Coronado Global Resources Inc. · ASX:CRN
Coronado Global Resources — FY2021 Earnings Presentation
37 slides from Coronado Global Resources's earnings presentation, Feb 22, 2022
Slide 1: 2021 Full Year Results
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 2: Important Notices and Disclaimer
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 not intended that it be relied upon as advice to inves
Slide 3: FY 2021 Highlights
FY 2021 Highlights GERRY SPINDLER MANAGING DIRECTOR AND CEO
Slide 4: FY 2021 Safety Performance
FY 2021 Safety Performance 4 FY21 Results Presentation Coronado reportable safety rates below industry averages Notes: Total Recordable Injury Frequency Rate (TRIFR), is the number of fatalities, lost time injuries, cases or substitute work and other injuries requiring medical treatment per million-
Slide 5: Managing Covid-19
5 FY21 Results Presentation Coronado remains focused on the safety 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 clinics at ou
Slide 6: FY 2021 in Review
Total Revenue of $2,148 million, up 47% Adjusted EBITDA of $486 million, up 804% Net Income of $189 million, up 184% Net Cash of $123 million, up 144%. Available Liquidity $538 million. Significant boosts to Revenue, Profits and Cash for FY22 Capex $91M, down 26% Completed $550 million r
Slide 7: FY 2021 Group Operational Performance
7 FY 2021 Group Operational Performance Higher production and greater percentage of Metallurgical revenue mix Export Volume Mix (%) ROM Production (Mt) Saleable Production (Mt) Revenue Mix (%) 13.6 7.2 5.6 0.0 26.4 14.7 5.8 4.5 0.3 25.2 0 5 10 15 20 25 30 Curragh Buchanan Logan Greenbrier Group FY21
Slide 8: Reserves & Resources (Mt)
8 Reserves & Resources (Mt) FY21 Results Presentation Coronado maintains long-life operating assets ~20 years Notes: Charts reflect reserves and resources as at 31 December 2021 in metric tonnes. Coal resources are inclusive of coal reserves. Australian resources are reported on a 5.3% in-situ moist
Slide 9: Coronado leading Met coal producer; undervaluation and commitments
9 FY21 Results Presentation Coronado is the leading Met coal producer among pure-play coal enterprises and at 31 December 2021 was the only business in a Net Cash position3 We believe we are inherently undervalued with EBITDA multiples lower than peers, including Thermal coal miners To address
Slide 10: Financial Performance & FY 2022 Guidance
Financial Performance & FY 2022 Guidance GERHARD ZIEMS GROUP CHIEF FINANCIAL OFFICER
Slide 11: FY 2021 Financial Results
FY 2021 Financial Results Coronado returns to a Net Cash position; Improved second half conditions drive strong result Notes: Rounding has been applied to this table as appropriate. Green and red coloured references in the variance column indicate positive and negative variance movements respectivel
Slide 12: FY 2021 Cash Flows and Liquidity
FY 2021 Cash Flows and Liquidity ($M) Record closing cash balance; Available liquidity of $538 million Coronado generated $442 million in Operating cash flows and $299 million in Free cash flow after capital expenditure, debt redemption and other financing costs $438 million record year end clos
Slide 13: Returns and Distributions
Returns and Distributions 13 FY21 Results Presentation Coronado plans to distribute a dividend of $150 million, or 9.0 cents per CDI (USD) in Q1 2022 In connection with the dividend, Coronado has advised the Trustee of the Company’s offer to redeem approximately $100 million of its 10.75% Senior
Slide 14: Capital Management
14 FY21 Results Presentation Capital Management Strong Balance Sheet Maintaining a strong balance sheet with enhanced liquidity and prudent debt levels Fundamental strategy is to return funds to Shareholders Prioritise growth expenditure projects to increase existing production rates Uniquely positi
Slide 15: FY 2022 Production, Cost & Capex Guidance
FY 2022 Production, Cost & Capex Guidance 15 FY21 Results Presentation Metric Actual FY21 Guidance FY22 Saleable Production (Mt) 17.4 18.0 – 19.0 Mining Cost per Tonne Sold ($/t) 65.7 69.0 – 71.0 Capital Expenditure ($) 91.1 170 - 190 Saleable production levels are expected to be higher in FY22 wi
Slide 16: Metallurgical Coal Markets
16 HY21 Results Presentation Metallurgical Coal Markets
Slide 17: Coronado has a Unique Diversification Advantage
Coronado has a Unique Diversification Advantage 17 Coronado supports customers on five continents Coronado is diversified across: ▪ Geography ▪ Met Coal Product Offering ▪ Customers Geographically diverse asset base located near key rail and port infrastructure, providing access to both domestic
Slide 18: Substantial Improvement in Met Coal Prices
Substantial Improvement in Met Coal Prices Since the beginning of 2021 the Platts PLV FOB AUS HCC price has recovered from lows of ~US$100/t to ~US$400/t Price recovery is due to supply tightness and increased steel demand Coronado’s operations are well positioned to continue capitalising on t
Slide 19: Markets and Metallurgical Coal Pricing
