Q2 2026 Coronado Global Resources Inc Earnings Call

August 11, 2026

Speaker #1: The conference is now being recorded.

Operator: The conference is now being recorded. Thank you for standing by, and welcome to the Coronado Global Resources Half Year 2026 Investor Call. All participants are in a listen-only mode. There will be a discussion of results followed by a question-and-answer session. If you wish to ask a question, you will need to press the star key followed by the number 1 on your telephone keypad. I would now like to hand the conference over to CEO and Managing Director, Barrie van der Merwe. Please go ahead.

Operator: The conference is now being recorded. Thank you for standing by, and welcome to the Coronado Global Resources Half Y CEO and Managing Director, Barrie van der Merweear 2026 Investor Call. All participants are in a listen-only mode. There will be a discussion of results followed by a question-and-answer session. If you wish to ask a question, you will need to press the star key followed by the number 1 on your telephone keypad. I would now like to hand the conference over to. Please go ahead.

Speaker #2: Thank you for standing by, and welcome to the Coronado Global Resources Q4 2026 Investor Call. All participants are in a listen-only mode. There will be a discussion of results, followed by a question-and-answer session.

Speaker #2: If you wish to ask a question, you will need to press the star key followed by the number 1 on your telephone keypad. I would now like to hand the conference over to CEO and Managing Director Barry Vandever.

Speaker #2: Please go ahead.

Speaker #3: Thank you, Travis, and good morning, everyone. Thank you for joining us. I want to first just draw your attention to the customer disclaimers that are included in the pack before we start.

Barrie van der Merwe: 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 are 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.

Speaker #3: Please make sure you're familiarized with these. Joining me in Brisbane for this call today are Sandeep Deogi, our interim CFO; Mark Bolton, our Chief Marketing Officer; and Chantelle Essa, our Head of Investor Relations.

Speaker #3: 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.

Speaker #3: 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.

Speaker #3: I enjoy listening to audiobooks during my daily commute and while doing weekend chores, like mowing the lawn. I recently came across a book by Václav Smil, a Czech-Canadian scientist, called "How the World Really Works: A Scientist's Guide to Our Past, Present, and Future." The book examines the physical and material foundations of human civilizations.

Barrie van der Merwe: I recently came across a book from Václav Smil, a Czech Canadian scientist, called "How the World Really Works: A Scientist's Guide to Our Past, Present, and Future." The book examines the physical and material foundations of human civilizations. It identifies four pillars of modern society being ammonia for fertilizer production, plastics, cement, and of course, steel. Every road, bridge, railway, data center, port, transmission line, and major piece of infrastructure starts with steel. As economies develop and urbanize, they consume more steel. Despite all the discussion around alternative technologies, metallurgical coal remains the dominant way steel is produced globally and is expected to be that way for decades to come. At the same time, new supply remains difficult to bring on. Permitting is harder, capital is scarcer.

Speaker #3: It identifies four pillars of modern society: being ammonia for fertilizer production, plastics, cement, and of course steel. Every road, bridge, railway, data center, port, transmission line, and major piece of infrastructure starts with steel.

Speaker #3: As economies develop and urbanize, they consume more steel, and despite all the discussion around alternative technologies, it's logical that coal remains the dominant way steel is produced globally and is expected to be that way for decades to come.

Speaker #3: At the same time, new supply remains difficult to bring on. Permitting is harder, capital is scarcer, and the economic policies of many jurisdictions are not always conducive to investment.

Barrie van der Merwe: Economic policies of met coal-rich territories are not always conducive to investment, and new development of metallurgical coal projects are few and far between. It's a question of when, not if, the market deficit for quality hard coking coal and PCI will occur. Coronado is inherently positioned and taking the right actions to ensure that, one, we will be operating when that happens, and two, we will make sure our shareholders gets the maximum possible benefit from that upside. When you look at the left-hand column, it outlines our inherent positioning and value proposition. We have long life, well-permitted assets that does not require significant major projects to run for the next 21 years. Our assets are in tier 1 jurisdictions, providing certainty of ownership rights, but at the same time providing some sovereign diversification.

Speaker #3: And new developments of metallurgical coal projects are few and far between. It's a question of when, not if, the market deficit for quality hard coking coal and PCI will occur.

Speaker #3: Coronado is inherently positioned and taking the right actions to ensure that, one, we will be operating when that happens, and two, we will make sure our shareholders get the maximum possible benefit from that upside.

Speaker #3: When you look at the left-hand column, it outlines our inherent positioning and value proposition. We have long-life, well-permitted assets that do not require significant major projects to run for the next 21 years.

Speaker #3: Our assets are in Tier 1 jurisdictions, providing certainty of ownership rights, but at the same time offering some sovereign diversification. Tara's high-quality, low-ash coking coals are among the best non-PLV hard-coking coals in the world.

Barrie van der Merwe: Curragh's high-quality, low ash coking coals are some of the best non-PLV hard coking coals in the world. These coals are especially suited to stamp charging coke-making technologies being installed in India and Indonesia, where non-PLV coals are maximized in the coke-making blends. Curragh's PCI is also a true dual-use coal that can either be injected or used in the coke-making blend, giving customers increased flexibility. Buchanan is considered one of the best US low volatile met coals with low ash, sulfur, and phosphorus. It is a brand that has been technically accepted globally for the past 40 years and is consistently sought after for its coke-making properties. Curragh is also a strategic Queensland asset, primarily because it provides the fuel for 15% of coal-fired power generation at a very low cost.

Speaker #3: These coals are especially suited to stamp-charging coke-making technologies being installed in India and Indonesia, where non-PLV coals are maximized in the coke-making blends. Tara's PCI is also a dual-use coal that can either be injected or used in the coke-making blend.

Speaker #3: Giving customers increased flexibility. It is considered one of the best U.S. low-volatile met coals, with low ash, sulfur, and phosphorus. It is a brand that has been technically accepted globally for the past 40 years and is consistently sought after for its coke-making properties.

Speaker #3: Tara is also a strategic Queensland asset, primarily because it provides the fuel for 15% of coal-fired power generation at a very low cost. This position provides us with some downside protection, as was evident from the recent transaction we managed to reach with Stanwell late last year.

Barrie van der Merwe: This position provides us some downside protection, as was evident from the reset transaction we managed to reach with Stanwell late last year. When you look at the right-hand column, it describes what we are doing to ensure that we are a viable business in a position to maximize the benefit of the future market upturn. Buchanan expansion has been successful and is well on its way to pay back the capital investment. The mine generates a return through the cycle, and we will continue optimizing it. At Curragh, we have more work to do through the reset program, and more about this a bit later. A reset at Curragh applies to every step of the value chain, from the mine to the market, and is what is needed to ensure that we are there when the next upturn occurs and maximize our upside for shareholders.

Speaker #3: When you look at the right-hand column, it describes what we are doing to ensure that we are a viable business in a position to maximize the benefit of the future market upturn.

Speaker #3: You can, and expansion has been successful and is well on its way to pay back the capital investment. The mine generates a return through the cycle, and we will continue optimizing it.

Speaker #3: At Tara, we have more work to do through the reset program, and I’ll share more about this a bit later. Our reset at Tara applies to every step of the value chain.

Speaker #3: From the mine to the market, that is what is needed to ensure that we are there when the next upturn occurs and maximize our upside for shareholders.

Speaker #3: As part of this broader marketing, led by Mark Bolton, as a portfolio to the executive leadership team to ensure that the whole value chain is represented.

