CRN.AX - Earnings call transcript Q3 2024 | Coronado Global Resources Inc.

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Operator

Thank you for standing by. Welcome to the Coronado Global Resources Third Quarter Investor Call. [Operator Instructions] There will be a discussion of the results from the CEO and CFO followed by a question-and-answer session. [Operator Instructions] I would now like to hand the conference over to Chantelle Essa, Vice President, Investor Relations. Please go ahead.

Chantelle Essa

thank for for XXXX. and quarter Coronado's operator, call investor you, you, joining everyone, third Thank production as Today, the to in our ASX released safety, and sales we our financial SEC, which quarterly coal, markets we performance. information as other well report and to and related statistics, outlined

of statements to We in certain on You of GAAP over and and otherwise position I Douglas Head that our of enhancement improve with with and Gerhard hand Chief all be to Ziems. Within to our Group also you exchange. market format report, encourage November our unless expected the you ASX released everyone now will Investment, will and metric statements reconciliations Financial XXth XX-Q. Today, and forward-looking filings financial Thompson; non-U.S. Director note and joined in a call A Form information measures. see SEC. the tonnes remind the financial our stated. I'll review results to Officer regarding our by numbers Officer, slight and dollars to these our I the more outline our is detailed conjunction Douglas. in Executive Chief U.S. quotes am Strategic with of Coronado notice Managing

Douglas Thompson

oversubscribed unit. We productivity Thanks, pricing planned the notes issued underpin We're The the business with mixed yield achieved Northern Chantelle. result. at pleased closed Southern have a terms. our and series In delivered us. by and a summary, quarter of blending with U.S. strong and improved for it's been that results the strong increases Buchanan new that and districts

full at from finished we of this impacts industry year American August by than better cost guidance. for the a contract geological plus geological of revision at Northern year an remain the Logan suffered conditions next impacts rainfall and were in annual the remainder year. further a necessitated outlook and Curragh These mechanical results averages, weather and production compounded our Curragh and negotiations safety record at XX-year we But adverse unfavorable for Our quarter.

X.XX, tonnes; previously have achieved press cost for our upside QX to coming works group Key production, metrics performance, were and will total we States and cash. At Underground improvement and As million tonnes. to at Both X.X average X.X the U.S., is rate injury million And projects remain very X.X is in gains delivering improvement was our Mammoth at sales rolling showing we're and saleable trends. demonstrated, United focused below Australia. XX% XX-month positive year-on-year, tonnes Australia, Buchanan. have in production, industry continue quarters. averages both Curragh ROM from million and and we in a in on expansion and recordable the positive delivered extremely with remaining improving a project in there in be level, We seeing journey group the to continue prospects our well operational our available QX a the volume

X.X, reflecting a ROM difficult experienced from down which operations. The improved all of coal efficiencies The quarter. planning the Curragh production of On September, year-to-date coal This up and achieved Turning operations XX.X. you Page up will on sales our Complex our Australian on business production September to a and a quarter. prior across see unit 'XX basis 'XX, delivered and is on at Coronado summary. of ROM X, is

in sustained production, reduce fleet September. productivity. Due change of April benefit The equipment. addition, TXXX Complex. Xx announced company-owned brought the a the fleet unplanned which impacted the post geology Nina from additional associated and to to to shovel, affected bucketwheel idle the removed maintenance average Australia better be year. were geological the As deficits, trucks than was was conveyor. not consists heavy back reported, the across best thinning With define October, year this And the in the by do improved and quarter coal the to fleets mining operations in and our that utilization of to further ROM since delay be in been the in a QX, exploration for X zones were contributed operating zone financial since quarter. system's which repair for of the time will the To in coal at expected guidance Curragh these X addressed Production period, summer has further planned then areas. These truck a by additional the improved operation. to impacted area. return Curragh increase dragline ability idled X-week compounded idled, production X This Albeit the events was been late X% the will we in repairs an anomaly, Curragh were XX-year Once forward, the La forecast has impacted fleets works drilling undertaken. to costs our system, overland and historic was of recover can previously mine Complex is in plan a by for to the flexibility in events has adverse XXXX QX monthly spring recovery more rainfall which greatly planned to during our the within these the excavator utilize in waste our in dragline beyond and have weather the fleets productivity and quarter. August in productivity the while August,

