Coronado Global Resources Inc. · ASX:CRN
Coronado Global Resources — H1 2023 Earnings Presentation
32 slides from Coronado Global Resources's earnings presentation, Aug 8, 2023
Slide 1: 2023 Half Year Results Presentation
2023 Half Year Results Presentation Douglas Thompson Managing Director & CEO Gerhard Ziems Group Chief Financial Officer 8 August 2023 All units in U.S. dollars and metric tonnes, unless otherwise stated
Slide 2: Important Notices and Disclaimer
HY23 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 complete.
Slide 3: CEO Address
Presentation Title 3 CEO Address Douglas Thompson Managing Director & CEO HY23 Results Presentation 3
Slide 4: HY 2023 Highlights
Strong operational performance delivering production 10% higher than prior year Growth Plans advanced Curragh North Underground project approved by Board Group Revenue of $1.5 billion and adjusted EBITDA of $352 million Significant works on emission reduction projects 11% reduction in emissions in 2
Slide 5: A leading international producer of high-quality metallurgical coal
HY23 Results Presentation 5 A leading international producer of high - quality metallurgical coal, an essential element in the production of steel. HY23 Results Presentation 5
Slide 6: Metallurgical Coal has a Long-Term Future
HY23 Results Presentation 6 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 High So
Slide 7: Energy transition is dependent on Steel; Met Coal is a critical material
HY23 Results Presentation 7 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 buildings, bridges, rail systems and houses To produce 1,000kg of steel using the BOF process requires approx.: 1,370kg 2
Slide 8: Steel production generated primarily from Blast Furnace methods
Steel production generated primarily from Blast Furnace methods Met Coal underpins the primary Steel production method in Asia and Globally through 2050 HY23 Results Presentation 8 EAF / other steel production methods are expected to grow over time, but BOF production is forecast to remain the prima
Slide 9: Coronado Reserves and Resources
HY23 Results Presentation 9 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 2022 in million metric tonnes (Mmt). Rounding has been applied. Coal resources are
Slide 10: Safety is our highest priority
Safety is the most important aspect of our operations and our highest priority HY23 Results Presentation 10
Slide 11: Health and Safety
FY22 Results Presentation 11 Health and Safety Safety is Coronado’s 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 12: Financial Performance
HY23 Results Presentation 12 Financial Performance Gerhard Ziems Group Chief Financial Officer HY23 Results Presentation 12
Slide 13: HY 2023 Summary Results
HY23 Results Presentation 13 HY 2023 Summary Results Group Revenue $1,493 million; second highest first-half revenue in Coronado’s history Adjusted EBITDA $352 million lower due to 37% fall in Australian Met Coal index prices year-to-date Higher ROM coal production (up 9.6%) and Saleable production
Slide 14: HY 2023 Cash Flows and Liquidity
HY23 Results Presentation 14 HY 2023 Cash Flows and Liquidity ($M) Coronado generated $224 million in Operating Cash Flows and $117 million in Free Cash Flow in HY 2023. Corporate taxation payments and large coal inventory build at 30 June 2023 impacted Free Cash Flow generation. Closing inventory b
Slide 15: Biannual fully franked fixed dividend declared
HY23 Results Presentation 15 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-organi
Slide 16: Metallurgical Coal Markets
Metallurgical Coal Markets HY23 Results Presentation 16
Slide 17: Coronado's Unique Diversification Advantage
Coronado’s Unique Diversification Advantage Coronado supports Met Coal customers on five continents HY23 Results Presentation 17 Notes: (1) Australian HY 2023 export Met coal sales volume mix. (2) Hard Coking Coal (HCC), Semi Coking Coals (SCC), Pulverized Coal Injection (PCI). (3) U.S. HY 2023 Met
Slide 18: Met Coal prices expected to rebound in late-Q3 2023
