Coronado Global Resources Inc. · ASX:CRN
Coronado Global Resources — Investor Presentation (September 2019)
34 slides from Coronado Global Resources's investor presentation, Sep 10, 2019
Slide 1: Safety performance
2 Safety performance Investor Presentation Australian Operations (TRIFR)a US Operations (TRIR)b Continued vigilance to ensure we maintain strong safety performance Total Recordable Injury Frequency Rate (TRIFR), is the number of fatalities, lost time injuries, cases or substitute work and other inju
Slide 2: World class portfolio of metallurgical coal assets
3 World class portfolio of metallurgical coal assets Investor Presentation 2011 2012 2014 2013 2018 2015 2016 2017 AUGUST 2011 Coronado founded by Garold Spindler and James Campbell MARCH 2018 Acquired Curragh from Wesfarmers FY18 Production 20.2Mt Coronado has assembled a diversified portfolio of p
Slide 3: Growth through the incremental tonne, product optimisation, new project development and acquisitions
4 Growth through the incremental tonne, product optimisation, new project development and acquisitions Investor Presentation Strategic Acquisitions Asset Optimisation Capital Management High-quality metallurgical coal assets Long life operating assets with global supply diversity Sustainable low cos
Slide 4: Uniquely positioned
5 Uniquely positioned Investor Presentation Diversified production base with total saleable production 20.1Mt in FY18 across two significant coal basis (Bowen Basin and CAPP region) Geographically diverse asset base with access to both seaborne markets and domestic customers. Coronado Group Australi
Slide 5: Long life assets with significant Reserves & Resources supports strong growth outlook
6 Reserves & Resources (Mt) Investor Presentation Long life assets with significant Reserves & Resources supports strong growth outlook Reserves and Resources (Mt) as 31 December 2018a Australian resources are estimated inclusive of 5.3% insitu moisture. United States resources are estimated on a dr
Slide 6: Competitive Reserves position
7 Competitive Reserves (Mt) position Investor Presentation Marketable Reserves (2),(a),(b) Among the largest Marketable Reserves base of all metallurgical coal producers globally Australian resources are estimated inclusive of 5.3% insitu moisture. United States resources are estimated on a dry basi
Slide 7: A full spectrum producer of metallurgical coal
8 A full spectrum producer of metallurgical coal Investor Presentation Coronado’s portfolio of assets produce a suite of metallurgical coal to meet all blend requirements Coronado’s metallurgical grades Typical US Steel Producer Coke Blend Typical International Steel Producer Coke Blend Low Vol Hard
Slide 8: Competitive cost structure
9 Competitive cost structure Investor Presentation Australian Operations Cost (FOB $/t)3 Low operating cost base supports profitability throughout the commodity cycle Low operating cost asset base targets profitability throughout the commodity cycle Lower cash cost than some of the world’s largest m
Slide 9: Segment performance
EBITDA Margin (%): 10 Segment performance Investor Presentation $405.4 million Group EBITDA underpinned by strong performance at Curragh and Buchanan Curragh Buchanan Logan Greenbrier % of Group EBITDA 64% 34.2% 27% 46.3% 9% 22.6% - - Performance drivers: $586m in EBITDA generated since acquisition
Slide 10: Low cost, competitive expansion options
11 Low cost, competitive expansion options Investor Presentation Capital Cost per Installed Capacity (US$/t)9 Expansion options are highly compelling on installed capacity basis Source: Company reports and disclosures 221 153 130 50 45 0 50 100 150 200 250 Warrior Riversdale Arch PSF Curragh BMA Cur
Slide 11: Valuation comparison
12 Valuation comparisona Investor Presentation Dividend Yield (%) EV/EBITDA FY19 (x) EV/EBITDA FY20 (x) Gearing (x) Despite superior shareholder returns Coronado’s valuation has lagged sector peers Consensus financial information sourced from Bloomberg on September 03, 2019 N/A 2.3% 14.2% 22.6% 11.4
Slide 12: Focused on delivering key promises
~A$0.50 per CDI Stock Price (A$ per CDI) 13 Focused on delivering key promises Investor Presentation Since listing, Coronado has exceeded all operational and corporate targets Coronado Initial Public Offering Q4 FY18 Quarterly Report FY18 Results Announcement FY18 ‘Ex’ Dividend Q1 FY19 Quarterly Rep
Slide 13: Questions
14 Investor Presentation QUESTIONS
Slide 14: Footnotes
15 Footnotes Investor Presentation All tonnages through this presentation are expressed in metric tonnes. All amounts quoted throughout this presentation are in US$ unless otherwise stated. HY18 values are quoted on a Pro-forma basis throughout this presentation unless otherwise stated. EBITDA throu
Slide 15: Disclaimer
16 Disclaimer Investor Presentation 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
Slide 16: Disclaimer: 2018 JORC Resource and Reserve Statements
17 Investor Presentation Disclaimer 2018 JORC Resource and Reserve Statements In this announcement, references to ore reserves (Reserves) are compliant with the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves 2012 (JORC Code) and are measured in accordance
Slide 17: HY19 Results Presentation Supplementary Information
18 HY19 Results Presentation Supplementary Information
Slide 18: Reconciliation of Non-GAAP measures
