Coronado Global Resources Inc.
Coronado Global Resources Inc.
11/10/2025 | Press release | Distributed by Public on 11/10/2025 14:08
Quarterly Report for Quarter Ending September 30, 2025 (Form 10-Q)
MANAGEMENT'S DISCUSSION
AND ANALYSIS
OF FINANCIAL
CONDITION AND
RESULTS
OF
OPERATIONS
The following
Management's Discussion
and Analysis
of Financial
Condition and
Results of Operations
should
be read in conjunction
with the unaudited
Condensed Consolidated Financial
Statements and the
related notes
to those statements included elsewhere in this Quarterly Report on Form 10-Q. In addition, this Quarterly Report
on
Form 10-Q
should
be
read
in
conjunction
with
the
Consolidated
Financial
Statements
for
year
ended
December 31,
2024
included
in
Coronado
Global
Resources
Inc.'s
Annual
Report
on
Form 10-K
for
the
year
ended December 31, 2024, filed with the SEC and the
ASX on February 19, 2025.
Unless otherwise
noted,
references
in this
Quarterly
Report on
Form 10-Q
to "we,"
"us,"
"our,"
"Company,"
or
"Coronado" refer
to Coronado
Global Resources
Inc. and
its consolidated
subsidiaries and
associates, unless
the context indicates otherwise.
All production and sales volumes contained in this Quarterly Report on Form 10-Q
are expressed in metric tons,
or Mt,
millions of
metric tons,
or MMt,
or millions
of metric
tons per
annum, or
MMtpa, except
where otherwise
stated. One Mt
(1,000 kilograms) is equal
to 2,204.62 pounds and
is equivalent to 1.10231
short tons. In addition,
all
dollar
amounts
contained
herein
are
expressed
in
United
States
dollars,
or
US$,
except
where
otherwise
stated.
References
to
"A$"
are
references
to
Australian
dollars,
the
lawful
currency
of
the
Commonwealth
of
Australia. Some numerical figures included in this Quarterly Report
on Form 10-Q have been subject to rounding
adjustments. Accordingly, numerical figures shown as
totals in certain
tables may not
equal the sum
of the figures
that precede them.
CAUTIONARY NOTICE REGARDING FORWARD
-LOOKING STATEMENTS
This Quarterly Report on Form 10-Q contains "forward-looking statements" within the meaning of Section 27A of
the Securities Act of 1933, as
amended, and Section 21E of the Securities
Exchange Act of 1934, as amended,
or the Exchange
Act, concerning
our business,
operations, financial
performance and
condition, the
coal, steel
and
other
industries,
as well
as
our
plans,
objectives
and
expectations
for
our
business,
operations,
financial
performance
and
condition.
Forward-looking
statements
may
be
identified
by
words
such
as
"may,"
"could,"
"believes,"
"estimates,"
"expects,"
"intends,"
"plans,"
"anticipate,"
"forecast,"
"outlook,"
"target,"
"likely,"
"considers" and other similar words.
Any
forward-looking
statements
involve
known
and
unknown
risks,
uncertainties,
assumptions
and
other
important factors that
could cause actual
results, performance,
events or outcomes
to differ
materially from
the
results,
performance,
events
or
outcomes
expressed
or
anticipated
in
these
statements,
many
of
which
are
beyond
our
control.
Such
forward-looking
statements
are
based
on
an
assessment
of
present
economic
and
operating conditions
using a
number of
best estimate
assumptions regarding
future events
and actions.
These
factors are difficult to accurately predict and may be beyond our control. Factors that could affect our results, our
announced plans, or an investment in our securities include,
but are not limited to:
●
the prices we receive for our coal;
●
our ability to generate sufficient cash to service
our indebtedness and other obligations;
●
our indebtedness and ability to
comply with the covenants and other
undertakings under the agreements
governing such indebtedness;
●
our ability
to complete
the Proposed
Transaction
with Stanwell,
including the
proposed replacement
of
our current
ABL Facility, on acceptable
terms, or
at all,
and our
ability to
comply with applicable
covenants
included in the
New ABL Facility
with Stanwell
and to
achieve the anticipated
benefits of the
Proposed
Transaction with Stanwell;
●
our
ability
to
provide
appropriate
financial
assurances
for
our
obligations
under
applicable
laws
and
regulations,
including
our
ability
to
provide
applicable
surety
of
Curragh's
ERC
under
the
Financial
Provisioning Scheme Act;
●
risks
related
to
international
mining
and
trading
operations,
including
any
changes
in
tariffs
or
tariff
policies and
other barriers
to trade.
For example,
on April
2, 2025,
the U.S.
government announced
a
baseline 10% tariff
on certain
imports and higher
tariffs on
imports from
certain countries,
and on June
4, 2025, the
U.S. government increased tariffs on
steel imports to 50%.
These developments underscore
the risk and volatility in global supply chains, financial
markets and international trade policies;
Table of Contents
Coronado Global Resources Inc.
Form 10-Q September 30, 2025
29
●
uncertainty
in
global
economic
conditions,
including
the
extent,
duration
and
impact
of
ongoing
civil
unrest and wars,
as well as
risks related to
government actions with
respect to trade
agreements, treaties
or policies;
●
a
decrease
in
the
availability
or
increase
in
costs
of
labor,
key
supplies,
capital
equipment
or
commodities, such
as diesel
fuel, steel,
explosives
and tires,
as the
result of
inflationary
pressures
or
otherwise;
●
the extensive forms of taxation
that our mining operations
are subject to, and future
tax regulations and
developments;
●
concerns about the environmental impacts of coal combustion and greenhouse gas, or GHG, emissions
arising from mining
activities, including
possible impacts
on global climate
issues, which
could result
in
increased regulation
of coal combustion
and GHG
emissions and
increased
costs associated
with coal
production and consumption, such as costs for
additional controls to reduce carbon dioxide emissions or
costs to purchase
emissions reduction credits
to comply with
future emissions
trading programs,
which
could significantly impact
our financial condition
and results of
operations, affect demand for
our products
or our securities and reduce our access to capital and
insurance;
●
severe financial hardship,
bankruptcy,
temporary or permanent
shutdowns or operational
challenges of
one
or
more
of
our
major
customers,
including
customers
in
the
steel
industry,
and
key
suppliers/contractors, which
among other
adverse effects,
could lead
to reduced
demand for
our coal,
increased
difficulty
collecting
receivables
and
customers
and/or
suppliers
asserting
force
majeure
or
other reasons for not performing their contractual
obligations to us;
●
our
ability
to
collect
payments
from
our
customers
depending
on
their
creditworthiness,
contractual
performance or otherwise;
●
the demand for steel products, which impacts the demand for
our metallurgical, or Met, coal;
●
risks inherent to
mining operations,
such as adverse
weather conditions, could impact the
amount of coal
produced, cause delay or suspend coal deliveries, or
increase the cost of operating our business;
●
the loss of, or significant reduction in, purchases by our
largest customers;
●
unfavorable economic and financial market conditions;
●
our ability to continue acquiring and developing coal reserves
that are economically recoverable;
●
uncertainties in estimating our economically recoverable coal
reserves;
●
transportation for our coal becoming unavailable or uneconomic
for our customers;
●
the risk
that we
may
be required
to pay
for unused
capacity
pursuant
to the
terms
of our
take-or-pay
arrangements with rail and port operators;
●
our ability to retain key personnel and attract qualified
personnel;
●
any failure to maintain satisfactory labor relations;
●
our ability to obtain, renew or maintain permits and consents
necessary for our operations;
●
potential costs or liability under applicable environmental
laws and regulations, including with respect
to
any
exposure
to
hazardous
substances
caused
by
our
operations,
as
well
as
any
environmental
contamination our properties may have or our operations
may cause;
●
our
ability
to
provide
appropriate
financial
assurances
for
our
obligations
under
applicable
laws
and
regulations;
●
assumptions underlying our asset retirement obligations
for reclamation and mine closures;
●
any cyber-attacks or other security breaches that disrupt
our operations or result in the dissemination of
proprietary or confidential information about us, our customers
or other third parties;
Table of Contents
Coronado Global Resources Inc.
