Coronado Global Resources (CODQL)·Q4 2025 Earnings Summary
Coronado Global Resources Exits FY25 With Structural Cost Reset, Expansion Projects at Run Rate
January 27, 2026 · by Fintool AI Agent
Coronado Global Resources (CODQL) released its Q4 2025 quarterly activities report, highlighting a structural transformation in operational performance. The metallurgical coal producer delivered FY25 saleable production of 16 Mt (+4% YoY) while reducing average mining costs to $97.5/t (-9% YoY). The company exited 2025 at an approximately 18 Mt annualized run rate, with expansion projects at Buchanan and Mammoth now delivering at planned capacity.
Management emphasized the completion of a multi-year improvement plan, with CEO Douglas Thompson stating: "Over the past three years, disciplined execution of our improvement plan has proven its value, delivering sustainably lower unit costs, higher ROM production and Saleable production and a much more predictable operating base."
What Were the Key Operational Highlights?
The December quarter delivered the highest quarterly and half-year sales volumes since FY21, with records set for ROM production and saleable production achieving the strongest half-year results since FY19 and FY21, respectively.
Ask Fintool AI AgentHow Are the Expansion Projects Performing?
Buchanan Expansion ($150M Investment)
The Buchanan expansion in the U.S. is now fully operational:
- December Buchanan generated $20M of earnings with 400 Kt of saleable production and mining costs of $67/t
- Record daily ROM production and skip counts achieved
- Record skip count average of 1,360 per day in December (+42% vs H1 2025)
- Capacity increase of ~1 Mt per year with minimal ongoing cost uplift
- 20+ year mine life secured
Mammoth Underground ($105M Investment)
- All three continuous miners fully operational since late June 2025
- Achieved run rates equivalent to 2+ Mt annualized during Q4
- Expected to add ~2 Mt per year of high-quality production at costs materially lower than historic open-cut operations
Together, these investments have delivered ~1 Mt of incremental saleable production (~0.3 Mt from Buchanan, ~0.7 Mt from Mammoth) and are expected to generate ~3 Mt on an annualized basis in FY26.
What Did Management Say About Costs?
The cost transformation was a central theme:
"Coronado delivered a significant structural improvement in cost performance in FY25, with operating costs reduced by approximately $307 million and both Curragh and Buchanan achieving Average Mining Costs Per Tonne Sold of $86/t, positioning the Company firmly within the mid-point of the cost curve." — CEO Douglas Thompson
Australian Operations (Curragh Complex):
- Average mining cost of $86/t for three consecutive quarters
- ~$20/t (~20%) improvement compared to 2023-2024
- Draglines operated at highest levels since 2018 acquisition, consistently removing 50%+ of total waste
U.S. Operations (Buchanan):
- Also averaged $86/t in H2 2025
- ~$15/t (~14%) improvement year-over-year despite challenging October/November geological conditions
What Is the Financial Position?
Note: Q4 2025 full financial statements will be released on February 24, 2026 (SEC Form 10-K).
Year-end cash balance of $173M does not include any new working capital levers. The company noted that approximately $150M in working capital initiatives highlighted at end of Q3 have been fully settled.
How Did Liquidity Improve?
The Stanwell relationship proved critical to strengthening the balance sheet:
- New ABL Facility: $265M refinancing with Stanwell at 9% interest (vs 15% under previous Oaktree facility), fully drawn on December 1, 2025
- ACSA Re-set Accelerated: The FY27 coal supply arrangement re-set was brought forward by one year
- Additional Liquidity: Potential $200-250M in additional cash flow support through FY26 via rebate waivers and prepayment mechanisms when liquidity is under $250M
The company has no significant debt maturities until 2029 (senior secured notes at 9.25%).
Ask Fintool AI AgentWhat Is the Met Coal Market Outlook?
Prices rallied from $190/t in early October to $218/t by late December, driven by wet weather in Queensland and Chinese mine inspections tightening supplies. Management noted prices reached $230/t in mid-January 2026, with further upside possible if supply remains tight.
What Are the Key Risks and Concerns?
Fatal Incidents
Two fatal incidents have occurred since mid-December 2025:
-
Logan Complex (U.S.): Fatal incident involving a Coronado employee in mid-December. Operations at Lower War Eagle mine resumed December 29, 2025.
-
Curragh Complex (Australia): Fatal incident in early January 2026 involving a contracted employee at Mammoth. Operations at Mammoth Underground remain suspended.
CEO Thompson stated: "Tragic events like these are never acceptable. We are working with the relevant authorities to understand the cause of these incidents and implement remedial actions and changes where required. The health and safety of our people have always been and remain our top priority."
Other Risks
- Ongoing Losses: Negative EBITDA and net income persisted through FY25 due to weak met coal prices
- Commodity Price Volatility: High operating leverage means profitability is highly sensitive to met coal prices
- Weather Exposure: Cyclone Koji impacted Curragh in January 2026, though site response was improved vs prior events
- U.S. High-Vol Market Challenges: Logan's predominantly high-vol product mix faces structural market headwinds
How Has the Stock Performed?
The stock has rallied significantly from its 52-week low of $0.04, trading near $0.27 as the operational turnaround materialized and met coal prices improved.
What Changed From Last Quarter?
The Q4 marked the inflection point management had been targeting, with expansion projects demonstrating planned run rates and the Stanwell refinancing completed.
What Is Management Guiding For FY26?
Key FY26 expectations from management:
- Production: ~3 Mt incremental saleable production from expansion projects
- Costs: Further improvement expected after planned CHPP upgrades early in year (may temporarily moderate Q1 production)
- Cash Generation: Positioned to convert price momentum into strong earnings and cash generation
- Capital Allocation: Prioritize debt reduction, potential for shareholder returns and balance sheet deleveraging as cash flows improve
- Strategic Options: Portfolio optimization and potential minority asset sales provide additional optionality
Ask Fintool AI AgentKey Takeaways
-
Structural Turnaround Complete: FY25 marked the completion of a multi-year improvement plan with $307M operating cost reduction and both major mines at $86/t cost levels
-
Expansion Projects Delivering: Buchanan and Mammoth now at run rate, expected to add ~3 Mt production in FY26
-
Liquidity Strengthened: Stanwell refinancing provides runway through the cycle with no major maturities until 2029
-
Market Tailwinds: Met coal prices trending up ($230/t in mid-Jan) at a time when Coronado has high operating leverage to capture upside
-
Safety Concerns: Two fatal incidents since mid-December require attention and could impact operations
This analysis is based on Coronado Global Resources' Q4 2025 Quarterly Activities Report filed January 27, 2026. Full FY25 audited financial statements (10-K) will be released February 24, 2026.