2018 full year results presentation - home - coronado global … · 2019-02-18 · 2018 full year...

2018 Full Year Results

Presentation

GERRY SPINDLERManaging Director and CEO

AYTEN SARIDASGroup Chief Financial Officer

19 February 2019

2

Section 1:

Financial & Operational Highlights

Gerry Spindler

FY18 Results Presentation

3

FY18 Highlights


Safety

✓ Achieved record safety performance across both Australian Operations (TRIFR 3.3) and US

Operations (TRIR 2.31)

Financial

✓ Total Production of 20.2Mt and Total Sales of 20.1Mt, with met coal sales of 15.8Mt in line with

Prospectus

✓ EBITDA of $595.3m, up $17.6m on Prospectus

✓ Revenue of $2,296.7m, up $17.6m on Prospectus

✓ Total dividend of US$0.31 per CDI (US$299.6m), comprised of Ordinary Dividend of US$0.06

per CDI and Special Dividend of US$0.25 per CDI

✓ Realised met coal price of $133.2/t, $2.9/t higher than Prospectus

✓ Statutory Net Income After Tax of $114.6m, adjusted for $40.5m non cash deferred tax item

✓ Underlying Net Income After Tax of $279.8m, up 1.5% above Prospectus

✓ Cost per tonne sold of $56.6/t

Notes* All tonnages throughout this presentation are metric tonnes* All amounts quoted throughout this presentation are in US$ unless otherwise stated* FY2018 values quoted on Pro-forma basis throughout this presentation unless otherwise stated

4

FY18 Highlights (Cont.)


Operational

✓ The Curragh acquisition positions Coronado as the largest dedicated met coal

producer globally, with FY18 Total Production of 20.2Mt

✓ Successfully integrated Curragh and delivered improved dragline efficiency by 8.1%

and prime strip ratio by 9.9%

✓ Increased Reserves by 82Mt1 at Curragh through the acquisition of the Stanwell

Reserved Area (SRA). Expansion Study expected to be released mid-2019

✓ Buchanan saleable production (4.7Mt) was broadly in line with forecast, ROM

production (7.3Mt) up 4.3%

Corporate

✓ Listed on the Australian Securities Exchange in October 2018

✓ Acquired new met coal Reserves adjacent to the Logan operations, providing access

to 3.2Mt surface and highwall mineable coal

✓ Strong balance sheet with US$124.9m cash balance, as at December 31, 2018 and

no drawn debt

✓ Successfully Syndicated US$350m Revolving Credit Facility and A$370m Bank

Guarantee Facility

Notes1 Before depletions as a result of production during the 18 months to 31 December 2018. Refer also section headed 2018 JORC Resource and

Reserve Statements at the end of this release

5

Achieved safest year on record with lowest reportable incident rates


Australian Operations (TRIFR) US Operations (TRIR)

18.8

14.8

5.04.2

4.93.7 3.3

0

5

10

15

20

FY12 FY13 FY14 FY15 FY16 FY17 FY18

0

3

6

9

12

15

Jan-15 Jul-15 Jan-16 Jul-16 Jan-17 Jul-17 Jan-18 Jul-18

YTD TRIR MSHA TRIR

Note* Australian Operations (TRIFR) is represented in Australian financial periods (1 July to 30 June)

1,084

2,524

311

177 155

60

201 180

957

251220

90

493 513

0

200

400

600

800

1,000

1,200

0

500

1,000

1,500

2,000

2,500

3,000

Group Curragh Buchanan Logan Greenbrier PSF Idle

Reserves Resources

6

Long life assets supported by significant Reserves & Resources

FY18 Results PresentationNote* Australian resources are estimated inclusive of 5.3% insitu moisture. United States resources are estimated on a dry basis* Refer also section headed 2018 JORC Resource and Reserve Statements at the end of this release

Reserves and Resources (Mt) as 31 December 2018

7

Section 2:

