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
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
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
June
30, 2026,
the
Company
had
outstanding
surety
bonds
and
cash-backed
bank guarantees
of
$
20.0
$
10.0
million,
respectively.
Following
completion
of
the
Logan
sale,
$
16.8
million
of
surety
bonds
and
$
10.0
million
of
cash-backed
bank guarantees
are expected
to
be released.
For the Australian Operations,
as at June 30, 2026, the Company
had cash-backed
bank guarantees
outstanding
36.6
million,
primarily in
respect
of
certain rail and port
take-or-pay
arrangements of
the Company.
As of
June 30,
2026, the Company
in aggregate had total
outstanding
bank guarantees of
$
46.6
its
obligations
and commitments.
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
$
151.7
141.7
million
as of
June 30,
2026
and December
31, 2025,
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.
From
time to
time, the
Company
is a party
to
legal
proceedings
in the
ordinary
course
of
business in
Australia
and
the U.S.
Based
on current
information,
the Company
believes
that
all
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.