Yes .
___________________________________________________FORM 10-Q___________________________________________________For the quarterly period ended June 30, 2022OR☐TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934______________________________________________________________________________________________________Delaware83-1780608(State or other jurisdiction ofincorporation or organization)(I.R.S. EmployerIdentification No.)Level 33, Central Plaza One, 345 Queen StreetBrisbane, Queensland, Australia4000(Address of principal executive offices)(Zip Code)(61) ___________________________________________________Title of each classTrading Symbol(s)Name of each exchange on which registeredNoneNoneNone (or(or for such shorterperiod that the registrantwas required to filesuch reports), and (2) has has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).Yes ☒ No ☐Indicate by check mark whether the registrant is a large accelerated filer,an accelerated filer, a non-acceleratednon-accelerated filer, a smaller reporting “large “largeacceleratedfiler,” “accelerated “acceleratedfiler,” “smaller “smallerreportingLarge accelerated filer☐Accelerated filer☒Non-accelerated filer☐Smaller reporting company☐Emerging growth company☐ $0.01$0.01 per share, outstanding on July 31, 2022,2023, including shares of common stock underlying 167,645,373.
i
Coronado Global Resources Inc. Form 10-Q June 30, 20222
Unaudited Condensed Consolidated Statements of Operations and Comprehensive Income(In US$ thousands, except share data)
|
|
|
| Three months ended |
| Six months ended | ||||||||
|
| Note |
| 2022 |
| 2021 |
| 2022 |
| 2021 | ||||
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Coal revenues |
|
|
| $ | 1,020,997 |
| $ | 384,470 |
| $ | 1,957,625 |
| $ | 683,631 |
Coal revenues from related parties |
|
|
|
| 0 |
|
| 29,294 |
|
| 0 |
|
| 97,335 |
Other revenues |
|
|
|
| 11,707 |
|
| 10,492 |
|
| 22,204 |
|
| 19,401 |
Total revenues |
| 3 |
|
| 1,032,704 |
|
| 424,256 |
|
| 1,979,829 |
|
| 800,367 |
Costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of coal revenues (exclusive of items shown separately below) |
|
|
|
| 397,463 |
|
| 306,155 |
|
| 754,963 |
|
| 580,258 |
Depreciation, depletion and amortization |
|
|
|
| 51,384 |
|
| 41,212 |
|
| 89,393 |
|
| 94,293 |
Freight expenses |
|
|
|
| 67,026 |
|
| 55,906 |
|
| 126,290 |
|
| 108,047 |
Stanwell rebate |
|
|
|
| 40,532 |
|
| 15,076 |
|
| 69,585 |
|
| 30,895 |
Other royalties |
|
|
|
| 79,348 |
|
| 23,173 |
|
| 162,380 |
|
| 44,120 |
Selling, general, and administrative expenses |
|
|
|
| 10,376 |
|
| 7,431 |
|
| 18,252 |
|
| 13,206 |
Restructuring costs |
|
|
|
| 0 |
|
| 2,300 |
|
| 0 |
|
| 2,300 |
Total costs and expenses |
|
|
|
| 646,129 |
|
| 451,253 |
|
| 1,220,863 |
|
| 873,119 |
Other (expense) income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net |
|
|
|
| (17,482) |
|
| (16,596) |
|
| (34,814) |
|
| (31,731) |
Loss on debt extinguishment |
|
|
|
| 0 |
|
| (5,744) |
|
| 0 |
|
| (5,744) |
(Increase) decrease in provision for discounting and credit losses |
|
|
|
| (156) |
|
| 1,866 |
|
| (584) |
|
| 5,644 |
Other, net |
|
|
|
| 25,083 |
|
| 570 |
|
| 22,293 |
|
| (2,358) |
Total other income (expense), net |
|
|
|
| 7,445 |
|
| (19,904) |
|
| (13,105) |
|
| (34,189) |
Income (loss) before tax |
|
|
|
| 394,020 |
|
| (46,901) |
|
| 745,861 |
|
| (106,941) |
Income tax (expense) benefit |
| 9 |
|
| (102,025) |
|
| (8,184) |
|
| (183,968) |
|
| 10,884 |
Net income (loss) |
|
|
|
| 291,995 |
|
| (55,085) |
|
| 561,893 |
|
| (96,057) |
Less: Net loss attributable to noncontrolling interest |
|
|
|
| 0 |
|
| 0 |
|
| 0 |
|
| (2) |
Net income (loss) attributable to Coronado Global Resources Inc. |
|
|
| $ | 291,995 |
| $ | (55,085) |
| $ | 561,893 |
| $ | (96,055) |
Other comprehensive income, net of income taxes: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency translation adjustment |
| 12 |
|
| (50,168) |
|
| (4,221) |
|
| (33,910) |
|
| (8,830) |
Net gain on cash flow hedges, net of tax |
|
|
|
| 0 |
|
| 1,323 |
|
| 0 |
|
| 6,249 |
Total other comprehensive loss |
|
|
|
| (50,168) |
|
| (2,898) |
|
| (33,910) |
|
| (2,581) |
Total comprehensive income (loss) |
|
|
|
| 241,827 |
|
| (57,983) |
|
| 527,983 |
|
| (98,638) |
Less: Net loss attributable to noncontrolling interest |
|
|
|
| 0 |
|
| 0 |
|
| 0 |
|
| (2) |
Total comprehensive income (loss) attributable to Coronado Global Resources Inc. |
|
|
| $ | 241,827 |
| $ | (57,983) |
| $ | 527,983 |
| $ | (98,636) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per share of common stock |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
| 10 |
|
| 1.74 |
|
| (0.36) |
|
| 3.35 |
|
| (0.66) |
Diluted |
| 10 |
|
| 1.74 |
|
| (0.36) |
|
| 3.35 |
|
| (0.66) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes to unaudited condensed consolidated financial statements. | ||||||||||||||
Coronado Global Resources Inc. Form 10-Q June 30, 20223
Unaudited Condensed Consolidated Statements of Stockholders’ Equity
(In US$ thousands, except share data)
|
|
| Common stock |
| Preferred stock |
| Additional |
| Accumulated other |
|
|
|
|
| Total | ||||
|
|
|
|
|
|
|
|
|
|
| paid in |
| comprehensive |
| Retained |
| Noncontrolling |
| stockholders |
|
|
| Shares |
| Amount |
| Series A |
| Amount |
| capital |
| losses |
| earnings |
| interest |
| equity |
Balance December 31, 2021 |
|
| 167,645,373 | $ | 1,677 |
| 1 | $ | 0 | $ | 1,089,547 | $ | (44,228) | $ | 30,506 | $ | 0 | $ | 1,077,502 |
Net income |
|
| — |
| 0 |
| — |
| 0 |
| 0 |
| 0 |
| 269,898 |
| 0 |
| 269,898 |
Other comprehensive income |
|
| — |
| 0 |
| — |
| 0 |
| 0 |
| 16,258 |
| 0 |
| 0 |
| 16,258 |
Total comprehensive income |
|
| — |
| 0 |
| — |
| 0 |
| 0 |
| 16,258 |
| 269,898 |
| 0 |
| 286,156 |
Share-based compensation for equity classified awards |
|
| — |
| 0 |
| — |
| 0 |
| 84 |
| 0 |
| 0 |
| 0 |
| 84 |
Dividends |
| 4 | — |
| 0 |
| — |
| 0 |
| 0 |
| 0 |
| (150,881) |
| 0 |
| (150,881) |
Balance March 31, 2022 |
|
| 167,645,373 | $ | 1,677 |
| 1 | $ | 0 | $ | 1,089,631 | $ | (27,970) | $ | 149,523 | $ | 0 | $ | 1,212,861 |
Net income |
|
| — |
| 0 |
| — |
| 0 |
| 0 |
| 0 |
| 291,995 |
| 0 |
| 291,995 |
Other comprehensive loss |
|
| — |
| 0 |
| — |
| 0 |
| 0 |
| (50,168) |
| 0 |
| 0 |
| (50,168) |
Total comprehensive (loss) income |
|
| — |
| 0 |
| — |
| 0 |
| 0 |
| (50,168) |
| 291,995 |
| 0 |
| 241,827 |
Issuance of common stock, net |
|
| — |
| 0 |
| — |
| 0 |
| 0 |
| 0 |
| 0 |
| 0 |
| 0 |
Share-based compensation for equity classified awards |
|
| — |
| 0 |
| — |
| 0 |
| 1,731 |
| 0 |
| 0 |
| 0 |
| 1,731 |
Dividends |
| 4 | — |
| 0 |
| — |
| 0 |
| 0 |
| 0 |
| (200,040) |
| 0 |
| (200,040) |
Balance June 30, 2022 |
|
| 167,645,373 | $ | 1,677 |
| 1 | $ | 0 | $ | 1,091,362 | $ | (78,138) | $ | 241,478 | $ | 0 | $ | 1,256,379 |
Coronado Global Resources Inc. Form 10-Q June 30, 20224
|
|
| Common stock |
| Preferred stock |
| Additional |
| Accumulated other |
|
|
|
|
| Total | ||||
|
|
|
|
|
|
|
|
|
|
| paid in |
| comprehensive |
| (Accumulated |
| Noncontrolling |
| stockholders |
|
|
| Shares |
| Amount |
| Series A |
| Amount |
| capital |
| losses |
| losses) |
| interest |
| equity |
Balance December 31, 2020 |
|
| 138,387,890 | $ | 1,384 |
