| Description of Business, Basis of Presentation |
1. Description of Business, Basis of Presentation (a) Nature of operations Coronado Global Resources Inc. (together with its subsidiaries, the “Company” or “Coronado”) is a global producer, marketer, and exporter of a full range of metallurgical coals, an essential element in the production of steel. The Company has a portfolio of operating mines and development projects in Queensland, Australia and in the states of Pennsylvania, Virginia and West Virginia in the United States, or U.S. For details of the Company’s capital structure, refer to Note 5 “Capital Structure” for further information. Basis of Presentation The Consolidated Financial Statements have been prepared in accordance with requirements of the U.S. Generally Accepted Accounting Principles, or U.S. GAAP, and are presented in U.S. dollars, unless otherwise stated. The Consolidated Financial Statements include the accounts of the Company and its subsidiaries. The Company, or Coronado, are used interchangeably to refer to Coronado Global Resources Inc. or Coronado Global Resources Inc. and its subsidiaries, as appropriate to the context. All intercompany balances and transactions have been eliminated on consolidation. Certain Significant Risks and Uncertainties External factors, including general economic conditions, international events and circumstances, competitor actions, governmental actions and regulations are beyond the Company’s control and can cause fluctuations in demand for coal and volatility in the price of commodities. This in turn may adversely impact the Company’s future operating results and purchase or investment opportunities in the coal mining industry. Concentration of customers The Company has a credit policy that establishes procedures to determine creditworthiness and credit limits for trade customers and counterparties in the over-the-counter coal market. Generally, credit is extended based on an evaluation of the customer’s financial condition. Collateral is not generally required, unless credit cannot be Payments from customers are generally due between 21 90 days after invoicing. Invoicing usually occurs after shipment or delivery of goods. The Company had certain customers whose accounts receivable balances individually represented 10 % or more of the Company’s total accounts receivable, or whose revenue individually represented 10 Company’s total revenue. The following table summarizes any customer whose revenue individually represented 10 Company’s total coal revenues in the year ended December 31, 2025.
Year Ended December 31, 2025 2024 2023 18% 20% 21% ArcelorMittal 12% 9% 10% For the year ended December 31, 2025, $ 985.0 51.1 %, of total coal revenues were attributable to five customers. In comparison, for the year ended December 31, 2024, $ 1,330.4 54.6 revenues were attributable to five customers, and for the year ended December 31, 2023, $ 1,509.1 53.3 %, of total coal revenues were attributable to five customers. As of December 31, 2025, the Company had four customers that accounted for $ 130.7 51.3 %, of accounts receivable. As of December 31, 2024, the Company had four customers that accounted for $ 119.2 56.9 %, of accounts receivable. The following table presents revenues as a percent of total revenue from external customers by geographic region:
Year Ended December 31, 2025 2024 2023 Asia 50% 59% 50% North America 16% 14% 11% South America 10% 8% 8% Europe 9% 7% 6% Australia 6% 3% 4% Brokered sales 9% 9% 21% Total 100% 100% 100% The Company uses shipping destination as the basis for attributing revenue to individual countries. The transfer of title on brokered transactions may occur at a point that does not reflect the end usage point, therefore these sales are reflected as exports and classified as brokerage sales. Concentration of labor As of December 31, 2025, 10.7 % of the Company’s total employees are subject to the Curragh Mine Enterprise Agreement 2023. This agreement covers work carried out by permanent, full-time, temporary, and casual coal mining employees engaged by Curragh to fulfill production, maintenance and processing activities. Other than the Curragh Mine Enterprise Agreement 2023, there are no other collective bargaining agreements or union contracts covering employees of the Company. Transportation The Company depends upon port and rail transportation systems to deliver coal to its customers. Disruption of these transportation services due to weather-related problems, mechanical difficulties, strikes, lockouts, bottlenecks, and other events could temporarily impair the Company’s ability to supply coal to its customers. In the past, disruptions in these services have resulted in delayed shipments and production interruptions. Going concern During the year ended December 31, 2025, the Company took decisive actions to enhance liquidity, including securing incremental funding and concurrently amending the terms of its financial covenants, materially reducing operating and capital costs, and completing other financial support arrangements with Stanwell. On November 27, 2025, the Company completed refinancing of its existing credit facility with Highland Park XII Pte. Ltd, an affiliate of Oaktree Capital Management L.P., through a new senior secured asset-based revolving credit agreement with