There will not be a debt to equity swap. They are looking for more flexible options with borrowing.
If they say the worst case is that they have a bucket of $100,000 and noteholders have no covenants on Coronado and they are looking to defer payments to Stanwell they are only looking for an amount that will no trigger an adverse position. They don't need to do an equity swap. They only need an extra $100m to ensure they get through to the end of this year (2026) when they start produce significant FCF from Mammoth and Buchanan expansion. The information above is from the Form 10Q as well as the first quarter webcast call.
So, what are a lot of you saying? The company is talking shit? They continue to spend on CAPEX because they are going to go broke? Oh pleaseeeeeeeeeeeeee!
The direction of the share price can make you feel fkd but the fundamentals are there for the company. I don't believe they will not be able to restructure their lending facilities to get through to end of the year.
Too many people here are looking at 2027 but that's not the case. At that point there will be extra tonne of met coal sold abroad and no more royalty payments to Stanwell.
1 million tonnes @U$150pt = U$150 million (March qtr realized pricing) 1 million tonnes take ot U$30mt = U$30 million (Stanwell sell price)
There's $120m uplift on 1mt extra met coal sold Then no more royalties circa $100m uplift (its more but conservative estimate)
There's $220 million in extra FCF just there.
CRN Price at posting:
13.5¢ Sentiment: Hold Disclosure: Held
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