| 1 | $ | 0 | $ | 993,052 | $ | (28,806) | $ | (158,919) | $ | 152 | $ | 806,863 |
Net loss |
|
| — |
| 0 |
| — |
| 0 |
| 0 |
| 0 |
| (40,970) |
| (2) |
| (40,972) |
Other comprehensive income (net of $2,111 tax) |
|
| — |
| 0 |
| — |
| 0 |
| 0 |
| 317 |
| 0 |
| 0 |
| 317 |
Total comprehensive income (loss) |
|
| — |
| 0 |
| — |
| 0 |
| 0 |
| 317 |
| (40,970) |
| (2) |
| (40,655) |
Share-based compensation for equity classified awards |
|
| — |
| 0 |
| — |
| 0 |
| (538) |
| 0 |
| 0 |
| 0 |
| (538) |
Acquisition of non-controlling interest |
|
| — |
| 0 |
| — |
| 0 |
| (703) |
| 0 |
| 0 |
| (150) |
| (853) |
Balance March 31, 2021 |
|
| 138,387,890 | $ | 1,384 |
| 1 | $ | 0 | $ | 991,811 | $ | (28,489) | $ | (199,889) | $ | 0 | $ | 764,817 |
Net loss |
|
| — |
| 0 |
| — |
| 0 |
| 0 |
| 0 |
| (55,085) |
| 0 |
| (55,085) |
Other comprehensive loss (net of $24 tax) |
|
| — |
| 0 |
| — |
| 0 |
| 0 |
| (2,898) |
| 0 |
| 0 |
| (2,898) |
Total comprehensive loss |
|
| — |
| 0 |
| — |
| 0 |
| 0 |
| (2,898) |
| (55,085) |
| 0 |
| (57,983) |
Issuance of common stock, net |
|
| 29,257,483 |
| 293 |
| — |
| 0 |
| 97,448 |
| 0 |
| 0 |
| 0 |
| 97,741 |
Share-based compensation for equity classified awards |
|
| — |
| 0 |
| — |
| 0 |
| 737 |
| 0 |
| 0 |
| 0 |
| 737 |
Balance June 30, 2021 |
|
| 167,645,373 | $ | 1,677 |
| 1 | $ | 0 | $ | 1,089,996 | $ | (31,387) | $ | (254,974) | $ | 0 | $ | 805,312 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes to unaudited condensed consolidated financial statements. | |||||||||||||||||||
Coronado Global Resources Inc. Form 10-Q June 30, 20225
Unaudited Condensed Consolidated Statements of Cash Flows(In US$ thousands)
|
| Six months ended | ||||
|
| June 30, | ||||
|
| 2022 |
| 2021 | ||
Cash flows from operating activities: |
|
|
|
|
|
|
Net income (loss) |
| $ | 561,893 |
| $ | (96,057) |
Adjustments to reconcile net income to cash and restricted cash provided by operating activities: |
|
|
|
|
|
|
Depreciation, depletion and amortization |
|
| 89,393 |
|
| 94,293 |
Amortization of right of use asset - operating leases |
|
| 4,501 |
|
| 4,478 |
Amortization of deferred financing costs |
|
| 968 |
|
| 2,491 |
Loss on debt extinguishment |
|
| 0 |
|
| 5,744 |
Non-cash interest expense |
|
| 15,622 |
|
| 13,544 |
Amortization of contract obligations |
|
| (21,947) |
|
| (16,747) |
Loss on disposal of property, plant and equipment |
|
| 257 |
|
| 529 |
Equity-based compensation expense |
|
| 1,815 |
|
| 199 |
Deferred income taxes |
|
| 42,061 |
|
| (7,031) |
Reclamation of asset retirement obligations |
|
| (3,601) |
|
| (1,562) |
Increase (decrease) in provision for discounting and credit losses |
|
| 584 |
|
| (5,644) |
Changes in operating assets and liabilities: |
|
|
|
|
|
|
Accounts receivable - including related party receivables |
|
| (304,707) |
|
| 45,205 |
Inventories |
|
| 9,700 |
|
| (10,630) |
Other current assets |
|
| (18,460) |
|
| (3,601) |
Accounts payable |
|
| (5,160) |
|
| 32,979 |
Accrued expenses and other current liabilities |
|
| 71,595 |
|
| 611 |
Operating lease liabilities |
|
| (4,163) |
|
| (5,509) |
Income tax payable |
|
| 73,114 |
|
| 0 |
Change in other liabilities |
|
| 4,827 |
|
| 3,632 |
Net cash provided by operating activities |
|
| 518,292 |
|
| 56,924 |
Cash flows from investing activities: |
|
|
|
|
|
|
Capital expenditures |
|
| (87,875) |
|
| (58,307) |
Purchase of restricted deposits |
|
| (6,251) |
|
| (84,342) |
Redemption of restricted deposits |
|
| 606 |
|
| 19,726 |
Net cash used in investing activities |
|
| (93,520) |
|
| (122,923) |
Cash flows from financing activities: |
|
|
|
|
|
|
Proceeds from interest bearing liabilities and other financial liabilities |
|
| 0 |
|
| 411,524 |
Debt issuance costs and other financing costs |
|
| 0 |
|
| (15,143) |
Principal payments on interest bearing liabilities and other financial liabilities |
|
| (7,085) |
|
| (365,413) |
Principal payments on finance lease obligations |
|
| (61) |
|
| 0 |
Premiums paid on early redemption of debt |
|
| (22) |
|
| 0 |
Dividends paid |
|
| (348,423) |
|
| 0 |
Proceeds from stock issuance, net |
|
| 0 |
|
| 97,741 |
Net cash (used in) provided by financing activities |
|
| (355,591) |
|
| 128,709 |
Net increase in cash and restricted cash |
|
| 69,181 |
|
| 62,710 |
Effect of exchange rate changes on cash and restricted cash |
|
| (21,228) |
|
| 5,215 |
Cash and restricted cash at beginning of period |
|
| 437,931 |
|
| 45,736 |
Cash and restricted cash at end of period |
| $ | 485,884 |
| $ | 113,661 |
Supplemental disclosure of cash flow information: |
|
|
|
|
|
|
Cash payments for interest |
| $ | 18,338 |
| $ | 13,006 |
Cash paid (refund) for taxes |
| $ | 69,388 |
| $ | (4,433) |
Restricted cash |
| $ | 251 |
| $ | 251 |
See accompanying notes to unaudited condensed consolidated financial statements. | ||||||
Coronado Global Resources Inc. Form 10-Q June 30, 20226
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
1.Description of Business, Basis of Presentation
(a)Description of the Business
Coronado Global Resources Inc. is a global producer, marketer, and exporter of a full range of metallurgical coals, an essential element in the production of steel. The Company has a portfolio of operating mines and development projects in Queensland, Australia, and in the states of Pennsylvania, Virginia and West Virginia in the United States, or U.S.
(b)Basis of Presentation
The interim unaudited condensed consolidated financial statements have been prepared in accordance with the requirements of U.S. generally accepted accounting principles, or U.S. GAAP, and with the instructions to Form 10-Q and Article 10 of Regulation S-X related to interim financial reporting issued by the Securities and Exchange Commission, or the SEC. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements and should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K filed with the SEC and the Australian Securities Exchange, or the ASX, on February 22, 2022.
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., its wholly-owned subsidiaries and subsidiaries in which it has a controlling interest. References to “US$” or “USD” are references to U.S. dollars. References to “A$” or “AUD” are references to Australian dollars, the lawful currency of the Commonwealth of Australia. The “Company” and “Coronado” are used interchangeably to refer to Coronado Global Resources Inc. and its subsidiaries, collectively, or to Coronado Global Resources Inc., as appropriate to the context. 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 upon consolidation.
In the opinion of management, these interim financial statements reflect all normal, recurring adjustments necessary for the fair presentation of the Company’s financial position, results of operations, comprehensive income, cash flows and changes in equity for the periods presented. Balance sheet information presented herein as of June30, 2023 andDecember 31, 2021 has been derived from the Company’s audited consolidated balance sheet at that date. The Company’s results 2022
2.Summary of Significant Accounting Policies
21, 2023.
3.Segment Information
Coronado Global Resources Inc.
unaudited Condensed Consolidated Financial Statements.
