UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
___________________________________________________
FORM
10-Q
___________________________________________________
(Mark One)
☒
QUARTERLYREPORT PURSUANT TO SECTION 13OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the quarterly period ended
March 31, 2026
OR
☐
TRANSITION REPORT PURSUANT TOSECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the transition period fromto
Commission File Number:
1-16247
___________________________________________________
Coronado Global Resources Inc.
(Exact name of registrant as specified in its charter)
___________________________________________________
Delaware
83-1780608
(State or other jurisdiction of
incorporation or organization)
(I.R.S. Employer
Identification No.)
Level 33, Central Plaza One
,
345 Queen Street
Brisbane, Queensland
,
Australia
4000
(Address of principal executive offices)
(Zip Code)
(
61
)
7
3031 7777
(Registrant’s telephone number, including area code)
N/A
(Former name, former address and former fiscal year, if changed since last report)
___________________________________________________
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading Symbol(s)
Name of each exchange on which registered
None
None
None
Indicate by checkmark whether theregistrant (1) has filedall reports requiredto be filedby Section 13 or15(d) of theSecurities Exchange
Act of 1934 duringthe preceding 12 months(or for such shorterperiod that the registrantwas required to filesuch reports), and (2) has
been subject to such filing requirements for the past 90 days.
Yes
☒
No
☐
Indicate by check mark whetherthe registrant has submitted electronicallyevery Interactive Data File required tobe submitted pursuant
to Rule 405of Regulation S-T(§232.405 of thischapter) during thepreceding 12 months(or for suchshorter period thatthe registrant
was required to submit such files).
Yes
☒
No
☐
Indicate by check mark whether the registrantis a large accelerated filer,an accelerated filer, a non-acceleratedfiler, a smaller reporting
company,oranemerginggrowthcompany.Seethedefinitionsof“largeacceleratedfiler,”“acceleratedfiler,”“smallerreporting
company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer
☐
Accelerated filer
☒
Non-accelerated filer
☐
Smaller reporting company
☒
Emerging growth company
☐
If an emerginggrowth company, indicate bycheck mark ifthe registrant haselected not touse the extendedtransition period forcomplying
with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).Yes
☐
No
☒
The registrant’scommon stock ispublicly traded onthe Australian SecuritiesExchange in theform of CHESSDepositary Interests, or
CDIs, convertible at the option ofthe holders into shares of theregistrant’s common stock on a 10-for-1 basis.The total number of shares
of the registrant's common stock, par value $0.01 per share, outstanding on April 30, 2026, includingshares of common stock underlying
CDIs, was
167,645,373
.
Steel starts
here.
Quarterly Report on Form 10-Q for the quarterly periodended March 31, 2026.
TABLE OF CONTENTS
Page
4
5
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43
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47
Coronado Global Resources Inc.
Form 10-Q March 31, 20264
PART I – FINANCIAL INFORMATION
ITEM 1.FINANCIAL STATEMENTS
Condensed Consolidated Balance Sheets
(In US$ thousands, except share data)
Assets
Note
(Unaudited)
March 31, 2026
December 31,
2025
Current assets:
Cash and cash equivalents
$
121,037
$
173,032
Trade receivables, net
204,216
250,921
Inventories
5
163,405
195,165
Other current assets
6
88,133
87,678
Totalcurrent assets
576,791
706,796
Non-current assets:
Property, plant and equipment,net
7
1,491,377
1,654,455
Right of use asset – operating leases, net
9
81,480
86,481
Restricted deposits
18
144,419
141,696
Goodwill
28,008
28,008
Intangible assets, net
2,659
2,708
Other non-current assets
5,440
5,411
Totalassets
$
2,330,174
$
2,625,555
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable
$
125,073
$
89,178
Accrued expenses and other current liabilities
8
201,529
276,032
Asset retirement obligations
11,168
10,978
Contract obligations
21,035
22,445
Lease liabilities
9
35,427
34,300
Interest bearing liabilities
10
1,764
1,671
Income tax payable
21,407
21,024
Other current financial liabilities
12
1,571
1,424
Totalcurrent liabilities
418,974
457,052
Non-current liabilities:
Asset retirement obligations
148,004
143,388
Lease liabilities
9
78,027
83,866
Interest bearing liabilities
10
691,707
684,989
Contract obligations
18,782
21,173
Stanwell liabilities
11
562,961
501,795
Other financial liabilities
12
18,913
18,888
Deferred income tax liabilities
11,482
23,249
Other non-current liabilities
55,469
41,409
Totalliabilities
$
2,004,319
$
1,975,809
Common stock $
0.01
par value;
1,000,000,000
shares authorized,
167,645,373
shares issued and outstanding as of March 31, 2026 and
December 31, 2025
1,677
1,677
Series A Preferred stock $
0.01
par value;
100,000,000
shares
authorized,
1
Share issued and outstanding as of March 31, 2026 and
December 31, 2025
—
—
Additional paid-in capital
1,090,070
1,094,743
Accumulated other comprehensive losses
16
(121,072)
(120,444)
Accumulated losses
(644,820)
(326,230)
Totalstockholders’ equity
$
325,855
$
649,746
Totalliabilities and stockholders’ equity
$
2,330,174
$
2,625,555
See accompanying notes to unaudited condensedconsolidated financial statements.
Coronado Global Resources Inc.
Form 10-Q March 31, 20265
Unaudited Condensed Consolidated Statements ofOperations and Comprehensive Income
(In US$ thousands, except share data)
Three months ended
March 31,
Note
2026
2025
Revenues:
Coal revenues
$
460,491
$
441,451
Other revenues
6,701
7,797
Totalrevenues
3
467,192
449,248
Costs and expenses:
Cost of coal revenues (exclusive of items shown separatelybelow)
443,902
390,291
Depreciation, depletion and amortization
43,337
40,521
Freight expenses
85,723
60,188
Stanwell rebate
—
21,853
Other royalties
30,348
41,353
Selling, general, and administrative expenses
4,630
8,333
Totalcosts and expenses
607,940
562,539
Other (expense) income:
Interest expense, net
(33,752)
(17,898)
Impairment of assets
4
(159,755)
—
Decrease (increase) in provision for credit losses
127
(630)
Other, net
4,006
(2,213)
Totalother expense, net
(189,374)
(20,741)
Loss before tax
(330,122)
(134,032)
Income tax benefit
11,532
37,834
Net loss attributable to Coronado Global Resources Inc.
$
(318,590)
$
(96,198)
Other comprehensive loss, net of income taxes:
Foreign currency translation adjustments
1,911
2,826
Net loss on cash flow hedges
(2,539)
—
Totalcomprehensive (loss) income
(628)
2,826
Totalcomprehensive loss attributable to Coronado GlobalResources
Inc.
$
(319,218)
$
(93,372)
Loss per share of common stock
Basic
14
(1.90)
(0.57)
Diluted
14
(1.90)
(0.57)
See accompanying notes to unaudited condensedconsolidated financial statements.
Coronado Global Resources Inc.
Form 10-Q March 31, 20266
Unaudited Condensed Consolidated Statements ofStockholders’ Equity
(In US$ thousands, except share data)
Common stock
Preferred stock
Additional
Accumulated other
Total
paid in
comprehensive
Accumulated
stockholders
Shares
Amount
Series A
Amount
capital
losses
losses
equity
Balance December 31, 2025
167,645,373
$
1,677
1
$
—
$
1,094,743
$
(120,444)
$
(326,230)
$
649,746
Net loss
—
—
—
—
—
—
(318,590)
(318,590)
Other comprehensive loss
—
—
—
—
—
(628)
—
(628)
Totalcomprehensive loss
—
—
—
—
—
(628)
(318,590)
(319,218)
Share-based compensation for equity
classified awards
—
—
—
—
(4,673)
—
—
(4,673)
Balance March 31, 2026
167,645,373
$
1,677
1
$
—
$
1,090,070
$
(121,072)
$
(644,820)
$
325,855
Common stock
Preferred stock
Additional
Accumulated other
Total
paid in
comprehensive
Retained
stockholders
Shares
Amount
Series A
Amount
capital
losses
earnings
equity
Balance December 31, 2024
167,645,373
$
1,677
1
$
—
$
1,094,560
$
(137,560)
$
114,208
$
1,072,885
Net loss
—
—
—
—
—
—
(96,198)
(96,198)
Other comprehensive income
—
—
—
—
—
2,826
—
2,826
Totalcomprehensive income (loss)
—
—
—
—
—
2,826
(96,198)
(93,372)
Share-based compensation for equity
classified awards
—
—
—
—
(1,188)
—
—
(1,188)
Dividends
—
—
—
—
—
—
(8,382)
(8,382)
Balance March 31, 2025
167,645,373
$
1,677
1
$
—
$
1,093,372
$
(134,734)
$
9,628
$
969,943
See accompanying notes to unaudited condensedconsolidated financial statements.
Coronado Global Resources Inc.
Form 10-Q March 31, 20267
Unaudited Condensed Consolidated Statements ofCash Flows
(In US$ thousands)
Three months ended
March 31,
2026
2025
Cash flows from operating activities:
Net loss
$
(318,590)
$
(96,198)
Adjustments to reconcile net income to cash and restricted cashprovided by
operating activities:
Depreciation, depletion and amortization
43,337
40,521
Impairment of assets
159,755
—
Amortization of right of use asset - operating leases
7,069
6,048
Amortization of deferred financing costs
108
865
Non-cash interest expense
16,369
8,797
Amortization of contract obligations
(4,435)
(6,307)
Loss on disposal of property,plant and equipment
1,192
329
Loss on disposal of idled asset
—
2,239
Equity-based compensation expense
(4,673)
(1,188)
Deferred income taxes
(11,823)
(36,817)
Reclamation of asset retirement obligations
(760)
(1,158)
(Decrease) increase in provision for discounting and creditlosses
(127)
630
Other non-cash adjustments
4,573
798
Changes in operating assets and liabilities:
Accounts receivable
32,653
44,696
Inventories
33,530
21,874
Other assets
8,405
2,688
Accounts payable
36,737
13,628
Accrued expenses and other current liabilities
(50,666)
(34,881)
Operating lease liabilities
(6,859)
(5,564)
Income tax payable
(1,044)
(553)
Change in other liabilities
14,305
2,288
Net cash used in operating activities
(40,944)
(37,265)
Cash flows from investing activities:
Capital expenditures
(34,072)
(72,058)
Proceeds from disposal of idle asset
1,267
1,464
Purchase of restricted and other deposits
(2,225)
(325)
Net cash used in investing activities
(35,030)
(70,919)
Cash flows from financing activities:
Proceeds from interest bearing liabilities and other financialliabilities
26,192
—
Principal payments on interest bearing liabilities and other financialliabilities
(847)
(1,384)
Principal payments on finance lease obligations
(1,791)
(160)
Net cash from (used in) financing activities
23,554
(1,544)
Net decrease in cash and cash equivalents
(52,420)
(109,728)
Effect of exchange rate changes on cash and cashequivalents
425
(195)
Cash and cash equivalents at beginning of period
173,032
339,625
Cash and cash equivalents at end of period
$
121,037
$
229,702
Supplemental disclosure of cash flow information:
Cash payments for interest
$
27,889
$
20,491
Cash (refund) paid for taxes
$
(3,834)
$
75
Restricted cash
$
251
$
252
See accompanying notes to unaudited condensedconsolidated financial statements.
Coronado Global Resources Inc.
Form 10-Q March 31, 20268
NOTES TO UNAUDITED CONDENSED CONSOLIDATEDFINANCIAL STATEMENTS
1.Description of Business, Basis of Presentation
(a)
Description of the Business
CoronadoGlobalResourcesInc.isaglobalproducer,marketer,andexporterofafullrangeofmetallurgical
coals,anessentialelementintheproductionofsteel.TheCompanyhasaportfolioofoperatingminesand
development projects inQueensland, Australia, andin the states ofPennsylvania, Virginia andWest Virginiain
the United States, or U.S.
(b)
Basis of Presentation
The interim unaudited condensed consolidated financial statementshave been prepared in accordance with the
requirements of U.S. generally acceptedaccounting principles, or U.S. GAAP,and with the instructions to Form
10-QandArticle10of RegulationS-XrelatedtointerimfinancialreportingissuedbytheU.S.Securitiesand
Exchange Commission, or the SEC.Accordingly, they do not include all ofthe information and footnotes required
by U.S. GAAP for complete financial statements and should be readin conjunction with the audited consolidated
financialstatementsandnotestheretoincludedintheCompany’sAnnualReporton Form10-K filedwiththe
SEC and the Australian Securities Exchange, or the ASX, onMarch 3, 2026.
TheinterimunauditedcondensedconsolidatedfinancialstatementsarepresentedinU.S.dollars,unless
otherwisestated.TheyincludetheaccountsofCoronadoGlobalResourcesInc.anditswholly-owned
subsidiaries.Referencesto“US$”or“USD”arereferencestoU.S.dollars.Referencesto“A$”or“AUD”are
referencestoAustraliandollars,thelawfulcurrencyoftheCommonwealthofAustralia.The“Company”and
“Coronado”areusedinterchangeablytorefertoCoronadoGlobalResourcesInc.anditssubsidiaries,
collectively, or to Coronado Global Resources Inc., asappropriate to the context.All intercompany balances and
transactions have been eliminated upon consolidation.
Intheopinionofmanagement,theseinterimfinancialstatementsreflectallnormal,recurringadjustments
necessaryforthefairpresentationoftheCompany’sfinancialposition,resultsofoperations,comprehensive
income, cash flows and changes inequityfor the periods presented. Balance sheet informationpresented herein
as of December 31,2025 has been derived fromthe Company’s audited consolidated balance sheet atthat date.
The Company’s resultsof operations forthe three monthsended March 31,2026 are notnecessarily indicative
of the results that may be expected for the year endingDecember 31, 2026.
(c)
Going Concern
TheseCondensedConsolidatedFinancialStatementshavebeenpreparedonagoingconcernbasis,which
contemplates the realization of assets and discharge of liabilitiesin the ordinary course of business.
TheCompany’searningsandcashflowsfromoperatingactivitieshavebeensignificantlyimpactedbywet
weather and operational issues.For the three months endedMarch 31, 2026, the Companyincurred net losses
of $
318.6
million.
As of March 31,2026, the Companyhad cash and cashequivalents of $
121.0
million and netcurrent assets of
$
157.8
million. The decline in cash during the quarter ended March 31, 2026was consistent with the Company’s
expectations, reflecting seasonal wet weather impactson production at the Company’s Australian Operations.
With respectto theCompany’sfinancialposition,theCompanyhas concludedthat itscurrentcashandcash
equivalents and forecasted cashflows will besufficient to fund itsoperations and satisfy itsobligations for at least
one year from the issuance of these financial statements.
Managementcontinuestoexploreinitiativestopreserveliquidity,enhanceflexibilityandfinancialresilience
against events outside management’s control. These initiatives are reasonably within management’s control and
actionable in the near future as needed.
TheCompany’sforecastsaresubjecttotheachievementofproductiontargets,andotherfactorsbeyondits
control,includinggeneraleconomicconditions,metallurgicalcoalpricing,competitivedynamicsandweather-
related impacts.The Company’sworking capitalrequirements inthe shortto mediumterm arealso dependent
on variations in these factors and the preparation of forecastsrequires management’s judgement.
NOTES TO UNAUDITED CONDENSED CONSOLIDATEDFINANCIAL STATEMENTS(Continued)
Coronado Global Resources Inc.
Form 10-Q March 31, 20269
2.Summary of Significant Accounting Policies
Please see Note 2 “Summaryof Significant Accounting Policies”contained in the auditedconsolidated financial
statements for the year ended December 31, 2025 included in Coronado Global Resources Inc.’s Annual Report
on Form 10-K filed with the SEC and ASX on March3, 2026.
(a) Newly Adopted Accounting Standards
Duringtheperiod,therehasbeennonewAccountingStandardsUpdate,orASU,issuedbytheFinancial
Accounting Standards Board,or the FASB,that had a materialimpact on the Company’sconsolidated financial
statements.
(b) Accounting Standards Not YetImplemented
ASUNo.“2024-03-“IncomeStatement–ReportingComprehensiveIncome–ExpenseDisaggregation
Disclosures” (Subtopic220-40)
: Disaggregationof IncomeStatement Expenses.In November2024, theFASB
issuedASU2024-03,whichrequiresdisclosure,inthenotestofinancialstatements,ofspecifiedinformation
about certaincosts andexpenses. Theamendments aimto improvefinancial reportingby requiringthat public
businessentitiesdiscloseadditionalinformationaboutspecificexpensecategoriesinthenotestofinancial
statements at interimand annual reportingperiods. The updatedstandard is effectivefor annual reportingperiods
beginningafterDecember15,2026,andinterimreportingperiodsbeginningafterDecember15,2027.Early
adoption is permitted. The Company is currently evaluating the impact that the updated standardwill have on its
financial statement disclosures.
ASUNo.“2025-11-InterimReporting(Topic270
):
Narrow-ScopeImprovements”
.InDecember2025,FASB
issuedASU2025-11toclarifyinterimfinancialreportingguidanceunderTopic270.Theamendmentsaimto
maketheinterimreportingrequirementseasiertonavigateandapply.Theamendmentsdonotchangethe
substanceofexistinginterimreportingrequirementsbutreorganizeandclarifywhenandhowtheguidance
applies.Theamendmentsalsointroduceanewdisclosureprinciplerequiringentitiestodiscloseeventsand
changes occurring since the end ofthe last annual reporting period that havea material impact on theentity. The
updated standard willbe effectivefor annual periodsbeginning after December15, 2027, andinterim reporting
periods within those annualreporting periods. The Companyis currently evaluating theimpact that the updated
standard will have on its financial statement disclosures.
