Coronado Global Resources (ASX:CRN) management used its full-year results call to emphasize what Chief Executive Officer Douglas Thompson described as a “year of execution” in FY2025, marked by second-half record production, material cost reductions, and completion of major growth projects that the company believes position it for stronger profitability and cash generation in FY2026.
FY2025 operational progress and completed projects
Thompson said the company delivered major projects on time and on budget and highlighted a broader “transformation journey” across the portfolio. He pointed to the company’s metallurgical coal footprint and long-life assets as providing leverage to steel demand, particularly in India, supported by a diversified customer base across five continents.
On productivity and cost-out initiatives, Thompson said the company has been executing the One Curragh Plan and the U.S. Uplift Program since 2022, driving productivity gains and “structural cost out.” He cited approximately $100 million of cost savings from fleet reductions in 2024 and a further $160 million of mining cost reductions in 2025. He also noted dragline productivity improvements, with draglines moving above 50% of total waste movements, and said U.S. skip capacity increased by 45%, “liberating” the two longwall mines underground.
Financial and liquidity discussion: Stanwell reset and balance sheet flexibility
Group CFO Barrie van der Merwe said FY2025 reflected the benefits of work done over the last couple of years, including half-on-half improvements in production costs and capital spending. At Curragh, he said cost reductions and improved mining productivity shifted the bottleneck toward processing plants, while the operation’s inherent financial risk reduced materially.
A central theme of the call was the revised Stanwell arrangement at Curragh. Van der Merwe said the new structure lowers the cost base by ceasing the export rebate (which otherwise would have ended in early 2027) and provides coal prepayment facilities when cash balances are below $250 million. He described the arrangement as offering downside protection in weaker markets while maintaining leverage to higher coal prices.
Van der Merwe provided additional mechanics of the Stanwell structure, including that when cash is above $250 million, Stanwell remains entitled to legacy discounts, and when cash is above $300 million, Coronado provides “free coal” until prepayments are repaid or cash falls back below $300 million. In return for liquidity support, he said Stanwell has rights to longer and more flexible nominations and has become a major senior lender alongside the company’s noteholders via an asset-based lending facility.
On liquidity, van der Merwe said the company ended December 2025 with $173 million of cash and did not pull working capital levers at year-end. He added that Coronado has about $100 million of additional liquidity levers that could accelerate cash flow by six to eight weeks to manage working capital needs through a planned low-production March quarter. He said that “as of yesterday,” the cash balance was almost the same as at year-end.
Van der Merwe also noted there are no near-term debt maturities and no maintenance covenants in the notes. He said the Stanwell ABL includes no EBITDA covenants until 2028. He highlighted that the company’s notes traded up from a low of about 63% in May 2025 to around 95% in February 2026, which he said evidenced improved credit quality. He also said the Financial Provisioning Scheme confirmed no requirement for Coronado to provide surety and stated the financial statements were prepared on a going concern basis, unlike prior periods where going concern uncertainty had been disclosed.
FY2026 outlook and guidance
Thompson said the company’s near-term focus is strengthening liquidity and de-leveraging through disciplined cash generation, while retaining the optionality to advance growth projects when appropriate. He issued FY2026 guidance as follows:
- Saleable production: 16 million to 17 million tonnes
- Mine cash costs per saleable tonne: $88 to $96 per tonne
- Capital expenditure: $150 million to $175 million
Thompson said the guidance range reflects the uplift from Mammoth Underground and the Buchanan expansion, offset by about 2 million tonnes from Logan reductions. During Q&A, management clarified that the production guidance incorporates the impact of an “unfortunate incident” at Mammoth earlier in the year, which Thompson said was roughly one month of production, and also factors in severe weather impacts at Curragh following a cyclone.
Van der Merwe said FY2026 capital spending is expected to fall back toward sustaining levels after the recent expansions, with a “normal sustaining CapEx range of around $150 million” for installed capacity. He added the company is concentrating cost control on major spend categories, including contractor costs at Curragh, and is re-tendering certain mining services contracts to improve its cost position.
Project pipeline: Mammoth 2 and longer-term options
Management outlined a pipeline including additional Mammoth phases, a Buchanan CHPP capacity expansion, and Curragh extensions. Thompson described Mammoth 2 as a pre-execution underground bord-and-pillar expansion targeting first coal in 2028, with capital investment around $150 million and an expected payback of roughly two years. He said costs are expected to be in the second quartile and that coal quality remains strong, while the degas program is progressing with encouraging signs for productivity.
In Q&A, Thompson said the company has already received approvals that extend beyond Phase 1 to include Phase 2 and Phase 3 and framed Curragh’s longer-term evolution as maintaining productive dragline-led open-cut volumes while increasingly using underground mining to manage rising stripping ratios and provide flexibility. Van der Merwe said the company views around $300 million of liquidity as a key comfort level aligned with the Stanwell structure, with potential to consider capital allocation to projects at higher liquidity levels (he referenced around $400 million, with adequate tenure), while noting the board retains discretion.
Logan decision and leadership transition
Management discussed Logan in the context of U.S. market conditions. Thompson said the company issued WARN notices, indicating a decision to idle, and that production in guidance reflects mining to meet contracted obligations. He said contracted deliveries are expected to be honored predominantly in the first six months of the year, with some shipments possibly extending later for Canadian volumes. He also said management is exploring alternatives for Logan, including potential monetization, but no decisions have been made.
Separately, van der Merwe noted Thompson is expected to leave in the coming months, and Thompson said both he and founder Jeff (referenced during Q&A as transitioning toward retirement) are stepping back as part of a planned leadership transition. Thompson told investors the strategic direction should remain intact and said the company’s management team and chairman provide continuity as a successor process runs.
About Coronado Global Resources (ASX:CRN)
Coronado Global Resources Inc, together with its subsidiaries, produces, markets, and exports metallurgical coal in Asia, North America, South America, Europe, Australia, and internationally. The company owns 100% interests in the Curragh mining property located in the Bowen Basin of Australia; and the Buchanan and the Logan property, and the Greenbrier property, as well as development mining properties comprising the Mon Valley and the Russell County properties primarily located in the Central Appalachian region of the United States.
