Coronado Global Resources Inc. · ASX:CRN
Coronado Global Resources — Investor Presentation (September 2019)
35 slides from Coronado Global Resources's investor presentation, Sep 10, 2019
Slide 1: ASX Announcement: Investor Presentation Brisbane Club
ASX Announcement 10 September 2019 For personal use only INVESTOR PRESENTATION: BRISBANE CLUB Attached is a copy of the Presentation to be delivered by Gerry Spindler, the Chief Executive Officer of Coronado Global resources Inc. at 6pm (AEST) on Tuesday September 10, 2019 at the Brisbane Club, 241
Slide 2: Investor Presentation, Queensland Investors Club
For personal use only Investor Presentation1 Queensland Investors Club Inc. GERRY SPINDLER Managing Director and CEO 10 September 2019
Slide 3: Safety performance
Safety performance Continued vigilance to ensure we maintain strong safety performance For personal use only Australian Operations (TRIFR)a US Operations (TRIR)b 12.0 3.50 10.0 3.00 2.50 8.0 2.00 6.0 1.50 4.0 1.00 2.0 0.50 0.0 0.00 Jan-18 Mar-18 May-18 Jul-18 Sep-18 Nov-18 Jan-19 Mar-19 May-19 Jan-1
Slide 4: World class portfolio of metallurgical coal assets
World class portfolio of metallurgical coal assets Coronado has assembled a diversified portfolio of premium coal assets, focused on low-cost production, long mine lives and strategic access to infrastructure and markets For personal use only FY18 Production 20.2Mt AUGUST 2011 Coronado DECEMBER APRI
Slide 5: Key strategic drivers
Key strategic drivers Growth through the incremental tonne, product optimisation, new project development and acquisitions For personal use only • Operational scale to deliver sustainable incremental production growth • Leverage existing capital employed to improve operation efficiency and Asset Opt
Slide 6: Uniquely positioned
Uniquely positioned Coronado is the fourth largest metallurgical coal producer globally with operations in two prominent coal basins For personal use only Coronado Group Australian Operations US Operations 30.0 25.0 20.0 15.0 10.0 5.0 - BMA Teck Anglo Glencore Peabody BMC Blackhawk Yancoal Arch Sour
Slide 7: Reserves & Resources (Mt)
Reserves & Resources (Mt) Long life assets with significant Reserves & Resources supports strong growth outlook For personal use only Reserves and Resources (Mt) as 31 December 2018a 3,000 1,200 2,524 2,500 957 1,000 2,000 800 1,500 513 600 493 1,084 1,000 311 400 251 220 177 201 180 500 155 200 60
Slide 8: Competitive Reserves (Mt) position
Competitive Reserves (Mt) position Among the largest Marketable Reserves base of all metallurgical coal producers globally For personal use only Marketable Reserves (2),(a),(b) 3,000 2,445 2,500 2,000 1,500 1,000 711 647 500 400 248 222 183 108 105 0 BMA Contura Anglo Peabody Warrior Glencore Arch Y
Slide 9: A full spectrum producer of metallurgical coal
A full spectrum producer of metallurgical coal Coronado’s portfolio of assets produce a suite of metallurgical coal to meet all blend requirements Typical US Steel Producer Coke Blend For personal use only Coronado’s metallurgical grades Low Vol Mid Vol High Vol Typical International Steel Producer
Slide 10: Competitive cost structure
Competitive cost structure Low operating cost base supports profitability throughout the commodity cycle For personal use only Australian Operations Cost (FOB $/t)3 200 Low operating cost asset base targets profitability throughout the 150 commodity cycle Anglo Curragh BMA 100 US$78 US$81.8 US$82 50
Slide 11: Segment performance
Segment performance $405.4 million Group EBITDA underpinned by strong performance at Curragh and Buchanan For personal use only Curragh Buchanan Buchanan Logan Logan Greenbrier Greenbrier 300 300 300.0 EBITDA (US$m): 300 271.7 Curragh 164.8 150 150 150 150.0 116.4 99.7 35.3 15.5 1 0 0 0 0.0 HY18 HY1
Slide 12: Low cost, competitive expansion options
Low cost, competitive expansion options Expansion options are highly compelling on installed capacity basis For personal use only Capital Cost per Installed Capacity (US$/t)9 250 221 200 153 150 130 Pangburn-Shaner-Fallowfield ~110 - 150 100 Curragh ~5050 - 55 45 50 0 Warrior Riversdale Arch PSF Cur
Slide 13: Valuation comparison
Valuation comparisona Despite superior shareholder returns Coronado’s valuation has lagged sector peers Dividend EV/EBITDA EV/EBITDA For personal use only Yield (%) FY19 (x) FY20 (x) Gearing (x) Coronado 42.3% Coronado 2.4 Coronado 2.9 Coronado 0.0 Whitehaven 15.2% Whitehaven 4.5 Whitehaven 5.8 Whit
Slide 14: Focused on delivering key promises
Focused on delivering key promises Since listing, Coronado has exceeded all operational and corporate targets Stock Price (A$ per CDI) For personal use only Coronado Initial 4.00 Q2 FY19 Public Offering FY18 Quarterly Report Results Announcement 3.75 Index Inclusion Index Inclusion MSCI Australian F
Slide 15: Questions
For personal use only QUESTIONS Investor Presentation 14
Slide 16: Footnotes
Footnotes 1. All tonnages through this presentation are expressed in metric tonnes. All amounts quoted throughout this presentation are in US$ unless otherwise stated. HY18 values are quoted For personal use only on a Pro-forma basis throughout this presentation unless otherwise stated. EBITDA throu
Slide 17: 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 18: Disclaimer: 2018 JORC Resource and Reserve Statements
Disclaimer 2018 JORC Resource and Reserve Statements 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 measured in accordance with the JORC Code. For p