There have beenno other recentaccounting pronouncementsnot yet effectivethat have significance,or potential
significance, to the Company’s consolidated financialstatements.
3.Segment Information
The Company has a portfolio of operatingmines and development projects inQueensland, Australia, and in the
states ofPennsylvania,Virginiaand WestVirginiain theU.S. TheAustralian Operationscomprise the
100
%-
owned Curragh producingmine complex. TheU.S. Operations comprisea
100
%-owned producing minecomplex
(Buchanan), a
100
%-owned idle mine complex (Logan) and a developmentproperty (Mon Valley).
The Company operates itsbusiness along
two
reportable segments: Australiaand the U.S. Theorganization of
the
two
reportable segments reflectshow Coronado’s InterimChief Executive Officer, who isthe Company’s chief
operatingdecisionmaker,orCODM,managesandallocatesresourcestothevariouscomponentsofthe
Company’s business.
The CODMuses AdjustedEBITDA asthe primarymetric tomeasure eachsegment’soperating performance.
Adjusted EBITDA is nota measure offinancial performance calculated in accordance withU.S. GAAP. Investors,
analysts,lendersandratingagenciesshouldbeawarethattheCompany’spresentationofAdjustedEBITDA
may not be comparable to similarly titled financial measuresused by other companies.
Adjusted EBITDA isdefined as earningsbefore interest, taxes,depreciation, depletion andamortization and other
foreign exchange losses. Adjusted EBITDA isalso adjusted for certain discrete items thatmanagement exclude
in analyzing eachof theCompany’s segments’ operating performance.“Other and corporate”relates to additional
financial information forthecorporate function,such as financialreporting and accounting, treasury, legal, human
resources, compliance,and tax.As such, thecorporate functionis not determinedto bea reportable segment
but isdiscretely disclosedfor purposesof reconciliationto theCompany’sunaudited CondensedConsolidated
Financial Statements.
NOTES TO UNAUDITED CONDENSED CONSOLIDATEDFINANCIAL STATEMENTS(Continued)
Coronado Global Resources Inc.
Form 10-Q March 31, 202610
Reportable segment results asof and forthe three months endedMarch 31, 2026and 2025 arepresented below:
(in US$ thousands)
Australia
United States
Other and
Corporate
Total
Three months ended March 31, 2026
Totalrevenues
$
259,088
$
208,104
$
—
$
467,192
Less:
Mining cash costs
(1)
(253,890)
(146,857)
—
(400,747)
Other operating costs
(1)
(101,076)
(58,150)
—
(159,226)
Totaloperating costs
(354,966)
(205,007)
—
(559,973)
Other and unallocated costs
(2)
9,305
(1,260)
(4,614)
3,431
Segment adjusted EBITDA
(86,573)
1,837
(4,614)
(89,350)
Totalassets
1,310,835
924,809
94,530
2,330,174
Capital expenditures
10,922
9,021
—
19,943
Three months ended March 31, 2025
Totalrevenues
$
273,277
$
175,971
$
—
$
449,248
Less:
Mining cash costs
(1)
(198,204)
(158,492)
—
(356,696)
Other operating costs
(1)
(140,163)
(16,826)
—
(156,989)
Totaloperating costs
(338,367)
(175,318)
—
(513,685)
Other and unallocated costs
(2)
246
(275)
(8,350)
(8,379)
Segment adjusted EBITDA
(64,844)
378
(8,350)
(72,816)
Totalassets
1,185,488
1,068,579
154,742
2,408,809
Capital expenditures
49,736
67,947
2,365
120,048
(1)
The significant expense category andamount aligns with the segment-levelinformation that is regularly providedto the CODM and excludesDepreciation,
Depletion and Amortization.
(2)
Other and unallocated items for other and corporate includesselling, general and administrative expenses.
The reconciliationsof Consolidated AdjustedEBITDA to netloss attributable tothe Company forthe threemonths
ended March 31, 2026 and 2025 are as follows:
Three months ended
March 31,
(in US$ thousands)
2026
2025
Consolidated Adjusted EBITDA
$
(89,350)
$
(72,816)
Depreciation, depletion and amortization
(43,337)
(40,521)
Interest expense, net
(1)
(33,752)
(17,898)
Other foreign exchange losses
(2)
(4,055)
(332)
Impairment of assets
(159,755)
—
Losses on idled assets
(3)
—
(1,835)
Decrease (increase) in provision for credit losses
127
(630)
Net loss before tax
(330,122)
(134,032)
Income tax benefit
11,532
37,834
Net loss
$
(318,590)
$
(96,198)
(1)
Includes interest incomeof $
2.1
million and $
3.2
million for thethree months endedMarch 31, 2026and 2025, respectively.
(2)
The balance primarily relates toforeign exchange gains and lossesrecognized in the translation ofshort-term inter-entity
balancesincertainentitieswithinthegroupthataredenominatedincurrenciesotherthantheirrespectivefunctional
currencies.These gainsand lossesare includedin “Other,net”onthe unauditedCondensedConsolidatedStatement of
Operations and Comprehensive Income.
NOTES TO UNAUDITED CONDENSED CONSOLIDATEDFINANCIAL STATEMENTS(Continued)
Coronado Global Resources Inc.
Form 10-Q March 31, 202611
(3)
Relates to loss on disposal and care and maintenance costs of a non-core idled asset that was sold on January 14, 2025.
ThereconciliationsofcapitalexpenditurespertheCompany’ssegmentinformationtocapitalexpenditures
disclosedontheunauditedCondensedConsolidatedStatementsofCashFlowsforthethreemonthsended
March 31, 2026 and 2025 are as follows:
Three months ended March 31,
(in US$ thousands)
2026
2025
Capital expenditures per unaudited Condensed ConsolidatedStatements
of Cash Flows
$
34,072
$
72,058
Net movement in accruals for capital expenditures
(7,442)
19,538
Capital acquired through finance leases
—
9,725
Net movement in deposits to acquire long lead capital
(6,687)
18,727
Capital expenditures per segment detail
$
19,943
$
120,048
Disaggregation of Revenue
The Company disaggregates the revenuefrom contracts with customers bymajor product group for each ofthe
Company’sreportablesegments,astheCompanybelievesitbestdepictsthenature,amount,timingand
uncertainty of revenues and cash flows.All revenue is recognized at a point in time.
Three months ended March 31, 2026
(in US$ thousands)
Australia
United States
Total
Product Groups:
Metallurgical coal
$
209,992
$
198,281
$
408,273
Thermal coal
42,414
9,804
52,218
Totalcoal revenue
252,406
208,085
460,491
Other
(1)
6,682
19
6,701
Total
$
259,088
$
208,104
$
467,192
Three months ended March 31, 2025
(in US$ thousands)
Australia
United States
Total
Product Groups:
Metallurgical coal
$
250,065
$
171,437
$
421,502
Thermal coal
15,959
3,990
19,949
Totalcoal revenue
266,024
175,427
441,451
Other
(1)
7,253
544
7,797
Total
$
273,277
$
175,971
$
449,248
(1) Other revenue for the Australian segment includesthe amortization of the Stanwell non-market coalsupply contract obligation liability.
4. Impairment of assets
OnMarch27,2026,managementidledoperationsattheLoganminecomplexwithintheCompany’sU.S.
Operations in response to sustained weaknessin the U.S. domestic Met coalmarkets. The idling representeda
triggeringeventunderAccountingStandardsCodification,orASC,360–
Property,PlantandEquipment
,
requiring the Company to assessthe recoverability of the relevantasset groups. The Company determinedthat
the estimated undiscounted pre-tax future cash flows of the Logan asset group did not exceed its carrying value.
Accordingly,the Companymeasured thefair valueof theasset groupand recordedan impairmentchargeof
$
159.8
million against long-livedassets, including property, plant andequipment, to writedown the carryingvalue
of the asset group to its estimatedfair value. The impairment charge isincluded in “Impairment of assets”in the
accompanyingunauditedCondensedConsolidatedStatements ofOperationsand ComprehensiveIncomefor
the three months ended March 31, 2026.
NOTES TO UNAUDITED CONDENSED CONSOLIDATEDFINANCIAL STATEMENTS(Continued)
Coronado Global Resources Inc.
Form 10-Q March 31, 202612
The estimated fair value was determined using Level 3 inputs such as indicative offers, comparable transactions
and estimates of future cashflows based on a combination of historical results adjusted to reflect the Company’s
best estimateof futuremarket andoperating conditions,including themine’s lifeof mineplan. Thelife ofmine
plan includes assumptionsin relation to futurecoal prices, projectedmine production volumes,operating costs,
capital costs and discount rate.
5.Inventories
(in US$ thousands)
March 31,
2026
December 31,
2025
Raw coal
$
27,820
$
35,006
Saleable coal
52,984
80,174
Totalcoal inventories
80,804
115,180
Supplies and other inventory
82,601
79,985
Totalinventories
$
163,405
$
195,165
Coal inventories measured attheir net realizable value were$
37.4
million
and $
41.2
million as at March31, 2026
and December 31, 2025, respectively,and form part of total coal inventories.
6. Other Assets
(in US$ thousands)
March 31,
2026
December 31,
2025
Other current assets
Prepayments
$
34,486
$
43,797
Long service leave receivable
7,641
7,560
Deposits to acquire capital items
17,468
10,781
Derivative assets (refer to Note 15. Derivatives and FairValue Measurement)
—
2,523
Stanwell receivable
11,762
—
Other
16,776
23,017
Totalother current assets
$
88,133
$
87,678
7.Property, Plant andEquipment
(in US$ thousands)
March 31,
2026
December 31,
2025
Land
$
29,301
$
29,008
Buildings and improvements
141,699
138,771
Plant, machinery, miningequipment and transportation vehicles
1,543,353
1,516,095
Mineral rights and reserves
370,393
370,393
Office and computer equipment
20,442
20,063
Mine development
708,119
694,779
Asset retirement obligation asset
80,502
79,094
Construction in process
105,754
103,011
Totalcost of property,plant and equipment
2,999,563
2,951,214
Less accumulated depreciation, depletion, amortizationand impairment
1,508,186
1,296,759
Property, plant andequipment, net
$
1,491,377
$
1,654,455
NOTES TO UNAUDITED CONDENSED CONSOLIDATEDFINANCIAL STATEMENTS(Continued)
Coronado Global Resources Inc.
Form 10-Q March 31, 202613
8.Accrued Expenses and Other Current Liabilities
Accrued expenses and other current liabilities consist of thefollowing:
(in US$ thousands)
March 31,
2026
December 31,
2025
Wages and employee benefits
$
46,023
$
42,652
Taxesother than income taxes
8,177
6,440
Accrued royalties
8,634
37,818
Accrued freight costs
38,806
40,964
Accrued mining fees
99,834
132,754
Other liabilities
55
15,404
Totalaccrued expenses and other current liabilities
$
201,529
$
276,032
9.Leases
Information related to the Company’s right-of-useassets and related lease liabilities are as follows:
Three months ended
(in US$ thousands)
March 31, 2026
March 31, 2025
Operating lease costs
$
9,180
$
8,317
Cash paid for operating lease liabilities
6,859
5,564
Finance lease costs:
Amortization of right-of-use assets
1,068
133
Interest on lease liabilities
680
38
Totalfinance lease costs
$
1,748
$
171
(in US$ thousands)
March 31,
2026
December 31,
2025
Assets
Operating leases:
Operating lease right-of-use assets
$
81,480
$
86,481
Finance leases:
Property and equipment
36,954
36,133
Accumulated depreciation
(4,060)
(2,721)
Property and equipment, net
32,894
33,412
Liabilities
Current operating lease obligations
27,205
26,348
Operating lease liabilities, less current portion
61,165
66,493
TotalOperating lease liabilities
88,370
92,841
Current finance lease obligations
8,222
7,952
Finance lease liabilities, less current portion
16,862
17,373
TotalFinance lease liabilities
25,084
25,325
Current lease obligation
35,427
34,300
Non-current lease obligation
78,027
83,866
TotalLease liability
$
113,454
$
118,166
NOTES TO UNAUDITED CONDENSED CONSOLIDATEDFINANCIAL STATEMENTS(Continued)
Coronado Global Resources Inc.
Form 10-Q March 31, 202614
March 31,
2026
December 31,
2025
Weighted Average RemainingLease Term (Years)
Weighted average remaining lease term – financeleases
3.0
3.2
Weighted average remaining lease term – operatingleases
3.1
3.3
Weighted Average DiscountRate
Weighted discount rate – finance lease
10.8%
10.8%
Weighted discount rate – operating lease
9.5%
9.5%
The Company’soperatingand financeleases haveremaininglease termsof
one year
to
four years
, someof
which include options to extend the terms where the Companydeems it is reasonably certain the options will be
exercised. Maturities of lease liabilities as at March 31,2026, are as follows:
(in US$ thousands)
Operating
Lease
Finance
Lease
Year endingDecember 31,
2026
$
25,902
$
8,094
2027
32,937
9,158
2028
29,406
8,517
2029
13,461
3,476
Totallease payments
101,706
29,245
Less imputed interest
(13,336)
(4,161)
Totallease liability
$
88,370
$
25,084
10.Interest Bearing Liabilities
The following is a summary of interest-bearing liabilitiesas at March 31, 2026:
(in US$ thousands)
March 31, 2026
December 31, 2025
Weighted Average
Interest Rate at
March 31, 2026
Final
Maturity
9.250
% Senior Secured Notes
$
400,000
$
400,000
9.99
%
(2)
2029
ABL Facility
278,295
272,115
9
.00%
2030
Loan - Curragh Housing Transaction
24,860
24,748
14.14
%
(2)
2034
Debt issuance costs
(1)
(9,684)
(10,203)
Totalinterest bearing liabilities
693,471
686,660
Less: current portion
(1,764)
(1,671)
Non-current interest-bearing liabilities
$
691,707
$
684,989
(1)
Relates to debt issuance costs in connection withthe Notes and Curragh Housing Transaction (each as definedbelow) loan. Deferred
debt issuance costs incurred in connection withthe establishment of the ABL Facility (as definedbelow) have been included within "Other
non-current assets" in the unaudited Condensed ConsolidatedBalance Sheets.
(2)
Represents the effective interest rate. The effective interestis higher than the implied interest rate asit incorporates the effect of debt
issuance costs and discount, where applicable.
9.250% Senior Secured Notes due in 2029
As ofMarch31,2026, theaggregateoutstandingprincipalamountof the
9.250
% SeniorSecuredNotesdue
2029, or the Notes, was $
400.0
million.
The Notes were issued at par and bearinterest at a rate of
9.250
% per annum. Interest on the Notesis payable
semi-annually in arrears on April 1 and October 1 of each year, which began on April 1, 2025. The Notes mature
on October 1, 2029 and are senior secured obligationsof the Issuer.
NOTES TO UNAUDITED CONDENSED CONSOLIDATEDFINANCIAL STATEMENTS(Continued)
Coronado Global Resources Inc.
Form 10-Q March 31, 202615
The termsof theNotes aregovernedby anindenture,or theIndenture,datedas ofOctober2, 2024,among
CoronadoFinancePtyLtd,asissuer,ortheIssuer,CoronadoGlobalResourcesInc.,asguarantor,the
subsidiariesofCoronadoGlobalResourcesInc.namedthereinasadditionalguarantors(collectivelywith
Coronado GlobalResources Inc.,the Guarantors),and WilmingtonTrust,National Association,as trusteeand
priority liencollateral trustee.The Indenturecontains customarycovenants forhigh yieldbonds, including,but
notlimitedto,limitationsoninvestments,liens,indebtedness,assetsales,transactionswithaffiliatesand
restricted payments, including payment of dividends oncapital stock.
The Notes are guaranteed on asenior secured basis by the Company and certain ofthe Company’s subsidiaries
that guarantee,or are aborrower,under the Company’sABL Facility orcertain otherdebt and securedby (i) a
first-priority lienon substantially allof theassets of theIssuer andeach Guarantor (otherthan accounts receivable
andcertainotherrightstopayment,inventory,certaininvestmentproperty,certaingeneralintangiblesand
commercial tortclaims, depositaccounts, securitiesaccounts andother relatedassets, chattelpaper,letter of
creditrights,certaininsuranceproceeds,intercompanyindebtednessandcertainotherassetsrelatedtothe
foregoing andproceeds andproducts ofeach ofthe foregoing,or collectively,the ABLPriority Collateral)and
(ii) a second-prioritylien on theABL Priority Collateral,which is juniorto a first-prioritylien for thebenefit of the
lenders and other creditors underthe Company’s asset-based revolving credit facility, dated as ofJune 18, 2025,
subject to certain exceptions and permitted liens.
Upon theoccurrence ofa “Changeof ControlTriggeringEvent”, definedin theIndenture asthe occurrenceof
ChangeofControlandRatingDecline(eachasdefinedintheIndenture),theIssuerisrequiredtoofferto
repurchase theNotes at
101
% ofthe aggregateprincipal amountthereof, plusaccrued andunpaid interest,if
any,to, butexcluding, therepurchase date.The Issueralso hasthe rightto redeemthe Notesat
101
% ofthe
aggregate principalamount thereof,plus accruedand unpaidinterest, ifany,to, butexcluding, therepurchase
date, following the occurrence ofa Change of ControlTriggering Event, provided that the Issuerredeems at least
90
% of the Notes outstanding priorto such Change of ControlTriggering Event. Uponthe occurrence of certain
changes in tax law (as described in the Indenture), the Issuer may redeem all of the Notes at a redemption price
equal to
100
% of the principal amountof the Notes to be redeemedplus accrued and unpaid interest,if any,to,
but excluding, the redemption date.