Barrie van der Merwe: As part of this broader focus, we have also now added marketing led by Mark Bolton as a portfolio to the executive leadership team to ensure that the whole value chain is represented. Now for a bit more on the markets on slide 5. Per capita steel consumption is a good indicator of a country's level of development through urbanization and industrialization. For India, with a population now approaching 1.5 billion, this metric is 115 kilograms per person per year, well below the world average of 220 kilograms, and let alone China's 600 kilograms. India's own government is targeting a development trajectory that sees this metric growing by 40% to 160 kilograms in just the next four years. India has large, rich iron ore reserves, relatively cheap energy and labor, and a geographical location allowing it to become a key player in the post-China steel growth story.

Speaker #3: Now, for a bit more on the markets on slide 5. Capital steel consumption is a good indicator of a country's level of development through urbanization and industrialization.

Speaker #3: For India, with a population now approaching 1.5 billion, this metric is 115 kilograms per person per year, well below the world average of 220 kilograms.

Speaker #3: And let alone China’s 600 kilograms. India’s own government is targeting a development trajectory that sees this metric growing by 40% to 160 kilograms in just the next four years.

Speaker #3: India's large, rich iron ore reserves, relatively cheap energy and labor, and its geographical location are allowing it to become a key player in the post-China steel growth story.

Speaker #3: Importantly, India has low-quality domestic metallurgical coals, so it must import from the seaborne markets. Critically, for met coal demand growth, the vast majority of its new steelmaking capacity is through traditional blast furnace or coke battery technology.

Barrie van der Merwe: Importantly, India has low-quality domestic metallurgical coals, so it must import from the seaborne markets. Critically for met coal demand growth, the vast majority of its new steel-making capacity is through traditional blast furnace or coke battery technology. As India advances its development, steel demand and consumption will be increasing materially in future, and this will need supply of high-quality met coal. Australia is very well-positioned to supply the broad range of met coals India needs, especially the second-tier HCCs and PCIs like Curragh's, that are increasingly used in the flexible stamp charging coke battery technologies. While India and Southeast Asian markets are a good technical fit for Buchanan's products too, the impact of freight cost could be a challenge.

Speaker #3: As India advances its development, increasing materially in the future, this will require a supply of high-quality met coal. Australia is very well positioned to supply the broad range of met coals India needs, especially the second-tier HCCs and PCIs like Tara's, which are increasingly used in the flexible stamp-charging coke battery technologies.

Speaker #3: While India and Southeast Asian markets are a good technical fit for Buchanan's products too, the impact of freight costs could be a challenge. The domestic U.S.

Speaker #3: The market and EU remain important to Buchanan, and improvements in U.S.-China trade relations will lead to the reopening of demand opportunities into a region where Buchanan has a long trade history.

Barrie van der Merwe: The domestic US market and EU remain important to Buchanan, and improvements in US-China trade relations will lead to reopening of demand opportunities into a region where Buchanan has a long trade history. To put things into physical perspective, we are showing you the frequency and equivalency of how many Sydney Harbour Bridges, weighing in at about 53,000 tons each, India will produce at different future rates of consumption. These are big numbers and indicative of the future demand that seaborne market can expect. At about 800 kilograms of coal needed to make 1 ton of steel, if India's steel consumption increases to the world average, they would need the met coal output of about 10 more Coronados. As I said before, it's not whether the demand and upturn in price will come. The question is just when.

Speaker #3: To put things into physical perspective, we are showing you the frequency and equivalency of how many Harbor Bridges—each weighing about 53,000 tons—India will produce at different future rates of consumption.

Speaker #3: These are big numbers and indicative of the future demand that the Seaborne market can expect. At about 800 kilograms of coal needed to make 1 ton of steel, if India's steel consumption increases to the world average, they would need the met coal output of about 10 more Coronados.

Speaker #3: As I said before, it’s not whether the demand and upturn in price will come—the question is just when. The mines that are there and have low enough cost bases will benefit handsomely.

Barrie van der Merwe: The mines that are there and have low enough cost bases will benefit handsomely. Now turning to Buchanan on slide 6. The chart on this page is self-explanatory. This dual longwall, low vol met coal operation makes money through the cycle. It is a reliable asset now with an expanded production base at around 4.5 million tons per year. We'll continue optimizing it through further longwall automation, improving development efficiency, maximizing productivity, and debottlenecking our plant with low capital intensity initiatives. It is well positioned for future upside when the markets turn. If you are looking for more information about Buchanan, there's a detailed slide in the appendix. Now going to Curragh on slide 7. Buchanan represents stability, Curragh represents material opportunity. Curragh is one of Australia's largest coal mining complexes. It's in the Bowen Basin, one of the most regarded metallurgical coal-producing regions globally.

Speaker #3: Now, turning to Buchanan on slide 6. The chart on this page is self-explanatory. This deal, long-wall low-vol met coal operation, makes money through the cycle.

Speaker #3: It is a reliable asset, now with an expanded production base at around 4.5 million tons per year. We'll continue optimizing it through further longwall automation, improving development efficiency, maximizing productivity, and debottlenecking our plant with low capital intensity initiatives.

Speaker #3: It is well positioned for future upside when the markets turn. We are looking for more information about Buchanan; there's a detailed slide in the appendix.

Speaker #3: Now going to Tara on slide 7. Buchanan represents stability; Tara represents material opportunity. Tara is one of Australia's largest coal mining complexes. It's in the Bowen Basin, one of the most regarded metallurgical coal producing regions globally.

Speaker #3: The asset quality is exceptional. Reserve life is long. The infrastructure is already built. As I said earlier, it produces highly sought-after products, but it has not performed to its full potential in recent years.

Barrie van der Merwe: The asset quality is exceptional. Reserve life is long. The infrastructure is already built. As I said earlier, this is a highly sought-after product but has not performed to its full potential in recent years. That is why we launched the Reset program, and I will briefly recap this. We are focusing our efforts, and it's supported by AlixPartners and Odin Partnership, as we said before. As part of this, alongside our COO, Craig Manz, and Head of Operations at Curragh, Shaun Newberry, we have the advice, support, and assurance over our plans from Tony O'Neill, the former Anglo American Technical Director, and Aaron Puna, the former CEO of Anglo American Copper. We are focusing on four things. We're changing our open pit mine plans and accelerating low strip ratio coal in the south to fund improved pit geometries in the north. This will drive future productivity and lower costs.

Speaker #3: That is why we launched the reset program, and I will briefly recap this. We are focusing our efforts, and it is supported by AlixPartners and Odin Partnership, as we said before.

Speaker #3: As part of this, alongside our COO, Craig Manns, and Head of Operations at Tara, Sean Newbury, we have the advice, support, and assurance over our plans from Tony O'Neill, the former Anglo American Technical Director, and Aaron Poona, the former CEO of Anglo American Copper.

Speaker #3: We are focusing on four things. We're changing our open-pit mine plans, and accelerating low strip ratio coal in the south to fund improved pit geometries in the north.

Speaker #3: This will drive future productivity and lower costs. We're also using the benefits from the South to establish inventory buffers at key points in the value chain to ensure system stability and continuous delivery.

Barrie van der Merwe: We're also using the benefits from the south to establish inventory buffers at key points in the value chain to ensure system stability and continuous delivery. This calls for the acceleration of expert study, which has guided the feasibility recently. These new plans allow us to park one dragline and two truck and excavator fleets this year without impacting mining output. Secondly, we are washing as much coal as possible, and the CHPP is most recently the constraint. If we cannot wash it, we stockpile it to wash later and maximize margin. This involves a laser focus on asset integrity and maintenance practices to extinguish maintenance deficits and improve uptime, throughput, and yield. As reported with the production result, we are starting to reap some early benefits of adopting a very programmatic approach to this since the start of the year.

