Form10q2023q2p1i0
UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM
10-Q

___________________________________________________

FORM 10-Q

___________________________________________________

(Mark One)

QUARTERLY
REPORT PURSUANT TO SECTION 13
OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the quarterly period ended
June 30, 2023
OR
TRANSITION REPORT PURSUANT TO
SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934

For the quarterly period ended June 30, 2022

OR

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from
to

Commission File Number:
1-16247

___________________________________________________

Coronado Global Resources Inc.

(Exact name of registrant as specified in its charter)

___________________________________________________

Delaware

83-1780608

(State or other jurisdiction of

incorporation or organization)

(I.R.S. Employer

Identification No.)

Level 33, Central Plaza One, 345 Queen Street

Brisbane, Queensland, Australia

4000

(Address of principal executive offices)

(Zip Code)

(61) 

Delaware
83-1780608
(State or other jurisdiction of
incorporation or organization)
(I.R.S. Employer
Identification No.)
Level 33, Central Plaza One
,
345 Queen Street
Brisbane, Queensland
,
Australia
4000
(Address of principal executive offices)
(Zip Code)
(
61
)
7
3031 7777

(Registrant’s telephone number, including area code)

N/A

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

___________________________________________________

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

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

None

None

None

Title of each class
Trading Symbol(s)
Name of each exchange on which registered
None
None
None
Indicate by check
mark whether the
registrant (1) has filed
all reports required
to be filed
by Section 13 or
15(d) of the
Securities Exchange
Act of 1934 during
the preceding 12 months (or
(or for such shorter
period that the registrant
was required to file
such reports), and (2) has
been subject to such filing requirements for the past 90 days.

Yes
No

Indicate by check mark whether
the registrant 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 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
company,
or
an
emerging
growth
company.
See
the
definitions
of “large
“large
accelerated
filer,” “accelerated
“accelerated
filer,” “smaller
“smaller
reporting
company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

Accelerated filer

Non-accelerated filer

Smaller reporting company

Emerging growth company

Large accelerated filer
Accelerated filer
Non-accelerated filer
Smaller reporting company
Emerging growth company
If an emerging
growth company, indicate by
check mark if
the registrant has
elected not to
use the extended
transition period for
complying
with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

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

Yes
No

The registrant’s
common stock is
publicly traded on
the Australian Securities
Exchange in the
form of CHESS
Depositary Interests, or
CDIs, convertible at the option of
the holders into shares of the
registrant’s common stock on a 10-for-1 basis.
The total number of shares
of the registrant's common stock, par value $0.01
$0.01 per share, outstanding on July 31, 2022,
2023, including shares of common stock underlying
CDIs, was 167,645,373.

167,645,373

.
Form10q2023q2p2i1 Form10q2023q2p2i0
Steel starts
here.

Quarterly Report on Form 10-Q for the quarterly period ended
June 30, 2023.

i


Table of Contents

Page

PART I – FINANCIAL INFORMATION

 

ITEMINFORMATION

Condensed Consolidated Balance Sheets

(In US$ thousands, except share data)

 

Assets

 

Note

 

(Unaudited)

June 30, 2022

 

December 31, 2021

Current assets:

 

 

 

 

 

 

 

 

Cash and restricted cash

 

 

 

$

485,884

 

$

437,931

Trade receivables, net

 

 

 

 

558,643

 

 

271,923

Inventories

 

5

 

 

107,439

 

 

118,922

Other current assets

 

 

 

 

57,643

 

 

47,647

Assets held for sale

 

 

 

 

26,709

 

 

27,023

Total current assets

 

 

 

 

1,236,318

 

 

903,446

Non-current assets:

 

 

 

 

 

 

 

 

Property, plant and equipment, net

 

6

 

 

1,363,372

 

 

1,397,363

Right of use asset – operating leases, net

 

 

 

 

9,070

 

 

13,656

Goodwill

 

 

 

 

28,008

 

 

28,008

Intangible assets, net

 

 

 

 

3,412

 

 

3,514

Restricted deposits

 

14

 

 

86,019

 

 

80,981

Deferred income tax assets

 

 

 

 

0

 

 

14,716

Other non-current assets

 

 

 

 

33,292

 

 

19,728

Total assets

 

 

 

$

2,759,491

 

$

2,461,412

Liabilities and Stockholders’ Equity

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Accounts payable

 

 

 

$

83,313

 

$

97,514

Accrued expenses and other current liabilities

 

7

 

 

341,801

 

 

270,942

Income tax payable

 

 

 

 

96,566

 

 

25,612

Asset retirement obligations

 

 

 

 

9,117

 

 

9,414

Contract obligations

 

 

 

 

41,008

 

 

39,961

Lease liabilities

 

 

 

 

8,658

 

 

8,452

Other current financial liabilities

 

 

 

 

3,918

 

 

8,508

Liabilities held for sale

 

 

 

 

11,435

 

 

12,113

Total current liabilities

 

 

 

 

595,816

 

 

472,516

Non-current liabilities:

 

 

 

 

 

 

 

 

Asset retirement obligations

 

 

 

 

109,689

 

 

110,863

Contract obligations

 

 

 

 

114,553

 

 

141,188

Deferred consideration liability

 

 

 

 

232,507

 

 

230,492

Interest bearing liabilities

 

8

 

 

300,948

 

 

300,169

Other financial liabilities

 

 

 

 

11,133

 

 

13,822

Lease liabilities

 

 

 

 

8,296

 

 

12,894

Deferred income tax liabilities

 

 

 

 

99,162

 

 

75,750

Other non-current liabilities

 

 

 

 

31,008

 

 

26,216

Total liabilities

 

 

 

$

1,503,112

 

$

1,383,910

Common stock $0.01 par value; 1,000,000,000 shares authorized,167,645,373 shares issued and outstanding as of June 30, 2022 and December 31, 2021

 

 

 

 

1,677

 

 

1,677

Series A Preferred stock $0.01 par value; 100,000,000 shares authorized, 1 Share issued and outstanding as of June 30, 2022 and December 31, 2021

 

 

 

 

 

 

Additional paid-in capital

 

 

 

 

1,091,362

 

 

1,089,547

Accumulated other comprehensive losses

 

12

 

 

(78,138)

 

 

(44,228)

Retained earnings

 

 

 

 

241,478

 

 

30,506

Total stockholders’ equity

 

 

 

 

1,256,379

 

 

1,077,502

Total liabilities and stockholders’ equity

 

 

 

$

2,759,491

 

$

2,461,412

 

 

 

 

 

 

 

 

 

See accompanying notes to unaudited condensed consolidated financial statements.

Coronado Global Resources Inc. Form 10-Q June 30, 20222


Table of Contents

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,

 

 

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


Table of Contents

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


Table of Contents

 

 

 

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


Table of Contents

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


Table of Contents

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

4
5
6
7
8
20
21
41
43
44
44
44
44
44
44
45
47
Coronado Global Resources Inc.
Form 10-Q June 30, 2023
4
PART I – FINANCIAL INFORMATION
ITEM 1.
FINANCIAL STATEMENTS
Condensed Consolidated Balance Sheets
(In US$ thousands, except share data)
Assets
Note
(Unaudited)
June 30, 2023
December 31,
2022
Current assets:
Cash and restricted cash
$
434,330
$
334,629
Trade receivables, net
298,207
409,979
Income tax receivable
2,728
Inventories
5
259,896
158,018
Other current assets
91,292
60,188
Assets held for sale
4
26,214
Total
current assets
1,086,453
989,028
Non-current assets:
Property, plant and equipment,
net
6
1,413,493
1,389,548
Right of use asset – operating leases, net
8
51,648
17,385
Goodwill
28,008
28,008
Intangible assets, net
3,210
3,311
Restricted deposits
15
89,482
89,062
Other non-current assets
14,665
33,585
Total
assets
$
2,686,959
$
2,549,927
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable
$
83,432
$
61,780
Accrued expenses and other current liabilities
7
335,011
343,691
Income tax payable
15,834
119,981
Asset retirement obligations
15,676
10,646
Contract obligations
39,498
40,343
Lease liabilities
8
17,004
7,720
Other current financial liabilities
3,883
4,458
Liabilities held for sale
4
12,241
Total
current liabilities
510,338
600,860
Non-current liabilities:
Asset retirement obligations
135,845
127,844
Contract obligations
77,609
94,525
Deferred consideration liability
252,855
243,191
Interest bearing liabilities
9
234,112
232,953
Other financial liabilities
7,031
8,268
Lease liabilities
8
38,329
15,573
Deferred income tax liabilities
115,194
95,671
Other non-current liabilities
33,086
27,952
Total
liabilities
$
1,404,399
$
1,446,837
Common stock $
0.01
par value;
1,000,000,000
shares
authorized,
167,645,373
shares issued and outstanding as of June 30,
2023 and December 31, 2022
1,677
1,677
Series A Preferred stock $
0.01
par value;
100,000,000
shares
authorized,
1
Share issued and outstanding as of June 30, 2023 and
December 31, 2022
Additional paid-in capital
1,093,263
1,092,282
Accumulated other comprehensive losses
13
(103,723)
(91,423)
Retained earnings
291,343
100,554
Total
stockholders’ equity
1,282,560
1,103,090
Total
liabilities and stockholders’ equity
$
2,686,959
$
2,549,927
See accompanying notes to unaudited condensed
consolidated financial statements.
Coronado Global Resources Inc.
Form 10-Q June 30, 2023
5
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,
Note
2023
2022
2023
2022
Revenues:
Coal revenues
$
717,445
$
1,020,997
$
1,455,790
$
1,957,625
Other revenues
10,081
11,707
37,450
22,204
Total
revenues
3
727,526
1,032,704
1,493,240
1,979,829
Costs and expenses:
Cost of coal revenues (exclusive of items
shown separately below)
380,962
397,463
761,436
754,963
Depreciation, depletion and amortization
38,880
51,384
78,303
89,393
Freight expenses
57,443
67,026
120,796
126,290
Stanwell rebate
29,049
40,532
68,257
69,585
Other royalties
89,949
79,348
175,906
162,380
Selling, general, and administrative
expenses
9,981
10,376
17,755
18,252
Total
costs and expenses
606,264
646,129
1,222,453
1,220,863
Other (expense) income:
Interest expense, net
(14,180)
(17,482)
(28,845)
(34,814)
(Increase) decrease in provision for
discounting and credit losses
(269)
(156)
3,719
(584)
Other, net
6,473
25,083
9,515
22,293
Total
other (expense) income, net
(7,976)
7,445
(15,611)
(13,105)
Income before tax
113,286
394,020
255,176
745,861
Income tax expense
10
(21,975)
(102,025)
(56,005)
(183,968)
Net income attributable to Coronado
Global Resources Inc.
$
91,311
$
291,995
$
199,171
$
561,893
Other comprehensive income, net of income
taxes:
Foreign currency translation adjustments
13
(7,797)
(50,168)
(12,300)
(33,910)
Total
other comprehensive loss
(7,797)
(50,168)
(12,300)
(33,910)
Total
comprehensive income attributable
to Coronado Global Resources Inc.
$
83,514
$
241,827
$
186,871
$
527,983
Earnings per share of common stock
Basic
11
0.54
1.74
1.19
3.35
Diluted
11
0.54
1.74
1.18
3.35
See accompanying notes to unaudited condensed
consolidated financial statements.
Coronado Global Resources Inc.
Form 10-Q June 30, 2023
6
Unaudited Condensed Consolidated Statements of
Stockholders’ Equity
(In US$ thousands, except share data)
Common stock
Preferred stock
Additional
Accumulated other
Total
paid in
comprehensive
Retained
stockholders
Shares
Amount
Series A
Amount
capital
losses
earnings
equity
Balance December 31, 2022
167,645,373
$
1,677
1
$
$
1,092,282
$
(91,423)
$
100,554
$
1,103,090
Net income
107,860
107,860
Other comprehensive loss
(4,503)
(4,503)
Total
comprehensive (loss) income
(4,503)
107,860
103,357
Share-based compensation for equity
classified awards
(308)
(308)
Dividends
(8,382)
(8,382)
Balance March 31, 2023
167,645,373
$
1,677
1
$
$
1,091,974
$
(95,926)
$
200,032
$
1,197,757
Net income
91,311
91,311
Other comprehensive loss
(7,797)
(7,797)
Total
comprehensive (loss) income
(7,797)
91,311
83,514
Share-based compensation for equity
classified awards
1,289
1,289
Balance June 30, 2023
167,645,373
$
1,677
1
$
$
1,093,263
$
(103,723)
$
291,343
$
1,282,560
Common stock
Preferred stock
Additional
Accumulated other
Total
paid in
comprehensive
Retained
stockholders
Shares
Amount
Series A
Amount
capital
losses
earnings
equity
Balance December 31, 2021
167,645,373
$
1,677
1
$
$
1,089,547
$
(44,228)
$
30,506
$
1,077,502
Net income
269,898
269,898
Other comprehensive income
16,258
16,258
Total
comprehensive income
16,258
269,898
286,156
Share-based compensation for equity
classified awards
84
84
Dividends
(150,881)
(150,881)
Balance March 31, 2022
167,645,373
$
1,677
1
$
$
1,089,631
$
(27,970)
$
149,523
$
1,212,861
Net income
291,995
291,995
Other comprehensive loss
(50,168)
(50,168)
Total
comprehensive (loss) income
(50,168)
291,995
241,827
Share-based compensation for equity
classified awards
1,731
1,731
Dividends
(200,040)
(200,040)
Balance June 30, 2022
167,645,373
$
1,677
1
$
$
1,091,362
$
(78,138)
$
241,478
$
1,256,379
See accompanying notes to unaudited condensed
consolidated financial statements.
Coronado Global Resources Inc.
Form 10-Q June 30, 2023
7
Unaudited Condensed Consolidated Statements of
Cash Flows
(In US$ thousands)
Six months ended
June 30,
2023
2022
Cash flows from operating activities:
Net income
$
199,171
$
561,893
Adjustments to reconcile net income to cash and restricted cash
provided by
operating activities:
Depreciation, depletion and amortization
78,303
89,393
Amortization of right of use asset - operating leases
2,861
4,501
Amortization of deferred financing costs
966
968
Non-cash interest expense
16,324
15,622
Amortization of contract obligations
(15,594)
(21,947)
Loss on disposal of property,
plant and equipment
359
257
Equity-based compensation expense
981
1,815
Deferred income taxes
19,912
42,061
Reclamation of asset retirement obligations
(2,035)
(3,601)
(Decrease) increase in provision for discounting and credit
losses
(3,719)
584
Changes in operating assets and liabilities:
Accounts receivable
117,875
(304,707)
Inventories
(104,742)
9,700
Other assets
(2,313)
(18,460)
Accounts payable
23,335
(5,160)
Accrued expenses and other current liabilities
(2,393)
71,595
Operating lease liabilities
(5,001)
(4,163)
Income tax payable
(105,575)
73,114
Change in other liabilities
5,159
4,827
Net cash provided by operating activities
223,874
518,292
Cash flows from investing activities:
Capital expenditures
(104,853)
(87,875)
Purchase of restricted deposits
(5,001)
(6,251)
Redemption of restricted deposits
4,780
606
Net cash used in investing activities
(105,074)
(93,520)
Cash flows from financing activities:
Principal payments on interest bearing liabilities and other financial
liabilities
(1,498)
(7,085)
Principal payments on finance lease obligations
(64)
(61)
Premiums paid on early redemption of debt
(22)
Dividends paid
(8,371)
(348,423)
Net cash used in financing activities
(9,933)
(355,591)
Net increase in cash and restricted cash
108,867
69,181
Effect of exchange rate changes on cash and restricted
cash
(9,166)
(21,228)
Cash and restricted cash at beginning of period
334,629
437,931
Cash and restricted cash at end of period
$
434,330
$
485,884
Supplemental disclosure of cash flow information:
Cash payments for interest
$
14,087
$
18,338
Cash paid for taxes
$
138,525
$
69,388
Restricted cash
$
251
$
251
See accompanying notes to unaudited condensed consolidated
financial statements.
Coronado Global Resources Inc.
Form 10-Q June 30, 2023
8
NOTES TO UNAUDITED CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS
1.
Description of Business, Basis of Presentation
(a)
Description of the Business
Coronado
Global
Resources
Inc.
is
a
global
producer,
marketer,
and
exporter
of
a
full
range
of
metallurgical
coals,
an
essential
element
in
the
production
of
steel.
The
Company
has
a
portfolio
of
operating
mines
and
development projects in
Queensland, Australia, and
in the states of
Pennsylvania, Virginia and
West Virginia
in
the United States, or U.S.
(b)
Basis of Presentation
The interim unaudited condensed consolidated financial statements
have been prepared in accordance with the
requirements of U.S. generally accepted
accounting principles, or U.S. GAAP,
and with the instructions to Form
10-Q and Article
10 of Regulation
S-X related to
interim financial reporting
issued by the
Securities and Exchange
Commission, or the
SEC. Accordingly,
they do not
include all of
the information
and footnotes required
by U.S.
GAAP for complete
financial statements and should
be read in
conjunction with the audited
consolidated financial
statements and notes thereto included in the
Company’s Annual Report on Form 10-K filed with the
SEC and the
Australian Securities Exchange, or the ASX, on February
21, 2023.
The
interim
unaudited
condensed
consolidated
financial
statements
are
presented
in
U.S.
dollars,
unless
otherwise
stated.
They
include
the
accounts
of
Coronado
Global
Resources
Inc.
and
its
wholly-owned
subsidiaries.
References
to
“US$”
or
“USD”
are
references
to
U.S.
dollars.
References
to
“A$”
or
“AUD”
are
references
to
Australian
dollars,
the
lawful
currency
of
the
Commonwealth
of
Australia.
The
“Company”
and
“Coronado”
are
used
interchangeably
to
refer
to
Coronado
Global
Resources
Inc.
and
its
subsidiaries,
collectively, or to Coronado Global Resources Inc., as
appropriate to the context.
All intercompany balances and
transactions have been eliminated upon consolidation.
In
the
opinion
of
management,
these
interim
financial
statements
reflect
all
normal,
recurring
adjustments
necessary
for
the
fair
presentation
of
the
Company’s
financial
position,
results
of
operations,
comprehensive
income, cash flows and changes in
equity for the periods presented. Balance sheet information
presented herein
as of December 31,
2022 has been derived from
the Company’s audited consolidated balance sheet at
that date.
The
Company’s
results
of
operations
for
the
three
and
six
months
ended
June
30,
2023
are
not
necessarily
indicative of the results that may be expected for future quarters or for the year
ending December 31, 2022.

