UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
___________________________________________________
FORM
___________________________________________________
(Mark One)
ACT OF 1934
For the quarterly period ended
OR
ACT OF 1934
For the transition period from to
Commission File Number:
___________________________________________________
(Exact name of registrant as specified in its charter)
___________________________________________________
(State or other jurisdiction of
incorporation or organization)
(I.R.S. Employer
Identification No.)
,
,
(Address of principal executive offices)
(Zip Code)
(
)
(Registrant’s telephone number, including area code)
N/A
(Former name, former address and former fiscal year, if changed since last report)
___________________________________________________
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading Symbol(s)
Name of each exchange on which registered
None
None
None
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange
Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has
been subject to such filing requirements for the past 90 days.
☒
☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant
to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant
was required to submit such files).
☒
☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting
company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting
company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer
☐
☒
Non-accelerated filer
☐
Smaller reporting company
☒
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying
with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes
☐
☒
The registrant’s common stock is publicly traded on the Australian Securities Exchange in the form of CHESS Depositary Interests, or
CDIs, convertible at the option of the holders into shares of the registrant’s common stock on a 10-for-1 basis. The total number of shares
of the registrant's common stock, par value $0.01 per share, outstanding on April 30, 2026, including shares of common stock underlying
CDIs, was
.
Steel starts
here.
Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2026.
TABLE OF CONTENTS
Page
4
5
6
7
8
24
25
41
43
44
44
44
44
44
45
46
47
Coronado Global Resources Inc.
PART I – FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
Condensed Consolidated Balance Sheets
(In US$ thousands, except share data)
Assets
Note
(Unaudited)
December 31,
2025
Current assets:
Cash and cash equivalents
$
$
Trade receivables, net
Inventories
5
Other current assets
6
Total current assets
Non-current assets:
Property, plant and equipment, net
7
Right of use asset – operating leases, net
9
Restricted deposits
18
Goodwill
Intangible assets, net
Other non-current assets
Total assets
$
$
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable
$
$
Accrued expenses and other current liabilities
8
Asset retirement obligations
Contract obligations
Lease liabilities
9
Interest bearing liabilities
10
Income tax payable
Other current financial liabilities
12
Total current liabilities
Non-current liabilities:
Asset retirement obligations
Lease liabilities
9
Interest bearing liabilities
10
Contract obligations
Stanwell liabilities
11
Other financial liabilities
12
Deferred income tax liabilities
Other non-current liabilities
Total liabilities
$
$
Common stock $
December 31, 2025
Series A Preferred stock $
authorized,
December 31, 2025
Additional paid-in capital
Accumulated other comprehensive losses
16
(121,072 )
(120,444 )
Accumulated losses
(644,820 )
(326,230 )
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
2026
2025
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
(33,752 )
(17,898 )
Impairment of assets
4
(159,755 )
Decrease (increase) in provision for credit losses
(630 )
Other, net
(2,213 )
Total other expense, net
(189,374 )
(20,741 )
Loss before tax
(330,122 )
(134,032 )
Income tax benefit
Net loss attributable to Coronado Global Resources Inc.
$
(318,590 )
$
(96,198 )
Other comprehensive loss, net of income taxes:
Foreign currency translation adjustments
Net loss on cash flow hedges
(2,539 )
Total comprehensive (loss) income
(628 )
Total comprehensive loss attributable to Coronado Global Resources
Inc.
$
(319,218 )
$
(93,372 )
Loss per share of common stock
Basic
14
(1.90 )
(0.57 )
Diluted
14
(1.90 )
(0.57 )
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
Accumulated
stockholders
Shares
Amount
Series A
Amount
capital
losses
losses
equity
Balance December 31, 2025
$
$
$
$
(120,444 )
$
(326,230 )
$
Net loss
—
—
(318,590 )
(318,590 )
Other comprehensive loss
—
—
(628 )
(628 )
Total comprehensive loss
—
—
(628 )
(318,590 )
(319,218 )
Share-based compensation for equity
classified awards
—
—
(4,673 )
(4,673 )
Balance March 31, 2026
$
$
$
$
(121,072 )
$
(644,820 )
$
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 )
$
$
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,
2026
2025
Cash flows from operating activities:
Net loss
$
(318,590 )
$
(96,198 )
Adjustments to reconcile net income to cash and restricted cash provided by
operating activities:
Depreciation, depletion and amortization
Impairment of assets
Amortization of right of use asset - operating leases
Amortization of deferred financing costs
Non-cash interest expense
Amortization of contract obligations
(4,435 )
(6,307 )
Loss on disposal of property, plant and equipment
Loss on disposal of idled asset
Equity-based compensation expense
(4,673 )
(1,188 )
Deferred income taxes
(11,823 )
(36,817 )
Reclamation of asset retirement obligations
(760 )
(1,158 )
(Decrease) increase in provision for discounting and credit losses
(127 )
Other non-cash adjustments
Changes in operating assets and liabilities:
Accounts receivable
Inventories
Other assets
Accounts payable
Accrued expenses and other current liabilities
(50,666 )
(34,881 )
Operating lease liabilities
(6,859 )
(5,564 )
Income tax payable
(1,044 )
(553 )
Change in other liabilities
Net cash used in operating activities
(40,944 )
(37,265 )
Cash flows from investing activities:
Capital expenditures
(34,072 )
(72,058 )
Proceeds from disposal of idle asset
Purchase of restricted and other deposits
(2,225 )
(325 )
Net cash used in investing activities
(35,030 )
(70,919 )
Cash flows from financing activities:
Proceeds from interest bearing liabilities and other financial liabilities
Principal payments on interest bearing liabilities and other financial liabilities
(847 )
(1,384 )
Principal payments on finance lease obligations
(1,791 )
(160 )
Net cash from (used in) financing activities
(1,544 )
Net decrease in cash and cash equivalents
(52,420 )
(109,728 )
Effect of exchange rate changes on cash and cash equivalents
(195 )
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period
$
$
Supplemental disclosure of cash flow information:
Cash payments for interest
$
$
Cash (refund) paid for taxes
$
(3,834 )
$
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 March 3, 2026.
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, 2025 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, 2026 are not necessarily indicative
of the results that may be expected for the year ending December 31, 2026.
(c)
Going Concern
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.
The Company’s earnings and cash flows from operating activities have been significantly impacted by wet
weather and operational issues. For the three months ended March 31, 2026, the Company incurred net losses
of $
As of March 31, 2026, the Company had cash and cash equivalents of $
$
expectations, reflecting seasonal wet weather impacts on production at the Company’s Australian Operations.
With respect to the Company’s financial position, the Company has concluded that its current cash and cash
equivalents and forecasted cash flows will be sufficient to fund its operations and satisfy its obligations for at least
one year from the issuance of these financial statements.
Management continues to explore initiatives to preserve liquidity, enhance flexibility and financial resilience
against events outside management’s control. These initiatives are reasonably within management’s control and
actionable in the near future as needed.
The Company’s forecasts are subject to the achievement of production targets, and other factors beyond its
control, including general economic conditions, metallurgical coal pricing, competitive dynamics and weather-
related impacts. The Company’s working capital requirements in the short to medium term are also dependent
on variations in these factors and the preparation of forecasts requires management’s judgement.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Coronado Global Resources Inc.
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, 2025 included in Coronado Global Resources Inc.’s Annual Report
on Form 10-K filed with the SEC and ASX on March 3, 2026.
(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. “2024-03 - “Income Statement – Reporting Comprehensive Income – Expense Disaggregation
Disclosures” (Subtopic 220-40)
: Disaggregation of Income Statement Expenses. In November 2024, the FASB
issued ASU 2024-03, which requires disclosure, in the notes to financial statements, of specified information
about certain costs and expenses. The amendments aim to improve financial reporting by requiring that public
business entities disclose additional information about specific expense categories in the notes to financial
statements at interim and annual reporting periods. The updated standard is effective for annual reporting periods
beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. Early
adoption is permitted. The Company is currently evaluating the impact that the updated standard will have on its
financial statement disclosures.
ASU No. “2025-11 - Interim Reporting (Topic 270
):
Narrow-Scope Improvements”
. In December 2025, FASB
issued ASU 2025-11 to clarify interim financial reporting guidance under Topic 270. The amendments aim to
make the interim reporting requirements easier to navigate and apply. The amendments do not change the
substance of existing interim reporting requirements but reorganize and clarify when and how the guidance
applies. The amendments also introduce a new disclosure principle requiring entities to disclose events and
changes occurring since the end of the last annual reporting period that have a material impact on the entity. The
updated standard will be effective for annual periods beginning after December 15, 2027, and interim reporting
periods within those annual reporting periods. The Company is currently evaluating the impact that the updated
standard will have on 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
%-
owned Curragh producing mine complex. The U.S. Operations comprise a
%-owned producing mine complex
(Buchanan), a
%-owned idle mine complex (Logan) and a development property (Mon Valley).
The Company operates its business along
the
operating decision maker, or CODM, manages and allocates resources to the various components of the
Company’s business.
The CODM uses Adjusted EBITDA as the primary metric to measure each segment’s operating performance.
Adjusted EBITDA is not a measure of financial performance calculated in accordance with U.S. GAAP. Investors,
analysts, lenders and rating agencies should be aware that the Company’s presentation of Adjusted EBITDA
may not be comparable to similarly titled financial measures used by other companies.
Adjusted EBITDA is defined as earnings before interest, taxes, depreciation, depletion and amortization and other
foreign exchange losses. Adjusted EBITDA is also adjusted for certain discrete items that management exclude
in analyzing each of the Company’s segments’ operating performance. “Other and corporate” relates to additional
financial information for the corporate function, such as financial reporting and accounting, treasury, legal, human
resources, compliance, and tax. As such, the corporate function is not determined to be a reportable segment
but is discretely disclosed for purposes of reconciliation to the Company’s unaudited Condensed Consolidated
Financial Statements.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Coronado Global Resources Inc.
Reportable segment results as of and for the three months ended March 31, 2026 and 2025 are presented below:
(in US$ thousands)
Australia
United States
Other and
Corporate
Total
Three months ended March 31, 2026
Total revenues
$
$
$
$
Less:
Mining cash costs
(1)
(253,890 )
(146,857 )
(400,747 )
Other operating costs
(1)
(101,076 )
(58,150 )
(159,226 )
Total operating costs
(354,966 )
(205,007 )
(559,973 )
Other and unallocated costs
(2)
(1,260 )
(4,614 )
Segment adjusted EBITDA
(86,573 )
(4,614 )
(89,350 )
Total assets
Capital expenditures
Three months ended March 31, 2025
Total revenues
$
$
$
$
Less:
Mining cash costs
(1)
(198,204 )
(158,492 )
(356,696 )
Other operating costs
(1)
(140,163 )
(16,826 )
(156,989 )
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
(1)
The significant expense category and amount aligns with the segment-level information that is regularly provided to the CODM and excludes Depreciation,
Depletion and Amortization.