Speaker #3: This calls for the acceleration of expert study, which has been gated to feasibility recently. These new plans allow us to part one dragline and two truck and excavator fleets this year, without impacting mining output.

Speaker #3: Secondly, we are washing as much coal as possible, and the CHPP is most recently the constraint. If we cannot wash it, we stockpile it to wash later and maximize margin.

Speaker #3: This involves a laser focus on asset integrity and maintenance practices to extinguish maintenance deficits and improve uptime throughput and yield. As reported with the production result, we are starting to reap some early benefits of adopting a very programmatic approach to this since the start of the year.

Speaker #3: Thirdly, the fatality at Mammoth understandably caused a significant setback to the ramp-up of this new underground asset. As we move forward, we learn and adapt, and are doing work to improve the mine’s output and productivity, as well as the product mix, to achieve the planned benefits—albeit a bit later.

Barrie van der Merwe: Thirdly, the fatality at Mammoth understandably caused a significant setback to the ramp-up of this new underground asset. As we move forward, we learn and adapt, and are doing work to improve the mine's output and productivity, as well as the product mix to achieve the planned benefits, albeit a bit later. Fourthly, we are pulling all of this together in our cost base and commercial arrangements. Mining services contracts reflecting the productivity designed into the mine plan, organizational structures reflecting a simple two-mine company, reducing costs to what is absolutely necessary to produce coal safely, and maximizing our margin through our marketing efforts. The reset is underpinned by a renewed commitment to safety through our frontline supervisor leadership program, as well as our values and culture. How we work at Coronado is as important as what we achieve. Both the software and the hardware matters in our business.

Speaker #3: Fourthly, we are pulling all of this together in our cost base and commercial arrangements: mining services contracts reflecting the productivity designed into the mine plan, organizational structures reflecting a simple two-mine company, reducing costs to what is absolutely necessary to produce coal safely, and maximizing our margin through our marketing efforts.

Speaker #3: The reset is underpinned by our renewed commitment to safety through our Frontline Supervisor Leadership Program, as well as our values and culture. How we work at Coronado is as important as what we achieve.

Speaker #3: Both the software and the hardware matter in our business. Now, turning to slide 8. Historically, a lot has been said about Tara and Stanwell, the Queensland government-owned corporation.

Barrie van der Merwe: Now turning to slide 8. Historically, a lot has been said about Curragh and Stanwell, a Queensland Government-owned corporation. Through last year's transactions, we consolidated all our debt except the high-yield notes with this customer and established ongoing facilities that gives us the financial flexibility to better cope with price volatility and give us time to reset Curragh. Stanwell provides important support to Curragh, and Curragh is very important to Queensland. It's a reciprocally important relationship. Our coal provides 15% of the state's baseload electricity and is important to energy security. Our financial contribution to the state since 2018 through coal royalties, export rebates, and discounted pricing is set out on the page and are material. Last year's Stanwell transaction improves the cash flow outcomes for Coronado.

Speaker #3: Through last year’s transactions, we consolidated all our debt except the high-yield notes with this customer, and established ongoing facilities that give us the financial flexibility to better cope with price volatility and give us time to reset Tara.

Speaker #3: Stanwell provides important support to Tara, and Tara is very important to Queensland. It's a mutually important relationship. Our coal provides 15% of the state's baseload electricity and is important to energy security.

Speaker #3: Our financial contribution to the state since 2018, through coal royalties, export rebates, and discounted pricing, is set out on the page and in our materials.

Speaker #3: Last year, the Stanwell transaction improved the cash flow outcomes for Coronado. Stanwell is, however, still entitled to nominate a wide range of thermal coal tons every year, and we are obligated to deliver that until 2043.

Barrie van der Merwe: Stanwell is, however, still entitled to nominate a wide range of thermal coal tons every year, and we are obligated to deliver that until 2043. This nomination flexibility has an impact on our flexibility to set up structure and size Curragh differently, and is part of the cost we are incurring for the support we receive. This relationship will continue to receive a high level of priority from our management team, both to ensure that we meet our responsibilities to Stanwell and Queensland, and to make sure that Coronado gets adequately compensated over time for our overall contribution. We'll now close with a couple of words on the company's inherent value and cash generation capacity. On slide 9 now. All commodities businesses are cyclical, and earnings and cash flow profiles vary a lot over time. Coronado is exactly that.

Speaker #3: This nomination flexibility has an impact on our ability to set up the structure and size Tara differently, and is part of the cost we are incurring for the support we received.

Speaker #3: This relationship will continue to receive a high level of priority from our management team, both to ensure that we meet our responsibilities to Stanwell and Queensland, and to make sure that Coronado gets adequately compensated over time for our overall contribution.

Speaker #3: We'll now close with a couple of words on the company's inherent value and cash generation capacity. On slide 9 now. Bulk commodities businesses are cyclical, and earnings and cash flow profiles vary a lot over time.

Speaker #3: Coronado is exactly that. As the chart on the page shows, every couple of years, when the market swings up, there is significant free cash flow, resulting in large benefits to those who are shareholders at the time.

Barrie van der Merwe: As the chart on the page shows, every couple of years when the market swings up, there is significant free cash flow, resulting in large benefits to those that are shareholders at the time. Therefore, taking notes of how things look over the course of a full cycle and putting our current financial position and leverage into that perspective is important. Coronado's earnings capability through the cycle is strong. The average over the last 8 years is around $425 million US per year. In one strong market upstream cycle that occurred since 2018, enough cash was generated to return $1.5 billion US in dividends to shareholders. Noting that that was after meeting our Stanwell and Queensland obligations.

Speaker #3: Therefore, taking note of how things look over the course of a full cycle, and putting our current financial position and leverage into that perspective, is important.

Speaker #3: Coronado's earnings capability, through the cycle, is strong. The average over the last eight years is around $425 million per year. In one strong market upswing cycle that occurred since 2018, enough cash was generated to return $1.5 billion in dividends to shareholders.

Speaker #3: Noting that that was after meeting our Stanwell and Queensland obligations. On only as to apply recent met coal transaction multiples, without through-the-cycle EBITDA, to see the inherent value of the company.

Barrie van der Merwe: One only has to apply recent met coal transaction multiples, but out through the cycle EBITDA to see the inherent value of the company, and to see that this is very different to where it has been trading recently. The financial history also puts into perspective our $700 million of debt, $300 million of which is with Stanwell. In an upswing, this will reduce very fast and the leverage will occur rapidly. The work we are doing now is aimed at ensuring Coronado is set up to maximize its exposure to the next upward met coal cycle, and we are confident that we are well-positioned to achieve this. At this point, I will hand over to Sandeep, who will take you through the H1 business and financial performance, liquidity, and balance sheet. Thanks, Sandeep.

Speaker #3: And to see that this is very different from where it’s been trading recently. The financial history also puts into perspective our $700 million of debt, $300 million of which is with Stanwell.

Speaker #3: In an upswing, this will reduce very fast and the leverage will occur rapidly. The work we are doing now is aimed at ensuring Coronado is set up to maximize its exposure to the next upward met coal cycle, and we are confident that we are well positioned to achieve this.

Speaker #3: At this point, I'll hand over to Sandeep, who will take you through the half-year business and financial performance, liquidity, and balance sheet. Thanks, Sandeep.

Speaker #2: Thank you, Barry. The key message from the first half is that operational performance improved materially through the June quarter, and we expect to sustain that momentum.

