Hello, and welcome to the annual general meeting of stockholders of Coronado Global Resources Incorporated. Please note that today's meeting is being recorded. It is now my pleasure to turn today's meeting over to Gerry Spindler, Executive Chair and Chair of the Meeting. Mr. Spindler, the floor is yours.
Good morning and good evening, ladies and gentlemen, depending upon your location. Welcome to the 2025 Annual General Meeting of stockholders of Coronado Global Resources Incorporated, our seventh AGM as a listed company. Today's meeting is being held in a virtual meeting platform via webcast using Computershare's online platform. We have decided to run a virtual meeting again this year as it enables increased stockholder participation and access across the countries in which our stockholders reside. In addition, proxy holders and guests may also attend. Security holders and proxies have had the ability to submit votes and ask questions ahead of today's meeting. Every effort has been made to ensure the meeting runs smoothly, but if you do experience technical difficulties, please contact Computershare on the number provided on the platform's landing page.
In addition, this meeting is being recorded, and the recording will be available on our website within 24 hours after the meeting. While our annual general meeting of stockholders is being held virtually today, I would like to begin with a customary acknowledgment of the Turrbal traditional owners of the land on which offices in Brisbane are located. I would like to pay my respects to elders past, present, and emerging. I have been informed by Ashley Schultz from Computershare, the inspector of elections for this meeting, that there are represented, in person or by proxy, a majority of all the common shares and the holder of the preferred stock Series A share entitled to vote at this meeting. In accordance with the company's certificate of incorporation and bylaws, I am advised that the necessary quorum is present here today. I declare this meeting open at 10:00 A.M.
Australian Eastern Standard Time. I would like to begin by introducing my fellow directors, some of whom are attending virtually today. Firstly, our independent non-executive directors, Aimee Allen, Greg Pritchard, Jan Wilson, and Philip Christensen. Our non-executive director, Laura Tyson, also joins us virtually, and our Managing Director and CEO, Douglas Thompson, is joining from the company's Brisbane offices. Members of our executive team, Barrie van der Merwe, Chief Financial Officer, Craig Manz, Chief Operating Officer, and Chris Meyering, Chief Legal Officer, are also in attendance. In addition, Susan Casey, our Group Company Secretary, is in attendance and will be acting as secretary for this meeting. Also joining us today is Andrew Kerrick from Ernst & Young, the company's auditors. This meeting is convened to consider matters specified in the Notice of Annual General Meeting of Stockholders dated April 22, 2025.
I will be conducting this meeting in accordance with the order of business contained in that notice. Coronado is incorporated in Delaware in the United States, and today's agenda reflects these requirements of Delaware and U.S. law. Procedures will be followed in accordance with the company's certificate of incorporation and bylaws. The proxy statement and the notice of meeting provide explanatory notes on the proposals to be put for resolution to the meeting today. The notice of meeting included instructions as to how stockholders could vote and submit questions in advance of this meeting. We have not received any questions from stockholders relevant to the proceedings of the meeting in advance of the meeting, and no stockholder has elected to appoint themselves or another person as a proxy to vote and ask questions during the meeting.
Registered guests will be able to listen to this webcast meeting but are not able to vote. While we have not received any relevant questions for today's meeting, if any security holder or guest wishes to submit questions after the meeting, these can be submitted to Chantelle Essa, our Vice President, Investor Relations, whose details are included in the presentation pack. Ladies and gentlemen, thank you for joining us today and for your continued support of Coronado Global Resources. It is sobering that this Chairman's address comes at a time when the conditions facing our industry and our company are among the most challenging we have seen in many years. Metallurgical coal remains a critical input for global steel production, but in the second half of 2024 and moving into 2025, prices have trended substantially lower. Demand has become more unpredictable, and market sentiment more risk-averse.
