Annual Review 2022

FY22 Highlights

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About Coronado

About Coronado

Coronado Global Resources Inc. (ASX:CRN) is a leading international producer of high-quality metallurgical coal (met coal), which is an essential element in the production of steel. Our coals, transformed in the steelmaking process, support the manufacture of everyday steel-based products – including steel needed for the manufacture of renewable energy infrastructure. Coronado is one of the largest met coal producers globally, supplying customers on five continents with a range of high-quality coals.Our mining operations and development projects are located in Queensland, Australia and in Pennsylvania, Virginia and West Virginia in the United States of America (U.S.). We are committed to operating in an ethical and sustainable manner and supporting the local communities in which we operate. 

FY22 Full Year Results

Coronado finished the year in a very strong financial position. We delivered substantial increases in Revenue, EBITDA and Net Profit and returned the balance sheet to a Net Cash position. These positive results have benefited from the recent high price environment, but also from the hard decisions taken in mid-2021 to restructure our debt arrangements as we completed a comprehensive $550 million refinancing package, which enhanced liquidity and provided a more flexible capital structure moving forward.ASX Announcement2022 Annual Report

CARE Values

About Coronado

About Coronado

Coronado Global Resources Inc. (ASX:CRN) is a leading international producer of high-quality metallurgical coal (met coal), which is an essential element in the production of steel. Our coals, transformed in the steelmaking process, support the manufacture of everyday steel-based products – including steel needed for the manufacture of renewable energy infrastructure. Coronado is one of the largest met coal producers globally, supplying customers on five continents with a range of high-quality coals.Our mining operations and development projects are located in Queensland, Australia and in Pennsylvania, Virginia and West Virginia in the United States of America (U.S.). We are committed to operating in an ethical and sustainable manner and supporting the local communities in which we operate. 

FY22 Full Year Results

Coronado finished the year in a very strong financial position. We delivered substantial increases in Revenue, EBITDA and Net Profit and returned the balance sheet to a Net Cash position. These positive results have benefited from the recent high price environment, but also from the hard decisions taken in mid-2021 to restructure our debt arrangements as we completed a comprehensive $550 million refinancing package, which enhanced liquidity and provided a more flexible capital structure moving forward.ASX Announcement2022 Annual Report

CARE Values

Operational Overview

Curragh

LocationBowen Basin in Central Queensland. Covers approximately 256km2
Year Opened1983
Year Acquired2018
Reserves254.0 Mt
Resources925.0 Mt
2022 saleable production9.8 Mt

Number of active mines1

Two opencut mines, Curragh Main and Curragh North, utilising draglines and truck/shovel

Types of coal products

High-quality low-vol HCC, SCC, PCI and thermal coal

Key customers/markets

Met coal exported to international steel mills throughout Asia, Europe and South America. Thermal coal primarily for use by Australian domestic power station (Stanwell)

Expansion projects

Curragh North Underground1Active mines at December 2022

Buchanan

LocationNear town of Oakwood in Buchanan County, Virginia within the CAPP geological province. Covers approximately 357 km2
Year Opened1983
Year Acquired2016
Reserves154.0 Mt
Resources208.0 Mt
2022 saleable production4.0 Mt

Number of active mines1

One underground mine with two longwall mining systems

Types of coal products

Low-vol HCC and premium low-vol PCI coal

Key customers/markets

North America customers and export destinations, including China, India, Europe and South America

Expansion projects

Surface works ot increase the raw coal storage area and the installation of a second set of skips to increase hoisting capacity

1Active mines at December 2022

Logan

LocationBoone, Logan and Wyoming Counties in southern West Virginia, within the CAPP geological province. Covers a 104 km2 area
Year Opened2005
Year Acquired2014
Reserves138.0 Mt
Resources253.0 Mt
2021 saleable production2.1 Mt

Number of active mines1

Four underground mines (Lower War Eagle, Winifrede, Eagle #1, Muddy Bridge) (bord and pillar continuous miner) and one surface mine (Toney Fork/Elkick area/contour)

Types of coal products

High quality high-vol HCC and SCC met coals, PCI coal and thermal coal

Key customers/markets

North America-steel makers and export destinations, including Europe, South America and Asia

