
attributed to
lower average
realized Met
price per
Mt sold
of $149.0
for the
three months
ended
March 31, 2025, $21.9 per Mt sold lower than the 2024 period, caused by declining benchmark prices and lower
prices achieved from annual domestic price contracts
compared to 2024.
Operating
costs
decreased
by
$7.9
million
to
$175.3
million
for
the
three
months
ended
March
31,
2025,
compared to the
three months
ended March
31, 2024,
due to
lower coal purchase,
lower freight expenses
and
other royalties.
Mining
costs
remained
broadly
in
line
with
the same
period
in
2024, as
the
benefits
of higher
inventory stock
from higher production,
were offset
by unforeseen maintenance
costs resulting from
equipment
breakdowns and adverse geological conditions.
Segment
Adjusted
EBITDA
of
$0.4
million
for
the
three
months
ended
March
31,
2025,
decreased
by
$48.9
million
compared
to
$49.2
million
for
the
three
months
ended
March
31,
2024,
primarily
driven
by
lower
coal
revenues and other revenues, partially offset by
lower operating costs.
Corporate and Other Adjusted EBITDA
The following table presents a summary of the components
of Corporate and Other Adjusted EBITDA:
Three months ended
March 31,
2025
2024
Change
%
(in US$ thousands)
Selling, general, and administrative expenses
$
8,333
$
8,815
$
(482)
(5.5)%
Other, net
17
(435)
452
(103.9)%
Total
Corporate and Other Adjusted EBITDA
$
8,350
$
8,380
$
(30)
(0.4)%
Corporate and
other Adjusted
EBITDA of
$8.4 million
for the
three months
ended March
31, 2025,
was largely
consistent with the three months ended March 31, 2024
.
Coronado Global Resources Inc.
Mining and
operating costs
for the
three months
ended March
31, 2025
compared to
three months
ended March 31, 2024
A reconciliation of
segment costs and
expenses, segment operating
costs, and segment
mining costs is
shown
below:
Three months ended March 31, 2025
(in US$ thousands)
Australia
United
States
Other /
Corporate
Total
Consolidated
Total costs and
expenses
$
355,125
$
198,538
$
8,876
$
562,539
Less: Selling, general and administrative
expense
—
—
(8,333)
(8,333)
Less: Depreciation, depletion and amortization
(16,758)
(23,220)
(543)
(40,521)
Total operating costs
338,367
175,318
—
513,685
Less: Other royalties
(32,414)
(8,939)
—
(41,353)
Less: Stanwell rebate
(21,853)
—
—
(21,853)
Less: Freight expenses
(40,624)
(19,564)
—
(60,188)
Less: Other non-mining costs
(1,468)
—
—
(1,468)
Total mining costs
242,008
146,815
—
388,823
Sales Volume excluding non-produced
coal
(MMt)
2.2
1.2
—
3.4
Mining cost per Mt sold ($/Mt)
107.6
122.6
—
112.8
Three months ended March 31, 2024
(in US$ thousands)
Australia
United
States
Other /
Corporate
Total
Consolidated
Total costs and
expenses
$
483,672
$
207,346
$
9,100
$
700,118
Less: Selling, general and administrative
expense
(11)
—
(8,804)
(8,815)
Less: Depreciation, depletion and amortization
(20,928)
(24,125)
(296)
(45,349)
Total operating costs
462,733
183,221
—
645,954
Less: Other royalties
(75,987)
(9,173)
—
(85,160)
Less: Stanwell rebate
(31,451)
—
—
(31,451)
Less: Freight expenses
(33,461)
(23,361)
—
(56,822)
Less: Other non-mining costs
(3,970)
(3,103)
—
(7,073)
Total mining costs
317,864
147,584
—
465,448
Sales Volume excluding non-produced
coal
(MMt)
2.5
1.2
—
3.7
Mining cost per Mt sold ($/Mt)
126.9
122.9
—
125.6
Average realized Met price per Mt sold for the three months ended March 31,
2025 compared to three
months ended March 31, 2024
A reconciliation of the Company’s average realized
Met price per Mt sold is shown below:
Three months ended
March 31,
2025
2024
Change
%
(in US$ thousands)
Met coal sales volume (MMt)
2.8
2.9
(0.1)
(5.4)%
Met coal revenues ($)
421,502
601,834
(180,332)
(30.0)%
Average realized Met price per Mt sold ($/Mt)
151.3
204.3
(53.0)
(26.0)%
Coronado Global Resources Inc.
