August 27, 2026 - Coronado Global Resources Inc. Shs Chess Depository Interests Repr 10 Sh ((AU:CRN)) has held its Q2 earnings call.

Coronado Global Resources’ latest earnings call struck a cautious but constructive tone as management pointed to a clear Q2 operational rebound while conceding that the group is still burning cash and grappling with elevated costs and operational setbacks. The message to investors was that the reset is gaining traction, but meaningful work remains before the business can consistently generate free cash flow.

Q2 operational rebound and EBITDA recovery

Saleable production jumped about 39% from Q1 to Q2 and adjusted EBITDA swung roughly USD 96 million higher quarter-on-quarter, returning to positive territory. Management framed this as early proof that the reset program and better execution are translating into tangible operating momentum.

Buchanan’s expanded longwall platform

Buchanan is now operating as a stable, longwall low-vol met coal hub with an enlarged production base of around 4.5 million tonnes per year. The mine delivered record ROM volumes in Q2, positioning it as a core earnings engine expected to generate returns through the cycle.

Record CHPP uptime supports throughput

Both Buchanan and Curragh recorded their best-ever CHPP operating hours in Q2, reflecting a sharper focus on maintenance and reliability. These gains in plant availability are critical because processing capacity, rather than mining, is currently the main constraint on saleable tonnes.

Cash flow improves but remains negative

Free cash flow improved by about USD 70 million versus the prior corresponding period, with outflows narrowing from USD 159 million to USD 89 million. The improvement was driven by better realized prices, removal of the Stanwell rebate and lower capex, although it still left the business cash negative for the half.

Liquidity boosted by cash and prepayments

Coronado ended the half with USD 98 million of cash on hand and has secured up to USD 75 million in Glencore offtake prepayments on a 12?month facility. On a pro forma basis, this lifts liquidity to around USD 133 million, giving the company a short-term buffer as it executes its operational reset.

Capital discipline and capex tapering

Completion of the Buchanan growth program has sharply reduced capital expenditure requirements, providing timely relief to the balance sheet. Lower capex alone contributed roughly USD 89 million of the approximately USD 180 million favorable swing in cash flows over the period.

Tier 1 assets and structural demand drivers

Management underscored the strategic value of its long-life, well-permitted Tier 1 assets at Curragh and Buchanan and their attractive metallurgical coal qualities. With growing steel-related demand in markets such as India, the company continues to target through-cycle EBITDA of around USD 425 million per year.

Logan sale removes a persistent cash drag

The completed sale of Logan eliminates a significant source of negative cash flow and exposure to volatile thermal coal markets. Logan had contributed roughly USD 30 million of losses in the first half, so its exit should enhance second-half earnings potential and reduce earnings volatility.

Business still not cash generative

Despite progress, management was explicit that the group is not yet cash generative, given the USD 89 million free cash outflow. Investors were reminded that sustained cost reductions, operational stability and better price realization are still required to convert the operational rebound into durable cash generation.

Unit costs remain elevated year-on-year

First-half unit costs were roughly 13% higher than the previous year, reflecting multiple pressures across the portfolio. Q2 mining cash cost was USD 98 per tonne and would have been about USD 91 per tonne at prior-year FX rates, underscoring how currency movements alone inflated reported costs.

H1 EBITDA dampened by weak Q1

On a half-year basis, adjusted EBITDA was around USD 9 million weaker than the prior corresponding period despite the strong Q2. Management cited severe Q1 weather impacts and planned downtime that weighed on volumes and productivity and continued to echo through first-half results.

Inflation, diesel and FX squeeze margins

The company absorbed about USD 74 million of extra costs from inflation, higher diesel prices and FX shifts during the period. These macro headwinds materially tightened margins and offset some of the benefits from stronger pricing and operational recovery.

Curragh’s reset and near-term disruption

Curragh has underperformed its potential for several years, prompting a comprehensive reset of the mine plan, CHPP strategy and inventory buffers. Management warned that this transformation will bring short-term cost and operational disruption but is essential to unlock Curragh’s long-term value.

Mammoth fatality slows underground ramp-up

A fatality at Mammoth dealt a serious human and operational blow, significantly delaying the ramp-up of the new underground asset. As a result, management now expects Mammoth to produce closer to 1.8 million tonnes this year versus the earlier 2.0 million tonne ambition, deferring margin contribution.

Inventory build and timing-related cash drag

Export saleable inventory reached 780,000 tonnes at 30 June due to port congestion and co-shipment delays. This timing mismatch created an estimated USD 39 million temporary cash impact, with revenue effectively pushed into July rather than realized within the half.

Financing costs and covenant constraints

The Glencore prepayment facility comes with a steep effective interest cost of about 14% and is unsecured, adding to Coronado’s roughly USD 700 million total debt load. In addition, long-dated Stanwell nomination rights on thermal tonnes limit Curragh’s operational flexibility until the 2040s and interact with future covenant settings.

Guidance and outlook anchored in cautious execution

Management reaffirmed total product guidance of 16–17 million tonnes but indicated it will likely mine volumes closer to the level needed for 16 million tonnes, avoiding loss-making thermal tonnes while plants remain the bottleneck. They expect Buchanan to run at roughly 4.5 Mtpa and Mammoth to ramp toward 1.8–2.0 Mt, while targeting through-cycle EBITDA of about USD 425 million and working down inventories within a tightened but manageable liquidity framework.

Coronado’s earnings call painted a picture of a miner moving in the right direction but still in the middle of a demanding reset. Q2’s production and EBITDA rebound, stronger liquidity and streamlined asset base offer solid building blocks, yet elevated costs, operational disruptions and a leveraged balance sheet leave little room for missteps as management works toward sustainable cash generation.