Coronado Global Resources Inc. · ASX:CRN
Coronado Global Resources — Shareholder Meeting (May 2023)
50 slides from Coronado Global Resources's shareholder meeting presentation, May 25, 2023
Slide 1: ASX Announcement: 2023 Annual General Meeting Presentation
ASX Announcement 25 May 2023 2023 Annual General Meeting of Stockholders:Presentation Coronado Global Resources Inc (“Coronado”, ASX: CRN) is pleased to provide a copy of the 2023 Annual General Meeting: Presentation to be delivered at the Annual General Meeting of Stockholders (AGM) on Thursday 25
Slide 2: Forward-Looking Statements (continued)
collect payments from our customers depending on their creditworthiness, contractual performance or otherwise; the prices we receive for our coal; the demand for steel products, which impacts the demand for our metallurgical, or Met, coals; risks inherent to mining, including sales related and maint
Slide 3: Annual General Meeting 2023 Presentation
For personal use only Bill Koeck Board Chair Annual General Meeting 2023 Presentation Gerry Spindler 25 May 2023 (All units in USD and metric tonnes, unless otherw ise stated) Managing Director and CEO Douglas Thompson Incoming – Managing Director and CEO
Slide 4: Chairman's Address
For personal use only Chairman’s Address Bill Koeck Independent Non-Executive Director and Chair 2023 Annual General Meeting 2
Slide 5: A leading international producer of high-quality metallurgical coal
For personal use only A leading international producer of high-quality metallurgical coal, an essential element in the production of steel. 2023 Annual General Meeting 3
Slide 6: Energy transition is dependent on steel; Met Coal is a key driver
Energy transition is dependent on steel; Met Coal is a key driver Met Coal is a key ingredient in making steel, which underpins the global transition to new For personal use only renewable energy infrastructure and reduced global emissions. Golden Gate Bridge (1) Em pire State Building (2) Average E
Slide 7: 2022 Record Financial Results; Record Shareholder Returns
2022 Record Financial Results; Record Shareholder Returns For personal use only Record dividend distributions Record financial results driven by elevated pricing and solid operating performance and productivity initiatives despite significant wet weather Record economic contributions to society and
Slide 8: Coronado's Capital Management Strategy
Coronado’s Capital Management Strategy Supported By Strong Fundamentals For personal use only 1. Strong Balance Sheet Maintaining a strong balance sheet with enhanced liquidity and prudent debt levels. 2. Shareholder Returns Fundamental strategy is to return funds to Shareholders. 3. Organic Growth
Slide 9: Total Shareholder Returns (TSR) / Dividend Yield
Total Shareholder Returns (TSR) / Dividend Yield 2022 TSR of 110% (1) and Dividend Yield of 49% substantially outperformed the market For personal use only Dividend Yield vs Index / Peers (2) 48.9% 47.0% 38.0% 29.0% 18.0% 6.0% 6.1% 1.0% 1.4% 0.0% 0.0% WHC NHC SMR YAL ARCH BTU HCC AMR ASX S&P 200 500
Slide 10: Safety is the most important aspect of our operations
For personal use only Safety is the most important aspect of our operations and our highest priority 2023 Annual General Meeting 8
Slide 11: Sustainability 2022 Highlights
Sustainability 2022 Highlights For personal use only 100% Progress made towards sustainability targets 209ha Land rehabilitated across the U.S. and Australia Significant environment and cultural ZERO heritage incidents INAUGURAL REFLECT Launched in Australia RECONCILIATION ACTION PLAN 14% Increase i
Slide 12: Board Changes and Management Succession
Board Changes and Management Succession For personal use only Effective after this AGM Retirement of Gerry Spindler from the role of MD and CEO after today’s AGM, and the intention to subsequently appoint Mr Spindler to the position of Executive Chair of the Board. Promotion of Douglas Thompson as C