1Active mines at December 2022

Greenbrier

LocationGreenbrier and Nicholas Counties of West Virginia, within the CAPP geological province. Covers approximately 176 km2
Year Opened2008
Year Acquired2013
Reserves12.0 Mt
Resources55.0 Mt
2022 saleable production0.0 Mt

Number of active mines

Greenbrier complex is currently idle and in care, maintenance and rehabiliation status. One underground mine (Mountaineer 1 – idle from March 2020) and one surface mine (Midland Surface – idle from March 2020)

Types of coal products

Premium quality mid-vol met coal, PCI and thermal coal (including activated carbon specialty markets)

Key customers/markets

North America steel makers and export destinations, including Europe, Asia and South America

1Active mines at December 2022

Curragh

LocationBowen Basin in Central Queensland. Covers approximately 256km2
Year Opened1983
Year Acquired2018
Reserves254.0 Mt
Resources925.0 Mt
2022 saleable production9.8 Mt

Number of active mines1

Two opencut mines, Curragh Main and Curragh North, utilising draglines and truck/shovel

Types of coal products

High-quality low-vol HCC, SCC, PCI and thermal coal

Key customers/markets

Met coal exported to international steel mills throughout Asia, Europe and South America. Thermal coal primarily for use by Australian domestic power station (Stanwell)

Expansion projects

Curragh North Underground1Active mines at December 2022

Buchanan

LocationNear town of Oakwood in Buchanan County, Virginia within the CAPP geological province. Covers approximately 357 km2
Year Opened1983
Year Acquired2016
Reserves154.0 Mt
Resources208.0 Mt
2022 saleable production4.0 Mt

Number of active mines1

One underground mine with two longwall mining systems

Types of coal products

Low-vol HCC and premium low-vol PCI coal

Key customers/markets

North America customers and export destinations, including China, India, Europe and South America

Expansion projects

Surface works ot increase the raw coal storage area and the installation of a second set of skips to increase hoisting capacity

1Active mines at December 2022

Logan

LocationBoone, Logan and Wyoming Counties in southern West Virginia, within the CAPP geological province. Covers a 104 km2 area
Year Opened2005
Year Acquired2014
Reserves138.0 Mt
Resources253.0 Mt
2021 saleable production2.1 Mt

Number of active mines1

Four underground mines (Lower War Eagle, Winifrede, Eagle #1, Muddy Bridge) (bord and pillar continuous miner) and one surface mine (Toney Fork/Elkick area/contour)

Types of coal products

High quality high-vol HCC and SCC met coals, PCI coal and thermal coal

Key customers/markets

North America-steel makers and export destinations, including Europe, South America and Asia

1Active mines at December 2022

Greenbrier

LocationGreenbrier and Nicholas Counties of West Virginia, within the CAPP geological province. Covers approximately 176 km2
Year Opened2008
Year Acquired2013
Reserves12.0 Mt
Resources55.0 Mt
2022 saleable production0.0 Mt

Number of active mines

Greenbrier complex is currently idle and in care, maintenance and rehabiliation status. One underground mine (Mountaineer 1 – idle from March 2020) and one surface mine (Midland Surface – idle from March 2020)

Types of coal products

Premium quality mid-vol met coal, PCI and thermal coal (including activated carbon specialty markets)

Key customers/markets

North America steel makers and export destinations, including Europe, Asia and South America

1Active mines at December 2022

FY22 Performance Summary

For the Year Ended 31 December 2022


1 All volumes are quoted in metric tonnes

Some numerical figures in the document have been subject to rounding adjustments. Accordingly, numerical figures shown as totals may not equal the sum of the figures that follow them.

Steel Starts Here

Coronado is a leading metallurgical coal producer and trusted supplier to the global steel industry.
Metallurgical coal is an essential ingredient in the production of steel, which is the most utilised metal in the world and an essential material underpinning social and economic growth. Steel’s strength and durability make it critical in the construction of major infrastructure projects (including renewable energy infrastructure), transportation technology, electrical equipment, and everyday household goods such as appliances.As the world’s population continues to grow and urbanise, steelmakers and their suppliers will play a vital role in providing quality products that support a wide variety of uses well into the future.
Production of Steel

When iron is combined with carbon, recycled steel, and other elements, it is transformed into a much stronger material called Steel which can be 1,000 times stronger than iron.

