Coronado Global Resources Inc. · ASX:CRN
Coronado Global Resources — FY2020 Earnings Presentation
42 slides from Coronado Global Resources's earnings presentation, Feb 25, 2021
Slide 1: 2020 Full Year Results Presentation
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 2: 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 Australian Operations (TRIFR)aUS Operations (T
Slide 3: 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 Response In managing the pandemic Coronado implemented the following initiatives: Improved sanitization ac
Slide 4: FY20 Highlights
HY19 Results Presentation4 FY20 HIGHLIGHTS GERRY SPINDLER MANAGING DIRECTOR AND CEO 4
Slide 5: FY20 Highlights
FY20 Highlightsa 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 Group mining cost of $55.6 per
Slide 6: FY20 Highlights (Cont.)
FY20 Highlights (Cont.) 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 FY19 and 40% below original
Slide 7: Legend: Implemented Initiatives New Initiatives Potential Future Initiatives
Legend: Implemented Initiatives New Initiatives Potential Future Initiatives
Slide 8: Diversified Operations
Diversified Operations Coronado is positioned to benefit from the arbitrage opportunity in the seaborne metallurgical coal market Coronado’s Marketing Flow CFR China Pricea ~88% From 2020 lows High Vol A (FOB US)b ~47% From 2020 lows Europe China Japan US metallurgical coals are selling above $200 p
Slide 9: Reserves & Resources (Mt)
Reserves & Resources (Mt)a All operating assets have a minimum life greater than ~20 years Reserves and Resources (Mt) as December 31, 2020 Reserves (Mt) 964 Resources (Mt) 2550 1017 280 163141 12 197171 196265 514503 55 CurraghBuchananLoganGreenbrierPSFOtherGroup CurraghBuchananLoganGreenbrierPSFOt
Slide 10: Group Operational Performance
Group Operational Performance Reduced production as result of operational impacts at Australian and US assets ROM Production (Mt) Export Ratio (%) 16.4 14.7 6.9 5.8 6.6 4.5 0.9 0.3 30.8 25.2 FY19FY20 24.3% 75.7% 25.0% CurraghBuchananLoganGreenbrierGroup FY19FY20 ExportDomestic 75.0% Saleable Metallu
Slide 11: FY20 Financial Performance
FY20 FINANCIAL PERFORMANCE GERHARD ZIEMS GROUP CHIEF FINANCIAL OFFICER
Slide 12: FY20 financial metrics
FY20 financial metrics Softer metallurgical coal market and lower saleable production impact profitability FY20FY19Variance Production 17.0Mt 20.2Mt 3.2Mt Sales Volumes 18.2Mt 19.9Mt 1.7Mt Revenue $1,462.3m $2,215.8m $753.5m EBITDA $53.8m $634.2m $580.4m Net Income (Statutory) ($226.5m) $305.5m $532
Slide 13: Revenue performance
Revenue performance Soft market conditions and lower sales volume impact revenue generation Group sales volumes were down 1.7 Mt due to lower production stemming from the temporary suspension of mining activities at Curragh mine and idling of US operations in April and May 2020 Revenue of $1,462 mil
Slide 14: Realized pricing
Realized pricing Weak metallurgical coal markets impacted realized pricing in FY20 Revenue generated from metallurgical coal sales was consistent with FY19 Subdued economic activity during FY20 impacted the demand for metallurgical coal resulting in Coronado’s average realized metallurgical price de
Slide 15: FY20 EBITDA
FY20 EBITDA EBITDA impacted by lower sales volume and coal pricing, partially offset by lower costs and royalties FY20 sales volume was impacted by operational impacts at both Australian and US operations resulting in 1.7Mt of lower sales compared to FY19 634 During FY20 the Platts PLV HCC (FOB Aust
Slide 16: Segment performance
Segment performance Strong cost management by US operation anchor Coronado’s FY20 EBITDA performance Australian OperationsUS Operations EBITDA (US$m): 248.6 (8.6) FY19FY20 92.8 FY19FY20 EBITDA Margin (%): (0.9%)19.1% Performance drivers: EBITDA decreased by $430.2 million to a loss of $8.6 million C
Slide 17: Mining cost analysis on FOR basis
Mining cost analysis on FOR basis* Group FY20 costs impacted by lower volumes at Australian Operations, US assets benefitted from strong cost management FY19 Mining Cost Curve (US$/t)FY20 Mining Cost Curve (US$/t) Group mining cost = $51.8/t Group mining cost = $55.6/t 64.9 44.5 61.4 52.9 Total cost
Slide 18: Cash flows and Balance Sheet
Cash flows and Balance Sheet Sufficient liquidity supports Coronado during the downturn Operating Cash Flow ($m) Financing Profile ($m) Liquidity ($m)a 222 268 46 CashAvailable Facilities 46 271 3 118 172 Cash 31Dec19 Operating Cashflow Capex 24 Dividends 7 Net Borrowings Equity Raising OtherCash 31
Slide 19: Operational Update
OPERATIONAL UPDATE GERRY SPINDLER MANAGING DIRECTOR AND CEO 19
Slide 20: Sustainability
