	Page
PART I —– FINANCIAL INFORMATION

Item 1. Financial statements

Condensed Consolidated Balance Sheets as of June 30, ~~2019~~2020 and December 31, ~~2018~~2019	12

Unaudited Condensed Consolidated Statements of Operations and Comprehensive Income for the three and six months ended June 30, ~~2019~~2020 and ~~2018~~2019	23

Unaudited Condensed Consolidated Statements of Stockholders’ ~~Equity/Members’ Capital~~Equity for the three and six months ended June 30, ~~2019~~2020 and ~~2018~~2019	34

Unaudited Condensed Consolidated Statements of Cash Flows for the six months ended June 30, ~~2019~~2020 and ~~2018~~2019	45

Notes to Unaudited Condensed Consolidated Financial Statements	56

Report of Independent Registered Public Accounting Firm	2023

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	2124

Item 3. Quantitative and Qualitative Disclosures About Market Risk	4542

Item 4. Controls and Procedures	4744
PART II – OTHER INFORMATION
~~PART II — OTHER INFORMATION~~

Item 1. Legal Proceedings	4845

Item 1A. Risk Factors	4945

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	5046

Item 3. Defaults Upon Senior Securities	5046

Item 4. Mine Safety Disclosures	5046

Item 5. Other Information	5046
Item 6. Exhibits	47
~~Item 6. Exhibits~~SIGNATURES	51

~~SIGNATURE~~	5448

PART I —– FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

Condensed Consolidated Balance Sheets

(In US$ thousands, except share data)

Assets	Note	(Unaudited) June 30, 2019			December 31, 2018				Note	(Unaudited) June 30, 2020		December 31, 2019
Current assets:
Cash and restricted cash		$	46,251		$	124,881				$	36,324	$	26,553
Trade receivables		204,248			206,127				6		116,110		133,297
Related party receivables	18	59,665			36,716
Related party trade receivables									6		105,057		86,796
Income tax receivable		—			12,017						15,431		897
Inventories	6	129,424			95,103				7		138,624		162,170
Other current assets		40,722			40,914						46,831		44,109
Total current assets		480,310			515,758						458,377		453,822
Non-current assets:
Property, plant and equipment, net	7	1,603,087			1,618,558				8		1,532,736		1,632,788
Right of use asset — operating leases, net	10	64,343			—
Right of use asset – operating leases, net									11		23,313		62,566
Goodwill	8	28,008			28,008				9		28,008		28,008
Intangible assets, net	8	5,221			5,402				9		4,318		5,079
Deposits and reclamation bonds		12,541			11,635						12,152		12,227
Deferred income tax assets		7,779			11,848						27,586		2,852
Other non-current assets		17,194			18,355						14,819		17,512
Total assets		$	2,218,483		$	2,209,564				$	2,101,309	$	2,214,854
Liabilities and Stockholders’ Equity/Members’ Capital
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable		$	41,084		$	42,962				$	36,652	$	64,392
Accrued expenses and other current liabilities	9	252,351			243,496				10		251,660		238,788
Income tax payable		33,024			9,241						27,328		29,760
Asset retirement obligations		7,719			7,719						9,955		10,064
Contingent royalty consideration	16	7,293			26,832				17		—		688
Contract obligations	13	35,066			39,116				14		35,225		36,935
Lease liabilities	10	28,128			1,308				11		11,984		29,685
Other current financial liabilities		13,126			7,727						13,268		5,894
Total current liabilities		417,791			378,401						386,072		416,206
Non-current liabilities:
Asset retirement obligations		122,864			118,072						126,129		121,710
Contract obligations	13	224,433			253,578				14		186,091		204,877
Deferred consideration liability	14	164,148			155,332				15		181,400		174,605
Interest bearing liabilities									13		441,000		330,000
Other financial liabilities		2,697			4,073						457		1,546
Lease liabilities	10	52,902			2,481				11		23,678		48,165
Contingent royalty consideration	16	3,131			3,371				17		—		855
Deferred income tax liabilities		54,885			38,838						59,552		47,973
Other non-current liabilities		1,680			1,610						5,003		976
Total liabilities		1,044,531			955,756						1,409,382		1,346,913
Common stock $0.01 par value; 1,000,000,000 shares authorized, 96,651,692 shares are issued and outstanding as of June 30, 2019 and December 31, 2018		967			967
Series A Preferred stock $0.01 par value; 100,000,000 shares authorized, 1 Share issued and outstanding as of June 30, 2019 and December 31, 2018		—			—
Common stock $0.01 par value; 1,000,000,000 shares authorized, 96,651,692 shares are issued and outstanding as of June 30, 2020 and December 31, 2019											967		967
Series A Preferred stock $0.01 par value; 100,000,000 shares authorized, 1 Share issued and outstanding as of June 30, 2020 and December 31, 2019											—		—
Additional paid-in capital		1,108,041			1,107,948						820,643		820,247
Accumulated other comprehensive loss		(44,202		)	(49,609		)		18		(74,258)		(45,206)
Retained earnings		108,868			194,220
(Accumulated losses) retained earnings											(55,642)		91,712
Coronado Global Resources Inc. stockholders’ equity											691,710		867,720
Noncontrolling interest		278			282						217		221
Total stockholders’ equity		1,173,952			1,253,808						691,927		867,941
Total liabilities and stockholders’ equity		$	2,218,483		$	2,209,564				$	2,101,309	$	2,214,854
See accompanying notes to unaudited condensed consolidated financial statements.								See accompanying notes to unaudited condensed consolidated financial statements.

Coronado Global Resources Inc. Form 10-Q June 30, 20202

Table of Contents

~~See accompanying notes to unaudited condensed consolidated financial statements~~

Unaudited Condensed Consolidated Statements of Operations and Comprehensive Income

(In US$ thousands, except share data)

		Three Months Ended June 30,						Six Months Ended June 30,								Three Months EndedJune 30,				Six Months EndedJune 30,
	Note	2019			2018			2019			2018				Note	2020		2019		2020		2019
Revenues:
Coal revenues	4	$	495,385		$	479,021		$	919,329		$	571,343			3	$	286,206	$	495,385	$	605,699	$	919,329
Coal revenues from related parties	4, 18	135,305			98,489			293,158			213,003				3, 6		9,000		135,305		89,118		293,158
Other revenues	4	11,767			14,020			21,848			15,337				3		9,142		11,767		18,849		21,848
Total revenues		642,457			591,530			1,234,335			799,683						304,348		642,457		713,666		1,234,335
Costs and expenses:
Cost of coal revenues (exclusive of items shown separately below)		264,137			305,309			533,696			424,620						224,459		264,137		481,345		533,696
Depreciation, depletion and amortization		45,508			42,594			85,279			64,402						41,547		45,508		86,849		85,279
Freight expenses		52,035			40,912			89,362			45,155						40,504		52,035		82,886		89,362
Stanwell rebate		45,847			32,812			94,674			32,812						24,787		45,847		57,415		94,674
Other royalties		49,073			67,695			93,422			82,987						19,157		49,073		43,455		93,422
Selling, general, and administrative expenses		9,242			8,513			18,311			52,283						7,158		9,242		13,353		18,311
Total costs and expenses		465,842			497,835			914,744			702,259						357,612		465,842		765,303		914,744
Operating income		176,615			93,695			319,591			97,424						(53,264)		176,615		(51,637)		319,591
Other income (expenses):
Interest expense, net		(9,087		)	(18,987		)	(17,264		)	(25,488		)				(12,064)		(9,087)		(24,318)		(17,264)
Loss on debt extinguishment		—			—			—			(3,905		)
Impairment of assets															4		(63,111)		—		(63,111)		—
Other, net	5	(2,989		)	(2,391		)	1,042			(26,846		)		5		(8,537)		(2,989)		(4,485)		1,042
Total other income (expense), net		(12,076		)	(21,378		)	(16,222		)	(56,239		)				(83,712)		(12,076)		(91,914)		(16,222)
Income before tax		164,539			72,317			303,369			41,185
Income tax expense	11	(47,033		)	(12,995		)	(89,043		)	(5,534		)
Net income		117,506			59,322			214,326			35,651
(Loss) income before tax																	(136,976)		164,539		(143,551)		303,369
Income tax benefit (expense)															12		22,646		(47,033)		20,355		(89,043)
Net (loss) income																	(114,330)		117,506		(123,196)		214,326
Less: Net loss attributable to noncontrolling interest		(4		)	(2		)	(4		)	(4		)				(2)		(4)		(4)		(4)
Net income attributable to Coronado Global Resources Inc.		$	117,510		59,324			$	214,330		$	35,655

Net (loss) income attributable to Coronado Global Resources Inc.																$	(114,328)	$	117,510	$	(123,192)	$	214,330
Other comprehensive income, net of income taxes:
Foreign currency translation adjustment		(508		)	(18,695		)	(1,066		)	(18,695		)		18		39,161		(508)		(14,406)		(1,066)
Net gain on cash flow hedges, net of tax		894			—			6,473			—
Total comprehensive income		$	117,892		40,627			219,733			$	16,956
Net gain (loss) on cash flow hedges, net of tax															18		19,546		894		(14,646)		6,473
Total other comprehensive income (loss)																	58,707		386		(29,052)		5,407
Total comprehensive (loss) income																	(55,623)		117,892		(152,248)		219,733
Less: Net loss attributable to noncontrolling interest		(4		)	(2		)	(4		)	(4		)				(2)		(4)		(4)		(4)
Total comprehensive income attributable to Coronado Global Resources Inc.		$	117,896		$	40,629		$	219,737		$	16,960
Total comprehensive (loss) income attributable to Coronado Global Resources Inc.																$	(55,621)	$	117,896	$	(152,244)	$	219,737

Earnings per share of common stock
(Loss) earnings per share of common stock
Basic	15	1.22						2.22							16		(1.18)		1.22		(1.27)		2.22
Diluted	15	1.22						2.22							16		(1.18)		1.22		(1.27)		2.22

See accompanying notes to unaudited condensed consolidated financial statements.														See accompanying notes to unaudited condensed consolidated financial statements.

Coronado Global Resources Inc. Form 10-Q June 30, 20203

Table of Contents

~~See accompanying notes to unaudited condensed consolidated financial statements~~

Unaudited Condensed Consolidated Statements of Stockholders’ ~~Equity/Members’ Capital~~Equity

(In US$ thousands, except share data)

		Common stock		Preferred stock		Additional	Accumulated other	(Accumulated		Total
						paid in	comprehensive	losses) Retained	Noncontrolling	stockholders
		Shares	Amount	Series A	Amount	capital	loss	earnings	interest	equity
Balance December 31, 2019	$	96,651,692	967	1	—	820,247	(45,206)	91,712	221	867,941
Net loss		—	—	—	—	—	—	(8,863)	(2)	(8,865)
Other comprehensive loss (net of $13,781 tax)		—	—	—	—	—	(87,759)	—	—	(87,759)
Total comprehensive loss		—	—	—	—	—	(87,759)	(8,863)	(2)	(96,624)
Share-based compensation for equity classified awards		—	—	—	—	148	—	—	—	148
Dividends paid		—	—	—	—	—	—	(24,163)	—	(24,163)
Balance March 31, 2020	$	96,651,692	967	1	—	820,395	(132,965)	58,686	219	747,302
Net loss		—	—	—	—	—	—	(114,328)	(2)	(114,330)
Other comprehensive income (net of $6,534 tax)		—	—	—	—	—	58,707	—	—	58,707
Total comprehensive income (loss)		—	—	—	—	—	58,707	(114,328)	(2)	(55,623)
Share-based compensation for equity classified awards		—	—	—	—	248	—	—	—	248
Balance June 30, 2020	$	96,651,692	967	1	—	820,643	(74,258)	(55,642)	217	691,927

		Common stock		Preferred stock		Additional	Accumulated other			Total
						paid in	comprehensive	Retained	Noncontrolling	stockholders
		Shares	Amount	Series A	Amount	capital	loss	earnings	interest	equity
Balance December 31, 2018	$	96,651,692	967	1	—	1,107,948	(49,609)	194,220	282	1,253,808
Net income		—	—	—	—	—	—	96,820	—	96,820
Other comprehensive income (net of $2,391 tax)		—	—	—	—	—	5,021	—	—	5,021
Total comprehensive income		—	—	—	—	—	5,021	96,820	—	101,841
Dividends paid		—	—	—	—	—	—	(299,682)	—	(299,682)
Balance March 31, 2019	$	96,651,692	967	1	—	1,107,948	(44,588)	(8,642)	282	1,055,967
Net income (loss)		—	—	—	—	—	—	117,510	(4)	117,506
Other comprehensive income (net of $383 tax)		—	—	—	—	—	386	—	—	386
Total comprehensive income (loss)		—	—	—	—	—	386	117,510	(4)	117,892
Share-based compensation for equity classified awards		—	—	—	—	93	—	—	—	93
Balance June 30, 2019	$	96,651,692	967	1	—	1,108,041	(44,202)	108,868	278	1,173,952

See accompanying notes to unaudited condensed consolidated financial statements.

Coronado Global Resources Inc. Form 10-Q June 30, 20204

Table of Contents

Accumulated

Additional

Other

Non-

Total

Members’

Common Stock

Preferred Stock

Paid in

Comprehensive

Retained

controlling

Stockholders’

Capital

Shares

Amount

Series A

Amount

Capital

Income / (Loss)

Earnings

Interest

Equity

Balance December 31, 2018

$
—

96,651,692

967

1

—

1,107,948

(49,609
)
194,220

282

1,253,808

Net income

—

—

—

—

—

—

—

96,820

—

96,820

Other comprehensive income (net of $ 2,391 tax)

—

—

—

—

—

—

5,021

—

—

5,021

Total comprehensive income

$
—

—

—

—

—

—

5,021

96,820

—

101,841

Dividends paid

—

—

—

—

—

—

—

(299,682
)
—

(299,682
)
Balance March 31, 2019

$
—

96,651,692

967

1

—

1,107,948

(44,588
)
(8,642
)
282

1,055,967

Net income

—

—

—

—

—

—

—

117,510

(4
)
117,506

Other comprehensive income (net of $ 383 tax)

—

—

—

—

—

—

386

—

—

386

Total comprehensive income

$
—

—

—

—

—

—

386

117,510

(4
)
117,892

Share-based compensation for equity classified awards

—

—

—

—

—

93

—

—

—

93

Dividends paid

—

—

—

—

—

—

—

—

—

—

Balance June 30, 2019

$
—

96,651,692

967

1

—

1,108,041

(44,202
)
108,868

278

1,173,952

Accumulated

Additional

Other

Non-

Total

Members’

Common Stock

Preferred Stock

Paid in

Comprehensive

Retained

controlling

Members’

Capital

Shares

Amount

Series A

Amount

Capital

Income / (Loss)

Earnings

Interest

Capital

Balance December 31, 2017

$
553,524

—

—

—

—

—

—

79,539

237

633,300

Net (loss)

—

—

—

—

—

—

—

(23,669
)
(2
)
(23,671
)
Other comprehensive income

—

—

—

—

—

—

—

—

—

—

Total comprehensive income

$
—

—

—

—

—

—

—

(23,669
)
(2
)
(23,671
)
Members’ contributions

181,610

—

—

—

—

—

—

—

62

181,672

Balance March 31, 2018

735,134

—

—

—

—

—

—

55,870

297

791,301

Net income

—

—

—

—

—

—

—

59,324

(2
)
59,322

Other comprehensive income

—

—

—

—

—

—

(18,695
)
—

—

(18,695
)
Total comprehensive income

$
—

—

—

—

—

—

(18,695
)
59,324

(2
)
40,627

Members’ distributions

(30,274
)
—

—

—

—

—

—

—

—

(30,274
)
Balance June 30, 2018

704,860

—

—

—

—

—

(18,695
)
115,194

295

801,654

~~See accompanying notes to unaudited condensed consolidated financial statements~~

Unaudited Condensed Consolidated Statements of Cash Flows

(In US$ thousands)

	Six Months Ended
	June 30,
	2020		2019
Cash flows from operating activities:
Net (loss) income	$	(123,196)	$	214,326
Adjustments to reconcile net income to cash and restricted cash provided by operating activities:
Depreciation, depletion and amortization		86,849		85,404
Impairment of assets		63,111		—
Amortization of right of use asset - operating leases		9,387		10,394
Amortization of deferred financing costs		2,751		2,060
Non-cash interest expense		10,266		9,711
Amortization of contract obligations		(14,794)		(17,550)
Loss on disposal of property, plant and equipment		208		39
Decrease in contingent royalty consideration		(1,543)		(7,143)
Gain on operating lease derecognition		(1,180)		—
Equity-based compensation expense		396		93
Deferred income taxes		(6,302)		17,026
Reclamation of asset retirement obligations		(1,574)		(2,552)
Change in estimate of asset retirement obligation		—		(125)
Changes in operating assets and liabilities:
Accounts receivable - including related party receivables		(6,223)		(23,105)
Inventories		21,133		(34,562)
Other current assets		5,425		(2,287)
Accounts payable		(27,984)		(1,832)
Accrued expenses and other current liabilities		3,938		15,585
Operating lease liabilities		(10,374)		(11,073)
Change in other liabilities		(17,930)		46,807
Net cash (used in) provided by operating activities		(7,636)		301,216
Cash flows from investing activities:
Capital expenditures		(61,927)		(66,430)
Purchase of deposits and reclamation bonds		(51)		(906)
Redemption of deposits and reclamation bonds		125		—
Net cash used in investing activities		(61,853)		(67,336)
Cash flows from financing activities:
Proceeds from interest bearing liabilities and other financial liabilities, net of debt discount		145,000		109,008
Debt issuance costs and other financing costs		(2,423)		—
Principal payments on interest bearing liabilities and other financial liabilities		(39,515)		(108,073)
Principal payments on finance and capital lease obligations		(642)		(686)
Payment of contingent purchase consideration		—		(12,712)
Dividends paid		(24,162)		(299,682)
Net cash provided by (used in) financing activities		78,258		(312,145)
Net decrease in cash and restricted cash		8,769		(78,265)
Effect of exchange rate changes on cash and restricted cash		1,002		(365)
Cash and restricted cash at beginning of period		26,553		124,881
Cash and restricted cash at end of period	$	36,324	$	46,251
Supplemental disclosure of cash flow information:
Cash payments for interest	$	10,981	$	1,148
Cash paid for taxes	$	2,029	$	35,873
See accompanying notes to unaudited condensed consolidated financial statements.

Coronado Global Resources Inc. Form 10-Q June 30, 20205

Table of Contents

Six Months Ended
June 30,

2019

2018

Cash Flows From Operating Activities:

Net income

214,326

35,651

Adjustments to reconcile net income to cash and restricted cash provided by operating activities:

Depreciation, depletion and amortization

85,404

64,354

Amortization of right of use asset - operating leases

10,394

—

Amortization of deferred financing costs

2,060

2,406

Non-cash interest expense

9,711

1,886

Amortization of contract obligations

(17,550
)
(14,390
)
Loss on disposal of property, plant and equipment

39

—

Increase (decrease) in contingent royalty consideration

(7,143
)
10,973

Loss on interest rate swap

—

4,871

Equity-based compensation expense

93

—

Deferred income taxes

17,026

5,448

Reclamation of asset retirement obligations

(2,552
)
(1,415
)
Change in estimate of asset retirement obligation

(125
)
48

Changes in operating assets and liabilities:

Accounts receivable - including related party receivables

(23,105
)
(32,097
)
Inventories

(34,562
)
1,287

Other current assets

(2,287
)
(8,154
)
Accounts payable

(1,832
)
10,736

Accrued expenses and other current liabilities

15,585

60,106

Operating lease liabilities

(11,073
)
—

Change in other liabilities

46,807

(98
)
Net cash provided by operating activities

301,216

141,612

Cash Flows From Investing Activities:

Capital expenditures

(66,430
)
(46,776
)
Purchase of deposits and reclamation bonds

(906
)
(523
)
Redemption of deposits and reclamation bonds

—

171

Acquisition of Curragh, net of cash acquired

—

(537,207
)
Net cash used in investing activities

(67,336
)
(584,335
)
Cash Flows From Financing Activities:

Proceeds from interest bearing liabilities and other financial liabilities, net of debt discount

109,008

720,083

Proceeds from interest rate swap

—

28,251

Debt issuance costs and other financing costs

—

(41,951
)
Principal payments on interest bearing liabilities and other financial liabilities

(108,073
)
(155,636
)
Principal payments on finance and capital lease obligations

(686
)
(1,052
)
Payment of contingent purchase consideration

(12,712
)
—

Dividends paid

(299,682
)
—

Members’ contributions (distributions), net

—

151,336

NCI member’s contributions

—

62

Net cash provided by (used in) financing activities

(312,145
)
701,093

Net increase (decrease) in cash and restricted cash

(78,265
)
258,370

Effect of exchange rate changes on cash and restricted cash

(365
)
(2,384
)
Cash and restricted cash at beginning of period

124,881

28,069

Cash and restricted cash at end of period

46,251

284,055

Supplemental disclosure of cash flow information:

Cash payments for interest

1,148

38,665

Cash paid for taxes

35,873

4,417

~~See accompanying notes to unaudited condensed consolidated financial statements~~

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

1.Description of Business, Basis of Presentation

(a)Description of the Business

Coronado Global Resources Inc. (together with its subsidiaries, the “Company” or “Coronado”) 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 USA.

(b)Basis of Presentation

The interim unaudited condensed consolidated financial statements have been prepared in accordance with the requirements of the 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 ~~registration statement~~Annual Report on Form ~~10, as amended,~~10-K filed with the SEC and the Australian Securities Exchange, or the ASX, on ~~June 28, 2019.~~February 24, 2020.

During the year ended December 31, 2018, Coronado Group LLC and Coronado Global Resources Inc. completed a common control reorganization, or the Reorganization Transaction, of their legal entity structure. Prior to the Reorganization Transaction in August 2018, Coronado Group HoldCo LLC, the holding company of our operations in Australia, or the Australian Operations, was a wholly-owned subsidiary of Coronado Group LLC. In connection with the Reorganization Transaction, (i) Coronado Group HoldCo LLC was converted into Coronado Global Resources Inc. in August 2018 and (ii) Coronado Group LLC contributed all of the equity ownership in our operations in the United States, or the U.S. Operations, to Coronado Coal Corporation, a wholly-owned subsidiary of Coronado Global Resources Inc. Immediately following the Reorganization Transaction, Coronado Global Resources Inc. remained a wholly-owned subsidiary of Coronado Group LLC, which is currently owned by The Energy & Minerals Group, or ~~EMG Group, and certain members of our management.~~

The Reorganization Transaction was treated as a combination of entities under common control in line with Accounting Standards Codification, or ASC, 805, Business Combinations, whereby the receiving entity (the Company) recorded the contributed assets and liabilities at the carrying value of Coronado Group LLC. Prior to the Reorganization Transaction, the consolidated financial statements of the Company reflect the net assets and operations of Coronado Group LLC. The financial statements presented following the Reorganization Transaction are those of the receiving entity (the Company) and are retrospectively adjusted to present that entity as if it always held the net assets or equity interests previously held by the seller, Coronado Group LLC. As such, financial information (including comparatives) of the Company has been presented as a continuation of the pre-existing accounting values of assets and liabilities in Coronado Group LLC’s financial statements.

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 affiliates. 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, or Coronado, are used interchangeably to refer to Coronado Global Resources Inc. and its subsidiaries, or to Coronado ~~Group LLC,~~Global Resources Inc., as appropriate to the context. Interests in subsidiaries controlled by the Company are consolidated with any outside stockholder interests reflected as noncontrolling interests. All intercompany balances and transactions have been eliminated in 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, ~~2018~~2019 has been derived from the Company’s audited consolidated balance sheet at that date. The Company’s results of operations for the three and six months ended June 30, ~~2019~~2020 are not necessarily indicative of the results that may be expected for future quarters or for the year ending December 31, ~~2019.~~2020.

COVID-19

The COVID-19 global pandemic has continued to result in a challenging working environment which has significantly impacted the demand and price for metallurgical coal. Authorities in many countries around the world have implemented numerous and varying measures to reduce the spread and limit the impact of COVID-19, including travel bans and restrictions, quarantines, curfews, stay-at-home orders, business shutdowns and closures. Many countries have also commenced implementing multi-stage policies with the goal of re-opening markets and boosting economic activity. These measures have impacted and will continue to impact our mining operations, our customers, employees, suppliers and other third parties with whom we do business. The U.S. and Australia, where our mining operations are located, are in varying stages of restrictions and re-opening in response to COVID-19. There is considerable uncertainty regarding how current and future health and safety measures implemented in response to the pandemic will impact our business, including whether they will result in further changes in demand for metallurgical coal, increases in operating costs or impacts to our supply chain, and whether measures will result in port closures or border restrictions, each or all of which can impact our ability to produce and sell our coal.

The safety and wellbeing of our workforce remains our highest priority and we continue to manage the potential threat of COVID-19 at our mines and offices. The Company formed a COVID-19 taskforce spanning its Australian and U.S. operations and proactively enacted stringent preventative measures to ensure the safety and well-being of employees and contractors during the pandemic. These procedures include increased screenings of employees as they arrive at the workplace as well as strict adherence to hygiene and social distancing guidelines while at work.

Coronado Global Resources Inc. Form 10-Q June 30, 20206

Table of Contents
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Our U.S. Operations were idled in April and May 2020 due to the COVID-19 induced economic downturn and decline in demand from customers in Europe, Brazil and the U.S. While the mines were idled, the Company continued to make shipments to its customers from existing inventories which allowed the Company to meet all customer commitments. On June 1, 2020, the Company resumed operations at the Buchanan and Logan mines. Whilst production at these mines has been reduced in response to lower temporary demand, both mines are operationally well positioned to increase production quickly in the event demand increases rapidly. The Greenbrier mine remains idle and the Company will continue to monitor market developments to evaluate the duration for which the mine will remain idle. Subsequent to June 30, 2020 we have had a small number of our workforce at our U.S Operations who tested positive for the virus. We have taken all necessary steps to isolate the affected workers and protect the remaining workforce. To date these efforts have not adversely affected our production.
The global economic slowdown resulting from the effects of COVID-19 has sharply reduced the demand for steel in all markets except for China, where steel production remained elevated during the second quarter of 2020. In Australia, our sales profile has adjusted accordingly, with an increase in deliveries to the Chinese market in the quarter. Overall, the supply and demand constraints in respect of the global impacts of COVID-19 on our Australian Operations has been limited due to the unique position of the Curragh mine as a strategic supplier of ‘base load’ metallurgical coal for coke blends. While global demand remains uncertain, there are promising signs of recovery in Asia Pacific demand.
In response to the global impacts of COVID-19 on the demand for steel and the resulting impact on the price and demand for metallurgical coal, the Company has taken steps to safeguard its operations, strengthen its balance sheet and increase liquidity by reducing capital expenditures and managing operating costs in a disciplined manner. As of June 30, 2020, the Company reduced its net debt by $31.8 million to $404.9 million since March 31, 2020, and had $109.0million undrawn and available under the Syndicated Facility Agreement, or SFA, subject to a liquidity buffer of $50.0 million, and cash balances (excluding restricted cash) of $36.1 million. See Note 13 “Interest Bearing Liabilities”.
As the COVID-19 pandemic continues to evolve, the Company cannot currently predict the extent of this pandemic, which could have a material adverse impact to its business, results of operations, financial condition and ability to comply with financial covenants under the SFA.

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, ~~2018~~2019 included in Coronado Global Resources Inc.’s ~~registration statement~~Annual Report on Form ~~10, as amended,~~10-K filed with the SEC and ASX on ~~June 28, 2019.~~

~~NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)~~February 24, 2020.

(a)Newly Adopted Accounting Standards

~~Leases~~. In February 2016, the Financial Accounting Standards Board, or FASB, established Topic 842, Leases, by issuing Accounting Standards Update, or ASU, No. 2016-02, which requires lessees to recognize leases on the balance sheet and disclose key information about leasing arrangements. Topic 842 was subsequently amended by ASU No. 2018-01, Land Easement Practical Expedient for Transition to Topic 842; ASU No. 2018-10, Codification Improvements to Topic 842, Leases; and ASU No. 2018-11, Targeted Improvements. The new standard establishes a right-of-use, or ROU, model that requires a lessee to recognize a ROU asset and lease liability on the balance sheet for all leases with a term longer than 12 months. Leases are classified as finance or operating, with classification affecting the pattern and classification of expense recognition in the income statement.

On January 1, 2019, the Company adopted ASU No. 2016-02 using the modified retrospective transition approach and elected the package of practical expedients that allows it to forgo reassessment of lease classification for leases that have already commenced. The Company also elected the practical expedients to the new standard without restating comparative prior period financial information, to not recognize ROU assets and liabilities for operating leases with shorter than 12-month terms and to include both lease and non-lease components with lease payments.

In addition to existing finance leases and other financing obligations, the adoption of the new standard resulted in the recognition of ROU assets of $66.8 million and lease liabilities of $81.1 million related to operating leases. On adoption, the lease liability included reclassification of a terminal services contract liability of $14.3 million, which is classified as a lease under the newly adopted standard. There was no material impact to the Consolidated Statements of Operations and Comprehensive Income, the Consolidated Statements of Cash Flows, or the Company’s debt covenant calculations as a result of the adoption of ASU 2016-02.

ASU No. 2016-02 also requires entities to disclose certain qualitative and quantitative information regarding the amount, timing, and uncertainty of cash flows arising from leases. Such disclosures are included in Note 10 “Leases”.

~~(b)~~~~Accounting Standards Not Yet Implemented~~

Financial Instruments - Credit ~~Losses~~. Losses. In June 2016, the FASB issued ASU 2016-13 related to the measurement of credit losses on financial instruments. The pronouncement replaces the incurred loss methodology to record credit losses with a methodology that reflects the expected credit losses for financial assets not accounted for at fair value with gains and losses recognized through net income. ~~This standard is effective for fiscal years beginning after December 15, 2019 (January 1, 2020 for the Company) and interim periods therein. The Company expects to adopt ASU 2016-13 as of~~

On January 1, 2020, the Company adopted ASU 2016-13. The cumulative-effect adjustment upon adoption was not material to the Company’s results of operations and its cash flows. Changes to the Company’s accounting policies as a result of adoption are discussed below.

The Company assesses on a forward-looking basis the expected credit loss associated with its financial assets carried at amortized cost. The amount of expected credit losses is updated at each reporting date to reflect changes in credit risk since initial recognition of the ~~process~~respective financial instrument. The Company recognizes the lifetime expected credit losses for financial assets carried at amortized cost. The expected credit losses on these financial assets are estimated based on the Company’s historic credit loss experience, adjusted for factors that are specific to the financial asset, general economic conditions, financial asset type, term and an assessment of ~~evaluating~~both the ~~impacts of adoption.~~current as well as forecast conditions at the reporting date.

Fair Value Measurement. In August 2018, the FASB issued ASU 2018-13, which amended the fair value measurement guidance by removing and modifying certain disclosure requirements, while also adding new disclosure requirements.

On January 1, 2020, the Company adopted ASU 2018-13. The amendments on changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements and the narrative description of measurement uncertainty ~~should be~~were applied prospectively for only the most recent interim ~~or annual~~ period ~~presented in the initial fiscal year of adoption.~~presented. All other amendments ~~should be~~were applied retrospectively to all periods ~~presented upon their effective date.~~presented. The ~~amendments~~adoption of ASU 2018-13 did not have a material impact on the Company’s unaudited condensed consolidated financial statements.

Coronado Global Resources Inc. Form 10-Q June 30, 20207

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NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Intangibles – Goodwill and Other: Simplifying the Test for Goodwill Impairment. In January 2018, the FASB issued ASU 2017-04, which eliminates step two from the goodwill impairment test. Under ASU 2017-04, an entity should recognize an impairment charge for the amount by which the carrying amount of a reporting unit exceeds its fair value up to the amount of goodwill allocated to that reporting unit.

On January 1, 2020, the Company adopted ASU 2017-04. Changes to the Company’s accounting policies as a result of adoption are discussed below.

Goodwill is an asset representing the future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized. Goodwill is not amortized but is reviewed for impairment annually or when circumstances or other events indicate that impairment may have occurred.

