Coronado Global Resources Inc. - Quarter Report: 2022 September (Form 10-Q)

 

 

 

 

 

 

 

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

___________________________________________________

FORM

10-Q

___________________________________________________

(Mark One)

☒

QUARTERLYREPORT PURSUANT TO SECTION 13OR 15(d) OF THE SECURITIES EXCHANGE

ACT OF 1934

For the quarterly period ended

September 30, 2022

OR

☐

TRANSITION REPORT PURSUANT TOSECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE

ACT OF 1934

For the transition period fromto

Commission File Number:

1-16247

___________________________________________________

Coronado Global Resources Inc.

(Exact name of registrant as specified in its charter)

___________________________________________________

Delaware

83-1780608

(State or other jurisdiction of

incorporation or organization)

(I.R.S. Employer

Identification No.)

Level 33, Central Plaza One

,

345 Queen Street

Brisbane, Queensland

,

Australia

4000

(Address of principal executive offices)

(Zip Code)

(

61

)

7

3031 7777

(Registrant’s telephone number, including area code)

N/A

(Former name, former address and former fiscal year, if changed since last report)

___________________________________________________

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

None

None

None

Indicate by checkmark whether theregistrant (1) has filedall reports requiredto be filedby Section 13 or15(d) of theSecurities Exchange

Act of 1934 duringthe preceding 12 months(or for such shorterperiod that the registrantwas required to filesuch reports), and (2) has

been subject to such filing requirements for the past 90 days.

Yes

☒

No

☐

Indicate by check mark whetherthe registrant has submitted electronicallyevery Interactive Data File required tobe submitted pursuant

to Rule 405of Regulation S-T(§232.405 of thischapter) during thepreceding 12 months(or for suchshorter period thatthe registrant

was required to submit such files).

Yes

☒

No

☐

Indicate by check mark whether the registrantis a large accelerated filer,an accelerated filer, a non-accelerated filer, a smaller reporting

company,oranemerginggrowthcompany.Seethedefinitionsof“largeacceleratedfiler,”“acceleratedfiler,”“smallerreporting

company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large acceleratedfiler

☐

Accelerated filer

☒

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

☐

If an emerginggrowth company, indicate bycheck mark ifthe registrant haselected not touse the extendedtransition period forcomplying

with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).Yes

☐

No

☒

The registrant’scommon stock ispublicly traded onthe Australian SecuritiesExchange in theform of CHESSDepositary Interests, or

CDIs, convertible at the option ofthe holders into shares of theregistrant’s common stock on a 10-for-1 basis.The total number of shares

of theregistrant's commonstock, parvalue $0.01per share,outstanding onOctober 31,2022, includingshares ofcommon stockunderlying

CDIs, was

167,645,373

.

Steel starts

here.

Quarterly Report on Form 10-Q for the quarterly period endedSeptember 30, 2022.

 

TABLE OF CONTENTS

Page

4

5

6

8

9

19

20

41

43

44

44

44

45

45

45

45

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Coronado Global Resources Inc.

Form 10-Q September 30, 20224

PART I – FINANCIAL INFORMATION

ITEM 1.FINANCIAL STATEMENTS

Condensed Consolidated Balance Sheets

(In US$ thousands, except share data)

Assets

Note

(Unaudited)

September 30,

2022

December 31,

2021

Current assets:

Cash and restricted cash

$

698,647

$

437,931

Trade receivables, net

418,236

271,923

Inventories

5

106,971

118,922

Other current assets

59,351

47,647

Assets held for sale

26,114

27,023

Totalcurrent assets

1,309,319

903,446

Non-current assets:

Property, plant and equipment,net

6

1,334,133

1,397,363

Right of use asset – operating leases, net

7,897

13,656

Goodwill

28,008

28,008

Intangible assets, net

3,362

3,514

Restricted deposits

14

88,439

80,981

Deferred income tax assets

—

14,716

Other non-current assets

33,252

19,728

Totalassets

$

2,804,410

$

2,461,412

Liabilities and Stockholders’ Equity

Current liabilities:

Accounts payable

$

85,353

$

97,514

Accrued expenses and other current liabilities

7

406,104

270,942

Income tax payable

108,187

25,612

Asset retirement obligations

8,803

9,414

Contract obligations

38,751

39,961

Lease liabilities

8,707

8,452

Other current financial liabilities

3,770

8,508

Liabilities held for sale

11,661

12,113

Totalcurrent liabilities

671,336

472,516

Non-current liabilities:

Asset retirement obligations

108,148

110,863

Contract obligations

101,032

141,188

Deferred consideration liability

226,311

230,492

Interest bearing liabilities

8

299,929

300,169

Other financial liabilities

9,543

13,822

Lease liabilities

6,014

12,894

Deferred income tax liabilities

109,360

75,750

Other non-current liabilities

33,226

26,216

Totalliabilities

$

1,564,899

$

1,383,910

Common stock $

0.01

par value;

1,000,000,000

shares

authorized,

167,645,373

shares issued and outstanding as of

September 30, 2022 and December 31, 2021

1,677

1,677

Series A Preferred stock $

0.01

par value;

100,000,000

shares

authorized,

1

Share issued and outstanding as of September 30, 2022

and December 31, 2021

—

—

Additional paid-in capital

1,091,651

1,089,547

Accumulated other comprehensive losses

12

(120,136)

(44,228)

Retained earnings

266,319

30,506

Totalstockholders’ equity

1,239,511

1,077,502

Totalliabilities and stockholders’ equity

$

2,804,410

$

2,461,412

See accompanying notes to unaudited condensedconsolidated financial statements.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Coronado Global Resources Inc.

Form 10-Q September 30, 20225

Unaudited Condensed Consolidated Statements ofOperations and Comprehensive Income

(In US$ thousands, except share data)

Three months ended

September 30,

Nine months ended

September 30,

Note

2022

2021

2022

2021

Revenues:

Coal revenues

$

863,709

$

563,287

$

2,821,334

$

1,246,918

Coal revenues from related parties

—

—

—

97,335

Other revenues

10,948

10,304

33,152

29,705

Totalrevenues

3

874,657

573,591

2,854,486

1,373,958

Costs and expenses:

Cost of coal revenues (exclusive of items

shown separately below)

385,504

309,513

1,140,467

889,771

Depreciation, depletion and amortization

37,508

38,461

126,901

132,754

Freight expenses

63,026

58,043

189,316

166,090

Stanwell rebate

54,575

12,274

124,160

43,169

Other royalties

137,331

39,099

299,711

83,219

Selling, general, and administrative

10,405

8,044

28,657

21,250

Restructuring costs

—

—

—

2,300

Totalcosts and expenses

688,349

465,434

1,909,212

1,338,553

Other (expense) income:

Interest expense, net

(17,220)

(18,251)

(52,034)

(49,982)

Loss on debt extinguishment

—

—

—

(5,744)

Decrease (increase) in provision for

discounting and credit losses

12

2,430

(572)

8,074

Other, net

32,898

(1,252)

55,191

(3,610)

Totalother income (expense), net

15,690

(17,073)

2,585

(51,262)

Income (loss) before tax

201,998

91,084

947,859

(15,857)

Income tax (expense) benefit

9

(51,423)

(9,096)

(235,391)

1,788

Net income (loss)

150,575

81,988

712,468

(14,069)

Less: Net loss attributable to

noncontrolling interest

—

—

—

(2)

Net income (loss) attributable to

Coronado Global Resources Inc.

