Coronado Global Resources Inc. · ASX:CRN
Coronado Global Resources — H1 2024 Earnings Presentation
36 slides from Coronado Global Resources's earnings presentation, Aug 6, 2024
Slide 1: Half Year Results and Investor Presentation
ASX Announcement 6 August 2024 Half Year Results and Investor Presentation Coronado Global Resources Inc. (ASX: CRN) releases the attached: • 2024 Half Year Results Announcement; and • 2024 Half Year Results Investor Presentation This announcement was authorised to be given to ASX by the Board of Co
Slide 2: 2024 Half Year Results
ASX ANNOUNCEMENT - 2024 HALF YEAR RESULTS 6 August 2024 Completion of operational improvements at Curragh has realised higher production, higher sales, lower costs and improved margins in the second quarter of 2024. Improved results expected to continue for the remainder of the year: ✓ Pre-strip was
Slide 3: Comments from Managing Director and CEO
COMMENTS FROM MANAGING DIRECTOR AND CEO, DOUGLAS THOMPSON “In the first half of FY2024, the substantial investments we have made over the past 18 months to optimise and expand our mining operations in Australia and the U.S. began to deliver tangible and promising results. “The material improvement i
Slide 4: Operations
tonne represent a 27.5% decrease quarter-on-quarter, and at Curragh specifically, were at the lowest level since Q1 2022. The lower costs quarter-on-quarter are attributable to the demobilisation of four fleets from Curragh at the end of March combined with higher Sales volumes. The Company expects
Slide 5: Organic Growth Plans and Emissions Reduction
ORGANIC GROWTH PLANS AND EMISSIONS REDUCTION In HY24, we have continued to invest in our organic growth and emissions reduction projects, that we believe will ultimately underscore higher sustained returns to Shareholders over time. Our growth projects at both Buchanan and Curragh (Mammoth Undergrou
Slide 6: Metallurgical Coal / Steel Market Outlook
METALLURGICAL COAL / STEEL MARKET OUTLOOK 1 Undoubtedly, the long-term growth story for Met Coal is the projected future demand from India. India remains one of Coronado’s largest export destinations and is forecasting GDP growth rates of approx. 6% year-on-year for the next 20 years. Long-term grow
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, and our plans, objectives and expectations for our business, operations, financial
Slide 8: Mining and Operating Costs per Tonne Reconciliation
MINING AND OPERATING COSTS PER TONNE RECONCILIATION For the three months ended 30 June 2024 United Other / Total (In US$’000, except for volume data) Australia States Corporate Consolidated Total costs and expenses 390,576 207,737 8,919 607,232 Less: Selling, general and administrative expense (23)
Slide 9: Available Liquidity Reconciliation Net (Debt) / Cash Reconciliation
For the six months ended 30 June 2023 United Other / Total (In US$’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 - - (17,755) (17,755) Less: Depreciation, depletion and
Slide 10: Realised Pricing Reconciliation Adjusted EBITDA Reconciliation
REALISED PRICING RECONCILIATION For the six months ended 30 June 2024 (In US$’000, except for volume data) Australia United States Consolidated Total Revenues 894,596 447,381 1,341,977 Less: Other revenues (17,502) (27,103) (44,605) Total coal revenues 877,094 420,278 1,297,372 Less: Thermal coal re
Slide 11: Half Year 2024 Results Presentation
Douglas Thompson Gerhard Ziems Half Year 2024 Results Presentation Managing Director & CEO 6 August 2024 Group Chief Financial Officer All units in U.S. dollars and metric tonnes, unless otherwise stated
Slide 12: Important Notices and Disclaimer
Important Notices and Disclaimer The material contained in this presentation is intended to be general background information on Coronado Global Resources (Coronado) and its activities. The information is supplied in summary form and is therefore not necessarily complete. It is not intended that it
Slide 13: HY 2024 Highlights
HY 2024 Highlights Douglas Thompson Managing Director & CEO CRN – HY24 Results Presentation 3
Slide 14: HY 2024 Highlights
HY 2024 Highlights Completion of operational improvements at Curragh has realised Higher Production, Higher Sales, Lower Costs and Improved Margins from 2nd quarter Material Mammoth Progressing improvement Underground emission Group Safety in performance Prudent and Buchanan reduction Total in Q2 vs
Slide 15: Health and Safety
Health and Safety Our People, Our Highest Priority Australian Operations (TRIFR) 10 Australian Operations Industry Average 8 6 -84% 4 2 0 Jan-21 Apr-21 Jul-21 Oct-21 Jan-22 Apr-22 Jul-22 Oct-22 Jan-23 Apr-23 Jul-23 Oct-23 Jan-24 Apr-24 Jul-24 US Operations (TRIR) 4 U.S. Operations Industry Average 3
Slide 16: Material Improvements in Q2 vs Q1 2024
Material Improvements in Q2 vs Q1 2024 Actions implemented in our business are realising tangible results ROM Coal Production (Mt) Saleable Production (Mt) Average Mining Costs / tonne ($) Sales Volumes (Mt) +24% +21% +8% 7.4 4.1 -27% 4.1 125.6 3.7 6.0 3.4 91.1 Q1 Q2 Q1 Q2 Q1 Q2 Q1 Q2 Notes: Quarter
Slide 17: Coronado Retains FY 2024 Guidance
Coronado Retains FY 2024 Guidance Focus on H2 2024 delivery; Asset optimisation of our existing assets and continued investment in highly accretive organic growth projects are our key strategic focus areas Metric Actuals Guidance (metric tonnes / U.S. dollars) HY 2024 FY 2024 Coronado Strategic Prio
