US-Australian producer Coronado’s available liquidity rose 58% in July-September, from $98 million (A$140 million) to $155 million, largely because of a $75 million coal prepayment from Glencore.
But Coronado spent approximately $50 million on interest, insurance, and capital spend payments, it told investors in a quarterly report on 22 October. The company also deferred some supplier payments until the October-December quarter, it said.
“[Coronado] remains focused on converting improving operational performance, stronger inventory levels, better product mix outcomes and increasing production consistency into sustainable free cash flow generation,” it added.
Early in the July-September quarter, Coronado inked an interest-bearing prepayment deal with Glencore, the company said on 11 August. It will repay $75 million to Glencore, with 14% interest, over the next year, the company added.
Coronado signed its liquidity deal with Glencore just over a year after Queensland state-owned generator Stanwell – in June 2025 – backed it with a $150 million coal prepayment deal. Stanwell provided Coronado with short-term liquidity, repayable with 13% interest, in exchange for up to four million tonnes of coal over 2027-2032, the miner said at the time.
Fitch downgraded Coronado’s long-term issuer default rating from CCC+ to CCC- on 24 June 2025, largely because it expected the company to run out of cash within the first half of 2026.
“We believe [Coronado] has some options to boost liquidity within the next six to nine months … [but] carry significant risk amid [coking coal price uncertainty],” Fitch said at the time.
Fitch withdrew its Coronado rating in November 2025 because the company stopped participating in the ratings process.
Coronado has benefitted from coking coal price hikes in recent months. It sold coking coal for $173/tonne, on average, in January-September, up from $149/tonne over the same period in 2025.
By Avinash Govind