$

150,575

$

81,988

$

712,468

$

(14,067)

Other comprehensive income, net of income

Foreign currency translation adjustment

12

(41,998)

(7,966)

(75,908)

(16,796)

Net gain on cash flow hedges, net of tax

—

(2,204)

—

4,045

Totalother comprehensive loss

(41,998)

(10,170)

(75,908)

(12,751)

Totalcomprehensive income (loss)

108,577

71,818

636,560

(26,820)

Less: Net loss attributable to

noncontrolling interest

—

—

—

(2)

Totalcomprehensive income (loss)

attributable to Coronado Global

Resources Inc.

$

108,577

$

71,818

$

636,560

$

(26,818)

Earnings (loss) per share of common stock

Basic

10

0.90

0.49

4.25

(0.09)

Diluted

10

0.90

0.49

4.25

(0.09)

See accompanying notes to unaudited condensedconsolidated financial statements.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Coronado Global Resources Inc.

Form 10-Q September 30, 20226

Unaudited Condensed Consolidated Statements ofStockholders’ Equity

(In US$ thousands, except share data)

Common stock

Preferred stock

Additional

Accumulated other

Total

paid in

comprehensive

Retained

Noncontrolling

stockholders

Shares

Amount

Series A

Amount

capital

losses

earnings

interest

equity

Balance December 31, 2021

167,645,373

$

1,677

1

$

—

$

1,089,547

$

(44,228)

$

30,506

$

—

$

1,077,502

Net income

—

—

—

—

—

—

269,898

—

269,898

Other comprehensive income

—

—

—

—

—

16,258

—

—

16,258

Totalcomprehensive income

—

—

—

—

—

16,258

269,898

—

286,156

Share-based compensation for equity

classified awards

—

—

—

—

84

—

—

—

84

Dividends

4

—

—

—

—

—

—

(150,881)

—

(150,881)

Balance March 31, 2022

167,645,373

$

1,677

1

$

—

$

1,089,631

$

(27,970)

$

149,523

$

—

$

1,212,861

Net income

—

—

—

—

—

—

291,995

—

291,995

Other comprehensive loss

—

—

—

—

—

(50,168)

—

—

(50,168)

Totalcomprehensive (loss) income

—

—

—

—

—

(50,168)

291,995

—

241,827

Share-based compensation for equity

classified awards

—

—

—

—

1,731

—

—

—

1,731

Dividends

4

—

—

—

—

—

—

(200,040)

—

(200,040)

Balance June 30, 2022

167,645,373

$

1,677

1

$

—

$

1,091,362

$

(78,138)

$

241,478

$

—

$

1,256,379

Net income

—

—

—

—

—

—

150,575

—

150,575

Other comprehensive loss

—

—

—

—

—

(41,998)

—

—

(41,998)

Totalcomprehensive (loss) income

—

—

—

—

—

(41,998)

150,575

—

108,577

Share-based compensation for equity

classified awards

—

—

—

—

289

—

—

—

289

Dividends

4

—

—

—

—

—

—

(125,734)

—

(125,734)

Balance September 30, 2022

167,645,373

$

1,677

1

$

—

$

1,091,651

$

(120,136)

$

266,319

$

—

$

1,239,511

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Coronado Global Resources Inc.

Form 10-Q September 30, 20227

Common stock

Preferred stock

Additional

Accumulated other

Total

paid in

comprehensive

(Accumulated

Noncontrolling

stockholders

Shares

Amount

Series A

Amount

capital

losses

losses)

interest

equity

Balance December 31, 2020

138,387,890

$

1,384

1

$

—

$

993,052

$

(28,806)

$

(158,919)

$

152

$

806,863

Net loss

—

—

—

—

—

—

(40,970)

(2)

(40,972)

Other comprehensive income (net of

$

2,111

tax)

—

—

—

—

—

317

—

—

317

Totalcomprehensive income (loss)

—

—

—

—

—

317

(40,970)

(2)

(40,655)

Share-based compensation for equity

classified awards

—

—

—

—

(538)

—

—

—

(538)

Acquisition of non-controlling interest

—

—

—

—

(703)

—

—

(150)

(853)

Balance March 31, 2021

138,387,890

$

1,384

1

$

—

$

991,811

$

(28,489)

$

(199,889)

$

—

$

764,817

Net loss

—

—

—

—

—

—

(55,085)

—

(55,085)

Other comprehensive loss (net of $

24

tax)

—

—

—

—

—

(2,898)

—

—

(2,898)

Totalcomprehensive loss

—

—

—

—

—

(2,898)

(55,085)

—

(57,983)

Issuance of common stock, net

29,257,483

293

—

—

97,448

—

—

—

97,741

Share-based compensation for equity

classified awards

—

—

—

—

737

—

—

—

737

Balance June 30, 2021

167,645,373

$

1,677

1

$

—

$

1,089,996

$

(31,387)

$

(254,974)

$

—

$

805,312

Net income

—

—

—

—

—

—

81,988

—

81,988

Other comprehensive loss (net of tax)

—

—

—

—

—

(10,170)

—

—

(10,170)

Totalcomprehensive (loss) income

—

—

—

—

—

(10,170)

81,988

—

71,818

Share-based compensation for equity

classified awards

—

—

—

—

139

—

—

—

139

Balance September 30, 2021

167,645,373

$

1,677

1

$

—

$

1,090,135

$

(41,557)

$

(172,986)

$

—

$

877,269

See accompanying notes to unaudited condensedconsolidated financial statements.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Coronado Global Resources Inc.

Form 10-Q September 30, 20228

Unaudited Condensed Consolidated Statements ofCash Flows

(In US$ thousands)

Nine months ended

September 30,

2022

2021

Cash flows from operating activities:

Net income (loss)

$

712,468

$

(14,069)

Adjustments to reconcile net income to cash and restricted cashprovided by

operating activities:

Depreciation, depletion and amortization

126,901

132,754

Amortization of right of use asset - operating leases

5,597

6,694

Amortization of deferred financing costs

1,451

2,649

Loss on debt extinguishment

—

5,744

Non-cash interest expense

23,544

21,431

Amortization of contract obligations

(26,883)

(25,612)

Loss on disposal of property,plant and equipment

433

835

Equity-based compensation expense

2,104

338

Deferred income taxes

49,929

2,189

Reclamation of asset retirement obligations

(3,961)

(2,393)

Increase (decrease) in provision for discounting and credit losses

572

(8,074)

Changes in operating assets and liabilities:

Accounts receivable - including related party receivables

(170,094)

9,783

Inventories

6,094

(12,889)

Other assets

(30,109)

12,187

Accounts payable

(3,371)

22,899

Accrued expenses and other current liabilities

161,224

16,363

Operating lease liabilities

(6,202)

(7,875)

Income tax payable

88,614

—

Change in other liabilities

7,073

8,161

Net cash provided by operating activities

945,384

171,115

Cash flows from investing activities:

Capital expenditures

(141,928)

(75,897)

Purchase of restricted deposits

(9,558)

