Highlights

  • Shares jump from 10.5 cents to 15.0 cents following liquidity update at AGM.
  • AUD 150 million facility secured with Oaktree, addressing near-term funding pressure.
  • AUD 75 million drawn immediately, with a further $75 million available over the next 12 months.

Shares of Coronado Global Resources Inc (ASX: CRN) surged 42.9% in morning trade to 15.0 cents, rebounding from yesterday’s close of 10.5 cents, after the coal miner announced a significant refinancing deal aimed at stabilizing its financial footing.

The sharp uptick came after Coronado revealed it has secured an AUD 150 million asset-based lending (ABL) facility from Oaktree Capital Management. The three-year facility, announced during the company’s Annual General Meeting (AGM), is backed by receivables and inventory assets. An initial AUD 75 million will be drawn at close, with the remainder available in AUD 25 million tranches over the next 12 months.

Chairman Gerry Spindler acknowledged the company has been under sustained financial pressure due to weak coal prices and high operating costs. He cited ongoing challenges with working capital, which had necessitated cost-cutting measures and a re-evaluation of operations.

The refinancing is intended to serve as a near-term liquidity bridge, offering flexibility amid volatile commodity markets. Chief Financial Officer Barrie Van der Merwe commented that the deal marks “an important first step” in Coronado’s strategy to stabilize its balance sheet and support operational funding needs.

Van der Merwe also emphasized that the terms of the facility, particularly the design of the covenant thresholds, allow for a more adaptable response to continued pressure in coal pricing. With this funding in place, Coronado aims to navigate its current cost environment while continuing to implement a broader plan to improve its liquidity position.

Today's price action signals renewed investor interest, with the market reacting positively to signs of improved financial management. However, the longer-term outlook will still depend on operational execution and market dynamics in the thermal and metallurgical coal sectors.