despite This on have Curragh, at and QX than a complexity. decreased for shows Our removing performance improvement. manner our XXXX to determined mine plan optimizing month million This that costs is plan cash from $XX year, enabling in quarter follow our is a last by this the mixed productivity time focused to disciplined delivering site QX efforts and by people a more XXXX. opportunities of system measuring

draglines, our efforts soon-to-be now excavator year above per which by XX% alternate plan XXXX. The this our and XX%. of at and of turned up in pre-strip weather moved our to cost compared from The push wet not on quarter-on-quarter our historic cast improvements, is targets coal systems, With dozer of to truck delivering our blast. source, improvement the Mammoth plan major year our and quarter system completion the offers is current at system lower the operations, than from next subsequent base and the impacted draglines our ratio Underground removal dragline dragline and in focusing operational and to deficits, by milestone continued being of fleets in exceed for the milestone. is the improving productivity multiple the our cost financial is with tonne the the X% waste This is enablement

late made planned approval. First on for to later address this elaborate coal in I'll is subject And project. QX, on on QX progress my

remains delivered of business unit, quarter-on-quarter XXXX, ROM benefited tonnes, positive ROM production strong. our to delivering The production higher, U.S. U.S. September tonne. throughout a Moving saleable The continued longwalls. was production, coal sustained sales higher U.S. per as improve activities mining and cost to our X.X lower both operations quarter volumes performance from and and Buchanan's million trend. running

XX% over improved the production and southern to the yield saleable we following was you the in well, and and the and Gerhard, improved the hand at in skip blended best as last market overlook. efficiencies counts skip system from rate north the years. I'll During are and of who a a financial continues early year, working now will the X conditions more update bit improved achieve up production quarter-on-quarter. undertaken through was X.X% maintenance belt than to ROM up mining is districts. Buchanan's and mine conveyor works The take a quarter,

Gerhard Ziems

and good Douglas, Thanks, day, everybody.

was group million lower XXX billion. the revenue Our September Revenues a same to the U.S. USD tonne. domestic in volume, coal USD is of the revenues. of $XXX September sales revenues met the compared coal the in per quarter at And period group with were were September quarter, September last for year-to-date period was coal Sales combined average on in sales to revenue the a same benchmark tonne. XXXX. On in benchmark which million XXXX XX.X% group tonnes. Year-to-date year pricing volumes tonnes, index for in price realized million was index year-to-date coal sales last tonne September annual coal per XX.X quarter, for XX.X% met year. basis group $XXX volumes prior and met September, The met line were September sold total quarter group with was the similar the per contract at fall reflect quarter X.XX X.X our the

we demand September coming main Turning to late coal in a were September. Then fell of and metal to prices. to coke China's Chinese The steel met rise met tonne. to steel production ongoing in environment and and raw to leading the under coal low initially index steel confidence September tonne benchmark steel in $XXX that met moved material in early markets, the excessive per stimulus see raw a hot the After pressure. announced boosted measures slowdown a and weak 'XX $XXX the up markets announcement, to macroeconomic exports led markets, coal per the above in materials quarter, and in index X-year started

cooled $XXX business at over raw material levels that met after retreated markets X per prices coal the However, and tonne stable slightly with steel the $XXX to pretty tonne, today that's below per retreating index days. the main last

reduce conditions rebound. North volume-weighted between That coal 'XX not outside December we September improve. B, a FOR, momentum metal as estimates a measures to production from the the high-vol recover for price at India during also time. are ton. grades American completed. all per negotiations FOB, East June average price expect Coast contract China U.S. higher anticipate is steel approximately index and average potentially and quarter, positive exports, high-vol met and steel the of annual impact -- A and Chinese We allowing forward with of $XXX pricing production and So aligned coming December FOB macroeconomic hot price metric curve across of will Trade the to non-Chinese FY reflecting

average cash corporate, were for Just mine sold anticipated as contract or per cost anticipated financials and for for covers U.S. per note 'XX the tonne we tonne. tonne, costs per a group year-to-date tonne the had of of $XXX mining sold to big for cost as a contract mining average side per XXXX, tonnage increased $XXX price in production. $XXX lower XX% price group XXXX, approximately September change. of result so $XXX, XXXX. On not and production fixed XX% average a price U.S. This a of