(100,166)

Redemption of restricted deposits

816

30,281

Net cash used in investing activities

(150,670)

(145,782)

Cash flows from financing activities:

Proceeds from interest bearing liabilities and other financialliabilities

—

411,524

Debt issuance costs and other financing costs

—

(15,263)

Principal payments on interest bearing liabilities and other financialliabilities

(9,773)

(371,379)

Principal payments on finance lease obligations

(91)

—

Premiums paid on early redemption of debt

(90)

—

Dividends paid

(473,900)

—

Proceeds from stock issuance, net

—

97,741

Net cash (used in) provided by financing activities

(483,854)

122,623

Net increase in cash and restricted cash

310,860

147,956

Effect of exchange rate changes on cash and restrictedcash

(50,144)

2,287

Cash and restricted cash at beginning of period

437,931

45,736

Cash and restricted cash at end of period

$

698,647

$

195,979

Supplemental disclosure of cash flow information:

Cash payments for interest

$

19,035

$

13,681

Cash paid (refund) for taxes

$

90,888

$

(16,130)

Restricted cash

$

251

$

251

See accompanying notes to unaudited condensedconsolidated financial statements.

Coronado Global Resources Inc.

Form 10-Q September 30, 20229

NOTES TO UNAUDITED CONDENSED CONSOLIDATEDFINANCIAL STATEMENTS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NOTES TO UNAUDITED CONDENSED CONSOLIDATEDFINANCIAL STATEMENTS(Continued)

Coronado Global Resources Inc.

Form 10-Q September 30, 202210

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NOTES TO UNAUDITED CONDENSED CONSOLIDATEDFINANCIAL STATEMENTS(Continued)

Coronado Global Resources Inc.

Form 10-Q September 30, 202211

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NOTES TO UNAUDITED CONDENSED CONSOLIDATEDFINANCIAL STATEMENTS(Continued)

Coronado Global Resources Inc.

Form 10-Q September 30, 202212

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NOTES TO UNAUDITED CONDENSED CONSOLIDATEDFINANCIAL STATEMENTS(Continued)

Coronado Global Resources Inc.

Form 10-Q September 30, 202213

NOTES TO UNAUDITED CONDENSED CONSOLIDATEDFINANCIAL STATEMENTS(Continued)

Coronado Global Resources Inc.

Form 10-Q September 30, 202214

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NOTES TO UNAUDITED CONDENSED CONSOLIDATEDFINANCIAL STATEMENTS(Continued)

Coronado Global Resources Inc.

Form 10-Q September 30, 202215

 

 

 

 

 

 

 

 

 

 

 

NOTES TO UNAUDITED CONDENSED CONSOLIDATEDFINANCIAL STATEMENTS(Continued)

Coronado Global Resources Inc.

Form 10-Q September 30, 202216

NOTES TO UNAUDITED CONDENSED CONSOLIDATEDFINANCIAL STATEMENTS(Continued)

Coronado Global Resources Inc.

Form 10-Q September 30, 202217

(b)

NOTES TO UNAUDITED CONDENSED CONSOLIDATEDFINANCIAL STATEMENTS(Continued)

Coronado Global Resources Inc.

Form 10-Q September 30, 202218

Coronado Global Resources Inc.

Form 10-Q September 30, 202219

REPORT OF INDEPENDENT REGISTERED PUBLICACCOUNTING FIRM

To the Stockholdersand Board of Directors of Coronado Global ResourcesInc.

Results of Review of Interim Financial Statements

Wehavereviewedtheaccompanyingcondensedconsolidatedbalance sheetofCoronadoGlobalResources

Inc. (the Company) asof September 30, 2022, therelated condensed consolidated statements of operations and

comprehensiveincomeforthethreeandnine-monthperiodsendedSeptember30,2022and2021,the

condensed consolidatedstatements ofstockholders’ equityfor thethree-month periodsended March31,June

30 and September 30, 2022 and 2021, the condensed consolidated statements of cash flows for the nine-month

periods ended September30, 2022 and 2021,and the relatednotes (collectively referredto as the “condensed

consolidated interim financialstatements”). Based on ourreviews, we arenot aware ofany material modifications

that should be made to thecondensed consolidated interim financial statements for them to bein conformity with

U.S. generally accepted accounting principles.

Wehavepreviouslyaudited,inaccordancewiththestandardsofthePublicCompanyAccountingOversight

Board (United States) (PCAOB), theconsolidated balance sheet of the Companyas of December 31, 2021, the

related consolidated statementsof operationsand comprehensiveincome, stockholders'equity and cashflows

for the year then ended, andthe related notes (not presented herein), andin our report dated February 22, 2022,

weexpressedanunqualifiedauditopiniononthoseconsolidatedfinancialstatements.Inouropinion,the

information setforth inthe accompanyingcondensed consolidatedbalance sheetas of December31, 2021,is

fairly stated, in all materialrespects, in relation to the consolidated balancesheet from which it has been derived.

Basis for Review Results

These financialstatementsare theresponsibilityof theCompany'smanagement.Weare apublic accounting

firm registered with the PCAOB and are requiredto be independent with respect to the Companyin accordance

with theU.S. federalsecurities lawsand theapplicable rulesand regulationsof theSEC andthe PCAOB.We

conducted our reviewin accordance withthe standards ofthe PCAOB. Areview of interimfinancial statements

consists principallyof applyinganalytical proceduresand makinginquiries ofpersonsresponsible forfinancial

and accounting matters.It is substantiallyless in scopethan an auditconducted in accordancewith 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, 2022.

Coronado Global Resources Inc.

Form 10-Q September 30, 202220

ITEM 2.MANAGEMENT’S DISCUSSIONAND ANALYSISOF FINANCIALCONDITION ANDRESULTSOF

OPERATIONS

The followingManagement’s Discussionand Analysisof our FinancialCondition andResults ofOperations, or

MD&A, should be read in conjunction with the unaudited Condensed Consolidated Financial Statements and the

related notes tothose statements includedelsewhere in thisForm 10-Q. In addition,this Form 10-Q reportshould

be read in conjunctionwith the ConsolidatedFinancial Statements foryear ended December 31,2021 included

in Coronado Global ResourcesInc.’s Annual Report on Form 10-Kfor the year ended December31, 2021, filed

withtheU.S.SecuritiesandExchangeCommission,orSEC,andtheAustralianSecuritiesExchange,orthe

ASX, on February 22, 2022.

Unless otherwisenoted,referencesin thisQuarterlyReport onForm 10-Qto “we,”“us,”“our,”“Company,”or

“Coronado” referto CoronadoGlobal ResourcesInc. andits consolidatedsubsidiaries andassociates, unless

the context indicates otherwise.