Form 10-Q September 30, 2025
30
●
the risk that we may not recover our investments in our mining, exploration and other assets, which may
require us to recognize impairment charges related to those assets;
●
risks related to divestitures and acquisitions;
●
the risk that diversity in interpretation and application of accounting principles in the mining industry may
impact our reported financial results; and
●
other
risks
and
uncertainties
detailed
herein,
including,
but
not
limited
to,
those
discussed
in
"Risk
Factors," set forth in Part II, Item 1A of this Quarterly Report
on Form 10-Q.
We
make
many
of
our
forward-looking
statements
based
on
our
operating
budgets
and
forecasts,
which
are
based upon
detailed assumptions.
While we
believe that
our assumptions
are reasonable,
we caution
that it
is
very difficult to
predict the impact
of known factors,
and it is
impossible for us
to anticipate all
factors that could
affect our actual results.
See Part I, Item
1A. "Risk Factors"
of our Annual Report
on Form 10-K for
the year ended December
31, 2024,
filed with
the SEC
and ASX
on February
19, 2025,
Part II,
Item 1A.
"Risk Factors"
of our
Quarterly Report
on
Form 10-Q for the quarterly period ended March 31, 2025, filed with the SEC and ASX on May 8,
2025, and Part
II, Item 1A.
"Risk Factors"
of our Quarterly
Report on
Form 10-Q for
the quarterly
period ended June
30, 2025,
filed with the
SEC and
ASX on
August 11
,
2025, for
a more complete
discussion of
the risks
and uncertainties
mentioned above
and for
discussion of
other risks
and uncertainties
we face
that could
cause actual
results to
differ materially from those expressed or implied by
these forward-looking statements.
All
forward-looking
statements
attributable
to
us
are
expressly
qualified
in
their
entirety
by
these
cautionary
statements, as well as others
made in this Quarterly Report on Form
10-Q and hereafter in our other
filings with
the
SEC
and
public
communications.
You
should
evaluate
all
forward-looking
statements
made
by
us
in
the
context of these risks and uncertainties.
We caution you that the risks and uncertainties identified by us may not be all of the factors that are important to
you. The
forward-looking
statements
included in
this
Quarterly Report
on Form
10-Q are
made only
as of
the
date hereof. We undertake no obligation to publicly update or revise any forward-looking statement as a
result of
new information, future events, or otherwise, except as required
by applicable law.
Results of Operations
How We Evaluate Our Operations
We
evaluate
our
operations
based
on
the
volume
of
coal
we
can
safely
produce
and
sell
in
compliance
with
regulatory standards,
and the
prices we
receive for
our coal.
Our sales
prices are
largely dependent
upon the
terms of our coal
sales contracts, for which prices
generally are set based
on daily index averages,
on a quarterly
basis or annual fixed price contracts.
Our management
uses a
variety of
financial and
operating metrics
to analyze
our performance.
These metrics
are significant factors
in assessing
our operating results
and profitability.
These financial
and operating metrics
include: (i) safety and environmental metrics; (ii) Adjusted EBITDA; (iii) total sales volumes and average realized
price
per
Mt
sold,
which
we
define
as
total
coal
revenues
divided
by
total
sales
volume;
(iv) Met
coal
sales
volumes and average realized Met price per
Mt sold, which we define as Met coal
revenues divided by Met coal
sales volume; (v) average
segment mining costs
per Mt sold,
which we define
as mining costs
divided by sales
volumes (excluding non-produced coal) for the respective segment; (vi) average segment operating costs
per Mt
sold, which we define as segment operating costs divided by sales volumes for the respective segment; and (vii)
net cash (or net
debt), which we define
as cash and
cash equivalents (excluding restricted cash)
less outstanding
aggregate principal amount of the Notes and other
interest-bearing liabilities.
Coal revenues are
shown in our
statement of operations
and comprehensive income
exclusive of other
revenues.
Generally, export
sale contracts on Free on Board,
or FOB, require us to bear the
cost of freight from our mines
to
the
applicable
outbound
shipping
port,
while
freight
costs
from
the
port
to
the
end
destination
are
typically
borne
by
the
customer.
Certain
export
sales
from
our
U.S.
Operations
are
recognized
when
title
to
the
coal
passes to
the customer
at the
mine load
out similar
to a
domestic sale.
For our
domestic sales,
customers typically
bear
the
cost
of
freight.
As
such,
freight
expenses
are
excluded
from
the
cost
of
coal
revenues
to
allow
for
consistency and comparability in evaluating our operating
performance.
Non-GAAP Financial Measures; Other Measures
The
following
discussion
of
our
results
includes
references
to
and
analysis
of
Adjusted
EBITDA,
Segment
Adjusted EBITDA and mining
costs, which are financial
measures not recognized in
accordance with U.S. GAAP.
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Coronado Global Resources Inc.
Form 10-Q September 30, 2025
31
Non-GAAP financial
measures, including
Adjusted EBITDA,
Segment Adjusted
EBITDA and
mining costs,
are
useful to our investors to measure our operating performance.
Non-GAAP financial measures are intended to provide additional information only and do not have any standard
meaning prescribed by U.S. GAAP.
These measures should not be considered
in isolation or as a substitute for
measures of performance prepared in accordance with
U.S. GAAP.
Adjusted EBITDA, a non-GAAP measure, is defined as earnings before interest, tax, depreciation, depletion and
amortization
and
other
foreign
exchange
losses.
Adjusted
EBITDA
is
also
adjusted
for
certain
discrete
non-
recurring items that we exclude in
analyzing each of our segments'
operating performance. Adjusted EBITDA
is
not intended
to serve
as an
alternative to
U.S. GAAP measures
of performance
including total
revenues, total
costs and expenses,
net income or
cash flows from
operating activities as
those terms are
defined by U.S.
GAAP.
Adjusted EBITDA may
therefore not be
comparable to
similarly titled measures
presented by other
companies.
A reconciliation of
Adjusted EBITDA to
its most
directly comparable measure
under U.S. GAAP is
included below.
Segment
Adjusted
EBITDA
is
defined
as
Adjusted
EBITDA
by
operating
and
reporting
segment,
adjusted
for
certain
transactions,
eliminations
or
adjustments
that
our
CODM
does
not
consider
for
making
decisions
to
allocate
resources
among
segments
or
assessing
segment
performance.
Adjusted
EBITDA
and
Segment
Adjusted EBITDA
are used
as supplemental
financial
measures by
management
and by
external users
of our
financial statements,
such as
investors, industry
analysts and
lenders, to
assess the
operating performance
of
our business.
Mining costs, a
non-GAAP measure, is
based on
reported cost of
coal revenues, which
is shown
on our
statement
of
operations
and
comprehensive
income
exclusive
of
freight
expense,
Stanwell
rebate,
other
royalties,
depreciation,
depletion
and
amortization,
and selling,
general and
administrative
expenses,
adjusted for
other
items that do not relate directly
to the costs incurred to produce
coal at a mine. Mining
costs exclude these cost
components as
our CODM
does not
view these
costs as
directly attributable
to the
production of
coal. Mining
costs
is
used
as
a
supplemental
financial
measure
by
management,
providing
an
accurate
view
of
the
costs
directly
attributable
to
the
production
of
coal
at
our
mining
segments,
and
by
external
users
of
our
financial
statements, such as
investors, industry analysts and
ratings agencies, to assess
our mine operating
performance
in comparison to the mine operating performance of other
companies in the coal industry.
About Coronado Global Resources Inc.
We
are
a
producer,
global
marketer
and
exporter
of
high-quality
Met
coal
products.
We
own
a
portfolio
of
operating mines and development
projects in Queensland, Australia,
and in the states of
Virginia, West Virginia
and Pennsylvania in the United States.
Our Australian
Operations
comprise the
100%-owned
Curragh producing
mine complex.
Our U.S.
Operations
comprise two 100%-owned producing
mine complexes (Buchanan and
Logan) and two development
properties
(Mon Valley
and Russell
County). In
addition to
Met coal,
our Australian
Operations sell
thermal coal,
which is
used to
generate
electricity,
domestically
to
Stanwell
and
in the
export
market.
