Coronado Global Resources Inc. · ASX:CRN
Coronado Global Resources — H1 2023 Earnings Presentation
42 slides from Coronado Global Resources's earnings presentation, Aug 8, 2023
Slide 1: Half Year Results and Investor Presentation
ASX Announcement 8 August 2023 Half Year Results and Investor Presentation Coronado Global Resources Inc. (ASX: CRN) releases the attached: • 2023 Half Year Results Announcement; and • 2023 Half Year Results Investor Presentation – Ends – This announcement was authorised to be given to ASX by the Bo
Slide 2: 2023 Half Year Results
ASX ANNOUNCEMENT - 2023 HALF YEAR RESULTS 8 August 2023 Improved operating conditions deliver higher production rates and strong half year financial results: ➢ Revenue US$1,493m, Net Income US$199m, Adjusted EBITDA US$352m, Group Average Realised Met Coal Price US$229/tonne ➢ Net Cash position of US
Slide 3: Comments from Managing Director and CEO
• Higher HY23 costs are associated with global inflationary pressures, lower year-to-date Sales Volumes, and higher Queensland government royalty rates that were introduced from 1 July 2022. Mining Costs per tonne sold guidance of between $84.0 - $87.0 per tonne is retained due to the second half we
Slide 4: Dividends and Capital Management
HY23 Group revenues of $1,493 million, the second highest first half revenues in the Company’s history, were down 24.6% compared to the record revenues generated in HY22 of $1,980 million. Lower revenues year-to-date are reflective of the 37.1% fall in Australian Met Coal index prices year-to-date,
Slide 5: Senior Management Transition Complete
SENIOR MANAGEMENT TRANSITION COMPLETE During the half year, Coronado transitioned a number of senior executive roles according to its succession plan. Mr Douglas Thompson was promoted to Managing Director and Chief Executive Officer, replacing Mr Gerry Spindler who was appointed to the role of Execu
Slide 6: Organic Growth Plans
ORGANIC GROWTH PLANS Coronado continued to actively pursue its exciting portfolio of organic growth and emission reduction projects in HY23. In June, the Board of Directors officially approved the development of the Curragh North Underground Met Coal project. The project underpins Coronado’s strateg
Slide 7: Metallurgical Coal Market Outlook
Australian Met Coal exports to China recommenced in HY23 although at lower-than-expected volume. Over time, China’s return to importing Australian Met Coal is expected to displace lower quality and higher cost Chinese domestic or U.S. Met Coal production, particularly to the Chinese Steelmakers in s
Slide 8: Cautionary Notice Regarding Forward-Looking Statements
Cautionary Notice Regarding Forward–Looking Statements This report contains forward-looking statements concerning our business, operations, financial performance and condition, the coal, steel and other industries, as well as our plans, objectives and expectations for our business, operations, finan
Slide 9: Mining and Operating Costs Per Tonne Reconciliation
MINING AND OPERATING COSTS PER TONNE RECONCILIATION For the six months ended 30 June 2023 United Other / Total (In US$’000, except for volume data) Australia States Corporate Consolidated Total costs and expenses 796,470 407,690 18,293 1,222,453 Less: Selling, general and administrative expense - -
Slide 10: Realised Pricing Reconciliation
REALISED PRICING RECONCILIATION For the six months ended 30 June 2023 (In US$’000, except for volume data) Australia United States Consolidated Total Revenues 830,467 662,773 1,493,240 Less: Other revenues (16,542) (20,908) (37,450) Total coal revenues 813,925 641,865 1,455,790 Less: Thermal coal re
Slide 11: Half Year 2023 Results Presentation
Douglas Thompson Gerhard Ziems Half Year 2023 Results Presentation Managing Director & CEO 8 August 2023 Group Chief Financial Officer All units in U.S. dollars and metric tonnes, unless otherwise stated
Slide 12: 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 13: CEO Address
CEO Address Douglas Thompson Managing Director & CEO Presentation Title 3 HY23 Results Presentation 3
Slide 14: HY 2023 Highlights
HY 2023 Highlights Improved operating conditions deliver higher production rates and strong half-year results Significant Strong capital Strong Growth Plans works on management operational Group advanced emission Bi-annual and balance performance Revenue of Curragh North reduction fixed dividend she
Slide 15: A Leading International Producer
A leading international producer of high- quality metallurgical coal, an essential element in the production of steel. HY23 Results Presentation 5 HY23 Results Presentation 5
Slide 16: Metallurgical Coal has a Long-Term Future
Metallurgical Coal has a Long-Term Future Steel is the No. 1 critical commodity to the development of a low carbon future Low to None High Electricity Concentrated Solar Electric Geothermal Hydro Nuclear Bioenergy Hydrogen Wind power networks solar photovoltaic vehicles Steel (Iron Ore/Met Coal) Cop
Slide 17: Energy Transition is Dependent on Steel
Energy transition is dependent on Steel; Met Coal is a critical material Steel is used in almost every aspect of the world’s infrastructure, including buildings, bridges, rail systems and houses To produce 1,000kg of steel using the BOF process requires approx.: Golden Gate Bridge (1) Average Electr
Slide 18: Steel Production Generated Primarily by Blast Furnace Methods
Steel production generated primarily from Blast Furnace methods Met Coal underpins the primary Steel production method in Asia and Globally through 2050 Total Global Crude Steel Production (Bt) Total Global Crude Steel Total Asia Crude Steel Production Method Production Method +13% 21% 2.2 29% 2023
Slide 19: 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 20: Safety is the Most Important Aspect