At the same time, inflation, increased taxes, and royalties, and numerous geopolitical events have together driven costs higher. While long-term fundamentals for steelmaking coal are intact, the metallurgical coal sector is experiencing a complex cycle, and we cannot ignore the current state of global met coal production. Sustained low pricing, rising operational costs, and constrained access to capital are testing the resilience of all participants. Liquidity remains stretched. Like many peers, we've experienced unrelenting pressure on working capital and have had to make tough but necessary decisions to preserve the core value of our business. Our focus has been on safeguarding the future of the company, not just surviving today's headwinds. We acknowledge that our share price has declined significantly over the past year. In our view, this movement reflects not just company-specific pressures but broader sentiment in the sector, including commodity cycles, funding constraints, and the macroeconomic uncertainty.
While disappointing, it does not, in our view, reflect the full value or potential of our assets, our team, or the strategic work underway. We are focused on strengthening our fundamentals because we know that market value will follow business performance over time. We have high-quality assets, long-term demand, a deeply experienced team, and a board that is fully engaged in driving performance and unlocking value. These are the fundamentals that will carry us forward. In light of these challenges, the board has taken a hands-on approach, working closely with management to review all aspects of the business, from operational efficiency and capital expenditure to funding strategies and asset optimization. We are actively exploring all viable options to improve liquidity, restructure obligations where appropriate, and where possible, unlock value from underutilized assets. That said, there are no quick fixes.
We are not in a position to offer definitive answers or timelines. What we can confirm is that we are acting with discipline and commitment to steer the company through this phase. While we acknowledge that no single solution or timeline can be guaranteed, we have full confidence in our ability to adapt, make informed decisions, and deliver the best possible outcomes. Our strategy remains clear. We are committed to being a pure-play met coal producer with high-quality, long-term assets. We are committed to maintaining a lean, efficient operation focused on safe, responsible production. We are committed to enhancing shareholder returns. While we may need to recalibrate aspects of our growth plans, we will not lose sight of opportunities that can position us for a more robust future, whether through partnerships, transactions, or selective investment when conditions permit. We are cautiously optimistic market cycles do turn.
We do believe our assets, our people, and our approach will allow us to emerge stronger when conditions improve. As we focus on operational and financial resilience at this time, we have not lost sight of our broader responsibilities. Sustainability continues to be central to how we operate. Our performance in this area has remained strong. We have maintained a robust safety record, invested in environmental efficiency, and advanced progressive land rehabilitation. We continue to work closely with our local communities and traditional owners to ensure our operations generate shared long-term value. I would also like to take a moment to acknowledge changes to our board. We bid farewell to Bill Koch, who notified the board earlier this year that he would not stand for reelection as a director upon expiration of his current term, which will expire at the end of this meeting.
As our Deputy Chair and lead independent non-executive director and previous Chairman, Bill has brought deep insight and unwavering commitment during his tenure, and we thank him sincerely for his service. At the management level, we are pleased to welcome Craig Manz and Barrie van der Merwe, whose experience collectively in mining operations, finance, and restructuring will bring fresh perspective at a pivotal time for the company. Our strategy remains steady: operate efficiently and safely, protect cash, secure liquidity, and preserve optionality, stay opportunistic, and maintain readiness for growth when the cycle turns. Coronado is a business with strong fundamentals, a clear direction, and a leadership team that understands how to navigate complexity. We are confident in our strategy and our approach. We thank you, our shareholders, partners, employees, and communities, for your continued trust. Thank you.
I now hand over to our Managing Director and Chief Executive Officer, Douglas Thompson.
Thank you, Gerry. I'd also like to add my voice of appreciation to Coronado shareholders for their investment and continued support. Let me begin by addressing our scene of 2024.
Ladies and gentlemen, we apologize for the delay. Your call will continue momentarily. Please remain on the line, and we thank you for your patience. Ladies and gentlemen, we thank you for your patience. Your call will now resume.
Thank you very much. Never a dull moment with technology. How we rely upon it, and sometimes it lets us down. Let me start again by saying thank you, Gerry, and I'd also like to express my appreciation to all the Coronado shareholders for their investment and continued support in the business. I'll begin by addressing our financial performance.