will the end However, of liquidity easing dividend, opposed quarter. reduction twice guidance XX.XX% Xx sales coupon every back X.XX% the Stanwell million company the Pay September, commitments also project terms. per Buchanan USD And believe implied Finance September, liquidity. I balance the of achieved favorable remaining and intends due proceeds security more use XXrd fully reaffirming and USD due U.S. notes senior earnings billion expenses end aggregate of per growth redeem outstanding XXXX. we distribution are Australia general $XXX in a purposes, quite development the as comprising company's corporate dividend credit XXX that of position volumes. At to of cash the from position, anticipated offering net offering pricing, Underground successful debt were Mammoth offering the September, to and then secured XXX million. Available back project in improved and net Ad expansion franked to offering announced notes on dividends in on a million Coronado and were of had coupon the year. On to $X.XX to hand sustained and underpinned secured and the to the an cost balance. XXX at Douglas. the one payment the XX notes closing potential the of in XXXX. oversubscribed launched by notes X, that senior million USD offering providing of we company in recovering to unit related XXXX, company's enhanced cost XXth we strong a revised fees was reflects of come the of by CDI closed the we so confident quarter attractive October pay Limited The $X.X are Xnd in proceeds the amount used XXXX. Net interest for The is May old the on commitment Pty million in principal USD with

Douglas Thompson

I'll thereby Curragh been wet the June weather, derisking approvals. are impacted forecasted cost Complex remains schedules to budget by per tonne September continue open several overall weather. to will have met X Mammoth substantial And production Underground in saleable highwall tonnes mate. a a development. Curragh procurement the periods the per XX S-Pit tonnes coal quality Mammoth orders you of cost in Curragh subject our tonnes update once schedule, continuity the cuts for in in Underground agreed. commenced necessary expected Reduced which to quarter coal, may the as periods and preparation first project expected Curragh and on delivery coal Complex. Mammoth its projects, and annum brief operations. Mammoth to high-quality all the in base mirror with from North stabilization all earthworks cost cost opportunities. Diversified X.X operational, plan, portal for produce All completed The are Thanks, million the of coal both million on placed, be production progressing the be wet Underground fully activities Underground. on the in reduce in We phase. project, give the X with and to reserve mine strategic second Mammoth is offer of to production, is equipment of to works starting ROM tonne will underground Mine improvement per will deliver open the existing Underground tonne, has per quarter, of million cut quarter

long improved and storage new projects area budget site. in to buildings. on surface the our is of on completed expansion Buchanan on risk the Northern at schedule. both on remain Southern following skips screening was Turning all Excavation on plans starting and increased District bottlenecks, will QX major the reduce be the voicing areas component XXXX. Ultimately, in quarter, track were In increasing received underground capacity the longwall and completed of our were and steel works installization on tonnes allowing raw and the equipment approximately questions. and storage to September operator U.S., and out on annum of the mine. I'll hand tunnel now now any Completion take the the immediately reclaim to progressed X set second organic incremental with the coal components of capacity budget by with million to to construction run higher over productivity, of production at tonnage per lead

Operator

Young [Operator Goldman Paul with Sachs. Instructions] Your first question from comes

Paul Young

Curragh But is Doug, like luck number first it talk there, in of can't can specifically on and any one-offs the around A you at question at just get you the Curragh, through sort the the just unfortunately. performance just quarter. seems of moment, prevented of you way of -- bucketwheel maintenance sort conveyor what reclaim, you is could and that? any sort the general was And any exactly that happened and around there And make there? sort at of have maintenance comments Curragh? can there any approaches

Douglas Thompson

Thanks, Paul.