FY18 Financial Performance

Ayten Saridas

8

FY18 Strong Financial Metrics


FY18

Prospectus

FY18

Actual

Variance to

Prospectus

Production 21.2Mt 20.2Mt (1.0Mt)

Sales Volume 20.9Mt 20.1Mt (0.8Mt)

Revenue $2,279.1m $2,296.7m $17.6m

EBITDA $577.7m $595.3m $17.6m

Statutory Net Income $166.1m $114.6m ($51.5m)

Underlying Net Income $275.6m $279.8m $4.2m

Group Met Realised Price $130.3/t $133.2/t $2.9/t

Cost per tonne sold $54.6/t $56.6/t $2.0/t

Group Results Overview

9

Improved pricing drives revenue growth


Revenues $18m above Prospectus from higher realised prices and higher proportion of met coal sales

Sales Volumes impacted by rail network disruptions at Curragh, partially offset by higher shipments from Buchanan

12.2

4.8

3.1

0.8

20.9

12.0

4.8

2.6

0.7

20.1

0.0

5.0

10.0

15.0

20.0

25.0

Curragh Buchanan Logan Greenbrier Group

FY18 Prospectus FY18 Actual

Sales Volume (Mt)

1,422

514

259

81

2,279

1,482

510

235

70

2,297

-

500

1,000

1,500

2,000

2,500



Revenue (US$)

10

Capturing higher margin opportunities


78.6% of total sales derived from higher value met coal, with continued focus on reducing thermal coal production

Total Group met coal realised price above forecast with Curragh $5.8/t above expectations from improved sales mix and higher prices

78.6%

21.4%

FY18 Actual

Metallurgical Coal Thermal Coal

75.6%

24.4%

FY18 Prospectus

Metallurgical Coal Thermal Coal

148.5

109.1

130.3

154.3

107.1

133.2

80.0

100.0

120.0

140.0

160.0

Australian Operations US Operations Group


Group Sales Mix Met Coal Realised Price (US$/t)

Notes* Realised price is represented by Total Revenue by Sales Volume by operation location*Australian operations represented on a FOB basis*US Operations are represented on a FOR basis

11

FY18 EBITDA above forecast


Group Proforma EBITDA Breakdown (US$m)

12

Underlying Net Income After Tax


FY18Actual Statutory

FY18Actual Proforma

FY18Proforma Prospectus

Net income 114.6 232.9 275.6

Add back:

Stamp Duty 33.0 - -

FX Swap 11.0 - -

Curragh Acquisition Costs 6.4 6.4 -

Loss on Debt Extinguishment

40.7 - -

Non Cash Tax restructure adjustment

40.51 40.5 -

Underlying net income 246.1 279.8 275.6

Underlying Net Income After Tax (US$m)

Notes1 Statutory Net Income after Tax is affected by a non-cash and non-recurring opening adjustment relating to accounting for the pre-IPO corporate reorganisation

0

20

40

60

80

100

120


13

Competitively positioned on the met coal cost curve

2018 Full Year Results Presentation

51.053.9

62.3

92.4

54.653.1 52.4

69.9

97.9

56.6

0

20

40

60

80

100

120



Note* Costs Per Tonne is calculated on the basis of ‘Cost of Coal Revenues’ divided by ‘Total Sales Volume’

Cost Per Tonne (US$/t) Coronado Cost Curve (Actual) (US$/t)

53.1 52.4 69.9 97.9

56.6

14

FY18 Capital Expenditure


• Capex $12.7m below forecast due to timing of projects and equipment lead times

• Capex represents stay-in-business capex

• SIB capex fully funded from operating cash flows 46.2 44.0

26.0

9.0

1.8

127.0

47.2

33.2 29.2

4.2 0.5

114.3

-

20.0

40.0

60.0

80.0

100.0

120.0

140.0

Curragh Buchanan Logan Greenbrier Corporate Group


FY18 Group Capex (US$m)

Note:* Capex profile for FY18 is outlined on a Statutory basis

15

Strong operating cash flows and balance sheet


Statutory FY18 Cash Flow (US$m)

