Coronado Global Resources Inc. · ASX:CRN
Coronado Global Resources — H1 2021 Earnings Presentation
40 slides from Coronado Global Resources's earnings presentation, Aug 10, 2021
Slide 1: Half Year Results and Investor Presentation
ASX Announcement For personal use only 10 August 2021 Half Year Results and Investor Presentation Coronado Global Resources Inc. (ASX: CRN) releases the attached: • 2021 Half Year Results Announcement; and • 2021 Half Year Results Presentation – Ends – This announcement was authorised to be given to
Slide 2: ASX Announcement - 2021 Half Year Results
ASX ANNOUNCEMENT - 2021 HALF YEAR RESULTS 10 August 2021 Higher production and sales in H1 2021 offset by lower prices and higher FX; Coronado’s U.S. and Australian operations set to benefit For personal use only from current higher Metallurgical coal prices; poised to deliver strong cash generation
Slide 3: Liquidity, capex and CEO comments
• Available liquidity of $213.4 million at 30 June 2021, comprising $113.4 million of cash and $100.0 million of undrawn funds under the Asset Based Loan (ABL) facility. • Capital expenditure of $52.3 million, down 15.5%. Full year run-rate below market guidance. Savings year to date from prudent ca
Slide 4: Mining costs, EBITDA and net loss
Mining costs of $64.2 per tonne increased due to the U.S. operations returning to pre-COVID production levels in HY21, whereas the operations were idled for two months during HY20. At the Australian operations costs were higher primarily due to the impacts of seasonal wet weather, an equipment break
Slide 5: Refinancing and capital structure
comprised an ABL facility of $100 million, a Notes Offering of $350 million, and an Equity Entitlement offer of $101.4 million. The proceeds from these transactions were used to repay and terminate all the outstanding obligations under the legacy SFA, cash collateralise and replace bank guarantees u
Slide 6: Management changes
MANAGEMENT CHANGES Subsequent to the resignation of Mr Richard Rose on 25 June 2021, Coronado announced the appointment of Mr Christopher P. Meyering as Vice President, Chief Legal Officer (CLO) and Secretary. Transition arrangements have been agreed and Mr Rose who will remain with the Company unti
Slide 7: Cautionary Notice Regarding Forward-Looking Statements
Cautionary Notice Regarding Forward – Looking Statements This report contains forward-looking statements concerning our business, operations, financial performance and condition, the coal, steel and other industries, as well as our plans, objectives and expectations for our business, operations, fin
Slide 8: Mining and Operating Costs per Tonne Reconciliation
MINING AND OPERATING COSTS PER TONNE RECONCILIATION For Six Months Ended 30 June 2021 Australia United Other / Total For personal use only (In US$’000, except for volume data) States Corporate Consolidated Total costs and expenses 578,657 280,830 13,632 873,119 Less: Selling, general and administrat
Slide 9: Realised Pricing Reconciliation
REALISED PRICING RECONCILIATION For Six Months Ended 30 June 2021 (In US$’000, except for volume data) Australia United States Consolidated Total Revenues 489,726 310,641 800,367 For personal use only Less: Other revenues 17,527 1,874 19,401 Total coal revenues 472,199 308,767 780,966 Less: Thermal
Slide 10: 2021 Half Year Results Presentation
For personal use only 2021 Half Year Results Presentation GERRY SPINDLER Managing Director and CEO GERHARD ZIEMS Group Chief Financial Officer 10 August 2021 (All units in USD and metric tonnes, unless otherwise stated)
Slide 11: HY 2021 Highlights
For personal use only HY 2021 HIGHLIGHTS GERRY SPINDLER MANAGING DIRECTOR AND CEO
Slide 12: HY 2021 Safety Performance
HY 2021 Safety Performance The Safety of our workforce remains our highest priority For personal use only Australian TRIFR was 5.63 and the U.S. Australian Operations (TRIFR) TRIR was 2.55. 12 Australian Operations (TRIFR) Industry average (TRIFR) The Australian TRIFR rate represented a 10 40% i
