it’s a prepayment with interest because there’s an obligation. Technically speaking because the obligation is greater than 12 months you could also call it a short term loan. The fact of the matter is that it doesn’t matter. Coronado is selling coal to Stanwell in the future for payment now. It’s almost like a progress payment except that Coronado hasn’t started to supply the coal in exchange for the upfront cash. I’m the building and construction game, suppliers can ask for 50% of the contract upfront and not supply until a year later. The $75m in waiver/deferral ensures that Coronado will not chew into their liquidity. I would imagine that coal net proceeds of Mammoth and Buchanan should be able to pay back the waiver/deferral of $75m commencing 1st or 2nd quarter 2026 (guess) plus interest of 13%. About an extra $10m in interest. So hopefully the total of $85m deferral can be covered by Mammoth and Buchanans extra coal net income.
CRN Price at posting:
16.5¢ Sentiment: Hold Disclosure: Held
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