Coronado Global Resources Inc.

Good morning, and thank you for joining for another Global Resources First Quarter 2026 Investor Call. I'm Jerry Spindler, Interim Chief Executive Officer, and with me is our Chief Financial Officer, Barry VanderBeer. Today, I will provide an overview of our first quarter's performance, outline the progress we've made following the completion of our expansion programs, outline our latest plans to improve operating performance and cost, and discuss how the business is positioned as we move through 2026. Barry will then walk you through the financial performance and our liquidity position before we open the call for questions. Following the completion of our expansion program over the past two years, Coronado entered 2026 materially higher leverage. As we have previously outlined, we through metallurgical coal markets through the past 18 months placed pressure on earnings and required mitigation measures. As a result, management has commenced a comprehensive operational and financial reset focused on restoring sustainable cash generation through operating performance that will provide resilience through the market cycles. We will be supported in this work by Alix Partners, a well-credentialed turnaround consulting firm. Across the group, the focus has been on increased overburden removal and underground development, full recovery, productivity movements, and capital discipline. The reset includes targeted current mine plan optimization, improved fleet productivity and utilization, and further optimization of the mammoth underground. We have also progressed contract and contractor resets across mining, maintenance, and services, which is expected to directly lower the running cost base and improve cash generation. While reported production volumes in the quarter were lower, Overburden removal was at expected levels at Cura, and production at Buchanan was better than prior quarters' performance, reflecting the contributions of the capital investment. At Cura, the strong overburden removal and improved mine planning enhanced coal recovery capabilities and pit inventories, setting the operation up for increased production through the remainder of the year. At Buchanan, the business successfully absorbed recent expansion capital following the resolution of early commissioning challenges, delivering solid production performance and more than doubling prior quarter EBITDA, despite two long, long moves in the quarter. These outcomes reinforce the strength of our portfolio following the completion of the Manus Underground and the Buchanan expansions. Capital expenditure is moderating, allowing the business to focus on cash preservation. Another material step forward to bolster our tax generation when liquidity is weak was the reset of the Stanwell thermal solar entrance. Under the revised structure, no rebate applies, and during the quarter, The new agreements with Stanwell contributed approximately 50 million U.S. in cash. This change structurally improves Coronado's cash generation profile and provides a meaningful liquidity facility aligned with the cyclicality of the metallurgical coal market. All requested cash flow in the quarter increased. Reflected the timing of production and sales, the business is now in a materially better position than it has been at any point in the past two years. Safety remains our highest priority. The quarter followed two tragic fatal incidents late last year and in early January. Our focus continues to be on supporting affected families and teams. cooperating fully with authorities and strengthening our safety systems through a frontline supervisor development program, leadership engagement, and a review of our systems, processes, and applications across all sites. Turning now to the first quarter of 26th performance. At the group level, the first quarter reflected planned maintenance activity, delayed coal recovery early in the year, and operating circumstances. As a result, ROM production, saleable production, and sales volumes were lower quarter on quarter, noting that the December quarter is historically our highest and the March quarter our lowest. Unit costs were temporarily elevated due to lower throughput, and fixed-cost absorption aligned with the usual quarterly organizational rhythm. However, realized pricing strengthened materially, supported by improved benchmark pricing, a higher PLV, and increased export exposure. Q1 production outcomes reflected normal early-year phasing across the sector, to operational run rates and unit cost performance, trending back to levels that will see us achieve our full-year guidance. Export sales increased to approximately 74% of total group volumes, and the uplift in PLV pricing delivered an 11% quarter-on-quarter increase in group average realized metallurgical coal pricing, to around $165 US per ton. While reported cash flow in the quarter reflected production timing and sales mix, the business is now structurally better positioned than it was entering the year. At Cura, starting with Australia and the Cura complex, Q1 production outcomes at Cura were impacted by planned prep plant maintenance, delayed coal recovery early in the year, and a temporary pause at Manist following the tragic fatal incident in January. Strong overburden removal and improved mine plan execution, increased pit inventory levels, and materially improved coal availability for the remainder of the year. With the major two-week CHTP shutdown completed and expansion infrastructure fully commissioned, FARA is now better positioned to capture operating leverage as run rates increase. Improvements implemented over the past few years have enhanced the site's resilience and recovery capability, reducing the impact of external disruptions and supporting more consistent performance through 2026. The MIME leadership team responded quickly to changing circumstances and navigated the complex first quarter with exceptional responsiveness and resilience.