that like You're of for has X doing, the and the I'm put it the black quarter we've in somebody right. I kicked what if feel plan cat, and you what at built Curragh the and what proves person had at one-offs. team look delivering looking these capable is system

update original what Curragh of that it, to it's on then occurred that subsequently what's of overland overland to preventable. it the risk design part forward conveyor, getting at conveyor. is system The a happened yes, and will eliminate engineering the going have Looking we this at the crushing that of design there's the ROM North to without crusher

an be solution year hopefully we've to and that's and engineering So end then on order delivered of installed will in of for the site it, one by our the shutdown periods. got and

is preventable that with this engineering will reoccur So not change. and

maintenance we controls ongoing ] sheared They is an X that area. addressed than events updated components the said, between bucketwheel, and audit internal on to well. there it. up tolerances our But also as subsequent and we next year more audited as simplistic practices of and a And and nature, maintenance to did we've get What then of and of those audits, engineering you We've talking of did it of few to a then we little well. got number [ maintenance bolts bolts our critical of on number a the all in these off. the it. engineering some fail X capital On of part addressed that. through We got one-offs. bit our had those It's of a the of areas externally the new control some picked change we've that unfortunately, projects as improvement, we we'll that this where

Paul Young

Thanks, Doug.

comment -- a a just from Sorry, there's out there. someone

to that, follow-up. just further quick a maybe Just

Just that belt? what the press sorry, was talking this, a the about just rock that a is belt? on conveyor, piece I you're to of shale? the just but rock it on -- And engineering change the that cut on an to Or anything -- related cutting is

Douglas Thompson

its and conveyor design, loose that of one damage. belt. number the has crusher the on called this In and controls the There's it's portion spindles No, got a plates bash magnets others and of [ sensor and a it, made it's come up Paul. those the way ripped of a And prevent plate. pick system it ] into like

the engineered So a and problem limit post number out, that ongoing been as the is of the source impact. crusher that of has and that taken preventative well the we've controls got

Paul Young

just seen weather, Okay. well And Blackwater in your have then would Got the region, peers and quarter. wet [indiscernible] on you did pretty the in it. actually the

how just I'm some more operation during impacted operations trying So your understand of was or the that to say neighboring than period.

Douglas Thompson

of XX-year XX an had XX in mills the average that through. we average So versus came about

the to be release mine, And overland quarter, had that that also where to the was the For released that the extent that J coal going conveyor the produce. wasn't we was we found this challenge area volumes to weeks, X the in anticipated. the in planned we then, it thinning was us, was couldn't the southern where thinning had we Pit, had zone in

But is well all as is that pretty normal, the compared of effect rain. had not heavy So the capability blown the around the it X coming the wet then a lot couple coping rain, weather -- them that, we with. We the days spent it's you rain of and last it was and the And of just these lot system's in events compound and month the X light years. but the addressing effort of out in after of do X of had days you controls X what time is water mills where beyond event can't also pre-stripping. what's because of XX weather you a of quarter, wet August had but to you over had

of call ramp-up, production about improved. back got measure a about X.X it generally out. We used we to the days rain of greatly the that mine for measure this. is also We which back So ended to impacted staged I mill We to you've then work. have every need having everything. the up impact and to in into operation X bring operations getting hours

work last hours and mill wet X.X of in on. hours South we've the X.X in event roughly the that work that's we average the every an to over done North, time the rain down we're post X.X recovery With the for weather years,

made. is get the push X:X with to ratio to Our improvements we've

Paul Young

period. down, the Obviously, build to build or working then half. up in cap for you with Makes Okay. in That's flow, $XXX saw the down. net working out, Gerhard. to production you're your XXth just I cap million then cash Doug. statement, first and good flow know, August but a on And in your debt but cash half, think, sorry, your the on full had sales in -- close of I Gerhard, question was $XXX of million were maybe I know coming the went accounts And sort sense.

you on saw So call you quarter, the what out What if actually cap? question there is further the build anything know is in that? -- to working

Gerhard Ziems

the is XX-Q, million course, disclose CapEx million Yes. and and that EBITDA cash CapEx, cash the $XX will the we sustaining you and bleed in related CapEx at function is negative million, about to so cash, number, you to in in have have EBITDA that, investment $XX a there On of and Mammoth. look, of led here growth the quarter, and the Buchanan $XX Yes. CapEx,

inventories, absolutely. So looking at

of quarter-on-quarter mining inventory you is that went course, you little at lower movements, up tonnes. year-on-year It's look at bit if mining also that's and reason look a actually. movements inventory the the if So sales costs, But main is costs massive. of

group, If Australia. And builds and year we the December if million look for that it's last ], of [ is in million that in look $XXX about So we inventory big ] at out January, couldn't we $XX it's year-on-year in you the unfortunately quarter-on-quarter, coming [ for million inventory year [ also, group, close that had massive $XX and destocked most you the so also ], had of to we then June this hold. builds about

a back pushes lot mining that costs. of So

we savings quarter the costs, at you per don't AUD month disclose, million Douglas which look unfortunately we that the least. If in cash highlighted, mine at the see XX

inventory when that disturbed we progress. the But unfortunately, at see bottom into line. back So really costs, costs we mining the look come that's massive by