Sandeep Deoji: Thank you, Barrie. The key message from the H1 is that operational performance improved materially through the June quarter, and we expect to sustain that momentum. To recap on the quarterly results, sellable production increased by approximately 39% from the Q1 to the Q2, and adjusted EBITDA improved by approximately $96 million quarter-on-quarter, returning to positive territory. I want to draw your attention to the mining cash cost line. At USD 98 per ton produced, Q2 was back in line with the same quarter last year. But that comparison understates what we achieved. The Australian dollar averaged 71 US cents in the quarter against 64 cents a year ago, which added around $29 million to our reported costs. On top of that, we absorbed higher diesel fuel prices and general inflation.

Speaker #2: To recap on the quarterly results, syllable production increased by approximately 39% from the first quarter to the second, and adjusted EBITDA improved by approximately $96 million quarter on quarter, returning to positive territory.

Speaker #2: I want to draw your attention to the mining cash cost line. At US$98 per ton produced, Q2 was back in line with the same quarter last year.

Speaker #2: But that comparison understates what we achieved. The Australian dollar averaged 71 US cents, against 64 cents a year ago, which added around $29 million to our reported costs.

Speaker #2: On top of that, we absorbed higher diesel fuel prices than general inflation. At last year's exchange rates, Q2 mining cash costs would have been $91 per ton, around 7% below the prior year.

Sandeep Deoji: At last year's exchange rates, Q2 mining cash costs would have been $91 per ton, around 7% below prior year. The cost base is not simply recovering. It is improving underneath a headwind we do not control. The evidence sits alongside. The Q1 carried the planned major maintenance for the half. Two longwall relocations and the Curragh CHPP shutdown. The Q2 was the first clear run at it, and it shows what these assets do when the work is behind them. We cannot achieve record run production and both Buchanan and Curragh achieve record CHPP operating hours. The Logan sale was completed last month, removing a significant cash drag and our exposure to the High-Volatile A and B markets, and the Stanwell arrangements strengthened liquidity. On a half-on-half basis, the picture is more mixed.

Speaker #2: So the cost base is not simply recovering; it is improving underneath the headwind we do not control. The evidence sits alongside. The first quarter carried the planned major maintenance for the half.

Speaker #2: Too long relocations, and the Tara CHPP shutdown. The second quarter was the first clear run at it, and it shows what these assets do when the work is behind them.

Speaker #2: We can achieve record-run production, and both we and Tara can achieve record CHPP operating hours. The local sale was completed last month, removing a significant cash drag and our exposure to the High Vol A and B markets.

Speaker #2: And the Stanwell arrangements strengthened liquidity. On a half-on-half basis, the picture is more mixed. First half unit costs remain around 13% above the prior corresponding period, and adjusted EBITDA was US$9 million weaker.

Sandeep Deoji: H1 unit costs remained around 13% above prior corresponding period, and adjusted EBITDA was US$9 million weaker. That is the Q1 showing through, weather-related impacts and planned downtime. The Q2 is the better guide to where the business sits at the moment. There remains significant work ahead, but Q2 demonstrates that operational reset is beginning to translate into financial outcomes. Moving to cash flows. Free cash flows improved by $70 million against the prior corresponding period, from an outflow of US$159 million to an outflow of $89 million. We are not yet cash generative, and I want to be clear about that. But the direction and the drivers are both right. Three items drove approximately $180 million of favorable movement. Stronger realized pricing contributed $41 million. The removal of Stanwell rebate contributed $53 million.

Speaker #2: That is the first quarter showing through, with weather-related impacts and planned downtime. The second quarter is the better guide to where the business sits.

Speaker #2: At the moment, there remains significant work ahead, but Q2 demonstrates that the operational reset is beginning to translate into financial outcomes. Moving to cash flows, free cash flows improved by $70 million against the prior corresponding period.

Speaker #2: From an outflow of US$159 million to an outflow of US$89 million. We are not yet cash generative, and I want to be clear about that.

Speaker #2: But the direction and the drivers are both right. Three items drove approximately $180 million of favorable movement. Stronger realized pricing contributed $41 million. The removal of the Stanwell rebate contributed $53 million.

Speaker #2: As Barry said, the Stanwell partnership is critical to Tara, and this is one visible aspect of it. Lower capital expenditure contributed $89 million, reflecting the completion of the Buchanan growth program.

Sandeep Deoji: As Barrie said, the Stanwell partnership is critical to Curragh, and this is one visible aspect of it. Lower capital expenditure contributed $89 million, reflecting the completion of the Buchanan growth program. Against that, we absorbed approximately $74 million from inflation, higher fuel costs, and foreign exchange. I want to separate those from timing items because they are different in character. Fuel, inflation, and currency are real cash costs, and we are managing them through the reset rather than waiting for them to reverse. The remaining $39 million relates to mining and inventory and shipment timing. We held 780,000 tons of export sellable inventory at 30 June, with shipments slipping into July on port congestion and coal shipper delays. As that inventory converts, on the basis that operational performance continues the momentum seen in Q2, we expect strong cash conversion in H2.

Speaker #2: Against that, we absorbed approximately $74 million from inflation, higher fuel costs, and foreign exchange. I want to separate those from timing items because they are different in character.

Speaker #2: Fuel, inflation, and currency are real cash costs, and we are managing them through the reset rather than waiting for them to reverse. The remaining $39 million relates to mining, inventory, and shipment timing.

Speaker #2: We held 780,000 tons of export saleable inventory at 30 June, with shipments slipping into July on port congestion and coal shipment delays. As that inventory converts, and on the basis that operational performance continues the momentum seen in the second quarter, we expect strong cash conversion in the second half.

Speaker #2: Moving to liquidity. Liquidity is our number one financial priority. We closed the half with $98 million of cash. During the second quarter, we progressed the prepayment arrangement with Glencore.

Sandeep Deoji: Moving to liquidity. Liquidity is our number one financial priority. We closed H1 with $98 million of cash. During Q2, we progressed a prepayment arrangement with Glencore, and on 7 August, our subsidiaries entered into two concurrent offtake agreements under which Glencore will advance prepayments of up to $75 million. That takes pro forma liquidity to $173 million. I want to be straightforward about what that facility is. It is 12-month working capital. It is reimbursed by applying the value of coal we deliver against outstanding balance on a contractual schedule that takes it to nil by the end of the term, and any residual at maturity payable in cash. It also carries interest at 14%. We took it to give ourselves a buffer while we deliver the resets. A large part of that is deliberately building inventory.

Speaker #2: And on 7 August, our subsidiaries entered into two concurrent offtake agreements, under which Glencore will advance prepayments of up to $75 million. That takes pro forma liquidity to $273 million.

Speaker #2: I want to be straightforward about what that facility is. It is 12-month working capital. It is reimbursed by applying the value of coal we deliver against the outstanding balance, on a contractual schedule, that takes it to nil by the end of the term.

Speaker #2: And any residual at maturity is payable in cash. It also carries interest at 14%. We took it to give ourselves a buffer while we deliver the resets.

Speaker #2: A large part of that is deliberately building inventory. Keeping coal in front of plants is what lifts reliability, and carrying a buffer into the wet season.

Sandeep Deoji: Keeping coal in front of plants is what lifts reliability and carrying a buffer into the wet season. That costs working capital now at the end of the year and into Q1 2027, and it pays for itself in volume and reliability on the other side. It is an investment in resilience, not a gap in cash flows. The Stanwell transactions materially improved our position and reduced refinancing risk. The prepayment mechanism provides downside support. Monthly prepayments are available while our liquidity remains below $250 million, and repayments will occur through coal delivery from Q2 next year once liquidity exceeds $300 million. We also expect to release around $70 million of cash back guarantees on the basis that our credit metrics improve. On the balance sheet, we have no near-term debt maturities. Our senior secured notes mature in October 2029 and carry no maintenance covenant.