The U.S.

operations, turning to the U.S. as the pertaining complex, we saw a continuation of strong momentum. exiting 2025, with Buchanan's results continuing to show the high-quality asset that it is. Buchanan delivered higher sales volume, higher sales production, despite two long-law moves, and an 18% increase in realized metallurgical coal pricing quarter-on-quarter. With both long-laws now operating and expansion infrastructure fully commissioned. Shannon continues to demonstrate the quality of the asset following expansion and is positioned for strong, consistent production and returns through 2026. Hogan reflected the ongoing structural challenges in the U.S. hot oil market and is now fully idle, with the business continuing to to shift existing inventory as required by sales commitments. This was a difficult decision, but it was the right decision to preserve cash, protect the balance sheet, and avoid uneconomic production in a structurally challenged market.

We will pursue opportunities where available to sell logging. The metallurgical coal market entered 2026

with increased strength following the recovery that began in late 2025. TLV, HCC, Australia prices averaged around 200 per ton in the December quarter, grew higher into January, and then stabilized around 220 US per ton through March, with some volatility driven by geopolitics and energy markets. In April, the PLD might index have found support around $230 per ton. Outside of China, steel production is expected to gradually improve, supported by stronger Indian demand, trade barriers against lower Chinese steel, and ongoing supply-side discipline. Overall, Coronado's diversified portfolio with low-cost PLD links production in both Australia and the U.S. remains well positioned to benefit from favorable pricing for higher quality metallurgical coal products. Q1 reflected normal earlier phasing for the sector, which is factored into our guidance, and we see Q2 performance naturally stepping up from here. With that overview, I'll now hand over to Barry to watch you through the financial results in more detail.

Thank you, Jerry, and good morning, everyone. Financial performance in the March quarter reflected the fears of required operational activity early in the year. This included the completion of the major plant shutdown of Currah and two long-haul relocations to Cannon. These activities are a normal and necessary part of the mining cycle, and while they temporarily reduced production and earnings in the quarter, they were undertaken to position the operations for strong delivery through the remainder of the year. Stronger realised pricing helped mitigate the impact of the stronger Australian dollar and high diesel costs late in the quarter. Importantly, the stand-well reset transaction that closed late last year had significantly improved the company's cash generation profile heading into 2026, delivering approximately US$50 million of cash benefit during the quarter in the form of prepayments and rebate forgiveness. Realized pricing improved meaningfully on a per-ton basis. Group average realized pricing increased by 9.1% to approximately US$133 per ton, driven by a higher contribution from PLV and increased export production. This does not include the benefit of about $10 per tonne associated with a higher Stanwell payment which is credited to the balance sheet and not the P&L. We will explain more about that with the March quarter financials that's coming up in May. The Australian dollar averaged about 70 cents against the US dollar during this quarter which compares with the guidance assumption Despite the headwind, the uplift in real-life pricing more than offset the FX impact and cost pressures at the operating level, noting that Buchanan has no exposure to movements in the AUD and limited diesel exposure. As a reminder, a one-cent movement in the AUD-USD exchange rate equates to approximately US$15 million of full-year cash flow, highlighting the importance of recent price strengths and ongoing cost improvement work in a stronger currency environment. While volatility in global energy markets may continue to place pressure on fuel prices, our price planning is aligned with current market forward curves. As production rates pick up, coal recovery accelerates, and productivity initiatives break effect, unit cost performance is expected to be at levels required to achieve full year guidance for the rest of the year. The Q1 impacts reflect the planned phasing of operational activity early in the year and do not alter the company's full-year production or cost guidance subject to exchange rate movement. Available liquidity at the end of March was $120 million of cash on hand. The cash level remains at approximately the same level today, reinforcing the improved stability of the company's liquidity position. In addition, the short-term working capital funding levers outlined in the FY25 full-year results presentation estimated that approximately 95 million US dollars remain fully available and have not been utilised in the quarter. The author does not pull any net short-term cash levers or so-called one-day wonders at quarter end to achieve the cash balance and it represents underlying cash in the business I think that inventories were drawn down during the March quarter and will require some rebuilding in the June quarter. As seen in our report, we're actively assessing strategic options for the Logan complex, including potential disposal. This is intended to minimize ongoing idling and holding costs and is expected to be cash accretive relative to an extended care and maintenance scenario. As a result of Logan being fully idled now, Its remaining carrying amount will be impaired in the upcoming quarterly financial result, which will result in a non-cash pre-tax charge of approximately $160 million, still subject to audit review. As Jerry said, in April we started a structural, operational and commercial reset focused on strengthening cash generation and improving the balance sheet. With a major expansion phase now complete, This reset is centred on restructured mine plans, productivity improvements, contractor and fleet optimisation and improved risk sharing with contractors. These initiatives are being implemented within the existing asset base and operating footprint and do not require incremental capital expenditure. As volumes recover following the March quarter, these actions are expected to support improved operating leverage stronger cash flow and continued balance sheet improvement through the remainder of FY26. Looking ahead, forward pricing remains supportive, with the PLV HCC benchmark prices around €230 per tonne into mid-2026. This combines with operational execution, stronger production, a continued focus on structural, operational and commercial resets, and the absence of large-scale expansion capital, Orinado is well positioned to deliver progressively stronger cash generation and balance sheet improvement over the rest of the year. We will release our quarterly financial statements for the period ended 31 March, the market on 12 May. With that, Kylie, we are happy to take questions. Thank you.

