Coronado Global Resources (CRN) Q2 2025 earnings summary

Executive summary

• Achieved a six-year record in ROM production for the June quarter, with a 20% quarter-on-quarter increase to 7.0 Mt, despite weather disruptions, mine idling, and planned shutdowns for growth projects.

• Expansion projects at Mammoth and Buchanan completed and now in production, expected to materially increase returns and deliver a step change in production at lower costs in H2 2025.

• Cost reductions have been realized, with mining costs per ton sold below guidance and prior periods, and $32 million in cost savings delivered in the quarter.

• Liquidity improved to $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.

• Mining cost per ton sold reduced by 18% to $92, at the bottom end of guidance.

• Group realised met coal price was $148.4/t, down from $151.3/t in the prior quarter and $199.3/t year-over-year.

• Capital expenditure was $84 million for the quarter and $204 million for H1 2025, with major project spending completed in H1.

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

Outlook and guidance

• Material volume increases expected in H2 as Mammoth and Buchanan ramp up to full capacity, anticipated to materially increase earnings and cash flow.

• Annual incremental run rate of approximately 3 million tons from expansion projects anticipated in H2.

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

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

• Reset of Stanwell obligations from early 2027 expected to deliver ~$150 million per year increase in cash flow at current thermal coal prices.