The Company makes a qualitative assessment of whether it is more likely than not that a reporting unit’s fair value is less than its carrying amount. Circumstances that are considered as part of the qualitative assessment and could trigger a quantitative impairment test include but are not limited to: a significant adverse change in the business climate; a significant adverse legal judgment; adverse cash flow trends; an adverse action or assessment by a government agency; unanticipated competition; and a significant restructuring charge within a reporting unit. If a quantitative assessment is determined to be necessary, the Company compares the fair value of a reporting unit with its carrying amount, including goodwill. If the carrying amount of a reporting unit exceeds its fair value, the Company recognizes an impairment charge for the amount by which the carrying amount exceeds its fair value to the extent of the amount of goodwill allocated to that reporting unit.

The Company defines reporting units at the business unit level. For purposes of testing goodwill for impairment, goodwill has been allocated to the reporting units to the extent it relates to each reporting unit.

(b)Accounting Standards Not Yet Implemented

“Income Taxes - Simplifying the Accounting for Income Taxes” - In December 2019, the FASB issued ASU 2019-12, which is intended to simplify various aspects related to accounting for income taxes. ASU 2019-12 removes certain exceptions to the general principles in Topic 740 and clarifies and amends existing guidance to improve consistent application. ASU 2019-12 will be effective for ~~all companies for fiscal years,~~interim and ~~interim~~annual periods ~~within those years,~~ beginning after December 15, ~~2019.~~2020. The Company ~~plans to adopt all disclosure requirements effective January 1, 2020.~~is currently evaluating the impact the adoption of ASU 2019-12 will have on its consolidated financial statements.

(c)Reclassification

~~(c)~~~~Reclassification~~

Certain amounts in the prior period Condensed Consolidated Balance Sheet have been reclassified to conform to the presentation of the current period financial statements. These related to the reclassification of ~~capital lease liabilities included within “other financial liabilities and capital leases” and “other financial liabilities, excluding~~4 reportable segments into the current ~~instalments” as at December 31, 2018 to “Lease liabilities” current and non-current, respectively.~~2 reportable segments discussed in Note 3 “Segment information”. These reclassifications had no effect on the previously reported net income.

3.~~Acquisition of Curragh Complex~~

On December 22, 2017, a Membership Interest and Asset Purchase Agreement, or the Agreement, was entered by Coronado Australia Holdings Pty Ltd and Coronado Group LLC in order to acquire Wesfarmers Curragh Pty Ltd from Wesfarmers Limited (since renamed Coronado Curragh Pty Ltd), which we refer to as the Curragh acquisition. The Agreement was executed on March 29, 2018.

~~NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)~~

The aggregate base purchase price for the Membership Interest in Curragh was A$700 million and was subject to adjustments pursuant to the terms of the Agreement. The Company acquired 100% of the Membership Interest. The operating results related to the Curragh acquisition have been included in the consolidated financial statements since March 29, 2018.

~~The aggregate consideration on the date of the Curragh acquisition totaled $563.8 million.~~

Contingent consideration recognized on the date of the Curragh acquisition, specifically the Value Share Mechanism, or VSM, of $26.6 million associated with the Curragh acquisition represents the fair value of a two-year, 25% royalty on sales from metallurgical coal mined at Curragh. The royalty only applies to the realized price on metallurgical coal sales above $145 per metric ton. The VSM liability is marked-to-market at each reporting date, with any fluctuations included as an operating expense in the Consolidated Statement of Operations. The payout structure of the royalty can be replicated through a probability weighted discounted cash flow approach using a Monte Carlo simulation over a 24-month period from acquisition date. As such, the Company developed a fair value of the royalty using a Monte Carlo simulation.

In connection with the acquisition, Coronado Australia Holdings Pty Ltd incurred acquisition related costs for the six months ended June 30, 2018 of $53.8 million, $38.5 million of which is recorded in selling, general, and administrative expenses. The remainder, relating to foreign currency swap losses, is recorded in the Unaudited Condensed Consolidated Statements of Operations and Comprehensive Income under “Other, net”.

The Curragh acquisition has been accounted for using the acquisition method of accounting which requires, among other things, that assets acquired and liabilities assumed be recognized at their fair values as of the acquisition date. The following table summarizes total consideration transferred and the allocation of the purchase price to the acquired assets and liabilities:

Amount

(US$ thousands)

Fair value of total consideration transferred:

Cash consideration

$
537,207

Contingent consideration (Value Share Mechanism)

26,552

Total consideration transferred

563,759

Recognized amounts of identifiable assets acquired, and liabilities assumed:

Current assets

$
240,966

Property, plant and equipment

851,981

Deferred income tax assets

24,432

Other long-term assets

1,831

Current liabilities

(141,611
)
Contract obligations

(306,960
)
Asset retirement obligations

(104,305
)
Other long-term liabilities

(2,575
)
Total identifiable net assets acquired

$
563,759

~~No goodwill has been recorded in connection with this acquisition as the purchase consideration equaled the fair value of the net assets acquired.~~

~~The following pro forma summary reflects consolidated results of operation as if the Curragh acquisition had occurred on January 1, 2018 (unaudited).~~

		~~Six Months Ended~~ ~~June 30, 2018~~
		~~(US$ thousands)~~
~~Revenue~~		~~1,116,183~~
~~Net Income~~		~~111,178~~

The pro forma financial information was prepared based on historical financial information and has been adjusted to give effect to pro forma adjustments that are (i) directly attributable to the Curragh acquisition, (ii) factually supportable and (iii) expected to have a continuing impact on the combined results.

These pro forma results are based on estimates and assumptions, which the Company believes are reasonable. They are not the results that would have been realized had the acquisition actually occurred on January 1, 2018 and are not necessarily indicative of the Company’s consolidated results of operations in future periods. The pro forma results include adjustments related to purchase accounting, depreciation of property and equipment, and do not include any anticipated synergies or other expected benefits that may be realized from the Curragh acquisition.

~~The pro forma results for the six months ended June 30, 2018 exclude non-recurring adjustments of $53.8 million of transaction costs.~~

~~NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)~~

4.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 USA. The Company operates ~~its business along four reportable segments:~~4 coal mine complexes: Curragh, Buchanan, Logan and Greenbrier. ~~These~~Commencing on January 1, 2020, the Company updated its reportable segments ~~are grouped based on geography.~~ to be the country in which they operate, that is Australia and the United States, in order to align with the manner in which its Chief Operating Decision Maker, or CODM, views the Company’s business for purposes of reviewing performance and allocating resources.

Factors affecting and differentiating the financial performance of each of these ~~four reportable~~2 reporting segments generally include coal quality, geology, and coal marketing opportunities, mining and transportation methods and regulatory issues. This is the basis on which internal financial and operational reports are currently prepared and provided to the CODM and reflects how the CODM manages performance and determines the allocation of resources within the Company. The Company believes this method of segment reporting reflects both the way its business segments are currently managed and the way the performance of each segment is evaluated. ~~The four segments consist of similar operating activities as each segment produces similar products.~~Comparative disclosures have been restated to a consistent basis.

~~The organization of the four reportable segments reflects how Coronado’s chief operating decision maker, or CODM, manages and allocates resources to the various components.~~ 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.

Coronado Global Resources Inc. Form 10-Q June 30, 20208

Table of Contents

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Adjusted EBITDA is defined as earnings before interest, tax, depreciation, depletion and amortization and other foreign exchange ~~losses and loss on debt extinguishment.~~losses. Adjusted EBITDA is also adjusted for certain discrete items that management exclude in analyzing each of our 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 consolidated financials.

Reportable segment results as of and for the three and six months ended June 30, ~~2019~~2020 and ~~2018~~2019 are presented ~~below.~~below:

	Australia	United States	Other and Corporate	Total
	($ thousands)
Three months ended June 30, 2020
Total revenues	228,410	75,938	—	304,348
Adjusted EBITDA	(6,804)	3,490	(7,163)	(10,477)
Net loss	(16,933)	(74,006)	(23,391)	(114,330)
Total assets	1,043,222	975,045	83,042	2,101,309
Capital expenditures⁽¹⁾	13,535	6,396	578	20,509

Three months ended June 30, 2019
Total revenues	412,810	229,647	—	642,457
Adjusted EBITDA	151,561	79,642	(8,912)	222,291
Net income (loss)	91,024	40,609	(14,127)	117,506
Total assets	1,182,652	972,193	63,638	2,218,483
Capital expenditures⁽¹⁾	9,341	27,426	—	36,767

Six Months Ended June 30, 2020
Total revenues	473,555	240,111	—	713,666
Adjusted EBITDA	6,260	41,740	(13,056)	34,944
Net loss	(22,900)	(64,877)	(35,419)	(123,196)
Total assets	1,043,222	975,045	83,042	2,101,309
Capital expenditures⁽¹⁾	18,804	41,917	1,206	61,927

Six Months Ended June 30, 2019
Total revenues	794,182	440,153	—	1,234,335
Adjusted EBITDA	271,709	151,611	(17,965)	405,355
Net income (loss)	159,758	77,409	(22,841)	214,326
Total assets	1,182,652	972,193	63,638	2,218,483
Capital expenditures⁽¹⁾	15,431	50,996	3	66,430

Curragh (1)

Buchanan

Logan

Greenbrier

Other and
Corporate

Total

($ thousands)

Three months ended June 30, 2019

Total revenues

412,810

128,713

81,610

19,324

—

642,457

Adjusted EBITDA

151,561

60,289

18,126

1,227

(8,912
)
222,291

Net income/(loss)

91,024

34,600

7,968

(1,959
)
(14,127
)
117,506

Total assets

1,182,652

511,095

315,252

145,846

63,638

2,218,483

Capital expenditures (2)

9,341

13,476

12,671

1,279

—

36,767

Three months ended June 30, 2018

Total revenues

387,379

126,292

59,230

18,294

335

591,530

Adjusted EBITDA

99,979

35,257

10,710

(188
)
(6,570
)
139,188

Net income/(loss)

54,217

24,755

3,989

3,845

(27,484
)
59,322

Total assets

1,287,848

500,502

259,963

145,454

115,076

2,308,843

Capital expenditures (2)

17,838

7,973

4,623

381

160

30,975

Six months ended June 30, 2019

Total revenues

794,182

251,437

155,919

32,797

—

1,234,335

Adjusted EBITDA

271,709

116,401

35,291

(81
)
(17,965
)
405,355

Net income/(loss)

159,758

66,919

15,523

(5,033
)
(22,841
)
214,326

Total assets

1,182,652

511,095

315,252

145,846

63,638

2,218,483

Capital expenditures (2)

15,431

28,200

20,318

2,478

3

66,430

Six months ended June 30, 2018

Total revenues

387,379

260,501

112,655

38,188

960

799,683

Adjusted EBITDA

99,979

99,701

15,501

983

(74,336
)
141,828

Net income/(loss)

54,217

76,843

2,748

(6,176
)
(91,981
)
35,651

Total assets

1,287,848

500,502

259,963

145,454

115,076

2,308,843

Capital expenditures (2)

17,838

15,628

13,191

559

430

47,646

~~(1)~~ On March 29, 2018, Coronado acquired the Curragh Mining business from Wesfarmers Limited. Curragh is a separate reportable segment due to having separate management, location, assets, and operations. Curragh is located in central Queensland, Australia and the reportable segment produces a wide variety of metallurgical coal.

~~(2)~~(1) Capital expenditures includes financing fees incurred through other financial liabilities for the purchase of certain equipment.

~~NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)~~

The reconciliation of Adjusted EBITDA to net income attributable to the Company for the three and six months ended June 30, ~~2019~~2020 and ~~2018~~2019 are as follows:

	Three months ended				Six Months Ended
	June 30,				June 30,
	2020		2019		2020		2019
	(US$ thousands)				(US$ thousands)
Net (loss) income	$	(114,330)	$	117,506	$	(123,196)	$	214,326
Depreciation, depletion and amortization		41,547		45,508		86,849		85,279
Interest expense (net of income)		12,064		9,087		24,318		17,264
Other foreign exchange losses (gains)		9,777		3,157		4,217		(557)
Income tax (benefit) expense		(22,646)		47,033		(20,355)		89,043
Impairment of assets		63,111		—		63,111		—
Consolidated adjusted EBITDA	$	(10,477)	$	222,291	$	34,944	$	405,355

Coronado Global Resources Inc. Form 10-Q June 30, 20209

Table of Contents

Three months ended
June 30,

Six months ended
June 30,

2019

2018

2019

2018

(US$ thousands)

(US$ thousands)

Net income

$
117,506

59,322

$
214,326

35,651

Depreciation, depletion and amortization

45,508

42,594

85,279

64,402

Interest expense (net of income)

9,087

18,987

17,264

25,488

Other foreign exchange (gains) losses

3,157

5,290

(557
)
6,848

Loss on retirement of debt

—

—

—

3,905

Income tax expense

47,033

12,995

89,043

5,534

Consolidated Adjusted EBITDA

$
222,291

139,188

$
405,355

141,828

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

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 June 30, 2020
	Australia	United States	Other and Corporate	Total
	($ thousands)
Product Groups:
Metallurgical coal	194,909	74,839	—	269,748
Thermal coal	25,041	417	—	25,458
Total coal revenue	219,950	75,256	—	295,206
Other⁽¹⁾	8,460	682	—	9,142
Total	228,410	75,938	—	304,348

	Three months ended June 30, 2019
	Australia	United States	Other and Corporate	Total
	($ thousands)
Product Groups:
Metallurgical coal	377,016	211,656	—	588,672
Thermal coal	26,687	15,331	—	42,018
Total coal revenue	403,703	226,987	—	630,690
Other⁽¹⁾	9,107	2,660	—	11,767
Total	412,810	229,647	—	642,457

	Six months ended June 30, 2020
	Australia	United States	Other and Corporate	Total
	($ thousands)
Product Groups
Metallurgical coal	407,831	234,198	—	642,029
Thermal coal	50,650	2,138	—	52,788
Total coal revenue	458,481	236,336	—	694,817
Other⁽¹⁾	15,074	3,775	—	18,849
Total	473,555	240,111	—	713,666

	Six months ended June 30, 2019
	Australia	United States	Other and Corporate	Total
	($ thousands)
Product Groups
Metallurgical coal	727,964	407,535	—	1,135,499
Thermal coal	47,978	29,010	—	76,988
Total coal revenue	775,942	436,545	—	1,212,487
Other⁽¹⁾	18,240	3,608	—	21,848
Total	794,182	440,153	—	1,234,335

Three months ended June 30, 2019

Curragh

Buchanan

Logan

Greenbrier

Other and
Corporate

Total

(US $ thousands)

Product Groups

Metallurgical coal

$
377,016

125,837

68,053

17,766

—

588,672

Thermal coal

26,687

2,827

12,058

446

—

42,018

Total coal revenue

403,703

128,664

80,111

18,212

—

630,690

Other(1)

9,107

49

1,499

1,112

—

11,767

Total

$
412,810

128,713

81,610

19,324

—

642,457

Three months ended June 30, 2018

Curragh

Buchanan

Logan

Greenbrier

Other and
Corporate

Total

(US$ thousands)

Product Groups

Metallurgical coal

$
349,486

122,771

47,443

17,427

—

537,127

Thermal coal

25,048

3,521

11,787

27

—

40,383

Total coal revenue

374,534

126,292

59,230

17,454

—

577,510

Other(1)

12,845

—

—

840

335

14,020

Total

$
387,379

126,292

59,230

18,294

335

591,530

Six months ended June 30, 2019

Curragh

Buchanan

Logan

Greenbrier

Other and
Corporate

Total

(US $ thousands)

Product Groups

Metallurgical coal

$
727,964

245,047

131,421

31,067

—

1,135,499

Thermal coal

47,978

6,306

22,208

496

—

76,988

Total coal revenue

775,942

251,353

153,629

31,563

—

1,212,487

Other(1)

18,240

84

2,290

1,234

—

21,848

Total

$
794,182

251,437

155,919

32,797

—

1,234,335

Six months ended June 30, 2018

Curragh

Buchanan

Logan

Greenbrier

Other and
Corporate

Total

(US$ thousands)

Product Groups

Metallurgical coal

$
349,486

253,335

93,201

35,982

—

732,004

Thermal coal

25,048

7,127

19,454

713

—

52,342

Total coal revenue

374,534

260,462

112,655

36,695

—

784,346

Other(1)

12,845

39

—

1,493

960

15,337

Total

$
387,379

260,501

112,655

38,188

960

799,683

(1) Other revenue for Curragh includes the amortization of the Stanwell non-market coal supply contract obligation liability.

Coronado Global Resources Inc. Form 10-Q June 30, 202010

Table of Contents

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

4. Impairment of assets

5.~~Expenses~~Long-lived assets, such as property, plant, and equipment, and purchased intangible assets subject to amortization, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If circumstances require a long-lived asset or asset group be tested for possible impairment, the Company first compares undiscounted pre-tax cash flows expected to be generated by that asset or asset group to its carrying value. If the carrying value of the long-lived asset or asset group is not recoverable on an undiscounted pre-tax cash flow basis, an impairment is recognized to the extent that the carrying value exceeds its fair value. Fair value is determined through various valuation techniques including discounted cash flow models, quoted market values and third-party independent appraisals, as considered necessary. NaN impairment losses were recognized for property, plant and equipment or amortizing intangible assets for the years ended December 31, 2019 and 2018.

The following costs are reflected in “Impairment of Assets” in the unaudited Consolidated Statement of Operations and Other Comprehensive income for the three and six months ended June 30, 2020:

~~Other, net~~

		Reportable Segment
(US$ thousands)		United States
Property, plant and equipment, net	$	62,481
Right of use asset – operating leases, net		10
Intangible assets, net		620
Total	$	63,111

Three months ended
June 30,

Six months ended
June 30,

2019

2018

2019

2018

(US$ thousands)

(US$ thousands)

Loss on foreign exchange swap

$
—

—

$
—

(15,695
)
Other foreign exchange (losses) gains

(3,157
)
(5,290
)
557

(6,848
)
Other (expenses) income

168

2,899

485

(4,303
)
Total Other, net

$
(2,989
)
(2,391
)
$
1,042

(26,846
)

6.~~Inventories~~

(US$ thousands)

June 30, 2019

December 31,
2018

Raw coal

$
54,407

$
20,106

Saleable coal

23,051

26,374

Total coal inventories

77,458

46,480

Supplies inventory

51,966

48,623

Total inventories

$
129,424

$
95,103

7.The Company generally does not view short-term declines in metallurgical coal prices in the markets in which it sells its products as a singular indicator of impairment. However, due to the decline in metallurgical coal prices during the six months ended June 30, 2020, the resulting impact on business conditions from COVID-19 and the idling of the Greenbrier mine for an undetermined period, there were indications that the carrying value of the Greenbrier mining asset, in the U.S., exceeded its fair value. The Company performed an impairment assessment in accordance with the rules of ASC 360 – Property, Plant and Equipment, and determined an impairment charge of $63.1 million reducing the carrying value of Greenbrier’s long-lived assets to approximately $50.0 million as at June 30, 2020. The fair value of the Greenbrier mining asset was derived using Level 3 inputs and was primarily driven by estimates of future cash flows based on a combination of historical results adjusted to reflect the Company’s best estimate of future market and operating conditions, including its current life of mine plan, and reserve multiple valuation. The Company concluded that no indicators of impairment or requisite charges were required at any of the Company’s other mining assets as at June 30, 2020.

(US$ thousands)

June 30, 2019

December 31,
2018

Land

$
27,035

$
26,845

Buildings and improvements

83,831

89,027

Plant, machinery, mining equipment and transportation vehicles

794,619

765,432

Mineral rights and reserves

464,680

464,680

Office and computer equipment

3,752

3,700

Mine development

487,156

479,152

Asset retirement obligation asset

83,894

80,993

Construction in process

81,423

43,691

2,026,390

1,953,520

Less accumulated depreciation, depletion and amortization

423,303

334,962

Net property, plant and equipment

$
1,603,087

$
1,618,558

5.Expenses

Other, Net

Three months ended

Six Months Ended

June 30,

June 30,

2020

2019

2020

2019

(US$ thousands)

(US$ thousands)
Other foreign exchange (losses) gains

(9,777)

(3,157)

(4,217)

557
Other income (expenses)

1,240

168

(268)

485
Total Other, net

$
(8,537)

$
(2,989)

$
(4,485)

$
1,042

Coronado Global Resources Inc. Form 10-Q June 30, 202011

Table of Contents
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
6. Trade and related party receivables
The Company extends trade credit to its customers in the ordinary course of business. Trade receivables and related party receivables are recorded initially at fair value and subsequently at amortized cost, less any Expected Credit Losses, or ECL. Trade receivables from provisionally priced sales are carried at fair value to profit or loss.
For trade and related party receivables carried at amortized cost, the Company determines ECL on a forward-looking basis. The amount or ECL is updated at each reporting date to reflect changes in credit risk since initial recognition of the respective financial instrument. The Company recognizes the lifetime ECL. The ECL is estimated based on the Company’s historic credit loss experience, adjusted for factors that are specific to the financial asset, general economic conditions, financial asset type, term and an assessment of both the current as well as forecast conditions at the reporting date, modified for credit enhancements such as letters of credit obtained. To measure ECL, trade and related party receivables have been grouped based on shared credit risk characteristics and the days past due.
The Company considers an event of default has occurred when a financial asset is significantly past due or other factors indicate that the debtor is unlikely to pay amounts owed to the Company. A financial asset is credit impaired when there is evidence that the counterparty is in significant financial difficulty or a breach of contract, such as default or past due event has occurred. The Company writes off a financial asset when there is information indicating there is no realistic prospect of recovery of the asset from the counterparty. The amount of the impairment loss is recognized in the consolidated statement of operations and other comprehensive income within “other, net”. Subsequent recoveries of amounts previously written off are credit against “other, net” in the consolidated statement of operations and other comprehensive income.
(US$ thousands)

June 30,
2020

December 31,2019
Trade receivables - at amortized cost

$
82,303

$
118,572
Trade receivables - at fair value

33,807

14,725
Total trade receivables

116,110

133,297
Related party receivables - at amortized cost

105,057

86,796
Total trade and related party receivables

$
221,167

$
220,093
NaN provision has been recognized on the ECL on trade and related party receivables as at June 30, 2020. The Company has 0t recognised any bad debt expense from trading counterparties in the three and six months ended June 30, 2020 and 2019.
Related party receivables - Xcoal
During the three and six months ended June 30, 2020, the Company sold coal to Xcoal Energy and Resources, or Xcoal, an entity associated with Non-Executive director, Mr. Ernie Thrasher. Revenues from Xcoal of $9.0 million and $135.3 million, respectively, are recorded as “Coal revenues from related parties” in the unaudited Condensed Consolidated Statement of Operations and Comprehensive Income for the three months ended June 30, 2020 and 2019. Revenues from Xcoal of $89.1 million and $293.2 million, respectively, are recorded as coal revenues in the unaudited Condensed Consolidated Statement of Operations and Comprehensive Income for the six months ended June 30, 2020 and 2019. During the three and six months ended June 30, 2020, the Company purchased coal from Xcoal totalling $7.9 million and the corresponding payable was offset against trade receivables from Xcoal. The cost of purchasing coal from Xcoal is recorded within “Cost of coal revenues” in the Unaudited Condensed Consolidated Statement of Operations and Comprehensive Income.
At June 30, 2020, amounts due from Xcoal in respect of coal sales were $105.1 million. At December 31, 2019, amounts due from Xcoal in respect of coal sales were $86.8 million.
Coronado Global Resources Inc. Form 10-Q June 30, 202012
Table of Contents
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

7.Inventories
(US$ thousands)

June 30,
2020

December 31,2019
Raw coal

$
25,765

$
41,127
Saleable coal

54,713

63,006
Total coal inventories

80,478

104,133
Supplies inventory

58,146

58,037
Total inventories

$
138,624

$
162,170

8.Property, Plant and Equipment

(US$ thousands)

June 30,
2020

December 31,2019
Land

$
26,747

$
27,037
Buildings and improvements

80,867

80,658
Plant, machinery, mining equipment and transportation vehicles

938,537

896,392
Mineral rights and reserves

413,755

464,710
Office and computer equipment

5,223

3,977
Mine development

503,430

497,439
Asset retirement obligation asset

76,737

81,520
Construction in process

44,100

80,646

2,089,396

2,132,379
Less accumulated depreciation, depletion and amortization

556,660

499,591
Net property, plant and equipment

$
1,532,736

$
1,632,788

9.Goodwill and Other Intangible Assets

(a)Acquired Intangible Assets

	June 30, 2020
(US$ thousands)	Weighted average amortization period (years)	Gross carrying amount		Accumulated amortization		Net carrying amount
Intangible assets:
Amortizing intangible assets:
Mining permits - Logan	15		1,642		795		847
Mining permits - Buchanan	28		4,000		529		3,471
Total intangible assets		$	5,642	$	1,324	$	4,318

	December 31, 2019
(US$ thousands)	Weighted average amortization period (years)	Gross carrying amount		Accumulated amortization		Net carrying amount
Intangible assets:
Amortizing intangible assets:
Mining permits - Greenbrier	14	$	1,500	$	840	$	660
Mining permits - Logan	15		1,642		756		886
Mining permits - Buchanan	28		4,000		467		3,533
Total intangible assets		$	7,142	$	2,063	$	5,079

June 30, 2019

(US$ thousands)

Weighted average
amortization period
(years)

Gross carrying
amount

Accumulated
amortization

Net carrying
amount

Intangible assets:

Amortizing intangible assets:

Mining permits - Greenbrier

14

$
1,500

800

700

Mining permits - Logan

15

1,642

717

925

Mining permits - Buchanan

28

4,000

404

3,596

Total intangible assets

$
7,142

1,921

5,221

December 31, 2018

(US$ thousands)

Weighted average
amortization period
(years)

Gross carrying
amount

Accumulated
amortization

Net carrying
amount

Intangible assets:

Amortizing intangible assets:

Mining permits - Greenbrier

14

$
1,500

760

740

Mining permits - Logan

15

1,642

638

1,004

Mining permits - Buchanan

28

4,000

342

3,658

Total intangible assets

$
7,142

1,740

5,402

Amortization expense is charged using the straight-line method over the useful lives of the respective intangible asset. The aggregate amount of amortization expense for amortizing intangible assets for the three months ended June 30, ~~2019~~2020 and ~~2018~~2019 was $0.1 million and $0.1 million, respectively. The aggregate amount of amortization expense for amortizing intangible assets for the six months ended June 30, ~~2019~~2020 and ~~2018~~2019 was $0.2 million and $0.2 million, respectively.

Mining permit intangible asset relating to Greenbrier with a carrying value of $0.6 million was fully impaired as at June 30, 2020. Refer to Note 4 “Impairment of assets” for further disclosure.

Coronado Global Resources Inc. Form 10-Q June 30, 202013

Table of Contents

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(b)Goodwill

~~(b)~~~~Goodwill~~

In connection with the Buchanan acquisition on March 31, 2016, the Company recorded goodwill in the amount of $28.0 million. The balance of goodwill as at both June 30, ~~2019~~2020 and December 31, ~~2018~~2019 was $28.0 million.

9.10.Accrued Expenses and Other Current Liabilities

Accrued expenses and other current liabilities consist of the following:

(US$ thousands)	June 30, 2020		December 31,2019
Wages and employee benefits	$	52,309	$	61,008
Taxes other than income taxes		6,623		3,899
Accrued royalties		37,841		43,468
Accrued freight costs		30,248		30,416
Accrued mining fees		65,162		49,027
Cash flow hedge derivative liability		16,045		—
Acquisition related accruals		29,511		30,190
Other liabilities		13,921		20,780
Total accrued expenses and other current liabilities	$	251,660	$	238,788

(US$ thousands)

June 30, 2019

December 31,
2018

Wages and employee benefits

$
64,520

$
50,819

Taxes other than income taxes

8,221

6,512

Accrued royalties

50,648

49,129

Accrued freight costs

29,118

26,509

Accrued mining fees

52,187

45,615

Cash flow hedge derivative liability

—

5,311

Acquisition related accruals

30,186

30,349

Other liabilities

17,471

29,252

Total accrued expenses and other current liabilities

$
252,351

$
243,496

Included within acquisition related accruals is an amount outstanding for stamp duty payable on the Curragh acquisition of ~~$30.2 million.~~$29.5 million (A$43.0 million). This amount was outstanding as at June 30, ~~2019~~2020 and December 31, ~~2018~~2019 pending ~~financial~~ assessment ~~to be made~~ by the Office of State Revenue in Queensland, Australia.

11.Leases

~~10.~~~~Leases~~

~~On January 1, 2019, the Company adopted ASC 842, Leases. Changes to the Company’s accounting policy as a result of adoption are discussed below.~~

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 the terms of a specific lease agreement, the Company classifies a lease as either finance or operating.

~~(a)~~~~Finance Leases~~

~~ROU~~On March 31, 2020, the Company amended one of its mining service contracts for mining equipment assets ~~related~~used to ~~finance leases are presented in property, “Property, plant and equipment, net” on~~provide mining services. On execution of the unaudited Condensed Consolidated Balance Sheet. Lease liabilities related to finance leases are presented in “Lease Liabilities” (current) and “Lease Liabilities” (non-current) on the unaudited Condensed Consolidated Balance Sheet.

~~Finance lease ROU~~amendment, right of use assets of $25.9 million and lease liabilities ~~are recognized at the commencement date based on the present value~~ of the future lease payments over the lease term. The discount rate used to determine the present value of the lease payments is the rate implicit in the lease unless that rate cannot be readily determined, in which case, the Company utilizes its incremental borrowing rate in determining the present value of the future lease payments. The incremental borrowing rate is the rate of interest that the Company would have to pay to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment.

~~(b)~~~~Operating Leases~~

~~ROU~~$27.0 million were derecognized. These mining equipment assets related to operating leases are presented as “Right of use asset — operating leases, net”, on the unaudited Condensed Consolidated Balance Sheet. Lease liabilities related to operating leases that are subject to the ASC 842 measurement requirements such as operating leases with lease terms greater than twelve months are presented in “Lease Liabilities” (current) and “Lease Liabilities” (non-current) on the unaudited Condensed Consolidated Balance Sheet.

~~Operating lease ROU~~were previously deemed leased assets and lease liabilities are recognized at the commencement date based on the present value of the future lease payments over the lease term. The discount rate used to determine the present value of the lease payments is the rate implicit in the lease unless that rate cannot be readily determined, in which case, the Company utilizes its incremental borrowing rate in determining the present value of the future lease payments. The incremental borrowing rate is the rate of interest that the Company would have to pay to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment. Operating lease ROU assets may also include any cumulative prepaid or accrued rent when the lease payments are uneven throughout the lease term. The ROU assets and lease liabilities may also include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. The ROU asset includes any lease payments made and lease incentives received prior to the commencement date. The Company has lease arrangements with lease and non-lease components which are accounted for separately. Non-lease components of the lease payments are expensed as incurred and are not included in determining the present value. As at June 30, 2019 the unaudited Condensed Consolidated Balance Sheet included $41.5 million of operating lease liabilities relating to equipment embedded within the mining service ~~contracts.~~

~~NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)~~contract.

