UNITED STATES
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Washington, D.C. 20549
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FORM
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Steel starts
here.
Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2023.
TABLE OF CONTENTS
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Coronado Global Resources Inc.
PART I – FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
Condensed Consolidated Balance Sheets
(In US$ thousands, except share data)
Assets
Note
(Unaudited)
2023
December 31,
2022
Current assets:
Cash and restricted cash
$
$
Trade receivables, net
Income tax receivable
Inventories
5
Other current assets
7
Assets held for sale
4
Total current assets
Non-current assets:
Property, plant and equipment, net
6
Right of use asset – operating leases, net
9
Goodwill
Intangible assets, net
Restricted deposits
16
Deferred income tax assets
Other non-current assets
Total assets
$
$
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable
$
$
Accrued expenses and other current liabilities
8
Income tax payable
Asset retirement obligations
Contract obligations
Lease liabilities
9
Other current financial liabilities
Liabilities held for sale
4
Total current liabilities
Non-current liabilities:
Asset retirement obligations
Contract obligations
Deferred consideration liability
Interest bearing liabilities
10
Other financial liabilities
Lease liabilities
9
Deferred income tax liabilities
Other non-current liabilities
Total liabilities
$
$
Common stock $
authorized,
September 30, 2023 and December 31, 2022
Series A Preferred stock $
authorized,
and December 31, 2022
—
—
Additional paid-in capital
Accumulated other comprehensive losses
14
(121,970 )
(91,423 )
Retained earnings
Total stockholders’ equity
Total liabilities and stockholders’ equity
$
$
See accompanying notes to unaudited condensed consolidated financial statements.
Coronado Global Resources Inc.
Unaudited Condensed Consolidated Statements of Operations and Comprehensive Income
(In US$ thousands, except share data)
Three months ended
Nine months ended
Note
2023
2022
2023
2022
Revenues:
Coal revenues
$
$
$
$
Other revenues
Total revenues
3
Costs and expenses:
Cost of coal revenues (exclusive of items
shown separately below)
Depreciation, depletion and amortization
Freight expenses
Stanwell rebate
Other royalties
Selling, general, and administrative
expenses
Total costs and expenses
Other (expense) income:
Interest expense, net
(14,496 )
(17,220 )
(43,341 )
(52,034 )
Loss on debt extinguishment
(1,385 )
(1,385 )
Decrease (increase) in provision for
discounting and credit losses
(572 )
Other, net
Total other (expense) income, net
(7,156 )
(22,767 )
(Loss) income before tax
(39,313 )
Income tax benefit (expense)
11
(51,423 )
(37,775 )
(235,391 )
Net (loss) income attributable to
Coronado Global Resources Inc.
$
(21,083 )
$
$
$
Other comprehensive loss, net of income
taxes:
Foreign currency translation adjustments
14
(18,247 )
(41,998 )
(30,547 )
(75,908 )
Total other comprehensive loss
(18,247 )
(41,998 )
(30,547 )
(75,908 )
Total comprehensive (loss) income
attributable to Coronado Global
Resources Inc.
$
(39,330 )
$
$
$
(Loss) earnings per share of common stock
Basic
12
(0.13 )
Diluted
12
(0.13 )
See accompanying notes to unaudited condensed consolidated financial statements.
Coronado Global Resources Inc.
Unaudited Condensed Consolidated Statements of Stockholders’ Equity
(In US$ thousands, except share data)
Common stock
Preferred stock
Additional
Accumulated other
Total
paid in
comprehensive
Retained
stockholders
Shares
Amount
Series A
Amount
capital
losses
earnings
equity
Balance December 31, 2022
$
$
$
$
(91,423 )
$
$
Net income
—
—
Other comprehensive loss
—
—
(4,503 )
(4,503 )
Total comprehensive (loss) income
—
—
(4,503 )
Share-based compensation for equity
classified awards
—
—
(308 )
(308 )
Dividends
—
—
(8,382 )
(8,382 )
Balance March 31, 2023
$
$
$
$
(95,926 )
$
$
Net income
—
—
Other comprehensive loss
—
—
(7,797 )
(7,797 )
Total comprehensive (loss) income
—
—
(7,797 )
Share-based compensation for equity
classified awards
—
—
Balance June 30, 2023
$
$
$
$
(103,723 )
$
$
Net loss
—
—
(21,083 )
(21,083 )
Other comprehensive loss
—
—
(18,247 )
(18,247 )
Total comprehensive loss
—
—
(18,247 )
(21,083 )
(39,330 )
Share-based compensation for equity
classified awards
—
—
Dividends
—
—
(8,382 )
(8,382 )
Balance September 30, 2023
$
$
$
$
(121,970 )
$
$
Coronado Global Resources Inc.
Common stock
Preferred stock
Additional
Accumulated other
Total
paid in
comprehensive
Retained
stockholders
Shares
Amount
Series A
Amount
capital
losses
earnings
equity
Balance December 31, 2021
$
$
$
$
(44,228 )
$
$
Net income
—
—
Other comprehensive income
—
—
Total comprehensive income
—
—
Share-based compensation for equity
classified awards
—
—
Dividends
—
—
(150,881 )
(150,881 )
Balance March 31, 2022
$
$
$
$
(27,970 )
$
$
Net income
—
—
Other comprehensive loss
—
—
(50,168 )
(50,168 )
Total comprehensive (loss) income
—
—
(50,168 )
Share-based compensation for equity
classified awards
—
—
Dividends
—
—
(200,040 )
(200,040 )
Balance June 30, 2022
$
$
$
$
(78,138 )
$
$
Net income
—
—
Other comprehensive loss
—
—
(41,998 )
(41,998 )
Total comprehensive (loss) income
—
—
(41,998 )
Share-based compensation for equity
classified awards
—
—
Dividends
—
—
(125,734 )
(125,734 )
Balance September 30, 2022
$
$
$
$
(120,136 )
$
$
See accompanying notes to unaudited condensed consolidated financial statements.
Coronado Global Resources Inc.
Unaudited Condensed Consolidated Statements of Cash Flows
(In US$ thousands)
Nine months ended
September 30,
2023
2022
Cash flows from operating activities:
Net income
$
$
Adjustments to reconcile net income to cash and restricted cash provided by
operating activities:
Depreciation, depletion and amortization
Amortization of right of use asset - operating leases
Amortization of deferred financing costs
Loss on debt extinguishment
Non-cash interest expense
Amortization of contract obligations
(23,896 )
(26,883 )
Loss on disposal of property, plant and equipment
Equity-based compensation expense
Deferred income taxes
Reclamation of asset retirement obligations
(3,168 )
(3,961 )
(Decrease) increase in provision for discounting and credit losses
(4,255 )
Changes in operating assets and liabilities:
Accounts receivable
(170,094 )
Inventories
(54,704 )
Other assets
(5,197 )
(30,109 )
Accounts payable
(3,371 )
Accrued expenses and other current liabilities
(69,303 )
Operating lease liabilities
(9,311 )
(6,202 )
Income tax payable
(128,418 )
Change in other liabilities
Net cash provided by operating activities
Cash flows from investing activities:
Capital expenditures
(182,442 )
(141,928 )
Purchase of restricted and other deposits
(26,836 )
(9,558 )
Redemption of restricted and other deposits
Net cash used in investing activities
(183,028 )
(150,670 )
Cash flows from financing activities:
Debt issuance costs and other financing costs
(3,420 )
Principal payments on interest bearing liabilities and other financial liabilities
(2,732 )
(9,773 )
Principal payments on finance lease obligations
(98 )
(91 )
Premiums paid on early redemption of debt
(90 )
Dividends paid
(16,755 )
(473,900 )
Net cash used in financing activities
(23,005 )
(483,854 )
Net increase in cash and restricted cash
Effect of exchange rate changes on cash and restricted cash
(15,180 )
(50,144 )
Cash and restricted cash at beginning of period
Cash and restricted cash at end of period
$
$
Supplemental disclosure of cash flow information:
Cash payments for interest
$
$
Cash paid for taxes
$
$
Restricted cash
$
$
See accompanying notes to unaudited condensed consolidated financial statements.
Coronado Global Resources Inc.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
1. Description of Business, Basis of Presentation
(a)
Description of the Business
Coronado Global Resources Inc. is a global producer, marketer, and exporter of a full range of metallurgical
coals, an essential element in the production of steel. The Company has a portfolio of operating mines and
development projects in Queensland, Australia, and in the states of Pennsylvania, Virginia and West Virginia in
the United States, or U.S.
(b)
Basis of Presentation
The interim unaudited condensed consolidated financial statements have been prepared in accordance with the
requirements of U.S. generally accepted accounting principles, or U.S. GAAP, and with the instructions to Form
10-Q and Article 10 of Regulation S-X related to interim financial reporting issued by the Securities and Exchange
Commission, or the SEC. Accordingly, they do not include all of the information and footnotes required by U.S.
GAAP for complete financial statements and should be read in conjunction with the audited consolidated financial
statements and notes thereto included in the Company’s Annual Report on Form 10-K filed with the SEC and the
Australian Securities Exchange, or the ASX, on February 21, 2023.
The interim unaudited condensed consolidated financial statements are presented in U.S. dollars, unless
otherwise stated. They include the accounts of Coronado Global Resources Inc. and its wholly-owned
subsidiaries. References to “US$” or “USD” are references to U.S. dollars. References to “A$” or “AUD” are
references to Australian dollars, the lawful currency of the Commonwealth of Australia. The “Company” and
“Coronado” are used interchangeably to refer to Coronado Global Resources Inc. and its subsidiaries,
collectively, or to Coronado Global Resources Inc., as appropriate to the context. All intercompany balances and
transactions have been eliminated upon consolidation.
In the opinion of management, these interim financial statements reflect all normal, recurring adjustments
necessary for the fair presentation of the Company’s financial position, results of operations, comprehensive
income, cash flows and changes in equity for the periods presented. Balance sheet information presented herein
as of December 31, 2022 has been derived from the Company’s audited consolidated balance sheet at that date.
The Company’s results of operations for the three and nine months ended September 30, 2023 are not
necessarily indicative of the results that may be expected for the year ending December 31, 2023.
2. Summary of Significant Accounting Policies
Please see Note 2 “Summary of Significant Accounting Policies” contained in the audited consolidated financial
statements for the year ended December 31, 2022 included in Coronado Global Resources Inc.’s Annual Report
on Form 10-K filed with the SEC and ASX on February 21, 2023.
(a) Newly Adopted Accounting Standards
During the period, there has been no new Accounting Standards Update issued by the Financial Accounting
Standards Board that had a material impact on the Company’s consolidated financial statements.
3. Segment Information
The Company has a portfolio of operating mines and development projects in Queensland, Australia, and in the
states of Pennsylvania, Virginia and West Virginia in the U.S. The operations in Australia, or Australian
Operations, comprise the 100%-owned Curragh producing mine complex. The operations in the United States,
or U.S. Operations, comprise
owned idled mine complex (Greenbrier) and
The Company operates its business along
organization of the
CODM, manages and allocates resources to the various components of the Company’s business.
The CODM uses Adjusted EBITDA as the primary metric to measure each segment’s operating performance.
Adjusted EBITDA is not a measure of financial performance in accordance with U.S. GAAP. Investors should be
aware that the Company’s presentation of Adjusted EBITDA may not be comparable to similarly titled financial
measures used by other companies.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Coronado Global Resources Inc.
Adjusted EBITDA is defined as earnings before interest, taxes, depreciation, depletion and amortization and other
foreign exchange losses. Adjusted EBITDA is also adjusted for certain discrete items that management exclude
in analyzing each of the Company’s segments’ operating performance. “Other and corporate” relates to additional
financial information for the corporate function such as accounting, treasury, legal, human resources, compliance,
and tax. As such, the corporate function is not determined to be a reportable segment but is discretely disclosed
for purposes of reconciliation to the Company’s unaudited Condensed Consolidated Financial Statements.
Reportable segment results as of and for the three and nine months ended September 30, 2023 and 2022 are
presented below:
(in US$ thousands)
Australia
United
States
Other and
Corporate
Total
Three months ended September 30, 2023
Total revenues
$
$
$
$
Adjusted EBITDA
(32,353 )
(11,899 )
Total assets
Capital expenditures
Three months ended September 30, 2022
Total revenues
$
$
$
$
Adjusted EBITDA
(10,349 )
Total assets
Capital expenditures
Nine months ended September 30, 2023
Total revenues
$
$
$
$
Adjusted EBITDA
(29,088 )
Total assets
Capital expenditures
Nine months ended September 30, 2022
Total revenues
$
$
$
$
Adjusted EBITDA
(28,579 )
Total assets
Capital expenditures
The reconciliations of Adjusted EBITDA to net income attributable to the Company for the three and nine months
ended September 30, 2023 and 2022 are as follows:
Three months ended
Nine months ended
September 30,
September 30,
(in US$ thousands)
2023
2022
2023
2022
Net (loss) income
$
(21,083 )
$
$
$
Depreciation, depletion and amortization
Interest expense (net of interest income)
Income tax (benefit) expense
(18,230 )
Other foreign exchange gains
(1)
(7,859 )
(31,917 )
(17,265 )
(55,064 )
Loss on extinguishment of debt
Losses (gains) on idled assets
(2)
(1,221 )
(Decrease) increase in provision for
discounting and credit losses
(536 )
(12 )
(4,255 )
Consolidated Adjusted EBITDA
$
$
$
$
(1)
certain entities within the group that are denominated in currencies other than their respective functional currencies. These gains and losses
are included in “Other, net” on the unaudited Consolidated Statement of Operations and Comprehensive Income.
(2)
assets that were classified as held for sale. Refer to Note 4 “Assets held for sale” for further details.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Coronado Global Resources Inc.
The reconciliations of capital expenditures per the Company’s segment information to capital expenditures
disclosed on the unaudited Condensed Consolidated Statements of Cash Flows for the nine months ended
September 30, 2023 and 2022 are as follows:
Nine months ended September 30,
(in US$ thousands)
2023
2022
Capital expenditures per unaudited Condensed Consolidated Statements of
Cash Flows
$
$
Accruals for capital expenditures
Payment for capital acquired in prior periods
(11,241 )
(7,475 )
Advance payment to acquire long lead capital items
(21,577 )
Capital expenditures per segment detail
$
$
Disaggregation of Revenue
The Company disaggregates the revenue from contracts with customers by major product group for each of the
Company’s reportable segments, as the Company believes it best depicts the nature, amount, timing and
uncertainty of revenues and cash flows. All revenue is recognized at a point in time.
Three months ended September 30, 2023
(in US$ thousands)
Australia
United States
Total
Product Groups:
Metallurgical coal
$
$
$
Thermal coal
Total coal revenue
Other
(1)
Total
$
$
$
Three months ended September 30, 2022
(in US$ thousands)
Australia
United States
Total
Product Groups:
Metallurgical coal
$
$
$
Thermal coal
Total coal revenue
Other
(1)
Total
$
$
$
Nine months ended September 30, 2023
(in US$ thousands)
Australia
United States
Total
Product Groups:
Metallurgical coal
$
$
$
Thermal coal
Total coal revenue
Other
(1)
Total
$
$
$
Nine months ended September 30, 2022
(in US$ thousands)
Australia
United States
Total
Product Groups:
Metallurgical coal
$
$
$
Thermal coal
Total coal revenue
Other
(1)
Total
$
$
$
(1) Other revenue for the Australian segment includes the amortization of the Stanwell non-market coal supply contract obligation liability.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Coronado Global Resources Inc.