Safety is the most important aspect of our operations and our highest priority HY23 Results Presentation 10
Slide 21: Health and Safety
Health and Safety Safety is Coronado’s highest priority Australian Operations (TRIFR) 10 Australian Operations Industry Average 8 6 4 2 0 Jan-21 Apr-21 Jul-21 Oct-21 Jan-22 Apr-22 Jul-22 Oct-22 Jan-23 Apr-23 Jul-23 US Operations (TRIR) 4 U.S. Operations Industry Average 3 2 1 0 Jan-21 Apr-21 Jul-21
Slide 22: Financial Performance
Financial Performance Gerhard Ziems Group Chief Financial Officer HY23 Results HY23 Presentation Results Presentation 12 12
Slide 23: HY 2023 Summary Results
HY 2023 Summary Results Improved Production Results; Strong balance sheet retained Group Revenue $1,493 million; second Group Dashboard highest first-half revenue in Coronado’s history HY 2023 Actual HY 2022 Actual Variance Revenue $1,493.2M $1,979.8M $486.6M Adjusted EBITDA $352 million lower due N
Slide 24: HY 2023 Cash Flows and Liquidity
HY 2023 Cash Flows and Liquidity ($M) Second half cash boost due to large coal inventory build Coronado generated $224 million in HY 2023 Free Cash Flow Generation Operating Cash Flows and $117 million in 34 352 Free Cash Flow in HY 2023. 9 14 74 224 Corporate taxation payments and large coal 65 inv
Slide 25: HY 2023 Fixed Biannual Dividend
HY 2023 Fixed Biannual Dividend Coronado declares its biannual fully franked fixed dividend of $8.4 million (US 0.5 cents/CDI) Key Dates 8 August 2023 29 August 2023 19 September 2023 Declaration of $8.4 million. Dividend record date Dividend payment date (US 0.5 cents/CDI) fully franked dividend pe
Slide 26: Metallurgical Coal Markets
Metallurgical Coal Markets HY23 Results Presentation 16
Slide 27: Coronado's Unique Diversification Advantage
Coronado’s Unique Diversification Advantage Coronado supports Met Coal customers on five continents HY 2023 Met Coal Product Offering Australia (1),(2) U.S.(3) 9% 24% HCC Low-Vol PCI 38% 53% High-Vol Canada SCC 76% Europe Japan USA China South Korea HY 2023 Group Sales – Geography (4) India 4% 15% A
Slide 28: Met Coal Prices Expected to Rebound
Met Coal prices expected to rebound in late-Q3 2023 Met Coal index has fallen in 2023; Remains well above long-term average price. Metallurgical Coal Price Indices (U$/t) (1) Coronado Average Met Coal Realised Price (US$/t) (3) 700 PLV HCC FOB AUS HY22 HY23 -27% LV HCC FOB USEC -22% 600 329 -15% PLV
Slide 29: 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) 5.6 5.6 5.7 2023 2024 366.7 5.1 209.0 +193% 2.9 2.6 154.2 164.1 2.3 133.1 144.8 1
Slide 30: Strong Met Coal Demand Through 2050
Strong Met Coal Demand Through 2050 Global export demand growth for Met Coal is underpinned by India; Primary source growth needs to be from Australia. Global export Met Coal demand is forecast to Global Export Met Coal Supply (Mmt) Global Export Met Coal Demand (Mmt) grow to 548Mmt by 2040, led pri
Slide 31: Organic Growth Projects
Organic Growth Projects Douglas Thompson Managing Director & CEO Presentation HY23 Results Title Presentation 2121
Slide 32: Growth - Australia
Growth - Australia Board approved Curragh North Underground Met Coal project underpins Curragh strategy to deliver 13.5Mtpa by 2025 Coal Reserve, Quality and Mining Method Underground Bord and Pillar operation Access utilizing existing open cut pit highwall Substantial high-quality Met coal re
Slide 33: Growth - U.S.
Growth – U.S. Buchanan capital works on target; underpin U.S. growth plans to produce 7.0Mtpa by 2025 Buchanan: Construction of new surface coal storage areas underway to increase capacity and decrease bottlenecks. Installation of a second set of skips for additional hoisting capacity. Expendi
Slide 34: Emissions Reduction and Sustainability
Emissions Reduction and Sustainability HY23 Results Presentation 24
Slide 35: Buchanan Ventilation Air Methane Abatement Project
Buchanan Ventilation Air Methane (VAM) Buchanan mine VAM project officially Abatement Project commenced on 27 July 2022. Project in operations and delivering tangible reductions Project utilises the latest technology (RTO – in emissions from our Buchanan mine Reductive Thermal Oxidation) to convert
Slide 36: Curragh Gas Pilot Project
Curragh Gas Pilot Project Project on target to extract and utilise waste mine coal gas to power a fleet of 5 – 6 trucks from HY 2024 Substantial drilling undertaken. Vertical drilled wells are complete and have been intersected by the horizontal in-coal seam wells. First dual-fuel mine truck com
Slide 37: Coronado Investment Proposition
Coronado Investment Proposition Our fundamental policy is to generate Shareholder Value Shareholder Value Critical Commodity Operational Excellence Capital Management • Met Coal is a critical material found • Strong Culture and Capability to • Strong Balance Sheet with Embedded in every renewable en
Slide 38: Questions
Questions HY23 Results Presentation 28 HY23 Results Presentation 28
Slide 39: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP measures This report discusses 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 invest
Slide 40: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP measures (continued) Mining Costs per tonne reconciliation for the Mining Costs per tonne reconciliation for the six months ended 30 June 2023 United Other / six months ended 30 June 2022 United Other / Australia Consolidated Australia Consolidated States Corporate States
Slide 41: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP measures (continued) Adjusted EBITDA reconciliation For the six months For the six months Realised Total Pricing reconciliation For the six months For the six months ended ended ended ended (US$ thousands) 30 June 2023 30 June 2022 (US$ thousands, except for volume data) 3
Slide 42: 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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