Coronado Global Resources Inc. · ASX:CRN
Coronado Global Resources — FY2020 Earnings Presentation
43 slides from Coronado Global Resources's earnings presentation, Feb 26, 2021
Slide 1: ASX Announcement: Investor Presentation – 2020 Full Year Results
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO U.S. PERSONS ASX Announcement For personal use only 26 February 2021 Investor Presentation – 2020 Full Year Results Coronado Global Resources Inc. (ASX: CRN) releases the following Investor Presentation for 2020 Full Year Results. This annou
Slide 2: 2020 Full Year Results Presentation
For personal use only 2020 Full Year Results Presentation GERRY SPINDLER Managing Director and CEO GERHARD ZIEMS Group Chief Financial Officer 26 February 2021 (All units in USD, unless otherwise noted)
Slide 3: FY20 Safety Performance
FY20 Safety Performance Our commitment to maintain a healthy and safe workplace is our number one priority. We safeguard our employees by providing appropriate training in best practice procedures, robust monitoring systems and safe working environments For personal use only Australian Operations (T
Slide 4: COVID-19 Response
COVID-19 Response Focused management response resulted in a minimal impact to Coronado’s employees and operations. Vaccination implementation across US operations helps to limited future impact For personal use only Response Impact Forward Look In managing the pandemic Coronado Coronado operations w
Slide 5: FY20 Highlights
For personal use only FY20 HIGHLIGHTS GERRY SPINDLER MANAGING DIRECTOR AND CEO HY19 Results Presentation 4 4
Slide 6: FY20 Highlights
FY20 Highlightsa For personal use only Financial performance – Reported FY20 Net Loss of $226.5 million, down $532.0 million (174.2%) compared to FY19 – Adjusted EBITDAb of $53.8 million, down 91.5% compared to FY19 of $634.2 million, impacted by lower sales volumes and reduced realised pricing – Gr
Slide 7: FY20 Highlights (Cont.)
FY20 Highlights (Cont.) For personal use only Corporate – Successfully executed two covenant waiver letters in May and August 2020 which waived the covenants testing under the Syndicated Facility Agreement (SFA) until 30 September 2021. – Capital expenditure $123.9 million in FY20 was down 32% on FY
Slide 8: Managing the Downturn
Managing the Downturn Legend: Implemented Initiatives New Initiatives Potential Future Initiatives COVID-19 Safety Protocols Restart US Operations 2020 Capex Review For personal use only Preventative measures Buchanan and Logan resumed 2020 capex reduced by 40% from implemented across all mines in o
Slide 9: Diversified Operations
Diversified Operations Coronado is positioned to benefit from the arbitrage opportunity in the seaborne metallurgical coal market For personal use only Coronado’s Marketing Flow CFR China Pricea High Vol A (FOB US)b ~88% ~47% From 2020 lows From 2020 lows Europe US metallurgical coals are selling ab
Slide 10: Reserves & Resources (Mt)
Reserves & Resources (Mt)a All operating assets have a minimum life greater than ~20 years For personal use only Reserves and Resources (Mt) as December 31, 2020 Reserves (Mt) Resources (Mt) 2550 964 1017 280 197 514 503 163 171 141 265 196 12 55 Curragh Buchanan Logan Greenbrier PSF Other Group Cur
Slide 11: Group Operational Performance
Group Operational Performance Reduced production as result of operational impacts at Australian and US assets For personal use only ROM Production (Mt) Export Ratio (%) FY19 FY20 30.8 25.2 24.3% 16.4 25.0% 14.7 6.9 5.8 6.6 4.5 0.9 0.3 75.7% Curragh Buchanan Logan Greenbrier Group 75.0% FY19 FY20 Exp
Slide 12: FY20 Financial Performance
For personal use only FY20 FINANCIAL PERFORMANCE GERHARD ZIEMS GROUP CHIEF FINANCIAL OFFICER
Slide 13: FY20 financial metrics
FY20 financial metrics Softer metallurgical coal market and lower saleable production impact profitability For personal use only FY20 FY19 Variance Sales volumes were impacted by idling of US Operations for two months in Production 17.0Mt 20.2Mt 3.2Mt response to weaker demand incurred during COVID-
Slide 14: Revenue performance