(2)
Other and unallocated items for other and corporate includes selling, general and administrative expenses.
The reconciliations of Consolidated Adjusted EBITDA to net loss attributable to the Company for the three months
ended March 31, 2026 and 2025 are as follows:
Three months ended
March 31,
(in US$ thousands)
2026
2025
Consolidated Adjusted EBITDA
$
(89,350 )
$
(72,816 )
Depreciation, depletion and amortization
(43,337 )
(40,521 )
Interest expense, net
(1)
(33,752 )
(17,898 )
Other foreign exchange losses
(2)
(4,055 )
(332 )
Impairment of assets
(159,755 )
Losses on idled assets
(3)
(1,835 )
Decrease (increase) in provision for credit losses
(630 )
Net loss before tax
(330,122 )
(134,032 )
Income tax benefit
Net loss
$
(318,590 )
$
(96,198 )
(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.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Coronado Global Resources Inc.
(3)
The reconciliations of capital expenditures per the Company’s segment information to capital expenditures
disclosed on the unaudited Condensed Consolidated Statements of Cash Flows for the three months ended
March 31, 2026 and 2025 are as follows:
Three months ended March 31,
(in US$ thousands)
2026
2025
Capital expenditures per unaudited Condensed Consolidated Statements
of Cash Flows
$
$
Net movement in accruals for capital expenditures
(7,442 )
Capital acquired through finance leases
Net movement in deposits to acquire long lead capital
(6,687 )
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, 2026
(in US$ thousands)
Australia
United States
Total
Product Groups:
Metallurgical coal
$
$
$
Thermal coal
Total coal revenue
Other
(1)
Total
$
$
$
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
$
$
$
(1) Other revenue for the Australian segment includes the amortization of the Stanwell non-market coal supply contract obligation liability.
4. Impairment of assets
On March 27, 2026, management idled operations at the Logan mine complex within the Company’s U.S.
Operations in response to sustained weakness in the U.S. domestic Met coal markets. The idling represented a
triggering event under Accounting Standards Codification, or ASC, 360 –
Property, Plant and Equipment
,
requiring the Company to assess the recoverability of the relevant asset groups. The Company determined that
the estimated undiscounted pre-tax future cash flows of the Logan asset group did not exceed its carrying value.
Accordingly, the Company measured the fair value of the asset group and recorded an impairment charge of
$
of the asset group to its estimated fair value. The impairment charge is included in “Impairment of assets” in the
accompanying unaudited Condensed Consolidated Statements of Operations and Comprehensive Income for
the three months ended March 31, 2026.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Coronado Global Resources Inc.
The estimated fair value was determined using Level 3 inputs such as indicative offers, comparable transactions
and estimates of future cashflows based on a combination of historical results adjusted to reflect the Company’s
best estimate of future market and operating conditions, including the mine’s life of mine plan. The life of mine
plan includes assumptions in relation to future coal prices, projected mine production volumes, operating costs,
capital costs and discount rate.
5. Inventories
(in US$ thousands)
March 31,
2026
December 31,
2025
Raw coal
$
$
Saleable coal
Total coal inventories
Supplies and other inventory
Total inventories
$
$
Coal inventories measured at their net realizable value were $
and $
and December 31, 2025, respectively, and form part of total coal inventories.
6. Other Assets
(in US$ thousands)
March 31,
2026
December 31,
2025
Other current assets
Prepayments
$
$
Long service leave receivable
Deposits to acquire capital items
Derivative assets (refer to Note 15. Derivatives and Fair Value Measurement)
Stanwell receivable
Other
Total other current assets
$
$
7. Property, Plant and Equipment
(in US$ thousands)
March 31,
2026
December 31,
2025
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, amortization and impairment
Property, plant and equipment, net
$
$
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Coronado Global Resources Inc.
8. Accrued Expenses and Other Current Liabilities
Accrued expenses and other current liabilities consist of the following:
(in US$ thousands)
March 31,
2026
December 31,
2025
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
$
$
9. Leases
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, 2026
March 31, 2025
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,
2026
December 31,
2025
Assets
Operating leases:
Operating lease right-of-use assets
$
$
Finance leases:
Property and equipment
Accumulated depreciation
(4,060 )
(2,721 )
Property and equipment, net
Liabilities
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
$
$
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Coronado Global Resources Inc.
March 31,
2026
December 31,
2025
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
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, 2026, are as follows:
(in US$ thousands)
Operating
Lease
Finance
Lease
Year ending December 31,
2026
$
$
2027
2028
2029
Total lease payments
Less imputed interest
(13,336 )
(4,161 )
Total lease liability
$
$
10. Interest Bearing Liabilities
The following is a summary of interest-bearing liabilities as at March 31, 2026:
March 31, 2026
December 31, 2025
Weighted Average
Interest Rate at
March 31, 2026
Final
Maturity
% Senior Secured Notes
$
$
%
(2)
ABL Facility
.00%
Loan - Curragh Housing Transaction
%
(2)
Debt issuance costs
(1)
(9,684 )
(10,203 )
Total interest bearing liabilities
Less: current portion
(1,764 )
(1,671 )
Non-current interest-bearing liabilities
$
$
(1)
Relates to 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 (as defined below) 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, 2026, the aggregate outstanding principal amount of the
% Senior Secured Notes due
2029, or the Notes, 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.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Coronado Global Resources Inc.
The terms of the Notes are governed by an indenture, or the Indenture, dated as of October 2, 2024, among
Coronado Finance Pty Ltd, as issuer, or the Issuer, Coronado Global Resources Inc., as guarantor, the
subsidiaries of Coronado Global Resources Inc. named therein as additional guarantors(collectively with
Coronado Global Resources Inc., the Guarantors), and Wilmington Trust, National Association, as trustee and
priority lien collateral trustee. The Indenture contains customary covenants for high yield bonds, including, but
not limited to, limitations on investments, liens, indebtedness, asset sales, transactions with affiliates and
restricted payments, including payment of dividends on capital stock.
The Notes are guaranteed on a senior secured basis by the Company and certain of the Company’s subsidiaries
that guarantee, or are a borrower, under the Company’s ABL Facility or certain other debt and secured by (i) a
first-priority lien on substantially all of the assets of the Issuer and each Guarantor (other than accounts receivable
and certain other rights to payment, inventory, certain investment property, certain general intangibles and
commercial tort claims, deposit accounts, securities accounts and other related assets, chattel paper, letter of
credit rights, certain insurance proceeds, intercompany indebtedness and certain other assets related to the
foregoing and proceeds and products of each of the foregoing, or collectively, the ABL Priority Collateral) and
(ii) a second-priority lien on the ABL Priority Collateral, which is junior to a first-priority lien for the benefit of the
lenders and other creditors under the Company’s asset-based revolving credit facility, dated as of June 18, 2025,
subject to certain exceptions and permitted liens.
Upon the occurrence of a “Change of Control Triggering Event”, defined in the Indenture as the occurrence of
Change of Control and Rating Decline (each as defined in the Indenture), the Issuer is required to offer to
repurchase the Notes at
% of the aggregate principal amount thereof, plus accrued and unpaid interest, if
any, to, but excluding, the repurchase date. The Issuer also has the right to redeem the Notes at
% of the
aggregate principal amount thereof, plus accrued and unpaid interest, if any, to, but excluding, the repurchase
date, following the occurrence of a Change of Control Triggering Event, provided that the Issuer redeems at least
% of the Notes outstanding prior to such Change of Control Triggering Event. Upon the occurrence of certain
changes in tax law (as described in the Indenture), the Issuer may redeem all of the Notes at a redemption price
equal to
% of the principal amount of the Notes to be redeemed plus accrued and unpaid interest, if any, to,
but excluding, the redemption date.
The Indenture contains customary events of default, including failure to make required payments, failure to
comply with certain agreements or covenants, failure to pay or acceleration of certain other indebtedness, certain
events of bankruptcy and insolvency, and failure to pay certain judgments. An event of default under the Indenture
will allow either the trustee or the holders of at least
% in aggregate principal amount of the then-outstanding
Notes to accelerate, or in certain cases, will automatically cause acceleration of, the amounts due under the
Notes.
As of March 31, 2026, the Company was in compliance with all applicable covenants under the Indenture.
The carrying value of debt issuance costs, recorded as a deduction of the Notes, was $
at March 31, 2026 and December 31, 2025, respectively.
Asset Based Revolving Credit Facility
On November 27, 2025, or the Amendment Date, the Company, Coronado Finance Pty Ltd, an Australian
proprietary company and a wholly owned subsidiary of the Company, Coronado Curragh Pty Ltd, an Australian
proprietary company and wholly owned subsidiary of the Company (together with Coronado Finance Pty Ltd, the
Borrowers), and the other guarantors party thereto, collectively with the Company, the Guarantors, and, together
with the Company and the Borrowers, the Obligors, entered into an asset-based lending facility, or the ABL
Facility, for an initial aggregate principal amount of $
Services Australia Pty Ltd, as the Administrative Agent, Global Loan Agency Services Australia Nominees Pty
Ltd, as Collateral Agent, and Stanwell Corporation Limited, or Stanwell, as Lender.
The ABL Facility is a revolving credit facility that matures in
. Availability 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 of
% per annum, which may increase
to
% per annum depending on the level of the Borrowing Base Ratio.
As of March 31, 2026, the aggregate principal amount outstanding of the ABL Facility was $
million), including $
of Coronado Finance Pty Ltd.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Coronado Global Resources Inc.
Amounts outstanding under the ABL Facility are secured by (i) a first-priority lien in the ABL Priority Collateral,
and (ii) a second-priority lien on substantially all of the Company’s assets and the assets of the guarantors, other
than the ABL Priority Collateral.
The ABL Facility contains customary representations and warranties and affirmative and negative covenants
including, among others, a quarterly Borrowing Base Ratio test and, from December 31, 2027, the maintenance
of a gearing ratio and interest coverage ratio.
The ABL Facility provides for customary events of default that may trigger certain repayment obligations and
review events. A review event will occur under the ABL Facility if the Borrowing Base Ratio is below the specified
minimum threshold of
%. Following the occurrence of a review event, the Borrowers must promptly meet and
consult in good faith with the Administrative Agent and the Lender to determine whether the Borrowing Base
Ratio on the next testing date will be above the specified minimum threshold. If, at the end of a period of
business days after the occurrence of the review event, the Lender is not satisfied with the result of its discussions
with the Borrowers, the Lender may require the Borrowers to repay outstanding borrowings in an aggregate
amount sufficient to restore the Borrowing Base Ratio to the specified minimum threshold.