Information related to Company’s right-of use assets and related lease liabilities are as follows:

				Three Months Ended				Six Months Ended
(US$ thousands)	Three month ended June 30, 2019		Six months ended June 30, 2019	June 30, 2020		June 30, 2019		June 30, 2020		June 30, 2019
Operating lease costs	$	6,378	12,861	$	3,071	$	6,378	$	11,350	$	12,861
Cash paid for operating lease liabilities	4,049		11,073		2,862		4,049		10,374		11,073

Finance lease costs:
Amortization of right of use assets	628		1,221		627		628		999		1,221
Interest on lease liabilities	52		108		32		52		69		108
Total finance lease costs	$	680	1,329	$	659	$	680	$	1,068	$	1,329

(US$ thousands)

June 30,
2019

December 31, 2018

Operating leases:

Operating lease right-of-use assets

$
64,343

—

Finance leases:

Property and equipment

7,881

7,074

Accumulated depreciation

(4,135
)
(2,914
)
Property and equipment, net

3,746

4,160

Current operating lease obligations

26,863

—

Operating lease liabilities, less current portion

51,064

—

Total operating lease liabilities

77,927

—

Current finance lease obligations

1,265

1,308

Finance lease liabilities, less current portion

1,838

2,481

Total Finance lease liabilities

3,103

3,789

Total Lease liability

$
81,030

3,789

Coronado Global Resources Inc. Form 10-Q June 30, 202014

	~~June 30,~~ ~~2019~~
~~Weighted Average Remaining Lease Term (Years)~~
~~Weighted average remaining lease term — finance leases~~	~~1.18~~
~~Weighted average remaining lease term — operating leases~~	~~3.24~~

~~Weighted Average Discount Rate~~
~~Weighted discount rate — finance lease~~	~~6.25~~	%
~~Weighted discount rate — operating lease~~	~~7.94~~	%

Table of Contents

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)


(US$ thousands)	June 30, 2020		December 31,2019
Operating leases:
Operating lease right-of-use assets	$	23,313	$	62,566

Finance leases:
Property and equipment		7,881		7,881
Accumulated depreciation		(6,143)		(5,144)
Property and equipment, net		1,738		2,737

Current operating lease obligations		10,146		27,204
Operating lease liabilities, less current portion		23,678		48,165
Total operating lease liabilities		33,824		75,369

Current finance lease obligations		1,838		2,481

Total Lease liability	$	35,662	$	77,850

	June 30, 2020	December 31, 2019
Weighted Average Remaining Lease Term (Years)
Weighted average remaining lease term – finance leases	0.18	0.67
Weighted average remaining lease term – operating leases	3.62	2.89

Weighted Average Discount Rate
Weighted discount rate – finance lease	6.25%	6.25%
Weighted discount rate – operating lease	7.94%	8.00%

The Company’s operating leases have remaining lease terms of 1 year to 56 years, some of which include options to extend the terms deemed reasonable to exercise. Maturities of lease liabilities as at June 30, 2020, are as follows:

(US$ thousands)	Operating Lease		Finance Lease
Year ending December 31,
2020	$	7,532	$	1,857
2021		9,085		—
2022		8,911		—
2023		9,196		—
2024		2,897		—
Thereafter		1,594		—
Total lease payments		39,215		1,857
Less imputed interest		(5,391)		(19)
Total lease liability	$	33,824	$	1,838

(US$ thousands)

Operating lease

Finance lease

Year ending December 31,

2019

$
16,013

712

2020

30,436

2,568

2021

22,362

—

2022

8,434

—

2023

8,427

—

Thereafter

2,103

—

Total lease payments

87,775

3,280

Less imputed interest

(9,848
)
(177
)
Total lease liability

$
77,927

3,103

~~NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)~~

~~11.~~12.Income Taxes

The Company is a corporation for U.S. federal and state income tax purposes. The Company’s accounting predecessor, Coronado Group LLC, was and is treated as a flow-through entity for U.S. federal income tax purposes and as such, has generally not been subject to U.S. federal income tax at the entity level. Accordingly, unless otherwise specified, the historical results of operations and other financial information set forth in the Company’s registration statement on Form 10, as amended, filed with the SEC and ASX on June 28, 2019, for periods prior to the incorporation of the Company and the Reorganization Transaction do not include any provision for U.S. income taxes.

For the ~~three and~~ six months ended June 30, ~~2019~~2020 and ~~2018,~~2019, 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 effect 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 ~~2019~~2020 estimated annual effective tax rate, including discrete items, is ~~29.4%~~14.2%. The Company had an income tax ~~expense~~benefit of ~~$47.0 million and $89.0 million for the three and six months ended June 30, 2019 respectively.~~

~~Income tax expense of $13.0 million for the three months ended June 30, 2018 and $5.5~~$20.4 million for the six months ended June 30, ~~2018 related solely to the Company’s Australian Operations and was calculated based on effective tax rate for the period, before any~~2020, comprising a discrete ~~items, of 13%.~~

~~The Company’s U.S. entities had no~~ income tax expense of $1.0 million and income tax benefit of $21.4 million based on a loss before tax of $143.6 million.

Income tax expense of $89.0 million for the ~~three and~~ six months ended June 30, ~~2018 because prior~~2019 was calculated based on an estimated annual effective tax rate of 29.4% for the period.

Coronado Global Resources Inc. Form 10-Q June 30, 202015

Table of Contents

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

The Company utilizes the “more likely than not” standard in recognizing a tax benefit in its financial statements. For the six months ended June 30, 2020 and the year ended December 31, 2019, the Company had $14.2 million of unrecognized tax benefits. If accrual for interest or penalties is required, it is the Company’s policy to ~~September 19, 2018 they were treated~~include these as ~~partnerships for U.S.~~a component of income tax ~~purposes.~~expense.

The Company is subject to taxation in the United States and its various states, as well as Australia and its various localities. In the United States and Australia, the first tax return was lodged for the year ended December 31, 2018.

~~12.~~On March 27, 2020, the United States Congress enacted the Coronavirus Aid, Relief and Economic Security Act, or CARES Act, to provide certain relief as a result of the COVID-19 outbreak. The CARES Act (PL 116-136), allows for a five-year carryback for losses arising in tax years beginning in 2018, 2019 and 2020.

As there was U.S. taxable income in tax years 2018 and 2019, there is an opportunity to carryback the 2020 losses in order to receive a refund of taxes assessed in these tax years of approximately $16.7 million. By virtue of carrying back net operating losses, there will be no longer an opportunity to utilize foreign tax credits in these tax years.

13.Interest Bearing Liabilities

The ~~Company has a Multicurrency Revolving Syndicated Facility Agreement, or~~Company’s SFA, ~~dated September 15, 2018, comprising~~comprises of Facility A ($350 million loan facility) ~~and~~, Facility B (A$~~370~~130 million bank guarantee facility) and Facility C ($200 million loan facility). The SFA ~~provides that~~has a termination date of February 15, 2023.

The SFA is a revolving credit facility under which the Company may borrow funds from Facility A and/or Facility C for a period of one, two, three or six months, each referred to as a Term. The interest rate is set at the commencement of each Term. At the end of each Term, the Company may elect to repay the loan or extend any loan amount outstanding for a further period of one, two, three or six ~~months.~~months. The Term of the loan cannot extend beyond the termination date of the SFA.

Due to the global impacts of COVID-19 on the demand and pricing for metallurgical coal and the resulting uncertainties associated with the pandemic, on May 25, 2020, the Company entered into an agreement with its lenders in the SFA ~~being~~to waive compliance with certain financial covenants for the period from May 25, 2020 to February ~~15, 2022.~~28, 2021, or the waiver period. A breach of these financial covenants at the end of, or after, the waiver period will constitute an event of default under the SFA and all amounts outstanding at that point may become due and payable. The terms of the SFA will revert to the originally agreed terms at the end of the waiver period.

As at June 30, 2020 the Company met its financial covenants and other undertakings under the SFA. The Company is pursuing a number of strategic initiatives to strengthen its liquidity and is actively engaged with its Lenders in relation to the extension of the waiver, referred to above, beyond February 28, 2021. These steps are expected to ensure the continuing availability of the SFA beyond February 28, 2021.

During the ~~period January 1, 2019 to~~six months ended June 30, ~~2019~~2020, the Company borrowed ~~$104.0~~a total amount of $145.0 million under the SFA ~~to fund the dividend payment made on March 29, 2019 of $299.7 million, and~~ for ~~other~~ working capital and corporate purposes. ~~The funds borrowed~~Repayments of $34.0 million were ~~fully repaid by~~made during the six months ended June 30, ~~2019. There were no interest-bearing~~2020.

The total interest bearing liabilities outstanding under the SFA was $441.0 million and $ 330.0 million as at June 30, ~~2019~~2020 and at December 31, ~~2018.~~2019, respectively.

~~13.~~14.Contract Obligations

The following is a summary of the contract obligations as of June 30, 2020:

(US$ thousands)	Current		Non-current		Total
Coal leases contract liability	$	843	$	21,021	$	21,864
Stanwell below market coal supply agreement		34,382		165,070		199,452
	$	35,225	$	186,091	$	221,316

The following is a summary of the contract obligations as of December 31, 2019:

(US$ thousands)	Current		Non-current		Total
Coal leases contract liability		843		21,312		22,155
Stanwell below market coal supply agreement		36,092		183,565		219,657
	$	36,935	$	204,877	$	241,812

~~The following is a summary of the contract obligations as of~~Coronado Global Resources Inc. Form 10-Q June 30, ~~2019:~~202016

Table of Contents

(US$ thousands)

Short-term

Long-term

Total

Coal leases contract liability

$
843

21,774

22,617

Stanwell below market coal supply agreement

34,223

202,659

236,882

$
35,066

224,433

259,499

~~The following is a summary of the contract obligations as of December 31, 2018:~~

(US$ thousands)

Short-term

Long-term

Total

Terminal services contract liability

$
2,717

11,549

14,266

Coal leases contract liability

844

22,354

23,198

Stanwell below market coal supply agreement

35,555

219,675

255,230

$
39,116

253,578

292,694

~~On adoption of ASC 842 — Leases the Terminal services contract liability was eliminated against the Terminal services Right of Use Asset on the unaudited Condensed Consolidated Balance Sheet.~~

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

~~14.~~15.Deferred Consideration Liability

On August 14, 2018 the Company completed the purchase of the Stanwell Reserved Area, or the SRA, adjacent to the current Curragh mining tenements. This area was acquired on a deferred consideration basis and on acquisition the Company recognized a “Right-to-mine-asset” and a corresponding deferred consideration liability of $155.2 million, calculated using a pre-tax discount rate of 13% representing fair value of the arrangements ~~and~~at the date of acquisition. The deferred consideration liability will reflect passage of time changes by way of an annual accretion at the pre-tax discount rate of 13% while the liability will decrease as domestic coal is supplied to Stanwell from the SRA. The accretion of deferred consideration is recognized in “Interest expense, net” in the unaudited Condensed Consolidated Statements of Operations and Comprehensive Income.

(US$ thousands)

June 30,

2020

December 31,2019

Stanwell Reserved Area deferred consideration

181,400

174,605

181,400

174,605

(US$ thousands)

June 30, 2019

December 31,
2018

Stanwell Reserved Area deferred consideration

$
164,148

155,332

$
164,148

155,332

~~15.~~16.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. ~~There were no traded shares of common stock outstanding prior to October 23, 2018, therefore no earnings per share information has been presented for any period prior to that date.~~

Basic and diluted earnings per share was calculated as follows (in thousands, except per share data):

	Three Months Ended				Six Months Ended
(US$ thousands, except per share data)	June 30, 2020		June 30, 2019		June 30, 2020		June 30, 2019
Numerator:
Net (loss) income	$	(114,330)	$	117,506	$	(123,196)	$	214,326
Less: Net loss attributable to Non-controlling interest		(2)		(4)		(4)		(4)
Net (loss) income attributable to Company stockholders	$	(114,328)	$	117,510	$	(123,192)	$	214,330

Denominator (in thousands):
Weighted-average shares of common stock outstanding		96,652		96,652		96,652		96,652
Effects of dilutive shares		—		3		-		4
Weighted average diluted shares of common stock outstanding		96,652		96,655		96,652		96,656
Earnings Per Share (US$):
Basic		(1.18)		1.22		(1.27)		2.22
Dilutive		(1.18)		1.22		(1.27)		2.22

~~Basic and diluted earnings per share was calculated as follows (in thousands, except per share data):~~

(US$ thousands, except per share data)

Three months
ended June 30,
2019

Six months
ended June 30,
2019

Numerator:

Net Income

$
117,506

$
214,326

Less: Net income attributable to Non-controlling interest

(4
)
(4
)
Net Income attributable to Company stockholders

$
117,510

$
214,330

Denominator:

Weighted-average shares of common stock outstanding

96,652

96,652

Effects of dilutive shares

3

4

Weighted average diluted shares of common stock outstanding

96,655

96,656

Earnings Per Share (US$):

Basic

$
1.22

$
2.22

Dilutive

$
1.22

$
2.22

~~16.~~17.Derivatives and Fair Value Measurement

(a)Derivatives

~~(a)~~~~Derivatives~~

The Company may use derivative financial instruments to manage its ~~risk~~financial risks in the normal course of operations, including foreign currency risks, commodity price risk related to ~~forecast~~ purchase of raw materials (such as gas or diesel) and interest rate risk. Derivatives ~~are exclusively used for cashflow hedges purposes and hedging~~ for speculative purposes isare strictly prohibited under the Treasury Risk Management Policy approved by ~~our~~the Board of Directors.

The financing counterparties to the derivative contracts potentially expose the Company to credit-related risk. Credit risk is the risk that a third party might fail to fulfill its performance obligations under the terms of the financial instrument. The Company mitigates credit risk by entering into derivative contracts with high credit quality counterparties, limiting the amount of exposure to each counterparty and frequently monitoring their financial condition.

Forward fuel contracts

In ~~2018,~~2019, the Company entered into forward derivative contracts ~~with an aggregate notional amount of $44.6 million~~ to hedge its exposure to diesel fuel ~~prices for diesel fuel~~ that is used, or expects to use, at its operations in ~~the operations at Curragh. The aggregated notional amount of these derivative contracts at June 30, 2019 was $24.0 million.~~Australia, or Australian Operations, during 2020. During the ~~three months~~six month period ended June 30, ~~2019~~2020, the Company entered into additional derivative contracts ~~with a notional amount of $59.1 million, to hedge its exposure~~in relation to diesel fuel ~~prices in relation~~that it expects to ~~Curragh consumption of diesel fuel in 2020. The aggregate notional amount for all outstanding derivative contracts was $83.1 million~~consume at its

Coronado Global Resources Inc. Form 10-Q June 30, ~~2019. The forward diesel fuel contracts were designated as cash flow hedges.~~202017

Table of Contents

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Australian Operations during 2021. The aggregate notional amount for all outstanding forward diesel fuel derivative contracts designated as cash flow hedges were $82.2million at June 30, 2020.

Unrealized losses, net of tax, recognized in “Accumulated other comprehensive income/(loss)” as at June 30, 2020, are expected to be recognized into “Cost of coal revenues” in the Unaudited Condensed Statements of Operations and Comprehensive Income, $16.0million within the next 12 months and $4.1 million within 6 months thereafter, when the hedged transaction impacts income. Refer to Note 18 “Other comprehensive loss” for further disclosure.

Forward foreign currency contracts

The Australian Operations utilize the cash it generates from its US$ denominated coal sales revenue to fund its operating costs, which are predominantly in A$. The Company enters into forward foreign currency contracts to hedge its foreign exchange exposure on a portion of the US$ denominated coal sales revenue at Curragh, whose functional currency is A$.

The aggregated notional amount of the outstanding forward foreign currency derivative contracts designated as cash flow hedges were $57.5million as at June 30, 2020. The unrealized loss of $0.1 million, net of tax, recognized in “Accumulated other comprehensive income/(loss)” at June 30, 2020, is expected to be recognized into “Coal revenues” in the Unaudited Condensed Statements of Operations and Comprehensive Income within the next 6 months, when the hedged transaction impacts income. Refer to Note 18 “Other comprehensive loss” for further disclosure.

During the six month period ended June 30, 2020, the Company entered into additional forward foreign currency derivative contracts to manage its exposure to US$ at the Australian Operations. The aggregate notional amount for the outstanding forward foreign currency derivative contracts was $55.1 million at June 30, 2020. The unrealized gain of $1.4 million, net of tax, was recognized in “Other, net” in the Unaudited Condensed Statements of Operations and Comprehensive Income.

The fair value of foreign currency and diesel fuel derivatives reflected in the accompanying unaudited Condensed Consolidated Balance Sheet are set forth in the table below:

		June 30, 2020		December 31, 2019
(US$ thousands)	Classification	Derivative asset	Derivative liability	Derivative asset	Derivative liability
Forward fuel contracts	Other current assets	—	—	3,180	—
	Other current liabilities	—	15,991	—	—
	Other non-current liabilities	—	4,106	—	—

Forward foreign currency contracts	Other current assets	1,510	—	953	—
	Other current liabilities	—	54	—	—

		1,510	20,151	4,133	—

June 30, 2019

December 31, 2018

(US$ thousands)

Classification

Derivative
asset

Derivative
liability

Derivative
asset

Derivative
liability

Other current liabilities

—

—

—

5,402

Forward fuel contracts

Other current asset

2,317

—

—

—

Other non-current assets

1,308

—

—

—

3,625

—

—

5,402

~~The forward fuel contracts were designated as cash flow hedges.~~ The following table presents our details of ~~these~~foreign currency and diesel fuel outstanding ~~hedge~~ contracts:

June 30, 2020

December 31, 2019

(in thousands)

Notional amount (thousands)

Unit of measure

Varying maturity dates

Notional amount (thousands)

Unit of measure

Varying maturity dates

Forward fuel contracts

199,636

Liters

July 2020 - December 2021

121,957

Liters

January 2020 – December 2020

Forward foreign currency contracts

112,632

US$

July 2020 - December 2020

24,300

US$

January 2020 –

March 2020

June 30, 2019

December 31, 2018

(in thousands)

Notional
amount

Unit of
measure

Varying
maturity dates

Notional
amount

Unit of
measure

Varying
maturity dates

Designated forward fuel contracts

176,342

Liters

July 2019 — December 2020

93,420

Liters

January 2019 — December 2019

~~Other derivatives~~

During the six months ended June 30, 2018 the Company entered into a foreign exchange swap contract to hedge against the exposure fluctuations in the Australian Dollar against the U.S. Dollar on the purchase price of Curragh between the Agreement date and the completion date. The Company elected not to formally designate the swaps as cash flow hedges. As such, the Company accounted for the foreign exchange swaps as an economic hedge and recorded at fair value at the end of each reporting period. Pursuant with ASC 815, the foreign exchange swaps were initially recorded at fair value and all subsequent changes were recorded to “Other, net” (see Note 5 — “Other, net”) within the unaudited Condensed Consolidated Statements of Operations. As of June 30, 2019, the Company did not have any foreign exchange swaps outstanding.

(b)Fair Value of Financial Instruments

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.

Coronado Global Resources Inc. Form 10-Q June 30, 202018

Table of Contents

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

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 June 30, ~~2019,~~2020, the Company has the following liabilities that are required to be measured at fair value on a recurring basis:

·Forward commodity contracts: valued based on a valuation that is corroborated by the use of market-based pricing (Level 2)

Foreign currency forward contracts: valued based on a valuation that is corroborated by the use of market-based pricing (Level 2)

·Contingent royalty: fair value is determined using the Black-Scholes option pricing formula (Level 3)

The following tables set forth the hierarchy of the Company’s net financial liabilities positions for which fair value is measured on a recurring basis as of June 30, 2020:

	Assets/(Liabilities)
(US$ thousands)	Level 1		Level 2		Level 3		Total
Forward commodity contracts	$	—	$	(20,097)	$	—	$	(20,097)
Forward foreign currency contracts		—		1,456		—		1,456
	$	—	$	(18,641)	$	—	$	(18,641)

The Company’s net financial liability positions for which fair value is measured on a recurring basis as of December 31, 2019 was as follows:

	Assets/(Liabilities)
(US$ thousands)	Level 1		Level 2		Level 3		Total
Forward commodity contracts	$	—	$	3,180	$	—	$	3,180
Forward foreign currency contracts		—		953		—		953
Contingent royalty		—		—		(1,543)		(1,543)
	$	—	$	4,133	$	(1,543)	$	2,590

Coronado Global Resources Inc. Form 10-Q June 30, 202019

Table of Contents

· ~~VSM: fair value is determined using the projected cash flow analysis (Level 3)~~

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Contingent Royalty Consideration

Key assumptions in the valuation include the gross sales price forecast, export volume forecast, volatility, the risk-free rate, and credit-spread of the Company.

	Quantitative Information about Level 3 Fair Value Measurements
(US$ thousands)	Fair value at June 30, 2020		Valuation technique	Unobservable input	Range (Weighted Avg.)
Contingent Royalty Liability	$	—	Projected cash flows	Gross sales price forecast per ton	$67.1 to $105.2 ($81.7)
				Export volume forecast (000’s)	1,816 tons over 9 months

Given the remaining period of the Contingent Royalty obligation is short-term, the valuation technique has been changed from Black-Scholes Option model to projected cash flows.
As a result of the decline in market coal price and the increase of the agreed floor price as the agreement reaches maturity, the Company's projected cash flows resulted in 0 Contingent royalty liability as at June 30, 2020.

~~The following tables set forth the hierarchy~~Value Share Mechanism

As part of the ~~Company’s net financial liabilities positions for which fair value is measured~~acquisition of Curragh on March 29, 2018, the Company agreed to pay a ~~recurring basis as~~25% royalty to the seller on sales from metallurgical coal mined at Curragh over a two-year period in the form of a Value Share Mechanism, or VSM. The VSM expired in March 2020. There were 0 VSM payments during the six months period ended June 30, ~~2019:~~2020.

(US$ thousands)

Level 1

Level 2

Level 3

Total

Forward commodity contracts

$
—

3,625

—

3,625

Contingent royalty

—

—

10,073

10,073

VSM

—

—

351

351

$
—

3,625

10,424

14,049

~~The Company’s net financial liability positions for which fair value is measured on a recurring basis as of December 31, 2018 was as follows:~~

(US$ thousands)

Level 1

Level 2

Level 3

Total

Forward commodity contracts

$
—

5,402

—

5,402

Contingent royalty

—

—

17,216

17,216

VSM

—

—

12,987

12,987

$
—

5,402

30,203

35,605

~~Contingent Royalty Consideration~~

~~Key assumptions in the valuation include the gross sales price forecast, export volume forecast, volatility, the risk-free rate, and credit-spread of the Company.~~

Quantitative Information about Level 3 Fair Value Measurements

(US$ thousands)

Fair value at
June 30, 2019

Valuation
technique

Unobservable input

Range (Weighted
Avg.)

Contingent Royalty Liability(1)

$
10,073

Black-Scholes Options model

Gross sales price forecast per ton

$104.0 to $111.9 ($109.8)

Export volume forecast (000’s)

5,221 tons over 21 months

Volatility

15.6%

Risk-free rate

2.11% to 2.37% (2.29)%

Company credit spread

0.072

~~(1) $6.9 million of this amount is classified as a current liability with the remaining $3.1 million classified as a non-current liability.~~

~~Value Share Mechanism~~

~~Key assumptions in the valuation sales price forecast, expected volume forecast, tax rate and Foreign Exchange, or FX, rate.~~

Quantitative Information about Level 3 Fair Value Measurements

(US$ thousands)

Fair value at
June 30, 2019

Valuation
technique

Unobservable input

Range (Weighted
Avg.)

Value Share Mechanism (VSM)

$
351

Projected cash flows

Gross sales price forecast per ton

$131.3 to $146.8 $(137.8)

Tax rate

30.00%

FX rate

0.7020

~~Given the remaining period of the VSM obligation is short-term, the valuation technique has been changed from Monte Carlo simulation to a projected cash flow analysis.~~

~~NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)~~

~~The following is a summary of all the activity related to the contingent royalty liability and value share mechanism:~~

Six months ended June 30, 2019 activity

(US$ thousands)

Account
classification

Contingent
Royalty
Liability

VSM

Incurred
royalties

Total

Beginning balance at January 1, 2019:

$
17,216

12,987

8,295

38,498

Statement of Operation activity:

Contingent liability/VSM expense incurred

Other royalties

15,105

15,105

Decrease in VSM Liability value

Other royalties

(12,636
)

(12,636
)
Decrease in Contingent Royalty Liability value

Other royalties

(7,143
)

(7,143
)
Total Statement of Operations activity:

$
(7,143
)
(12,636
)
15,105

(4,674
)
Cash paid to CONSOL/Wesfarmers

(18,384
)
(18,384
)
Balance sheet:

Royalties payable to CONSOL/Wesfarmers

Accrued expenses and other liabilities

5,016

5,016

VSM Liability

Contingent royalty consideration—current

351

351

Contingent Royalty Liability

Contingent royalty consideration

10,073

10,073

Total liabilities

$
10,073

351

5,016

15,440

~~There are no other fair value measurements of assets and liabilities that are measured at fair value on a nonrecurring basis as of June 30, 2019 and December 31, 2018.~~

Other Financial Instruments

The following methods and assumptions are used to estimate the fair value of other financial instruments as of June 30, ~~2019~~2020 and December 31, ~~2018:~~2019:

·Cash and restricted cash, accounts receivable, accounts payable, accrued 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.

·Deposits and reclamation bonds, lease liabilities, interest bearing liabilities and other financial liabilities: The fair values approximate the carrying values reported in the unaudited Condensed Consolidated Balance Sheets.

18.Other Comprehensive Income

~~17.~~~~Commitments~~Accumulated other comprehensive loss consisted of the following at June 30, 2020:


		Net unrealized gain (loss)
(US$ thousands)	Foreign currency translation adjustments	Cash flow fuel hedges	Cash flow foreign currency hedges	Total
Balance at December 31, 2019	(48,265)	2,378	681	(45,206)
Net current-period other comprehensive income (loss):
Loss in other comprehensive income (loss) before reclassifications	(14,406)	(30,796)	(4,355)	(49,557)
Loss reclassified from accumulated other comprehensive income (loss)	—	9,809	3,449	13,258
Tax effects	—	6,983	264	7,247
Total net current-period other comprehensive loss	(14,406)	(14,004)	(642)	(29,052)
Balance at June 30, 2020	(62,671)	(11,626)	39	(74,258)

Coronado Global Resources Inc. Form 10-Q June 30, 202020

Table of Contents

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

19.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 are as follows:

(US$ thousands)				Amount
Year ending December 31,
2020				3,450
2021				5,373
2022				5,208
2023				5,133
2024				5,010
Thereafter				25,465
Total				49,639

Mineral leases are not in scope of ASC 842 and continue to be accounted for under the guidance in ASC 932, Extractive Activities – Mining.

(US$ thousands)

Amount

Year ending December 31,

2019

2,624

2020

5,313

2021

5,175

2022

5,010

2023

4,935

Thereafter

25,884

Total

48,941

~~Mineral leases are not in scope of ASC 842 and continue to be accounted for under the guidance in ASC 932, Extractive Activities — Mining.~~

(b)Other commitments

As of June 30, ~~2019,~~2020, purchase commitments for capital expenditures were ~~$23.8~~$25.9 million, all of which is obligated within the next 12 months.

The Company has entered into fixed price contracts to purchase fuel for the U.S. Operations. As of June 30, 2019, the commitment for fuel purchases were $5.6 million, all of which is obligated within the six months to December 31, 2019.

~~NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)~~

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 11 years. In the U.S., the Company typically negotiates its rail and coal terminal access on an annual basis. As of June 30, ~~2019,~~2020, these Australian and U.S. commitments under take-or-pay arrangements totaled ~~$1.04~~$1.5 billion, of which approximately ~~$90.3~~$101.2 million is obligated within the next year.

20.Contingencies

~~18.~~~~Related-Party Transactions~~

~~X-Coal~~

During the three and six months ended June 30, 2019 the Company sold coal to Xcoal Energy and Resources, or Xcoal, an entity associated with Non-Executive director, Mr. Ernie Thrasher. Revenues from Xcoal of $135.3 million and $98.5 million, respectively, are recorded as coal revenues on the unaudited Condensed Consolidated Statement of Operations for the three months ended June 30, 2019 and 2018. Revenues from Xcoal of $293.2 million and $213.0 million, respectively, are recorded as coal revenues on the unaudited Condensed Consolidated Statement of Operations for the six months ended June 30, 2019 and 2018. At June 30, 2019 amounts due from Xcoal in respect of coal sales were $59.7 million. As of December 31, 2018, amounts due from Xcoal in respect of coal sales were $36.0 million. These balances are included in related party receivables.

~~19.~~~~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. No liabilities related to these 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.

Facility B of the SFA provides A$~~370~~130 million for issuing multicurrency bank ~~guarantees in Australian dollars.~~guarantees. At June 30, ~~2019~~2020, Facility B of the SFA had been utilized to issue A$ ~~268.5~~68.9 million of bank guarantees on behalf of the Company. In

For the U.S. Operations in order to ~~satisfy an obligation to~~ provide ~~a U.S. dollar bank guarantee to a third party, on June 12, 2019,~~the required financial assurance, the Company ~~entered into a Bank Guarantee Facility Agreement with Westpac Banking Corporation with a limit~~generally uses surety bonds for post-mining reclamation and workers’ compensation obligations. The Company can also use bank letters of ~~$28.6 million. At~~credit to collateralize certain obligations. As of June 30, ~~2019, this facility was fully utilized~~2020, the Company had outstanding surety bonds of $40.0 million, to ~~issue a bank guarantee to a third party for $28.6 million.~~secure various obligations and commitments.

Curragh is a co-~~defendant~~co-appellant to proceedings in the Queensland Supreme Court brought by Aurizon. Aurizon’s claim relates to costs relating to the co-defendants’ use of the Wiggins Island Coal Export Terminal Pty Ltd, or WICET, rail links, in particular, whether the “First Milestone Target Date”, which triggers certain “WIRP Fee” payments under the Wiggins Island Rail Project Deed, or WIRP Deed, has been achieved. ~~On June 27, 2019,~~The trial for this matter concluded in September 2018 and judgement was delivered by the Supreme Court in July 2019. Ultimately, Aurizon was successful in that trial and a determination was made that a WIRP Fee premium is payable by the defendants under the WIRP Deed. The defendants appealed the decision in the Queensland ~~Supreme~~ Court ~~delivered judgements in favor~~ of ~~Aurizon against Coronado Curragh Pty Ltd~~Appeal and the ~~other co-defendants. The Company intends~~appeal hearing was held in March 2020. Judgement has been reserved by the Court of Appeal and is not expected to continue to strongly contest the matter. The Company, together with the other co-defendants, lodged a notice of appeal of the Queensland Supreme Court judgement on July 25, 2019. It is currently expected that, were Aurizon successful in the ultimate result of the litigation and expert determinations, Coronado Curragh Pty Ltd would be ~~required to pay approximately A$2.3 million per annum for the term of the WIRP Deed (which is 233 months).~~delivered before August 2020. Resolution of this dispute would also result in the Company’s below rail access to WICET (of 1.5 MMtpa) becoming a firm contractual capacity entitlement (and the subject of a 20 year take-or-pay access agreement) instead of an ad hoc entitlement only. The Company’s unaudited Condensed Consolidated Balance Sheet includes an estimated loss contingency associated with these proceedings of approximately ~~$4.2 million and $3.5~~$5.3 million as at June 30, ~~2019 and December 31, 2018, respectively.~~2020.

Should the defendant’s appeal process be unsuccessful, the amount of the WIRP Fee may materially differ from our current estimation.

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NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

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.

The liabilities recorded in relation to the above ~~litigations~~litigation do not include estimated future costs associated with legal representation, which, in accordance with the Company’s policy, are expensed as incurred. 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.

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~~NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)~~

~~20.~~~~Subsequent Events~~

On August 5, 2019, the Board of Directors declared a fully franked interim dividend of $0.112 per Chess Depository Instrument, or CDI. The dividend will have a record date of August 26, 2019, payable on September 20, 2019. Holders of CDIs trading on the ASX who elect to receive the dividend in Australian currency will be paid based on the exchange rate on the record date. The ex-dividend date will be August 23, 2019.

On August 5, 2019, the Board of directors declared a return of capital of $0.298 per CDI. The return of capital will have a record date of August 26, 2019, payable on September 20, 2019. Holders of CDIs trading on the ASX who elect to receive the return of capital in Australian currency will be paid based on the exchange rate on the record date.

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 ~~Information~~Statements

We have reviewed the accompanying condensed consolidated balance sheet of Coronado Global Resources Inc. ~~and subsidiaries~~ (the Company) as of June 30, ~~2019,~~2020, the related condensed consolidated statements of ~~operations~~operation and comprehensive income, stockholders’ equity and cash flows for the three-month and six-month periods ended June 30, ~~2019 and 2018, the related condensed consolidated statements of changes in stockholders’ equity/members’ capital and cash flows for the six-month periods ended June 30, 2019 and 2018,~~2020 and the related notes (collectively referred to as the “condensed consolidated interim financial ~~information)~~statements”). Based on our ~~reviews,~~review, we are not aware of any material modifications that should be made to the condensed consolidated interim financial ~~information~~statements for itthem to be in conformity with U.S. generally accepted accounting principles.

~~We have previously audited, in accordance with the standards~~The condensed consolidated financial information of the ~~Public~~ Company ~~Accounting Oversight Board (United States) (PCAOB),~~for the three-month and six-month periods ended June 30, 2019, were reviewed by other auditors whose report dated August 5, 2019 stated that based on their review they were not aware of any material modifications that should be made to those statements for them to be in conformity with U.S. generally accepted accounting principles. The consolidated balance sheet of the Company as of December 31, ~~2018, and~~2019, the related consolidated statements of operations and comprehensive income, ~~changes in stockholders’ equity/members’ capital,~~stockholders' equity and cash flows for the year then ended, and the related notes (not presented herein)~~; and in our~~ were audited by other auditors whose report dated February ~~18, 2019, we~~24, 2020 expressed an unqualified opinion on those ~~consolidated financial~~ statements. In our opinion, the information set forth in the accompanying condensed consolidated balance sheet as of December 31, 2018, is fairly stated, in all material respects, in relation to the consolidated balance sheet from which it has been derived.