4. Assets Held for Sale
During the fourth quarter of 2020, the Company committed to a plan to sell the Greenbrier mining asset and
determined that all of the criteria to classify assets and liabilities as held for sale were met. The asset is part of
our U.S. segment, located in the State of Virginia in the United States. The Greenbrier asset does not form part
of the Company’s core business strategy and has been idle since April 1, 2020.
The Company remains committed to a plan to sell the asset, however, on March 31, 2023, the Company
concluded that the timing of the sale within the next twelve months is uncertain. As such, the Greenbrier mining
asset has been reclassified as held and used since March 31, 2023, as it does not meet the criteria for
classification as held for sale.
The Greenbrier mining asset remains idle and the Company does not intend to recommence operations at the
mine.
The assets and liabilities of Greenbrier met the criteria for classification as held for sale as of December 31, 2022,
therefore the Condensed Consolidated Balance Sheet continues to reflect these assets and liabilities as held for
sale as of that date.
5. Inventories
(in US$ thousands)
September 30,
2023
December 31,
2022
Raw coal
$
$
Saleable coal
Total coal inventories
Supplies inventory
Total inventories
$
$
Coal inventories measured at its net realizable value were $
million
and $
and December 31, 2022, respectively, and primarily relates to coal designated for deliveries under the Stanwell
non-market coal supply agreement.
6. Property, Plant and Equipment
(in US$ thousands)
September 30,
2023
December 31,
2022
Land
$
$
Buildings and improvements
Plant, machinery, mining equipment and transportation vehicles
Mineral rights and reserves
Office and computer equipment
Mine development
Asset retirement obligation asset
Construction in process
Total cost of property, plant and equipment
Less accumulated depreciation, depletion and amortization
Property, plant and equipment, net
$
$
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Coronado Global Resources Inc.
7. Other Assets
(in US$ thousands)
September 30,
2023
December 31,
2022
Other current assets
Prepayments
$
$
Long service leave receivable
Tax credits receivable
Deposits to acquire capital items
Short term deposits
Other
Total other current assets
$
$
The Company has other current assets which includes prepayments, favorable mineral leases, long service leave
receivable, equipment deposits, short term deposits and coalfield employment enhancement tax credit
receivable.
Short term deposits are term deposits that do not meet the cash and cash equivalents criteria.
8. Accrued Expenses and Other Current Liabilities
Accrued expenses and other current liabilities consist of the following:
(in US$ thousands)
September 30,
2023
December 31,
2022
Wages and employee benefits
$
$
Taxes other than income taxes
Accrued royalties
Accrued freight costs
Accrued mining fees
Acquisition related accruals
Other liabilities
Total accrued expenses and other current liabilities
$
$
Acquisition related accruals is an accrual for the estimated remaining stamp duty payable on the Curragh
acquisition, including penalty interest, of $
further details.
9. Leases
From time to time, the Company enters into mining services contracts, which may include embedded leases of
mining equipment and other contractual agreements to lease mining equipment and facilities. Based upon the
Company’s assessment of terms within these agreements, the Company classifies a lease as either finance or
operating.
During the nine months period ended September 30, 2023, the Company entered into a number of agreements
to lease mining equipment. On mobilization of this mining equipment, the Company recognized right-of-use
assets and operating lease liabilities of $
As of September 30, 2023, there are additional operating leases of mining equipment, which have not yet been
mobilized, that have a present value of minimum lease payments of approximately $
leases have commenced in October 2023 with lease terms of
Information related to the Company’s right-of-use assets and related lease liabilities are as follows:
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Coronado Global Resources Inc.
Three months ended
Nine months ended
(in US$ thousands)
September 30,
2023
September 30,
2022
September 30,
2023
September 30,
2022
Operating lease costs
$
$
$
$
Cash paid for operating lease liabilities
Finance lease costs:
Amortization of right of use assets
Interest on lease liabilities
Total finance lease costs
$
$
$
$
(in US$ thousands)
September 30,
2023
December 31,
2022
Operating leases:
Operating lease right-of-use assets
$
$
Finance leases:
Property and equipment
Accumulated depreciation
(243 )
(186 )
Property and equipment, net
Current operating lease obligations
Operating lease liabilities, less current portion
Total operating lease liabilities
Current finance lease obligations
Finance lease liabilities, less current portion
Total Finance lease liabilities
Current lease obligation
Non-current lease obligation
Total Lease liability
$
$
September 30,
2023
December 31,
2022
Weighted Average Remaining Lease Term (Years)
Weighted average remaining lease term – finance leases
Weighted average remaining lease term – operating leases
Weighted Average Discount Rate
Weighted discount rate – finance lease
Weighted discount rate – operating lease
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Coronado Global Resources Inc.
The Company’s operating leases have remaining lease terms of
to extend the terms where the Company deems it is reasonably certain the options will be exercised. Maturities
of lease liabilities as at September 30, 2023, are as follows:
(in US$ thousands)
Operating
Lease
Finance
Lease
Year ending December 31,
2023
$
$
2024
2025
2026
2027
Thereafter
Total lease payments
Less imputed interest
(7,462 )
(3 )
Total lease liability
$
$
10. Interest Bearing Liabilities
The following is a summary of interest-bearing liabilities at September 30, 2023:
September 30, 2023
December 31, 2022
Weighted Average
Interest Rate at
September 30, 2023
Final
Maturity
% Senior Secured Notes
$
$
%
(2)
New ABL Facility
Discount and debt issuance costs
(1)
(7,608 )
(9,373 )
Total interest bearing liabilities
$
$
(1)
Debt issuance costs incurred on the establishment of the ABL Facility has been included within "Other non-current assets" in the
unaudited Condensed Consolidated Balance Sheet.
(2)
Senior Secured Notes
As of September 30, 2023, the Company’s aggregate principal amount of the
% Senior Secured Notes
due 2026, or the Notes, outstanding was $
secured obligations of the Company.
The terms of the Notes are governed by an indenture, dated as of May 12, 2021, or the Indenture, among
Coronado Finance Pty Ltd, an Australian proprietary company, as issuer, Coronado, as parent guarantor, the
other guarantors party thereto and Wilmington Trust, National Association, as trustee. The Indenture contains
customary covenants for high yield bonds, including, but not limited to, limitations on investments, liens,
indebtedness, asset sales, transactions with affiliates and restricted payments, including payment of dividends
on capital stock. As of September 30, 2023, the Company was in compliance with all applicable covenants under
the Indenture.
Under the terms of the Indenture, upon the occurrence of a “Change of Control” (as defined in the Indenture), the
issuer is required to make an offer, or a Change of Control Offer, to repurchase the Notes at
% of the
aggregate principal amount thereof, plus accrued and unpaid interest, if any, to, but excluding, the repurchase
date. Alternatively, if the issuer elects to redeem all of the Notes, during the 12-month period commencing on
May 15 of the years set forth below at the redemption prices (expressed in percentages of principal amount on
the redemption date) set forth below, plus accrued and unpaid interest to, but not including, the redemption date,
the issuer is not required to make a Change of Control Offer:
Period
Redemption price
2023
108.06%
2024
104.03%
2025 and thereafter
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Coronado Global Resources Inc.
New Asset Based Revolving Credit Facility
On May 8, 2023, the Company, Coronado Coal Corporation, a Delaware corporation and wholly owned subsidiary
of the Company, Coronado Finance Pty Ltd, an Australian proprietary company and a wholly owned subsidiary
of the Company, or an Australian Borrower, Coronado Curragh Pty Ltd, an Australian proprietary company and
wholly owned subsidiary of the Company, or an Australian Borrower and, together with the other Australian
Borrower, the Borrowers, and the other guarantors party thereto, collectively with the Company, the Guarantors
and, together with the Borrowers, the Loan Parties, entered into a senior secured asset-based revolving credit
agreement in an initial aggregate amount of $
Services Australia Pty Ltd, as the Administrative Agent, Global Loan Agency Services Australia Nominees Pty
Ltd, as the Collateral Agent, the Hongkong and Shanghai Banking Corporation Limited, Sydney Branch, as the
Lender, and DBS Bank Limited, Australia Branch, as the Lender and, together with the other Lender, the Lenders.
On August 3, 2023, the Company satisfied all conditions precedent under the New ABL Facility, at which time it
became effective and replaced the predecessor ABL Facility.
The New ABL Facility matures in August 2026 and provides for up to $
$
Availability under the New ABL Facility is limited to an eligible borrowing base, determined by applying customary
advance rates to eligible accounts receivable and inventory.
Borrowings under the New ABL Facility bear interest at a rate per annum equal to an applicable rate of
%
plus BBSY, for loans denominated in A$, or SOFR, for loans denominated in US$, at the Borrower’s election.
The New ABL Facility is guaranteed by the Guarantors. Amounts outstanding under the New ABL Facility are
secured by (i) first priority lien in the accounts receivable and other rights to payment, inventory, intercompany
indebtedness, certain general intangibles and commercial tort claims, commodities accounts, deposit accounts,
securities accounts and other related assets and proceeds and products of each of the foregoing, collectively,
the New ABL Collateral, (ii) a second-priority lien on substantially all of the Company’s assets and the assets of
the guarantors, other than the New ABL Collateral, and (iii) solely in the case of the obligations of the Australian
Borrower, a featherweight floating security interest over certain assets of the Australian Borrower, in each case,
subject to certain customary exceptions.
The New ABL Facility contains customary representations and warranties and affirmative and negative covenants
including, among others, a covenant regarding the maintenance of leverage ratio to be less than
covenant regarding maintenance of interest coverage ratio to be more than
payment of dividends, or purchase or redemption of, with respect to any Equity Interests of Holdings or any of its
Subsidiaries, covenants relating to financial reporting, covenants relating to the incurrence of liens or
encumbrances, covenants relating to the incurrence or prepayment of certain debt, compliance with laws, use of
proceeds, maintenance of properties, maintenance of insurance, payment obligations, financial accommodation,
mergers and sales of all or substantially all of the Borrowers and Guarantors’, collectively the Loan Parties, assets
and limitations on changes in the nature of the Loan Parties’ business.
Subject to customary grace periods and notice requirements, the New ABL Facility also contains customary
events of default.
Under the terms of New ABL Facility, a Review Event (as defined in the New ABL Facility) is triggered if, among
other matters, a “change of control” (as defined in the New ABL Facility) occurs.
Following the occurrence of a Review Event, the Borrowers must promptly meet and consult in good faith with
the Administrative Agent and the Lenders to agree a strategy to address the relevant Review Event including but
not limited to a restructure of the terms of the New ABL Facility to the satisfaction of the Lenders . If at the end of
a period of
result of their discussion or meeting with the Borrowers or do not wish to continue to provide their commitments,
the Lenders may declare all amounts owing under the ABL Facility immediately due and payable, terminate such
Lenders’ commitments to make loans under the ABL Facility, require the Borrowers to cash collateralize any
letter of credit obligations and/or exercise any and all remedies and other rights under the New ABL Facility.
To establish the New ABL Facility, the Company incurred debt issuance costs of $
elected an accounting policy to present debt issuance costs incurred before the debt liability is recognized (e.g.
before the debt proceeds are received) as an asset which will be amortized ratably over the term of the facility.
The costs will not be subsequently reclassified as a direct deduction of the liability. The carrying value of debt
issuance costs, recorded as “Other non-current assets” in the unaudited Condensed Consolidated Balance Sheet
was $
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Coronado Global Resources Inc.
As at September 30, 2023, the letter of credit sublimit had been partially used to issue $
guarantees on behalf of the Company and
ABL Facility. As at September 30, 2023, the Company was in compliance with all applicable covenants under the
New ABL Facility.
Predecessor ABL Facility
On August 3, 2023, the New ABL Facility replaced the predecessor ABL Facility. As a result of the early
termination of the predecessor ABL Facility, the Company recorded a loss on debt extinguishment of $
in its unaudited Condensed Consolidated Statement of Operations and Comprehensive Income for each of the
three and nine months ended September 30, 2023.
The foregoing descriptions of the Notes and the New ABL Facility are subject to the disclosure in Note 17.
“Related Party Transactions” incorporated herein by reference.
11. Income Taxes
For the nine months ended September 30, 2023 and 2022, the Company estimated its annual effective tax rate
and applied this effective tax rate to its year-to-date pretax income at the end of the interim reporting period. The
tax effects of unusual or infrequently occurring items, including effects of changes in tax laws or rates and
changes in judgment about the realizability of deferred tax assets, are reported in the interim period in which they
occur. The Company’s 2023 estimated annual effective tax rate is
%, which has been favorably impacted by
mine depletion deductions in the United States.
The Company had an income tax expense of $
on an income before tax of $
discrete benefit of $
Income tax expense of $
an estimated annual effective tax rate of
% for the period.
The Company utilizes the “more likely than not” standard in recognizing a tax benefit in its financial statements.
For the nine months ended September 30, 2023, the Company had
interest or penalties is required, it is the Company’s policy to include these as a component of income tax
expense.
The Company is subject to taxation in the U.S. and its various states, as well as Australia and its various localities.
In the U.S. and Australia, the first tax return was lodged for the year ended December 31, 2018. In the U.S.,
companies are subject to open tax audits for a period of seven years at the federal level and five years at the
state level. In Australia, companies are subject to open tax audits for a period of four years from the date of
assessment.
The Company assessed the need for valuation allowances by evaluating future taxable income, available for tax
strategies and the reversal of temporary tax differences.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Coronado Global Resources Inc.
12. Earnings per Share
Basic earnings per share of common stock is computed by dividing net income attributable to the Company for
the period, by the weighted-average number of shares of common stock outstanding during the same period.
Diluted earnings per share of common stock is computed by dividing net income attributable to the Company by
the weighted-average number of shares of common stock outstanding adjusted to give effect to potentially dilutive
securities.
Basic and diluted earnings per share was calculated as follows (in thousands, except per share data):
Three months ended September 30,
Nine months ended September 30,
(in US$ thousands, except per share data)
2023
2022
2023
2022
Numerator:
Net (loss) income attributable to Company
stockholders
$
(21,083 )
$
$
$
Denominator (in thousands):
Weighted-average shares of common stock
outstanding
Effects of dilutive shares
Weighted average diluted shares of common
stock outstanding
(Loss) Earnings Per Share (US$):
Basic
(0.13 )
Dilutive
(0.13 )
The Company’s common stock is publicly traded on the ASX in the form of CDIs, convertible at the option of the
holders into shares of the Company’s common stock on a
.
13. Fair Value Measurement
The fair value of a financial instrument is the amount that will be received to sell an asset or paid to transfer a
liability in an orderly transaction between market participants at the measurement date. The fair values of financial
instruments involve uncertainty and cannot be determined with precision.
The Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of
unobservable inputs to the extent possible. The Company determines fair value based on assumptions that
market participants would use in pricing an asset or liability in the market. When considering market participant
assumptions in fair value measurements, the following fair value hierarchy distinguishes between observable and
unobservable inputs, which are categorized in one of the following levels:
Level 1 Inputs: Unadjusted quoted prices in active markets for identical assets or liabilities accessible to the
reporting entity at the measurement date.
Level 2 Inputs: Other than quoted prices that are observable for the asset or liability, either directly or indirectly,
for substantially the full term of the asset or liability.