In the event of a default by the Borrowers (beyond any applicable grace or cure period, if any), the Administrative
Agent may and, at the direction of the Lender shall, declare all amounts owing under the ABL Facility immediately
due and payable, terminate the Lender’s commitment to make loans under the ABL Facility and/or exercise any
and all remedies and other rights under the ABL Facility.
In connection with the entry into the ABL Facility, the Company also entered into amendments to its existing coal
supply agreements with Stanwell. Refer to Note 11. “Stanwell Liabilities” for further information.
The carrying value of debt issuance costs, recorded as “Other non-current assets” in the Consolidated Balance
Sheets, was $
amortized ratably over the term of the ABL Facility.
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 12. “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
%. 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.
11. Stanwell Liabilities
(in US$ thousands)
March 31, 2026
December 31,
2025
Stanwell Reserved Area deferred consideration
$
$
Stanwell Prepaid coal supply liability
Stanwell Prepayment and deferred payment
$
$
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Coronado Global Resources Inc.
Stanwell deferred consideration liability
On August 14, 2018, the Company completed the acquisition of rights to mine in the Stanwell Reserved Area, or
the SRA, adjacent to the current Curragh mining tenements. These rights were acquired on a deferred
consideration basis, and on acquisition the Company recognized a “Mineral rights and reserves” asset and a
corresponding deferred consideration liability of $
pre-tax discount rate of
%, which represented the fair value of the arrangement at the date of acquisition. The
deferred consideration liability reflects the passage of time by way of an annual accretion at the contractual pre-
tax discount rate of
% and will be settled as a discount to the price of thermal coal supplied to Stanwell over
the term of a New Coal Supply Agreement which is expected to commence in the first half of 2027. The accretion
of the deferred consideration liability is recognized within “Interest expense, net” in the Condensed Consolidated
Statements of Operations and Comprehensive Income. The right-to-mine-asset is amortized over the coal
reserves mined from the SRA.
Stanwell – Prepaid Coal Supply Liability
On June 10, 2025, the Company and Stanwell entered into a deed of amendment , or the First Amendment, and
amended the New Coal Supply Agreement dated July 12, 2019, or the NCSA, and the Amended Coal Supply
Agreement, or the ACSA, whereby Stanwell provided near-term liquidity to the Company in exchange for the
supply of additional tonnage of thermal coal under the NCSA.
The First Amendment included a prepayment for thermal coal and a rebate waiver and deferral from April 2025
to December 2025, both of which will be settled through reduction of the gross proceeds to be received on the
physical delivery of thermal coal to Stanwell, expected to commence in the first half of 2027, or the NCSA Supply
Commencement Date, of up to
, or until such time that the obligation is fully
settled. This prepaid coal supply liability bears interest at
% per annum.
As of March 31, 2026, the carrying value of the Stanwell prepaid coal supply liability, including the prepayment
and the rebate waiver and deferral liability, was $
For the three months ended March 31, 2026, the Company recognized interest expense of $
million) related to the financing component of the prepaid coal supply liability.
Prepayment and Deferred Payment Balance
On November 27, 2025, the Company and Stanwell entered into a second deed of amendment, or the Second
Amendment Deed, that, among other matters, amended the terms of the ACSA and the NCSA, by providing for:
●
until the final delivery date, being the day before the NCSA Supply Commencement Date (refer to change
of control provisions in relation to waiver discussed below) ;
●
under the First Amendment and amounts to which Stanwell is otherwise entitled in relation to the SRA
deferred consideration, or the Deferred Amounts;
●
under the ACSA and the NCSA equal to the difference between the current contracted prices under these
arrangements and an agreed, fixed price roughly equivalent to market prices at the time of the Second
Amendment Deed, or the ACSA Prepayments and the NCSA Prepayments. Stanwell’s obligation to
make the ACSA Prepayments and NCSA Prepayments are subject to certain liquidity tests. More
specifically, Stanwell (i) will advance all of the relevant prepayment when the Company’s monthly liquidity
is below $
Company’s liquidity is between $
prepayments when the Company’s monthly liquidity is above $
●
nominations ranging from
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Coronado Global Resources Inc.
The value of the ACSA Prepayments, NCSA Prepayments and Deferred Amounts, or the Prepayment and
Deferred Payment Balance, will be settled through delivery of coal to Stanwell during the term of the NCSA in
months when the Company’s liquidity exceeds $
make additional payments to reduce the Prepayment and Deferred Payment Balance, including when the
Company makes permitted distributions to shareholders. Where the Prepayment and Deferred Payment Balance
remains outstanding after the final delivery date pursuant to the NCSA (December 31, 2043), the outstanding
balance will be settled in cash in months when the Company’s liquidity exceeds $
is fully repaid.
The Prepayment and Deferred Payment Balance is classified as a financial liability. The liability is initially
measured at the amount of proceeds received from Stanwell and bears an interest at
% per annum. The
contractual interest rate of
% is deemed consistent with a market rate at inception after considering the overall
terms, security and settlement features of the arrangement and, accordingly, the proceeds received approximate
fair value at inception. Interest accrues at
% per annum on the outstanding balance using the effective interest
rate method and is recognized as “interest expense, net” in the unaudited Condensed Consolidated Statement
of Operations and Comprehensive Income.
During the term of the NCSA, the total Prepayment and Deferred Payment Balance, including accrued interest,
is capped at
% of the aggregate outstanding principal balance. After the final delivery date under the terms
of the NCSA, which is scheduled for December 31, 2043, interest continues to accrue at
% per annum without
a cap until the balance is fully repaid.
The interest cap represents assistance provided by Stanwell, a Queensland Government-owned corporation. As
such, the Company accounts for the interest cap as government assistance under its accounting policy election
based on analogy to other accounting standard frameworks and consistent with expected future changes to U.S.
GAAP. No benefit is recognized unless and until the interest cap is reached.
At the end of each reporting period, management assesses whether the Company’s liquidity is expected to
exceed $
within that period as current liability.
As of March 31, 2026, the carrying amount, including accrued interest, of the Prepayment and Deferred Payment
Balance was $
during the three months period ended March 31, 2026, as the interest cap mechanism was not triggered.
The Second Amendment Deed also includes restrictions on the Company’s ability to pay distributions to
shareholders (e.g., dividends) . These restrictions require that the Company maintains a minimum cash liquidity
of $
distribution, and the payment to Stanwell of an equal or greater amount (up to a maximum of three times) than
the distribution to reduce the Prepayment and Deferred Payment Balance.
The ACSA and the NCSA are secured by mortgages registered over the Curragh mine tenements, or the
Tenement Lien, at the Queensland Government level and a third-priority lien on substantially all of the Company's
assets. The Tenement Lien operates independently of, and is not subordinated to, the Company's other secured
debt obligations, and no third party may acquire the Curragh mine tenements without simultaneously assuming
the coal supply obligations to Stanwell.
The Prepayment and Deferred Payment Balance may become repayable if there is an unremedied default under
the ACSA or NCSA.
If a change of control of the Company is proposed within
obtain Stanwell’s consent and, before the change of control occurs, pay Stanwell the waived rebate amounts,
together with contractual interest from the dates such amounts would otherwise have been payable. Additionally,
if an entity that controlled the Company as at November 27, 2025 ceases to control the Company by way of
disposal of an interest in the Company of
% or more without Stanwell’s consent within
27, 2025, then the Company must immediately pay Stanwell the waived rebate amounts, together with interest.
As of March 31, 2026, cumulative rebate amounts of $
No liability was recognized as of March 31, 2026 in respect of the waived rebate amounts because the Company
had not been required to seek Stanwell’s consent in connection with any proposed change or cessation of control
as of that date.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Coronado Global Resources Inc.
12. Other Financial Liabilities
The following is a summary of other financial liabilities as at March 31, 2026:
March 31, 2026
December 31,
2025
Collateralized financial liabilities - Curragh Housing Transaction
$
$
Derivative liability (refer to Note 15. "Derivatives and Fair Value Measurement")
Debt issuance costs
(868 )
(883 )
Total other financial liabilities
Less: current portion
(1,571 )
(1,424 )
Non-current other financial liabilities
$
$
Collateralized financial liabilities – Curragh Housing Transaction
The Curragh Housing Transaction did not satisfy the sale criteria under ASC 606 –
Revenues from Contracts
with Customers
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
interest rate of
%. This liability will be settled in equal monthly payments as part of the accommodation
services arrangement.
In connection with the Curragh Housing Transaction, the Company has granted the counterparty mortgages over
certain leasehold and freehold land. The counterparty’s rights are subject to a priority deed in favor of the
Company’s senior secured parties including, but not limited to, holders of the Notes.
The carrying value of this financial liability, net of issuance costs of $
31, 2026, $
13. Income Taxes
For the three months ended March 31, 2026, 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 2026 estimated annual effective tax rate is
%. This rate is impacted by inclusion of a current
year valuation allowance relating to both the Australia and the U.S. operations. Accordingly, the Company had
an income tax benefit of $
March 31, 2026, which includes discrete expense of $
The Company had an income tax benefit of $
three months ended March 31, 2025.
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, 2026, 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 $
31, 2026 and December 31, 2025.
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 three 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.
14. Loss per Share
Basic loss per share of common stock is computed by dividing net loss attributable to the Company stockholders
for the period by the weighted-average number of shares of common stock outstanding during the same period.
Diluted loss per share of common stock is computed by dividing net loss 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)
2026
2025
Numerator:
Net loss attributable to Company stockholders
$
(318,590 )
$
(96,198 )
Denominator (in thousands):
Weighted average shares of common stock
outstanding
Weighted average diluted shares of common stock outstanding
Loss Per Share (US$):
Basic
(1.90 )
(0.57 )
Diluted
(1.90 )
(0.57 )
The Company’s common stock is publicly traded on the ASX in the form of CDIs, convertible at the option of
the holders into shares of the Company’s common stock on a
-for-1 basis.
15. Derivatives and Fair Value Measurement
a) Derivatives
The Company may use derivative financial instruments to manage its financial risks in the normal course of
operations, including foreign currency risks, commodity price risk related to purchase of raw materials (such as
gas or diesel) and interest rate risk. Derivatives for speculative purposes are strictly prohibited under the Treasury
Risk Management Policy approved by the Board of Directors.
The financing counterparties to the derivative contracts potentially expose the Company to credit-related risk.