Slide 13: HY 2021 in Review
HY 2021 in Review Total ROM Production of 13.7Mt, up 16% For personal use only Total Saleable Production of 8.8Mt, up 10% Total Sales Volumes of 8.9Mt, up 7% Improved production and sales underpinned by U.S. segment returning to pre-COVID levels Total Revenue of $800.4 million, up 12% Adju
Slide 14: HY 2021 Group Operational Performance
HY 2021 Group Operational Performance Higher production and greater percentage of export and metallurgical revenue mix For personal use only ROM Production (Mt) Export Volume Mix (%) 15 13.7 HY21 HY20 HY21 HY20 11.9 10 24.0% 26.0% 7.2 6.7 Export 5 3.5 3.0 2.8 Domestic 2.1 0.0 0.2 76.0% 74.0% 0 Curra
Slide 15: Reserves & Resources
Reserves & Resources (Mt) Coronado maintains long-life operating assets ~20 years For personal use only Reserves (Mt) Resources (Mt) 3,000 1,400 2,550 2,500 1,200 964 1,000 2,000 800 1,500 600 1,017 1,000 400 280 514 503 163 197 171 500 200 141 196 265 12 55 0 0 Notes: Charts reflect reserves and re
Slide 16: HY 2021 Financial Performance
For personal use only HY 2021 FINANCIAL PERFORMANCE GERHARD ZIEMS GROUP CHIEF FINANCIAL OFFICER
Slide 17: HY 2021 Financial Results
HY 2021 Financial Results Benefits of higher pricing to be realised in the second half of 2021 For personal use only Group Dashboard Production up 10% and Sales Volume up 7% given temporary suspension of activities H1 2021 Actual H1 2020 Actual Variance in Australia in early 2020 and onset of COVI
Slide 18: Successfully Completed US$550 million Refinancing Initiatives
Successfully Completed US$550 million Refinancing Initiatives Coronado has successfully completed its For personal use only announced refinancing initiatives Asset Based Loan US$100 million Asset Based Revolving Credit Facility resulting in a more appropriate and flexible capital structure. The
Slide 19: HY 2021 Cash Flows and Balance Sheet
HY 2021 Cash Flows and Balance Sheet ($M) Stabilised cashflows and additional equity used to reduce Net Debt For personal use only Operating Cash Flow / Free Cash Flow Net Debt Available Liquidity Net debt has reduced by $45M 48 57 282 213 since the beginning of 2021 65 237 13 100 ABL facility r
Slide 20: HY 2021 Revenue, Price and Costs
HY 2021 Revenue, Price and Costs Revenue Group Revenue was $800 million, up $86 million or 12% on H1 2020 For personal use only (US$m) H1 2021 H2 2020 H1 2020 800 749 714 Group Realised Met Coal Price of $99.8 per 490 503 474 311 246 240 tonne (mix of FOR and FOB pricing) was up 2.6% compared to
Slide 21: HY 2021 Operational Segment Performance
HY 2021 Operational Segment Performance Run-of-Mine (ROM) production For personal use only (Mt) ROM production was 13.7 Mt, up 1.8Mt or H1 2021 H2 2020 H1 2020 15.6% on H1 2020 13.7 13.3 11.9 Saleable production was 8.8 Mt, up 0.8 Mt or 10.0% on H1 2020 7.2 8.0 6.7 6.5 5.4 5.1 – Australian produ
Slide 22: Metallurgical Coal Markets
For personal use only Metallurgical Coal Markets HY21 Results Presentation 13
Slide 23: Significant Potential EBITDA Generation at Current Met Coal Prices
Significant Potential EBITDA Generation at current Met Coal Prices A US$10/t HCC benchmark price uplift could contribute ~US$100 million For personal use only to annual Adj. EBITDA(1)(4) Since the beginning of the year the Platts PLV FOB AUS HCC price has recovered Historical Metallurgical Coal Be
Slide 24: Strong Metallurgical Coal Demand Through 2050
Strong Metallurgical Coal Demand Through 2050 Growth for seaborne metallurgical coal is underpinned by Indian demand and blast furnace production For personal use only Seaborne Met Coal Supply (Mt) Seaborne Met Coal Demand (Mt) Seaborne Met coal demand is forecast to 446 446 grow 52% by 2050, led
Slide 25: Government Stimulus Driving Steel Demand Outlook
Government Stimulus Driving 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) 391.9 2021 2022 9.0 8.0 6.0 +248% 5.1 5.4 168.6 3.6 3.6 3.6 123.1 127.9 131.2 3.0 2.8 112.5 117.4
Slide 26: ESG