Level 3 Inputs: Unobservable inputs for the asset or liability used to measure fair value to the extent that
observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity
for the asset or liability at measurement date.
Financial Instruments Measured on a Recurring Basis
As of September 30, 2023, there were
recurring basis.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Coronado Global Resources Inc.
Other Financial Instruments
The following methods and assumptions are used to estimate the fair value of other financial instruments as of
September 30, 2023 and December 31, 2022:
●
expenses, lease liabilities and other current financial liabilities: The carrying amounts reported in the
unaudited Condensed Consolidated Balance Sheets approximate fair value due to the short maturity of
these instruments.
●
values approximate the carrying values reported in the unaudited Condensed Consolidated Balance
Sheets.
●
cost. As of September 30, 2023, there were
New ABL Facility. The estimated fair value of the Notes as of September 30, 2023 was approximately
$
14. Accumulated Other Comprehensive Losses
The Company’s Accumulated Other Comprehensive Losses consists of foreign currency translation adjustment
of subsidiaries for which the functional currency is different of the Group’s functional currency in U.S. dollar.
Accumulated other comprehensive losses consisted of the following at September 30, 2023:
(in US$ thousands)
Foreign
currency
translation
adjustments
Balance at December 31, 2022
$
(91,423 )
Net current-period other comprehensive income (loss):
Loss in other comprehensive income before reclassifications
(11,939 )
Loss on long-term intra-entity foreign currency transactions
(18,608 )
Total net current-period other comprehensive loss
(30,547 )
Balance at September 30, 2023
$
(121,970 )
15. Commitments
(a) Mineral Leases
The Company leases mineral interests and surface rights from land owners under various terms and royalty
rates. The future minimum royalties under these leases as of September 30, 2023 are as follows:
(in US$ thousands)
Amount
Year ending December 31,
2023
$
2024
2025
2026
2027
Thereafter
Total
$
Mineral leases are not in scope of Accounting Standards Codification, or ASC, 842 and continue to be
accounted for under the guidance in ASC 932, Extractive Activities – Mining.
(b) Other commitments
As of September 30, 2023, purchase commitments for capital expenditures were $
obligated within the next twelve months.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Coronado Global Resources Inc.
In Australia, the Company has generally secured the ability to transport coal through rail contracts and coal export
terminal contracts that are primarily funded through take-or-pay arrangements with terms ranging up to
.
In the U.S., the Company typically negotiates its rail and coal terminal access on an annual basis. As of
September 30, 2023, these Australian and U.S. commitments under take-or-pay arrangements totaled
$
16. Contingencies
In the normal course of business, the Company is a party to certain guarantees and financial instruments with
off-balance sheet risk, such as letters of credit and performance or surety bonds.
arrangements are reflected in the Company’s unaudited Condensed Consolidated Balance Sheets. Management
does not expect any material losses to result from these guarantees or off-balance sheet financial instruments.
As required by certain agreements, the Company had cash collateral in the form of deposits in the amount of
$
to-back support for bank guarantees, financial payments, other performance obligations, various other operating
agreements and contractual obligations under workers compensation insurance . These deposits are restricted
and classified as long-term assets in the unaudited Condensed Consolidated Balance Sheets.
In accordance with the terms of the New ABL Facility, the Company may be required to cash collateralize the
New ABL Facility to the extent of outstanding letters of credit after the expiration or termination date of such letter
of credit. As of September 30, 2023,
and
For the U.S. Operations in order to provide the required financial assurance, the Company generally uses surety
bonds for post-mining reclamation. The Company can also use bank letters of credit to collateralize certain
obligations. As of September 30, 2023, the Company had outstanding surety bonds of $
of credit of $
contractual obligations under workers compensation insurance and to secure other obligations and commitments.
For the Australian Operations, the Company had bank guarantees outstanding of $
million issued from the New ABL Facility, as at September 30, 2023, primarily in respect of certain rail and port
arrangements.
As at September 30, 2023, the Company in aggregate had total outstanding bank guarantees provided of $
million to secure obligations and commitments, including $
regulatory changes relating to these obligations could result in increased obligations, additional costs or additional
collateral requirements.
Stamp duty on Curragh acquisition
On September 27, 2022, the Company received from the Queensland Revenue Office, or QRO, an assessment
of the stamp duty payable on its acquisition of the Curragh mine in March 2018. The QRO assessed the stamp
duty on this acquisition at an amount of $
(A$
awaiting the outcome of this objection. The outcome of this objection remains uncertain.
The Company continues to maintain its position and the estimated accrual of $
duty payable on the Curragh acquisition based on legal and valuation advice obtained. In October 2022, the
Company made a partial payment following filing of the objection reducing the estimated accrual to $
(A$
Condensed Consolidated Balance sheet, as at September 30, 2023.
From time to time, the Company becomes a party to other legal proceedings in the ordinary course of business
in Australia, the U.S. and other countries where the Company does business. Based on current information, the
Company believes that such other pending or threatened proceedings are likely to be resolved without a material
adverse effect on its financial condition, results of operations or cash flows. In management’s opinion, the
Company is not currently involved in any legal proceedings, which individually or in the aggregate could have a
material effect on the financial condition, results of operations and/or liquidity of the Company.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Coronado Global Resources Inc.
17. Related
‑
Party Transactions
The Energy & Minerals Group
On September 25, 2023, Energy & Minerals Group, the Company’s controlling stockholder through its ownership
of Coronado Group LLC, including through certain of its affiliates and managed funds (the Sellers), advised the
Company that it had entered into a membership interest purchase agreement, or MIPA, with Sev.en Global
Investments a.s., or SGI. A copy of the MIPA has not been made available to the Company or the Special
Committee referred to below as of the date of this Quarterly Report on Form 10-Q. However, the Company
understands that, pursuant to the terms of the MIPA, the Sellers agreed to sell all of their interests in Coronado
Group LLC to a wholly-owned subsidiary of SGI. We refer to the proposed transaction as the SGI Transaction.
The Company also understands that, under the MIPA, the SGI Transaction is subject to customary closing
conditions including regulatory approvals in the U.S. and Australia.
The Board of Directors has appointed a special committee of independent directors, or the Special Committee,
to, among other things, assess the impact and consequences of the SGI Transaction on the Company and take
such actions as the Special Committee deems appropriate in connection with the SGI Transaction.
The Energy and Minerals Group has reported that following the closing of the SGI Transaction, SGI will be the
direct or indirect owner of Coronado Group LLC. As of the date of this Quarterly Report on Form 10-Q, Coronado
Group LLC is currently the direct owner of
shares of common stock, or
% of the Company’s outstanding total common stock) and the
Share.
Based on information that the Company is currently aware of, on completion of the SGI Transaction, a change of
control as defined under the terms of Notes and New ABL Facility may occur. Refer to Note 10. “Interest Bearing
Liabilities” for further information.
Under the Company’s 2018 Equity Incentive Plan, the change of control provisions may also be triggered on
completion of the SGI Transaction, however the Compensation and Nominating Committee of the Board of
Directors, at its sole discretion, will determine how the outstanding awards under the plan will be dealt with, which
may include acceleration of the vesting conditions.
In addition, certain contract counterparties, including Stanwell, customers, suppliers and third-party providers
may assert contractual rights, such as consent or termination rights that may be triggered by the change of control
resulting from the consummation of the SGI Transaction.
For a number of customers and supplier agreements, including contractor agreements, the completion of the SGI
Transaction may trigger a financial or suitability assessment by the counterparty, which may entitle the
counterparty to terminate the agreement, request further security or seek amendments to the terms of the
agreement.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Coronado Global Resources Inc.
18. Material Transactions
Curragh Housing Transaction
On May 8, 2023, the Company entered into an agreement, the Curragh Housing Agreement, for accommodation
services and to sell and leaseback housing and accommodation assets included in property, plant and
equipment. The transaction did not satisfy the sale criteria under ASC 606 –
Revenues from Contracts with
Customers
underlying property, plant and equipment on its condensed consolidated balance sheet. Upon completion, the
proceeds of $
Liabilities” on the Company’s Condensed Consolidated Balance Sheet. The term of the financing arrangement is
%.
In connection with this transaction, the Company will borrow an additional amount of $
which will be recorded in “Interest Bearing Liabilities” on completion date. The term of the arrangement is
ten
years
%.
The Curragh Housing Agreement is subject to conditions precedent not completed as at September 30, 2023.
In line with the Company’s capital management strategy, the above transactions provide additional liquidity. In
addition, the accommodation services component of the Curragh Housing Agreement is anticipated to enhance
the level of service for our employees at our Curragh mine.
Coronado Global Resources Inc.
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Stockholders and Board of Directors of Coronado Global Resources Inc.
Results of Review of Interim Financial Statements
We have reviewed the accompanying condensed consolidated balance sheet of Coronado Global Resources
Inc. (the Company) as of September 30, 2023, the related condensed consolidated statements of operations and
comprehensive income for the three and nine-month periods ended September 30, 2023 and 2022, the
condensed consolidated statements of stockholders’ equity for the three-months periods ended March 31, June
30 and September 30, 2023 and 2022, the condensed consolidated statements of cash flows for the nine-month
periods ended September 30, 2023 and 2022, and the related notes (collectively referred to as the “condensed
consolidated interim financial statements”). Based on our reviews, we are not aware of any material modifications
that should be made to the condensed consolidated interim financial statements for them to be in conformity with
U.S. generally accepted accounting principles.
We have previously audited, in accordance with the standards of the Public Company Accounting Oversight
Board (United States) (PCAOB), the consolidated balance sheet of the Company as of December 31, 2022, the
related consolidated statements of operations and comprehensive income, stockholders' equity and cash flows
for the year then ended, and the related notes (not presented herein), and in our report dated February 21, 2023,
we expressed an unqualified audit opinion on those consolidated financial statements. In our opinion, the
information set forth in the accompanying condensed consolidated balance sheet as of December 31, 2022, is
fairly stated, in all material respects, in relation to the consolidated balance sheet from which it has been derived.
Basis for Review Results
These financial statements are the responsibility of the Company's management. We are a public accounting
firm registered with the PCAOB and are required to be independent with respect to the Company in accordance
with the U.S. federal securities laws and the applicable rules and regulations of the SEC and the PCAOB. We
conducted our review in accordance with the standards of the PCAOB. A review of interim financial statements
consists principally of applying analytical procedures and making inquiries of persons responsible for financial
and accounting matters. It is substantially less in scope than an audit conducted in accordance with the standards
of the PCAOB, the objective of which is the expression of an opinion regarding the financial statements taken as
a whole. Accordingly, we do not express such an opinion.
/s/ Ernst & Young
Brisbane, Australia
November 8, 2023.
Coronado Global Resources Inc.
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS
The following Management’s Discussion and Analysis of our Financial Condition and Results of Operations, or
MD&A, should be read in conjunction with the unaudited Condensed Consolidated Financial Statements and the
related notes to those statements included elsewhere in this Quarterly Report on Form 10 -Q. In addition, this
Quarterly Report on Form 10-Q report should be read in conjunction with the Consolidated Financial Statements
for year ended December 31, 2022 included in Coronado Global Resources Inc.’s Annual Report on Form 10-K
for the year ended December 31, 2022, filed with the U.S. Securities and Exchange Commission, or SEC, and
the Australian Securities Exchange, or the ASX, on February 21, 2023.
Unless otherwise noted, references in this Quarterly Report on Form 10-Q to “we,” “us,” “our,” “Company,” or
“Coronado” refer to Coronado Global Resources Inc. and its consolidated subsidiaries and associates, unless
the context indicates otherwise.
All production and sales volumes contained in this Quarterly Report on Form 10-Q are expressed in metric tons,
or Mt, millions of metric tons, or MMt, or millions of metric tons per annum, or MMtpa, except where otherwise
stated. One Mt (1,000 kilograms) is equal to 2,204.62 pounds and is equivalent to 1.10231 short tons. In addition,
all dollar amounts contained herein are expressed in United States dollars, or US$, except where otherwise
stated. References to “A$” are references to Australian dollars, the lawful currency of the Commonwealth of
Australia. Some numerical figures included in this Quarterly Report on Form 10-Q have been subject to rounding
adjustments. Accordingly, numerical figures shown as totals in certain tables may not equal the sum of the figures
that precede them.
CAUTIONARY NOTICE REGARDING FORWARD -LOOKING STATEMENTS
This Quarterly Report on Form 10-Q contains “forward-looking statements” within the meaning of Section 27A of
the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended,
or the Exchange Act, concerning our business, operations, financial performance and condition, the coal, steel
and other industries, as well as our plans, objectives and expectations for our business, operations, financial
performance and condition. Forward-looking statements may be identified by words such as “may,” “could,”
“believes,” “estimates,” “expects,” “intends,” “plans,” “anticipate,” “forecast,” “outlook,” “target,” “likely,”
“considers” and other similar words.
Any forward-looking statements involve known and unknown risks, uncertainties, assumptions and other
important factors that could cause actual results, performance, events or outcomes to differ materially from the
results, performance, events or outcomes expressed or anticipated in these statements, many of which are
beyond our control. Such forward-looking statements are based on an assessment of present economic and
operating conditions on a number of best estimate assumptions regarding future events and actions. These
factors are difficult to accurately predict and may be beyond our control. Factors that could affect our results, our
announced plans, or an investment in our securities include, but are not limited to:
●
●
unrest and wars, as well as risks related to government actions with respect to trade agreements, treaties
or policies;
●
as diesel fuel, steel, explosives and tires, as the result of inflationary pressures or otherwise;
●
developments. For example, the amendments to the coal royalty regime implemented by the Queensland
state Government in Australia in 2022 introducing higher tiers to the coal royalty rates applicable to our
Australian Operations;
●
relating to mining activities, including possible impacts on global climate issues, which could result in
increased regulation of coal combustion and requirements to reduce GHG emissions in many
jurisdictions, including federal and state government initiatives to control GHG emissions could increase
costs associated with coal production and consumption, such as costs for additional controls to reduce
carbon dioxide emissions or costs to purchase emissions reduction credits to comply with future
emissions trading programs, which could significantly impact our financial condition and results of
operations, affect demand for our products or our securities and reduced access to capital and insurance;
Coronado Global Resources Inc.
●
related provisions in material agreements;
●
due to future public health crisis (such as the COVID-19 pandemic), of one or more of our major
customers, including customers in the steel industry, key suppliers/contractors, which among other
adverse effects, could lead to reduced demand for our coal, increased difficulty collecting receivables
and customers and/or suppliers asserting force majeure or other reasons for not performing their
contractual obligations to us;
●
●
governing such indebtedness;
●
performance or otherwise;
●
●
coal deliveries, or increase the cost of operating our business;
●
●
●
●
●
●
●
arrangements with rail and port operators;
●
●
●
●
any exposure to hazardous substances caused by our operations, as well as any environmental
contamination our properties may have or our operations may cause;
●
●
regulations;
●
●
proprietary or confidential information about us, our customers or other third parties;
●
require us to recognize impairment charges related to those assets;
●
●
impact our reported financial results; and
Coronado Global Resources Inc.
●
Factors,” set forth in Part II, Item 1A of this Quarterly Report on Form 10-Q.
We make many of our forward-looking statements based on our operating budgets and forecasts, which are
based upon detailed assumptions. While we believe that our assumptions are reasonable, we caution that it is
very difficult to predict the impact of known factors, and it is impossible for us to anticipate all factors that could
affect our actual results.