Credit risk is the risk that a third party might fail to fulfill its obligations under the terms of the financial instrument.
The Company mitigates credit risk by entering into derivative contracts with high credit quality counterparties,
limiting the amount of exposure to each counterparty and frequently monitoring their financial condition.
Forward foreign currency contracts
The Company’s Australian Operations utilize the cash generated from US$ denominated coal sales revenues to
fund operating costs, which are predominantly in A$. During the three months ended March 31, 2026, the
Company entered into forward foreign currency contracts to hedge its foreign exchange exposure on a portion of
the US$ denominated coal sales revenue at its Australian Operations, whose functional currency is A$.
The aggregate notional amount of the outstanding forward foreign currency derivative contracts designated as
cash flow hedges was $
2026. Given the forward foreign currency contracts were designated as cash flow hedges, the unrealized loss of
$
Condensed Consolidated Balance Sheet, and will be reclassified into “Coal revenues” in the Condensed
Consolidated Statements of Operations and Comprehensive Income in the period in which the hedged
transaction impacts income, expected to be within the next 3 months. Refer to Note 16. “Accumulated Other
Comprehensive Losses.”
As of March 31, 2026, the Company recognized a derivative liability of $
currency contracts unrealized loss, classified within “
Other Financial Liabilities
”. As of December 31, 2025, the
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Coronado Global Resources Inc.
Company recognized a derivative asset of $
gain, classified within “
Other assets
”.
The following table presents the details of outstanding foreign currency contracts:
March 31, 2026
December 31, 2025
Notional
amount
(thousands)
Unit of
measure
Varying
maturity
dates
Notional
amount
(thousands)
Unit of
measure
Varying
maturity
dates
Designated forward foreign
currency contracts
US$
April 2026
-
June 2026
US$
2026-
March
2026
b) Fair Value Measurement
The fair value of a financial instrument is the amount that will be received to sell an asset or paid to transfer a
liability in an orderly transaction between market participants at the measurement date. The fair values of financial
instruments involve uncertainty and cannot be determined with precision.
The Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of
unobservable inputs to the extent possible. The Company determines fair value based on assumptions that
market participants would use in pricing an asset or liability in the market. When considering market participant
assumptions in fair value measurements, the following fair value hierarchy distinguishes between observable and
unobservable inputs, which are categorized in one of the following levels:
Level 1 Inputs: Unadjusted quoted prices in active markets for identical assets or liabilities accessible to the
reporting entity at the measurement date.
Level 2 Inputs: Other than quoted prices that are observable for the asset or liability, either directly or indirectly,
for substantially the full term of the asset or liability.
Level 3 Inputs: Unobservable inputs for the asset or liability used to measure fair value to the extent that
observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity
for the asset or liability at measurement date.
Financial Instruments Measured on a Recurring Basis
As of March 31, 2026 and December 31, 2025, the Company’s forward foreign currency contracts, a net derivative
liability of $
value on a recurring basis based on a valuation that is corroborated by the use of market-based pricing (Level
2).
Financial Instruments Measured on a Nonrecurring Basis
Other than the estimated fair value of the assets described in Note 4. “Impairment of assets”, which are Level 3
fair value, there were
of March 31, 2026, and December 31, 2025.
Other Financial Instruments
The following methods and assumptions were used to estimate the fair value of other financial instruments as of
March 31, 2026 and December 31, 2025:
●
and other current financial liabilities: The carrying amounts reported in the unaudited Condensed
Consolidated Balance Sheets approximated fair value due to the short maturity of these instruments.
●
values approximate d the carrying values reported in the unaudited Condensed Consolidated Balance
Sheets.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Coronado Global Resources Inc.
●
cost. As of March 31, 2026, the fair value of the amounts drawn under the ABL Facility approximated the
carrying value reported in the consolidated balance sheets. The estimated fair value of the Notes as of
March 31, 2026 was approximately $
not considered active (Level 2). The estimated fair value of the Curragh Housing loan was $
based upon unobservable inputs (Level 3).
16. Accumulated Other Comprehensive Losses
The Company’s Accumulated Other Comprehensive Losses consisted of foreign currency translation adjustment
for subsidiaries for which the functional currency is different than the Company’s functional currency in U.S. dollar
and net unrealized gains (losses) on forward foreign currency contracts designated as cash flow hedges as of
March 31, 2026, as follow:
(in US$ thousands)
Foreign
currency
translation
adjustments
Net unrealized
gain on cash
flow hedge -
forward foreign
currency
contracts
Total
Balance at December 31, 2025
$
(122,923 )
$
(120,444 )
Net current-period other comprehensive losses:
(Loss) gain in other comprehensive income before
reclassifications
(6,765 )
(4,054 )
Gain on long-term intra-entity foreign currency transactions
Gain reclassified from accumulated other comprehensive
losses
(5,250 )
(5,250 )
Total net current-period other comprehensive losses
(2,539 )
(628 )
Balance at March 31, 2026
$
(121,012 )
(60 )
$
(121,072 )
17. 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, 2026 were
as follows:
(in US$ thousands)
Amount
Year ending December 31,
2026
$
2027
2028
2029
2030
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, 2026, 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, 2026, these Australian and U.S. commitments under take-or-pay arrangements totaled $
which the Company is obliged to pay approximately $
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Coronado Global Resources Inc.
18. Contingencies
Surety bond, letters of credit and bank guarantees
In the normal course of business, the Company is a party to certain guarantees and financial instruments with
off-balance sheet risk, such as bank guarantees, letters of credit and performance or surety bonds.
related to these arrangements are reflected in the Company’s unaudited Condensed Consolidated Balance
Sheets. Management does not expect any material losses to result from these guarantees or off-balance sheet
financial instruments.
For the U.S. Operations, in order to provide the required financial assurance for post mining reclamation, the
Company generally uses surety bonds. The Company uses surety bonds and bank letters of credit to collateralize
certain other obligations including contractual obligations under workers’ compensation insurance. As of March
31, 2026, the Company had outstanding surety bonds and bank guarantees of $
respectively.
For the Australian Operations, as at March 31, 2026, the Company had bank guarantees outstanding of $
million, primarily in respect of certain rail and port take-or-pay arrangements of the Company.
As of March 31, 2026, the Company in aggregate had total outstanding bank guarantees of $
secure its obligations and commitments.
Future regulatory changes relating to these obligations or deterioration of the Company’s credit risk rating could
result in increased obligations, additional costs or additional collateral requirements.
Restricted deposits – cash collateral
As required by certain agreements, the Company had total cash collateral in the form of deposits of $
and $
for bank guarantees, other performance obligations, various other operating agreements and contractual
obligations under workers compensation insurance. These deposits are restricted and classified as “Non-current
assets” in the unaudited Condensed Consolidated Balance Sheets.
Future regulatory changes in relation to these obligations or deterioration of the Company’s credit risk rating
could result in increased obligations, additional costs or additional collateral requirements.
From time to time, the Company is a party to legal proceedings in the ordinary course of business in Australia
and the U.S. Based on current information, the Company believes that all 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, 2026, the related condensed consolidated statements of operations and
comprehensive income, stockholders’ equity and cash flows for the three months ended March 31, 2026 and
2025 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, 2025, 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 March 3, 2026, 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, 2025, is fairly stated,
in all material respects, in relation to the consolidated balance sheet from which it has been derived.
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 11, 2026
Coronado Global Resources Inc.
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS
The following Management’s Discussion and Analysis of Financial Condition and Results of Operations should
be read in conjunction with the unaudited Condensed Consolidated Financial Statements and the related notes
to those statements included elsewhere in this Quarterly Report on Form 10-Q. In addition, this Quarterly Report
on Form 10-Q should be read in conjunction with the Consolidated Financial Statements for year ended
December 31, 2025 included in Coronado Global Resources Inc.’s Annual Report on Form 10-K for the year
ended December 31, 2025, filed with the SEC and the ASX on March 3, 2026.
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:
●
commodities, such as diesel fuel, steel, explosives and tires, as the result of inflationary pressures,
geopolitical conflicts or otherwise;
●
●
●
regulations, including our ability to provide applicable surety of Curragh’s Estimated Rehabilitation Cost
under the Financial Provisioning Scheme;
●
policies and other barriers to trade;
●
unrest and wars, as well as risks related to government actions with respect to trade agreements, treaties
or policies;
●
developments;
Coronado Global Resources Inc.
●
arising from mining activities, including possible impacts on global climate issues, which could result in
increased regulation of coal combustion and GHG emissions and increased costs associated with coal
production and consumption, such as costs for additional controls to reduce carbon dioxide emissions or
costs to purchase emissions reduction credits to comply with future emissions trading programs, which
could significantly impact our financial condition and results of operations, affect demand for our products
or our securities and reduce our access to capital and insurance;
●
one or more of our major customers, including customers in the steel industry, and key
suppliers/contractors, which among other adverse effects, could lead to reduced demand for our coal,
increased difficulty collecting receivables and customers and/or suppliers asserting force majeure or
other reasons for not performing their contractual obligations to us;
●
governing such indebtedness;
●
performance or otherwise;
●
●
of coal produced, cause delays in or suspension of 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;
●
●
●
proprietary or confidential information about us, our customers or other third parties;
●
require us to recognize or continue to recognize impairment charges related to those assets;
●
●
impact our reported financial results; and
Coronado Global Resources Inc.
●
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, 2025,
filed with the SEC and ASX on March 3, 2026, 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 cash costs per Mt produced, which we define as mining cash costs
divided by saleable production 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.
In the current period, management revised the metric in item (v) above from average segment mining costs per
Mt sold (previously defined as mining costs divided by sales volumes, excluding non-produced coal) to average
segment mining cash costs per Mt produced (defined as mining cash costs divided by saleable production for
the respective segment). This change adjusts the cost base to exclude noncash costs, including inventory
movements, divided by saleable production, which we believe directly aligns costs with the period in which they
are incurred. Management believes the revised metric provides a more meaningful and comparable measure of
segment operating efficiency and consistent with how costs are assessed.
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.
Coronado Global Resources Inc.
