0001104659-19-051221.txt : 20190924 0001104659-19-051221.hdr.sgml : 20190924 20190924171700 ACCESSION NUMBER: 0001104659-19-051221 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20190924 ITEM INFORMATION: Regulation FD Disclosure ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20190924 DATE AS OF CHANGE: 20190924 FILER: COMPANY DATA: COMPANY CONFORMED NAME: Coronado Global Resources Inc. CENTRAL INDEX KEY: 0001770561 STANDARD INDUSTRIAL CLASSIFICATION: BITUMINOUS COAL & LIGNITE MINING [1220] IRS NUMBER: 831780608 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-56044 FILM NUMBER: 191111501 BUSINESS ADDRESS: STREET 1: 100 BILL BAKER WAY CITY: BECKLEY STATE: WV ZIP: 25801 BUSINESS PHONE: (681) 207-7263 MAIL ADDRESS: STREET 1: 100 BILL BAKER WAY CITY: BECKLEY STATE: WV ZIP: 25801 8-K 1 a19-19008_18k.htm 8-K

 

 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT
Pursuant to Section 13 or 15(d) 
of the Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported): September 24, 2019

 

Coronado Global Resources Inc.

(Exact name of registrant as specified in its charter)

 

Delaware
(State or other jurisdiction of
incorporation)

 

000-56044
(Commission File Number)

 

83-1780608
(IRS Employer Identification No.)

 

100 Bill Baker Way

Beckley, West Virginia 25801

(Address of principal executive offices, including zip code)

 

Registrant’s telephone number, including area code: (681) 207-7263

 

Not Applicable

(Former name or former address, if changed since last report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

o           Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

o           Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

o           Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

o           Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

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

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

 

Emerging growth company  o

 

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.              o

 

 

 


 

Item 7.01  Regulation FD Disclosure.

 

On September 24, 2019 (September 25, 2019 in Australia), Coronado Global Resources Inc. issued a press release to update its fiscal year 2019 earnings guidance.  A copy of the press release is attached as Exhibit 99.1 to this Current Report on Form 8-K.

 

The information in this Item 7.01, including the exhibit attached hereto, is being furnished and shall not be deemed to be filed for the purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”), or incorporated by reference into any filing under the Securities Act of 1933 or the Exchange Act, unless such subsequent filing specifically references this Current Report on Form 8-K.

 

Item 9.01  Financial Statements and Exhibits.

 

(d) Exhibits.

 

The following exhibit is filed with this Current Report on Form 8-K:

 

Exhibit
No.

 

Description

 

 

 

99.1

 

Updated Fiscal Year 2019 Earnings Guidance Release

 

2


 

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 hereunto duly authorized.

 

 

 

CORONADO GLOBAL RESOURCES INC.

 

 

 

 

 

By:

/s/ Richard Rose

 

Name:

Richard Rose

 

Title:

Vice President, Chief Legal Officer and Secretary

 

 

 

 

Date:

September 24, 2019

 

3


EX-99.1 2 a19-19008_1ex99d1.htm EX-99.1

Exhibit 99.1

 

 

ASX Announcement

 

25 September 2019

 

Coronado provides update on FY19 earnings guidance

 

Coronado Global Resources (ASX: CRN) today announced an update to its earnings guidance for the financial year ending 31 December 2019.

 

Coronado reaffirms its production, operating cost and capital expenditure guidance for the FY19 period, reflecting ongoing improvements in the operating performance of its assets. However, due to the current weakness in benchmark prices for metallurgical coal, Coronado has revised its EBITDA guidance range downwards to $687 to $737 million.

 

The revised EBITDA guidance range is based on various assumptions, including a spot price of approximately $140 per tonne for the remainder of the year. This is below the spot price of $160 at the time of the Half Year Results announcement on 5 August 2019.  The revised guidance also assumes higher than normal inventory levels in the US, for coal being reserved in order to generate higher margins in the event there is a recovery in prices in the short term. Coronado’s exposure to fuel price is fully hedged, and therefore, the recent spike in oil prices will not affect the earnings guidance.  These revised assumptions result in a reduction of $50 million in EBITDA to the lower end of the original guidance range of $737 to $807 million.

 

Managing Director and Chief Executive Officer Gerry Spindler said, “We can control most things in our business, but we cannot control global market pricing for metallurgical coal.  The recent fall in spot prices, if sustained, is likely to adversely impact EBITDA. In the short term, we see the possibility of prices remaining at lower levels, with the potential for further deterioration in light of the uncertainties and weakness in the global macro-economic environment.”

