Coronado Global Resources raised US$180m in new equity, thereby reducing gearing to around 23% from 41%. Additionally, banks have extended the debt covenant waivers to September 2021 from February 2021.
Credit Suisse assesses the March quarter update highlights weak demand amid capacity closures and depressed pricing. The pain for Coronado Global is reflected in the elevated net debt as working capital movements go against the company.
The company has indicated 2019 operating earnings (EBITDA) will now be below the guidance range of US$687-737m. Softer metallurgical coal prices in the fourth quarter are being blamed along with a -3% reduction in saleable production.