TheIndenturecontainscustomaryeventsofdefault,includingfailuretomakerequiredpayments,failureto
comply with certain agreementsor covenants, failure topay or acceleration ofcertain other indebtedness, certain
events ofbankruptcy andinsolvency, and failure topay certainjudgments. Anevent ofdefault underthe Indenture
will allow either thetrustee or the holdersof at least
25
% in aggregate principalamount of the then-outstanding
Notestoaccelerate,orincertaincases,willautomaticallycauseaccelerationof,theamountsdueunderthe
Notes.
As of March 31, 2026, the Company was in compliance with allapplicable covenants under the Indenture.
The carrying valueof debt issuancecosts, recorded asa deduction ofthe Notes, was$
8.7
million and $
9.2
million
at March 31, 2026 and December 31, 2025, respectively.
Asset Based Revolving Credit Facility
OnNovember27,2025,ortheAmendmentDate,theCompany,CoronadoFinancePtyLtd,anAustralian
proprietary company anda wholly ownedsubsidiary of theCompany,Coronado Curragh PtyLtd, an Australian
proprietary company and wholly owned subsidiary of the Company (together with CoronadoFinance Pty Ltd, the
Borrowers), and the other guarantors party thereto, collectively with theCompany, the Guarantors, and, together
withtheCompanyandtheBorrowers,theObligors,enteredintoanasset-basedlendingfacility,ortheABL
Facility,foraninitialaggregateprincipalamountof $
265.0
million(A$
406.6
million)withGlobalLoanAgency
Services AustraliaPty Ltd,as theAdministrative Agent,Global LoanAgency ServicesAustralia NomineesPty
Ltd, as Collateral Agent, and Stanwell Corporation Limited,or Stanwell, as Lender.
The ABL Facility isa revolving credit facilitythat matures in
five years
. Availability under theABL Facility is limited
to an eligibleborrowing base,determined byapplying customaryadvance ratesto eligible accountsreceivable
and inventory.Borrowings underthe ABL Facilitybear interestat a rateof
9
% per annum,which may increase
to
12
% per annum depending on the level of theBorrowing Base Ratio.
As ofMarch 31,2026, theaggregate principal amountoutstanding ofthe ABLFacility was $
278.3
million (A$
406.6
million), including$
13.3
million offoreign currency losson translationto U.S.dollars, beingthe functionalcurrency
of Coronado Finance Pty Ltd.
NOTES TO UNAUDITED CONDENSED CONSOLIDATEDFINANCIAL STATEMENTS(Continued)
Coronado Global Resources Inc.
Form 10-Q March 31, 202616
Amounts outstandingunder theABL Facilityare securedby (i)a first-prioritylien inthe ABLPriority Collateral,
and (ii) a second-priority lien on substantially all of theCompany’s assets and the assets of the guarantors, other
than the ABL Priority Collateral.
TheABLFacilitycontainscustomaryrepresentationsandwarrantiesandaffirmativeandnegativecovenants
including, among others, a quarterly BorrowingBase Ratio test and, from December 31,2027, the maintenance
of a gearing ratio and interest coverage ratio.
TheABL Facilityprovidesfor customaryeventsofdefaultthatmaytriggercertainrepaymentobligationsand
review events. A review event willoccur under the ABL Facility ifthe Borrowing Base Ratio is belowthe specified
minimum threshold of
80
%. Following the occurrenceof a review event, the Borrowersmust promptly meet and
consultingood faithwiththeAdministrativeAgentandtheLendertodeterminewhethertheBorrowingBase
Ratio onthenext testingdatewillbeabovethespecifiedminimumthreshold.If,at theendofa periodof
10
business days afterthe occurrence ofthe review event,the Lender isnot satisfied withthe resultof itsdiscussions
withtheBorrowers,theLendermayrequiretheBorrowerstorepayoutstandingborrowingsinanaggregate
amount sufficient to restore the Borrowing Base Ratioto the specified minimum threshold.
In the event of adefault by the Borrowers (beyond any applicablegrace or cure period, if any),the Administrative
Agent may and,at the directionof the Lendershall, declare allamounts owing under theABL Facility immediately
due and payable, terminate the Lender’s commitmentto make loans under the ABLFacility and/or exercise any
and all remedies and other rights under the ABL Facility.
In connection with the entry into the ABLFacility, the Company also entered into amendments to its existing coal
supply agreements with Stanwell. Refer to Note 11.“Stanwell Liabilities” for further information.
The carrying value ofdebt issuance costs,recorded as “Othernon-current assets” inthe Consolidated Balance
Sheets,was$
0.9
millionand$
1.0
million,asofMarch31,2026andMarch31,2025,respectively,andis
amortized ratably over the term of the ABL Facility.
Loan – Curragh Housing Transaction
OnMay16,2024,theCompanycompletedanagreementforaccommodationservicesandthesaleand
leasebackofhousingandaccommodationassetswitharegionalinfrastructureandaccommodationservice
provider, or collectively, the CurraghHousing Transaction. Referto Note12. “OtherFinancial Liabilities”for further
information.
In connection with the Curragh Housing Transaction, theCompany borrowed $
26.9
million (A$
40.4
million) from
the sameregionalinfrastructureand accommodationservice provider.This amountwas recordedas “Interest
Bearing Liabilities” in the unaudited Condensed Consolidated Balance Sheets. The amount borrowed is payable
in equal monthlyinstallments overa periodof
ten years
from commencement,with aneffective interestrate of
14.14
%. The Curragh Housing Transactionloan is not subject to any financial covenants.
The carrying value of theloan, net of issuance costs of$
1.0
million, was $
23.8
million as of March 31, 2026,$
1.8
million of which is classified as a current liability.
11.Stanwell Liabilities
(in US$ thousands)
March 31, 2026
December 31,
2025
Stanwell Reserved Area deferred consideration
$
365,493
$
346,768
Stanwell Prepaid coal supply liability
171,638
155,027
Stanwell Prepayment and deferred payment
25,830
—
$
562,961
$
501,795
NOTES TO UNAUDITED CONDENSED CONSOLIDATEDFINANCIAL STATEMENTS(Continued)
Coronado Global Resources Inc.
Form 10-Q March 31, 202617
Stanwell deferred consideration liability
On August 14, 2018, the Company completed the acquisition of rights to mine in the Stanwell Reserved Area, or
theSRA,adjacenttothecurrentCurraghminingtenements.Theserightswereacquiredonadeferred
considerationbasis,andonacquisitiontheCompanyrecognizeda “Mineralrightsand reserves”assetanda
corresponding deferred consideration liability of$
155.2
million (A$
210.0
million), calculated using thecontractual
pre-tax discount rate of
13
%, which represented the fair value of the arrangement at the date of acquisition.The
deferred consideration liability reflects the passageof time by way of an annual accretionat the contractual pre-
tax discount rateof
13
% and willbe settled asa discount tothe price ofthermal coal suppliedto Stanwell over
the term of aNew Coal Supply Agreement which is expectedto commence in the first halfof 2027. The accretion
of the deferred consideration liability is recognized within “Interest expense, net” in the Condensed Consolidated
StatementsofOperationsandComprehensiveIncome.Theright-to-mine-assetisamortizedoverthecoal
reserves mined from the SRA.
Stanwell – Prepaid Coal Supply Liability
On June 10, 2025, the Company andStanwell entered into a deed of amendment,or the First Amendment, and
amended theNew CoalSupply Agreementdated July12, 2019,or theNCSA, andthe AmendedCoal Supply
Agreement,ortheACSA,wherebyStanwellprovidednear-termliquiditytotheCompanyinexchangeforthe
supply of additional tonnage of thermal coal under theNCSA.
The First Amendmentincluded a prepaymentfor thermal coaland a rebate waiverand deferral fromApril 2025
to December2025, bothof whichwill be settledthrough reductionof the grossproceeds tobe receivedon the
physical delivery of thermal coal to Stanwell,expected to commence in the firsthalf of 2027, or theNCSA Supply
Commencement Date, ofup to
0.8
MMt per annumover
five years
, or untilsuch time thatthe obligation isfully
settled. This prepaid coal supply liability bears interestat
13
% per annum.
As of March31, 2026, thecarrying value ofthe Stanwellprepaid coal supplyliability,including the prepayment
and the rebate waiver and deferral liability,was $
171.6
million (A$
250.7
million).
For thethree monthsended March31, 2026,the Companyrecognized interestexpense of$
5.2
million (A$
7.5
million) related to the financing component of the prepaidcoal supply liability.
Prepayment and Deferred Payment Balance
On November 27,2025, the Companyand Stanwell enteredinto a seconddeed of amendment,or the Second
Amendment Deed,that, among other matters, amended the terms of the ACSAand the NCSA, by providing for:
●
a waiver ofrebate amountsotherwise payable bythe Company underthe ACSA fromJanuary 1, 2026
until thefinal delivery date,being theday before theNCSA Supply Commencement Date(refer tochange
of control provisions in relation to waiver discussed below);
●
a deferral of the Company’s obligationsto deliver certain values of coal to Stanwell forprepaid amounts
under the FirstAmendment andamounts towhich Stanwellis otherwiseentitled inrelation tothe SRA
deferred consideration, or the Deferred Amounts;
●
prepaymentsbyStanwelltotheCompanyinrelationtoits futureannualnominatedcontracttonnage
under theACSA and theNCSA equal tothe difference betweenthe current contractedprices under these
arrangements and anagreed, fixed priceroughly equivalentto market pricesat the timeof the Second
AmendmentDeed,ortheACSAPrepaymentsandtheNCSAPrepayments.Stanwell’sobligationto
maketheACSAPrepaymentsandNCSAPrepaymentsaresubjecttocertainliquiditytests.More
specifically, Stanwell (i) willadvance all ofthe relevant prepaymentwhen the Company’smonthly liquidity
isbelow$
200.0
million,(ii)willadvanceonlyhalfoftherelevantprepaymentinmonthswhenthe
Company’s liquidityis between $
200.0
million and $
250.0
million, and (iii)will not beobligated to make
prepayments when the Company’s monthly liquidityis above $
250.0
million; and
●
an extensionof theNCSA termfrom 2037to 2043and anoption forStanwell tomake broaderannual
nominations ranging from
1.2
MMt to
2.24
MMt per year under the NCSA.
NOTES TO UNAUDITED CONDENSED CONSOLIDATEDFINANCIAL STATEMENTS(Continued)
Coronado Global Resources Inc.
Form 10-Q March 31, 202618
ThevalueoftheACSAPrepayments,NCSAPrepaymentsandDeferredAmounts,orthePrepaymentand
Deferred PaymentBalance, willbe settledthrough deliveryof coalto Stanwellduring theterm ofthe NCSAin
months whenthe Company’sliquidity exceeds$
300.0
million. Inaddition, theCompany mayfrom timeto time
makeadditionalpaymentstoreducethePrepaymentandDeferredPaymentBalance,includingwhenthe
Company makes permitted distributions toshareholders. Where the Prepayment andDeferred Payment Balance
remains outstandingafter thefinal deliverydate pursuantto theNCSA (December31, 2043),the outstanding
balance will be settled incash in months whenthe Company’s liquidity exceeds$
300.0
million until the balance
is fully repaid.
ThePrepaymentandDeferredPaymentBalanceisclassifiedasafinancialliability.Theliabilityisinitially
measuredattheamountofproceedsreceivedfromStanwellandbearsaninterestat
7.5
%perannum.The
contractual interest rate of
7.5
% is deemed consistentwith a market rateat inception after consideringthe overall
terms, security and settlement features of thearrangement and, accordingly, the proceeds received approximate
fair value atinception. Interest accrues at
7.5
% per annumon the outstanding balanceusing the effective interest
rate method andis recognized as“interest expense,net” in theunaudited CondensedConsolidated Statement
of Operations and Comprehensive Income.
During the termof the NCSA, thetotal Prepayment andDeferred Payment Balance,including accrued interest,
is capped at
120
% of theaggregate outstandingprincipal balance.After the finaldelivery date underthe terms
of the NCSA, whichis scheduled for December 31,2043, interest continues to accrueat
7.5
% per annum without
a cap until the balance is fully repaid.
The interest cap represents assistance provided by Stanwell, a Queensland Government-owned corporation. As
such, the Company accountsfor the interest cap as governmentassistance under its accountingpolicy election
based on analogy to other accounting standard frameworks and consistent with expectedfuture changes to U.S.
GAAP.No benefit is recognized unless and until the interestcap is reached.
Attheendofeachreportingperiod,managementassesseswhethertheCompany’sliquidityisexpectedto
exceed $
300.0
million within the next 12 monthsand classifies the portion of the balanceexpected to be settled
within that period as current liability.
As of March 31,2026, the carrying amount, includingaccrued interest, of the Prepaymentand Deferred Payment
Balance was $
25.8
million and classifiedas non-current liability. No governmentassistance income wasrecorded
during the three months period ended March 31, 2026,as the interest cap mechanism was not triggered.
TheSecondAmendmentDeedalsoincludesrestrictionsontheCompany’sabilitytopaydistributionsto
shareholders (e.g., dividends).These restrictions requirethat the Companymaintains a minimumcash liquidity
of$
300.0
millionfollowingpaymentofsuchdistribution,therepurchaseofanyNotesinconnectionwiththe
distribution, and thepayment toStanwell of anequal or greateramount (up toa maximum ofthree times)than
the distribution to reduce the Prepayment and DeferredPayment Balance.
TheACSAandtheNCSAaresecuredbymortgagesregisteredovertheCurraghminetenements,orthe
Tenement Lien, at the Queensland Governmentlevel and athird-priority lien onsubstantially all ofthe Company's
assets. The TenementLien operates independently of, and is not subordinated to, the Company's other secured
debt obligations, andno third partymay acquire theCurragh mine tenementswithout simultaneously assuming
the coal supply obligations to Stanwell.
The Prepayment and Deferred Payment Balance may become repayable ifthere is an unremedied default under
the ACSA or NCSA.
If a changeof control ofthe Companyis proposed within
two years
of November 27,2025, the Companymust
obtain Stanwell’sconsent and,before thechange ofcontrol occurs,pay Stanwellthe waivedrebate amounts,
together with contractual interest from thedates such amounts would otherwise havebeen payable. Additionally,
ifanentitythatcontrolledtheCompanyas atNovember27,2025 ceasestocontroltheCompanyby wayof
disposal of an interest in the Company of
20
% or more without Stanwell’s consent within
two years
of November
27, 2025, then theCompany must immediatelypay Stanwell the waivedrebate amounts, togetherwith interest.
As of March 31, 2026, cumulativerebate amounts of $
23.6
million would have been payableabsent the waiver.
No liability was recognized as of March 31,2026 in respect of the waived rebate amounts becausethe Company
had not beenrequired to seek Stanwell’s consentin connection with anyproposed change or cessationof control
as of that date.
NOTES TO UNAUDITED CONDENSED CONSOLIDATEDFINANCIAL STATEMENTS(Continued)
Coronado Global Resources Inc.
Form 10-Q March 31, 202619
12. Other Financial Liabilities
The following is a summary of other financial liabilitiesas at March 31, 2026:
(in US$ thousands)
March 31, 2026
December 31,
2025
Collateralized financial liabilities - Curragh Housing Transaction
$
21,292
$
21,195
Derivative liability (refer to Note 15. "Derivatives and Fair ValueMeasurement")
60
—
Debt issuance costs
(868)
(883)
Totalother financial liabilities
20,484
20,312
Less: current portion
(1,571)
(1,424)
Non-current other financial liabilities
$
18,913
$
18,888
Collateralized financial liabilities – Curragh Housing Transaction
The CurraghHousing Transactiondid notsatisfy thesale criteriaunder ASC606 –
Revenuesfrom Contracts
with Customers
and was deemed afinancing arrangement. As aresult, proceeds of $
23.0
million (A$
34.6
million)
received for the sale and leaseback of property,plant and equipment owned by the Company in connection with
the Curragh HousingTransactionwere recognizedas “OtherFinancial Liabilities”on the Company’sunaudited
Condensed Consolidated BalanceSheets. The termof the financingarrangement is
ten years
with an effective
interest rateof
14.14
%.Thisliabilitywillbe settledinequal monthlypaymentsaspart oftheaccommodation
services arrangement.
In connection with theCurragh Housing Transaction,the Company has granted thecounterparty mortgages over
certainleaseholdandfreeholdland.Thecounterparty’srightsaresubjecttoaprioritydeedinfavorofthe
Company’s senior secured parties including,but not limited to, holders of the Notes.
The carryingvalue of thisfinancial liability,net ofissuance costsof $
0.9
million, was$
20.4
million asat March
31, 2026, $
1.5
million of which is classified as a current liability.
13.Income Taxes
For thethree monthsended March31, 2026,the Companyestimated itsannual effectivetax rateand applied
this effective taxrate to its year-to-datepretax income atthe end of the interimreporting period. Thetax effects
ofunusualorinfrequentlyoccurringitems,includingeffectsofchangesintaxlawsorratesandchangesin
judgment about the realizability of deferred tax assets, are reportedin the interim period in which they occur.
The Company’s 2026 estimated annualeffective tax rate is
3.5
%. This rate is impacted byinclusion of a current
year valuationallowance relatingto boththe Australiaand the U.S.operations. Accordingly,the Companyhad
an incometax benefitof $
11.5
million basedon aloss beforetax of$
330.1
million forthe threemonths ended
March 31, 2026, which includes discrete expense of $
0.4
million.
The Companyhadan incometaxbenefit of$
37.8
million basedon alossbefore taxof $
134.0
millionfor the
three months ended March 31, 2025.
The Company utilizes the“more likely than not”standard in recognizinga tax benefit inits financial statements.