Wide Use of Steel

Steel is used in almost every aspect of the world’s infrastructure, including buildings, bridges, rail systems and houses, as well as in motor vehicles and everyday white goods. It is also essential to electric vehicles and wind turbines and is a critical component of other low-carbon technologies such as hydro, solar and nuclear energy.

Met coal is therefore recognised as an essential building block in the world’s transition to renewable energy and a low-carbon economy.

Total global crude steel production reached 1.8 billion tonnes in 2022. Steel production is broadly used as follows:

Metallurgical coal, a fundamental ingredient in the production of steel, enables the construction of renewable energy infrastructure which is critical for the transition to a low-carbon economy.

Source: All statistics based on market research that assumes approximately 780 kilograms (kg) of Met Coal to make one tonne of steel.

(a) Data sourced from https://www.goldengate.org/bridge/history-research/statistics-data/design-construction-stats;

(b) Data sourced from https://info.cecr.in/empire-state-building/;

(c) Data sourced from World Steel Association;

(d) Data sourced from Queensland Resources Council and World Steel Association.

Its multi-functional nature allows for broad use in everything from major infrastructure projects, to transport including cars and airplanes, and even common household appliances. Steel is also a core component of next generation renewable energy solutions such as solar, wind and hydro, and can also be recycled, making it uniquely sustainable material to be used for generations to come.

Wide Use of Steel

Steel is used in almost every aspect of the world’s infrastructure, including buildings, bridges, rail systems and houses, as well as in motor vehicles and everyday white goods. It is also essential to electric vehicles and wind turbines and is a critical component of other low-carbon technologies such as hydro, solar and nuclear energy.

Met coal is therefore recognised as an essential building block in the world’s transition to renewable energy and a low-carbon economy.

Total global crude steel production reached 1.8 billion tonnes in 2022. Steel production is broadly used as follows:

Metallurgical coal, a fundamental ingredient in the production of steel, enables the construction of renewable energy infrastructure which is critical for the transition to a low-carbon economy.

Source: All statistics based on market research that assumes approximately 780 kilograms (kg) of Met Coal to make one tonne of steel.

(a) Data sourced from https://www.goldengate.org/bridge/history-research/statistics-data/design-construction-stats;

(b) Data sourced from https://info.cecr.in/empire-state-building/;

(c) Data sourced from World Steel Association;

(d) Data sourced from Queensland Resources Council and World Steel Association.

Its multi-functional nature allows for broad use in everything from major infrastructure projects, to transport including cars and airplanes, and even common household appliances. Steel is also a core component of next generation renewable energy solutions such as solar, wind and hydro, and can also be recycled, making it uniquely sustainable material to be used for generations to come.

Sustainability of Steel

Steel is essential to modern society. Steel protects and provides strong frameworks for our buildings. It can be found in rails, roads, vehicles and domestic appliances. Steel delivers our food and water and enables energy generation and transmission.

Steel is inextricably linked with economic growth and prosperity. It has enabled our modern way of life. It has spurred economic growth, lifting millions of people out of poverty, and continues to do so around the world today.

Steel is also a core component of next generation renewable energy solutions such as solar and wind farms and can also be recycled, making it a uniquely sustainable material to be used for generations to come.

Steel is 100% recyclable and can be reused infinitely. On average new steel products contain 30% recycled steel. Steel products are durable and last a long time, with the average life span for a steel product being 40 years.

Steel is the most recycled material in the world. In 2022, the global stel industry recycled around 680 million tonnes of scrap, saving nearly 1 billion tonnes of CO2 emissions that would have been emitted from the production of virgin steel.

 Sustainability

Coronado has set a target to reduce Scope 1 and 2 emissions by 30% by 2030.