Basis for Review Results

~~This consolidated interim~~These financial ~~information is~~statements are the responsibility of the ~~Company’s~~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 ~~Securities and Exchange Commission~~SEC and the PCAOB.

We conducted our ~~reviews~~review in accordance with the standards of the PCAOB. A review of ~~consolidated~~ interim financial ~~information~~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/ ~~KPMG LLP~~Ernst & Young

~~Richmond, Virginia~~

Brisbane, Australia

August ~~5, 2019~~10, 2020.

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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 Form 10-Q. In addition, this Form 10-Q report should be read in conjunction with the Consolidated Financial Statements for ~~the three-year period~~year ended December 31, ~~2018~~2019 included in Coronado Global Resources Inc.’s ~~registration statement~~Annual Report on Form ~~10, as amended,~~10-K for the year ended December 31, 2019, filed with the U.S. Securities and Exchange Commission, or SEC, and the Australian Securities Exchange, or the ASX, on ~~June 28, 2019.~~February 24, 2020.

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, or the Securities Act, 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, the effect of COVID-19 and related governmental and economic responses thereto, 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,” “likely,” “intends,” “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 or an investment in our securities include, but are not limited to:

uncertainty and weaknesses in global economic conditions, including the extent, duration and impact on prices caused by reduced demand. The COVID-19 pandemic led to reduced market demand and risks related to government actions with respect to trade agreements, treaties or policies;

·severe financial hardship, bankruptcy, temporary or permanent shut downs or operational challenges, due to the ongoing COVID-19 pandemic or otherwise, 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;

our ability to generate sufficient cash to service our indebtedness and other obligations;

our indebtedness and ability to comply with the covenants under the agreements governing such indebtedness;

the prices we receive for our coal;

·the demand for steel products, which impacts the demand for our metallurgical, or Met, coals;

·risks inherent to mining;

·the loss of, or significant reduction in, purchases by our largest customers;

·our ability to collect payments from our customers depending on their creditworthiness, contractual performance or otherwise;

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

·our ability to continue acquiring and developing coal reserves that are economically recoverable;

·uncertainties in estimating our economically recoverable coal reserves;

·transportation for our coal becoming unavailable or uneconomic for our customers;

·the risk that we may be required to pay for unused capacity pursuant to the terms of our take-or-pay arrangements with rail and port operators;

·our ability to retain key personnel and attract qualified personnel;

·any failure to maintain satisfactory labor relations;

·our ability to obtain, renew or maintain permits and consents necessary for our operations;

·potential costs or liability under applicable environmental laws and regulations, including with respect to any exposure to hazardous substances caused by our operations, as well as any environmental contamination our properties may have or our operations may cause;

·extensive regulation of our mining operations and future regulations and developments;

·our ability to provide appropriate financial assurances for our obligations under applicable laws and regulations;

·assumptions underlying our asset retirement obligations for reclamation and mine closures;

·concerns about the environmental impacts of coal combustion, including perceived impacts on global climate issues, which could result in increased regulation of coal combustion in many jurisdictions and divestment efforts affecting the investment community;

·the extensive forms of taxation that our mining operations are subject to, and future tax regulations and developments;

· ~~risks unique to international mining and trading operations;~~

·any cyber-attacks or other security breaches that disrupt our operations or result in the dissemination of proprietary or confidential information about us, our customers or other third parties;

·a decrease in the availability or increase in costs of key supplies, capital equipment or commodities, such as diesel fuel, steel, explosives and tires;

· ~~unfavorable economic and financial market conditions;~~

·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;

· ~~our indebtedness and ability to comply with the covenants under the agreements governing such indebtedness;~~

· ~~our ability to generate sufficient cash to service all of our indebtedness or other obligations;~~

·the risk that diversity in interpretation and application of accounting principles in the mining industry may impact our reported financial results; and

·other risks and uncertainties detailed in this report, including, but not limited to, those discussed in “Risk 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 ~~registration statement~~Annual Report on Form ~~10, as amended,~~10-K for the year ended December 31, 2019, filed with the SEC and ASX on ~~June 28, 2019,~~February 24, 2020 and Part II, Item 1A. “Risk Factors” of our Quarterly Report on Form 10-Q for the three months ended March 31, 2020, filed with the SEC and ASX on May 8, 2020, 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. Furthermore, the forward-looking statements included in this Quarterly Report on Form 10-Q are made only as of the date

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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

~~Overview~~

We are a global producer, marketer and exporter of a full range of Met ~~coals.~~coal products. We own a portfolio of operating mines and development projects in Queensland, Australia and in Virginia, West Virginia and Pennsylvania in the United States.

Our operations in Australia, or our Australian Operations, comprise the 100%-owned Curragh producing mine complex. Our operations in the United States, or the U.S. Operations, comprise ~~three~~two 100%-owned producing mine complexes (Buchanan ~~Logan~~ and ~~Greenbrier)~~Logan), one 100%-owned temporarily idled mine complex (Greenbrier), two development properties (Pangburn-Shaner-Fallowfield and Russell County) and one idle property (Amonate). In addition to Met coal, our Australian Operations sell thermal coal, which is used to generate electricity, to Stanwell Corporation Limited, or Stanwell. Our U.S. Operations primarily focuses 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.

~~Our business profile primarily focuses on the production of Met coal for the North American and seaborne export markets.~~ For the six months ended June 30, ~~2019,~~2020, we produced 8.0 MMt and sold ~~10.4~~8.3 MMt of coal. Met coal and thermal coal sales represented approximately ~~80.0%~~79.0% and ~~20.0%~~21.0%, respectively, of our total volume of coal sold for the six months ended June 30, ~~2018.~~2020.

Our results for the six months ended June 30, 2020, were adversely impacted by (1) a fatal injury to an employee of one of our contractors at our Australian Operations which resulted in temporary suspension of mining activities during January and February that resulted in lower production and lower sales volumes, (2) wet weather conditions in Australia which disrupted certain mining and logistics activities, (3) a delay in resolution of the United States and China trade dispute, which limited export sales to China, (4) the impact of COVID-19 on global Met coal demand resulting in the temporary idling of the U.S. Operations in April and May 2020 and implementation of preventative measures at all our operations to protect our employees from the pandemic. These impacted operating efficiencies and resulted in lower production and lower realized prices. The Buchanan and Logan mines resumed operations on June 1, 2020, while the Greenbrier mine remains temporarily idled until market conditions improve. Despite these adverse conditions, our results benefited from lower gross cost and capital expenditure across our business. A weaker Australian dollar, the currency in which most costs are denominated for our Australian Operations, had a positive impact on performance.

From our Australian Operations, production and sales volumes were lower for the six months ended June 30, 2020 compared to the same period in 2019. Coal sales volumes decreased 0.8 MMt, or 12.6%. Lower sales volumes combined with lower average realized prices per Mt resulted in a reduction in coal revenues by 40.4% compared to the prior comparative period. Despite Operating costs for the six months ended June 30, 2020 being $55.6 million, or 10.6% favorable compared to the corresponding period in 2019, Mining cost and Operating costs per ton increased as a result of lower production and sales volumes during period.

From our U.S. Operations, production and sales volumes were lower for the six months ended June 30, 2020 compared to the same period in 2019 primarily due to the impacts of COVID-19 and subsequent idling of operations in April and May. Coal sales volumes decreased 1.2 MMt, or 31.0%. Lower sales volumes combined with lower average realized prices per Mt resulted in a reduction in coal revenues by 45.4% compared to the prior comparative period. To mitigate the revenue decline, Operating costs for the six months ended June 30, 2020 were $90.5 million, or 31.3% favorable compared to the corresponding period in 2019. These effective cost controls realized a reduction in Mining cost and Operating costs per ton compared to the prior corresponding period.

During the period ended June 30, 2020, we recognized an impairment charge of $63.1 million related to the Greenbrier mine.

COVID-19

The COVID-19 global pandemic has continued to result in a challenging working environment which has significantly impacted the demand and price for metallurgical coal. Authorities in many countries around the world have implemented numerous and varying measures to reduce the spread and limit the impact of COVID-19, including travel bans and restrictions, quarantines, curfews, stay-at-home orders, business shutdowns and closures. Many countries have also commenced implementing multi-stage policies with the goal of re-opening markets and boosting economic activity. These measures have impacted and will continue to impact our mining operations, our customers, employees, suppliers and other third parties with whom we do business. The U.S. and Australia, where our mining operations are located, are in varying stages of restrictions and re-opening in response to COVID-19. There is considerable uncertainty regarding how current and future health and safety measures implemented in response to the pandemic will impact our business, including whether they will result in further changes in demand for metallurgical coal, increase in operating costs, impacts to our supply chain and whether measures will result in port closures or border restrictions, each or all of which can impact our ability to produce and sell our coal.

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The global economic slowdown resulting from the effects of COVID-19 has sharply reduced the demand for steel in all markets except for China, where steel production remained elevated during the second half of 2020. In Australia, our sales profile has adjusted accordingly with an increase portion of deliveries to the Chinese market in the quarter. The impact on our Australian Operations has been limited due to the Curragh mine’s unique position as a strategic supplier of ‘base load’ metallurgical coal for coke blends. While global demand remains uncertain, there are promising signs of recovery in Asia Pacific demand.

In response to the global impacts of COVID-19 on the demand for steel and the resulting impact on the price and demand for metallurgical coal, the Company has taken steps to safeguard its operations, strengthen its balance sheet and increase liquidity by reducing capital expenditures and managing operating costs in a disciplined manner.

Due to the impact of COVID-19, we expect our results of operations for fiscal year 2020 to be significantly below our historical performance.

Syndicated Facility Agreement covenant waivers

On May 25, 2020 the Company concluded an agreement with lenders under the SFA to waive compliance with certain financial covenants for the period from May 25, 2020 to February 28, 2021. The waiver provides additional flexibility to work through this period of significant uncertainty, lower demand and pricing for metallurgical coal that has been brought about by the global COVID-19 pandemic. During the waiver period the Company will have additional reporting undertakings and additional restrictions on certain terms and conditions, including in relation to divestments and new indebtedness. During the waiver period we are required to provide additional financial information to the lenders each month and have agreed to limit financial indebtedness and asset sales that is not pre-approved by lenders. See “Liquidity and Capital Resources-Liquidity-Secured Credit Facilities” below for more details.

Segment Reporting

In accordance with Accounting Standards Codification, or ASC, 280, Segment Reporting, we have adopted the following reporting segments: ~~Curragh; Buchanan; Logan;~~Australia and ~~Greenbrier.~~the United States. In addition, ~~“Corporate~~“Other and ~~other”~~Corporate” is not a reporting segment but is disclosed for the purposes of reconciliation to our consolidated financial statements.

~~Factors Affecting Comparability of our Financial Statements~~

Due to several factors, our historical results of operations are not comparable from period to period and may not be comparable to our financial results of operations in future periods. Set forth below is a brief description of the key factors impacting the comparability of our results of operations.

~~Curragh Acquisition~~

On March 29, 2018, we acquired Curragh from Wesfarmers Ltd, or Wesfarmers, for aggregate consideration, on the date of the transaction, of $563.8 million. We refer to this transaction as the Curragh acquisition. The operating results of Curragh have been included in our consolidated financial statements since March 29, 2018.

~~Corporate Reorganization Transaction~~

During the year ended December 31, 2018, Coronado Group LLC and Coronado Global Resources Inc. completed a common control reorganization of their legal entity structure, which we refer to as the Reorganization Transaction. Prior to the Reorganization Transaction in August 2018, Coronado Group HoldCo LLC, the holding company of our Australian Operations, was a wholly-owned subsidiary of Coronado Group LLC.

The Reorganization Transaction was treated as a combination of entities under common control in line with ASC 805, Business Combinations, whereby the receiving entity (the Company) recorded the contributed assets and liabilities at the carrying value of Coronado Group LLC. Prior to the Reorganization Transaction, the consolidated financial statements of the Company reflect the net assets and operations of Coronado Group LLC. The financial statements presented following the Reorganization Transaction are those of the receiving entity (the Company) and are retrospectively adjusted to present that entity as if it always held the net assets or equity interests previously held by the seller, Coronado Group LLC. As such, financial information (including comparatives) of the Company has been presented as a continuation of the pre-existing accounting values of assets and liabilities in Coronado Group LLC’s financial statements.

~~Australian IPO~~

On October 23, 2018, we completed an initial public offering on the ASX, pursuant to which the Company issued and sold the equivalent of 16,651,692 shares of common stock in the form of CHESS Depositary Interests, or CDIs, and the ~~EMG Group sold the equivalent of 2,691,896.4 shares of common stock in the form of CDIs.~~

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, or on a quarterly ~~basis.~~basis or annual fixed price contracts.

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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) total sales volumes and average realized price per Mt sold, which we define as total coal revenues divided by total sales volume; (iii) Met sales volumes and average realized ~~met~~Met price per Mt sold, which we define as ~~met~~Met coal revenues divided by ~~met~~Met sales volume; (iv) average segment mining costs per Mt sold, which we define as ~~cost of coal revenues~~mining costs divided by sales ~~volumes;~~volumes for the respective segment; and (v) average segment operating costs per Mt sold, which we define as segment operating costs divided by sales ~~volumes.~~volumes for the respective segment.

Coal revenues are shown on our statement of operations and comprehensive income exclusive of other revenues. Operating expenses are inclusive of cost of coal revenues, freight expense, Stanwell rebate and other royalties and exclude depreciation, depletion and amortization, and selling, general, and administrative expenses. Cost of coal revenues 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. Cost of coal revenues excludes these cost components as our chief operating decision maker, or CODM, does not view these costs as directly attributable to the production of coal. We believe our presentation of cost of coal revenues is useful to investors in providing an accurate view of the costs directly attributable to the production of coal in our mining costs segment. Additionally,Generally, export sale contracts for our ~~international sales contracts, we typically~~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 ~~of operations~~ includes references to and analysis of Adjusted EBITDA and mining costs, which ~~is a~~are financial ~~measure~~measures not recognized in accordance with U.S. Generally Accepted Accounting Principles, or U.S. GAAP. Non-GAAP financial measures, including Adjusted EBITDA, are used by investors to measure our operating ~~performance and lenders to measure our ability to incur and service debt.~~performance.

Adjusted EBITDA, a non-GAAP measure, is defined as earnings before interest, tax, depreciation, depletion and amortization and other foreign exchange ~~losses and loss on debt extinguishment.~~losses. Adjusted EBITDA is also adjusted for certain discrete 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 and may not be comparable to ~~similarly-titled~~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. ~~In addition, we present Adjusted EBITDA on a supplemental pro forma basis.~~

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 mine. Mining costs excludes these cost components as our CODM does not view these costs as directly attributable 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.

Three Months Ended June 30, ~~2019~~2020 Compared to Three Months Ended June 30, ~~2018~~2019

Summary

~~Summary~~

~~Our~~The financial and operational highlights for the three months ended June 30, ~~2019:~~2020:

· ~~Tonnage sold~~Sales volume totaled ~~5.4~~3.8 MMt for the three months ended June 30, ~~2019, or 0.2~~2020, 1.5 MMt ~~higher~~lower than the three months ended June 30, ~~2018. Significant improvements~~2019. Sales volumes were lower largely due to ~~rail availability at Curragh~~the idling of our U.S Operations during April and May in response to the ~~second quarter of 2019 provided the opportunity to recover delayed sales from the first quarter of 2019.~~COVID-19 market conditions.

·Net income ~~increased~~decreased by ~~$58.2 million, from $59.3~~$231.8 million for the three months ended June 30, ~~2018, to net income of~~2020, from $117.5 million for the three months ended June 30, 2019, ~~reflecting increases in operating income~~generating a net loss of $114.3 million for the quarter. The decrease was primarily due to lower coal sales revenues and ~~lower other expenses, partly~~the impact of the non-cash impairment charge at Greenbrier, partially offset by lower operating costs and an income tax ~~expense.~~benefit.

· ~~Coal markets remained positive~~Lower coal market prices during the three months ended June 30, ~~2019 as~~2020 resulted in lower average realized Met coal ~~revenues averaged $5.8~~pricing of $91.6 per ~~ton higher~~Mt sold, 33.5% lower compared to the three months ended June 30, ~~2018.~~2019.

·Adjusted EBITDA for the three months ended June 30, ~~2019 totaled $222.3~~2020, is a loss of $10.5 million, ~~an increase~~a decrease of ~~$83.1~~$232.8 million, from Adjusted EBITDA of ~~$139.2~~$222.3 million for the three months ended June 30, ~~2018, driven by very strong revenues and lower operating costs.~~2019.

As at June 30, 2020 the company had $441.0 million of external borrowings outstanding.

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As of June 30, ~~2019, we~~2020, Coronado had cash on hand of ~~$46.0~~$36.1 million (excluding restricted cash) ~~and $350.0 million of availability under the Multicurrency Revolving Syndicated Facility Agreement, dated September 15, 2018, which we refer to as the SFA.~~.

	For Three Months Ended June 30,								For Three months ended June 30,
	($ in thousands)								($ in thousands)
	2019		2018		Change		%		2020	2019	Change	%
Revenues:
Coal revenues	630,690		577,510		53,180		9.2	%	295,206	630,690	(335,484)	(53.2%)
Other revenues	11,767		14,020		(2,253	)	(16.1	)%	9,142	11,767	(2,625)	(22.3%)
Total revenues	642,457		591,530		50,927		8.6	%	304,348	642,457	(338,109)	(52.6%)
Costs and expenses:
Cost of coal revenues (exclusive of items shown separately below)	264,137		305,309		(41,172	)	(13.5	)%	224,459	264,137	(39,678)	(15.0%)
Depreciation, depletion and amortization	45,508		42,594		2,914		6.8	%	41,547	45,508	(3,961)	(8.7%)
Freight expenses	52,035		40,912		11,123		27.2	%	40,504	52,035	(11,531)	(22.2%)
Stanwell rebate	45,847		32,812		13,035		39.7	%	24,787	45,847	(21,060)	(45.9%)
Other royalties	49,073		67,695		(18,622	)	(27.5	)%	19,157	49,073	(29,916)	(61.0%)
Selling, general, and administrative expenses	9,242		8,513		729		8.6	%	7,158	9,242	(2,084)	(22.5%)
Total costs and expenses	465,842		497,835		(31,993	)	(6.4	)%	357,612	465,842	(108,230)	(23.2%)
Operating income	176,615		93,695		82,920		88.5	%
Operating (loss) income									(53,264)	176,615	(229,879)	(130.2%)
Other income (expenses):
Interest expense, net	(9,087	)	(18,987	)	9,900		(52.1	)%	(12,064)	(9,087)	(2,977)	32.8%
Loss on debt extinguishment	—		—		—		—
Impairment of assets									(63,111)	—	(63,111)	100.0%
Other, net	(2,989	)	(2,391	)	(598	)	25.0	%	(8,537)	(2,989)	(5,548)	185.6%
Total other expenses, net	(12,076	)	(21,378	)	9,302		(43.5	)%
Net income before tax	164,539		72,317		92,222		127.5	%
Income tax expense	(47,033	)	(12,995	)	(34,038	)	261.9	%
Net income	117,506		59,322		58,184		98.1	%
Total other income (expense), net									(83,712)	(12,076)	(71,636)	593.2%
Net (loss) income before tax									(136,976)	164,539	(301,515)	(183.2%)
Income tax benefit (expense)									22,646	(47,033)	69,679	(148.1%)
Net (loss) income									(114,330)	117,506	(231,836)	(197.3%)
Less: Net loss attributable to noncontrolling interest	(4	)	(2	)	(2	)	100.0	%	(2)	(4)	2	(50.0%)
Net income attributable to Coronado Global Resources Inc.	117,510		59,324		58,186		98.1	%
Net (loss) income attributable to Coronado Global Resources, Inc.									(114,328)	117,510	(231,838)	(197.3%)

Coal Revenues

Coal revenues were ~~$630.7~~$295.2 million for the three months ended June 30, 2019, an increase of $53.2 million, as compared to $577.5 million for the three months ended June 30, 2018. The increase in coal revenues was attributable to higher Met coal sales volumes and higher average realized Met coal price per ton sold during the 2019 period. Improvements in rail conditions at Curragh underpinned the increase in sales volumes whereas higher average realized Met coal pricing was primarily driven by committed (fixed and index priced) high volatile coal sales from the Logan segment, as well as an improved higher yielding Met coal sales mix.

~~Other Revenues~~

~~Other revenues were $11.8 million for the three months ended June 30, 2019,~~2020, a decrease of ~~$2.3~~$335.5 million, as compared to ~~$14.0~~$630.7 million for the three months ended June 30, 2018. The decrease is predominantly related to Curragh, which recorded $12.6 million in other revenues relating to the amortization of the Stanwell non-market coal supply agreement, or CSA, liability for the three months ended June 30, 2018 compared to $8.5 million recognized for the three months ended June 30, 2019. This decrease was ~~partially offset~~driven by ~~an increase~~lower coal sales volumes and a lower average realized Met coal price for the three months to June 30, 2020, compared to the same period in ~~freight revenues with respect~~2019. Coal sales volumes were down 1.5 MMt, due to ~~certain arrangements with customers at Logan~~softer market conditions resulting from the impact of the COVID-19 pandemic, and ~~Greenbrier.~~import restrictions into China, which resulted in the suspension of sales from our U.S. Operations to China during the June 30, 2020 quarter. Lower sales volumes were exacerbated by lower average realized Met coal pricing of $91.6 per Mt sold, a reduction of $46.2 per Mt sold, compared to $137.8 per Mt sold as of June 30, 2019 due to difficult coal market conditions, affected by weak customer demand and pandemic restrictions.

Cost of Coal Revenues (Exclusive of Items Shown Separately Below)

Depreciation, Depletion and Amortization

Depreciation, depletion and amortization was $41.6 million for the three months ended June 30, ~~2018. The primary reasons for this~~2020, a decrease ~~are: (1) the three months~~of $3.9 million, as compared to June 30, 2018 included the unwind of a $21.4 million fair value adjustment recognized to coal inventories on the acquisition of Curragh; and (2) favorable average foreign exchange rate on translation of the Curragh operations for the three months ended June 30, 2019 of A$/US$: 0.71 versus 0.76 for the three months ended June 30, 2018. This was partially offset by higher production costs of $3.4 million at our U.S. Operations, primarily due to adverse geological mining conditions at certain mine complexes.

~~Depreciation, Depletion and Amortization~~

~~Depreciation, depletion and amortization was~~ $45.5 million for the three months ended June 30, ~~2019, an increase~~2019. The decrease was largely driven by favorable average foreign exchange rate on the translation of ~~$2.9 million, as~~the Australian operations of A$/US$: 0.66 compared to ~~$42.6~~0.70 for the three months ended June 30, 2020 compared to the same period in 2019.

Coronado Global Resources Inc. Form 10-Q June 30, 202029

Table of Contents

Freight Expenses

Freight expenses primarily relate to the Australian operations and relate to costs associated with take-or-pay commitments for rail and port providers and demurrage costs. Freight expenses totaled $40.5 million for the three months ended June 30, ~~2018. The increase was largely associated with our operating segments in the United States (Buchanan, Logan and Greenbrier) for which depreciation expense increased by $2.1~~2020, a decrease of $11.5 million, ~~predominantly due~~as compared to ~~the expiration of a credit that was previously recognized on amortization of sales contracts.~~

~~Freight Expenses~~

~~The amount of freight expenses was~~ $52.0 million for the three months ended June 30, ~~2019, an increase~~2019. Curragh’s freight costs contributed $9.8 million to this decrease driven by lower production and sales volumes which in turn incurred lower railings and port charges. The remaining decrease related to our U.S. Operations where sales volumes were significantly lower due to idling of ~~$11.1 million, as compared to $40.9~~the mines during April and May.

Stanwell Rebate

The Stanwell rebate was $24.8 million for the three months ended June 30, ~~2018. Curragh’s freight costs contributed $4.4~~2020, a decrease of $21.1 million, as compared to this increase driven by higher sales volumes which in turn incurred higher railings and port charges. The remaining $6.7 million increase relates mainly to new sales contracts entered into at Logan and Greenbrier which include the rendering of rail and port services to certain customers.

~~Stanwell Rebate~~

~~The Stanwell rebate was~~ $45.8 million for the three months ended June 30, ~~2019, an increase~~2019. The decrease was largely driven by lower realized coal pricing during 2020, lower sales volumes in the second quarter of ~~$13.0~~2020 and a favorable average foreign exchange rate on translation of A$/US$: 0.66 compared to 0.70 for the three months ended June 30, 2020 compared to the same period in 2019.

Other Royalties

Other royalties were $19.2 million in the three months ended June 30, 2020, a decrease of $29.9 million, as compared to ~~$32.8~~$49.1 million in the three months ended June 30, 2019. Lower royalties were a product of lower average realized export pricing, a favorable average foreign exchange rate for the quarter used to translate the Australian Operations and the benefit of a mark to market write down of the Contingent Royalty Consideration obligation (payable to CONSOL) during the three months ended June 30, 2020 of $0.5 million compared to $0.7 million write up for the same period in 2019.

Interest Expense, net

Interest expense, net of $12.1 million for the three months ended June 30, ~~2018. The increase is driven primarily from higher export sales volumes in the three months ended June 30, 2019 versus the three months ended June 30, 2018.~~

~~Other Royalties~~

~~Other royalties were $49.0 million in the three months ended June 30, 2019, a decrease of $18.6~~2020, increased $3.0 million, as compared to $67.7 million in the three months ended June 30, 2018. The variance was primarily driven by a significant mark-to-market write up in the Contingent Royalty Consideration (payable to CONSOL) during the 2018 in respect of the Buchanan mine for $19.4 million due to higher forecast Met pricing at the end of June 30, 2018.

~~Interest Expense~~

~~Interest expense, net of interest income, was~~ $9.1 million for the three months ended June 30, ~~2019, a decrease of $9.9 million, as compared to~~2019. The higher interest expense in 2020 was due to increase draw down of ~~$19.0~~debt in the last 12 months with $441.0 million interest-bearing liabilities outstanding as at June 30, 2020. During the three months ended June 30, 2019 an average of $25.0 million of the debt was drawn down. However, such amount was fully repaid, and no balance remained outstanding as at June 30, 2019.

Income tax benefit (expense)

Income tax benefit of $22.6 million for the three months ended June 30, ~~2018. This decrease in interest~~2020, increased by $69.7 million, as compared to a tax expense ~~was primarily attributable to the repayment~~ of ~~the $700~~$47.0 million ~~term loan on October 24, 2018. The interest expense~~ for the three months ended June 30, ~~2019 includes the discount rate unwind~~2019. An income tax benefit is realized at June 30, 2020 on account of the ~~Stanwell Reserved Area, or~~company incurring a net loss for the ~~SRA, deferred consideration liability of $4.9 million and interest and finance charges on the SFA of $3.3 million.~~period.

Six Months Ended June 30, ~~2019~~2020 Compared to Six Months Ended June 30, ~~2018~~2019

Summary

~~Summary~~

~~Our~~The financial and operational highlights for the six months ended June 30, ~~2019:~~2020:

· ~~Tonnage sold~~Sales volume totaled ~~10.4~~8.3 MMt for the six months ended June 30, ~~2019,~~2020, or ~~5.1~~2.0 MMt ~~higher~~lower than the six months ended June 30, ~~2018, predominantly due~~2019. Sales volumes were impacted by the idling of the U.S Operations for two months in response to the ~~acquisition of~~demand contractions brought on by COVID-19 and the fatality in January 2020 at our Australian Operations impacting production mainly in the first quarter, and other wet weather and sequencing issues at the Curragh ~~on March 29, 2018.~~mine.

·Net income ~~increased~~decreased by ~~$178.7~~$337.5 million, from ~~$35.7 million for the six months ended June 30, 2018, to~~ $214.3 million for the six months ended June 30, 2019, ~~reflecting increases in operating income, predominantly~~to a net loss $123.2 million for the six months ended June 30, 2020. The decrease was primarily due to lower coal sales revenues and the ~~acquisition~~impact of ~~Curragh on March 29, 2018, lower interest expense, no loss on debt extinguishment, and lower other expenses, partly~~the non-cash impairment charge at Greenbrier, partially offset by ~~higher~~lower operating costs and an income tax ~~expense.~~benefit.

· ~~Coal markets strengthened~~Lower coal market prices during the six months ended June 30, ~~2019 as revenues averaged $116.7~~2020, resulted in lower average realized Met coal pricing of $97.3 per Mt sold, ~~6.7% higher~~29.2% lower compared ~~$109.4 per ton sold for~~to the six months ended June 30, ~~2018.~~2019.

·Adjusted EBITDA for the six months ended June 30, ~~2019~~2020, totaled ~~$405.4~~$34.9 million, ~~an increase~~a decrease of ~~$263.5~~$370.5 million, from Adjusted EBITDA of ~~$141.8~~$405.4 million for the six months ended June 30, ~~2018.~~2019

· ~~Net cash of $301.2 million by~~Cash used in operating activities was $7.6 million for the six months ended June 30, ~~2019 was partly offset by capital expenditures~~2020, a decrease of ~~$66.4 million.~~$308.8 million compared to cash generated of $301.2 million for the six months ended June 30, 2019.

·During the six months ended June 30, ~~2019, we~~2020, the Company paid ~~a dividend of $299.7~~dividends $24.2 million, which was funded by available cash and external borrowings. ~~The monies borrowed were fully repaid by~~As at June 30, ~~2019.~~2020 the company had $441.0 million of external borrowings outstanding.

Coronado Global Resources Inc. Form 10-Q June 30, 202030

Table of Contents

·As of June 30, ~~2019, we~~2020, the Company had ~~available~~ cash on hand of ~~$46.0~~$36.1 million (excluding restricted cash) ~~and $350.0 million of additional liquidity available under the Syndicated Facility Agreement.~~.

	For Six Months Ended June 30,								For Six months ended June 30,
	($ in thousands)								($ in thousands)
	2019		2018		Change		%		2020	2019	Change	%
Revenues:
Coal revenues	1,212,487		784,346		428,141		54.6	%	694,817	1,212,487	(517,670)	(42.7%)
Other revenues	21,848		15,337		6,511		42.5	%	18,849	21,848	(2,999)	(13.7%)
Total revenues	1,234,335		799,683		434,652		54.4	%	713,666	1,234,335	(520,669)	(42.2%)
Costs and expenses:
Cost of coal revenues (exclusive of items shown separately below)	533,696		424,620		109,076		25.7	%	481,345	533,696	(52,351)	(9.8%)
Depreciation, depletion and amortization	85,279		64,402		20,877		32.4	%	86,849	85,279	1,570	1.8%
Freight expenses	89,362		45,155		44,207		97.9	%	82,886	89,362	(6,476)	(7.2%)
Stanwell rebate	94,674		32,812		61,862		188.5	%	57,415	94,674	(37,259)	(39.4%)
Other royalties	93,422		82,987		10,435		12.6	%	43,455	93,422	(49,967)	(53.5%)
Selling, general, and administrative expenses	18,311		52,283		(33,972	)	(65.0	)%	13,353	18,311	(4,958)	(27.1%)
Total costs and expenses	914,744		702,259		212,485		30.3	%	765,303	914,744	(149,441)	(16.3%)
Operating income	319,591		97,424		222,167		228.0	%
Operating (loss) income									(51,637)	319,591	(371,228)	(116.2%)
Other income (expenses):
Interest expense, net	(17,264	)	(25,488	)	8,224		(32.3	)%	(24,318)	(17,264)	(7,054)	40.9%
Loss on debt extinguishment	—		(3,905	)	3,905		(100.0	)%
Impairment of assets									(63,111)	—	(63,111)	100.0%
Other, net	1,042		(26,846	)	27,888		(103.9	)%	(4,485)	1,042	(5,527)	(530.4%)
Total other expenses, net	(16,222	)	(56,239	)	40,017		(71.2	)%
Net income (loss) before tax	303,369		41,185		262,184		636.6	%
Income tax (expense) benefit	(89,043	)	(5,534	)	(83,509	)	1,509.0	%
Net income (loss)	214,326		35,651		178,675		501.2	%
Total other income (expense), net									(91,914)	(16,222)	(75,692)	466.6%
Net (loss) income before tax									(143,551)	303,369	(446,920)	(147.3%)
Income tax benefit (expense)									20,355	(89,043)	109,398	(122.9%)
Net (loss) income									(123,196)	214,326	(337,522)	(157.5%)
Less: Net loss attributable to noncontrolling interest	(4	)	(4	)	—		—		(4)	(4)	—	-
Net income (loss) attributable to Coronado Global Resources Inc.	214,330		35,655		178,675		501.2	%
Net (loss) income attributable to Coronado Global Resources, Inc.									(123,192)	214,330	(337,522)	(157.5%)

Coal Revenues

Coal revenues were $694.8 million for the six months ended June 30, 2020, a decrease of $517.7 million, compared to $1,212.5 million for the six months ended June 30, ~~2019, an increase of $428.1 million, as compared to $784.3 million for the six months ended June 30, 2018. The addition of Curragh contributed $402.0 million in additional~~2019. This decrease was driven by lower coal revenues for the six months ended June 30, 2019 that were not included within coal revenues for the six months ended June 30, 2018 given Curragh was acquired on March 29, 2018. Coal revenues for our operating segments in the United States (Buchanan, Logansales volumes and ~~Greenbrier) of $436.5 million for the six months ended June 30, 2019 were $26.7 million higher than $409.8 million for the six months ended June 30, 2018 mainly as~~ a ~~result higher~~lower average realized Met coal ~~pricing.~~

~~Other Revenues~~

~~Other revenues~~price. Coal sales volumes were ~~$21.8 million for~~down 2.0 MMt, due to lower production stemming from the ~~six months ended~~temporary suspension of mining activities at the Curragh mine following the safety incident in January 2020, the impact of the COVID-19 pandemic which resulted in the temporary idling of the U.S. Operations in April 2020 and May 2020, and the impact of import restrictions into China, which resulted in the suspension of sales from our U.S. Operations to China during the June 30, 2020 quarter. Lower sales volumes were exacerbated by lower average realized Met coal pricing of $97.3 per Mt sold, a reduction of $40.2 per Mt sold, compared to $137.5 per Mt sold as of June 30, 2019 ~~an increase of $6.5 million, as compared~~due to $15.3 million for the six months ended June 30, 2018. The increase is predominantly related to the amortization of the Stanwell non-market CSA liability for the six months ended June 30, 2019 of $17.1 million compared to $12.6 million for the period since the acquisition of Curragh on March 29, 2018 included in the six months ended June 30, 2018. Other revenues for our operating segments in the United States (Buchanan, Logansofter market conditions and ~~Greenbrier) increased $1.1 million on higher freight revenue.~~falling index prices.