2023.
2.

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, 20212022 included in Coronado Global Resources Inc.’s Annual Report
on Form 10-K filed with the SEC and ASX on February 22, 2022.

21, 2023.
(a)Newly Adopted Accounting Standards

During
the
period,
there
has
been
no
new
Accounting
Standards
Update
issued
by
the
Financial
Accounting
Standards Board that had a material impact on the Company’s
consolidated financial statements.

3.

3.Segment Information

The Company has a portfolio of operating
mines and development projects in
Queensland, Australia, and in the
states
of
Pennsylvania,
Virginia
and
West
Virginia
in
the
U.S.
The
operations
in
Australia,
or
Australian
Operations, comprise
the 100%-owned
Curragh producing
mine complex. The
operations in the
United States,
or U.S. Operations,
comprise 2
two
100%-owned producing
mine complexes (Buchanan
and Logan), 1
one
100%-owned-
owned idled mine complex (Greenbrier) and 2
two
development properties (Mon Valley
and Russell County).

The
Company
operates
its
business
along 2
two
reportable
segments:
Australia
and
the
United
States.
The
organization
of
the
two
reportable
segments
reflects
how
the
Company’s
chief
operating
decision
maker,
or
CODM, manages and allocates resources to the various
components of the Company’s business.

The CODM
uses Adjusted
EBITDA as
the primary
metric to
measure each
segment’s
operating performance.
Adjusted EBITDA is not a measure of financial performance in accordance with U.S. GAAP.
Investors should be
aware that
the Company’s
presentation of
Adjusted EBITDA
may not
be comparable
to similarly
titled financial
measures used by other companies.


NOTES TO UNAUDITED CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS
(Continued)

Coronado Global Resources Inc.

Form 10-Q June 30, 2023
9
Adjusted EBITDA is
defined as earnings
before interest, taxes,
depreciation, depletion and
amortization and other
foreign exchange losses. Adjusted EBITDA is
also adjusted for certain discrete items that
management exclude
in analyzing each
of the
Company’s segments’ operating performance. “Other
“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 condensed consolidated financial statements.

unaudited Condensed Consolidated Financial Statements.
Reportable segment results as of and
for the three and six months
ended June 30, 2023 and
2022 and 2021 are presented below:

 

 

 

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:

(in US$ thousands)
Australia
United
States
Other and
Corporate
Total
Three months ended June 30, 20228


Table of Contents

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

2023
Total

The reconciliations of revenues

$
431,806
$
295,720
$
$
727,526
Adjusted EBITDA to net income attributable to the Company for the three and six
54,700
116,487
(9,661)
161,526
Total
assets
1,149,614
1,018,177
519,168
2,686,959
Capital expenditures
16,493
31,044
26
47,563
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
Total
assets
1,473,795
1,044,753
240,943
2,759,491
Capital expenditures
30,755
20,673
236
51,664
Six months ended June 30, 2023
Total
revenues
$
830,467
$
662,773
$
$
1,493,240
Adjusted EBITDA
67,933
301,529
(17,186)
352,276
Total
assets
1,149,614
1,018,177
519,168
2,686,959
Capital expenditures
23,728
65,208
81
89,017
Six months ended June 30, 2022
Total
revenues
$
1,183,686
$
796,143
$
$
1,979,829
Adjusted EBITDA
435,284
432,294
(18,231)
849,347
Total
assets
1,473,795
1,044,753
240,943
2,759,491
Capital expenditures
46,716
44,422
329
91,467
The reconciliations
of Adjusted EBITDA to
net income attributable to
the Company for the
three and 2021six months
ended June 30, 2023 and 2022 are as follows:

 

 

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

Three months ended
Six months ended
June 30,
June 30,
(in US$ thousands)
2023
2022
2023
2022
Net income
$
91,311
$
291,995
$
199,171
$
561,893
Depreciation, depletion and amortization
38,880
51,384
78,303
89,393
Interest expense (net of interest income)
14,180
17,482
28,845
34,814
Income tax expense
21,975
102,025
56,005
183,968
Other foreign exchange gains
(1)
(6,414)
(25,138)
(9,405)
(23,147)
Losses on idled assets
(2)
1,325
456
3,076
1,842
Increase (decrease) in provision for
discounting and credit losses
269
156
(3,719)
584
Consolidated Adjusted EBITDA
$
161,526
$
438,360
$
352,276
$
849,347
(1)
The balance
primarily relates
to foreign
exchange gains
and losses
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. These
gains and losses
are included in “Other, net” on the unaudited Consolidated Statement
of Operations and Comprehensive Income.
(2)
These losses relate to idled non-core assets
that the Company has an active plan
to sell. Prior to March 31, 2023, the
Company had idled
assets that were classified as held for sale with the view that these will be sold within the next twelve months.sale. Refer
to Note 4 “Assets held for sale” for further details.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS
(Continued)
Coronado Global Resources Inc.
Form 10-Q June 30, 2023
10
The
reconciliations
of
capital
expenditures
per
the
Company’s
segment
information
to
capital
expenditures
disclosed on the unaudited
Condensed Consolidated Statements
of Cash Flows for
the six months ended
June
30, 20222023 and 20212022 are as follows:

 

 

 

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

Six months ended June 30,
(in US$ thousands)
2023
2022
Capital expenditures per unaudited Condensed Consolidated
Statements of
Cash Flows
$
104,853
$
87,875
Accruals for capital expenditures
6,755
11,067
Payment for capital acquired in prior periods
(11,241)
(7,475)
Advance payment to acquire long lead capital items
(11,350)
Capital expenditures per segment detail
$
89,017
$
91,467
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, 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

Coronado Global Resources Inc. Form 10-Q

Three months ended June 30, 20229


Table of Contents

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

2023

 

 

 

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)
Australia

United States
Total
Product Groups:
Metallurgical coal
$
403,861
$
257,292
$
661,153
Thermal coal
19,260
37,032
56,292
Total
coal revenue
423,121
294,324
717,445
Other
(1)
8,685
1,396
10,081
Total
$
431,806
$
295,720
$
727,526
Three months ended June 30, 2022
(in US$ thousands)
Australia
United States
Total
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
Six months ended June 30, 2023
(in US$ thousands)
Australia
United States
Total
Product Groups:
Metallurgical coal
$
776,380
$
540,314
$
1,316,694
Thermal coal
37,545
101,551
139,096
Total
coal revenue
813,925
641,865
1,455,790
Other
(1)
16,542
20,908
37,450
Total
$
830,467
$
662,773
$
1,493,240
Six months ended June 30, 2022
(in US$ thousands)
Australia
United States
Total
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
(1) Other revenue for the Australian segment includes
the amortization of the Stanwell non-market coal
supply contract obligation liability.


NOTES TO UNAUDITED CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS
(Continued)

Coronado Global Resources Inc.
Form 10-Q June 30, 2023
11
4.

Assets Held for Sale

During
the
fourth
quarter
of
2020, the
Company
committed
to
a
plan
to
sell
the
Greenbrier
mining
asset
and
determined that all
of the criteria
to classify assets
and liabilities as
held for sale
were met. The
asset is part
of
our U.S. segment, located
in the State of Virginia
in the United States. The
Greenbrier asset does not
form part
of the Company’s core business strategy and
has been idle since April 1, 2020.
The
Company
remains
committed
to
a
plan
to
sell
the
asset,
however,
on
March
31,
2023,
the
Company
concluded that the timing of
the sale within the next
twelve months is uncertain.
As such, the Greenbrier
mining
asset
has
been
reclassified
as
held
and
used
since
March
31,
2023,
as
it
does
not
meet
the
criteria
for
classification as held for sale.
The Greenbrier
mining asset
remains idle
and the
Company does
not intend
to recommence
operations at
the
mine.
The assets and
liabilities of Greenbrier met
the criteria for
classification as held for
sale as of
December 31, 2022,
therefore the Condensed Consolidated Balance Sheet continues to reflect these assets and liabilities as held for
sale as of that date.
5.
Inventories

(in US$ thousands)

 

June 30,

2022

 

December 31,
2021

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

(in US$ thousands)
June 30,
2023
December 31,
2022
Raw coal
$
106,057
$
50,604
Saleable coal
89,355
45,913
Total
coal inventories
195,412
96,517
Supplies inventory
64,484
61,501
To
tal inventories
$
259,896
$
158,018
Coal inventories measured at its net realizable value
were $1.9$
3.5
million
and $
5.0
million and $2.2 millionas at June 30, 20222023 and
December 31, 2021,
2022, respectively,
and relates
to coal
designated for
deliveries under
the Stanwell
non-market
coal supply agreement.

6.

6.Property, Plant and

Equipment

(in US$ thousands)

 

June 30,

2022

 

December 31,
2021

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

(in US$ thousands)
June 30,
2023
December 31,
2022
Land
$
27,896
$
27,711
Buildings and improvements
89,989
91,336
Plant, machinery, mining
equipment and transportation vehicles
1,076,809
1,012,844
Mineral rights and reserves
390,394
373,309
Office and computer equipment
9,752
9,488
Mine development
559,010
565,106
Asset retirement obligation asset
75,338
87,877
Construction in process
119,425
82,713
To
tal cost of property,
plant and equipment
2,348,613
2,250,384
Less accumulated depreciation, depletion and amortization
935,120
860,836
Property, plant and
equipment, net
$
1,413,493
$
1,389,548
Table 

NOTES TO UNAUDITED CONDENSED CONSOLIDATED

FINANCIAL STATEMENTS

(Continued)
Coronado Global Resources Inc.
Form 10-Q June 30, 2023
12
7.
Accrued Expenses and Other Current Liabilities

Accrued expenses and other current liabilities consist of the
following:

(in US$ thousands)

 

June 30,

2022

 

December 31,
2021

Wages and employee benefits

 

$

37,392

 

$

41,187

Taxes other than income taxes

 

 

8,384

 

 

6,246

Accrued royalties

 

 

104,952

 

 

70,237

Accrued freight costs

 

 

42,104

 

 

27,754

Accrued mining fees

 

 

104,694

 

 

65,835

Acquisition related accruals

 

 

29,623

 

 

31,201

Other liabilities

 

 

14,652

 

 

28,482

Total accrued expenses and other current liabilities

 

$

341,801

 

$

270,942

(in US$ thousands)
June 30,
2023
December 31,
2022
Wages and employee benefits
$
38,976
$
38,687
Taxes
other than income taxes
7,901
5,988
Accrued royalties
104,631
117,131
Accrued freight costs
50,667
44,496
Accrued mining fees
96,185
103,492
Acquisition related accruals
11,470
11,669
Other liabilities
25,181
22,228
Total
accrued expenses and other current liabilities
$
335,011
$
343,691
Acquisition
related
accruals
is
an amount outstanding
accrual
for
the
estimated
remaining
stamp
duty
payable
on
the
Curragh
acquisition of $29.6 $
11.5
million (A$43.0
17.0
million). This amount was outstandingRefer to Note 15 “Contingencies” for further
details.
8.
Leases
From time to
time, the Company
enters into mining
services contracts,
which may include
embedded leases
of
mining equipment
and other
contractual agreements
to lease
mining equipment
and facilities.
Based upon
the
Company’s
assessment
of the
terms
of a
specific
lease agreement,
the Company
classifies a
lease
as either
finance or operating.
During the
three months
period ended
June
30, 2023,
the Company
entered
into
a number
of agreements
to
lease mining equipment.
At commencement of
these agreements, the
Company recognized right-of
-use assets
and operating lease liabilities of $
37.6
million.
Information related to the Company’s right-of
use assets and related lease liabilities are as follows:
(US$ thousands)
June 30,
2023
December 31,
2022
Operating leases:
Operating lease right-of-use assets
$
51,648
$
17,385
Finance leases:
Property and equipment
360
371
Accumulated depreciation
(239)
(186)
Property and equipment, net
121
185
Current operating lease obligations
16,874
7,593
Operating lease liabilities, less current portion
38,329
15,505
Total
operating lease liabilities
55,203
23,098
Current finance lease obligations
130
127
Finance lease liabilities, less current portion
68
Total
Finance lease liabilities
130
195
Current lease obligation
17,004
7,720
Non-current lease obligation
38,329
15,573
Total
Lease liability
$
55,333
$
23,293
NOTES TO UNAUDITED CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS
(Continued)
Coronado Global Resources Inc.
Form 10-Q June 30, 2023
13
June 30,
2023
December
31, 2022
Weighted Average Remaining
Lease Term (Years)
Weighted average remaining lease term – finance
leases
1.01
1.52
Weighted average remaining lease term – operating
leases
3.39
4.11
Weighted Average Discount
Rate
Weighted discount rate – finance lease
7.60%
7.60%
Weighted discount rate – operating lease
9.00%
8.94%
The Company’s operating leases have remaining lease
terms of
1
year to
5
years, some of which include
options
to extend the terms
where the Company deems
it is reasonably certain
the options will be
exercised. Maturities
of lease liabilities as at June 30, 2022 and 2023, are as follows:
(US$ thousands)
Operating
Lease
Finance
Lease
Year ending
December 31, 2021 pending assessment by the Queensland Revenue Office in Queensland, Australia.

Coronado Global Resources Inc. Form 10-Q June 30, 202211


Table of Contents

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

2023

$
10,899

8.

$
79
2024
19,295
68
2025
18,508
2026
11,597
2027
2,924
Thereafter
892
Total
lease payments
64,115
147
Less imputed interest
(8,912)
(17)
Total
lease liability
$
55,203
$
130
9.
Interest Bearing Liabilities

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.

 

 

 

 

 

 

 

 

 

 

 

The following is a summary of interest-bearing liabilities
at June 30, 2023:
(in US$ thousands)
June 30, 2023
December 31, 2022
Weighted Average
Interest Rate at
June 30, 2023
Final
Maturity
10.75
% Senior Secured Notes

As of June 30, 2022,

$
242,326
$
242,326
12.14
%
(2)
2026
ABL Facility
2024
Discount and debt issuance costs
(1)
(8,214)
(9,373)
Total
interest bearing liabilities
$
234,112
$
232,953
(1)
Debt issuance costs incurred on the Company’s aggregate principal amount establishment
of the 10.750% ABL Facility has been included within
"Other non-current assets" in the
unaudited Condensed Consolidated Balance Sheet.
(2)
Represents the effective interest rate.
Senior Secured Notes
As
of
June
30,
2023,
the
Company’s
aggregate
principal
amount
of
the
10.750
%
Senior
Secured
Notes
due
2026, or the Notes, outstanding was $314.5 $
242.3
million. The Notes mature on
May 15, 2026
and are senior secured
obligations of the Company.

The
terms
of
the
Notes
are
governed
by
an
indenture,
dated
as
of
May
12,
2021,
or
the
Indenture,
among
Coronado Finance
Pty Ltd,
an Australian
proprietary
company,
as issuer,
Coronado,
as parent
guarantor,
the
other guarantors
party thereto
and Wilmington
Trust,
National Association,
as trustee.
The Indenture
contains
customary
covenants
for
high
yield
bonds,
including,
but
not
limited
to,
limitations
on
investments,
liens,
indebtedness, asset
sales, transactions
with affiliates
and restricted
payments, including
payment of
dividends
on capital stock.
As of June
30, 2022,2023, the
Company was in
compliance with all
applicable covenants under
the
Indenture.

For

The carrying
value of
debt issuance
costs, recorded
as a
direct deduction
from the three and 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
face 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.

Debt issuance costs, recorded as a direct deduction from the face amount of the Notes,

were $13.5$
8.2
million and $14.8 $
9.4
million at June 30, 20222023 and December 31, 2021,2022, respectively.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS
(Continued)
Coronado Global Resources Inc.
Form 10-Q June 30, 2023
14
ABL Facility

On May 12, 2021, the Company entered into a senior secured asset-based revolving credit agreement providing
for
a
multi-currency
asset-based-loan
facility,
or
ABL
Facility,
in
an
initial
principal
amount
of $100.0
$
100.0
million,
including a $30.0 $
30.0
million sublimit for
the issuance of
letters of credit
and $5.0 $
5.0
million for swingline
loans, at any
time outstanding, subject to borrowing base availability.
The ABL Facility matures on
May 12, 2024.

2024

.
Borrowings under
the ABL
Facility bear
interest at
a rate
equal to
a Bank
Bill Swap
Bid, or
BBSY,
rate plus
an
applicable
margin.
In
addition
to
paying
interest
on
the
outstanding
borrowings
under
the
ABL
Facility,
the
Company is also
required to pay
a fee in
respect of unutilized
commitments, on amounts
available to be
drawn
under outstanding letters of credit and certain administrative
fees.

As at June
30, 2023,
no
amounts were
drawn and
no
letters of credit
were outstanding
under the
ABL Facility.
As at June 30, 2022, 0 amounts were drawn and 0 letters of credit were outstanding under the ABL Facility. At June 30, 2022,2023, the Company was in compliance
with all applicable covenants under the ABL Facility.

Debt

The carrying value of debt
issuance costs, recorded as “Other non-current assets” in
the unaudited Consolidated
Balance Sheets, were $3.4
1.5
million and $4.3 $
2.5
million at June 30, 20222023 and December 31, 2021, respectively.

2022, respectively.