All production and sales volumes contained in this Quarterly Report on Form 10-Qare expressed in metric tons,

or Mt,millions ofmetric tons,or MMt,or millionsof metrictons perannum, orMMtpa, exceptwhere otherwise

stated. One Mt(1,000 kilograms) is equalto 2,204.62 pounds andis equivalent to 1.10231short tons. In addition,

alldollaramountscontainedhereinareexpressedinUnitedStatesdollars,orUS$,exceptwhereotherwise

stated.Referencesto“A$”arereferencestoAustraliandollars,thelawfulcurrencyoftheCommonwealthof

Australia. Some numerical figures included in this Quarterly Reporton Form 10-Q have been subject to rounding

adjustments. Accordingly, numerical figures shown astotals in certaintables may notequal the sumof 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, asamended, and Section 21E of the SecuritiesExchange Act of 1934, as amended,

or the ExchangeAct, concerningour business,operations, financialperformance andcondition, thecoal, steel

and other industries, the impact of theCOVID-19 pandemic and related governmentaland economic responses

thereto, as wellas our plans, objectivesand expectations for ourbusiness, operations, financial performance and

condition. Forward-looking statements may beidentified by words suchas “may,” “could,” “believes,” “estimates,”

“expects,”“intends,”“plans,”“anticipate,”“forecast,”“outlook,”“target,”“likely,”“considers”andothersimilar

words.

Anyforward-lookingstatementsinvolveknownandunknownrisks,uncertainties,assumptionsandother

important factors thatcould cause actualresults, performance,events or outcomesto differmaterially fromthe

results,performance,eventsoroutcomesexpressedoranticipatedinthesestatements,manyofwhichare

beyondourcontrol.Suchforward-lookingstatementsarebasedonanassessmentofpresenteconomicand

operatingconditionsonanumberofbestestimateassumptionsregardingfutureeventsandactions.These

factors are difficult to accurately predict and may be beyond our control. Factors that could affect our results, our

announcedplans,includingourplantoissuedividendsanddistributions,oraninvestmentinoursecurities

include, but are not limited to:

●

the prices we receive for our coal;

●

uncertainty inglobal economicconditions, includingthe extent,duration andimpact ofthe Russiaand

Ukraine war, as well as risks related to government actions with respect to trade agreements, treaties or

policies;

●

a decrease inthe availability or increasein costs ofkey supplies, capital equipmentor commodities, such

as diesel fuel, steel, explosives and tires;

●

the extensive forms of taxationthat our mining operationsare subject to, and futuretax regulations and

developments.Forexample,therecentamendmentstothecoalroyaltyregimeannouncedbythe

QueenslandstateGovernmentinAustraliaintroducingadditionalhighertierstothecoalroyaltyrates

applicable to our Australian Operations;

●

severe financialhardship,bankruptcy,temporary orpermanent shutdowns oroperationalchallenges,

due tofuture publichealth crisis(such asCOVID-19) or otherwise,of oneor moreof ourmajor customers,

including customers in the steel industry,key suppliers/contractors, which amongother adverse effects,

couldleadtoreduceddemandforourcoal,increaseddifficultycollectingreceivablesandcustomers

and/or suppliers asserting force majeure or other reasons for notperforming their contractual obligations

to us;

Coronado Global Resources Inc.

Form 10-Q September 30, 202221

●

our ability to generate sufficient cash to serviceour indebtedness and other obligations;

●

our indebtedness and ability tocomply with the covenants and otherundertakings under the agreements

governing such indebtedness;

●

ourabilitytocollectpaymentsfromourcustomersdependingontheircreditworthiness,contractual

performance or otherwise;

●

the demand for steel products, which impacts the demand forour metallurgical, or Met, coals;

●

risks inherent tomining operations couldimpact the amountof coal produced,cause delay orsuspend

coal deliveries, or increase the cost of operating our business;

●

the loss of, or significant reduction in, purchases by ourlargest customers;

●

risks unique to international mining and trading operations,including tariffs and other barriers to trade;

●

unfavorable economic and financial market conditions;

●

our ability to continue acquiring and developing coal reservesthat are economically recoverable;

●

uncertainties in estimating our economically recoverable coalreserves;

●

transportation for our coal becoming unavailable or uneconomicfor our customers;

●

the riskthat wemaybe requiredto payfor unusedcapacitypursuantto thetermsof ourtake-or-pay

arrangements with rail and port operators;

●

our ability to retain key personnel and attract qualifiedpersonnel;

●

any failure to maintain satisfactory labor relations;

●

our ability to obtain, renew or maintain permits and consentsnecessary for our operations;

●

potential costs or liability under applicable environmentallaws and regulations, including with respectto

anyexposuretohazardoussubstancescausedbyouroperations,aswellasanyenvironmental

contamination our properties may have or our operationsmay cause;

●

extensive regulation of our mining operations and futureregulations and developments;

●

ourabilitytoprovideappropriatefinancialassurancesforourobligationsunderapplicablelawsand

regulations;

●

assumptions underlying our asset retirement obligationsfor reclamation and mine closures;

●

concernsabouttheenvironmentalimpactsofcoalcombustion,includingpossibleimpactsonglobal

climate issues, which could resultin increased regulation ofcoal combustion and requirements toreduce

greenhouse gas,or GHG,emissions inmany jurisdictions,which couldsignificantly affectdemand for

our products or our securities and reduced access to capitaland insurance;

●

any cyber-attacks or other security breaches that disruptour operations or result in the dissemination of

proprietary or confidential information about us, our customersor other third parties;

●

the risk that we may not recover our investments in our mining, exploration and other assets, which may

require us to recognize impairment charges related to those assets;

●

risks related to divestitures and acquisitions;

●

the risk that diversity in interpretation and application of accounting principles in the mining industry may

impact our reported financial results; and

●

otherrisksanduncertaintiesdetailedherein,including,butnotlimitedto,thosediscussedin“Risk

Factors,” set forth in Part II, Item 1A of this Quarterly Reporton Form 10-Q.

Coronado Global Resources Inc.

Form 10-Q September 30, 202222

Wemakemanyofourforward-lookingstatementsbasedonouroperatingbudgetsandforecasts,whichare

based upondetailed assumptions.While webelieve thatour assumptionsare reasonable,we cautionthat itis

very difficult topredict the impactof known factors,and it isimpossible for usto anticipate allfactors that could

affect our actual results.

See Part I, Item1A. “Risk Factors”of our Annual Reporton Form 10-K forthe year ended December31, 2021,

filed with the SECand ASX on February22, 2022, andPart II, Item 1A.“Risk Factors” ofour Quarterly Reports

on Form 10-Qfor the quarterlyperiods ended March31, 2022 andJune 30, 2022,filed with theSEC and ASX

on May 9, 2022 andAugust 8, 2022, respectively,for a more complete discussionof the risks and uncertainties

mentioned aboveand fordiscussion ofother risksand uncertaintieswe facethat couldcause actualresults to

differ materially from those expressed or impliedby these forward-looking statements.

Allforward-lookingstatementsattributabletousareexpresslyqualifiedintheirentiretybythesecautionary

statements, as well as othersmade in this Quarterly Report on Form10-Q and hereafter in our otherfilings with

theSECandpubliccommunications.Youshouldevaluateallforward-lookingstatementsmadebyusinthe

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.Youshouldnotinterpretthedisclosureofanyrisktoimplythattheriskhasnotalreadymaterialized.

Furthermore, theforward-looking statementsincluded in thisQuarterly Reporton Form 10-Qare made onlyas

of the datehereof. Weundertake noobligation topublicly updateor reviseany forward-lookingstatement asa

result of new information, future events, or otherwise, exceptas required by applicable law.

