Coronado Global Resources (CODQL) 8-K Results of Operations and Financial Condition

Exhibit 99.1

Appendix 4E

Coronado Global Resources Inc. 

ARBN 628 199 468

The following comprises the financial information provided to the Australian Securities Exchange (ASX) under Listing Rule 4.3A, including the consolidated results of Coronado Global Resources Inc. (“Coronado” or the “Company” or the “Group”) for the full year ended 31 December 2020 (FY20).

All amounts in this Appendix 4E are denominated in United States dollars (USD) unless otherwise indicated.

Results for announcement to the market

Reporting period (“Current period”):	Financial year ended 31 December 2020
Previous corresponding period (“Previous period”):	Financial year ended 31 December 2019

	31 December			31 December
($ in thousands)	2020			2019		% Variance
Revenue from ordinary activities		1,462,262			2,215,748		(34	)%
Net (loss) income from ordinary activities after tax attributable to members		(226,468	)		305,538		(174	)%
Net (loss) income attributable to members		(226,468	)		305,538		(174	)%

A detailed discussion of the Company’s operating results for the Reporting period is included in Item 7 “Management’s Discussion and Analysis of Financial Condition and Results of Operations” of the attached Annual Report on Form 10-K for the year ended 31 December 2020 filed with the U.S. Securities and Exchange Commission (“SEC”).

The consolidated balance sheets, statements of operations and comprehensive income, stockholders’ equity/members’ capital, and cash flows for the year ended 31 December 2020 are appended to this Appendix 4E. These audited financial statements and the related notes (collectively, the consolidated financial statements), are also included in Item 8 “Financial Statements and Supplementary Data” of the attached Annual Report on Form 10-K for the year ended 31 December 2020 filed with the SEC.

			Previous
	Current		corresponding
Net tangible asset backing	period		period
Net tangible asset backing per ordinary security (US$)		5.60		8.64
Net tangible asset backing per CDI (US$)		0.56		0.86

Dividends

	Paid or payable		Amount per		Franked amount		Conduit foreign income
Final and interim dividends per CDI	on		CDI		per CDI		component per CDI
2019 Final dividend - paid		31 March 2020		0.025		0.025		NIL

No dividend has been declared or paid since the year ended 31 December 2020.

Details of associates and joint ventures

	31 December 2020				31 December 2019
Associate / joint venture	Holdings %		Profit		Holdings %		Profit
JEP Mining LLC		50		Not material		50		Not material

The profit contribution from the above joint venture is not material to the Company’s net loss for the period.

Further information can be obtained from the attached the Annual Report on Form 10-K for the year ended 31 December 2020 filed with the SEC.

Consolidated Balance Sheets 

(In US$ thousands, except share data)

	December 31,			December 31,
Assets	2020			2019
Current assets:
Cash and restricted cash	$	45,736		$	26,553
Trade receivables, net		175,206			133,297
Related party trade receivables, net		81,970			86,796
Income tax receivable		20,325			897
Inventories		110,135			162,170
Other current assets		44,006			44,109
Assets held for sale		52,524			—
Total current assets		529,902			453,822
Non-current assets:
Property, plant and equipment, net		1,521,508			1,632,788
Right of use asset – operating leases, net		19,498			62,566
Goodwill		28,008			28,008
Intangible assets, net		4,217			5,079
Deposits and reclamation bonds		8,425			12,227
Deferred income tax assets		24,654			2,852
Other non-current assets		12,264			17,512
Total assets	$	2,148,476		$	2,214,854
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	74,651		$	64,392
Accrued expenses and other current liabilities		234,526			238,788
Income tax payable		—			29,760
Asset retirement obligations		6,012			10,064
Contingent royalty consideration		—			688
Contract obligations		40,295			36,935
Lease liabilities		8,414			29,685
Other current financial liabilities		7,129			5,894
Liabilities held for sale		16,719			—
Total current liabilities		387,746			416,206
Non-current liabilities:
Asset retirement obligations		116,132			121,710
Contract obligations		185,823			204,877
Deferred consideration liability		216,513			174,605
Interest bearing liabilities		327,625			330,000
Other financial liabilities		—			1,546
Lease liabilities		20,582			48,165
Contingent royalty consideration		—			855
Deferred income tax liabilities		64,366			47,973
Other non-current liabilities		22,826			976
Total liabilities		1,341,613			1,346,913
Common stock $0.01 par value; 1,000,000,000 shares authorized, 138,387,890
shares are issued and outstanding as of December 31, 2020 and 96,651,692 shares
issued and outstanding as of December 31, 2019		1,384			967
Series A Preferred stock $0.01 par value; 100,000,000 shares authorized, 1 Share
issued and outstanding as of December 31, 2020 and December 31, 2019		—			—
Additional paid-in capital		993,052			820,247
Accumulated other comprehensive losses		(28,806	)		(45,206	)
(Accumulated losses) retained earnings		(158,919	)		91,712
Coronado Global Resources Inc. stockholders’ equity		806,711			867,720
Noncontrolling interest		152			221
Total stockholders’ equity		806,863			867,941
Total liabilities and stockholders’ equity	$	2,148,476		$	2,214,854

