Coronado Global Resources delivered third quarter earnings of US$44 million, the highest quarterly result since the second quarter of 2024 and a substantial jump from US$7 million in the prior quarter. The swing reflects operational improvements at the Curragh mining complex taking hold alongside higher metallurgical coal prices, though the company has revised its full-year production guidance lower to account for ongoing challenges at the Buchanan mine and slower-than-expected improvements at other operations.
Three main factors drove the earnings improvement. The Premium Low-Volatile Hard Coking Coal price index averaged US$248 per tonne during the quarter, up from US$238 per tonne in the June quarter. Operationally, the Curragh reset program delivered measurable improvements with quarterly ROM production reaching 4.2 million tonnes, the highest since September 2020. Mining cash costs at Curragh declined significantly as the company executed its revised mine plan emphasizing lower strip ratio coal. Plant uptime improvements generated an additional 200,000 tonnes of Hard Coking Coal production quarter-on-quarter.
These gains were offset by disruptions elsewhere. Buchanan encountered significant geological conditions in its southern longwall panel, reducing ROM production by approximately 700,000 tonnes and materially affecting premium metallurgical coal output. Mammoth continued ramping below expectations due to extensive faulting in two mining panels. Unfavorable foreign exchange and higher diesel costs compounded these operational challenges, prompting the company to revise its 2026 guidance. Saleable production expectations were cut to 14.0 to 14.5 million tonnes from 16 to 17 million tonnes, while average mining cash costs are now expected to reach US$105 to US$110 per tonne compared to prior guidance of US$88 to US$96 per tonne.
The company has deliberately shifted strategy toward prioritizing margin over volume. Rather than bypassing lower-quality coal to inflate production, Coronado is building ROM inventory for processing into higher-value products in 2027, with approximately 1.5 million tonnes projected to remain on stockpiles at year-end. Available liquidity increased by US$57 million to US$155 million during the quarter, supported by a US$75 million prepayment from customer Glencore. Port congestion constrained Curragh shipments, leaving approximately 630,000 tonnes at port representing roughly US$50 million of expected fourth quarter revenue.
Several factors warrant close monitoring. The company expects Buchanan’s contribution to normalize in the December quarter once geological conditions ease, though a planned longwall move in November will temporarily disrupt output. Management has indicated that full benefits of the Curragh operational reset will be reflected in 2027 guidance once CHPP throughput improvements materialize and ROM inventory converts to saleable product. Coal prices have continued rising since quarter-end, reaching US$265 per tonne on October 20, which would provide earnings support if sustained. The conversion of excess ROM inventory into higher-value saleable tonnes and the timing of Buchanan’s production recovery will be critical metrics to track. This announcement is price sensitive and has been flagged as material by the ASX.
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About Coronado Global Resources Inc. (ASX: CRN)
Coronado Global Resources Inc. is a global producer, marketer, and exporter of metallurgical coal used in steel production. The company operates mines in Queensland, Australia and in Pennsylvania, Virginia, and West Virginia in the United States, with a portfolio that includes the 100% owned Curragh mine in the Bowen Basin and the Buchanan and Logan mining complexes in the Central Appalachian region.
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