Overview

Weareaglobalproducer,marketerandexporterofafullrangeofMetcoalproducts.Weownaportfolioof

operating mines and developmentprojects in Queensland, Australia,and in the states ofPennsylvania, Virginia

and West Virginia in the United States.

Our AustralianOperationscomprise the100%-ownedCurragh producingmine complex.Our U.S.Operations

comprisetwo100%-ownedproducingminecomplexes(BuchananandLogan),one100%-ownedidledmine

complex (Greenbrier) and two development properties (Mon Valleyand Russell County). In addition to Met coal,

our AustralianOperations sellthermal coaldomestically,which isused togenerate electricity,to Stanwelland

some thermalcoal inthe exportmarket. OurU.S. Operationsprimarily focuson theproduction ofMet coalfor

the North American domestic and seaborneexport markets and also produce andsell some thermal coal that is

extracted in the process of mining Met coal.

For thenine monthsended September30, 2022,we produced11.6MMt andsold 12.4MMt ofcoal. Metcoal

sales represented 78.4%of our totalvolume of coalsold and 96.2%of total coalrevenues for thenine months

ended September 30, 2022.

CokingcoalindexpricesdeclinedduringthethreemonthsendedSeptember30,2022,comparedtorecord

quarterpriceandrevenuesforthethreemonthsendedJune30,2022,duetoslowerglobalgrowthoutlook

impactingdemand,higherinflation,andacontinuationoftheCOVID-19lockdownsinChina.Priceslargely

stabilized in themonth of September2022, supported bysupply constraints fromkey Met coalmarkets caused

by wet weather and logistical issues.

Coronado hascontinued totake advantageof itsunique geographicaldiversification asa Metcoal supplierof

scale to meet the requirements of steel customers across the globe. Our U.S. Operations have taken advantage

of current unique market fundamentals createdby the trade restrictions on Russiancoal by switching coal sales

fromChinatoEuropeprovidinghigherreturnsforourproducts.Inadditiontogeographicaldiversification,

Coronado is well positionedto take advantage ofthe current price arbitragebetween the Thermaland Met coal

markets to maximize price realizations.

Our results for the nine months ended September 30, 2022 benefited from higher average realized Metprice per

Mt sold,partially offsetby (1) significantwet weather eventsimpacting production atour Australian Operations,

(2) inflationarypressure, includinghigher costof fueland laborcosts, (3)adverse geologicalconditions atour

U.S.Operationsresultinginlowerproductionandhigherequipmentmaintenancecosts,(4)additionalfleets

mobilizedatourAustralianOperationstoimprovecoalrecoveryand(5)highersalesrelatedcosts(Stanwell

rebate, royalties and freight costs).

Coal revenues of $2.8 billion for the nine monthsended September 30, 2022 increased by 109.9% comparedto

the sameperiodin2021,drivenby increasedaveragerealizedMetpriceperMt soldfrom$114.6to$279.4.

Sales volumes were lower for the nine months ended September 30,2022 compared to the same period in 2021

primarilyduetolowerproductioncausedbysignificantwetweathereventsatourAustralianOperationsand

adverse geological conditions at our U.S. Operations.Operating costs for the nine months ended September 30,

Coronado Global Resources Inc.

Form 10-Q September 30, 202223

2022 were$571.4 million,or 48.3%,higher comparedto thecorresponding periodin 2021primarily drivenby

inflationary pressures,additional contractor fleetsdeployed atour AustralianOperations to accelerateoverburden

removal to increasecoal availability,higher maintenancecost and highersales related costs,such as Stanwell

rebate, royalties, freight and demurrage costs.

Dividends

On September 20,2022, Coronadosettled itspreviously declareddividends totaling$125.7 millionwhich were

paid to stockholders from available cash.

Liquidity

As ofSeptember 30,2022, theCompany’s netcash positionwas $385.7million,consisting ofcash (excluding

restricted cash) of $698.4million and $312.7 million aggregateprincipal amount of Notes outstanding.Coronado

has availableliquidity of$798.4 millionas ofSeptember 30,2022, comprisingcash (excludingrestricted cash)

and undrawn available borrowings under our ABL facility.

Safety

ForourAustralianOperations,thetwelve-monthrollingaverageTotalReportableInjuryFrequencyRate,or

TRIFR, atSeptember 30,2022 was4.15

compared toa rateof 3.07at theend ofDecember 31,2021. Atout

U.S. Operations,the twelve-month rollingaverage TotalReportable IncidentRate, orTRIR, atSeptember30,

2022 was

2.06

compared to a rate of 2.51 at the end of December 31, 2021.Reportable rates for our Australian

and U.S. Operations are below the relevant industrybenchmarks.

The safetyof ourworkforce is ournumber one priorityand Coronado remainsfocused on thesafety and wellbeing

of all employees and contracting parties.

Segment Reporting

In accordance withAccounting Standards Codification,or ASC, 280,Segment Reporting, wehave adopted the

following reportingsegments: Australia andthe UnitedStates. Inaddition, “Other andCorporate” isnot areporting

segment but is disclosed for the purposes of reconciliationto our consolidated financial statements.

Results of Operations

How We Evaluate Our Operations

Weevaluateouroperationsbasedonthevolumeofcoalwecansafelyproduceandsellincompliancewith

regulatorystandards,andthepriceswereceiveforourcoal.Oursalesvolumeandsalespricesarelargely

dependent uponthe termsof ourcoal salescontracts, forwhich pricesgenerally areset basedon dailyindex

averages, on a quarterly basis or annual fixed pricecontracts.

Our managementuses avariety offinancial andoperating metricsto analyzeour performance.These metrics

are significant factorsin assessingour operating resultsand profitability.These financialand operating metrics

include: (i) safety and environmental metrics; (ii) Adjusted EBITDA; (iii) total sales volumes and average realized

priceperMtsold,whichwedefineastotalcoalrevenuesdividedbytotalsalesvolume;(iv) Metcoalsales

volumes and average realized Met price perMt sold, which we define as Met coalrevenues divided by Met coal

sales volume; (v) averagesegment mining costsper Mt sold,which we defineas mining costsdivided by sales

volumes (excludingnon-produced coal)for therespectivesegment; and(vi) averagesegment operatingcosts

per Mt sold, which we define as segment operating costsdivided by sales volumes for the respective segment.

Coalrevenuesareshownonourstatementofoperationsandcomprehensiveincomeexclusiveofother

revenues.Generally,exportsale contractsfor ourAustralianOperationsrequireus tobear thecostof freight

from our mines tothe applicable outboundshipping port, while freightcosts from the portto the end destination

are typicallyborne by thecustomer. Sales to theexport market fromour U.S.Operations are generallyrecognized

when titleto the coalpasses tothe customerat themine loadout similarto adomestic sale.For ourdomestic

sales,customerstypicallybearthecostoffreight.Assuch,freightexpensesareexcludedfromcostofcoal

revenues to allow for consistency and comparability inevaluating our operating performance.

Non-GAAP Financial Measures; OtherMeasures

ThefollowingdiscussionofourresultsincludesreferencestoandanalysisofAdjustedEBITDA,Segment

Adjusted EBITDA and miningcosts, which are financialmeasures not recognized inaccordance with U.S. GAAP.

