Coronado Global Resources Inc. · ASX:CRN
Coronado Global Resources — FY2022 Earnings Presentation
46 slides from Coronado Global Resources's earnings presentation, Feb 22, 2023
Slide 1: Investor Presentation – 2022 Full Year Results
ASX Announcement 22 February 2023 Investor Presentation – 2022 Full Year Results Coronado Global Resources Inc. (ASX: CRN) releases the following Investor Presentation for 2022 Full Year Results. This announcement was authorised for release by the Board of Coronado Global Resources Inc. For further
Slide 2: Full Year 2022 Results Presentation
Gerry Spindler Gerhard Ziems Full Year 2022 Results Presentation Managing Director and CEO Group Chief Financial Officer 22 February 2023 (All units in USD and metric tonnes, unless otherwise stated)
Slide 3: Important Notices and Disclaimer
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
Slide 4: CEO Address
CEO Address Gerry Spindler Managing Director & CEO FY22 Results Presentation 3
Slide 5: A leading international producer of high-quality metallurgical coal
A leading international producer of high-quality metallurgical coal, an essential element in the production of steel. FY22 Results Presentation 4
Slide 6: Energy transition is dependent on steel; Met Coal is a key driver
Energy transition is dependent on steel; Met Coal is a key driver Met Coal is a key ingredient in making steel, which underpins the global transition to new renewable energy infrastructure and reduced global emissions. Golden Gate Bridge (1) Empire State Building (2) Average Electric Vehicle (3) Ave
Slide 7: Metallurgical Coal has a long-term future
Metallurgical Coal has a long-term future Steel is critical to the development of a low carbon future; Demand outlook remains firm. Total Global Crude Steel Production (Bt) Total Global Crude Steel Production Method +15% EAF / Other EAF / Other 2.2 2.0 28% 36% 64% 72% BOF BOF 2022 2050 2022 2050 EAF
Slide 8: Coronado Reserves and Resources
Coronado Reserves and Resources Coronado maintains long-life operating assets >20 years; Met Coal resources >2 billion tonnes. 1,000 Reserves (Mmt) 2,500 Resources (Mmt) 2,113 805 800 2,000 600 1,500 400 1,000 925 254 197 514 200 154 138 500 208 253 50 159 12 55 0 0 Notes: Charts reflect reserves an
Slide 9: Safety is the most important aspect of our operations
Safety is the most important aspect of our operations and our highest priority FY22 Results Presentation 8
Slide 10: Health and Safety
Health and Safety Safety is Coronado’s highest priority Australian Operations (TRIFR) Australian Operations (TRIFR) Industry average (TRIFR) 10 8 6 4 2 0 US Operations (TRIR) 4 US Operations (TRIR) Industry average (TRIR) 3 2 1 Notes: Total Recordable Injury Frequency Rate (TRIFR), is the number of
Slide 11: FY 2022 Highlights
FY 2022 Highlights FY22 Results Presentation 10
Slide 12: FY 2022 Highlights
FY 2022 Highlights Record revenue of $3.6 billion underpinned by elevated Met Coal pricing Record net income of $772 million and adjusted EBITDA of $1.2 billion Record dividend distributions totalling $700 million; total shareholder returns exceed 100% Solid operating performance and productivity in
Slide 13: Financial Performance
Financial Performance Gerhard Ziems Group Chief Financial Officer FY22 Results Presentation 12
Slide 14: FY 2022 Summary Financial Results
FY 2022 Summary Financial Results Record financial results achieved; Strong balance sheet retained. Record group revenue of $3.6 billion, up $1.4 billion, or 66%, compared to 2021. Group Dashboard Record average realised pricing FY 2022 Actual FY 2021 Actual Variance levels in Australia, the U.S. an
Slide 15: FY 2022 Cash Flows and Liquidity ($M)
FY 2022 Cash Flows and Liquidity ($M) Coronado generated $927 million in Strong free cash flow generation; Available liquidity $434 million. Operating Cash Flows and $643 million in Free Cash Flow after 1,216 FY 2022 Free Cash Flow Generation capital expenditure and other financing costs. 124 37 927