See Part I, Item 1A. “Risk Factors” of our Annual Report on Form 10-K for the year ended December 31, 2022,
filed with the SEC and ASX on February 21, 2023, and Part II, Item 1A. “Risk Factors” of our Quarterly Report
on Form 10-Q for the quarterly period ended March 31, 2023, filed with SEC and ASX on May 8, 2023, for a more
complete discussion of the risks and uncertainties mentioned above and for discussion of other risks and
uncertainties we face that could cause actual results to differ materially from those expressed or implied by these
forward-looking statements.
All forward-looking statements attributable to us are expressly qualified in their entirety by these cautionary
statements, as well as others made in this Quarterly Report on Form 10-Q and hereafter in our other filings with
the SEC and public communications. You should evaluate all forward-looking statements made by us in the
context of these risks and uncertainties.
We caution you that the risks and uncertainties identified by us may not be all of the factors that are important to
you. You should not interpret the disclosure of any risk to imply that the risk has not already materialized.
Furthermore, the forward-looking statements included in this Quarterly Report on Form 10-Q are made only as
of the date hereof. We undertake no obligation to publicly update or revise any forward-looking statement as a
result of new information, future events, or otherwise, except as required by applicable law.
Overview
We are a global producer, marketer and exporter of a full range of Met coal products. We own a portfolio of
operating mines and development projects in Queensland, Australia, and in the states of Virginia, West Virginia
and Pennsylvania in the United States.
Our Australian Operations comprise the 100%-owned Curragh producing mine complex. Our U.S. Operations
comprise two 100%-owned producing mine complexes (Buchanan and Logan), one 100%-owned idled mine
complex (Greenbrier) and two development properties (Mon Valley and Russell County). In addition to Met coal,
our Australian Operations sell thermal coal domestically, which is used to generate electricity, to Stanwell and
some thermal coal in the export market. Our U.S. Operations primarily focus on the production of Met coal for
the North American domestic and seaborne export markets and also produce and sell some thermal coal that is
extracted in the process of mining Met coal.
During the third quarter of 2023, Coronado navigated through some operational headwinds that were out of our
control, including adverse geological conditions at our U.S. Operations impacting production rates yield and
unexpected downtime for repairs and maintenance following a mechanical failure of one of the draglines at our
Australian Operations. In addition, coal production rates at our Australian Operations were lower in the third
quarter of 2023 primarily due to planned focus on advancing pre-strip waste movement and the completion of
planned maintenance on the two coal preparation plants. Overall, these events contributed to the lower saleable
production of 0.8 MMt compared to the three months ended June 30, 2023. Despite the lower production, sales
volume compared to the three months ended June 30, 2023 increased as the Company drew down on coal
inventory built in the previous quarter.
Coking coal index prices improved in the third quarter of 2023 compared to the previous quarter due to a
combination of tight supply from the Australian coal market, which was impacted negatively by continued rail
constraints and planned maintenance disruptions to operations and at Queensland ports, and heightened
demand from Indian steel mills restocking raw material as the monsoon season comes to an end. The Australian
Premium Low Volatile Hard Coking Coal, or AUS PLV HCC, index price averaged $263.6 per Mt for the three
months ended September 30, 2023, $20.8 per Mt higher, compared to the three months ended June 30, 2023.
The AUS PLV HCC averaged $283.5 per Mt for the nine months ended September 30, 2023, $109.0 per Mt
lower, compared to the nine months ended September 30, 2022. The spot price of AUS PLV HCC reached $333
per Mt during the three months ended September 30, 2023.
Our results for the nine months ended September 30, 2023, were adversely impacted by (1) lower average
realized Met price per Mt sold compared to the nine months ended September 30, 2022, (2) additional fleets
deployed to recover pre-strip overburden removal, (3) significant wet weather events during the first quarter of
2023 and equipment breakdown at our Australian Operations impacting production, (4) rail constraints and
disruption to port operations impacting timing of sales at our Australian Operations, (5) adverse geological
Coronado Global Resources Inc.
conditions at our U.S. Operations resulting in slower production rates and yield in the quarter ended September
30, 2023, and (6) continued inflationary pressure on labor and supply costs.
For the nine months ended September 30, 2023, we produced 11.9 MMt and sold 11.7 MMt of coal. Met coal
sales represented 75.8% of our total volume of coal sold and 91.0% of total coal revenues for the nine months
ended September 30, 2023, compared to 78.4% and 96.2%, respectively, for the nine months ended September
30, 2022.
Coal revenues of $2,163.1 million for the nine months ended September 30, 2023, decreased by 23.3%
compared to the same period in 2022, driven by average realized Met price per Mt sold, which was $57.9 per Mt
lower than the average realized price per Mt sold of $279.4 for the nine months ended September 30, 2022.
Additionally, sales volumes were 0.7 Mt lower for the nine months ended September 30, 2023, compared to the
same period in 2022, primarily driven by lower production as well as required coal qualities to meet sales
commitments during the nine months ended September 30, 2023.
Mining costs for the nine months ended September 30, 2023, were $1,210.4 million or $105.5 per Mt sold, $17.9
per Mt sold higher compared to the corresponding period in 2022, largely driven by elevated inflation levels, the
impacts of lower production following significant weather events, equipment breakdown, adverse geological
conditions at our U.S. Operations and additional fleets mobilized at our Australian Operations during the nine
months ended September 30, 2023.
Dividends
In September 2023, the Company settled its previously declared dividends of $8.4 million, which were paid to
stockholders from available cash.
Liquidity
As of September 30, 2023, our net cash position, comprising of $336.8 million cash (excluding restricted cash)
less $242.3 million aggregate principal amount of Notes outstanding, was $94.5 million. Coronado has available
liquidity of $486.8 million as of September 30, 2023, consisting of cash (excluding restricted cash), unrestricted
short term deposits of $21.6 million and $128.4 million availability under our New ABL facility.
Safety
For our Australian Operations, the twelve-month rolling average Total Reportable Injury Frequency Rate, or
TRIFR, at September 30, 2023 was 2.43,
compared to a rate of 3.92 at the end of December 31, 2022. At our
U.S. Operations, the twelve -month rolling average Total Reportable Incident Rate, or TRIR, at September 30,
2023 was 1.60, compared to a rate of 2.42 at the end of December 31, 2022. These strong results year to date
reflect a record safety rate at our U.S. Operations and the best safety rate since July 2018 for our Australian
Operations. Reportable rates for our Australian and U.S. Operations are below the relevant industry benchmarks.
Our Logan mining complex at our U.S. Operations, which includes multiple underground and surface mines,
achieved 1.5 million hours Lost Time Injury, or LTI, free during the quarter.
The health and safety of our workforce is our number one priority and Coronado continues implement safety
initiatives to improve our safety rates every quarter.
Segment Reporting
In accordance with Accounting Standards Codification, or ASC, 280, Segment Reporting, we have adopted the
following reporting segments: Australia and the United States. In addition, “Other and Corporate” is not a reporting
segment but is disclosed for the purposes of reconciliation to our consolidated financial statements.
Results of Operations
How We Evaluate Our Operations
We evaluate our operations based on the volume of coal we can safely produce and sell in compliance with
regulatory standards, and the prices we receive for our coal. Our sales volume and sales prices are largely
dependent upon the terms of our coal sales contracts, for which prices generally are set based on daily index
averages, on a quarterly basis or annual fixed price contracts.
Our management uses a variety of financial and operating metrics to analyze our performance. These metrics
are significant factors in assessing our operating results and profitability. These financial and operating metrics
include: (i) safety and environmental metrics; (ii) Adjusted EBITDA; (iii) total sales volumes and average realized
price per Mt sold, which we define as total coal revenues divided by total sales volume; (iv) Met coal sales
Coronado Global Resources Inc.
volumes and average realized Met price per Mt sold, which we define as Met coal revenues divided by Met coal
sales volume; (v) average segment mining costs per Mt sold, which we define as mining costs divided by sales
volumes (excluding non-produced coal) for the respective segment; (vi) average segment operating costs per Mt
sold, which we define as segment operating costs divided by sales volumes for the respective segment; and (vii)
net cash, which we define as cash and cash equivalents (excluding restricted cash) less outstanding aggregate
principal amount of the Notes.
Coal revenues are shown on our statement of operations and comprehensive income exclusive of other
revenues. Generally, export sale contracts for our Australian Operations require us to bear the cost of freight
from our mines to the applicable outbound shipping port, while freight costs from the port to the end destination
are typically borne by the customer. Sales to the export market from our U.S. Operations are generally recognized
when title to the coal passes to the customer at the mine load out similar to a domestic sale. For our domestic
sales, customers typically bear the cost of freight. As such, freight expenses are excluded from cost of coal
revenues to allow for consistency and comparability in evaluating our operating performance.
Non-GAAP Financial Measures; Other Measures
The following discussion of our results includes references to and analysis of Adjusted EBITDA, Segment
Adjusted EBITDA and mining costs, which are financial measures not recognized in accordance with U.S. GAAP.
Non-GAAP financial measures, including Adjusted EBITDA, Segment Adjusted EBITDA and mining costs, are
used by investors to measure our operating performance.
Non-GAAP financial measures are intended to provide additional information only and do not have any standard
meaning prescribed by U.S. GAAP. These measures should not be considered in isolation or as a substitute for
measures of performance prepared in accordance with U.S. GAAP.
Adjusted EBITDA, a non-GAAP measure, is defined as earnings before interest, tax, depreciation, depletion and
amortization and other foreign exchange losses. Adjusted EBITDA is also adjusted for certain discrete non-
recurring items that we exclude in analyzing each of our segments’ operating performance. Adjusted EBITDA is
not intended to serve as an alternative to U.S. GAAP measures of performance including total revenues, total
costs and expenses, net income or cash flows from operating activities as those terms are defined by U.S. GAAP.
Adjusted EBITDA may therefore not be comparable to similarly titled measures presented by other companies.
A reconciliation of Adjusted EBITDA to its most directly comparable measure under U.S. GAAP is included below.
Segment Adjusted EBITDA is defined as Adjusted EBITDA by operating and reporting segment, adjusted for
certain transactions, eliminations or adjustments that our CODM does not consider for making decisions to
allocate resources among segments or assessing segment performance. Segment Adjusted EBITDA is used as
a supplemental financial measure by management and by external users of our financial statements, such as
investors, industry analysts and lenders, to assess the operating performance of the business.
Mining costs, a non-GAAP measure, is based on reported cost of coal revenues, which is shown on our statement
of operations and comprehensive income exclusive of freight expense, Stanwell rebate, other royalties,
depreciation, depletion and amortization, and selling, general and administrative expenses, adjusted for other
items that do not relate directly to the costs incurred to produce coal at a mine. Mining costs excludes these cost
components as our CODM does not view these costs as directly attributabl e to the production of coal. Mining
costs is used as a supplemental financial measure by management, providing an accurate view of the costs
directly attributable to the production of coal at our mining segments, and by external users of our financial
statements, such as investors, industry analysts and ratings agencies, to assess our mine operating performance
in comparison to the mine operating performance of other companies in the coal industry.
Coronado Global Resources Inc.
Three Months Ended September 30, 2023 Compared to Three Months Ended September 30, 2022
Summary
The financial and operational highlights for the three months ended September 30, 2023 include:
●
compared to net income of $150.6 million for the three months ended September 30, 2022. This decrease
was driven by lower coal revenues due to lower average realized Met coal price per Mt sold, higher
mining and operating costs, partially offset by tax benefit of $18.2 million in the third quarter of 2023
compared to an income tax expense of $51.4 million for the same period in 2022.
●
$45.6 per Mt lower compared to average realized price of $253.0 per Mt sold for the same period in 2022.
Although coking coal index prices improved during the third quarter of 2023 due to tight supply, coking
coal prices were significantly lower than the same period in 2022 when supply in global met coal market
was readjusting from the impact of the Russia and Ukraine war.
●
2023, increased 0.1 MMt as compared to the same period in 2022, as the Company drew down on coal
inventory built in the second quarter of 2023.
●
$220.2
million, compared to $223.6 million for the three months ended September 30, 2022, largely due
to lower coal sales revenues and higher operating costs.
●
$336.8 million cash (excluding restricted cash), $21.6 million of unrestricted short-term deposits and
$128.4 million of availability under the New ABL Facility.
Coronado Global Resources Inc.
Three months ended September 30,
2023
2022
Change
%
(in US$ thousands)
Revenues:
Coal revenues
$
707,303
$
863,709
$
(156,406)
(18.1%)
Other revenues
10,527
10,948
(421)
(3.8%)
Total revenues
717,830
874,657
(156,827)
(17.9%)
Costs and expenses:
Cost of coal revenues (exclusive of items
shown separately below)
501,471
385,504
115,967
30.1%
Depreciation, depletion and amortization
34,749
37,508
(2,759)
(7.4%)
Freight expenses
71,746
63,026
8,720
13.8%
Stanwell rebate
37,100
54,575
(17,475)
(32.0%)
Other royalties
92,700
137,331
(44,631)
(32.5%)
Selling, general, and administrative expenses
12,221
10,405
1,816
17.5%
Total costs and expenses
749,987
688,349
61,638
9.0%
Other income (expenses):
Interest expense, net
(14,496)
(17,220)
2,724
(15.8%)
Loss on debt extinguishment
(1,385)
—
(1,385)
100.0%
Decrease in provision for discounting and
credit losses
536
12
524
4,366.7%
Other, net
8,189
32,898
(24,709)
(75.1%)
Total other (expenses) income, net
(7,156)
15,690
(22,846)
(145.6%)
Net (loss) income before tax
(39,313)
201,998
(241,311)
(119.5%)
Income tax benefit (expense)
18,230
(51,423)
69,653
(135.5%)
Net (loss) income attributable to Coronado Global
Resources, Inc.
$
(21,083)
$
150,575
$
(171,658)
(114.0%)
Coal Revenues
Coal revenues were $707.3 million for the three months ended September 30, 2023, a decrease of $156.4 million,
compared to $863.7 million for the three months ended September 30, 2022. Lower Met coal price indices, due
to varied market conditions compared to the third quarter of 2022, saw the average realized Met coal price for
the three months ended September 30, 2023, reduced by $45.6 to $207.4 per Mt sold compared to $253.0 per
Mt sold for the same period in 2022.
Cost of Coal Revenues (Exclusive of Items Shown Separately Below)
Cost of coal revenues comprise costs related to produced tons sold, along with changes in both the volumes and
carrying values of coal inventory. Cost of coal revenues include items such as direct operating costs, which
includes employee-related costs, materials and supplies, contractor services, coal handling and preparation costs
and production taxes.
Total cost of coal revenues was $501.5 million for the three months ended September 30, 2023, $116.0 million,
or 30.1% higher, compared to $385.5 million for the three months ended September 30, 2022.
Cost of coal revenues for our U.S. Operations for the three months ended September 30, 2023, was $38.8 million
higher compared to the three months September 30, 2022, largely due draw down of coal stocks from the
previous quarter, as sales volume exceeded saleable production in the 2023 period, combined with continued
impact of inflation on labor, contractor and other supply costs. Our Australian Operations contributed to $77.2
million of the increase in cost of coal revenues, primarily driven by additional fleets mobilized during 2023 to
advance pre-strip overburden removal, impact of high inflation on mining costs and drawn of coal inventory,
resulting from sales volume exceeding saleable production in the 2023 period. Increase in costs were partially
offset by favorable average foreign exchange rate on translation of the Australian Operations for the three months
ended September 30, 2023, of A$/US$: 0.66 compared to 0.68 for the same period in 2022.