Speaker #2: That costs working capital now, at the end of the year, and into the first quarter of 2027, and it pays for itself in volume and reliability on the other side.

Speaker #2: It is an investment in resilience, not a gap in cash flows. The Stanwell transactions materially improved our position and reduced refinancing risk. The prepayment mechanism provides downside support.

Speaker #2: Monthly prepayments are available while our liquidity remains below $250 million, and repayments will occur through coal delivery from the second quarter next year once liquidity exceeds $300 million.

Speaker #2: We also expect to release around $70 million of cash-backed guarantees on the basis that our credit metrics improve. On the balance sheet, we have no near-term debt maturities.

Speaker #2: Our senior secured notes mature in October 2029 and carry no maintenance covenants. The Stanwell ABL facility, endorsed by the Queensland government, matures in 2030, with gearing and interest cover covenants commencing at the end of December 2027.

Sandeep Deoji: The Stanwell ABL facility, endorsed by the Queensland Government, matures in 2030, with gearing and interest cover covenants commencing at the end of December 2027. With major growth capital now complete, our focus is on preserving liquidity, restoring cash generation, reducing leverage over time, and strengthening the balance sheet, and in time, working our way back to shareholder returns. Our capital allocations framework remains unchanged. Liquidity first, then deleveraging, then growth and shareholder returns. Thank you for your time. I will now hand back to Barrie.

Speaker #2: With major growth capital now complete, our focus is on preserving liquidity, restoring cash generation, reducing leverage over time, and strengthening the balance sheet. And in time, working our way back to shareholder returns.

Speaker #2: Our capital allocation framework remains unchanged: liquidity first, then de-leveraging, then growth and shareholder returns. Thank you for your time. I'll now hand back to Barry.

Speaker #1: Well, thank you very much, Sandeep, and thanks to all of you for taking the time to dial into the call and listen to us. If you have questions after the call, after the Q&A, please do not hesitate to get in touch.

Barrie van der Merwe: Well, thank you very much, Sandeep. Thanks to all of you for taking the time to dial into the call and listen to us. If you have questions after the call, after the Q&A, please do not hesitate to get in touch. Also, a big thank you to all our people for your continued dedication and support of Coronado. The board and the ELT really appreciate it. Before I conclude, a quick word on guidance, a question we often get. This is also covered in the earnings release that we put out on the ASX this morning. As you heard today, we are busy with a structural reset of the business. The focus ultimately is on margin and cash flow. When looking at our production guidance, the 16 to 17 million tons of product tons includes met and thermal.

Speaker #1: Also, a big thank you to all our people for your continued dedication and support of Coronado. The Board and the ELT really appreciate it.

Speaker #1: Before I conclude, a quick word on guidance—a question we often get. This is also covered in the earnings release that we put out on the ASX this morning.

Speaker #1: As you heard today, we are busy with a structural reset of the business. The focus ultimately is on margin and cash flow. In looking at our production guidance, the 16 to 17 million tons of product includes met and thermal.

Speaker #1: But what we will not do is produce a whole lot of bypass, loss-making thermal at the end of the year, to hit a tonnage number.

Barrie van der Merwe: What we will not do is produce a whole lot of bypass loss-making thermal at the end of the year to hit a tonnage number. We will keep the inventory and process it when the plants can. Remembering the plants are the constraint in the current value chain currently. If we had done this in the December quarter of last year, we would have had more cash today. The way to think about it is, we will probably mine close to what is needed to produce 16 million tons this year, but all of it may not be saleable production by the end of the year. Some may be on ROM stockpiles to prepare for the wet season, some may be on crush stockpiles ahead of the plant. Wherever this lands will also flow through to the cost per ton metric in the denominator.

Speaker #1: We will keep the inventory and process it when the plants can, remembering the plants are the constraint in the current value chain currently. If we had done this in the December quarter of last year, we would have had more cash today.

Speaker #1: So, the way to think about it is, we will probably mine close to what is needed to produce 16 million tons this year, but all of it may not be saleable production by the end of the year.

Speaker #1: Some may be on ROM stockpiles to prepare for the wet season. Some may be on crushed stockpiles ahead of the plant. Wherever this lands, it will also flow through to the cost-per-ton metric in the denominator.

Speaker #1: Remembering that the dollar spent is expected to be better than planned from the fleet changes and the early reset savings, but may be adversely impacted by FX and diesel cost.

Barrie van der Merwe: Remembering that the dollar spent is expected to be better than planned from the fleet changes and the early reset savings, but may be adversely impacted by FX and diesel cost. Now for a quick conclusion, and then we will go to a quick Q&A. The medium to long-term market outlook for met coal is good. India will be the driver of seaborne met coal demand. Question is when, not if this will happen. Coronado has the long life assets, products, and long-standing customer relationships to capitalize on this when it occurs. Buchanan generates returns through the cycle without any external funding. We will continue to optimize it. Curragh is getting a lot of attention currently to make sure that we reap the full benefits when the upturn happens.

Speaker #1: Now for a quick conclusion, and then we'll go to a quick Q&A. The medium- to long-term market outlook for met coal is good. India will be the driver of seaborne met coal demand.

Speaker #1: The question is when, not if, this will happen. Coronado has long-life asset products and longstanding customer relationships. We will capitalize on this when it occurs.

Speaker #1: You can, and it generates returns through the cycle without any external funding. We will continue to optimize it. Curragh is getting a lot of attention currently, to make sure that we reap the full benefits when the upturn happens.

Speaker #1: Until then, our job is to relentlessly focus on productivity and cost, and ensure that we are in the best shape possible through the tougher times to reap the maximum benefit in the good times.

Barrie van der Merwe: Until then, our job is to relentlessly focus on productivity and cost and ensure that we are in the best shape possible through the tougher times to reap the maximum benefit in the good times. We believe that our strategic relationship with Stanwell and Queensland is a key foundation of our future, and that our shareholders will, in time, be rewarded for their ongoing support. For that, I will hand you back to Travis to open us up for questions. Thanks, Travis.

Speaker #1: We believe that our strategic relationship with Stanwell and Queensland is a key foundation of our future, and that our shareholders will, in time, be rewarded for their ongoing support.

Speaker #1: With that, I'll hand you back to Travis to open us up for questions. Thanks, Travis.

Speaker #3: Thank you. If you wish to ask a question, please press star one on your telephone and wait for your name to be announced. If you wish to cancel your request, please press star then two.

Operator: Thank you. If you wish to ask a question, please press star 1 on your telephone and wait for your name to be announced. If you wish to cancel your request, please press star then 2. If you are on a speakerphone, please pick up the handset to ask your question. The first question today comes from Daniel Roden from Jefferies. Please go ahead.

Speaker #3: If you're on a speakerphone, please pick up the handset to ask your question. The first question today comes from Daniel Roden from Jefferies. Please go ahead.

Speaker #2: Thanks, Barry and Sandeep. I just wanted to ask about the Glencoe security and ranking, and, yeah, I guess, how do you think, or what's the ranking of assets and receivables for that liability?

Daniel Roden: Thanks, Barrie and Sandeep. Just wanted to ask on the Glencore security and ranking. What is the ranking of assets and receivables for that liability? How does it rank in terms of Stanwell obligations and the other debt commitments?

Speaker #2: And yeah, how does it rank in terms of Stanwell obligations and other debt commitments?

Speaker #1: Yeah, Dan, thanks for that. So, the Glencoe deal is unsecured. It's actually the first unsecured debt that we've taken on since I've joined the company.

Barrie van der Merwe: Yeah, Dan, thanks for that. The Glencore deal is unsecured. It is actually the first unsecured debt that we have taken on since I have joined the company. There is no ranking. It sits just above the equity.

