Coronado Global Resources Inc. · ASX:CRN
Coronado Global Resources — H1 2022 Earnings Presentation
41 slides from Coronado Global Resources's earnings presentation, Aug 8, 2022
Slide 1: 2022 Half Year Results Presentation
2022 Half Year Results Presentation GERRY SPINDLER Managing Director and CEO GERHARD ZIEMS Group Chief Financial Officer 9 August 2022 (All units in USD and metric tonnes, unless otherwise stated)
Slide 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 complete. It is not intended that it be relied upon as advice to inves
Slide 3: The leading international producer of high-quality metallurgical coal
The leading international producer of high-quality metallurgical coal, an essential element in the production of steel. 3
Slide 4: Metallurgical Coal has a Long-Term Future
4 Metallurgical Coal has a Long-Term Future HY22 Results Presentation Steel is essential in all low-carbon technologies and underpins renewable energy infrastructure future 1.9 2.2 2022 2050 +15% Total Global Crude Steel Production (Bt) (2) (1) 69% 31% BOF EAF / Other 54% 46% BOF EAF / Other Total G
Slide 5: Safety is the most important aspect of our operations
‘Safety is the most important aspect of our operations and is our number one priority’ 5
Slide 6: Health, Safety and Community
6 Health, Safety and Community 1 2 3 4 U.S. Operations (TRIR) Industry average (TRIR) Australian Operations (TRIFR) US Operations (TRIR) Notes: Total Recordable Injury Frequency Rate (TRIFR), is the number of fatalities, lost time injuries, cases or substitute work and other injuries requiring medic
Slide 7: HY 2022 Summary Results
HY 2022 Summary Results GERRY SPINDLER MANAGING DIRECTOR AND CEO Review images 7
Slide 8: HY 2022 Financial Results
HY 2022 Financial Results Record Revenue, Realised Price, Net Income and Adjusted EBITDA Notes: Rounding has been applied to this table as appropriate. Blue and grey coloured references in the variance column indicate positive and negative variance movements respectively and arrow direction indicate
Slide 9: HY 2022 Group Operational Performance
9 HY 2022 Group Operational Performance HY22 Results Presentation Second half of 2022 weighted production plans Export Volume Mix (%) ROM Production (Mt) Saleable Production (Mt) Revenue Mix (%) 5.8 3.3 3.1 12.2 7.2 3.5 3.0 13.7 0 5 10 15 Curragh Buchanan Logan Group HY22 HY21 4.5 1.9 1.1 7.5 5.7 2.
Slide 10: Share Price Performance / Dividend Yield
10 Share Price Performance / Dividend Yield HY22 Results Presentation Coronado share price and dividend payments have outperformed the market 1.4% S&P 500 ASX 200 23.1% 4.1% Notes: (1) Source: Trading View for the period 1 July 2021 – 30 June 2022. Share price performance is not dividend adjusted. (
Slide 11: Financial Performance & Capital Management
Financial Performance & Capital Management GERHARD ZIEMS GROUP CHIEF FINANCIAL OFFICER
Slide 12: Capital Management
Capital Management 12 HY22 Results Presentation 1. Strong Balance Sheet Maintaining a strong balance sheet with enhanced liquidity and prudent debt levels Fundamental strategy is to return funds to Shareholders Prioritise growth expenditure projects to increase existing production rates Uniquely pos
Slide 13: Capital Management Delivery
Capital Management Delivery 13 HY22 Results Presentation Restructure of our financing arrangements in the past 12 – 18 months has allowed us to take advantage of the improved markets and weather recent headwinds 1,980 1,348 800 749 714 H1’21 H2’21 H1’22 H2’20 H1’20 +147% 849 460 26 19 35 H1’22 H2’21
Slide 14: HY 2022 Cash Flows and Liquidity
HY 2022 Cash Flows and Liquidity ($M) Strong HY22 Free Cash Flow generation; Available liquidity of $586 million Coronado generated $518 million in Operating Cash Flows and $423 million in Free Cash Flow after capital expenditure and other financing costs. Dividend distributions are determined with
Slide 15: HY 2022 Dividend and Notes purchase offer