Revenue performance Soft market conditions and lower sales volume impact revenue generation For personal use only Group sales volumes were down 1.7 Mt due to lower production Revenue of $1,462 million, decreased 34.0% compared to FY19 stemming from the temporary suspension of mining activities at as
Slide 15: Realized pricing
Realized pricing Weak metallurgical coal markets impacted realized pricing in FY20 For personal use only Revenue generated from metallurgical coal sales was consistent Subdued economic activity during FY20 impacted the demand for with FY19 metallurgical coal resulting in Coronado’s average realized
Slide 16: FY20 EBITDA
FY20 EBITDA EBITDA impacted by lower sales volume and coal pricing, partially offset by lower costs and royalties For personal use only Cost of Coal Revenues improved marginally by 3.1% compared to FY20 sales volume was impacted During FY20 the Platts PLV HCC FY19. US operations reduced cost by oper
Slide 17: Segment performance
Segment performance Strong cost management by US operation anchor Coronado’s FY20 EBITDA performance For personal use only Australian Operations US Operations Logan Greenbrier EBITDA (US$m): Curragh 421.7 248.6 92.8 (8.6) FY19 FY20 FY19 FY20 EBITDA Margin (%): (0.9%) 19.1% Performance – EBITDA decre
Slide 18: Mining cost analysis on FOR basis
Mining cost analysis on FOR basis* Group FY20 costs impacted by lower volumes at Australian Operations, US assets benefitted from strong cost management For personal use only FY19 Mining Cost Curve (US$/t) FY20 Mining Cost Curve (US$/t) Group mining cost = $55.6/t Group mining cost = $51.8/t 44.5 64
Slide 19: Cash flows and Balance Sheet
Cash flows and Balance Sheet Sufficient liquidity supports Coronado during the downturn For personal use only Operating Cash Flow ($m) Financing Profile ($m) Liquidity ($m)a 300 222 268 46 0 Cash Available Facilities 46 27 1 3 118 172 24 7 Cash Operating Capex Dividends Net Borrowings Equity Other C
Slide 20: Operational Update
For personal use only OPERATIONAL UPDATE GERRY SPINDLER MANAGING DIRECTOR AND CEO 19
Slide 21: Sustainability
Sustainability Steel is a fundamental pillar of economic growth and metallurgical coal is essential to steel production For personal use only 2020 Sustainability Overview Environmental – We take our environmental obligations seriously and see good environmental management as a way to improve our bus
Slide 22: Australian Operational Review
Australian Operational Review Curragh operations annualize ~13.2Mt in H2 2020 representing a strong operating turnaround from H1 2020 For personal use only Operational Highlights Metallurgical Coal Production (Mt) – ROM Production declined by 10.3% to 14.7 Mt due to operational impacts during H1 202
Slide 23: US Operational Review
US Operational Review Strong cost focus offsets temporary idling of Buchanan & Logan in Q2 2020 For personal use only Operational Highlights Total Metallurgical Coal Production (Mt) – US operating performance was impacted by an idle period in April and 7.8 May 2020 to manage inventory as a result of
Slide 24: Metallurgical Coal Market
For personal use only METALLURGICAL COAL MARKET GERHARD ZIEMS GROUP CHIEF FINANCIAL OFFICER 23
Slide 25: Metallurgical coal market
Metallurgical coal market Spot pricing improved 40% from December 2020 lows of $101/t, stable pricing expected for 2021 For personal use only Seaborne Price (US$/t)a Key Market Points 300 Blast furnace restarts accelerated in Global steel producers continue to Q4 2020 with numerous steel mills ramp
Slide 26: Long Term Outlook for Metallurgical Coal
Long Term Outlook for Metallurgical Coal Demand for seaborne metallurgical coal is underpinned by the growth of India’s blast furnace production over the next decade For personal use only Metallurgical Coal Supply (Mt)a Metallurgical Coal Demand (Mt)a India’s seaborne metallurgical coal demand is se
Slide 27: 2021 Marketing
2021 Marketing Coronado’s operations are positioned to capitalize on the recovery in metallurgical coal markets For personal use only 2020 Metallurgical Pricing Breakdown 2020 Marketing Comments 13% 56% US Operations have entered Marginal increase in expected into a combination of fixed, export sale
Slide 28: Outlook