 

Coronado has achieved significant operating efficiencies at its Curragh mine since its acquisition in March 2018 and will continue to benefit from reduced operating costs.  Its Buchanan mine also ranks amongst the lowest cost metallurgical mines in the US and its management team has a track record of operating these assets very efficiently.  With a competitive and low-cost operating structure, low gearing and suite of highly sought-after, quality metallurgical coal products from the US domestic and global seaborne markets, Coronado remains optimistic for its long-term growth prospects.

 

“Given our low-cost operating structure and balance sheet capacity, we believe we are better positioned than most of our peers to weather a softer price environment without the need to reduce critical investment in our assets. Our disciplined approach to managing our balance sheet means we can also tolerate lower prices for longer and pursue accretive acquisitions if and when they arise. While the US trade negotiations and the weakness in global macro-economic factors are having material impacts on near-term prices, we believe the fundamental factors that support continued growth in the demand for high quality metallurgical coal in the long term remains unchanged,” Mr Spindler said.

 

UPDATED FY19 GUIDANCE

 

 

 

Previous Guidance

 

New Guidance

Production

 

21.2Mt - 21.6Mt

 

Unchanged

EBITDA

 

$737 - $807 million

 

$687 - $737 million

Operating Costs

 

$51/t - $52/t

 

Unchanged

Capital Expenditure

 

$160 - $180 million

 

Unchanged

 

— Ends —

 


 

For further information please contact:

 

Investors

 

Investors

 

Media

Ayten Saridas

 

Aidan Meka

 

Marie Festa

P: +617 3031 7737

 

P: +61 428 082 954

 

P: +61 405 494 705

E: investors@coronadoglobal.com.au

 

 

 

 

 

About Coronado

 

Coronado Global Resources is one of the world’s largest producers of high-quality metallurgical coal.  Through our market-leading expertise, we operate some of the safest, cleanest and lowest cost mines in the industry. Coronado employs over 1700 people and out head office is located in Brisbane, Australia.  Our operations are situated in two of the largest and most productive metallurgical coal basins in the world, the Bowen Basin in Queensland, Australia and the Central Appalachian region of the US, servicing customers throughout the Asia-Pacific, Americas and Europe. In total, we have eleven operating mines that are located close to transportation infrastructure. With a diversified production base and significant Reserves and Resource, Coronado is well placed to grow over many years to come.  As a reliable supplier to the steel industry, we are dedicated to making a positive contribution to the global economy; and through our sustainable business practices, to the local economies and communities where we operate.

 

Cautionary Notice Regarding Forward-Looking Statements

 

This release contains forward-looking statements concerning our business, operations, financial performance and condition, the coal, steel and other industries, as well as our plans, objectives and expectations for our business, operations, financial performance and condition. Forward-looking statements may be identified by words such as “may,” “could,” “believes,” “estimates,” “expects,” “intends,” “considers”, “forecasts”, “targets” and other similar words that involve risk and uncertainties.  Forward-looking statements provide management’s current expectations or predictions of future conditions, events or results. All statements that address operating performance, events or developments that we expect or anticipate will occur in the future are forward-looking statements. They may include estimates of EBITDA, operating costs, production, revenues, income, earnings per share, cost savings, capital expenditures, dividends, share repurchases, liquidity, capital structure, market share, industry volume, or other financial items, descriptions of management’s plans or objectives for future operations, or descriptions of assumptions underlying any of the above. All forward-looking statements speak only as of the date they are made and reflect Coronado’s good faith beliefs, assumptions and expectations, but they are not guarantees of future performance or events. Furthermore, Coronado disclaims any obligation to publicly update or revise any forward-looking statement, except as required by law. By their nature, forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those suggested by the forward-looking statements. Factors that might cause such differences include, but are not limited to, a variety of economic, competitive and regulatory factors, many of which are beyond Coronado’s control, that are described in our Registration Statement on Form 10 Amendment No.2 filed with the ASX and SEC on 28 June 2019, as well as additional factors we may describe from time to time in other filings with the ASX and SEC. You may get such filings for free at our website at www.coronadoglobal.com.au. You should understand that it is not possible to predict or identify all such factors and, consequently, you should not consider any such list to be a complete set of all potential risks or uncertainties.

 

Non-GAAP Financial Measures

 

Reconciliations of certain forward-looking non-GAAP financial measures, including our 2019 EBITDA guidance, to the most directly comparable GAAP financial measures are not provided because Coronado is unable to provide such reconciliations without unreasonable effort, due to the uncertainty and inherent difficulty of predicting the occurrence and the financial impact of items impacting comparability and the periods in which such items may be recognised. For the same reasons, Coronado is unable to address the probable significance of the unavailable information, which could be material to future results.

 


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