Consolidated Statements of Operations and Comprehensive Income

(In US$ thousands, except share data)

	Year ended December 31,
	2020			2019			2018
Revenues:
Coal revenues	$	1,289,010		$	1,705,442		$	1,500,730
Coal revenues from related parties		134,589			468,897			444,870
Other revenues		38,663			41,409			34,904
Total revenues		1,462,262			2,215,748			1,980,504
Costs and expenses:
Cost of coal revenues (exclusive of items shown separately
below)		1,014,879			1,047,359			991,994
Depreciation, depletion and amortization		191,189			176,461			162,117
Freight expenses		185,863			166,729			117,699
Stanwell rebate		103,039			175,318			127,692
Other royalties		84,891			157,016			181,715
Selling, general, and administrative expenses		30,352			36,062			66,207
Total costs and expenses		1,610,213			1,758,945			1,647,424
Operating income		(147,951	)		456,803			333,080
Other income (expenses):
Interest expense, net		(50,585	)		(39,294	)		(57,978	)
Loss on debt extinguishment		—			—			(58,085	)
Impairment of assets		(78,111	)		—			—
Provision for discounting and credit losses		(9,298	)		—			—
Other, net		(608	)		2,649			(27,216	)
Total other income (expense), net		(138,602	)		(36,645	)		(143,279	)
(Loss) Income before tax		(286,553	)		420,158			189,801
Income tax benefit (expense)		60,016			(114,681	)		(75,212	)
Net (loss) income		(226,537	)		305,477			114,589
Less: Net loss attributable to noncontrolling interest		(69	)		(61	)		(92	)
Net (loss) income attributable to Coronado Global
Resources Inc.	$	(226,468	)	$	305,538		$	114,681
Other comprehensive income, net of income taxes:
Foreign currency translation adjustment		21,488			(2,438	)		(45,827	)
Net gain (loss) on cash flow hedges, net of tax		(5,088	)		6,841			(3,782	)
Total other comprehensive income (loss)		16,400			4,403			(49,609	)
Total comprehensive (loss) income		(210,137	)		309,880			64,980
Less: Net loss attributable to noncontrolling interest		(69	)		(61	)		(92	)
Total comprehensive (loss) income attributable to Coronado
Global Resources Inc.	$	(210,068	)	$	309,941		$	65,072
(Loss) earnings per share of common stock(1)
Basic		(2.04	)		3.16			0.21
Diluted		(2.04	)		3.16			0.21
Pro Forma earnings per share of common stock(2)
Basic								0.97
Diluted								0.97

(1) The 2018 earnings per share of common stock and weighted average shares of common stock outstanding is for the period following the initial public offering, on October 24, 2018. See Note 8(c).