For the three months endedMarch 31, 2026, the Companyhad
no
new unrecognized tax benefits included intax
expense. If accrualfor interest orpenalties is required,it is theCompany’s policy to includethese as acomponent
of income taxexpense. The Company continuesto carry an unrecognizedtax benefit of $
19.3
million as at March
31, 2026 and December 31, 2025.
The Company issubject to taxationin theU.S. and itsvarious states, aswell as Australiaand itsvarious localities.
In theU.S.andAustralia, thefirst taxreturnwaslodged fortheyearended December31,2018. Inthe U.S.,
companies are subject toopen tax audits fora period of three yearsat the federal leveland five years atthe state
level.InAustralia,companiesaresubjecttoopentaxauditsforaperiodoffouryearsfromthedateof
assessment.
NOTES TO UNAUDITED CONDENSED CONSOLIDATEDFINANCIAL STATEMENTS(Continued)
Coronado Global Resources Inc.
Form 10-Q March 31, 202620
14.Loss per Share
Basic loss per share of common stock iscomputed by dividing net loss attributable to the Company stockholders
for the period by the weighted-average numberof shares of common stock outstanding duringthe same period.
DilutedlosspershareofcommonstockiscomputedbydividingnetlossattributabletotheCompanybythe
weighted-average numberof sharesof commonstock outstandingadjusted togive effectto potentiallydilutive
securities.
Basic and diluted loss per share were calculated asfollows (in thousands, except per share data):
Three months ended
March 31,
(in US$ thousands, except per share data)
2026
2025
Numerator:
Net loss attributable to Company stockholders
$
(318,590)
$
(96,198)
Denominator (in thousands):
Weighted average shares of common stock
outstanding
167,645
167,645
Weighted average diluted shares of common stockoutstanding
167,645
167,645
Loss Per Share (US$):
Basic
(1.90)
(0.57)
Diluted
(1.90)
(0.57)
The Company’s common stock is publicly traded onthe ASX in the form of CDIs, convertible at the option of
the holders into shares of the Company’s commonstock on a
10
-for-1 basis.
15.Derivatives and Fair ValueMeasurement
a) Derivatives
TheCompanymayusederivativefinancialinstrumentstomanageitsfinancialrisksinthenormalcourseof
operations, including foreigncurrency risks, commodityprice risk relatedto purchase ofraw materials (suchas
gas ordiesel) and interestrate risk. Derivativesfor speculative purposesare strictly prohibitedunder the Treasury
Risk Management Policy approved by the Board of Directors.
The financingcounterpartiesto thederivativecontractspotentially exposetheCompanyto credit-relatedrisk.
Credit risk is the risk that athird party might fail to fulfill its obligations under theterms of the financial instrument.
The Companymitigatescredit riskby enteringinto derivativecontracts withhigh creditquality counterparties,
limiting the amount of exposure to each counterparty andfrequently monitoring their financial condition.
Forward foreign currency contracts
The Company’s Australian Operations utilize the cashgenerated from US$ denominated coal sales revenues to
fundoperatingcosts,whicharepredominantlyinA$.DuringthethreemonthsendedMarch31,2026,the
Company entered into forward foreign currency contracts to hedge itsforeign exchange exposure on a portion of
the US$ denominated coal sales revenue at its Australian Operations,whose functional currency is A$.
The aggregatenotional amountof theoutstanding forwardforeign currencyderivative contractsdesignated as
cash flowhedges was$
30.0
million asat March31, 2026,with maturitydates varyingfrom April2026 toJune
2026. Given the forward foreign currency contracts were designated as cash flow hedges, the unrealizedloss of
$
0.1
millionwasrecognizedin“Accumulatedothercomprehensiveloss”atMarch31,2026intheunaudited
CondensedConsolidatedBalanceSheet,andwillbereclassifiedinto“Coalrevenues”intheCondensed
ConsolidatedStatementsofOperationsandComprehensiveIncomeintheperiodinwhichthehedged
transactionimpactsincome,expectedtobewithinthenext3months.RefertoNote16.“AccumulatedOther
Comprehensive Losses.”
As of March 31,2026, the Company recognizeda derivative liabilityof $
0.1
million in respect offorward foreign
currency contractsunrealized loss,classified within“
Other Financial Liabilities
”. Asof December31, 2025,the
NOTES TO UNAUDITED CONDENSED CONSOLIDATEDFINANCIAL STATEMENTS(Continued)
Coronado Global Resources Inc.
Form 10-Q March 31, 202621
Company recognized a derivativeasset of $
2.5
million in respect offorward foreign currency contractsunrealized
gain, classified within “
Other assets
”.
The following table presents the details of outstandingforeign currency contracts:
March 31, 2026
December 31, 2025
Notional
amount
(thousands)
Unit of
measure
Varying
maturity
dates
Notional
amount
(thousands)
Unit of
measure
Varying
maturity
dates
Designated forward foreign
currency contracts
30,000
US$
April 2026
-
June 2026
80,000
US$
January
2026-
March
2026
b) Fair Value Measurement
The fairvalue ofa financialinstrument isthe amountthat willbe receivedto sellan assetor paidto transfera
liability inan orderly transactionbetween market participantsat themeasurement date. Thefair valuesof financial
instruments involve uncertainty and cannot be determined withprecision.
The Company utilizes valuationtechniques that maximizethe use of observable inputsand minimize the use of
unobservableinputstotheextentpossible.TheCompanydeterminesfairvaluebasedonassumptionsthat
market participants would use in pricingan asset or liability in themarket.When considering market participant
assumptions in fairvalue measurements, thefollowing fair valuehierarchy distinguishes between observableand
unobservable inputs, which are categorized in one of the followinglevels:
Level1 Inputs:Unadjustedquotedpricesinactivemarketsfor identicalassetsor liabilitiesaccessibletothe
reporting entity at the measurement date.
Level 2 Inputs:Other than quoted prices that are observable for theasset or liability,either directly or indirectly,
for substantially the full term of the asset or liability.
Level3Inputs:Unobservableinputsfortheassetorliabilityusedtomeasurefairvaluetotheextentthat
observable inputsare notavailable, therebyallowing forsituations inwhich thereis little, ifany,market activity
for the asset or liability at measurement date.
Financial Instruments Measured on a Recurring Basis
As ofMarch 31,2026 andDecember 31,2025, theCompany’s forward foreigncurrency contracts, anet derivative
liabilityof$
0.1
millionandderivativeassetof$
2.5
million,respectively,wererequiredtobemeasuredatfair
value on arecurring basisbased ona valuationthat iscorroborated bythe useof market-basedpricing (Level
2).
Financial Instruments Measured on a NonrecurringBasis
Other than the estimatedfair value of the assetsdescribed in Note 4. “Impairmentof assets”, which areLevel 3
fair value, there were
no
other assets and liabilities thatwere measured at fair valueon a nonrecurring basisas
of March 31, 2026, and December 31, 2025.
Other Financial Instruments
The following methods and assumptions were used to estimate the fair value of other financial instrumentsas of
March 31, 2026 and December 31, 2025:
●
Cash and cash equivalents,accounts receivable, accountspayable, accrued expenses,lease liabilities
andothercurrentfinancialliabilities:ThecarryingamountsreportedintheunauditedCondensed
Consolidated Balance Sheets approximatedfair value due to the short maturity of these instruments.
●
Restricteddeposits,leaseliabilities,interestbearingliabilitiesandotherfinancialliabilities:Thefair
values approximatedthecarryingvaluesreportedintheunauditedCondensedConsolidatedBalance
Sheets.
NOTES TO UNAUDITED CONDENSED CONSOLIDATEDFINANCIAL STATEMENTS(Continued)
Coronado Global Resources Inc.
Form 10-Q March 31, 202622
●
Interest bearing liabilities: TheCompany’s outstanding interest-bearing liabilities are carried atamortized
cost. As of March 31, 2026, thefair value of the amounts drawn under the ABLFacility approximatedthe
carrying value reportedin the consolidatedbalance sheets. Theestimated fair valueof the Notesas of
March 31, 2026was approximately$
362.6
million based uponquoted market pricesin a marketthat is
not considered active (Level 2). Theestimated fair value of theCurragh Housing loan was $
25.6
million
based upon unobservable inputs (Level 3).
16.Accumulated Other Comprehensive Losses
The Company’s Accumulated Other Comprehensive Losses consistedof foreign currency translation adjustment
for subsidiaries forwhich the functional currencyis different thanthe Company’s functional currency inU.S. dollar
and netunrealized gains(losses) onforward foreigncurrency contractsdesignated ascash flowhedges asof
March 31, 2026, as follow:
(in US$ thousands)
Foreign
currency
translation
adjustments
Net unrealized
gain on cash
flow hedge -
forward foreign
currency
contracts
Total
Balance at December 31, 2025
$
(122,923)
2,479
$
(120,444)
Net current-period other comprehensive losses:
(Loss) gain in other comprehensive income before
reclassifications
(6,765)
2,711
(4,054)
Gain on long-term intra-entity foreign currency transactions
8,676
—
8,676
Gain reclassified from accumulated other comprehensive
losses
—
(5,250)
(5,250)
Totalnet current-period other comprehensive losses
1,911
(2,539)
(628)
Balance at March 31, 2026
$
(121,012)
(60)
$
(121,072)
17.Commitments
(a)Mineral Leases
TheCompanyleasesmineralinterestsandsurfacerightsfromlandownersundervarioustermsandroyalty
rates. The futureminimum royaltiesand leaserental paymentsunder theseleases asof March31, 2026were
as follows:
(in US$ thousands)
Amount
Year endingDecember 31,
2026
$
3,492
2027
3,893
2028
3,861
2029
3,854
2030
7,371
Thereafter
19,526
Total
$
41,997
Mineral leases are notin scope of ASC842 and continue tobe accounted forunder the guidance inASC 932,
Extractive Activities – Mining.
(b)Other commitments
As of March 31, 2026, purchase commitments for capital expenditures were $
5.8
million, all of which is obligated
within the next twelve months.
In Australia, theCompany has generallysecured the abilityto transport coalthrough rail contractsand coal export
terminal contracts that are primarily fundedthrough take-or-pay arrangements with terms ranging up to
12 years
.
In the U.S., the Companytypically negotiates its railand coal terminal accesson an annual basis.As of March
31,2026,theseAustralianandU.S.commitmentsundertake-or-payarrangementstotaled$
595.0
million,of
whichthe Company is obliged to pay approximately $
101.8
million within the next twelve months.
NOTES TO UNAUDITED CONDENSED CONSOLIDATEDFINANCIAL STATEMENTS(Continued)
Coronado Global Resources Inc.
Form 10-Q March 31, 202623
18.Contingencies
Surety bond, letters of credit and bank guarantees
In thenormal courseof business,the Companyis aparty tocertain guaranteesand financialinstruments with
off-balance sheet risk, such as bankguarantees, letters of credit and performanceor surety bonds.
No
liabilities
relatedtothesearrangementsarereflectedintheCompany’sunauditedCondensedConsolidatedBalance
Sheets. Management doesnot expect anymaterial losses toresult from theseguarantees or off-balancesheet
financial instruments.
Forthe U.S.Operations,inorder toprovidethe requiredfinancialassurancefor postminingreclamation,the
Company generally usessurety bonds. TheCompany uses suretybonds and bankletters of creditto collateralize
certain other obligationsincluding contractual obligationsunder workers’ compensationinsurance. As ofMarch
31, 2026, theCompany hadoutstanding suretybonds andbank guaranteesof $
20.0
million and$
10.0
million,
respectively.
For theAustralian Operations,as atMarch 31,2026, theCompany hadbank guaranteesoutstanding of$
36.6
million, primarily in respect of certain rail and port take-or-payarrangements of the Company.
AsofMarch31,2026,theCompanyinaggregatehadtotaloutstandingbankguaranteesof$
46.6
millionto
secure its obligations and commitments.
Future regulatory changes relating tothese obligations or deterioration ofthe Company’s credit riskrating could
result in increased obligations, additional costs or additionalcollateral requirements.
Restricted deposits – cash collateral
As required bycertain agreements, theCompany had totalcash collateral inthe form ofdeposits of $
144.4
million
and $
141.7
million as of March 31, 2026 andDecember 31, 2025, respectively,to provide back-to-back support
forbankguarantees,otherperformanceobligations,variousotheroperatingagreementsandcontractual
obligations under workers compensation insurance.These deposits are restricted and classified as “Non-current
assets” in the unaudited Condensed Consolidated BalanceSheets.
FutureregulatorychangesinrelationtotheseobligationsordeteriorationoftheCompany’screditriskrating
could result in increased obligations, additional costs oradditional collateral requirements.
From timeto time,the Companyis aparty tolegal proceedingsin theordinary courseof businessin Australia
and theU.S.Based oncurrent information,the Companybelieves thatall pendingor threatenedproceedings
are likely to be resolved without a materialadverse effect on its financial condition,results of operations or cash
flows.Inmanagement’sopinion,theCompanyisnotcurrentlyinvolvedinanylegalproceedingswhich,
individually or inthe aggregate,could have amaterial effect onthe financial condition,results of operationsand/or
liquidity of the Company.
Coronado Global Resources Inc.
Form 10-Q March 31, 202624
REPORT OF INDEPENDENT REGISTERED PUBLICACCOUNTING FIRM
To the Stockholdersand Board of Directors of Coronado Global ResourcesInc.
Results of Review of Interim Financial Statements
Wehavereviewedtheaccompanyingcondensedconsolidatedbalance sheetofCoronadoGlobalResources
Inc.(theCompany)asofMarch31,2026,therelatedcondensedconsolidatedstatementsofoperationsand
comprehensiveincome,stockholders’equityand cashflowsfor thethreemonthsendedMarch31, 2026and
2025 and therelated notes (collectively referredto as the“condensed consolidated interim financialstatements”).
Based onour reviews,we arenot awareof anymaterial modificationsthat shouldbe madeto thecondensed
consolidated interimfinancial statementsfor themto bein conformitywith U.S.generally acceptedaccounting
principles.
Wehavepreviouslyaudited,inaccordancewiththestandardsofthePublicCompanyAccountingOversight
Board (United States) (PCAOB), theconsolidated balance sheet of the Companyas of December 31, 2025, the
related consolidated statementsof operationsand comprehensiveincome, stockholders'equity and cashflows
for the year then ended, and the related notes (not presented herein), and in our report dated March 3, 2026, we
expressed an unqualifiedaudit opinion onthose consolidated financial statements. Inour opinion, theinformation
set forth in the accompanyingcondensed consolidated balancesheet as of December31, 2025, is fairly stated,
in all material respects, in relation to the consolidatedbalance sheet from which it has been derived.
Basis for Review Results
These financialstatementsare theresponsibilityof theCompany'smanagement.Weare apublic accounting
firm registered with the PCAOB and are requiredto be independent with respect to the Companyin accordance
with theU.S. federalsecurities lawsand theapplicable rulesand regulationsof theSEC andthe PCAOB.We
conducted our reviewin accordance withthe standards ofthe PCAOB. Areview of interimfinancial statements
consists principallyof applyinganalytical proceduresand makinginquiries ofpersonsresponsible forfinancial
and accounting matters.It is substantiallyless in scopethan an auditconducted in accordancewith the standards
of the PCAOB, the objective of which is the expression of an opinion regarding the financial statements taken as
a whole. Accordingly,we do not express such an opinion.
/s/ Ernst & Young
Brisbane, Australia
May 11, 2026
Coronado Global Resources Inc.
Form 10-Q March 31, 202625
ITEM 2.MANAGEMENT’S DISCUSSIONAND ANALYSISOF FINANCIALCONDITION ANDRESULTSOF
OPERATIONS
The followingManagement’s Discussionand Analysisof FinancialCondition andResults of Operationsshould
be read in conjunctionwith the unauditedCondensed Consolidated FinancialStatements and therelated notes
to those statements included elsewhere in this Quarterly Report on Form 10-Q. In addition, this Quarterly Report
onForm 10-QshouldbereadinconjunctionwiththeConsolidatedFinancialStatementsforyearended
December 31,2025includedinCoronadoGlobalResourcesInc.’sAnnualReportonForm 10-Kfortheyear
ended December 31, 2025, filed with the SEC and theASX on March 3, 2026.
Unless otherwisenoted,referencesin thisQuarterlyReport onForm 10-Qto “we,”“us,”“our,”“Company,”or
“Coronado” referto CoronadoGlobal ResourcesInc. andits consolidatedsubsidiaries andassociates, unless
the context indicates otherwise.
All production and sales volumes contained in this Quarterly Report on Form 10-Qare expressed in metric tons,
or Mt,millions ofmetric tons,or MMt,or millionsof metrictons perannum, orMMtpa, exceptwhere otherwise
stated. One Mt(1,000 kilograms) is equalto 2,204.62 pounds andis equivalent to 1.10231short tons. In addition,
alldollaramountscontainedhereinareexpressedinUnitedStatesdollars,orUS$,exceptwhereotherwise
stated.Referencesto“A$”arereferencestoAustraliandollars,thelawfulcurrencyoftheCommonwealthof
Australia. Some numerical figures included in this Quarterly Reporton Form 10-Q have been subject to rounding
adjustments. Accordingly, numerical figures shown astotals in certaintables may notequal the sumof the figures
that precede them.
CAUTIONARY NOTICE REGARDING FORWARD-LOOKING STATEMENTS
This Quarterly Report on Form 10-Q contains “forward-looking statements” within the meaning of Section 27A of
the Securities Act of 1933, asamended, and Section 21E of the SecuritiesExchange Act of 1934, as amended,
or the ExchangeAct, concerningour business,operations, financialperformance andcondition, thecoal, steel
andotherindustries,as wellasourplans,objectivesandexpectationsforourbusiness,operations,financial
performanceandcondition.Forward-lookingstatementsmaybeidentifiedbywordssuchas“may,”“could,”
“believes,”“estimates,”“expects,”“intends,”“plans,”“anticipate,”“forecast,”“outlook,”“target,”“likely,”
“considers” and other similar words.