Our
U.S. Operations
primarily
focus
on
the
production
of
Met
coal
for
the
North
American
domestic
and
seaborne
export
markets
and
also
produce and sell some thermal coal that is extracted in
the process of mining Met coal.
Overview
Our results
for the
three and
nine months
ended September
30,
2025, were
negatively
impacted as
Met
coal
markets
remained
subdued
through
the
quarter
amid
continued
softness
in
steel
demand
and
ample
global
supply.
However,
operational performance
continued to
improve, with
saleable production
surpassing the
prior
quarter.
In the third quarter of 2025, Met coal spot prices remained
broadly stable relative to the second quarter of 2025,
with the Australian Premium
Low Volatile
Hard Coking Coal index,
or AUS PLV
HCC, averaging $183.5 per
Mt,
slightly
lower
than
the
prior
quarter.
This
flat
to
slightly
softer
pricing
reflected
continued
weak
steel-sector
demand,
particularly
from
China,
where
output
curbs
and
property-sector
softening
weighed
on
coking-coal
imports,
combined
with
ample
supply
and
high
inventory
levels
globally.
With
no
major
supply
disruptions
emerging in
the third
quarter of
2025, and
shipping and
logistics functioning
smoothly,
the market
continued to
favor buyers rather than sellers, limiting upward price momentum
.
Although coal
markets remained
unfavorable, our
operations continued
to perform
strongly in
the third
quarter
compared
to
the
second
quarter
of
2025,
delivering
higher
quarter-on-quarter
run-of-mine,
or
ROM,
coal
production, saleable production and sales volumes.
Saleable
production
for
the
three
and
nine
months
ended
September
30,
2025,
was
4.5
MMt
and
11.7
MMt,
respectively,
0.7 MMt and
0.3 MMt higher
compared to the
three and nine
months ended September
30, 2024,
respectively.
Improved
production
was
supported
by
higher
equipment
utilization,
enhanced
owner-operated
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Coronado Global Resources Inc.
Form 10-Q September 30, 2025
32
fleets
at
our
open
cut
mine
and
continued
ramp
up
of
our
Mammoth
underground
mine
at
our
Australian
Operations, partially offset by lower
output from our U.S. Operations following
temporary idling of surface mines
and lower than expected yields.
Despite
strong saleable
production,
our sales
volume
of 11.1
MMt
for the
nine
months
ended
September
30,
2025, was
0.7 MMt
lower than
the same
period in
2024. The
decrease was
primarily driven
by (1)
lower production
at our
U.S. Operations,
a product
of temporary
idling of
surface mines
and lower
yields, (2)
rail, port
and pier
constraints
at
our
U.S.
Operations
and
co-shipment
scheduling
delays
at
our
Australian
Operations,
which
together resulted in
the deferral of
five vessels
into October 2025,
and (3)
significant port
inventory built by
our
Australian Operations in December 2023, due to port constraints, which was shipped in the first
quarter of 2024.
Coal
revenues
of
$1,377.5
million
for
the
nine
months
ended
September
30,
2025,
decreased
$520.6
million
compared to
the same
period in
2024, driven
by lower
sales volumes,
and average
realized Met
prices, which
were $43.2 per Mt lower than during the nine months
ended September 30, 2024.
Mining
costs
for
the
nine
months
ended
September
30,
2025
were
$200.3
million
lower
compared
to
the
corresponding period in 2024, primarily driven
by cost savings from reduction in
contractor fleets, which occurred
progressively since March 2024, and associated
costs, favorable average foreign exchange rates
on translation
of the
Australian Operations
for the
nine months
ended September
30, 2025,
and temporary
idling of
Logan's
surface mine at our U.S. Operations. Mining costs per Mt sold were $97.6 for the nine months ended September
30, 2025,
which was $13.4 per Mt
lower than during the nine
months ended September 30, 2024,
driven by lower
mining costs, partially offset by lower sales volume
of 0.6 MMt.
Liquidity and Going Concern
As of September
30, 2025, Coronado had
cash and cash equivalents
(excluding restricted cash) of
$171.8 million
and $15.5 million of undrawn capacity under the ABL
Facility.
Our net debt of $328.0 million as of
September 30,
2025 comprised
of
$499.8
million
of aggregate
principal
amount
of
interest-bearing
liabilities
outstanding
less
cash and cash equivalents (excluding restricted cash).
On
June
30,
2025,
S&P
downgraded
the
Company's
credit
rating
from
'B-'
to
'CCC+'
and,
on
July
7,
2025,
Moody's downgraded the Company's credit
rating from 'Caa1'
to 'Caa2', both
of which resulted
in a Review
Event
under the ABL Facility. On
July 9, 2025, we successfully negotiated with the Lender,
who confirmed no changes
to the terms or the availability of the ABL Facility,
thereby, concluding
each of the Review Events.
On September 29,
2025, we entered
into an agreement
with the Administrative
Agent under the
ABL Facility to
waive compliance with applicable financial covenants as
at September 30, 2025, and
reset the conditions related
to credit rating downgrades
such that a review
event, default or
event of default
would not occur under
the ABL
Facility due to
a one notch
downgrade to the
Company's credit
rating by
S&P or
Moody's as
at September
29,
2025 (however an
event of default
will occur
if there is
a further two
or more notches
downgrade to the
Company's
credit rating by S&P
or Moody's as at September 29,
2025). The requirements to comply
with financial covenants
beyond September 30, 2025 remained unchanged.
As the outlook for Met coal markets remains uncertain, continued low or a further deterioration in
Met coal prices
and our inability
to achieve
production forecasts,
due to factors
beyond our
control, could
lead to an
inability to
fund short-term
working capital
movements, further
operating losses
and negative
operating cash
flows for
the
remainder
of 2025
and
into
2026,
which,
combined
with
other
factors,
could
impact
our
ability
to comply
with
financial covenants under the ABL Facility on and beyond December
31, 2025.
Non-compliance with financial covenants or
a potential further two
or more notches downgrade
to the Company's
credit rating by
S&P or Moody's
may result in
an Event of
Default under the
ABL Facility and,
unless the Event
of Default
is cured
or
a waiver
is obtained,
could
also
trigger
a cross
-default
under
the
Indenture
(as
defined
below) governing our Notes.
On October 28, 2025, the Company announced the Proposed Transaction with Stanwell that intends to enhance
the Company's short and long-term financial
viability.
The
Proposed
Transaction,
which
remains
non-binding
and
subject
to
completion
of
due
diligence,
definitive
documents
and
required
external
approvals,
include
(1)
Stanwell
providing
a
$265.0
million
financing
facility
replacing
the
existing
ABL
Facility,
(2)
Stanwell
waiving
the
remaining
rebate
payments
under
the
ACSA,
(3)
extension of the NCSA from 2037
to 2043, (4) Stanwell will make additional
prepayments in relation to its future
annual contract tonnage
under the ACSA
and NCSA, which
will bear interest
and be settled through
delivery of
coal to
Stanwell in
months when
the Company's
liquidity exceeds
$300.0 million,
(5) change
of control
events
triggering
repayment
of
the
rebate
waived
and
(6)
minimum
liquidity
requirements
to
declare
distributions
to
shareholders.
Table of Contents
Coronado Global Resources Inc.
Form 10-Q September 30, 2025
33
In addition
to the
Proposed Transaction, we
continue to pursue
a number
of initiatives
intended to
improve liquidity
including, among other things, further operating and capital cost control measures, potential other debt and non-
debt funding measures, and whole or partial asset sales.
While management believes that the Proposed Transaction, if entered
into and once completed, would enhance
the Company's
liquidity,
the vast
majority of the
potential funding
under the arrangement
is delivered over
time
and not upfront,
and does not
eliminate uncertainties in
relation to the
Company's future financial
performance,
including the our
ability to achieve
production targets
and manage working
capital fluctuations
that are material
at times
depending on
circumstances (production
and inventory
levels), due
to events
and factors
beyond our
control, and sustained weakness in Met coal market and consequential
realized Met coal prices.
