v3.25.4
Contingencies
 12 Months Ended
Dec. 31, 2025
Contingencies [Abstract]  
Contingencies
24. 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 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
insurance.
As
of
December
31,
2025,
the
Company
had
outstanding
surety
bonds
of
$
20.0
million
and
outstanding
bank
guarantees of $
10.0
million.
For
the
Australian
Operations,
as
at
December
31,
2025,
the
Company
had
bank
guarantees
outstanding
of
$
35.7
million, primarily in respect of certain rail and port take-or-pay
arrangements of the Company.
As of December 31, 2025, the Company, in aggregate, had total outstanding bank guarantees of $
45.7
million to
secure its obligations and commitments.
Future regulatory changes relating to the above obligations 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 $
141.7
million
and $
68.5
million
as of
December
31,
2025
and
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 Consolidated Balance Sheets.
Future regulatory
changes in
relation to
these obligations
or deterioration
of the
Company’s credit
rating could
result in increased obligations, additional costs or additional
collateral requirements.
Stanwell Contingent Liability
On November
27, 2025,
the Company
and Stanwell
entered into
the Second
Amendment Deed
which, among
other things, waived the rebate amounts that would have otherwise been payable under the ACSA from January
1, 2026 until the final delivery date, which is expected to occur
in the first half of 2027.
Pursuant
to the
terms
of the
Second
Amendment
Deed,
if a
change
of control
occurs
within
two years
of the
amendment date, the
Company must obtain
Stanwell’s prior consent and,
prior to
the change of
control occurring,
pay
all
rebates
waived
plus
interest.
Additionally,
if
the
Company’s
current
controlling
shareholder
ceases
to
control the Company by disposing of
20
% or more of its shares,
the Company must immediately pay all rebates
waived by Stanwell plus interest.
The
potential
obligation
constitutes
a
contingent
liability.
However,
the
amount
of
such
liability
is
subject
to
significant uncertainty due to its
dependence on prevailing coal market prices during
the waiver period and future
coal
export
volumes.
Both
variables
are
inherently
volatile
and
influenced
by
external
factors
beyond
the
Company’s control, including
commodity price
fluctuations, geopolitical developments,
and market
demand shifts.
As a result, the Company does not believe it can reasonably
estimate the amount of the potential obligation.
From
time
to
time,
the
Company
is
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.