Depreciation, Depletion and Amortization
Depreciation, depletion and amortization was $34.7 million for the three months ended September 30, 2023, a
decrease of $2.8 million, compared to $37.5 million for the three months ended September 30, 2022. The
decrease was associated with assets fully depreciated, lower depreciation rates following annual useful life
Coronado Global Resources Inc.
review at the beginning of 2023 and favorable average foreign exchange rate on translation of the Australian
Operations, partially offset by additional equipment brought into service during the twelve months since
September 30, 2022.
Freight Expenses
Freight expenses relate to costs associated with rail and port providers, including take-or-pay commitments at
our Australian Operations, and demurrage costs. Freight expenses totaled $71.7 million for the three months
ended September 30, 2023, an increase of $8.7 million, compared to $63.0 million for the three months ended
September 30, 2022. Our Australian Operations’ freight costs contributed $11.8 million to the increase primarily
driven by penalties incurred due to underutilization of rail capacity. This was partially offset by freight cost at our
U.S. Operations, which decreased by $3.1 million, driven by lower coal sales under Free on Board, or FOB,
terms, compared to the three months ended September 30, 2022.
Stanwell Rebate
The Stanwell rebate was $37.1 million for the three months ended September 30, 2023, a decrease of $17.5
million, compared to $54.6 million for the three months ended September 30, 2022. The decrease was largely
driven by lower realized reference coal pricing for the prior twelve-month period applicable to three months ended
September 30, 2023, used to calculate the rebate compared to the same period in 2022, and favorable foreign
exchange rate on translation of our Australian Operations.
Other Royalties
Other royalties were $92.7 million in the three months ended September 30, 2023, a decrease of $44.6 million,
compared to $137.3 million for the three months ended September 30, 2022. The decrease in Other royalties
was due to lower coal revenues, largely driven by lower average realized prices, for the three months ended
September 30, 2023, compared to the same period in 2022, combined with favorable foreign exchange rate on
translation of our Australian Operations.
Interest Expense, net
Interest expense, net was $14.5 million in the three months ended September 30, 2023, a decrease of $2.7
million compared to $17.2 million for the three months ended September 30, 2022. The decrease was due to
lower Notes outstanding during the three months ended September 30, 2023, following redemptions since
September 30, 2022.
Other, net
Other, net was $8.2 million for the three months ended September 30, 2023, a decrease of $24.7 million
compared to $32.9 million for the three months ended September 30, 2022. The decrease was largely driven by
lower exchange losses on translation of short-term inter-entity balances in certain entities within the group that
are denominated in currencies other than their respective functional currencies.
Income Tax Benefit (Expense)
Income tax benefit of $18.2 million for the three months ended September 30, 2023, variance of $69.7 million,
compared to the income tax expense of $51.4 million for the three months ended September 30, 2022, driven by
net loss before tax in the 2023 period.
Coronado Global Resources Inc.
Nine months ended September 30, 2023 compared to Nine months ended September 30, 2022
Summary
The financial and operational highlights for the nine months ended September 30, 2023 include:
●
million, from $712.5 million for the nine months ended September 30, 2022. The decrease was a result
of lower revenues and higher operating costs partially offset by lower income tax expense.
●
the nine months ended September 30, 2022. The lower sales volumes were primarily driven by the impact
of wet weather and equipment breakdowns on production performance, coal availability, and required
coal qualities to meet sales commitments at our Australian Operations combined with adverse geological
conditions caused by a rock intrusion at our U.S. Operations .
●
20.7% lower compared to $279.4 per Mt sold for the nine months ended September 30, 2022, as the Met
coal price index rebalanced from record highs achieved in 2022, particularly in the first half of 2022, as
steel demand weakened. During the third quarter of 2023, the Met coal prices trended upwards, however,
the Company was not able to take full advantage of this due to the three -month lag in price realizations
for certain sales contracts at our Australian Operation.
●
lower compared to $1,072.9 million for the nine months ended September 30, 2022. This decrease was
a result of lower coal revenues and higher operating costs.
●
balance (excluding restricted cash) of $336.8 million and $242.3 million aggregate principal amount
outstanding of the Notes.
Nine months ended September 30,
2023
2022
Change
%
(in US$ thousands)
Revenues:
Coal revenues
$
2,163,093
$
2,821,334
$
(658,241)
(23.3%)
Other revenues
47,977
33,152
14,825
44.7%
Total revenues
2,211,070
2,854,486
(643,416)
(22.5%)
Costs and expenses:
Cost of coal revenues (exclusive of items
shown separately below)
1,262,907
1,140,467
122,440
10.7%
Depreciation, depletion and amortization
113,052
126,901
(13,849)
(10.9%)
Freight expenses
192,542
189,316
3,226
1.7%
Stanwell rebate
105,357
124,160
(18,803)
(15.1%)
Other royalties
268,606
299,711
(31,105)
(10.4%)
Selling, general, and administrative expenses
29,976
28,657
1,319
4.6%
Total costs and expenses
1,972,440
1,909,212
63,228
3.3%
Other income (expenses):
Interest expense, net
(43,341)
(52,034)
8,693
(16.7%)
Loss on debt extinguishment
(1,385)
—
(1,385)
100.0%
Decrease (increase) in provision for discounting
and credit losses
4,255
(572)
4,827
(843.9%)
Other, net
17,704
55,191
(37,487)
(67.9%)
Total other (expenses) income, net
(22,767)
2,585
(25,352)
(980.7%)
Net income before tax
215,863
947,859
(731,996)
(77.2%)
Income tax expense
(37,775)
(235,391)
197,616
(84.0%)
Net income
178,088
712,468
(534,380)
(75.0%)
Net income attributable to Coronado Global
Resources, Inc.
$
178,088
$
712,468
$
(534,380)
(75.0%)
Coronado Global Resources Inc.
Coal Revenues
Coal revenues were $2,163.1 million for the nine months ended September 30, 2023, a decrease of $658.2
million, compared to $2,821.3 million for the nine months ended September 30, 2022. The decrease was largely
driven by lower average realized Met price of $221.5 per Mt sold compared to $279.4 per Mt sold for the nine
months ended September 30, 2022, combined with 0.7 MMt lower sales volume compared to the same period in
2022.
Other Revenues
Other revenues were $48.0 million for the nine months ended September 30, 2023, an increase of $14.8 million,
compared to $33.2 million for the nine months ended September 30, 2022. This increase was primarily driven by
a termination fee revenue from a coal sales contract cancelled at our U.S. Operations.
Cost of Coal Revenues (Exclusive of Items Shown Separately Below)
Total cost of coal revenues was $1,262.9 million for the nine months ended September 30, 2023, an increase of
$122.4 million, compared to $1,140.5 million for the nine months ended September 30, 2022.
Cost of coal revenues for our Australian Operations in the nine months ended September 30, 2023, were $85.6
million higher compared to the same period in 2022, primarily driven by additional fleets mobilized during 2023
to advance pre-strip overburden removal, the continued impact of inflation on labor, contractor and other supply
costs, higher maintenance expenses following a dragline propel failure, partially offset by a significant build in
coal inventories from saleable production exceeding sales volume in period compared to a draw down in the
same period in 2022, lower purchase coal and favorable foreign exchange rate on translation of our Australian
Operations for the nine months ended September 30, 2023, of A$/US$: 0.67 compared to 0.71 for the same
period in 2022. Cost of coal revenues for our U.S. Operations were $36.8 million higher for the nine months
ended September 30, 2023, compared to the same period in 2022, also impacted by an elevated inflationary
environment and higher consumables and maintenance costs following a rock intrusion in the quarter ended
September 30, 2023.
Depreciation, Depletion and Amortization
Depreciation, depletion and amortization was $113.1 million for the nine months ended September 30, 2023, a
decrease of $13.8 million, as compared to $126.9 million for the nine months ended September 30, 2022. The
decrease was associated with assets fully depreciated, lower depreciation rates following annual useful life
review at the beginning of 2023 and favorable average foreign exchange rate on translation of the Australian
Operations, partially offset by additional equipment brought into service during the twelve months since
September 30, 2022.
Freight Expenses
Freight expenses totaled $192.5 million for the nine months ended September 30, 2023, an increase of $3.2
million, compared to $189.3 million for the nine months ended September 30, 2022. Our Australian Operations
contributed $4.4 million to the increase due to higher rail costs primarily driven by penalties incurred due to
underutilization of rail capacities in our Australian Operations, partially offset by lower sales volumes reducing
freight costs at our Australian Operations and U.S. Operations .
Stanwell Rebate
The Stanwell rebate was $105.4 million for the nine months ended September 30, 2023, a decrease of $18.8
million, as compared to $124.2 million for the nine months ended September 30, 2022. The decrease was due
lower realized reference coal pricing for the prior twelve-month period applicable to the nine months ended
September 30, 2023, used to calculate the rebate compared to the same period in 2022 and favorable average
foreign exchange rate on translation of the Australian Operations.
Other Royalties
Other royalties were $268.6 million for the nine months ended September 30, 2023, a decrease of $31.1 million,
as compared to $299.7 million for the nine months ended September 30, 2022. Our Australian Operations
contributed to $27.7 million of the decrease due to lower average realized export pricing for the nine months
ended September 30, 2023, compared to the same period in 2022 and favorable average foreign exchange rate
on translation of the Australian Operations, partially offset by the adverse impact that the new royalty regime,
which was effective from July 1, 2022, had in the first half of 2023 compared to the first half of 2022 under the
old regime. The new royalty regime resulted in $58.7 million additional royalty costs in the 2023 period.
Coronado Global Resources Inc.
Interest Expense, net
Interest expense, net was $43.3 million in the nine months ended September 30, 2023, a decrease of $8.7 million
compared to $52.0 million for the nine months ended September 30, 2022. The decrease was due to lower Notes
outstanding following redemptions since September 30, 2022.
Decrease (increase) in Provision for Discounting and Credit Losses
Decrease in provision for discounting and credit losses of $4.3 million in the nine months ended September 30,
2023, a favorable movement of $4.8 million compared to increase in provision for discounting and credit losses
of $0.6 million for the nine months ended September 30, 2022. The lower provision was primarily driven by timely
collection of certain overdue trade receivables at December 31, 2022 during the nine months ended September
30, 2023.
Other, net
Other, net was $17.7 million in the nine months ended September 30, 2023, a decrease of $37.5 million compared
to the net gain of $55.2 million for the nine months ended September 30, 2022. The decrease was driven by
lower foreign exchange gains on translation of short-term inter-entity balances in certain entities within the group
that are denominated in currencies other than their respective functional currencies.
Income Tax Expense
Income tax expense of $37.8 million for the nine months ended September 30, 2023 decreased by $197.6 million,
compared to $235.4 million tax expense for the nine months ended September 30, 2022, primarily driven by
lower net income before tax in the 2023 period.
The income tax expense for the nine months ended September 30, 2023 is based on an annual effective tax rate
of 18.5%, which includes a discrete benefit of $2.1 million relating to prior year for Australia.
Supplemental Segment Financial Data
Three months ended September 30, 2023 compared to three months ended September 30, 2022
Australia
Three months ended September 30,
2023
2022
Change
%
(in US$ thousands)
Sales volume (MMt)
2.6
2.4
0.2
7.1%
Total revenues ($)
455,774
546,485
(90,711)
(16.6)%
Coal revenues ($)
446,815
537,256
(90,441)
(16.8)%
Average realized price per Mt sold ($/Mt)
172.3
221.8
(49.5)
(22.3)%
Met sales volume (MMt)
1.8
1.7
0.1
7.2%
Met coal revenues ($)
419,032
518,010
(98,978)
(19.1)%
Average realized Met price per Mt sold ($/Mt)
236.2
313.0
(76.8)
(24.5)%
Mining costs ($)
310,727
241,674
69,053
28.6%
Mining cost per Mt sold ($/Mt)
121.7
99.8
21.9
21.9%
Operating costs ($)
487,864
458,405
29,459
6.4%
Operating costs per Mt sold ($/Mt)
188.2
189.3
(1.1)
(0.6)%
Segment Adjusted EBITDA ($)
(32,353)
88,035
(120,388)
(136.8)%
Coal revenues for our Australian Operations, for the three months ended September 30, 2023, were $446.8
million, a decrease of $90.4 million, or 16.8%, compared to $537.3 million for the three months ended September
30, 2022. This decrease was driven by lower average realized Met coal price per Mt sold of $236.2 for the three
months ended September 30, 2023, compared to $313.0 per Mt sold for the same period in 2022, when supply
in global met coal market was readjusting from the impact of the Russia and Ukraine war. The lower realized
pricing was partially offset by higher sales volume of 0.2 MMt compared to the same period in 2022. Production,
and sales, performance in the three months ended September 30, 2022, was impacted by unprecedented wet
weather events at our Australian Operations.
Operating costs were $487.9 million, an increase of $29.5 million or 6.4%, for the three months ended September
30, 2023, compared to $458.4 million for the three months ended September 30, 2022. The increase was largely
Coronado Global Resources Inc.
driven by additional fleets mobilized in 2023 to advance pre-strip overburden removal, continued inflationary
pressures on contractor and supply costs, higher freight expense and increased third-party coal purchases to
meet sales commitments. This was partially offset by favorable average foreign exchange rates on translation of
the Australian Operations. Mining cost per Mt sold for the three months ended September 30, 2023, increased
by $21.9 to $121.7, compared to the same period in 2022, driven by higher mining costs, partially offset by higher
sales volumes.
Segment Adjusted EBITDA decreased by $120.4 million, or 136.8%, to an EBITDA loss of $32.4 million for the
three months ended September 30, 2023, compared to $88.0 million for the three months ended September 30,
2022, largely driven by lower coal revenues and higher operating costs.
United States
Three months ended September 30,
2023
2022
Change
%
(in US$ thousands)
Sales volume (MMt)
1.5
1.7
(0.2)
(11.3)%
Total revenues ($)
262,056
328,172
(66,116)
(20.1)%
Coal revenues ($)
260,488
326,453
(65,965)
(20.2)%
Average realized price per Mt sold ($/Mt)
172.6
193.1
(20.5)
(10.6)%
Met sales volume (MMt)
1.4
1.6
(0.2)
(15.9)%
Met coal revenues ($)
232,870
309,609
(76,739)
(24.8)%
Average realized Met price per Mt sold ($/Mt)
170.2
191.6
(21.4)
(11.2)%
Mining costs ($)
175,883
132,380
43,503
32.9%
Mining cost per Mt sold ($/Mt)
119.3
81.4
37.9
46.6%
Operating costs ($)
215,153
182,031
33,122
18.2%
Operating costs per Mt sold ($/Mt)
142.6
107.0
35.6
33.3%
Segment Adjusted EBITDA ($)
47,630
145,890
(98,260)
(67.4)%
Coal revenues decreased by $66.0 million, or 20.2%, to $260.5 million for the three months ended September
30, 2023, compared to $326.5 million for the three months ended September 30, 2022. This decrease was
primarily a result of lower average realized Met price per Mt sold for the three months ended September 30,
2023, which was $20.5 per Mt sold below for the same period in 2022, due to lower coal price indices albeit at
the back of a less volatile coal market. Coal revenues were also impacted by lower sales volume of 0.2 MMt due
to adverse geological conditions impacting production at our Buchanan mine complex.