Slide 19: Supplementary Information
For personal use only Supplementary Information HY19 Results Presentation 18
Slide 20: 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 recognised in accordance with U.S. GAAP. Non-GAAP financial measures are use
Slide 21: Balance Sheet
Balance Sheet June 30, December 31, (US$ Thousands) 2019 2018 For personal use only Assets Current assets: Cash and restricted cash 46,251 124,881 Trade receivables 204,248 206,127 Related party receivables 59,665 36,716 Income tax receivable - 12,017 Inventories 129,424 95,103 Other current assets
Slide 22: Balance Sheet (cont'd)
Balance Sheet (cont’d) June 30, December 31, (US$ Thousands) For personal use only 2019 2018 Liabilities Current liabilities: Accounts payable 41,084 42,962 Accrued expenses and other current liabilities 252,351 243,496 Income tax payable 33,024 9,241 Asset retirement obligations 7,719 7,719 Conting
Slide 23: Income Statement
Income Statement For personal use only (US$ Thousands) June 30, 2019 June 30, 2018 June 30, 2018 Pro forma Coal revenues 919,329 571,343 874,857 Coal revenues from related parties 293,158 213,003 222,983 Other revenues 21,848 15,337 18,343 Total revenues 1,234,335 799,683 1,116,183 Cost of coal reve
Slide 24: Cash Flow Statement
Cash Flow Statement (US$ Thousands) June 30, 2019 June 30, 2018 2019 2018 For personal use only Cash Flows From Operating Activities: Net income 214,326 35,651 Adjustments to reconcile net income to cash and restricted cash provided by operating activities: Depreciation, depletion and amortization 8
Slide 25: Cash Flow Statement (cont'd)
Cash Flow Statement (cont’d) (US$ Thousands) June 30, 2019 June 30, 2018 For personal use only 2019 2018 Cash Flows From Investing Activities: Capital expenditures (66,430) (46,776) Purchase of deposits and reclamation bonds (906) (523) Redemption of deposits and reclamation bonds - 171 Acquisition
Slide 26: Mining Costs per tonne Reconciliation
Mining Costs per tonne Reconciliation For six Months Ended For six Months Ended For personal use only June 30, 2019 June 30, 2018 Pro forma Total costs and expenses 914,744 942,885 Less: Selling, general and administrative expense 18,311 15,977 Less: Depreciation, depletion and amortization 85,279 8
Slide 27: Realised Pricing Reconciliation
Realised Pricing Reconciliation For six Months Ended June 30, 2019 Australian US Consolidated For personal use only (In US$’000, except for volume data) Operations Operations Total Revenues 794,182 440,153 1,234,335 Less: Other revenues 18,240 3,608 21,848 Total coal revenues 775,942 436,545 1,212,4
Slide 28: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation For personal use only For six Months For six Months Ended Ended June 30, 2019 June 30, 2018 Pro forma Net Income 214,326 111,178 Add: Depreciation, depletion and amortization 85,279 86,636 Add: Interest expense (net of income) 17,264 31,133 Add: Other foreign exchange
Slide 29: Operating costs per tonne reconciliation, six months ended June 30, 2019
Operating costs per tonne reconciliation for the six months ended June 30, 2019 For personal use only Curragh Buchanan Logan Greenbrier Other/ Total (in US$’000, except for volume data) Corporate Total costs and expenses 564,658 157,770 134,457 39,703 18,156 914,744 Less: Selling, general and admini
Slide 30: Operating costs per tonne reconciliation, three months by region
Operating costs per tonne reconciliation for the three months ended June 30, 2019 by geographic region For personal use only Australian U.S. Other / Total operations Operations Corporate (In US$’000, except for volume data) Total costs and expenses 283,948 172,844 9,050 465,842 Less: Selling, genera
Slide 31: Group mining cost reconciliation, twelve months ended December 2018
Group mining cost reconciliation for twelve months ended December 31, 2018 For personal use only (In US$’000, except for volume data) Total Total costs and expenses 1,888,051 Less: Selling, general and administrative expense 29,901 Less: Depreciation, depletion and amortization 184,352 Total operati
Slide 32: Realised Pricing Reconciliation
Realised Pricing Reconciliation For twelve months ended For personal use only (in US$’000, except for volume data) December 31, 2018 Total Revenues 1,980,504 Less: Other revenues 34,904 Total coal revenues 1,945,600 Less: Thermal coal revenues 126,494 Metallurgical coal revenues 1,819,106 Volume of
Slide 33: Adjusted Proforma EBITDA Reconciliation
Adjusted Proforma EBITDA Reconciliation For personal use only December 31, 2018 Proforma Net Income 168,926 Add: Depreciation, depletion and amortization 184,351 Add: Interest expense 63,623 Add: Other foreign exchange losses 9,004 Add: Income tax expense 118,488 Add: Loss on debt extinguishment 54,
Slide 34: Mining costs per tonne reconciliation, three months by region
Mining costs per tonne reconciliation for the three months ended June 30, 2019 by geographic region For personal use only Australian U.S. Other / Total operations Operations Corporate (In US$’000, except for volume data) Total costs and expenses 283,948 172,844 9,050 465,842 Less: Selling, general a
Slide 35: Contacts
Contacts For personal use only Corporate: Ayten Saridas Group Chief Financial Officer t +61 437 565 833 Aidan Meka m +61 428 082 954 ameka@coronadoglobal.com.au EEwart@coronadoglobal.com.au Investor Presentation 34
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