Coronado Global Resources Inc. · ASX:CRN
Coronado Global Resources — FY2021 Earnings Presentation
38 slides from Coronado Global Resources's earnings presentation, Feb 23, 2022
Slide 1: ASX Announcement – Investor Presentation 2021 Full Year Results
ASX Announcement For personal use only 23 February 2022 Investor Presentation – 2021 Full Year Results Coronado Global Resources Inc. (ASX: CRN) releases the following Investor Presentation for 2021 Full Year Results. This announcement was authorised to be given to ASX by the Board of Coronado Globa
Slide 2: 2021 Full Year Results
For personal use only 2021 Full Year Results GERRY SPINDLER Managing Director and CEO GERHARD ZIEMS Group Chief Financial Officer 23 February 2022 (All units in USD and metric tonnes, unless otherwise stated)
Slide 3: Important Notices and Disclaimer
Important Notices and Disclaimer For personal use only The material contained in this presentation is intended to be general background information on Coronado Global Resources (Coronado) and its activities. The information is supplied in summary form and is therefore not necessarily complete. It is
Slide 4: FY 2021 Highlights
For personal use only FY 2021 Highlights GERRY SPINDLER MANAGING DIRECTOR AND CEO
Slide 5: FY 2021 Safety Performance
FY 2021 Safety Performance Coronado reportable safety rates below industry averages For personal use only Safety remains Coronado’s highest priority Australian Operations (TRIFR) 12 Australian Operations (TRIFR) Industry average (TRIFR) Australian TRIFR was 3.07 and the U.S. TRIR was 2.51 10 8
Slide 6: Managing Covid-19
Managing Covid-19 Coronado remains focused on the safety For personal use only and wellbeing of all employees and contracting parties Coronado Covid-19 Steering Committee, continues to execute action plans to manage the risks associated with Delta and Omicron variants Established vaccination c
Slide 7: FY 2021 in Review
FY 2021 in Review Coronado well positioned to generate strong margins and cash flows at current price levels in FY22 For personal use only Total Revenue of $2,148 million, up 47% Net Income of $189 million, up 184% Adjusted EBITDA of $486 million, up 804% Net Cash of $123 million, up 144%. A
Slide 8: FY 2021 Group Operational Performance
FY 2021 Group Operational Performance Higher production and greater percentage of Metallurgical revenue mix For personal use only ROM Production (Mt) Export Volume Mix (%) 30 FY21 FY20 FY21 FY20 26.4 25.2 25 20 25.0% 25.0% 13.6 14.7 15 Export 10 7.2 5.8 5.6 Domestic 4.5 5 0.0 0.3 75.0% 0 75.0% Curra
Slide 9: Reserves & Resources (Mt)
Reserves & Resources (Mt) Coronado maintains long-life operating assets ~20 years For personal use only Reserves (Mt) Resources (Mt) 1,000 2,500 822 2,119 800 2,000 600 1,500 937 400 1,000 266 197 514 200 160 137 500 264 190 159 50 55 12 0 0 Notes: Charts reflect reserves and resources as at 31 Dece
Slide 10: Market Comparison
Market Comparison Coronado’s valuation has lagged ‘pure-play’ sector peers despite strong earnings outlook, lower gearing and the greatest leverage to Met coal prices Coronado is the leading Met coal producer For personal use only among pure-play coal enterprises and at 31 December 2021 was the on
Slide 11: Financial Performance & FY 2022 Guidance
For personal use only Financial Performance & FY 2022 Guidance GERHARD ZIEMS GROUP CHIEF FINANCIAL OFFICER
Slide 12: FY 2021 Financial Results
FY 2021 Financial Results Coronado returns to a Net Cash position; Improved second half conditions drive strong result For personal use only All FY21 revised guidance metrics have Group Dashboard been achieved or exceeded FY 2021 Actual FY 2020 Actual Variance Record December quarterly Group rev
Slide 13: FY 2021 Cash Flows and Liquidity