HY 2022 Dividend and Notes purchase offer 15 HY22 Results Presentation Coronado declares an ordinary dividend of $125.7 million (USD 7.5 cents / CDI) and commences Senior Secured Notes purchase offer of $25.2 million 9 August 2022 Declaration of $125.7 million dividend and commenced offer to purchas
Slide 16: HY 2022 Dividend and Notes purchase offer (continued)
HY 2022 Dividend and Notes purchase offer (continued) 16 HY22 Results Presentation Payments and declarations aligned with 60% - 100% Free Cash Flow distributions policy Record HY 2022 results and strong liquidity underpin dividends paid and declared year-to-date. HY 2022 Free Cash Flow generation is
Slide 17: FY 2022 Revised Guidance
FY 2022 Revised Guidance 17 HY22 Results Presentation Metric Original FY 2022 Guidance Revised FY 2022 Guidance Saleable Production (Mt) 18.0 – 19.0 18.0 – 19.0 (low-end) Mining Cost per Tonne Sold ($/t) 69.0 – 71.0 79.0 – 81.0 Capital Expenditure ($) 170 - 190 170 – 190 (high-end) Saleable Producti
Slide 18: Metallurgical Coal Markets Update for HY
18 HY21 Results Presentation Metallurgical Coal Markets Update for HY 18
Slide 19: Coronado has a Unique Diversification Advantage
19 Coronado has a Unique Diversification Advantage Coronado supports Met coal customers on five continents Notes: (1) Annualised saleable Met coal volumes in millions of metric tonnes sourced from available public filings and Wood Mackenzie. Coronado reflects volume of Met Coal sold in FY21. BMA, Gl
Slide 20: Strong HY 2022 Met Coal Price Realisations
Strong HY 2022 Met Coal Price Realisations 20 100 100 100 329 254 293 AUS (FOB) U.S. (FOR / Domestic) Group +231% +154% +193% H1 2021 H1 2022 Coronado Average Met Coal Realised Price (US$/t) (3) Notes: (1) Source: S&P Global Platts; PLV HCC FOB AUS = Premium Low-Vol FOB Australian Hard Coking index,
Slide 21: Steel Demand Outlook Remains Firm
Steel Demand Outlook Remains Firm Notes: (1) Data source Wood Mackenzie July 2022 GDP Forecasts. (2) Data source Wood Mackenzie April 2022 Metallurgical Trade Outlook to 2050 Annual Forecast GDP Growth Percentage (1) India Total Crude Steel Production (Mt) (2) 7.0 1.6 2.4 2.6 3.7 1.8 3.1 2.3 5.9 1.7
Slide 22: Strong Metallurgical Coal Demand Through 2050
Strong Metallurgical Coal Demand Through 2050 22 Growth for seaborne Met coal is underpinned by Indian demand and blast furnace production Notes: Data sourced from Wood Mackenzie April 2022 Metallurgical Trade Outlook to 2050 Seaborne Met Coal Supply (Mt) Seaborne Met Coal Demand (Mt) Global seaborn
Slide 23: Strategy / Growth Plans
Strategy / Growth Plans GERRY SPINDLER MANAGING DIRECTOR AND CEO 23
Slide 24: Reserves & Resources (Mt)
24 Reserves & Resources (Mt) HY22 Results Presentation Coronado maintains long-life operating assets ~20 years Notes: Charts reflect reserves and resources as at 31 December 2021 in millions of metric tonnes. Coal resources are inclusive of coal reserves. Australian resources are reported on a 5.3%
Slide 25: Key focus areas for second half 2022 and 2023
Key focus areas for second half 2022 and 2023 Coronado will drive a strong safety culture and continue to implement safety initiatives to reduce injuries: An improvement in reportable TRIFR and TRIR incidents Increased focus on training and supervisory development programs Increased incident reducti
Slide 26: Growth - Australian Operations
Growth - Australian Operations 26 HY22 Results Presentation Estimated Production Profile (Mt) Curagh achievements and key areas of focus: ✓ New management with clarity of purpose and strategy ✓ CHPP capacity to produce 13.5Mt is already in place. ✓ Transition of four fleets to Coronado operator mode
Slide 27: High Wall Mining – Curragh North
27 High Wall Mining – Curragh North HY22 Results Presentation Commenced operation on 11 July 2022 The High Wall Miner (HWM) enters the coal seam directly from the pit floor. HWM can mine to a maximum depth of 400 meters and utilises a purpose-built continuous miner. The HWM system uses conveyor cars
