Coronado secures US$150m ABL facility to strengthen financial position

Coronado Global Resources (Coronado) has secured a US$150m asset-based lending (ABL) facility from US asset manager Oaktree Capital Management (Oaktree) in a strategic move to bolster its financial stability. The metallurgical coal producer’s subsidiary, Coronado Finance, finalised a binding commitment with Highland Park XII, affiliated with Oaktree, to refinance its existing ABL facility.

The new three-year facility, backed by receivables and inventory assets, will initially provide US$75m, with the option to access the remaining US$75m in US$25m increments over the following year.

Chief Financial Officer Barrie Van der Merwe emphasized that the deal marks a pivotal step in the company’s broader strategy to stabilize liquidity. He noted the arrangement not only provides an upfront cash boost but also supports future working capital requirements. Designed with flexible covenant thresholds, the facility allows Coronado to weather the current volatile commodity market.

This refinancing is part of a comprehensive liquidity and balance sheet management effort, which includes advancing two major projects: Mammoth in Queensland and the Buchanan expansion in the US. Both remain on schedule and within budget.

Completion of these developments is expected to boost sales volumes and reduce capital expenditures in the second half of the year. Operational costs are also forecast to decline significantly, creating long-term efficiencies.

The Mammoth underground project, in particular, is seen as a catalyst for strategic improvements at Coronado’s Curragh complex. By the end of 2025, the company anticipates achieving run-rate production of up to 2 million tonnes at Mammoth and 1 million tonnes at Buchanan.

With operations in Queensland’s Bowen Basin and the U.S.’s Central Appalachians, Coronado is positioning itself for a more resilient and cost-efficient future.