Note:* IPO Proceeds are represented on a net basis

124.9

543.8

862.9

114.2

28.1

364.8

720.1

442.3

90.6

-

200.0

400.0

600.0

800.0

1,000.0

1,200.0

Opening OperatingActivities

Borrowings Acquisition ofCurragh

IPO Proceeds Repayment ofBorrowings

Capex/disposals Other Closing Balance

16

Delivering returns to shareholders


Dividend Highlights:

- Total dividend of $299.6m

- Ordinary dividend $0.06 per CDI

- Special dividend $0.25 per CDI

- Dividend funded from available cash approx. $199.6m and

debt of approx. $100.0m, which is forecast to be repaid by

30 June 2019

- Reaffirm intention to distribute 100% of free cash flow in

FY19

- The Ordinary and Special dividend will be unfranked

Key Dates:

- “Ex” Dividend: 04 March 2019

- Record Date: 05 March 2019

- Payment Date: 29 March 2019

Note:* Prospectus EV/EBITDA is calculated on the basis of Prospectus FY19 Enterprise Value of $2,750m or equivalent to A$3,792m at an exchange rate of A$1=0.7254 being the Prospectus forecast exchange rate for FY19. Forecast

FY19 EBITDA of $737m or the equivalent to A$1,016.4m at an exchange rate of A$1=0.7254 being the Prospectus forecast exchange rate for FY19* Current EV/EBITDA is calculated on the basis of the Enterprise Value closing 15th February 2019 and mid-point FY19 forecast EBITDA of $772m or the equivalent to A$1,088.4m at an exchange rate of A$1=0.7093 closing 15

February 2019* Prospectus Dividend Yield is forecast dividend yield implied at 31 December 2019 as outlined in The Company’s Prospectus* FY19. Forecast Dividend Yield is calculated on the basis of the Company’s expectations of dividend payments (per CDI) during FY19 by divided the closing Price of $3.35 per CDI on 15 February 2019

Valuation Metrics

3.7x

2.8x

0

1

2

3

4

Prospectus Guidance

EV/EBITDA

12.4%

21.5%

0%

5%

10%

15%

20%

25%

FY19 Prospectus FY19 Forecast

Dividend Yield

17FY18 Results Presentation

Section 3:

Delivering Growth and Creating Value

Gerry Spindler

18

World class portfolio of met coal assets


MARCH 2016

Acquired

Buchanan from

CONSOL Energy

DECEMBER

2014

Acquired Logan

from Cliffs Natural

Resources

APRIL 2013

Acquired

Greenbrier from

Lehman Bros

2011 2012 20142013 20182015 2016 2017

AUGUST 2011

Coronado

founded by

Garold Spindler

and James

Campbell

MARCH 2018

Acquired Curragh

from Wesfarmers

Production

20.2Mt

19

Growth through the incremental tonne, product optimisation, new project development and acquisitions


Strategic Acquisitions

Asset Optimisation

Capital Management

• High quality metallurgical coal assets

• Long life operating assets with global supply diversity

• Sustainable low cost operations

• Low sovereign risk

• Operational scale to deliver sustainable incremental production growth

• Leverage existing capital employed to improve operation efficiency and

reduce costs

• Enhance revenue through product mix

• Strong balance sheet to support disciplined growth

• Sustainable shareholder returns

• Resilience through the cycle

20

Fifth largest met coal producer globally


- Diversified production base with total saleable

production 20.1Mt in 2018

across two significant coal basis (Bowen Basin

and CAPP region)

- Geographically diverse asset base with access

to both seaborne markets and domestic

customers.