FY 2021 Cash Flows and Liquidity ($M) Record closing cash balance; Available liquidity of $538 million For personal use only Coronado generated $442 million in Free Cash Flow Available Liquidity Operating cash flows and $299 million in 486 Free cash flow after capital expenditure, 442 538 debt red
Slide 14: Returns and Distributions
Returns and Distributions Strong Balance Sheet and Net Cash position underpin Coronado’s distributions For personal use only Coronado plans to distribute a dividend Key Dates of $150 million, or 9.0 cents per CDI FY21 (USD) in Q1 2022 Free Cash Flow 23rd February 2022 $299M Announcement of $150
Slide 15: Capital Management
Capital Management Coronado’s capital management strategy focuses on maintaining a strong balance sheet, sustainable profits and investment flexibility through volatile price cycles, underpinned by operating safe and reliable operations that For personal use only produce high-quality Met coal for ou
Slide 16: FY 2022 Production, Cost & Capex Guidance
FY 2022 Production, Cost & Capex Guidance For personal use only Saleable production levels are expected Metric Actual Guidance to be higher in FY22 with higher labour FY21 FY22 availability rates at Logan and normalised production rates at Curragh Saleable Production (Mt) 17.4 18.0 – 19.0 Mining
Slide 17: Metallurgical Coal Markets
For personal use only Metallurgical Coal Markets HY21 Results Presentation 16
Slide 18: Coronado has a Unique Diversification Advantage
Coronado has a Unique Diversification Advantage Coronado supports customers on five continents For personal use only Coronado is diversified across: Met coal product offering Seaborne Met coal markets ▪ Geography Australia(1),(2) US(3) Key Met coal export destinations ▪ Met Coal Product Offering 1
Slide 19: Substantial Improvement in Met Coal Prices
Substantial Improvement in Met Coal Prices Coronado is well positioned to generate strong cashflows into 2022 at current prices For personal use only Historical Metallurgical Coal Benchmark Prices Since the beginning of 2021 the Platts PLV FOB AUS HCC price has recovered from Platts Aus Premium LV
Slide 20: Markets and Metallurgical Coal Pricing
Markets and Metallurgical Coal Pricing A US$10/t change in benchmark Met coal pricing equates to ~US$65 - $70 million change in EBITDA, assuming FY22 guidance levels and stable FX For personal use only 2022 Metallurgical Coal Pricing Breakdown (1) Average Metallurgical Coal Realised Price (US$/t) (2
Slide 21: Strong Metallurgical Coal Demand Through 2050
Strong Metallurgical Coal Demand Through 2050 Growth for seaborne Met coal is underpinned by Indian demand and blast furnace production For personal use only Seaborne Met Coal Supply (Mt) Seaborne Met Coal Demand (Mt) Global seaborne Met coal demand is forecast to grow 34% to 403 million 403 403 t
Slide 22: Strong Steel Demand Outlook; India Steel Production Growing
Strong Steel Demand Outlook; India Steel Production Growing year on year For personal use only Annual Forecast GDP Growth Percentage (1) India Total Crude Steel Production (Mt) (2) 2021 2022 2023 379.6 9.3 6.8 7.1 6.4 +229% 5.8 5.8 5.2 176.7 4.4 4.1 143.6 3.7 123.3 130.1 134.4 3.2 3.1 115.3 2.9 2.8
Slide 23: Strategy / Growth Plans
For personal use only Strategy / Growth Plans GERRY SPINDLER MANAGING DIRECTOR AND CEO
Slide 24: Key focus areas for 2022
Key focus areas for 2022 As one of the largest independent producer of Met coal globally, Coronado is inherently focused on capitalising on the current high price environment and growth plans For personal use only Safety Production Financial/Corporate Coronado will drive a strong safety Coronado is
Slide 25: Growth - Australian Operations
Growth - Australian Operations ‘One Curragh Plan’ will target 13.5 Mt of production by 2025 For personal use only Curragh expects to increase production Estimated Production Profile (Mt) rates year-on-year, reaching 13.5Mt by 2025 +22% CHPP capacity to produce 13.5Mt is 13.5 already in place I
