Coronado Global Resources Inc.

Coronado reported saleable production up approximately 39% from Q1 to Q2, with adjusted EBITDA improving by approximately $96 million quarter-on-quarter and moving back to positive territory. Q2 mining cash cost was USD 98 per tonne produced, versus USD 91 per tonne at last year’s exchange rate after adjusting for FX, which management said would have been around 7% below prior year. Free cash flow improved by $70 million versus the prior corresponding period, from an outflow of USD 159 million to an outflow of USD 89 million. The company closed the half with $98 million of cash; on 7 August it secured up to $75 million of Glencore prepayments, lifting pro forma liquidity to $133 million. Full-year product guidance remains 16 million to 17 million tonnes, but management said the company may mine close to what is needed without necessarily converting all of it into salable production by year-end, because plant capacity and inventory building are being prioritized.

Barrie Van Der Merwe framed the company as a long-life met coal portfolio positioned for the next upcycle, with India expected to drive future seaborne demand. He repeatedly emphasized that the near-term plan is to maximize margin and cash flow, not simply to push volume, and said Curragh’s reset is aimed at making the asset ready for the eventual upturn. His tone was confident about the medium- to long-term opportunity, but pragmatic about current constraints, especially plant bottlenecks, liquidity, and the slower-than-expected Mammoth ramp-up.

Sandeep Deoji said operational performance improved materially in June and expects that momentum to continue. He highlighted the Q2 production increase, the $96 million sequential EBITDA improvement, the USD 98 per tonne mining cash cost, and the benefit from FX normalization, noting that costs would have been USD 91 per tonne at last year’s exchange rate. He also pointed to the free cash flow improvement, the $98 million cash balance, the new Glencore prepayments of up to $75 million, and the capital allocation framework of liquidity first, then deleveraging, then growth and shareholder returns. He said the facility is 12-month working capital, unsecured, and carries 14% interest, while no near-term debt maturities remain.

Analysts focused on the Glencore prepayment, asking about security, ranking, and whether other terms beyond the 14% interest applied. Management said the facility is unsecured, sits above equity, and is structured like a customer offtake arrangement rather than a conventional secured loan. Questions also centered on Mammoth’s ramp-up and whether Stage 2 and 3 growth would be reinstated; management said the fatality materially slowed the ramp, current rates are inconsistent, and phase 2/3 is effectively on pause while the new mine plan and exit sequence are worked through.