US OperationsAustralian OperationsCoronado Group

Note: Based on FY17 met coal production


Curragh Complex

- Met coal sold by Curragh is globally recognised and valued for

consistent quality delivery

- Produces Hard Coking Coal (HCC), Semi Coking

Coals (SCC), Pulverised Coal Injection (PCI) coal and thermal coal

- Reserves of 311Mt and Resources of 957Mt at 31 December 2018

- Curragh has been operating since 1983 and in 2018 was the sixth

largest met coal mine in Australia by met coal production

Development Projects

- Stanwell Reserved Area

- MDL 162

- Both development projects will produce export met coal

Curragh is strategically located in one of the world's premier met coal producing regions

Note:* Queensland Competition Authority – Aurizon Network detailed map

Notes* Before depletions as a result of production during the 18 months to 31 December 2018. Refer also

section headed 2018 JORC Resource and Reserve Statements at the end of this release

Attractive and

well timed

acquisition

- Asset significantly de-risked and enhanced since acquisition

- Improved valuation supported by recent comparative met coal asset

transactions

Improved

Stanwell

Arrangement

- Acquired SRA in August 2018 providing operational flexibility and

extending mine life beyond 35 years

- Unlocked access to 82Mt of new Reserves

- No Export rebates are payable during the New Coal Supply Agreement

- No cash outlay for acquisition

Value creation

opportunities

identified and

already

delivering

- 8.1% improvement in dragline efficiency

- 9.9% improvement in prime strip ratios

- Investment in wash plants to improve FY19 productivity and output

capacity

- Progressing supply chain optimisation projects

- Expansion study underway to identify opportunities to mine underground

resources

22

Coronado is already unlocking significant value at Curragh


23

Incremental volumes drive substantial margin uplift


109

61

-

20

40

60

80

100

120

First 7mtpa Incremental

US$/t

FY2019 indicative incremental cost (US$/t)

Incremental tonnes at lower marginal cost

- Incremental volumes put through lower cost RG Tanna Coal

Terminal

- Incremental tonnes above 7Mtpa incur the 2 rebate being a

lower rate, increasing margins on met coal sales

- Site, rail and port infrastructure capacity supports increased

volumes

Stanwell Rebate

- Tier 1 Rebate (capped at 7 Mtpa exports): Payable on coal (and

including) 7.0 Mtpa when the reference price >A$68/t (FOB)

June 2018, escalated quarterly at 1% per annum. Rebate 25%

of difference between the reference price and A$68/t multiplied

by export tonnes; and

- Tier 2 Rebate (exports > 7 Mtpa): Payable on coal sold above

(and excluding) 7.0 Mtpa when the reference price > A$115/t

FOB (June 2018), escalated quarterly at 100% CPI (using the

applicable quarterly compounding factor). Rebate 10% of

difference between the reference price and A$115/t multiplied

by export tonnesNote:

* Tonnage rebate A$0.70 per tonne (escalated at 1% per annum since 1 July 2002 (calculated quarterly)) for the first 7.0 Mtpa of exports; and* Tonnage rebate A$0.70 per tonne (escalated at CPI since 1 July 2008 (calculated quarterly)) for any export tonnes in excess of 7.0 Mtpa; and* ROM rebate of A$2.00 per tonne (escalated quarterly for CPI increases since 1 July 2008) for coal mined from the ‘Pit U East Area’ in the Curragh North Mining Area (which originally formed part of the SRA).

24

Solid production performance in FY18, upside expected in FY19


Saleable Production by Asset (Mt)

9.2

4.6

2.0

0.8

4.6

8.7

4.7

1.9

0.6

4.3

-

2.0

4.0

6.0

8.0

10.0

Curragh Buchanan Logan Greenbrier Thermal

Prospectus Actual

Met Coal Production by Asset

25

Positioned to capitalise on a strong met coal price environment


51%

13%

37%

Hard Coking Coal Semi Coking Coal PCI

26%

9%65%

High Vol Mid Vol Low Vol

FY18 AUS Operation Sales Mix

FY18 US Operation Sales Mix

FY17 AUS Operation Sales Mix

FY17 US Operation Sales Mix

47%

15%

38%

Hard Coking Coal Semi Coking Coal PCI

27%

7%66%

High Vol Mid Vol Low Vol

26

Steady growth in BOF steel production will drive demand for met coal


1,000

1,200

1,400

1,600

1,800

2,000

2,200

2018 2020 2022 2024 2026 2028 2030 2032 2034 2036 2038 2040

Crude Steel Production Blast Furance Production

Steel Production Forecast (Mt)