For personal use only OUTLOOK GERRY SPINDLER MANAGING DIRECTOR AND CEO
Slide 29: Disciplined Focus for FY21
Disciplined Focus for FY21 Coronado will have three core focuses in FY21 to reposition the business for growth For personal use only FY21 Key Initiatives Safety Production Financial Coronado will continue to implement – Improved contractor performance at – Continued focus on cost and capital safety
Slide 30: FY2021 Guidance
FY2021 Guidance For personal use only Guidance Range Saleable Production (Mt) 18.0 – 19.0 Mining Cost per Tonne Sold ($pt) 57.0 – 59.0 Capex ($m) 135 - 155 FY20 Results Presentation 29
Slide 31: Questions
For personal use only QUESTIONS 30
Slide 32: Disclaimer
Disclaimer The material contained in this presentation is intended to be general background information on Coronado Global Resources (Coronado) and its activities. For personal use only The information is supplied in summary form and is therefore not necessarily complete. It is not intended that it
Slide 33: Disclaimer
Disclaimer For personal use only Annual Statement of 2020 Coal Resources and Coal Reserves (the 2020 JORC Statement) 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 (JOR
Slide 34: Supplementary Information
For personal use only SUPPLEMENTARY INFORMATION
Slide 35: Reconciliation of Non-GAAP measures
Reconciliation of Non-GAAP measures For personal use only 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 recognized in accordance with U.S. GAAP. Non-GAAP fina
Slide 36: Reconciliation of Non-GAAP measures
Reconciliation of Non-GAAP measures For personal use only Consolidated Balance Sheet December 31, December 31, Consolidated Balance Sheet December 31, December 31, (US$ Thousands) 2020 2019 (US$ Thousands) 2020 2019 Assets Liabilities Current assets: Current liabilities: Cash and restricted cash 45,
Slide 37: Reconciliation of Non-GAAP measures
Reconciliation of Non-GAAP measures For personal use only Consolidated Income Statement December 31, 2020 December 31, 2019 (US$ Thousands) Coal revenues 1,289,010 1,705,442 Coal revenues from related parties 134,589 468,897 Other revenues 38,663 41,409 Total revenues 1,462,262 2,215,748 Cost of coa
Slide 38: Reconciliation of Non-GAAP measures
Reconciliation of Non-GAAP measures Consolidated Statement of Cash Flows December 31, December 31, Consolidated Statement of Cash Flows December 31, December 31, (US$ Thousands) 2020 2019 (US$ Thousands) 2020 2019 For personal use only Cash flows from operating activities: Cash Flows From Investing
Slide 39: Reconciliation of Non-GAAP measures
Reconciliation of Non-GAAP measures For personal use only For the year For the year For the year ended For the year ended Adjusted EBITDA reconciliation ended December ended December Mining Costs per tonne reconciliation December 31, December 31, 31, 2020 31, 2019 2020 2019 (US$ Thousands) (US$ Thou
Slide 40: Reconciliation of Non-GAAP measures
Reconciliation of Non-GAAP measures For personal use only Realized Pricing reconciliation For the year ended December 31, 2020 Australia United States Consolidated (US$ Thousands, except for volume data) Total Revenues 976,369 485,893 1,462,262 Less: Other revenues 34,143 4,520 38,663 Total coal rev
Slide 41: Reconciliation of Non-GAAP measures
Reconciliation of Non-GAAP measures For personal use only Mining Costs per tonne reconciliation For the year ended December 31, 2020 Australia United States Other / Corporate Total (US$ Thousands, except for volume data) Total costs and expenses 1,082,640 496,462 31,111 1,610,213 Less: Selling, gene
Slide 42: Reconciliation of Non-GAAP measures
Reconciliation of Non-GAAP measures For personal use only Mining Costs per tonne reconciliation For the year ended December 31, 2019 Australia United States Other / Corporate Total (US$ Thousands, except for volume data) Total costs and expenses 1,132,790 590,131 36,024 1,758,945 Less: Selling, gene
Slide 43: Contacts
CONTACTS For personal use only Investors: Investors: Media: Matt Sullivan Aidan Meka Brett Clegg P: +61 412 157 276 P: +61 428 082 954 P: +61 487 436 985 E: msullivan@coronadoglobal.com.au E: ameka@coronadoglobal.com.au 42
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