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 2. If you're on a speakerphone, please pick up your handset to ask your question. Your first question comes from Daniel Rodden with Jefferies.

G'day, guys. I just wanted to get a bit of additional colour, if we can, on just the impacts that occur from the weather. And you've started to say, like, let's take a few quarters to kind of unwind. How is that going to be characterised over the next couple of quarters? Is that increasing, obviously, stripping production? But is that, you know, impacts to Brom? Is that translating to unit costs? Like, how should we expect to see that come through over the next couple of quarters, please?

We've prohibited, just as a matter of discipline, the reliance on weather as an excuse. But admittedly, the first quarter, it rained in, you know, unseasonable and record amounts, and everybody got compacted. For us, the impact, because the property is reasonably well-drained, very well-drained, in fact, by the McKenzie River going through it, we did not have any issues with machinery breaches or submerged equipment. And the biggest problem was associated with retaining water in the coal pits, the lowest part of the operations. So, cold recovery was impacted, but because the mine drains well, the upper benches continued to operate, sometimes at a reduced capacity because of road conditions, but continued to operate. We did, in fact, enjoy some pretty good dirt removal, particularly from the drag lines. It's a simple issue that if you have removed the dirt and the cold is left, you've got a lower ratio and more productive quarters ahead, just simply from a mathematical standpoint.

The other thing to just think about is the mammoth and the fact that after the fatality on 2 Jan, we basically only got going in mid-Feb. And that's what, as Eddie goes with mine, it's not an on and off situation. It needs to ramp up and get in, you know. So you need to account for that when you think about how the next three quarters will do.

Yes, yes, and that makes a lot of sense to me. So my question is, how have we done?

I guess the timeline there was... you know, ramping up from the fatality was probably a little slower than expected when we talked about it in February. But, you know, is that kind of... Are you seeing a trend in Rantop back towards those 2 million tonne run rates that we were expecting and seeing back in December?

We expect it, yes, we are. OK. I'll hand it over. Thank you very much, guys, and I'll keep back up.

Once again, if you wish to ask a question, please press star 1 on your telephone and wait for your name to be announced. Your next question comes from Gwynne Lockhawk with Darren Jerry.

Morning, Jerry. Excuse me, sorry.

Just going back to the mammoth question, you asked that you're ramping up to two, but when do you think you'll get to two million tons of mammoths, I think?