Accordingly, we concluded that
substantial doubt exists
regarding our ability
to continue as
a going
concern within
one year after the date of the accompanying Condensed
Consolidated Financial Statements.
Safety
For
our
Australian
Operations,
the
twelve-month
rolling
average
Total
Reportable
Injury
Frequency
Rate
at
September
30,
2025,
was
2.88,
compared
to
a
rate
of
2.22
at
the
end
of
December
31,
2024.
At
our
U.S.
Operations, the twelve-month
rolling average Total
Reportable Incident Rate
at September 30,
2025, was 1.95,
compared to a rate of 2.21 at the end of December 31,
2024.
The
health
and
safety
of
our
workforce
is
our
number
one
priority
and
we
remain
focused
on
the
safety
and
wellbeing of
all employees
and contracting
parties. Coronado
continues to
implement safety
initiatives with
the
goal of improving our safety rates every quarter.
Segment Reporting
In accordance with ASC
280, Segment Reporting, we
have adopted the following
reporting segments: Australia
and
the
United
States.
In
addition,
"Other
and
Corporate"
is
not
a
reporting
segment
but
is
disclosed
for
the
purposes of reconciliation to our consolidated financial
statements.
Three Months Ended September 30, 2025 Compared
to Three Months Ended September 30, 2024
Summary
The financial and operational summary for the three months
ended September 30, 2025 includes:
●
Net loss before
tax for the
three months ended
September 30, 2025,
of $103.8 million
was $1.0 million
higher compared to a net
loss of $102.8 million
for the three months ended
September 30, 2024, which
was primarily
driven by
lower operating
costs including
the impact
of a
build in
coal inventories
due to
higher
saleable
production
exceeding
slightly
higher
sales
volumes,
partially
offset
by
lower
average
realized prices.
●
Average realized Met price
per Mt sold of $148.6 for
the three months ended September
30, 2025, was
$31.0
per
Mt
sold
lower
compared
to
$179.6
per
Mt
sold
for
the
same
period
in
2024,
reflecting
a
downward trend since September 30,
2024, due to lower restocking by Chinese
mills and oversupply of
steel, resulting in reduced Met coal demand from key steel-producing regions,
particularly in Europe and
Asia.
●
Sales volume of 4.0
MMt for the three
months ended September 30, 2025
was 0.1 MMt higher
compared
to the
same period
in 2024,
while saleable
production was
0.7 MMt
higher,
largely driven
by improved
performance at our
Australian Operations, supported by
higher equipment utilization and
enhanced open
cut output from owner-operated fleets. Higher saleable production volumes did not result in higher
sales
volumes to
the same
extent due
to rail,
port and
pier constraints which
resulted in
deferral of
three vessels
into October 2025 at our U.S.
Operations, as well as co-shipper
delays which caused two vessels
to be
deferred to October 2025 at our Australian Operations.
●
Adjusted
EBITDA
loss
of
$22.5
million
for
the
three
months
ended
September
30,
2025,
was
$3.4
million higher compared to an Adjusted EBITDA loss of $19.1 million for the same period in 2024. Lower
coal sales revenues were largely offset by lower operating costs, including a significant
build in saleable
coal inventories.
●
As of September 30, 2025, our sources of liquidity were cash and cash equivalents (excluding restricted
cash) of $171.8 million and $15.5 million of undrawn capacity
under the ABL Facility.
Table of Contents
Coronado Global Resources Inc.
Form 10-Q September 30, 2025
34
Three months ended
September 30,
2025
2024
Change
%
(in US$ thousands)
Revenues:
Coal revenues
$
476,670
$
600,703
$
(124,033)
(20.6)%
Other revenues
5,457
7,512
(2,055)
(27.4)%
Total
revenues
482,127
608,215
(126,088)
(20.7)%
Costs and expenses:
Cost of coal revenues (exclusive of items
shown separately below)
360,588
466,113
(105,525)
(22.6)%
Depreciation, depletion and amortization
49,198
45,559
3,639
8.0 %
Freight expenses
71,723
66,126
5,597
8.5 %
Stanwell rebate
26,331
25,391
3.7 %
Other royalties
38,690
63,020
(24,330)
(38.6)%
Selling, general, and administrative expenses
7,541
9,174
(1,633)
(17.8)%
Total
costs and expenses
554,071
675,383
(121,312)
(18.0)%
Other income (expenses):
Interest expense, net
(29,443)
(15,808)
(13,635)
86.3 %
(Increase) decrease in provision for
credit losses
(2,836)
(43)
(2,793)
6,495.3 %
Other, net
(19,749)
20,209
(102.3)%
Total
other expenses, net
(31,819)
(35,600)
3,781
(10.6)%
Net loss before tax
(103,763)
(102,768)
(995)
1.0 %
Income tax (expense) benefit
(5,707)
31,771
(37,478)
(118.0)%
Net loss attributable to Coronado Global
Resources, Inc.
$
(109,470)
$
(70,997)
$
(38,473)
54.2 %
Coal Revenues
Coal revenues were
$476.7 million for
the three months
ended September 30,
2025, a
decrease of $124.0
million,
compared
to
$600.7
million
for
the
three
months
ended
September
30,
2024.
This
decrease
was
primarily
attributable to lower average realized Met
coal prices and a sales mix
which was weighted more towards
export
thermal volumes
as our
Australian Operations
experienced reliability
issues with
the coal
handling preparation
plant, or CHPP,
and bypassed raw coal to manage cash flows.
Cost of Coal Revenues (Exclusive of Items Shown
Separately Below)
Cost of coal
revenues consists
of costs
related to produced
tons sold,
along with
changes in
both the volumes
and carrying values of coal inventory. Cost of coal revenues includes items such as direct operating
costs, which
includes employee-related costs,
materials and
supplies, contractor services,
coal handling
and preparation costs
and production taxes.
Total
cost of coal revenues
was $360.6 million for the
three months ended September
30, 2025, $105.5 million,
or 22.6% lower, compared to
$466.1 million for the three months ended September
30, 2024.
Cost of coal revenues for our Australian Operations for the three months ended September 30, 2025, was $57.8
million lower
compared
to the
same period
in 2024,
primarily
driven by
higher inventory
build due
to saleable
production exceeding
sales volume,
lower coal
purchases
and a
favorable average
foreign exchange
rates on
translation
of
the
Australian
Operations
for
the
three
months
ended
September
30,
2025,
of
A$/US$
0.65
compared to 0.67 for the same period in 2024.
Cost of coal
revenues for our
U.S. Operations for the
three months ended September
30, 2025, was $47.7
million
lower compared
to the three
months ended
September 30,
2024, mainly
due to the
temporary idling
of surface
mining at Logan beginning in March 2025 and reduced well drilling at Buchanan, and inventory build as saleable
production exceeded
sales volume
due to
rail, port
and pier
constraints during the
three months
ended September
30, 2025.
Table of Contents
Coronado Global Resources Inc.
Form 10-Q September 30, 2025
35
Depreciation, Depletion and Amortization
Depreciation, depletion and amortization
was $49.2 million for the
three months ended September
30, 2025, an
increase of $3.6
million, compared to
$45.6 million for
the three months
ended September 30,
2024. The increase
was associated
with equipment brought
into service
during the twelve
months since September
30, 2024,
partially
offset by a favorable average foreign exchange rate
s
on translation of the Australian Operations.
Freight Expenses
Freight expenses
relate to
costs associated
with rail
and port
providers, including
take-or-pay commitments
at
our Australian Operations,
and demurrage costs.
Freight expenses
were $71.7 million
for the three
months ended
September 30,
2025, an
increase of
$5.6 million,
compared to
$66.1 million
for the
same period
in 2024.
Our
Australian Operations contributed $8.2 million
of the increase, driven by higher export
sales volume and greater
volumes shipped through Wiggins Island Coal Export Terminal, or WICET,
which incurs higher port and handling
charges, partially offset by lower coal sales
under under Free on Board (FOB) terms at our U.S. Operations.