Anyforward-lookingstatementsinvolveknownandunknownrisks,uncertainties,assumptionsandother
important factors thatcould cause actualresults, performance,events or outcomesto differmaterially fromthe
results,performance,eventsoroutcomesexpressedoranticipatedinthesestatements,manyofwhichare
beyondourcontrol.Suchforward-lookingstatementsarebasedonanassessmentofpresenteconomicand
operating conditionsusing anumber ofbest estimateassumptions regardingfuture eventsand actions.These
factors are difficult to accurately predict and may be beyond our control. Factors that could affect our results, our
announced plans, or an investment in our securities include,but are not limited to:
●
adecreaseintheavailabilityorincreaseincostsoflabor,keysupplies,capitalequipmentor
commodities,suchasdieselfuel,steel,explosivesandtires,astheresultofinflationarypressures,
geopolitical conflicts or otherwise;
●
the prices we receive for our coal;
●
our ability to generate sufficient cash to serviceour indebtedness and other obligations;
●
ourabilitytoprovideappropriatefinancialassurancesforourobligationsunderapplicablelawsand
regulations, including our abilityto provide applicablesurety of Curragh’s EstimatedRehabilitation Cost
under the Financial Provisioning Scheme;
●
risksuniquetointernationalminingandtradingoperations,includinganychangesintariffsortariff
policies and other barriers to trade;
●
uncertaintyinglobaleconomicconditions,includingtheextent,durationandimpactofongoingcivil
unrest and wars,as well asrisks related togovernment actions withrespect to tradeagreements, treaties
or policies;
●
the extensive forms oftaxation to which ourmining operations are subject,and future tax regulationsand
developments;
Coronado Global Resources Inc.
Form 10-Q March 31, 202626
●
concerns about the environmental impacts of coal combustion and greenhouse gas, or GHG, emissions
arising from miningactivities, includingpossible impactson global climateissues, whichcould resultin
increased regulationof coal combustionand GHGemissions andincreasedcosts associatedwith coal
production and consumption, such as costs foradditional controls to reduce carbon dioxide emissions or
costs to purchaseemissions reduction creditsto comply withfuture emissionstrading programs,which
could significantly impactour financial conditionand results ofoperations, affect demand forour products
or our securities and reduce our access to capital andinsurance;
●
severe financial hardship,bankruptcy,temporary or permanentshutdowns or operationalchallenges of
oneormoreofourmajorcustomers,includingcustomersinthesteelindustry,andkey
suppliers/contractors, whichamong otheradverse effects,could leadto reduceddemand forour coal,
increaseddifficultycollectingreceivablesandcustomersand/orsuppliersassertingforcemajeureor
other reasons for not performing their contractualobligations to us;
●
our indebtedness and ability tocomply with the covenants and otherundertakings under the agreements
governing such indebtedness;
●
ourabilitytocollectpaymentsfromourcustomersdependingontheircreditworthiness,contractual
performance or otherwise;
●
the demand for steel products, which impacts the demand forour metallurgical, or Met, coal;
●
risks inherent to mining operations, such as adverse weather conditions, which could impact the amount
of coal produced, cause delaysin or suspension of coal deliveries, orincrease the cost of operating our
business;
●
the loss of, or significant reduction in, purchases by ourlargest customers;
●
unfavorable economic and financial market conditions;
●
our ability to continue acquiring and developing coal reservesthat are economically recoverable;
●
uncertainties in estimating our economically recoverable coalreserves;
●
transportation for our coal becoming unavailable or uneconomicfor our customers;
●
the riskthat wemaybe requiredto payfor unusedcapacitypursuantto thetermsof ourtake-or-pay
arrangements with rail and port operators;
●
our ability to retain key personnel and attract qualifiedpersonnel;
●
any failure to maintain satisfactory labor relations;
●
our ability to obtain, renew or maintain permits and consentsnecessary for our operations;
●
potential costs or liability under applicable environmentallaws and regulations, including with respectto
anyexposuretohazardoussubstancescausedbyouroperations,aswellasanyenvironmental
contamination our properties may have or our operationsmay cause;
●
extensive regulation of our mining operations and futureregulations and developments;
●
assumptions underlying our asset retirement obligationsfor reclamation and mine closures;
●
any cyber-attacks or other security breaches that disruptour operations or result in the dissemination of
proprietary or confidential information about us, our customersor other third parties;
●
the risk that we may not recover our investments in our mining, exploration and other assets, which may
require us to recognize or continue to recognize impairmentcharges related to those assets;
●
risks related to divestitures and acquisitions;
●
the risk that diversity in interpretation and application of accounting principles in the mining industry may
impact our reported financial results; and
Coronado Global Resources Inc.
Form 10-Q March 31, 202627
●
otherrisksanduncertaintiesdetailedherein,including,butnotlimitedto,thosediscussedin“Risk
Factors,” set forth in Part II, Item 1A of this Quarterly Reporton Form 10-Q.
Wemakemanyofourforward-lookingstatementsbasedonouroperatingbudgetsandforecasts,whichare
based upondetailed assumptions.While webelieve thatour assumptionsare reasonable,we cautionthat itis
very difficult topredict the impactof known factors,and it isimpossible for usto anticipate allfactors that could
affect our actual results.
See Part I, Item1A. “Risk Factors”of our Annual Reporton Form 10-K forthe year ended December31, 2025,
filed withtheSEC andASX onMarch3, 2026,for amore completediscussionof therisksand uncertainties
mentioned aboveand fordiscussion ofother risksand uncertaintieswe facethat couldcause actualresults to
differ materially from those expressed or implied bythese forward-looking statements.
Allforward-lookingstatementsattributabletousareexpresslyqualifiedintheirentiretybythesecautionary
statements, as well as othersmade in this Quarterly Report on Form10-Q and hereafter in our otherfilings with
theSECandpubliccommunications.Youshouldevaluateallforward-lookingstatementsmadebyusinthe
context of these risks and uncertainties.
We caution you that the risks and uncertainties identified by us may not be all of the factors that are important to
you. Theforward-lookingstatementsincluded inthisQuarterly Reporton Form10-Q aremade onlyas ofthe
date hereof. We undertake no obligation to publicly update or revise any forward-looking statement as aresult of
new information, future events, or otherwise, except as requiredby applicable law.
Results of Operations
How We Evaluate Our Operations
Weevaluateouroperationsbasedonthevolumeofcoalwecansafelyproduceandsellincompliancewith
regulatory standards,and theprices wereceive forour coal.Our salesprices arelargely dependentupon the
terms of our coalsales contracts, for which pricesgenerally are set basedon daily index averages,on a quarterly
basis or annual fixed price contracts.
Our managementuses avariety offinancial andoperating metricsto analyzeour performance.These metrics
are significant factorsin assessingour operating resultsand profitability.These financialand operating metrics
include: (i) safety and environmental metrics; (ii) Adjusted EBITDA; (iii) total sales volumes and average realized
priceperMtsold,whichwedefineastotalcoalrevenuesdividedbytotalsalesvolume;(iv) Metcoalsales
volumes and average realized Met price perMt sold, which we define as Met coalrevenues divided by Met coal
sales volume;(v) average segmentmining cashcosts perMt produced,which wedefine asmining cashcosts
divided bysaleableproductionforthe respectivesegment;(vi) averagesegmentoperatingcostsper Mtsold,
which we defineas segment operatingcosts divided bysales volumes forthe respective segment;and (vii) net
cash (ornet debt),which wedefine ascash andcash equivalents(excluding restrictedcash) lessoutstanding
aggregate principal amount of the Notes and other interest-bearing liabilities.
In the current period, managementrevised the metric in item(v) above from averagesegment mining costsper
Mt sold (previously definedas mining costs divided bysales volumes, excluding non-producedcoal) to average
segment miningcash costsper Mtproduced (definedas miningcash costsdivided bysaleable productionfor
therespectivesegment).Thischangeadjuststhecostbasetoexcludenoncashcosts,includinginventory
movements, divided by saleableproduction, which we believedirectly aligns costs withthe period in which they
are incurred. Management believes therevised metric provides a moremeaningful and comparable measureof
segment operating efficiency and consistent withhow costs are assessed.
Coal revenues areshown in ourstatement of operationsand comprehensive incomeexclusive of otherrevenues.
Generally, exportsale contracts on Free on Board,or FOB, require us to bear thecost of freight from our mines
totheapplicableoutboundshippingport,whilefreightcostsfromtheporttotheenddestinationaretypically
bornebythecustomer.CertainexportsalesfromourU.S.Operationsarerecognizedwhentitletothecoal
passes tothe customerat themine loadout similarto adomestic sale.For ourdomestic sales,customers typically
bearthecostoffreight.Assuch,freightexpensesareexcludedfromthecostofcoalrevenuestoallowfor
consistency and comparability in evaluating our operatingperformance.
Non-GAAP Financial Measures; Other Measures
ThefollowingdiscussionofourresultsincludesreferencestoandanalysisofAdjustedEBITDA,Segment
Adjusted EBITDA and miningcosts, which are financialmeasures not recognized inaccordance with U.S. GAAP.
Non-GAAP financialmeasures, includingAdjusted EBITDA,Segment AdjustedEBITDA andmining costs,are
useful to our investors to measure our operating performance.
Coronado Global Resources Inc.
Form 10-Q March 31, 202628
Non-GAAP financial measures are intended to provide additional information only and do not have any standard
meaning prescribed by U.S. GAAP.These measures should not be consideredin isolation or as a substitute for
measures of performance prepared in accordance withU.S. GAAP.
Adjusted EBITDA, a non-GAAP measure, is defined as earnings before interest, tax, depreciation, depletion and
amortizationandotherforeignexchangelosses.AdjustedEBITDAisalsoadjustedforcertaindiscretenon-
recurring items that we exclude inanalyzing each of our segments’operating performance. Adjusted EBITDAis
not intendedto serveas analternative toU.S. GAAP measuresof performanceincluding totalrevenues, total
costs and expenses,net income orcash flows fromoperating activities asthose terms aredefined by U.S.GAAP.
Adjusted EBITDA maytherefore not becomparable tosimilarly titled measurespresented by othercompanies.
A reconciliation ofAdjusted EBITDA toits mostdirectly comparable measureunder U.S. GAAP isincluded below.
SegmentAdjustedEBITDAisdefinedasAdjustedEBITDAbyoperatingandreportingsegment,adjustedfor
certaintransactions,eliminationsoradjustmentsthatourCODMdoesnotconsiderformakingdecisionsto
allocateresourcesamongsegmentsorassessingsegmentperformance.AdjustedEBITDAandSegment
Adjusted EBITDAare usedas supplementalfinancialmeasures bymanagementand byexternal usersof our
financial statements,such asinvestors, industryanalysts andlenders, toassess theoperating performanceof
our business.
Mining cashcosts, anon-GAAP measure,is basedon reportedcost ofcoal revenues,which isshown onour
statement of operationsand comprehensive incomeexclusive of inventorymovements, freight expense,Stanwell
rebate,otherroyalties,depreciation,depletionandamortization,andselling,generalandadministrative
expenses,adjustedfor otheritems thatdo notrelatedirectly tothecostsincurredto producecoal ata mine.
Mining cashcosts exclude thesecost components asour CODMdoes notview these costsas directlyattributable
totheproductionofcoal.Miningcashcostsisusedasasupplementalfinancialmeasurebymanagement,
providing an accurate view of the costs directlyattributable to the production of coal atour mining segments, and
by external usersof our financialstatements, such asinvestors, industry analysts andratings agencies, toassess
our mine operating performance incomparison to the mineoperating performance of other companies inthe coal
industry.
About Coronado Global Resources Inc.
Weareaproducer,globalmarketerandexporterofhigh-qualityMetcoalproducts.Weownaportfolioof
operating mines and developmentprojects in Queensland, Australia,and in the states ofVirginia, West Virginia
and Pennsylvania in the United States.
Our AustralianOperationscomprise the100%-ownedCurragh producingmine complex.Our U.S.Operations
comprise a 100%-owned producing mine complex (Buchanan),a 100%-owned idled mine complex (Logan) and
a development property(Mon Valley).In addition to Met coal, our AustralianOperations sell thermal coal, which
is used to generateelectricity,domestically to Stanwelland in the exportmarket. Our U.S.Operations primarily
focusontheproductionofMetcoalfortheNorthAmericandomesticandseaborneexportmarketsandalso
produce and sell some thermal coal that is extracted inthe process of mining Met coal.
Overview
During the three months ended March 31, 2026, Coronado navigated through significant operational headwinds,
including (1)temporary suspensionof ourMammoth undergroundoperations,or Mammoth,following asafety
incident in January2026 with phased resumptionof mining commencingin mid-February 2026,(2) progressive
curtailment and subsequentidling of our Loganoperations in response tosustained weakness in theU.S. high-
volcoalmarkets,withminingsectionsshutdowninstagesthroughthefirstquarterof2026andthecomplex
transitioning toidle statusby lateMarch, (3)significant wetweather eventsat theCurragh Northmine inour
AustralianOperationswhichcausedfloodingof keypit areas,restrictedmineaccess,caused damagetokey
infrastructureandreducedcoal availabilityacrossthe Curraghmine complex,(4)the strengtheningof theA$
compared to theUS$, resulting inhigher operating costs atour Australian Operations, and(5) higher freightcosts
on salesfrom ourU.S. Operations,primarily drivenby ahigher proportionof salesunder Costand Freight,or
CFR, terms compared to FOB terms in the prior year period, combinedwith higher rail and ocean freight rates.
As a result, our saleable production for the three months ended March31, 2026, of 3.0 MMt, was 0.5 MMt lower
compared to thethree months endedMarch 31, 2025.Despite lower saleableproduction, sales volumesof 3.5
MMt were0.1 MMthigher thanthe threemonthsended March31, 2025,primarilydriven bythe drawdownof
available saleable inventory built at the end of December 2025 fromshipment delays and logistical constraints.
Met coal sales represented 71.4% of our total volume of coal sold and 88.7% of total coal revenues for the three
months ended March 31,2026 compared to 80.9%and 98.3%, respectively,for the three monthsended March
31, 2025.
Coronado Global Resources Inc.
Form 10-Q March 31, 202629
CokingcoalindexpriceswerestrongerduringthethreemonthsendedMarch31,2026,supportedbytight
seabornesupplyandimprovedrestockingdemandfromkeyAsian steelmakers.Adverseweatherconditions,
includingheavyrainsandflooding,duringthefirstquarterof2026,significantlydisruptedminingoperations
across key producingregions, notably inQueensland, where keyproducers declared forcemajeure on shipments
or facedweather andsafety-related productionconstraints. Thesesupply-side dynamicscontributed toa more
favorable pricing environment for premium Met coal, with the Australian Premium Low Volatile Hard Coking Coal
index, or AUS PLVHCC, reaching a quarterlypeak of $252.0per Mt sold earlyFebruary and averaging $234.7
per Mt during the three months ended March 31,2026, $34.5 per Mt higher than the priorquarter and $49.6 per
Mt higher than thethree months endedMarch 31, 2025. Lookingahead, the premiumMet coal market appears
reasonably supported, with demand from key Asian steelmakersand constrained seaborne supply continuing to
provide aconstructive backdrop,although pricingmay remainvolatile andsubject toweather,trade flowsand
broader steel market conditions.
Coal revenueswere$460.5millionforthethreemonthsendedMarch31,2026,anincreaseof$19.0million
compared tothe sameperiod in2025. Theincrease wasprimarily drivenby higheraverage realizedMet coal
prices, which were $14.0 per Mt higher compared to the threemonths ended March 31, 2025.
Mining cash costs for the three monthsended March 31, 2026, were $44.1million higher compared to the three
months ended March31, 2025.The increase inmining cash costswas primarily attributedto higher subcontractor
costs,duetoMammothramp-upproductionandhigheroverburdenremoval,repairsandmaintenancecosts,
resultingfromthedamagetokeyinfrastructure,andanunfavorableforeignexchangerateofA$/US$$0.69
comparedto$0.63duringthethreemonthsendedMarch31,2025.Theseincreaseswerepartiallyoffsetby
lower mining cash costsat our U.S. Operationsdue to the curtailmentand subsequent idling ofthe Logan mine
complex.
Inresponsetothechallengingoperatingenvironment,managementhasidentifiedandcommenced
implementationofcostreductioninitiativesatourAustralianOperationstargetingimprovementsincontractor
management, procurementpractices, andoperational efficiency.In addition,Coronado continuesto undertake
initiatives to enhance liquidity and reduce operating andcapital costs across the Company.
Liquidity and Going Concern
Coronado had available liquidity,in the form of cash and cash equivalents (excludingrestricted cash), of $120.8
million as of March 31, 2026. As of March 31, 2026, Coronado had $703.2 million aggregate principalamount of
interest-bearing liabilities outstanding andcash and cashequivalents (excluding restricted cash)of $120.8 million
resulting in net debt of $582.4 million.
WithrespecttotheCompany’sfinancialposition,weconcludedthattheCompany’scurrentcashandcash
equivalents and forecasted cashflows will besufficient to fund itsoperations and satisfy itsobligations for at least
one year from the issuance of this Quarterly Report onForm 10-Q.
Safety
For ourAustralian Operations, thetwelve-month rolling average Total Reportable Injury FrequencyRate at March
31, 2026,was 4.08,compared toa rateof 3.62at theend ofDecember 31,2025. AtourU.S. Operations,the
twelve-month rolling average TotalReportable Incident Rate at March 31, 2026, was 2.49, compared to a rate of
2.30 at the end of December 31, 2025.