I think the run rate of 2 million tonnes a year, you can achieve sometimes this quarter. Okay, that's great.

And then maybe just as a whole, I mean, obviously now you've left behind a very tough quarter, as you said, the pricing lag. You're now picking up a $35 a tonne tailwind on price at the PLB level. Does the business today, as you sit here, generate positive free cash flow now?

Do you want to answer that, Barry?

Yes, thanks, Jerry. I mean, Glenn, if you talk about that 235 level, you know, the underlying business would make money. The one call-out that I did say when I spoke was we need to rebuild a bit of inventory. So the business would generate cash, but we'd need to reinvest a bit of inventory because we sold about half a million tons more than what we produced. Okay, so yeah, $235,000 in rate positive cash, just not this quarter potentially because of the inventory bill. Correct. A couple of other quick ones if I could. Logan, just now that it's sort of idled at the mine level, you're just running out the inventory, should that be like a cash-neutral business over the remainder of this year? Just trying to think what sort of dollars have been goes out the door pre any revenue comes in. Thanks.

It depends on pricing and the idle cost and whatever we do in terms of selling the property. But it is unlikely, absent the revenue from the inventory, be cash neutral. It will be out of cost associated.

Okay.

So a little bit of cash leakage at Logan. And then just final question, maybe just could you help us understand the fuel sensitivity a little bit better at current? Like, can you give us a sense of the diesel consumption or what the increase in dollar million spend from diesel's been now that you've probably had a month's worth of higher diesel costs?

Very often, everybody...

Thanks, Jerry. Mr. Glenn, it may be a color thing with those open splits there. So we use about 10 million liters a month, so about 120 million liters per annum. The spend at the pre-Iranian conflict was about 80 million U.S. dollars per year. That's based on our prices linked to the Singapore gas oil, and that was at $130 a barrel. If the forward curve is sitting more at about 190 currently, that will increase our spend to about 120. So if you look at forward pricing, about 50% increase, about $40 million U.S., which is about, what, $2.50 per tonne, you know. So it's a big number, a big cash flow number, but on the unit cost guidance, not a big impact. And then if you think about what it means for price, you know, that probably consumes about, on a PLV basis, $2.50, $4 of that $35 per tonne increase in price that we enjoy in the second quarter.

So the impact of price will far outweigh that. Yeah, no, fully understood. Thanks very much. Thanks, Glenn.

Once again, if you wish to ask a question, please press star 1 on your telephone and wait for your name to be announced. That concludes the question and answer session of today's call. Pardon me, we do have a follow-up question from Daniel Lund with Jefferies.

Sorry, I'll just bump in and ask a quick follow-up on that. Just in the quality of $26 million of the SpendWell prepayment drawn down, I just wanted to ask a quick question on, I guess, the mechanism behind that. So it's been close, $8.6 million a month. You know, I guess, you know, how quickly and aggressively would you be able to draw that down, you know, given that you are in the ratio of, I assume it's a monthly limit on that drawdown. Can you articulate, I guess, what the conditions are around that, what the, you know, I guess, prepayment thresholds are around that and, yeah, just trying to understand some liquidity mechanisms going forward?

That's good, Daniel. So the $50 million we talked about in the quarter, it's got two components to it. The first is the rebate forgiveness, which is about half of that. So say $25 is rebate forgiveness, and then the other $25 is prepayments for coal. The mechanism of that is less of a drawdown and more of a trigger. That prepayment which is driven by Stanwell basically pays the full price for coal as opposed to the discounted price is triggered when our cash balance is less than $250 million. So under those conditions, Stanwell pays a higher price as we get the prepayment. If we go above $250 million, that stops as we don't get the prepayment amount. So it depends on our cash balance. So if you look at where we'll be sitting in the second quarter, and likely the third quarter, we would be receiving that benefit.

Yeah, I guess I'm just trying to understand the rates that you'd be able to draw down on the prepayments. So if I were to take you back, that $26 million over the quarter, divided that by three is $8.6 million. $104 million over the course of the year. Were you able to draw down more than that $26 million in the course of... I'm just trying to understand the rate that you were able to draw that down. I guess what you're saying.

