Coronado Global Resources Inc (ASX: CRN) shares fell 3.57% to close at 13.5 cents apiece on Friday.
Meanwhile, the S&P/ASX 200 Index (ASX: XJO) drifted 0.21% lower to close at 8,505.5 points.
Coronado Global Resources shares have fallen 82% in the year to date and 88% over the past 12 months.
The ASX coal share hit a record low of 10 cents per share on 2 June.
What's dragging Coronado Global Resources shares down?
The company has faced a myriad of problems, starting with a continually deteriorating coal price.
As the chart above shows, the Coronado Global Resources share price has been declining since October, in tandem with the coal price.
In the final quarter of 2024, metallurgical coal averaged US$203 per tonne, down from US$333 in the final quarter of 2023.
At the beginning of June, the met coal price was about US$195 per tonne. That's when Coronado shares hit their all-time low.
But it's not just the falling coal price that has weakened Coronado stock.
Last year was a tough year operationally for the coal miner.
Repairs to the overland conveyor and above-average rainfall at Curragh led to a production guidance downgrade and higher costs.
Over the first five months of 2025, Coronado spent about US$140 million on capital expenditure, leaving only US$80 million for the period from June to December.
This prompted Coronado to embark on a liquidity improvement plan to help it withstand lower coal prices while also allowing it to forge ahead with its expansion of the Mammoth project at Curragh and the Buchanan project in the US.
What's Coronado done to improve liquidity?
The liquidity improvement plan entailed securing extra sources of funding, along with cost reduction initiatives to improve near-term liquidity by approximately US$100 million throughout 2025.
Last week, Coronado Global Resources announced a $150 million funding deal with Stanwell Corporation in exchange for a thermal coal supply of up to 800,000tpa over five years from 2027.
On Wednesday, Coronado Global Resources announced it had completed documentation for a separate, renegotiated three-year $150 million lending facility.
However, these two initiatives may not be the end of funding activities.
Coronado Global Resources said:
Notwithstanding the completion of this financing, the Company continues proactively to monitor its balance sheet and liquidity position in light of the challenging market backdrop for pricing of coal to ensure its continued adequacy.
Our expansion projects at Mammoth and Buchanan that are ramping up in the second half of this year and US$100M in cost saving initiatives underway are expected to further materially improve the company's liquidity position.
Once complete, the expansion of Mammoth and Buchanan is expected to result in a significant contribution to saleable production and lower capital expenditure in the second half of 2025.
Mammoth is expected to end CY25 with ROM production of 1.5Mt to 2.0Mt and the Buchanan expansion with 1Mt.
Operational challenges have continued, including heavy rainfall and unplanned maintenance that will affect June quarter production.