|
|
| Australia |
|
| United States |
|
| Other and Corporate |
|
| Total |
|
|
| (in US$ thousands) | |||||||||
Three months ended June 30, 2022 |
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues |
| $ | 578,388 |
| $ | 454,316 |
| $ | — |
| $ | 1,032,704 |
Adjusted EBITDA |
|
| 196,315 |
|
| 252,394 |
|
| (10,349) |
|
| 438,360 |
Net income (loss) |
|
| 127,905 |
|
| 181,146 |
|
| (17,056) |
|
| 291,995 |
Total assets |
|
| 1,473,795 |
|
| 1,044,753 |
|
| 240,943 |
|
| 2,759,491 |
Capital expenditures |
|
| 30,755 |
|
| 20,673 |
|
| 236 |
|
| 51,664 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended June 30, 2021 |
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues |
| $ | 251,432 |
| $ | 172,824 |
| $ | — |
| $ | 424,256 |
Adjusted EBITDA |
|
| (13,880) |
|
| 39,434 |
|
| (7,493) |
|
| 18,061 |
Net (loss) income |
|
| (63,507) |
|
| 18,323 |
|
| (9,901) |
|
| (55,085) |
Total assets |
|
| 1,115,815 |
|
| 872,345 |
|
| 168,427 |
|
| 2,156,587 |
Capital expenditures |
|
| 13,180 |
|
| 16,087 |
|
| 435 |
|
| 29,702 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months ended June 30, 2022 |
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues |
| $ | 1,183,686 |
| $ | 796,143 |
| $ | 0 |
| $ | 1,979,829 |
Adjusted EBITDA |
|
| 435,284 |
|
| 432,294 |
|
| (18,231) |
|
| 849,347 |
Net income (loss) |
|
| 278,052 |
|
| 304,113 |
|
| (20,272) |
|
| 561,893 |
Total assets |
|
| 1,473,795 |
|
| 1,044,753 |
|
| 240,943 |
|
| 2,759,491 |
Capital expenditures |
|
| 46,716 |
|
| 44,422 |
|
| 329 |
|
| 91,467 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months ended June 30, 2021 |
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues |
| $ | 489,726 |
| $ | 310,641 |
| $ | 0 |
| $ | 800,367 |
Adjusted EBITDA |
|
| (36,937) |
|
| 75,963 |
|
| (13,324) |
|
| 25,702 |
Net (loss) income |
|
| (105,838) |
|
| 28,713 |
|
| (18,932) |
|
| (96,057) |
Total assets |
|
| 1,115,815 |
|
| 872,345 |
|
| 168,427 |
|
| 2,156,587 |
Capital expenditures |
|
| 20,214 |
|
| 30,625 |
|
| 1,468 |
|
| 52,307 |
Coronado Global Resources Inc. Form 10-Qbelow:
The reconciliations of revenues
|
| Three months ended |
| Six months ended | ||||||||
|
| June 30, |
| June 30, | ||||||||
|
| 2022 |
| 2021 |
| 2022 |
| 2021 | ||||
|
| (in US$ thousands) |
| (in US$ thousands) | ||||||||
Net income (loss) |
| $ | 291,995 |
| $ | (55,085) |
| $ | 561,893 |
| $ | (96,057) |
Depreciation, depletion and amortization |
|
| 51,384 |
|
| 41,212 |
|
| 89,393 |
|
| 94,293 |
Interest expense (net of income) |
|
| 17,482 |
|
| 16,596 |
|
| 34,814 |
|
| 31,731 |
Other foreign exchange (gains) losses |
|
| (25,138) |
|
| 140 |
|
| (23,147) |
|
| 1,889 |
Loss on extinguishment of debt |
|
| 0 |
|
| 5,744 |
|
| 0 |
|
| 5,744 |
Income tax expense (benefit) |
|
| 102,025 |
|
| 8,184 |
|
| 183,968 |
|
| (10,884) |
Restructuring costs |
|
| 0 |
|
| 2,300 |
|
| 0 |
|
| 2,300 |
Losses on idled assets held for sale(1) |
|
| 456 |
|
| 836 |
|
| 1,842 |
|
| 2,330 |
Increase (decrease) in provision for discounting and credit losses |
|
| 156 |
|
| (1,866) |
|
| 584 |
|
| (5,644) |
Consolidated Adjusted EBITDA |
| $ | 438,360 |
| $ | 18,061 |
| $ | 849,347 |
| $ | 25,702 |
|
|
| Six months ended June 30, | |||
|
|
| 2022 |
|
| 2021 |
|
|
| (in US$ thousands) | |||
Capital expenditures per Condensed Consolidated Statements of Cash Flows |
| $ | 87,875 |
| $ | 58,307 |
Accruals for capital expenditures |
|
| 11,067 |
|
| 0 |
Payment for capital acquired in prior periods |
|
| (7,475) |
|
| (6,000) |
Capital expenditures per segment detail |
| $ | 91,467 |
| $ | 52,307 |
|
|
| Three months ended June 30, 2022 | ||||||
|
|
| Australia |
|
| United States |
|
| Total |
|
|
| (in US$ thousands) | ||||||
Product Groups: |
|
|
|
|
|
|
|
|
|
Metallurgical coal |
| $ | 543,345 |
| $ | 450,858 |
| $ | 994,203 |
Thermal coal |
|
| 25,001 |
|
| 1,793 |
|
| 26,794 |
Total coal revenue |
|
| 568,346 |
|
| 452,651 |
|
| 1,020,997 |
Other(1) |
|
| 10,042 |
|
| 1,665 |
|
| 11,707 |
Total |
| $ | 578,388 |
| $ | 454,316 |
| $ | 1,032,704 |
Three months ended June 30, 2021 Australia United States Total (in US$ thousands) Product Groups: Metallurgical coal $ 221,659 $ 168,472 $ 390,131 Thermal coal 21,090 2,543 23,633 Total coal revenue 242,749 171,015 413,764 Other(1) 8,683 1,809 10,492 Total $ 251,432 $ 172,824 $ 424,256 Six months ended June 30, 2022 Australia United States Total (in US$ thousands) Product Groups Metallurgical coal $ 1,097,353 $ 788,579 $ 1,885,932 Thermal coal 67,291 4,402 71,693 Total coal revenue 1,164,644 792,981 1,957,625 Other(1) 19,042 3,162 22,204 Total $ 1,183,686 $ 796,143 $ 1,979,829 Six months ended June 30, 2021 Australia United States Total (in US$ thousands) Product Groups Metallurgical coal $ 428,110 $ 305,456 $ 733,566 Thermal coal 44,089 3,311 47,400 Total coal revenue 472,199 308,767 780,966 Other(1) 17,527 1,874 19,401 Total $ 489,726 $ 310,641 $ 800,367 (in US$ thousands)Coronado Global Resources Inc. Form 10-Q20229
Coronado Global Resources Inc. Form 10-Q June 30, 202210
Assets Held for Sale
(in US$ thousands) |
| June 30, 2022 |
| December 31, | ||
Raw coal |
| $ | 10,234 |
| $ | 17,334 |
Saleable coal |
|
| 37,971 |
|
| 42,006 |
Total coal inventories |
|
| 48,205 |
|
| 59,340 |
Supplies inventory |
|
| 59,234 |
|
| 59,582 |
Total inventories |
| $ | 107,439 |
| $ | 118,922 |
6.Property, Plant andEquipment
(in US$ thousands) |
| June 30, 2022 |
| December 31, | ||
Land |
| $ | 27,197 |
| $ | 27,853 |
Buildings and improvements |
|
| 92,604 |
|
| 88,079 |
Plant, machinery, mining equipment and transportation vehicles |
|
| 992,728 |
|
| 963,272 |
Mineral rights and reserves |
|
| 374,326 |
|
| 374,326 |
Office and computer equipment |
|
| 9,274 |
|
| 8,718 |
Mine development |
|
| 557,596 |
|
| 566,201 |
Asset retirement obligation asset |
|
| 70,584 |
|
| 75,215 |
Construction in process |
|
| 49,257 |
|
| 42,055 |
|
|
| 2,173,566 |
|
| 2,145,719 |
Less accumulated depreciation, depletion and amortization |
|
| 810,194 |
|
| 748,356 |
Net property, plant and equipment |
| $ | 1,363,372 |
| $ | 1,397,363 |
Coronado Global Resources Inc. Form 10-Q June 30, 202211
8.
The following is a summary of interest-bearing liabilities at June 30, 2022: | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |
(in US$ thousands) |
|
| June 30, 2022 |
|
| December 31, 2021 |
| Weighted Average Interest Rate at June 30, 2022 |
| Final Maturity | ||
10.75% Senior Secured Notes |
| $ | 314,453 |
| $ | 315,000 |
| 12.14% | (2) |
| 2026 | |
ABL Facility |
|
| 0 |
|
| 0 |
|
|
|
| 2024 | |
Discount and debt issuance costs(1) |
|
| (13,505) |
|
| (14,831) |
|
|
|
|
| |
Total interest bearing liabilities |
| $ | 300,948 |
| $ | 300,169 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
| |
(1) Debt issuance costs incurred on the establishment of the ABL Facility has been included within "Other non-current assets" on the unaudited Condensed Consolidated Balance Sheet. | ||||||||||||
(2) Represents the effective interest rate. |
|
|
|
|
|
|
|
|
|
|
| |
As of June 30, 2022,Company’s aggregate principal amount establishmentof the 10.750% ABL Facility has been included within"Other non-current assets" in the
For
Debt issuance costs, recorded as a direct deduction from the face amount of the Notes,
2024
Debt
2022, respectively.
Coronado Global Resources Inc. Form 10-QSubsequent to June 30, 202212
9.Income Taxes
For the six months ended June 30, 2022 and 2021,2023, the Company satisfiedall conditions precedent under a New ABLFacility at which
Income tax benefit of $10.9 $
At December 31, 2021, the Australian Operations had tax losses carried forward of $27.0 million (tax effected), which are indefinite lived and included in deferred tax assets. It is anticipated that these tax losses will be fully utilized in 2022 and both the Australian Operations and U.S. Operations would be in tax payable positions. In addition, a company, which is not part of the Australian tax consolidated group, had tax losses carried forward of $8.1 million (tax effected) for which a full valuation allowance has been recognized.