The healthandsafetyof ourworkforceis ournumberone priority,andwe remainfocusedon thesafetyand
wellbeing ofall employeesand contractingparties. Coronadocontinues toimplement safetyinitiatives withthe
goal of improving our safety rates every quarter.
Segment Reporting
In accordance with ASC280, Segment Reporting, wehave adopted the followingreporting segments: Australia
andtheUnitedStates.Inaddition,“OtherandCorporate”isnotareportingsegmentbutisdisclosedforthe
purposes of reconciliation to our consolidated financialstatements.
Coronado Global Resources Inc.
Form 10-Q March 31, 202630
Three Months Ended March 31, 2026 Compared toThree Months Ended March 31, 2025
Summary
The financial and operational results for the three monthsended March 31, 2026 included:
●
Net lossbefore taxfor thethree monthsended March31, 2026,of $330.1millionwas$196.1million
higher compared to anet loss of $134.0million for the three monthsended March 31, 2025,which was
primarily driven by higher operating costs and impairmentcharge partially offset by higher revenues.
●
Average realized Met price per Mt sold of$165.3 for the three months ended March31, 2026, was $14.0
perMtsoldhighercomparedto$151.3perMtsoldforthesameperiodin2025,reflectingstronger
seaborne metallurgical coal pricing, supported by tightersupply conditions during the quarter.
●
Salesvolumeof3.5MMtforthethreemonthsendedMarch31,2026was0.1MMthigherthanthe
comparable period in 2025, despite saleable production being0.5 MMt lower. Lower saleable production
was, primarilydriven bythe temporarysuspension ofour Mammothundergroundoperations, adverse
weather impactingcoal productionand damageto keyinfrastructure atour AustralianOperations, and
curtailed operations at Logan in our U.S. Operations.
●
Adjusted EBITDAloss of$89.4 millionfor thethree monthsended March31, 2026,was $16.5million
higher compared to an Adjusted EBITDA loss of $72.8 million for the same period in 2025. Thiswas due
to higheroperating costs,resulting fromhigher subcontractorand maintenancecosts andunfavorable
foreignexchangecurrencytranslationofourAustralianOperations,partiallyoffsetbyhighercoal
revenues.
●
As ofMarch 31, 2026,the Company hadnet debtof $582.4 million,consisting of $703.2million aggregate
principalamountofinterest-bearingliabilitiesoutstandinglesscashandcashequivalents(excluding
restricted cash) of $120.8 million.
Coronado Global Resources Inc.
Form 10-Q March 31, 202631
Three months ended
March 31,
2026
2025
Change
%
(in US$ thousands)
Revenues:
Coal revenues
$
460,491
$
441,451
$
19,040
4.3 %
Other revenues
6,701
7,797
(1,096)
(14.1)%
Totalrevenues
467,192
449,248
17,944
4.0 %
Costs and expenses:
Cost of coal revenues (exclusive of items
shown separately below)
443,902
390,291
53,611
13.7 %
Depreciation, depletion and amortization
43,337
40,521
2,816
6.9 %
Freight expenses
85,723
60,188
25,535
42.4 %
Stanwell rebate
—
21,853
(21,853)
(100.0)%
Other royalties
30,348
41,353
(11,005)
(26.6)%
Selling, general, and administrative expenses
4,630
8,333
(3,703)
(44.4)%
Totalcosts and expenses
607,940
562,539
45,401
8.1 %
Other income (expenses):
Interest expense, net
(33,752)
(17,898)
(15,854)
88.6 %
Impairment of assets
(159,755)
—
(159,755)
100.0 %
Decrease (increase) in provision for
credit losses
127
(630)
757
(120.2)%
Other, net
4,006
(2,213)
6,219
(281.0)%
Totalother expenses, net
(189,374)
(20,741)
(168,633)
813.0 %
Net loss before tax
(330,122)
(134,032)
(196,090)
146.3 %
Income tax benefit
11,532
37,834
(26,302)
(69.5)%
Net loss attributable to Coronado Global
Resources, Inc.
$
(318,590)
$
(96,198)
$
(222,392)
231.2 %
Coal Revenues
Coal revenueswere $460.5million forthe threemonths endedMarch31, 2026,an increaseof $19.0million,
compared to $441.5 million for the three months ended March 31,2025. This increase was primarily attributable
tohigheraveragerealizedMetcoalprices,reflectingimprovedrestockdemandfromkeyAsiansteelmakers
combined with tightersupply resulting fromadverse weather conditionsin Australia, partiallyoffset by the sales
mixbeingweightedtowardslower-pricedhigherthermalcoalsalesvolumescomparedtothesameperiodin
2025, particularly at our Australia Operations.
Cost of Coal Revenues (Exclusive of Items ShownSeparately Below)
Cost of coalrevenues consistsof costsrelated to producedtons sold,along withchanges inboth the volumes
and carrying values of coal inventory. Cost of coal revenues includes items such as direct operatingcosts, which
includes employee-related costs,materials andsupplies, contractor services,coal handlingand preparation costs
and production taxes.
Totalcostof coalrevenueswas$443.9millionfor thethreemonthsendedMarch31,2026, $53.6million,or
13.7% higher, compared to$390.3 million for the three months ended March 31,2025.
CostofcoalrevenuesforourAustralianOperationsforthethreemonthsendedMarch31,2026,was$45.9
million higher comparedto the sameperiod in 2025,primarily driven byhigher subcontractor costs, higherrepairs
and maintenance costs resulting from damage to key infrastructure (overland conveyor belt) and an unfavorable
average foreignexchange rateson translationof theAustralian Operationsfor thethree monthsended March
31, 2026, of A$/US$ $0.69 compared to $0.63 for the sameperiod in 2025.
Cost of coalrevenues for our U.S.Operations for the threemonths ended March 31,2026, was $7.8 millionlower
compared to the threemonths ended March31, 2025, primarily duehigher project costsfrom production timing
changesatBuchananpartiallyoffsetbylowerlaborcostsandotherassociatedcostsfromtheproduction
curtailment and subsequent idling of our Logan operations.
Coronado Global Resources Inc.
Form 10-Q March 31, 202632
Freight Expenses
Freight expensesrelate tocosts associatedwith railand portproviders, includingtake-or-pay commitmentsat
our Australian Operations,and demurrage costs.Freight expenseswere $85.7 millionfor the threemonths ended
March 31, 2026,an increaseof $25.5 million,compared to$60.2 million forthe sameperiod in 2025.Our U.S.
Operations contributed $24.5million of the increase,driven by higher railand ocean freight chargesand higher
coal sales under CFR terms compared to the three monthsended March 31, 2025.
Stanwell Rebate
The Stanwell rebate was waivedfrom January 1, 2026 in connection with the SecondAmendment Deed.
Other Royalties
Otherroyaltieswere$30.3millioninthethreemonthsendedMarch31,2026,adecreaseof$11.0million
compared to$41.4 millionfor thethreemonthsended March31,2025, drivenby lowerexport coalrevenues
partially offset by an unfavorable average foreignexchange rate on translation of our Australian Operations.
Interest expense, net
Interest expense, net was $33.8 million for the three months ended March 31, 2026, an increase of $15.8 million
comparedto$17.9millionforthethreemonthsendedMarch31,2025.Theincreasewasdrivenbyhigher
averageindebtedness,duetoadditionalborrowingsundertheABLFacility,andcoalprepaymentfacility
combined with lower interest income on cash equivalents and restricted deposits during the three months ended
March 31, 2026, compared to the same period in 2025.
Impairment of Assets
During thethree monthsended March31, 2026,in responseto sustainedweaknessin theU.S. High-volcoal
markets, the Company curtailed andsubsequently idled operations at Logan complexwithin our Company’s U.S.
Operations.TheidlingrepresentedatriggeringeventunderASC360,requiringtheCompanytoassessthe
recoverability ofthe relevantasset groups.The Companydetermined thatthe estimatedundiscounted pre-tax
future cash flows of the asset groupdid not exceed its’ carrying value.Accordingly,the Company measured the
fairvalueoftheassetgroupandrecordedanimpairmentchargeof$159.8millionagainstlong-livedassets,
including property,plant and equipmentto write downthe carrying valueof the assetgroup to itsestimated fair
value.
Other, net
Other,net wasa gainof $4.0million forthe threemonths endedMarch 31,2026, anincrease of$6.2 million,
compared to a loss of $2.2million for the three months endedMarch 31, 2025. The increase wasattributable to
$9.3millionreversalofStanwellrebateaccrualonexportcoalsalesforwhichcashwascollectedinthefirst
quarter of2026 andformed partof theStanwell rebatewaiver applicablefrom January1, 2026,in connection
with the SecondAmendment Deed.This increasewas partiallyoffset byhigher foreignexchange lossesin the
translation ofshort-term inter-entitybalances betweencertain entitieswithin thegroup thatare denominatedin
currencies other than their respective functional currencies.
Income Tax Benefit
Income taxbenefit was$11.5million forthe threemonths endedMarch 31,2026, adecrease of$26.3 million
compared to an income tax benefit of $37.8 million for the three months ended March 31, 2025. The decrease in
income tax expense wasthe result of aneffective tax rateof 3.5% for thethree months endedMarch 31, 2026,
compared to an effective tax rate of 28.2% for thethree months ended March 31, 2025.
Coronado Global Resources Inc.
Form 10-Q March 31, 202633
Supplemental Segment Financial Data
Three Months Ended March 31, 2026 Compared toThree Months Ended March 31, 2025
Australia
Three months ended
March 31,
2026
2025
Change
%
(in US$ thousands)
Sales volume (MMt)
2.2
2.2
—
(4.0)%
Saleable production (MMt)
1.7
2.2
(0.5)
(21.3)%
Totalrevenues ($)
259,088
273,277
(14,189)
(5.2)%
Coal revenues ($)
252,406
266,024
(13,618)
(5.1)%
Average realized price per Mt sold ($/Mt)
117.0
118.3
(1.3)
(1.1)%
Met coal sales volume (MMt)
1.3
1.6
(0.3)
(20.9)%
Met coal revenues ($)
209,992
250,065
(40,073)
(16.0)%
Average realized Met price per Mt sold ($/Mt)
162.4
152.9
9.5
6.2%
Mining cash costs ($)
253,890
198,204
55,686
28.1%
Mining cash cost per Mt produced ($/Mt)
148.8
91.4
57.4
62.8%
Operating costs ($)
354,966
338,367
16,599
4.9%
Operating costs per Mt sold ($/Mt)
164.5
150.5
14.0
9.3%
Segment Adjusted EBITDA ($)
(86,573)
(64,844)
(21,729)
33.5%
CoalrevenuesforourAustralianOperationsdecreasedby$13.6millionlargelyduetoanadversesalesmix
weighted towards thermal coal sales, withMet coal sales volumes declining 0.3MMtwhile thermal coal volumes
increased tooffset thisdecline. Thiswas partiallyoffset byhigher averagerealized Metcoal pricesof $9.5per
MtsoldduringthethreemonthsendedMarch31,2026,comparedtothesameperiodin2025.Saleable
productionof1.7MMtwas0.5MMtlowerthantheprioryearperiod,reflectingthecombinedimpactofthe
temporarysuspensionofMammothundergroundoperationsfollowingafatalincidentinJanuary2026and
adverse wet weather events.Despite lower saleable production,sales volumes was2.2 MMt, supplementedby
a drawdown of saleable coal inventory from December2025.
Operating costswere $16.6million higherfor thethree monthsended March31, 2026compared tothe same
periodin 2025,primarilydriven bymining cashcostsand partiallyoffsetby lowerStanwellrebatesandother
royalties, a result oflower coal revenues andexport sales volumes.The increase in miningcash costs of $55.7
million wasdriven byhigher subcontractorcosts, dueto Mammothramp-up productionand higheroverburden
removal,repairsandmaintenancecostsincludingemergencyrepairoftheoverlandconveyorbelt,andan
estimated $25.0 million adverse impactfrom an unfavorable averageforeign exchange rates ontranslation of our
Australian Operations (A$/US$ $0.69 compared to A$/US$ $0.63 in the prior year period). Mining Cash Cost per
Mt produced was$57.4 higher than thethree months ended March31, 2025, dueto higher gross costscombined
with lower saleable production.
Segment Adjusted EBITDA lossof $86.6 million for the threemonths ended March 31, 2026,was $21.7 million,
or 33.5%, higher compared toa loss of $64.8 millionfor the three months endedMarch 31, 2025, largely driven
by lower coal revenues and higher operating costs.
Coronado Global Resources Inc.
Form 10-Q March 31, 202634
United States
Three months ended
March 31,
2026
2025
Change
%
(in US$ thousands)
Sales volume (MMt)
1.3
1.2
0.1
8.7%
Saleable production (MMt)
1.3
1.3
—
(3.8)%
Totalrevenues ($)
208,104
175,971
32,133
18.3%
Coal revenues ($)
208,085
175,427
32,658
18.6%
Average realized price per Mt sold ($/Mt)
159.9
146.5
13.4
9.1%
Met coal sales volume (MMt)
1.2
1.2
—
2.3%
Met coal revenues ($)
198,281
171,437
26,844
15.7%
Average realized Met price per Mt sold ($/Mt)
168.5
149.0
19.5
13.1%
Mining cash costs ($)
146,857
158,492
(11,635)
(7.3)%
Mining cash cost per Mt produced ($/Mt)
117.0
121.5
(4.5)
(3.7)%
Operating costs ($)
205,007
175,318
29,689
16.9%
Operating costs per Mt sold ($/Mt)
157.5
146.5
11.0
7.5%
Segment Adjusted EBITDA ($)
1,837
378
1,459
386.0%
Coal revenuesfor ourU.S. Operations increasedby $32.7million, or18.6%, to$208.1 millionfor thethree months
ended March31, 2026,compared to thesame period in2025. Theincrease was largelyattributable to anaverage
realized Met coal price of$168.5 per Mt sold,$19.5 higher compared to thethree months ended March 31,2025,
reflecting favorable market conditionsdriven by tight supply and sustained demand during thequarter.
Operating costsof $205.0million were$29.7 millionhigher forthe threemonths endedMarch 31,2026, compared
to the same periodin 2025. The increasewas driven by higher saleson CFR terms inthe 2026 period and higher
freightcosts,partiallyoffsetbylowerminingcashcostsasaresultofthecurtailmentandsubsequentidling
operations at our Logan mine.
Segment AdjustedEBITDA was$1.8 millionfor thethree monthsended March31, 2026,an increaseof $1.4
millioncomparedto$0.4millionforthethreemonthsendedMarch31,2025,primarilydrivenbyhighercoal
revenues, partially offset by higher operating costs.
Corporate and Other Adjusted EBITDA
The following table presents a summary of the componentsof Corporate and Other Adjusted EBITDA:
Three months ended
March 31,
2026
2025
Change
%
(in US$ thousands)
Selling, general, and administrative expenses
$
4,630
$
8,333
$
(3,703)
(44.4)%
Other, net
(16)
17
(33)
(194.1)%
TotalCorporate and Other Adjusted EBITDA
$
4,614
$
8,350
$
(3,736)
(44.7)%
Corporate andother costsof $4.6million forthe threemonths endedMarch31, 2026,was $3.7million lower
compared tothe threemonths endedMarch 31,2025 asthe threemonths endedMarch 31,2026 periodwas
impacted by vestingand settlement ofcertain employee shareplan. Included inthe three monthsended March
31, 2025 were costs incurred to pursue various initiativesto improve liquidity.
Coronado Global Resources Inc.
Form 10-Q March 31, 202635
Mining and Operating Costs for the Three Months Ended March31, 2026 Compared to Three Months
Ended March 31, 2025
A reconciliationof segmentcosts andexpenses, segmentoperatingcosts, andsegment miningcash costsis
shown below:
Three months ended March 31, 2026
(in US$ thousands)
Australia
United
States
Other /
Corporate
Total
Consolidated
Total costs andexpenses
$
372,998
$
229,707
$
5,235
$
607,940
Less: Selling, general and administrative
expense
—
—
(4,630)
(4,630)
Less: Depreciation, depletion and amortization
(18,032)
(24,700)
(605)
(43,337)
Total operating costs
354,966
205,007
—
559,973
Less: Other royalties
(23,936)
(6,412)
—
(30,348)
Less: Stanwell rebate
—
—
—
—
Less: Freight expenses
(41,692)
(44,031)
(85,723)
Less: Coal inventory movement
(28,226)
(6,770)
—
(34,996)
Less: Other costs and non-mining costs
(7,222)
(937)
—
(8,159)
Total mining cashcosts
253,890
146,857
—
400,747
Saleable production volume (MMt)
1.7
1.3
—
3.0
Mining cash cost per Mt produced ($/Mt)
148.8
117.0
—
135.3
Three months ended March 31, 2025
(in US$ thousands)
Australia
United
States
Other /
Corporate
Total
Consolidated
Total costs andexpenses
$
355,125
$
198,538
$
8,876
$
562,539
Less: Selling, general and administrative
expense
—
—
(8,333)
(8,333)
Less: Depreciation, depletion and amortization
(16,758)
(23,220)
(543)
(40,521)
Total operating costs
338,367
175,318
—
513,685
Less: Other royalties
(32,414)
(8,939)
—
(41,353)
Less: Stanwell rebate
(21,853)
—
—
(21,853)
Less: Freight expenses
(40,624)
(19,564)
—
(60,188)
Less: Coal inventory movement
(39,956)
13,342
—
(26,614)
Less: Other costs and non-mining costs
(5,316)
(1,665)
—
(6,981)
Total mining cashcosts
198,204
158,492
—
356,696
Saleable production volume (MMt)
2.2
1.3
—
3.5
Mining cash cost per Mt produced ($/Mt)
91.4
121.5
—
102.7
Average RealizedMetPrice perMtSold forthe ThreeMonthsEnded March31, 2026Comparedto
Three Months Ended March 31, 2025
A reconciliation of the Company’s average realizedMet price per Mt sold is shown below:
Three months ended
March 31,
2026
2025
Change
%
(in US$ thousands)
Met coal sales volume (MMt)
2.5
2.8
(0.3)
(11.3)%
Met coal revenues ($)
408,273
421,502
(13,229)
(3.1)%
Average realized Met price per Mt sold ($/Mt)
165.3
151.3
14.0
9.3%
Coronado Global Resources Inc.
