Coronado Global Resources Inc.

I would now like to hand the conference over to Chief Executive Officer and Managing Director Barry Vandermoer. Please go ahead.

Thank you, Travis, and good morning, everyone. Thanks for joining us today. Nothing is more important than ensuring our people return home safely every day. While we continue to work through initiatives to improve both our TRIR and severity rate, we recognize there's much more to do. Through our leadership development program, continued focus on critical controls and management verification thereof, risk assessment and management, as well as frontline engagement, we are committed to building a strong safety culture. As of 30 September, the group TRIR was 1.42, up 6% from 1.34 for the June quarter, and we continue working to drive this trend down. When we spoke in July, I outlined our reset plan. We discussed changing the mine plan to improve productivity and cost, reducing execution risk, establishing appropriate inventory buffers, improving operational stability, while prioritizing margin over volume. During the September quarter, we started to see some benefits of that work. Karo-Rom production reached its highest quarterly level in six years Strip ratios reduced, mining costs reduced, inventory levels increased, quality and mix improved, and earnings rose. These are all leading indicators that the reset is working. If you look at the business today, thorough ROM production is no longer the primary issue. It produced 4.2 million tons during the quarter, the highest since September 2020. The opportunity at work now is to convert that into saleable, high-margin metgal tons through improved CHPP throughput, recovery, and operating consistency. The revised CARA mine plan is delivering the outcomes we expected. Open-cut mining performance improved, strip ratios reduced, and lower waste movement in the south translated directly into lower costs. Mining cash costs also reduced by approximately 18 million US dollars, queue-on-queue, as low as step ratio coal in the south, reduced overburden movement, and improved productivity. This will help us to invest in waste mining in the north next year to continue setting it up for increased productivity. We also built inventory during the quarter. Karo-Rom inventory increased by 600,000 tons to approximately 830,000 tons, at the end of September. As part of the reset strategy, these inventories improve system stability, provide continuity and flexibility ahead of the wet season, and create future saleable production as CHPP performance continues to improve. We are starting to see improving reliability and runtime of the CHPPs, and some benefits are flowing through into higher value metallurgical coal production as is evidenced by the 200,000 tons more HCC production queue on queue. There's still good opportunity remaining in the CHPPs with targeted improvement of about 10% in uptime and rate, as well as a yield uptick to be achieved over the coming months. This work is focusing on automation of raw coal reclaimers to achieve improved feed rates, updating the plant control logic to optimize sequence, performing key critical equipment repairs, improving maintenance workflows, and updating operating guidelines and trigger action response plans. We are adopting a programmatic approach to plant improvement. Our open-cut mining is delivering close to the required level, and the CHPPs are catching up to unlock the inherent value. On Mammoth, progress remains slower than what we had hoped. The mine continues to be impacted by extensive faulting in two panels, and as a relatively new underground operation, we continue to build our understanding of the geology. While this has affected development rates and production outcomes during the year, we remain hopeful in the long-term potential of this asset. The operator, Eclipse, has implemented a detailed improvement program with our support, and their significant focus on improving productivity development rates and operational consistency, together with associated management changes to drive the plan. While further improvements are required, Mammoth remains an important source of potential future upside for our business. Turning now to Buchanan. The most significant factor affecting group performance during this quarter was the geological fault encountered in the South Longwall. One of the two panels operated at this mine. The resulting roof conditions reduced ROM production by approximately 700,000 tons relative to the June quarter and materially affected production of premium low vol met coal products. The disruption also increased operating costs through additional support requirements and void fill activities while reducing the operation's ability to recover fixed costs across the production base. This issue has now been successfully worked through and learnings embedded for the future. This should be viewed as an isolated event that is not expected to occur at the same scale. The operation has progressed through the faulted area, long-wall advance rates have returned to normal, and we do not view the quarter's performance as representative of the asset's underlying quality, capability, or long-term economics. Despite these challenges at Buchanan and Mammoth, and with more opportunity remaining in the current CHPPs, the group generated approximately US$44 million of EBITDA earnings during the quarter. This was our strongest quarterly earnings performance since the June quarter of 2024, and a substantial improvement on the US$7 million delivered in the previous quarter. The improvement was driven by four key factors. Firstly, realized pricing improved as benchmark metallurgical coal pricing strengthened, and our product mix continued to improve. The PLV index was up about $10 per ton quarter-on-quarter. It's currently up a further $20 a ton, voting well for the December quarter. Secondly, the color reset, delivering lower costs. Low estope ratio mining and improved mine plan execution, reduced waste movement and improved productivity. Mine cash costs were down about $18 million quarter on quarter. Thirdly, there are early benefits from improved plant uptime and operating stability, resulting in greater production of high-value met coal and reduced reliance on lower-value thermal coal sales, with 200,000 tons more HCC produced quarter on quarter, contributing to a 2% improvement in the group's realized price relativity to the index. Lastly, we built a further 600,000 tons of ROM stock at Currah to improve system stability and set us up for the wet season. These outcomes provide further evidence that the Reset strategy is moving the business in the right direction. As we are in the final quarter of the year and the Reset program is starting to embed, We are updating our FY26 guidance. We expect saleable production of between 14 and 14.5 million tonnes and mining cash costs of between $105 and $110 per tonne for the full year. This revision does not reflect a deterioration in the underlying quality of our assets. The open-cut mining system at Currah is performing better than it was six months ago, and Buchanan had an isolated geological issue. Overall, ROM production is stronger and more resilient. Inventory levels are appropriately higher. The product mix is improving, and the mine plan execution is also improving, with costs reducing. Rather, this revision reflects the impact of a slower ramp-up at Mammoth predominantly driven by geological conditions referred to earlier, the ROM impact at Buchanan during the September quarter, and the time required for the reset plan, in particular CHPP performance, to fully translate into saleable met coal production, as well as our deliberate decision to not bypass coal that can later be washed to yield higher margins. Also, a stronger AUD and higher diesel costs, which is outside our control, growth costs up materially, and Sandeep will unpack this later. We focus on margin, not total product tons, and as I said before, we are not chasing a total tonnage number at the expense of mix. In September quarter, we produced 3.4 million tons of saleable production, down 700,000 tons quarter on quarter, yet EBITDA improved materially. By year-end, we expect to have more than 1.5 million tonnes of ROM inventory at Currah, setting us out well for the wet season, as well as overall system stability into the new year. Before I hand over to Sandeep, a quick word on markets. The met coal market remained constructive throughout the September quarter. The Australian PLVHEC benchmark averaged approximately 248 per tonne during the quarter, compared with approximately 238 in the June quarter. Pricing has strengthened further since the quarter end and we expect good flow-through of higher prices into December. While near-term market volatility will undoubtedly remain, the medium-term outlook continues to be supported by steel demand growth in India, constrained global supply growth and the lack of significant new met coal developments globally. We continue to believe the outlook for high-quality met coal remains attractive. I'll now hand you over to Sandeep to discuss the financial performance, liquidity, and balance sheet.

