Curragh coal operations owner Coronado Global Resources has secured a financial lifeline as it contends with a period of sustained low metallurgical coal pricing.

The company announced today it had entered into binding commitment for a $US150 million (about $232 million) asset-based lending facility with Oaktree Capital Management affiliate Highland Park XII.

The facility enables the miner to draw an initial $US75 million at financial close, with the remaining $US75 million available to be drawn down in minimum $US25 million increments for a further 12 months.

“Entering into this transaction with Oaktree is an important first step in our strategy to stabilise and strengthen our financial position,” chief financial officer Barrie Van der Merwe said.

“It reflects a clear confidence from a credible lender in the underlying value of our asset base and business fundamentals.

“This facility gives us the flexibility we need to provide an upfront cash injection and fund future working capital needs, while we continue executing on our broader liquidity plan.”

Coronado said the completion of its Mammoth coal expansion project in Queensland and Buchanan expansion in the United States was expected to result in a sales volume increase and lower capital expenditure in the second half of this year along with significant sustainable operating cost reduction.

Mammoth is expected to end the 2025 calendar year with run-rate production of 1.5-2.0Mt and the Buchanan expansion with 1.0Mt.

The company has been restructuring the business to preserve cash in the face of challenging market conditions.

In its March quarterly report the company said its cost position had materially improved on the 2024 March quarter, with the average mining costs per tonne sold down 10 per cent.

This was driven mainly by removing five excavator and truck fleets at the Curragh complex in Central Queensland.

Further cost and capital reductions of up to $US100 million were expected to be realised over the remainder of the financial year through rephasing development at the Buchanan complex, idling surface operations at the Logan complex (USA), and across-the-board budget reductions at Curragh.

Coronado chair Gerry Spindler told the group’s AGM today that the metallurgical coal sector was experiencing sustained low pricing, rising operational costs, and constrained access to capital – testing the resilience of all participants.

“Liquidity remains stretched. Like many peers, we’ve experienced unrelenting pressure on working capital and have had to make tough but necessary decisions to preserve the core value of our business,” he said.

“Our focus has been on safeguarding the future of the company, not just surviving today’s headwinds.”

The company’s cash balance as at the end of May 2025 was approximately $US160 million.