Reconciliation of Non-GAAP Financial Measures
Adjusted EBITDA
Three months ended
March 31,
(in US$ thousands)
2025
2024
Reconciliation to Adjusted EBITDA:
Net loss
$
(96,198)
$
(29,001)
Add: Depreciation, depletion and amortization
40,521
45,349
Add: Interest expense (net of interest income)
17,898
13,329
Add: Other foreign exchange losses (gains)
332
(11,263)
Add: Income tax benefit
(37,834)
(4,112)
Add: Losses on idled assets
1,835
492
Add: Increase (decrease) in provision for credit losses
630
(173)
Adjusted EBITDA
$
(72,816)
$
14,621
Liquidity and Capital Resources
Overview
Our objective is
to maintain a
prudent capital structure
and to ensure
that sufficient
liquid assets and
funding is
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
expenditure,
debt
service
obligations,
business
or assets
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.
Sources of liquidity as of March 31, 2025 and December
31, 2024 was as follows:
(in US$ thousands)
March 31,
2025
December 31,
2024
Cash and cash equivalents, excluding restricted cash
$
229,451
$
339,374
Availability under the ABL Facility
(1)
95,658
128,563
Total
$
325,109
$
467,937
(1)
The ABL
Facility provides
for up
to $150.0
million in
borrowings, including
a $100.0
million sublimit
for the
issuance of
letters of credit, of
which $21.7 million has
been issued as
of March 31,
2025, and a $70.0
million sublimit as a
revolving credit
facility.
The
letter
of
credit
sublimit
contributes
to
our
liquidity
as
the
Company
has
the
ability
to
replace
cash
collateral,
provided in the
form of restricted
deposits, with letters
of credit allowing
the release of
such restricted deposits
to cash and
cash equivalents.
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 April 20, 2025, availability under the
ABL Facility reduced
to $76.0 million.
Coronado Global Resources Inc.
Our total indebtedness as of March 31, 2025 and December 31,
2024 consisted of the following:
(in US$ thousands)
March 31,
2025
December 31,
2024
Current installments of interest bearing liabilities
$
1,537
$
1,477
Interest bearing liabilities, excluding current installments
422,815
422,995
Current installments of other financial liabilities and other
finance lease obligations
7,587
6,163
Other financial liabilities and finance lease obligations, excluding
current installments
26,164
19,694
Total
$
458,103
$
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 March 31, 2025. As a
result, on December 30,
2024, we completed an agreement with the Administrative Agent under the ABL Facility to temporarily waive the
Company’s
compliance
with
the
interest
coverage
ratio
covenant
between
December
31,
2024
to
March
30,
2025.
Subsequently, the Company completed a waiver agreement with the Administrative Agent
under the ABL Facility
to defer
the financial
covenants test
period from
the twelve
months to
March 31,
2025 to
the twelve
months to
May 31,
2025 and
to waive certain
other covenants. Pursuant
to the
terms of
this waiver agreement,
the Company
is required to
cash collateralize the outstanding
bank guarantees issued under
the ABL facility and
the committed
availability for revolving loans under the ABL Facility can be
restricted at the ABL Lenders’ discretion.
As of
the date
of this
Quarterly Report
on Form
10-Q, the
Company has
agreed non-binding
term sheets
with
independent third-party lenders, pursuant
to which these parties
may provide an asset-based
lending facility,
or
an alternative facility,
with a borrowing base of up to $150.0 million.
We continue
to pursue
a number
of initiatives
including, among
other things,
further operating
and capital
cost
control measures,
potential
other funding
measures,
including refinancing,
restructuring
or amending
terms
of
our ABL
Facility with existing
lenders or
third parties, prepayments
for future
coal sales, temporary
idling of
certain
mining leases, and negotiated alternative payment terms
with creditors.
There can be
no assurance that
we will be
successful in the
execution of such
plans. However,
we continue
to
actively pursue
these initiatives
and remain confident
in our efforts
to secure
additional liquidity
and strengthen
our financial position.
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
surplus
to
immediate
working
capital
requirements
are
invested
in
short-term
interest-bearing
deposit
accounts
or
used
to
repay
interest
bearing
liabilities.
ABL Facility
The ABL Facility matures in August 2026 and provides for up to $150.0 million in borrowings, including a $100.0
million
sublimit
for
the
issuance
of
letters
of
credit
and
$70.0
million
sublimit
as
a
revolving
credit
facility.
Borrowing
capacity
under
the
ABL
Facility
is
limited
to
an
eligible
borrowing
base,
determined
by
applying
customary advance rates to eligible accounts receivable and inventory.