Coronado Global Resources Inc. Form 10-QSubsequent to June 30, 202212


Table of Contents

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

9.Income Taxes

For the six months ended June 30, 2022 and 2021,2023, the Company satisfied

all conditions precedent under a New ABL
Facility at which
time the New ABL Facility
replaced the existing
ABL Facility.
Refer to Note 16.
Material Transactions
for further
details.
10.
Income Taxes
For
the six
months
ended
June 30,
2023
and
2022,
the
Company
estimated
its
annual
effective
tax
rate
and
applied this effective tax rate to its
year-to-date pretax income at the end
of the interim reporting period. The tax
effects of unusual or
infrequently occurring items,
including effects of changes
in tax laws or
rates and changes
in judgment about the
realizability of deferred
tax assets, are reported
in the interim
period in which they
occur.
The Company’s 20222023 estimated
annual effective tax rate
is 24.7%
21.9
%, which has been favorably
impacted by mine
depletion deductions in
the United States.
The Company had
an income tax expense
of $184.0 $
56.0
million based on
an incomebefore tax of $745.9 millionfor the six months ended June 30, 2022.

Income tax benefit of $10.9 $

255.2
million for the six months ended June 30, 2021 2023.
Income
tax
expense
of
$
184.0
million
for
the
six
months
ended
June
30,
2022
was
calculated
based
on
an
estimated annual effective tax rate of 10.2%
24.7
% for the period.

The Company utilizes the “more
“more likely than not”
standard in recognizing
a tax benefit in
its financial statements.
For the six months ended
June 30, 2022,2023, the
Company had 0
no
unrecognized tax benefits.
If accrual for interest
or penalties is required, it is the Company’s policy
to include these as a component of income tax expense.

The Company is
subject to taxation
in the
U.S. and its
various states, as
well as Australia
and its
various localities.
In the
U.S.
and
Australia, the
first tax
return
was
lodged for
the
year
ended December
31,
2018. In
the U.S.,
companies are
subject to
open tax
audits for
a period
of seven
years at
the federal
level and
five years
at the
state level.
In Australia,
companies
are subject
to open
tax audits
for a
period of
four years
from the
date of
assessment.

The Company assessed the need for valuation allowances by evaluating future taxable income, available for tax
strategies and the reversal of temporary tax differences.

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.


NOTES TO UNAUDITED CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS
(Continued)

Coronado Global Resources Inc.
Form 10-Q June 30, 2023
15
11.

10.Earnings per Share

Basic earnings per
share of common
stock is computed
by dividing net
income attributable
to the Company
for
the period,
by the
weighted-average
number of
shares
of common
stock outstanding
during the
same period.
Diluted earnings per share of common stock is computed
by dividing net income attributable to the Company
by
the weighted-average number
of shares
of common
stock outstanding adjusted
to give
effect to potentially
dilutive
securities.
Basic and diluted earnings per share was calculated as
follows (in thousands, except per share data):
Three months ended June 30,
Six months ended June 30,
(in US$ thousands, except per share data)
2023
2022
2023
2022
Numerator:
Net income attributable to Company
stockholders
$
91,311
$
291,995
$
199,171
$
561,893
Denominator (in thousands):
Weighted-average shares of common stock
outstanding adjusted to give effect to potentially
167,645
167,645
167,645
167,645
Effects of dilutive securities.

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)

shares
524

11.

168
458
192
Weighted average diluted shares of common
stock outstanding
168,169
167,813
168,103
167,837
Earnings Per Share (US$):
Basic
0.54
1.74
1.19
3.35
Dilutive
0.54
1.74
1.18
3.35
The Company’s common stock is publicly traded on the
ASX in the form of CDIs, convertible at the option of the
holders into shares of the Company’s common stock
on a
10-for-1 basis
.
12.
Fair Value Measurement

The fair
value of
a financial
instrument is
the amount
that will
be received
to sell
an asset
or paid
to transfer
a
liability in
an orderly transaction
between market participants
at the
measurement date. The
fair values
of financial
instruments involve uncertainty and cannot be determined with
precision.

The Company utilizes valuation
techniques that maximize
the use of observable inputs
and minimize the use of
unobservable
inputs
to
the
extent
possible.
The
Company
determines
fair
value
based
on
assumptions
that
market participants would use in pricing
an asset or liability in the
market.
When considering market participant
assumptions in fair
value measurements, the
following fair value
hierarchy distinguishes between observable
and
unobservable inputs, which are categorized in one of the following
levels:

Level
1 Inputs:
Unadjusted
quoted
prices
in
active
markets
for identical
assets
or liabilities
accessible
to
the
reporting entity at the measurement date.

Level 2 Inputs:
Other than quoted prices that are observable for the
asset or liability,
either directly or indirectly,
for substantially the full term of the asset or liability.

Level
3
Inputs:
Unobservable
inputs
for
the
asset
or
liability
used
to
measure
fair
value
to
the
extent
that
observable inputs
are not
available, thereby
allowing for
situations in
which there
is little, if
any,
market activity
for the asset or liability at measurement date.


NOTES TO UNAUDITED CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS
(Continued)

Coronado Global Resources Inc.

Form 10-Q June 30, 2023
16
Financial Instruments Measured on a Recurring Basis

As of
June 30, 2022,
2023, there
were 0
no
financial instruments
required to
be measured
at fair
value on
a recurring
basis.

Other Financial Instruments

The following methods
and assumptions
are used to
estimate the fair
value of other
financial instruments
as of
June 30, 20222023 and December 31, 2021:

2022:

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.

Restricted
deposits,
lease
liabilities,
interest
bearing
liabilities
and
other
financial
liabilities:
The
fair
values
approximate
the
carrying
values
reported
in
the
unaudited
Condensed
Consolidated
Balance
Sheets.

Interest bearing liabilities: The
Company’s outstanding interest-bearing liabilities are carried at
amortized
cost. As of June 30, 2022, 2023,
there were 0
no
borrowings outstanding under the
ABL Facility.
The estimated
fair value of the Notes isas of June 30, 2023 was approximately $327.0 $
251.7
million based upon observablequoted market data
prices in a market that is not considered active (Level 2).

13.

12.Accumulated Other Comprehensive Losses

The Company’s Accumulated Other Comprehensive
Losses consists of foreign currency translation adjustment
of subsidiaries for which the functional currency is different
of the Group’s functional currency in U.S.
dollar.
Accumulated other comprehensive losses consisted of
the following at June 30, 2022:

(in US$ thousands)

Foreign currency translation adjustments

2023:

(in US$ thousands)
Foreign
currency
translation
adjustments
Balance at December 31, 2022
$
(91,423)
Net current-period other comprehensive income (loss):
Loss in other comprehensive income before reclassifications
(3,806)
Loss on long-term intra-entity foreign currency transactions
(8,494)
Total
net current-period other comprehensive loss
(12,300)
Balance at 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

$
(103,723)

NOTES TO UNAUDITED CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS
(Continued)

Coronado Global Resources Inc.

13.Form 10-Q June 30, 2023

17
14.
Commitments

(a)
Mineral Leases

The
Company
leases
mineral
interests
and
surface
rights
from
land
owners
under
various
terms
and
royalty
rates. The future minimum royalties under these leases
as of June 30, 2023 are as follows:

(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.

 

 

 

 

 

 

(in US$ thousands)
Amount
Year ending
December 31,
2023
$
3,646
2024
5,346
2025
5,241
2026
5,113
2027
5,087
Thereafter
25,834
Total
$
50,267
Mineral leases are not in scope of Accounting Standards Codification,
or ASC, 842 and continue to be
accounted for under the guidance in ASC 932, Extractive
Activities – Mining.
(b)
Other commitments

As of June 30, 2022,2023, purchase commitments for capital expenditures were $27.8 $
32.5
million, all of which is obligated
within the next twelve months.

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 9 years.
13 years
.
In the U.S.,
the Company
typically negotiates
its rail and
coal terminal
access on
an annual
basis.
As of
June
30, 2022,2023, these Australian and U.S.
commitments under take-or-pay
arrangements totaled $1.1 $
0.9
billion, of which
approximately $91.9 $
95.0
million is obligated within the next twelve months.

15.

14.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.

At June 30, 2022,

As required
by certain
agreements, the
Company had outstanding bank guarantees
cash collateral
in the
form of $45.3
deposits in
the amount
of
$
89.5
million to secure various obligations and
$
89.1
million as
of June
30, 2023
and commitments.

Restricted deposits represent cash deposits held at third parties as required by certain agreements entered into by the Company December

31, 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-back
back-to-
back support
for bank
guarantees,
financial
payments, and
other performance
obligations, various
other
operating
agreements and various other operating agreements.
contractual obligations
under workers
compensation insurance.
These deposits
are restricted
and classified as long-term assets in the unaudited Condensed
Consolidated Balance Sheets.

In accordance
with the
terms of
the ABL
Facility,
the Company
may be
required
to cash
collateralize
the ABL
Facility to the extent of outstanding letters of credit after the expiration or termination date of such letter of credit.
As of June 30, 2022, 0 2023,
no
letter of credit was outstanding and 0
no
cash collateral was required.

For the U.S. Operations in order to provide the required financial assurance, the Company generally uses surety
bonds
for
post-mining
reclamation.
The
Company
can
also
use
bank
letters
of
credit
to
collateralize
certain
obligations. As of June 30, 2022,
2023, the Company had outstanding
surety bonds of$27.8
40.8
million and letters of
credit
of $16.8
$
16.8
million
issued
from
our
available
bank
guarantees,
to
meet
contractual
obligations
under
workers
compensation insurance and to secure other obligations
and commitments.
For the Australian Operations, the Company had bank guarantees outstanding of
$
24.2
million at June 30, 2023,
primarily in respect of certain rail and port arrangements
of the Company.
As at
June 30,
2023, the
Company had
total outstanding
bank guarantees
provided of
$
41.0
million to
secure various
obligations and
commitments. Future
regulatory changes
relating to
these obligations
could result
in increased
obligations, additional costs or additional collateral requirements.


NOTES TO UNAUDITED CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS
(Continued)

Coronado Global Resources Inc.

Form 10-Q June 30, 2023
18
Stamp duty on Curragh acquisition
On September 27, 2022, the Company received from
the Queensland Revenue Office, or QRO,
an assessment
of the stamp duty
payable on its
acquisition of the Curragh
mine in March
2018. The QRO assessed
the stamp
duty
on
this
acquisition
at
an
amount
of
$
54.5
million
(A$
82.2
million)
plus
unpaid
tax
interest
of
$
8.0
million
(A$
12.1
million).
On
November
23,
2022,
the
Company
filed
an
objection
to
the
assessment
and
is
currently
awaiting the outcome of this objection. The outcome of
this objection remains uncertain.
The Company continues to
maintain its position and
the estimated accrual of
$
28.5
million (A$
43.0
million) stamp
duty payable
on the
Curragh acquisition
based on
legal and
valuation advice
obtained. The
Company made
a
partial payment following
filing of the
objection reducing
the estimated accrual
to $
11.5
million (A$
17.3
million),
which
is
included
within
“Accrued
Expenses
and
Other
Current
Liabilities”
in
its
unaudited
Condensed
Consolidated Balance sheet,
as at June 30, 2023.
From time to time, the
Company becomes a
party to other legal
proceedings in the
ordinary course of business
in Australia, the U.S. and other countries where the Company does business.
Based on current information, the
Company believes that such other pending
or threatened proceedings are likely to
be resolved without a material
adverse
effect
on
its
financial
condition,
results
of
operations
or
cash
flows.
In
management’s
opinion,
the
Company is not currently
involved in any legal
proceedings, which individually
or in the aggregate
could have a
material effect on the financial condition, results of
operations and/or liquidity of the Company.

16. Material Transactions

New asset-based revolving credit facility
On May
8, 2023,
the Company, Coronado Coal
Corporation, a Delaware
corporation and wholly
owned subsidiary
of the Company,
Coronado Finance Pty
Ltd, an Australian
proprietary company
and a wholly
owned subsidiary
of the Company,
or an Australian
Borrower, Coronado
Curragh Pty Ltd,
an Australian proprietary
company and
wholly
owned
subsidiary
of
the
Company,
or
an
Australian
Borrower
and,
together
with
the
other
Australian
Borrower, the Borrowers,
and the other guarantors party
thereto, collectively with the Company,
the Guarantors
and, together
with the
Borrowers, the
Loan Parties,
entered into
a senior
secured asset-based
revolving credit
agreement in
an initial
aggregate amount
of $
150.0
million, or
the New
ABL Facility,
with Global
Loan Agency
Services Australia
Pty Ltd,
as the
Administrative Agent,
Global Loan
Agency Services
Australia Nominees
Pty
Ltd, as the
Collateral Agent,
the Hongkong and
Shanghai Banking
Corporation Limited,
Sydney Branch, as
the
Lender, and DBS Bank
Limited, Australia Branch,
as the
Lender and, together
with the other
Lender, the Lenders.
On August
3, 2023,
the Company
satisfied all
conditions precedent
under the
New ABL
Facility agreement
,
at
which time the New ABL Facility became effective
and replaced the predecessor ABL Facility.
The New
ABL Facility
matures in
August 2026
and provides
for up
to $
150.0
million in
borrowings, including
a
$
100.0
million sublimit for the issuance
of letters of credit and $
70.0
million sublimit as a revolving
credit facility.
Availability under the New
ABL Facility is
limited to an
eligible borrowing base, determined
by applying customary
advance rates to eligible accounts receivable and inventory.
The New
ABL Facility
is guaranteed
by the
Guarantors.
Amounts outstanding
under the
New ABL
Facility are
secured by
(i) first
priority lien
in the
accounts receivable
and other
rights to
payment, inventory,
intercompany
indebtedness, certain general
intangibles and commercial tort
claims, commodities accounts,
deposit accounts,
securities accounts
and other
related assets
and proceeds
and products
of each
of the
foregoing, collectively,
the New ABL
Collateral, and
(ii) a second-priority lien
on substantially all
of the Company’s assets
and the assets
of the
guarantors, other than
the New ABL
Collateral, and (iii)
solely in the
case of the
obligations of the
Australian
Borrower, a featherweight
floating security interest over certain
assets of the Australian Borrower,
in each case,
subject to certain customary exceptions.
Borrowings under the New
ABL Facility bear interest
at a rate per
annum equal to applicable
rate of
2.80
% and
BBSY,
for loans denominated in A$, or SOFR, for loans
denominated in U$, at the Borrower’s election.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS
(Continued)
Coronado Global Resources Inc.
Form 10-Q June 30, 2023
19
The New
ABL Facility
contains customary representations
and warranties
and affirmative and
negative covenants
including, among
others, a
covenant regarding
the maintenance
of leverage
ratio to
be less
than
3.00
times, a
covenant regarding maintenance of interest coverage ratio to be more than
3.00
times, covenants relating to the
payment of dividends, or purchase or redemption of, with respect to any Equity Interests of Holdings or
any of its
Subsidiaries,
covenants
relating
to
financial
reporting,
covenants
relating
to
the
incurrence
of
liens
or
encumbrances, covenants relating to the incurrence or prepayment of certain debt, compliance with laws, use of
proceeds, maintenance of properties, maintenance of insurance, payment obligations, financial accommodation,
mergers and
sales of all
or substantially all
of the Borrowers
and Guarantors’, collectively
the Loan Parties,
assets
and limitations on changes in the nature of the Loan Parties’
business.
Subject
to
customary
grace
periods
and
notice
requirements,
the
New
ABL
Facility
also
contains
customary
events of default.
Curragh Housing Transaction
On May 8, 2023, the Company entered into an
agreement, the Curragh Housing Agreement, for accommodation
services
and
to
sell
and
leaseback
housing
and
accommodation
assets
included
in
property,
plant
and
equipment.
The
transaction
did
not
satisfy
the
sale
criteria
under
ASC
606
Revenues
from
Contracts
with
Customers
and
was
deemed
a
financing
arrangement.
As
a
result,
the
Company
continued
to
recognize
the
underlying property,
plant and
equipment on
its condensed
consolidated balance
sheet. Upon
completion,
the
proceeds
of
$
22.9
million
(A$
34.6
million)
received
from
the
transaction
will
be
recorded
as
“Other
Financial
Liabilities” on the
Company’s condensed
consolidated balance sheet.
The term of
the financing arrangement
is
ten years
with an effective interest rate of
12.8
%.
In connection with this transaction, the
Company borrowed an additional amount of $
26.8
million (A$
40.4
million)
which will
be recorded
in “Interest
Bearing Liabilities”
on completion
date. The
term of
the arrangement
is
ten
years with an effective interest rate of
12.8
%.
The Curragh Housing Agreement is subject to conditions
precedent not completed as at June 30, 2023.
In line
with the
Company’s
capital management
strategy,
the above
transactions provide
additional liquidity.
In
addition, the accommodation
services component of the
Curragh Housing Agreement
is anticipated to enhance
the level of service for our employees at our Curragh mine.
17.
Subsequent Events

Ordinary dividends
On August 8, 2022,7, 2023, the Company’s
Board of Directors declared a total unfrankedbi-annual
fully franked fixed ordinary dividend
of $125.7 $
8.4
million, or7.5
0.5
cents per CDI, comprising $100.6 million of the unaccepted portion of the
CDI. The
Company is
not required
to make
an offer
to purchase the
Notes for
this
dividend
due
to
the
available
and
unaccepted
portion
of
the
offer
to
purchase
the
Notes
previously
made
in
connection with the special dividends declared on May 9, 2022, plus an additional $25.2 million. CDIs will be quoted as “ex”October 30,
2022.
The 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
,
Australia time. CDIs will be
quoted “ex” dividend on August
28, 2023, Australia time. The total
ordinary dividends of $125.7 million dividend
will be funded from available cash.

Coronado Global Resources Inc.
Form 10-Q June 30, 202217

2023

REPORT OF INDEPENDENT REGISTERED PUBLIC

ACCOUNTING FIRM

To the Stockholders
and Board of Directors of Coronado Global Resources
Inc.