Sustainability Steel is a fundamental pillar of economic growth and metallurgical coal is essential to steel production 2020 Sustainability Overview Environmental We take our environmental obligations seriously and see good environmental management as a way to improve our business performance and en
Slide 21: Australian Operational Review
Australian Operational Review Curragh operations annualize ~13.2Mt in H2 2020 representing a strong operating turnaround from H1 2020 Operational HighlightsMetallurgical Coal Production (Mt) ROM Production declined by 10.3% to 14.7 Mt due to operational impacts during H1 2020, some lost tonnage was
Slide 22: US Operational Review
US Operational Review Strong cost focus offsets temporary idling of Buchanan & Logan in Q2 2020 Operational HighlightsTotal Metallurgical Coal Production (Mt) US operating performance was impacted by an idle period in April and May 2020 to manage inventory as a result of market constraints caused by
Slide 23: Metallurgical Coal Market
METALLURGICAL COAL MARKET GERHARD ZIEMS GROUP CHIEF FINANCIAL OFFICER 23
Slide 24: Metallurgical coal market
Metallurgical coal market Spot pricing improved 40% from December 2020 lows of $101/t, stable pricing expected for 2021 Seaborne Price (US$/t)aKey Market Points 300 250 Global steel producers continue to ramp up production underpinned by the automotive and construction sectors Blast furnace restarts
Slide 25: 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 Metallurgical Coal Supply (Mt)a +13% 340 19 300 Metallurgical Coal Demand (Mt)a 340 300 India’s seaborne metallurgical coal demand is
Slide 26: 2021 Marketing
2021 Marketing Coronado’s operations are positioned to capitalize on the recovery in metallurgical coal markets 2020 Metallurgical Pricing Breakdown2020 Marketing Comments 13% 56% Marginal increase in expected export sales in FY21 from US US Operations have entered into a combination of fixed, 86%12
Slide 27: Outlook
OUTLOOK GERRY SPINDLER MANAGING DIRECTOR AND CEO
Slide 28: Disciplined Focus for FY21
Disciplined Focus for FY21 Coronado will have three core focuses in FY21 to reposition the business for growth FY21 Key Initiatives Safety Coronado will continue to implement safety initiatives to reduce injuries which include: higher level of investigation of recordable injuries increase inspection
Slide 29: FY2021 Guidance
FY2021 Guidance FY20 Results Presentation 29
Slide 30: Questions
QUESTIONS Coronado STEEL STARTS HERE
Slide 31: Disclaimer
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 be relied upon as advi
Slide 32: Disclaimer
Disclaimer 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 (JORC Code) and are measur
Slide 33: Supplementary Information
SUPPLEMENTARY INFORMATION Coronado ‘STEEL STARTS HERE
Slide 34: Reconciliation of Non-GAAP measures
Reconciliation of Non-GAAP measures 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 financial measures are use
Slide 35: Reconciliation of Non-GAAP measures
Reconciliation of Non-GAAP measures Consolidated Balance Sheet (US$ Thousands) December 31, 2020 December 31, 2019 Liabilities Current liabilities: Accounts payable 74,651 64,392 Accrued expenses and other current liabilities 234,526 238,788 Income tax payable - 29,760 Asset retirement obligations 6
Slide 36: Reconciliation of Non-GAAP measures
Reconciliation of Non-GAAP measures FY20 Results Presentation 36
Slide 37: Reconciliation of Non-GAAP measures
Reconciliation of Non-GAAP measures Consolidated Statement of Cash Flows December 31, December 31, (US$ Thousands) 2020 2019 Cash flows from operating activities: Net (loss) income (226,537) 305,477 Adjustments to reconcile net income to cash and restricted cash provided by operating activities: Dep
Slide 38: Reconciliation of Non-GAAP measures
Reconciliation of Non-GAAP measures Adjusted EBITDA reconciliation For the year ended December 31, 2020 For the year ended December 31, 2019 (US$ Thousands) Net (loss) Income (226,537) 305,477 Add: Depreciation, depletion and amortization 191,189 176,461 Add: Interest expense (net of income) 50,585
Slide 39: Reconciliation of Non-GAAP measures
Reconciliation of Non-GAAP measures FY20 Results Presentation 39
Slide 40: Reconciliation of Non-GAAP measures
Reconciliation of Non-GAAP measures FY20 Results Presentation 40
Slide 41: Reconciliation of Non-GAAP measures
Reconciliation of Non-GAAP measures FY20 Results Presentation 41
Slide 42: Contacts
CONTACTS Investors: Matt Sullivan P: +61 412 157 276 E: msullivan@coronadoglobal.com.au Investors: Aidan Meka P: +61 428 082 954 E: ameka@coronadoglobal.com.au Media: Brett Clegg P: +61 487 436 985 42
Coronado Global Resources — FY2020 Earnings Presentation on 6ix