Borrowings under
the ABL
Facility bear
interest at
a rate
per annum
equal to
applicable rate
of 2.80%
and the
BBSY,
for loans denominated in A$, or SOFR, for loans
denominated in US$, at the Borrower’s election.
Coronado Global Resources Inc.
As of
March 31, 2025,
the letter of
credit sublimit had
been partially used
to issue $21.7
million of
bank guarantees
on
behalf
of
the
Company
and
no
amounts
were
drawn
and
no
letters
of
credit
were
outstanding
under
the
revolving credit sublimit of the ABL Facility.
On December 30, 2024, the Company completed the
Waiver Agreement with the Administrative Agent under the
ABL Facility
to temporarily
waive compliance
with the
ABL Facility’s
interest coverage
ratio covenant
between
December 31, 2024 to March 30, 2025, or the waiver period. Pursuant the Waiver
Agreement, the Company will
be
required
to
maintain
the
Cash
Balance
Covenant,
until
such
time
that
we
submit
a
covenant
compliance
certificate to
the Lenders
pursuant to
the ABL
Facility which
demonstrates the
Company is
in compliance
with
the interest coverage
ratio covenant. The
Cash Balance Covenant
commenced on February
19, 2025, the
time
that the Company submitted its covenant compliance
certificate for December 31, 2024.
Subsequently, the Company completed a waiver agreement with the Administrative Agent
under the ABL Facility
to defer
the financial
covenants test
period from
the twelve
months to
March 31,
2025 to
the twelve
months to
May 31,
2025 and
to waive
the Review
Event under
the terms
of the ABL
Facility due
to the
downgrade of
the
Company’s
credit
ratings
up
to
April
2025.
Pursuant
to
the
terms
of
this
waiver
agreement
the
Company
is
required to cash collateralize the outstanding bank guarantees
issued under the ABL Facility and the committed
availability for revolving loans under the ABL
Facility can be restricted at the
ABL Lenders’ discretion.
In addition,
pursuant the terms
of this waiver
agreement, the Cash Balance
Covenant is reduced
by any amount
held as cash
collateral under the ABL Facility.
The committed
availability
of the
ABL Facility
is subject
to the
ABL Lenders’
discretion
and dependent
on the
Company’s ability to obtain further waivers or deferment for the financial covenants test periods beyond May 31,
2025.
Unless the Company obtains further waivers or deferment for the financial covenants test periods under the ABL
Facility, any
breach of such financial covenants
would constitute an event of
default under the terms
of the ABL
Facility and
the Lenders
shall declare
all amounts
owing under
the ABL
Facility immediately
due and
payable,
terminate such
Lenders’
commitments
under
the
ABL Facility,
require
the
Borrowers
to cash
collateralize
any
letter of credit obligations and/or exercise any and all remedies
and other rights under the ABL Facility.
Refer to Part I, Item 1, Note 10. “Interest Bearing Liabilities”
for further information.
9.250% Senior Secured Notes
As of
March 31,
2025, the
aggregate principal
amount of
the 9.250%
Senior Secured
Notes due
2029, or
the
Notes, outstanding 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,
dated as
of October
2, 2024, among
Coronado Finance
Pty Ltd, as
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,
or
the
Indenture.
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”, as defined in the Indenture as the occurrence of
Change
of
Control
or
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.
As of March 31, 2025, the Company was in compliance with
all applicable covenants under the Indenture.
Refer to Part I, Item 1, Note 10. “Interest Bearing Liabilities
”
for further information.
Coronado Global Resources Inc.
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.
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 10. “Interest
Bearing Liabilities”
and Note 11.
“Other Financial
Liabilities” for further
information.
Finance leases
During the
three months
ended March
31, 2025,
the Company
entered into
various finance
lease agreements.
Our total finance lease commitments were $8.7 million as at March 31, 2025. The terms of
the outstanding lease
agreements mature through March 2029, and bear fixed interest
rates ranging from 8.55% to 10.0%.
Surety bonds, letters of credit and bank guarantees
We
are
required
to
provide
financial
assurances
and
securities
to
satisfy
contractual
and
other
requirements
generated 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 insurances. As of March 31, 2025, we
had outstanding surety bonds of $43.8 million and $16.8 million of letters of credit issued from our letter
of credit
sublimit available under the ABL Facility.
For
the
Australian
Operations,
as
at
March
31,
2025,
we
had
bank
guarantees
outstanding
of
$23.9
million,
including $4.8 million issued from the letter of credit sublimit available under the ABL Facility, primarily in respect
of certain rail and port take-or-pay arrangements of the
Company.