Other Royalties
Other royalties
were $38.7
million in the
three months
ended September
30, 2025,
a decrease
of $24.3
million
compared
to
$63.0
million
for
the
three
months
ended
September
30,
2024,
driven
by
lower
coal
revenues
coupled with a favorable foreign exchange rate on translation
of our Australian Operations.
Interest expense, net
Interest expense,
net was
$29.4 million
for the
three months
ended September
30, 2025,
an increase
of $13.6
million compared to
$15.8 million for the
three months ended
September 30, 2024.
The increase was
driven by
higher average
indebtedness,
due to
additional
borrowings under
the Notes,
ABL Facility,
insurance
premium
financing, and coal
prepayment facility combined
with lower interest
income on cash
equivalents and
restricted
deposits during the three months ended September 30,
2025, compared to the same period in 2024.
Other, net
Other,
net for
the three
months
ended September
30, 2025,
was
positive $0.5
million, an
improvement of
$20.2 million compared to a loss of $19.7 million for the three months ended
September 30, 2024. The decrease
was largely
driven by
an impairment
charge of
$10.6 million
recognized against
property,
plant and
equipment
relating to a long-standing,
non-core, idled asset sold within our U.S. Operations
during the three months ended
September 30, 2024, and lower exchange losses on translation
of short-term inter-entity balances.
Income Tax Expense (Benefit)
Income
tax
expense
was
$5.7
million
for
the
three
months
ended
September
30,
2025,
a
decrease
of
$37.5
million compared to an income tax benefit of $31.8 million for the
three months ended September 30, 2024. The
decrease
in
income
tax
expense
was
the
result
of
an
effective
tax
rate
of
7.7%
for
the
nine
months
ended
September 30, 2025, compared to
an effective tax rate of
34.2% for the nine months
ended September 30, 2024.
Table of Contents
Coronado Global Resources Inc.
Form 10-Q September 30, 2025
36
Nine months ended September 30, 2025 compared to
Nine months ended September 30, 2024
Summary
The financial and operational summary for the nine months
ended September 30, 2025 includes:
●
Net loss
of $281.9
million
for
the nine
months
ended
September
30,
2025, was
$227.1 million
higher
compared to a net
loss of $54.8 million
for the nine months
ended September 30,
2024. The higher net
loss was a result of
lower coal revenues and
higher interest expense,
partially offset by lower
operating
costs.
●
Average realized
Met price of
$149.4 per Mt
sold for the
nine months ended
September 30,
2025, was
$43.2 per
Mt lower
compared to
$192.6 per
Mt sold
for the
same period
in 2024.
The AUS
PLV
HCC
index averaged $184.2 per Mt for the nine months ended September 30,
2025, a decline of $68.9 per Mt
compared to the same period in
2024. This decrease primarily reflected persistent softness in
global Met
coal markets, driven by ongoing oversupply from major exporters, including Australia and Russia. Lower
steel
production
and
restocking
activity
in
key
Asian
markets,
particularly
China
and
India,
further
contributed to weaker demand and downward pressure on prices.
●
Sales
volume
of
11.1
MMt
for
the
nine
months
ended
September
30,
2025,
was
0.6
million
lower
compared to
the nine
months ended September
30, 2024.
The decrease was
primarily driven by
(1) lower
production at
our U.S.
Operations, due
to temporary
idling of
a surface
mine and
lower yields,
(2) rail,
port
and
pier
constraints
at
our
U.S.
Operations
and
co-shipper
scheduling
delays
at
our
Australian
Operations,
which
resulted
in
a
total
of five
vessels
delayed
to
October
2025,
and
(3)
significant
port
inventory built by our Australian Operations in December
2023, which was shipped in the first quarter
of
2024.
●
Adjusted
EBITDA
loss
of
$95.9
million
for
the
nine
months
ended
September
30,
2025,
was
$212.2
million lower compared
to an income
of $116.3
million for the
nine months ended
September 30, 2024.
This decrease was primarily due to lower coal revenues
partially offset by lower operating costs.
●
As of September 30,
2025, the Company
had net debt of
$328.0 million, consisting
of closing cash and
cash
equivalents
(excluding
restricted
cash)
of
$171.8
million
and
$499.8
million
aggregate
principal
amounts of interest-bearing liabilities outstanding.
Table of Contents
Coronado Global Resources Inc.
Form 10-Q September 30, 2025
37
Nine months ended
September 30,
2025
2024
Change
%
(in US$ thousands)
Revenues:
Coal revenues
$
1,377,458
$
1,898,075
$
(520,617)
(27.4%)
Other revenues
21,796
52,117
(30,321)
(58.2%)
Total
revenues
1,399,254
1,950,192
(550,938)
(28.3%)
Costs and expenses:
Cost of coal revenues (exclusive of items
shown separately below)
1,090,511
1,311,377
(220,866)
(16.8%)
Depreciation, depletion and amortization
135,227
142,171
(6,944)
(4.9%)
Freight expenses
194,617
183,652
10,965
6.0%
Stanwell rebate
70,115
83,293
(13,178)
(15.8%)
Other royalties
118,057
235,605
(117,548)
(49.9%)
Selling, general, and administrative expenses
23,474
26,635
(3,161)
(11.9%)
Total
costs and expenses
1,632,001
1,982,733
(350,732)
(17.7%)
Other income (expenses):
Interest expense, net
(68,305)
(42,253)
(26,052)
61.7%
Loss on debt extinguishment
(1,050)
-
(1,050)
100.0%
Decrease in provision for discounting and
credit losses
(3,649)
(3,806)
(2,424.2%
)
Other, net
(8,643)
8,862
(102.5%)
Total
other expenses, net
(72,785)
(50,739)
(22,046)
43.4%
Net loss before tax
(305,532)
(83,280)
(222,252)
266.9%
Income tax benefit
23,661
28,482
(4,821)
(16.9%)
Net loss attributable to Coronado Global
Resources, Inc.
$
(281,871)
$
(54,798)
$
(227,073)
414.4%
Coal Revenues
Coal
revenues
were
$1,377.5
million
for
the
nine
months
ended
September
30,
2025,
a
decrease
of
$520.6
million, compared to $1,898.1 million for
the nine months ended September
30, 2024. The decrease was
driven
by lower average Met coal realized prices
and lower sales volumes.
Other Revenues
Other revenues were $21.8
million for the nine
months ended September 30,
2025, a decrease
of $30.3 million
compared to
$52.1 million
for the
nine months
ended September
30, 2024.
The decrease
was primarily
driven
by a non-recurring termination fee revenue from a coal sales contract cancelled in the first quarter of 2024 at our
U.S. Operations.
Cost of Coal Revenues (Exclusive of Items Shown
Separately Below)
Total
cost of coal revenues was
$1,090.5 million for the nine
months ended September 30, 2025,
a decrease of
$220.9 million, compared to $1,311.4
million for the nine months ended September
30, 2024.
Cost of coal revenues for our Australian Operations for the nine months
ended September 30, 2025, was $178.3
million lower compared to the same period
in 2024, primarily driven by cost savings
from reduction in contractor
fleets since March 2024 and associated costs, inventory build due to higher saleable production and lower sales
volume
compared
to
an
inventory
drawdown
in
2024,
lower
coal
purchases
and
a
favorable
average
foreign
exchange rate
on translation
of our
Australian Operations
for the
nine months
ended
September
30, 2025,
of
A$/US$: 0.64 compared to 0.66 for the same period in
2024.
Cost of coal revenues for our U.S. Operations for
the nine months ended September 30, 2025, was $42.6 million
lower compared
to the
same period
in 2024,
driven by
the temporary idling
of the
surface mines at
Logan, reduced
sections and well
drilling activity
at Buchanan,
lower coal purchases
combined with
higher inventory
build, with
saleable production exceeding sales volume, compared
to the corresponding period in 2024.
Table of Contents
Coronado Global Resources Inc.
Form 10-Q September 30, 2025
38
Depreciation, Depletion and Amortization
Depreciation, depletion
and amortization
was $135.2
million for the
nine months
ended September 30,
2025, a
decrease of
$6.9 million,
as compared
to $142.2
million for
the nine
months ended
September
30, 2024.