Yeah. I mean, the rate really driven by our delivery standoff. It's driven by the damages that they nominate. So if you look at this here, they nominated the dust. here, and it will pretty much be straight line. So we'll buy the sound deliveries today.

Yes. No, no, no. I got you. Quick, quick, quick. All right. Thank you, guys. Okay. Your next question comes from Rob Stern with Macquarie. Hi, just a quick one for me.

There's been a bit of press speculation around asset sales and whatnot. And I mean, the comment just before, I'm looking for a buyer of Logan. Just strategically, how's the portfolio position going forward? you know, is there still a benefit of having, you know, US-based, Australian-based met cooperation coexisting under the one vehicle? How are you thinking about, you know, the assets, each individual asset position going forward? And then what is the future for Coronado under, you know, that scenario where you do start to split the portfolio up?

Well, the market advantages occur us particularly in today's market, are fairly evident, the broad range of high-quality coals. But I think the real benefit here is the value of Buchanan. Buchanan is a very high-quality low-volume coal, and traditionally it's gone to Brazil and to Europe, and neither of those markets are reflecting the resilience that India, Korea, Japan, currently is. But because we're capable of producing Buchanan at a very low ash and a very low moisture, it is an excellent PCI coal and finds a market, finds a perpetual home in the Asian basin without very much problem, without any problem at all. It sought after coal, and when Australia was embargoed several years ago, it enjoyed strong sales even into China. So we are blessed with the quality of Buchanan's coal, particularly something that really nobody else has. Nobody else has a reserve in the Pocahontas theme of that quality and that extent. and it will continue to enjoy a profitable presence in today's market.

And just on CARA and its volatility associated with pricing and the like, is the asset too volatile to have in a standalone vehicle? Does it need to be absorbed in a bigger company? How should we think about that? Because obviously... looking at the value upside once Stanwell rolls off. Once we get out to a few years' time, it's just there to see, but we're at the mercy of pricing in some respects. How do you think through, you know, continuing to maintain a constant operational mindset through that revenue volatility?

Frankly, if you looked at the pricing or the cost structure of Cura as it has been over the past civil years, there would be valid concerns that the price structure we cannot continue to stand and are working quite hard to reduce. I add a reduced pricing structure, the quality, the deliverability, and the quality of the infrastructure such that it enjoys a very good home in an Asian market and a very reliable cash generation. Well, we've got some work to do there. We recognize that. And that is what the reset and the work we're doing with the outside consultants is currently designed to achieve.

Perfect. Well, thank you very much for that.

Your next question comes from Stanton Collins with UBS.

Thanks, guys.

I'm just wondering if you could provide a little more colour on the recent media reports around the process having commenced through these strategic ownership options at CARA. Just wondering how we should think about this process overall in the context of, you know, portfolio and strategies going forward.

Thank you.

A major tool we've had to manage costs at CARA, because CARA is largely run by several contractors, the operations are largely run by several contractors, is through the mine design, and that has proven to be an imperfect tool. We're currently looking at expanding the inventory of tools we have to manage the cost, and including sharing risks with the contractors sharing the benefits, perhaps, of lower costs and a more considered view of the mine plan and how we implement it. We're going to be using new technologies in order to do that, including AI and often misused word, but one that does have applications here.

Does that answer the question or answer it?

I'll just try to specifically... Are you asking about the AFR article as well that came out earlier this week about car and the process to sell it?

Yeah, correct. Whether or not you'd consider selling that there. Yeah.

I mean, on that one, that's kind of Press speculation is press speculation. We don't comment on any press speculation. I would, from your perspective and everyone on the call, just treat it as such. It's press speculation, and if there was something to say, we would have said it and we would have announced it, but there's nothing to say.

Okay. Thanks, guys. Very clear. Cool. Thank you.

That concludes the question and answer section of today's call. I'll now hand back to Jerry for any closing remarks.

I want to thank you for the attention and attending the session. We look forward to further communications with the market and wish you well. Thank you.