Coronado Global Resources Inc. Form 10-Q June 30, 202213
10.Earnings per Share
Basic and diluted earnings per share was calculated as follows (in thousands, except per share data): | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Three months ended June 30, |
| Six months ended June 30, | ||||||||
(in US$ thousands, except per share data) |
| 2022 |
| 2021 |
| 2022 |
| 2021 | ||||
Numerator: |
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
| $ | 291,995 |
| $ | (55,085) |
| $ | 561,893 |
| $ | (96,057) |
Less: Net loss attributable to Non-controlling interest |
|
| 0 |
|
| 0 |
|
| 0 |
|
| (2) |
Net income (loss) attributable to Company stockholders |
| $ | 291,995 |
| $ | (55,085) |
| $ | 561,893 |
| $ | (96,055) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Denominator (in thousands): |
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average shares of common stock outstanding |
|
| 167,645 |
|
| 152,877 |
|
| 167,645 |
|
| 145,633 |
Effects of dilutive shares |
|
| 168 |
|
| 0 |
|
| 192 |
|
| 0 |
Weighted average diluted shares of common stock outstanding |
|
| 167,813 |
|
| 152,877 |
|
| 167,837 |
|
| 145,633 |
Earnings (Loss) Per Share (US$): |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
| 1.74 |
|
| (0.36) |
|
| 3.35 |
|
| (0.66) |
Dilutive |
|
| 1.74 |
|
| (0.36) |
|
| 3.35 |
|
| (0.66) |
11.
Coronado Global Resources Inc.
2023:20222023 and December 31, 2021:2022:2022, 2023,there were 0 isas of June 30, 2023 was approximately $327.0 $observablequoted market data12.Accumulated Other Comprehensive Losses2022:(in US$ thousands)Foreign currency translation adjustments December 31, 2021$(44,228)Net current-period other comprehensive income (loss):Loss in other comprehensive income (loss) before reclassifications(12,918)Loss on long-term intra-entity foreign currency transactions(20,992)Total net current-period other comprehensive gain(33,910)Balance at June 30, 2022$(78,138)Coronado Global Resources Inc. Form 10-Q June 30, 20222023
13.Form 10-Q June 30, 202317
(in US$ thousands) |
|
|
|
| Amount |
Year ending December 31, |
|
|
|
|
|
2022 |
|
|
| $ | 4,182 |
2023 |
|
|
|
| 4,984 |
2024 |
|
|
|
| 4,891 |
2025 |
|
|
|
| 4,752 |
2026 |
|
|
|
| 4,684 |
Thereafter |
|
|
|
| 23,666 |
Total |
|
|
| $ | 47,159 |
|
|
|
|
|
|
Mineral leases are not in scope of ASC 842 and continue to be accounted for under the guidance in ASC 932, Extractive Activities – Mining. | |||||
|
|
|
|
|
|
14.Contingencies
At June 30, 2022,
Restricted deposits represent cash deposits held at third parties as required by certain agreements entered into by the Company December31, 2022,respectively,to provide cash collateral. The Company had cash collateral in the form of deposits in the amount of $86.0 million and $81.0 million as of June 30, 2022 and December 31, 2021, respectively, to provide back-to-backback-to-
Coronado Global Resources Inc.
REPORT OF INDEPENDENT REGISTERED PUBLICACCOUNTING FIRM
ITEM 2.MANAGEMENT’S DISCUSSIONAND ANALYSISOF FINANCIALCONDITION ANDRESULTSOF
21, 2023.
tires, as the resultof inflationary pressures or otherwise;
Coronado Global Resources Inc. Form 10-Q June 30, 202219
our indebtedness and ability tocomply with the covenants and otherundertakings under the agreements
the prices we receive for our coal;
coal;
concerns about the environmental impacts of coal combustion, including possible impacts on global climate issues, which could result in increased regulation of coal combustion and requirements to reduce greenhouse gas, or GHG, emissions in many jurisdictions , which could significantly affect demand for our products or our securities and reduced access to capital and insurance;
Wemakemanyofourforward-lookingstatementsbasedonouroperatingbudgetsandforecasts,whichare
For
The ongoing trade constraints for Russian coal and elevated demand for thermal coal resulted in elevated global prices of coal during the three months ended June 30, 2022, which translated to record quarterly revenues and average realized Met price per Mt sold in the history of the Company, $85.6 million and $54.7 per Mt sold higher than the previous records achieved in the March 2022 quarter, respectively.
Coronado has continued to take advantage of its unique geographical diversification as a Met coal supplier of scale to meet the requirements of steel customers across the globe. Our U.S. Operations have taken advantage of current unique market fundamentals created by the trade restrictions on Russian coal by switching coal sales from China to Europe providing higher returns for our products.
Coal revenues of $2.0 billion 96.3%, respectively,for the six months ended June 30, 2022 increased by 150.7% compared to the same period in 2021, driven by increased average realized Met price per Mt sold from $99.8 to $292.8. Sales volumes were lower2022.
Coronado Global Resources Inc. Form 10-Q June 30, 202221
Dividends
coal availability, higher maintenance cost and higher sales related costs, such as royalties, freight and demurrage costs.
Dividends
OnApril 8, 2022, and June 21, 2022, Coronado 5,2023,theCompanysettleditspreviouslydeclareddividends totaling $348.4 of$8.4million,whichwerepaidto
facility fully undrawn.
rates every quarter.
Coal revenues are shown on our statementsegment; and (vii)
Coronado Global Resources Inc. Form 10-Q June 30, 202222
recurring items that we exclude inanalyzing each of our segments’operating performance. Adjusted EBITDAis
Three Months Ended June 30, 20222023 Compared to ThreeMonths Ended June 30, 2021
2022
Net income2023,of $161.5million,a decreaseof $276.8
Although cokinglargely due to lower coal index prices declined during the three months ended June 30, 2022, it remained above historical averages, which, combined with a large portion of our coal sales priced on a three-month lag basis, resulted in record quarterly average realized Met price per Mt sold of $321.2 for the three months ended June 30, 2022, which was 205.6% higher compared to $105.1 per Mt sold for the same period in 2021.
Adjusted EBITDA for the three months ended June 30, 2022 of $438.4million, an increase of $420.3 million compared to $18.1 million for the three months ended June 30, 2021, driven by higher coal
costs.
coal revenues (exclusive of items
|
| Three months ended June 30, | |||||||||
|
|
| 2022 |
|
| 2021 |
|
| Change |
| % |
|
| (in US$ thousands) | |||||||||
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
Coal revenues |
| $ | 1,020,997 |
| $ | 413,764 |
| $ | 607,233 |
| 146.8% |
Other revenues |
|
| 11,707 |
|
| 10,492 |
|
| 1,215 |
| 11.6% |
Total revenues |
|
| 1,032,704 |
|
| 424,256 |
|
| 608,448 |
| 143.4% |
Costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
Cost of coal revenues (exclusive of items shown separately below) |
|
| 397,463 |
|
| 306,155 |
|
| 91,308 |
| 29.8% |
Depreciation, depletion and amortization |
|
| 51,384 |
|
| 41,212 |
|
| 10,172 |
| 24.7% |
Freight expenses |
|
| 67,026 |
|
| 55,906 |
|
| 11,120 |
| 19.9% |
Stanwell rebate |
|
| 40,532 |
|
| 15,076 |
|
| 25,456 |
| 168.9% |
Other royalties |
|
| 79,348 |
|
| 23,173 |
|
| 56,175 |
| 242.4% |
Selling, general, and administrative expenses |
|
| 10,376 |
|
| 7,431 |
|
| 2,945 |
| 39.6% |
Restructuring costs |
|
| — |
|
| 2,300 |
|
| (2,300) |
| (100.0%) |
Total costs and expenses |
|
| 646,129 |
|
| 451,253 |
|
| 194,876 |
| 43.2% |
Other income (expenses): |
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net |
|
| (17,482) |
|
| (16,596) |
|
| (886) |
| 5.3% |
Loss on debt extinguishment |
|
| — |
|
| (5,744) |
|
| 5,744 |
| (100.0%) |
(Increase) decrease in provision for discounting and credit losses |
|
| (156) |
|
| 1,866 |
|
| (2,022) |
| (108.4%) |
Other, net |
|
| 25,083 |
|
| 570 |
|
| 24,513 |
| 4,300.5% |
Total other expense, net |
|
| 7,445 |
|
| (19,904) |
|
| 27,349 |
| (137.4%) |
Net income (loss) before tax |
|
| 394,020 |
|
| (46,901) |
|
| 440,921 |
| (940.1%) |
Income tax (expense) benefit |
|
| (102,025) |
|
| (8,184) |
|
| (93,841) |
| 1,146.6% |
Net income (loss) |
|
| 291,995 |
|
| (55,085) |
|
| 347,080 |
| (630.1%) |
Net income (loss) attributable to Coronado Global Resources, Inc. |
| $ | 291,995 |
| $ | (55,085) |
| $ | 347,080 |
| (630.1%) |
shown separately below)
Cost of Coal Revenues (Exclusive of Items Shown Separately Below)
Cost of coal revenues comprise costs related to produced tons sold, along with changes in both the volumes and carrying values of coal inventory. Cost of coal revenues include items such as direct operating costs, which includes employee-related costs, materials and supplies, contractor services, coal handling and preparation costs and production taxes.
Total cost of coal revenues was $397.5million for the three months ended June 30, 2022, an increase of $91.3million, or 29.8%,compared to $306.2 million for the three months ended June 30, 2021.
Our U.S. Operations contributed $50.7million to the increase in total cost of coal revenues, driven by the impact of inflation on labor and supply costs, and adverse geological conditions in certain mines at our U.S. Operations, resulting in unplanned maintenance costs and increased purchased coal transactions to meet sales commitments. Cost of coal revenues for our Australian Operations for the three months ended June 30, 2022, was $40.6 million higher compared to the three months ended June 30, 2021, as a result of additional contractor fleets mobilized to accelerate overburden removal to increase coal availability, inflationary pressure, including higher fuel and labor costs, and higher purchased coal transactions, partially offset by a favorable averageforeign exchangerate on translation
Coronado Global Resources Inc. Form 10-Q June 30, thesameperiodin2022,24
additionalfleetsto
advance pre-strip overburden removal.
