Coronado Global Resources Inc. · ASX:CRN
Coronado Global Resources — H1 2020 Earnings Presentation
37 slides from Coronado Global Resources's earnings presentation, Aug 11, 2020
Slide 1: 2020 Half Year Results Presentation
For personal use only 2020 Half Year Results Presentation GERRY SPINDLER Managing Director and CEO (All units in USD, unless otherwise noted) 11 August 2020
Slide 2: HY20 Safety Performance
HY20 Safety Performance Coronado’s highest priority remains the safety and wellbeing of its workforce and communities For personal use only Australian Operations (TRIFR)a US Operations (TRIR)b 3.50 12.0 3.00 10.0 2.50 8.0 2.00 6.0 1.50 4.0 1.00 2.0 0.50 0.0 0.00 Jan/18 Jun/18 Nov/18 Apr/19 Sep/19 Fe
Slide 3: HY20 Highlights
For personal use only HY20 HIGHLIGHTS 3
Slide 4: HY20 Highlights
HY20 Highlights(a) Financial performance For personal use only • Reported HY20 Net Loss after Tax of $123.2 million, down $337.5 million (157.5%) compared to HY19 • Adjusted EBITDAb of $34.9m, down 91.4% compared to HY19 of $405.4 million • Group mining cost of $57.3 per tonne, 11.5% increase than H
Slide 5: HY20 Highlights (Cont.)
HY20 Highlights (Cont.) For personal use only Distributions • No distributions have been declared for HY20 Corporate • In May 2020 the Company concluded an agreement with lenders of the Syndicated Facility Agreement (SFA) to waive the compliance with financial covenants until February 2021. • The Co
Slide 6: Reserves & Resources (Mt)
Reserves & Resources (Mt) (a) All operating assets have a minimum life greater than 20 years For personal use only Reserves and Resources (Mt) as 31 December 20192 3,000 1,200 2,497 2,500 936 1,000 2,000 800 1,500 600 493 495 1,032 1,000 400 295 240 248 171 201 176 500 145 200 85 44 0 0 Group Currag
Slide 7: Group Operational Performance
Group Operational Performance Production adversely impacted by temporary suspension at Australian operations and idling production at US segment For personal use only ROM Production (Mt) Export Ratio (%) 40 HY19 HY20 23.3% 26.0% 20 16.7 11.9 8.9 7.8 6.7 5.1 76.7% 74.0% 0 Australia United States Grou
Slide 8: HY20 Financial Performance
For personal use only HY20 FINANCIAL PERFORMANCE 8
Slide 9: HY20 financial metrics
HY20 financial metrics Financial metrics were significantly impacted by the COVID-19 economic downturn HY19 HY20 Variance For personal use only Production 10.4Mt 8.0Mt 2.4Mt Production adversely impacted by temporary suspension In January 2020 at the Australian operations and Sales Volumes 10.4Mt 8.
Slide 10: Revenue performance
Revenue performance Reduction in sales volume and realised pricing has had a significant impact on revenue performance For personal use only “Group sales volumes decreased 19.7% compared to HY19, as a “Revenue of $713.7 million decreased $520.7 million compared to result of weak demand for US metall
Slide 11: Realised pricing
Realised pricing Metallurgical coal production in line with HY19, however realised prices are 29% lower for the Group “Metallurgical coal realised pricing was impacted by lower sales For personal use only “Group sales mix was broadly consistent with HY19” volume and a reduction of ~17.7% decline in
Slide 12: HY20 EBITDA
HY20 EBITDA Continued focus on cost management and retaining flexible to adapt to current environment For personal use only Sales volumes were impacted by the HY20 realised coal price impacted by Cost of Coal Revenues positively Reduction in HY20 royalties and temporary suspension of operations at t
Slide 13: Segment performance
Segment performance HY20 EBITDAa performance For personal use only Australian Operations US Operations Australia Buchanan LoganUS Operations Greenbrier 500 EBITDA (US$m): 500 Curragh 271.7 250 250 151.6 41.7 6.3 0 0 HY19 HY20 HY19 HY20 1.32% 17.4% - EBITDA Margin (%): • EBITDA for the HY20 was $6.3
Slide 14: Mining cost analysis
Mining cost analysis (a) Group mining cost during HY20 was impacted by lower production and higher AUD/USD exchange rate For personal use only HY19 Mining Costb Curve (US$/t) HY20 Mining Costb Curve (US$/t) Group mining cost= $51.4/t Group mining cost = $57.3/t 90 60 30 53.9 64.3 42.6 65.4 0 Austral
Slide 15: Cash flows and Balance Sheet
Cash flows and Balance Sheet Operating Cash flows impacted by operational disruption in HY20 and lower realised pricing For personal use only 01 Jan 2020 30 June 2020 HY20 Results Presentation 15
Slide 16: Operational Update
For personal use only UPDATE OPERATIONAL 16
Slide 17: Metallurgical coal market
Metallurgical coal market Spot pricing for seaborne metallurgical coal showing early signs of recovery Seaborne Price (US$/t)a Key Market Points For personal use only 230 Global steel producers have Steel demand in China has been rationalized production due to a supported primarily by large 210 decl
Slide 18: Australian Operational Review
Australian Operational Review Operations impacted by interruptions during HY20 Operational Highlights Metallurgical Coal Production (Mt) For personal use only 5 • ROM production was 6.7Mt, 24.0% down compared to HY19 due to January shutdown • Rescheduled drill and blast activity was affected by wet
Slide 19: US Operational Review
US Operational Review New sources of production at Logan increases metallurgical coal product mix Operational Highlights Total Metallurgical Coal Production (Mt) For personal use only • Production from the US operations were idled during HY20 due to the 5.0 4.2 reduction of demand experienced as a r