2022 Highlights

Sustainability Targets

1 Scope 1 and 2 emissions baselines are calculated in line with current methodology (as per National Greenhouse and Energy Reporting and Environmental Protection Agency Greenhouse Gas Reporting Program regulatory calculations), including estimates for present Life of Mine production profile and resource depletion plan.

  • Target refers only to Scope 1 and 2 emissions. Baselines are exclusive of any acquisitions and will be adjusted as required.
  • U.S. Scope 1 fugitive emissions reductions are based on potential performance on the Ventilation Air Methane Regenerative Thermal
    Oxidation units and historic methane concentrations throughout the Buchanan Mine.
  • To offset U.S. Scope 2 emissions from purchased electricity consumption, renewable energy certificates may be purchased.
  • Curragh baselines (based on Scope 1 and 2 emissions) do not include allowances for expansion options such as underground mining
    or accelerated open cut mining.
  • Carbon offsets may be used to achieve targets and these will be selected based on those meeting recognised standards as per the Climate Active Carbon Neutral Standard for Organisations.

2 Significant is defined as any adverse effect, or potential adverse effect (whether temporary or permanent and of whatever magnitude, duration or frequency) on an environmental value. It refers to any activity that causes, or is likely to cause, environmental harm and any event that causes or threatens serious or material environmental harm.

Coronado’s Sustainability Principles

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Support the health and wellbeing of our people by maintaining a safe workplace with the ultimate goal of zero harm.

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Respect our environment by minimising the impact of our business activities and rehabilitating affected landscapes.

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Be a valued and active member of the local communities in which we operate by delivering economic benefit and engaging in an open and transparent manner.

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Build teams of engaged and motivated individuals that understand the positive and social economic relevance of what they do.

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Operate fairly and equitably with suppliers and customers and generate superior and sustainable returns of security holders.

hand holding heart icon

Support the health and wellbeing of our people by maintaining a safe workplace with the ultimate goal of zero harm.

hand holding heart icon

Respect our environment by minimising the impact of our business activities and rehabilitating affected landscapes.

hand holding heart icon

Be a valued and active member of the local communities in which we operate by delivering economic benefit and engaging in an open and transparent manner.

hand holding heart icon

Build teams of engaged and motivated individuals that understand the positive and social economic relevance of what they do.

hand holding heart icon

Operate fairly and equitably with suppliers and customers and generate superior and sustainable returns of security holders.

Coronado’s Total Economic Contribution1

1 Tax Paid, Salaries and Wages, and Payments to Contractors and Suppliers are provided on a cash basis. Tax Paid excludes GST.

2 Total Revenue includes tax refunds.

Sustainability Report

“Ensuring we have a sustainable business is critical to our overall strategy. We are committed to evaluating the environmental, social and governance impacts of our operations and focussing on developing sustainability strategies that create value amongst our broad group of stakeholders.

In 2021 we established targets relating to emissions reductions, critical incidents and workforce diversity and I am very encouraged by the fact that we have progressed against each of these target areas in our first year of reporting against them.”

Gerry Spindler

Managing Director and Chief Executive Officer

Downloads

Bringing a Mine to Life

Exploration

Exploration represents the commencement of the mining process. Exploration activities include surveys, drilling, permits, mine technical analysis and planning, legal and financial consultation. The exploration process reflects a Company’s first economic investment to a project and neighbouring community. Coronado maintains a metallurgical coal resource base in excess of 2 billion tonnes (JORC Code). Coronado’s Mon Valley project is currently in this stage of the mine lifecycle.

Mine Design

Mine planning and analysis, site design, mining methods and infrastructure requirements are assessed. The outcome of these assessments will determine the infrastructure required at a specific mine site to allow commencement of operations, ultimately contributing to employment and the economy. All safety and environmental factors are considered and permitted before the next phase.

Mine Construction

Construction is a significant undertaking which, dependent on the project, can involve significant financial investment and provide employment and contributions to local and international communities for decades. Construction is a continuous process through the mine lifecycle. Coronado is embarking on growth projects at its Buchanan and Curragh mines to achieve incremental tonnage levels in the near future.