Results of Review of Interim Financial Statements

We
have
reviewed
the
accompanying
condensed
consolidated
balance sheet
of
Coronado
Global
Resources
Inc. (the
(the
Company)
as
of
June
30,
2023,
the
related
condensed
consolidated
statements
of
operations
and
comprehensive
income
for
the
three
and
six-month
periods
ended
June
30,
2023
and
2022,
the related
condensed consolidated statements of operations and comprehensive income for the three and six-month periods ended June 30, 2022 and 2021, the condensed
consolidated statements of stockholders’ equity
for the three-monththree-months periods ended
March 31 and June
30, 2022 2023
and 2021,2022, the condensed consolidated statements of cash flows for
the six-month periods ended June 30, 2023
and
2022,
and 2021, and
the
related
notes (collectively
(collectively
referred
to
as
the “condensed
“condensed
consolidated
interim
financial
statements”). Based on our
reviews, we are not aware
of any material modifications
that should be made to
the
condensed consolidated
interim financial
statements for
them to
be in
conformity with
U.S. generally
accepted
accounting principles.

We
have
previously
audited,
in
accordance
with
the
standards
of
the
Public
Company
Accounting
Oversight
Board (United States) (PCAOB), the
consolidated balance sheet of the Company
as of December 31, 2021,2022, the
related consolidated statements
of operations
and comprehensive
income, stockholders'
equity and cash
flows
for the year then ended, and
the related notes (not presented herein), and
in our report dated February 22, 2022, 21, 2023,
we
expressed
an
unqualified
audit
opinion
on
those
consolidated
financial
statements.
In
our
opinion,
the
information set
forth in
the accompanying
condensed consolidated
balance sheet
as of December
31, 2021, 2022,
is
fairly stated, in all material
respects, in relation to the consolidated balance
sheet from which it has been
derived.

Basis for Review Results

These financial
statements
are the
responsibility
of the
Company's
management.
We
are a
public accounting
firm registered with the PCAOB and are required
to be independent with respect to the Company
in accordance
with the
U.S. federal
securities laws
and the
applicable rules
and regulations
of the
SEC and
the PCAOB.
We
conducted our review
in accordance with
the U.S. federal securities laws and the applicable rules and regulations standards
of the SEC PCAOB.
A review of
interim financial statements
consists principally
of applying
analytical procedures
and the PCAOB. We making
inquiries of
persons
responsible for
financial
and accounting matters.
It is substantially
less in scope
than an audit
conducted our review in accordance
with the standards of the PCAOB. A review of interim financial statements consists principally of applying analytical procedures and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit conducted in accordance with the standards
of the PCAOB, the objective of which is the expression of an opinion regarding the financial statements taken as
a whole. Accordingly,
we do not express such an opinion.

/s/ Ernst & Young

Brisbane, Australia
August 7, 2023.

Coronado Global Resources Inc.
Form 10-Q June 30, 202218

2023

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
year ended December 31, 2021
2022 included
in Coronado Global Resources Inc.’s
Annual Report on Form 10-K for
the year ended December 31, 2021, 2022,
filed
with
the
U.S.
Securities
and
Exchange
Commission,
or
SEC,
and
the
Australian
Securities
Exchange,
or
the
ASX, on February 22, 2022.

21, 2023.

Unless otherwise
noted,
references
in this
Quarterly
Report on
Form 10-Q
to “we,” “us,
“us, “our,
“our, “Company,
“Company,
or “Coronado”
“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
(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$,
except
where
otherwise
stated.
References
to “A$
“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-LOOKINGFORWARD
-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q contains “forward-looking statements” within the meaning of Section 27A of
the Securities Act of 1933, as
amended, and Section 21E of the Securities
Exchange Act of 1934, as amended,
or the Exchange
Act, concerning
our business,
operations, financial
performance and
condition, the
coal, steel
and
other
industries,the impact of the COVID-19 pandemic 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,
“may, “could,
“could, “believes,
“believes, “estimates,
“estimates, “expects,
“expects, “intends,
“intends, “plans,
“plans, “anticipate,
“anticipate, “forecast,
“forecast, “outlook,
“outlook, “target,
“target, “likely,
“likely, “considers”
“considers” and other similar words.

Any
forward-looking
statements
involve
known
and
unknown
risks,
uncertainties,
assumptions
and
other
important factors that
could cause actual
results, performance,
events or outcomes
to differ
materially from
the
results,
performance,
events
or
outcomes
expressed
or
anticipated
in
these
statements,
many
of
which
are
beyond
our
control.
Such
forward-looking
statements
are
based
on
an
assessment
of
present
economic
and
operating
conditions
on
a
number
of
best
estimate
assumptions
regarding
future
events
and
actions.
These
factors are difficult to accurately predict and may be beyond our control. Factors that could affect our results, our
announced plans, including our plan to issue dividends and distributions, or an investment in our securities include,
but are not limited to:

the prices we receive for our coal;
uncertainty in
global economic
conditions, including
the extent,
duration and
impact of
the Russia
and
Ukraine war, as well as risks related to government actions with respect to trade agreements, treaties or
policies;

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

tires, as the result

of inflationary pressures or otherwise;
the extensive forms of taxation
that our mining operations
are subject to, and future
tax regulations and
developments. For example,
the recent amendments to
the coal
royalty regime announced implemented
by the Queensland
state Government in
Australia in 2022 introducing additional
higher tiers to the
coal royalty rates
applicable to our
Australian Operations;
concerns about the environmental impacts of coal
combustion and greenhouse gas, or GHG, emissions,
relating
to
mining
activities,
including
possible
impacts
on global
climate
issues,
which
could
result
in
increased
regulation
of
coal
combustion
and
requirements
to
reduce
GHG
emissions
in
many
jurisdictions,
which
could
significantly
affect
demand
for
our
products
or
our
securities
and
reduced
access to capital and insurance;
Coronado Global Resources Inc.
Form 10-Q June 30, 2023
22
severe financial
hardship,
bankruptcy,
temporary or
permanent shut
downs or
operational challenges,
due
to
future
public
health
crisis (such
(such
as COVID-19)
the
COVID-19
pandemic),
of
one
or otherwise,
more
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;

Coronado Global Resources Inc. Form 10-Q June 30, 202219


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

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

the prices we receive for our coal;

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

coal;

risks inherent to
mining operations could
impact the amount
of coal produced,
cause delay or
suspend
coal deliveries, or increase the cost of operating our business;

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

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

unfavorable economic and financial market conditions;

our ability to continue acquiring and developing coal 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 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;

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;

the risk that we may not recover our investments in our mining, exploration and other assets, which may
require us to recognize impairment charges related to those assets;

risks related to divestitures and acquisitions;

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

other
risks
and
uncertainties
detailed
herein,
including,
but
not
limited
to,
those
discussed
in “Risk
“Risk
Factors,” set forth in Part II, Item 1A of this Quarterly Report
on Form 10-Q.

Coronado Global Resources Inc.
Form 10-Q June 30, 202220

2023

We

make
many
of
our
forward-looking
statements
based
on
our
operating
budgets
and
forecasts,
which
are
based upon
detailed assumptions.
While we
believe that
our assumptions
are reasonable,
we caution
that it
is
very difficult to
predict the impact
of known factors,
and it is
impossible for us
to anticipate all
factors that could
affect our actual results.

See Part I, Item
1A. “Risk Factors”
of our Annual Report
on Form 10-K for
the year ended December
31, 2021, 2022,
filed with the
SEC and
ASX on February 22, 2022,
21, 2023,
and Part
II, Item 1A. “Risk
“Risk Factors”
of our Quarterly
Report
on Form 10-Q for
the quarterly period ended March
31, 2022,2023, filed with the
SEC and ASX on
May 9, 2022,8, 2023, for
a more
complete
discussion
of
the
risks
and
uncertainties
mentioned
above
and
for
discussion
of
other
risks
and
uncertainties we face that could
cause actual results to differ materially from
those expressed or implied by
these
forward-looking statements.

All
forward-looking
statements
attributable
to
us
are
expressly
qualified
in
their
entirety
by
these
cautionary
statements, as well as others
made in this Quarterly Report on Form 10-Q
and hereafter in our other filings
with
the
SEC
and
public
communications.
You
should
evaluate
all
forward-looking
statements
made
by
us
in
the
context of these risks and uncertainties.

We caution you that the risks and uncertainties identified by us may not be all of the factors that are important to
you.
You
should
not
interpret
the
disclosure
of
any
risk
to
imply
that
the
risk
has
not
already
materialized.
Furthermore, the
forward-looking statements
included in this
Quarterly Report
on Form 10-Q
are made only
as
of the date
hereof. We
undertake no
obligation to
publicly update
or revise
any forward-looking
statement as
a
result of new information, future events, or otherwise, except
as required by applicable law.

Overview

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

Our Australian
Operations
comprise the
100%-owned
Curragh producing
mine complex.
Our U.S.
Operations
comprise
two
100%-owned
producing
mine
complexes (Buchanan
(Buchanan
and
Logan),
one
100%-owned
idled
mine
complex (Greenbrier) and two development properties (Mon Valley
and Russell County). In addition to Met coal,
our Australian
Operations sell
thermal coal
domestically,
which is
used to
generate electricity,
to Stanwell
and
some thermal
coal in
the export
market. Our
U.S. Operations
primarily focus
on the
production of
Met coal
for
the North American domestic and seaborne export
markets and also produce and sell some
thermal coal that is
extracted in the process of mining Met coal.

For

Coronado performed strongly in the
second quarter of 2023 delivering on
a number of milestones that we
believe
have
placed
the
Company
well
for
the
remainder
of
2023.
The
business
delivered
quarter-on-quarter
higher
production,
overburden
and
sales
volumes,
and
continued
to
maintain
a
strong
balance
sheet
with
healthy
liquidity levels.
Coking coal index prices continued to
decline over the second quarter
of 2023. The downward price adjustment
was driven mostly by
weak end user demand
resulting in delayed
restocking of coal inventories,
combined with
higher supply from Australia
due to drier
operating conditions in the
second quarter of 2023.
The global economic
environment and weak steel demand
continues to put pressure
on steel margins with steelmakers
continuing to
lower steel prices and delay raw material procurement. The Australian
Premium Low Volatile Hard Coking
Coal,
or AUS PLV HCC, index price averaged $242.8 per Mt for the three months
ended June 30, 2023, $101.1 per Mt
lower, compared to the three months ended March 31, 2023. The
AUS PLV HCC averaged $293.8 per Mt for the
six months ended June 30, 2023, $173.0 per Mt lower,
compared to the six months ended June 30, 2022, we produced 7.5 MMt and sold 8.3 MMt of coal. Met coal sales represented 77.8% of our total volume of coal sold and 96.3% of total coal revenues for the six months ended June 30, 2022.

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.

Our results for the six months ended June 30, 2022 benefited from higher2023, were adversely impacted by (1) lower average realized Met
price per Mt sold partially offset by (1)compared to the
six months ended June 30, 2022, (2) significant wet
weather events during the
first quarter
of 2023
at our
Australian Operations
impacting production, at our Australian Operations, (2) inflationary pressure, including higher cost of fuel and labor costs,
(3) adverse geological conditions at our U.S. Operations resulting in lower production and higher equipment maintenance costs, continued
inflationary
pressure,
(4)
additional fleets mobilized atdeployed to recover pre-strip overburden removal, (5)
a train derailment in January 2023 on the
Blackwater line which impacted our Australian Operationssales volume.
For
the
six
months
ended
June
30,
2023,
we
produced
8.2
MMt
and
sold
7.6
MMt
of
coal.
Met
coal
sales
represented 75.3%
of our
total volume
of coal
sold and
90.0% of
total coal
revenues for
the six
months ended
June 30, 2023, compared to improve coal recovery77.8% and (5) higher sales related costs (Stanwell rebate, royalties and freight costs).

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.
Coal revenues of $1,455.8 million for
the six months ended June
30, 2023, decreased by 25.6% compared
to the
same period in
2022, driven by
average realized
Met price per
Mt sold,
which was $65.7
per Mt lower
than the
$292.8 average realized
price per Mt sold
for the six months
ended June 30,
2022. Sales volumes
were 0.7 Mt
lower for the
six months ended
June 30, 2023,
compared to the
same period in 2021 primarily
2022, largely due
to lower significant
wet
weather
events
and
equipment
breakdowns,
impacting
production
performance
and
coal
availability,
and
Coronado Global Resources Inc.
Form 10-Q June 30, 2023
24
delays on
production caused by significant wet weather eventsof
required coal
qualities to
meet sales
commitments at
our Australian
Operations and adverse geological conditions at our U.S. Operations. Operatingduring
the second quarter of 2023.
Mining costs for the six months
ended June 30, 20222023, were $349.9$723.8 million,
or 45.8%,$12.0 per Mt sold higher
compared
to
the
corresponding
period
in
2022,
primarily
driven
by
inflationary
pressures
and
the
impacts
from
lower
production in the first quarter of 2023 deferred
to subsequent quarters following the corresponding period above
average wet weather
in 2021 primarily driven by inflationary pressures, additional contractor fleets deployed at our Australian Operations to accelerate overburden removal to increase

January and train derailment on the Blackwater line.

Coronado Global Resources Inc. Form 10-Q June 30, 202221


coal availability, higher maintenance cost and higher sales related costs, such as royalties, freight and demurrage costs.

Dividends

On

April 8, 2022, and June 21, 2022, Coronado
5,
2023,
the
Company
settled
its
previously
declared
dividends totaling $348.4
of
$8.4
million,
which
were
paid
to
stockholders from available cash.

Liquidity

As of
June 30,
2023, our
net cash
position, comprising
of $434.1
million cash
(excluding
restricted cash)
less
$242.3 million
aggregate principal
amount of
Notes outstanding,
was
$191.8
million.
Coronado
has available
liquidity of $534.1
million as of
June 30, 2022, the Company’s net cash position was $171.1 million, 2023,
consisting of cash (excluding
(excluding restricted cash) of $485.6
and $100.0 million and $314.5 million aggregate principal amount of Notes outstanding. Coronado has available liquidity of $585.6 million as of June 30, 2022, comprising cash (excluding restricted cash) and undrawn available borrowings
availability under our ABL facility.

facility fully undrawn.

Safety

For
our
Australian
Operations,
the
twelve-month
rolling
average
Total
Reportable
Injury
Frequency
Rate,
or
TRIFR, at
June 30, 2022
2023 was 4.08
2.52,
compared to
a rate
of 3.92
at the
end of
December 31,
2022. At
our
U.S.
Operations,
the
twelve-month
rolling
average
Total
Reportable
Incident
Rate,
or
TRIR, at
June
30,
2023
was
2.05,
compared to a rate of 3.072.42 at the end of December 31, 2021. At out U.S. Operations, the twelve-month rolling average Total Reportable Incident Rate, or TRIR, at June 30, 2022 was 2.01 compared to a rate of 2.51 at the end of December 31, 2021. 2022.
Reportable rates for our Australian and U.S.
Operations are below the relevant industry benchmarks.

Our
Logan
mining
complex
at
our
U.S.
Operations,
which
includes
multiple
underground
and
surface
mines,
achieved one million hours Lost Time Injury,
or LTI, free during the
quarter.
The health
and safety
of our
workforce is
our number
one priority
and Coronado remains focused on the
continues to
advance several
initiatives to improve our safety and wellbeing of all employees and contracting parties.

rates every quarter.

Segment Reporting

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

Results of Operations

How We Evaluate Our Operations

We
evaluate
our
operations
based
on
the
volume
of
coal
we
can
safely
produce
and
sell
in
compliance
with
regulatory
standards,
and
the
prices
we
receive
for
our
coal.
Our
sales
volume
and
sales
prices
are
largely
dependent upon
the terms
of our
coal sales
contracts, for
which prices
generally are
set based
on daily
index
averages, on a quarterly basis or annual fixed price contracts.

Our management
uses a
variety of
financial and
operating metrics
to analyze
our performance.
These metrics
are significant factors
in assessing our
operating results
and profitability.
These financial
and operating metrics to analyze our performance. These metrics are significant factors in assessing our operating results and profitability. These financial and operating metrics
include: (i) safety and environmental metrics; (ii) Adjusted EBITDA; (iii) total sales volumes and average realized
price
per
Mt
sold,
which
we
define
as
total
coal
revenues
divided
by
total
sales
volume;
(iv) Met
coal
sales
volumes and average realized Met price per
Mt sold, which we define as Met coal
revenues divided by Met coal
sales volume; (v) average
segment mining costs
per Mt sold,
which we define
as mining costs
divided by sales
volumes (excluding non-produced coal) for the respective segment; and (vi) average segment operating costs
per Mt
sold, which we define as segment operating costs divided by sales volumes for the respective segment.

Coal revenues are shown on our statementsegment; and (vii)

net cash, which we define
as cash and cash equivalents
(excluding restricted cash) less
outstanding aggregate
principal amount of 10.750% senior secured notes due 2026.
Coal
revenues
are
shown
on
our
statement
of
operations
and
comprehensive
income
exclusive
of
other
revenues.
Generally,
export
sale contracts
for our
Australian
Operations
require
us to
bear the
cost
of freight
from our mines to the
applicable outbound shipping
port, while freight costs
from the port to the
end destination
are typically
borne by the
customer. Sales to the
export market from
our U.S.
Operations are generally
recognized
when title to
the coal passes
to the customer
at the
mine load
out similar
to a
domestic sale.
For our
domestic
sales,
customers
typically
bear
the
cost
of
freight.
As
such,
freight
expenses
are
excluded
from
cost
of
coal
revenues to allow for consistency and comparability in
evaluating our operating performance.
Coronado Global Resources Inc.
Form 10-Q June 30, 2023
25
Non-GAAP Financial Measures; Other Measures

The
following
discussion
of
our
results
includes
references
to
and
analysis
of
Adjusted
EBITDA,
Segment
Adjusted EBITDA and
mining costs, which are
financial measures not recognized
in accordance with
U.S. GAAP.
Non-GAAP financial
measures, including
Adjusted EBITDA,
Segment Adjusted
EBITDA and
mining costs,
are
used by investors to measure our operating performance.