Form 10-Q March 31, 202636
Reconciliation of Non-GAAP Financial Measures
Adjusted EBITDA
Three months ended
March 31,
(in US$ thousands)
2026
2025
Reconciliation to Adjusted EBITDA:
Net loss
$
(318,590)
$
(96,198)
Add: Depreciation, depletion and amortization
43,337
40,521
Add: Interest expense (net of interest income)
33,752
17,898
Add: Other foreign exchange losses
4,055
332
Add: Income tax benefit
(11,532)
(37,834)
Add: Impairment of assets
159,755
—
Add: Losses on idled assets
—
1,835
Add: (Decrease) increase in provision for credit losses
(127)
630
Adjusted EBITDA
$
(89,350)
$
(72,816)
Liquidity and Capital Resources
Overview
Our objective is to maintain a prudent capital structure and to ensure that sufficient liquid assets and funding are
available to meet both anticipated andunanticipated financial obligations, including unforeseen events that could
have anadverse impacton revenuesor costs.Our principalsources offunds arecash andcash equivalents,
cash flow from operations,eligible advance paymentsunder our coalsupply agreements withStanwell and our
ABL Facility.
Our main uses of cash have historically been, and are expected to continue to be, the funding of ouroperations,
working capital,capital expenditures, debtservice obligations,business orasset acquisitions,if permittedand
declared, and payment of distributions to shareholders.
Our ability to generate sufficient cashdepends on our future performance,which may be subject to a numberof
factorsbeyondourcontrol,includinggeneraleconomic,financialconditions,metallurgicalcoalpricing,
competitive dynamics,weather-related impacts,and otherrisks describedin this QuarterlyReport on Form10-
Q, and PartI, Item 1A. “RiskFactors” of our AnnualReport on Form 10-Kfor the year endedDecember 31, 2025,
filed with the SEC and ASX on March 3, 2026.
Sources of liquidity as of March 31, 2026 and December31, 2025 were as follows:
(in US$ thousands)
March 31,
2026
December 31,
2025
Cash and cash equivalents, excluding restricted cash
$
120,786
$
172,781
Total
$
120,786
$
172,781
(1)
Availability under the ABL Facility was fully drawn as of March 31, 2026. Availability under the ABL Facility is limited to an
eligible borrowing base, determined by applying customary advance rates to eligible accounts receivable and inventory.
Our total indebtedness as of March 31, 2026 and December 31,2025 consisted of the following:
(in US$ thousands)
March 31,
2026
December 31,
2025
Current installments of interest bearing liabilities
$
1,889
$
1,794
Interest bearing liabilities, excluding current installments
701,266
695,069
Current installments of other financial liabilities, Stanwellliabilities and other
finance lease obligations
9,900
9,488
Other financial liabilities, Stanwell liabilities and financelease obligations,
excluding current installments
427,859
383,800
Total
$
1,140,914
$
1,090,151
Coronado Global Resources Inc.
Form 10-Q March 31, 202637
Liquidity
As of March 31, 2026, ouravailable liquidity, consisting of cash and cash equivalents (excluding restricted cash),
was $120.8 million.
Coronado continues to undertake initiatives to enhanceliquidity and reduce operating and capital costs.
Withrespecttoourfinancialcondition,wehaveconcludedthatourcurrentcashandcashequivalentsand
forecasted cashflows will be sufficient to fundour operations and satisfy ourobligations for at least one yearfrom
the issuance date of this Quarterly Report on Form 10-Q.
Our forecastsare subjectto theachievement ofproduction targets,and otherfactors beyondour control,including
general economic conditions, metallurgical coal pricing, competitive dynamics and weather-related impacts. Our
working capital requirementsin the short-to-medium termare also dependent onvariations in these factorsand
the preparation of forecasts requires management judgement.
Cash and cash equivalents
Cashandcashequivalentsareheldinmulticurrency,interest-bearingbankaccountsavailabletobeusedto
servicetheworkingcapitalneedsoftheCompany.Cashbalancessurplustoimmediateworkingcapital
requirementsareinvestedinshort-term,interest-bearingdepositaccountsorusedtorepayinterest-bearing
liabilities.
ABL Facility
As ofMarch31,2026, theaggregate principalamountoutstandingundertheABL Facilitywas$278.3million
(A$406.6 million), including $13.3 million of foreign currencytranslation.
The ABL Facility isa revolving credit facilitythat matures in fiveyears. Availability under theABL Facility is limited
to an eligibleborrowing base,determined byapplying customaryadvance ratesto eligible accountsreceivable
and inventory.Borrowings underthe ABL Facilitybear interestat a rateof 9% perannum, which mayincrease
to 12% per annum depending on the level of the BorrowingBase Ratio.
Amounts outstanding underthe ABL Facilityare secured by(i) a first-prioritylien on theABL Priority Collateral,
and (ii) a second-priority lienon substantially all of theCompany’s assets and the assets ofthe Guarantors, other
than the ABL Priority Collateral.
TheABLFacilitycontainscustomaryrepresentationsandwarrantiesandaffirmativeandnegativecovenants
including, among others, a quarterly BorrowingBase Ratio test and, from December 31,2027, the maintenance
of a gearing ratio and interest coverage ratio.
TheABL Facilityprovidesfor customaryeventsofdefaultthatmaytriggercertainrepaymentobligationsand
review events. A review event willoccur under the ABL Facility ifthe Borrowing Base Ratio is belowthe specified
minimum threshold of 80%. Following the occurrence of a review event, if Stanwell is not satisfied with the result
of its discussionswith theBorrowers, Stanwellmay requirethe Borrowersto repaythe outstanding borrowings
in an aggregate amount sufficient to restore theBorrowing Base Ratio to the specified minimum threshold.
In the event of a default by the Company (beyond any applicable grace or cure period, if any), the Administrative
Agent may and, at the directionof Stanwell, shall declare allamounts owing under the ABLFacility immediately
due andpayable, terminateStanwell’scommitmentto makeloans underthe ABLFacility and/orexercise any
and all remedies and other rights under the ABL Facility.
Refer to Part I, Item 1, Note 10. “Interest Bearing Liabilities”for further information.
9.250% Senior Secured Notes
As ofMarch 31,2026, theoutstanding amountof ourNotes was$400.0 million.The Noteswere issuedat par
and bearinterest ata rateof 9.250%per annum.Interest onthe Notesis payablesemi-annually inarrears on
April 1 and October 1 of each year, which began on April 1, 2025.The Notes mature on October 1, 2029 and are
senior secured obligations of the Issuer.
TheIndenturecontainscustomarycovenantsforhighyieldbonds,including,butnotlimitedto,limitationson
investments,liens,indebtedness,assetsales,transactionswithaffiliatesandrestrictedpayments,including
payment of dividends on capital stock.
Coronado Global Resources Inc.
Form 10-Q March 31, 202638
TheIndenturecontainscustomaryeventsofdefault,includingfailuretomakerequiredpayments,failureto
comply withcertain agreements orcovenants, failure topay foracceleration of certainother indebtedness, certain
events ofbankruptcy andinsolvency, and failure topay certainjudgments. Anevent ofdefault underthe Indenture
will allow either thetrustee or the holdersof at least 25%in aggregate principal amountof the then-outstanding
Notestoaccelerate,orincertaincases,willautomaticallycauseaccelerationof,theamountsdueunderthe
Notes.
As of March 31, 2026, the Company was in compliance withall applicable covenants under the Indenture.
Refer to Part I, Item 1, Note 10. “Interest Bearing Liabilities”for further information.
Stanwell – Prepaid Coal Supply Liability
On June10, 2025,the Companyand Stanwellentered intothe FirstAmendment tothe NCSAand theACSA,
whereby Stanwellprovided near-termliquidity tothe Company,including aprepayment forthermal coaland a
rebate waiver and deferral fromApril 2025 to December2025, both of which willbe settled through reductionof
the grossproceeds tobe receivedon thephysical deliveryof thermalcoal toStanwell, expectedto startin the
first half of 2027, of up to 0.8 MMt per annum over five years, or until such time that the obligation is fully settled.
This prepaid coal supply liability bears interest at 13%per annum.
As of March31, 2026, thecarrying value ofthe Stanwellprepaid coal supplyliability,including the prepayment
and the rebate waiver and deferral liability,was $171.6 million (A$250.7 million).
Refer to Part I, Item 1, Note 11.“Stanwell Liabilities” for further information.
Stanwell Prepayment and Deferred Payment Balance
On November27, 2025,the Companyentered intothe SecondAmendmentDeed that,among othermatters,
amended theterms of theACSA andthe NCSA towaive rebate amountsthat would haveotherwise been payable
by the Company underthe ACSA from January 1,2026,and to provide prepayments by Stanwellto the Company
in relation toits future annualnominated contracttonnage underthe ACSAand the NCSAin months whenthe
Company’s liquidity is below $250.0 million.
The value of the Prepayment andDeferred Payment Balance will besettled through delivery ofcoal to Stanwell
during theterm ofthe NCSAin monthswhen theCompany’sliquidity exceeds$300.0 million.In addition,the
Company mayfrom timeto timemake additionalpayments toreduce thePrepaymentand DeferredPayment
Balance, includingwhen theCompanymakes permitteddistributionsto shareholders.Where thePrepayment
andDeferredPaymentBalanceremainsoutstandingafterthefinaldeliverydatepursuanttotheNCSA
(December 31,2043), theoutstanding balancewill besettled incash inmonths whenthe Company’sliquidity
exceeds $300.0 million until the balance is fully repaid.
As of March31, 2026,the carryingvalue of thePrepayment andDeferred PaymentBalance was$25.8 million
and classified as non-current financial liability.
TheACSAandtheNCSAaresecuredbymortgagesregisteredovertheCurraghminetenements,orthe
Tenement Lien, at the Queensland Governmentlevel and athird-priority lien onsubstantially all ofthe Company's
assets. The TenementLien operates independently of, and is not subordinated to, the Company's other secured
debt obligations, andno third partymay acquire theCurragh mine tenementswithout simultaneously assuming
the coal supply obligations to Stanwell.
If a changeof control ofthe Companyis proposed withintwo years ofNovember 27,2025, the Companymust
obtain Stanwell’sconsent and,before thechange ofcontrol occurs,pay Stanwellthe waivedrebate amounts,
together with contractual interest from thedates such amounts would otherwise havebeen payable. Additionall
y,
ifanentitythatcontrolledtheCompanyas atNovember27,2025 ceasestocontroltheCompanyby wayof
disposal of an interest in the Company of 20% or more without Stanwell’s consent within two years of November
27, 2025, then theCompany must immediatelypay Stanwell the waivedrebate amounts, togetherwith interest.
As of March 31, 2026, cumulativerebate amounts of $23.6million would have been payableabsent the waiver.
No liability was recognized as of March 31,2026 in respect of the waived rebate amounts becausethe Company
had not beenrequired to seek Stanwell’s consentin connection with anyproposed change or cessationof control
as of that date.
Refer to Part I, Item 1, Note 11.“Stanwell Liabilities” for further information.
Loan – Curragh Housing Transaction
In2024,theCompanycompletedtheCurraghHousingTransaction.Theproceedsreceivedof$23.0million
(A$34.6 million) for the failed sale and leaseback of property, plant and equipmentowned by the Company were
recognized as “Other Financial Liabilities” on the Company’sConsolidated Balance Sheets.
Coronado Global Resources Inc.
Form 10-Q March 31, 202639
In connection with the Curragh Housing Transaction,the Company borrowed $26.9 million (A$40.4 million) from
the same counterparty, which was recorded as “Interest Bearing Liabilities”in the Consolidated Balance Sheets.
The Other FinancialLiabilities and InterestBearing Liabilitiesrecorded in connectionwith the CurraghHousing
Transaction arepayable inequal monthly installmentsover a periodof ten years,with an effectiveinterest rate
of 14.14%.
Refer to Part I, Item1. Note 10.“Interest Bearing Liabilities”and Note 12. “OtherFinancial Liabilities” for further
information.
Finance leases
The Company enters into various finance lease agreements in the ordinary course of business.Our total finance
lease commitmentswere $25.1million asat March31, 2026.The termsof theoutstanding leaseagreements
mature through August 2029 and bear fixed interest ratesranging from 8.6% to 14.0%.
Surety bonds, letters of credit and bank guarantees
We arerequired toprovide financialassurances andsecurities to satisfycontractual andother requirementsin
the normal course ofbusiness. Some of these assurances areprovided to comply withstate or other government
agencies’ statutes and regulations.
FortheU.S.Operations,inordertoprovidetherequiredfinancialassuranceforpostminingreclamation,we
generallyuse suretybonds.Wealsouse suretybondsand banklettersof creditto collateralizecertainother
obligations including contractualobligations under workers’compensation insurance. Asof March 31, 2026,we
had outstanding surety bonds of $20.1 million and outstandingbank guarantees of $10.0 million.
FortheAustralianOperations,asatMarch31,2026,wehadbankguaranteesoutstandingof$36.6million
primarily in respect of certain rail and port take-or-payarrangements of the Company.
As atMarch 31,2026,wehadinaggregatetotaloutstandingbankguaranteesof$46.6millionto secureour
obligations and commitments.
Future regulatorychangesrelatingtotheseobligationsor deteriorationofourcreditriskrating couldresultin
increased obligations, additional costs or additional collateralrequirements.
Restricted deposits – cash collateral
As requiredby certainagreements, wehad totalcash collateralin theform ofdeposits of$144.4 millionas of
March31,2026toprovideback-to-backsupportforbankguarantees,financialpayments,otherperformance
obligations,variousotheroperatingagreementsandcontractualobligationsunderworkerscompensation
insurance.Thesedepositsarerestrictedandclassifiedasnon-currentassetsintheunauditedCondensed
Consolidated Balance Sheets.
Future regulatory changesin relation tothese obligations ordeterioration of ourcredit risk ratingcould result in
increased obligations, additional costs or additional collateralrequirements.
Dividends
OurdividendpolicyandthepaymentoffuturecashdividendsaresubjecttothediscretionofourBoardof
Directors.Thedecisionastowhetherornotadividendwillbepaidissubjecttoanumberofconsiderations
including the general business environment,operating results, cash flows,future capital requirements, regulatory
and contractual restrictions, as well as applicable covenants underthe debt and other agreements and any other
factors the Board of Directors may consider relevant.
The SecondAmendment Deedentered withStanwell includesrestrictions onour abilityto paydistributions to
shareholders (e.g., a dividend), such that weare required to maintain a minimum cashliquidity of $300.0 million
following paymentof suchdistribution, therepurchaseof theNotes inconnectionwith thedistributionand the
payment of an equal or greateramount (up to a maximum of3 times) than the distributionbeing used to reduce
the Prepayment and Deferred Payment Balance owedto Stanwell.
Capital Requirements
Our main uses of cashhave historically been the funding ofour operations, working capital, capital expenditures,
and the paymentof interestand dividends. Weintend to usecash to funddebt service paymentsof our Notes,
the ABLFacilityand ourother indebtednessto fundoperating activities,workingcapital, capitalexpenditures,
including organic growth projects, business or assetsacquisitions and, if declared, payment of dividends.
Coronado Global Resources Inc.
Form 10-Q March 31, 202640
Historical Cash Flows
The following tablesummarizes our cashflows for thethree months endedMarch 31, 2026and 2025, asreported
in the accompanying consolidated financial statements:
Three months ended
March 31,
(in US$ thousands)
2026
2025
Net cash used in operating activities
$
(40,944)
$
(37,265)
Net cash used in investing activities
(35,030)
(70,919)
Net cash from (used in) financing activities
23,554
(1,544)
Net change in cash and cash equivalents
(52,420)
(109,728)
Effect of exchange rate changes on cash and cashequivalents
425
(195)
Cash and cash equivalents at beginning of period
173,032
339,625
Cash and cash equivalents at end of period
$
121,037
$
229,702
Operating Activities
Net cash used in operating activitieswas $40.9 million for the three monthsended March 31, 2026, an increase
of $3.7 million compared to$37.3 million used during thethree months ended March 31, 2025.The increase was
primarilydrivenbyEBITDAlossof$16.5millionhigherforthethreemonthsendedMarch31,2026,partially
offset by higher customer collection and atax refund of $3.8 million.
Investing Activities
Net cash used in investing activities was $35.0 million
for the three months ended March 31, 2026, compared to
$70.9millionforthethreemonthsendedMarch31,2025,andlargelyconsistedofcashspentoncapital
expenditures of $34.1million, of which$13.3 million relatedto the AustralianOperations and$20.8 million was
relatedtoourU.S.Operations.LowercapitalexpenditureforthethreemonthsendedMarch31,2026,was
primarily due to the completion of our Mammoth andBuchanan expansion projects during 2025.
Financing activities
Net cash from financing activitieswas $23.6 million for the threemonths ended March 31, 2026.Included in net
cash provided by financing activities were proceeds of $26.2 millionrelating to advance payments from Stanwell
inconnectionwiththeSecondAmendmentDeed,partiallyoffsetbyrepaymentofinterestbearingandother
financial liabilities of $0.8 million and repayment of financelease obligations of $1.8 million.