The
decrease
was
associated
with
changes
to
depreciation
rates
following
our
annual
useful
life
review
at
the
beginning
of
2025
and
favorable
average
foreign
exchange
rates
on
translation
of
the
Australian
Operations,
partially offset by the equipment brought into service
during the twelve months since September 30, 2024.
Freight Expenses
Freight expenses
totaled $194.6
million for
the nine
months ended
September 30,
2025, an
increase of
$11.0
million
compared
to
$183.6
million
for
the
nine
months
ended
September
30,
2024.
Freight
expenses
for
our
Australian Operations
increased by
$18.6 million
due to
higher export
sales volumes
shipped through
WICET,
which has higher port handling charges and higher take-or-pay deficit tonnage costs. This was partially offset
by
a $5.0 million reduction
in freight costs
at our U.S.
Operations due to
lower coal sales
under FOB terms
compared
to the nine months ended September 30, 2024.
Stanwell Rebate
The
Stanwell
rebate
was
$70.1
million
for
the
nine
months
ended
September
30,
2025,
a
decrease
of
$13.2
million
compared
to
$83.3
million
for
the
nine
months
ended
September
30,
2024.
The
decrease
was
due
to
lower export
sales volume,
lower realized
reference coal
pricing used
to calculate
the rebate
compared to
the
same period in 2024 and favorable average foreign exchange
rates on translation of the Australian Operations.
Other Royalties
Other royalties were $118.1 million for the
nine months ended September 30,
2025,
a decrease of $117.5 million,
as
compared
to
$235.6
million
for
the
nine
months
ended
September
30,
2024,
due
to
lower
coal
revenues
combined with favorable average exchange rates on translation
of the Australian Operations.
Interest expense, net
Interest
expense,
net
was
$68.3
million
in the
nine
months
ended
September
30,
2025,
an
increase of
$26.1
million as
compared to
$42.2 million
for the
nine months
ended September
30, 2024.
The increase
was driven
by higher
indebtedness due
to additional
borrowings under
the Notes, ABL
Facility, Curragh Housing Transaction,
insurance
premium
financing
and
coal
prepayment
facility
combined
with
lower
interest
income
on
cash
equivalents and restricted
deposits during the
nine months
ended September
30, 2025, compared
to the same
period in 2024.
Other, net
Other,
net was
a gain
of $0.2
million for
the nine
months ended
September 30,
2025, an
improvement of
$8.9
million compared
to a
loss
of $8.6
million
for the
nine
months
ended
September
30, 2024.
The
increase
was
largely driven by
an impairment charge
of $10.6 million
recognized against property, plant and equipment
relating
to
a
long-standing,
non-core,
idled
asset
sold
within
our
U.S.
Operations
during
the
nine
months
ended
September
30,
2024,
and
lower
foreign
exchange
losses
on
translation
of
short-term
inter-entity
balances
between certain entities within
the group that are
denominated in currencies other than
their respective functional
currencies.
Income Tax Benefit
Income tax
benefit of
$23.7 million
for the
nine months
ended September
30, 2025,
decreased by
$4.8 million,
compared to income tax benefit of $28.5 million for the nine months ended September 30, 2024, primarily driven
by an effective tax rate of 7.7% for the nine months
ended September 30, 2025.
In calculating the annual effective tax rate for
the Group:
●
For the Australian operations, due to a three-year cumulative
loss position and significant carried
forward losses, a full valuation allowance was included
as part of the annual effective tax rate
calculation, thereby reducing the rate to nil.
●
For the U.S. operations, due to a
three-year cumulative loss position the recoverability of carried forward
deferred tax assets
was assessed and
as a result
a partial valuation
allowance was included
as part of
the annual effective tax rate, thereby reduci
ng the annual effective tax rate to 7.7%.
Table of Contents
Coronado Global Resources Inc.
Form 10-Q September 30, 2025
39
Supplemental Segment Financial Data
Three months ended September 30, 2025 compared to
three months ended September 30, 2024
Australia
Three months ended
September 30,
2025
2024
Change
%
(in US$ thousands)
Sales volume (MMt)
2.8
2.4
0.4
14.2%
Total
revenues ($)
300,317
365,953
(65,636)
(17.9)%
Coal revenues ($)
294,872
358,652
(63,780)
(17.8)%
Average realized price per Mt sold ($/Mt)
107.0
148.6
(41.6)
(28.0)%
Met coal sales volume (MMt)
1.8
1.7
0.1
2.9%
Met coal revenues ($)
257,752
334,594
(76,842)
(23.0)%
Average realized Met price per Mt sold ($/Mt)
145.1
193.8
(48.7)
(25.1)%
Mining costs ($)
240,470
290,121
(49,651)
(17.1)%
Mining cost per Mt sold ($/Mt)
87.3
122.8
(35.5)
(28.9)%
Operating costs ($)
348,156
418,335
(70,179)
(16.8)%
Operating costs per Mt sold ($/Mt)
126.4
173.3
(46.9)
(27.1)%
Segment Adjusted EBITDA ($)
(47,881)
(51,978)
4,097
(7.9)%
Coal revenues for our Australian Operations decreased largely due to an average realized Met
coal price per Mt
sold, which was $48.7 per
Mt lower compared to the same
period in 2024,
and a sales mix which
was weighted
more towards export thermal volumes
as we experienced reliability issues
with the CHPP and
bypassed raw coal
to manage cash flows, partially offset by higher
Met sales volume.
Operating
costs
decreased
by
$70.2
million,
or
16.8%,
for
the
three
months
ended
September
30,
2025,
compared to the
three months ended
September 30, 2024,
driven by lower
other royalties,
resulting from lower
realized
prices,
and
lower
mining
costs.
Mining
costs
were
$49.7
million
lower
for
the
three
months
ended
September 30, 2025 compared to the same
period in 2024, largely a result of an
inventory build due to saleable
production
exceeding
sales
volumes,
compared
to
an
inventory
drawdown
in
2024,
and
a
favorable
average
foreign exchange rates on translation of our Australian Operations. Mining and Operating costs per Mt sold were
$35.5 and $46.9
lower, respectively,
attributable to lower
mining and operating
costs and 0.4
MMt higher sales
volume for the three months ended September 30, 2025
compared to the same period in 2024.
Segment
Adjusted
EBITDA
loss
of
$47.9
million
for
the
three
months
ended
September
30,
2025,
was
$4.1
million,
or
7.9%,
lower
compared
to
a
loss
of
$52.0
million
for
the
three
months
ended
September
30,
2024,
largely driven by lower operating costs, partially offset
by lower coal revenues.
Table of Contents
Coronado Global Resources Inc.
Form 10-Q September 30, 2025
40
United States
Three months ended
September 30,
2025
2024
Change
%
(in US$ thousands)
Sales volume (MMt)
1.2
1.5
(0.3)
(17.7)%
Total
revenues ($)
181,810
242,262
(60,452)
(25.0)%
Coal revenues ($)
181,798
242,051
(60,253)
(24.9)%
Average realized price per Mt sold ($/Mt)
145.8
159.8
(14.0)
(8.8)%
Met coal sales volume (MMt)
1.1
1.5
(0.4)
(22.7)%
Met coal revenues ($)
173,523
237,101
(63,578)
(26.8)%
Average realized Met price per Mt sold ($/Mt)
154.2
162.8
(8.6)
(5.3)%
Mining costs ($)
118,515
166,210
(47,695)
(28.7)%
Mining cost per Mt sold ($/Mt)
95.0
109.7
(14.7)
(13.4)%
Operating costs ($)
149,176
202,315
(53,139)
(26.3)%
Operating costs per Mt sold ($/Mt)
119.6
133.6
(14.0)
(10.5)%
Segment Adjusted EBITDA ($)
32,879
41,628
(8,749)
(21.0)%
Coal revenues
for our
U.S.
