In the normal course of business, the Company is a party to various guarantees and financial instruments that carry off-balance-sheet risk and are not reflected in the accompanying condensed consolidated balance sheets. Such financial instruments provide support for the Company’s reclamation bonding requirements, lease obligations, insurance policies and various other performance guarantees. The Company periodically evaluates the instruments for on-balance-sheet treatment based on the amount of exposure under the instrument and the likelihood of required performance. The Company does not expect any material losses to result from these guarantees or off-balance-sheet instruments in excess of liabilities provided for in the accompanying condensed consolidated balance sheets.


	June 30, 2026
	Reclamation Support		Other Support (1)		Total
	(Dollars in millions)
Surety bonds	$	1,194.0	$	82.4	$	1,276.4
Letters of credit (2)	62.3		57.9		120.2
	1,256.3		140.3		1,396.6
Less: Letters of credit in support of surety bonds (3)	(62.3)		(1.9)		(64.2)
Obligations supported, net	$	1,194.0	$	138.4	$	1,332.4

(1) Instruments support obligations related to leases, health care plans, workers’ compensation, property and casualty insurance, customer and vendor contracts and certain restoration ancillary to prior mining activities.

On June 12, 2026, certain of the Company’s Australian subsidiaries (collectively, the Australian Surety Bond Facility Obligors), each an indirect subsidiary of PEC, established new Australian dollar-denominated surety bond facilities with an aggregate combined principal amount of $700.0 million Australian dollars in commitments by entering into agreements with surety bond providers (the Australian Surety Bond Facilities). The Australian Surety Bond Facilities have been established to, among other things, establish a surety bonding facility, primarily to support reclamation bonding requirements, to replace the Australian Surety Bond Facility Obligors’ existing 100% cash collateralized programs. During the six months ended June 30, 2026, the Company capitalized $1.9 million of deferred financing costs related to the Australian Surety Bond Facilities.

The surety bond commitments established under the Australian Surety Bond Facilities terminate on June 12, 2031 (the Maturity Date). Surety bonds issued under the Australian Surety Bond Facilities may be issued with or without an expiration date, but any surety bond that does not have an expiration date or that has an expiration date occurring after the Maturity Date, must be repaid, prepaid in full or otherwise satisfied on or prior to the Maturity Date.

The Australian Surety Bond Facilities contain customary covenants that, among other things and subject to certain exceptions (including compliance with financial ratios), may limit the Australian Surety Bond Facility Obligors and their respective subsidiaries’ ability to incur additional financial indebtedness, make certain distributions or loans, sell or otherwise dispose of assets, enter into certain affiliate transactions, create or incur liens, and enter into mergers or other significant corporate transactions. The Australian Surety Bond Facilities are secured by substantially all of the assets of the Australian Surety Bond Facility Obligors.

On June 12, 2026, the Company terminated that certain Transaction Support Agreement and Surety Resolution Term Sheet, each dated as of November 6, 2020 (as amended, supplemented or otherwise modified to the date hereof, the TSA), by and among the Company, certain subsidiaries of the Company party thereto and certain providers of its surety program (collectively, the Sureties). In connection with the termination of the TSA, on June 12, 2026, the Company terminated that certain Collateral Agency and Security Agreement, dated as of May 3, 2022 (as amended, supplemented or otherwise modified to the date hereof, the TSA Security Agreement), by and among the Company, certain subsidiaries of the Company party thereto, the Sureties party thereto and Bank of New York Mellon Trust Company, N.A., as collateral agent (the TSA Collateral Agent). All obligations of the Company to the Sureties and the TSA Collateral Agent, as applicable, under the TSA and the TSA Security Agreement have been satisfied. The termination of the TSA allowed for the overall reduction of collateral pledged to the Sureties.