Met Coal prices expected to rebound in late-Q3 2023 Met Coal index has fallen in 2023; Remains well above long-term average price. HY23 Results Presentation Notes: (1) Source: S&P Global Platts pricing 31 Dec 2019 to 26 July 2023; PLV HCC FOB AUS = Premium Low-Vol FOB Australian Hard Coking index, L
Slide 19: Steel Demand Outlook Remains Firm
Steel Demand Outlook Remains Firm India steel production anticipated to grow year-on-year due to urbanisation and industrialisation HY23 Results Presentation 19 Notes: (1) Data source Wood Mackenzie May 2023 GDP Forecasts. (2) Data sourced from AME Metallurgical Coal Strategic Market Study 2023 Q1;
Slide 20: Strong Met Coal Demand Through 2050
HY23 Results Presentation 20 Strong Met Coal Demand Through 2050 Global export Met Coal demand is forecast to grow to 548Mmt by 2040, led primarily by blast furnace steel production in India. India export Met Coal demand forecast to increase 226% by 2040. • Coronado with its long-life assets is well
Slide 21: Organic Growth Projects
Presentation Title 21 Organic Growth Projects Douglas Thompson Managing Director & CEO HY23 Results Presentation 21
Slide 22: Growth - Australia: Curragh North Underground
Growth - Australia Board approved Curragh North Underground Met Coal project underpins Curragh strategy to deliver 13.5Mtpa by 2025 Coal Reserve, Quality and Mining Method Underground Bord and Pillar operation Access utilizing existing open cut pit highwall Substantial high-quality Met coal resource
Slide 23: Growth - U.S.: Buchanan
Growth – U.S. Buchanan capital works on target; underpin U.S. growth plans to produce 7.0Mtpa by 2025 HY23 Results Presentation 23 Buchanan: Construction of new surface coal storage areas underway to increase capacity and decrease bottlenecks. Installation of a second set of skips for additional hoi
Slide 24: Emissions Reduction and Sustainability
Emissions Reduction and Sustainability HY23 Results Presentation 24
Slide 25: Buchanan Ventilation Air Methane Abatement Project
Buchanan Ventilation Air Methane (VAM) Abatement Project Buchanan mine VAM project officially commenced on 27 July 2022. Project utilises the latest technology (RTO – Reductive Thermal Oxidation) to convert fugitive methane gas emissions to CO2. Project reduces Buchanan’s emissions by approx. 60%. S
Slide 26: Curragh Gas Pilot Project
Curragh Gas Pilot Project Project on target to extract and utilise waste mine coal gas to power a fleet of 5 – 6 trucks from HY 2024 Substantial drilling undertaken. Vertical drilled wells are complete and have been intersected by the horizontal in-coal seam wells. First dual-fuel mine truck commiss
Slide 27: Coronado Investment Proposition
Coronado Investment Proposition Our fundamental policy is to generate Shareholder Value Shareholder Value Critical Commodity Operational Excellence Capital Management • Strong Culture and Capability to maximise performance • Strategic / Experienced Leadership • Executable Organic Growth Plan: 20.5Mt
Slide 28: Questions
HY23 Results Presentation 28 Questions HY23 Results Presentation 28
Slide 29: Reconciliation of Non-GAAP measures
HY23 Results Presentation 29 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 financial meas
Slide 30: Reconciliation of Non-GAAP measures (continued)
HY23 Results Presentation 30 Reconciliation of Non-GAAP measures (continued) Mining Costs per tonne reconciliation for the six months ended 30 June 2023 (US$ thousands, except for volume data) Australia United States Other / Corporate Consolidated Total costs and expenses 796,470 407,690 18,293 1,22
Slide 31: Reconciliation of Non-GAAP measures (continued)
HY23 Results Presentation 31 Reconciliation of Non-GAAP measures (continued) Adjusted EBITDA reconciliation (US$ thousands) For the six months ended 30 June 2023 For the six months ended 30 June 2022 Net income 199,171 561,893 Add: Depreciation, depletion and amortization 78,303 89,393 Add: Interest
Slide 32: 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
Coronado Global Resources — H1 2023 Earnings Presentation on 6ix