Stanwell Corporation Limited, or Stanwell, for an aggregate principal amount up to $ 265.0 million, or the ABL Facility. The ABL Facility matures in five years 9 12 % per annum depending on the level of the Borrowing Base Ratio and is subject to a minimum Borrowing Base Ratio and, from December 31, 2027, the maintenance of gearing ratio and interest coverage ratio. Refer to Note 15 “Interest Bearing Liabilities” for further information. Concurrently with the entry into the ABL Facility, the Company entered into a Second Amendment Deed that, among other matters, amends the terms of its existing Amended Coal Supply Agreement, dated as of November 6, 2009, or the ACSA, and the New Coal Supply Agreement, dated as of July 12, 2019, or the NCSA, with Stanwell. These amendments are expected to have a positive incremental impact on operating cashflows through the waiver of rebate amounts otherwise payable under the ACSA, deferral of other obligations with Stanwell, and prepayments in relation to future annual nominated contract tonnage, and provide material downside protection during periods when the Company’s cash balance is below $ 250.0 million. These arrangements are intended to provide critical cash flow support and financial stability for the Company. The Curragh mine’s strategic importance, to both Stanwell’s ability to economically generate electricity for Queensland and Queensland’s overall energy security, was the primary motivating factor in Stanwell providing substantial financial assistance and concessions to the Company and supporting the ongoing viability of the Curragh mine and the security of coal supply to the Stanwell Power Station. Refer to Note 14 “Contract Obligations” for further information. On October 23, 2025, the manager of the Financial Provisioning Act, or the Scheme Manager, issued an indicative Annual Review Allocation of “High” for the Curragh mine complex’s Environmental Authority, or EA, number EPML00643713. As permitted under the Financial Provisioning Act, the Company made formal submissions to the Scheme manager requesting a review of this indicative rating. Following consideration of the Company’s formal submission, the Scheme Manager applied discretion as permitted under the Financial Provisioning Act to grant transitional relief allowing the application of the “Moderate-High” risk category. This risk category will apply until the next Annual Review Allocation for the Curragh mine complex, which is expected to occur in November 2026. Under the transitional “Moderate–High” risk category, the Company is required to make an annual contribution to the Scheme equivalent to 6.5 % of Curragh’s Estimated Rehabilitation Cost, or the ERC, rather than provide financial assurance in the form of bank guarantees, insurance bonds or cash collateral equal to 100 Curragh’s ERC. The Company’s earnings and cash flows from operating activities for the year ended December 31, 2025 were significantly impacted by the continued subdued performance of Met coal markets, which led to low realized prices for the coal the Company sells. For the year ended December 31, 2025, the Company incurred net losses of $ 432.1 million. Despite this, the Company was in a materially improved financial position as of December 31, 2025. Since the previous interim period reporting assessment, the Company executed and received significant liquidity support from Stanwell, entered into a new ABL Facility with an extended maturity and more flexible covenant terms (including reducing cross default risk with the Notes), benefited from improving metallurgical coal market conditions, demonstrated operational recovery, and obtained clarity regarding the outcome of the Scheme Manager’s final Annual Review Allocation. As of December 31, 2025, the Company’s available liquidity, consisting of cash and cash equivalents (excluding restricted cash), was $ 172.8 After evaluating these factors, the Company has concluded that its current cash and cash equivalents and forecasted cashflows will be sufficient to fund its operations and satisfy its obligations for at least one year from the issuance date of these financial statements. In prior interim reporting periods, the Company concluded that conditions and events existed that caused substantial doubt about its ability to continue as a going concern, primarily due to uncertainty regarding near- term liquidity, refinancing of its asse t-based revolving credit facility (which included financial covenants that had the potential to result in a cross default with the Company’s Senior Secured Notes) and the potential requirement to provide financial assurance under the Mineral and Energy Resources (Financial Provisioning) Act 2018 (Qld), or the Financial Provisioning Act. This has now been alleviated as is described above and as such the substantial doubt identified in prior interim reporting periods no longer exist at December 31, 2025. The Company’s forecasts are subject to the achievement of production targets, and other factors beyond its control, including general economic conditions, metallurgical coal pricing, competitive dynamics and weather- related impacts. The Company’s working capital requirements in the short to medium term are also dependent on variations in these factors and the preparation of forecasts requires management judgement. |