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 cash 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 inventory movements, 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 cash costs exclude these cost components as our CODM does not view these costs as directly attributable
to the production of coal. Mining cash 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 a 100%-owned producing mine complex (Buchanan), a 100%-owned idled mine complex (Logan) and
a development property (Mon Valley). 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
During the three months ended March 31, 2026, Coronado navigated through significant operational headwinds,
including (1) temporary suspension of our Mammoth underground operations, or Mammoth, following a safety
incident in January 2026 with phased resumption of mining commencing in mid-February 2026, (2) progressive
curtailment and subsequent idling of our Logan operations in response to sustained weakness in the U.S. high-
vol coal markets, with mining sections shutdown in stages through the first quarter of 2026 and the complex
transitioning to idle status by late March, (3) significant wet weather events at the Curragh North mine in our
Australian Operations which caused flooding of key pit areas, restricted mine access, caused damage to key
infrastructure and reduced coal availability across the Curragh mine complex, (4) the strengthening of the A$
compared to the US$, resulting in higher operating costs at our Australian Operations, and (5) higher freight costs
on sales from our U.S. Operations, primarily driven by a higher proportion of sales under Cost and Freight, or
CFR, terms compared to FOB terms in the prior year period, combined with higher rail and ocean freight rates.
As a result, our saleable production for the three months ended March 31, 2026, of 3.0 MMt, was 0.5 MMt lower
compared to the three months ended March 31, 2025. Despite lower saleable production, sales volumes of 3.5
MMt were 0.1 MMt higher than the three months ended March 31, 2025, primarily driven by the drawdown of
available saleable inventory built at the end of December 2025 from shipment delays and logistical constraints.
Met coal sales represented 71.4% of our total volume of coal sold and 88.7% of total coal revenues for the three
months ended March 31, 2026 compared to 80.9% and 98.3%, respectively, for the three months ended March
31, 2025.
Coronado Global Resources Inc.
Coking coal index prices were stronger during the three months ended March 31, 2026, supported by tight
seaborne supply and improved restocking demand from key Asian steelmakers. Adverse weather conditions,
including heavy rains and flooding, during the first quarter of 2026, significantly disrupted mining operations
across key producing regions, notably in Queensland, where key producers declared force majeure on shipments
or faced weather and safety-related production constraints. These supply-side dynamics contributed to a more
favorable pricing environment for premium Met coal, with the Australian Premium Low Volatile Hard Coking Coal
index, or AUS PLV HCC, reaching a quarterly peak of $252.0 per Mt sold early February and averaging $234.7
per Mt during the three months ended March 31, 2026, $34.5 per Mt higher than the prior quarter and $49.6 per
Mt higher than the three months ended March 31, 2025. Looking ahead, the premium Met coal market appears
reasonably supported, with demand from key Asian steelmakers and constrained seaborne supply continuing to
provide a constructive backdrop, although pricing may remain volatile and subject to weather, trade flows and
broader steel market conditions.
Coal revenues were $460.5 million for the three months ended March 31, 2026, an increase of $19.0 million
compared to the same period in 2025. The increase was primarily driven by higher average realized Met coal
prices, which were $14.0 per Mt higher compared to the three months ended March 31, 2025.
Mining cash costs for the three months ended March 31, 2026, were $44.1 million higher compared to the three
months ended March 31, 2025. The increase in mining cash costs was primarily attributed to higher subcontractor
costs, due to Mammoth ramp-up production and higher overburden removal, repairs and maintenance costs,
resulting from the damage to key infrastructure, and an unfavorable foreign exchange rate of A$/US$ $0.69
compared to $0.63 during the three months ended March 31, 2025. These increases were partially offset by
lower mining cash costs at our U.S. Operations due to the curtailment and subsequent idling of the Logan mine
complex.
In response to the challenging operating environment, management has identified and commenced
implementation of cost reduction initiatives at our Australian Operations targeting improvements in contractor
management, procurement practices, and operational efficiency. In addition, Coronado continues to undertake
initiatives to enhance liquidity and reduce operating and capital costs across the Company.
Liquidity and Going Concern
Coronado had available liquidity, in the form of cash and cash equivalents (excluding restricted cash), of $120.8
million as of March 31, 2026. As of March 31, 2026, Coronado had $703.2 million aggregate principal amount of
interest-bearing liabilities outstanding and cash and cash equivalents (excluding restricted cash) of $120.8 million
resulting in net debt of $582.4 million.
With respect to the Company’s financial position, we concluded that the Company’s current cash and cash
equivalents and forecasted cash flows will be sufficient to fund its operations and satisfy its obligations for at least
one year from the issuance of this Quarterly Report on Form 10-Q.
Safety
For our Australian Operations, the twelve-month rolling average Total Reportable Injury Frequency Rate at March
31, 2026, was 4.08, compared to a rate of 3.62 at the end of December 31, 2025. At our U.S. Operations, the
twelve-month rolling average Total Reportable Incident Rate at March 31, 2026, was 2.49, compared to a rate of
2.30 at the end of December 31, 2025.
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.
Coronado Global Resources Inc.
Three Months Ended March 31, 2026 Compared to Three Months Ended March 31, 2025
Summary
The financial and operational results for the three months ended March 31, 2026 included:
●
higher compared to a net loss of $134.0 million for the three months ended March 31, 2025, which was
primarily driven by higher operating costs and impairment charge partially offset by higher revenues.
●
per Mt sold higher compared to $151.3 per Mt sold for the same period in 2025, reflecting stronger
seaborne metallurgical coal pricing, supported by tighter supply conditions during the quarter.
●
comparable period in 2025, despite saleable production being 0.5 MMt lower. Lower saleable production
was, primarily driven by the temporary suspension of our Mammoth underground operations, adverse
weather impacting coal production and damage to key infrastructure at our Australian Operations, and
curtailed operations at Logan in our U.S. Operations.
●
higher compared to an Adjusted EBITDA loss of $72.8 million for the same period in 2025. This was due
to higher operating costs, resulting from higher subcontractor and maintenance costs and unfavorable
foreign exchange currency translation of our Australian Operations, partially offset by higher coal
revenues.
●
principal amount of interest-bearing liabilities outstanding less cash and cash equivalents (excluding
restricted cash) of $120.8 million.
Coronado Global Resources Inc.
Three months ended
March 31,
2026
2025
Change
%
(in US$ thousands)
Revenues:
Coal revenues
$
460,491
$
441,451
$
19,040
Other revenues
6,701
7,797
(1,096)
Total revenues
467,192
449,248
17,944
Costs and expenses:
Cost of coal revenues (exclusive of items
shown separately below)
443,902
390,291
53,611
Depreciation, depletion and amortization
43,337
40,521
2,816
Freight expenses
85,723
60,188
25,535
Stanwell rebate
—
21,853
(21,853)
Other royalties
30,348
41,353
(11,005)
Selling, general, and administrative expenses
4,630
8,333
(3,703)
Total costs and expenses
607,940
562,539
45,401
Other income (expenses):
Interest expense, net
(33,752)
(17,898)
(15,854)
Impairment of assets
(159,755)
—
(159,755)
credit losses
127
(630)
757
Other, net
4,006
(2,213)
6,219
Total other expenses, net
(189,374)
(20,741)
(168,633)
Net loss before tax
(330,122)
(134,032)
(196,090)
Income tax benefit
11,532
37,834
(26,302)
Net loss attributable to Coronado Global
Resources, Inc.
$
(318,590)
$
(96,198)
$
(222,392)
Coal Revenues
Coal revenues were $460.5 million for the three months ended March 31, 2026, an increase of $19.0 million,
compared to $441.5 million for the three months ended March 31, 2025. This increase was primarily attributable
to higher average realized Met coal prices, reflecting improved restock demand from key Asian steelmakers
combined with tighter supply resulting from adverse weather conditions in Australia, partially offset by the sales
mix being weighted towards lower-priced higher thermal coal sales volumes compared to the same period in
2025, particularly at our Australia Operations.
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 $443.9 million for the three months ended March 31, 2026, $53.6 million, or
13.7% higher, compared to $390.3 million for the three months ended March 31, 2025.
Cost of coal revenues for our Australian Operations for the three months ended March 31, 2026, was $45.9
million higher compared to the same period in 2025, primarily driven by higher subcontractor costs, higher repairs
and maintenance costs resulting from damage to key infrastructure (overland conveyor belt) and an unfavorable
average foreign exchange rates on translation of the Australian Operations for the three months ended March
31, 2026, of A$/US$ $0.69 compared to $0.63 for the same period in 2025.
Cost of coal revenues for our U.S. Operations for the three months ended March 31, 2026, was $7.8 million lower
compared to the three months ended March 31, 2025, primarily due higher project costs from production timing
changes at Buchanan partially offset by lower labor costs and other associated costs from the production
curtailment and subsequent idling of our Logan operations .
Coronado Global Resources Inc.
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 $85.7 million for the three months ended
March 31, 2026, an increase of $25.5 million, compared to $60.2 million for the same period in 2025. Our U.S.
Operations contributed $24.5 million of the increase, driven by higher rail and ocean freight charges and higher
coal sales under CFR terms compared to the three months ended March 31, 2025.
Stanwell Rebate
The Stanwell rebate was waived from January 1, 2026 in connection with the Second Amendment Deed.
Other Royalties
Other royalties were $30.3 million in the three months ended March 31, 2026, a decrease of $11.0 million
compared to $41.4 million for the three months ended March 31, 2025, driven by lower export coal revenues
partially offset by an unfavorable average foreign exchange rate on translation of our Australian Operations.
Interest expense, net
Interest expense, net was $33.8 million for the three months ended March 31, 2026, an increase of $15.8 million
compared to $17.9 million for the three months ended March 31, 2025. The increase was driven by higher
average indebtedness, due to additional borrowings under the ABL Facility, and coal prepayment facility
combined with lower interest income on cash equivalents and restricted deposits during the three months ended
March 31, 2026, compared to the same period in 2025.
Impairment of Assets
During the three months ended March 31, 2026, in response to sustained weakness in the U.S. High-vol coal
markets, the Company curtailed and subsequently idled operations at Logan complex within our Company’s U.S.
Operations. The idling represented a triggering event under ASC 360, requiring the Company to assess the
recoverability of the relevant asset groups. The Company determined that the estimated undiscounted pre-tax
future cash flows of the asset group did not exceed its’ carrying value. Accordingly, the Company measured the
fair value of the asset group and recorded an impairment charge of $159.8 million against long-lived assets,
including property, plant and equipment to write down the carrying value of the asset group to its estimated fair
value.
Other, net
Other, net was a gain of $4.0 million for the three months ended March 31, 2026, an increase of $6.2 million,
compared to a loss of $2.2 million for the three months ended March 31, 2025. The increase was attributable to
$9.3 million reversal of Stanwell rebate accrual on export coal sales for which cash was collected in the first
quarter of 2026 and formed part of the Stanwell rebate waiver applicable from January 1, 2026, in connection
with the Second Amendment Deed. This increase was partially offset by higher 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.
