Fund Manager Summary
The fund managers believe that the outlook for Coronado Global Resources Inc. presents a significant investment opportunity. They emphasize that Coronado is the largest producer of metallurgical coal in Australia and is among the lowest quartile cost producers globally. In their opinion, the recent dip in met-coal prices below production costs offers a unique entry point into a company with strong fundamentals. They note that coal futures suggest a price of $150 per tonne by 2021, indicating a positive industry outlook. With an 80% dividend payout ratio and solid capital management, they project that Coronado could be valued at $1.60 based on 2021 estimates. The fund managers conclude that increased global infrastructure spending will provide structural tailwinds for Coronado's long-life mining assets, creating potential for substantial shareholder returns.
Source: Trading View
Commentary From The Managers
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Glennon Small Companies
12 Sept 2025
$0.33
Summary
- Coronado Global Resources reported a net loss of approximately USD 172 million in its half-year results.
- The loss was attributed to weaker metallurgical coal prices, softer demand, and rising operating costs.
- In response to these challenges, the company has initiated cost-cutting measures, including idling higher-cost U.S. surface operations.
- Operational restructuring is underway to improve efficiency and reduce costs.
- Despite the current headwinds, progress has been made on strategic projects, including the Mammoth underground mine at Curragh and the Buchanan expansion.
- These projects are expected to deliver lower-cost production and incremental volumes over time.
- Glennon Small Companies continues to hold its position due to the potential recovery from these strategic initiatives.
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Please note: The completeness, accuracy or current status of the investments referenced are not guaranteed.
Commentary From The Managers
Glennon Small Companies
12 Sept 2025
$0.33
- Coronado Global Resources reported a net loss of approximately USD 172 million in its half-year results.
- The loss was attributed to weaker metallurgical coal prices, softer demand, and rising operating costs.
- In response to these challenges, the company has initiated cost-cutting measures, including idling higher-cost U.S. surface operations.
- Operational restructuring is underway to improve efficiency and reduce costs.
- Despite the current headwinds, progress has been made on strategic projects, including the Mammoth underground mine at Curragh and the Buchanan expansion.
- These projects are expected to deliver lower-cost production and incremental volumes over time.
- Glennon Small Companies continues to hold its position due to the potential recovery from these strategic initiatives.
Summary
PM Capital
30 June 2025
$0.14
- PM Capital exited their position in Coronado due to a misjudgment of the coal price cycle.
- Weak coal pricing may persist longer than anticipated, despite being unsustainable long-term.
- Coronado is experiencing liquidity challenges.
- The company entered an unfavorable funding and production agreement that could have negative long-term impacts.
- Without immediate market improvements, Coronado faces a challenging near-term environment.
- Current coal prices are below the company's sustaining breakeven production cost.
Summary
PM Capital
31 May 2025
$0.11
- Coronado Resources faced performance challenges due to a downturn in the metallurgical coal market.
- Despite this, PM Capital notes that the company successfully secured refinancing of its asset-backed debt facility.
- This refinancing provides an immediate cash injection and enhances liquidity.
- The move significantly improves financial stability for the company.
- PM Capital continues to hold its position in Coronado Resources based on these developments.
Summary
Maple-Brown Abbott
31 Mar 2025
$0.33
- Maple-Brown Abbott reports a 56% decline in their position in Coronado Global Resources Inc.
- Performance has been affected by a further decline in coking coal prices.
- A growing supply from Mongolia has significantly weighed on the market.
- No indications of curtailment from high-cost production have been observed.
- Current prices are trading deep into the cost curve.
- Producers in China and the United States are potentially operating at a cash loss.
- There is an expectation that loss-making producers may cease production and exit the market.
- However, ongoing uncertainty in the broader global markets is anticipated to continue impacting coal prices.
Summary
PM Capital
31 Dec 2024
$0.77
- PM Capital continues to hold its position in Coronado Global Resources Inc. despite a 36% decline in stock value due to subdued coal prices and operational issues at the Currah mine.
- The stock has been challenging for the fund, with disappointing performance and concerns over operational management.
- Last quarter, the Currah mine’s cash flow was below breakeven, influenced by depressed coal prices.
- Coronado possesses a significant productive capacity of over 17 million tonnes annually but has a small enterprise value of under US $1 billion.
- Selling Coronado’s US business at similar valuations to its US peers could imply that the Queensland mine is effectively free, indicating potential spare value.
- The current low valuation is attributed to a lack of confidence in Coronado’s operational management and high costs at the Queensland mine.
- In mid-December, Coronado announced that its Currah expansion project received all regulatory approvals, set to commence production.
- This expansion is viewed as a key catalyst for future stability, cost reduction, and highlighting the long-term value of the company.
Summary
Collins St Asset Management
30 Sept 2020
$0.91
- Collins St Asset Management updates their investment thesis on Coronado Global Resources Inc.
- Coronado is the largest producer of metallurgical coal in the Australian market.
- It operates sites in Australia and the USA, ranking among the lowest quartile cost producers globally.
- The company’s branding avoids directly mentioning coal due to misconceptions about coal types.
- Met-coal is distinct from thermal coal, used in steel production rather than energy generation.
- Despite concerns about owning shares in a coal company, Collins St Asset Management sees this as an investment opportunity.
- Recent price drops in met-coal presented a chance to invest in a top-tier producer.
- With coal futures projected at $150 per tonne by 2021, the industry's outlook appears promising.
- Solid capital management and an 80% dividend payout ratio support a valuation of up to $1.60 based on 2021 estimates.
- Increased global infrastructure spending offers long-term growth potential for Coronado's mining assets.
- This situation illustrates how unconventional thinking can uncover great investment opportunities.
Summary
Please note: The completeness, accuracy or current status of the investments referenced are not guaranteed.
ANALYST INSIGHT
Equity Research Analyst
"In a world quick to judge coal, it seems the real opportunity lies in the misunderstood met-coal sector. Coronado Global Resources appears poised to thrive as infrastructure spending surges, transforming stigma into substantial gains for those daring enough to invest."
Last Updated: 12 Sept 2025
Query The Data
Frequently Asked Questions
Who is investing in Coronado Global Resources Inc (ASX:CRN)?
Fund managers including Collins St Asset Management, Maple-Brown Abbott, PM Capital and Glennon Small Companies have invested in Coronado Global Resources Inc (ASX:CRN).
Why do fund managers invest in Coronado Global Resources Inc?
Fund managers are investing in Coronado Global Resources Inc. due to its status as the largest producer of metallurgical coal in Australia and its position among the lowest-cost producers globally. Despite the stigma associated with coal, metallurgical coal is essential for steel production and is not considered a pollutant. Recent price dips below production costs presented a unique investment opportunity, coinciding with a projected recovery in coal prices. Additionally, Coronado's strong capital management and high dividend payout ratio, coupled with favorable global infrastructure spending trends, suggest a promising outlook for long-term shareholder value.
What happened to Coronado Global Resources Inc (ASX:CRN)?
Fund managers are investing in Coronado Global Resources Inc. due to its strategic initiatives aimed at cost reduction and operational restructuring in response to recent financial challenges. Despite reporting a net loss of approximately USD 172 million due to lower metallurgical coal prices and rising costs, the company is focusing on enhancing efficiency by idling higher-cost operations and progressing on key projects like the Mammoth underground mine and Buchanan expansion, which are anticipated to drive lower-cost production and increased output in the future.