Coronado Global Resources Inc. · ASX:CRN
Coronado Global Resources — FY2023 Earnings Presentation
38 slides from Coronado Global Resources's earnings presentation, Feb 20, 2024
Slide 1: 2023 Full Year Results Presentation
2023 Full Year Results Presentation Douglas Thompson Managing Director & CEO Gerhard Ziems Group Chief Financial Officer 20 February 2024 All units in U.S. dollars and metric tonnes, unless otherwise stated
Slide 2: Important Notices and Disclaimer
CRN - FY23 Results Presentation 2 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 com
Slide 3: 2023 Highlights
2023 Highlights Douglas Thompson Managing Director & CEO CRN – FY23 Results Presentation 3
Slide 4: 2023 Highlights
Solid operational performance delivering record waste movement and higher ROM coal production 25.4 Mt Prudent capital management focused on investment - Net Cash & Strong Balance Sheet Group Revenue of $2.9 billion and Available Liquidity $489 million Progressing emission reduction projects – Second
Slide 5: Passionately committed to the health & safety of our people
Passionately committed to the health & safety of our people CRN - FY23 Results Presentation 5
Slide 6: Health and Safety Our People, Our Highest Priority
CRN - FY23 Results Presentation 6 Health and Safety Our People, Our Highest Priority Notes: Total Recordable Injury Frequency Rate (TRIFR), is the number of fatalities, lost time injuries, cases or substitute work and other injuries requiring medical treatment per million-man hours worked on a rolli
Slide 7: Coronado Investment Proposition
Critical Commodity Operational Excellence Capital Management • Completed significant investment in waste movement deficit – Curragh Complex • Executable Organic Growth Plan (Curragh UG / Buchanan): target of 20.5Mt by 2025 • Strong Culture and Capability to maximise performance; Strategic / Experien
Slide 8: CRN Value Enhancement – a well advanced executable plan
CRN – FY23 Results Presentation 8 Value Enhancement – a well advanced executable plan Higher Tonnages / Lower Costs / Lower Capex / Higher Margins 15.8 FY23 FY24 Est FY25 Est FY26 Est Notes: 2024 – 2026 projections are estimates and should not be taken as guidance. Mmt = Million metric tonnes. Pleas
Slide 9: Capital Management & Financial Performance
CRN - FY23 Results Presentation 9 Capital Management & Financial Performance Gerhard Ziems Group Chief Financial Officer CRN - FY23 Results Presentation 9
Slide 10: Coronado's Capital Management Strategy
CRN - FY23 Results Presentation 10 Coronado’s Capital Management Strategy CRN - FY23 Results Presentation 10 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
Slide 11: FY 2023 Summary Financial Results
CRN - FY23 Results Presentation 11 Strong Balance Sheet maintained; High closing working capital balance as of 31 December 2023 FY 2023 Summary Financial Results CRN - FY23 Results Presentation 11 Total Group Revenues $2.9 billion (2nd highest in history) Group Realised Price Per Tonne of Met Coal S
Slide 12: Cash Flow Movement and Liquidity
CRN - FY23 Results Presentation 12 Cash Flow Movement and Liquidity ($M) Coronado generated $268 million in Operating Cash Flows and $23 million in Free Cash Flow in FY 2023. Corporate tax ($147 million), royalties (AUS $295 million; U.S. $51 million), and Stanwell rebate ($137 million) payments con
Slide 13: FY 2023 Fixed Biannual Dividend
CRN - FY23 Results Presentation 13 Coronado declares its biannual fully franked fixed dividend of $8.4 million (US 0.5 cents/CDI) 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-
Slide 14: Metallurgical Coal & Steel Markets
Metallurgical Coal & Steel Markets CRN - FY23 Results Presentation 14
Slide 15: Metallurgical Coal has a Long-Term Future
CRN - FY23 Results Presentation 15 Geothermal Hydro Nuclear Bioenergy Electricity networks Concentrated solar Hydrogen Wind power Solar photovoltaic Electric vehicles Steel (Iron Ore/Met Coal) Copper Aluminium Nickel Zinc Silicon Cobalt Graphite Manganese Silver Lithium Platinum Uranium Low to None
Slide 16: Energy transition is dependent on Steel; Met Coal is a critical material
CRN - FY23 Results Presentation 16 Energy transition is dependent on Steel; Met Coal is a critical material Steel is used in almost every aspect of the world’s infrastructure, including renewable energy infrastructure Notes: All statistics based on World Steel Association assumption of approximately
Slide 17: Steel production generated primarily from Blast Furnace methods
CRN - FY23 Results Presentation 17 Steel production generated primarily from Blast Furnace methods Met Coal underpins the primary Steel production method in Asia and Globally through 2050 EAF / other steel production methods are expected to grow over time, but BOF production is forecast to remain th
Slide 18: Coronado Reserves and Resources
CRN – FY23 Results Presentation 18 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 2023 in million metric tonnes (Mmt). Rounding has been applied. Coal resour
Slide 19: Coronado's Unique Diversification Advantage
Coronado’s Unique Diversification Advantage Our high-quality Met Coal operations support customers on five continents 19 Notes: (1) Australian full year 2023 export Met coal sales volume mix. (2) Hard Coking Coal (HCC), Semi Coking Coals (SCC), Pulverized Coal Injection (PCI). (3) U.S. full year 202
Slide 20: Met Coal prices well above long-term average price