Non-GAAP financialmeasures, includingAdjusted EBITDA,Segment AdjustedEBITDA andmining costs,are

used by investors to measure our operating performance.

Coronado Global Resources Inc.

Form 10-Q September 30, 202224

Adjusted EBITDA, a non-GAAP measure, is defined as earnings before interest, tax, depreciation, depletion and

amortizationandotherforeignexchangelosses.AdjustedEBITDAisalsoadjustedforcertaindiscretenon-

recurring items that we exclude inanalyzing each of our segments’operating performance. Adjusted EBITDAis

not intended toserve as analternative to U.S. GAAPmeasures of performanceand may notbe comparable to

similarly titled measures presentedby other companies. A reconciliationof Adjusted EBITDA to itsmost directly

comparable measure under U.S. GAAP is included below.

SegmentAdjustedEBITDAisdefinedasAdjustedEBITDAbyoperatingandreportingsegment,adjustedfor

certaintransactions,eliminationsoradjustmentsthatourCODMdoesnotconsiderformakingdecisionsto

allocate resources among segments or assessing segment performance.Segment Adjusted EBITDA is used as

a supplementalfinancial measureby managementand byexternal usersof ourfinancial statements,suchas

investors, industry analysts and lenders, to assess the operatingperformance of the business.

Mining costs, anon-GAAP measure, isbased onreported cost ofcoal revenues, whichis shownon ourstatement

ofoperationsandcomprehensiveincomeexclusiveoffreightexpense,Stanwellrebate,otherroyalties,

depreciation,depletionandamortization,and selling,general andadministrativeexpenses,adjusted forother

items that do not relate directly to the costs incurred to produce coal at a mine. Mining costs excludes these cost

components asour CODMdoes notview thesecosts asdirectly attributableto theproduction ofcoal. Mining

costsisusedasasupplementalfinancialmeasurebymanagement,providinganaccurateviewofthecosts

directlyattributabletotheproductionofcoalatourminingsegments,andbyexternalusersofourfinancial

statements, such asinvestors, industry analysts andratings agencies, to assessour mine operatingperformance

in comparison to the mine operating performance of othercompanies in the coal industry.

Three Months Ended September 30, 2022 Comparedto Three Months Ended September 30, 2021

Summary

The financial and operational highlights for the three monthsended September 30, 2022 include:

●

Net income forthe three months endedSeptember 30, 2022 of$150.6 million increased by$68.6 million,

from a netincome of $82.0million for thethree monthsended September 30,2021.This increase was

driven by higher revenues partially offset by higher costsand income tax expense.

●

Coking coal indexprices declined duringthe three monthsended September 30,2022, however prices

remained above historicalaverages and theaverage for thethree monthsended September30, 2021.

Elevatedpricing,combinedwiththefactthatalargeportionofourMetcoalsalesatourAustralian

Operations ispriced ona three-monthlag basis,resulted inaverage realizedMet priceper Mtsold of

$253.0 for the three monthsended September 30, 2022, 75.7%higher compared to $144.0per Mt sold

for the same period in 2021.

●

Sales volumetotaled 4.1MMt forthe threemonths endedSeptember 30,2022, comparedto 4.6MMt

for thethree monthsended September30, 2021.The lowersales volumeswere largelydriven bythe

impact of unseasonal wet weather on production performanceat our Australian Operations.

●

Adjusted EBITDA forthe three monthsended September 30,2022 of $223.6million, an increaseof $75.9

million comparedto $147.7million forthe threemonthsended September30, 2021,driven byhigher

coal sales revenues, partially offset by higheroperating costs.

●

AsofSeptember30,2022,theCompanyhadtotalavailableliquidityof$798.4million,consistingof

$698.4 million cash(excluding restrictedcash) and $100.0million of availabilityunder the ABLFacility.

The ABLFacilityis subjectto aspringingfixedchargecoverageratiotest ifavailabilityis lessthana

certain amount.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Coronado Global Resources Inc.

Form 10-Q September 30, 202225

Three months ended September 30,

2022

2021

Change

%

(in US$ thousands)

Revenues:

Coal revenues

$

863,709

$

563,287

$

300,422

53.3%

Other revenues

10,948

10,304

644

6.3%

Totalrevenues

874,657

573,591

301,066

52.5%

Costs and expenses:

Cost of coal revenues (exclusive of items

shown separately below)

385,504

309,513

75,991

24.6%

Depreciation, depletion and amortization

37,508

38,461

(953)

(2.5%)

Freight expenses

63,026

58,043

4,983

8.6%

Stanwell rebate

54,575

12,274

42,301

344.6%

Other royalties

137,331

39,099

98,232

251.2%

Selling, general, and administrative expenses

10,405

8,044

2,361

29.4%

Totalcosts and expenses

688,349

465,434

222,915

47.9%

Other income (expenses):

Interest expense, net

(17,220)

(18,251)

1,031

(5.6%)

Decrease (increase) in provision for

discounting and credit losses

12

2,430

(2,418)

(99.5%)

Other, net

32,898

(1,252)

34,150

(2,727.6%)

Totalother income (expenses), net

15,690

(17,073)

32,763

(191.9%)

Net income before tax

201,998

91,084

110,914

121.8%

Income tax expense

(51,423)

(9,096)

(42,327)

465.3%

Net income attributable to Coronado Global

Resources, Inc.

$

150,575

$

81,988

$

68,587

83.7%

Coal Revenues

Coalrevenueswere$863.7millionforthethreemonthsendedSeptember30,2022,anincreaseof$300.4

million, comparedto $563.3 million for thethree months ended September30, 2021. Supply concernsfrom key

Met coal markets supported high index prices through the September 2022 quarter which resulted in an average

realized Met priceper Mtsold of $253.0for thethree months endedSeptember 30, 2022,75.7% higher compared

to $144.0per Mtsoldfor thesameperiodin 2021.Thisincrease waspartiallyoffsetby lowerMet coalsales

volume of 3.3 MMt for the three monthsended September 30, 2022, compared to 3.7 MMt in 2021,primarily due

to above average rainfall impacting production at our AustralianOperations.

Cost of Coal Revenues (Exclusive of Items ShownSeparately Below)

Cost of coal revenues comprise costs relatedto produced tons sold, along withchanges in both the volumes and

carryingvaluesofcoalinventory.Costofcoalrevenuesincludeitemssuchasdirectoperatingcosts,which

includes employee-related costs,materials andsupplies, contractor services,coal handlingand preparation costs

and production taxes.

Totalcost of coal revenueswas $385.5 millionfor the three monthsended September 30,2022, an increaseof

$76.0 million, or 24.6%, compared to $309.5 million forthe three months ended September 30, 2021.

OurAustralianOperationscontributed$50.4milliontotheincreaseintotalcostofcoalrevenues,drivenby

additionalcontractorfleetsmobilizedtoaccelerateoverburdenremovaltoincreasecoalavailability,and

inflationarypressure,includinghigherfuelandlaborcosts,partiallyoffsetbyafavorableaverageforeign

exchange rateon translationof theAustralian Operationsfor thethree monthsended September30, 2022of

A$/US$: 0.68compared to0.74 forthe sameperiod in2021. Costof coalrevenues forour U.SOperations for

the threemonthsended September30,2022, was$25.6millionhighercomparedto thethree monthsended

September 30,2021,largely dueto theimpact ofinflation onlabor andsupply costsand increasedpurchased

coal transactions to meet sales commitments.

