Annual Review 2021

FY20 Highlights

25.2Mt

ROM Production

17.0Mt

Saleable Production

18.2Mt

Sales Volume

$1,462.3M

Sales Volume

$53.8M

Adjusted EBITDA

($226.5)M

Reported Net (loss) Income after Tax

US$76.5

Operating Costs Per Tonne Sold

US$90.5

Group Realised Metallurgical Coal Price

5.0%

Net debt decrease

25.2Mt

ROM Production

17.0Mt

Saleable Production

18.2Mt

Sales Volume

$1,462.3M

Sales Volume

$53.8M

Adjusted EBITDA

($226.5)M

Reported Net (loss) Income after Tax

US$76.5

Operating Costs Per Tonne Sold

US$90.5

Group Realised Metallurgical Coal Price

5.0%

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.

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.

Read full report

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.

Download the full report

Managing the Downturn

check icon

COVID-19 Safety Protocols

Preventative measures implemented across all mines in Australia and the US to protect the health of our workforce.

check icon

Restart US Operations

Buchanan and Logan resumed operation on 1 June after being idled on 30 March. Operating at lower levels that meet domestic and export contracts. Greenbrier remains idle.

check icon

2020 Capex Review

2020 capex reduced by 40% from original guidance range of US$190 – 210 million. Curragh Expansion deferred until met coal prices normalize.

check icon

Bank Covenant Waiver

Agreed with SFA lenders to waive compliance with the financial covenants until 28 February 2021.

check icon

Equity Raising

Provides additional liquidity, improves credit metrics and increases free float (which sets the company up for potential index inclusion in the future).

check icon

Further Bank Covenant Waiver

Further agreed with SFA lenders to waive compliance with the financial covenants until 30 September 2021 and to release certain assets from existing security package.

check icon

Inventory Management

Inventory levels are actively managed to achieve balance between stockpiling costs and meeting customers’ demand, as well as positioning for a recovery in met coal prices.

check icon

Inventory Management

Inventory levels are actively managed to achieve balance between stockpiling costs and meeting customers’ demand, as well as positioning for a recovery in met coal prices.

check icon

Production Right Sizing

Production rates have been analyzed to ensure operations can now responding to the current pricing environment.

clock icon

Other Liquidity Levers

Potential liquidity levers have been identified. Detailed review of the Company’s capital structure.

Legend:

Implemented Initiatives

New Initiatives

Potential Future Initiatives

Completed

Ongoing

Operational Overview

FY20 Performance Summary

For the Year Ended 31 December 2020

¹ All References to "EBITDA" means EBITDA adjusted for FX and non-recurring items
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.

Source: World Steel Association

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.

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.

Sustainability Report

Downloads

Sustainability Report
Sustainability Report Databook

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

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

Coronado’s unique position

As a business focused on supplying global steel producers with high quality metallurgical coal, Coronado has a fundamental role to play in continued output of this essential material which supports both a sustainable global environment and continued economic growth.

We have become a leader in the metallurgical coal industry over recent years, demonstrating a track record of making value accretive acquisitions, driving production growth and increased sales from our unique portfolio of assets. Underpinning Coronado’s performance is a clear focus on extracting higher returning incremental tonnes of metallurgical coal, optimising our product mix, and improvement in operating efficiencies. With more than one billion tonnes of reserves and resources and a mine life of more than 20 years for each of the company’s major assets, Coronado is set to become a key player in the global metallurgical coal market over the long term.

Our operations are situated in two of the largest and most productive metallurgical coal basins in the world, the Bowen Basin in Queensland, Australia and the Central Appalachian region of the US. This geographic exposure has provided an effective hedge against a difficult operating environment during the past year, particularly in the second half of 2019, which was largely defined by fluctuations in global demand and trade restrictions between the US and China.

Despite the recent global headwinds that have been faced by the resources sector, we remain firmly focused on what we can control as a company including operational costs, a strong balance sheet, and our focused business strategy relative to our peers. During the last year we have demonstrated our ability to operate as efficiently as anyone in the industry, while also tailoring production to meet the needs of our customers.

Continual optimisation of our assets and product remains a key strategic pillar as we move through the commodity cycle. The results of 2019 clearly show this, with Coronado increasing profits from similar production and sales volumes compared to the prior year.

As we drive further efficiencies and incremental growth through our mining operations, we are well positioned to take advantage of the opportunities ahead of us, both organic and inorganic, thanks to a sound financial position and a disciplined approach to investment and capital expenditure.

This financial strength has also supported Coronado’s ongoing commitment to regular distributions for our shareholders, which since listing on the ASX in October 2018, now total 74.5 cents per CDI (USD).

Positive momentum with key objectives

It was incredibly pleasing to see our team successfully achieve these objectives, most of which were focused on our Curragh Mine in Australia, which was acquired in 2018, and has transformed Coronado into the largest dedicated metallurgical coal producer globally. Since the acquisition of Curragh, we have extracted significant improvements in operating efficiency in the performance of the draglines and the wash plant. This has been key to our ability to reduce operating costs measured on a per tonne basis. Our ability to manage mines as efficiently as possible will ensure that Coronado can withstand the peaks and troughs of the commodity markets.

At Curragh, we have also acquired additional reserves through the Stanwell Reserved Area and developed an accelerated expansion plan for the mine and secured the necessary rail and port infrastructure to support this expansion along with planned blending opportunities. Additional port capacity and rail haulage agreements that are now in place will allow Coronado to increase saleable production to 15Mt in coming years, while also providing headroom for further growth.

Expanding metallurgical coal production to 74% of total production during the year was another key objective of our team. In addition to the expansion plans at Curragh, we were able to reconfigure our Logan Mine Complex in the US to introduce three new sources which increased metallurgical coal revenue for the year by 28.2% to $250 million.

In contrast, the decision was made to suspend thermal coal production at the Logan complex’s Toney Fork surface mine, Coronado’s only dedicated source of thermal coal. The impacts of suspending thermal coal production have been minimal to our business, with reduced thermal volumes offset by the production of higher quality metallurgical coal from Logan’s new mine areas.

Our final objective was a redesign of our Buchanan Mine in the US to extend its life and improve quality overall, which was carried out successfully during the year. While costs at Buchanan rose during the year due to idled mine operations resulting from US China trade restrictions and tariffs and softening global demand, Buchanan remains a prestige asset with excellent management and mining talent.

Annual Review 2021

FY20 Highlights

About Coronado

Chairman’s and CEO’s Report

Meeting the COVID-19 Challenge

Managing the Downturn

COVID-19 Safety Protocols

Restart US Operations

2020 Capex Review

Bank Covenant Waiver

Equity Raising

Further Bank Covenant Waiver

Inventory Management

Inventory Management

Production Right Sizing

Other Liquidity Levers

Operational Overview

FY20 Performance Summary

Steel Starts Here

Production of Steel

Wide use of Steel

Sustainability of Steel

reduced by 60%

highest strength to weight ratio

Sustainability

Sustainability Report

Downloads

Board of Directors

About Coronado

Coronado’s unique position

Read more

Positive momentum with key objectives

Read more