Freight Expenses
Freight expenses include
Stanwell Rebate
The Stanwell rebate was $40.5 million for the three months ended2023,following redemptions since June 30, 2022, an increase 2022.
Other Royalties
Other royalties were $79.3 million in the three months ended June 30, 2022, an increase of $56.2 million, as compared to $23.2 million for the three months ended June 30, 2021. Higher royalties were a product of higher coal revenues compared to the same period in 2021.
Loss on Debt Extinguishment
During the three months ended June 30, 2021, the Company recognized a loss on debt extinguishment of $5.7 million relating to the termination of the revolving loan facility under the Company’s former multicurrency revolving syndicated facility agreement. There was no debt extinguishment during the three months ended June 30, 2022.
Other, net
Other, net was $25.1 million in the three months ended June 30, 2022, an increase of $24.1 million compared to $0.6 million for the three months ended June 30, 2021. The increase primarily relates to foreign exchange gains recognized in the translation of short-term intra-entity balances in certain entities within the group that are denominated in currencies other than their respective functional currencies.
Income Tax (Expense) Benefit
Income tax expense of $102.0 million for thethree months ended June 30, 2022, increased by $93.8 million, compared to a tax expense of $8.2 million for the three months ended June 30, 2021, driven by higherlower income
2022
Sales volume totaled 8.3 MMt for the six months ended June 30, 2022, or 0.6 MMt lower than the six months ended June 30, 2021. The lower sales volumes were primarily driven by significant wet weather events at our Australian Operations and adverse geological conditions at one of our mine complexes at our U.S. Operations during the second quarter of 2022.
Coronado Global Resources Inc. Form 10-Q June 30, 202225
The continued impact of the Russian invasion of Ukraine on global supply dynamics caused considerable volatility in coal pricing, which resulted in average realized Met price per Mt sold of $292.8 for the six months ended June 30, 2022, 193.4% higher compared to $99.8 per Mt sold for the six months ended June 30, 2021.
Adjusted EBITDA for the six months ended June 30, 2022 was $849.3 million, an increase of $823.6 million, from Adjusted EBITDA of $25.7 million for the six months ended June 30, 2021. This increase was driven by higher coal revenues partially offset byand higher operating costs.
Cash provided by operating activities was $518.3 million for the six months ended June 30, 2022, an increase of $461.4 million compared to $56.9 million for the same period in 2021.
|
| Six months ended June 30, | |||||||||
|
|
| 2022 |
|
| 2021 |
|
| Change |
| % |
|
| (in US$ thousands) | |||||||||
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
Coal revenues |
| $ | 1,957,625 |
| $ | 780,966 |
| $ | 1,176,659 |
| 150.7% |
Other revenues |
|
| 22,204 |
|
| 19,401 |
|
| 2,803 |
| 14.4% |
Total revenues |
|
| 1,979,829 |
|
| 800,367 |
|
| 1,179,462 |
| 147.4% |
Costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
Cost of coal revenues (exclusive of items shown separately below) |
|
| 754,963 |
|
| 580,258 |
|
| 174,705 |
| 30.1% |
Depreciation, depletion and amortization |
|
| 89,393 |
|
| 94,293 |
|
| (4,900) |
| (5.2%) |
Freight expenses |
|
| 126,290 |
|
| 108,047 |
|
| 18,243 |
| 16.9% |
Stanwell rebate |
|
| 69,585 |
|
| 30,895 |
|
| 38,690 |
| 125.2% |
Other royalties |
|
| 162,380 |
|
| 44,120 |
|
| 118,260 |
| 268.0% |
Selling, general, and administrative expenses |
|
| 18,252 |
|
| 13,206 |
|
| 5,046 |
| 38.2% |
Restructuring costs |
|
| — |
|
| 2,300 |
|
| (2,300) |
| (100.0%) |
Total costs and expenses |
|
| 1,220,863 |
|
| 873,119 |
|
| 347,744 |
| 39.8% |
Other income (expenses): |
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net |
|
| (34,814) |
|
| (31,731) |
|
| (3,083) |
| 9.7% |
Loss on debt extinguishment |
|
| — |
|
| (5,744) |
|
| 5,744 |
| (100.0%) |
(Increase) decrease in provision for discounting and credit losses |
|
| (584) |
|
| 5,644 |
|
| (6,228) |
| (110.3%) |
Other, net |
|
| 22,293 |
|
| (2,358) |
|
| 24,651 |
| (1,045.4%) |
Total other expense, net |
|
| (13,105) |
|
| (34,189) |
|
| 21,084 |
| (61.7%) |
Net income (loss) before tax |
|
| 745,861 |
|
| (106,941) |
|
| 852,802 |
| (797.5%) |
Income tax (expense) benefit |
|
| (183,968) |
|
| 10,884 |
|
| (194,852) |
| (1,790.3%) |
Net income (loss) |
|
| 561,893 |
|
| (96,057) |
|
| 657,950 |
| (685.0%) |
Less: Net loss attributable to noncontrolling interest |
|
| — |
|
| (2) |
|
| 2 |
| (100.0%) |
Net income (loss) attributable to Coronado Global Resources, Inc. |
| $ | 561,893 |
| $ | (96,055) |
| $ | 657,948 |
| (685.0%) |
2022.
Coronado Global Resources Inc. Form 10-Q June 30, 202226
certain mines of our U.S. Operations resulting in unplanned maintenance costs and increased purchased coal transactions to meet sales commitments. Cost of coal revenues for our Australian Operations in the six months ended June 30, 2022 increased by $83.2 million, as compared to the same period in 2021, driven by an additional fleet mobilized to accelerate overburden removal, inflationary pressure on fuel pricing and labor costs and increased purchased coal transactions to meet sales commitments. Higher costs were partially offset by a favorable average foreign exchange rate on
2022.
2022.
Stanwell Rebate
The Stanwell rebate was$1.3million, as
Other Royalties
Other royalties were $162.4 million for the six months ended June 30, 2022, an increase of $118.3 million, as compared to $44.1 million for the six months ended June 30, 2021. Higher royalties were a product of higher average realized export pricing for the six months period ended June 30, 2022 compared to the same period in 2021.
Interest Expense, net
Interest expense, net of $34.8 million for the six months ended June 30, 2022 increased $3.1 million, as compared to $31.7 million for the six months ended June 30, 2021. The increase in interest expense was due to a higher average interest rate for the six months ended June 30, 2022, compared to the same period in 2021, partially offset by lower average interest-bearing liabilities period-over-period.
Other, net
Other, net was $22.3 million in the six months ended June 30, 2022, an increase of $24.7 million compared to a net loss of $2.4 million for the six months ended June 30, 2021. The increase is foreign exchange gains recognized in the translation of short-term inter-entity balances in certain entities within the group that are denominated in currencies other than their respective functional currencies.
Income Tax (Expense) Benefit
Income tax expense of $184.0 million for the six months ended June 30, 2022 decreased by $194.9 million, as compared to a $10.9 million tax benefit for the six months ended June 30, 2021, primarily driven by higher income before tax in the 2022 period.
The income tax expense for the six months ended June 30, 2022 is based on an annual effective tax rate of 24.7%.
Coronado Global Resources Inc. Form 10-Q June 30, 202227
Supplemental Segment Financial Data
Three months ended June 30, 2022 compared to three months ended June 30, 2021
Australia
|
| Three months ended June 30, | ||||||
|
| 2022 |
| 2021 |
| Change |
| % |
|
| (in US$ thousands) | ||||||
Sales volume (MMt) |
| 2.3 |
| 2.8 |
| (0.5) |
| (17.0)% |
Total revenues ($) |
| 578,388 |
| 251,432 |
| 326,956 |
| 130.0% |
Coal revenues ($) |
| 568,346 |
| 242,749 |
| 325,597 |
| 134.1% |
Average realized price per Mt sold ($/Mt) |
| 244.4 |
| 86.6 |
| 157.8 |
| 182.2% |
Met sales volume (MMt) |
| 1.5 |
| 2.1 |
| (0.6) |
| (27.8)% |
Met coal revenues ($) |
| 543,345 |
| 221,659 |
| 321,686 |
| 145.1% |
Average realized Met price per Mt sold ($/Mt) |
| 357.4 |
| 105.2 |
| 252.2 |
| 239.7% |
Mining costs ($) |
| 205,272 |
| 175,760 |
| 29,512 |
| 16.8% |
Mining cost per Mt sold ($/Mt) |
| 94.1 |
| 66.8 |
| 27.3 |
| 40.9% |
Operating costs ($) |
| 381,907 |
| 266,199 |
| 115,708 |
| 43.5% |
Operating costs per Mt sold ($/Mt) |
| 164.2 |
| 95.0 |
| 69.2 |
| 72.8% |
Segment Adjusted EBITDA ($) |
| 196,315 |
| (13,880) |
| 210,195 |
| (1,514.4)% |
Coal revenues for our Australian Operations for the three months ended June 30, 2022 were $568.3 million, an increase of $325.6 million or 134.1%, compared to $242.7 million for the three months ended June 30, 2021. This increase was largely driven by a higher average realized Met price per Mt sold for the three months ended June 30, 2022 of $357.4 compared to $105.2 per Mt sold for the same period in 2021 benefiting from elevated demand and prices from ongoing trade constraints for Russian coal and the impact it has had on supply dynamics. Sales volume of 2.3 MMt decreased by 0.5 MMt, compared to 2.8 MMt for the three months ended June 30, 2021, as a result of above average wet weather impacting production at the Curragh mine complex.
