Coronado Global Resources (CRN) Q1 2025 earnings summary

Executive summary

• Achieved solid operational performance in a challenging met coal market, with production on plan despite weather disruptions in both Australia and the U.S.

• Significant cost reductions realized, with further cost-out initiatives underway, including idling high-cost operations and rephasing capital expenditure.

• Growth projects at Mammoth and Buchanan are on schedule, expected to drive material volume increases and lower costs in the second half of the year.

• Liquidity optimization is a key focus, with restructuring or replacement of the ABL facility and ongoing discussions with lenders and government for improved cash flow flexibility.

• Long-term agreements secured with Tata Steel for over 2Mt of Met Coal per year through 2028.

Financial highlights

• Group ROM production was 5.8 million tons, sellable production 3.5 million tons, and sales volumes 3.4 million tons for Q1.

• March quarter total revenue was $449M, down 19.4% sequentially and 32.8% year-over-year, mainly due to a 40% drop in benchmark coal prices.

• Mining costs were $76 million lower year-over-year, a 10% improvement per ton sold; group mining costs per tonne sold decreased to $112.8 from $125.6 year-over-year.

• At quarter-end, total liquidity was $325 million, comprising $229 million in cash and $96 million under the ABL.

• Net debt increased to $194.9M from $85.1M at 31 December 2024, reflecting working capital and investment in growth projects.

Outlook and guidance

• Production rates are expected to increase in the remainder of the year as expansion projects ramp up, while cost base will decline due to restructuring.

• Mammoth is expected to exit the year at a 1.5–2 million ton run rate; Buchanan expansion at around 1 million tons.

• CapEx for the full year is on track to be within guidance, with most expansion spending now behind and further cost and capital reductions of up to $100M targeted for the remainder of FY25.

• Met Coal prices expected to improve in H2 2025 as global steel production recovers and supply rationalises.

• Timing impacts on sales volumes in Q1 expected to be recovered in Q2.