Coronado Global Resources Inc.

Form 10-Q September 30, 202226

Freight Expenses

Freightexpensesincludecostsassociatedwithtake-or-paycommitmentsforrailandportprovidersand

demurrage costs.Freight expensestotaled $63.0million forthe threemonths endedSeptember30, 2022,an

increase of$5.0 million,compared to$58.0 millionfor thethree monthsended September30, 2021.Our U.S.

Operations’ freight cost contributed$7.1 million to this increase,driven by coal salesunder certain contracts for

which we arrange and pay for transportation to port that did not exist to the same extent during the three months

ended September 30, 2021 andhigher demurrage costs,offset by a $2.1 milliondecrease in freight cost for our

AustralianOperationsduetolowersalesvolumeandafavorableforeignexchangerateontranslationofthe

Australian Operations.

Stanwell Rebate

The Stanwellrebate was$54.6 millionfor thethree monthsended September30, 2022,an increaseof $42.3

million, comparedto $12.3million forthe threemonths endedSeptember 30,2021. Theincrease waslargely

driven byhigher realizedexportreference coalpricingfor theprior twelve-monthperiodused tocalculatethe

rebate partially offset by favorable average foreignexchange rate on translation of the AustralianOperations.

Other Royalties

Other royalties were $137.3 million in the three months ended September 30, 2022, anincrease of $98.2 million,

as compared to$39.1 million forthe three monthsended September 30,2021. Higher royaltieswere a product

ofhighercoalrevenuescomparedtothesameperiodin2021.EffectiveJuly1,2022,theQueensland

Government amendedMineral ResourcesRegulation 2013(Qld) introducingadditional highertiers tothe coal

royaltyrateswhichresultedinadditionalroyaltiesatourAustralianOperationsof$58.7millionforthethree

months ended September 30, 2022.

Other, net

Other,netwas$32.9millioninthethreemonthsendedSeptember30,2022,anincreaseof$34.2million

comparedto netlossof $1.3millionfor thethreemonthsendedSeptember30,2021. Theincreaseprimarily

relatestoforeignexchangegainsrecognizedinthetranslationofshort-termintra-entitybalancesincertain

entities within the group that are denominated in currenciesother than their respective functional currencies.

Income Tax (Expense) Benefit

Income tax expense of $51.4 million for thethree months ended September 30, 2022 increased by $42.3 million,

compared toa taxexpense of$9.1 millionfor thethreemonthsended September30, 2021,driven byhigher

income before tax in the 2022 period.

The incometax expensefor thethree monthsended September30, 2022is basedon anannual effectivetax

rate of 24.8%.

Coronado Global Resources Inc.

Form 10-Q September 30, 202227

Nine months ended September 30, 2022 Comparedto Nine months ended September 30, 2021

Summary

The financial and operational highlights for the nine monthsended September 30, 2022 include:

●

Net income of$712.5 million forthe nine monthsended September 30,2022 increased by$726.6 million,

from a net loss of$14.1 million for the nine monthsended September 30, 2021.The increase was driven

by revenues, partially offset by higher costs and higherincome tax expense.

●

SupplyconcernsinkeyMetcoalmarkets,includingthecontinuedimpactoftheRussianinvasionof

Ukraineonglobalsupplydynamics,andMetcoalcrossovertradesintothethermalmarketcaused

considerable volatility in coal pricing, resulting in averagerealized Met price per Mt sold of$279.4 for the

nine monthsended September30, 2022,143.8% highercompared to$114.6per Mtsold forthe nine

months ended September 30, 2021.

●

Sales volume totaled12.4 MMt forthe nine monthsended September 30,2022, or 1.1MMt lower than

the ninemonths ended September30, 2021.The lower salesvolumes were primarilydriven bysignificant

wet weatherevents atour AustralianOperations andadverse geologicalconditions atone of ourmine

complexes at our U.S. Operations.

●

Adjusted EBITDA forthe nine monthsended September30, 2022 was$1,072.9 million,an increase of

$899.5 million, from Adjusted EBITDA of $173.4 million for the nine months ended September 30, 2021.

This increase was driven by higher coal revenues,partially offset by higher operating costs.

●

Cash provided byoperating activities was $945.4million for the ninemonths ended September 30,2022,

an increase of $774.3 million compared to $171.1 millionfor the same period in 2021.

●

As ofSeptember 30,2022, theCompanyhad netcash of$385.7 million,consistingof aclosing cash

balance(excludingrestrictedcash)of$698.4millionand$312.7millionaggregateprincipalamount

outstanding of the Notes.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Coronado Global Resources Inc.

Form 10-Q September 30, 202228

Nine months ended September 30,

2022

2021

Change

%

(in US$ thousands)

Revenues:

Coal revenues

$

2,821,334

$

1,344,253

$

1,477,081

109.9%

Other revenues

33,152

29,705

3,447

11.6%

Totalrevenues

2,854,486

1,373,958

1,480,528

107.8%

Costs and expenses:

Cost of coal revenues (exclusive of items

shown separately below)

1,140,467

889,771

250,696

28.2%

Depreciation, depletion and amortization

126,901

132,754

(5,853)

(4.4%)

Freight expenses

189,316

166,090

23,226

14.0%

Stanwell rebate

124,160

43,169

80,991

187.6%

Other royalties

299,711

83,219

216,492

260.1%

Selling, general, and administrative expenses

28,657

21,250

7,407

34.9%

Restructuring costs

—

2,300

(2,300)

(100.0%)

Totalcosts and expenses

1,909,212

1,338,553

570,659

42.6%

Other income (expenses):

Interest expense, net

(52,034)

(49,982)

(2,052)

4.1%

Loss on debt extinguishment

—

(5,744)

5,744

(100.0%)

(Increase) decrease in provision for discounting

and credit losses

(572)

8,074

(8,646)

(107.1%)

Other, net

55,191

(3,610)

58,801

(1,628.8%)

Totalother income (expenses), net

2,585

(51,262)

53,847

(105.0%)

Net income (loss) before tax

947,859

(15,857)

963,716

(6,077.5%)

Income tax (expense) benefit

(235,391)

1,788

(237,179)

(13,265.0%)

Net income (loss)

712,468

(14,069)

726,537

(5,164.1%)

Less: Net loss attributable to noncontrolling

—

(2)

2

(100.0%)

Net income (loss) attributable to Coronado Global

Resources, Inc.

$

712,468

$

(14,067)

$

726,535

(5,164.8%)

Coal Revenues

Coal revenueswere $2,821.3million forthe ninemonths endedSeptember 30,2022, anincrease of$1,477.1

million, compared to $1,344.3million for the ninemonths ended September 30,2021. This increase wasdriven

by favorable market conditions and higher coal indices, whichresulted in a higher average realized Met price per

Mt sold for the nine months ended September 30, 2022 of $279.4, compared to $114.6per Mt sold for the same

period in 2021.