Slide 16: Share Price Performance / Dividend Yield
Share Price Performance / Dividend Yield Coronado share price / dividend payments ($700 million) have substantially outperformed the market Share Price Performance vs Index (1) Dividend Yield vs Index / Peers (2) 100% 48.9% 47.0% 80% +60% 38.0% 60% 29.0% 40% 20% 18.0% 0% -5% -20% -19% 6.0% 6.1% 1.0%
Slide 17: FY 2022 Fixed Biannual Dividend
FY 2022 Fixed Biannual Dividend Coronado declares its biannual fully franked fixed dividend of $8.4 million (USD 0.5 cents/CDI) Key Dates 22 February 2023 15 March 2023 5 April 2023 Declaration of $8.4 million. Dividend record date Dividend payment date (USD 0.5 cents/CDI) fully franked dividend per
Slide 18: Coronado's Capital Management Strategy
Coronado’s Capital Management Strategy Supported By Strong Fundamentals 1. Strong Balance Sheet Maintaining a strong balance sheet with enhanced liquidity and prudent debt levels. 2. Shareholder Returns Fundamental strategy is to return funds to Shareholders. 3. Organic Growth Prioritise growth expe
Slide 19: FY 2023 Production, Cost and Capex Guidance
FY 2023 Production, Cost and Capex Guidance Saleable production levels are expected to be higher in FY23 with improved mining conditions at Curragh with an assumption of less wet weather than FY22. Metric Actual Guidance FY22 FY23 Mining cost per tonne sold expected to decrease due to higher product
Slide 20: Metallurgical Coal Markets
Metallurgical Coal Markets FY22 Results Presentation 19
Slide 21: Record 2022 Met Coal Price Realisations
Record 2022 Met Coal Price Realisations Met Coal index is rebounding strongly; Thermal Coal index falling. Metallurgical Coal Price Indices (U$/t) (1) Coronado Average Met Coal Realised Price (US$/t) (3) 700 PLV HCC FOB AUS +112% FY 2021 FY 2022 +93% LV HCC FOB USEC +73% 600 303 PLV HCC CFR China 26
Slide 22: Coronado's Unique Diversification Advantage
Coronado’s Unique Diversification Advantage Coronado supports Met Coal customers on five continents FY 2022 Met Coal Product Offering Australia (1),(2) U.S.(3) 8% 2% 30% HCC Low-Vol 34% PCI High-Vol SCC Mid-Vol 68% 58% Europe Japan US FY 2022 Group Sales – Geography (4) China South Korea 5% India 14
Slide 23: Steel Demand Outlook Remains Firm
Steel Demand Outlook Remains Firm India steel production anticipated to grow year-on-year due to urbanisation and industrialisation Annual Forecast GDP Growth Percentage (1) India Total Crude Steel Production (Mmt) (2) 6.6 391.9 6.4 2023 2024 5.5 5.1 +218% 168.6 2.6 143.9 2.4 2.4 2.4 136.7 2.3 2.3 2
Slide 24: Strong Metallurgical Coal Demand Through 2050
Strong Metallurgical Coal Demand Through 2050 Growth for seaborne Met Coal is underpinned by Indian demand; Primary source growth from Australia. Global seaborne Met Coal demand is forecast to grow to 446Mmt by 2050, Seaborne Met Coal Supply (Mmt) Seaborne Met Coal Demand (Mmt) led primarily by blas
Slide 25: Strategy / Growth Plans
Douglas Thompson Strategy / Growth Plans FY22 Results Presentation 24
Slide 26: Key focus areas for 2023
Key focus areas for 2023 Coronado is inherently focused on maintaining safe operations and delivering production plans Safety Production Financial / Corporate Coronado will drive a Coronado is focused on Coronado remains focused strong health and safety improving production on maintaining a strong c
Slide 27: Growth – U.S. Operations
Growth – U.S. Operations Production plans at our high-quality U.S. operations projected to be 7 Mmt by FY25 Estimated Production Profile (Mmt) +15% 7.0 6.1 FY22 FY23 Est FY24 Est FY25 Est Notes: 2023 – 2025 production projections are estimates. Mmt = Million metric tonnes. Please refer to Important
Slide 28: Growth – U.S. Operations
Growth – U.S. Operations Tier 1 Buchanan mine capital works underpin U.S. segment growth plans Buchanan: Production growth from the U.S. segment primarily comes from the Tier 1 Buchanan asset. Construction of new surface coal storage areas underway to increase capacity and decrease bottlenecks.