0

50

100

150

200

250

300

350

400

450

2018 2020 2022 2024 2026 2028 2030 2032 2034 2036 2038 2040

Asia EMEARC Americas

Seaborne Import Demand Forecast (Mt)

* Wood Mackenize December 2018 H2 long term forecast * Wood Mackenize December 2018 H2 long term forecast


Section 4:

Outlook andGuidance

Gerry Spindler

28

Future Pipeline


OPTIMISATION INITIATIVES

SRA MINE INTEGRATION

PANGBURN-SHANER-FALLOWFIELD2

CURRAGH GROWTH STUDY1

FUTURE OPPORTUNITIES

Extremely well positioned to take advantage of organic growth opportunities

12 Months (FY19) 1 – 5 Years 5+ Years

- CHPP Optimisation (Curragh)

- Coal Seam Recovery (Curragh)

- Logan County new production sources

- Blending Optimisation (All Operations)

- Study currently underway to best integrate the

SRA into the existing mine plan

- MDL 162

- Expiry of Stanwell Rebate

Note:1Curragh Growth Study outlines studies to potentially develop an underground operation at Curragh. Further to this a review is underway to recover coal from tailings dams and to further optimise the open cut

operation2 Permitting is currently being undertaken at Pangburn-Shaner-Fallowfield

Early assessment supports uplift in production profile across the Group

FY18 Results Presentation 29

Production Growth Profile

18.5

19.0

19.5

20.0

20.5

21.0

21.5

22.0

22.5

23.0

23.5

2018 2019 2020 2021 2022 2023

Prospectus FY19 Guidance Range Growth Opportunities

Note:* The tonnes outlined in ‘Prospectus’ in the above graph outlines Coronado’s forecast production provided during in the Prospectus

* Growth Opportunities outline Coronado’s initiatives and assessment to increase production

30

Upgrade to FY19 Guidance


FY19 PROSPECTUS FY19 GUIDANCE RANGE

Production (Mt) 21.6 21.6 - 22.0

EBITDA ($m) 737 737 - 807

Cost ($pt) 51 51 - 52

Capex ($m) 160 160 - 180

Payout Ratio (%) 100 100

FY19 Guidance

31

Questions



Section 5:

Appendices

33

Glossary


Mt Million tonnes, metric

Kt Thousand tonnes, metric

ROM Run of Mine, coal mined

Strip Ratio Ratio of overburden removed to coal mined (ROM)

Sales Volume Sales to third parties

Saleable Production Coal available to sell, either washed or bypassed

Realised Price Weighted average revenue per tonne sold

FOB Free Onboard Board in the vessel at the loading port

FOR Free Onboard Rail in the railcar at the mine

TRIFR Total Reportable Injury Frequency Tate

TRIR Total Reportable Incident Rate

PCI Pulverised Coal Injection

A$ Australian dollar currency

US$ United States dollar currency

HCC Hard Coking Coal

Met Coal Metallurgical quality coal

Prospectus The Coronado Global Resources Inc Prospectus lodged with ASIC on 24 September

2018

Index Platts Prime Low Volatile HCC, US$/t FOB East Coast Australia

EBITDA Earnings Before Interest Tax Depreciation and Amorisation

Key Terms

Portfolio of high quality met coal products leveraged by well demonstrated blending expertise

34

Large and low cost met coal producer in US


Buchanan:

- One of the largest and lowest cost met coal mines operating in the US

- Buchanan has an extensive network of sales into domestic and

international steel mills

- Produces a primarily low-ash, low volatile, low Sulphur HCC.