Operating costs increased by $33.1 million, or 18.2%, to $215.2 million for the three months ended September
30, 2023, compared to operating costs of $182.0 million for the three months ended September 30, 2022. The
increase was largely driven by higher mining costs due to continued impact of inflation on supplies and labor
costs and a higher drawdown of coal inventories, resulting from lower sales production volumes outweighing
lower sales volume when comparing the third quarter of 2023 to the third quarter of 2022. Sales volume exceeding
saleable production in the period. The increase in mining costs was partially offset by lower freight expense from
lower sales on FOB terms and lower royalties as a result of lower coal revenues.
Segment Adjusted EBITDA of $47.6 million for the three months ended September 30, 2023, decreased by $98.3
million compared to $145.9 million for the three months ended September 30, 2022, primarily driven by lower
average realized Met price per Mt sold and higher operating costs.
Corporate and Other Adjusted EBITDA
The following table presents a summary of the components of Corporate and Other Adjusted EBITDA:
Three months ended September 30,
2023
2022
Change
%
(in US$ thousands)
Selling, general, and administrative expenses
$
12,221
$
10,405
$
1,816
17.5%
Other, net
(322)
(56)
(266)
n/m
Total Corporate and Other Adjusted EBITDA
$
11,899
$
10,349
$
1,550
15.0%
n/m – Not meaningful for comparison.
Coronado Global Resources Inc.
Corporate and other costs of $11.9 million for the three months ended September 30, 2023, were $1.6 million
higher compared to $10.3 million for the three months ended September 30, 2022, due to timing of certain
corporate costs.
Mining and operating costs for the three months ended September 30, 2023 compared to three
months ended September 30, 2022
A reconciliation of segment costs and expenses, segment operating costs, and segment mining costs is shown
below:
Three months ended September 30, 2023
(in US$ thousands)
Australia
United
States
Other /
Corporate
Total
Consolidated
Total costs and expenses
$
501,021
$
236,478
$
12,488
$
749,987
Less: Selling, general and administrative
expense
—
—
(12,221)
(12,221)
Less: Depreciation, depletion and amortization
(13,157)
(21,325)
(267)
(34,749)
Total operating costs
487,864
215,153
—
703,017
Less: Other royalties
(80,726)
(11,974)
—
(92,700)
Less: Stanwell rebate
(37,100)
—
—
(37,100)
Less: Freight expenses
(49,712)
(22,034)
—
(71,746)
Less: Other non-mining costs
(9,599)
(5,262)
—
(14,861)
Total mining costs
310,727
175,883
—
486,610
Sales Volume excluding non-produced coal
(MMt)
2.6
1.5
—
4.0
Mining cost per Mt sold ($/Mt)
121.7
119.3
—
120.8
Three months ended September 30, 2022
(in US$ thousands)
Australia
United
States
Other /
Corporate
Total
Consolidated
Total costs and expenses
$
475,496
$
202,167
$
10,686
$
688,349
Less: Selling, general and administrative
expense
—
—
(10,405)
(10,405)
Less: Depreciation, depletion and amortization
(17,091)
(20,136)
(281)
(37,508)
Total operating costs
458,405
182,031
—
640,436
Less: Other royalties
(122,820)
(14,511)
—
(137,331)
Less: Stanwell rebate
(54,575)
—
—
(54,575)
Less: Freight expenses
(37,885)
(25,141)
—
(63,026)
Less: Other non-mining costs
(1,451)
(9,999)
—
(11,450)
Total mining costs
241,674
132,380
—
374,054
Sales Volume excluding non-produced coal
(MMt)
2.4
1.6
—
4.0
Mining cost per Mt sold ($/Mt)
99.8
81.4
—
92.4
Average realized Met price per Mt sold for the three months ended September 30, 2023 compared to
three months ended September 30, 2022
A reconciliation of the Company’s average realized Met price per Mt sold is shown below:
Three months ended September 30,
2023
2022
Change
%
(in US$ thousands)
Met sales volume (MMt)
3.1
3.3
(0.2)
(4.3)%
Met coal revenues ($)
651,902
827,619
(175,717)
(21.2)%
Average realized Met price per Mt sold ($/Mt)
207.4
253.0
(45.6)
(18.0)%
Coronado Global Resources Inc.
Nine months ended September 30, 2023 compared to Nine months ended September 30, 2022
Australia
Nine months ended September 30,
2023
2022
Change
%
(in US$ thousands)
Sales volume (MMt)
7.2
7.5
(0.3)
(3.8)%
Total revenues ($)
1,286,242
1,730,172
(443,930)
(25.7)%
Coal revenues ($)
1,260,741
1,701,901
(441,160)
(25.9)%
Average realized price per Mt sold ($/Mt)
174.0
225.9
(51.9)
(23.0)%
Met sales volume (MMt)
5.0
5.0
—
0.5%
Met coal revenues ($)
1,195,413
1,615,364
(419,951)
(26.0)%
Average realized Met price per Mt sold ($/Mt)
238.5
323.9
(85.4)
(26.4)%
Mining costs ($)
772,561
648,965
123,596
19.0%
Mining cost per Mt sold ($/Mt)
107.8
89.3
18.5
20.7%
Operating costs ($)
1,249,490
1,206,022
43,468
3.6%
Operating costs per Mt sold ($/Mt)
172.5
160.1
12.4
7.7%
Segment Adjusted EBITDA ($)
35,580
523,319
(487,739)
(93.2)%
Coal revenues for our Australian Operations for the nine months ended September 30, 2023, were $1,260.7
million, a decrease of $441.2 million, or 25.9%, compared to $1,701.9 million for the nine months ended
September 30, 2022. This decrease was driven by lower average realized Met price per Mt sold of $238.5, $85.4
per Mt lower compared to $323.9 per Mt sold for the nine months ended September 30, 2022, as Met coal price
index rebalanced from record highs achieved in 2022, particularly in the first half of 2022, as steel demand
weakened. Coal revenues were further impacted by significant wet weather events and equipment breakdown
and their associated recovery time resulting in sales volumes 0.3 MMt lower compared to the nine months ended
September 30, 2022.
Operating costs increased by $43.5 million, or 3.6%, for the nine months ended September 30, 2023, compared
to the nine months ended September 30, 2022, primarily driven by higher mining costs and freight expense.
Mining costs were $123.6 million higher for the nine months ended September 30, 2023, due to additional fleets
mobilized in 2023 to advance pre-strip overburden removal, the continued impact of inflation on contractor and
supply costs, and costs associated with equipment breakdown. This increase was partially offset by favorable
average foreign exchange on translation of our Australian Operations and lower Stanwell rebate and other
royalties expense. Increase in costs and lower sales volumes saw Mining and Operating costs per Mt sold
increased by $18.5 and $12.4, respectively, compared to the same period in 2022.
For the nine months ended September 30, 2023, Adjusted EBITDA of $35.6 million, were $487.7 million lower
compared to $523.3 million for the nine months ended September 30, 2022. This decrease was a result of lower
coal revenues and higher mining and operating costs.
United States
Nine months ended September 30,
2023
2022
Change
%
(in US$ thousands)
Sales volume (MMt)
4.5
4.9
(0.4)
(8.1)%
Total revenues ($)
924,828
1,124,314
(199,486)
(17.7)%
Coal revenues ($)
902,352
1,119,433
(217,081)
(19.4)%
Average realized price per Mt sold ($/Mt)
201.2
230.5
(29.3)
(12.6)%
Met sales volume (MMt)
3.9
4.7
(0.8)
(18.4)%
Met coal revenues ($)
773,184
1,098,186
(325,002)
(29.6)%
Average realized Met price per Mt sold ($/Mt)
199.5
232.4
(32.9)
(14.0)%
Mining costs ($)
437,860
396,562
41,298
10.4%
Mining cost per Mt sold ($/Mt)
101.6
85.0
16.6
19.8%
Operating costs ($)
579,922
547,632
32,290
5.9%
Operating costs per Mt sold ($/Mt)
129.3
112.8
16.5
14.8%
Segment Adjusted EBITDA ($)
349,160
578,183
(229,023)
(39.6)%
Coal revenues decreased by $217.1 million, or 19.4%, to $902.4 million for the nine months ended September
30, 2023, compared to $1,119.4 million for the nine months ended September 30, 2022. This decrease was
Coronado Global Resources Inc.
primarily due to lower average realized Met price per Mt sold for the nine months ended September 30, 2023 of
$199.5 compared to $232.4 per Mt sold for the same period in 2022, product mix skewed towards lower quality
Met coal and lower sales volume driven by lower production which was impacted by adverse geological conditions
and wet weather events in the 2023 period.
Operating costs of $580.0 million were $32.3 million higher compared to $547.6 million for the nine months ended
September 30, 2023. Mining costs contributed $41.3 million of the increase driven by continued inflationary
impact on labor and supply costs and unplanned maintenance costs. Mining and Operating costs per Mt sold
increased by $16.6 and $16.5, respectively, due to lower sales volume and higher costs in the nine months ended
September 30, 2023.
Adjusted EBITDA of $349.2 million decreased by $229.0 million, or 39.6%, for the nine months ended September
30, 2023, compared to $578.2 million for the nine months ended September 30, 2022. This decrease was
primarily driven by lower coal revenues and higher mining and operating costs.
Corporate and Other Adjusted EBITDA
The following table presents a summary of the components of Corporate and Other Adjusted EBITDA:
Nine months ended September 30,
2023
2022
Change
%
(in US$ thousands)
Selling, general, and administrative expenses
$
29,976
$
28,657
$
1,319
4.6%
Other, net
(888)
(78)
(810)
n/m
Total Corporate and Other Adjusted EBITDA
$
29,088
$
28,579
$
509
1.8%
n/m – Not meaningful for comparison.
Corporate and other costs of $29.1 million for the nine months ended September 30, 2023, were $0.5 million
higher compared to $28.6 million for the nine months ended September 30, 2022, due to timing of certain
corporate costs.
Coronado Global Resources Inc.
Mining and operating costs for the Nine months ended September 30, 2023 compared to Nine months
ended September 30, 2022
A reconciliation of segment costs and expenses, segment operating costs, and segment mining costs is shown
below:
Nine months ended September 30, 2023
(in US$ thousands)
Australia
United
States
Other /
Corporate
Total
Consolidated
Total costs and expenses
$
1,297,492
$
644,168
$
30,780
$
1,972,440
Less: Selling, general and administrative
expense
—
—
(29,976)
(29,976)
Less: Depreciation, depletion and amortization
(48,002)
(64,246)
(804)
(113,052)
Total operating costs
1,249,490
579,922
—
1,829,412
Less: Other royalties
(231,443)
(37,163)
—
(268,606)
Less: Stanwell rebate
(105,357)
—
—
(105,357)
Less: Freight expenses
(120,747)
(71,795)
—
(192,542)
Less: Other non-mining costs
(19,382)
(33,104)
—
(52,486)
Total mining costs
772,561
437,860
—
1,210,421
Sales Volume excluding non-produced coal
(MMt)
7.2
4.3
—
11.5
Mining cost per Mt sold ($/Mt)
107.8
101.6
—
105.5
Nine months ended September 30, 2022
(in US$ thousands)
Australia
United
States
Other /
Corporate
Total
Consolidated
Total costs and expenses
$
1,270,397
$
609,291
$
29,524
$
1,909,212
Less: Selling, general and administrative
expense
—
—
(28,657)
(28,657)
Less: Depreciation, depletion and amortization
(64,375)
(61,659)
(867)
(126,901)
Total operating costs
1,206,022
547,632
—
1,753,654
Less: Other royalties
(259,140)
(40,571)
—
(299,711)
Less: Stanwell rebate
(124,160)
—
—
(124,160)
Less: Freight expenses
(116,386)
(72,930)
—
(189,316)
Less: Other non-mining costs
(57,371)
(37,569)
—
(94,940)
Total mining costs
648,965
396,562
—
1,045,527
Sales Volume excluding non-produced coal
(MMt)
7.3
4.7
—
11.9
Mining cost per Mt sold ($/Mt)
89.3
85.0
—
87.6
Average realized Met price per Mt sold for the Nine months ended September 30, 2023 compared to
Nine months ended September 30, 2022
A reconciliation of the Company’s average realized Met price per Mt sold is shown below:
Nine months ended September 30,
2023
2022
Change
%
(in US$ thousands)
Met sales volume (MMt)
8.9
9.7
(0.8)
(8.7)%
Met coal revenues ($)
1,968,597
2,713,550
(744,953)
(27.5)%
Average realized Met price per Mt sold ($/Mt)
221.5
279.4
(57.9)
(20.7)%
Coronado Global Resources Inc.
Reconciliation of Non-GAAP Financial Measures
Adjusted EBITDA
Three months ended September
30,
Nine months ended September
30,
(in US$ thousands)
2023
2022
2023
2022
Reconciliation to Adjusted EBITDA:
Net (loss) income
$
(21,083)
$
150,575
$
178,088
$
712,468
Add: Depreciation, depletion and amortization
34,749
37,508
113,052
126,901
Add: Interest expense (net of interest income)
14,496
17,220
43,341
52,034
Add: Other foreign exchange gains
(7,859)
(31,917)
(17,265)
(55,064)
Add: Loss on extinguishment of debt
1,385
—
1,385
—
Add: Income tax expense
(18,230)
51,423
37,775
235,391
Add: Losses on idled assets
456
(1,221)
3,531
621
Add: (Decrease) increase in provision for
discounting and credit losses
(536)
(12)
(4,255)
572
Adjusted EBITDA
$
3,378
$
223,576
$
355,652
$
1,072,923
Liquidity and Capital Resources
Overview
Our objective is to maintain a prudent capital structure and to ensure that sufficient liquid assets and funding is
available to meet both anticipated and unanticipated financial obligations, including unforeseen events that could
have an adverse impact on revenues or costs. Our principal sources of funds are cash and cash equivalents,
cash flow from operations and availability under our debt facilities.
Our main uses of cash have historically been, and are expected to continue to be, the funding of our operations,
working capital, capital expenditure, debt service obligations, business or assets acquisitions and payment of
dividends. Based on our outlook for the next twelve months, which is subject to completion of the SGI Transaction,
continued changing demand from our customers, volatility in coal prices, ongoing interruptions and uncertainties
surrounding China’s import restrictions, such as trade barriers imposed by China on Australian sourced coal and
the uncertainty of impacts from ongoing civil unrest and wars, we believe expected cash generated from
operations together with available borrowing facilities and other strategic and financial initiatives, will be sufficient
to meet the needs of our existing operations, capital expenditure, service our debt obligations and, if declared,
payment of dividends.
Under the Senior Secured Notes Indenture, upon a change of control, we are required to make an offer to
purchase the Notes from the holders at a price of 101% of the principal amount thereof, plus accrued and unpaid
interest.
Under the New ABL Facility, a change of control constitutes a Review Event pursuant to which the Lenders may
request to meet and consult with us to agree a strategy to address the relevant Review Event including but not
limited to a restructure of the terms of the New ABL Facility to the satisfaction of the Lenders. Refer to Note 10.
“Interest Bearing Liabilities” for further information.
Our ability to generate sufficient cash depends on our future performance, which may be subject to a number of
factors beyond our control, including general economic, financial and competitive conditions and other risks
described in this document, and Part I, Item 1A. “Risk Factors” of our Annual Report on Form 10-K for the year
ended December 31, 2022, filed with the SEC and ASX on February 21, 2023 , and Part II, Item 1A. “Risk Factors”
of our Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2023, filed with the SEC and ASX
on May 8, 2023.