Slide 28: Productivity improvements from Draglines and converted fleets
28 HY22 Results Presentation Capital investment in box-cuts and completed planned maintenance on Draglines in HY 2022 now resulting in approximately 10% productivity improvements Newly transitioned 3 x Excavator / Truck and 1 x Shovel / Truck fleets (53 individual pieces of mobile equipment) to a Co
Slide 29: Growth - U.S. Operations
Growth - U.S. Operations 29 Estimated Production Profile (Mt) Buchanan: Construction of new raw coal storage areas underway to increase capacity and decrease bottlenecks. Installation of additional skips Preparation plant upgrades planned to increase throughput and yield Additional production from P
Slide 30: Mon Valley Development Project
Mon Valley Development Project 30 Located 22.5km southeast of Pittsburgh ▪ Reserves: 197 Mt of Reserves ▪ Production Capacity: >2 Mt per year ▪ Coal Quality: High-Vol HCC ▪ Transportation: Barge with alternate rail access on CSX ▪ Seam: Upper Freeport Strategically holding transportation advantage l
Slide 31: Coronado 2021 Sustainability Report
Coronado 2021 Sustainability Report https://coronadoglobal.com/sustainability/ 31
Slide 32: Sustainability Actions and Commitments
32 Sustainability Actions and Commitments Zero Coronado has a directional intent to have net zero operational emissions by 2050. 30% Coronado commits to a 30% reduction in Scope 1 and Scope 2 greenhouse gas emissions by 2030. >3,000 people Coronado currently employs 1,600 people directly and over 1,
Slide 33: Buchanan Ventilation Air Methane (VAM) Abatement Project
33 Buchanan Ventilation Air Methane (VAM) Abatement Project HY22 Results Presentation Greenbrier Project underpins Coronado 30% emission reduction target by 2030 Buchanan mine VAM project officially commenced on 27 July 2022 Project utilises the latest technology to convert fugitive methane gas emis
Slide 34: A pure-play metallurgical coal company ready for next stage of growth
34 ‘A pure-play metallurgical coal company ready to embrace the next stage of growth’ Buchanan Mine Logan Mine Curragh Mine 34
Slide 35: Questions
Questions 35
Slide 36: Supplementary Information
Supplementary Information eee) STEELSTARISHEE
Slide 37: Non-GAAP measures definitions
This report, which includes 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 used by the Company and investors to mea
Slide 38: Reconciliation of Non-GAAP measures: Adjusted EBITDA
Reconciliation of Non-GAAP measures (continued) HY22 Results Presentation 38 Adjusted EBITDA reconciliation For the six months ended 30 June 2022 For the six months ended 31 December 2021 For the six months ended 30 June 2021 For the six months ended 31 December 2020 For the six months ended 30 June
Slide 39: Reconciliation of Non-GAAP measures: Realised Met Pricing
Reconciliation of Non-GAAP measures (continued) Realised Met Pricing reconciliation for the six months ended 30 June 2022 Australia United States Consolidated (US$ Thousands, except for volume data) Total Revenues 1,183,686 796,143 1,979,829 Less: Other revenues (19,042) (3,162) (22,204) Total coal
Slide 40: Reconciliation of Non-GAAP measures: Mining Costs per tonne
Reconciliation of Non-GAAP measures (continued) Mining Costs per tonne reconciliation for the six months ended 30 June 2022 Australia United States Other/Corporate Total (US$ Thousands, except for volume data) Total costs and expenses 794,901 407,125 18,837 1,220,863 Less: Selling, general and admin
Slide 41: Contacts
CONTACTS Investors: Andrew Mooney Vice President Investor Relations & Communications P: +61 458 666 639 E: amooney@coronadoglobal.com E: investors@coronadoglobal.com Media: Helen McCombie Citadel Magnus P: +61 411 756 248 E: hmccombie@citadelmagnus.com Registered Office: Coronado Global Resources In
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