Speaker #1: So there's no ranking; it sits just above the equity.

Speaker #2: Yeah, okay. I guess, are there any other terms or market-linked terms, such as price discounts, or anything beyond the 410% interest payable for that repayment place?

Daniel Roden: Yeah. Okay. Are there any other terms or market link terms, such as price discounts or anything beyond the 14% interest payable for that repayment, please?

Speaker #1: Look, I mean, it is in the nature of a customer offtake agreement, so there is commercial sensitivity to that. I think the best way to think about it is, it's in the nature of what these prepaid deals usually are, and it is kind of at market for a prepaid deal like this.

Barrie van der Merwe: Look, it is in the nature of a customer off take agreement, so there is commercial sensitivity to that. I think the best way to think about it is, it is in the nature of what these prepaid deals usually are and kind of is at market for a prepaid deal like this. You look at the interest rate of 14%, so it is a bit higher than the ABL, but the ABL is fully secured. ABL sits at 9% to 12%. This sits at 14%. It just reflects the fact that it is unsecured. The rest of it is similar to a customer arrangement, really.

Speaker #1: You look at the interest rate of 14%, so it's a bit higher. And the ABL—but the ABL is fully secured, so ABL sits at 9% to 12%.

Speaker #1: This sits at 14%, and so it just reflects the fact that it's unsecured. The rest of it is similar to a customer arrangement, really.

Speaker #2: Yeah, okay. And I just wanted to get a bit of clarity on, I guess, the rationale for drawing down the $75 million—or it hasn't been drawn yet, but the rationale for making that $75 million available—given you continue to have Stanwell, I guess, prepayments and liquidity options available that I assume would be more favorable terms than this.

Daniel Roden: Yeah. Okay. I just wanted to, I guess, get a bit of clarity on, I guess, the rationale for drawing down the 75 or it hasn't been drawn yet, but the rationale for making that 75 available, given you continue to have Stanwell, I guess, prepayments and liquidity options available that I assume would be at more favorable terms for this. The Glencore is pretty short-term in nature and it has got a pretty high cost relatively. What is the rationale for, yeah, I guess having that option available?

Speaker #2: The Glencoe is pretty short-term in nature, and it's got a pretty high cost, relatively. What's the rationale for, yeah, I guess, having that option available?

Speaker #1: Yeah, look, the rationale does fit in with what they're busy with currently. I think it is safe to say that Sandeep and the team's been managing the liquidity position well, but a company of our scale with $100 million in cash doesn't have a lot of buffer for either unexpected operational events or things going wrong.

Barrie van der Merwe: Yeah, look, the rationale does fit in with what we are busy with currently. I think it is safe to say that, I think Sandeep and the teams have been managing the liquidity position well. But a company of our scale with $100 million in cash doesn't have a lot of buffer for either unexpected operational events or things going wrong. So the first rationale is a bit of buffer that it gives us. The second is, as part of this reset program, there is a big focus on getting the inventory levels right. ROM stockpiles, crush stockpiles, to get us to a place where the system can be ran more stably. Some of this is to allow us to set those inventory buffers and to get that in place while we just run the business normally. So it is really down to that.

Speaker #1: So, the first rationale is a bit of a buffer that it gives us. The second is, as part of this reset program, there is a big focus on getting the inventory levels right.

Speaker #1: ROM stockpiles, crushed stockpiles, to get us to a place where the system can be run more stably. And so some of this is to allow us to set those inventory buffers and to get that in place, while we just run the business normally.

Speaker #1: So it's really down to that—a bit of buffer for unexpected things, one, and then two, to enable us to follow through with a reset program.

Barrie van der Merwe: A bit of buffer for unexpected things, one, and then two, to enable us to follow through with the reset program. Then ultimately get to a place in the next six to 12 months where the benefits from the ramp-up program is fully realized. That is both cost savings baked into the cost base, but also the CHPPs at Curragh running such that we are getting the right mix, getting the full margin. By that time, Glencore will be paid back, but we would have improved the business, such that we then generate hopefully more than that that we have got from Glencore to take us forward.

Speaker #1: And then ultimately get to a place in the next 6 to 12 months where the benefits from the ramp-up program are fully realized. And that’s both cost savings baked into the cost base, but also the CHPPs are currently running such that we’re getting the right mix, getting the full margin. By that time, Glencoe will be paid back, but we will have improved the business such that we then generate, hopefully, more than what we got from Glencoe.

Speaker #1: To take us forward.

Speaker #2: Yeah, okay. No, thank you. And I might just make one more, before I hand it over. But just, I guess, at the June quarter— I just wanted to unpack, I guess, Mammoth a little bit more.

Daniel Roden: Yeah. Okay. No, thank you. I might just sneak one more in before I hand it over. Just, I guess, at the June quarter, I just wanted to unpack, I guess, Mammoth a little bit more, and how the, I guess, the mining ROM conditions are going at the moment. What rates are you seeing into Q3 to date, if we could get color there, and just noting that we've, presumably, I guess, deferred stage 2 and 3 a little bit, just in the revised plans. What conditions would you need to see to, I guess, reinstitute an acceleration of the stage 2 and 3 growth plans there? Thanks.

Speaker #2: And how are the, I guess, the mining ROM conditions going at the moment? What rates are you seeing into Q3 to date, if we could get some color there?

Speaker #2: And just noting that we've presumably, I guess, deferred Stage Two and Three a little bit, just in the revised, I guess, plans. What conditions would you need to see to, I guess, reinstitute an acceleration of the Stage Two and Three growth plans there?

Speaker #2: Thanks.

Speaker #1: Yeah. Okay, Dan. No, that's very good. I mean, as I said in the presentation, the impact of that fatality on the mine that was in ramp-up at the start of the year was significant.

Barrie van der Merwe: Yeah. Okay then. No, that's very good. I mean, as I said in the presentation, the impact of that fatality on the mine that was in ramp-up at the start of the year was significant. Coming back from that has been a bit harder than what we hoped. I think if you look at the rates, we are working the rates hard to get up to that. We think about it per day to get to 6,000 tons per day. That's kind of 2,000 per continuous miner fleet unit. I'd say it's mixed. At times, two of them hit the 2,000 and one doesn't. Mainly a result of geological conditions that we encounter at times, faulting, et cetera, that sometimes sets us back. I'm confident we'll get it there.

Speaker #1: So, coming back from that has been a bit harder than what we hoped. I mean, I think if you look at the rates, we are working the rates hard to get up to that.

Speaker #1: We think about it per day, to get to 6,000 tons per day. So, that’s kind of 2,000 per continuous miner fleet unit. I’d say it’s mixed at times.

Speaker #1: Two of them hit the 2,000, and one doesn't—mainly a result of geological conditions that we encountered at times, faulting, etc. That sometimes sets us back.

Speaker #1: I'm confident we'll get it there, but for this year, we won't get to the 2 million tons we set because there was the fatality, and then the ramp-up is taking a bit longer.

Barrie van der Merwe: But for this year, we won't get to the 2 million tons we set because there was the fatality, and then the ramp-up is taking a bit longer. But I'm confident we can get it up there. Will we get it to 2 million tons pushing as hard as we can? We may end up getting closer to 1.8 if you look at it. We've had good collaboration with our US team on that. We had that whole US team from the ex Logan mines that we sold out there. Those guys are Expert bord and pillar miners. They've done a lot of work with us and looking through what can be done to optimize both the sequences, development sequencing. There's a whole 17-point plan that we've got to kind of get it to where we should.

Speaker #1: But I'm confident we can get it up there. Will we get it to 2 million tons, pushing as hard as we can? We may end up getting closer to 1.8, if you look at it.

