Half Year 2026 Coronado Global Resources Inc. Earnings Call Transcript
Key Points
- Q2 operational performance improved materially, with sellable production up ~39% quarter-on-quarter and adjusted EBITDA returning to positive territory.
- Buchanan mine generates returns through the cycle and is well positioned for future upside with an expanded production base of ~4.5 million tons per year.
- The company has a strong long-term market outlook, driven by India's growing steel demand and the expected met coal market deficit.
- The Stanwell transactions improved liquidity and reduced refinancing risk, with no near-term debt maturities.
- The sale of Logan mine removed a significant cash drag and exposure to the High-Vol A and B markets.
- The company is not yet cash generative, with free cash flow still negative at -$89 million in H1 2026.
- First half unit costs remained ~13% above the prior corresponding period, impacted by weather, planned downtime, and inflation.
- The Glencore prepayment facility carries a high interest rate of 14% and is a short-term working capital solution.
- The Mammoth underground mine's ramp-up has been slower than expected due to the fatality and geological challenges, with production likely to fall short of the 2 million ton target.
- The company faces ongoing cost pressures from foreign exchange, higher diesel fuel prices, and general inflation, which are not expected to reverse.
I would now like to hand the conference over to CEO and Managing Director, Barrie van der Merwe. Please go ahead.
Thank you, Travis, and good morning, everyone. Thank you for joining us. I want to first just draw your attention to the customary disclaimers that I included in the back before we start. Please make sure you familiarize yourself with these. Joining me in Brisbane for this call today is Sandeep Deoji, our interim CFO, Mark Bolton, our Chief Marketing Officer, and Chantelle Essa, our Head of Investor Relations. Today I want to step back a bit and spend some time talking about why I believe Coronado will create significant value over the medium to long term. It requires us to step away from the detail of quarterly results and look at the company, its history, its market positioning and other unique factors. I like listening to audiobooks on my daily commute and while doing the usual weekend chores like mowing.
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