Operations decreased
by $60.3
million, largely
attributable
to an
average realized
Met coal price which
was $14.0 per Mt
lower compared to
the three months ended
September 30, 2024, driven
by unfavorable
market conditions and
lower fixed
prices achieved
from annual
domestic price
contracts compared
to 2024. Coal revenues were also impacted by
lower sales volume of 0.3 MMt due
to lower production yields, the
temporary idling
of surface
mines at
Logan, and
rail, port
and pier
constraints which
resulted in
the deferral
of
three vessels into October 2025.
Operating costs were
$53.1 million lower
for the three
months ended September 30,
2025, compared to
the same
period in 2024, driven by lower mining costs a result
of temporary idling of surface mine operations at Logan and
reduced well
drilling at
Buchanan, and
a higher
build in
inventory as
lower sales
volumes, caused
by port,
rail
and
pier
constraints,
exceeded
lower
production
during
the
three
months
ended
September
30,
2025
when
compared to the
same period in
2024. Mining and
Operating costs per
Mt sold were
lower by $14.7
and $14.0,
respectively, attributable
to lower mining and operating costs, partially offset
by lower sales volume.
Segment Adjusted
EBITDA was
$32.9 million
for the
three months
ended September
30, 2025,
a decrease
of
$8.7 million compared to $41.6 million for
the three months ended September 30, 2024, primarily driven
by lower
coal revenues,
partially offset by lower operating costs.
Corporate and Other Adjusted EBITDA
The following table presents a summary of the components
of Corporate and Other Adjusted EBITDA:
Three months ended
September 30,
2025
2024
Change
%
(in US$ thousands)
Selling, general, and administrative expenses
$
7,541
$
9,174
$
(1,633)
(17.8)%
Other, net
(4)
(401)
(99.0)%
Total
Corporate and Other Adjusted EBITDA
$
7,537
$
8,773
$
(1,236)
(14.1)%
Corporate and other costs
of $7.5 million for
the three months ended September
30, 2025, was $1.2 million
lower
compared
to
the
three
months
ended
September
30,
2024
due
to cost
savings
initiatives
implemented
at
the
corporate level, partially offset by costs incurred
to pursue various initiatives to improve liquidity.
Table of Contents
Coronado Global Resources Inc.
Form 10-Q September 30, 2025
41
Mining
and
operating
costs
for
the
three
months
ended
September
30,
2025
compared
to
three
months ended September 30, 2024
A reconciliation of
segment costs and
expenses, segment operating
costs, and segment
mining costs is
shown
below:
Three months ended September 30, 2025
(in US$ thousands)
Australia
United
States
Other /
Corporate
Total
Consolidated
Total costs and
expenses
$
370,733
$
175,232
$
8,106
$
554,071
Less: Selling, general and administrative
expense
(4)
-
(7,537)
(7,541)
Less: Depreciation, depletion and amortization
(22,573)
(26,056)
(569)
(49,198)
Total operating costs
348,156
149,176
-
497,332
Less: Other royalties
(30,035)
(8,655)
-
(38,690)
Less: Stanwell rebate
(26,331)
-
-
(26,331)
Less: Freight expenses
(49,717)
(22,006)
-
(71,723)
Less: Other non-mining costs
(1,603)
-
-
(1,603)
Total mining costs
240,470
118,515
-
358,985
Sales Volume excluding non-produced
coal
(MMt)
2.8
1.2
-
4.0
Mining cost per Mt sold ($/Mt)
87.3
95.0
-
89.7
Three months ended September 30, 2024
(in US$ thousands)
Australia
United
States
Other /
Corporate
Total
Consolidated
Total costs and
expenses
$
438,184
$
227,466
$
9,733
$
675,383
Less: Selling, general and administrative
expense
(12)
-
(9,162)
(9,174)
Less: Depreciation, depletion and amortization
(19,837)
(25,151)
(571)
(45,559)
Total operating costs
418,335
202,315
-
620,650
Less: Other royalties
(51,567)
(11,453)
-
(63,020)
Less: Stanwell rebate
(25,391)
-
-
(25,391)
Less: Freight expenses
(41,474)
(24,652)
-
(66,126)
Less: Other non-mining costs
(9,782)
-
-
(9,782)
Total mining costs
290,121
166,210
-
456,331
Sales Volume excluding non-produced
coal
(MMt)
2.4
1.5
-
3.9
Mining cost per Mt sold ($/Mt)
122.8
109.7
-
117.7
Average realized Met price per
Mt sold for the three months
ended September 30, 2025
compared to
three months ended September 30, 2024
A reconciliation of the Company's average realized
Met price per Mt sold is shown below:
Three months ended
September 30,
2025
2024
Change
%
(in US$ thousands)
Met coal sales volume (MMt)
2.9
3.2
(0.3)
(8.8)%
Met coal revenues ($)
431,275
571,695
(140,420)
(24.6)%
Average realized Met price per Mt sold ($/Mt)
148.6
179.6
(31.0)
(17.3)%
Table of Contents
Coronado Global Resources Inc.
Form 10-Q September 30, 2025
42
Nine months ended September 30, 2025 compared to
Nine months ended September 30, 2024
Australia
Nine months ended
September 30,
2025
2024
Change
%
(in US$ thousands)
Sales volume (MMt)
7.2
7.6
(0.4)
(5.2)%
Total
revenues ($)
833,439
1,260,549
(427,110)
(33.9)%
Coal revenues ($)
812,433
1,235,746
(423,313)
(34.3)%
Average realized price per Mt sold ($/Mt)
112.4
162.0
(49.6)
(30.6)%
Met coal sales volume (MMt)
5.0
5.5
(0.5)
(10.0)%
Met coal revenues ($)
738,442
1,172,404
(433,962)
(37.0)%
Average realized Met price per Mt sold ($/Mt)
148.4
212.2
(63.8)
(30.0)%
Mining costs ($)
661,736
826,880
(165,144)
(20.0)%
Mining cost per Mt sold ($/Mt)
91.5
109.6
(18.1)
(16.5)%
Operating costs ($)
957,996
1,245,737
(287,741)
(23.1)%
Operating costs per Mt sold ($/Mt)
132.5
163.3
(30.8)
(18.9)%
Segment Adjusted EBITDA ($)
(122,925)
16,377
(139,302)
(850.6)%
Coal revenues for our
Australian Operations for the nine
months ended September 30,
2025, were $423.3 million
lower compared
to the
nine months
ended September
30, 2024.
The decrease
was driven
by the
average realized
Met coal price being $63.8
per Mt lower and a
sales mix which was weighted toward
thermal coal.
Coal revenues
were further impacted
by sales volumes
being 0.4 MMt
lower driven by
the delay caused
by co-shippers of
two
vessels into
October 2025
and partially
offset by
the sale
of port
inventory built
in December
2023 due
to port
constraints, which were shipped in the first quarter
of 2024.
Operating costs decreased
by $287.7 million
driven by lower
mining costs and
lower Stanwell rebate
and other
royalties, resulting
from lower
realized prices
and lower
coal revenues.
Mining costs
were $165.1
million lower
for the nine months ended September
30, 2025, primarily driven by cost
savings from reduced contractors'
fleet
costs since March 2024, higher inventory build as a
result of higher saleable production and lower sales
volume
and
favorable
foreign
exchange
rate
on
translation
of
our
Australian
Operations
for
the
nine
months
ended
September 30, 2025 compared to
the same period in 2024.
Mining and Operating costs
per Mt sold were $18.1
and $30.8 lower, respectively,
compared to the nine months ended September 30, 2024.
Segment Adjusted
EBITDA decreased
from $16.4
million for
the nine
months ended
September 30,
2024 to
a
loss of $122.9 million for the nine months ended September 30, 2025 due to lower coal revenues, partially offset
by lower operating costs.
