Annual Review 2020
FY20 Highlights
About Coronado
About Coronado
Coronado Global Resources Inc. is one of the world’s largest producers of high-quality metallurgical coal. Through our market-leading expertise, we operate some of the safest, cleanest and lowest cost mines in the industry. Our coals, transformed in the steel making process, support the manufacture of every-day steel-based products and social infrastructure that enrich lives around the world.
FY20 Full Year Results
FY20 Full Year Results
From the outset, the 2020 financial year presented a range of significant challenges to our business and our people. The first half was particularly difficult, and I am proud of the way in which our people responded to a constantly changing environment and slowing global economy.
Meeting the COVID-19 Challenge
Meeting the COVID-19 Challenge
The past year has been defined by a single, historical global crisis. The COVID-19 pandemic has distressed communities across the world, disrupted global markets, and changed the way we interact with one another. The virus has had an impact on every aspect of our business. It not only created disruption and uncertainty, but it also provided us the opportunity to demonstrate our genuine commitment to the health and safety of our employees and their families. We believe the company’s stakeholders will remember how they were treated during COVID-19; that we further built our reputation for being concerned about the well-being of our employees and that we distinguished ourselves among our competitors.
Managing through COVID-19 and the Market Downturn in 2020
Legend:
COVID-19 initiatives
Operational Overview
FY20 Performance Summary
For the Year Ended 31 December 2020
2 All volumes are quoted in metric tonnes
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, 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 essential to modern society and is used in a range of products from rails, roads and vehicles to steel cans. It is used to deliver our food and water and enables energy generation and transmission. Steel is an essential material in the construction of generators and motors for electric vehicles and wind turbines and will play a key role in the transition to a low-carbon environment.
The amount of steel used in the world reached 1.7 billion tonnes in 2019. Steel markets are broadly as follows:
Sustainability of Steel
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.
The strength and durability of steel has made it the most important material in our everyday lives.
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 and wind farms and can also be recycled, making it uniquely sustainable material to be used for generations to come.
Energy consumption per tonne of steel
reduced by 60%
since the 1960s, which has contributed to a significant decrease in CO2 intensity
Steel offers the most economic and the
highest strength to weight ratio
of any building material.
Sustainability
Coronado’s Sustainability Principles
Support the health and wellbeing of our people by maintaining a safe workplace with the ultimate goal of zero harm.
Respect our environment by minimising the impact of our business activities and rehabilitating affected landscapes.
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.
Build teams of engaged and motivated individuals that understand the positive social and economic relevance of what they do.
Operate fairly and equitably with suppliers and customers and generate superior and sustainable returns for security holders.
Bringing a Mine to Life
Exploration
Mine design
Mine construction
Production
Rehabilitation
Positive Metallurgical Coal Outlook
Australia is expected to continue to be the dominant producer in the supply of seaborne metallurgical coal. Supply is forecasted to increase from 175Mt in 2020 to 190Mt in 2030. Expected production growth is supported by a combination of brownfield expansion and greenfield development.
Growth in supply critical to meeting expected demand growth 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
Board of Directors
William (Bill) Koeck
- Independent Non-Executive Director and Chair
- Compensation and Nominating Committee (Chair)
- Audit Governance & Risk Committee
- Appointed: 21 September 2018
Garold (Gerry) Spindler
- Managing Director and CEO
- Appointed: 21 September 2018
Greg Pritchard
- Independent Non-Executive Director
- Audit Governance and Risk Committee (Chair)
- Health Safety Environment Community Committee
- Compensation and Nominating Committee
- Appointed: 21 September 2018
Philip Christensen
- Independent Non-Executive Director
- Health Safety Environment Community Committee (Chair)
- Audit Governance and Risk Committee
- Appointed: 21 September 2018
Laura Tyson
- Non-Executive Director
- Compensation and Nominating Committee
- Appointed: 13 August 2018
Sir Mick Davis
- Non-Executive Director
- Appointed: 25 June 2020
Annual Review 2020
FY20 Highlights
25.2Mt
ROM Production
Saleable Production
Sales Volume
$1,462.3M
Sales Volume
Adjusted EBITDA
($226.5)M
Reported Net (loss) Income after Tax
US$76.5
Operating Costs Per Tonne Sold
Group Realised Metallurgical Coal Price
Net debt decrease
About Coronado
Coronado Global Resources Inc. is one of the world’s largest producers of high-quality metallurgical coal. Through our market-leading expertise, we operate some of the safest, cleanest and lowest cost mines in the industry. Our coals, transformed in the steel making process, support the manufacture of every-day steel-based products and social infrastructure that enrich lives around the world.