Coronado Global Resources Inc.
Liquidity as of September 30, 2023 and December 31, 2022 was as follows:
(in US$ thousands)
September 30,
2023
December 31,
2022
Cash, excluding restricted cash
$
336,845
$
334,378
Short term deposits
21,618
—
Availability under the Predecessor ABL Facility
—
100,000
Availability under the New ABL Facility
(1)
128,382
—
Total
$
486,845
$
434,378
(1)
The New ABL Facility provides for up to $150.0 million in borrowings, including a $100.0 million sublimit for the issuance
of letters of credit, of which $21.6 million has been issued, and $70.0 million sublimit as a revolving credit facility. The letter
of credit sublimit contributes to our liquidity as the Company has the ability to replace cash collateral, provided in the form of
restricted deposits, with letters of credit allowing the release of such restricted deposits to cash and cash equivalents.
Our total indebtedness as of September 30, 2023 and December 31, 2022 consisted of the following:
(in US$ thousands)
September 30,
2023
December 31,
2022
Current installments of interest bearing liabilities
$
242,326
$
242,326
Current installments of other financial liabilities and finance lease obligations
4,040
4,585
Other financial liabilities and finance lease obligations, excluding current
installments
5,748
8,336
Total
$
252,114
$
255,247
Liquidity
As of September 30, 2023, available liquidity was $486.8 million, comprised of cash and cash equivalents
(excluding restricted cash) of $336.8 million, unrestricted short term deposits of $21.6 million and $128.4 million
of available borrowings under our New ABL Facility.
As of December 31, 2022, available liquidity was $434.4 million, comprised of cash and cash equivalents
(excluding restricted cash) of $334.4 million and $100.0 million of available borrowings under our ABL Facility.
Cash
Cash is held in multicurrency interest bearing bank accounts available to be used to service the working capital
needs of the Company. Cash balances surplus to immediate working capital requirements are invested in short-
term interest-bearing deposit accounts or used to repay interest bearing liabilities.
Senior Secured Notes
As of September 30, 2023, the outstanding principal amount of our Notes was $242.3 million . Interest on the
Notes is payable semi-annually in arrears on May 15 and November 15 of each year. The Notes mature on May
15, 2026 and are senior secured obligations of the Company.
The Notes are guaranteed on a senior secured basis by the Company and its wholly-owned subsidiaries (other
than the Issuer) (subject to certain exceptions and permitted liens) and secured by (i) a first-priority lien on
substantially all of the Company’s assets and the assets of the other guarantors (other than accounts receivable
and other rights to payment, inventory, intercompany indebtedness, certain general intangibles and commercial
tort claims, commodities accounts, deposit accounts, securities accounts and other related assets and proceeds
and products of each of the foregoing, or, collectively, the ABL Collateral), or the Notes Collateral, and (ii) a
second-priority lien on the ABL Collateral, which is junior to a first-priority lien, for the benefit of the lenders under
the ABL Facility.
The terms of the Notes are governed by the Indenture. The Indenture contains customary covenants for high
yield bonds, including, but not limited to, limitations on investments, liens, indebtedness, asset sales, transactions
with affiliates and restricted payments, including payment of dividends on capital stock.
The Company may redeem some or all of the Notes at the redemption prices and on the terms specified in the
Indenture. In addition, the Company may, from time to time, seek to retire or purchase outstanding debt through
open-market purchases, privately negotiated transactions or otherwise. Such repurchases, if any, will be upon
such terms and at such prices as the Company may determine, and will depend on prevailing market conditions,
liquidity requirements, contractual restrictions and other factors.
Coronado Global Resources Inc.
Based on information that we are currently aware of, on completion of the SGI Transaction, a “Change of Control”
as defined under the terms of the Notes may occur. Refer to Part I, Item I. Financial Statements, Note 10. “Interest
Bearing Liabilities” for further information.
As of September 30, 2023, we were in compliance with all applicable covenants under the Indenture.
New ABL Facility
On May 8, 2023, we entered into a senior secured asset-based revolving credit agreement in an initial aggregate
amount of $150.0 million, or the New ABL Facility.
On August 3, 2023, the Company satisfied all conditions precedent under the New ABL Facility, at which time it
became effective and replaced the predecessor ABL Facility.
The New ABL Facility matures in August 2026 and provides for up to $150.0 million in borrowings, including a
$100.0 million sublimit for the issuance of letters of credit and $70.0 million sublimit as a revolving credit facility.
Availability under the New ABL Facility is limited to an eligible borrowing base, determined by applying customary
advance rates to eligible accounts receivable and inventory.
Borrowings under the New ABL Facility bear interest at a rate per annum equal to applicable rate of 2.80% and
BBSY, for loans denominated in A$, or SOFR, for loans denominated in US$, at the Borrower’s election.
Subject to customary grace periods and notice requirements, the New ABL Facility also contains customary
events of default.
Based on information that we are currently aware of, on completion of the SGI Transaction, a “Change of Control”
as defined under the terms of the New ABL Facility may occur. Refer to Part I, Item I. Financial Statements, Note
10. “Interest Bearing Liabilities” for further information.
As at September 30, 2023, letter of credit sublimit had been partially used to issue $21.6 million of bank
guarantees on behalf of the Company and no amounts were drawn and no letters of credit were outstanding
under the revolving credit sublimit of New ABL Facility. As at September 30, 2023, the Company was in
compliance with all applicable covenants under the New ABL Facility.
Predecessor ABL Facility
On August 3, 2023, the Company satisfied all conditions precedent under the New ABL Facility at which time the
New ABL Facility replaced the predecessor ABL Facility. As a result of the early termination of the predecessor
ABL Facility, the Company recorded a loss on debt extinguishment of $1.4 million in its unaudited Condensed
Consolidated Statement of Operations and Comprehensive Income for each of the three and nine months ended
September 30, 2023.
Bank Guarantees and Surety Bonds
We are required to provide financial assurances and securities to satisfy contractual and other requirements
generated in the normal course of business. Some of these assurances are provided to comply with state or other
government agencies’ statutes and regulations.
As required by certain agreements, we had cash collateral in the form of deposits in the amount of $67.9 million
and $89.1 million as of September 30, 2023, and December 31, 2022, respectively, to provide back-to-back
support for bank guarantees, financial payments, other performance obligations, various other operating
agreements and contractual obligations under workers compensation insurance. These deposits are restricted
and classified as long-term assets in the unaudited Condensed Consolidated Balance Sheets.
In accordance with the terms of the ABL Facility, we may be required to cash collateralize the ABL Facility to the
extent of outstanding letters of credit after the expiration or termination date of such letter of credit. As of
September 30, 2023, no letter of credit was outstanding after the expiration or termination date and no cash
collateral was required.
For the U.S. Operations in order to provide the required financial assurance, we generally use surety bonds for
post-mining reclamation. We can also use bank letters of credit to collateralize certain obligations. As of
September 30, 2023, we had outstanding surety bonds of $40.9 million and letters of credit of $16.8 million issued
from our available bank guarantees under the New ABL Facility, to meet contractual obligations under workers
compensation insurance and to secure other obligations and commitments.
Coronado Global Resources Inc.
For the Australian Operations, we had bank guarantees outstanding of $24.1 million, including $4.9 million issued
from the New ABL Facility, as at September 30, 2023, primarily in respect of certain rail and port arrangements
of the Company.
As at September 30, 2023, we had total outstanding bank guarantees provided of $40.9 million to secure
obligations and commitments. Future regulatory changes relating to these obligations could result in increased
obligations, additional costs or additional collateral requirements.
Dividend
On February 21, 2023, our Board of Directors declared a bi-annual fully franked fixed ordinary dividend of $8.4
million, or 0.5 cents per CDI. On April 5, 2023, the Company paid $8.3 million, net of $0.1 million foreign exchange
gain on payment of dividends to certain CDI holders who elected to be paid in Australian dollars.
On August 7, 2023, our Board of Directors declared a bi-annual fully franked fixed ordinary dividend of $8.4
million, or 0.5 cents per CDI. On September 19, 2023, the Company paid $8.3 million, net of $0.1 million foreign
exchange loss on payment of dividends to certain CDI holders who elected to be paid in Australian dollars.
Capital Requirements
Our main uses of cash have historically been the funding of our operations, working capital, capital expenditure,
the payment of interest and dividends. We intend to use cash to fund debt service payments on our Notes, the
New ABL Facility and our other indebtedness, to fund operating activities, working capital, capital expenditures,
partial redemption of the Notes, business or assets acquisitions and, if declared, payment of dividends.
Historical Cash Flows
The following table summarizes our cash flows for the nine months ended September 30, 2023 and 2022, as
reported in the accompanying consolidated financial statements:
Cash Flow
Nine months ended September 30,
(in US$ thousands)
2023
2022
Net cash provided by operating activities
$
223,681
$
945,384
Net cash used in investing activities
(183,028)
(150,670)
Net cash used in financing activities
(23,005)
(483,854)
Net change in cash and cash equivalents
17,648
310,860
Effect of exchange rate changes on cash and restricted cash
(15,180)
(50,144)
Cash and restricted cash at beginning of period
334,629
437,931
Cash and restricted cash at end of period
$
337,097
$
698,647
Operating activities
Net cash provided by operating activities was $223.7 million for the nine months ended September 30, 2023,
compared to $945.4 million for the nine months ended September 30, 2022. The decrease in cash from operating
activities was driven by the lower coal revenues, higher operating costs and income tax paid during the period,
including $107.6 million relating to 2022 taxable income.
Investing activities
Net cash used in investing activities was $183.0 million
for the nine months ended September 30, 2023,
compared to $150.7 million for the nine months ended September 30, 2022. Cash spent on capital expenditures
for the nine months ended September 30, 2023 was $182.4 million, of which $ 44.3 million was related to the
Australian Operations and $ 138.1 million was related to the U.S. Operations.
Financing activities
Net cash used in financing activities was $23.0 million
for the nine months ended September 30, 2023, compared
to cash used in financing activities of $483.9 million for the nine months ended September 30, 2022. The net
cash used in financing activities for the nine months ended September 30, 2023 largely related to dividends
payment of $16.8 million, payment of deferred debt issuance costs for the New ABL Facility of $3.4 million and
repayment of borrowings and other financial liabilities of $2.8 million.
Coronado Global Resources Inc.
Included in net cash used in financing activities for the nine months ended September 30, 2022, were dividends
paid of $473.9 million and repayment of borrowings and other financial liabilities of $10.0 million.
Contractual Obligations
There were no material changes to our contractual obligations from the information previously provided in Item
7. “Management’s Discussion and Analysis of Financial Conditions and Results of Operations” of our Annual
Report on Form 10-K for the year ended December 31, 2022, filed with the SEC and ASX on February 21, 2023.
Critical Accounting Policies and Estimates
The preparation of our financial statements in conformity with U.S. GAAP requires us to make estimates and
assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and
the reported amounts of revenue and expenses during the reporting period. On an ongoing basis, we evaluate
our estimates. Our estimates are based on historical experience and various other assumptions that we believe
are appropriate, the results of which form the basis for making judgements about the carrying values of assets
and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates. All
of these accounting estimates and assumptions, as well as the resulting impact to our financial statements, have
been discussed with the Audit Committee of our Board of Directors.
Our critical accounting policies are discussed in Item 7. “Management’s Discussion and Analysis of Financial
Condition and Results of Operations” of our Annual Report on Form 10-K for the year ended December 31, 2022,
filed with the SEC and ASX on February 21, 2023.
Newly Adopted Accounting Standards and Accounting Standards Not Yet Implemented
See Note 2. (a) “Newly Adopted Accounting Standards” to our unaudited condensed consolidated financial
statements for a discussion of newly adopted accounting standards. As of September 30, 2023, there were no
accounting standards not yet implemented.
Coronado Global Resources Inc.
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
Our activities expose us to a variety of financial risks, such as commodity price risk, interest rate risk, foreign
currency risk, liquidity risk and credit risk. The overall risk management objective is to minimize potential adverse
effects on our financial performance from those risks which are not coal price related.
We manage financial risk through policies and procedures approved by our Board of Directors. These specify
the responsibility of the Board of Directors and management with regard to the management of financial risk.
Financial risks are managed centrally by our finance team under the direction of the Group Chief Financial Officer.
The finance team manages risk exposures primarily through delegated authority limits approved by the Board of
Directors. The finance team regularly monitors our exposure to these financial risks and reports to management
and the Board of Directors on a regular basis. Policies are reviewed at least annually and amended where
appropriate.
We may use derivative financial instruments such as forward fixed price commodity contracts, interest rate swaps
and foreign exchange rate contracts to hedge certain risk exposures. Derivatives for speculative purposes is
strictly prohibited by the Treasury Risk Management Policy approved by our Board of Directors. We use different
methods to measure the extent to which we are exposed to various financial risks. These methods include
sensitivity analysis in the case of interest rates, foreign exchange and other price risks and aging analysis for
credit risk.
Commodity Price Risk
Coal Price Risk
We are exposed to domestic and global coal prices. Our principal philosophy is that our investors would not
consider hedging of coal prices to be in the long-term interest of our stockholders. Therefore, any potential
hedging of coal prices through long-term fixed price contracts is subject to the approval of our Board of Directors
and would only be adopted in exceptional circumstances.
The expectation of future prices for coal depends upon many factors beyond our control. Met coal has been
volatile commodity over the past ten years. In the second quarter of 2022, seaborne prices reached record levels
with both the Australian and U.S. Met coal price indices exceeding $600 per Mt, largely as result of supply
concerns in key Met coal markets and continued trade flow disruptions caused by geopolitical tensions following
Russian invasion of Ukraine. The demand and supply in the Met coal industry changes from time to time. There
are no assurances that oversupply will not occur, that demand will not decrease or that overcapacity will not
occur, which could cause declines in the prices of coal, which could have a material adverse effect on our financial
condition and results of operations.
Access to international markets may be subject to ongoing interruptions and trade barriers due to policies and
tariffs of individual countries. For example, the imposition of tariffs and import quota restrictions by China on U.S.
and Australian coal imports, respectively, may in the future have a negative impact on our profitability. We may
or may not be able to access alternate markets of our coal should additional interruptions or trade barriers occur
in the future. An inability for metallurgical coal suppliers to access international markets, including China, would
likely result in an oversupply of Met coal and may result in a decrease in prices and or the curtailment of
production.
We manage our commodity price risk for our non-trading, thermal coal sales through the use of long-term coal
supply agreements in our U.S. Operations. In Australia, thermal coal is sold to Stanwell on a supply contract. See
Item 1A. “Risk Factors—Risks related to the Supply Deed with Stanwell may adversely affect our financial
condition and results of operations” in our Annual Report on Form 10-K filed with the SEC and ASX on February
21, 2023.
Sales commitments in the Met coal market are typically not long-term in nature, and we are therefore subject to
fluctuations in market pricing. Certain coal sales are provisionally priced initially. Provisionally priced sales are
those for which price finalization, referenced to the relevant index, is outstanding at the reporting date. The final
sales price is determined within 7 to 90 days after delivery to the customer. As of September 30, 2023, we had
$26.7 million of outstanding provisionally priced receivables subject to changes in the relevant price index. If
prices decreased 10%, these provisionally priced receivables would decrease by $2.7 million. See Item 1A. “Risk
Factors—Our profitability depends upon the prices we receive for our coal. Prices for coal are volatile and can
fluctuate widely based upon a number of factors beyond our control” in our Annual Report on Form 10-K filed
with the SEC and ASX on February 21, 2023.
