Coronado Global Resources Inc. · ASX:CRN
Coronado Global Resources — FY2022 Earnings Presentation
45 slides from Coronado Global Resources's earnings presentation, Feb 21, 2023
Slide 1: 2022 Full Year Results Presentation
2022 Full Year Results Presentation Gerry Spindler Managing Director and CEO Gerhard Ziems Group Chief Financial Officer 22 February 2023 (All units in USD and metric tonnes, unless otherwise stated)
Slide 2: Important Notices and Disclaimer
Important Notices and Disclaimer FY22 Results Presentation 2 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.
Slide 3: CEO Address
FY22 Results Presentation 3 CEO Address Gerry Spindler Managing Director & CEO
Slide 4: A leading international producer of high-quality metallurgical coal
FY22 Results Presentation 4 A leading international producer of high-quality metallurgical coal, an essential element in the production of steel.
Slide 5: Key global infrastructure projects require steel
FY22 Results Presentation 5 75,293,000 kg steel 58,000,000 kg met coal Key global infrastructure projects for growing populations require steel. 54,430,000 kg steel 42,000,000 kg met coal Steel is used in buildings, bridges, roads, rail systems, houses, dams, and everyday white goods, among other us
Slide 6: Metallurgical Coal has a long-term future
Metallurgical Coal has a long-term future FY22 Results Presentation 6 Steel is critical to the development of a low carbon future; Demand outlook remains firm. EAF / other steel production methods are expected to grow over time, but BOF production is forecast to remain the primary method in 2050, un
Slide 7: Coronado Reserves and Resources
FY22 Results Presentation 7 Coronado Reserves and Resources Coronado maintains long-life operating assets >20 years; Met Coal resources >2 billion tonnes. Notes: Charts reflect reserves and resources as at 31 December 2022 in million metric tonnes (Mmt). Rounding has been applied. Coal resources are
Slide 8: Safety is the most important aspect of our operations
FY22 Results Presentation 8 Safety is the most important aspect of our operations and our highest priority
Slide 9: Health and Safety
FY22 Results Presentation 9 0 2 4 6 8 10 Australian Operations (TRIFR) Industry average (TRIFR) Health and Safety Safety is Coronado’s highest priority Notes: Total Recordable Injury Frequency Rate (TRIFR), is the number of fatalities, lost time injuries, cases or substitute work and other injuries
Slide 10: FY 2022 Highlights
FY 2022 Highlights FY22 Results Presentation 10
Slide 11: FY 2022 Highlights
FY22 Results Presentation 11 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 $700 million; total shareholder returns exceed 100% Solid operating pe
Slide 12: Financial Performance
Financial Performance Gerhard Ziems Group Chief Financial Officer FY22 Results Presentation 12
Slide 13: FY 2022 Summary Financial Results
FY22 Results Presentation 13 FY 2022 Summary Financial Results Notes: Rounding has been applied to this table as appropriate. Mt = Million metric tonnes. Blue and grey coloured references in the variance column indicate positive and negative variance movements respectively and arrow direction indica
Slide 14: FY 2022 Cash Flows and Liquidity
FY22 Results Presentation 14 FY 2022 Cash Flows and Liquidity ($M) Notes: Rounding has been applied as appropriate. Capex refers to cash capital expenditure and is different to headline capex which includes accruals. Free cash flow is defined as net cash from operating activities less capital expend
Slide 15: Share Price Performance / Dividend Yield
FY22 Results Presentation 15 Share Price Performance / Dividend Yield Coronado share price / dividend payments ($700 million) have substantially outperformed the market Notes: (1) Source: S&P Capital IQ for the period 31 Dec 2021 – 31 Dec 2022. Share price performance is not dividend adjusted. (2) C
Slide 16: Biannual fully franked fixed dividend declared
Coronado declares its biannual fully franked fixed dividend of $8.4 million (USD 0.5 cents/CDI) FY22 Results Presentation 16 The declaration of the biannual fully franked fixed dividend does not require a matching Senior Secured Notes purchase offer. Coronado continues to pursue organic and in-organ
Slide 17: Capital Management Strategy
Coronado’s Capital Management Strategy Supported By Strong Fundamentals FY22 Results Presentation 17 1. Strong Balance Sheet 2. Shareholder Returns 3. Organic Growth 4. In-Organic Growth Maintaining a strong balance sheet with enhanced liquidity and prudent debt levels. Fundamental strategy is to re
Slide 18: FY 2023 Production, Cost and Capex Guidance
FY 2023 Production, Cost and Capex Guidance FY22 Results Presentation 18 Notes: Guidance is based on metric tonnes and in US dollars as appropriate. Saleable production levels are expected to be higher in FY23 with improved mining conditions at Curragh with an assumption of less wet weather than FY2
Slide 19: Metallurgical Coal Markets
Metallurgical Coal Markets FY22 Results Presentation 19
Slide 20: Record 2022 Met Coal Price Realisations
FY22 Results Presentation 20 Record 2022 Met Coal Price Realisations Met Coal index is rebounding strongly; Thermal Coal index falling. Notes: (1) Source: S&P Global Platts pricing 31 Dec 2019 to 14 Feb 2023; PLV HCC FOB AUS = Premium Low-Vol FOB Australian Hard Coking index, LV HCC FOB USEC = Low-V
Slide 21: Coronado's Unique Diversification Advantage
FY22 Results Presentation 21 Coronado’s Unique Diversification Advantage Coronado supports Met Coal customers on five continents Notes: (1) Australian FY 2022 export Met coal sales volume mix. (2) Hard Coking Coal (HCC), Semi Coking Coals (SCC), Pulverized Coal Injection (PCI). (3) U.S. FY 2022 Met
Slide 22: Steel Demand Outlook Remains Firm