Cost of Coal Revenues (Exclusive of Items Shown Separately Below)

Cost of coal revenues ~~are comprised~~comprise of 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 were $481.3 million for the ~~Company were~~six months ended June 30, 2020, a decrease of $52.4 million, or 9.8%, as compared to $533.7 million for the six months ended June 30, ~~2019,~~2019. The cost of coal revenues for our U.S. Operations decreased $83.7 million due to idling of the U.S. Operations in April and May 2020 in response to the COVID-19 pandemic and associated cost control measures implemented during the period. The decrease was partially offset by an increase in cost of ~~$109.1~~coal revenues for our Australian Operations of $29.2 million as compared to $424.6 million for the six months ended June 30, 2018. $94.5 million of the increase was attributable to a full six-month contribution in the 2019 period from Curragh compared to a partial period from acquisition on March 29, 2018 to June 30, 2018. The remaining $14.6 million increase was primarily driven by higher production costs at the Buchanan and Logan operating segments in the U.S., resulting from adverse mining conditions. In addition, Logan began production at three new coal ~~mines in the first half of~~ 2019.

~~Depreciation, Depletion and Amortization~~

~~Depreciation, depletion and amortization was $85.3~~ million for the six months ended June 30, 2019, an increase of $20.9 million, as compared to $64.4 million for the six months ended June 30, 2018. The increase was primarily a result of the addition of Curragh, which contributed $37.9 million in depreciation, depletion and amortization for the six months ended June 30, 2019 compared to $21.9 from the date of acquisition, March 29, 2018, to June 30, 2018.

Freight Expenses

~~The amount of freight~~Freight expenses ~~was~~totaled $89.4 million for the six months ended June 30, ~~2019, an increase~~2020, a decrease of ~~$44.2~~$6.5 million, as compared to ~~$45.2~~$82.9 million for the six months ended June 30, ~~2018.~~2019. The ~~increase is~~decrease was primarily ~~due to $79.2 million~~driven by lower sales volume of ~~Curragh related freight expenses~~8.0 MMt for the six months ~~ended~~to June 30, ~~2019~~2020, a reduction of 2.4 MMt, compared to ~~$38.2~~sales volumes of 10.4 MMt for the six months to June 30, 2019. The decrease was partially offset by higher demurrage costs in the Australian Operations as a result of longer vessel wait times at port due to the disruptions in production in the beginning of 2020 period.

Coronado Global Resources Inc. Form 10-Q June 30, 202031

Table of Contents

Stanwell Rebate

The Stanwell rebate was $57.4 million for the six months ended June 30, ~~2018 which included Curragh only for~~2020, a ~~partial period from acquisition date~~decrease of March 29, 2018 to June 30, 3018. The freight expense for our operating segments in the United States (Buchanan, Logan and Greenbrier), which predominantly sells its coal on an F.O.R basis, were $11.2 million for the six months ended June 30, 2019, an increase of $4.4$37.3 million, as compared to ~~$6.8 million for the six months ended June 30, 2018. The increase is primarily driven by new rail and port arrangements with certain customers that did not exist in 2018 period.~~

~~Stanwell Rebate~~

~~The Stanwell rebate was~~ $94.7 million for the six months ended June 30, ~~2019, an increase of $61.9~~2019. The decrease was largely driven by lower realized coal pricing and lower sales volumes in 2020.

Other Royalties

Other royalties were $43.5 million ~~as compared to $32.8 million for~~in the six months ended June 30, ~~2018. Curragh contribution~~2020, a decrease of $50.0 million, as compared to ~~the Company’s result during the six months ended June 30, 2018 was only for part of the period since March 29, 2018, being the date of acquisition.~~

~~Other Royalties~~

~~Other royalties were~~ $93.4 million in the six months ended June 30, ~~2019, an increase~~2019. Lower royalties were a product of ~~$10.4 million, as compared to $83.0 million in~~lower average realized export pricing and lower volumes for the ~~six months~~six-month ended June 30, ~~2018. Curragh contributed approximately $79.1 million in other royalty expense for the six months ended June 30, 2019~~2020 compared to ~~$38.2~~the same period in 2019.

Selling, General, and Administrative Expenses

Selling, general and administrative costs were $13.4 million for the six months ended June 30, ~~2019 which only included Curragh for part of the period from March 29, 2018, the date of acquisition. This increase was in part offset by~~2020, a decrease of $5.0 million, as compared to $18.3 million for the six months to June 30, 2019. The decrease is primarily driven by improved efficiencies and cost saving initiatives to reduce corporate spend in ~~other royalties attributable~~2020 compared to ~~our U.S. Operations which decreased $28.4 million. The CONSOL Energy contingent royalty increased $16.4~~the 2019 comparative period.

Interest Expense, net

Interest expense, net of $24.3 million for the six months ended June 30, ~~2018 compared to a~~2020, increased $7.1 million decrease for the six months ended June 30, 2019. This $23.5 million benefit is primarily due to average realized pricing for export sales forecast in the mark-to-market adjustment for June 30, 2018 being significantly higher than the December 31, 2017 forecast in the mark-to-market calculation. The benefit also reflects one less year remaining in the contingent royalty period.

~~Selling, General, and Administrative Expenses~~

~~Selling, general and administrative cost was $18.3 million for the six months ended June 30, 2019, a decrease of $34.0~~ million, as compared to $52.3 million for the six months ended June 30, 2018. The decrease was due to specific one-off, non-recurring costs incurred in relation to the Curragh acquisition during March 2018 relating to stamp duty of $33.0 million and various professional service and legal fees of $4.7 million.

~~Interest Expense~~

~~Interest expense, net of interest income, was~~ $17.3 million for the six months ended June 30, ~~2019, a decrease of $8.2 million, as compared to~~2019. The higher interest expense in 2020 was due to increase draw down of ~~$25.5~~debt in the last 12 months with $441.0 million of interest-bearing liabilities outstanding as at June 30, 2020. During the six months ended June 30, 2019 the Company had an average drawn debt of $109.0 million which was fully repaid and no balance remained outstanding as at June 30, 2019.

Income tax expense

Income tax benefit of $20.4 million for the six months ended June 30, ~~2018. Included within interest expense for the six months ended June 30, 2019 is $9.7~~2020, increased by $109.4 million, relating to the accretion of the deferred consideration liability recognized on the purchase of the SRA on August 14, 2018, and $4.7 million finance charges related to commitment and financial guarantee fees incurred in relation to the Syndicated Facility Agreement. This was partially offset by a decrease in interest expenseas compared to ~~the six months ended June 30, 2018, during which the Company incurred interest on~~ a ~~term loan established for the Curragh acquisition. This loan was repaid in full on October 24, 2018.~~

~~Loss on Debt Extinguishment~~

~~For the six months ended June 30, 2018, the Company recognized a loss on debt extinguishment~~tax expense of $3.9 million relating to the extinguishment of a term loan that occurred in conjunction with the Curragh acquisition on March 29, 2018. There was no debt extinguishment cost for the six months ended June 30, 2019.

~~Other,~~ ~~Net~~

~~Other, net income was $1.0~~$89.0 million for the six months ended June 30, ~~2019, a decrease~~2019. The Company had an income tax benefit of ~~$27.9 million, as compared to other, net expense $26.8~~$20.4 million for the six months ended June 30, ~~2018. This favorable variance is primarily comprised~~2020, comprising a discrete income tax expense of ~~non-recurring costs incurred for the six months ended June 30, 2018 relating to the $15.7~~$1.0 million and an income tax benefit of $21.4 million based on a loss ~~on the settlement~~before tax of a foreign exchange swaps recognized at the time of the Curragh acquisition and a fair value adjustment of $4.9 million on interest rate swaps that were in place during the six months ended June 30, 2018. The remaining difference mainly relates to foreign exchange gains or losses recognized in the translation of monetary items that were denominated in a currency different to the functional currency of operations of the Company.$143.5 million.

Supplemental Segment Financial Data

Three Months Ended June 30, ~~2019~~2020 Compared to Three Months Ended June 30, ~~2018~~2019

Australia

	For Three Months Ended June 30,
	($ in thousands)
	2020	2019	Change	%
Sales volume (MMt)	3.0	3.3	(0.3)	(9.7)%
Total revenues ($)	228,410	412,810	(184,400)	(44.7)%
Coal revenues ($)	219,950	403,703	(183,753)	(45.5)%
Average realized price per Mt sold ($/Mt)	73.2	121.3	(48.1)	(39.7)%
Met sales volume (MMt)	2.1	2.5	(0.4)	(14.9)%
Met coal revenues ($)	194,909	377,016	(182,107)	(48.3)%
Average realized Met price per Mt sold ($/Mt)	91.9	151.4	(59.5)	(39.3)%
Mining costs ($)	160,697	133,104	27,593	20.7%
Mining cost per Mt sold ($/Mt)	53.6	40.0	13.6	34.0%
Operating costs ($)	236,418	260,796	(24,378)	(9.3)%
Operating costs per Mt sold ($/Mt)	78.6	78.3	0.3	0.4%
Segment Adjusted EBITDA ($)	(6,804)	151,561	(158,365)	(104.5)%

~~Curragh~~

For Three Months Ended June 30,

($ in thousands)

2019

2018

Change

%

Sales Volume (MMt)

3.3

3.1

0.2

6.5
%
Total revenues ($)

412,810

386,756

26,054

6.7
%
Coal revenues ($)

403,703

374,534

29,169

7.8
%
Average realized price per Mt sold ($/Mt)

121.3

121.0

0.3

0.2
%
Met Sales Volume (MMt)

2.5

2.2

0.3

13.6
%
Met coal Revenues ($)

377,016

348,871

28,145

8.1
%
Average realized met price per Mt sold ($/Mt)

151.4

158.3

(6.9
)
(4.4
)%
Mining costs ($)

133,104

177,665

(44,561
)
(25.1
)%
Mining cost per Mt sold ($/Mt)

40.0

57.5

(17.5
)
(30.4
)%
Operating costs ($)

260,796

287,012

(26,216
)
(9.1
)%
Operating costs per Mt sold ($/Mt)

78.3

92.9

(14.6
)
(15.7
)%
Segment Adjusted EBITDA ($)

151,561

99,979

51,582

51.6
%

Coal revenues for ~~Curragh~~Australian Operations for the three months ended June 30, ~~2019~~2020, were ~~$403.7~~$220.0 million, ~~an increase~~a decrease of ~~$29.2~~$183.8 million or ~~7.8%~~45.5%, compared to ~~$374.5~~$403.7 million for the three months ended June 30, ~~2018.~~2019. This ~~increase~~decrease was largely driven ~~largely~~ by ~~an increase in~~lower average realized Met coal pricing as a result of difficult coal market conditions stemming from the ~~export met~~COVID-19 pandemic. The average realized Met price for the current quarter was $91.9 per Mt sold, which is $59.5 per Mt lower compared to the same quarter last year. Subdued pricing was exacerbated by lower Met coal sales volumes of ~~0.3Mt, partially offset~~2.1Mt for the three months ended June 30, 2020, 0.4Mt lower than the 2.5Mt sold during the three months ended June 30, 2019. Sales volumes during the quarter were a result of lower production caused by ~~a decrease in average realized met price per Mt sold~~wet weather and operational issues at the Curragh mine impacting productivity.

Coronado Global Resources Inc. Form 10-Q June 30, 202032

Table of ~~$7.0 per ton~~.Contents

Operating costs decreased by ~~$26.2~~$24.4 million, or ~~9.1%~~9.3%, for the three months ended June 30, ~~2019~~2020, compared to the three months ended June 30, ~~2018. This~~2019, slightly mitigating the impacts from lower revenue. The decrease was driven ~~primarily~~ by ~~mining costs which decreased by $44.6 million as a result of: (1)~~lower royalties and Stanwell rebate (due to lower realized coal pricing), lower freight expenses (due to lower sales volume) and the ~~three months to June 30, 2018 included the unwind~~benefit of a ~~$21.4 million fair value adjustment recognized to coal inventories on acquisition of Curragh, which was incurred as coal was sold during the period; and (2)~~ favorable average foreign exchange rate on translation of the ~~Curragh operations~~A$ denominated Australian Operations for the three months ended June 30, ~~2019~~2020 of A$/US$: ~~0.71 versus 0.76~~0.66 compared to 0.70 for the three months ended June 30, ~~2018. Lower~~2019. The decrease was partially offset by higher mining ~~costs and higher sales volumes caused the mining cost per Mt sold~~associated with mine sequencing impacts.

Adjusted EBITDA decreased by $158.4 million, or 104.5%, to a loss of $6.8 million for the three months ended June 30, 2019 to decrease by $17.5 per Mt sold. The decrease in mining costs were partially offset by higher freight costs of $5.5 million, driven by higher railings to port and higher export sales volumes, and higher Stanwell rebates which increased by $13.0 million due mainly to higher sales volumes.

~~Adjusted EBITDA increased by $51.6 million, or 51.6%,~~2020 as compared to $151.6 million for the three months ended June 30, 2019, ~~as compared to $100.0 million for the six months ended June 30, 2018,~~ due to lower coal revenues partly mitigated by lower operating ~~costs and higher coal revenues.~~

~~Buchanan~~costs.

United States

	For Three Months Ended June 30,						For Three Months Ended June 30,
	($ in thousands)						($ in thousands)
	2019	2018	Change		%		2020	2019	Change	%
Sales Volume (MMt)	1.2	1.2	—		—
Sales volume (MMt)							0.8	2.0	(1.2)	(59.1)%
Total revenues ($)	128,713	126,292	2,421		1.9	%	75,938	229,647	(153,709)	(66.9)%
Coal revenues ($)	128,664	126,292	2,372		1.9	%	75,256	226,987	(151,731)	(66.8)%
Average realized price per Mt sold ($/Mt)	103.0	104.9	(1.9	)	(1.8	)%	90.2	111.1	(20.9)	(18.8)%
Met Sales Volume (MMt)	1.2	1.1	0.1		9.1	%
Met coal Revenues ($)	125,837	122,771	3,066		2.5	%
Average realized met price per Mt sold ($/Mt)	104.8	107.3	(2.5	)	(2.3	)%
Met sales volume (MMt)							0.8	1.8	(1.0)	(53.7)%
Met coal revenues ($)							74,839	211,656	(136,817)	(64.6)%
Average realized Met price per Mt sold ($/Mt)							90.8	118.9	(28.1)	(23.6)%
Mining costs ($)	64,605	66,469	(1,864	)	(2.8	)%	56,921	131,033	(74,112)	(56.6)%
Mining cost per Mt sold ($/Mt)	51.7	55.2	(3.5	)	(6.3	)%	73.5	64.1	9.4	14.6%
Operating costs ($)	68,472	91,049	(22,577	)	(24.8	)%	72,489	150,296	(77,807)	(51.8)%
Operating costs per Mt sold ($/Mt)	54.8	75.7	(20.9	)	(27.6	)%	86.8	73.6	13.2	18.1%
Segment Adjusted EBITDA ($)	60,289	35,257	25,032		71.0	%	3,490	79,642	(76,152)	(95.6)%

Coal ~~revenue increased~~revenues decreased by ~~$2.4~~$151.7 million, or ~~1.9%~~66.8%, to ~~$128.7~~$75.3 million for the three months ended June 30, ~~2019~~2020 as compared to ~~$126.3~~$227.0 million for the three months ended June 30, ~~2018.~~2019. This ~~increase~~decrease was driven by ~~higher~~lower average realized Met coal pricing of $90.8 per Mt sold for the three months ended June 30, 2020, which was a result of softer market conditions and a decline in the benchmark coking coal market, and by lower sales volumes of ~~0.1~~0.8 MMt ~~or 9.1%. This was partially offset by~~as compared to 2.0 MMt for June 30, 2019 quarter. Lower sales volumes were a ~~lower average realized price due~~result of softer market conditions resulting from the impact of the COVID-19 pandemic and import restrictions into China, which resulted in the suspension of sales to ~~import tariffs on U.S. coal imposed by~~ China ~~during~~for the quarter.

Operating costs decreased by ~~$22.6~~$77.8 million, or ~~24.8%~~51.8%, for the three months ended June 30, ~~2019~~2020 compared to the three months ended June 30, 2018. This decrease was primarily driven by the CONSOL Energy contingent royalty of $19.4 million related to the mark-to-market adjustment and one less year remaining in the contingent payment period. Prior year reflects a significant adjustment for higher forecast export pricing related to the mark-to-market calculation. In addition, royalty expense was lower by $1.4 million related to a higher percentage of owned production (no royalty) mined in the second quarter 2019 compared to second quarter 2018. Additionally, mining costs decreased by $1.9 million. The decrease in operating costs ~~resulted in a corresponding decrease~~ of operating cost per ton of $20.9/t for the three months ended June 30, 2019 compared to the three months ended June 30, 2018, as there was no significant change to sales volumes when comparing the two periods.

For the three months ended June 30, 2019 adjusted EBITDA improved $25.0 million, or 71%, compared to the comparative quarter. The improvement was primarily generated by the favorable mark-to-market adjustments related to the CONSOL Energy contingent royalty and lower royalties related to mining a higher percentage of owned coal versus leased coal. In addition, higher Met sales and lower mine costs contributed to the improved performance. This was partially offset by lower average realized pricing related to import tariffs on U.S. coal imposed by China.

~~Logan~~

For Three Months Ended June 30,

($ in thousands)

2019

2018

Change

%

Sales Volume (MMt)

0.7

0.7

—

—

Total revenues ($)

81,610

59,230

22,380

37.8
%
Coal revenues ($)

80,111

59,230

20,881

35.3
%
Average realized price per Mt sold ($/Mt)

119.7

84.6

35.1

41.5
%
Met Sales Volume (MMt)

0.5

0.4

0.1

25.0
%
Met coal Revenues ($)

68,053

47,443

20,610

43.4
%
Average realized met price per Mt sold ($/Mt)

146.1

106.8

39.3

36.8
%
Mining costs ($)

53,714

44,840

8,874

19.8
%
Mining cost per Mt sold ($/Mt)

80.3

64.1

16.2

25.3
%
Operating costs ($)

63,689

50,185

13,504

26.9
%
Operating costs per Mt sold ($/Mt)

95.2

71.7

23.5

32.8
%
Segment Adjusted EBITDA ($)

18,126

10,710

7,416

69.2
%

~~Coal revenues increased by $20.9 million, or 35.3%, to $80.1~~$150.3 million for the three months ended June 30, ~~2019~~2019. The decrease was due to lower mining costs of $74.1 million, or 56.6% as the U.S. Operations were idled in April and May of 2020 in response to the COVID-19 pandemic. The increase in mining cost per Mt sold was primarily driven by lower sales volumes of 1.2 MMt driving up mining costs by $9.4 per Mt sold compared to ~~$59.2 million for~~the same period in 2019.

For the three months ended June 30, ~~2018. This improvement was driven~~2020 Adjusted EBITDA decreased by ~~increased Met coal sales volume and a higher average realized price for high volatile coal, due~~$76.2 million, or 95.6%, compared to ~~committed sales contracts and to improved sales mix.~~

~~Total operating costs increased $13.5 million, to $63.7 million for~~ the ~~three months ended~~ June 30, 2019 ~~compared to~~quarter. This decrease was primarily driven by softer market conditions resulting in a lower average realized Met coal price per Mt sold and lower sales volumes. This resulted in a decrease in Total revenues of $153.7 million which was partially offset by a decrease in operating costs of $50.2 million for the three months ended June 30, 2018. The increase was primarily due to higher cost production at existing operations, driven by mining conditions, and production set-up costs related to three additional mines coming online in 2019. Additionally, freight expense increased due to new sales contracts, which includes the cost of rail and port services to certain customers. The increase in operating costs resulted in a corresponding increase of operating cost per ton of $19.3/t for the three months ended June 30, 2019 compared to the three months ended June 30, 2018, as there was no significant change to sales volumes when comparing the two periods.$77.8 million.

Adjusted EBITDA for the three months ended June 30, 2019 increased $7.4 million, or 69.2%, to $18.1 million, compared to $10.7 million for the three months ended June 30, 2018. Improved performance relates to increased demand and higher prices for high volatile coal on committed contracts. Partially offsetting this is higher cost production and a change in the production mix, with the addition of the three new operations.

~~Greenbrier~~

For Three Months Ended June 30,

($ in thousands)

2019

2018

Change

%

Sales Volume (MMt)

0.1

0.2

(0.1
)
(50.0
)%
Total revenues ($)

19,324

18,292

1,032

5.6
%
Coal revenues ($)

18,212

17,454

758

4.3
%
Average realized price per Mt sold ($/Mt)

145.6

99.9

45.7

45.7
%
Met Sales Volume (MMt)

0.1

0.2

(0.1
)
(50.0
)%
Met coal Revenues ($)

17,766

17,427

339

1.9
%
Average realized met price per Mt sold ($/Mt)

155.7

100.0

55.7

55.7
%
Mining costs ($)

12,714

16,335

(3,621
)
(22.2
)%
Mining cost per Mt sold ($/Mt)

101.6

93.5

8.1

8.7
%
Operating costs ($)

18,135

18,482

(347
)
(1.9
)%
Operating costs per Mt sold ($/Mt)

145.0

105.8

39.2

37.1
%
Segment Adjusted EBITDA ($)

1,227

(188
)
1,415

(752.7
)%

Coal revenues increased by $0.8 million, or 4.3%, to $18.2 million for the three months ended June 30, 2019 as compared to $17.5 million for the three months ended June 30, 2018. This increase was driven by higher average realized pricing, partly offset by lower sales volumes. The lower sales volume is primarily related to the exhaustion of the Pollock Knob reserve, lack of purchased coal available for blending, and lower production volume due to adverse geological mining conditions and equipment downtime.

Total operating costs at Greenbrier for the three months ended June 30, 2019, were relatively in line with total operating costs for the three months ended June 30, 2018. However, operating costs per ton increased $39.2 per ton due to lower sales volumes and additional freight expenses driven by new rail and port arrangements with certain customers that did not exist in the comparative period.

Adjusted EBITDA improved $1.4 million, resulting in $1.2 million of EBITDA for the three months ended June 30, 2019, compared to EBITDA of ($0.2) million for the three months ended June 30, 2018. Improved performance was primarily related to increased demand for mid vol coal and higher average realized pricing.

Corporate and Other Adjusted EBITDA

The following table presents a summary of the components of Corporate and Other Adjusted EBITDA:

	For Three Months Ended June 30,
	($ in thousands)
	2020	2019	Change	%
Selling, general, and administrative expenses	7,159	9,242	(2,083)	(22.5)%
Other, net	4	(330)	334	101.2%
Total Corporate and Other Adjusted EBITDA	7,163	8,912	(1,749)	(19.6)%

For Three Months Ended June 30,

($ in thousands)

2019

2018

$
Change

%
Change

Salaries

3,433

3,165

268

8.5
%
Professional and consultancy fees

3,587

3,601

(14
)
(0.4
)%
Office and operational fees

559

909

(350
)
(38.5
)%
Dues, registration fees and licenses

71

87

(16
)
(18.4
)%
Gain on foreign exchange swap

—

—

—

—

Other

1,262

(1,192
)
2,454

(205.9
)%
Total Corporate and Other Adjusted EBITDA

8,912

6,570

2,342

35.6
%

~~Adjusted EBITDA loss of~~Corporate and other costs decreased $1.8 million to $7.2 million for the three months ended June 30, 2020, as compared to $8.9 million for the three months ended June 30, ~~2019 increased $2.3 million~~2019. The decrease is primarily driven by improved efficiencies and cost saving initiatives to reduce corporate spend in 2020 compared to ~~$6.6 million for~~ the ~~three months ended~~2019 comparative period.

Coronado Global Resources Inc. Form 10-Q June 30, ~~2018. The 2018 period included fair value mark-to-market gains with respect to interest rate swaps~~202033

Table of ~~$3.4 million.~~Contents

Mining and operating costs for the Three Months Ended June 30, 2020 compared to Three Months Ended June 30, 2019 ~~Compared to Three Months Ended June 30, 2018~~

A reconciliation of segment costs and expenses, segment operating costs, and segment mining costs is shown below:

	For Three Months Ended June 30, 2020
	($ in thousands)
	Australia	United States	Other / Corporate	Total Consolidated
Total costs and expenses	256,730	93,528	7,354	357,612
Less: Selling, general and administrative expense	—	—	(7,158)	(7,158)
Less: Depreciation, depletion and amortization	(20,312)	(21,039)	(196)	(41,547)
Total operating costs	236,418	72,489	—	308,907
Less: Other royalties	(17,547)	(1,610)	—	(19,157)
Less: Stanwell rebate	(24,787)	—	—	(24,787)
Less: Freight expenses	(32,882)	(7,622)	—	(40,504)
Less: Other non-mining costs	(505)	(6,336)	—	(6,841)
Total mining costs	160,697	56,921	—	217,618
Sales Volume excluding non-produced coal (MMt)	3.0	0.8	—	3.8
Mining cost per Mt sold ($)	53.6	73.5	—	57.7

	For Three Months Ended June 30, 2019
	($ in thousands)
	Australia	United States	Other / Corporate	Total Consolidated
Total costs and expenses	283,948	172,844	9,050	465,842
Less: Selling, general and administrative expense	(282)	—	(8,960)	(9,242)
Less: Depreciation, depletion and amortization	(22,870)	(22,548)	(90)	(45,508)
Total operating costs	260,796	150,296	—	411,092
Less: Other royalties	(39,209)	(9,864)	—	(49,073)
Less: Stanwell rebate	(45,847)	—	—	(45,847)
Less: Freight expenses	(42,636)	(9,399)	—	(52,035)
Total mining costs	133,104	131,033	—	264,137
Sales Volume excluding non-produced coal (MMt)	3.3	2.0	—	5.4
Mining cost per Mt sold ($)	40.0	64.1	—	49.2

For Three Months Ended June 30, 2019

($ in thousands)

Curragh

Buchanan

Logan

Greenbrier

Other /
Corporate

Total
Consolidated

Total costs and expenses

283,948

80,212

70,626

22,006

9,050

465,842

Less: Selling, general and administrative expense

(282
)
—

—

—

(8,960
)
(9,242
)
Less: Depreciation, depletion and amortization

(22,870
)
(11,740
)
(6,937
)
(3,871
)
(90
)
(45,508
)
Total operating costs

260,796

68,472

63,689

18,135

—

411,092

Less: Other royalties

(39,209
)
(3,506
)
(5,302
)
(1,056
)
—

(49,073
)
Less: Stanwell rebate

(45,847
)
—

—

—

—

(45,847
)
Less: Freight expenses

(42,636
)
(361
)
(4,673
)
(4,365
)
—

(52,035
)
Total mining costs

133,104

64,605

53,714

12,714

—

264,137

Average realized Met coal revenue for the Three Months Ended June 30, 2020 compared to Three Months Ended June 30, 2019

For Three Months Ended June 30, 2018

($ in thousands)

Curragh

Buchanan

Logan

Greenbrier

Other /
Corporate

Total
Consolidated

Total costs and expenses

309,469

101,559

56,874

21,859

8,074

497,835

Less: Selling, general and administrative expense

(439
)
—

—

—

(8,074
)
(8,513
)
Less: Depreciation, depletion and amortization

(22,018
)
(10,510
)
(6,689
)
(3,377
)
—

(42,594
)
Total operating costs

287,012

91,049

50,185

18,482

—

446,728

Less: Other royalties

(38,241
)
(24,279
)
(3,869
)
(1,306
)
—

(67,695
)
Less: Stanwell rebate

(32,812
)
—

—

—

—

(32,812
)
Less: Freight expenses

(38,294
)
(301
)
(1,476
)
(841
)
—

(40,912
)
Total mining costs

177,665

66,469

44,840

16,335

—

305,309

A reconciliation of the Company’s average realized Met coal revenue is shown below:

	For Three Months Ended June 30,
	($ in thousands)
	2020	2019	Change	%
Met sales volume (MMt)	2.9	4.3	(1.4)	(32.6)%
Met coal revenues ($)	269,748	588,672	(318,924)	(54.2)%
Average realized Met price per Mt sold ($/Mt)	91.6	137.8	(46.2)	(33.5)%

Coronado Global Resources Inc. Form 10-Q June 30, 202034

Table of Contents

Six Months Ended June 30, ~~2019~~2020 Compared to Six Months Ended June 30, ~~2018~~2019

Australia

	For Six Months Ended June 30,
	($ in thousands)
	2020	2019	Change	%
Sales volume (MMt)	5.6	6.4	(0.8)	(12.6)%
Total revenues ($)	473,555	794,182	(320,627)	(40.4)%
Coal revenues ($)	458,481	775,942	(317,461)	(40.9)%
Average realized price per Mt sold ($/Mt)	82.1	121.5	(39.4)	(32.4)%
Met sales volume (MMt)	3.9	4.8	(0.9)	(18.6)%
Met coal revenues ($)	407,831	727,964	(320,133)	(44.0)%
Average realized Met price per Mt sold ($/Mt)	104.8	152.3	(47.5)	(31.2)%
Mining costs ($)	298,841	272,201	26,640	9.8%
Mining cost per Mt sold ($/Mt)	53.9	42.6	11.3	26.5%
Operating costs ($)	466,606	522,169	(55,563)	(10.6)%
Operating costs per Mt sold ($/Mt)	83.6	81.8	1.8	2.2%
Segment Adjusted EBITDA ($)	6,260	271,709	(265,449)	(97.7)%

~~Curragh~~

~~The unaudited pro forma supplemental financial data of Curragh~~Coal revenues for Australian Operations for the six months ended June 30, ~~2018, presented in the table below, has been derived from the unaudited consolidated pro forma statements~~2020, were $458.5 million, a decrease of operations included in this Form 10-Q and gives effect to each of the Curragh acquisition as if it had occurred on January 1, 2018. The commentary below compares Curragh’s result for the six months ended June 30, 2019 to the pro forma results for the six months ended June 30, 2018 to provide more meaningful analysis of the segment performance.