Chairman’s and CEO’s Report
As we drive further efficiency and incremental growth through our mining operations, we are well positioned to take advantage of the opportunities ahead of us.
Meeting the COVID-19 Challenge
The past year has been defined by a single, historical global crisis. The COVID-19 pandemic has distressed communities across the world, disrupted global markets, and changed the way we interact with one another. The virus has had an impact on every aspect of our business. It not only created disruption and uncertainty, but it also provided us the opportunity to demonstrate our genuine commitment to the health and safety of our employees and their families. We believe the company’s stakeholders will remember how they were treated during COVID-19; that we further built our reputation for being concerned about the well-being of our employees and that we distinguished ourselves among our competitors.
Managing the Downturn
Legend:
Implemented Initiatives
Operational Overview
Curragh
Location
Bowen Basin in Central Queensland
Year Opened
1983
Year acquired
2018
Reserves
280 Mt
Resources
1,017 Mt
2020 saleable production
12.9 Mt
Number of active mines1
Two opencut mines, Curragh East and Curragh North, utilising draglines, a rope shovel and hydraulic excavators
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
Stanwell Reserve Area, MDL 162
1 Active mines at May 2021
Buchanan
Location
Near town of Oakwood in Buchanan County, Virginia within the CAPP geological province. Covers approximately 357 km2
Year Opened
1983
Year acquired
2016
Reserves
163 Mt
Resources
196 Mt
2020 saleable production
3.4 Mt
Number of active mines1
One underground mine with longwall mining system
Types of coal products
Low-vol HCC and premium low-vol PCI coal
Key customers/markets
North America customers and export destinations, including China, Europe and South America
1 Active mines at May 2021
Logan
Location
Boone, Logan and Wyoming Counties in southern West Virginia, within the CAPP geological province. Covers a 104 km2 area
Year Opened
2005
Year acquired
2014
Reserves
141 Mt
Resources
265 Mt
2020 saleable production
1.6 Mt
Number of active mines1
Four underground mines (Lower War Eagle, Powellton, Eagle 1, Muddy Bridge) and one surface mine (Toney Fork – idle from March 2020)
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 India
Expansion projects
3.2 Mt mineable Reserves adjacent to existing Logan operations
1 Active mines at May 2021
Greenbrier
Location
Greenbrier and Nicholas Counties of West Virginia, within the CAPP geological province, Covers approximately 176 km2
Year Opened
2008
Year acquired
2013
Reserves
12 Mt
Resources
55 Mt
2020 saleable production
0.1 Mt
Number of active mines1
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
1 Active mines at May 2021
FY20 Performance Summary
For the Year Ended 31 December 2020
2 All volumes are quoted in metric tonnes
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, 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 essential to modern society and is used in a range of products from rails, roads and vehicles to steel cans. It is used to deliver our food and water and enables energy generation and transmission. Steel is an essential material in the construction of generators and motors for electric vehicles and wind turbines and will play a key role in the transition to a low-carbon environment.
The amount of steel used in the world reached 1.7 billion tonnes in 2019. Steel markets are broadly as follows:
Sustainability of Steel
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.
The strength and durability of steel has made it the most important material in our everyday lives.
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 and wind farms and can also be recycled, making it uniquely sustainable material to be used for generations to come.
Energy consumption per tonne of steel
reduced by 60%
since the 1960s, which has contributed to a significant decrease in CO2 intensity
Steel offers the most economic and the
highest strength to weight ratio
of any building material.
Sustainability
Coronado’s Sustainability Principles
Bringing a Mine to Life
Exploration
Mine design
Mine construction
Production
Rehabilitation
Board of Directors
- Independent Non-Executive Director and Chair
- Compensation and Nominating Committee (Chair)
- Audit Governance & Risk Committee
- Appointed: 21 September 2018
William (Bill) Koeck
Greg Pritchard
- Independent Non-Executive Director
- Audit Governance and Risk Committee (Chair)
- Health Safety Environment Community Committee
- Compensation and Nominating Committee
- Appointed: 21 September 2018
Garold (Gerry) Spindler
- Managing Director and CEO
- Appointed: 21 September 2018
Ernie Thrasher
- Non-Executive Director
- Health Safety Environment Community Committee
- Appointed: 21 September 2018
Philip Christensen
- Independent Non-Executive Director
- Health Safety Environment Community Committee (Chair)
- Audit Governance and Risk Committee
- Appointed: 21 September 2018
Sir Mick Davis
- Non-Executive Director
- Appointed: 25 June 2020