Slide 26: Growth - U.S. Operations
Growth - U.S. Operations Stable production volumes from Buchanan and Logan For personal use only Estimated Production Profile (Mt) Buchanan: Initiating construction of new raw coal +10% storage area Installation of additional skips 6.9 Construction of the refuse belt extension 6.3 Enhanced v
Slide 27: Mon Valley Development Project
Mon Valley Development Project Strategic greenfield development opportunity in Southwest Pennsylvania For personal use only Located 22.5km southeast of Pittsburgh ▪ Reserves: 197 Mt of Reserves ▪ Production Capacity: >2 Mt per year ▪ Coal Quality: High-Vol HCC ▪ Transportation: Barge with alternat
Slide 28: Coronado – Steel Starts Here
® Coronado STEEL STARTS HERE Aiuo Sk ones oS FS /
Slide 29: Safe, Sustainable & Ethical Operator
Coronado is committed to being a Safe, Sustainable & Ethical Operator Coronado takes its ESG responsibilities For personal use only seriously Safety and Health remain our #1 priority Strong traditional owner relationships and actively supporting local business and school programs Coronado pr
Slide 30: Metallurgical Coal is an essential part of decarbonising the economy
Metallurgical Coal is an essential part of decarbonising the economy Met Coal is a key ingredient in making steel which enables renewable technologies that help to reduce global emissions and enrich lives For personal use only Average Wind Turbine (1) Average Electric Vehicle (2) Sydney Harbour Brid
Slide 31: Steel is a critical component for transition to a low-carbon economy
Steel is a critical component for transition to a low-carbon economy Blast Furnace steel production is essential in all low-carbon technologies and underpins renewable energy infrastructure future For personal use only Total Global Crude Steel Production (Bt) (2) (1) 2.2 1.9 +14% 2021 2050 Total Glo
Slide 32: Questions
For personal use only Questions
Slide 33: Supplementary Information
For personal use only Supplementary Information
Slide 34: Reconciliation of Non-GAAP measures
Reconciliation of Non-GAAP measures For personal use only This report includes a discussion of results of operations and references to and analysis of certain non-GAAP measures (as described below) which are financial measures not recognised in accordance with U.S. GAAP. Non-GAAP financial measures
Slide 35: Reconciliation of Non-GAAP measures (continued)
Reconciliation of Non-GAAP measures (continued) Realised Met Pricing reconciliation 31 December 2021 Australian Operations U.S. Operations Consolidated For personal use only (US$ Thousands, except for volume data) Total Revenues 1,315,851 832,620 2,148,471 Less: Other revenues (36,115) (4,025) (40,1
Slide 36: Reconciliation of Non-GAAP measures (continued)
Reconciliation of Non-GAAP measures (continued) Year ended Year ended Year ended Year ended Operating Costs per tonne reconciliation For personal use only Adjusted EBITDA reconciliation 31 December 2021 31 December 2020 31 December 2021 31 December 2020 (US$ Thousands) (US$ Thousands, except for vol
Slide 37: Reconciliation of Non-GAAP measures (continued)
Reconciliation of Non-GAAP measures (continued) Mining Costs per tonne reconciliation 31 December 2021 Australia United States Other/Corporate Total (US$ Thousands, except for volume data) Total costs and expenses 1,202,807 611,611 31,689 1,846,107 For personal use only Less: Selling, general and ad
Slide 38: Contacts
CONTACTS For personal use only Investors: Registered Office: Andrew Mooney Coronado Global Resources Inc. P: +61 458 666 639 Level 33, Central Plaza One, 345 Queen Street E: amooney@coronadoglobal.com Brisbane, QLD, Australia, 4000 E: investors@coronadoglobal.com (GPO Box 51, Brisbane, QLD, Australi
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