FY22 Results Presentation 22 Steel Demand Outlook Remains Firm India steel production anticipated to grow year-on-year due to urbanisation and industrialisation Notes: (1) Data source Wood Mackenzie January 2023 GDP Forecasts. (2) Data sourced from Wood Mackenzie July 2022 Coal Market Service Metall
Slide 23: Strong Metallurgical Coal Demand Through 2050
FY22 Results Presentation 23 Strong Metallurgical Coal Demand Through 2050 Notes: Data sourced from Wood Mackenzie July 2022 Coal Market Service Metallurgical Trade Long-term Outlook; Mmt = Million metric tonnes. Rounding has been applied. Growth for seaborne Met Coal is underpinned by Indian demand
Slide 24: Strategy / Growth Plans
FY22 Results Presentation 24 Gerry Spindler Strategy / Growth Plans
Slide 25: Strategic priorities: safety and production
Coronado will drive a strong health and safety culture: • Reduce recordable (TRIFR / TRIR) and high-potential incident (HPI) rates across the business. • Enhance focus on training and supervisory development programs. • Increase incident reduction initiatives including enhanced hazard recognition, i
Slide 26: Growth – U.S. Operations
FY22 Results Presentation 26 Growth – U.S. Operations Production plans at our high-quality U.S. operations projected to be 7 Mmt by FY25 Notes: 2023 – 2025 production projections are estimates. Mmt = Million metric tonnes. Please refer to Important Notices & Disclaimer discussing forward-looking sta
Slide 27: Growth – U.S. Operations: Buchanan capital works
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. Inst
Slide 28: Mon Valley Development Project
FY22 Results Presentation 28 Mon Valley Development Project Notes: Refer to market announcement titled FY2022 Coal Resources and Coal Reserves for Coronado Global Resources, Inc., released to the ASX on 22 February 2022, outlining reserve and resource information in tabular form and in accordance wi
Slide 29: Growth - Australian Operations
FY22 Results Presentation 29 Growth - Australian Operations FY22 impacted by extreme wet weather; ‘One Curragh Plan’ will target 13.5 Mmt of production by FY25 Notes: 2023 – 2025 production projections are estimates. Mmt = Million metric tonnes. Please refer to Important Notices & Disclaimer discuss
Slide 30: Growth - Australian Operations: Curragh initiatives
FY22 Results Presentation 30 Growth - Australian Operations Notes: 2023 – 2025 production projections are estimates. Please refer to Important Notices & Disclaimer discussing forward-looking statements on slide 2. FY 2022 Initiatives Complete: Improved productivity following investments in dragline
Slide 31: Curragh North Underground Project
FY22 Results Presentation 31 Curragh North Underground Project 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 highwall to gain direct acces
Slide 32: Leadership Succession
FY22 Results Presentation 32 Leadership Succession
Slide 33: Coronado Leadership Succession Effective May 2023
FY22 Results Presentation 33 Coronado Leadership Succession Effective May 2023
Slide 34: Environmental, Social and Governance (ESG)
34 Environmental, Social and Governance (ESG) FY22 Results Presentation
Slide 35: Sustainability Actions and Commitments
FY22 Results Presentation 35 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 contrac
Slide 36: Significant Rehabilitation Works Completed in FY 2022
FY22 Results Presentation 36 Significant Rehabilitation Works Completed in FY 2022 223ha completed across all operations (Curragh 171ha, Logan 36ha, Greenbrier 13ha, Buchanan 3ha) Curragh Greenbrier
Slide 37: Buchanan Ventilation Air Methane (VAM) Abatement Project
Buchanan Ventilation Air Methane (VAM) Abatement Project 37 Project underpins Coronado’s 30% emissions reduction target by 2030 Buchanan mine VAM project officially commenced on 27 July 2022. Project utilises the latest technology (RTO – Reductive Thermal Oxidation) to convert fugitive methane gas e
Slide 38: 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 develo
Slide 39: Coronado Sustainability Report
Coronado Sustainability Report 2021 https://coronadoglobal.com/sustainability/ 2022 Sustainability Report available May 2023
Slide 40: Questions
Questions FY22 Results Presentation 40
Slide 41: Supplementary Information
41 Supplementary Information FY22 Results Presentation
Slide 42: Reconciliation of non-GAAP measures
Reconciliation of non-GAAP measures Management uses a variety of financial and operating metrics to analyze performance. These metrics are significant in assessing operating results and profitability. These financial and operating metrics include: (i) safety and environmental statistics; (ii) Adjust
Slide 43: Reconciliation of Non-GAAP measures: mining costs per tonne
FY22 Results Presentation 43 Reconciliation of Non-GAAP measures Total consolidated mining costs per tonne reconciliation (US$ thousands, except for volume data) For the 12 months ended 31 December 2022 For the 12 months ended 31 December 2021 Total costs and expenses 2,525,271 1,846,107 Less: Selli
Slide 44: Reconciliation of Non-GAAP measures: Adjusted EBITDA
FY22 Results Presentation 44 Reconciliation of Non-GAAP measures Adjusted EBITDA reconciliation (US$ thousands) For the 12 months ended 31 December 2022 For the 12 months ended 31 December 2021 Net income 771,703 189,423 Add: Depreciation, depletion and amortization 167,046 177,875 Add: Interest exp
Slide 45: Contacts
Investors Andrew Mooney Vice President Investor Relations & Communications +61 458 666 639 amooney@coronadoglobal.com investors@coronadoglobal.com Registered Office Coronado Global Resources Inc. Level 33, Central Plaza One 345 Queen Street Brisbane, QLD, Australia, 4000 GPO Box 51, Brisbane QLD, Au
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