Slide 13: Positive Outlook
Positive Outlook Coronado is well positioned for next stage of growth For personal use only Metric Actual Guidance Coronado is well positioned with a FY22 FY23 strong balance sheet, stable cash flows, experienced Board and Saleable Production (Mmt) 16.0 16.8 – 17.2 management, quality long-life asse
Slide 14: Chief Executive Officer's Address
For personal use only Chief Executive Officer’s Address Gerry Spindler Managing Director and CEO 2023 Annual General Meeting 12
Slide 15: FY 2022 Highlights
FY 2022 Highlights Record financial results; Strong balance sheet retained. For personal use only Solid operating Strong capital Record Record performance and revenue of Record net dividend management income of productivity and balance $3.6 billion distributions initiatives Substantial $772 million
Slide 16: Health and Safety
Health and Safety Safety is Coronado’s highest priority For personal use only Australian Operations (TRIFR) Aus tra lian Operations Industry a verage 10 8 6 4 2 0 US Operations (TRIR) 4 US Opera tions Industry a verage 3 2 1 Notes: Total Recordable Injury Frequency Rate (TRIFR), is the number of fat
Slide 17: Dragline Proximity Awareness
Dragline Proximity Awareness For personal use only Implementing technology solutions to improve proximity awareness A simple and robust proximity awareness Radar Mounted on the Underside of the Lidar Mounted on the Underside of the system to notify the operator, and/or to Machine Machine take an app
Slide 18: Metallurgical Coal Markets
For personal use only Metallurgical Coal Markets 2023 Annual General Meeting 16
Slide 19: Metallurgical Coal has a long-term future
Metallurgical Coal has a long-term future Steel is critical to the development of a low carbon future; Demand outlook remains firm. For personal use only Total Global Crude Steel Production (Bt) Total Global Crude Steel Production Method +17% EAF / Other EAF / Other 2.2 1.8 28% 47% 53% BOF 72% BOF 2
Slide 20: Coronado's Unique Diversification Advantage
Coronado’s Unique Diversification Advantage Coronado supports Met Coal customers on five continents For personal use only FY 2022 Met Coal Product Offering Australia (1),(2) U.S.(3) 8% 2% 30% HCC Low -Vol 34% PCI High-Vol SCC Mid-Vol 68% 58% Europe Japan US China South Korea FY 2022 Group Sales – Ge
Slide 21: Steel Demand Outlook Remains Firm
Steel Demand Outlook Remains Firm India steel production anticipated to grow year-on-year due to urbanisation and industrialisation For personal use only Annual Forecast GDP Growth Percentage (1) India Total Crude Steel Production (Mmt) (2) 6.6 373.9 6.4 2023 2024 5.5 5.1 +203% 189.2 150.4 158.5 2.6
Slide 22: Strong Metallurgical Coal Demand Through 2050
Strong Metallurgical Coal Demand Through 2050 Global export demand growth for Met Coal is underpinned by India; For personal use only Primary source growth needs to be from Australia. Global export Met Coal demand is forecast to grow to 548Mmt by 2040, Global Export Met Coal Supply (Mmt) Global Expo
Slide 23: Met Coal prices expected to rebound in H2
Met Coal prices expected to rebound in H2 Met Coal index fallen in 2023; Remains well above long-term average price. For personal use only Metallurgical Coal Price Indices (U$/t) (1) Coronado Average Met Coal Realised Price (US$/t) (3) Q4’22 Q1’23 700 PLV HCC FOB AUS +12% LV HCC FOB USEC +3% +8% 600
Slide 24: Incoming Chief Executive Officer's Address
For personal use only Incoming – Chief Executive Officer’s Address Douglas Thompson Managing Director and CEO (effective 25 May 2023) 2023 Annual General Meeting 22
Slide 25: Coronado – Steel Starts Here (Video)
Coronado – Steel Starts Here (Video) For personal use only 2023 Annual General Meeting 23
Slide 26: Growth – U.S.