Operator

comes from Lawcock next question with Barrenjoey. Your Glyn

Glyn Lawcock

morning, Douglas. Good

just quarter, they firstly still we're have Mammoth a to process the this and Last follow. release. the Just on I'm What's 'XX words time? December blocks this stumbling was when first sort of dealing that said What taking -- a underground. with coal? been little in from dropped well-defined approved confused. first thought get regulatory coal. approvals What's it you I Those was

Douglas Thompson

permit working start different to approval it and for we're We May, to through ready We're started We're coal. as a we're we're then November line that will change start through us with going targeting running mine Glyn, what mid-December December submissions need year June late that I've we this time The DESI. line That's method. mining It's this to and cutting described is. fourth not the in authority get that an this method a the DESI we're and permitted that that to that change process, mining is focused is mining on of steely our quarter process coal. with first fully year, gets date. and from method we back time our change, environmental still previously. quarter,

Glyn Lawcock

Okay.

today's coal the release, it December slippage, just So sort there -- first it just that's from -- you 'XX omitted a of all. isn't

Douglas Thompson

still process. our through government Obviously, that's intent. going we're a Well, Yes.

but our want we approval, we subject that that's that affirm put to focus. to firm it So

Glyn Lawcock

an Do there's for everything and December But come we've is time -- else, just Queensland a no have back risk to Or given to is can coal? there pose of had to government your line? that they get you official change time -- slipping? in in

Douglas Thompson

those we've risks. our them DESI, on experience project be with of actually kind Unfortunately, found this quite to favorable. always there's

engagements Our that time they have been and have. positive lines

fairly a this of process it's through. So bureaucratic that kind goes approval

time set delivery beaten likewise, And sides have have those We our they delivery lines. some that. lines. And meeting in lines, information are time to dates actually time Both request we set their for questions cases, they've and dates. and beaten response if on

So this we're our But is on within that well what to call process. of track been to But that you line. we've time comfortable line. with everything trying style flag out date, set do isn't time we're

Glyn Lawcock

has the now then been year? back third met all turning And Curragh, business we sitting guidance year, child that Like we the which costs a today if obviously, today within guide range take today, And now Okay. free maybe $XXX cash where now? it the to the are are just for tough are positive was quarter. at But coal? at problem flow we back we

Douglas Thompson

$XXX, from moment at guidance. a $XXX about looking at the forecast we're sitting and we're cost So at perspective, of a

So from we're a within that perspective. cost guidance

up open It's cuts. a look It's life, underground than a how reporting dragline-led Curragh, expert of those coal. X smallest the mine, One of plan in we an dirt productivity XX in is got be another be plan cost, that's X I in probably it, would We're developing the large far the And dragline a at as board that years results And cut set a see got It's that mine. The dragline way setting and describe it operations. opportunity. being XX rather a you it been you of is dragline working. fully got truck of As has months and to system can mine. of cheaper months described as drive limbs. ]. plan of the do a getting verge that excavate. to of open over potential we've We're XX is we've last [ deployed permitted to moving

that the we've our the those and huge So [ in complexity ] was also on it the burden we it over got could out. pre-strip got operations we fleets once push. And added and that It top. made us, brain that's Illuvium drop been a to behind less because also material efficient big

was once cleared had. that system, of limb there So the big that we of a the we plan

The was other maintenance addressing complexity and of some removing COVID. because the backlog of

overland we've diligently working a through tonnes the our our where through we over X working got market, and conveyor, we've and ago. million So plant overland been to reported draglines, prep conveyor while the

next So couple that's draglines, years We've the their performing shut from for That's profile them plant. addressed a it be a maintenance where of we we likewise, need the dragline shut. year. next and bar want one. then all them we've got of where major more that's to X-year be. The one to prep got And they are

that been So we've addressing limb.

