v3.26.1
Derivatives and Fair Value Measurement
 6 Months Ended
Jun. 30, 2026
Derivatives and Fair Value Measurement [Abstract]  
Derivatives and Fair Value Measurement
16.
Derivatives
and Fair Value
Measurement
a) Derivatives
The
Company
may
use
derivative
financial
instruments
to
manage
its
financial
risks
in
the
normal
course
of
operations,
including
foreign
currency risks,
commodity
price risk
related to
purchase of
raw materials (such as
gas or diesel) and interest rate risk. Derivatives
for speculative purposes
are strictly prohibited
under the Treasury
Risk Management
Policy
approved
by
the Board
of
Directors.
The
financing
counterparties
to
the derivative
contracts
potentially
expose
the
Company
to
credit-related
risk.
Credit risk is the risk
that a third party
might
fail to fulfill
its obligations
under the
terms of
the financial instrument.
The
Company
mitigates
credit
risk
by
entering
into
derivative
contracts
with
high
credit
quality
counterparties,
limiting
the amount
of
exposure
to
each counterparty
and fre
quently
monitoring
their financial
condition.
Forward
foreign currency
contracts
The Company’s
Australian
Operations
utilize the
cash generated
from
US$ denominated coal
sales revenues
to
fund operating
costs,
which are predominantly
in A$.
During the
six
months
ended June
30,
2026, the Company
entered into
forward foreign
currency
contracts
to hedge
its foreign
exchange
exposure
on a portion
of
the US$
denominated
coal
sales revenue
at its
Australian Operations,
whose functional
currency is
A$.
The aggregate
notional
amount
of
the outstanding
forward
foreign
currency
derivative
contracts
designated
as
cash
flow
hedges
was
$
40.0
million
as
at
June
30,
2026,
maturing
in
July
2026.
Given
the
forward
foreign
currency
contracts
were designated
as cash
flow hedges,
the unrealized
loss of
$
0.9
million
was recognized
in
“Accumulated
other
comprehensive
loss” at
June 30,
2026
in the
unaudited
Condensed
Consolidated
Balance
Sheet,
and
will
be
reclassified
into
“Coal
revenues”
in the
Condensed
Consolidated
Statements
of
Operations
and
Comprehensive
Income
in the
period
in which
the
hedged
transaction
impacts
income,
expected
to
be
in
July 2026.
Refer to
Note 17.
“Accumulated
Other Comprehensive
Losses.”
As of
June 30,
2026,
the Company
recognized
a
derivative
liability
of
$
0.9
million
in
respect
of
forward foreign
currency
contracts
unrealized
loss,
classified
within “
Other Financial Liabilities
”. As
of
December
31, 2025,
the
Company recognized
a derivative asset of $
2.5
million in respect of forward foreign
currency contracts unrealized
gain, classified
within “
Other assets
”.
The following
table presents
the details
of
outstanding
foreign
currency contracts:
June 30, 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
40,000
US$
July 2026
80,000
US$
January
2026-
March
2026
b) Fair Value
Measurement
The fair
value
of
a financial
instrument
is the
amount
that
will
be received
to sell
an asset
or
paid to
transfer
a
liability in an orderly transaction between market
participants at the measurement
date. The fair values of financial
instruments
involve
uncertainty and
cannot
be determined
with precision.
The Company
utilizes
valuation
techniques
that maximize
the use
of
observable
inputs and minimize
the use of
unobservable
inputs
to
the
extent
possible.
The
Company
determines
fair
value
based
on
assumptions
that
market
participants
would use
in pricing
an asset
or liability in
the market.
When
considering
market participant
assumptions
in fair value measurements,
the following fair value hierarchy
distinguishes between
observable
and
unobservable
inputs,
which are categorized
in one of
the following
levels:
Level
1 Inputs:
Unadjusted
quoted
prices
in active
markets
for identical
assets
or
liabilities
accessible
to
the
reporting
entity at
the measurement date.
Level 2
Inputs:
Other than
quoted
prices that
are observable
for the asset
or liability,
either directly
or indirectly,
for
substantially
the full
term of
the asset
or liability.
Level
3
Inputs:
Unobservable
inputs
for
the
asset
or
liability
used
to
measure
fair
value
to
the
extent
that
observable
inputs are
not available,
thereby
allowing
for situations
in which
there
is little,
if any,
market
activity
for
the asset
or liability
at measurement date.
Financial
Instruments
Measured
on a Recurring
Basis
As of
June 30,
2026 and December
31, 2025, the Company’s
forward foreign
currency contracts,
a net derivative
liability
of
$
0.9
million
and
derivative
asset
of
$
2.5
million,
respectively,
were
required
to
be
measured
at
fair
value on
a recurring
basis
based on
a valuation
that
is corroborated
by
the use
of
market-based
pricing
(Level
2).
Financial
Instruments
Measured
on a Nonrecurring
Basis
Other than the estimated
fair value
of
the assets described
in Note 4. “Impairment of
assets”
and Note 5. “Assets
held for
sale”,
which are
Level 3
fair value,
there
were
no
other
assets
and liabilities
that
were measured
at fair
value on
a nonrecurring
basis
as of
June 30, 2026, and December
31, 2025.
Other Financial
Instruments
The following
methods
and assumptions
were used to estimate the
fair value
of
other financial instruments
as of
June 30,
2026 and December
31, 2025:
●
Cash and
cash equivalents,
accounts
receivable,
accounts
payable, accrued
expenses,
lease liabilities
and
other
current
financial
liabilities:
The
carrying
amounts
reported
in
the
unaudited
Condensed
Consolidated
Balance Sheets approximate
d
fair value
due to
the short
maturity of
these instruments.
●
Restricted
deposits,
lease
liabilities
and
other
financial
liabilities:
The
fair
values
approximate
d
the
carrying values
reported
in the unaudited
Condensed
Consolidated
Balance Sheets.
●
Interest bearing liabilities:
The Company’s
outstanding interest-bearing
liabilities are carried
at amortized
cost.
As of
June 30, 2026, the fair
value of
the amounts
drawn under the
ABL Facility
approximate
d
the
carrying
value reported
in the
consolidated
balance sheets.
The estimated
fair value
of
the Notes
as of
June
30, 2026
was approximately
$
364.8
million
based
upon
quoted
market
prices
in a
market
that
is
not considered
active
(Level 2).
The estimated
fair value
of
the Curragh
Housing loan
was $
25.2
million
based
upon
unobservable
inputs
(Level 3).