Coronado is studying options to further leverage existing relationships

globally

- Generates 45% of Coronado’s EBITDA on a statutory segment basis

Logan & Greenbrier:

- Logan has a reputation of producing high quality High-Volatile met

coals

- The high-volatile, low-ash coal produced at the Logan mine complex

expands the blending capabilities of Coronado, providing access to a

more diverse customer base

- Greenbrier produces high quality Mid-Vol met coal domestically in the

US

35

All operations well serviced by existing transport infrastructure


- Australian operations linked to Central Queensland Coal Network

- Coal is hauled by rail to the Ports of RG Tanna Coal Terminal

(Gladstone) and Wiggins Island Coal Export Terminal (Gladstone)

- US operations have access to multiple transportation infrastructure

options including rail, road and river barge

- Coal is transported to several different locations including ports in

Baltimore, Norfolk and Newport

Overview

- Pangburn-Shaner-Fallowfield Reserves and Resources located in

Southwest Pennsylvania in established coal region in close proximity

to key customers

- Reserves included mineral deed ownership of 665km2

(approximately 95% of the Reserve area, with the remaining 5%

leased) with 4km2 surface ownership

- Coronado acquired Pangburn-Shaner-Fallowfield asset through its

acquisition of Buchanan in March 2016

Project

- Coal quality is High-Vol Met coal and thermal coal located in the

Upper Freeport Seam

- Project has potential to develop two-to-three separate mining

complexes

- Greenfields plans exist for the Pangburn-Shaner-Fallowfield

complexes with the underground mine capable of producing 2.5Mt

Reserves

and

Resources

- Reserves 147Mt and Resource 493Mt

36

Progressing Pangburn-Shaner-Fallowfield opportunity


U.S. Steel

Clairton Coke Works

ArcelorMittal

Monessen Coke Works

37

MDL 162 development project


Overview

- MDL 162 is a 100%-owned development project situated

between and adjacent to Curragh East Mining Area and

Curragh North Mining Area

- The project is expected to produce coal products suitable for

export markets

- The arrangement with Stanwell excludes the MDL 162 area

- Therefore no Stanwell royalties apply

Project

- A potential development of MDL 162 could result in an

integration of the project into Curragh mine plan (along with

continued production at the Curragh East Mining Area and

Coronado’s other development options)

- Coronado is undertaking preliminary studies to assess the

feasibility of a development of MDL 162

Russell County

- Russell County is a greenfield project located near Buchanan

- Coronado acquired the asset through its acquisition of Buchanan in March 2016

- Land is 11% owned and 89% leased

- Capable of potentially producing over 1.5Mt per year of high quality Mid-Vol met

coal with Reserves at 47Mt (with Marketable Reserves of 27 Mt)

- Reserves and Resources are in the Upper Horsepen and Lower Castle coal

seams

Amonate

- The Amonate mining complex is an idled established permitted complex

- Infrastructure capable of producing over 2.0Mt per year

- Coronado controls four coal seams, of which 98% are owned and 2% leased

- High quality Mid-Vol and mid-Sulphur met coal Reserves of 133 Mt (with

Marketable Reserves of 56 Mt) with an implied Reserve life of 28 years, assuming

a production rate of 2.0 Mt per annum

- Amonate has a production capacity of 0.8 – 2.0 Mt per annum

- The plant a Amonate is in generally good mechanical condition and positioned to

be restarted with a matter of months, although at present Coronado has no plans

to restart production at the mining complex

38

Other development opportunities


39

Statutory Income Statement (US$m)


(million $) Actual FY18 Prospectus FY18 Variance

Coal revenue 1,945.6 1,929.6 16.0 Other revenue 34.9 33.3 1.6

Total Revenue 1,980.5 1,962.9 17.6 Cost of coal revenues 992.0 995.9 3.9 Freight 117.7 122.9 5.2 Depreciation, depletion and amortization 162.1 145.5 (16.6)Stanwell rebate 127.7 122.6 (5.1)Other royalties 181.7 167.7 (14.0)Selling, general & administration expenses 66.2 70.2 4.0