As at March 31, 2025, we have
in aggregate had total outstanding
bank guarantees provided of $40.7
million to
secure its
obligations and
commitments, including
$21.7 million
issued for
the letter
of credit
sublimit available
under the ABL Facility.
Future regulatory changes
relating to these
obligations could result
in increased obligations,
additional costs or
additional collateral requirements.
Coronado Global Resources Inc.
Restricted deposits – cash collateral
As required
by certain
agreements, we
have total
cash collateral
in the
form of
deposits of
$68.8 million
as of
March
31,
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.
In accordance with the terms of the ABL Facility, we may be required to cash collateralize the ABL Facility to the
extent of outstanding letters
of credit after the expiration
or termination date of
such letter of credit.
As of March
31, 2025, no
letter of credit
was outstanding after
the expiration
or termination
date and no
cash collateral
was
required.
Dividend
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
$0.1
million
foreign exchange
gain on
payment of
dividends to
certain CDI
holders who
elected to be
paid in
Australian dollars.
Capital Requirements
Our main uses of cash have historically been the
funding of our operations, working capital, capital expenditure,
and the payment
of interest
and dividends. We
intend to use
cash to fund
debt service payments
of our Notes,
the ABL
Facility and
our other
indebtedness, to
fund operating
activities, working
capital, capital
expenditures,
including organic growth projects, business or assets
acquisitions and, if declared, payment of dividends.
Historical Cash Flows
The following table
summarizes our cash
flows for the
three months ended
March 31, 2025
and 2024, as
reported
in the accompanying consolidated financial statements:
Cash Flow
Three months ended
March 31,
(in US$ thousands)
2025
2024
Net cash used in operating activities
$
(37,265)
$
(53,776)
Net cash used in investing activities
(70,919)
(55,312)
Net cash used in financing activities
(1,544)
(857)
Net change in cash and cash equivalents
(109,728)
(109,945)
Effect of exchange rate changes on cash and cash
equivalents
(195)
(4,406)
Cash and cash equivalents at beginning of period
339,625
339,295
Cash and cash equivalents at end of period
$
229,702
$
224,944
Operating activities
Net cash used in operating activities was $37.3 million for the three months ended March 31, 2025, compared to
$53.8 million for the three months ended March 31, 2024. The
decrease in cash used in operating activities was
driven by favorable working capital movement caused by timing whereby lower payments to suppliers
exceeded
lower receipts from customers, partially
offset by higher interest payment
of $20.5 million during
the three months
ended March 31, 2025, and a tax refund of $12.4 million
included in the three months ended March 31, 2024.
Investing activities
Net cash used in investing activities was $70.9 million
for the three months ended March 31, 2025, compared to
$55.3 million
for the
three months ended
March 31,
2024. Cash
spent on
capital expenditures for
the three
months
ended March 31, 2025, was
$72.1 million, of which $45.0
million related to the Australian
Operations and $27.1
million related to the U.S.
Operations. The increase in
capital expenditures
was largely due to the
investment in
organic growth projects at both of our U.S. Operations
and Australian Operations.
Contractual Obligations
There were no
material changes
to our contractual
obligations from
the information
previously provided
in Item
7.
“Management’s
Discussion
and
Analysis
of
Financial
Conditions
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.
Coronado Global Resources Inc.
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.
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
of
our
coal
should
interruptions or
trade barriers occur
in the
future. An
inability for
Met coal
suppliers to
access international markets
would likely result
in an oversupply
of Met coal and
may result in
a decrease in
prices and 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.
Coronado Global Resources Inc.
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 March 31, 2025, we had $19.4
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
$1.9
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.
The
current
Israel-Palestine
conflict
could
create
significant
uncertainty
regarding
interruptions to global oil supply causing significant
volatility in prices of related commodities,
including the price
of diesel fuel we
purchase. 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.
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 work program
and budget and ensuring
that changes in interest
rates will not have
a material impact on our financial performance.
As of March 31, 2025, we had $458.1 million of fixed rate borrowings and Notes and no variable-rate borrowings
outstanding.
We currently do not hedge against interest rate
fluctuations.
Foreign Exchange Risk
A significant portion of our
sales are denominated in US$.
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. For
the 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 increase reported
total costs and
expenses by approximately
$26.9 million for
the three
months ended March 31, 2025.
Under normal market conditions, we generally do not consider it necessary to hedge our
exposure to this foreign
exchange risk.