Growth – U.S. Buchanan capital works underpin U.S. growth plans to For personal use only 7.0Mtpa by 2025 Buchanan: Construction of new surface coal storage areas underway to increase capacity and decrease bottlenecks. Installation of a second set of skips for additional hoisting capacity. Prep
Slide 27: Growth - Australia
Growth - Australia Curragh Underground key organic growth project for mine to For personal use only reach 13.5Mtpa saleable production by 2025 Coal Reserve, Quality and Mining Method Underground Bord and Pillar operation Access utilizing existing open cut pit highwall Substantial high-quality
Slide 28: Exceptional Workforce
Exceptional Workforce Coronado Global Resources – A Company Like No Other For personal use only 2023 Annual General Meeting 26
Slide 29: Coronado Investment Proposition
Coronado Investment Proposition Fundamental policy to generate Shareholder Value – 2022 TSR of 110% For personal use only Shareholder Value Critical Commodity Operational Excellence Capital Management • Met Coal is a critical material found in • Strong Culture and Capability to maximise • Strong Bal
Slide 30: Formal Business of The Meeting
For personal use only Formal Business of The Meeting Bill Koeck Independent Non-Executive Director and Chair 2023 Annual General Meeting 28
Slide 31: Items of Business
Items of Business Resolution by Holder of Preferred Stock Series A For personal use only Item 1: Election of Series A Director Nominee Ms Laura Tyson Resolutions by Holders of Common Stock Item 2: Election of five Director Nominees Item 3: Approval on a Non-binding Advisory Basis of Named Exec
Slide 32: Item 1: Election of Series A Director Nominee Ms Laura Tyson
Item 1: Election of Series A Director Nominee Ms Laura Tyson For personal use only The Holder of the Series A Share is being asked to consider and if thought fit, resolve that: (a) ‘Ms Laura Tyson, be elected as a non-executive Director of the Company to hold office until the 2024 Annual General Mee
Slide 33: Item 1: Summary of Proxies Received
Item 1: Election of Series A Director Ms Laura Tyson (continued) For personal use only Summary of Proxies Received (at proxy close, 10am (AEST) May 22, 2023) Voted % Election of Ms Laura Tyson For 100% Withheld 0% Note: AEST ref ers to Australian Eastern Standard Time. 2023 Annual General Meeting 31
Slide 34: Item 2: Election of Directors
Item 2: Election of Directors For personal use only Mr Garold (Gerry) Spindler Mr William (Bill) Koeck Mr Philip Christensen Mr Greg Pritchard Mr Douglas Thompson Executive Director Non-Executive Director Non-Executive Director Non-Executive Director Executive Director 2023 Annual General Meeting 32
Slide 35: Item 2: Election of Directors (continued)
Item 2: Election of Directors (continued) For personal use only Security holders are being asked to consider and if thought fit, resolve by ordinary resolution, that: (1) ‘Mr Garold (Gerry) Spindler, being eligible, be elected as an executive Director of the Company to hold office until the 2024 Ann
Slide 36: Item 2: Summary of Proxies Received
Item 2: Election of Directors (continued) For personal use only Summary of Proxies Received (at proxy close, 10am (AEST) May 22, 2023) Voted % Election of Mr Garold (Gerry) Spindler For 98.30% Withheld 1.70% Election of Mr William (Bill) Koeck For 93.30% Withheld 6.70% Election of Mr Greg Pritchard
Slide 37: Item 3: Advisory Approval of Executive Compensation
Item 3: Approval on a Non-binding Advisory Basis of Named Executive Officers’ Compensation For personal use only Security holders are being asked to consider and if thought fit, by ordinary resolution to: ‘Resolve that the compensation of the Company’s named executive officers, as disclosed pursuant
Slide 38: Item 3: Summary of Proxies Received
Item 3: Approval on a Non-binding Advisory Basis of Named Executive Officers’ Compensation (continued) For personal use only Summary of Proxies Received (at proxy close, 10am (AEST) May 22, 2023) Votes (%) For 92.39% Against 7.58% Abstain 0.03% Note: AEST ref ers to Australian Eastern Standard Time.