Adjusted EBITDA, a non-GAAP measure, is defined as earnings before interest, tax, depreciation, depletion and amortization and other foreign exchange losses. Adjusted EBITDA is also adjusted for certain discrete non-

Coronado Global Resources Inc. Form 10-Q June 30, 202222

amortization

andother
foreign
exchange
losses.
Adjusted
EBITDA
is
also
adjusted
for
certain
discrete
non-

recurring items that we exclude in

analyzing each of our segments’
operating performance. Adjusted EBITDA
is
not intended to
serve as an
alternative to U.S. GAAP
measures of performance
and may not
be comparable to
similarly titled measures presented by
other companies. A reconciliation
of Adjusted EBITDA to its
most directly
comparable measure under U.S. GAAP is included below.

Segment
Adjusted
EBITDA
is
defined
as
Adjusted
EBITDA
by
operating
and
reporting
segment,
adjusted
for
certain
transactions,
eliminations
or
adjustments
that
our
CODM
does
not
consider
for
making
decisions
to
allocate resources among segments or assessing segment performance.
Segment Adjusted EBITDA is used as
a supplemental
financial measure
by management
and by
external users
of our
financial statements,
such
as
investors, industry analysts and lenders, to assess the operating
performance of the business.

Mining costs,
a non-GAAP measure,
is based on
reported cost of
coal revenues, which
is shown
on our
statement
of
operations
and
comprehensive
income
exclusive
of
freight
expense,
Stanwell
rebate,
other
royalties,
depreciation,
depletion
and
amortization,
and selling,
general and
administrative
expenses,
adjusted for
other
items that do not relate directly to the costs incurred to produce coal at a mine. Mining costs excludes these cost
components as
our CODM
does not
view these
costs as
directly 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, 20222023 Compared to Three

Months Ended June 30, 2021

2022

Summary

The financial and operational highlights for the three months ended
June 30, 20222023 include:

Net
income
of
$91.3
million
for
the
three
months
ended
June
30,
2023,
was
$200.7
million
lower
compared
to
$292.0
million
for
the
three
months
ended
June
30,
2022. This
decrease
was
driven
by
lower revenues due to lower average realized Met coal
price per Mt sold,
partially offset by lower costs.
Sales volume totaled
4.0 MMt for
the three months
ended June 30,
2023, compared to
3.9 MMt for the
three months ended June
30, 2022. The higher
sales volumes were mainly
driven by higher production
due to weather conditions more favorable than 2022.
Average realized Met price per Mt sold of $219.5 for the three months ended June 30, 2022,2023, was 31.7%
lower compared to 4.5 MMt
record quarterly average
realized price of
$321.2 per Mt
sold for the
same period in
2022.
The
coking
coal
index
prices
remained
stable
during
the
second
quarter
of
2023,
however,
significantly, lower
than the same period in 2022.
Adjusted EBITDA
for the
three months
ended June
30, 2021. The lower sales volumes were mainly driven by above-average wet weather events at our Australian Operations and adverse geological conditions at our U.S. Operations.

Net income2023,

of $161.5
million,
a decrease
of $276.8
million, compared to $438.4 million for
the three months ended June 30, 2022, of $292.0 million increased by $347.1 million, from a net loss of $55.1 million for the three months ended June 30, 2021. This increase was driven by higher revenues partially offset by higher costs and income tax expense.

Although coking

largely 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

sales revenues partially offset by higherlower operating costs.

costs

.
As of
June
30, 2022, 2023,
the
Company had
total available
liquidity of $585.6
$534.1
million, consisting
of $485.6 $434.1
million cash (excluding restricted cash) and $100.0 million of availability
under the ABL Facility. The ABL Facility is subject to a springing fixed charge coverage ratio test if availability is less than a certain amount.

Coronado Global Resources Inc.
Form 10-Q June 30, 2023
26
Three months ended June 30,
2023
202223


Cost of Contents

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)

380,962
397,463
(16,501)
(4.2%)
Depreciation, depletion and amortization
38,880
51,384
(12,504)
(24.3%)
Freight expenses
57,443
67,026
(9,583)
(14.3%)
Stanwell rebate
29,049
40,532
(11,483)
(28.3%)
Other royalties
89,949
79,348
10,601
13.4%
Selling, general, and administrative expenses
9,981
10,376
(395)
(3.8%)
Total
costs and expenses
606,264
646,129
(39,865)
(6.2%)
Other income (expenses):
Interest expense, net
(14,180)
(17,482)
3,302
(18.9%)
Increase in provision for discounting and credit
losses
(269)
(156)
(113)
72.4%
Other, net
6,473
25,083
(18,610)
(74.2%)
Total
other expenses, net
(7,976)
7,445
(15,421)
(207.1%)
Net income before tax
113,286
394,020
(280,734)
(71.2%)
Income tax expense
(21,975)
(102,025)
80,050
(78.5%)
Net income attributable to Coronado Global
Resources, Inc.
$
91,311
$
291,995
$
(200,684)
(68.7%)
Coal Revenues

Coal revenues
were $1,021.0
$717.4
million
for
the
three
months
ended
June
30,
2023,
a
decrease
of
$303.6
million,
compared to
$1,021.0 million
for the
three months
ended June
30, 2022.
The decrease
was largely
a result
of
lower average realized Met
coal price of
$219.5 per Mt sold
for the three
months ended June 30,
2023, compared
to $321.2 per Mt sold for the same period in 2022.
Cost of Coal Revenues (Exclusive of Items Shown
Separately Below)
Cost of coal revenues comprise costs related
to produced tons sold, along with
changes in both the volumes and
carrying
values
of
coal
inventory.
Cost
of
coal
revenues
include
items
such
as
direct
operating
costs,
which
includes employee-related costs,
materials and
supplies, contractor services,
coal handling
and preparation costs
and production taxes.
Total
cost of coal revenues was $381.0 million for the three months ended June 30, 2022, an increase of $607.22023, $16.5 million, or 4.2%
lower, compared to $413.8 $397.5
million for the three months ended June 30, 2021. A continued strong price environment, due to supply disruptions caused by trade constraints2022.
Cost of coal revenues for Russian coal, has caused coal index prices to remain elevated above the historical average, which has resulted in the record quarterly average realized Met price per Mt sold of $321.2our U.S Operations for
the three months ended June 30, 2022, which2023, was 205.6% higher $12.9
million lower
compared to $105.1 per Mt sold for the same period in 2021. This increase was partially offset by lower Met coal sales volume of 3.9 MMt for the three
months ended June 30,
2022, comparedlargely due to 4.5
lower sales volume of
0.1 MMt, partially offset
by
inflationary
impact
on
labor
and
supply
costs.
Our
Australian
Operations
contributed
$3.6
million
to
the
decrease in 2021, total
cost of
coal revenues
primarily due to significant wet weather events and adverse geological conditions experienced by our mining operations.

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 average
foreign exchange
rate on translation
of the
Australian Operations
for the
three months
ended June
30, 2022 2023,
of A$/US$:
0.67 compared
to 0.72 compared to 0.77
for the same period in 2021.

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

same
period
in
2022,24


andlower
third
party
purchased
coal,
partially
offset
by
cost
of Contents

additional
fleets
to

advance pre-strip overburden removal.

Depreciation, Depletion and Amortization

Depreciation, depletion and
amortization was $38.9
million for the
three months ended
June 30, 2022 was
2023,
a decrease
of $12.5
million,
as compared
to $51.4
million 24.7% higher compared to $41.2 million
for the
three months
ended
June
30, 2021. 2022.
The higher depreciation decrease
was
associated with
assets fully
depreciated, lower depreciation
rates following annual
useful life
review and
favorable
average foreign exchange
rate on translation
of the Australian
Operations, partially offset by
additional equipment
brought into service during the twelve months since June 30, 2021, partially offset
2022.
Coronado Global Resources Inc.
Form 10-Q June 30, 2023
27
Freight Expenses
Freight expenses
relate to
costs associated
with rail
and port
providers, including
take-or-pay commitments
at
our
Australian
Operations,
and
demurrage
costs.
Freight
expenses
totaled
$57.4
million
for the
three
months
ended June 30, 2023, a decrease of
$9.6 million, compared to $67.0 million for the three
months ended June 30,
2022. Our U.S.
Operations’ freight cost contributed $8.1 million
to this decrease, driven by a
lower coal sales under
Free on
Board, or
FOB, terms,
compared to
the three
months ended
June 30,
2022, combined
with favorable average
foreign exchange rate on translation of our Australian
Operations.
Stanwell Rebate
The Stanwell rebate
was $29.0
million for
the three months
ended June
30, 2023,
a decrease
of $11.5
million,
compared to $40.5 million for the three months ended
June 30, 2022. The decrease was largely driven by lower
realized export
reference coal
pricing for
the prior
twelve-month period
applicable to
three months
ended June
30, 2023,
used to
calculate
the rebate
compared to
the same
period in
2022, and
favorable foreign
exchange
rate on translation of our Australian Operations.

Freight Expenses

Freight expenses include

Other Royalties
Other
royalties
were $89.9
million in
the
three
months
ended June
30, 2023,
an
increase
of $10.6
million,
as
compared to
$79.3 million
for the
three months
ended June
30, 2022.
Despite the
decrease in
coal revenues,
Other Royalties
have increased
due to the
adverse impact
of the new
Queensland Government
royalty regime
effective
from July
1, 2022
to our
Australian Operations,
partially offset
by favorable
foreign exchange
rate on
translation of our
Australian Operations.
The new royalty
regime has
resulted in
$29.4 million additional
royalty
costs associated with take-or-pay commitments for rail and port providers and demurrage costs. Freight expenses totaled $67.0 millionfor the three months ended June 30, 2022, an increase of $11.1 million,2023, compared to $55.9 million for the three months ended June 30, 2021. Our U.S. Operations’ freight cost contributed $11.3 million to this increase, driven by coal sales under certain contracts for which we arrange and pay for transportation to port that did not exist
to the same extentperiod in 2022.
Interest Expense, net
Interest expense,
net was
$14.2 million
in the
three
months ended
June 30,
2023, a
decrease
of $3.3
million
compared
to $17.5
million
for the
three
months
ended
June 30,
2022.
The decrease
was
due to
lower
Notes
outstanding during the three months ended June 30, 2021 and higher demurrage costs.

Stanwell Rebate

The Stanwell rebate was $40.5 million for the three months ended2023,

following redemptions since June 30, 2022, an increase 2022.
Income Tax Expense
Income
tax
expense
of $25.5
$22.0
million
for
the
three
months
ended
June
30,
2023,
decreased
by
$80.0
million,
compared to $15.1 million for the three months ended June 30, 2021. The increase was largely driven by higher realized export reference coal pricing for the prior twelve-month period used to calculate the rebate.

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 the

three 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 higher
lower income
before tax in the 20222023 period.

The income tax expense
for the three months
ended June 30, 2022
2023, is based on
an annual effective
tax rate of 24.7%, which has been favorably impacted by mine depletion in the United States.
21.9%.

Coronado Global Resources Inc.
Form 10-Q June 30, 2023
28
Six months ended June 30, 2022 Compared2023 compared to Six
months ended June 30, 2021

2022

Summary

The financial and operational highlights for the six months
ended June 30, 20222023 include:

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.

Net income of $561.9$199.2 million for the six months ended June
30, 2023, a decrease of $362.7 million, from
$561.9 million
for the
six months
ended June
30, 2022.
The decrease
was a
result of
lower revenues,
higher operating costs partially offset by lower income
tax expense.
Sales volume
totaled 7.6
MMt for
the six
months ended
June 30,
2023, or
0.7 MMt
lower than
the six
months
ended
June
30,
2022.
The
lower
sales
volumes
were
primarily
driven
by
the
impact
of
wet
weather
and
equipment
breakdowns
on
production
performance
and
coal
availability,
delay
on
production of required coal
qualities to meet sales
commitments and sales
slippage into next quarter
at
our Australian Operations combined with change in timing
of shipments at our U.S. Operations.
Average realized
Met price
per Mt
sold of
$229.1 for
the six
months ended
June 30,
2023 was
21.8%
lower compared to
$292.8 per Mt
sold for the
six months ended
June 30, 2022, increased by $658.0
as the Met
coal supply
has readjusted following the impact of the Russia and Ukraine war on the global coal supply chain in the
first half of 2022, combined
with improved supply from
Australia and weak demand from
steelmakers in
Asia and Europe.
Adjusted EBITDA
of $352.3
million from a net loss of $96.1for
the six
months ended
June 30,
2023, was
$497.1 million
lower
compared to $849.3 million for the six months ended
June 30, 2021. The increase2022. This decrease was driven by revenues, partially offset by higher costs and higher income tax expense.

a result of lower

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.

As of June 30, 2022, 2023,
the Company had net cash
of $171.1$191.8 million, consisting
of a closing cash balance (excluding
(excluding restricted cash)
of $485.6$434.1 million and $314.5
$242.3 million aggregate
principal
amount outstanding
of the Notes.

 

 

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%)

Six months ended June 30,
2023
2022
Change
%
(in US$ thousands)
Revenues:
Coal revenues
$
1,455,790
$
1,957,625
$
(501,835)
(25.6%)
Other revenues
37,450
22,204
15,246
68.7%
Total
revenues
1,493,240
1,979,829
(486,589)
(24.6%)
Costs and expenses:
Cost of coal revenues (exclusive of items
shown separately below)
761,436
754,963
6,473
0.9%
Depreciation, depletion and amortization
78,303
89,393
(11,090)
(12.4%)
Freight expenses
120,796
126,290
(5,494)
(4.4%)
Stanwell rebate
68,257
69,585
(1,328)
(1.9%)
Other royalties
175,906
162,380
13,526
8.3%
Selling, general, and administrative expenses
17,755
18,252
(497)
(2.7%)
Total
costs and expenses
1,222,453
1,220,863
1,590
0.1%
Other income (expenses):
Interest expense, net
(28,845)
(34,814)
5,969
(17.1%)
Decrease (increase) in provision for discounting
and credit losses
3,719
(584)
4,303
(736.8%)
Other, net
9,515
22,293
(12,778)
(57.3%)
Total
other income (expenses), net
(15,611)
(13,105)
(2,506)
19.1%
Net income (loss) before tax
255,176
745,861
(490,685)
(65.8%)
Income tax (expense) benefit
(56,005)
(183,968)
127,963
(69.6%)
Net income (loss)
199,171
561,893
(362,722)
(64.6%)
Net income (loss) attributable to Coronado Global
Resources, Inc.
$
199,171
$
561,893
$
(362,722)
(64.6%)
Coronado Global Resources Inc.
Form 10-Q June 30, 2023
29
Coal Revenues

Coal
revenues
were
$1,455.8
million
for
the
six
months
ended
June
30,
2023,
a
decrease
of
$501.8
million,
compared to $1,957.6 million for the six months
ended June 30, 2022, an increase of $1,176.7 million, compared to $781.0 million for the six months ended June 30, 2021. This increase2022. The
decrease was driven by favorable unfavorable
market conditions and higher
lower coal
indices, which resulted
in a higher lower
average realized Met
price per Mt
sold for the six months ended June 30, 2022 of $292.8,
$229.1
compared
to
$292.8
per
Mt
sold
combined
with
lower
sales
volume
of
7.6
million,
a
decrease
of
0.7
million,
compared to $99.8 per Mt sold for the same period in 2021.

2022.

Other Revenues
Other
revenues
were
$37.5
million
for
the
six
months
ended
June
30,
2023,
an
increase
of
$15.3
million,
compared
to
$22.2
million
for
the
six
months
ended
June
30,
2022.
This
increase
was
primarily
driven
by
a
termination fee revenue from a coal sales contract cancelled
at our U.S. Operations.
Cost of Coal Revenues (Exclusive of Items Shown
Separately Below)

Total
cost
of
coal
revenues
was
$761.4
million
for
the
six
months
ended
June
30,
2023,
a
decrease
of
$6.5
million, compared to $755.0 million for the six months
ended June 30, 2022, an increase2022.
Cost of $174.7
coal revenues
for our
Australian Operations
in the
six months
ended June
30, 2023,
were $8.4
million or 30.1%,
higher compared to $580.3 million for the six months ended June 30, 2021. Cost
same period in
2022, driven by the
continued impact of coal revenues for our U.S. Operationsinflation
on labor, contractor costs
and
other
supply
costs.
Higher
costs
were
partially
offset
by
the
impact
of
building
inventory
resulting
from
saleable production exceeding sales volume in the six months ended June 30, 2022 increased by $91.5 million, as compared to the same2023 period in 2021, driven by the impact of inflation on labor and supply costs, and adverse geological conditions in

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

translation of
the Australian
Operations for
the six months
ended June 30,
2023, of
A$/US$: 0.68
compared to
0.72 for the same
period in 2022.
Cost of coal
revenues for our
U.S. Operations were
$1.9 million lower
for the
six months ended June 30, 2022 of A$/US$: 0.722023, compared to 0.77 for the same
period in 2021.

2022.

Depreciation, Depletion and Amortization

Depreciation, depletion and amortization was $89.4
$78.3 million for the six months
ended June 30, 2022,2023, a decrease
of $4.9
$11.1
million,
as
compared
to $94.3
$89.4
million
for
the
six
months
ended
June
30, 2021.
2022.
The
decrease
was
associated with
assets fully
depreciated, lower production in our Australian Operations impacting assets depreciated under the units of production methoddepreciation
rates following annual
useful life
review and a
favorable
average foreign exchange
rate on translation
of the Australian
Operations, partially offset by
additional equipment
brought into service during the twelve months since June 30, 2021.

2022.
Freight Expenses

Freight
expenses
totaled
$120.8
million
for
the
six
months
ended
June
30,
2023,
a
decrease
of
$5.5
million,
compared to $126.2 million for the six months ended June 30, 2022, an increase 2022. Our Australian Operations contributed $7.5
million
to
this
decrease
due
to
lower
coal
sales
and
the
benefits
of $18.2 million,
lower
average
foreign
exchange
rate
on
translation
of
the
Australian
Operations,
partially
offset
by
higher
freight
costs
at
our
U.S.
Operations
due
to
higher coal sales on FOB terms compared to $108.0 million for the six
months ended June 30, 2021. Our U.S. Operations contributed to $21.82022.
Stanwell Rebate
The Stanwell
rebate was
$68.3 million of
for the increase due to certain contracts for which we arrange and pay for transportation to port that did not exist to the same extent in the
six months
ended June
30, 2021, partially offset by 2023,
a favorable average foreign exchange rate on translation decrease
of the Australian Operations.

