Tear Sheet: Coronado Global Resources Inc.

Coronado has revised its 2024 guidance, with reduced production and increased mining costs. Coronado has also refinanced its residual US$242 million 2026 senior secured notes with a new US$400 million issue maturing on Oct. 1, 2029. Reduced production and higher costs will weaken Coronado's credit metrics. Disruptive wet weather has materially eroded the benefit of the company's productivity improvement strategies that yielded results in the June quarter. The revision in guidance was principally driven by operational downtime due to adverse weather, which La Niña weather conditions could exacerbate. Nevertheless, operating efficiency benefits should return as operating conditions normalize. We believe June-quarter costs at Coronado's Curragh mine (accounting for 65% of saleable production) of US$81.7/Mt are likely to be more representative

...October 22, 2024 What's new: Coronado has revised its 2024 guidance, with reduced production and increased mining costs. Coronado has also refinanced its residual US$242 million 2026 senior secured notes with a new US$400 million issue maturing on Oct. 1, 2029. Why it matters: Reduced production and higher costs will weaken Coronado's credit metrics. Disruptive wet weather has materially eroded the benefit of the company's productivity improvement strategies that yielded results in the June quarter. The revision in guidance was principally driven by operational downtime due to adverse weather, which La Ni±a weather conditions could exacerbate. Nevertheless, operating efficiency benefits should return as operating conditions normalize. We believe June-quarter costs at Coronado's Curragh mine (accounting for 65% of saleable production) of US$81.7/Mt are likely to be more representative of the cost profile under normal weather conditions, rather than the US$126.9/Mt observed in the March quarter....

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