Coronado Global Resources secures loan waivers as lender exits
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The news: Metallurgical coal producer Coronado Global Resources has received a further extension of the waiver on its asset-based lending (ABL) facility as one lender exits.
The context: The lender that is exiting the ABL facility is currently undrawn. The loan waiver will help the company withstand low metallurgical coal prices.
The requirement that Coronado hold USD100 million ($156 million) in cash as a condition of the ABL facility has been waived alongside “all other financial covenants and review events”, the company said in a statement to the exchange.
The company’s cash balance at the end of May 2025 was about USD160 million. The company’s operating performance in the current June quarter has been affected by heavy rainfall in April, planned enabling works for its expansion projects, unplanned maintenance in May, and higher than expected rainfall late in the month.
The waiver does not have a specific time limit and supports the finalisation and execution of plans to improve liquidity. Coronado has drawn down USD22 million of bank guarantees under the ABL facility which were all cash backed during May, as stated in its March quarterly report.
In the five months to the end of May Coronado spent about USD140 million of capital expenditure leaving about USD80 million expected to be spent from June to December. The company expects it will complete the Mammoth and Buchanan expansion projects in the second half of the year.
The source: ASX