Slide 29: Mon Valley Development Project
Mon Valley Development Project Strategic greenfield development opportunity in Southwest Pennsylvania Location: 22.5km southeast of Pittsburgh Reserves: 197 Mmt of Reserves Production Capacity: >2 Mmt per year; Underground mine Coal Quality: High-Vol HCC Transportation: Barge with alternate rail acc
Slide 30: Growth - Australian Operations
Growth - Australian Operations FY22 impacted by extreme wet weather; ‘One Curragh Plan’ will target 13.5 Mmt of production by FY25 Estimated Production Profile (Mmt) +38% 13.5 9.8 FY22 FY23 Est FY24 Est FY25 Est Notes: 2023 – 2025 production projections are estimates. Mmt = Million metric tonnes. Pl
Slide 31: Growth - Australian Operations
Growth - Australian Operations FY 2022 Initiatives Complete: Improved productivity following investments in dragline performance and waste movement. ▪ Waste movement (FY22: 179.3 Mbcms vs FY21: 177.1 Mbcms) Transitioned 3 x Excavator / Truck and 1 x Shovel / Truck fleets (53 individual pieces of
Slide 32: Curragh North Underground Project
Curragh North Underground Project Prefeasibility works complete with positive results Pre-Feasibility Study completed in Q4 2022 with positive results. Next phase of engineering and supporting work approved and commenced Optimised capital requirements and entry timeline by using final opencut
Slide 33: Leadership Succession
Gerry Spindler Leadership Leadership Succession Succession FY22 Results Presentation 32
Slide 34: Coronado Leadership Succession
Coronado Leadership Succession Effective May 2023 FY22 Results Presentation 33
Slide 35: Environmental, Social and Governance (ESG)
Environmental, Social and Governance (ESG) FY22 Results Presentation 34
Slide 36: Sustainability Actions and Commitments
Sustainability Actions and Commitments Coronado strives to be a socially and environmentally conscious employer putting its people and their communities first Safety and health remain our #1 priority. Coronado employs close to 1,750 people directly and over 2,300 contractors globally, most emplo
Slide 37: Significant Rehabilitation Works Completed in FY 2022
Significant Rehabilitation Works Completed in FY 2022 223ha completed across all operations (Curragh 171ha, Logan 36ha, Greenbrier 13ha, Buchanan 3ha) Curragh Greenbrier FY22 Results Presentation 36
Slide 38: Buchanan Ventilation Air Methane (VAM) Abatement Project
Buchanan Ventilation Air Methane (VAM) Abatement Project Buchanan mine VAM project officially commenced on 27 July 2022. Project underpins Coronado’s 30% emissions reduction target by 2030 Project utilises the latest technology (RTO – Reductive Thermal Oxidation) to convert fugitive methane gas emis
Slide 39: Gas Pilot Project
Gas Pilot Project ESG project to capture and use waste mine coal gas at our Curragh mine Exploration project initiated at Curragh North, split into components that will help to increase understanding and modelling of incidental gas reservoir, allowing optionality on downstream use cases to be deve
Slide 40: Coronado Sustainability Report 2021
Coronado Sustainability Report 2021 https://coronadoglobal.com/sustainability/ 2022 Sustainability Report available May 2023
Slide 41: Questions
Questions FY22 Results Presentation 40
Slide 42: Supplementary Information
Supplementary Information FY22 Results Presentation 41
Slide 43: Reconciliation of non-GAAP measures
Reconciliation of non-GAAP measures This report discusses the results of the Company’s operations and includes references to and analysis of certain non-GAAP measures, which are financial measures not recognized in accordance with U.S. GAAP. Non-GAAP financial measures are used by the Company and in
Slide 44: Reconciliation of Non-GAAP measures
Reconciliation of Non-GAAP measures For the 12 months For the 12 months Realised met pricing reconciliation for the 12 months Total consolidated mining costs per tonne reconciliation ended 31 ended 31 ended 31 December 2022 Australia United States Consolidated (US$ thousands, except for volume data)
Slide 45: Reconciliation of Non-GAAP measures
Reconciliation of Non-GAAP measures For the 12 For the 12 months months For the 12 For the 12 Adjusted EBITDA reconciliation Realised total pricing reconciliation months ended months ended ended 31 ended 31 (US$ thousands) (US$ thousands, except for volume data) 31 December 31 December December Dece
Slide 46: Contacts
Contacts Investors Registered Office Media Andrew Mooney Coronado Global Resources Inc. Helen McCombie Vice President Investor Citadel Magnus Relations & Communications Level 33, Central Plaza One 345 Queen Street +61 411 756 248 +61 458 666 639 Brisbane, QLD, Australia, 4000 hmccombie@citadelmagnus
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