As you've already seen, 2024 results and 2025 year-to-date performance have been challenged. There has been a sustained market-led downturn, which has had a direct impact on the execution of our strategy. As Gerry has touched upon, metallurgical coal pricing has been substantially softer than forecast, impacted by weaker-than-expected steel production in key markets for a myriad of reasons. These external factors have placed pressure on the revenues and margins across the industry, and we are not immune to this, but we are responding in a concerted way. Our immediate cost-out program has already yielded results. It's the most direct lever within our control, and it's been executed rigorously across our business. Beyond that, we are actively pursuing broader structural initiatives. These include operational simplification, contract renegotiations, and, importantly, capital structure flexibility, including refinancing options and debt restructuring.
These strategies remain under evaluation, and we are engaging external advisors to support us in identifying the right path forward to strengthen our balance sheet and preserve long-term optionality. Having said this, you may have already seen that we are pleased to announce that a binding ABL term sheet commitment has been reached. This is a positive step forward, and we will work quickly to ensure that this is a priority in close. Safety remains a constant focus and is in contrast to market volatility. It's an area where we continue to deliver. Our safety performance is stronger than industry average, and we continue to improve. That reflects the efforts of our people on the ground, and I'd like to pause and express my personal thanks to all of our people for their dedication. On the growth front, our key development projects are progressing on schedule.
These are critical to our long-term competitiveness. The Mammoth Underground Mine has two of three continuous miners now in operation, and the incremental run rate will be approximately 2 million tons by the end of the year. The Buchanan Expansion Project will be running test skips with coal through the shaft in June and, as planned, be fully operational in July. The incremental tonnage run rate will be approximately 1 million tons in the second half of this year. We expect these projects to materially enhance our production volumes and reduce our unit cost for the second half of this year. While execution discipline remains essential, these projects are now well past their early risk phase, and we're confident in their delivery.
Turning to the markets, met coal pricing has been volatile and below historic averages, driven by macro softening in the global steel production, particularly in China and Europe. However, we are starting to see positive indicators. India's growth remains strong, and infrastructure-led recovery is emerging in Southeast Asia. We believe pricing will continue to recover, albeit modestly, through 2025, particularly for the high-quality products that we produce. On the supply and demand side, rebound over the course of April-May, rising from a low point of mid-$160 a ton to just over $190 a ton. The primary driver for this rise was several unexpected supply disruptions at Australian Mines, coupled with rain that caused low production from the mines in the first half of the year. We expect Australian free on board pricing to stabilize just under $200 a ton through May and June.
The risk factors to this forecast continue to be tariffs, a slow monsoon season response like we saw in 2024, and China growth rates. In the medium to longer term, demand for higher-grade metallurgical coal remains intact, particularly as emerging markets expand steel-intensive development. Increasingly embedded in the way that we operate. This year, we've improved our ESG reporting and introduced new oversight into climate risk governance. We know that this is central to our license to operate and long-term capital access. We've advanced across all areas, from rehabilitation to emissions reductions and to diversity and inclusion across our business. We are progressing the capture of ventilation methane from our operations. This has been a high-impact initiative, both environmentally and economically, and we're exploring partnerships and funding models to accelerate this. In parallel, our broader emissions roadmap is taking shape.
Lastly, despite the financial headwinds, our economic contribution has remained substantial. In 2024, we delivered $2.6 billion in direct economic value through wages, local procurement, taxes, and royalties. These contributions have supported jobs, families, and infrastructure in our host regions. To conclude, this has been a challenging period, but not an uncommon one to a cyclical industry like ours. We've taken action steps to execute our plan, protect our balance sheet flexibility, and ensure that the short-term requirement for liquidity and the decisions made to support this do not create long-term undue burden on the business. We're advancing our growth projects, and we're maintaining safety and sustainability performance as we execute. There is more work to be done, but I believe that we are positioned to emerge from the cycle and become even more competitive.