For Six Months Ended June 30,

($ in thousands)

2019

Pro
forma
2018

Change

%

Sales Volume (MMt)

6.4

5.8

0.6

10.3
%
Total revenues ($)

794,182

703,879

90,303

12.8
%
Coal revenues ($)

775,942

688,028

87,914

12.8
%
Average realized price per Mt sold ($/Mt)

121.5

118.8

2.7

2.3
%
Met Sales Volume (MMt)

4.8

4.1

0.7

17.1
%
Met coal Revenues ($)

727,964

638,811

89,153

14.0
%
Average realized met price per Mt sold ($/Mt)

152.3

154.7

(2.4
)
(1.5
)%
Mining costs ($)

272,201

323,171

(50,970
)
(15.8
)%
Mining cost per Mt sold ($/Mt)

42.6

55.8

(13.2
)
(23.6
)%
Operating costs ($)

522,169

541,710

(19,541
)
(3.6
)%
Operating costs per Mt sold ($/Mt)

81.8

93.6

(11.8
)
(12.6
)%
Segment Adjusted EBITDA ($)

271,709

164,764

106,945

64.9
%

~~A reconciliation of unaudited pro forma financial data is shown below:~~

Historical Curragh
in US GAAP

Post-Acquisition

For six months
Ended
June 30,

($ in thousands)

January 1, 2018 -
March 29, 2018

March 30, 2018 -
June 30, 2018

Total Pro forma
2018

Sales Volume (MMt)

2.7

3.1

5.8

Total revenues ($)

316,500

387,379

703,879

Coal revenues ($)

313,494

374,534

688,028

Average realized price per Mt sold ($/Mt)

114.3

121.2

118.8

Met Sales Volume (MMt)

1.9

2.2

4.1

Met coal Revenues ($)

289,325

349,486

638,811

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

150.6

158.3

154.7

Mining costs ($)

145,506

177,699

323,205

Mining cost per Mt sold ($/Mt)

53.1

57.5

55.8

Operating costs ($)

254,698

286,913

541,611

Operating costs per Mt sold ($/Mt)

94.3

92.9

93.6

Segment Adjusted EBITDA ($)

64,785

99,979

164,764

($ in thousands)

Historical Curragh
in US GAAP

Post-Acquisition

For six months
Ended
June 30,

Curragh Segment Pro forma
Reconciliation to Adjusted EBITDA:

January 1, 2018 -
March 29, 2018

March 30, 2018 -
June 30, 2018

Total Pro forma
2018

Net Income (loss)

(308,947
)
54,217

(254,730
)
Add: Income tax expense (benefit)

17,772

23,867

41,639

Add: Interest expense (net of income)

341,703

(124
)
341,579

Add: Depreciation, depletion and amortization

14,257

22,019

36,276

Adjusted EBITDA

64,785

99,979

164,764

~~Pro forma coal revenues increased by $87.9~~$317.5 million or ~~12.8%~~40.9%, compared to $775.9 million for the six months ended June 30, ~~2019 as~~2019. This decrease was largely driven by a decrease in average realized Met coal price by $47.5 per Mt sold and a decrease in sales volumes of 0.8Mt due to reduced production stemming from the temporary suspension of operations at the Curragh Mine following January’s safety incident, adverse weather impacts, poor rail performance and scheduling issues with the provider and the impact of COVID-19 pandemic affecting customer demand.

Operating costs decreased by $55.6 million, or 10.6%, for the six months ended June 30, 2020, compared to ~~$688.0~~the six months ended June 30, 2019, partly mitigating the impacts from lower revenue. The decrease was driven by lower royalties and Stanwell rebate (mainly due to lower realized coal pricing) lower freight expenses resulting from a decrease in sales volumes and the benefit of a favorable average foreign exchange rate on translation of the A$ denominated Australian Operations for the six months ended June 30, 2020 of A$/US$: 0.66 compared to 0.71 for the six months ended June 30, 2020. Mining cost per Mt sold of $53.9 per ton was 26.5% higher compared to the six months ended June 30, 2019, impacted by lower sales volumes due to lower production as a result of suspended operations following the safety incident in January 2020 at Curragh, the lag effects of that incident, wet weather and operational issues impacting mine productivity.

Adjusted EBITDA decreased by $265.4 million, or 97.7%, to $6.3 million for the six months ended June 30, ~~2018. This increase was driven by higher Met coal sales volumes which increased 0.7 MMt or 17.1%, to 4.8MMt for the six months ended June 30, 2019~~2020 as compared to ~~4.1 MMt for the six months ended June 30, 2018.~~

~~Pro forma operating costs decreased by $19.5 million, or 3.6%, to $522.2~~$271.7 million for the six months ended June 30, 2019, ~~compared~~due to ~~$541.7 million in the six months ended June 30, 2018 primarily driven by a decrease in mining costs per~~

Mt sold of $42.6 per ton as compared to $55.8 per ton for the six months ended June 30, 2018. Pro forma mining cost per Mt sold was higher for the six months ended June 30, 2018 due to: (1) the unwind of a $21.4 million fair value adjustment recognized to coal inventories on acquisition of Curragh that was unwound during the three months ended June 30, 2018 as the coal was sold and (2) unplanned outages at the wash plant. The decrease in pro forma operating costs were partially offset by higher Stanwell rebates which increased by $9.0 million due mainly to higher sales volumes.

Adjusted EBITDA for the six months ended June 30, 2019 was $271.7 million, an improvement of $106.9 million (or 64.9%) over the pro forma Adjusted EBITDA for the six months ended June 30, 2018. Lower operating costs and higherlower coal revenues ~~were two key factors that contributed to the higher Adjusted EBITDA.~~partly mitigated by lower operating costs.

United States

	For Six Months Ended June 30,
	($ in thousands)
	2020	2019	Change	%
Sales volume (MMt)	2.8	4.0	(1.2)	(31.0)%
Total revenues ($)	240,111	440,153	(200,042)	(45.4)%
Coal revenues ($)	236,336	436,545	(200,209)	(45.9)%
Average realized price per Mt sold ($/Mt)	85.6	109.2	(23.6)	(21.6)%
Met sales volume (MMt)	2.7	3.5	(0.8)	(22.3)%
Met coal revenues ($)	234,198	407,535	(173,337)	(42.5)%
Average realized Met price per Mt sold ($/Mt)	86.6	117.0	(30.4)	(26.0)%
Mining costs ($)	173,546	261,495	(87,949)	(33.6)%
Mining cost per Mt sold ($/Mt)	64.3	65.4	(1.1)	(1.7)%
Operating costs ($)	198,495	288,985	(90,490)	(31.3)%
Operating costs per Mt sold ($/Mt)	71.9	72.3	(0.4)	(0.5)%
Segment Adjusted EBITDA ($)	41,740	151,611	(109,871)	(72.5)%

~~Buchanan~~

For Six Months Ended June 30,

($ in thousands)

2019

2018

Change

%

Sales Volume (MMt)

2.4

2.4

—

—

Total revenues ($)

251,437

260,501

(9,064
)
(3.5
)%
Coal revenues ($)

251,353

260,462

(9,109
)
(3.5
)%
Average realized price per Mt sold ($/Mt)

103.9

109.3

(5.4
)
(5.0
)%
Met Sales Volume (MMt)

2.3

2.3

—

—

Met coal Revenues ($)

245,047

253,335

(8,288
)
(3.3
)%
Average realized met price per Mt sold ($/Mt)

106.0

111.8

(5.8
)
(5.2
)%
Mining costs ($)

130,286

123,877

6,409

5.2
%
Mining cost per Mt sold ($/Mt)

53.8

52.0

1.8

3.5
%
Operating costs ($)

135,095

160,814

(25,719
)
(16.0
)%
Operating costs per Mt sold ($/Mt)

55.8

67.5

(11.7
)
(17.3
)%
Segment Adjusted EBITDA ($)

116,401

99,701

16,700

16.8
%

Coal revenues decreased by ~~$9.1~~$200.2 million, or ~~3.5%~~45.9%, to ~~$251.4~~$236.3 million for the six months ended June 30, ~~2019~~2020 as compared to ~~$260.5~~$436.5 million for the six months ended June 30, ~~2018.~~2019. This decrease was driven by lower average realized ~~price due~~Met coal pricing of $86.6 per Mt sold for the six months ended June 30, 2020, compared to $117.0 per Mt sold for the same period in

Coronado Global Resources Inc. Form 10-Q June 30, 202035

Table of Contents

2019, which was a result of softer market conditions and a decline in the benchmark coking coal market, and by lower sales volumes of 2.8 MMt as compared to 4.0 MMt in 2019. Lower sales volumes were a result of softer market conditions and import ~~tariffs on U.S. coal imposed~~restrictions into China, which resulted in the suspension of sales into China in the second quarter of 2020.

Operating costs decreased by ~~China and changes~~$90.5 million, or 31.3%, for the six months ended June 30, 2020 compared to ~~the sales mix, partially offset by stronger pricing on domestic Met sales.~~

~~Total~~ operating costs ~~improved $25.7 million to $135.1~~of $289.0 million for the six months ended June 30, ~~2019,~~2019. The decrease was due to lower mining costs of $173.5 million, a reduction of 33.6% compared to ~~operating costs~~the same period in 2019, as the U.S. Operations were idled in April and May of ~~$160.8 million~~2020 in response to the COVID-19 pandemic combined with stringent cost control measures implemented in the first quarter of 2020. The cost control measures resulted in slightly lower mining cost of $64.3 per Mt sold for the six months ended June 30, ~~2018. The improvement was primarily related~~2020, compared to the mark-to-market adjustment for the CONSOL Energy contingent royalty and mining a greater percentage of owned coal versus leased coal. This improvement was partially offset by increased mining costs of $6.4 million due to adverse mining conditions. The overall improvement in operating costs resulted in a corresponding improvement in operating costs$65.4 per ~~ton of $11.7/t~~Mt sold for the six months ended June ~~30, 2019, compared to the six months ended June 30, 2018, as there was no significant change to~~30,2019 despite a decline in sales volumes ~~when comparing the two periods.~~of 1.2 MMt.

Adjusted EBITDA for the six months ended June 30, 2019 was $116.4 million, an improvement of $16.7 million (or 16.8%) over the six months ended June 20, 2018. Lower royalties related to the CONSOL Energy contingent royalty and mining a greater percentage of owned coal versus lease coal were partially offset by higher mine costs resulting from adverse mining conditions.

~~Logan~~

For Six Months Ended June 30,

($ in thousands)

2019

2018

Change

%

Sales Volume (MMt)

1.3

1.3

—

—

Total revenues ($)

155,919

112,655

41,264

36.6
%
Coal revenues ($)

153,629

112,655

40,974

36.4
%
Average realized price per Mt sold ($/Mt)

114.4

84.8

29.6

34.9
%
Met Sales Volume (MMt)

0.9

0.9

—

—

Met coal Revenues ($)

131,421

93,201

38,220

41.0
%
Average realized met price per Mt sold ($/Mt)

139.0

103.4

35.6

34.5
%
Mining costs ($)

104,765

89,175

15,590

17.5
%
Mining cost per Mt sold ($/Mt)

78.0

67.1

10.9

16.2
%
Operating costs ($)

120,925

99,444

21,481

21.6
%
Operating costs per Mt sold ($/Mt)

90.0

74.8

15.2

20.3
%
Segment Adjusted EBITDA ($)

35,291

15,501

19,790

127.7
%

Coal revenue increased by $41.0 million, or 36.4%, to $153.6 million for the six months ended June 30, 2019 as compared to $112.7 million for the six months ended June 30, 2018. This increase was driven by a higher average realized price for high volatile coal due to higher committed contract prices, as well as improvements to the sales mix.

For the six months ended June 30, ~~2019 total operating costs at Logan increased $21.5~~2020 Adjusted EBITDA decreased by $109.9 million, or ~~21.6%~~72.5%, ~~to $120.9 million~~ compared to ~~$99.4 million for~~ the ~~six months ended June 30, 2018. Mining costs increased $15.6 million,~~comparative half year. This decrease was primarily ~~due to higher cost production at existing operations,~~ driven by ~~mining~~softer market conditions resulting in a lower average realized Met coal price per Mt sold and ~~production costs related to three additional mines coming online~~lower sales volumes. This resulted in ~~2019. Freight expense increased $2.9~~a decrease in coal revenues of $200.2 million ~~driven~~which was partially offset by ~~new rail and port arrangements with certain customers that did not exist in the comparative period. Other royalties increased $3.0 million due to higher revenues. The increase~~a decrease in operating costs ~~resulted in a corresponding increase~~ of operating cost per ton of $15.2/t for the six months ended June 30, 2019, compared to the six months ended June 30, 2018, as there was no significant change to sales volumes when comparing the two periods.$90.5 million.

Adjusted EBITDA improved by $19.8 million to $35.3 million for the six months ended June 30, 2019, compared to $15.5 million for the six months ended June 30, 2018, a 127.7% increase, as the $41.0 million increase in coal revenues more than offset the $21.5 million of increased operating costs.

~~Greenbrier~~

For Six Months Ended June 30,

($ in thousands)

2019

2018

Change

%

Sales Volume (MMt)

0.2

0.4

(0.2
)
(50.0
)%
Total revenues ($)

32,797

38,188

(5,391
)
(14.1
)%
Coal revenues ($)

31,563

36,695

(5,132
)
(14.0
)%
Average realized price per Mt sold ($/Mt)

133.6

101.4

32.2

31.8
%
Met Sales Volume (MMt)

0.2

0.3

(0.1
)
(33.3
)%
Met coal Revenues ($)

31,067

35,982

(4,915
)
(13.7
)%
Average realized met price per Mt sold ($/Mt)

138.3

104.1

34.2

32.9
%
Mining costs ($)

26,445

33,905

(7,460
)
(22.0
)%
Mining cost per Mt sold ($/Mt)

111.9

93.7

18.2

19.4
%
Operating costs ($)

32,965

38,305

(5,340
)
(13.9
)%
Operating costs per Mt sold ($/Mt)

139.5

105.9

33.6

31.7
%
Segment Adjusted EBITDA ($)

(81
)
983

(1,064
)
(108.2
)%

Coal revenue decreased by $5.1 million, or 14.0%, to $31.6 million for the six months ended June 30, 2019, as compared to $36.7 million for the six months ended June 30, 2018. This decrease was driven by lower sales volumes, partially offset by higher average realized price. The lower sales volume is primarily related to the exhaustion of the Pollock Knob reserve, lack of purchased coal available for blending, and lower production volume due to adverse geological mining conditions and equipment downtime.

For the six months ended June 30, 2019, total operating costs improved by $5.3 million to $33.0 million, compared to costs of $38.3 million for the six months ended June 30, 2018. The improvement was primarily due to lower sales volumes, partially offset by an increase in freight expense driven by new rail and port arrangements with certain customers that did not exist in the comparative period. Operating cost per ton increased by $31.7 to $139.5, of which approximately $18/t was due the increased freight expenses. Additionally, lower production volumes related to the exhaustion of the Pollock Knob reserve and to adverse geological mining conditions and equipment downtime, impacted average cost per ton.

Adjusted EBITDA declined $1.1 million on lower sales volume to ($0.1) million for the six months ended June 30, 2019, compared to adjusted EBITDA of $1.0 million for the six months ended June 30, 2018.

Corporate and Other Adjusted EBITDA

The following table presents a summary of the components of Corporate and Other Adjusted EBITDA:

	For Six Months Ended June 30,
	($ in thousands)
	2020	2019	Change	%
Selling, general, and administrative expenses	13,353	17,979	(4,626)	(25.7)%
Other, net	(297)	(14)	(283)	2,021.4%
Total Corporate and Other Adjusted EBITDA	13,056	17,965	(4,909)	(27.3)%

For Six Months Ended June 30,

($ in thousands)

2019

2018

$
Change

%
Change

Salaries

6,344

4,695

1,649

35.1
%
Professional and consultancy fees

7,362

10,182

(2,820
)
(27.7
)%
Office and operational fees

1,045

1,191

(146
)
(12.3
)%
Dues, registration fees and licenses

107

33,103

(32,996
)
(99.7
)%
Loss on foreign exchange swap

—

15,695

(15,695
)
(100.0
)%
Other

3,107

9,470

(6,363
)
(67.2
)%
Total Corporate and Other Adjusted EBITDA

17,965

74,336

(56,371
)
(75.8
)%

~~Adjusted EBITDA loss of $74.3~~Corporate and other costs decreased $4.9 million to $13.1 million for the six months ended June 30, ~~2018 includes one-time costs~~2020, as compared to $18.0 million for the six months ended June 30, 2019. The decrease is primarily driven by improved efficiencies and cost saving initiatives to reduce corporate spend in ~~relation to professional and consultancy fees and stamp duty of $33.0 million and a loss on foreign exchange of $15.7 million incurred in relation~~2020 compared to the ~~Curragh acquisition, the Reorganization Transaction and the Australian IPO.~~2019 comparative period.

Coronado Global Resources Inc. Form 10-Q June 30, 202036

Table of Contents

Mining and operating costs for the Six Months Ended June 30, 2020 compared to Six Months Ended June 30, 2019 ~~Compared to Six Months Ended June 30, 2018~~

A reconciliation of segment costs and expenses, segment operating costs, and segment mining costs is shown below:

	For Six Months Ended June 30, 2020
	($ in thousands)
	Australia	United States	Other / Corporate	Total Consolidated
Total costs and expenses	506,686	244,891	13,726	765,303
Less: Selling, general and administrative expense	—	—	(13,353)	(13,353)
Less: Depreciation, depletion and amortization	(40,080)	(46,396)	(373)	(86,849)
Total operating costs	466,606	198,495	—	665,101
Less: Other royalties	(37,508)	(5,947)	—	(43,455)
Less: Stanwell rebate	(57,415)	—	—	(57,415)
Less: Freight expenses	(70,220)	(12,666)	—	(82,886)
Less: Other non-mining costs	(2,622)	(6,336)	—	(8,958)
Total mining costs	298,841	173,546	—	472,387
Sales Volume excluding non-produced coal (MMt)	5.5	2.7	—	8.2
Mining cost per Mt sold ($)	53.9	64.3	—	57.3

	For Six Months Ended June 30, 2019
	($ in thousands)
	Australia	United States	Other / Corporate	Total Consolidated
Total costs and expenses	564,658	331,930	18,156	914,744
Less: Selling, general and administrative expense	(332)	—	(17,979)	(18,311)
Less: Depreciation, depletion and amortization	(42,157)	(42,945)	(177)	(85,279)
Total operating costs	522,169	288,985	—	811,154
Less: Other royalties	(77,100)	(16,322)	—	(93,422)
Less: Stanwell rebate	(94,674)	—	—	(94,674)
Less: Freight expenses	(78,194)	(11,168)	—	(89,362)
Less: Other non-mining costs	—	—	—	—
Total mining costs	272,201	261,495	—	533,696
Sales Volume excluding non-produced coal (MMt)	6.4	4.0	—	10.4
Mining cost per Mt sold ($)	42.6	65.4	—	51.4

Average realized Met price for the Six Months Ended June 30, 2020 compared to Six Months Ended June 30, 2019

For Six Months Ended June 30, 2019

($ in thousands)

Curragh

Buchanan

Logan

Greenbrier

Other /
Corporate

Total
Consolidated

Total costs and expenses

564,658

157,770

134,457

39,703

18,156

914,744

Less: Selling, general and administrative expense

(332
)
—

—

—

(17,979
)
(18,311
)
Less: Depreciation, depletion and amortization

(42,157
)
(22,675
)
(13,532
)
(6,738
)
(177
)
(85,279
)
Total operating costs

522,169

135,095

120,925

32,965

—

811,154

Less: Other royalties

(77,100
)
(4,284
)
(9,996
)
(2,042
)
—

(93,422
)
Less: Stanwell rebate

(94,674
)
—

—

—

—

(94,674
)
Less: Freight expenses

(78,194
)
(526
)
(6,164
)
(4,478
)
—

(89,362
)
Total mining costs

272,201

130,285

104,765

26,445

—

533,696

A reconciliation of the Company’s average realized Met coal revenue is shown below:

For Six Months Ended June 30, 2018

($ in thousands)

Curragh

Buchanan

Logan

Greenbrier

Other /
Corporate

Total
Consolidated

Total costs and expenses

309,469

183,678

112,148

45,120

51,844

702,259

Less: Selling, general and administrative expense

(439
)
—

—

—

(51,844
)
(52,283
)
Less: Depreciation, depletion and amortization

(22,019
)
(22,864
)
(12,704
)
(6,815
)
—

(64,402
)
Total operating costs

287,011

160,814

99,444

38,305

—

585,574

Less: Other royalties

(38,242
)
(35,132
)
(7,000
)
(2,613
)
—

(82,987
)
Less: Stanwell rebate

(32,812
)
—

—

—

—

(32,812
)
Less: Freight expenses

(38,294
)
(1,805
)
(3,269
)
(1,787
)
—

(45,155
)
Total mining costs

177,663

123,877

89,175

33,905

—

424,620

	For Six Months Ended June 30,
	($ in thousands)
	2020	2019	Change	%
Met sales volume (MMt)	6.6	8.3	(1.7)	(20.5)%
Met coal revenues ($)	642,029	1,135,499	(493,470)	(43.5)%
Average realized Met price per Mt sold ($/Mt)	97.3	137.5	(40.2)	(29.2)%

Coronado Global Resources Inc. Form 10-Q June 30, 202037

Table of Contents

Reconciliation of Non-GAAP Financial Measures

Adjusted EBITDA

	For Three Months Ended		For Six Months Ended
	June 30,		June 30,
	2020	2019	2020	2019
	(US $ thousands)
Reconciliation to Adjusted EBITDA:
Net (loss) income	(114,330)	117,506	(123,196)	214,326
Add: Depreciation, depletion and amortization	41,547	45,508	86,849	85,279
Add: Interest expense (net of income)	12,064	9,087	24,318	17,264
Add: Other foreign exchange losses (gains)	9,777	3,157	4,217	(557)
Add: Income tax (benefit) expense	(22,646)	47,033	(20,355)	89,043
Add: Impairment of assets	63,111	—	63,111	—
Adjusted EBITDA	(10,477)	222,291	34,944	405,355

For Three Months
Ended June 30,

For Six Months
Ended June 30,

2019

2018

2019

2018

($ in thousands)

Reconciliation to Adjusted EBITDA:

Net Income

117,506

59,322

214,326

35,651

Add: Depreciation, depletion and amortization

45,508

42,594

85,279

64,402

Add: Interest expense (net of income)

9,087

18,987

17,264

25,488

Add: Other foreign exchange losses (gains)

3,157

5,290

(557
)
6,848

Add: Loss on retirement of debt

—

—

—

3,905

Add: Income tax expense

47,033

12,995

89,043

5,534

Adjusted EBITDA

222,291

139,188

405,355

141,828

Liquidity and Capital Resources

Overview

~~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 flow from operations and borrowings under the SFA.

Our main uses of cash have historically been, and are expected to continue to be, the funding of our operations, working capital and capital expenditure and debt service ~~obligations and payment of dividends.~~obligations. Based on our outlook for the next 12 months, which is subject to continued changing demand from our customers, ~~and~~ volatility in coal prices and the uncertainty of impacts from the COVID-19 pandemic on the global economy, we ~~expect to generate~~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 and service our debt ~~obligations and fund our dividends.~~obligations.

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 in Part I, Item 1A. “Risk Factors” of our ~~registration statement~~Annual Report on Form ~~10, as amended,~~10-K for the year ended December 31, 2019, filed with the SEC and ASX on ~~June 28, 2019. Over time,~~February 24, 2020 and Part II, Item 1A. “Risk Factors” of our Quarterly Report on Form 10-Q for the three months ended March 31, 2020, filed with the SEC and ASX on May 8, 2020. Given the current market outlook, we expect to implement additional strategic and financial initiatives to ensure there is sufficient available liquidity to meet our obligations. The business retains operating and cost flexibility, and such strategic initiatives may ~~seek additional~~include further right-sizing of production at the U.S. Operations for market conditions, deferring development capex, reducing stay-in-business capex and curtailing non-essential operating costs. In addition, the Company may pursue other initiatives to improve cash flow, such as the potential for non-core asset sales or other funding ~~from a range of sources to diversify our funding sources.~~measures.

Liquidity as of June 30, ~~2019~~2020 and December 31, ~~2018~~2019 was as follows:

	June 30, 2020	December 31, 2019
	($ in thousands)
Cash, excluding restricted cash	36,072	26,302
Availability under Revolving Syndicate Facility Agreement ⁽¹⁾	109,000	220,000
Total	145,072	246,302

⁽¹⁾ The availability to fully draw down under the SFA is subject to a liquidity buffer of $50 million, requiring lenders consent, during the existing covenant waiver period to February 28, 2021.

June 30, 2019

December 31, 2018

($ in thousands)

Cash, excluding restricted cash

$
46,001

$
124,656

Availability under Revolving Syndicate Facility Agreement

350,000

350,000

Total

$
396,001

$
474,656

Coronado Global Resources Inc. Form 10-Q June 30, 202038

Table of Contents

~~Total Indebtedness~~

Our total indebtedness as of June 30, ~~2019~~2020 and December 31, ~~2018~~2019 consisted of the following:

	June 30, 2020	December 31, 2019
	($ in thousands)
Current instalments of other financial liabilities and finance lease obligations	15,106	8,375
Interest bearing liabilities, excluding current instalments	441,000	330,000
Other financial liabilities, excluding current instalments	457	1,546
Total	456,563	339,921

June 30, 2019

December 31, 2018

($ in thousands)

Finance/capital lease liabilities

$
3,103

$
3,789

Other financial liabilities

15,823

11,800

Total

$
18,926

$
15,589

Liquidity

As of June 30, 2020, available liquidity was $145.1 million comprising cash and cash equivalents (excluding restricted cash) of $36.1 million and $109.0 million of available borrowing facilities under the SFA, $50 million of which is subject to a liquidity buffer agreed with the Lenders. As of December 31, 2019, available liquidity was ~~$396.0~~$246.3 million comprising cash and cash equivalents of ~~$46.0~~$26.3 million and ~~$350.0~~$220.0 million of available borrowing facilities. As

In light of ~~December 31, 2018,~~the COVID-19 pandemic, the Company has taken steps to strengthen its financial position, and maintain financial flexibility, including reviewing operating and corporate expenditure, reducing capital expenditure and ensuring there is sufficient available liquidity ~~was $474.7 million comprising cash~~under the SFA. As stated above, we are actively pursuing a number of strategic initiatives to increase liquidity, including extending the duration of covenant waivers, to manage operations through this period of uncertainty and ~~cash equivalents of $124.7 million and $350.0 million of available borrowing facilities.~~volatility.

Cash

~~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.~~accounts or used to repay interest bearing liabilities.

Secured Credit Facilities

To assist in managing the potential volatility in economic and operational changes, which may influence the generation of free cash flow, the Company entered into ~~a Syndicated Facility Agreement on September 15, 2018 providing two~~the SFA, which provides three borrowing facilities:

·•Facility ~~A—$350~~A — $350 million ~~multi-currency~~multicurrency revolving loan facility available for general working capital and corporate purposes; ~~and~~

·•Facility B—B — A$~~370~~130 million multicurrency bank guarantee ~~facility.~~facility; and

•Facility C — $200 million multicurrency revolving loan facility available for general working capital and corporate purposes.

The right to draw upon these facilities is conditional upon a number of provisions being satisfied at the time that each drawdown request is issued. These conditions include, among other things, that:

·•no Event of Default is continuing or would result from the proposed loan;

·•the representations, as defined in the ~~Syndicated Facility Agreement,~~SFA, that are made are true in all material respects and not misleading; and

·•the amount of the proposed loan will not cause the committed facility limit to be exceeded.

At June 30, ~~2019,~~2020, Facility A was fully utilized and Facility C had ~~no borrowings outstanding,~~$91.0 million drawn, with ~~$350~~$109.0 million undrawn.

On May 25, 2020, the Company executed a Syndicated Facility Agreement Waiver Letter, or Waiver Letter, which, among other matters, waives compliance with certain finance covenants for the period from May 25, 2020 to February 28, 2021. The Waiver Letter provides the Company with additional flexibility to work through the current period of ~~availability undrawn.~~lower demand and pricing for metallurgical coal as a result of COVID-19.

During the waiver period the Company has agreed to additional reporting requirements and other restrictions, including on new indebtedness and asset sales. The Company has also agreed to a new review event during the waiver period that arises if a utilization notice is provided which would cause the available balance under the Facility A and Facility C, in aggregate, to be less than US$50 million. If such a utilization notice is provided, we will be required to negotiate with the Lenders on the terms on which they may consent to a drawdown of the $50 million liquidity buffer. During this period, the Company

Coronado Global Resources Inc. Form 10-Q June 30, 202039

Table of Contents

will be under a review event such that if agreement cannot be reached on the terms under which the liquidity buffer may be drawn, the Lenders may cancel the whole or any part of the Facilities and require repayment.

See Part II, Item 1A. “Risk Factors” – “Our financial performance could be adversely affected by a prolonged deterioration in prices.” for additional information.

Bank Guarantees

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. Facility B is available for this purpose and as of June 30, ~~2019,~~2020, we had issued multicurrency Bank Guarantees totaling A$~~268.5~~68.9 million to satisfy these requirements, leaving A$~~101.5~~61.1 million available under Facility B.

In addition to the above, to satisfy an obligation to provide a U.S. dollar bank guarantee to a third party, on June 12, 2019 the Company entered into a Bank Guarantee Facility Agreement with Westpac Banking Corporation with a limit of $28.6 million. At June 30, 2019 this facility was fully utilized.

Secured Credit Facilities Terms

Interest Rate

Borrowings under our ~~Syndicated Facility Agreement~~SFA bear interest at a floating rate which is either (i) LIBOR plus an applicable margin for US$ loans and (ii) Bank Bill Swap Bid Rate, or BBSY, bid plus an applicable margin for the A$ loan. The applicable margin for Facility A and C depends on the Net Debt to EBITDA ratio (as defined in the ~~Syndicated Facility Agreement)~~SFA).

Financial Covenants

Under the SFA we are required to comply with financial covenants, namely leverage ratio, interest coverage ratio, tangible net worth.

~~Each~~As discussed above under “Liquidity - Secured Credit Facilities”, on May 25, 2020, the Company executed a Waiver Letter, which waives compliance with certain financial ~~covenant is calculated~~covenants for the period from May 25, 2020 to February 28, 2021. The Waiver Letter provides the Company with ~~reference~~additional flexibility to ~~the definitions contained in the SFA.~~work through this period of lower demand and pricing for metallurgical coal as a result of COVID-19. As of June 30, ~~2019, which was the last applicable compliance date under the SFA,~~2020, we were in compliance with ~~all applicable~~the SFA’s financial covenants ~~under the SFA.~~

~~Dividend~~

~~We paid an aggregate dividend of $299.7 million on March 29, 2019 in A$~~and did not need to ~~holders of CDIs~~rely on the ~~ASX as~~waiver from lenders. See Part II, Item 1A. “Risk Factors” – “Our financial performance could be adversely affected by a prolonged deterioration in prices.” for additional information.

Dividend

During the six months to June 30, 2020 we paid $24.2 million of ~~March 5, 2019, based~~dividends to stockholders and CDI holders on the ~~exchange rate on March 5, 2019.~~ASX.

Capital Requirements

Our main uses of cash have historically been and are expected to continue to be the funding of our operations, working capital and capital expenditure and the payment of interest and dividends.

Historical Cash Flows

The following table summarizes our cash flows for the six months ended June 30, ~~2019~~2020 and ~~2018,~~2019, as reported in the accompanying consolidated financial statements:

Cash Flow

	For Six months ended June 30,
	2020	2019
	($ in thousands)
Net cash (used in) provided by operating activities	(7,636)	301,216
Net cash (used in) investing activities	(61,853)	(67,336)
Net cash provided by (used in) financing activities	78,258	(312,145)
Net change in cash and cash equivalents	8,769	(78,265)
Effect of exchange rate changes on cash and restricted cash	1,002	(365)
Cash and restricted cash at beginning of period	26,553	124,881
Cash and restricted cash at end of period	36,324	46,251

Coronado Global Resources Inc. Form 10-Q June 30, 202040

Table of Contents

Six Months Ended June 30,

2019

2018

($ in thousands)

Net cash provided by operating activities

301,216

141,612

Net cash (used in) investing activities

(67,336
)
(584,335
)
Net cash (used in) provided by financing activities

(312,145
)
701,093

Net change in cash and cash equivalents

(78,265
)
258,370

Effect of exchange rate changes on cash and restricted cash

(365
)
(2,384
)
Cash and restricted cash at beginning of period

124,881

28,069

Cash and restricted cash at end of period

46,251

284,055

Operating activities

Net cash used in operating activities was $7.6 million for the six months ended June 30, 2020, and cash provided by operating activities was $301.2 million ~~and $141.6~~for the six months ended June 30, 2019. The decrease in cash from operating activities was primarily due to the decline in revenues in the period partially offset by lower operating costs.

