Coronado Global Resources (ASX:CRN) faced significant second-quarter cash pressures, including about AU$97 million of fixed cash obligations and an additional AU$25 million to AU$60 million required for inventory rebuilding, according to a Wednesday note by Jefferies.

The investment firm noted that cash balances have fallen to about AU$86.5 million, partly offset by a AU$95 million working capital package and about AU$26 million per quarter of Stanwell prepayment support, while total liabilities increased to about AU$563 million and are compounding at about AU$18 million per quarter.

Pricing lag effects are estimated to provide a benefit of about AU$54 million to AU$61 million, while fourth quarter pricing recovery could add a further AU$23 million, Jefferies said.

Improved production and cost absorption at the Curragh operation are expected to reduce unit costs, excluding foreign exchange impacts, to about $92 per tonne at production of 2.5 million tonnes, the note added.

Jefferies kept a hold rating on Coronado Global Resources with a price target of AU$0.29.

The company's shares fell 7% in recent Thursday trade.