bit out. other been The complexity in has taking year this

regions. So X SSC [ we mine split the ] into now

dedicated but that complex X context having smaller of brought in mines a that are the terms other real in the in X open the mine Bowen not as Basin, teams with So plans managed have that large cuts been any complexity. it and

the other X outsourced. The was was we've is last previously, We've way from the partners. thing that control control it done over our was contracting that in-sourced model operating years take again. run The back

years, been been that to taking planning. now these and have the scopes not got over of We've And come been number we mine we've fleets contracting control site. own the We've planning teams a only our partners the people dedicated So out. our reduced. reducing -- mine but that,

in longer every reporting we've in sitting dragline that people expected with taking its it expensive pressure. because where said no XXX We're weather. out, the particularly -- we've XX%. old. that plan, XX as the with the exceeding, we to So idling the great shovel. are are day shovel year. And It's operate, it's fleets been our steps It's And over We're we in at trucks in now performance we've low-bearing about years a taken just The the not up XX%. operations wet expected of is our old. to

we the So the we while it to period, through anticipated planned initially weather idle that's wet coming. weather

across draglines, planning hopefully fleet performance the we're the all of now the and beyond. year next excavator and With that to through idle

forward. the takes cost away smallest the So in led see steps at that's asset that coal in we've taken high-quality profile a your problem is, right we dragline the Curragh mind, of opportunity and going long-life, child board to the as these being from met that plan

Glyn Lawcock

there No, And I years a very an on Douglas. over now, will Stanwell, when I away it from Yes. run. appreciate long the that, different business. royalty guess, be there opportunity I is X the mean, falls

some Paul's Because there feels belt a quarter. you I mean, mean, like lost the month's ROM lose explainable quarter-on-quarter. Just I by to it Is happened we the production. weeks, down XX% follow-up, X month why on run-of-mine explained what contractor issues that a question? answer of Or you final all essentially down ROM. just a conveyor of with whole is production mining for the regarding that's as whole well? worth

Douglas Thompson

of you show X had compounded it's cope what you system's and ground plant. will out to prep [ major the for starting a some put of the that to at fall clearly lose production issues return. At handsomely can't weeks screamer asset so is Glyn that obviously within that the and the the elements plan your have effect returning product investing Buchanan ], ability is to continue to had Curragh, we're well plan ], we and with we've it. are [ called Logan, that but ones. We

the effect the you've means coal, then that into that done that that coal geological the the there's model You work to expected. the isn't discover an in area you you get lensing all volume expose a in that and

the that all the the that we've U.S. out volume up. Pit products kind weather then, around off the I and As on those quarter. Yield put North. bull's That the start [ was geology together, the And of a down drilled is because that. eye in the back to Logan for versus of washing that now event from looking Curragh impact J you the that we yes, said, were at And of slightly have bore ] normal was predominantly faulting. film month. was you South is and in

us quarter that wasn't a the yield in plan. So original in a of the well that impact took bit as

Operator

comes question UBS. Eadie with from next Your George

George Eadie

that obviously Just how remind going exactly? to now, the maybe So in but forward the you this and negotiations. you lock 'XX how Can firstly, is agreed? price but It's too, on thinking please? help about help beyond, me U.S. XX% some year-on-year, price works flat

Gerhard Ziems

the the coal the look, George, producers out an is producers tender way Yes. steel price in then for offerings respond. and the essentially works fixed Yes. annual and met U.S., go that

see be of reduce it per and can for provide tonne. I volume So out India Asia. that can met XX% see will year -- I tonne it's of that's price annual works. per annual This others, last that higher then an price an of the our traditional year. fixed -- coming next simply volume the XX% happened we certain year's about U.S. I outlook and was just the coal $XXX because contracted way $XXX years, for year, see will at at coals. volume if following demand contracted XXXX contracted of this particularly of fixed

with at the the then us, U.S. The vols the freight high from to differential and for be of out So that U.S. don't shipping India between for would Australia from see that is the shipping it want pay we Indians and the problem the moment Buchanan the

out So per $XX shipping of U.S. expensive from is the tonne Australia. about more than

the the of our in differential lack producers U.S. up have Buchanan and kicks the sure. an met the will annual and to extent demand exports in want in basically, vols, of see years. pay full reduce that case, line, bottom will too and So following basically, U.S. do not up. But contracted of also this in more high on freight will demand out the -- mid demand in as increases the I'm that coal and India the Indian XXXX, out as goes the at eventually and I volume can production down, steel can vols Whether Indians don't that see go goes to I its fixed to stage. But price of premium will sales

George Eadie

Yes.