Diesel Fuel
We may be exposed to price risk in relation to other commodities from time to time arising from raw materials
used in our operations (such as gas or diesel). The expectation of future prices for diesel depends upon many
factors beyond our control. The current Israel-Palestine conflict could create significant uncertainty regarding
interruptions to global oil supply causing significant volatility in prices of related commodities, including the price
Coronado Global Resources Inc.
of diesel fuel we purchase. These commodities may be hedged through financial instruments if the exposure is
considered material and where the exposure cannot be mitigated through fixed price supply agreements.
The fuel required for our operations for the remainder of fiscal year 2023 will be purchased under fixed-price
contracts or on a spot basis.
Interest Rate Risk
Interest rate risk is the risk that a change in interest rates on our borrowing facilities will have an adverse impact
on our financial performance, investment decisions and stockholder return. Our objectives in managing our
exposure to interest rates include minimizing interest costs in the long term, providing a reliable estimate of
interest costs for the annual work program and budget and ensuring that changes in interest rates will not have
a material impact on our financial performance.
As of September 30, 2023, we had $252.1 million of fixed rate borrowings and Notes and no variable-rate
borrowings outstanding.
We currently do not hedge against interest rate fluctuations.
Foreign Exchange Risk
A significant portion of our sales are denominated in US$. Foreign exchange risk is the risk that our earnings or
cash flows are adversely impacted by movements in exchange rates of currencies that are not in US$.
Our main exposure is to the A$-US$ exchange rate through our Australian Operations, which have predominantly
A$ denominated costs. Greater than 60% of expenses incurred at our Australian Operations are denominated in
A$. Approximately 40% of our Australian Operations’ purchases are made with reference to US$, which provides
a natural hedge against foreign exchange movements on these purchases (including fuel, several port handling
charges, demurrage, purchased coal and some insurance premiums). Appreciation of the A$ against US$ will
increase our Australian Operations’ US$ reported cost base and reduce US$ reported net income. For the portion
of US$ required to purchase A$ to settle our Australian Operations’ operating costs, a 10% increase in the A$ to
US$ exchange rate would increase reported total costs and expenses by approximately $34.4 million and $86.1
million for the three and nine months ended September 30, 2023, respectively.
Under normal market conditions, we generally do not consider it necessary to hedge our exposure to this foreign
exchange risk. However, there may be specific commercial circumstances, such as the hedging of significant
capital expenditure, acquisitions, disposals and other financial transactions, where we may deem foreign
exchange hedging as appropriate and where a US$ contract cannot be negotiated directly with suppliers and
other third parties.
For our Australian Operations, we translate all monetary assets and liabilities at the period-end exchange rate,
all nonmonetary assets and liabilities at historical rates and revenue and expenses at the average exchange
rates in effect during the periods. The net effect of these translation adjustments is shown in the accompanying
consolidated financial statements within components of net income.
We currently do not hedge our non-US$ exposures against exchange rate fluctuations.
Credit Risk
Credit risk is the risk of sustaining a financial loss as a result of a counterparty not meeting its obligations under
a financial instrument or customer contract.
We are exposed to credit risk when we have financial derivatives, cash deposits, lines of credit, letters of credit
or bank guarantees in place with financial institutions.
To
mitigate against credit risk from financial counterparties,
we have minimum credit rating requirements with financial institutions where we transact.
We are also exposed to counterparty credit risk arising from our operating activities, primarily from trade
receivables. Customers who wish to trade on credit terms are subject to credit verification procedures, including
an assessment of their independent credit rating, financial position, past experience and industry reputation. We
monitor the financial performance of counterparties on a routine basis to ensure credit thresholds are achieved.
Where required, we will request additional credit support, such as letters of credit, to mitigate against credit risk.
Credit risk is monitored regularly, and performance reports are provided to our management and Board of
Directors.
As of September 30, 2023, we had financial assets of $690.1 million, comprising of cash and restricted cash,
trade receivables and restricted and other deposits, which are exposed to counterparty credit risk. These financial
assets have been assessed under ASC 326,
Financial Instruments – Credit Losses
, and a provision for
discounting and credit losses of $0.8 million was recorded as of September 30, 2023.
Coronado Global Resources Inc.
ITEM 4. CONTROLS AND PROCEDURES
Disclosure Controls and Procedures
We maintain disclosure controls and procedures that are designed to ensure that information required to be
disclosed in our Exchange Act reports is recorded, processed, summarized and reported within the time periods
specified in the SEC’s rules and forms, and that such information is accumulated and communicated to our
management, including the Chief Executive Officer and the Group Chief Financial Officer, as appropriate, to allow
timely decisions regarding required disclosure based solely on the definition of “disclosure controls and
procedures” in Rule 13a-15(e) promulgated under the Exchange Act. In designing and evaluating the disclosure
controls and procedures, management recognized that any controls and procedures, no matter how well
designed and operated, can provide only reasonable assurance of achieving the desired control objectives, and
management necessarily was required to apply its judgment in evaluating the cost-benefit relationship of possible
controls and procedures.
As of the end of the period covered by this Quarterly Report on Form 10-Q, we carried out an evaluation under
the supervision and with the participation of our management, including the Chief Executive Officer and the Group
Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures.
Based on the foregoing, the Chief Executive Officer and the Group Chief Financial Officer concluded that our
disclosure controls and procedures were effective.
Changes to Internal Control over Financial Reporting
During the fiscal quarter covered by this Quarterly Report on Form 10-Q, there were no changes in the Company's
internal control over financial reporting, as such term is defined in Rule 13a-15(f) of the Exchange Act, that
materially affected, or are reasonably likely to materially affect, the Company’s internal controls over financial
reporting.
Coronado Global Resources Inc.
PART II – OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
We are subject to various legal and regulatory proceedings. For a description of our significant legal proceedings
refer to Note 16. “Contingencies” to the unaudited condensed consolidated financial statements included in
Part I, Item 1. “Financial Statements” of this Quarterly Report on Form 10-Q, which information is incorporated
by reference herein.
ITEM 1A. RISK FACTORS
Except as set forth below, there were no material changes to the risk factors previously disclosed in Part I, Item
1A, “Risk Factors”, of our Annual Report on Form 10-K for the year ended December 31, 2022, filed with the SEC
and ASX on February 21, 2023 and Part II, Item 1A, “Risk Factors”, of our Quarterly Report on Form 10-Q for the
quarterly period ended March 31, 2023, filed with the SEC and ASX on May 8, 2023.
Consummation of the proposed SGI Transaction may constitute a change of control under our Senior
Secured Notes Indenture and our New ABL Facility, which could materially and adversely affect our
business, financial condition and results of operations .
On September 25, 2023, the Sellers advised the Company that the Sellers had entered into a MIPA with SGI.
The Company understands that, pursuant to the terms of the MIPA, the Sellers agreed to sell all of their interests
in Coronado Group LLC to a wholly-owned subsidiary of SGI in the SGI Transaction. For a more detailed
description of the SGI Transaction refer to Note 17. “Related Party Transactions” to the unaudited condensed
consolidated financial statements included in Part I, Item 1. “Financial Statements” of this Quarterly Report on
Form 10-Q, which information is incorporated by reference herein.
Energy & Minerals Group has reported that following the closing of the SGI Transaction , the timing of which the
Company is not aware, SGI will be the direct or indirect owner of Coronado Group LLC. Coronado Group LLC is
currently the direct owner of 845,061,399 CDIs (representing a beneficial interest in 84,506,140 shares of
common stock, or 50.4% of the Company’s outstanding total common stock) and the one Series A Share.
The consummation of the proposed SGI Transaction may constitute a change of control under the Company’s
Senior Secured Notes Indenture, dated as of May 12, 2021, pursuant to which the Company has issued and
outstanding approximately $242.3 million aggregate principal amount of its 10.750% Senior Secured Notes due
2026, or the Notes, as of September 30, 2023. Upon a change of control, Coronado Finance Pty Ltd., the issuer
of the Notes, is required to offer to repurchase all or any part of a holder’s Notes at a purchase price in cash
equal to 101% of the principal amount thereof, plus accrued and unpaid interest, if any, to, but excluding, the
date of repurchase, subject to the terms and conditions of the indenture. Failure to consummate a required
repurchase offer, whether as a result of lack of sufficient funds or otherwise , is an event of default under the
Senior Secured Notes Indenture that would accelerate the maturity of the Notes and permit holders to pursue
available remedies.
The consummation of the proposed SGI Transaction may also constitute a change of control under our New ABL
Facility. A change of control, under the New ABL Facility constitutes a Review Event, pursuant to which the
Lenders may request to meet and consult with us to agree a strategy to address the relevant Review Event
including but not limited to, a restructure of the terms of the New ABL Facility to the satisfaction of the Lenders,
for example any unpaid amounts may become due and payable or existing undrawn commitments may be
cancelled. As of September 30, 2023, the Company had drawn down $21.6 million of borrowings and had $128.4
million of undrawn commitments under our New ABL Facility.
Should these potential events collectively occur, we may need to seek to refinance the Notes, replace the New
ABL Facility, raise new capital through a public offering or modify existing or future capital expense projects to
restore the Company’s liquidity. Although we would expect to have numerous options available to us to address
our liquidity needs, there is no assurance that the Company will be able to refinance the Notes, replace the New
ABL Facility, raise new capital through a public offering or modify existing capital expense projects, on terms
which are favorable to us, in which case and taken as a whole, our liquidity profile could deteriorate which could
materially and adversely affect our financial condition.
Coronado Global Resources Inc.
Uncertainty about the effects of the SGI Transaction may affect our potential and existing financial
arrangements and customer relationships, including contractual rights triggered upon a change of
control in connection with the SGI Transaction, and may materially and adversely affect our business,
results of operations and financial condition.
Certain contract counterparties, including customers, suppliers and third-party providers may assert contractual
rights, such as consent or termination rights that may be triggered by the consummation of the SGI Transaction.
In relation to the arrangements with Stanwell, we are required to request Stanwell’s prior consent to the change
of control that is expected to occur on consummation of the SGI Transaction. Stanwell must either give or refuse
to give consent within a specified period following receipt of the request, and may only refuse to consent if in its’
reasonable opinion, it determines, that the SGI Transaction will have a material adverse effect on the financial
ability of Coronado Curragh Pty Ltd to perform its obligations under the Stanwell agreements. In circumstances
where consent is not obtained, the Company would seek to find mutually agreeable alternative terms on which
Stanwell would consent to the change in control.
The Company is also required to request Aurizon’s consent to the change of control that is expected to occur on
consummation of the SGI Transaction under the Aurizon UT5 Rail Access Agreement. A failure to obtain
Aurizon’s consent to the consummation of the SGI Transaction will constitute a breach of the agreement, entitling
Aurizon to legal or equitable remedies which may include termination of the agreement.
For a number of customers and supplier agreements, including contractor agreements, the completion of the SGI
Transaction may trigger a financial or suitability assessment by the counterparty, which may entitle the
counterparty to terminate the agreement, request further security or seek amendments to the terms of the
agreement. The termination of these arrangements, or the requirement to provide further security, could harm
our relationships with such third parties and could have a material adverse effect on our business, financial
condition, and results of operations.
Consummation of the SGI Transaction will also constitute a “changed holder event” for the purposes of
Queensland financial provisioning legislation relating to rehabilitation obligations for the Curragh mining
tenements, which may result in the Queensland government reviewing the “risk category” to which the mining
tenements are allocated (i.e., very low, low, moderate or high), which may require us to provide further
contribution or surety to the Queensland government.
Following the consummation of the SGI Transaction, we expect that SGI through Coronado Group LLC
will have significant influence over corporate matters, including control over certain decisions that
require the approval of stockholders.
The Special Committee is reviewing the terms of the Certificate of Incorporation regarding the Series A Preferred
Stock and the terms of the Stockholder’s Agreement dated as of September 24, 2018 between the Company and
Coronado Group LLC to evaluate whether the rights ascribed collectively to “EMG” (as defined thereunder) will
inure to SGI as the new owner of the Coronado Group LLC. Even apart from those rights, SGI as the indirect
owner of a majority of the Company’s common stock will have significant influence over corporate matters.
Further, uncertainty about the timing of; and effects of the SGI Transaction on counterparties to contracts,
employees and other parties may have an adverse effect on us. These uncertainties could cause contract
counterparties and others who deal with us to seek to terminate or amend their existing business relationships
with us, and may impair our ability to attract, retain and motivate key personnel for a period of time prior to and
following the consummation of the SGI Transaction. As a result, uncertainties regarding the timing of; and impact
of the SGI Transaction on our business strategy may have a material and adverse effect on our business, financial
condition and results of operations.
ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES, USE OF PROCEEDS AND ISSUER
PURCHASES OF EQUITY SECURITIES
None.
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
None.
Coronado Global Resources Inc.
ITEM 4. MINE SAFETY DISCLOSURES
Safety is the cornerstone of the Company’s values and is the number one priority for all employees at Coronado
Global Resources Inc.
Our U.S. Operations include multiple mining complexes across three states and are regulated by both the U.S.
Mine Safety and Health Administration, or MSHA, and state regulatory agencies. Under regulations mandated
by the Federal Mine Safety and Health Act of 1977, or the Mine Act, MSHA inspects our U.S. mines on a regular
basis and issues various citations and orders when it believes a violation has occurred under the Mine Act.
In accordance with Section 1503(a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act and
Item 104 of Regulation S-K (17 CFR 229.104), each operator of a coal or other mine in the United States is
required to report certain mine safety results in its periodic reports filed with the SEC under the Exchange Act.
Information pertaining to mine safety matters is included in Exhibit 95.1 attached to this Quarterly Report on
Form 10-Q. The disclosures reflect the United States mining operations only, as these requirements do not apply
to our mines operated outside the United States.
ITEM 5. OTHER INFORMATION
During the quarter ended September 30, 2023, no director or officer (as defined in Rule 16a-1(f) promulgated
under the Exchange Act) of the Company
Coronado Global Resources Inc.
ITEM 6. EXHIBITS
The following documents are filed as exhibits hereto:
Exhibit No.
Description of Document
3.1
3.2
10.1
15.1
31.1
31.2
32.1
95.1
101.INS
Inline XBRL Instance Document
101.SCH
Inline XBRL Taxonomy Extension Schema Document
101.CAL
Inline XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF
Inline XBRL Taxonomy Extension Definition Linkbase Document
101.LAB
Inline XBRL Taxonomy Extension Label Linkbase Document
101.PRE
Inline XBRL Taxonomy Extension Presentation Linkbase Document
104
Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)
___________________________
* Certain schedules and exhibits to this agreement have been omitted pursuant to Item 601(a)(5) of Regulation
S-K. A copy of any omitted schedule and/or exhibit will be furnished to the Securities and Exchange Commission
upon request.
Coronado Global Resources Inc.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report
to be signed on its behalf by the undersigned, thereunto duly authorized.
Coronado Global Resources Inc.
By:
/s/ Gerhard Ziems
Gerhard Ziems
Group Chief Financial Officer (as duly authorized officer
and as principal financial officer of the registrant)
Date: November 8, 2023