Income Tax Benefit
Income tax benefit was $11.5 million for the three months ended March 31, 2026, a decrease of $26.3 million
compared to an income tax benefit of $37.8 million for the three months ended March 31, 2025. The decrease in
income tax expense was the result of an effective tax rate of 3.5% for the three months ended March 31, 2026,
compared to an effective tax rate of 28.2% for the three months ended March 31, 2025.
Coronado Global Resources Inc.
Supplemental Segment Financial Data
Three Months Ended March 31, 2026 Compared to Three Months Ended March 31, 2025
Australia
Three months ended
March 31,
2026
2025
Change
%
(in US$ thousands)
Sales volume (MMt)
2.2
2.2
—
(4.0)%
Saleable production (MMt)
1.7
2.2
(0.5)
(21.3)%
Total revenues ($)
259,088
273,277
(14,189)
(5.2)%
Coal revenues ($)
252,406
266,024
(13,618)
(5.1)%
Average realized price per Mt sold ($/Mt)
117.0
118.3
(1.3)
(1.1)%
Met coal sales volume (MMt)
1.3
1.6
(0.3)
(20.9)%
Met coal revenues ($)
209,992
250,065
(40,073)
(16.0)%
Average realized Met price per Mt sold ($/Mt)
162.4
152.9
9.5
6.2%
Mining cash costs ($)
253,890
198,204
55,686
28.1%
Mining cash cost per Mt produced ($/Mt)
148.8
91.4
57.4
62.8%
Operating costs ($)
354,966
338,367
16,599
4.9%
Operating costs per Mt sold ($/Mt)
164.5
150.5
14.0
9.3%
Segment Adjusted EBITDA ($)
(86,573)
(64,844)
(21,729)
33.5%
Coal revenues for our Australian Operations decreased by $13.6 million largely due to an adverse sales mix
weighted towards thermal coal sales, with Met coal sales volumes declining 0.3MMt while thermal coal volumes
increased to offset this decline. This was partially offset by higher average realized Met coal prices of $9.5 per
Mt sold during the three months ended March 31, 2026, compared to the same period in 2025. Saleable
production of 1.7 MMt was 0.5 MMt lower than the prior year period, reflecting the combined impact of the
temporary suspension of Mammoth underground operations following a fatal incident in January 2026 and
adverse wet weather events. Despite lower saleable production, sales volumes was 2.2 MMt, supplemented by
a drawdown of saleable coal inventory from December 2025.
Operating costs were $16.6 million higher for the three months ended March 31, 2026 compared to the same
period in 2025, primarily driven by mining cash costs and partially offset by lower Stanwell rebates and other
royalties, a result of lower coal revenues and export sales volumes. The increase in mining cash costs of $55.7
million was driven by higher subcontractor costs, due to Mammoth ramp-up production and higher overburden
removal, repairs and maintenance costs including emergency repair of the overland conveyor belt, and an
estimated $25.0 million adverse impact from an unfavorable average foreign exchange rates on translation of our
Australian Operations (A$/US$ $0.69 compared to A$/US$ $0.63 in the prior year period). Mining Cash Cost per
Mt produced was $57.4 higher than the three months ended March 31, 2025, due to higher gross costs combined
with lower saleable production.
Segment Adjusted EBITDA loss of $86.6 million for the three months ended March 31, 2026, was $21.7 million,
or 33.5%, higher compared to a loss of $64.8 million for the three months ended March 31, 2025, largely driven
by lower coal revenues and higher operating costs.
Coronado Global Resources Inc.
United States
Three months ended
March 31,
2026
2025
Change
%
(in US$ thousands)
Sales volume (MMt)
1.3
1.2
0.1
8.7%
Saleable production (MMt)
1.3
1.3
—
(3.8)%
Total revenues ($)
208,104
175,971
32,133
18.3%
Coal revenues ($)
208,085
175,427
32,658
18.6%
Average realized price per Mt sold ($/Mt)
159.9
146.5
13.4
9.1%
Met coal sales volume (MMt)
1.2
1.2
—
2.3%
Met coal revenues ($)
198,281
171,437
26,844
15.7%
Average realized Met price per Mt sold ($/Mt)
168.5
149.0
19.5
13.1%
Mining cash costs ($)
146,857
158,492
(11,635)
(7.3)%
Mining cash cost per Mt produced ($/Mt)
117.0
121.5
(4.5)
(3.7)%
Operating costs ($)
205,007
175,318
29,689
16.9%
Operating costs per Mt sold ($/Mt)
157.5
146.5
11.0
7.5%
Segment Adjusted EBITDA ($)
1,837
378
1,459
386.0%
Coal revenues for our U.S. Operations increased by $32.7 million, or 18.6%, to $208.1 million for the three months
ended March 31, 2026, compared to the same period in 2025. The increase was largely attributable to an average
realized Met coal price of $168.5 per Mt sold, $19.5 higher compared to the three months ended March 31, 2025,
reflecting favorable market conditions driven by tight supply and sustained demand during the quarter.
Operating costs of $205.0 million were $29.7 million higher for the three months ended March 31, 2026, compared
to the same period in 2025. The increase was driven by higher sales on CFR terms in the 2026 period and higher
freight costs, partially offset by lower mining cash costs as a result of the curtailment and subsequent idling
operations at our Logan mine.
Segment Adjusted EBITDA was $1.8 million for the three months ended March 31, 2026, an increase of $1.4
million compared to $0.4 million for the three months ended March 31, 2025, primarily driven by higher coal
revenues, partially offset by higher operating costs.
Corporate and Other Adjusted EBITDA
The following table presents a summary of the components of Corporate and Other Adjusted EBITDA:
Three months ended
March 31,
2026
2025
Change
%
(in US$ thousands)
Selling, general, and administrative expenses
$
4,630
$
8,333
$
(3,703)
(44.4)%
Other, net
(16)
17
(33)
(194.1)%
Total Corporate and Other Adjusted EBITDA
$
4,614
$
8,350
$
(3,736)
(44.7)%
Corporate and other costs of $4.6 million for the three months ended March 31, 2026, was $3.7 million lower
compared to the three months ended March 31, 2025 as the three months ended March 31, 2026 period was
impacted by vesting and settlement of certain employee share plan. Included in the three months ended March
31, 2025 were costs incurred to pursue various initiatives to improve liquidity.
Coronado Global Resources Inc.
Mining and Operating Costs for the Three Months Ended March 31, 2026 Compared to Three Months
Ended March 31, 2025
A reconciliation of segment costs and expenses, segment operating costs, and segment mining cash costs is
shown below:
Three months ended March 31, 2026
(in US$ thousands)
Australia
United
States
Other /
Corporate
Total
Consolidated
Total costs and expenses
$
372,998
$
229,707
$
5,235
$
607,940
Less: Selling, general and administrative
expense
—
—
(4,630)
(4,630)
Less: Depreciation, depletion and amortization
(18,032)
(24,700)
(605)
(43,337)
Total operating costs
354,966
205,007
—
559,973
Less: Other royalties
(23,936)
(6,412)
—
(30,348)
Less: Stanwell rebate
—
—
—
—
Less: Freight expenses
(41,692)
(44,031)
(85,723)
Less: Coal inventory movement
(28,226)
(6,770)
—
(34,996)
Less: Other costs and non-mining costs
(7,222)
(937)
—
(8,159)
Total mining cash costs
253,890
146,857
—
400,747
Saleable production volume (MMt)
1.7
1.3
—
3.0
Mining cash cost per Mt produced ($/Mt)
148.8
117.0
—
135.3
Three months ended March 31, 2025
(in US$ 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: Coal inventory movement
(39,956)
13,342
—
(26,614)
Less: Other costs and non-mining costs
(5,316)
(1,665)
—
(6,981)
Total mining cash costs
198,204
158,492
—
356,696
Saleable production volume (MMt)
2.2
1.3
—
3.5
Mining cash cost per Mt produced ($/Mt)
91.4
121.5
—
102.7
Average Realized Met Price per Mt Sold for the Three Months Ended March 31, 2026 Compared to
Three Months Ended March 31, 2025
A reconciliation of the Company’s average realized Met price per Mt sold is shown below:
Three months ended
March 31,
2026
2025
Change
%
(in US$ thousands)
Met coal sales volume (MMt)
2.5
2.8
(0.3)
(11.3)%
Met coal revenues ($)
408,273
421,502
(13,229)
(3.1)%
Average realized Met price per Mt sold ($/Mt)
165.3
151.3
14.0
9.3%
Coronado Global Resources Inc.
Reconciliation of Non-GAAP Financial Measures
Adjusted EBITDA
Three months ended
March 31,
(in US$ thousands)
2026
2025
Reconciliation to Adjusted EBITDA:
Net loss
$
(318,590)
$
(96,198)
Add: Depreciation, depletion and amortization
43,337
40,521
Add: Interest expense (net of interest income)
33,752
17,898
Add: Other foreign exchange losses
4,055
332
Add: Income tax benefit
(11,532)
(37,834)
Add: Impairment of assets
159,755
—
Add: Losses on idled assets
—
1,835
Add: (Decrease) increase in provision for credit losses
(127)
630
Adjusted EBITDA
$
(89,350)
$
(72,816)
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 , eligible advance payments under our coal supply agreements with Stanwell and our
ABL Facility.
Our main uses of cash have historically been, and are expected to continue to be, the funding of our operations,
working capital, capital expenditure s, debt service obligations, business or asset acquisitions, if permitted and
declared, and payment of distributions to shareholders.
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 conditions, metallurgical coal pricing,
competitive dynamics, weather-related impacts, and other risks described in this Quarterly Report on Form 10-
Q, and Part I, Item 1A. “Risk Factors” of our Annual Report on Form 10-K for the year ended December 31, 2025,
filed with the SEC and ASX on March 3, 2026.
Sources of liquidity as of March 31, 2026 and December 31, 2025 were as follows:
(in US$ thousands)
March 31,
2026
December 31,
2025
Cash and cash equivalents, excluding restricted cash
$
120,786
$
172,781
Total
$
120,786
$
172,781
(1)
Availability under the ABL Facility was fully drawn as of March 31, 2026. Availability under the ABL Facility is limited to an
eligible borrowing base, determined by applying customary advance rates to eligible accounts receivable and inventory.
Our total indebtedness as of March 31, 2026 and December 31, 2025 consisted of the following:
(in US$ thousands)
March 31,
2026
December 31,
2025
Current installments of interest bearing liabilities
$
1,889
$
1,794
Interest bearing liabilities, excluding current installments
701,266
695,069
Current installments of other financial liabilities, Stanwell liabilities and other
finance lease obligations
9,900
9,488
Other financial liabilities, Stanwell liabilities and finance lease obligations,
excluding current installments
427,859
383,800
Total
$
1,140,914
$
1,090,151
Coronado Global Resources Inc.