Stanwell Rebate

The Stanwell rebate was$1.3

million, as
compared to $69.6 million for the six months ended June 30, 2022. The decrease was due to lower
export sales
volume and favorable average
foreign exchange rate on
translation of the Australian
Operations,
partially offset
by higher
realized export
reference coal
pricing for
the prior
twelve-month
period applicable
to the
six months
ended June 30, 2023, used to calculate the rebate compared
to the same period in 2022.
Other Royalties
Other
royalties
were
$175.9
million
for
the six
months
ended
June
30,
2023,
an
increase
of
$13.5
million,
as
compared to
$162.4 million
for the
six months
ended June
30, 2022.
Royalties have
increased compared
to a
significant decline in coal revenues due to the adverse impact of the new
royalty regime effective since from July
1, 2022 to our Australian Operations,
partially offset by lower sales volumes and favorable foreign exchange rate
on translation
of our
Australian Operations.
The new
royalty regime
resulted
in $58.7
million additional
royalty
costs for the six months ended June 30, 2023 compared
to the same period in 2022.
Decrease (increase) in Provision for Discounting and
Credit Losses
Decrease in provision for discounting and
credit losses of $3.7 million in the
six months ended June 30, 2023,
a
favorable movement
of $4.3 million
compared to
increase in
provision for
discounting and
credit losses
of $0.5
Coronado Global Resources Inc.
Form 10-Q June 30, 2023
30
million for the
six months ended
June 30, 2022.
The lower provision
was primarily driven
by timely collection
of
certain overdue trade receivables at December 31, 2022 during
the six months ended June 30, 2023.
Other, net
Other, net was $9.5 million
in the six months ended June 30, 2023, a decrease
of $12.8 million compared to the
net gain
of
$22.3
million
for
the six
months
ended
June
30,
2022.
The
decrease
was
driven
by
lower
foreign
exchange
gains
on
translation
of
short-term
inter-entity
balances
in
certain
entities
within
the
group
that
are
denominated in currencies other than their respective
functional currencies.
Income Tax Expense
Income
tax
expense
of
$56.0
million
for
the
six
months
ended
June
30,
2023
decreased
by
$128.0
million,
compared to
$184.0 million
tax expense
for the
six months
ended June
30, 2022,
primarily driven
by lower
net
income before tax in the 2023 period.
The income
tax expense
for the
six
months
ended
June
30, 2023
is based
on
an increase annual
effective
tax rate
of
21.9%.
Supplemental Segment Financial Data
Three months ended June 30, 2023 compared to three months
ended June 30, 2022
Australia
Three months ended June 30,
2023
2022
Change
%
(in US$ thousands)
Sales volume (MMt)
2.5
2.3
0.2
6.1%
Total
revenues ($)
431,806
578,388
(146,582)
(25.3)%
Coal revenues ($)
423,121
568,346
(145,225)
(25.6)%
Average realized price per Mt sold ($/Mt)
171.5
244.4
(72.9)
(29.8)%
Met sales volume (MMt)
1.7
1.5
0.2
11.8%
Met coal revenues ($)
403,861
543,345
(139,484)
(25.7)%
Average realized Met price per Mt sold ($/Mt)
237.7
357.4
(119.7)
(33.5)%
Mining costs ($)
225,757
205,272
20,485
10.0%
Mining cost per Mt sold ($/Mt)
92.6
94.1
(1.5)
(1.6)%
Operating costs ($)
376,380
381,907
(5,527)
(1.4)%
Operating costs per Mt sold ($/Mt)
152.6
164.2
(11.6)
(7.1)%
Segment Adjusted EBITDA ($)
54,700
196,315
(141,615)
(72.1)%
Coal revenues for our
Australian Operations,
for the three months
ended June 30, 2023,
were $423.1 million,
a
decrease of
$145.2 million
,
or 25.6%,
compared to
$568.3 million
for the
three months
ended June
30, 2022.
This decrease
was driven
by lower
average realized
Met coal price
per Mt
sold of
$237.7 for
the three
months
ended
June
30,
2023,
compared
to
$357.4
per
Mt
sold
for
the
same
period
in
2022
as
Met
coal
price
index
continues to
rebalance from
record highs
achieved in
the first
half of
2022 and
global supply
chain disruptions
stabilized readjusting coal
markets. The lower realized
pricing was partially offset
by higher sales volume
of $38.7 0.2
MMt due to improved production performance as a result of favorable weather conditions compared to the same
period in 2022.
Operating costs
were $376.4
million, a
decrease of
$5.5 million
or 1.4%,
for the
three months
ended June
30,
2023, compared to
$381.9 million
for the three
months ended June
30, 2022. The
decrease was
largely driven
by
lower
Stanwell
rebate,
lower
third-party
coal
purchases
due
to
higher
production,
and
favorable
average
foreign exchange on translation of the Australian Operations. This decrease was partially offset by higher mining
costs and higher royalties as
a result of the new royalty
regime introduced by the Queensland
government from
July
1,
2022.
Mining
costs
were
$20.5
million,
or
10.0%,
higher
for
the
three
months
ended
June
30,
2023,
compared
to
the
same
period
in
2022,
largely
driven
by
greater
pre-strip
activity
and
continued
inflationary
pressures
on contractor
and supply
costs.
Mining and
Operating cost
per Mt
sold for
the three
months ended
June 30, 2023 decreased by
$1.5 and $11.6 to $92.6 and $152.6 per Mt
sold, respectively, which benefitted from
higher sales volume in the 2023 period.
Coronado Global Resources Inc.
Form 10-Q June 30, 2023
31
Segment
Adjusted
EBITDA
of $54.7
million for
the three
months
ended June
30,
2023, decreased
by $141.6
million
compared
to
$196.3
million
for
the
three
months
ended
June
30,
2022,
largely
driven
by
lower
coal
revenues.
United States
Three months ended June 30,
2023
2022
Change
%
(in US$ thousands)
Sales volume (MMt)
1.5
1.6
(0.1)
(6.9)%
Total
revenues ($)
295,720
454,316
(158,596)
(34.9)%
Coal revenues ($)
294,324
452,651
(158,327)
(35.0)%
Average realized price per Mt sold ($/Mt)
196.4
283.4
(87.0)
(30.7)%
Met sales volume (MMt)
1.3
1.6
(0.3)
(17.3)%
Met coal revenues ($)
257,292
450,858
(193,566)
(42.9)%
Average realized Met price per Mt sold ($/Mt)
196.0
286.2
(90.2)
(31.5)%
Mining costs ($)
133,878
148,922
(15,044)
(10.1)%
Mining cost per Mt sold ($/Mt)
93.9
96.9
(3.0)
(3.1)%
Operating costs ($)
181,023
202,462
(21,439)
(10.6)%
Operating costs per Mt sold ($/Mt)
120.8
126.7
(5.9)
(4.7)%
Segment Adjusted EBITDA ($)
116,487
252,394
(135,907)
(53.8)%
Coal revenues decreased by $158.3 million,
or 35%, to $294.3 million
for the three months ended
June 30, 2023,
compared
to
$452.7
million
for
the
three
months
ended
June
30,
2022.
This
decrease
was
a
result
of
lower
average realized
Met price per
Mt sold
for the
three months
ended June
30, 2023, of
$196.0 per
Mt sold
compared
to $286.2 per Mt sold for the same period in 2022,
due to lower volatility in the coal market resulting in lower
but
stable
coal
price
indices.
Coal
revenues
were
also
impacted
by
lower
sales
volume
of
0.1
MMt
due
to
sales
deferred into the next quarter.
Operating costs
decreased
by $21.4
million, or
10.6%,
to $181.0
million for
the three
months ended
June 30,
2023, compared
to operating
costs of
$202.5 million
for the
three months
ended June
30, 2022.
The decrease
was largely driven by lower mining
costs, from building inventory as saleable production exceeded
sales volume,
and lower
freight expense
from lower
sales on
FOB terms.
This decrease
was partially
offset by
the continued
impact of inflation on supplies and labor costs.
Segment Adjusted
EBITDA of
$116.5
million for
the three
months ended
June 30,
2023, decreased
by $135.9
million compared to $252.4 million for the three
months ended June 30, 2022, primarily
driven by lower average
realized Met price per Mt sold,
partially offset by lower operating costs.
Corporate and Other Adjusted EBITDA
The following table presents a summary of the components
of Corporate and Other Adjusted EBITDA:
Three months ended June 30,
2023
2022
Change
%
(in US$ thousands)
Selling, general, and administrative expenses
$
9,981
$
10,376
$
(395)
(3.8)%
Other, net
(320)
(27)
(293)
n/m
Total
Corporate and Other Adjusted EBITDA
$
9,661
$
10,349
$
(688)
(6.6)%
n/m – Not meaningful for comparison.
Corporate
and
other
costs
of $9.6
million
for the
three
months
ended June
30,
2023, were
$0.7
million
lower
compared to $10.3 million for the three months ended
June 30, 2022, due to timing of certain corporate costs.
Coronado Global Resources Inc.
Form 10-Q June 30, 2023
32
Mining and operating costs for
the three months ended June
30, 2023 compared to three
months ended
June 30, 2022
A reconciliation of
segment costs and
expenses, segment operating
costs, and segment
mining costs is
shown
below:
Three months ended June 30, 2023
(in US$ thousands)
Australia
United
States
Other /
Corporate
Total
Consolidated
Total costs and
expenses
$
392,603
$
203,426
$
10,235
$
606,264
Less: Selling, general and administrative
expense
(9,981)
(9,981)
Less: Depreciation, depletion and amortization
(16,223)
(22,403)
(254)
(38,880)
Total
operating costs
376,380
181,023
557,403
Less: Other royalties
(77,725)
(12,224)
(89,949)
Less: Stanwell rebate
(29,049)
(29,049)
Less: Freight expenses
(37,216)
(20,227)
(57,443)
Less: Other non-mining costs
(6,633)
(14,694)
(21,327)
Total mining costs
225,757
133,878
359,635
Sales Volume excluding non-produced
coal
(MMt)
2.4
1.4
3.9
Mining cost per Mt sold ($/Mt)
92.6
93.9
93.1
Three months ended June 30, 2022
(in US$ 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 ($/Mt)
94.1
96.9
95.3
Average
realized
Met
price
per
Mt
sold
for
the
three
months
ended
June
30,
2023
compared
to
three
months ended June 30, 2022
A reconciliation of the Company’s average realized
Met price per Mt sold is shown below:
Three months ended June 30,
2023
2022
Change
%
(in US$ thousands)
Met sales volume (MMt)
3.0
3.1
(0.1)
(3.1)%
Met coal revenues ($)
661,153
994,203
(333,050)
(33.5)%
Average realized Met price per Mt sold ($/Mt)
219.5
321.2
(101.7)
(31.7)%
Coronado Global Resources Inc.
Form 10-Q June 30, 2023
33
Six months ended June 30, 2023 compared to Six
months ended June 30, 2022
Australia
Six months ended June 30,
2023
2022
Change
%
(in US$ thousands)
Sales volume (MMt)
4.7
5.1
(0.4)
(9.0)%
Total
revenues ($)
830,467
1,183,686
(353,219)
(29.8)%
Coal revenues ($)
813,925
1,164,644
(350,719)
(30.1)%
Average realized price per Mt sold ($/Mt)
175.0
227.9
(52.9)
(23.2)%
Met sales volume (MMt)
3.2
3.3
(0.1)
(2.8)%
Met coal revenues ($)
776,380
1,097,353
(320,973)
(29.2)%
Average realized Met price per Mt sold ($/Mt)
239.7
329.4
(89.7)
(27.2)%
Mining costs ($)
461,814
407,291
54,523
13.4%
Mining cost per Mt sold ($/Mt)
100.1
84.1
16.0
19.1%
Operating costs ($)
761,607
747,616
13,991
1.9%
Operating costs per Mt sold ($/Mt)
163.7
146.3
17.4
11.9%
Segment Adjusted EBITDA ($)
67,933
435,284
(367,351)
(84.4)%
Coal
revenues
for
our
Australian
Operations
for
the
six
months
ended
June
30,
2023
were
$813.9
million,
a
decrease of $350.7 million, or
30.1%, compared to $1,164.6 million
for the six months ended
June 30, 2022. This
decrease was driven by lower average realized
Met price per Mt sold of
$239.7, $89.7 lower compared to $329.4
per Mt
sold for
the six
months ended
June 30,
2022,
due to
decline in
coal indices
as supply
chain within
the
steel markets readjusted following
the Russia-Ukraine war as well
as overall weak demand from
steelmakers in
Asia and
Europe. Coal
revenues were
further impacted
by significant
wet weather
events and
their associated
recovery time
on production
performance resulting
in lower
sales volumes
of 4.7
MMt, 0.4
MMt lower
than the
six months ended June 30, 2022.
Operating costs increased
by $14.0 million,
or 1.9%, for
the six months
ended June 30,
2023, compared
to the
six months
ended June
30, 2022,
primarily driven
by higher
mining costs
and royalties
expense.
Mining costs
were $54.5
million higher
for the
six months
ended June
30, 2023,
due to
the continued
impact of
inflation on
contractor
and
supply
costs,
significant
overburden
removal
improving
coal
availability
for
the
second
half
of
2023.
Royalty
costs
were
higher
as
a
result
of
the
impact
of
the
amended
royalty
regime
introduced
by
the
Queensland
Government
applicable
from
July
1,
2022.
This
increase
was
partially
offset
by
lower
third-party
purchase coal
transactions,
favorable average
foreign exchange
on translation
of our
Australian Operations
to
U$ and lower Stanwell rebate and freight expenses. Increase costs combined with lower sales volumes resulted
in higher Mining and Operating costs per Mt sold of $16.0 and $17.4, respectively, compared to the same period
in 2022.
For the six months ended
June 30, 2023, Adjusted EBITDA of
$67.9 million, were $367.4 million lower compared
to $435.3 million for the six months
ended June 30, 2022.
This decrease was a result of lower
coal revenues
and
higher operating costs.
United States
Six months ended June 30,
2023
2022
Change
%
(in US$ thousands)
Sales volume (MMt)
3.0
3.2
(0.2)
(6.3)%
Total
revenues ($)
662,773
796,143
(133,370)
(16.8)%
Coal revenues ($)
641,865
792,981
(151,116)
(19.1)%
Average realized price per Mt sold ($/Mt)
215.6
250.5
(34.9)
(13.9)%
Met sales volume (MMt)
2.5
3.1
(0.6)
(19.7)%
Met coal revenues ($)
540,314
788,579
(248,265)
(31.5)%
Average realized Met price per Mt sold ($/Mt)
215.5
253.5
(38.0)
(15.0)%
Mining costs ($)
261,997
264,183
(2,186)
(0.8)%
Mining cost per Mt sold ($/Mt)
92.4
86.9
5.5
6.3%
Operating costs ($)
364,788
365,602
(814)
(0.2)%
Operating costs per Mt sold ($/Mt)
122.6
115.5
7.1
6.1%
Segment Adjusted EBITDA ($)
301,529
432,294
(130,765)
(30.2)%
Coronado Global Resources Inc.
Form 10-Q June 30, 2023
34
Coal revenues decreased by $151.1 million, or 19.1%, to $641.9 million for
the six months ended June 30, 2023,
as compared to $30.9$793.0
million for the six
months ended June 30,
2022. This decrease was
mainly due to lower
average realized
Met price
per Mt sold
for the six
months ended
June 30,
2023 of
$215.5 compared
to $253.5
per Mt sold for the same period in 2022, product mix and lower sales volume,
driven by adverse weather events
and unplanned maintenance which impacted production
in the 2023 period.
Operating costs of $364.8 million remained consistent compared to
$365.6 million for the six months ended
June
30,
2022.
Mining
costs
of
$262.0
million
for
the
six
months
ended
June
30,
2023
were
$2.2
million
lower
compared
to
the
2022
period,
driven
by
inventory
build
as
a
result
of
production
outweighing
sales
volume,
partially offset by continued
inflationary impact on labor
and supply costs. Mining
and Operating costs per
Mt sold
decreased by $5.5 and $7.1, respectively,
due to lower sales volume in the six months ended June
30, 2023.
Adjusted EBITDA
of $301.5
million decreased
by $130.8
million, or
30.2%, for
the six
months ended
June 30,
2023 compared to $432.3 million for the six months ended June 30, 2021. The increase was largely driven by higher realized export reference coal pricing for the prior twelve-month period used to calculate the rebate.

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%.

2022. This

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

lower coal revenues partially offset by higher operating costs.

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

revenues.

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

The following table presents a summary of the components
of 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%

Six months ended June 30,
2023
2022
Change
%
(in US$ thousands)
Selling, general, and administrative expenses
$
17,755
$
18,252
$
(497)
(2.7)%
Other, net
(569)
(21)
(548)
n/m
Total
Corporate and Other Adjusted EBITDA
$
17,186
$
18,231
$
(1,045)
(5.7)%
n/m – Not meaningful for comparison.

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 Corporate

and
other
costs
of
$17.2
million
for
the
six
months
ended
June
30, 202229


2023,were
$1.0
million
lower

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 June

30, 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.