Gerhard. And Mammoth. broader Okay. on Thanks, maybe more That's clear. just

like and no rather. So Mammoth, it's together Curragh Mammoth just --

costs going help forward. thinking chasing Just some about

gear, making assumption more guess system I guess, first growth, and a So volume. part parking this dragline an cost around getting of is combination, CDX I the it volume of out

before second cost You curve. be on said around Mammoth quartile will the

all guidance it given guess forward, year X-year I a we guess, for something much I or just So putting -- it, so is the the cost could there's think moving to uncertainty? about parts, at maybe get going the making an given or going assumption way together lot and those parts on next results of forward? something costs

Gerhard Ziems

moment, guidance. -- on the path But X here. in we Yes. don't give At summary, you're the wrong years the cost right on

get So we I in Australia costs, probably down quarter would can at to at where X. costs look

X have we tonnes So a failures. That's from million think can if the X, a before, $XX tonne. the at that before, XX at quarter, it tonne, $XX our would tonnes where Mammoth, about million mining not come Curragh low talked from per possible. And That's $XX come at a or open let's per definitely demonstrated other impacted $XXs, cost, we of then by published normal and rain say, equipment cut costs hit and least any are per million we we X you quarter between assume, in tonne. tonnes cost I

you Curragh. it So what -- do can means of it down the math will now for all bring

overall can tonne. will You the cost mining development Mammoth per that the see reduce

George Eadie

with then the lines risk weeks ramp-up time Mammoth of at submitted just that Is Gerhard. X.XX from X in at It Thanks, year? that's has 'XX. looking great. That's potential And there the million calendar ago. for volumes Yes. EAR online any year I'm

Gerhard Ziems

in George, has the of first section ramp-up December. continuous the the got project starting miner

in delivered the the gets X. and X quarter sorry, one quarter third quarter out. -- then as then in one build mine them, we one running Second the in third of and X We'll X be

for straight go this coal. is ramp-up on you Now

portal, which and cash of Each over first [ ROM love coal is day XXX,XXX coal, you project, in ]. everybody tonnes going. the there a with the should gas, generating and generating low cover, the seam low excellent. I'd we launched we out these coal to project got So about cut the through get lovely be able produce to

seam X the meters over coal So coal just you the seam. about see can

But get there our into So first schedule a as highly got steady that it, the ramp-up through fourth we'll to start build has next mine. that stating quarter year X productive of phase we result. deliver you've out mining of months, seen that you the and then

Operator

next from Roden Jefferies. Instructions] [Operator Daniel question comes with Your

Daniel Roden

from could the impacts the coal the event, thinning the the to you and ask Just quickly rain conveyor quantify in if please? wanted quarter potentially each,

Gerhard Ziems

planned, North of weather from number tonnes the overland at generally thinning those South what We it coal we was intended that we that from have from a crack mitigating out us with versus planned. cost period coal because of that The But a make don't we a said, production that as what I had wash that reporting ] up come during forward. of $XXX,XXX was split them me XXX,XXX strategies, ROM event XXX,XXX like effect coal a impact going to including And to a number [ was about was on because conveyor shipments. had tonnes And around. $XXX,XXX was it. to about because the hauling trucks to then becomes difficult of made move then to yield let bit had the

Daniel Roden

dry I some well coming to fleets well you the production And if can to you've that you lens, you unit company? appreciated. production quarter impact flex your it's capacity weather December that's as of called guidance the as And do rainfall The coal March kind the parked what if Awesome. able that to when cost? a kind a I of next do experience wet No, year them was of sustain much with That focus up in for be periods it and X the through. as -- at or those, higher you at great. I cost wanted guess you consider Curragh, trade-off? probably use and on guess, Is and are maintaining bring out into kind of understand maintaining just