Thank you, Barry. The September quarter represented a step forward financially, despite lower production and operational disruptions that began. The most important outcome was a significant improvement in earnings. As Barry mentioned, the group earnings increased from $7 million in the June quarter to approximately $44 million in the September quarter. a strongest quarterly result in more than two years. This improvement was driven by higher pricing, lower mining costs at Currah, improved product mix outcomes, and the build of unsold coal into inventory, including our decision not to bypass ROM production as low-value thermal coal. Coal revenues increased to approximately $558 million in the September quarter, compared with $506 million in the June quarter. Group realized Metco pricing increased to $184 per tonne, compared with $171 per tonne in the prior quarter. Australian realized Metco pricing improved to 75% of the PLV benchmark, up from 72% in the June quarter, reflecting continued progress in product mix optimization. On costs, total mining cash costs at Currah were around $18 million, lower than the June quarter. reflecting the lower strip ratio under the revised mine plan. On a per-ton basis, group mining cash costs increased to $113 per ton because our fixed cost was spread over fewer tons. Mainly at Buchanan, our unit cost rose to $132 per ton on lower volumes. The revised full-year cost guidance of $105 to $110 per ton reflects around $5 per ton from lower volumes, and around $7 per tonne from the stronger Australian dollar and higher diesel fuel prices. While earnings improved significantly, cash flow continued to be affected by several timing-related and one-off factors in the quarter. Port congestion at Currah resulted in vessel loading delays of between 10 and 14 days. At quarter end, approximately 600,000 tonnes of coal was held at port awaiting shipment. Those delayed vessels represented approximately $50 million of revenue, with most vessels already having sailed now in October. We also continued to invest heavily in inventory. Paris-Rome inventory increased by approximately 600,000 tons to around 800,000 tons at the end of September. We also carried the semiannual interest payment on our senior secured notes and paid our annual insurance premiums in the quarter. Lastly, the geological disruptions at Buchanan impacted production volumes and consequently revenue and cash generation. As Barry outlined, much of the inventory build was deliberate, although CHPP constraints and port conditions also contributed. Having these levels of inventory supports system stability, improves operating flexibility, and positions the business to benefit from future improvements in plant performance while providing an inventory buffer ahead of the web season. Adjusting for these items and excluding the prepayment arrangements, the underlying business would actually be cash flow positive in the quarter. The underlying financial performance was stronger than the cash flow results may initially suggest. Liquidity strengthened materially in the September quarter. Available liquidity increased by $57 million in the quarter to approximately $155 million at the end of September. It was supported by the $75 million Glencore prepayment arrangement completed in August and reflects management's continued focus on maintaining adequate financial flexibility while the RESET program progresses. Net debt reduced to $553 million compared to $606 million at the end of June. It is important to note our net debt measure excludes the liabilities relating to Glencore and Stanwell prepayment arrangements. We have no significant debt maturities until our senior secured notes mature in October 2029. Capital expenditure for the year is expected to be around the bottom end of 150 to 175 million guidance range. We remain focused on liquidity preservation, cash generation, and balance sheet repair. The business may not yet be exactly where we want it to be, but the trajectory is clearly improving. As operational improvements continue and inventories are converted to sales, expect stronger earnings and cash conversion moving forward. I'll now hand back to Barry for some closing comments before we move to questions.