19 Reconciliation of Non-GAAP measures Investor Presentation This report which incorporates a discussion of results of operations includes 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 f
Slide 19: Balance Sheet
20 Balance Sheet Investor Presentation (US$ Thousands) June 30, 2019 December 31, 2018 Assets Current assets: Cash and restricted cash 46,251 124,881 Trade receivables 204,248 206,127 Related party receivables 59,665 36,716 Income tax receivable - 12,017 Inventories 129,424 95,103 Other current asse
Slide 20: Balance Sheet (cont'd)
21 Balance Sheet (cont’d) Investor Presentation (US$ Thousands) June 30, 2019 December 31, 2018 Liabilities Current liabilities: Accounts payable 41,084 42,962 Accrued expenses and other current liabilities 252,351 243,496 Income tax payable 33,024 9,241 Asset retirement obligations 7,719 7,719 Cont
Slide 21: Income Statement
22 Income Statement Investor Presentation (US$ Thousands) June 30, 2019 June 30, 2018 June 30, 2018 Pro forma Coal revenues 919,329 571,343 874,857 Coal revenues from related parties 293,158 213,003 222,983 Other revenues 21,848 15,337 18,343 Total revenues 1,234,335 799,683 1,116,183 Cost of coal r
Slide 22: Cash Flow Statement
(US$ Thousands) June 30, 2019 June 30, 2018 2019 2018 Cash Flows From Operating Activities: Net income 214,326 35,651 Adjustments to reconcile net income to cash and restricted cash provided by operating activities: Depreciation, depletion and amortization 85,404 64,354 Amortization of right of use
Slide 23: Cash Flow Statement (cont'd)
24 Cash Flow Statement (cont’d) Investor Presentation (US$ Thousands) June 30, 2019 June 30, 2018 2019 2018 Cash Flows From Investing Activities: Capital expenditures (66,430) (46,776) Purchase of deposits and reclamation bonds (906) (523) Redemption of deposits and reclamation bonds - 171 Acquisiti
Slide 24: Mining Costs per tonne Reconciliation
25 Mining Costs per tonne Reconciliation Investor Presentation For six Months Ended June 30, 2019 For six Months Ended June 30, 2018 Pro forma Total costs and expenses 914,744 942,885 Less: Selling, general and administrative expense 18,311 15,977 Less: Depreciation, depletion and amortization 85,27
Slide 25: Realised Pricing Reconciliation
26 Realised Pricing Reconciliation Investor Presentation For six Months Ended June 30, 2019 (In US$’000, except for volume data) Australian Operations US Operations Consolidated Total Revenues 794,182 440,153 1,234,335 Less: Other revenues 18,240 3,608 21,848 Total coal revenues 775,942 436,545 1,21
Slide 26: Adjusted EBITDA Reconciliation
27 Adjusted EBITDA Reconciliation Investor Presentation For six Months Ended June 30, 2019 For six Months Ended June 30, 2018 Pro forma Net Income 214,326 111,178 Add: Depreciation, depletion and amortization 85,279 86,636 Add: Interest expense (net of income) 17,264 31,133 Add: Other foreign exchan
Slide 27: Operating costs per tonne reconciliation for the six months ended
28 Operating costs per tonne reconciliation for the six months ended June 30, 2019 (in US$’000, except for volume data) Curragh Buchanan Logan Greenbrier Other/ Corporate Total Total costs and expenses 564,658 157,770 134,457 39,703 18,156 914,744 Less: Selling, general and administrative expense 33
Slide 28: Operating costs per tonne reconciliation by geographic region
29 Operating costs per tonne reconciliation for the three months ended June 30, 2019 by geographic region (In US$’000, except for volume data) Australian operations U.S. Operations Other / Corporate Total Total costs and expenses 283,948 172,844 9,050 465,842 Less: Selling, general and administrativ
Slide 29: Group mining cost reconciliation for twelve months ended December 31, 2018
30 Group mining cost reconciliation for twelve months ended December 31, 2018 (In US$’000, except for volume data) Total Total costs and expenses 1,888,051 Less: Selling, general and administrative expense 29,901 Less: Depreciation, depletion and amortization 184,352 Total operating costs 1,673,798
Slide 30: Realised Pricing Reconciliation
31 Realised Pricing Reconciliation (in US$’000, except for volume data) For twelve months ended December 31, 2018 Total Revenues 1,980,504 Less: Other revenues 34,904 Total coal revenues 1,945,600 Less: Thermal coal revenues 126,494 Metallurgical coal revenues 1,819,106 Volume of Metallurgical coal
Slide 31: Adjusted Proforma EBITDA Reconciliation
32 Adjusted Proforma EBITDA Reconciliation December 31, 2018 Proforma Net Income 168,926 Add: Depreciation, depletion and amortization 184,351 Add: Interest expense 63,623 Add: Other foreign exchange losses 9,004 Add: Income tax expense 118,488 Add: Loss on debt extinguishment 54,180 Adjusted EBITDA
Slide 32: Mining costs per tonne reconciliation by geographic region
33 Mining costs per tonne reconciliation for the three months ended June 30, 2019 by geographic region (In US$’000, except for volume data) Australian operations U.S. Operations Other / Corporate Total Total costs and expenses 283,948 172,844 9,050 465,842 Less: Selling, general and administrative e
Slide 33: Contacts
Investor Presentation 34 Contacts Corporate: Ayten Saridas Group Chief Financial Officer t +61 437 565 833 Aidan Meka m +61 428 082 954 ameka@coronadoglobal.com.au EEwart@coronadoglobal.com.au
Slide 34: Contacts
Contacts Corporate: Ayten Saridas Group Chief Financial Officer t +61 437 565 833 Aidan Meka m +61 428 082 954 ameka@coronadoglobal.com.au Coronado @y Cieeiyirestes @
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