Investing activities

Net cash used in investing activities was $61.9 million for the six months ended June 30, ~~2019 and 2018, respectively. The increase in cash provided by operating activities during the six months ended June 30, 2019 was primarily due~~2020, compared to ~~the additional cash contributed by Curragh since it was acquired on March 29, 2018, and an improvement in operating performance of the U.S. Operations.~~

~~Investing activities~~

~~Net cash used in investing activities was $67.3~~$67.4 million for the six months ended June 30, ~~2019, compared to $584.3 million for the six months ended June 30, 2018.~~2019. Capital expenditure for the six months ended June 30, ~~2019~~2020 was ~~$66.4~~$61.9 million, of which ~~$15.4~~$18.8 million related to ~~Curragh and~~ the ~~remainder~~Australian Operations, $41.9 million related to the U.S. ~~Operations. Capital~~Operations and the remaining $1.2 million for other and corporate. Included in the capital expenditure for ~~our~~the U.S. Operations was ~~$51.0 million~~an acquisition of new reserves of $6.0 million.

As a result of weak market conditions and ~~$46.8~~the uncertainty surrounding the length and severity of the COVID-19 pandemic, we are focused on reducing our expected cost and capital expenditures for the remainder of fiscal year 2020.

Financing activities

Net cash provided by financing activities was $78.3 million for the six months ended June 30, ~~2019 and 2018, respectively. Included in the cash flows in the six months ended June 30, 2018 was the cash consideration of $537.2 million used by Coronado to purchase Curragh.~~

~~Financing activities~~

~~Net cash used in financing activities was $312.1 million for the six months ended June 30, 2019,~~2020, compared to ~~$701.1~~$312.1 million of net cash ~~provided by~~used in financing activities during the six months ended June 30, ~~2018.~~ 2019. Included in the net cash provided in financing activities for the six months ended June 30, 2020, were proceeds from borrowings of $145.0 million, repayment of borrowings of $34.0 million, and $24.2 million for dividends paid to the shareholders of the Company.

Uses of cash from financing activities during the six months ended June 30, 2019 included $299.7 million for dividends paid to the shareholders of the Company and payments of contingent royalty consideration under the Value Share Mechanism of $12.7 million. Included in the net cash provided in financing activities for the six months ended June 30, 2018 was proceeds from borrowings of $700.0 and $151.3 contributed by members of Coronado Group LLC (former parent of the Company), which were utilized for the purchase of Curragh and the repayment of a term loan on March 29, 2018.

Contractual Obligations

There were no material changes to our contractual obligations from the information previously provided in Item 27. “Management’s Discussion and Analysis of Financial Condition and Results of Operations” of our ~~registration statement~~Annual Report on Form ~~10, as amended,~~10-K for the year ended December 31, 2019, filed with the SEC and ASX on ~~June 28, 2019, for the year ended December 31, 2018.~~February 24, 2020.

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~~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” inof our ~~registration statement~~Annual Report on Form ~~10, as amended,~~10-K for the year ended December 31, 2019, filed with the SEC and ASX on ~~June 28, 2019.~~February 24, 2020.

Newly Adopted Accounting Standards and Accounting Standards Not Yet Implemented

~~Unaudited Pro Forma Combined Financial Information~~

~~The following~~See Note 2. (a) “Newly Adopted Accounting Standards” and Note 2. (b) “Accounting Standards Not Yet Implemented” to our unaudited condensed consolidated ~~pro forma statements of operations present the combination of the historical~~ financial statements ~~of Coronado and Curragh, adjusted to give effect to the acquisition of Wesfarmers Curragh Pty Ltd by Coronado, which we refer to as the Curragh acquisition.~~

~~The unaudited consolidated pro forma statement of operations~~ for the six months ended June 30, 2018 combine the historical consolidated statement of operations of Coronado and the historical combined statement of operations for Curragh, giving effect to the acquisition of Wesfarmers Curragh Pty Ltd by Coronado as if they had been consummated on January 1, 2018. This will facilitate a pro forma comparison between the six months ended June 30, 2019 and June 30, 2018 in Management’s Discussion and Analysis of Financial Condition and Results of Operations. We believe a discussion of ~~these two periods is more meaningful as it is on a comparable basis.~~

~~The unaudited consolidated pro forma statements of operations do~~newly adopted accounting standards and accounting standards not ~~reflect the costs of any integration activities or benefits. The unaudited pro forma adjustments are based upon current available information and assumptions that~~ yet implemented.

Coronado ~~believes to be reasonable. The pro forma adjustments and related assumptions are described in the accompanying notes presented on the following pages.~~

The unaudited consolidated pro forma statements of operations are for informational purposes only and are not intended to represent or to be indicative of the actual results of operations or financial position that the combined business of Coronado and Curragh would have reported had the transactions been completed as of the dates set forth in the unaudited consolidated pro forma statements of operations and should not be taken as being indicative of Coronado’s future consolidated results of operation. The actual results may differ significantly from those reflected in the unaudited consolidated pro forma statements of operations for a number of reasons, including, but not limited to, differences between the assumptions used to prepare the unaudited consolidated pro forma statements of operations and actual amounts. As a result, the pro forma consolidated information does not purport to be indicative of what the results of operations would have been had the transaction been completed on the applicable dates of the unaudited consolidated pro forma statements of operations.

~~Unaudited Consolidated pro forma statement of operations~~

~~For the six months-ended~~Global Resources Inc. Form 10-Q June 30, ~~2018~~202041

Table of Contents

~~(U.S. dollars and AUD in thousands)~~

Historical 1 January 2018 to 29 March 2018

Historical

Note 2(a)

Note 2(b)

Note 2(c)

Pro Forma adjustments

Coronado
Global
Resources Inc.

Curragh

Reclassification

IFRS to US
GAAP
Adjustments

Curragh in
US GAAP

Curragh in
USD and US
GAAP

Pro forma
adjustments

Note 2

Consolidated
pro forma

USD

AUD

AUD

AUD

AUD

USD

USD

USD

Revenues:

Coal revenues

561,363

406,696

—

—

406,696

313,494

—

874,857

Coal revenues from related parties

222,983

—

—

—

—

—

—

222,983

Other Revenues

15,337

—

—

—

—

—

3,006

(d
)
18,343

Total Revenues

799,683

406,696

—

—

406,696

313,494

3,006

1,116,183

Cost and expenses:

Cost of coal revenues (exclusive of items shown separately below)

424,620

204,132

(15,367
)
—

188,765

145,506

—

570,126

Depreciation, depletion and amortization

64,402

—

16,971

1,525

18,496

14,257

7,977

(e
)
86,636

Freight expense

45,155

—

47,769

—

47,769

36,822

—

81,977

Stanwell rebate

32,812

—

55,949

—

55,949

43,127

—

75,939

Other royalty expenses

82,987

93,886

(55,949
)
—

37,937

29,243

—

112,230

Impairment

—

(263,097
)
—

263,097

—

—

—

—

Selling, general, and administrative expenses

52,283

50,098

(47,769
)
—

2,329

1,795

(38,101
)
(f
)
15,977

Total costs and expenses

702,259

85,019

1,604

264,622

351,245

270,750

(30,124
)

942,885

Operating income

97,424

321,677

(1,604
)
(264,622
)
55,451

42,744

33,130

173,298

Other income (expenses):

Interest income

585

—

—

—

—

—

—

585

Interest expense

(26,073
)
(444,895
)
1,604

—

(443,291
)
(341,703
)
336,058

(g
)
(31,718
)
Loss on debt extinguishment

(3,905
)
—

—

—

—

—

3,905

(h
)
—

Other, net

(26,846
)
10,098

—

—

10,098

7,784

15,695

(i
)
(3,367
)
Total other income (loss), net

(56,239
)
(434,797
)
1,604

—

(433,193
)
(333,919
)
355,658

(34,500
)
Income before tax

41,185

(113,120
)
—

(264,622
)
(377,742
)
(291,175
)
388,788

138,798

Income tax expense

(5,534
)
(102,443
)
—

79,387

(23,056
)
(17,772
)
(4,314
)
(j
)
(27,620
)
Net income

35,651

(215,563
)
—

(185,235
)
(400,798
)
(308,947
)
384,474

111,178

Less: Net loss attributable to noncontrolling interest

(4
)
—

—

—

—

—

—

(4
)
Net income (loss) attributable to Coronado Global Resources Inc.

35,655

(215,563
)
—

(185,235
)
(400,798
)
(308,947
)
384,474

111,182

Earnings per share of common stock

Basic

0.37

—

—

—

—

—

—

$
1.15

Diluted

0.37

—

—

—

—

—

—

$
1.15

Average common shares outstanding

Basic

$
96,651,692

—

—

—

—

—

—

96,651,692

Diluted

$
96,656,067

—

—

—

—

—

—

96,656,067

~~See accompanying notes to the unaudited pro forma consolidated statement of operations.~~

~~Note 1. Basis of Preparation~~

The accompanying unaudited consolidated pro forma statement of operations was prepared in accordance with Article 11 of Regulation S-X and presents the pro forma combined results of operations of Coronado based upon the historical financial statements of each of Coronado and Curragh, after giving effect to the Curragh acquisition and change in tax status, and are intended to reflect the impact of the Curragh acquisition and change in tax status on Coronado’s statement of operations. The accompanying unaudited consolidated pro forma statement of operations has been prepared using, and should be read in conjunction with the consolidated financial statements of Coronado for the three and six months ended June 30, 2019. Assumptions and estimates underlying the pro forma adjustments are described in these notes.

The accompanying unaudited consolidated pro forma statement of operations is presented for illustrative purposes only and does not purport to be indicative of the actual results that would have been achieved by Coronado if the Curragh acquisition had been consummated as of the beginning of the periods presented or that will be achieved in the future. The unaudited consolidated pro forma statement of operations does not reflect the costs of any integration activities or benefits that may result from realization of synergies expected to result from the Curragh acquisition. In addition, throughout the period presented in the unaudited consolidated pro forma statement of operations until the date of acquisition on March 29, 2018, the operations of Curragh were conducted and accounted for as part of the former shareholder. Curragh’s unaudited combined financial information has been derived from the former shareholder’s historical accounting records and reflect certain allocations of direct costs and expenses. All of the allocations and estimates in such financial information are based on assumptions that the management of the former shareholder believes are reasonable. In the opinion of management, the unaudited consolidated pro forma statement of operations includes all normal and recurring adjustments that are considered necessary for the fair presentation of the results for the period presented. Curragh’s financial information does not necessarily represent the financial position of Curragh had it been operated as a stand-alone company during the period.

The unaudited consolidated pro forma statement of operations combines the historical consolidated statement of operations of Coronado for the three and six months ended June 30, 2018 and the unaudited combined financial information of Wesfarmer’s Curragh Pty Ltd for the three months ended March 29, 2018, giving effect to the Curragh acquisition as if both had been consummated on January 1, 2018.

~~Note 2. Income Statement Adjustments~~

~~The unaudited consolidated pro forma statement of operations reflects the following adjustments ($ in thousands):~~

~~(A)~~ ~~Reclassifications~~

~~These adjustments represent reclassifications to conform the accounting presentation of Curragh’s financial statements to Coronado’s financial statements.~~

~~(B)~~ ~~International Financial Reporting Standards, or IFRS, to U.S. GAAP adjustments (in AUD)~~

~~Impairment was adjusted as follows:~~

		~~June 30, 2018~~
~~Elimination of Curragh’s impairment reversal(1)~~		~~263,097~~
~~Total IFRS to U.S. GAAP adjustment to impairment expense~~		~~263,097~~

(1) Represents the removal of the IFRS, impairment reversal consistent with pushing back the U.S. GAAP acquisition fair values to January 1, 2018 and the prohibition under U.S. GAAP of the reversal of impairment expense.

~~Depreciation, depletion and amortization was adjusted as follows:~~

		~~June 30, 2018~~
~~Adjustment to accretion of Curragh asset retirement obligation(1)~~		~~1,525~~
~~Total IFRS to U.S. GAAP adjustment to depreciation, depletion and amortization expense~~		~~1,525~~

(1) Under U.S. GAAP, a company-specific risk adjusted discount rate is used which is higher than the discount rate required by IFRS. The higher discount rate under U.S. GAAP reduces the asset retirement obligation, or ARO, booked initially and results in a higher accretion expense each period as the discounted ARO balance increases.

~~See Note J for discussion of the calculation of the income tax expense.~~

~~(C)~~ ~~USD translation rate~~

~~In order to translate the Curragh AUD results into USD, an exchange rate of .7708 was utilized. This represents the average exchange rate for the period from January 1, 2018 to June 30, 2018.~~

~~(D)~~ ~~Other revenues~~

~~Other revenues were adjusted as follows:~~

		~~June 30, 2018~~
~~Amortization of the Stanwell below market CSA(1)~~		~~3,006~~
~~Total pro forma adjustment to other revenues~~		~~3,006~~

~~(1)~~ Relates to the amortization of the Stanwell below market coal supply agreement, or CSA. The Stanwell below market CSA represents the fair value attributable to the Australian coal supply obligation arising from the Coronado Curragh business combination.

~~(E)~~ ~~Depreciation, depletion and amortization~~

~~Depreciation, depletion and amortization were adjusted as follows:~~

		~~June 30, 2018~~
~~Adjustment to depreciation of Curragh assets acquired(1)~~		~~7,977~~
~~Total pro forma adjustment to depreciation, depletion and amortization~~		~~7,977~~

~~(1)~~ Represents the adjustment to Curragh’s historical depreciation and amortization as a result of preliminary fair value adjustments to the acquired depreciable assets, mineral reserves and amortizable intangible assets.

~~(F)~~ ~~Selling, general and administrative~~

~~Selling, general and administrative expenses were adjusted as follows:~~

	~~June 30, 2018~~
~~Transaction costs(1)~~	~~(38,101~~	)
~~Total pro forma adjustment to selling, general and administrative expenses~~	~~(38,101~~	)

~~(1)~~ Relates to advisory and legal fees incurred in the year ended June 30, 2018, which are directly attributable to the Curragh acquisition, but which are not expected to have a continuing impact on results following the consummation of the Curragh acquisition.

~~(G)~~ ~~Interest expense~~

~~Interest expense was adjusted as follows:~~

	~~June 30, 2018~~
~~Eliminate intercompany interest expense(1)~~	~~341,702~~
~~Reversal of Bank of American Term Loan(2)~~	~~3,828~~
~~Recognition of DB Term Loan interest expense(3)(4)~~	~~(8,117~~	)
~~Amortization of DB Term Loan debt issuance costs and discount(5)~~	~~(1,355~~	)
~~Total pro forma adjustment to interest expense~~	~~336,058~~

~~(1)~~ Represents the removal of the historical interest charge in relation to an intercompany loan Curragh had with its previous shareholder, which was assigned to Coronado upon acquisitions and is therefore eliminated in consolidation.

~~(2)~~ Represents the reversal of interest expense related to the Bank of America Term Loan on Coronado’s Statement of Operations. This loan was extinguished on March 29, 2018 in conjunction with the acquisition of Curragh. In order to represent the financing in-place as if the acquisition occurred on January 1, 2018, the effects of this note have been removed.

~~(3)~~ Represents additional interest expense related to the DB Term Loan. This $700 million loan, established on March 29, 2018, was used to partially finance the acquisition of Curragh and the additional interest charge reflects this loan as if it were in existence on January 1, 2018. The assumed interest rate for the three months to March 29, 2018 was 8.802%, representing LIBOR plus a 6.5% spread. This is the actual interest rate of the loan at origination. Due to the proximity of the assumed origination (January 1, 2018) and the actual origination (March 29, 2018) as well as the fact the loan was extinguished on October 24, 2018, the interest rate at March 29, 2018 was determined to be representative and more meaningful for the pro forma adjustment than utilizing the current rate.

~~(4)~~ For each one-eighth of 1% change in estimated interest rate associated with the $700 million DB Term Loan, interest expense would increase or decrease by $0.4 million for the six months ended June 30, 2018.

~~(5)~~ ~~Represents the additional amortization of debt issuance costs and the debt discount associated with the DB Term Loan.~~

~~(H)~~ ~~Loss on debt extinguishment~~

~~Loss on debt extinguishment was adjusted as follows:~~

		~~June 30, 2018~~
~~Reversal of debt extinguishment related to the Bank of America Term Loan(1)~~		~~3,905~~
~~Total pro forma adjustment to loss on debt extinguishment expense~~		~~3,905~~

~~(1)~~ Represents the reversal of the debt extinguishment expense related to the Bank of America Term Loan on Coronado’s Statement of Operations. This loan was extinguished on March 29, 2018 in conjunction with the acquisition of Curragh. In order to represent the financing in-place as if the acquisition occurred on January 1, 2018, the effects of this note have been removed.

~~(I)~~ ~~Other, net~~

~~Other, net was adjusted as follows:~~

		~~June 30, 2018~~
~~Transaction costs(1)~~		~~15,695~~
~~Total pro forma adjustment to selling, general and administrative expenses~~		~~15,695~~

~~(1)~~ Relates to the loss on Foreign Exchange, or FX, swap incurred in the six months ended June 30, 2018, which is directly attributable to the Curragh acquisition as it locked in the USD exchange rate in advance of the purchase of Curragh. This loss on FX swap is not expected to have a continuing impact on results following the consummation of the Curragh acquisition.

~~(J)~~ ~~Income tax provisions~~

For purposes of the unaudited pro forma condensed combined financial statements, an Australian statutory tax rate of approximately 30% has been used for pro forma adjustments related to Curragh. A U.S. blended statutory tax rate (Federal and State) of approximately 27% has been used for pro forma adjustments related to the U.S. LLC’s. This does not reflect Coronado’s effective tax rate, which will include other tax items such as state and foreign taxes as well as other tax charges and benefits, and does not take into account any historical or possible future tax events that may impact Coronado following the consummation of the Curragh acquisition.

ITEM 3.~~QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK~~Quantitative and Qualitative Disclosures About Market Risk

Our activities expose us to a variety of financial risks, ~~including market risk~~ such as commodity price risk, interest rate risk, foreign currency risk, liquidity risk and credit risk. ~~Our~~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 are exclusively used for economic hedging purposes and hedging for speculative purposes is strictly prohibited by the Treasury Risk ~~management~~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 rate, 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.

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 ~~registration statement~~Annual Report on Form ~~10, as amended,~~10-K filed with the SEC and ASX on ~~June 28, 2019.~~February 24, 2020.

Sales commitments in the ~~Met~~metallurgical coal market are typically not long-term in nature, and we are therefore subject to fluctuations in market pricing. ~~For example, a 10% decrease~~Certain coal sales in our Australian Operations are provisionally priced initially. Provisionally priced sales are those for which price finalization, referenced to the ~~hard coking coal, or HCC, benchmark~~relevant index, is outstanding at the reporting date. The final sales price ~~would have decreased reported revenues for~~is determined within 7 to 90 days after delivery to the ~~three months ended~~customer. At June 30, ~~2019~~2020, there were $33.8 million of outstanding provisionally priced sales. If prices were to decrease 10%, provisionally priced sales would decrease by $3.4 million. See item 1A. “Risk Factors—Our profitability depends upon the prices we receive for our coal. Prices for coal are volatile and ~~six months ended June, 2019 by approximately $363.3 million~~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 ~~$698.4 million respectively.~~ASX on February 24, 2020.

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). 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.

~~In 2018, we entered into fixed price contracts with our~~The fuel ~~suppliers to purchase 19.1 million liters of fuel~~required for our U.S. Operations ~~with a total commitment of $11.3 million for 2019. The remaining commitment as of June 30, 2019 was $5.6 million with respect to 9.5 million liters. Any additional fuel required~~in fiscal year 2020 will be purchased under fixed-price contracts or on a spot basis.

~~In the same period,~~ For our Australian Operations, we have entered into forward derivative contracts to purchase 93.4 million liters of diesel fuel in 2019 with respect to the fuel requirements for the Curragh operations in Australia. During the three month period ended June 30, 2019 we have entered into additional forward derivative contracts to purchase 126 million liters of diesel fuel with respect to ~~the expected 2020~~our fuel requirements ~~for Curragh.~~at Curragh in 2020 and 2021 of which 199.6 million liters were outstanding as of June 30, 2020. The fair value of the forward derivative ~~contract~~contracts as of June 30, ~~2019~~2020 was ~~an asset~~a liability of ~~$3.6 million with respect to outstanding 173.3 million liters.~~$20.1 million.

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 financial performance, investment decisions and stockholder returns. 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 June 30, ~~2019,~~2020, we had ~~$17.1~~$15.6 million of fixed-rate borrowings and $441.0 million of variable-rate borrowings outstanding. As discussed in Item 2. “Management’s Discussion and Analysis of Financial Condition and Results Ofof Operations—Liquidity and Capital Resources—Liquidity,” as of June 30, ~~2019, we had undrawn~~2020, the drawn debt facility of ~~$350~~$441.0 million ~~with~~incurred a variable interest rate of LIBOR or BBSY bid plus a margin. ~~We intend to draw these funds for working capital requirements and general corporate purposes. A significant~~As of June 30, 2020, a 10% increase in the market interest rate ~~following a drawdown could result in a material~~on our variable-rate borrowings of $441.0 million would increase ~~in the~~our annual interest expense ~~dependent on the amount drawn.~~by $0.2 million. We currently do not hedge against interest rate fluctuations.

Coronado Global Resources Inc. Form 10-Q June 30, 202042

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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 90% of expenses incurred at Curragh are denominated in A$. Approximately 10% of Curragh’s purchases are made with reference to US$, which provides a natural hedge against foreign exchange movements on these purchases (including fuel, ~~the Wiggins Island Coal Export Terminal Pty Ltd, or WICET, Terminal Handling Charge,~~some port handling charges, demurrage, purchased coal and some insurance premiums). ~~Appreciation~~

The Company entered into forward exchange contracts to manage its foreign currency exposure of the Curragh operations by selling US$ generated from export coal sales revenue at Curragh and purchasing A$ ~~against US$ will increase~~required to settle Curragh’s ~~US$ reported cost base and reduce US$ reported net income. Assuming we had no foreign currency hedging instruments in place, a 5% increase in~~A$ operating costs. The fair value of the ~~A$ to US$ exchange rate would increase reported expenses by approximately $7.9 million and $16.0 million for the three months ended~~forward derivative contracts as of June 30, ~~2019 and the six months ended June 30, 2019, respectively.~~2020 was an asset of $1.5 million.

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.

During 2018, we entered into a foreign exchange swap to hedge the exposure to fluctuations in the A$-US$ in connection with the acquisition of Curragh. At June 30, 2019, we did not have any foreign exchange contracts outstanding.

For our Australian Operations, we translate all monetary assets and liabilities at the period-end exchange rate, all non-monetary 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~~For the unhedged portion of US$ required to purchase A$ to settle Curragh’s operating costs, a 10% increase in the A$ to US$ exchange rate ~~fluctuations.~~would increase reported total costs and expenses by approximately $19.6 million and $37.1 million for the three and six months ended June 30, 2020.

~~Liquidity Risk~~

Liquidity risk is the risk that we will not have sufficient liquid funds to meet our financial commitments as and when they fall due. Liquidity risk is managed centrally through short-term cash forecasting and longer-term strategic planning. Our objective is to ensure that we have sufficient liquid assets and funding to meet both our anticipated and unexpected financial obligations.

Access to capital is also an important feature of liquidity risk management. We manage this risk through proactive management of our funding profile by ensuring that we have access to diverse sources of funds and that we do not have material refinancing risk in any single reporting period.

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.

Coronado Global Resources Inc. Form 10-Q June 30, 202043

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~~ITEM~~item 4.~~CONTROLS AND PROCEDURES~~ Controls and Procedures

Disclosure Controls and Procedures

Disclosure controls and procedures are controls and procedures that are designed to ensure that information required to be disclosed in our reports filed under the Exchange Act isare recorded, processed, summarized and reported, within the time periods specified in the SEC’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by our company in the reports that it files or submits under the Exchange Act is accumulated and communicated to our management, including its principal executive and principal financial officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure.

The Company, under the supervision and with the participation of its management, including the Chief Executive Officer and the Group Chief Financial Officer, evaluated the effectiveness of the design and operation of the Company’s disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) as of the end of the period covered by this report, and concluded that such disclosure controls and procedures were effective to provide reasonable assurance that the desired control objectives were achieved.

Internal Control over Financial Reporting

Internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements in accordance with U.S. GAAP. We are not currently required to comply with the SEC’s rules implementing Section 404 of the Sarbanes-Oxley Act of 2002, and are therefore not required to make a formal assessment of the effectiveness of our internal control over financial reporting for that purpose. We will not be required to submit a report of management’s assessment regarding internal control over financial reporting or an attestation report of the Company’s registered public accounting firm until our second annual report on Form 10-K, ~~due to a~~which will be for fiscal year 2020, in accordance with the transition period established by the rules of the SEC for newly registered companies.

During the preparation of our financial statements for the year ended December 31, 2018, we and our auditors identified a material weakness in our internal control over financial reporting related to the recognition and presentation of the impact of the Reorganization Transaction, which occurred just prior to the Australian IPO. The presentation was corrected prior to the issuance of the financial statements and did not result in any material misstatement of our financial statements or disclosures.

In the period since December 31, 2018, management has remediated the identified material weakness. The remediation efforts implemented specifically focused on the identified item and have also aided in enhancing our overall financial control environment. Remediation efforts applied during the period included (a) the immediate posting of the identified one-off item to ensure no material misstatement in our financial statements; (b) the continued recognition of this position since December 31, 2018 in our financial statements for the period ending June 30, 2019; (c) the Company has employed additional qualified resources to prepare, review and provide guidance on technical matters of this nature; and (d) the Company continues to utilize the expertise of certain third party technical advisors to assist in the review of complex transactions.

Our Chief Executive Officer and Group Chief Financial Officer have concluded that the Consolidated Financial Statements included in this Quarterly Report on Form 10-Q, present fairly, in all material respects, the financial position of the Company at June 30, ~~2019~~2020, and the consolidated results of operations and cash flows for the six months period ended June 30, ~~2019~~2020, in conformity with U.S. generally accepted accounting ~~principles.~~principles.

Changes to Internal Control over Financial Reporting

As previously reported, we expect to continue to make changes in our internal control over financial reporting in connection with our compliance efforts with respect to the Sarbanes-Oxley Act of 2002. As such, we will continue to assess the adequacy of our internal control over financial reporting, remediate any control weaknesses that may be identified, validate through testing that controls are functioning as designed and implement a continuous reporting and improvement process for internal control over financial reporting.

Coronado Global Resources Inc. Form 10-Q June 30, 202044

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PART II —– OTHER INFORMATION

item 1. lEGAL PROCEEDINGS

~~ITEM 1.~~~~LEGAL PROCEEDINGS~~

We are ~~involved in~~subject to various legal ~~proceedings from time to time in the normal course~~and regulatory proceedings. For a description of business including proceedings related to employment matters. These liabilities do not include costs associated with legal representation, which are expensed as they are incurred. In management’s opinion, except for what is described below, we are not currently involved in anyour significant legal proceedings ~~which, individually or in the aggregate and if determined adversely, could have a material effect on our financial condition, results of operations and/or liquidity or that would otherwise be required~~refer to ~~be disclosed herein.~~

~~Curragh is a co-defendant to proceedings in the Queensland Supreme Court brought by Aurizon. Aurizon’s claim relates to costs relating~~Note 20. “Contingencies” to the ~~co-defendants’ use of the WICET rail links,~~unaudited condensed consolidated financial statements included in particular, whether the “First Milestone Target Date”, which triggers certain “WIRP Fee” payments under the Wiggins Island Rail Project Deed, or WIRP Deed, has been achieved. On June 27, 2019, the Queensland Supreme Court delivered judgements in favor of Aurizon against Coronado Curragh Pty Ltd and the other co-defendants. The Company intends to continue to strongly contest the matter. The Company, together with the other co-defendants, lodged a notice of appeal of the Queensland Supreme Court judgement on July 25, 2019. It is currently expected that, were Aurizon successful in the ultimate result of the litigation and expert determinations, Coronado Curragh Pty Ltd would be required to pay approximately A$2.3 million per annum for the term of the WIRP Deed (which is 233 months). ResolutionPart I, Item 1. “Financial Statements” of this dispute would also result in the Company’s below rail access to WICET (of 1.5 MMtpa) becoming a firm contractual capacity entitlement (and the subject of a 20 year take-or-pay access agreement) instead of an ad hoc entitlement only. The Company’s unaudited Condensed Consolidated Balance Sheet includes an estimated loss contingency associated with these proceedings.

In February 2019, the Queensland Competition Authority, or QCA, issued its final decision in respect of Access Undertaking 5, or UT5. The final decision, consistent with the draft decision issued in December 2017, reduces the rate of return that can be chargedQuarterly Report, which information is incorporated by Aurizon on its network routes. The Queensland coal producers experienced material rail haulage underperformance because soon after the draft UT5 decision was handed down by the QCA, the rail track network was severely restricted due to Aurizon’s modification of its maintenance practices in order to lower costs. It is possible that Aurizon will modify its maintenance practices in the future to lower costs should similar decisions be issued by the QCA, resulting in constrained access to the rail network, making it more difficult for customers (including us) to arrange for the transportation of coal in excess of their contracted capacity entitlement and having the potential to increase demurrage costs.reference herein.

In a constrained rail capacity and high demand environment, there is a risk that we and other users of the network will not be allocated additional access to rail above annual contracted entitlements. Should this occur, the potential impact on us is higher in the short term as our contracted access entitlement for 1.5 MMt per annum of below rail capacity to WICET is currently treated as an ad hoc entitlement. This means that, in the event of a scheduling contest with a contracted user (which could arise because of changes by Aurizon to maintenance practices or because of increased usage of the line by other customers), a path we request may not be able to be scheduled. This capacity is now expected to become the subject of a long-term access agreement as the judgment from the litigation concluded in September 2018 has been handed down and the dispute between Wiggins Island Rail Project customers and Aurizon regarding the “First Milestone Target Date” under the WIRP Deed has been finally resolved.

In June 2018, two holders of preference equity issued by WICET Holdings commenced legal proceedings in the Supreme Court of New South Wales against WICET Pty Ltd and WICET Holdings alleging unpaid dividends in respect of the shares held by them. Although we are not exposed directly to this litigation, an adverse finding may detrimentally impact the financial position of WICET Holdings and WICET Pty Ltd and could result in the senior lenders or a receiver appointed by them taking steps to seek to recover against the shippers (including us) whether through increased terminal handling charges or otherwise.

ITEM 1A. RISK FACTORS

~~Our registration statement~~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, as amended,~~10-K for the year ended December 31, 2019, filed with the SEC and ASX on June 28, 2019, which we refer to as our Form 10, includes a detailed discussion of certain material risk factors we face. The information presented below restates the risk factor set forth under the heading “Risks related to our investment in WICET may adversely affect our financial conditionFebruary 24, 2020 and ~~results of operations” in~~Part II, Item 1A1A. “Risk Factors” of our ~~Form 10. You should consider this risk factor together with the other risk factors and other matters described in our registration statement and in this~~ Quarterly Report on Form ~~10-Q.~~10-Q for the three months ended March 31, 2020, filed with the SEC and ASX on May 8, 2020:

Our financial performance could be adversely affected by a prolonged deterioration in prices.

~~Risks related~~As at June 30, 2020, we had $441.0 million of borrowings outstanding under the SFA. The degree to which liquidity is sufficient to meet the ongoing needs of the business may be impacted by a number of factors and could have the following consequence if sufficient liquidity is not available, including, but not limited to:

making it more difficult for us to pay interest and satisfy our ~~investment~~debt obligations;

making any refinancing more difficult if the capital and lending markets are constrained;

making it more difficult to obtain surety bonds, letters of credit, bank guarantees or other financing, particularly during periods in ~~WICET may adversely affect~~which credit markets are weak;

limiting our ~~financial condition~~flexibility in planning for, or reacting to, changes in our business and ~~results of operations .~~in the coal industry; and

causing a decline in our credit ratings.