Coronado Global Resources Inc.
Form 10-Q June 30, 202232

2023

Mining and operating costs for

the Six months ended June 30, 2022
2023 compared to Six months ended
June
30, 2022
A reconciliation of
segment costs and
expenses, segment
operating costs, and
segment mining costs
is shown
below:
Six months ended June 30, 2021

A reconciliation of segment2023

(in US$ thousands)
Australia
United
States
Other /
Corporate
Total
Consolidated
Total costs and
expenses segment
$
796,470
$
407,690
$
18,293
$
1,222,453
Less: Selling, general and administrative
expense
(17,755)
(17,755)
Less: Depreciation, depletion and amortization
(34,863)
(42,902)
(538)
(78,303)
Total operating costs and segment
761,607
364,788
1,126,395
Less: Other royalties
(150,718)
(25,188)
(175,906)
Less: Stanwell rebate
(68,257)
(68,257)
Less: Freight expenses
(71,035)
(49,761)
(120,796)
Less: Other non-mining costs
(9,783)
(27,842)
(37,625)
Total mining costs is shown below:

 

 

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

461,814
261,997
723,811
Sales Volume excluding non-produced
coal
(MMt)
4.6
2.8
7.4
Mining cost per Mt sold ($/Mt)
100.1
92.4
97.2
Six months ended June 30, 2022
(in US$ 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
Average realized Met price per Mt sold for
the Six months ended June 30, 2022
2023 compared to Six months
ended June 30, 2021

2022

A reconciliation of the Company’s average realized
Met price per Mt sold is shown below:

Six months ended June 30,
2023
2022
Change
%
(in US$ thousands)
Met sales volume (MMt)
5.7
6.4
(0.7)
(10.9)%
Met coal revenues ($)
1,316,694
1,885,932
(569,238)
(30.2)%
Average realized Met price per Mt sold ($/Mt)
229.1
292.8
(63.7)
(21.8)%

Coronado Global Resources Inc.
Form 10-Q June 30, 202233

2023

Reconciliation of Non-GAAP Financial Measures

Adjusted EBITDA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended June 30,

 

Six months ended June 30,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

 

 

(in US$ thousands)

 

 

(in US$ thousands)

Reconciliation to Adjusted EBITDA:

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

291,995

 

$

(55,085)

 

$

561,893

 

$

(96,057)

Add: Depreciation, depletion and amortization

 

 

51,384

 

 

41,212

 

 

89,393

 

 

94,293

Add: Interest expense (net of income)

 

 

17,482

 

 

16,596

 

 

34,814

 

 

31,731

Add: Other foreign exchange (gains) losses

 

 

(25,138)

 

 

140

 

 

(23,147)

 

 

1,889

Add: Loss on extinguishment of debt

 

 

 

 

5,744

 

 

 

 

5,744

Add: Income tax expense (benefit)

 

 

102,025

 

 

8,184

 

 

183,968

 

 

(10,884)

Add: Restructuring costs

 

 

 

 

2,300

 

 

 

 

2,300

Add: Losses on idled assets held for sale

 

 

456

 

 

836

 

 

1,842

 

 

2,330

Add: Increase (decrease) in provision for discounting and credit losses

 

 

156

 

 

(1,866)

 

 

584

 

 

(5,644)

Adjusted EBITDA

 

$

438,360

 

$

18,061

 

$

849,347

 

$

25,702

Adjusted EBITDA
Three months ended June 30,
Six months ended June 30,
(in US$ thousands)
2023
2022
2023
2022
Reconciliation to Adjusted EBITDA:
Net income
$
91,311
$
291,995
$
199,171
$
561,893
Add: Depreciation, depletion and amortization
38,880
51,384
78,303
89,393
Add: Interest expense (net of interest income)
14,180
17,482
28,845
34,814
Add: Other foreign exchange gains
(6,414)
(25,138)
(9,405)
(23,147)
Add: Income tax expense
21,975
102,025
56,005
183,968
Add: Losses on idled assets
1,325
456
3,076
1,842
Add: Increase (decrease) in provision for
discounting and credit losses
269
156
(3,719)
584
Adjusted EBITDA
$
161,526
$
438,360
$
352,276
$
849,347
Liquidity and Capital Resources

Overview

Our objective is
to maintain a
prudent capital structure
and to ensure
that sufficient
liquid assets and
funding is
available to meet both anticipated and
unanticipated financial obligations, including unforeseen events that could
have an
adverse impact
on revenues
or costs.
Our principal
sources of
funds are
cash and
cash equivalents,
cash flow from operations and availability under the ABL Facility.

our debt facilities.

Our main uses of cash have historically been, and are expected to continue to be, the funding of our operations,
working capital,
capital
expenditure,
debt
service
obligations,
business
or assets
acquisitions
and
payment
of
dividends. Based on our
outlook for the next
twelve months, which is subject
to continued changing demand from
our
customers,
volatility
in
coal
prices,
ongoing
interruptions
and
uncertainties
surrounding
China’s
import
restrictions, such as trade
barriers imposed by China
on Australian sourced coal
and the uncertainty of
impacts
from the
Russia and Ukraine
war on
the global
supply chain,
we believe
expected cash generated
from operations
together with
available borrowing
facilities and
other strategic
and financial
initiatives, will
be sufficient
to meet
the needs of our existing
operations, capital expenditure,
service our debt obligations
and, if declared, payment
of dividends.

Our ability to generate
sufficient cash depends
on our future performance
which may be subject
to a number of
factors
beyond
our
control,
including
general
economic,
financial
and
competitive
conditions
and
other
risks
described in this document
,
and Part I, Item
1A. “Risk Factors”
of our Annual
Report on Form
10-K for the year
ended December 31, 2021,
2022, filed
with the SEC
and ASX on
February 22, 2022,21, 2023
, and Part
II, Item
1A. “Risk Factors”
of our Quarterly Report
on Form 10-Q for the
quarterly period ended March 31, 2022,
2023, filed with the
SEC and ASX
on May 9, 2022.

8, 2023.

Liquidity as of June 30, 20222023 and December 31, 2021 2022
was as follows:

 

 

 

June 30,

2022

 

 

December 31, 2021

 

 

 

(in US$ thousands)

Cash, excluding restricted cash

 

$

485,632

 

$

437,679

Availability under ABL Facility (1)

 

 

100,000

 

 

100,000

Total

 

$

585,632

 

$

537,679

(in US$ thousands)
June 30, 2023
December 31,
2022
Cash, excluding restricted cash
$
434,078
$
334,378
Availability under ABL Facility
(1)
100,000
100,000
Total
$
534,078
$
434,378
(1)
The ABL
Facility contains
a springing
fixed charge
coverage ratio
of not
less than
1.00 to
1.00, which
ratio is
tested if
availability under
the ABL facility
is less than $17.5
$17.5 million
for five consecutive
business days
or less than $15.0
$15.0 million on
any business day.

Coronado Global Resources Inc.
Form 10-Q June 30, 202234

2023

Our total indebtedness as of June 30, 20222023 and December

31, 20212022 consisted of the following:

 

 

 

June 30,

2022

 

 

December 31, 2021

 

 

 

(in US$ thousands)

Current installments of interest bearing liabilities

 

$

314,453

 

$

315,000

Current installments of other financial liabilities and finance lease obligations

 

 

4,042

 

 

8,634

Other financial liabilities and finance lease obligations, excluding current installments

 

 

11,268

 

 

14,031

Total

 

$

329,763

 

$

337,665

(in US$ thousands)
June 30, 2023
December 31,
2022
Current installments of interest bearing liabilities
$
242,326
$
242,326
Current installments of other financial liabilities and finance
lease obligations
4,013
4,585
Other financial liabilities and finance lease obligations, excluding current
installments
7,031
8,336
Total
$
253,370
$
255,247
Liquidity

As of June
30, 2022,2023, available
liquidity was $585.6
$534.1 million, comprising comprised
of cash
and cash
equivalents (excluding
restricted cash) of $485.6$434.1 million and $100.0 million of
available borrowings under our ABL Facility.
As
of
December
31,
2022,
available
liquidity
was
$434.4
million,
comprised
of
cash
and
cash
equivalents
(excluding restricted cash) of $334.4 million and $100.0
million of available borrowings under our ABL Facility.

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.

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-termshort-
term interest-bearing deposit accounts or used to repay
interest bearing liabilities.

Senior Secured Notes

As of June 30, 2022, 2023,
the outstanding principal amount
of our Notes was $314.5 $242.3
million. Interest on the
Notes is
payable semi-annually in arrears on May 15 and November 15 of each
year. The Notes mature on May 15, 2026
and are senior secured obligations of the Company.

The Notes are guaranteed
on a senior secured
basis by the Company
and its wholly-owned
subsidiaries (other
than
the
Issuer) (subject
(subject
to
certain
exceptions
and
permitted
liens)
and
secured
by
(i)
a
first-priority
lien
on
substantially all of the Company’s assets and the assets of the other guarantors (other than accounts
receivable
and other rights to payment,
inventory,
intercompany indebtedness, certain
general intangibles and commercial
tort claims, commodities accounts, deposit accounts, securities accounts and other related assets and proceeds
and
products
of
each
of
the
foregoing,
or,
collectively,
the
ABL
Collateral),
or
the
Notes
Collateral,
and
(ii)
a
second-priority lien on the ABL Collateral, which is
junior to a first-priority lien, for the
benefit of the lenders under
the ABL Facility.

The terms
of the
Notes are
governed
by the
Indenture.
The Indenture
contains
customary covenants
for high
yield bonds, including,
but not limited
to, limitations on
investments, liens, indebtedness,
asset sales, transactions
with affiliates and restricted payments, including payment
of dividends on capital stock.

The Company may redeem any of the Notes beginning on May 15, 2023. The initial redemption price of the Notes is 108.063% of their principal amount, plus accrued and unpaid interest, if any, to, but excluding, the redemption date. The redemption price will decline each year after May 15, 2023, and will be 100% of the principal amount of the Notes, plus accrued and unpaid interest, beginning on May 15, 2025. The Company may also
redeem some or
all of the
Notes at any timethe
redemption prices and
on the terms
specified in the
Indenture. In addition, the Company may,
from time to time, priorseek to May 15, 2023retire or purchase outstanding
debt through
open-market purchases,
privately negotiated
transactions or
otherwise. Such
repurchases, if
any,
will be
upon
such terms and at a price equal to 100% ofsuch prices as the principal amount thereof plus a “make-whole” premium, plus accrued and unpaid interest, if any, to, but excluding, the redemption date. The Company may also redeem a portiondetermine, and will depend on prevailing market conditions,
liquidity requirements, contractual restrictions and other
factors.
As of the Notes under certain circumstances prior to May 15, 2023.

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 all

applicable
covenants under the Indenture.

Coronado Global Resources Inc. Form 10-Q June 30, 202235


ABL Facility

The ABL
Facility,
dated May
12, 2021,
is for
an aggregate
multi-currency
lender commitment
of up
to $100.0
million, including a $30.0 million sublimit for the issuance of letters of credit
and $5.0 million for swingline loans, at
any
time
outstanding,
subject
to
borrowing
base
availability.
The
ABL
Facility
will
mature
on
May
12,
2024.
Borrowings under the ABL
Facility bear interest at
a rate equal to
a BBSY rate plus
an applicable margin.
As at of
June 30, 2022,2023, no amounts were drawn and no letters
of credit were outstanding under the ABL Facility.

As of June 30, 2022,2023, we were in compliance with all applicable
covenants under the ABL Facility.
Coronado Global Resources Inc.
Form 10-Q June 30, 2023
38
Refinance update
On May 8, 2023, we
entered into the New
ABL Facility which will
provide for up to $150.0
million in borrowings,
including a $100.0
million sublimit for
the issuance of
letters of credit
and $70.0 million
sublimit for revolving
credit
facility.
Availability under
the New
ABL Facility
is limited
to an
eligible borrowing
base, determined
by applying
customary advance rates to eligible accounts receivable and
inventory. The New
ABL Facility matures in 2026.
On August 3, 2023, all
the conditions precedent under
the New ABL Facility agreement
were satisfied, at which
time the New ABL Facility became effective and
the ABL Facility was terminated in accordance with
its terms.
Bank Guarantees and Surety Bonds

We
are
required
to
provide
financial
assurances
and
securities
to
satisfy
contractual
and
other
requirements
generated in the
normal course of
business. Some of
these assurances are provided
to comply with
state or other
government agencies’ statutes and regulations.
As of June 30, 2022, required by certain agreements,
we had outstanding bank guarantees of $45.3 million to secure various obligations and commitments. The Company provided cash collateral in the form
of deposits in the amount of $89.5
million
and $89.1 million as of June
30, 2023, and December 31, 2022, respectively, to provide back-to-back support for
bank guarantees,
financial
payments, other
performance
obligations, various
other operating
agreements
and
contractual obligations
under workers
compensation insurance.
These deposits
are restricted
and classified
as
long-term assets in the unaudited Condensed Consolidated
Balance Sheets.
In accordance with the terms of the ABL Facility, we may be required to cash collateralize the ABL Facility to the
extent of
outstanding letters
of credit
after the
expiration or
termination date
of such
letter of
credit. As
of June
30, 2023, no letter of credit was outstanding and no cash
collateral against these bank guarantees.

was required.

For the U.S. Operations
in order to provide
the required financial
assurance, we generally
use surety bonds
for
post-mining reclamation. We can also use bank letters
of credit to collateralize certain obligations. As
of June 30, 2022,
2023,
we
had
outstanding
surety
bonds
of $27.8
$40.8
million
and
letters
of
credit
of $16.8
$16.8
million
issued
from
our
available bank guarantees, to
meet contractual obligations under
workers compensation insurance and to
secure various
other obligations and commitments.
For the
Australian Operations, we
had bank
guarantees outstanding of
$24.2 million as
at June
30, 2023,
primarily
in respect of certain rail and port arrangements of the Company.
As at June
30, 2023,
we had total
outstanding bank
guarantees provided
of $41.0
million to
secure obligations
and commitments. Future
regulatory changes relating
to these obligations
could result in
increased obligations,
additional costs or additional collateral requirements.

Dividend

On February 24, 2022,21,
2023, our Board
of Directors declared an unfranked
a bi-annual fully
franked fixed ordinary
dividend of 9.0 $8.4
million, or 0.5
cents per CDI (USD). The dividend had a record date of March 18, 2022 and was paid on April 8, 2022.

CDI.

On April 26, 2022, we amended our dividend policy with plans to pay a fixed cash dividend
5, 2023, the
Company paid $8.3
million, 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 foreign
exchange
gain on payment of dividends remains atto certain CDI holders who elected
to be paid in Australian dollars.
On August 7, 2023, the discretion of our Board of Directors.

On May 9, 2022, our Company’s

Board of Directors declared a special unfrankedbi-annual
fully franked fixed ordinary dividend
of $99.5$8.4 million,
or 5.90.5 cents per CDI, reflecting the unaccepted portion of the offer to purchase the Notes made in connection with the dividend declared on February 24, 2022, and a special unfranked dividend of $100.6 million, or 6.0 cents per CDI.
The dividend had a record date of May 31, 2022 and was paid on June 21, 2022.

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,
Australia
time.
CDIs
will
be
quoted
“ex”
dividend
on
September
28,
2023,
Australia
time.
The
total
ordinary dividends of $125.7 million
dividend will be funded from available cash.

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.

Capital Requirements

Our main uses of cash have historically been the funding
of our operations, working capital, capital expenditure,
the payment of
interest and dividends.
We intend
to use cash
to fund debt
service payments
on our Notes,
the
New ABL Facility and our
other indebtedness, to fund
operating activities, working capital,
capital expenditures,
partial redemption of the Notes, business or assets acquisitions
and, if declared, payment of dividends.

Coronado Global Resources Inc.
Form 10-Q June 30, 202236

2023

Historical Cash Flows

The following table summarizes our cash flows for the threesix months ended June 30, 2023 and
2022, and 2021, as reported in
the accompanying consolidated financial statements:

Cash Flow

 

 

Three months ended June 30,

 

 

 

2022

 

 

2021

 

 

(in US$ thousands)

Net cash provided by operating activities

 

$

518,292

 

$

56,924

Net cash used in investing activities

 

 

(93,520)

 

 

(122,923)

Net cash (used in) provided by financing activities

 

 

(355,591)

 

 

128,709

Net change in cash and cash equivalents

 

 

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

Six months ended June 30,
(in US$ thousands)
2023
2022
Net cash provided by operating activities
$
223,874
$
518,292
Net cash used in investing activities
(105,074)
(93,520)
Net cash used in financing activities
(9,933)
(355,591)
Net change in cash and cash equivalents
108,867
69,181
Effect of exchange rate changes on cash and restricted
cash
(9,166)
(21,228)
Cash and restricted cash at beginning of period
334,629
437,931
Cash and restricted cash at end of period
$
434,330
$
485,884
Operating activities

Net cash provided by operating activities was $518.3$223.9 million
for the six months ended June 30, 2022, 2023, compared
to $518.3
million for
the six
months ended
June 30,
2022. The
decrease in
cash from
operating activities
was
driven by the lower revenue and higher operating costs.
Investing activities
Net cash
used in
investing activities
was $105.1
million
for the
six months
ended June
30, 2023,
compared to $56.9
$93.5 million
for the
six months
ended June
30, 2022.
Cash spent
on capital
expenditures
for the
six
months
ended June 30,
2023 was
$104.8 million, of
which $27.4 million
related to the
Australian Operations
and $77.4
million related to the U.S. Operations.
Financing activities
Net cash used in financing activities was $9.9
million
for the six months ended June 30, 2021. The increase was driven by higher coal revenues due2023, compared to increasecash
used
in
financing
activities
of
$355.6
million
for
the
six
months
ended
June
30,
2022.
The
net
cash
used
in
financing activities
for the six
months ended June
30, 2023 largely
related to dividends
payment of $8.4
million
and repayment of borrowings and other financial liabilities
of $1.5 million.
Included in the average realized Met coal pricing partially offset by higher operating costs and unfavorable working capital movement, mainly in trade receivables.

Investing activities

Netnet cash used in investing

financing activities was $93.5million for the six
months ended June 30, 2022, compared to $122.9
were dividends paid of
$348.4 million for the six months ended June 30, 2021. Cash spent on capital expenditures for the six months ended June 30, 2022 was $87.9 million, of which $36.5 million related to the Australian Operations,$51.1 million related to the U.S. Operations and the remaining $0.3 million for other and corporate. During the six months ended June 30, 2022, a net of $3.5 million of additional deposits were provided as collateral for our U.S. workers compensation obligations and $2.4 million of additional security deposit was provided by our Australian Operations to satisfy contractual requirements generated in the normal course of business.