I'd like to thank you for your continued support, and now I'll hand back to Gerry to take us through the formal part of the meeting.
Thank you, Douglas, for your commentary. This brings us to the formal business of today's virtual meeting. I would now like to explain the order of and processes for this part of the formal proceedings. First, I will explain the voting and how to cast your votes. There will be two forms of resolutions today. One, a resolution of the holder of the preferred stock Series A in relation to the reelection of Laura Tyson as non-executive director. And two, three resolutions of common stockholders of our CHESS Depository Interests, or CDIs. As set out in the notice of meeting, only stockholders may vote during this Annual General Meeting through the virtual meeting platform.
Valid proxies appointed by stockholders must have been provided to CHESS Depositary Nominees no later than 10:00 A.M. Australian Eastern Standard Time on Monday, the 2nd of June 2025, or 8:00 P.M. U.S. Eastern Time on Sunday, the 1st of June 2025, in order for your vote to count. As set out in the notice of meeting, CDI holders may not vote online at the Annual General Meeting, but in order to vote on the proposals at today's meeting, CDI holders must have instructed CHESS Depositary Nominees Pty Limited, as the shareholder of record, to vote the common shares underlying their CDIs, pursuant to instructions in the CDI voting instruction form. As required by the company's bylaws, a list of stockholders entitled to vote at today's meeting is available for inspection on the company's website.
Voting on all resolutions at today's meeting will be conducted by way of electronic transmission via the Computershare virtual platform as authorized by the board of directors by the notice of meeting in accordance with the company's bylaws. In order to provide stockholders with enough time to vote, I will shortly open voting for all resolutions. At that time, if you are eligible to vote at this meeting, a polling will appear in the vote icon. Selecting this icon will bring up the resolutions and present you with voting options. To cast your vote, simply select one of the options. There is no need to hit a submit or enter button as the vote is automatically recorded. You do, however, have the ability to change your vote up until the time I declare voting closed. I now declare voting open on all items of business.
If you are voting, the polling will appear in the vote icon. Please submit your votes at any time. I will provide a warning before I move to close voting. No ballot, proxy, or vote, nor any revocation or change thereto will be accepted by Computershare after the closing of these polls as announced by me during the course of the meeting. As the Chair of the Meeting, any undirected proxies given to me in relation to any items of business will be voted in accordance with the unanimous recommendation by the Board of Directors in favor of all resolutions as set out in the notice of meeting. The proxy vote tally made available to me by Computershare indicates that the polling on all items will be passed.
The proxy votes cast for each resolution will be displayed on the screen when each resolution is formally put to the meeting. Computershare will tally the results of the ballot, and details of the voting results will be provided to the Securities and Exchange Commission and the Australian Stock Exchange after the meeting. In respect of any open votes, a proxy holder may be entitled to cast. Please cast your vote using the Computershare online platform in accordance with the instructions provided. That covers the procedure for voting on each resolution, so I will now move on to the formal business of today's meeting. I will take the proxy statement and notice of meeting as read. Copies are also available on our website and were disclosed to the SEC and the ASX. The items of business to be considered today are now displayed on the screen.
Laura is nominated by the Energy & Minerals Group, being the Series A preferred stockholder of record for an Autogroup LLC, which we refer to as the EMG Group, or Series A holder for election to the board. The full background and details of Ms. Tyson are outlined in the proxy statement. The Series A holder has been asked to vote on the proposal shown on the screen. That Ms. Laura Tyson, the director nominee of the company designated by the Energy & Minerals Group and named in the proxy statement, be elected to serve as a non-executive director of the company and to hold office until the 2026 annual general meeting of stockholders or until her successor has been duly elected and qualified, or until her earlier death, resignation, or removal.