Operating costs increased by $115.7 million, or 43.5%, for the three months ended June 30, 2022, compared to the three months ended June 30, 2021. The increase was driven by higher mining costs, other royalties and Stanwell rebate (mainly due to higher realized coal pricing). Mining cost per Mt sold of $94.1 for the three months ended June 30, 2022 was 40.9% higher compared to the three months ended June 30, 2021, primarily due to inflationary impacts including higher fuel prices, increase in purchased coal to meet sales commitments and additional contractor fleets mobilized at our Australian Operations.
Segment Adjusted EBITDA of $196.3 million for the three months ended June 30, 2022 increased by $210.2 million compared to Adjusted EBITDA loss of $13.9 million for the three months ended June 30, 2021. This increasedecrease was primarily driven by higher
United States
|
| Three months ended June 30, | ||||||
|
| 2022 |
| 2021 |
| Change |
| % |
|
| (in US$ thousands) | ||||||
Sales volume (MMt) |
| 1.6 |
| 1.7 |
| (0.1) |
| (5.1)% |
Total revenues ($) |
| 454,316 |
| 172,824 |
| 281,492 |
| 162.9% |
Coal revenues ($) |
| 452,651 |
| 171,015 |
| 281,636 |
| 164.7% |
Average realized price per Mt sold ($/Mt) |
| 283.4 |
| 101.6 |
| 181.8 |
| 178.9% |
Met sales volume (MMt) |
| 1.6 |
| 1.6 |
| — |
| (1.8)% |
Met coal revenues ($) |
| 450,858 |
| 168,472 |
| 282,386 |
| 167.6% |
Average realized Met price per Mt sold ($/Mt) |
| 286.2 |
| 105.0 |
| 181.2 |
| 172.6% |
Mining costs ($) |
| 148,922 |
| 109,137 |
| 39,785 |
| 36.5% |
Mining cost per Mt sold ($/Mt) |
| 96.9 |
| 65.4 |
| 31.5 |
| 48.2% |
Operating costs ($) |
| 202,462 |
| 134,111 |
| 68,351 |
| 51.0% |
Operating costs per Mt sold ($/Mt) |
| 126.7 |
| 79.7 |
| 47.0 |
| 59.0% |
Segment Adjusted EBITDA ($) |
| 252,394 |
| 39,434 |
| 212,960 |
| 540.0% |
Coal revenues increased by $281.6 million, or 164.7%, to $452.7 million for the three months ended June 30, 2022 compared to $171.0 million for the three months ended June 30, 2021. This increase was largely driven by
Coronado Global Resources Inc. Form 10-Q June 30, 202228
a higher average realized Met price per Mt sold for the three months ended June 30, 2022 of $286.2, compared to $105.0 per Mt sold for the same period in 2021, due to strong U.S.-sourced coal demand, particularly into China and Europe. Changes in supply dynamics due to the Russia and Ukraine war has benefited our U.S. Operations given their ability to switch coal exports from China to meet supply shortages in Europe at high prices during the six months ended June 30, 2022. Additionally, coal from our U.S. Operations continued to experience strong demand from China as import restrictions on Australian coal remain in place.
Operating costs increased by $68.4 million, or 51.0%, to $202.5 million for the three months ended June 30, 2022, compared to operating costs of $134.1 million for the three months ended June 30, 2021. The increase was due to higher mining costs of $39.8 million, as a result of an increase in purchased coal, higher production costs due to the impact of inflation of supplies and labor costs and adverse geological conditions causing unplanned maintenance activities.
Segment Adjusted EBITDA of $252.4 million for the three months ended June 30, 2022 increased by $213.0 million compared to $39.4 million for the three months ended June 30, 2021, primarily driven by a higher average realized Met price per Mt sold, partially offset by higher operating costs.
Corporate and Other Adjusted EBITDA
|
| Three months ended June 30, | ||||||||||
|
|
| 2022 |
|
| 2021 |
|
| Change |
|
| % |
|
| (in US$ thousands) | ||||||||||
Selling, general, and administrative expenses |
| $ | 10,376 |
| $ | 7,431 |
| $ | 2,945 |
|
| 39.6% |
Other, net |
|
| (27) |
|
| 62 |
|
| (89) |
|
| n/m |
Total Corporate and Other Adjusted EBITDA |
| $ | 10,349 |
| $ | 7,493 |
| $ | 2,856 |
|
| 38.1% |
Corporate and other costs of $10.3 million for the three months ended June 30, 2022 increased $2.9 million, compared to $7.5 million for the three months ended June 30, 2021. The increase in selling, general, and administrative expenses was primarily driven by corporate activities partially resuming to pre-COVID-19 pandemic levels and timing of certain corporate costs.
Coronado Global Resources Inc. Form 10-Q Corporateandothercostsof$17.2millionforthesixmonthsendedJune30, 202229
Mining and operating costs for the three months ended June 30, 2022 compared to three months ended June 30, 2021
A reconciliation of segment costs and expenses, segment operating costs, and segment mining costs is shown below:
|
| Three months ended June 30, 2022 | ||||||||||
|
| (in US$ thousands) | ||||||||||
|
|
| Australia |
|
| United States |
|
| Other / Corporate |
|
| Total Consolidated |
Total costs and expenses |
| $ | 410,520 |
| $ | 224,942 |
| $ | 10,667 |
| $ | 646,129 |
Less: Selling, general and administrative expense |
|
| — |
|
| — |
|
| (10,376) |
|
| (10,376) |
Less: Depreciation, depletion and amortization |
|
| (28,613) |
|
| (22,480) |
|
| (291) |
|
| (51,384) |
Total operating costs |
|
| 381,907 |
|
| 202,462 |
|
| — |
|
| 584,369 |
Less: Other royalties |
|
| (66,628) |
|
| (12,720) |
|
| — |
|
| (79,348) |
Less: Stanwell rebate |
|
| (40,532) |
|
| — |
|
| — |
|
| (40,532) |
Less: Freight expenses |
|
| (38,734) |
|
| (28,292) |
|
| — |
|
| (67,026) |
Less: Other non-mining costs |
|
| (30,741) |
|
| (12,528) |
|
| — |
|
| (43,269) |
Total mining costs |
|
| 205,272 |
|
| 148,922 |
|
| — |
|
| 354,194 |
Sales Volume excluding non-produced coal (MMt) |
|
| 2.2 |
|
| 1.5 |
|
| — |
|
| 3.7 |
Mining cost per Mt sold ($/Mt) |
|
| 94.1 |
|
| 96.9 |
|
| — |
|
| 95.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Three months ended June 30, 2021 | ||||||||||
|
| (in US$ thousands) | ||||||||||
|
|
| Australia |
|
| United States |
|
| Other / Corporate |
|
| Total Consolidated |
Total costs and expenses |
| $ | 290,914 |
| $ | 152,662 |
| $ | 7,677 |
| $ | 451,253 |
Less: Selling, general and administrative expense |
|
| — |
|
| — |
|
| (7,431) |
|
| (7,431) |
Less: Restructuring costs |
|
| (2,300) |
|
| — |
|
|
|
|
| (2,300) |
Less: Depreciation, depletion and amortization |
|
| (22,415) |
|
| (18,551) |
|
| (246) |
|
| (41,212) |
Total operating costs |
|
| 266,199 |
|
| 134,111 |
|
| — |
|
| 400,310 |
Less: Other royalties |
|
| (16,773) |
|
| (6,400) |
|
| — |
|
| (23,173) |
Less: Stanwell rebate |
|
| (15,076) |
|
| — |
|
| — |
|
| (15,076) |
Less: Freight expenses |
|
| (38,955) |
|
| (16,951) |
|
| — |
|
| (55,906) |
Less: Other non-mining costs |
|
| (19,635) |
|
| (1,623) |
|
| — |
|
| (21,258) |
Total mining costs |
|
| 175,760 |
|
| 109,137 |
|
| — |
|
| 284,897 |
Sales Volume excluding non-produced coal (MMt) |
|
| 2.6 |
|
| 1.7 |
|
| — |
|
| 4.3 |
Mining cost per Mt sold ($/Mt) |
|
| 66.8 |
|
| 65.4 |
|
| — |
|
| 66.2 |
Average realized Met price per Mt sold for the three months ended June 30, 2022 compared to three months ended June 30, 2021
A reconciliation of the Company’s average realized Met price per Mt sold is shown below:
|
| Three months ended June 30, | ||||||
|
| 2022 |
| 2021 |
| Change |
| % |
|
| (in US$ thousands) | ||||||
Met sales volume (MMt) |
| 3.1 |
| 3.7 |
| (0.6) |
| (16.6)% |
Met coal revenues ($) |
| 994,203 |
| 390,131 |
| 604,072 |
| 154.8% |
Average realized Met price per Mt sold ($/Mt) |
| 321.2 |
| 105.1 |
| 216.1 |
| 205.6% |
Coronado Global Resources Inc. Form 10-Q June 30, 202230
Six months ended June 30, 2022 compared to Six months ended June 30, 2021
Australia
|
| Six months ended June 30, | ||||||
|
| 2022 |
| 2021 |
| Change |
| % |
|
| (in US$ thousands) | ||||||
Sales volume (MMt) |
| 5.1 |
| 5.7 |
| (0.6) |
| (11.0)% |
Total revenues ($) |
| 1,183,686 |
| 489,726 |
| 693,960 |
| 141.7% |
Coal revenues ($) |
| 1,164,644 |
| 472,199 |
| 692,445 |
| 146.6% |
Average realized price per Mt sold ($/Mt) |
| 227.9 |
| 82.3 |
| 145.6 |
| 177.0% |
Met sales volume (MMt) |
| 3.3 |
| 4.3 |
| (1.0) |
| (22.5)% |
Met coal revenues ($) |
| 1,097,353 |
| 428,110 |
| 669,243 |
| 156.3% |
Average realized Met price per Mt sold ($/Mt) |
| 329.4 |
| 99.6 |
| 229.8 |
| 230.7% |
Mining costs ($) |
| 407,291 |
| 354,731 |
| 52,560 |
| 14.8% |
Mining cost per Mt sold ($/Mt) |
| 84.1 |
| 64.8 |
| 19.3 |
| 29.8% |
Operating costs ($) |
| 747,616 |
| 526,055 |
| 221,561 |
| 42.1% |
Operating costs per Mt sold ($/Mt) |
| 146.3 |
| 91.6 |
| 54.7 |
| 59.6% |
Segment Adjusted EBITDA ($) |
| 435,284 |
| (36,937) |
| 472,221 |
| (1,278.4)% |
Coal revenues for our Australian Operations for the six months ended June 30, 2022 were $1,164.6 million, an increase of $692.4 million, or 146.6%, compared to $472.2 million for the six months ended June 30, 2021. This increase was due to a higher average realized Met price per Mt sold of $329.4, an increase of $229.8 per Mt sold, compared to $99.6 per Mt sold during the same period in 2021, primarily driven by the continued impact of the war in Ukraine, which saw significant purchases of non-Russian coal following sanctions, trade finance problems and seaborne logistical constraints, and continued strong demand from destination markets other than China, which continues to restrict importation of Australian coal. Sales volume of 5.1 MMt was 0.6 MMt lower compared to 5.7 MMt for the six months ended June 30, 2021, mainly driven by low coal availability due to significant wet weather events experienced in the second quarter of 2022.