Liquidity
As of March 31, 2026, our available liquidity, consisting of cash and cash equivalents (excluding restricted cash),
was $120.8 million.
Coronado continues to undertake initiatives to enhance liquidity and reduce operating and capital costs.
With respect to our financial condition, we have concluded that our current cash and cash equivalents and
forecasted cashflows will be sufficient to fund our operations and satisfy our obligations for at least one year from
the issuance date of this Quarterly Report on Form 10-Q.
Our forecasts are subject to the achievement of production targets, and other factors beyond our control, including
general economic conditions, metallurgical coal pricing, competitive dynamics and weather-related impacts. Our
working capital requirements in the short-to-medium term are also dependent on variations in these factors and
the preparation of forecasts requires management judgement.
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
As of March 31, 2026, the aggregate principal amount outstanding under the ABL Facility was $278.3 million
(A$406.6 million), including $13.3 million of foreign currency translation.
The ABL Facility is a revolving credit facility that matures in five years. Availability 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 of 9% per annum, which may increase
to 12% per annum depending on the level of the Borrowing Base Ratio.
Amounts outstanding under the ABL Facility are secured by (i) a first-priority lien on the ABL Priority Collateral,
and (ii) a second-priority lien on substantially all of the Company’s assets and the assets of the Guarantors, other
than the ABL Priority Collateral.
The ABL Facility contains customary representations and warranties and affirmative and negative covenants
including, among others, a quarterly Borrowing Base Ratio test and, from December 31, 2027, the maintenance
of a gearing ratio and interest coverage ratio.
The ABL Facility provides for customary events of default that may trigger certain repayment obligations and
review events. A review event will occur under the ABL Facility if the Borrowing Base Ratio is below the specified
minimum threshold of 80%. Following the occurrence of a review event, if Stanwell is not satisfied with the result
of its discussions with the Borrowers, Stanwell may require the Borrowers to repay the outstanding borrowings
in an aggregate amount sufficient to restore the Borrowing Base Ratio to the specified minimum threshold.
In the event of a default by the Company (beyond any applicable grace or cure period, if any), the Administrative
Agent may and, at the direction of Stanwell, shall declare all amounts owing under the ABL Facility immediately
due and payable, terminate Stanwell’s commitment to make loans under the ABL Facility 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, 2026, the outstanding amount of our Notes was $400.0 million. The Notes were issued at par
and bear interest at a rate of 9.250% per annum. Interest on the Notes is payable semi-annually in arrears on
April 1 and October 1 of each year, which began on April 1, 2025. The Notes mature on October 1, 2029 and are
senior secured obligations of the Issuer.
The 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.
Coronado Global Resources Inc.
The Indenture contains customary events of default, including failure to make required payments, failure to
comply with certain agreements or covenants, failure to pay for acceleration of certain other indebtedness, certain
events of bankruptcy and insolvency, and failure to pay certain judgments. An event of default under the Indenture
will allow either the trustee or the holders of at least 25% in aggregate principal amount of the then-outstanding
Notes to accelerate, or in certain cases, will automatically cause acceleration of, the amounts due under the
Notes.
As of March 31, 2026, 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.
Stanwell – Prepaid Coal Supply Liability
On June 10, 2025, the Company and Stanwell entered into the First Amendment to the NCSA and the ACSA,
whereby Stanwell provided near-term liquidity to the Company, including a prepayment for thermal coal and a
rebate waiver and deferral from April 2025 to December 2025, both of which will be settled through reduction of
the gross proceeds to be received on the physical delivery of thermal coal to Stanwell, expected to start in the
first half of 2027, of up to 0.8 MMt per annum over five years, or until such time that the obligation is fully settled.
This prepaid coal supply liability bears interest at 13% per annum.
As of March 31, 2026, the carrying value of the Stanwell prepaid coal supply liability, including the prepayment
and the rebate waiver and deferral liability, was $171.6 million (A$250.7 million).
Refer to Part I, Item 1, Note 11. “Stanwell Liabilities” for further information.
Stanwell Prepayment and Deferred Payment Balance
On November 27, 2025, the Company entered into the Second Amendment Deed that, among other matters,
amended the terms of the ACSA and the NCSA to waive rebate amounts that would have otherwise been payable
by the Company under the ACSA from January 1, 2026,and to provide prepayments by Stanwell to the Company
in relation to its future annual nominated contract tonnage under the ACSA and the NCSA in months when the
Company’s liquidity is below $250.0 million.
The value of the Prepayment and Deferred Payment Balance will be settled through delivery of coal to Stanwell
during the term of the NCSA in months when the Company’s liquidity exceeds $300.0 million. In addition, the
Company may from time to time make additional payments to reduce the Prepayment and Deferred Payment
Balance, including when the Company makes permitted distributions to shareholders. Where the Prepayment
and Deferred Payment Balance remains outstanding after the final delivery date pursuant to the NCSA
(December 31, 2043), the outstanding balance will be settled in cash in months when the Company’s liquidity
exceeds $300.0 million until the balance is fully repaid.
As of March 31, 2026, the carrying value of the Prepayment and Deferred Payment Balance was $25.8 million
and classified as non-current financial liability.
The ACSA and the NCSA are secured by mortgages registered over the Curragh mine tenements, or the
Tenement Lien, at the Queensland Government level and a third-priority lien on substantially all of the Company's
assets. The Tenement Lien operates independently of, and is not subordinated to, the Company's other secured
debt obligations, and no third party may acquire the Curragh mine tenements without simultaneously assuming
the coal supply obligations to Stanwell.
If a change of control of the Company is proposed within two years of November 27, 2025, the Company must
obtain Stanwell’s consent and, before the change of control occurs, pay Stanwell the waived rebate amounts,
together with contractual interest from the dates such amounts would otherwise have been payable. Additionall
y,
if an entity that controlled the Company as at November 27, 2025 ceases to control the Company by way of
disposal of an interest in the Company of 20% or more without Stanwell’s consent within two years of November
27, 2025, then the Company must immediately pay Stanwell the waived rebate amounts, together with interest.
As of March 31, 2026, cumulative rebate amounts of $23.6 million would have been payable absent the waiver.
No liability was recognized as of March 31, 2026 in respect of the waived rebate amounts because the Company
had not been required to seek Stanwell’s consent in connection with any proposed change or cessation of control
as of that date.
Refer to Part I, Item 1, Note 11. “Stanwell Liabilities” for further information.
Loan – Curragh Housing Transaction
In 2024, the Company completed the Curragh Housing Transaction. The proceeds received of $23.0 million
(A$34.6 million) for the failed sale and leaseback of property, plant and equipment owned by the Company were
recognized as “Other Financial Liabilities” on the Company’s Consolidated Balance Sheets.
Coronado Global Resources Inc.
In connection with the Curragh Housing Transaction, the Company borrowed $26.9 million (A$40.4 million) from
the same counterparty, which was recorded as “Interest Bearing Liabilities” in the Consolidated Balance Sheets.
The Other Financial Liabilities and Interest Bearing Liabilities recorded in connection with the Curragh Housing
Transaction are payable in equal monthly installments over a period of ten years, with an effective interest rate
of 14.14%.
Refer to Part I, Item 1. Note 10. “Interest Bearing Liabilities” and Note 12. “Other Financial Liabilities” for further
information.
Finance leases
The Company enters into various finance lease agreements in the ordinary course of business. Our total finance
lease commitments were $25.1 million as at March 31, 2026. The terms of the outstanding lease agreements
mature through August 2029 and bear fixed interest rates ranging from 8.6% to 14.0%.
Surety bonds, letters of credit and bank guarantees
We are required to provide financial assurances and securities to satisfy contractual and other requirements in
the normal course of business. Some of these assurances are provided to comply with state or other government
agencies’ statutes and regulations.
For the U.S. Operations, in order to provide the required financial assurance for post mining reclamation, we
generally use surety bonds. We also use surety bonds and bank letters of credit to collateralize certain other
obligations including contractual obligations under workers’ compensation insurance. As of March 31, 2026, we
had outstanding surety bonds of $20.1 million and outstanding bank guarantees of $10.0 million.
For the Australian Operations, as at March 31, 2026, we had bank guarantees outstanding of $36.6 million
primarily in respect of certain rail and port take-or-pay arrangements of the Company.
As at March 31, 2026, we had in aggregate total outstanding bank guarantees of $46.6 million to secure our
obligations and commitments.
Future regulatory changes relating to these obligations or deterioration of our credit risk rating could result in
increased obligations, additional costs or additional collateral requirements.
Restricted deposits – cash collateral
As required by certain agreements, we had total cash collateral in the form of deposits of $144.4 million as of
March 31, 2026 to provide back-to-back support for bank guarantees, financial payments, other performance
obligations, various other operating agreements and contractual obligations under workers compensation
insurance. These deposits are restricted and classified as non-current assets in the unaudited Condensed
Consolidated Balance Sheets.
Future regulatory changes in relation to these obligations or deterioration of our credit risk rating could result in
increased obligations, additional costs or additional collateral requirements.
Dividends
Our dividend policy and the payment of future cash dividends are subject to the discretion of our Board of
Directors. The decision as to whether or not a dividend will be paid is subject to a number of considerations
including the general business environment, operating results, cash flows, future capital requirements, regulatory
and contractual restrictions, as well as applicable covenants under the debt and other agreements and any other
factors the Board of Directors may consider relevant.
The Second Amendment Deed entered with Stanwell includes restrictions on our ability to pay distributions to
shareholders (e.g., a dividend), such that we are required to maintain a minimum cash liquidity of $300.0 million
following payment of such distribution, the repurchase of the Notes in connection with the distribution and the
payment of an equal or greater amount (up to a maximum of 3 times) than the distribution being used to reduce
the Prepayment and Deferred Payment Balance owed to Stanwell.
Capital Requirements
Our main uses of cash have historically been the funding of our operations, working capital, capital expenditures,
and the payment of interest and dividends. We intend to use cash to fund debt service payments of our Notes,
the ABL Facility and our other indebtedness to fund operating activities, working capital, capital expenditures,
including organic growth projects, business or assets acquisitions and, if declared, payment of dividends.
Coronado Global Resources Inc.