Production

The production phase will provide metallurgical coal to customers used in the manufacturing of steel. In 2022, Coronado sold 16.4 million tonnes to customers with 95.3% of all revenues generated from metallurgical coal sales. The remaining 4.7% was from thermal coal sales used by power plants for electricity generation in Australia. Coronado has a reserve and resource base for metallurgical coal production in excess of 20 years in Australia and the U.S.

Rehabilitation

Rehabilitation is a key component of the mine life cycle. Coronado recognises the value of successful rehabilitation to its local environment and the surrounding communities.   In 2022, Coronado recognised Asset Retirement Obligations (ARO) of US$138.5 million for future mine life closures and rehabilitation efforts.  Coronado progressively rehabilitates disturbed areas as mining progresses and is compliant with legislative requirements in both Australia and the U.S.

Exploration

Exploration represents the commencement of the mining process. Exploration activities include surveys, drilling, permits, mine technical analysis and planning, legal and financial consultation. The exploration process reflects a Company’s first economic investment to a project and neighbouring community. Coronado maintains a metallurgical coal resource base in excess of 2 billion tonnes (JORC Code). Coronado’s Mon Valley project is currently in this stage of the mine lifecycle.

Mine Design

Mine planning and analysis, site design, mining methods and infrastructure requirements are assessed. The outcome of these assessments will determine the infrastructure required at a specific mine site to allow commencement of operations, ultimately contributing to employment and the economy. All safety and environmental factors are considered and permitted before the next phase.

Mine Construction

Construction is a significant undertaking which, dependent on the project, can involve significant financial investment and provide employment and contributions to local and international communities for decades. Construction is a continuous process through the mine lifecycle. Coronado is embarking on growth projects at its Buchanan and Curragh mines to achieve incremental tonnage levels in the near future.

Production

The production phase will provide metallurgical coal to customers used in the manufacturing of steel. In 2022, Coronado sold 16.4 million tonnes to customers with 95.3% of all revenues generated from metallurgical coal sales. The remaining 4.7% was from thermal coal sales used by power plants for electricity generation in Australia. Coronado has a reserve and resource base for metallurgical coal production in excess of 20 years in Australia and the U.S.

Rehabilitation

Rehabilitation is a key component of the mine life cycle. Coronado recognises the value of successful rehabilitation to its local environment and the surrounding communities.   In 2022, Coronado recognised Asset Retirement Obligations (ARO) of US$138.5 million for future mine life closures and rehabilitation efforts.  Coronado progressively rehabilitates disturbed areas as mining progresses and is compliant with legislative requirements in both Australia and the U.S.

Strong Metallurgical Coal Demand Through 2050

Growth for seaborne Met coal is underpinned by Indian demand; Primary source growth from Australia

Global seaborne metallurgical coal demand is forecast to grow 48% to 446 million tonnes by 2050, led primarily by blast furnace steel production in India. India steel growth is projected to increase by 218% to 392 million tonnes by 2050.

India’s seaborne metallurgcial coal demand is forecasted to grow 195% to 186 million tonnes by 2050. Coronado is well positioned as India remains one of Coronado’s largest export markets.

Notes: Data sourced from Wood Mackenzie July 2022 Coal Market Metallurgical Trade Long-term Outlook to 2050; Mmt = Million metric tonnes. Rounding has been applied.

Steel Demand Outlook Remains Firm

India steel production anticipated to grow year-on-year due to urbanisation and industrialisation

Global seaborne metallurgical coal supply is forecast to match demand with Australia expected to continue to be the dominant seaborne producer. Australian supply is forecasted to increase from 171 million tonnes in 2022 to 271 million tonnes in 2050. Production growth is expected to be supported by a combination of brownfield expansion and greenfield development.

Seaborne metallurgical coal supply growth is critical to meeting steel demand expectations and is likely to be impacted by three core issues:

1) access to financing for greenfield developments
2) permitting of projects
3) need for high-quality steel for infrastructure (including renewable energy infrastructure)

Notes: (1) Data sourced from Wood Mackenzie January 2023 GDP Forecasts. (2) Data sourced from Wood Mackenzie July 2022 Coal Market Service Mettalurgical Trade Long-term Outlook; Mmt = Million metric tonnes. Rounding has been applied.

Board of Directors