Operating costs increased by $221.6 million, or 42.1%, for the six months ended June 30, 2022, compared to the six months ended June 30, 2021. The increase was driven by higher mining costs, other royalties and Stanwell rebate (mainly due to higher realized coal pricing). Mining cost per Mt sold of $84.1 was $19.3 per Mt sold higher compared to the six months ended June 30, 2021, mainly due to above average rainfall resulting in lower production, increased purchase of coal costs to meet sales commitments, planned major equipment maintenance, an additional fleet mobilized to accelerate overburden removal, partially offset by a favorable average foreign exchange rate on translation of the Australian Operations for the six months ended June 30, 2022 of A$/US$: 0.72 compared to 0.77 for the six months ended June 30, 2021.
For the six months ended June 30, 2022, Adjusted EBITDA increased by $472.2 million, or 1,278.4%, compared to Adjusted EBITDA loss of $36.9 million for the six months ended June 30, 2021. This increase was primarily driven by higher coal revenues partially offset by higher operating costs.
United States
|
| Six months ended June 30, | ||||||
|
| 2022 |
| 2021 |
| Change |
| % |
|
| (in US$ thousands) | ||||||
Sales volume (MMt) |
| 3.2 |
| 3.2 |
| — |
| 0.3% |
Total revenues ($) |
| 796,143 |
| 310,641 |
| 485,502 |
| 156.3% |
Coal revenues ($) |
| 792,981 |
| 308,767 |
| 484,214 |
| 156.8% |
Average realized price per Mt sold ($/Mt) |
| 250.5 |
| 97.9 |
| 152.6 |
| 155.9% |
Met sales volume (MMt) |
| 3.1 |
| 3.1 |
| — |
| 1.8% |
Met coal revenues ($) |
| 788,579 |
| 305,456 |
| 483,123 |
| 158.2% |
Average realized Met price per Mt sold ($/Mt) |
| 253.5 |
| 100.0 |
| 153.5 |
| 153.5% |
Mining costs ($) |
| 264,183 |
| 198,347 |
| 65,836 |
| 33.2% |
Mining cost per Mt sold ($/Mt) |
| 86.9 |
| 63.2 |
| 23.7 |
| 37.6% |
Operating costs ($) |
| 365,602 |
| 237,265 |
| 128,337 |
| 54.1% |
Operating costs per Mt sold ($/Mt) |
| 115.5 |
| 75.2 |
| 40.3 |
| 53.6% |
Segment Adjusted EBITDA ($) |
| 432,294 |
| 75,963 |
| 356,331 |
| 469.1% |
Coronado Global Resources Inc. Form 10-Q June 30, 202231
Coal revenues increased by $484.2 million, or 156.8%, to $793.0 million for the six months ended June 30, 2022, as compared to $308.8 million for the six months ended June 30, 2021. This increase was mainly driven by a higher average realized Met price per Mt sold for the six months ended June 30, 2022 of $253.5, compared to $100.0 per Mt sold for the same period in 2021. The increase reflected a strong price environment and high demand of U.S.-sourced coal into China and Europe.
Operating costs increased by $128.3 million, or 54.1%, to $365.6 million for the six months ended June 30, 2022, compared to operating costs of $237.3 million for the six months ended June 30, 2021. The increase was primarily due to higher mining costs of $65.8 million, an increase of 33.2% compared to the same period in 2021, as a result of adverse geological conditions causing higher maintenance costs, an increase in purchase coal costs to meet sales commitments, an increase in subcontractor’s cost due to labor shortages and inflationary pressure on labor, materials and supplies.
Adjusted EBITDA increased by $356.3 million, or 469.1%, for the six months ended June 30, 2022 compared to Adjusted EBITDA of $76.0 million for the six months ended June 30, 2021. This increase was primarily driven by higher average realized Met price per Mt sold, partially offset by higher operating costs.
Corporate and Other Adjusted EBITDA
The following table presents a summary of the components of Corporate and Other Adjusted EBITDA:
|
| Six months ended June 30, | ||||||||||
|
|
| 2022 |
|
| 2021 |
|
| Change |
|
| % |
|
| (in US$ thousands) | ||||||||||
Selling, general, and administrative expenses |
| $ | 18,252 |
| $ | 13,206 |
| $ | 5,046 |
|
| 38.2% |
Other, net |
|
| (21) |
|
| 118 |
|
| (139) |
|
| (117.8)% |
Total Corporate and Other Adjusted EBITDA |
| $ | 18,231 |
| $ | 13,324 |
| $ | 4,907 |
|
| 36.8% |
Corporate and other costs increased $4.9 million to $18.2 million for the six months ended June30, 2022, as compareddue to $13.3 million for the six months ended June 30, 2021. The increase in selling, general, and administrative expenses was primarily driven by corporate activities partially resuming to pre-COVID-19 pandemic levels and timing of certain corporate costs.
Mining and operating costs forthe Six months ended June 30, 20222023 compared to Six months endedJune
A reconciliation of segment2023
|
| Six months ended June 30, 2022 | ||||||||||
|
| (in US$ thousands) | ||||||||||
|
|
| Australia |
|
| United States |
|
| Other / Corporate |
|
| Total Consolidated |
Total costs and expenses |
| $ | 794,901 |
| $ | 407,125 |
| $ | 18,837 |
| $ | 1,220,863 |
Less: Selling, general and administrative expense |
|
| — |
|
| — |
|
| (18,252) |
|
| (18,252) |
Less: Depreciation, depletion and amortization |
|
| (47,285) |
|
| (41,523) |
|
| (585) |
|
| (89,393) |
Total operating costs |
|
| 747,616 |
|
| 365,602 |
|
| — |
|
| 1,113,218 |
Less: Other royalties |
|
| (136,320) |
|
| (26,060) |
|
| — |
|
| (162,380) |
Less: Stanwell rebate |
|
| (69,585) |
|
| — |
|
| — |
|
| (69,585) |
Less: Freight expenses |
|
| (78,501) |
|
| (47,789) |
|
| — |
|
| (126,290) |
Less: Other non-mining costs |
|
| (55,919) |
|
| (27,570) |
|
| — |
|
| (83,489) |
Total mining costs |
|
| 407,291 |
|
| 264,183 |
|
| — |
|
| 671,474 |
Sales Volume excluding non-produced coal (MMt) |
|
| 4.8 |
|
| 3.0 |
|
| — |
|
| 7.9 |
Mining cost per Mt sold ($/Mt) |
|
| 84.1 |
|
| 86.9 |
|
| — |
|
| 85.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Six months ended June 30, 2021 | ||||||||||
|
| (in US$ thousands) | ||||||||||
|
|
| Australia |
|
| United States |
|
| Other / Corporate |
|
| Total Consolidated |
Total costs and expenses |
| $ | 578,657 |
| $ | 280,830 |
| $ | 13,632 |
| $ | 873,119 |
Less: Selling, general and administrative expense |
|
| — |
|
| — |
|
| (13,206) |
|
| (13,206) |
Less: Restructuring costs |
|
| (2,300) |
|
| — |
|
| — |
|
| (2,300) |
Less: Depreciation, depletion and amortization |
|
| (50,302) |
|
| (43,565) |
|
| (426) |
|
| (94,293) |
Total operating costs |
|
| 526,055 |
|
| 237,265 |
|
| — |
|
| 763,320 |
Less: Other royalties |
|
| (33,039) |
|
| (11,081) |
|
| — |
|
| (44,120) |
Less: Stanwell rebate |
|
| (30,895) |
|
| — |
|
| — |
|
| (30,895) |
Less: Freight expenses |
|
| (82,087) |
|
| (25,960) |
|
| — |
|
| (108,047) |
Less: Other non-mining costs |
|
| (25,303) |
|
| (1,877) |
|
| — |
|
| (27,180) |
Total mining costs |
|
| 354,731 |
|
| 198,347 |
|
| — |
|
| 553,078 |
Sales Volume excluding non-produced coal (MMt) |
|
| 5.5 |
|
| 3.1 |
|
| — |
|
| 8.6 |
Mining cost per Mt sold ($/Mt) |
|
| 64.8 |
|
| 63.2 |
|
| — |
|
| 64.2 |
2022
Reconciliation of Non-GAAP Financial Measures
Adjusted EBITDA |
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| Three months ended June 30, |
| Six months ended June 30, | ||||||||
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| 2022 |
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| 2021 |
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| 2022 |
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| 2021 |
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| (in US$ thousands) |
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Reconciliation to Adjusted EBITDA: |
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Net income (loss) |
| $ | 291,995 |
| $ | (55,085) |
| $ | 561,893 |
| $ | (96,057) |
Add: Depreciation, depletion and amortization |
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| 51,384 |
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| 41,212 |
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| 89,393 |
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| 94,293 |
Add: Interest expense (net of income) |
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| 17,482 |
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| 16,596 |
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| 34,814 |
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| 31,731 |
Add: Other foreign exchange (gains) losses |
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| (25,138) |
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| 140 |
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| (23,147) |
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| 1,889 |
Add: Loss on extinguishment of debt |
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| — |
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| 5,744 |
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| — |
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| 5,744 |
Add: Income tax expense (benefit) |
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| 102,025 |
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| 8,184 |
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| 183,968 |
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| (10,884) |
Add: Restructuring costs |
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| — |
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| 2,300 |
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| — |
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| 2,300 |
Add: Losses on idled assets held for sale |
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| 456 |
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| 836 |
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| 1,842 |
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| 2,330 |
Add: Increase (decrease) in provision for discounting and credit losses |
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| 156 |
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| (1,866) |
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| 584 |
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| (5,644) |
Adjusted EBITDA |
| $ | 438,360 |
| $ | 18,061 |
| $ | 849,347 |
| $ | 25,702 |
our debt facilities.