United States
Nine months ended
September 30,
2025
2024
Change
%
(in US$ thousands)
Sales volume (MMt)
3.9
4.1
(0.2)
(4.9)%
Total
revenues ($)
565,815
689,643
(123,828)
(18.0)%
Coal revenues ($)
565,025
662,329
(97,304)
(14.7)%
Average realized price per Mt sold ($/Mt)
145.1
161.8
(16.7)
(10.6)%
Met coal sales volume (MMt)
3.6
3.9
(0.3)
(7.6)%
Met coal revenues ($)
541,663
640,488
(98,825)
(15.4)%
Average realized Met price per Mt sold ($/Mt)
150.8
164.8
(14.0)
(8.8)%
Mining costs ($)
424,134
459,316
(35,182)
(7.7)%
Mining cost per Mt sold ($/Mt)
108.9
113.7
(4.8)
(4.5)%
Operating costs ($)
515,304
568,190
(52,886)
(9.3)%
Operating costs per Mt sold ($/Mt)
132.4
138.8
(6.4)
(5.0)%
Segment Adjusted EBITDA ($)
50,452
125,322
(74,870)
(59.7)%
Coal revenues decreased by $97.3 million, or 14.7%,
to $565.0 million for the nine months ended
September 30,
2025, compared to $662.3 million for
the nine months ended September 30, 2024.
This decrease was driven by
weak global Met coal markets which resulted
in a lower average realized Met coal price
of $150.8 per Mt for the
Table of Contents
Coronado Global Resources Inc.
Form 10-Q September 30, 2025
43
nine months ended September
30, 2025, and lower
fixed prices achieved
from annual domestic
price contracts
for 2025 compared to 2024.
Operating costs were $52.9 million lower for the
nine months ended September 30, 2025, compared to
the same
period in 2024,
driven by lower
mining costs,
lower coal purchase
and lower
other royalties,
a product of
lower
coal
revenues.
Mining
costs
decreased
by
$35.2
million
for
the
nine
months
ended
September
30,
2025,
compared to the nine months ended
September 30, 2024, due to the
temporary idling of surface mine operations
at Logan
and reduced
well drilling
at Buchanan,
lower maintenance
costs and
higher
inventory build
as lower
sales volumes exceeded lower saleable production.
Adjusted EBITDA of
$50.4 million decreased
by $74.9 million,
or 59.7%, for
the nine months
ended September
30,
2025,
compared
to
$125.3
million
for
the
nine
months
ended
September
30,
2024.
This
decrease
was
primarily driven by lower coal and other revenues
partially offset by lower operating costs.
Corporate and Other Adjusted EBITDA
The following table presents a summary of the components
of Corporate and Other Adjusted EBITDA:
Nine months ended
September 30,
2025
2024
Change
%
(in US$ thousands)
Selling, general, and administrative expenses
$
23,474
$
26,635
$
(3,161)
(11.9)%
Other, net
(22)
(1,218)
1,196
(98.2)%
Total
Corporate and Other Adjusted EBITDA
$
23,452
$
25,417
$
(1,965)
(7.7)%
Corporate and
other costs
of $23.5
million for
the nine
months
ended September
30, 2025,
were $2.0
million
lower compared to
$25.4 million for
the nine months
ended September 30,
2024,
due to cost savings
initiatives
implemented
at
the
corporate
level
partially
offset
by
costs
incurred
to
pursue
various
initiatives
to
improve
liquidity.
Table of Contents
Coronado Global Resources Inc.
Form 10-Q September 30, 2025
44
Mining and operating costs
for the Nine
months ended September 30,
2025 compared to Nine
months
ended September 30, 2024
A reconciliation of
segment costs and
expenses, segment operating
costs, and segment
mining costs is
shown
below:
Nine months ended September 30, 2025
(in US$ thousands)
Australia
United
States
Other /
Corporate
Total
Consolidated
Total costs and
expenses
$
1,018,184
$
588,841
$
24,976
$
1,632,001
Less: Selling, general and administrative
expense
(11)
(13)
(23,450)
(23,474)
Less: Depreciation, depletion and amortization
(60,177)
(73,524)
(1,526)
(135,227)
Total operating costs
957,996
515,304
-
1,473,300
Less: Other royalties
(90,132)
(27,925)
-
(118,057)
Less: Stanwell rebate
(70,115)
-
-
(70,115)
Less: Freight expenses
(131,372)
(63,245)
-
(194,617)
Less: Other non-mining costs
(4,641)
-
-
(4,641)
Total mining costs
661,736
424,134
-
1,085,870
Sales Volume excluding non-produced
coal
(MMt)
7.2
3.9
-
11.1
Mining cost per Mt sold ($/Mt)
91.5
108.9
-
97.6
Nine months ended September 30, 2024
(in US$ thousands)
Australia
United
States
Other /
Corporate
Total
Consolidated
Total costs and
expenses
$
1,312,432
$
642,548
$
27,753
$
1,982,733
Less: Selling, general and administrative
expense
(47)
-
(26,588)
(26,635)
Less: Depreciation, depletion and amortization
(66,648)
(74,358)
(1,165)
(142,171)
Total operating costs
1,245,737
568,190
-
1,813,927
Less: Other royalties
(205,018)
(30,587)
-
(235,605)
Less: Stanwell rebate
(83,293)
-
-
(83,293)
Less: Freight expenses
(112,736)
(70,916)
-
(183,652)
Less: Other non-mining costs
(17,810)
(7,371)
-
(25,181)
Total mining costs
826,880
459,316
-
1,286,196
Sales Volume excluding non-produced
coal
(MMt)
7.5
4.0
-
11.6
Mining cost per Mt sold ($/Mt)
109.6
113.7
-
111.0
Average realized Met
price per Mt
sold for the
Nine months ended
September 30, 2025
compared to
Nine months ended September 30, 2024
A reconciliation of the Company's average realized
Met price per Mt sold is shown below:
Nine months ended
September 30,
2025
2024
Change
%
(in US$ thousands)
Met coal sales volume (MMt)
8.6
9.4
(0.8)
(9.0)%
Met coal revenues ($)
1,280,105
1,812,892
(532,787)
(29.4)%
Average realized Met price per Mt sold ($/Mt)
149.4
192.6
(43.2)
(22.4)%
Table of Contents
Coronado Global Resources Inc.
Form 10-Q September 30, 2025
45
Reconciliation of Non-GAAP Financial Measures
Adjusted EBITDA
Three months ended
September 30,
Nine months ended
September 30,
(in US$ thousands)
2025
2024
2025
2024
Reconciliation to Adjusted EBITDA:
Net loss
$
(109,470)
$
(70,997)
$
(281,871)
$
(54,798)
Add: Depreciation, depletion and amortization
49,198
45,559
135,227
142,171
Add: Interest expense (net of interest income)
29,443
15,808
68,305
42,253
Add: Other financing costs
1,500
-
1,500
-
Add: Other foreign exchange (gains) losses
(1,753)
10,190
(1,972)
1,086
Add: Loss on extinguishment of debt
-
-
1,050
-
Add: Income tax expense (benefit)
5,707
(31,771)
(23,661)
(28,482)
Add: Impairment of non-core assets
-
10,585
-
10,585
Add: Losses on idled assets
-
1,460
1,848
3,624
Add: Increase (decrease) in provision for
credit losses
2,836
3,649
(157)
Adjusted EBITDA
$
(22,539)
$
(19,123)
$
(95,925)
$
116,282
Liquidity and Capital Resources
Overview
Our objective is to maintain a prudent capital structure and to ensure that sufficient liquid assets and funding are
available to meet both anticipated and
unanticipated financial obligations, including unforeseen events that could
have an
adverse impact
on revenues
or costs.
Our principal
sources of
funds are
cash and
cash equivalents,
cash flow from operations and availability under our debt
facilities.
Our main uses of cash have historically been, and are expected to continue to be, the funding of our
operations,
working capital,
capital
expenditures,
debt
service
obligations,
business
or asset
acquisitions
and
payment
of
dividends.
Our ability to generate sufficient cash
depends on our future performance,
which may be subject to a number
of
factors beyond our control,
including general economic, financial,
competitive and weather conditions
and other
risks described
in this
Quarterly Report
on Form
10-Q, Part
I, Item
1A. "Risk
Factors" of
our Annual
Report on
Form 10-K
for the
year ended
December 31,
2024, filed
with the
SEC and
ASX on
February 19,
2025, Part
II,
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