Cost of Coal Revenues (Exclusive of Items ShownSeparately Below)

Totalcost of coal revenues was $1,140.5 million for the nine monthsended September 30, 2022, an increase of

$250.7 million,or 28.2%,compared to$889.8 millionfor thenine monthsended September30, 2021.Cost of

coal revenues forour U.S. Operationsin the ninemonths ended September30, 2022 increasedby $117.1 million,

as comparedto thesame periodin 2021,driven bythe impactof inflationon laborand supplycosts, adverse

geologicalconditionsincertainminesofourU.S.Operationsresultinginunplannedmaintenancecosts,and

increasedpurchasedcoaltransactionstomeetsalescommitments.CostofcoalrevenuesforourAustralian

Operations inthe ninemonths endedSeptember 30,2022 increasedby $133.6million,compared tothe same

period in 2021, due to additional fleets mobilized to accelerate overburden removal, inflationary pressureon fuel

pricingandlaborcostsandincreasedpurchasedcoaltransactionstomeetsalescommitments.Highercosts

were partially offset by a favorable average foreign exchange rate on translationof the Australian Operations for

the nine months ended September 30, 2022 of A$/US$:0.71 compared to 0.76 for the same period in 2021.

Depreciation, Depletion and Amortization

Depreciation, depletionand amortizationwas $126.9million for thenine monthsended September 30,2022, a

decrease of$5.9 million,as comparedto $132.8million forthe ninemonths endedSeptember30, 2021.The

decreasewasassociatedwithfavorableaverageforeignexchangerateontranslationoftheAustralian

Operations,

partiallyoffsetbyadditionalequipmentbroughtintoserviceduringthetwelvemonthssince

September 30, 2021.

Coronado Global Resources Inc.

Form 10-Q September 30, 202229

Freight Expenses

Freight expensestotaled $189.3million forthe ninemonths endedSeptember 30,2022, anincrease of$23.2

million,comparedto$166.1millionfortheninemonthsendedSeptember30,2021.OurU.S.Operations

contributedto$28.9millionoftheincreaseduetocertaincontractsforwhichwearrangeandpayfor

transportation to port thatdid not existto the sameextent in the ninemonths ended September 30,2021, partially

offset by the benefits of lower average foreignexchange rate on translation of the Australian Operations.

Stanwell Rebate

The Stanwellrebate was$124.2 millionfor thenine monthsended September30, 2022,an increaseof $81.0

million, as compared to$43.2 million for thenine months ended September30, 2021. The increasewas largely

driven byhigher realizedexportreference coalpricingfor theprior twelve-monthperiodused tocalculatethe

rebate, partially offset bythe favorable average foreignexchange rate ontranslation of theAustralianOperations.

Other Royalties

Other royalties were$299.7 million forthe nine monthsended September 30,2022, an increaseof $216.5 million,

as compared to $83.2 million for the nine months ended September 30, 2021. Higher royalties were a product of

higher average realized exportpricing and the adverse impactof the new royalty regimeapplicable from July 1,

2022 to our Australian Operations.

Other, net

Other,netwas$55.2millionintheninemonthsendedSeptember30,2022,anincreaseof$58.8million

comparedtoanetlossof$3.6millionfortheninemonthsendedSeptember30,2021.Theincreaselargely

relatestoforeignexchangegainsrecognizedinthetranslationofshort-terminter-entitybalancesincertain

entities within the group that are denominated in currenciesother than their respective functional currencies.

Income Tax (Expense) Benefit

Income taxexpense of$235.4 million forthe ninemonths ended September30, 2022increased by$237.2 million,

as comparedto a$1.8million taxbenefit forthe ninemonths endedSeptember30, 2021,primarily drivenby

higher income before tax in the 2022 period.

The income tax expense for the ninemonths ended September 30, 2022 is basedon an annual effective taxrate

of 24.8%.

 

Coronado Global Resources Inc.

Form 10-Q September 30, 202230

Supplemental Segment Financial Data

Three months ended September 30, 2022 compared tothree months ended September 30, 2021

Australia

Three months ended September 30,

2022

2021

Change

%

(in US$ thousands)

Sales volume (MMt)

2.4

2.8

(0.4)

(12.9)%

Totalrevenues ($)

546,485

342,372

204,113

59.6%

Coal revenues ($)

537,256

332,558

204,698

61.6%

Average realized price per Mt sold ($/Mt)

221.8

119.7

102.1

85.3%

Met sales volume (MMt)

1.7

2.0

(0.3)

(16.2)%

Met coal revenues ($)

518,010

306,033

211,977

69.3%

Average realized Met price per Mt sold ($/Mt)

313.0

154.9

158.1

102.1%

Mining costs ($)

241,674

180,837

60,837

33.6%

Mining cost per Mt sold ($/Mt)

99.8

67.4

32.4

48.1%

Operating costs ($)

458,405

275,782

182,623

66.2%

Operating costs per Mt sold ($/Mt)

189.3

99.2

90.1

90.8%

Segment Adjusted EBITDA ($)

88,035

67,383

20,652

30.6%

Coal revenues forour Australian Operationsfor thethree months endedSeptember 30,2022 were$537.3 million,

an increase of$204.7 million or61.6%, comparedto $332.6 millionfor the threemonths ended September30,

2021. This increasewas largely drivenby a higheraverage realized Metprice per Mtsold for thethree months

ended September 30,2022 of$313.0 compared to$154.9 per Mtsold forthe same periodin 2021due toelevated

prices resulting from theimpact of supply concernsfrom key Met markets suchas Australia and Canada. Sales

volumeof2.4MMtdecreasedby0.4MMt,comparedto2.8MMtforthethreemonthsendedSeptember30,

2021, largelydue toabove averagerainfallat theCurragh minecompleximpacting coalminingactivitiesand

production.

Operatingcostsincreasedby$182.6million,or66.2%,forthethreemonthsendedSeptember30,2022,

compared tothe threemonths endedSeptember30, 2021.The increasewaslargelydriven byhigher mining

costs, Stanwell rebate (mainly due tohigher realized coal pricing) and otherroyalties due to higher revenues and

the newroyalty regimeintroduced bythe Queenslandgovernment fromJuly 1,2022. Miningcosts were$60.8

million, or 48.1%, higher for the three months ended September 30, 2022 compared to the same period in 2021,

primarily dueto inflationarypressuresand additionalcontractorfleets mobilizedin thefirst halfof 2022at our

AustralianOperations,partiallyoffsetbyfavorableaverageforeignexchangeontranslationofourAustralian

Operations to US$. Increased costs combined with lower sales volumes resulted in higher Mining and Operating

cost per Mt sold of $32.4 and $90.1, respectively,compared to the same period in 2021.

Segment Adjusted EBITDA of $88.0 million for the three months ended September 30, 2022 increased by $20.6

million comparedtoAdjustedEBITDAof$67.4 millionfor thethreemonthsendedSeptember30,2021. This

increase was primarily driven by higher coal revenuespartially offset by higher operating costs.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Coronado Global Resources Inc.

Form 10-Q September 30, 202231

United States

Three months ended September 30,

2022

2021

Change

%

(in US$ thousands)

Sales volume (MMt)

1.7

1.8

(0.1)

(5.7)%

Totalrevenues ($)

328,172

231,219

96,953

41.9%

Coal revenues ($)

326,453

230,729

95,724

41.5%

Average realized price per Mt sold ($/Mt)

193.1

128.7

64.4