(2) The 2018 pro forma financial information presented has been computed to reflect income tax expense assuming our initial public offering occurred on January 1, 2018. See Note 8(c).

Consolidated Statements of Stockholders’ Equity/Members’ Capital

(In US$ thousands, except share data)

																					Accumulated			(Accumulated
																		Additional			other			losses)						Total
	Members’			Retained			Noncontrolling			Common stock				Preferred stock				paid in			comprehensive			Retained			Noncontrolling			stockholders
	capital			earnings			interest			Shares		Amount		Series A		Amount		capital			(losses) income			earnings			interest			equity
Balance December 31, 2017	$	553,524			79,539			237			—		—		—		—		—			—			—			—			633,300
Members’ distributions before
Reorganization Transactions		(69,074	)		—			—			—		—		—		—		—			—			—			—			(69,074	)
Members’ contributions before
Reorganization Transactions		181,610			—			137			—		—		—		—		—			—			—			—			181,747
Reorganization Transactions		(666,060	)		(79,539	)		(374	)		80,000,000		800		1		—		665,260			—			79,539			374			—
Proceeds from initial public offering, net		—			—			—			16,651,692		167		—		—		442,147			—			—			—			442,314
Net income (loss)		—			—			—			—		—		—		—		—			—			114,681			(92	)		114,589
Other comprehensive loss (net of $1,529
deferred income tax)		—			—			—			—		—		—		—		—			(49,609	)		—			—			(49,609	)
Total comprehensive (loss) income		—			—			—			—		—		—		—		—			(49,609	)		114,681			(92	)		64,980
Share based compensation for equity
classified awards		—			—			—			—		—		—		—		541			—			—			—			541
Balance December 31, 2018	$	—			—			—			96,651,692		967		1		—		1,107,948			(49,609	)		194,220			282			1,253,808
Net income (loss)		—			—			—			—		—		—		—		—			—			305,538			(61	)		305,477
Other comprehensive loss (net of $2,932
deferred income tax)		—			—			—			—		—		—		—		—			4,403			—			—			4,403
Total comprehensive income (loss)		—			—			—			—		—		—		—		—			4,403			305,538			(61	)		309,880
Share-based compensation for equity
classified awards		—			—			—			—		—		—		—		319			—			—			—			319
Dividends paid		—			—			—			—		—		—		—		—			—			(408,046	)		—			(408,046	)
Return of capital		—			—			—			—		—		—		—		(288,020	)		—			—			—			(288,020	)
Balance December 31, 2019	$	—			—			—			96,651,692		967		1		—		820,247			(45,206	)		91,712			221			867,941
Net loss		—			—			—			—		—		—		—		—			—			(226,468	)		(69	)		(226,537	)
Other comprehensive loss (net of $2,108
deferred income tax)		—			—			—			—		—		—		—		—			16,400			—			—			16,400
Total comprehensive income (loss)		—			—			—			—		—		—		—		—			16,400			(226,468	)		(69	)		(210,137	)
Issuance of common stock, net		—			—			—			41,736,198		417		—		—		171,168			—			—			—			171,585
Share-based compensation for equity
classified awards		—			—			—			—		—		—		—		1,637			—			—			—			1,637
Dividends paid		—			—			—			—		—		—		—		—			—			(24,163	)		—			(24,163	)
Balance December 31, 2020	$	—			—			—			138,387,890		1,384		1		—		993,052			(28,806	)		(158,919	)		152			806,863

Consolidated Statements of Cash Flows

(In US$ thousands)

