Fund Manager Summary on Coronado Global Resources Inc (ASX:CRN)
Coronado Global Resources Inc (ASX:CRN) faces significant challenges in a weakening metallurgical coal market, highlighted by a reported net loss of approximately USD 172 million due to declining coal prices, decreased demand, and increased operating costs. Fund managers emphasize the liquidity pressures following unfavorable funding agreements and ongoing operational restructuring. While recent refinancing efforts may temporarily enhance cash flow, the persistent low prices, particularly below the sustaining breakeven cost, raise concerns about the company's viability in the near term. However, there are strategic opportunities through cost-cutting measures, including the idling of higher-cost operations, and advancements in projects like the Mammoth underground mine and the Buchanan expansion, which could lead to lower-cost production in the future. Investors should weigh these operational adjustments against the backdrop of an uncertain market outlook.
Commentary From The Managers
There are 6 insights from 4 fund managers regarding their investment in Coronado Global Resources Inc (ASX:CRN) available on Thesis Tracker.
Unlock Updates With ThesisTracker Pro
Don’t let information asymmetry undermine your investment returns. Join other engaged investors on ThesisTracker Pro.
Updates are made available to members within 12 hours of being released. 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
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.
PM Capital
30 June 2025
$0.14
Summary
- 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.
PM Capital
31 May 2025
$0.11
Summary
- 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.
Maple-Brown Abbott
31 Mar 2025
$0.33
Summary
- 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.
PM Capital
31 Dec 2024
$0.77
Summary
- 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.
Collins St Asset Management
30 Sept 2020
$0.91
Summary
- 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.
The completeness, accuracy or current status of the investments referenced are not guaranteed.
Investment Ideas Scanner
Why fund managers back Ora Banda (ASX:OBM): $70m exploration to extend mine life
Why fund managers are buying Cogstate (ASX:CGS): pharma engagement & peer takeover signal
May 2024: Why fund managers back Adrad (ASX:AHL) — steady Distribution, HTS set to recover
April 2025: Fund managers see re-rating upside in Black Bear Minerals (ASX:BKB)
Why fund managers back Pioneer Credit (ASX:PNC): Big Four partner, FY26 >$18m
Why fund managers still back Regis Healthcare (ASX:REG)
Why fund managers back LGI (ASX:LGI)'s 80MW battery roll-out
Why fund managers back AML3D (ASX:AL3) after US Navy LOI for 1,600 parts
Managers Buy Hansen Technologies (ASX:HSN) After Dip — EBITDA Upgrade & M&A
Why fund managers back Macmahon (ASX:MAH): $5.4bn orderbook & $24.2bn pipeline
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 invest in Coronado Global Resources Inc primarily due to its assets and growth prospects, despite recent challenges. The company operates in the metallurgical coal sector, which has faced significant price fluctuations. Recent refinancing improved its liquidity, but ongoing weak coal prices raise concerns about profitability. Fund managers recognize the potential for future growth from strategic projects, despite the near-term risks of cash losses and operational challenges. Overall, Coronado represents a complex risk/reward profile, influenced by broader market conditions.
What happened to Coronado Global Resources Inc (ASX:CRN)?
Fund managers are investing in Coronado Global Resources Inc. due to its strategic restructuring efforts aimed at cost reduction and improved production efficiency. Despite facing significant challenges, including a net loss of approximately $172 million attributed to lower metallurgical coal prices and rising operating costs, the company is proactively idling higher-cost operations and focusing on key projects like the Mammoth underground mine and Buchanan expansion. These initiatives are anticipated to lead to lower-cost production and increased output in the future.
What is the short interest in Coronado Global Resources Inc (ASX:CRN)?
The short interest in Coronado Global Resources Inc (ASX:CRN) is 0.65% which makes it the 252nd most shorted stock on the ASX. Of the 1.7B shares that Coronado Global Resources Inc has on issue, 10.9M have been sold short.
What does Coronado Global Resources Inc (ASX:CRN) do?
Coronado Global Resources, Inc. engages in the exploration and production of metallurgical coals. The firm has development projects in Queensland, Australia, and in Virginia, and West Virginia, United States. It operates through the Australia and United States geographical segments. The company was founded by Garold R. Spindler and James Campbell in 2011 and is headquartered in Brisbane, Australia.