Operating income 333.1 338.1 (5.0)Interest expense (58.0) (111.5) 53.5 Loss on debt extinguishment (58.1) (3.9) (54.2)Other, net (27.2) (24.2) (3.0)

Net income before tax 189.8 198.5 (8.7)

Tax (expense)/benefit (75.2) (32.4) (42.8)

Net income after tax 114.6 166.1 (51.5)

40

Statutory EBITDA reconciliation (US$m)


(million $) Actual FY18 Prospectus FY18 Variance

Net income after tax 114.6 166.1 (51.5)

Add: Income tax (benefit) expense 75.2 32.4 42.8

Add: Loss on debt extinguishment 58.1 3.9 54.2

Add: other net (excluding FX swap) 9.0 - 9.0

Add: Interest expense 58.0 111.5 (53.5)

EBIT 314.9 313.9 1.0

Add: Depreciation, depletion and amortisation 162.1 145.5 16.6

EBITDA 477.0 459.4 17.6

41

Reserves Reconciliation


OperationOpening balance at 1

Jan 2018Additions Depletion

Closing balance at 31

December 2018

Curragh 2521 82 23 311

Buchanan 185 0 8 177

Logan 158 3 6 155

Greenbrier 61 0 1 60

Amonate 133 0 0 133

Russell 47 0 0 47

Pennsylvania 201 0 0 201

Total 1,037 85 38 1,083

1 Balance as at 30 June 2017. JORC estimates not calculated 1 January 2018

Group Reserves Reconciliation

42

FY19 pricing forecast


Mine Benchmark WoodMackenzie Forecast Price (US$t, Nominal)

Q4

FY18

Q1

FY19

Q2

FY19

Q3

FY19

Q4

FY19

CurraghQueensland HCC FOB

(Qnsl LVCC)217.14 212.52 195.91 181.80 184.83

CurraghNewcastle SSCC

(NSW SSCC)141.14 144.52 137.13 127.26 129.38

Curragh ULV PCI FOB Aus149.83 153.02 143.01 134.53 136.77

Buchanan

Low-Mid Vol. FOB USEC

(US Hamptons Road Low-Mid

Vol HCC FOB)

192.60 210.40 193.95 179.99 182.98

Logan & GreenbrierHigh Vol. A FOB USEC

(US Hamptons Road High Vol A HCC FOB)199.95 214.65 197.87 183.62 186.68

LoganHigh Vol.B FOB USEC (US Hamptons Road High Vol B HCC FOB)

186.74 182.77 168.48 156.35 158.95

1 Woodmac December 2018 H2 long term forecast

43

Statutory Cash Flow Statement (US$m)


FY2018 Actual (Stat Basis)

Statutory Forecast$m Total FY2018 Variance

Net income (loss) 114.6 166.1 (51.5)

Depreciation, depletion and amortisation 162.4 145.5 16.9

Amortisation of Stanwell and Other below market CSA (31.9) (27.6) (4.3)

Other non-cash items 27.9 75.5 (47.6)

Reclamation of asset retirement obligations (5.0) (4.3) (0.7)

Change in Deferred Tax 55.1 6.3 48.8

Changes in operating assets and liabilities (Working Capital) 41.7 (8.5) 50.2

Net cash provided by operating activities 364.8 353.0 11.8

Capital expenditure (114.3) (127.0) 12.7

Net redemption (purchase) of deposits and reclamation bonds (8.3) (0.3) (8.0)

Proceeds from disposal of property, plant and equipment 0.1 - 0.1

Acquisitions (543.8) (537.2) (6.6)

Net cash used in investing activities (666.4) (664.5) (1.9)

Proceeds from borrowings 720.1 748.3 (28.2)

Debt issuance costs and other financing costs (42.1) (56.0) 13.9

Repayment of borrowings (820.8) (896.2) 75.4

Members' contributions (distributions) including non-controlling interest 112.7 113.4 (0.7)