The board of directors unanimously recommended that the Series A holder vote in favor of the resolution in item one. The proxy vote of the Series A holder was received before the meeting, and the Series A holder has voted for the resolution in item one as is now displayed on the screen. The next item is the election of directors of the company by holders of common stock, including CDI holders. Coronado is incorporated in the state of Delaware in the U.S. and is bound by the requirements of the company's certificate of incorporation and bylaws, which require that all directors seek election at each annual general meeting. The specific experience, qualifications, and skills considered by the compensation and nominating committee and the board of directors in assessing the appropriateness of each of the directors to be elected today are outlined in the proxy statement.
Further, in assessing the independence of each of Ms. Allen, Mr. Christensen, Mr. Pritchard, and Ms. Wilson, the board specifically considered the independent standards of the ASX and the New York Stock Exchange, and the board considers that each of these nominee directors continue to be independent. The ordinary resolution for stockholders to consider is now shown on the screen. That is, that each of the six director nominees of the company named in the proxy statement and listed be elected to serve until the 2026 annual general meeting of stockholders of the company, or until their successors have been duly elected and qualified, or until his or her earlier death, resignation, or removal. The directors are listed according to their position on the proxy card issued to shareholders. I will ask that those eligible to vote on this resolution, please do so now.
The proxy votes received before the meeting on this resolution should now be displayed on your screen, setting out the summary of proxies received for the resolution and any proxy votes withheld. On the basis of proxies received, the results of the poll indicate the resolution will be approved, and I look forward to working with all directors in the coming 12 months. As outlined in the proxy statement pursuant to the Dodd-Frank Wall Street Reform and Consumer Protection Act and the 14(a)(1) of the Securities and Exchange Act of 1934, we are providing stockholders with the opportunity to cast a non-binding advisory vote on the compensation of the company's named executive officers as disclosed in the proxy statement.
The company seeks to provide compensation to each named executive officer that is designed to attract and retain suitably qualified executive officers to incentivize them to create sustainable performance aligned with the interests of stockholders. The vote on this proposal is not intended to address any specific element of compensation but relates to overall compensation of named executive officers as described in the proxy statement. Stockholders are being asked to consider the ordinary resolution shown on the screen. Resolve that the compensation of the company's named executive officers as disclosed pursuant to the compensation disclosure rules of the Securities and Exchange Commission, including compensation discussion and analysis, compensation tables, and narrative discussion, is hereby approved. The directors unanimously recommend that the stockholders eligible to vote on this item vote for. In favor of this item, I will ask that those eligible to vote on this resolution, please do so now.
The proxy votes received before the meeting on this resolution should now be displayed on your screen. As outlined in the proxy statement, the Audit Governance and Risk Committee has appointed Ernst & Young to serve as the independent registered public accounting firm to audit our financial statements for the fiscal year ending December 31, 2025. Although we are not required to seek stockholder approval of this appointment, we intend to seek stockholder approval of our registered public accounting firm annually. Representatives of Ernst & Young are present virtually at the meeting today. Stockholders are being asked to ratify the appointment of Ernst & Young as the company's independent registered public accounting firm for the fiscal year ending December 31, 2025. I ask those eligible to vote to please do so now. The proxy votes received before the meeting on this resolution are now displayed on your screen.
That concludes the items of business for this Annual General Meeting. Thank you. We have now come to the end of our formal order of business, and in a couple of minutes, I will close the poll and voting system. Please ensure, as eligible, you have cast your votes on all resolutions. I have confirmed with the secretary for this meeting and Computershare that there has not been any notice of revocation of any proxy submitted by our shareholders. I will now pause to allow you time to finalize your votes. I confirm that the polls are now closed and voting has closed. As a reminder, Computershare will tally the results of the poll, and details of the voting results will be provided to the SEC and ASX after the meeting closes. Ladies and gentlemen, that concludes the formalities of today's meeting.
On behalf of the board and management of Coronado, I would like to thank you for your attendance and participation in our virtual annual general meeting today. I again thank you for your continuing support of Coronado and reinforce our commitment to delivering long-term value for our stockholders. I now declare the annual general meeting of stockholders of Coronado Global Resources Incorporated closed.
This concludes the meeting. You may now disconnect.