Met Coal prices well above long-term average price Australian Premium Met Coal index $316 per tonne (12 Feb 2024); Higher pricing for longer Notes: (1) Source: S&P Global Platts pricing 31 Dec 2019 to 12 February 2024; PLV HCC FOB AUS = Premium Low-Vol FOB Australian Hard Coking index, LV HCC FOB US
Slide 21: Steel Demand Outlook Remains Firm In Key Markets
Steel Demand Outlook Remains Firm In Key Markets Infrastructure growth in India forecast to grow substantially 21 Notes: (1) Data source Wood Mackenzie November 2023 GDP Forecasts. (2) Data sourced from AME Metallurgical Coal Strategic Market Study 2023 Q4; Mt = Million metric tonnes. Rounding has b
Slide 22: Strong Met Coal Demand Through 2050
Strong Met Coal Demand Through 2050 Global export Met Coal demand is forecast to grow to 613Mt by 2050, led primarily by blast furnace steel production in India. India export Met Coal demand forecast to increase 283% by 2050. • Coronado with its long-life assets is well positioned, India remains one
Slide 23: FY24 Initiatives, Guidance & Organic Growth Investment Plans
FY24 Initiatives, Guidance & Organic Growth Investment Plans Douglas Thompson Managing Director & CEO CRN – FY23 Results Presentation 23
Slide 24: FY 2024 Guidance and Key Strategic Focus Areas
FY 2024 Guidance and Key Strategic Focus Areas Asset optimisation of our existing assets and continued investment in highly accretive organic growth projects are our key strategic focus areas Metric (metric tonnes / U.S. dollars) Actual FY 2023 Guidance FY 2024 Saleable Production (Mmt) 15.8 16.4 –
Slide 25: Curragh Complex: Operating restructure optimise efficiency and production
Operating restructure optimise efficiency and production Curragh is one of the largest coking coal mines on the planet with 936 million tonnes of resources, approx. 20-year mine life. Produces a range of HCC, SCC and PCI products with a loyal customer base. The consistent low-volatile, low-ash chara
Slide 26: Curragh Underground Project
Curragh Underground Project Met Coal uplift 2 Mtpa, 2nd quartile cost curve, Low Capex, 13.5 Mtpa by 2025 Coal Reserve, Quality and Mining Method Underground Bord and Pillar operation; Access utilizing existing open cut pit highwall in S-Pit Substantial high-quality Met coal reserve 41 million ROM t
Slide 27: Potential Substantial Future Value Uplift – Curragh
Potential 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 from late 2026 / early 2027 27 Notes: Rounding has been applied. (1) Please refer to Important Notices & Disclaime
Slide 28: U.S. Operations Met Coal Uplift
U.S. Operations Met Coal Uplift +1 Mtpa; 7 Mtpa by 2025; Optimised operational performance FY 2024 Priorities: ➢ Improved flexibility and productivity gains following major milestone works in establishing the North and South mining districts at Buchanan (pictured). ➢ Lower costs / higher productivit
Slide 29: Organic Growth - Buchanan
Organic Growth - Buchanan Buchanan capital works remain on target underpinning U.S. growth plans to produce 7.0Mtpa by 2025 CRN – FY23 Results Presentation 29 Mining underway in the newly developed South District, utilising new equipment. Capital works continue to invest in the construction of a new
Slide 30: Rehabilitation, Emissions Reduction and Sustainability
Rehabilitation, Emissions Reduction and Sustainability CRN – FY23 Results Presentation 30
Slide 31: Significant Rehabilitation Works Completed
Significant Rehabilitation Works Completed Past 2 Years 269 hectares completed since January 2022 (Curragh 171ha, Logan 95 ha, Greenbrier 13ha, Buchanan 4ha); More works planned in FY24 at Curragh following heavy wet weather in late FY23 CRN – FY23 Results Presentation 31 Logan Surface Greenbrier Cu
Slide 32: Buchanan Ventilation Air Methane (VAM) Abatement Projects
Buchanan Ventilation Air Methane (VAM) Abatement Projects VAM units utilise the latest technology (RTO – Reductive Thermal Oxidation) to convert fugitive methane gas emissions to CO2. Given its success, construction of a second VAM unit at Vent Shaft 18 is underway, due for completion in mid-2024 (p
Slide 33: Curragh Gas Project
Curragh Gas Project Curragh’s gas project is targeting the capture and beneficial use of open-cut waste mine coal gas from operations, with priority downstream use cases being for power generation and use as a diesel substitute in mining fleets. Wells Operational. Surface production facility install
Slide 34: Questions
CRN - FY23 Results Presentation 34 Questions CRN - FY23 Results Presentation 34
Slide 35: Reconciliation of Non-GAAP measures
CRN - FY23 Results Presentation 35 Reconciliation of Non -GAAP measures This report discusses results of the Company’s operations and includes references to and analysis of certain non -GAAP measures, which are financial measures not recognized in accordance with U .. S .. GAAP .. Non -GAAP financia
Slide 36: Reconciliation of Non-GAAP measures
CRN - FY23 Results Presentation 36 Reconciliation of Non-GAAP measures Total consolidated mining costs per tonne reconciliation (US$ thousands, except for volume data) For the year ended 31 December 2023 For the year ended 31 December 2022 Total costs and expenses 2,718,633 2,525,271 Less: Selling,
Slide 37: Reconciliation of Non-GAAP measures
CRN - FY23 Results Presentation 37 Reconciliation of Non-GAAP measures Adjusted EBITDA reconciliation (US$ thousands) For the year ended 31 December 2023 For the year ended 31 December 2022 Net income 156,065 771,703 Add: Depreciation, depletion and amortization 160,711 167,046 Add: Interest expense
Slide 38: 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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