Coronado Global Resources Inc. has secured a binding commitment for a new $150 million asset-based lending facility through its subsidiary, Coronado Finance Pty Ltd. The financing arrangement is designed to refinance the Company’s existing asset-based lending facility with an affiliate of Oaktree Capital Management, L.P. The facility is a critical component of a broader liquidity management plan aimed at bolstering the Company’s financial stability amid the current period of sustained low met coal pricing. The three-year facility is secured against specific receivables and inventory assets, with an immediate drawdown of $75 million available at financial close. An additional $75 million can be accessed in minimum increments of $25 million over the subsequent 12 months. Each drawn portion will remain committed for the full three-year term, providing immediate cash support and future funding flexibility for working capital needs. The facility features a fixed interest rate in the mid-teens, which is notably lower than the current 18% yield on the Company’s high yield notes. There is also flexibility embedded in the financing, with no prepayment penalty after 18 months and eased covenant thresholds designed to accommodate the challenges posed by a low price environment. This financing move is part of a comprehensive liquidity and balance sheet management program. It comes alongside the Mammoth and Buchanan expansion projects, which are on track and budget. These projects are expected to drive increased sales volumes, reduce capital expenditure in the second half of the year, and yield significant sustainable reductions in operating costs. Meanwhile, the Company is executing active cost reduction initiatives that are projected to improve near-term liquidity by approximately US$100 million throughout 2025. The current cash balance stands at roughly $160 million, providing further strength to the Company’s liquidity position. Bullish sentiment is supported by the new facility’s potential to lower financing costs, immediate liquidity benefits, and enhanced operational flexibility in navigating a challenging commodity price landscape. The refinancing not only reduces interest expenses compared to the existing high-yield notes but also instills confidence from a credible lender, validating the underlying asset value and business fundamentals. Conversely, bearish sentiment may be attributed to the ongoing risks associated with low met coal prices, the conditional nature of the additional draws, and the need to meet periodic covenant testing requirements based on the borrowing base. The facility’s effectiveness ultimately depends on the successful execution of the pending long-form documentation, board approval, and the Company’s ability to manage market uncertainties while continuing capital expenditure controls and operational cost reductions. Overall, Coronado Global Resources Inc.’s strategic financing initiative is poised to provide both immediate liquidity and long-term operational flexibility, positioning the Company to better manage current market challenges and capitalize on future growth opportunities.