Contractual Obligations
There were no material changes to the Company’s contractualobligations as previously disclosed in our Annual
Report on Form 10-K for the year ended December31, 2025, filed with the SEC and ASX on March 3, 2026.
Critical Accounting Policies and Estimates
The preparationofourfinancialstatementsinconformitywithU.S. GAAPrequiresus tomakeestimatesand
assumptions that affect thereported amounts of assets and liabilitiesat the date of the financial statementsand
the reportedamounts ofrevenue andexpenses duringthe reportingperiod. Onan ongoing basis,we evaluate
our estimates. Our estimates arebased on historical experienceand various other assumptionsthat we believe
are appropriate, the results ofwhich form the basisfor making judgments about thecarrying values of assets and
liabilitiesthatarenotreadilyapparentfromothersources.Actual resultsmaydifferfromtheseestimates.All
critical accounting estimatesand assumptions, aswell as the resultingimpact to our financialstatements, have
been discussed with the Audit, Governance and Risk Committeeof our Board of Directors.
Ourcriticalaccountingpoliciesare discussedinItem7. “Management’sDiscussionandAnalysisof Financial
Condition and Results ofOperations” of our AnnualReport on Form 10-K forthe year ended December31, 2025,
filed with the SEC and ASX on March 3, 2026.
Newly Adopted Accounting Standards and AccountingStandards Not Yet Implemented
SeeNote2.(a)“NewlyAdoptedAccountingStandards”andNote2.(b)“AccountingStandardsNotYet
Implemented” to our unaudited condensed consolidatedfinancial statements for further information.
Coronado Global Resources Inc.
Form 10-Q March 31, 202641
ITEM 3.QUANTITATIVEAND QUALITATIVEDISCLOSURES ABOUT MARKET RISK
Our activitiesexpose ustoa varietyof financialrisks, suchas commodityprice risk,interest raterisk, foreign
currency risk, liquidity risk and creditrisk. The overall risk management objective isto minimize potential adverse
effects on our financial performance from thoserisks which are not coal price related.
We managefinancial riskthrough policiesand proceduresapproved byour Boardof Directors.These specify
the responsibilityof theBoardof Directorsandmanagementwith regardto themanagementof financialrisk.
Financial risks aremanaged centrally byour financeteam under thedirection of theGroup Chief FinancialOfficer.
The finance team manages risk exposures primarily through delegated authority limits approvedby the Board of
Directors. The finance team regularly monitorsour exposure to these financial risks and reportsto management
andtheBoardofDirectorsonaregularbasis.Policiesarereviewedatleastannuallyandamendedwhere
appropriate.
We may usederivative financial instruments suchas forward fixedprice commodity contracts, interestrate swaps
andforeignexchangeratecontractstohedgecertainriskexposures.Derivativesforspeculativepurposesis
strictly prohibited by the Treasury Risk Management Policy approved by our Board ofDirectors. We use different
methodstomeasuretheextenttowhichweareexposedtovariousfinancialrisks.Thesemethodsinclude
sensitivity analysisin thecase ofinterest rates,foreign exchangeand otherprice risksand aginganalysis for
credit risk.
Commodity Price Risk
Coal Price Risk
We areexposed to domesticand global coalprices. Our principalphilosophy is thathedging coalprices would
not be in the long-term interest of our stockholders. Therefore, any potential hedging of coal prices through long-
termfixedpricecontractsissubjecttotheapprovalofourBoardofDirectorsandwouldonlybeadoptedin
exceptional circumstances.
The expectationof futureprices forcoal dependsupon manyfactors beyondour control.Met coalhas beena
volatile commodity over thepast ten years. Thedemand and supply in theMet coal industry changesfrom time
totime.Therearenoassurancesthatoversupplywillnotoccur,thatdemandwillnotdecreaseorthat
overcapacity will notoccur,which could causedeclines in theprices of coaland could havea material adverse
effect on our financial condition and resultsof operations.
Access tointernational marketsmay besubject toongoing interruptionsand tradebarriers dueto policiesand
tariffsofindividualcountries.Wemayormaynotbeabletoaccessalternatemarketsforourcoalshould
interruptionsortradebarriersoccurinthefuture.TheinabilityofMetcoalsupplierstoaccessinternational
markets would likely result in an oversupply of Met coal and may result in a decrease in prices or the curtailment
of production.
We manageour commodityprice riskfor our non-trading,thermal coalsales throughthe useof long-termcoal
supply agreements in our U.S. Operations. InAustralia, thermal coal is sold toStanwell under a long-term supply
contract.See Item1A.“RiskFactors—Restrictionsandlimitationsrelatedto ourcoal supplyagreementswith
Stanwell may adverselyimpact our strategy, financial condition, resultsof operations and business”in our Annual
Report on Form 10-K filed with the SEC and ASX onMarch 3, 2026.
Sales commitments in theMet coal market are typicallynot long-term in nature,and we are therefore subjectto
fluctuations inmarket pricing.Certain coalsales areprovisionally pricedinitially.Provisionally pricedsales are
those for which price finalization,referenced to the relevant index,is outstanding at the reportingdate. The final
sales price is determined within 7 to 90 days after delivery to the customer.As of March 31, 2026, we had $21.7
millionofoutstandingprovisionallypriced receivablessubjectto changesintherelevantpriceindex.Ifprices
decreased10%,theseprovisionallypricedreceivableswoulddecreaseby$2.2million.SeeItem1A.“Risk
Factors—Our profitabilitydepends uponthe priceswe receivefor ourcoal. Pricesfor coalare volatileand can
fluctuate widelybased upona numberof factorsbeyond ourcontrol” inour AnnualReport onForm 10-Kfiled
with the SEC and ASX on March 3, 2026.
Diesel Fuel
We maybe exposedto pricerisk inrelation toother commoditiesfrom timeto timearising fromraw materials
used in ouroperations (suchas gasor diesel).The expectationof futureprices fordiesel dependsupon many
factors beyond ourcontrol. See PartII, Item 1A.“Risk Factors—Ourbusiness maybe materially andadversely
affectedbytheimpactontheglobaleconomydueto,amongotherevents,significantgeopoliticaltensions,
including ongoing civil unrest or wars, or pandemics” inthis Quarterly Report on Form 10-Q.
Thesecommoditiesmaybehedgedthroughfinancialinstrumentsiftheexposureisconsideredmaterialand
where the exposure cannot be mitigated through fixed price supplyagreements.
Coronado Global Resources Inc.
Form 10-Q March 31, 202642
The fuelrequiredforour operationsforthe remainderof fiscalyear2026willbepurchasedunderfixed-price
contracts or on a spot basis.
Interest Rate Risk
Interest rate risk is the risk that a change in interest rateson our borrowing facilities will have an adverse impact
onourfinancialperformance,investmentdecisionsandstockholderreturn.Ourobjectivesinmanagingour
exposuretointerestratesincludeminimizinginterestcostsinthelongterm,providingareliableestimateof
interest costsfor theannual budgetand ensuringthat changesin interestrates willnot havea materialimpact
on our financial performance.
As of March 31, 2026, we had $1,141.0 million of fixed rate borrowings, Notes, other financial liabilities, Stanwell
liabilities and finance leases and no variable-rate borrowingsoutstanding.
We currently do not hedge against interest ratefluctuations.
Foreign Exchange Risk
A significant portion of oursales are denominated in US$.Foreign exchange risk isthe risk that our earningsor
cash flows are adversely impacted by movements in exchangerates of currencies that are not in US$.
Our main exposureis to theA$-US$ exchange ratethrough our AustralianOperations, which havepredominantly
A$ denominated costs. Greater than 80% of expenses incurred at our Australian Operations are denominated in
A$. Approximately 20%of our Australian Operations’ purchases aremade with reference to US$,which provides
a natural hedge against foreignexchange movements on thesepurchases (including fuel, severalport handling
charges, demurrage,purchased coaland someinsurance premiums).Appreciation ofthe A$against US$will
increase our Australian Operations’ US$ reported costbase and reduce US$ reported net income.
WeenteredintoforwardexchangecontractstomanagetheforeigncurrencyexposureofourAustralian
Operations by selling US$generated from exportcoal sales revenue atCurragh and purchasingA$ required to
settleCurragh’sA$operatingcosts.Thefairvalueoftheforwardforeigncurrencyderivativecontractsasof
March 31, 2026 was a liability of $0.1 million.
For ourAustralian Operations,we translateall monetaryassets andliabilities at theperiod endexchange rate,
all non-monetaryassets andliabilities athistoricalratesand revenueand expensesat theaverage exchange
rates in effect duringthe periods. The neteffect of thesetranslation adjustments isshown in the accompanying
Consolidated Financial Statements within componentsof net income.
For the unhedged portion of US$ required to purchaseA$ to settle our Australian Operations’ operating costs,a
10%increaseintheA$toUS$exchangeratewouldhaveincreasedreportedtotalcostsandexpensesby
approximately $31.2 million for the three months endedMarch 31, 2026.
Credit Risk
Credit risk is the risk ofsustaining a financial lossas a result of a counterpartynot meeting its obligationsunder
a financial instrument or customer contract.
We are exposedto credit riskwhen we have financialderivatives, cash deposits,lines of credit, lettersof credit
or bank guaranteesin place withfinancial institutions.
To
mitigate against credit riskfrom financial counterparties,
we have minimum credit rating requirements with financialinstitutions where we transact.
Wearealsoexposedtocounterpartycreditriskarisingfromouroperatingactivities,primarilyfromtrade
receivables. Customers who wish to tradeon credit terms are subject to creditverification procedures, including
an assessment of their independent credit rating, financial position, past experience and industry reputation.We
monitor the financial performanceof counterparties on a routinebasis to ensure creditthresholds are achieved.
Where required, we will request additional creditsupport, such as letters of credit,to mitigate against credit risk.
Creditriskismonitoredregularly,andperformancereportsareprovidedtoourmanagementandBoardof
Directors.
As of March 31,2026, we had financialassets of $484.3 million,consisting of cash andcash equivalents, trade
and other receivables and restricteddeposits, all of whichare exposed to varied levelsof counterparty credit risk.
ThesefinancialassetshavebeenassessedunderASC326,
FinancialInstruments–CreditLosses
,anda
provision for credit losses of $5.3 million was recordedas of March 31, 2026.
Coronado Global Resources Inc.
Form 10-Q March 31, 202643
ITEM 4.CONTROLS AND PROCEDURES
Disclosure Controls and Procedures
Wemaintaindisclosurecontrolsandproceduresthataredesignedtoensurethatinformationrequiredtobe
disclosed in our Exchange Act reports is recorded, processed, summarized andreported within the time periods
specifiedintheSEC’srulesandforms,andthatsuchinformationisaccumulatedandcommunicatedtoour
management, including the Interim ChiefExecutive Officer and the Group ChiefFinancial Officer, as appropriate,
to allow timely decisions regardingrequired disclosure basedsolely on the definitionof “disclosure controls and
procedures” in Rule 13a-15(e) promulgated under theExchange Act. In designing and evaluating the disclosure
controlsandprocedures,managementrecognizedthatanycontrolsandprocedures,nomatterhowwell
designed and operated, can provide only reasonableassurance of achieving the desired controlobjectives, and
management necessarily wasrequired toapply its’judgment in evaluatingthe cost-benefitrelationship ofpossible
controls and procedures.
As of the endof the periodcovered by this QuarterlyReport on Form10-Q, we carriedout an evaluationunder
the supervision andwith the participationof our management,including the InterimChief Executive Officerand
the Group Chief Financial Officer, of the effectivenessof the design and operation of our disclosure controls and
procedures. Basedon theforegoing, theInterim ChiefExecutive Officerand theGroup ChiefFinancial Officer
concluded that our disclosure controls and procedureswere effective.
Changes to Internal Control over Financial Reporting
During thefiscal quarter coveredby thisQuarterly Report onForm 10-Q,there wereno changesin theCompany's
internalcontroloverfinancialreporting,assuchtermisdefinedinRule13a-15(f)oftheExchangeAct,that
materiallyaffected,orarereasonablylikelytomateriallyaffect,theCompany’sinternalcontroloverfinancial
reporting.
Coronado Global Resources Inc.
Form 10-Q March 31, 202644
PART II – OTHERINFORMATION
ITEM 1.LEGAL PROCEEDINGS
We are subject to various legal andregulatory proceedings. For a description of our significant legalproceedings
refertoNote 18. “Contingencies” totheunauditedcondensedconsolidatedfinancialstatementsincludedin
Part I, Item 1. “FinancialStatements” ofthis QuarterlyReport onForm 10-Q,which informationis incorporated
by reference herein.
ITEM 1A.RISK FACTORS
Except as set forth below,there were no material changesto the risk factors previouslydisclosed in Part I, Item
1A, “Risk Factors,” ofour Annual Report onForm 10-K for theyear ended December 31,2025, filed with theSEC
and ASX on March 3, 2026.
Ourbusinessmaybemateriallyandadverselyaffectedbytheimpactontheglobaleconomydueto,
among other events, significant geopolitical tensions,including ongoing civil unrest or wars.
Geopolitical tensions, including ongoing civil unrest and wars, and globalpandemics or widespread public health
concerns can have asignificant impact onglobal markets, includinginfluencing both thesupply of anddemand
for coal we sell into the export market and the cost or availability of supplies we consume in producingour coal.
For example, globalmarkets continue toexperience volatility anddisruptions as aresult of the militaryinvasion
of Ukraine by Russia.This military conflicthas led to ongoingsanctions and otherpenalties being leviedby the
United States, the European Union and othercountries against Russia, including expansive bans onimports and
exports of products to and from Russia.
In addition,recent armedconflicts inthe MiddleEast, includingconflict involvingthe UnitedStates, Israel,and
Iran, has increased instability in global energy,shipping and financial markets.
TheconflictintheMiddleEasthashadsignificantimpactonglobaltradeandenergyandfinancialmarkets.
DisruptionstomaritimetrafficthroughtheStraitofHormuz,throughwhichapproximately20%oftheglobal
seaborne oil tradetransits have contributedto higher andmore volatile crudeoil prices, hasincreased the cost
of dieselfuel requiredfor ouroperation andmay continueto doso. Aprolonged conflictcould furtherincrease
dieselfuelpricesandadverselyaffecttheavailabilityofdieselfuelneededforouroperations,whichcould
negatively impact our business and results of operations.
Theextentanddurationofsuchconflictscouldleadtofurtherpoliticalandsocialinstability,instabilityinthe
financialmarkets,supplychaininterruptions,marketdisruptions,includingcontinuedvolatilityincommodity
prices, such as the pricesof the coal we selland diesel fuel we purchase, andhigher inflation, which could cause
a material adverse impact to our results of operations, financialcondition and cash flows.
ITEM 2.UNREGISTERED SALES OF EQUITY SECURITIESAND USE OF PROCEEDS
None.
ITEM 3.DEFAULTSUPON SENIOR SECURITIES
None.
ITEM 4. MINE SAFETY DISCLOSURES
Safety is the cornerstone of the Company’s values and is the number one priorityfor all employees at Coronado
Global Resources Inc.
Our U.S. Operationsinclude multiple miningcomplexes acrossthree states andare regulated byboth the U.S.
Mine Safetyand HealthAdministration, orMSHA, andstate regulatoryagencies. Underregulations mandated
by the Federal Mine Safety and Health Act of 1977, or the Mine Act, MSHA inspects our U.S. mines on a regular
basis and issues various citations and orders when it believesa violation has occurred under the Mine Act.
In accordancewithSection 1503(a) oftheDodd-FrankWallStreetReformandConsumerProtectionActand
Item104ofRegulationS-K(17CFR229.104),eachoperatorofacoalorothermine intheUnitedStatesis
required to report certain mine safety resultsin its periodic reports filed with the SEC under theExchange Act.
Coronado Global Resources Inc.
Form 10-Q March 31, 202645
InformationpertainingtominesafetymattersisincludedinExhibit 95.1attachedtothisQuarterlyReporton
Form 10-Q. The disclosures reflect the UnitedStates mining operations only, as these requirements do notapply
to our mines operated outside the United States.
ITEM 5.OTHER INFORMATION
During the quarterended March 31,2026, no directoror officer (asdefined in Rule 16a-1(f)promulgated under
the ExchangeAct)of theCompany
adopted
or
terminated
a “Rule10b5-1trading arrangement”or “
non-Rule
10b5-1
trading arrangement” (as each term is defined in Item408 of Regulation S-K).
Coronado Global Resources Inc.
Form 10-Q March 31, 202646
ITEM 6.EXHIBITS
The following documents are filed as exhibits hereto:
Exhibit No.
Description of Document
3.1
3.2
10.1
10.2
10.3
10.4
15.1
31.1
31.2
32.1
95.1
101.INS
Inline XBRL Instance Document
101.SCH
Inline XBRL TaxonomyExtension Schema Document
101.CAL
Inline XBRL TaxonomyExtension Calculation Linkbase Document
101.DEF
Inline XBRL TaxonomyExtension Definition Linkbase Document
101.LAB
Inline XBRL TaxonomyExtension Label Linkbase Document
101.PRE
Inline XBRL TaxonomyExtension Presentation Linkbase Document
104
Cover Page Interactive Data File (formatted as InlineXBRL and contained in Exhibit 101)
Coronado Global Resources Inc.
Form 10-Q March 31, 202647
SIGNATURES
Pursuant to the requirementsof the Securities ExchangeAct of 1934, the registranthas duly caused thisreport
to be signed on its behalf by the undersigned, thereuntoduly authorized.
Coronado Global Resources Inc.
By:
/s/ Barend J. van der Merwe
Barend J. van der Merwe
Group Chief Financial Officer (as duly authorized officer
and as principal financial officer of the registrant)
Date: May 11, 2026