Markets and Metallurgical Coal Pricing 19 FY21 Results Presentation Significant improvement in Met coal realizations in FY21; Coronado well positioned to capitalize on higher price Met coal markets and exposure to Asia Australian Met coal products are sold on an FOB basis with the majority (~80%
Slide 20: Strong Metallurgical Coal Demand Through 2050
Strong Metallurgical Coal Demand Through 2050 20 Growth for seaborne Met coal is underpinned by Indian demand and blast furnace production Notes: Data sourced from Wood Mackenzie December 2021 Metallurgical Trade Outlook to 2050 Seaborne Met Coal Supply (Mt) Seaborne Met Coal Demand (Mt) Global se
Slide 21: Strong Steel Demand Outlook; India Steel Production Growing
Strong Steel Demand Outlook; India Steel Production Growing year on year Notes: (1) Data source Wood Mackenzie November 2021 GDP Forecasts. (2) Data source Wood Mackenzie December 2021 Metallurgical Trade Outlook to 2050 Annual Forecast GDP Growth Percentage (1) India Total Crude Steel Production (M
Slide 22: Strategy / Growth Plans
Strategy / Growth Plans GERRY SPINDLER MANAGING DIRECTOR AND CEO
Slide 23: Key focus areas for 2022
Key focus areas for 2022 Coronado will drive a strong safety culture and continue to implement safety initiatives to reduce injuries: An improvement in reportable TRIFR and TRIR incidents Increased focus on training and supervisory development programs Increased incident reduction initiatives
Slide 24: Growth - Australian Operations
Growth - Australian Operations 24 Estimated Production Profile (Mt) Curragh expects to increase production rates year-on-year, reaching 13.5Mt by 2025 CHPP capacity to produce 13.5Mt is already in place Investment in box-cuts to enable higher Dragline utilisation and improved strike length, th
Slide 25: Growth - U.S. Operations
Growth - U.S. Operations 25 Estimated Production Profile (Mt) Buchanan: Initiating construction of new raw coal storage area Installation of additional skips Construction of the refuse belt extension Enhanced ventilation works Tailing's reclamation works Logan: Focus on hiring and retent
Slide 26: Mon Valley Development Project
Mon Valley Development Project 26 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 alternate rail access on CSX ▪ Seam: Upper Freeport Strategically holding transportation advanta
Slide 27: | ge. é Ene)
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Slide 28: Coronado takes its ESG responsibilities seriously
28 Coronado takes its ESG responsibilities seriously Safety and Health remain our #1 priority Strong traditional owner relationships and actively supporting local business and school programs Coronado progresses rehabilitation at all operations ▪ Since 2018, Coronado has completed approx. 96
Slide 29: Metallurgical Coal is an essential part of decarbonising the economy
Metallurgical Coal is an essential part of decarbonising the economy 29 FY21 Results Presentation Met Coal is a key ingredient in making steel which enables renewable technologies that help to reduce global emissions and enrich lives Average Wind Turbine (1) 285,000 Kg Steel 220,000 Kg Met Coal Wind
Slide 30: Steel is a critical component for transition to a low-carbon economy
Steel is a critical component for transition to a low-carbon economy 30 FY21 Results Presentation Blast Furnace steel production is essential in all low-carbon technologies and underpins renewable energy infrastructure future 71% 29% BF-BOF EAF / Other 1.9 2.2 2021 2050 +14% 55% 46% BF-BOF EAF / Oth
Slide 31: Questions
Questions
Slide 32: Supplementary Information
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Slide 33: 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 Company and investors to measure operating
Slide 34: Reconciliation of Non-GAAP measures: Realised Met Pricing
Reconciliation of Non-GAAP measures (continued) Realised Met Pricing reconciliation 31 December 2021 Australian Operations U.S. Operations Consolidated (US$ Thousands, except for volume data) Total Revenues 1,315,851 832,620 2,148,471 Less: Other revenues (36,115) (4,025) (40,140) Total coal revenue
Slide 35: Reconciliation of Non-GAAP measures: Adjusted EBITDA
Reconciliation of Non-GAAP measures (continued) Adjusted EBITDA reconciliation Year ended 31 December 2021 Year ended 31 December 2020 (US$ Thousands) Net Income / (Loss) 189,423 (226,537) Add: Depreciation, depletion and amortization 177,875 191,189 Add: Interest expense, net 68,062 50,585 Add: Oth
Slide 36: Reconciliation of Non-GAAP measures: Mining Costs per tonne
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 Less: Selling, general and administrative expense -
Slide 37: Contacts
CONTACTS Investors: Andrew Mooney P: +61 458 666 639 E: amooney@coronadoglobal.com E: investors@coronadoglobal.com Media: Helen McCombie Citadel Magnus P: +61 411 756 248 E: hmccombie@citadelmagnus.com Registered Office: Coronado Global Resources Inc. Level 33, Central Plaza One, 345 Queen Street Br
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