Proceeds from initial public offering, net 442.3 503.4 (61.1)

Payments of contingent consideration relating to acqusitions (4.9) (4.9)Dividends paid - - -

Net cash provided by (used in) financing activities 407.3 412.9 (5.6)

FX (8.8) (8.8)

Net cash flow movement 96.8 101.4 (4.6)

Add opening Balance 28.1 28.1 -

Closing Cash Balance 124.9 129.5 (4.6)

44

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 advice to investors or potential investors, who

should consider seeking independent professional advice depending upon their specific investment objectives, financial situation or particular needs. The material contained in

this presentation may include information derived from publicly available sources that have not been independently verified. No representation or warranty is made as to the

accuracy, completeness or reliability of the information.

All amounts are in United States dollars unless otherwise indicated.

The presentation of certain financial information may not be compliant with financial captions in the primary financial statements prepared under IFRS. Refer to Coronado’s 2018

Full Year Financial Results (incorporating the requirements of Appendix 4E) for the twelve months ended 31 December 2018 available at www.coronadocoal.com.au for details of

the basis primary financial statements prepared under IFRS.

This presentation contains statements that constitute “forward-looking statements” within the meaning of Section 21E of the US Securities Exchange Act of 1934. Forward looking statements

are statements about matters that are not historical facts. Forward-looking statements appear in a number of places in this presentation and include

statements regarding our intent, belief or current expectations with respect to our business and operations, market conditions and results of operations.

We use words such as ‘will’, ‘may’, ‘expect’, 'indicative', ‘intend’, ‘seek’, ‘would’, ‘should’, ‘could’, ‘continue’, ‘plan’, ‘probability’, ‘risk’, ‘forecast’, ‘likely’, ‘estimate’, ‘anticipate’,

‘believe’, ‘aim’, or other similar words to identify forward-looking statements. These forward-looking statements reflect our current views with respect to future events and are

subject to change, certain risks, uncertainties and assumptions which are, in many instances, beyond our control, and have been made based upon management’s

expectations and beliefs concerning future developments and their potential effect upon us. There can be no assurance that future developments will be

in accordance with our expectations or that the effect of future developments on us will be those anticipated. Actual results could differ materially from those which we expect,

depending on the outcome of various factors. Factors that may impact on the forward-looking statements made include, but are not limited to, those described in the section

titled ‘Risk factors' in Coronado’s 2018 Full Year Financial Results (incorporating the requirements of Appendix 4E) for the twelve months ended 31 December 2018 (or Annual

Report for the year ended 31 December 2018) available at www.coronadocoal.com.au. When relying on forward-looking statements to make decisions with respect to us, investors

and others should carefully consider such factors and other uncertainties and events. We are under no obligation to update any forward-looking statements contained in this

presentation, whether as a result of new information, future events or otherwise, after the date of this presentation.

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Disclaimer (Cont.)


2018 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.

Information in this ASX Release relating to Reserves and Resources is extracted from information previously published by Coronado and available on the Coronado and ASX websites (2018

JORC Statement). For details of the Reserves and Resources estimates and the Competent Persons statements, refer to relevant Australian and US Operations sections in the 2018 JORC

Statement. Coronado confirms that it is not aware of any new information or data that materially affects the information included in the 2018 JORC Statement, and that all assumptions and

technical parameters underpinning the estimates in the 2018 JORC Statement continue to apply and have not materially changed. Coronado confirms that the context in which the

Competent Persons’ findings are presented have not been materially modified from the 2018 JORC Statement.

Corporate:

Ayten Saridas

Group Chief Financial

Officer

t +7 3031 7777

Ellen Ewart

m +1 203 541 1249

[email protected]

[email protected]

uAidan Meka

m +61 428 082 954

[email protected]

[email protected]

Media:

Marie Festa

Cato & Clegg

t +61 405 494 705

Contacts:

mailto:[email protected]

mailto:[email protected]

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