Slide 39: Item 4: Ratification of Independent Accounting Firm
Item 4: Ratification of Appointment of Independent Registered Public Accounting Firm for Fiscal Year Ending December 31, 2023 For personal use only Security holders are being asked to consider and if thought fit, by ordinary resolution to: ‘Resolve to ratify the appointment of Ernst & Young as the C
Slide 40: Item 4: Summary of Proxies Received
Item 4: Ratification of Appointment of Independent Registered Public Accounting Firm for Fiscal Year Ending December 31, 2023 (continued) For personal use only Summary of Proxies Received (at proxy close, 10am (AEST) May 22, 2023) Votes (%) For 99.90% Against 0.08% Abstain 0.02% Note: AEST ref ers t
Slide 41: Item 5: Issuance of Securities under 2018 Equity Incentive Plan
Item 5: Approval of the issuance of up to 25,000,000 Securities under the Company’s 2018 Equity Incentive Plan For personal use only Security holders are being asked to consider and if thought fit, by ordinary resolution to: ‘Resolve to approve the issuance of up to 25,000,000 Securities (including
Slide 42: Item 5: Summary of Proxies Received
Item 5: Approval of the issuance of up to 25,000,000 Securities under the Company’s 2018 Equity Incentive Plan (continued) For personal use only Summary of Proxies Received (at proxy close, 10am (AEST) May 22, 2023) Votes (%) For 99.16% Against 0.80% Abstain 0.04% Note: AEST ref ers to Australian Ea
Slide 43: Item 6: Adopt Employee Share Purchase Plan
Item 6: Approval to adopt the Company’s Employee Share Purchase Plan For personal use only Security holders are being asked to consider and if thought fit, by ordinary resolution to: ‘Resolve to approve the Coronado Global Resources Inc. Employee Stock Purchase Plan.’ 2023 Annual General Meeting 41
Slide 44: Item 6: Summary of Proxies Received
Item 6: Approval to adopt the Company’s Employee Share Purchase Plan (continued) For personal use only Summary of Proxies Received (at proxy close, 10am (AEST) May 22, 2023) Votes (%) For 99.86% Against 0.10% Abstain 0.04% Note: AEST ref ers to Australian Eastern Standard Time. 2023 Annual General M
Slide 45: Contacts
Contacts For personal use only Investors Registered Office Media Andrew Mooney Coronado Global Resources Inc. Helen McCombie Vice President Investor Citadel Magnus Relations & Communications Level 33, Central Plaza One 345 Queen Street +61 411 756 248 +61 458 666 639 Brisbane, QLD, Australia, 4000 h
Slide 46: Supplementary Information
For personal use only Supplementary Information 2023 Annual General Meeting 44
Slide 47: Important Notices and Disclaimer
Important Notices and Disclaimer For personal use only The material contained in this presentation is intended to be general background information on Coronado Global Resources (Coronado) and its activities. The information is s upplied in summary form and is therefore not nec essarily compl ete. It
Slide 48: Reconciliation of Non-GAAP measures
Reconciliation of Non-GAAP measures For personal use only Realised met pricing reconciliation for the three Realised met pricing reconciliation for the 12 months United United months ended 31 December 2022 Australia Consolidated ended 31 December 2022 Australia Consolidated States States (US$ thousa
Slide 49: Reconciliation of Non-GAAP measures (continued)
Reconciliation of Non-GAAP measures (continued) For personal use only For the 12 months Adjusted EBITDA reconciliation For the 12 months ended Total consolidated mining costs per tonne reconciliation (US$ ended 31 December (US$ thousands) 31 December 2022 thousands, except for volume data) 2022 Net
Slide 50: For personal use only
For personal use only https://coronadoglobal.com/sustainability/
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