Coronado Global Resources (CRN) Q2 2025 earnings summary

Executive summary

• Achieved best monthly ROM production since July 2019, with a 20% quarter-on-quarter increase to 7.0 Mt and significant cost reductions, despite weather disruptions, mine idling, and planned shutdowns for growth projects.

• Expansion projects at Mammoth and Buchanan completed on time and on budget, both now producing coal and expected to materially increase returns and lower costs in H2 2025.

• Liquidity initiatives and cost-saving measures delivered $32 million in the quarter, with immediately available liquidity at $284 million at quarter-end, supported by new ABL Facility and Stanwell transaction.

• Strategic focus remains on efficient operations, cash protection, and readiness for market recovery.

Financial highlights

• Group ROM production reached 7 million tons, up 20% year-over-year, with Australia up 41% to 3.4 Mt and USA up 5.1% to 3.6 Mt.

• Average mining cost per ton sold dropped 18% quarter-on-quarter to $92, at the lower end of guidance; Australia at $80.6/t, USA at $109.6/t.

• Group realised met coal price was $148.4/t in Q2 2025, down from $151.3/t in Q1 and $199.3/t year-over-year.

• Net cash flows increased by $32 million in the June quarter, with inflows from ABL Facility and Stanwell prepayment/rebate deferral.

• Capital expenditure was $84 million for the quarter and $204 million for H1 2025; full-year forecast is ~$230 million.

Outlook and guidance

• Production ramp-up from Mammoth and Buchanan expected to materially increase earnings and cash flow in H2 2025, with annual incremental run rate of approximately 3 million tons.

• Cost and capital reductions of up to $50 million anticipated for the remainder of FY25.

• CapEx to decrease in H2, with further cost savings expected.

• Reset of Stanwell obligations from early 2027 projected to add ~$150 million per year in cash flow at current prices.

• Confident in positive returns at current prices for H2, supported by production profile.