8, 2023.
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| June 30, 2022 |
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| December 31, 2021 |
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Cash, excluding restricted cash |
| $ | 485,632 |
| $ | 437,679 |
Availability under ABL Facility (1) |
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| 100,000 |
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| 100,000 |
Total |
| $ | 585,632 |
| $ | 537,679 |
Our total indebtedness as of June 30, 20222023 and December31, 20212022 consisted of the following:
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| June 30, 2022 |
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| December 31, 2021 |
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| (in US$ thousands) | |||
Current installments of interest bearing liabilities |
| $ | 314,453 |
| $ | 315,000 |
Current installments of other financial liabilities and finance lease obligations |
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| 4,042 |
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| 8,634 |
Other financial liabilities and finance lease obligations, excluding current installments |
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| 11,268 |
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| 14,031 |
Total |
| $ | 329,763 |
| $ | 337,665 |
As of December 31, 2021, available liquidity was $537.7 million, comprising cash and cash equivalents (excluding restricted cash) of $437.7 million and $100.0 million of available borrowings under our ABL Facility.
For the three and the six months ended June 30, 2022, in connection with the dividends paid in the period, the Company offered to purchase up to a total of $200.6 million aggregate principal amount of the Notes pursuant to the terms of the Indenture. For the three and six months ended June 30, 2022, the Company purchased an aggregate principal amount, for accepted offers, of $0.5 million at a price equal to 104% of the principal amount of the Notes, plus accrued and unpaid interest on the Notes to, but not including, the date of redemption.
As of June 30, 2022,2023, we were in compliance with allapplicablecovenants under the Indenture.
Coronado Global Resources Inc. Form 10-Q June 30, 202235
ABL Facility
was required.
CDI.On April 26, 2022, we amended our dividend policy with plans to pay a fixed cash dividend5, 2023, theCompany paid $8.3million, net of 0.5 cent per CDI biannually (1.0 cent per CDI annually), in accordance with our over-arching distribution policy. The$0.1 million foreignexchange
On May 9, 2022, our Company’sBoard of Directors declared a special unfrankedbi-annualfully franked fixed ordinary dividend
On August 8, 2022, the Company’s Board of Directors declared a total unfranked ordinary dividend of $125.7 million, or 7.5 cents per CDI, comprising $100.6 million of the unaccepted portion of the offer to purchase the Notes made in connection with the special dividends declared on May 9, 2022, plus an additional $25.2 million. CDIs will be quoted as “ex” dividend on August 29, 2022, Australia time. The dividends will have a record date of August 30, 2022,29, 2023, Australia time, and be payable on September 20, 2022, 19, 2023,
In connection with the declared ordinary dividends, Coronado Finance Pty Ltd, a wholly-owned subsidiary of the Company offered to purchase up to $25.2 million aggregate principal amount of the Notes, plus accrued and unpaid interest to, but excluding, the settlement date, at a purchase price equal to 104% of the principal amount of the Notes pursuant to the terms of the Indenture. The payment of the ordinary dividends is not contingent on acceptance of the offer to purchase the Notes by the Note holders.
Historical Cash Flows
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| Three months ended June 30, | ||||
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| 2022 |
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| 2021 |
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Net cash provided by operating activities |
| $ | 518,292 |
| $ | 56,924 |
Net cash used in investing activities |
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| (93,520) |
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| (122,923) |
Net cash (used in) provided by financing activities |
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| (355,591) |
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| 128,709 |
Net change in cash and cash equivalents |
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| 69,181 |
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| 62,710 |
Effect of exchange rate changes on cash and restricted cash |
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| (21,228) |
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| 5,215 |
Cash and restricted cash at beginning of period |
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| 437,931 |
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| 45,736 |
Cash and restricted cash at end of period |
| $ | 485,884 |
| $ | 113,661 |
Investing activities
Netnet cash used in investingfinancing activities was $93.5million for the sixmonths ended June 30, 2022, compared to $122.9were dividends paid of
Financing activities
Net cash used in financing activities was $355.6million for the six months ended June 30, 2022, compared to cash provided by financing activities of $128.7 million for the six months ended June 30, 2021. The net cash used in financing activities for the six months ended June 30, 2022, included dividend payments of $348.4, net of a $2.4 million foreign exchange gain on settlement of dividends elected by shareholders to be paid in Australian dollars and the remainder related to repayment of borrowings.
Included in the net cash used in financing activities for the six months ended June 30, 2021, were net proceeds from borrowings of $396.4 million, repayment of borrowings and otherfinancial liabilities of $365.4 million and net proceeds from the stock issuance of $97.7$7.1 million.
21, 2023.
Coronado Global Resources Inc. Form 10-Q June 30, 202237
Our critical accounting
ITEM 3.Quantitative and Qualitative Disclosures About Market Risk
QUANTITATIVEAND QUALITATIVEDISCLOSURES ABOUT MARKET RISK
Coronado Global Resources Inc. Form 10-Q June 30, 202239
Interest Rate Risk
2023, respectively.
item 4. Controls and Procedures
Disclosure Controls and Procedures
PART II – OTHERINFORMATION
item 1. lEGALLEGAL PROCEEDINGS
ITEM 1A.RISK FACTORS
Except as set forth below, there
We are subject to extensive forms of taxation, which imposes significant costs on us, and future regulations and developments could increase those costs or limit our ability to produce coal competitively.
Federal, state or local governmental authorities in nearly all countries across the global coal mining industry impose various forms of taxation on coal producers, including production taxes, sales-related taxes, royalties, stamp duty, environmental taxes and income taxes.
If new legislation or regulations related to various forms of coal taxation or income or other taxes generally, which increase our costs or limit our ability to compete in the areas in which we sell coal, or which adversely affect our key customers, are adopted, or if the basis upon which such duties or taxes are assessed or levied, changes or is different from that provided by us, our business, financial condition or results of operations could be adversely affected.
For example, the Queensland State Government in Australia recently amended the Mineral Resources Regulation 2013 (Qld) introducing additional higher tiers to the coal royalty rates from July 1, 2022, increasing the royalty payable by our Australian Operations.
The new tiers applicable in calculating the royalty payable for our Australian Operations from July 1, 2022 is as set out below:
7% for average coal price per Mt sold up to and including A$100 per Mt;
12.5% for average coal price per Mt sold from A$100 to A$150 per Mt;
15% for average coal price per Mt sold from A$150 to A$175 per Mt;
20% for average coal price per Mt sold from A$175 to A$225 per Mt;
30% for average coal price per Mt sold from A$225 to A$300 per Mt; and
40% for average coal price per Mt sold above A$300 per Mt.
item 2. UNREGISTERED SALES OF EQUITY SECURITIESAND USE OF PROCEEDS
None.
Coronado Global Resources Inc. Form 10-Q June 30, 202242
None.
item 3. DEFAULTS UPON SENIOR SECURITIES
None.
ITEM 4. MINE SAFETY DISCLOSURES
Resources Inc.
ITEM 5.OTHER INFORMATION
None.
Act)
of theCompany
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___________________________
SIGNATURES
Pursuant to the requirementsof the Securities ExchangeAct of 1934, the registranthas duly caused thisreport
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Date: August 8, 2022
Coronado Global Resources Inc. Form 10-Q June 30, 202244