Slide 20: Outlook
For personal use only OUTLOOK 20
Slide 21: Coronado is the World's Leading Metallurgical Coal Producer
Coronado is the World’s Leading Metallurgical Coal Producer For personal use only One of the Largest Metallurgical Coal Producers Globally Leading ASX-listed metallurgical coal producer with a diversified portfolio of world-class assets globally 70 40 2019 Saleable Metallurgical Coal Production(1)
Slide 22: Positive Metallurgical Coal Outlook
Positive Metallurgical Coal Outlook A V-shape recovery is V-shaped Recovery for Indian Steel Production by 2021 Seaborne Metallurgical Coal Demand expected for the steel For personal use only industry in India by 2021 Mt 450 Long term metallurgical 12 90% 400 coal demand expected to 350 grow 1.1
Slide 23: Significant EBITDA Generation when Coal Prices Recover
Significant EBITDA Generation when Coal Prices Recover A $10/t HCC benchmark price uplift can result in an increase in EBITDA by ~$100 million(1) For personal use only • Current metallurgical coal Historical Metallurgical Coal Benchmark Prices price level has seen a major Platts Premium LV HCC Price
Slide 24: Operational & Financial Levers in a sustained downside price environment
Operational & Financial Levers available in a sustained downside price environment In the event of a sustained low price environment, Coronado has flexibility to reduce its operating and For personal use only capital expenditure costs as well as alternative initiatives to support liquidity • Reduce
Slide 25: Questions
For personal use only QUESTIONS HY20 Results Presentation 25 25
Slide 26: Disclaimer
Disclaimer The material contained in this presentation is intended to be general background information on Coronado Global Resources (Coronado) and its activities. The information is supplied in summary form and is therefore not necessarily complete. It is not intended that it be relied upon as advi
Slide 27: Disclaimer: 2019 JORC Resource and Reserve Statements
Disclaimer 2019 JORC Resource and Reserve Statements In this announcement, references to ore reserves (Reserves) are compliant with the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves 2012 (JORC Code) and are measured in accordance with the JORC Code. For p
Slide 28: Supplementary Information
For personal use only Supplementary Information 28
Slide 29: Reconciliation of Non-GAAP measures
Reconciliation of Non-GAAP measures This report includes a discussion of results of operations and references to and analysis of certain non-GAAP measures (as described below) which are financial measures not recognised in accordance with U.S. GAAP. Non-GAAP financial measures are used by the Compan
Slide 30: Reconciliation of Non-GAAP measures
Reconciliation of Non-GAAP measures Consolidated Balance Sheet December 31, Consolidated Balance Sheet December 31, June 30, 2020 June 30, 2020 (US$ Thousands) 2019 (US$ Thousands) 2019 For personal use only Assets Liabilities Current assets: Current liabilities: Cash and restricted cash 36,324 26,5
Slide 31: Reconciliation of Non-GAAP measures
Reconciliation of Non-GAAP measures For personal use only Consolidated Income Statement June 30, 2020 June 30, 2019 (US$ Thousands) Coal revenues 605,699 919,329 Coal revenues from related parties 89,118 293,158 Other revenues 18,849 21,848 Total revenues 713,666 1,234,335 Cost of coal revenues 481,
Slide 32: Reconciliation of Non-GAAP measures
Reconciliation of Non-GAAP measures Consolidated Statement of Cash Flows June 30 June 30, (US$ Thousands) 2020 2019 For personal use only Cash Flows From Operating Activities: Consolidated Statement of Cash Flows June 30 June 30, Net income (123,196) 214,326 (US$ Thousands) 2020 2019 Adjustments to
Slide 33: Reconciliation of Non-GAAP measures
Reconciliation of Non-GAAP measures For personal use only Adjusted EBITDA reconciliation June 30, 2020 June 30, 2019 Mining Costs per tonne reconciliation June 30, 2020 June 30, 2019 (US$ Thousands) (US$ Thousands) Net Income (123,196) 214,326 Total costs and expenses 765,303 914,744 Add: Depreciati
Slide 34: Reconciliation of Non-GAAP measures
Reconciliation of Non-GAAP measures Realised Pricing reconciliation For personal use only Australian June 30, 2020 Operations U.S. Operations Consolidated (US$ Thousands, except for volume data) Total Revenues 473,555 240,111 713,666 Less: Other revenues 15,074 3,775 18,849 Total coal revenues 458,4
Slide 35: Reconciliation of Non-GAAP measures
Reconciliation of Non-GAAP measures For personal use only Mining Costs per tonne reconciliation Other / June 30, 2020 Australia United States Corporate Total (US$ Thousands, except for volume data) Total costs and expenses 506,686 244,891 13,726 765,303 Less: Selling, general and administrative expe
Slide 36: Reconciliation of Non-GAAP measures
Reconciliation of Non-GAAP measures For personal use only Mining Costs per tonne reconciliation Other / June 30, 2019 Australia United States Corporate Total (US$ Thousands, except for volume data) Total costs and expenses 564,658 331,930 18,156 914,744 Less: Selling, general and administrative expe
Slide 37: Contacts
Contacts For personal use only INVESTORS: INVESTORS: MEDIA: Matt Sullivan Aidan Meka Brett Clegg P: +61 412 157 276 P: +61 428 082 954 P: +61 487 436 985 HY20 Results Presentation 37
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