In 2017, the Company entered into the Sixth Amended and Restated Receivables Purchase Agreement, as amended from time to time. The receivables securitization program authorized under the agreement (Securitization Program) is subject to customary events of default. The Securitization Program provides up to $225.0 million of funding capacity which is accounted for as a secured borrowing, limited to the availability of eligible receivables, and may be secured by a combination of collateral and the trade receivables underlying the program. Funding capacity under the Securitization Program may also be utilized for letters of credit in support of other obligations, which has been the Company’s primary utilization. The accounts receivable securitization program was amended in January 2025 to extend its maturity to January 2028. The Company capitalized $1.8 million of debt issuance costs related to the amendment.

At June 30, 2026, the Company had no outstanding borrowings and $62.0 million of letters of credit outstanding under the Securitization Program. Availability under the Securitization Program, which is adjusted for certain ineligible receivables, was $91.0 million at June 30, 2026. The Company was not required to post cash collateral under the Securitization Program at June 30, 2026.

The Company incurred interest and fees associated with the Securitization Program of $0.6 million during both the three months ended June 30, 2026 and 2025, and $1.2 million during both the six months ended June 30, 2026 and 2025, which have been recorded as “Interest expense, net of capitalized interest” in the accompanying unaudited condensed consolidated statements of operations.

In February 2022, the Company entered into an agreement which provides up to $250.0 million of capacity for irrevocable standby letters of credit, primarily to support reclamation bonding requirements. Outstanding letters of credit bear a fixed fee in the amount of 0.75% per annum. The Company receives a variable deposit rate on the amount of cash collateral posted in support of letters of credit. The agreement was amended on November 3, 2025, to (i) extend the expiration date to December 31, 2030 and (ii) reduce the required minimum cash collateral amount to 102% of the aggregate amount of letters of credit outstanding under the agreement, provided that in the event the Company’s credit rating falls below certain thresholds, the minimum collateral amount shall increase to 103%. At June 30, 2026, letters of credit of $77.9 million were outstanding under the agreement.

In December 2023, the Company established cash-backed bank guarantee facilities, primarily to support Australian reclamation bonding requirements. During the second quarter of 2026, the Australian Surety Bond Facilities, as described above, were established which reduced the utilization of the cash-backed bank guarantee facilities during the three months ended June 30,2026. At June 30, 2026, guarantees of $11.8 million were issued for which the Company receives a variable deposit rate on the amount of cash collateral posted in support of the facilities, which mature at various dates between 2026 and 2030.

The following table summarizes the Company’s “Restricted cash and collateral” in the accompanying condensed consolidated balance sheets. Restricted cash balances are held in controlled accounts with minimum balance requirements; withdrawals are subject to the approval of account beneficiaries, such as the Company’s surety providers, who have perfected security interests in the funds. The Company’s other cash collateral generally includes deposits held by regulatory authorities or financial institutions over which the Company has no control or ability to access. Portions of the restricted cash balances and deposits are held in accounts denominated in Australian dollars.


	June 30, 2026		December 31, 2025
	(Dollars in millions)
Restricted cash (1)
Surety trust accounts (2)	$	309.4	$	383.6
Credit support facilities (2) (3)	91.3		325.6
	400.7		709.2
Other cash collateral (1)
Deposits with regulatory authorities for reclamation and other obligations (3)	59.1		134.9


Restricted cash and collateral	$	459.8	$	844.1

(1) Restricted cash balances are combined with unrestricted cash and cash equivalents in the accompanying unaudited condensed consolidated statements of cash flows; changes between unrestricted cash and cash equivalents and restricted cash balances are thus not reflected in the operating, investing or financing activities therein. Changes in other cash collateral balances are reflected as operating activities therein.

(2) Surety trust accounts, the funding for collateralized letters of credit and cash supporting the bank guarantee facilities are comprised of highly liquid investments with original maturities of three months or less; interest and other earnings on such funds accrue to the Company.

(3) At June 30, 2026, the Australian dollar denominated balances supporting the bank guarantee facilities and the deposits with regulatory authorities were $17 million and $86 million, respectively. At December 31, 2025, the Australian dollar denominated balances supporting the bank guarantee facilities and the deposits with regulatory authorities were $312 million and $201 million, respectively.