For personal use only ESG GERRY SPINDLER MANAGING DIRECTOR AND CEO
Slide 27: Coronado Rehabilitation Activities
Coronado Rehabilitation Activities Rehabilitation efforts in HY21 and prior periods are seeing excellent For personal use only results. Year to date, 52 acres of rehabilitation activities were completed at Greenbrier Photos of rehabilitation efforts at Logan and Greenbrier are shown opposite S
Slide 28: Sustainability
Sustainability Coronado released its 2020 Sustainability Report during HY 2021 For personal use only Coronado’s Sustainability Report details the Company’s commitments in respect of Safety, Health, People, Community, Environment and Climate Change. Climate risks and opportunities increasingly fo
Slide 29: Coronado Outlook
For personal use only Coronado Outlook
Slide 30: Factors supporting strong margin growth and liquidity in H2
Factors supporting strong margin growth and liquidity in H2 include: For personal use only Index prices at 31 July 2021 for PLV HCC FOB Australia were US$216/t and for LV HCC FOB USEC were US$220/t(1) Sharp rise in Met coal prices in late H1 2021 Higher prices to be realised by Coronado (both Au
Slide 31: Key focus areas for the remainder of 2021
Key focus areas for the remainder of 2021 Coronado will have three core focuses for the remainder of FY21 to ensure we are positioned for growth For personal use only and to capitalise on current market conditions Safety Production Financial/Corporate Coronado will continue to Coronado is focused on
Slide 32: Coronado Strategic Platform
Coronado Strategic Platform High quality Australian and U.S. metallurgical coal is an essential element in the production of steel and For personal use only delivers lower emissions than substitutes Largest independent producer of steel making coal globally Asset Optimisation Strategic Growth Capita
Slide 33: Questions
For personal use only QUESTIONS
Slide 34: Disclaimer
Disclaimer The material contained in this presentation is intended to be general background information on Coronado Global Resources (Coronado) and its activities. For personal use only The information is supplied in summary form and is therefore not necessarily complete. It is not intended that it
Slide 35: Supplementary Information
For personal use only SUPPLEMENTARY INFORMATION
Slide 36: Reconciliation of Non-GAAP measures
Reconciliation of Non-GAAP measures This report includes a discussion of results of operations and references to and analysis of certain non-GAAP measures (as described below) which are financial measures not recognised in accordance with U.S. GAAP. Non-GAAP financial measures are used by the Compan
Slide 37: Reconciliation of Non-GAAP measures (continued)
Reconciliation of Non-GAAP measures (continued) Realised Met Pricing reconciliation June 30, 2021 Australian Operations U.S. Operations Consolidated For personal use only (US$ Thousands, except for volume data) Total Revenues 489,726 310,641 800,367 Less: Other revenues 17,527 1,874 19,401 Total coa
Slide 38: Reconciliation of Non-GAAP measures (continued)
Reconciliation of Non-GAAP measures (continued) Adjusted EBITDA reconciliation June 30, 2021 June 30, 2020 Operating Costs per tonne reconciliation June 30, 2021 June 30, 2020 For personal use only (US$ Thousands) (US$ Thousands, except for volume data) Net loss (96,057) (123,196) Total costs and ex
Slide 39: Reconciliation of Non-GAAP measures (continued)
Reconciliation of Non-GAAP measures (continued) Mining Costs per tonne reconciliation June 30, 2021 Australia United States Other/Corporate Total (US$ Thousands, except for volume data) Total costs and expenses 578,657 280,830 13,632 873,119 For personal use only Less: Selling, general and administr
Slide 40: Contacts
CONTACTS For personal use only Investors: Media: Andrew Mooney Brett Clegg P: +61 458 666 639 Citadel Magnus E: amooney@coronadoglobal.com P: +61 487 436 985 E: investors@coronadoglobal.com
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