Slide 18: HY 2024 Financial Performance
HY 2024 Financial Performance Gerhard Ziems Group Chief Financial Officer CRN - HY24 CRN Results - HY24 Presentation Results Presentation 88
Slide 19: HY 2024 Summary Financial Results
HY 2024 Summary Financial Results Strong Balance Sheet maintained; High closing working capital balance as at 30 June 2024 95.7% of Total Group Revenues Total Group Revenues $1.3 billion from Met Coal sales Group Realised Price Per Tonne of Available Liquidity $414 million Met Coal Sold $199.3/t as
Slide 20: Cash Flow Movement and Liquidity ($M)
Cash Flow Movement and Liquidity ($M) Growth projects funded from operational cashflows; Strong balance sheet retained and Available Liquidity of $414 million Coronado generated $63 million in Operating Cash Flows (excl. stamp duty HY 2024 Operating Cash Flow payment in Q1). 135 71 Continued high ro
Slide 21: Coronado's Capital Management Strategy
Coronado’s Capital Management Strategy 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 expenditure projects and expansion to
Slide 22: HY 2024 Fixed Biannual Dividend
HY 2024 Fixed Biannual Dividend Coronado declares its biannual fully franked fixed dividend of $8.4 million (US 0.5 cents/CDI) Key Dates 6 August 2024 28 August 2024 18 September 2024 Declaration of $8.4 million. Dividend record date Dividend payment date (US 0.5 cents/CDI) fully franked dividend pe
Slide 23: Metallurgical Coal & Steel Markets
Metallurgical Coal & Steel Markets CRN - HY24 Results Presentation 13
Slide 24: Met Coal Prices Well Above Long-Term Average Price
Met Coal prices well above long-term average price LV PCI relativities have strengthened; Price rebounds expected from September 2024 Metallurgical Coal Price Indices (U$/t) (1) In HY24, Average Australian Met Coal index 700 prices fell 6% compared to same period in PLV HCC FOB AUS prior year. LV
Slide 25: Increasing Met Coal Demand Through 2050
Increasing Met Coal Demand Through 2050 Met Coal demand underpinned by Blast Furnace steel Global export Met Coal demand is forecast to production in India; Primary source growth Australia. grow to 576Mt by 2050, led primarily by blast furnace steel production in India. Global Export Met Coal Supply
Slide 26: Organic Growth Investment Plans
Organic Growth Investment Plans Douglas Thompson Managing Director & CEO CRN – HY24 Results Presentation 16
Slide 27: Growth Projects Update
Growth Projects Update Mammoth Underground and Buchanan Expansion projects expected to deliver 2.5 – 3.0 Mtpa of incremental Met Coal to seaborne markets once at full capacity Mammoth Underground Buchanan Expansion Project Summary: Project Summary: 41 Mt ROM reserves; Underground Bord and Pillar m
Slide 28: Emissions Reduction
Emissions Reduction New VAM unit installed at Vent Shaft 18; Gas converted truck trial at Curragh; Rehabilitation works completed and continue as planned. Fully commissioned 2nd VAM unit at Buchanan Completed rehabilitation works at Greenbrier CRN – HY24 Results Presentation 18
Slide 29: Coronado Investment Credentials
Coronado Investment Credentials CRN - HY24 Results Presentation 19
Slide 30: Value Enhancement – a Well Advanced Executable Plan
Value Enhancement – a well advanced executable plan Higher Tonnages / Lower Costs / Lower Capex / Higher Margins Estimated Saleable Production (Mt) Estimated Mining Costs / tonne Estimated Capital Expenditure ➢ Higher Margins forecast from higher Met Coal sales 107.6 volumes and lower costs against
Slide 31: Substantial Future Value Uplift – Curragh
Substantial Future Value Uplift – Curragh (1) Estimated EBITDA uplift of ~$290 million(3) per year upon expiration of existing Stanwell coal supply arrangement (CSA) and rebate expected from early 2027 Curragh Valuation Uplift: ➢ Estimated cost benefit of $120 million or ~$7/t ($12/t at the Curragh
Slide 32: Coronado Investment Proposition Shareholder Value
Coronado Investment Proposition Shareholder Value Critical Commodity Operational Excellence Capital Management • Met Coal is a critical material found • Completed significant investment in • Strong Balance Sheet with in every renewable energy transition waste movement deficit – Curragh embedded Capi
Slide 33: Questions
Questions CRNCRN - HY24 Results - HY24 Presentation Results Presentation 2323
Slide 34: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP measures This presentation includes a discussion of results of operations and references to and analysis of certain non-GAAP measures (as described below) which are financial measures not recognised in accordance with U.S. GAAP. Non-GAAP financial measures are used by the
Slide 35: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP measures Total consolidated mining costs per tonne For the six For the three For the three For the year Available Liquidity reconciliation reconciliation (US$ thousands, except for volume months ended months ended months ended ended 30 June 2024 (US$ thousands) data) 30 Ju
Slide 36: Contacts
Contacts Investors Registered Office Media Andrew Mooney Coronado Global Resources Inc. Helen McCombie Vice President Investor Morrow Sodali Relations & Communications Level 33, Central Plaza One 345 Queen Street +61 411 756 248 +61 458 666 639 Brisbane, QLD, Australia, 4000 helen.mccombie@sodali.co
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