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 other

financial liabilities of $365.4 million and net proceeds from the stock issuance of $97.7$7.1 million.

Contractual Obligations

There were no
material changes
to our contractual
obligations from
the information
previously provided
in Item
7. “Management’s
“Management’s
Discussion
and
Analysis
of
Financial
Conditions
and
Results
of
Operations”
of
our
Annual
Report on Form 10-K for the year ended December 31, 2021,2022, filed with the SEC and
ASX on February 22, 2022.

21, 2023.

Critical Accounting Policies and Estimates

The preparation
of
our
financial
statements
in
conformity
with
U.S. GAAP
requires
us to
make
estimates
and
assumptions that affect the
reported amounts of assets and liabilities
at the date of the financial statements
and
the reported
amounts of
revenue and
expenses during
the reporting
period. On
an ongoing basis,
we evaluate
our estimates. Our estimates are
based on historical experience
and various other assumptions
that we believe
are appropriate,
the results
of which form
the basis
for making
judgements about
the carrying values
of assets
and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates. All
of these accounting estimates and assumptions, as well as the resulting impact to
our financial statements, have
been discussed with the Audit Committee of our Board
of Directors.

Coronado Global Resources Inc. Form 10-Q June 30, 202237

Our

criticalaccounting

Our critical accounting

policies
are discussed
in
Item
7. “Management’s
Discussion
and
Analysis
of Financial
Condition and Results of
Operations” of our Annual
Report on Form 10-K for
the year ended December
31, 2021, 2022,
filed with the SEC and ASX on February 22, 2022.21, 2023.
Coronado Global Resources Inc.
Form 10-Q June 30, 2023
40
Newly Adopted Accounting Standards and Accounting
Standards Not Yet Implemented

See
Note
2.
(a) “Newly
“Newly
Adopted
Accounting
Standards”
to
our
unaudited
condensed
consolidated
financial
statements
for
a
discussion
of
newly
adopted
accounting
standards.
As
of
June
30, 2022,
2023,
there
were
no
accounting standards not yet implemented.

Coronado Global Resources Inc.
Form 10-Q June 30, 202238

2023

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, such
as commodity
price risk,
interest rate
risk, foreign
currency risk, liquidity risk and credit
risk. The overall risk management objective is
to minimize potential adverse
effects on our financial performance from those risks
which are not coal price related.

We manage
financial risk
through policies
and procedures
approved by
our Board
of Directors.
These specify
the responsibility
of the
Board
of Directors
and
management
with regard
to the
management
of financial
risk.
Financial risks are
managed centrally by
our finance
team under the
direction of the
Group Chief
Financial Officer.
The finance team manages risk exposures primarily through delegated authority limits approved by the Board of
Directors. The finance team regularly monitors our exposure
to these financial risks and reports to management
and
the
Board
of
Directors
on
a
regular
basis.
Policies
are
reviewed
at
least
annually
and
amended
where
appropriate.

We may use
derivative financial instruments such
as forward fixed
price commodity contracts, interest
rate swaps
and
foreign
exchange
rate
contracts
to
hedge
certain
risk
exposures.
Derivatives
for
speculative
purposes
is
strictly prohibited by the Treasury Risk Management Policy approved by our Board of
Directors. We use different
methods
to
measure
the
extent
to
which
we
are
exposed
to
various
financial
risks.
These
methods
include
sensitivity analysis
in the
case of
interest rate, rates,
foreign exchange
and other
price risks
and aging
analysis
for
credit risk.

Commodity Price Risk

Coal Price Risk

We
are
exposed
to
domestic
and
global
coal
prices.
Our
principal
philosophy
is
that
our
investors
would
not
consider
hedging
of
coal
prices
to
be
in
the
long-term
interest
of
our
stockholders.
Therefore,
any
potential
hedging of coal prices through long-term fixed price contracts is subject to the approval of our Board of Directors
and would only be adopted in exceptional circumstances.

The
expectation
of
future
prices
for
coal
depends
upon
many
factors
beyond
our
control.
Met
coal
has
been
volatile commodity
over the
past ten
years. Recently,
in the
second quarter
of 2022,
seaborne prices
reached
record levels with both the Australian and U.S. Met coal price indices exceeding $600 per Mt, largely as result of
supply concerns
in key
Met coal
markets and
continued trade
flow disruptions
caused by
geopolitical tensions
following Russian
invasion
of Ukraine.
The demand
and supply
in the
Met coal
industry changes
from time
to
time. There are no assurances that oversupply will not occur, that demand will not decrease or that overcapacity
will not
occur,
which could
cause declines
in the
prices of
coal, which
could have
a material
adverse effect
on
our financial condition and results of operations.
Access to
international markets
may be
subject to
ongoing interruptions
and trade
barriers due
to policies
and
tariffs of individual countries. For example, the imposition of
tariffs and import quota restrictions by China on U.S.
and Australian coal
imports, respectively, including the ongoing suspension of imports of Australian coal into China,
may in the future
have a negative
impact on our
profitability.
We may
or may not be able to access alternate markets of our coal should additional interruptions and
or trade barriers occur
in the future. An
inability for metallurgical coal
suppliers to access
international markets, including China,
would
likely
result
in
an
oversupply
of
Met
coal
and
may
result
in
a
decrease
in
prices
and
or
the
curtailment
of
production.

We manage
our commodity
price risk
for our non-trading,
thermal coal
sales through
the use
of long-term
coal
supply agreements in our
U.S. Operations. In Australia, thermal
coal is sold
to Stanwell on a
supply contract. See
Item
1A. “Risk
“Risk
Factors—Risks
related
to
the
Supply
Deed
with
Stanwell
may
adversely
affect
our
financial
condition and results of operations” in our Annual Report on Form 10-K filed with the SEC and ASX on February 22, 2022.

21, 2023.
Sales commitments in the
Met coal market are typically
not long-term in nature,
and we are therefore subject
to
fluctuations in
market pricing.
Certain coal
sales in our Australian Operations are
provisionally priced
initially.
Provisionally priced
sales are
those for which price finalization,
referenced to the relevant index,
is outstanding at the reporting
date. The final
sales price is determined
within 7 to 90
days after delivery
to the customer. At
As of June 30, 2022, there were $49.8
2023, we had $13
.7
million
of
outstanding
provisionally
priced receivables
subject
to changes
in
the
relevant
price
index.
If
prices were to decrease
decreased
10%,
these
provisionally
priced
receivables
would
decrease
by $5.0
$1.4
million.
See item
Item
1A. “Risk
“Risk
Factors—Our profitability
depends upon
the prices
we receive
for our
coal. Prices
for coal
are volatile
and can
fluctuate widely
based upon
a number
of factors
beyond our
control” in
our Annual
Report on
Form 10-K
filed
with the SEC and ASX on February 22, 2022.21, 2023.
Coronado Global Resources Inc.
Form 10-Q June 30, 2023
42
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.

The fuel
required
for
our operations in
for
the remainder
of fiscal
year 2022
2023
will
be
purchased
under
fixed-price
contracts or on a spot basis.

Coronado Global Resources Inc. Form 10-Q June 30, 202239


Interest Rate Risk

Interest rate risk is the risk that a change in interest rates
on our borrowing facilities will have an adverse impact
on
our
financial
performance,
investment
decisions
and
stockholder
return.
Our
objectives
in
managing
our
exposure
to
interest
rates
include
minimizing
interest
costs
in
the
long
term,
providing
a
reliable
estimate
of
interest costs for the
annual work program
and budget and
ensuring that changes
in interest rates will
not have
a material impact on our financial performance.

As of June 30, 2022,
2023, we had $329.8 $253.4
million of fixed rate
borrowings and Notes and
no variable-rate borrowings
outstanding.

We currently do not hedge against interest rate
fluctuations.

Foreign Exchange Risk

A significant portion of our
sales are denominated in US$.
Foreign exchange risk is
the risk that our earnings
or
cash flows are adversely impacted by movements in exchange
rates of currencies that are not in US$.

Our main exposure
is to the
A$-US$ exchange rate
through our Australian
Operations, which have
predominantly
A$ denominated costs. Greater than 76.5%60% of expenses incurred at our Australian Operations are denominated in
A$. Approximately 23.5%40% of our
Australian Operations’ purchases are made with
reference to US$, which provides
a natural hedge against foreign
exchange movements on these
purchases (including fuel, some several
port handling
charges, demurrage,
purchased coal
and some
insurance premiums).
Appreciation of
the A$
against US$
will
increase our Australian
Operations’ US$ reported
cost base and
reduce US$ reported
net income. For
the portion
of US$ required to purchase A$ to settle our Australian Operations’ operating costs, a 10% increase in the A$ to
US$ exchange rate would increase reported
total costs and expenses by approximately $36.0
$26.0 million and $61.7$51.7
million for the three and six months ended June 30, 2022, respectively.

2023, respectively

.
Under normal market conditions, we generally do not consider it necessary to hedge our
exposure to this foreign
exchange risk.
However,
there
may be
specific commercial
circumstances,
such
as the
hedging
of significant
capital
expenditure,
acquisitions,
disposals
and
other
financial
transactions,
where
we
may
deem
foreign
exchange hedging
as appropriate
and
where a
US$ contract
cannot
be negotiated
directly with
suppliers
and
other third parties.

For our Australian
Operations, we
translate all
monetary assets
and liabilities
at the period-end
exchange rate,
all
nonmonetary
assets
and
liabilities
at
historical
rates
and
revenue
and
expenses
at
the
average
exchange
rates in effect during
the periods. The net
effect of these
translation adjustments is
shown in the accompanying
consolidated financial statements within components of
net income.

We currently do not hedge our non-US$ exposures
against exchange rate fluctuations.

Credit Risk

Credit risk is the risk of
sustaining a financial loss
as a result of a counterparty
not meeting its obligations under
a financial instrument or customer contract.

We are exposed
to credit risk
when we have financial
derivatives, cash deposits,
lines of credit,
letters of credit
or bank guarantees
in place with
financial institutions. To mitigate against credit risk
from financial counterparties,
we have minimum credit rating requirements with financial
institutions where we transact.

We
are
also
exposed
to
counterparty
credit
risk
arising
from
our
operating
activities,
primarily
from
trade
receivables. Customers who wish to trade on
credit terms are subject to credit
verification procedures, including
an assessment of their independent credit rating, financial position, past experience and industry reputation. We
monitor the financial performance
of counterparties on a routine
basis to ensure credit
thresholds are achieved.
Where required, we will request additional credit
support, such as letters of credit,
to mitigate against credit risk.
Credit
risk
is
monitored
regularly,
and
performance
reports
are
provided
to
our
management
and
Board
of
Directors.
As of
June 30,
2023, we
had financial
assets of
$823.4 million,
comprising
of cash
and restricted
cash,
trade
receivables and
restricted deposits,
which are
exposed to
counterparty credit
risk. These
financial assets
have
been assessed under ASC
326,
Financial Instruments – Credit risk is monitored regularly,Losses
, and performance reports are provided to our managementa provision
for discounting and Boardcredit
losses of Directors.

$1.4 million was recorded as of June 30, 2023
.

Coronado Global Resources Inc.
Form 10-Q June 30, 202240

2023

ITEM 4.
CONTROLS AND PROCEDURES

item 4. Controls and Procedures

Disclosure Controls and Procedures

We
maintain
disclosure
controls
and
procedures
that
are
designed
to
ensure
that
information
required
to
be
disclosed in our Exchange Act reports is recorded, processed, summarized
and reported within the time periods
specified
in
the
SEC’s
rules
and
forms,
and
that
such
information
is
accumulated
and
communicated
to
our
management, including the
Chief Executive Officer
and the Group
Chief Financial Officer, as appropriate,
to allow
timely
decisions
regarding
required
disclosure
based
solely
on
the
definition
of “disclosure
“disclosure
controls
and
procedures” in Rule 13a-15(e) promulgated under the
Exchange Act. In designing and evaluating the disclosure
controls
and
procedures,
management
recognized
that
any
controls
and
procedures,
no
matter
how
well
designed and operated, can provide only reasonable
assurance of achieving the desired control
objectives, and
management necessarily was
required to apply
its judgment in
evaluating the cost-benefit
relationship of possible
controls and procedures.

As of the end
of the period
covered by this Quarterly
Report on Form
10-Q, we carried
out an evaluation
under
the supervision and
with the participation
of our
management, including the
Chief Executive Officer
and the
Group
Chief Financial
Officer, of the effectiveness of
the design and
operation of
our disclosure controls
and procedures.
Based on
the foregoing,
the
Chief Executive
Officer
and the
Group Chief
Financial
Officer
concluded
that our
disclosure controls and procedures were effective.

Changes to Internal Control over Financial Reporting

During the
fiscal quarter covered
by this
Quarterly Report on
Form 10-Q,
there were
no changes
in the
Company's
internal
control
over
financial
reporting,
as
such
term
is
defined
in
Rule
13a-15(f)
of
the
Exchange
Act,
that
materially affected,
or are
reasonably
likely to
materially
affect,
the
Company’s
internal control controls
over financial reporting, as such term is defined in Rule 13a-15(f)
reporting.

Coronado Global Resources Inc.
Form 10-Q June 30, 202241

2023

PART II – OTHER

INFORMATION

ITEM 1.

item 1. lEGALLEGAL PROCEEDINGS

We are subject to various legal
and regulatory proceedings. For a description of
our significant legal proceedings
refer
to
Note 14.15. “Contingencies” to
the
unaudited
condensed
consolidated
financial
statements
included
in
Part I,
Item 1. “Financial
Statements”
of
this
Quarterly
Report,
which
information
is
incorporated
by
reference herein.

herein.

ITEM 1A.

RISK FACTORS

Except as set forth below, there

There were no material changes
to the risk factors previously
disclosed in Part I, Item
1A, “Risk Factors”, ofof our
Annual Report on
Form 10-K for
the year ended
December 31, 2021,
2022, filed with
the SEC
and ASX on
February 22, 2022,
21, 2023 and
Part II, Item 1A.
1A, “Risk Factors”, of
our Quarterly Report on
Form 10-Q for
the quarterly period ended
March 31, 2022,2023, filed with the SEC and ASX on May 9, 2022:

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.

8, 2023.
ITEM 2.

item 2. UNREGISTERED SALES OF EQUITY SECURITIES

AND USE OF PROCEEDS

None.

Coronado Global Resources Inc. Form 10-Q June 30, 202242


ITEM 3.
DEFAULTS

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.

Resources Inc.

Our U.S. Operations
include multiple mining
complexes across
three states and
are regulated by
both the U.S.
Mine Safety
and Health
Administration, or
MSHA, and
state regulatory
agencies. Under
regulations mandated
by the Federal Mine Safety and Health Act of 1977, or the Mine Act, MSHA inspects our U.S. mines on a regular
basis and issues various citations and orders when it believes
a violation has occurred under the Mine Act.

In accordance
with
Section 1503(a) of
the
Dodd-Frank
Wall
Street
Reform
and
Consumer
Protection
Act
and
Item
104
of
Regulation
S-K (17
(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.

During the
quarter ended
June 30,
2023, no
director or
officer (as
defined in
Rule 16a-1(f)
promulgated under
the Exchange

Act)

of the
Company
adopted
or
terminated
a “Rule
10b5-1
trading arrangement”
or “
non-Rule
10b51
- trading
arrangement
” (as each term is defined in Item 408 of Regulation S-K).
Coronado Global Resources Inc.
Form 10-Q June 30, 2023
45
ITEM 6.
EXHIBITS

The following documents are filed as exhibits hereto:

Exhibit No.
Description of Document
3.1
Amended 

Exhibit No.andRestatedCertificateofIncorporation(filedasExhibit3.1tothe

Description of Document

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

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

Acknowledgement of Independent Registered Public Accounting Firm

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

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

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

101.INS

Inline XBRL Instance Document

101.SCH

Inline XBRL Taxonomy Extension Schema Document

101.CAL

Inline XBRL Taxonomy Extension Calculation Linkbase Document

101.DEF

Inline XBRL Taxonomy Extension Definition Linkbase Document

101.LAB

Inline XBRL Taxonomy Extension Label Linkbase Document

101.PRE

Inline XBRL Taxonomy Extension Presentation Linkbase Document

104

Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

___________________________

3.2
10.1
10.2
10.3
10.4
10.5
10.6
10.7
15.1
31.1
31.2
32.1
95.1
101.INS
Inline XBRL Instance Document
101.SCH
Inline XBRL Taxonomy
Extension Schema Document
101.CAL
Inline XBRL Taxonomy
Extension Calculation Linkbase Document
101.DEF
Inline XBRL Taxonomy
Extension Definition Linkbase Document
101.LAB
Inline XBRL Taxonomy
Extension Label Linkbase Document
101.PRE
Inline XBRL Taxonomy
Extension Presentation Linkbase Document
104
Cover Page Interactive Data File (formatted as Inline
XBRL and contained in Exhibit 101)
Coronado Global Resources Inc.
Form 10-Q June 30, 20222023
46
___________________________
* Certain schedules
and exhibits to
this agreement have
been omitted pursuant
to Item 601(a)(5)
of Regulation
S-K. A copy of any omitted
schedule and/or exhibit will be furnished to
the Securities and Exchange Commission
upon request.

Coronado Global Resources Inc.
Form 10-Q June 30, 2023
47
SIGNATURES

SIGNATURES

Pursuant to the requirements

of the Securities Exchange
Act of 1934, the registrant
has duly caused this
report
to be signed on its behalf by the undersigned, thereunto
duly authorized.

Coronado Global Resources Inc.

By:

/s/ Gerhard Ziems

Gerhard Ziems

Group Chief Financial Officer (as duly authorized officer and as principal financial officer of the registrant)

Date: August 8, 2022

Coronado Global Resources Inc. Form 10-Q June 30, 202244

By:
/s/ Gerhard Ziems
Gerhard Ziems
Group Chief Financial Officer (as duly authorized officer
and as principal financial officer of the registrant)
Date: August 7, 2023