Douglas Thompson

cash. making can as to we our shareholders. want to much return our focus say I'd We is as

we work, of the how our as So be a of is on events, yes, where operational challenges, major looking a on and few play that's for people having pricing and work. how quite competitors contractor's at a with for fleets mine plans people there's looking pressures we will these at our the skilled Unfortunately, site, From look manage industry to there number us. out out. all they available fleets having

to costs because be is very other those and bit want you weather. Mobilizing keep our But weather quite that do that's a and those draglines seldom is dragline essentially to our cost period wet catch circumstances. wet blast money With the event. the So in draglines, a it's you to honest, in wet place of opportunities. last productive It's not the not operating having production fleets dozer, fleet to I stop in turn fleets X stop. there when want of you'd in it excavator up I'll what

weather period those periods. spring been through coal being that's focused the exposing Nina that's has keep summer and for this on can we So La And the mine what our forecasted. plan

have coal we've designed to high high. So intentionally,

of into you not run be does of back high intended So if circumstances then to flex and in can prep coal and them, prevail, the it still but we post our fleets, pits that's bottom And can't engineered plan. if we'd and make capacity your plants. our feeding get that then sense, keep the wet, those weather early are use events, yes,

Daniel Roden

annum X.X rate? tonne to just tonne the profile, its ramp-up to to quick a And Mammoth first coal that's to that What's profile on so million million question QX. get run per X ramp-up Underground expected in

Douglas Thompson

continuous X sections. be going We're running to miner

in starts as So the out. first one you December, called

out year our next build planned mine a and third is one arrives next in Second steady progressively, as with we first And QX in in year year ramp-up. next state QX. of X the in one the of ramp-up half them each then quarter the

Daniel Roden

one And maybe Gerhard new senior for secured just notes. quick well a the on as Awesome.

and expenses? expenses. million fees outline the $XXX door in there's to those quantum fees got that's then repaid. that you million delta being you've So notes the the of are and of And offsetting Are able $XXX a

Gerhard Ziems

No.

Daniel Roden

a to okay. Just sense how -- of get much

Gerhard Ziems

not No. unusual. It's unusually within charge. usual the expensive also. the But not fees it's banks It's

Operator

Marini Nuveen Lucca question next ]. with [ Your comes from

Unknown Analyst

sheet So balance question a cash. on current quick

that the cash I that's sheet, you here you debt got balance what assume extra from including the on the transaction? that So the from we're the seeing cash not got transaction,

Gerhard Ziems

came correct. -- coming in, October, in that additional That's in the is cash. That

So when at cash and new the the the of without just look restricted $XXX at that's cash September, you bond. million, the end

Unknown Analyst

to that. kind follow-up Okay. to seeing just burn, that you use Got this you do online? expect just something liquidity you're quarter Mammoth of the should going cash as working going do a capital from when just And with of that and revert going less Or And Kind see we a build? of $XX forward pro do expect you. Where last cadence see forward? then well? that's cash comes forma, Is including the forward million be? you any issues to what going

Douglas Thompson

cash should No, $XXX Obviously, levels. no. Liquidity, at per I fixed have the generate are liquidity. think bond to trying we tonne

here, potentially expansions bit this issues. cash a level, the consume be they little won't So at I liquidity of think will any but there price

when cash at lot us you the of look that provides liquidity it think at Buchanan see the Mammoth. on of and end So develop a you then to for enough will sitting and also sheet I December, balance

Operator

any That concludes of now closing the question-and-answer I'll to for Douglas session hand today's call. back remarks. it

Douglas Thompson

I'd taking for joining the just everybody like thank us. and time to

quarter. a mixed As I been it's said,

look it's is Our expect project we return next on to results all early when expect, we you forward clearly and the X of plan and the in completed delivering quarter United year. the States enjoying that

We years forward X upon of us that, time. occurs. the and gives easing on for asset cuts big difference with your capability open flexibility. then, of drawing going got a out, the done full first the the we're potential its earlier the the we've when look beyond coal of make potential December of out future. With fully draglines that forward. And over as that the last we've and in to focused expansion life contract then Stanwell Mammoth Our will on that that is operational couple thanks to And the Curragh, the called track, producing work that, into

Operator

Thank conference our today. conclude That does you for for participating.

You may now disconnect.

Coronado Global Resources (CODQL) 28 Oct 242024 Q3 Earnings call transcript