Speaker #1: We've had good collaboration with our US team on that. We had the whole US team from the ex-Logan mines that we sold out there.

Speaker #1: I mean, those guys are expert bord and pillar miners. They've done a lot of work with us, and looking through what can be done to optimize both the sequence's development sequencing, there's a whole 17-point plan that we've got to kind of get it to where we should.

Speaker #1: So, long way of saying not quite where it should be, but I'm confident we'll get it to a place where it contributes. A big part of it is getting it to make a PCI coal, a low-ash PCI coal, and get it through the plant successfully.

Barrie van der Merwe: Long way of saying, not quite where it should be, but I'm confident we'll get it to a place where it contributes. A big part of it is getting it to make a PCI coal, a low ash PCI coal, and get it through the plant successfully. Recently we've had some good success with achieving that as well. I think things are looking up for Mammoth. When you look at phase II and phase III, I'd say that is on pause a bit simply because with this new mine plan, we had to jiggle things around to bring forward Expert. We just need to cross the bridge with Expert.

Speaker #1: And recently, we've had some good success with achieving that as well. So I think things are looking up for Mammoth. When you look at Phase Two and Phase Three, I'd say that is on pause a bit, simply because with this new mine plan, we had to jiggle things around to bring forward expert.

Speaker #1: So we just need to cross the bridge with expert. We look at our LOMs again, as we do that at the end of the year, and then think a bit more as to, with expert coming forward, where could a next phase or two of the underground come in.

Barrie van der Merwe: We look at our loans again, as we do that at the end of the year, and then think a bit more as to, with Expert coming forward, where could the next phase or 2 of the underground come in.

Speaker #2: No, thanks, Barry. I'll hand it over. Appreciate it.

Speaker #1: Thanks, Dan.

Daniel Roden: No, thanks, Barrie. I will hand it over. Appreciate it.

Speaker #3: Thank you. The next question comes from Glenn Lawcock from Barrenjoey. Please go ahead.

Barrie van der Merwe: Thanks, Dan.

Operator: Thank you. The next question comes from Glyn Lawcock from Barrenjoey. Please go ahead.

Speaker #2: Oh, good morning, Barry. Just back on the Glencoe prepayment, it roughly works out to just under half a million tons of coal to be delivered at prevailing prices.

Glyn Lawcock: Good morning, Barrie. Just back on the Glencore prepayment. It roughly works out about just under half a million tons of coal to be delivered at sort of prevailing prices. Do you have a choice as to where that comes from, or is it one particular mine it all comes from? Thanks.

Speaker #2: Do you have a choice as to where that comes from, or is it one particular mine it all comes from? Thanks.

Speaker #1: Yeah, so, I mean, I think you're right in terms of the net number of tons, or the gross number of tons at full value, that will replace it.

Barrie van der Merwe: Yeah. I think you are right in terms of the net number of tons or the gross number of tons at full value that we place it. The way the thing structures, it is more tons within a smaller discount that replaces, but that is fine. The mix is, it is from both Curragh and Buchanan. So there is, as Sandeep said, there is two agreements, one is with Buchanan, and one is with Curragh.

Speaker #1: The way the thing's structured is, it is more tons with than a smaller discount that replaces it, but that's fine. The mix is, it's from both Garra and Buchanan.

Speaker #1: So there's, as Sandeep said, two agreements: one with Buchanan and one with Garra.

Speaker #2: Okay, so, but there's a set volume per mine, or you can mix and match?

Glyn Lawcock: Okay. But there is a set volume per mine, or you can mix and match?

Speaker #1: There are minimums per mine that we signed up to. I mean, I'm sure, in the nature of these things, if we have to jiggle things around, that can be a commercial conversation to have with Glencore if needed.

Barrie van der Merwe: There is minimums per mine that we signed up to. I am sure in the nature of these things, if we have to jiggle things around, that can be a commercial conversation to have with Glencore if needed.

Speaker #2: Yeah, I'm sure they'll make you pay for any commercial negotiation. Just back on the business, I think Sandeep said in his presentation, you're not yet cash-generative.

Glyn Lawcock: Yeah, I am sure they will make you pay for any commercial negotiation. Just back on the business, I think Sandeep said in his presentation you are not yet cash generative. I assume he was referring more to Q2. If we sit here now 5 weeks into Q3 with prevailing prices, is the business now standing up right on its own two feet from a cash generation perspective?

Speaker #2: I assume he was referring more to weeks into Q3 with prevailing prices. Is the business now standing upright on its own two feet from a cash generation perspective?

Speaker #1: Glenn, that's the— I mean, that's the work we're doing. To get there, the lag in pricing does mean that in Q3 we'll probably still be benefiting from the higher prices from earlier.

Barrie van der Merwe: Well Glenn, that is the work we are doing to get there. The lag in pricing does mean that in Q3, we will probably still be benefiting from the higher prices from earlier. That will come through in the cash flow. So that is good. The cost outs are not all. We are standing them up, but they are not all there. We are parking the dragline. We are winding down the fleets. Some of that still has to come through, in the cash spend. We are pushing our hardest to get it as close as we can, and then mining is mining. Things happen at times, whether it is geology or starter conditions or whatever you have to navigate. I cannot give you a yes or a no, but we are pushing as hard as we can to get there, and we are pulling, I think, the productivity and cost levers to get there.

Speaker #1: That'll come through in the cash flow, so that's good. The cost-outs are not all—I mean, we're standing them up, but they're not all there.

Speaker #1: So we've kind of—we're parking the dragline, we're winding down the fleets, some of that's still yet to come through in the cash spent.

Speaker #1: So we—I mean, we're pushing our hardest to get it as close as we can. And then, mining's mining, and things happen at times.

Speaker #1: Whether it's geology, or startup conditions, or whatever, you have to navigate. So, I can't give you a yes or a no, but we're pushing as hard as we can to get there, and we're pulling, I think, the productivity and cost levers to get there.

Speaker #1: That's the intent of the whole thing, is to get—and it's a Garra conversation, right? To get Garra to a place where, I'd say, at a 220 PLV level, we've got it to a place where it's comfortable, and it breaks even, it converts CAPEX, it converts Standwell debt, because we've got that coming next year too.

Barrie van der Merwe: That is the intent of the whole thing is to get. It is a Curragh conversation, right? To get Curragh to a place where I would say at a 220 PLV level, we have got it to a place where it is comfortable and it breaks even. It can pay its CapEx. It can pay its Stanwell debt because we have got that coming next year, too.

Speaker #4: And just to add, Glenn, as I mentioned in my speech, Logan is now obviously sold. So, the drag that we've got from that—if you look at the loss that we incurred from Logan in the first half, about $30 million, right?

Sandeep Deoji: Just to add, Glenn, as I mentioned in my speech, Logan is now obviously sold, so the drag that we have got from that, if you look at the loss that we incurred from Logan in H1, it is about AUD 30 million, right? That is not going to repeat itself in H2. We should see benefits of that coming through as well.

Speaker #4: So that's not going to repeat itself in the second half, so we should see the benefits of that coming through as well.

Speaker #2: Okay, that's great. And maybe just squeezing in a final one—I think you've also said in the release that production sales exited the second quarter at materially higher run rates. Could you give us a sense of what you're running at now versus Q2?

Glyn Lawcock: Okay, that is great. Maybe just squeeze in a final one. I think you also said in the release, production sales exited the Q2 at materially higher run rates. Could you give us a sense of what you are running at now then, versus Q2? Are we now at that sort of 16 million ton, the bottom end of your range run rate? I know you have made comments around, you want to build inventory, so maybe you will end up with a build of ROM, not wash it.

