Update shared on30 Jul 2025
Fair value Increased 49%A dramatic improvement in net profit margin and a steep decline in the future P/E ratio suggest meaningfully enhanced profitability and valuation, supporting the increase in Coronado Global Resources’ consensus analyst price target from A$0.151 to A$0.161.
What's in the News
- Coronado is in advanced talks with JSW Steel for a potential minority stake sale in its Curragh mine, amidst ongoing asset sale discussions with multiple parties including BUMA, Sinar Mas, Golden Energy Resources, and New Hope Coal.
- The company has breached debt covenants and is seeking lender approval to retain some asset sale proceeds to sustain operations, after refinancing a $150M loan with Oaktree Capital.
- Coronado has secured up to $150M in near-term liquidity from Stanwell in exchange for thermal coal supply starting in 2027, which, combined with its ABL refinancing, provides up to $300M in additional liquidity and is expected to improve margins and cash flow from 2027.
- Czech group Sev.en remains interested in Coronado after a previously failed deal, and is seen as a potential refinancing partner or acquirer, with other private equity and credit funds reportedly circling.
- Coronado's future remains highly uncertain due to sustained coal price weakness and high royalty charges in Queensland, with the company only able to profitably mine at Curragh if coal prices are above $200/tonne and material cost savings and expansions underway.
Valuation Changes
Summary of Valuation Changes for Coronado Global Resources
- The Consensus Analyst Price Target has risen from A$0.151 to A$0.161.
- The Net Profit Margin for Coronado Global Resources has significantly risen from 1.46% to 16.21%.
- The Future P/E for Coronado Global Resources has significantly fallen from 5.81x to 0.85x.
Disclaimer
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