v3.25.2
Contingencies
 6 Months Ended
Jun. 30, 2025
Contingencies [Abstract]  
Contingencies
17.
 
Contingencies
Surety bond, letters of credit and bank guarantees
In the
 
normal course
 
of business,
 
the Company
 
is a
 
party to
 
certain guarantees
 
and financial
 
instruments with
off-balance sheet risk, such as bank
 
guarantees, letters of credit and performance
 
or surety bonds.
No
 
liabilities
related
 
to
 
these
 
arrangements
 
are
 
reflected
 
in
 
the
 
Company’s
 
unaudited
 
Condensed
 
Consolidated
 
Balance
Sheets. Management does
 
not expect any
 
material losses to
 
result from these
 
guarantees or off-balance
 
sheet
financial instruments.
For
 
the U.S.
 
Operations,
 
in
 
order to
 
provide
 
the required
 
financial
 
assurance
 
for post
 
mining
 
reclamation,
 
the
Company generally uses
 
surety bonds. The
 
Company uses surety
 
bonds and bank
 
letters of credit
 
to collateralize
certain other
 
obligations including
 
contractual obligations
 
under workers’
 
compensation insurances.
 
As of June
30,
 
2025,
 
the
 
Company
 
had
 
outstanding
 
surety
 
bonds
 
of
 
$
43.8
 
million.
 
Subsequent
 
to
 
June
 
30,
 
2025,
 
the
Company was
 
required to
 
cash collateralize
 
$
20.3
 
million of
 
its surety
 
bonds in
 
connection with
 
its contractual
obligations under workers’ compensation insurances.
For the
 
Australian
 
Operations,
 
as at
 
June
 
30, 2025,
 
the Company
 
had bank
 
guarantees
 
outstanding
 
of $
25.8
million primarily in respect of certain rail and port take-or-pay
 
arrangements of the Company.
 
Future regulatory changes relating to
 
these obligations or deterioration of
 
the Company’s credit risk
 
rating could
result in increased obligations, additional costs or additional
 
collateral requirements.
Restricted deposits – cash collateral
As required by certain agreements, the Company had total cash collateral in
 
the form of deposits of $
99.7
 
million
and $
68.5
 
million as of June 30, 2025 and December 31, 2024, respectively, to provide
 
back-to-back support for
bank guarantees, other performance
 
obligations, various other operating agreements and
 
contractual obligations
under workers compensation
 
insurance.
 
These deposits are
 
restricted and classified
 
as “Non-current assets”
 
in
the unaudited Condensed Consolidated Balance Sheets.
 
Future
 
regulatory
 
changes
 
in
 
relation
 
to
 
these
 
obligations
 
or
 
deterioration
 
of
 
the
 
Company’s
 
credit
 
risk
 
rating
could result in increased obligations, additional costs or
 
additional collateral requirements.
 
Stamp duty on Curragh acquisition
The Company,
 
based on
 
legal and
 
valuation advice
 
obtained, continues
 
to dispute
 
a portion
 
of the
 
stamp duty
paid
 
on
 
the
 
acquisition
 
of
 
the
 
Curragh
 
mine
 
in
 
2018
 
of
 
$
37.9
 
million
 
(A$
60.4
 
million).
 
The
 
Company
 
filed
 
an
appeal with the Supreme Court
 
of Queensland on March 11, 2024. The outcome of
 
the appeal remains uncertain
and as such, no contingent asset has been recognized at June
 
30, 2025.
From time to time, the
 
Company becomes a
 
party to other legal
 
proceedings in the
 
ordinary course of business
in Australia, the U.S. and other countries where the Company does business.
 
Based on current information, the
Company believes that such other pending
 
or threatened proceedings are likely to
 
be resolved without a material
adverse
 
effect
 
on
 
its
 
financial
 
condition,
 
results
 
of
 
operations
 
or
 
cash
 
flows.
 
In
 
management’s
 
opinion,
 
the
Company is not currently
 
involved in any legal
 
proceedings, which individually
 
or in the aggregate
 
could have a
material effect on the financial condition, results of
 
operations and/or liquidity of the Company.