Speaker #2: Are we now at that sort of 16 million ton, the bottom end of your range run rate? I know you've made comments around wanting to build inventory, so maybe you'll end up with a build of ROM, not wash it, but just a sense of where we're running now.

Barrie van der Merwe: Yeah.

Glyn Lawcock: Just sort of sense of where we are running now.

Speaker #1: Yeah, I mean, I'd say that the Q2 run rate, that's probably where the mining runs, and then the plants, things around that, and that's a fair assumption.

Glyn Lawcock: Just sort of sense of where we are running now.

Barrie van der Merwe: Yeah, I would say that, the Q2 run rate, that is probably where the mining runs, and then the plant swings around that. That is a fair assumption.

Speaker #2: Okay, so Q3—sort of similar mined rates, so similar produced rates, but maybe higher ROM rates.

Glyn Lawcock: Okay. So Q3 sort of similar mined rates, so similar produced rates, but maybe higher ROM rates.

Speaker #1: Yeah, I mean, I'd say mining's similar, and then when you think about product, just be a bit cautious about—we're not pushing thermal if we don't have to push thermal.

Barrie van der Merwe: Yeah. I would say mining is similar, and then when you think about product, just be a bit cautious about we are not pushing thermal if we do not have to push thermal unless it is Stanwell commitments. Just keep that in mind. But I would say the business, the pace of the business, the mining business is similar to Q2 currently.

Speaker #1: Unless it's standwell commitments. So just keep that in mind. But I’d say the pace of the business, the mining business, is similar to Q2 currently.

Speaker #2: Yeah, okay. Thanks very much.

Speaker #1: Thanks, Glenn.

Glyn Lawcock: Yep. Okay. Thanks very much.

Speaker #3: Thank you once again. To ask a question, please press star one on your phone. The next question comes from Fintan Collins from UBS. Please go ahead.

Barrie van der Merwe: Thanks, Glyn.

Operator: Thank you once again. To ask a question, please press star 1 on your phone. The next question comes from Fintan Collins from UBS. Please go ahead.

Speaker #5: Thanks, guys. Just one guidance. You've noticed that the RESET program is focused on maximizing high-margin net coal production, operational stability, margin realization, and cash flow.

Fintan Collins: Thanks, guys. Just following guidance. You've noted that the reset program is focused on maximizing your high-margin met coal production, operational stability, margin realization, cash flow, rather than simply targeting the highest possible sellable tonnage regardless of product mix. You've also noted that you're reconsidering the most appropriate volumetric guidance metric going forward. Can you elaborate on how investors should think about any revised guidance metric going forward? Thank you.

Speaker #5: Rather than simply targeting the highest possible sellable tonnage, regardless of product mix, you've also noticed that you're reconsidering the most appropriate volumetric guidance metric going forward.

Speaker #5: Can you elaborate on how investors should think about any revised guidance metrics going forward? Thank you.

Speaker #1: Yeah, thanks. Thanks, Fintan. It kind of links back to this conversation that we've just had with Glenn, really, about—I think the focus should be on: what's the rate at which the mining business runs?

Barrie van der Merwe: Yeah, thanks. Thanks, Fintan. It kind of links back to this conversation that we've just had with Glyn, really, about I think the focus should be on what's the rate at which the mining business runs the plant. It actually happens to be the case for both Buchanan and Curragh that the plants are constrained now. Then I'd say you'd work to maximize value around your plants. So if you build a bit more stock, but you realize more margin after the cutoff of the period, so be it. As a board, we've not landed on what we'd guide, but my sense is that when you talk volumetric guidance, aiming it more at the mining business as opposed to just the saleable production output may be a sensible place to go.

Speaker #1: The plant—and it actually happens to be the case for both Buchanan and Garra—that the plants are the constraint now. Then, I'd say you'd work to maximize value around your plants.

Speaker #1: So, if you build a bit more stock, but you realize more margin after the cutoff of the period, so be it. So, as a Board, we've not landed on what we'd guide, but my sense is that when you talk volumetric guidance, aiming it more at the mining business as opposed to just the saleable production output may be a sensible place to go.

Speaker #5: Thank you. And then just a quick one on the through-cycle EBITDA. You presented a framework suggesting approximately $425 million of through-cycle EBITDA.

Fintan Collins: Thank you. Then just a quick one on the through-cycle EBITDA. You presented a framework suggesting approximately $425 million of through-cycle EBITDA, yet at the moment the market's seeing the business generating only modest positive earnings even after the operational recovery. Can you quantify the bridge from the current run rate to that $425 million outcome, and what proportion relies on operational execution versus the more constructive met coal price environment? Thank you.

Speaker #5: Yet at the moment, the market’s saying the business is generating only modest positive earnings, even after the operational recovery. Can you quantify the bridge from the current run rate to that $425 million outcome?

Speaker #5: And what proportion relies on operational execution versus the more constructive net coal price environment? Thank you.

Speaker #1: Look, I mean, I'd say—and we've not done the analysis—but with what I know of the East City and of the business, I would say that prices drive a lot of that, really, a lot of that.

Barrie van der Merwe: Look, we've not done the analysis, but with what I know of the E3 and of the business, I would say that prices drive a lot of that, a real lot of that. The operational improvements we're working on currently, and it might make you a bit better than that at similar prices, bar the impact of inflation might dilute over time, might dilute some of the benefits we're building into the business now. But the strategy of really focusing on maximizing met coal and the value of that should not be underestimated. I think it's a very valuable lever, and it could be very favorable to earnings. So Chantelle can chat to you afterwards to bridge it in more detail.

Speaker #1: And the operational improvements we're working on currently might make you a bit better than that at similar prices. But the impact of inflation might dilute over time, might dilute some of the benefits we're building into the business now.

Speaker #1: But the strategy of really focusing on maximizing net coal and the value of that should not be underestimated. I think it's a very valuable lever.

Speaker #1: And it could be very favorable to earnings. So Chantelle can chat to you afterwards to bridge it in more detail, but at a high level, I'd say I think the bulk of it is price, and then there's a trade-off between inflation over the last eight years compared to the improvements we're building into the business now.

Barrie van der Merwe: But at a high level, I would say I think the bulk of it is price, and then there is a trade-off between inflation over the last eight years compared to the improvements we are building into the business now.

Speaker #5: Thank you. That's very clear. Thanks for taking my questions. I'll pass it on.

Fintan Collins: Okay. Thank you. That is very clear. Thanks for taking my questions. I will pass it on.

Speaker #1: Thanks, mate.

Speaker #3: Thank you. That does conclude the question and answer session of today's call. I'll now hand back to Barry for any closing remarks.

Barrie van der Merwe: Thanks, mate.

Operator: Thank you. That does conclude the question-and-answer session of today's call. I will now hand back to Barrie for any closing remarks.

Speaker #1: Good. Thank you very much for joining us today and for your interest and support. As a company, we've got quite a bit of work ahead of us, but I do believe in the company.

Barrie van der Merwe: Good. Thank you very much for joining us today, for your interest and support. As a company, we have got quite a bit of work ahead of us, but I do believe in the company. I do believe in the company's potential. We have got a great team, we have got great assets, we have got the right products, and we have got a plan. We need to do the plan and execute the plan successfully. We are excited about the future. Thanks for joining us, and we will speak again. Thank you.

Speaker #1: I do believe in the company's potential. We've got a great team. We've got great assets. We've got the right products. And we've got a plan.

Speaker #1: We need to do the plan and execute the plan successfully, and we are excited about the future. So, thanks for joining us, and we'll speak again.

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Q2 2026 Coronado Global Resources Inc Earnings Call

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