	Year Ended December 31,
	2020			2019			2018
Cash flows from operating activities:
Net (loss) income	$	(226,537	)	$	305,477		$	114,589
Adjustments to reconcile net income to cash and restricted cash provided by operating activities:
Depreciation, depletion and amortization		197,162			176,461			162,351
Impairment of Assets		78,111			—			—
Amortization of right of use asset - operating leases		13,285			24,403			—
Amortization of deferred financing costs		5,546			4,497			5,181
Non-cash interest expense		22,410			19,885			9,919
Amortization of contract obligations		(33,172	)		(34,794	)		(31,870	)
Loss on disposal of property, plant and equipment		131			(1,238	)		122
(Decrease) increase in contingent royalty consideration		(1,543	)		(13,646	)		8,825
Gain on operating lease derecognition		(1,184	)		—			—
Loss on interest rate swap		—			—			3,239
Equity-based compensation expense		1,637			321			541
Deferred income taxes		(11,247	)		14,803			55,123
Reclamation of asset retirement obligations		(2,859	)		(3,456	)		(4,743	)
Change in estimate of asset retirement obligation		(5,973	)		—			(234	)
Provision for discounting and credit losses		9,298			—			—
Changes in operating assets and liabilities:
Accounts receivable - including related party receivables, net		(38,025	)		20,205			(63,126	)
Inventories		53,652			(67,388	)		23,419
Other current assets		(1,921	)		(5,062	)		(15,057	)
Accounts payable		6,833			21,351			12,684
Accrued expenses and other current liabilities		(27,829	)		(4,336	)		81,593
Operating lease liabilities		(15,329	)		(25,877	)		—
Change in other liabilities		(25,446	)		45,820			2,197
Net cash (used in) provided by operating activities		(3,000	)		477,426			364,753
Cash flows from investing activities:
Capital expenditures		(117,856	)		(183,283	)		(114,302	)
Proceeds from the disposal of property, plant, and equipment		—			145			66
Purchase of deposits and reclamation bonds		(2,302	)		(1,074	)		(9,789	)
Redemption of deposits and reclamation bonds		6,030			482			1,443
Acquisition of Curragh, net of cash acquired		—			—			(537,207	)
Payment of contingent purchase considerations		—			—			(6,628	)
Net cash used in investing activities		(114,128	)		(183,730	)		(666,417	)
Cash flows from financing activities:
Proceeds from interest bearing liabilities and other financial liabilities		216,953			474,223			720,083
Proceeds from interest rate swap		—			—			28,251
Payments on interest rate swap		—			—			(31,490	)
Debt issuance costs and other financing costs		(2,955	)		(4,293	)		(42,075	)
Principal payments on interest bearing liabilities and other financial liabilities		(221,414	)		(148,583	)		(815,758	)
Principal payments on finance lease obligations		(2,481	)		(1,308	)		(1,801	)
Payment of contingent purchase consideration		—			(15,002	)		(4,922	)
Dividends paid		(24,162	)		(408,046	)		—
Shareholders’/Members’ contributions (distributions), net		—			(288,020	)		112,536
NCI member’s contributions		—			—			137
Proceeds from stock issuance, net		171,585			—			—
Proceeds from initial public offering, net		—			—			442,314
Net cash provided by (used in) financing activities		137,526			(391,029	)		407,275
Net (decrease) increase in cash and restricted cash		20,398			(97,333	)		105,611
Effect of exchange rate changes on cash and restricted cash		(1,215	)		(995	)		(8,799	)
Cash and restricted cash at beginning of period		26,553			124,881			28,069
Cash and restricted cash at end of period	$	45,736		$	26,553		$	124,881
Supplemental disclosure of cash flow information:
Cash payments for interest	$	23,538		$	5,235		$	39,821
Cash paid for taxes	$	1,955		$	67,863		$	23,612

Net tangible asset backing per Ordinary Share/CDI

(In US$ thousands, except share data)	31 December 2020		31 December 2019
Total Assets		2,148,476		2,214,854
Less: Goodwill		28,008		28,008
Less: Intangible assets		4,217		5,079
Less: Total Liabilities		1,341,613		1,346,913
Net tangible assets		774,638		834,854
Number of ordinary shares		138,387,890		96,651,692
Net tangible assets backing per ordinary Security $		5.60		8.64
Number of CDIs		1,383,878,900		966,516,920
Net tangible assets backing per CDI $		0.56		0.86