Historical Cash Flows
The following table summarizes our cash flows for the three months ended March 31, 2026 and 2025, as reported
in the accompanying consolidated financial statements:
Three months ended
March 31,
(in US$ thousands)
2026
2025
Net cash used in operating activities
$
(40,944)
$
(37,265)
Net cash used in investing activities
(35,030)
(70,919)
Net cash from (used in) financing activities
23,554
(1,544)
Net change in cash and cash equivalents
(52,420)
(109,728)
Effect of exchange rate changes on cash and cash equivalents
425
(195)
Cash and cash equivalents at beginning of period
173,032
339,625
Cash and cash equivalents at end of period
$
121,037
$
229,702
Operating Activities
Net cash used in operating activities was $40.9 million for the three months ended March 31, 2026, an increase
of $3.7 million compared to $37.3 million used during the three months ended March 31, 2025. The increase was
primarily driven by EBITDA loss of $16.5 million higher for the three months ended March 31, 2026, partially
offset by higher customer collection and a tax refund of $3.8 million.
Investing Activities
Net cash used in investing activities was $35.0 million
for the three months ended March 31, 2026, compared to
$70.9 million for the three months ended March 31, 2025, and largely consisted of cash spent on capital
expenditures of $34.1 million, of which $13.3 million relate d to the Australian Operations and $20.8 million was
related to our U.S. Operations. Lower capital expenditure for the three months ended March 31, 2026, was
primarily due to the completion of our Mammoth and Buchanan expansion projects during 2025.
Financing activities
Net cash from financing activities was $23.6 million for the three months ended March 31, 2026. Included in net
cash provided by financing activities were proceeds of $26.2 million relating to advance payments from Stanwell
in connection with the Second Amendment Deed, partially offset by repayment of interest bearing and other
financial liabilities of $0.8 million and repayment of finance lease obligations of $1.8 million.
Contractual Obligations
There were no material changes to the Company’s contractual obligations as previously disclosed in our Annual
Report on Form 10-K for the year ended December 31, 2025, filed with the SEC and ASX on March 3, 2026.
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, 2025,
filed with the SEC and ASX on March 3, 2026.
Newly Adopted Accounting Standards and Accounting Standards Not Yet Implemented
See Note 2. (a) “Newly Adopted Accounting Standards” and Note 2. (b) “Accounting Standards Not Yet
Implemented” to our unaudited condensed consolidated financial statements for further information.
Coronado Global Resources Inc.
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
Our activities expose us to a variety of financial risks, such as commodity price risk, interest rate risk, foreign
currency risk, liquidity risk and credit risk. The overall risk management objective is to minimize potential adverse
effects on our financial performance from those risks which are not coal price related.
We manage financial risk through policies and procedures approved by our Board of Directors. These specify
the responsibility of the Board of Directors and management with regard to the management of financial risk.
Financial risks are managed centrally by our finance team under the direction of the Group Chief Financial Officer.
The finance team manages risk exposures primarily through delegated authority limits approved by the Board of
Directors. The finance team regularly monitors our exposure to these financial risks and reports to management
and the Board of Directors on a regular basis. Policies are reviewed at least annually and amended where
appropriate.
We may use derivative financial instruments such as forward fixed price commodity contracts, interest rate swaps
and foreign exchange rate contracts to hedge certain risk exposures. Derivatives for speculative purposes is
strictly prohibited by the Treasury Risk Management Policy approved by our Board of Directors. We use different
methods to measure the extent to which we are exposed to various financial risks. These methods include
sensitivity analysis in the case of interest rates, foreign exchange and other price risks and aging analysis for
credit risk.
Commodity Price Risk
Coal Price Risk
We are exposed to domestic and global coal prices. Our principal philosophy is that hedging coal prices would
not 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 a
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 and could have a material adverse
effect on our financial condition and results of operations.
Access to international markets may be subject to ongoing interruptions and trade barriers due to policies and
tariffs of individual countries. We may or may not be able to access alternate markets for our coal should
interruptions or trade barriers occur in the future. The inability of Met coal suppliers to access international
markets would likely result in an oversupply of Met coal and may result in a decrease in prices or the curtailment
of production.
We manage our commodity price risk for our non-trading, thermal coal sales through the use of long-term coal
supply agreements in our U.S. Operations. In Australia, thermal coal is sold to Stanwell under a long-term supply
contract. See Item 1A. “Risk Factors—Restrictions and limitations related to our coal supply agreements with
Stanwell may adversely impact our strategy, financial condition, results of operations and business” in our Annual
Report on Form 10-K filed with the SEC and ASX on March 3, 2026.
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, 2026, we had $21.7
million of outstanding provisionally priced receiva bles subject to changes in the relevant price index. If prices
decreased 10%, these provisionally priced receivables would decrease by $2.2 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 March 3, 2026.
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. See Part II, Item 1A. “Risk Factors—Our business may be materially and adversely
affected by the impact on the global economy due to, among other events, significant geopolitical tensions,
including ongoing civil unrest or wars, or pandemics” in this Quarterly Report on Form 10-Q.
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.
Coronado Global Resources Inc.
The fuel required for our operations for the remainder of fiscal year 2026 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 budget and ensuring that changes in interest rates will not have a material impact
on our financial performance.
As of March 31, 2026, we had $1,141.0 million of fixed rate borrowings, Notes, other financial liabilities, Stanwell
liabilities and finance leases and no variable-rate borrowings outstanding.
We currently do not hedge against interest rate fluctuations.
Foreign Exchange Risk
A significant portion of our sales are denominated in US$. Foreign exchange risk is the risk that our earnings or
cash flows are adversely impacted by movements in exchange rates of currencies that are not in US$.
Our main exposure is to the A$-US$ exchange rate through our Australian Operations, which have predominantly
A$ denominated costs. Greater than 80% of expenses incurred at our Australian Operations are denominated in
A$. Approximately 20% of our Australian Operations’ purchases are made with reference to US$, which provides
a natural hedge against foreign exchange movements on these purchases (including fuel, several port handling
charges, demurrage, purchased coal and some insurance premiums). Appreciation of the A$ against US$ will
increase our Australian Operations’ US$ reported cost base and reduce US$ reported net income.
We entered into forward exchange contracts to manage the foreign currency exposure of our Australian
Operations by selling US$ generated from export coal sales revenue at Curragh and purchasing A$ required to
settle Curragh’s A$ operating costs. The fair value of the forward foreign currency derivative contracts as of
March 31, 2026 was a liability of $0.1 million.
For our Australian Operations, we translate all monetary assets and liabilities at the period end exchange rate,
all non-monetary assets and liabilities at historical rates and revenue and expenses at the average exchange
rates in effect during the periods. The net effect of these translation adjustments is shown in the accompanying
Consolidated Financial Statements within components of net income.
For the unhedged portion of US$ required to purchase A$ to settle our Australian Operations’ operating costs, a
10% increase in the A$ to US$ exchange rate would have increased reported total costs and expenses by
approximately $31.2 million for the three months ended March 31, 2026.
Credit Risk
Credit risk is the risk of sustaining a financial loss as a result of a counterparty not meeting its obligations under
a financial instrument or customer contract.
We are exposed to credit risk when we have financial derivatives, cash deposits, lines of credit, letters of credit
or bank guarantees in place with financial institutions.
To
mitigate against credit risk from financial counterparties,
we have minimum credit rating requirements with financial institutions where we transact.
We are also exposed to counterparty credit risk arising from our operating activities, primarily from trade
receivables. Customers who wish to trade on credit terms are subject to credit verification procedures, including
an assessment of their independent credit rating, financial position, past experience and industry reputation. We
monitor the financial performance of counterparties on a routine basis to ensure credit thresholds are achieved.
Where required, we will request additional credit support, such as letters of credit, to mitigate against credit risk.
Credit risk is monitored regularly, and performance reports are provided to our management and Board of
Directors.
As of March 31, 2026, we had financial assets of $484.3 million, consisting of cash and cash equivalents, trade
and other receivables and restricted deposits, all of which are exposed to varied levels of counterparty credit risk.
These financial assets have been assessed under ASC 326,
Financial Instruments – Credit Losses
, and a
provision for credit losses of $5.3 million was recorded as of March 31, 2026.
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 Interim 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 Interim 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 Interim 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 18. “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, 2025, filed with the SEC
and ASX on March 3, 2026.
Our business may be materially and adversely affected by the impact on the global economy due to,
among other events, significant geopolitical tensions, including ongoing civil unrest or wars.
Geopolitical tensions, including ongoing civil unrest and wars, and global pandemics or widespread public health
concerns can have a significant impact on global markets, including influencing both the supply of and demand
for coal we sell into the export market and the cost or availability of supplies we consume in producing our coal.
For example, global markets continue to experience volatility and disruptions as a result of the military invasion
of Ukraine by Russia. This military conflict has led to ongoing sanctions and other penalties being levied by the
United States, the European Union and other countries against Russia, including expansive bans on imports and
exports of products to and from Russia.
In addition, recent armed conflicts in the Middle East, including conflict involving the United States, Israel, and
Iran, has increased instability in global energy, shipping and financial markets.
The conflict in the Middle East has had significant impact on global trade and energy and financial markets.
Disruptions to maritime traffic through the Strait of Hormuz, through which approximately 20% of the global
seaborne oil trade transits have contributed to higher and more volatile crude oil prices, has increased the cost
of diesel fuel required for our operation and may continue to do so. A prolonged conflict could further increase
diesel fuel prices and adversely affect the availability of diesel fuel needed for our operations, which could
negatively impact our business and results of operations.
The extent and duration of such conflicts could lead to further political and social instability, instability in the
financial markets, supply chain interruptions, market disruptions, including continued volatility in commodity
prices, such as the prices of the coal we sell and diesel fuel we purchase, and higher inflation, which could cause
a material adverse impact to our results of operations, financial condition and cash flows.
ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
None.
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
None.
ITEM 4. MINE SAFETY DISCLOSURES
Safety is the cornerstone of the Company’s values and is the number one priority for all employees at Coronado
Global Resources Inc.
Our U.S. Operations include multiple mining complexes across three states and are regulated by both the U.S.
Mine Safety and Health Administration, or MSHA, and state regulatory agencies. Under regulations mandated
by the Federal Mine Safety and Health Act of 1977, or the Mine Act, MSHA inspects our U.S. mines on a regular
basis and issues various citations and orders when it believes a violation has occurred under the Mine Act.
In accordance with Section 1503(a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act and
Item 104 of Regulation S-K (17 CFR 229.104), each operator of a coal or other mine in the United States is
required to report certain mine safety results in its periodic reports filed with the SEC under the Exchange Act.
Coronado Global Resources Inc.
Information pertaining to mine safety matters is included in Exhibit 95.1 attached to this Quarterly Report on
Form 10-Q. The disclosures reflect the United States mining operations only, as these requirements do not apply
to our mines operated outside the United States.
ITEM 5. OTHER INFORMATION
During the quarter ended March 31, 2026, 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
10.3
10.4
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 11, 2026