We have a minority interest in WICET Holdings Pty Ltd, whose wholly owned subsidiary, WICET Pty Ltd, owns WICET. Other coal producers who export coal through WICET also hold shares in WICET Holdings Pty Ltd. In addition,On May 25, 2020, we and the other coal producers (or shippers) have evergreen, ten year take-or-pay agreements with WICET Pty Ltd and pay a terminal handling charge to export coal through WICET, which is calculated by reference to WICET’s annual operating costs, as well as finance costs associated with WICET Pty Ltd’s external debt facilities, refinanced and extended in late 2018.

~~Under our take-or-pay~~concluded an agreement with ~~WICET Pty Ltd, or~~lenders under the ~~WICET Take-or-Pay Agreement, we~~SFA to waive compliance with certain financial covenants for the period from March 25, 2020 to February 28, 2021. The waiver provides us with additional flexibility to work through the current period of lower demand and pricing for metallurgical coal that has been brought about by the global COVID-19 pandemic. We are ~~obligated~~continuing to ~~pay for that capacity via terminal handling charges, whether utilized or not. The terminal handling charge payable by us~~actively engage with our Lenders in relation to the extension of the waiver beyond February 28, 2021. There can be ~~adjusted by WICET Pty Ltd~~no assurance that waivers will be extended beyond February 28, 2021 or that the Company will be in compliance with its financial covenants after February 28, 2021 if ~~our share of WICET Pty Ltd’s operating~~the current market conditions persist.

During the waiver period, the Company has agreed to additional reporting requirements and ~~finance cost increases, due to increased operating costs or because another shipper defaults~~other restrictions, inlcuding on new indebtedness and asset sales. The Company has ~~its capacity reduced to nil. The terminal handling charge calculation is subject~~also agreed to a ~~finance cap set~~new review event during the waiver period that arises if a utilization notice is provided which would cause the available balance under Facility A and Facility C, in aggregate, to be less than US$50 million. If such a utilization notice is provided, the Company will be required to negotiate with the Lenders on the terms of the WICET Take-or-Pay Agreement and this cap has already been reached and is in force. Since WICET began shipping export tonnages in April 2015, four WICET Holdings Pty Ltd shipper-shareholders have entered administration, resulting in defaults under their take-or-pay agreements and a decrease in the aggregate contracted tonnage at WICET from 27 MMtpaon which they would be prepared to ~~15.5 MMtpa.~~

~~Given the operation of the finance cap (agreed as part of WICET’s refinance) there is a limit~~continue to the recovery by WICET of its financing costs from shippers (subject to certain review event triggers). Accordingly, prior defaults referred to above have resulted in only minor increases to the terminal handling charges payable by the remaining shipper shareholders (including us). These increases have related to higher $/ton operating costs resulting from a lower contract base. Ifprovide all or any of the ~~four-remaining shipper shareholders liquidates and/~~Facilities, and if agreement cannot be reached, the Lenders may cancel the whole or ~~defaults under its take-or-pay agreement, a review~~any part of the ~~finance cap would be triggered~~Facilities and ~~the terminal handling charges for the remaining shipper shareholders, including us, will~~require repayment.

Any downgrade in our credit ratings could result in, among other matters, an increase ~~as each remaining shipper effectively would be proportionately liable to pay the defaulting shipper’s share of WICET’s operating and financing costs going forward.~~

In addition, if we default under our take-or-pay agreement with WICET Pty Ltd, we might be liable for a significant termination payment. The termination payment is approximately equal to our proportion of WICET Pty Ltd’s total external debt (which is based on the proportion that our contracted tonnage bears to the total contracted tonnage at WICET when the payment obligation is triggered). We have provided security to WICET Pty Ltd in the ~~form~~cost of, ~~a bank guarantee, the amount of which is required to cover our estimated liabilities as a shipper under the WICET Take-or-Pay Agreement for the following 12 month period.~~

~~Any attempt by the senior lenders for WICET Pty Ltd’s external debt,~~ or a ~~receiver appointed by them,~~limit on our access to, ~~take steps to seek to recover against the shipper-shareholders (whether through increased terminal handling charges or otherwise) could materially and adversely impact~~various forms of credit used in operating our business and ~~results~~the requirement by suppliers for us to provide financial assurance by way of ~~operations. If an insolvency or other event ultimately resulted in a permanent cessation~~letters of ~~operations at WICET, we may also be required to procure additional port capacity, as well as be liable for a termination payment under our take-or-pay agreement.~~credit.

Coronado Global Resources Inc. Form 10-Q June 30, 202045

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~~ITEM~~item 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

None.

~~None.~~

~~ITEM~~item 3. DEFAULTS UPON SENIOR SECURITIES

None.

~~None.~~

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.

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

None.

Coronado Global Resources Inc. Form 10-Q June 30, 202046

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~~None.~~

ITEM 6. EXHIBITS

The following documents are filed as exhibits hereto:

Exhibit No.		Description of Document
3.1
2.1**		Share Sale Agreement-Cork, dated as of December 22, 2017, by and among Coronado Australia Holdings Pty Ltd, Coronado Group LLC and Wesfarmers Limited (filed as Exhibit 2.1 to the Company’s Registration Statement on Form 10 (File No. 000-56044) filed on June 28, 2019 and incorporated herein by reference)

~~3.1~~		Amended and Restated Certificate of Incorporation (filed as Exhibit 3.1 to the Company’s Registration Statement on Form 10 (File No. 000-56044) filed on April 29, 2019 and incorporated herein by reference)
3.2
~~3.2~~		Amended and Restated By-Laws (filed as Exhibit 3.2 to the Company’s Registration Statement on Form 10 (File No. 000-56044) filed on April 29, 2019 and incorporated herein by reference)
15.1		Acknowledgment of Independent Registered Public Accounting Firm
~~4.1~~31.1		Stockholder’s Agreement, dated as of September 24, 2018, by and between the Company and Coronado Group (filed as Exhibit 4.1 to the Company’s Registration Statement on Form 10 (File No. 000-56044) filed on April 29, 2019 and incorporated herein by reference)

~~4.2~~		Registration Rights and Sell-Down Agreement, dated as of September 24, 2018, by and between the Company and Coronado Group (filed as Exhibit 4.2 to the Company’s Registration Statement on Form 10 (File No. 000-56044) filed on April 29, 2019 and incorporated herein by reference)

~~10.1~~		Relationship Deed, dated as of September 24, 2018, by and among the Company, Coronado Group, certain EMG Group entities and their affiliates (filed as Exhibit 10.1 to the Company’s Registration Statement on Form 10 (File No. 000-56044) filed on April 29, 2019 and incorporated herein by reference)

10.2**		Syndicated Facility Agreement, dated as of September 15, 2018, by and among Coronado Finance Pty Ltd, other affiliates of the Company and Westpac Banking Corporation (filed as Exhibit 10.2 to the Company’s Registration Statement on Form 10 (File No. 000-56044) filed on June 28, 2019 and incorporated herein by reference)

~~10.3†~~		Coronado Global Resources Inc. 2019 Short-Term Incentive Plan (filed as Exhibit 10.3 to the Company’s Registration Statement on Form 10 (File No. 000-56044) filed on April 29, 2019 and incorporated herein by reference)

~~10.4†~~		Coronado Global Resources Inc. 2018 Equity Incentive Plan (filed as Exhibit 10.4 to the Company’s Registration Statement on Form 10 (File No. 000-56044) filed on April 29, 2019 and incorporated herein by reference)

~~10.5†~~		Coronado Global Resources Inc. 2018 Non-Executive Director Plan (filed as Exhibit 10.5 to the Company’s Registration Statement on Form 10 (File No. 000-56044) filed on April 29, 2019 and incorporated herein by reference)

~~10.6†~~		Employment Agreement dated as of September 21, 2018, by and between Coronado Global Resources Inc. and Garold Spindler (filed as Exhibit 10.6 to the Company’s Registration Statement on Form 10 (File No. 000-56044) filed on April 29, 2019 and incorporated herein by reference)

~~10.7†~~		Employment Agreement dated as of August 31, 2018, by and between Coronado Curragh Pty Ltd and Ayten Saridas (filed as Exhibit 10.7 to the Company’s Registration Statement on Form 10 (File No. 000-56044) filed on April 29, 2019 and incorporated herein by reference)

~~10.8†~~		Employment Agreement dated as of September 21, 2018, by and between Coronado Global Resources Inc. and James Campbell (filed as Exhibit 10.8 to the Company’s Registration Statement on Form 10 (File No. 000-56044) filed on April 29, 2019 and incorporated herein by reference)

~~10.9†~~		Employment Agreement dated as of December 20, 2018, by and between Coronado Global Resources Inc. and Richard Rose (filed as Exhibit 10.9 to the Company’s Registration Statement on Form 10 (File No. 000-56044) filed on April 29, 2019 and incorporated herein by reference)

~~10.10†~~		Employment Agreement dated as of December 25, 2018, by and between Coronado Global Resources Inc. and Ellen Ewart (filed as Exhibit 10.10 to the Company’s Registration Statement on Form 10 (File No. 000-56044) filed on April 29, 2019 and incorporated herein by reference)

~~10.11†~~		Employment Agreement dated as of October 18, 2018, by and between Coronado Curragh Pty Ltd and Emma Pollard (filed as Exhibit 10.11 to the Company’s Registration Statement on Form 10 (File No. 000-56044) filed on April 29, 2019 and incorporated herein by reference)

~~Exhibit No.~~		~~Description of Document~~

~~10.12†~~		Form of Stock Option Award Agreement (Long Term Incentive Grant) (filed as Exhibit 10.12 to the Company’s Registration Statement on Form 10 (File No. 000-56044) filed on April 29, 2019 and incorporated herein by reference)

~~10.13†~~		Form of Performance Stock Unit Award Agreement (Long Term Incentive Grant) (filed as Exhibit 10.13 to the Company’s Registration Statement on Form 10 (File No. 000-56044) filed on April 29, 2019 and incorporated herein by reference)

~~10.14†~~		Form of Non-Executive Director Restricted Stock Unit Award Agreement (filed as Exhibit 10.14 to the Company’s Registration Statement on Form 10 (File No. 000-56044) filed on April 29, 2019 and incorporated herein by reference)

~~10.15†~~		Form of Restricted Stock Unit Award Agreement (Retention Grant) (filed as Exhibit 10.15 to the Company’s Registration Statement on Form 10 (File No. 000-56044) filed on April 29, 2019 and incorporated herein by reference)

~~10.16†~~		Form of Restricted Stock Unit Award Agreement (STIP Deferral Grant) (filed as Exhibit 10.16 to the Company’s Registration Statement on Form 10 (File No. 000-56044) filed on April 29, 2019 and incorporated herein by reference)

~~10.17†~~		Summary of Non-Executive Director Compensation (filed as Exhibit 10.17 to the Company’s Registration Statement on Form 10 (File No. 000-56044) filed on April 29, 2019 and incorporated herein by reference)

~~10.18†~~		Form of Agreement of Indemnity, Insurance and Access (filed as Exhibit 10.18 to the Company’s Registration Statement on Form 10 (File No. 000-56044) filed on April 29, 2019 and incorporated herein by reference)

~~10.19†~~		Separation Agreement and General Release, dated May 29, 2019, between Ellen Ewart and the Company and all entities owned or controlled by the Company (filed as Exhibit 10.19 to the Company’s Registration Statement on Form 10 (File No. 000-56044) filed on June 14, 2019 and incorporated herein by reference)

10.20**		Amended Coal Supply Agreement, dated as of November 6, 2009, by and between Stanwell Corporation Limited and Wesfarmers Curragh Pty Ltd (now known as Coronado Curragh Pty Ltd) (filed as Exhibit 10.20 to the Company’s Registration Statement on Form 10 (File No. 000-56044) filed on June 14, 2019 and incorporated herein by reference)

10.21**		Deed of Amendment to the Amended Coal Supply Agreement, dated as of November 21, 2016, by and between Stanwell Corporation Limited and Wesfarmers Curragh Pty Ltd (now known as Coronado Curragh Pty Ltd) (filed as Exhibit 10.21 to the Company’s Registration Statement on Form 10 (File No. 000-56044) filed on June 14, 2019 and incorporated herein by reference)

10.22**		Curragh Mine New Coal Supply Deed, dated August 14, 2018, by and between Stanwell Corporation Limited and Coronado Curragh Pty Ltd (filed as Exhibit 10.22 to the Company’s Registration Statement on Form 10 (File No. 000-56044) filed on June 14, 2019 and incorporated herein by reference)

~~10.23~~		Deed of Amendment, dated September 20, 2018 and effective September 21, 2018, among Coronado Curragh Pty Ltd, Stanwell Corporation Limited and Coronado Group LLC (filed as Exhibit 10.23 to the Company’s Registration Statement on Form 10 (File No. 000-56044) filed on June 14, 2019 and incorporated herein by reference)

~~10.24~~		Deed of Amendment, dated March 5, 2019 and effective May 21, 2019, between Coronado Curragh Pty Ltd and Stanwell Corporation Limited (filed as Exhibit 10.24 to the Company’s Registration Statement on Form 10 (File No. 000-56044) filed on June 14, 2019 and incorporated herein by reference)

~~10.25~~		Deed of Amendment, dated May 9, 2019 and effective May 21, 2019, between Coronado Curragh Pty Ltd and Stanwell Corporation Limited (filed as Exhibit 10.25 to the Company’s Registration Statement on Form 10 (File No. 000-56044) filed on June 14, 2019 and incorporated herein by reference)

~~31.1~~		Certification of the Chief Executive Officer pursuant to SEC Rules 13a-14(a) or 15d-14(a) adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2
~~31.2~~		Certification of the Group Chief Financial Officer pursuant to SEC Rules 13a-14(a) or 15d-14(a) adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

~~Exhibit No.~~		~~Description of Document~~
32.1
~~32.1~~		Certification pursuant to 18 U.S.C. Section 1350, adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
95.1		Mine Safety Disclosures
~~95.1~~101.INS		~~Mine Safety Disclosures~~Inline XBRL Instance Document
101.SCH
~~101.INS~~		~~XBRL Instance Document~~

~~101.SCH~~		Inline XBRL Taxonomy Extension Schema Document
101.CAL
~~101.CAL~~		Inline XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF
~~101.DEF~~		Inline XBRL Taxonomy Extension Definition Linkbase Document
101.LAB
~~101.LAB~~		Inline XBRL Taxonomy Extension Label Linkbase Document
101.PRE
~~101.PRE~~		Inline XBRL Taxonomy Extension Presentation Linkbase Document
104	Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

___________________________

Coronado Global Resources Inc. Form 10-Q June 30, 202047

Large accelerated filer	o☐	Accelerated filer	o☐
Non-accelerated filer	☒	Smaller reporting company	☐
~~Non-accelerated filer~~	x	~~Smaller reporting company~~	o

		Emerging growth company	o☐

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
None		None		None

								Accumulated
							Additional	Other				Non-		Total
	Members’		Common Stock		Preferred Stock		Paid in	Comprehensive		Retained		controlling		Stockholders’
	Capital		Shares	Amount	Series A	Amount	Capital	Income / (Loss)		Earnings		Interest		Equity
Balance December 31, 2018	$	—	96,651,692	967	1	—	1,107,948	(49,609	)	194,220		282		1,253,808
Net income	—		—	—	—	—	—	—		96,820		—		96,820
Other comprehensive income (net of $ 2,391 tax)	—		—	—	—	—	—	5,021		—		—		5,021
Total comprehensive income	$	—	—	—	—	—	—	5,021		96,820		—		101,841
Dividends paid	—		—	—	—	—	—	—		(299,682	)	—		(299,682	)
Balance March 31, 2019	$	—	96,651,692	967	1	—	1,107,948	(44,588	)	(8,642	)	282		1,055,967
Net income	—		—	—	—	—	—	—		117,510		(4	)	117,506
Other comprehensive income (net of $ 383 tax)	—		—	—	—	—	—	386		—		—		386
Total comprehensive income	$	—	—	—	—	—	—	386		117,510		(4	)	117,892
Share-based compensation for equity classified awards	—		—	—	—	—	93	—		—		—		93
Dividends paid	—		—	—	—	—	—	—		—		—		—
Balance June 30, 2019	$	—	96,651,692	967	1	—	1,108,041	(44,202	)	108,868		278		1,173,952

	Amount
	(US$ thousands)
Fair value of total consideration transferred:
Cash consideration	$	537,207
Contingent consideration (Value Share Mechanism)	26,552
Total consideration transferred	563,759

Recognized amounts of identifiable assets acquired, and liabilities assumed:
Current assets	$	240,966
Property, plant and equipment	851,981
Deferred income tax assets	24,432
Other long-term assets	1,831
Current liabilities	(141,611		)
Contract obligations	(306,960		)
Asset retirement obligations	(104,305		)
Other long-term liabilities	(2,575		)
Total identifiable net assets acquired	$	563,759

	Curragh (1)	Buchanan	Logan	Greenbrier		Other and Corporate		Total
	($ thousands)
Three months ended June 30, 2019
Total revenues	412,810	128,713	81,610	19,324		—		642,457
Adjusted EBITDA	151,561	60,289	18,126	1,227		(8,912	)	222,291
Net income/(loss)	91,024	34,600	7,968	(1,959	)	(14,127	)	117,506
Total assets	1,182,652	511,095	315,252	145,846		63,638		2,218,483
Capital expenditures (2)	9,341	13,476	12,671	1,279		—		36,767

Three months ended June 30, 2018
Total revenues	387,379	126,292	59,230	18,294		335		591,530
Adjusted EBITDA	99,979	35,257	10,710	(188	)	(6,570	)	139,188
Net income/(loss)	54,217	24,755	3,989	3,845		(27,484	)	59,322
Total assets	1,287,848	500,502	259,963	145,454		115,076		2,308,843
Capital expenditures (2)	17,838	7,973	4,623	381		160		30,975

Six months ended June 30, 2019
Total revenues	794,182	251,437	155,919	32,797		—		1,234,335
Adjusted EBITDA	271,709	116,401	35,291	(81	)	(17,965	)	405,355
Net income/(loss)	159,758	66,919	15,523	(5,033	)	(22,841	)	214,326
Total assets	1,182,652	511,095	315,252	145,846		63,638		2,218,483
Capital expenditures (2)	15,431	28,200	20,318	2,478		3		66,430

Six months ended June 30, 2018
Total revenues	387,379	260,501	112,655	38,188		960		799,683
Adjusted EBITDA	99,979	99,701	15,501	983		(74,336	)	141,828
Net income/(loss)	54,217	76,843	2,748	(6,176	)	(91,981	)	35,651
Total assets	1,287,848	500,502	259,963	145,454		115,076		2,308,843
Capital expenditures (2)	17,838	15,628	13,191	559		430		47,646

	Three months ended June 30, 2019
	Curragh		Buchanan	Logan	Greenbrier	Other and Corporate	Total
	(US $ thousands)
Product Groups
Metallurgical coal	$	377,016	125,837	68,053	17,766	—	588,672
Thermal coal	26,687		2,827	12,058	446	—	42,018
Total coal revenue	403,703		128,664	80,111	18,212	—	630,690
Other(1)	9,107		49	1,499	1,112	—	11,767
Total	$	412,810	128,713	81,610	19,324	—	642,457

	Three months ended June 30, 2018
	Curragh		Buchanan	Logan	Greenbrier	Other and Corporate	Total
	(US$ thousands)
Product Groups
Metallurgical coal	$	349,486	122,771	47,443	17,427	—	537,127
Thermal coal	25,048		3,521	11,787	27	—	40,383
Total coal revenue	374,534		126,292	59,230	17,454	—	577,510
Other(1)	12,845		—	—	840	335	14,020
Total	$	387,379	126,292	59,230	18,294	335	591,530

	Six months ended June 30, 2019
	Curragh		Buchanan	Logan	Greenbrier	Other and Corporate	Total
	(US $ thousands)
Product Groups
Metallurgical coal	$	727,964	245,047	131,421	31,067	—	1,135,499
Thermal coal	47,978		6,306	22,208	496	—	76,988
Total coal revenue	775,942		251,353	153,629	31,563	—	1,212,487
Other(1)	18,240		84	2,290	1,234	—	21,848
Total	$	794,182	251,437	155,919	32,797	—	1,234,335

	Six months ended June 30, 2018
	Curragh		Buchanan	Logan	Greenbrier	Other and Corporate	Total
	(US$ thousands)
Product Groups
Metallurgical coal	$	349,486	253,335	93,201	35,982	—	732,004
Thermal coal	25,048		7,127	19,454	713	—	52,342
Total coal revenue	374,534		260,462	112,655	36,695	—	784,346
Other(1)	12,845		39	—	1,493	960	15,337
Total	$	387,379	260,501	112,655	38,188	960	799,683

(US$ thousands)	June 30, 2019		December 31, 2018
Raw coal	$	54,407	$	20,106
Saleable coal	23,051		26,374
Total coal inventories	77,458		46,480
Supplies inventory	51,966		48,623
Total inventories	$	129,424	$	95,103

	June 30, 2019
(US$ thousands)	Weighted average amortization period (years)	Gross carrying amount		Accumulated amortization	Net carrying amount
Intangible assets:
Amortizing intangible assets:
Mining permits - Greenbrier	14	$	1,500	800	700
Mining permits - Logan	15	1,642		717	925
Mining permits - Buchanan	28	4,000		404	3,596
Total intangible assets		$	7,142	1,921	5,221

	December 31, 2018
(US$ thousands)	Weighted average amortization period (years)	Gross carrying amount		Accumulated amortization	Net carrying amount
Intangible assets:
Amortizing intangible assets:
Mining permits - Greenbrier	14	$	1,500	760	740
Mining permits - Logan	15	1,642		638	1,004
Mining permits - Buchanan	28	4,000		342	3,658
Total intangible assets		$	7,142	1,740	5,402

(US$ thousands)	June 30, 2019			December 31, 2018
Operating leases:
Operating lease right-of-use assets	$	64,343		—

Finance leases:
Property and equipment	7,881			7,074
Accumulated depreciation	(4,135		)	(2,914	)
Property and equipment, net	3,746			4,160

Current operating lease obligations	26,863			—
Operating lease liabilities, less current portion	51,064			—
Total operating lease liabilities	77,927			—

Current finance lease obligations	1,265			1,308
Finance lease liabilities, less current portion	1,838			2,481
Total Finance lease liabilities	3,103			3,789

Total Lease liability	$	81,030		3,789

(US$ thousands)	Operating lease			Finance lease
Year ending December 31,
2019	$	16,013		712
2020	30,436			2,568
2021	22,362			—
2022	8,434			—
2023	8,427			—
Thereafter	2,103			—
Total lease payments	87,775			3,280
Less imputed interest	(9,848		)	(177	)
Total lease liability	$	77,927		3,103

(US$ thousands)	Short-term		Long-term	Total
Coal leases contract liability	$	843	21,774	22,617
Stanwell below market coal supply agreement	34,223		202,659	236,882
	$	35,066	224,433	259,499

(US$ thousands, except per share data)	Three months ended June 30, 2019			Six months ended June 30, 2019
Numerator:
Net Income	$	117,506		$	214,326
Less: Net income attributable to Non-controlling interest	(4		)	(4		)
Net Income attributable to Company stockholders	$	117,510		$	214,330
Denominator:
Weighted-average shares of common stock outstanding	96,652			96,652
Effects of dilutive shares	3			4
Weighted average diluted shares of common stock outstanding	96,655			96,656
Earnings Per Share (US$):
Basic	$	1.22		$	2.22
Dilutive	$	1.22		$	2.22

(US$ thousands)	Level 1		Level 2	Level 3	Total
Forward commodity contracts	$	—	3,625	—	3,625
Contingent royalty	—		—	10,073	10,073
VSM	—		—	351	351
	$	—	3,625	10,424	14,049

	Quantitative Information about Level 3 Fair Value Measurements
(US$ thousands)	Fair value at June 30, 2019		Valuation technique	Unobservable input	Range (Weighted Avg.)
Contingent Royalty Liability(1)	$	10,073	Black-Scholes Options model	Gross sales price forecast per ton	$104.0 to $111.9 ($109.8)
				Export volume forecast (000’s)	5,221 tons over 21 months
				Volatility	15.6%
				Risk-free rate	2.11% to 2.37% (2.29)%
				Company credit spread	0.072

	Six months ended June 30, 2019 activity
(US$ thousands)	Account classification	Contingent Royalty Liability			VSM		Incurred royalties		Total
Beginning balance at January 1, 2019:		$	17,216		12,987		8,295		38,498
Statement of Operation activity:
Contingent liability/VSM expense incurred	Other royalties						15,105		15,105
Decrease in VSM Liability value	Other royalties				(12,636	)			(12,636	)
Decrease in Contingent Royalty Liability value	Other royalties	(7,143		)					(7,143	)
Total Statement of Operations activity:		$	(7,143	)	(12,636	)	15,105		(4,674	)
Cash paid to CONSOL/Wesfarmers							(18,384	)	(18,384	)
Balance sheet:
Royalties payable to CONSOL/Wesfarmers	Accrued expenses and other liabilities						5,016		5,016
VSM Liability	Contingent royalty consideration—current				351				351
Contingent Royalty Liability	Contingent royalty consideration	10,073							10,073
Total liabilities		$	10,073		351		5,016		15,440

	Historical Curragh in US GAAP	Post-Acquisition	For six months Ended June 30,
($ in thousands)	January 1, 2018 - March 29, 2018	March 30, 2018 - June 30, 2018	Total Pro forma 2018
Sales Volume (MMt)	2.7	3.1	5.8
Total revenues ($)	316,500	387,379	703,879
Coal revenues ($)	313,494	374,534	688,028
Average realized price per Mt sold ($/Mt)	114.3	121.2	118.8
Met Sales Volume (MMt)	1.9	2.2	4.1
Met coal Revenues ($)	289,325	349,486	638,811
Average realized met price per Mt sold ($/Mt)	150.6	158.3	154.7
Mining costs ($)	145,506	177,699	323,205
Mining cost per Mt sold ($/Mt)	53.1	57.5	55.8
Operating costs ($)	254,698	286,913	541,611
Operating costs per Mt sold ($/Mt)	94.3	92.9	93.6
Segment Adjusted EBITDA ($)	64,785	99,979	164,764

	For Six Months Ended June 30, 2019
	($ in thousands)
	Curragh		Buchanan		Logan		Greenbrier		Other / Corporate		Total Consolidated
Total costs and expenses	564,658		157,770		134,457		39,703		18,156		914,744
Less: Selling, general and administrative expense	(332	)	—		—		—		(17,979	)	(18,311	)
Less: Depreciation, depletion and amortization	(42,157	)	(22,675	)	(13,532	)	(6,738	)	(177	)	(85,279	)
Total operating costs	522,169		135,095		120,925		32,965		—		811,154
Less: Other royalties	(77,100	)	(4,284	)	(9,996	)	(2,042	)	—		(93,422	)
Less: Stanwell rebate	(94,674	)	—		—		—		—		(94,674	)
Less: Freight expenses	(78,194	)	(526	)	(6,164	)	(4,478	)	—		(89,362	)
Total mining costs	272,201		130,285		104,765		26,445		—		533,696

	For Six Months Ended June 30, 2018
	($ in thousands)
	Curragh		Buchanan		Logan		Greenbrier		Other / Corporate		Total Consolidated
Total costs and expenses	309,469		183,678		112,148		45,120		51,844		702,259
Less: Selling, general and administrative expense	(439	)	—		—		—		(51,844	)	(52,283	)
Less: Depreciation, depletion and amortization	(22,019	)	(22,864	)	(12,704	)	(6,815	)	—		(64,402	)
Total operating costs	287,011		160,814		99,444		38,305		—		585,574
Less: Other royalties	(38,242	)	(35,132	)	(7,000	)	(2,613	)	—		(82,987	)
Less: Stanwell rebate	(32,812	)	—		—		—		—		(32,812	)
Less: Freight expenses	(38,294	)	(1,805	)	(3,269	)	(1,787	)	—		(45,155	)
Total mining costs	177,663		123,877		89,175		33,905		—		424,620

	For Three Months Ended June 30,		For Six Months Ended June 30,
	2019	2018	2019		2018
	($ in thousands)
Reconciliation to Adjusted EBITDA:
Net Income	117,506	59,322	214,326		35,651
Add: Depreciation, depletion and amortization	45,508	42,594	85,279		64,402
Add: Interest expense (net of income)	9,087	18,987	17,264		25,488
Add: Other foreign exchange losses (gains)	3,157	5,290	(557	)	6,848
Add: Loss on retirement of debt	—	—	—		3,905
Add: Income tax expense	47,033	12,995	89,043		5,534
Adjusted EBITDA	222,291	139,188	405,355		141,828

	Six Months Ended June 30,
	2019		2018
	($ in thousands)
Net cash provided by operating activities	301,216		141,612
Net cash (used in) investing activities	(67,336	)	(584,335	)
Net cash (used in) provided by financing activities	(312,145	)	701,093
Net change in cash and cash equivalents	(78,265	)	258,370
Effect of exchange rate changes on cash and restricted cash	(365	)	(2,384	)
Cash and restricted cash at beginning of period	124,881		28,069
Cash and restricted cash at end of period	46,251		284,055

				Historical 1 January 2018 to 29 March 2018
	Historical					Note 2(a)		Note 2(b)				Note 2(c)		Pro Forma adjustments
	Coronado Global Resources Inc.			Curragh		Reclassification		IFRS to US GAAP Adjustments		Curragh in US GAAP		Curragh in USD and US GAAP		Pro forma adjustments		Note 2		Consolidated pro forma
	USD			AUD		AUD		AUD		AUD		USD		USD				USD
Revenues:
Coal revenues	561,363			406,696		—		—		406,696		313,494		—				874,857
Coal revenues from related parties	222,983			—		—		—		—		—		—				222,983
Other Revenues	15,337			—		—		—		—		—		3,006		(d	)	18,343
Total Revenues	799,683			406,696		—		—		406,696		313,494		3,006				1,116,183
Cost and expenses:
Cost of coal revenues (exclusive of items shown separately below)	424,620			204,132		(15,367	)	—		188,765		145,506		—				570,126
Depreciation, depletion and amortization	64,402			—		16,971		1,525		18,496		14,257		7,977		(e	)	86,636
Freight expense	45,155			—		47,769		—		47,769		36,822		—				81,977
Stanwell rebate	32,812			—		55,949		—		55,949		43,127		—				75,939
Other royalty expenses	82,987			93,886		(55,949	)	—		37,937		29,243		—				112,230
Impairment	—			(263,097	)	—		263,097		—		—		—				—
Selling, general, and administrative expenses	52,283			50,098		(47,769	)	—		2,329		1,795		(38,101	)	(f	)	15,977
Total costs and expenses	702,259			85,019		1,604		264,622		351,245		270,750		(30,124	)			942,885
Operating income	97,424			321,677		(1,604	)	(264,622	)	55,451		42,744		33,130				173,298
Other income (expenses):
Interest income	585			—		—		—		—		—		—				585
Interest expense	(26,073		)	(444,895	)	1,604		—		(443,291	)	(341,703	)	336,058		(g	)	(31,718		)
Loss on debt extinguishment	(3,905		)	—		—		—		—		—		3,905		(h	)	—
Other, net	(26,846		)	10,098		—		—		10,098		7,784		15,695		(i	)	(3,367		)
Total other income (loss), net	(56,239		)	(434,797	)	1,604		—		(433,193	)	(333,919	)	355,658				(34,500		)
Income before tax	41,185			(113,120	)	—		(264,622	)	(377,742	)	(291,175	)	388,788				138,798
Income tax expense	(5,534		)	(102,443	)	—		79,387		(23,056	)	(17,772	)	(4,314	)	(j	)	(27,620		)
Net income	35,651			(215,563	)	—		(185,235	)	(400,798	)	(308,947	)	384,474				111,178
Less: Net loss attributable to noncontrolling interest	(4		)	—		—		—		—		—		—				(4		)
Net income (loss) attributable to Coronado Global Resources Inc.	35,655			(215,563	)	—		(185,235	)	(400,798	)	(308,947	)	384,474				111,182
Earnings per share of common stock
Basic	0.37			—		—		—		—		—		—				$	1.15
Diluted	0.37			—		—		—		—		—		—				$	1.15
Average common shares outstanding
Basic	$	96,651,692		—		—		—		—		—		—				96,651,692
Diluted	$	96,656,067		—		—		—		—		—		—				96,656,067

	Coronado Global Resources Inc. (Registrant)

	By:	/s/ Ayten Saridas
	Ayten Saridas
	Group Chief Financial Officer (as duly authorized officer and as principal financial officer of the registrant)