However,
there
may be
specific commercial
circumstances,
such
as the
hedging
of significant
capital
expenditure,
acquisitions,
disposals
and
other
financial
transactions,
where
we
may
deem
foreign
exchange hedging
as appropriate
and
where a
US$ contract
cannot
be negotiated
directly with
suppliers
and
other third parties.
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.
We currently do not hedge our non-US$ exposures
against exchange rate fluctuations.
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.
Coronado Global Resources Inc.
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 March 31, 2025, we had financial assets of $467.3 million, comprising
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 discounting and credit losses of $1.3 million
was recorded as of March 31, 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. The risk factor 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.
As
a
result
of
operating
losses
and
negative
cash
flows
from
operations,
together
with
other
factors,
including
the
possibility
that
the
Company
will
not
be
able
to
obtain
further
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 include its current capital expenditure programs, 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 December 30, 2024, the Company completed the
Waiver Agreement with the Administrative Agent under the
ABL Facility to temporarily
waive the Company’s
compliance with the interest
coverage ratio covenant
between
December 31, 2024 to March 30, 2025. Pursuant to the Waiver Agreement, the Company is required to maintain
an aggregate
cash
balance
of
at
least
$100.0
million
in
one
or more
accounts
with
the
Lenders,
or
the
Cash
Balance Covenant,
until such
time that
the Company
submit a
covenant compliance
certificate to
the Lenders
pursuant to the ABL
Facility which demonstrates
the Company is
in compliance with
the interest coverage
ratio
covenant.
Subsequently,
the Company
completed an
agreement with
the Administrative
Agent under
the ABL
Facility to
defer the financial covenants test period from the twelve months to
March 31, 2025 to the twelve months to May
31,
2025
and
to
waive
the
Review
Event
under
the
terms
of
the
ABL
Facility
due
to
the
downgrade
of
the
Company’s
credit
ratings
up
to
April
2025.
Pursuant
to
the
terms
of
this
waiver
agreement,
the
Company
is
required to cash collateralize the outstanding bank guarantees
issued under the ABL Facility and the committed
availability for revolving loans under the ABL
Facility can be restricted at the
ABL Lenders’ discretion. In addition,
pursuant to the terms
of this waiver agreement,
the Cash Balance
Covenant is reduced
by any amount
held as
cash collateral under the ABL Facility.
Additionally,
there
is
significant
uncertainty
in
relation
to
the
ongoing
availability
of
the
ABL
Facility,
which
is
dependent on the
Company’s ability to obtain
further waivers or
deferment for the
financial covenants test
periods
beyond May
31, 2025,
and maintenance
of the
Cash Balance
Covenant. Unless
the Company
obtains further
waivers or deferment for the financial covenants test periods under
the ABL Facility, any breach of such financial
covenants would constitute an event of default under the terms of the ABL Facility and the Lenders shall declare
all amounts owing
under the ABL
Facility immediately
due and payable,
terminate such
Lenders’ commitments
under the ABL Facility, require the
Borrowers to cash collateralize any letter of credit obligations and/or exercise
any and all remedies and other rights under the ABL Facility.
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
March
31,
2025
includes
an
explanatory
paragraph
that
indicates
the
existence
of
substantial doubt about our ability to continue as going concern.
While
we
are
currently
exploring
alternatives
for
other
sources
of
capital
for
ongoing
liquidity
needs
and
transactions
to
enhance
our
ability
to
comply
with
the
financial
covenants
under
our
ABL
Facility,
there
is
uncertainty as to whether our efforts will be
successful.
For example, we continue to
pursue a number of initiatives
including, among other things,
further operating and
capital cost control measures, potential other
funding measures, including refinancing, restructuring or amending
terms of our ABL
Facility with existing lenders or third
parties, prepayments for future coal sales,
temporary idling
of certain
mining leases,
and negotiated
alternative payment
terms with
creditors.
We have
engaged financial
and other advisors to assist us in our efforts.
For instance, as
of the date
of this Quarterly
Report on Form
10-Q, the Company
has agreed non-binding
term
sheets with independent third-party lenders,
pursuant to which these
parties may provide an
asset-based lending
facility, or an alternative
facility, with a
borrowing base of up to $150.0 million.
However, there
can be no
assurance that our
plan to improve
our operating performance
and financial position
will be
successful
or that
we will
be able
to renegotiate
our current
ABL Facility
or obtain
additional financing,
including the proposed facility,
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.
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.
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.
Coronado Global Resources Inc.
ITEM 5.
OTHER INFORMATION
During the quarter
ended March 31,
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
10.2
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: May 8, 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