EX-99.1 2 tm2124367d3_ex99-1.htm EXHIBIT 99.1

 

Exhibit 99.1

 

Appendix 4D

 

Coronado Global Resources Inc. 

ARBN 628 199 468

 

The following comprises the financial information provided to the Australian Securities Exchange (“ASX”) under Listing Rule 4.2A, including the consolidated results of Coronado Global Resources Inc. (“Coronado” or the “Company” or the “Group”) for the half-year ended 30 June 2021 (HY21).

 

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

 

Results for announcement to the market

 

Reporting period (“Current period”): Half-year ended 30 June 2021

 

Previous corresponding period (“Previous period”): Half-year ended 30 June 2020

 

(In US$ thousands)  30 June 2021   30 June 2020   % Variance 
Revenue from ordinary activities   800,367    713,666    12%
Net loss from ordinary activities after tax attributable to members   (96,055)   (123,192)   (22%)
Net loss attributable to members   (96,055)   (123,192)   (22%)

 

A detailed discussion of the Company’s operating results for the half-year ended 30 June 2021 is included in Item 2 “Management’s Discussion and Analysis of Financial Condition and Results of Operations” of the attached Quarterly Report on Form 10-Q for the three and six months ended 30 June 2021 filed with the U.S. Securities and Exchange Commission (“SEC”).

 

The condensed consolidated balance sheets, unaudited condensed statements of operations and comprehensive income, unaudited condensed consolidated stockholders’ equity, and unaudited condensed consolidated statement of cash flows for the half-year ended 30 June 2021 are appended to this Appendix 4D. These unaudited financial statements and the related notes (collectively, the condensed consolidated financial statements), are also included in Part I. Item 1 “Financial Statements” of the attached Quarterly Report on Form 10-Q for the three and six months ended 30 June 2021 filed with the SEC.

 

       31 December 
Net tangible asset backing  Current period   2020 
Net tangible asset backing per ordinary security (US$)   4.61    5.60 
Net tangible asset backing per CDI (US$)   0.46    0.56 

 

Dividends

 

No dividends were paid or proposed during the period.

 

No dividend has been declared or paid since the half-year ended 30 June 2021.

 

Details of associates and joint ventures

 

Associate / joint venture  30 June 2021  30 June 2020
   Holdings %   Profit  Holdings %   Profit
JEP Mining LLC   100   Not material   50   Not material

 

During the half-year ended 30 June 2021, the Company acquired the remaining 50% equity interest on JEP Mining LLC at which point it became a wholly-owned subsidiary of the Company.

 

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 Quarterly Report on Form 10-Q for the three and six months ended 30 June 2021 filed with the SEC.

 

 

 

 

PART I – FINANCIAL INFORMATION

 

ITEM 1. FINANCIAL STATEMENTS

 

Condensed Consolidated Balance Sheets

(In US$ thousands, except share data)

 

   (Unaudited)   December 31, 
Assets  June 30, 2021   2020 
Current assets:          
Cash and restricted cash  $113,661   $45,736 
Trade receivables   209,184    175,206 
Related party trade receivables       81,970 
Income tax receivable   19,432    20,325 
Inventories   119,953    110,135 
Other current assets   48,465    44,006 
Assets held for sale   50,923    52,524 
Total current assets   561,618    529,902 
Non-current assets:          
Property, plant and equipment, net   1,463,505    1,521,508 
Right of use asset – operating leases, net   16,901    19,498 
Goodwill   28,008    28,008 
Intangible assets, net   4,115    4,217 
Restricted deposits and reclamation bonds   72,709    8,425 
Deferred income tax assets       24,654 
Other non-current assets   9,731    12,264 
Total assets  $2,156,587   $2,148,476 
Liabilities and Stockholders’ Equity          
Current liabilities:          
Accounts payable  $100,458   $74,651 
Accrued expenses and other current liabilities   229,264    234,526 
Asset retirement obligations   5,896    6,012 
Contract obligations   39,426    40,295 
Lease liabilities   8,459    8,414 
Other current financial liabilities   17,994    7,129 
Liabilities held for sale   16,092    16,719 
Total current liabilities   417,589    387,746 
Non-current liabilities:          
Asset retirement obligations   117,825    116,132 
Contract obligations   165,417    185,823 
Deferred consideration liability   224,545    216,513 
Interest bearing liabilities   332,134    327,625 
Other financial liabilities   16,403     
Lease liabilities   16,886    20,582 
Deferred income tax liabilities   33,604    64,366 
Other non-current liabilities   26,872    22,826 
Total liabilities   1,351,275    1,341,613 
Common stock $0.01 par value; 1,000,000,000 shares authorized, 167,645,373 shares          
issued and outstanding as of June 30, 2021 and 138,387,890 shares issued and          
outstanding as of December 31, 2020   1,677    1,384 
Series A Preferred stock $0.01 par value; 100,000,000 shares authorized, 1 Share issued          
and outstanding as of June 30, 2021 and December 31, 2020        
Additional paid-in capital   1,089,996    993,052 
Accumulated other comprehensive losses   (31,387)   (28,806)
Accumulated losses   (254,974)   (158,919)
Coronado Global Resources Inc. stockholders’ equity   805,312    806,711 
Noncontrolling interest       152 
Total stockholders’ equity   805,312    806,863 
Total liabilities and stockholders’ equity  $2,156,587   $2,148,476 

 

 

 

 

Unaudited Condensed Consolidated Statements of Operations and Comprehensive Income

(In US$ thousands, except share data)

 

   Three months ended   Six months ended 
   June 30,   June 30, 
   2021   2020   2021   2020 
Revenues:                    
Coal revenues  $384,470   $286,206   $683,631   $605,699 
Coal revenues from related parties   29,294    9,000    97,335    89,118 
Other revenues   10,492    9,142    19,401    18,849 
Total revenues   424,256    304,348    800,367    713,666 
Costs and expenses:                    
Cost of coal revenues (exclusive of items                    
shown separately below)   306,155    224,459    580,258    481,345 
Depreciation, depletion and amortization   41,212    41,547    94,293    86,849 
Freight expenses   55,906    40,504    108,047    82,886 
Stanwell rebate   15,076    24,787    30,895    57,415 
Other royalties   23,173    19,157    44,120    43,455 
Selling, general, and administrative expenses   7,431    7,158    13,206    13,353 
Restructuring costs   2,300        2,300     
Total costs and expenses   451,253    357,612    873,119    765,303 
Operating loss   (26,997)   (53,264)   (72,752)   (51,637)
Other income (expense):                    
Interest expense, net   (16,596)   (12,064)   (31,731)   (24,318)
Loss on debt extinguishment   (5,744)       (5,744)    
Impairment of assets       (63,111)       (63,111)
Unwind of discounting and credit losses   1,866        5,644     
Other, net   570    (8,537)   (2,358)   (4,485)
Total other expense, net   (19,904)   (83,712)   (34,189)   (91,914)
Loss before tax   (46,901)   (136,976)   (106,941)   (143,551)
Income tax (expense) benefit   (8,184)   22,646    10,884    20,355 
Net loss   (55,085)   (114,330)   (96,057)   (123,196)
Less: Net loss attributable to noncontrolling interest       (2)   (2)   (4)
Net loss attributable to Coronado Global Resources Inc.  $(55,085)  $(114,328)  $(96,055)  $(123,192)
Other comprehensive income, net of income                    
Foreign currency translation adjustment   (4,221)   39,161    (8,830)   (14,406)
Net gain (loss) on cash flow hedges, net of tax   1,323    19,546    6,249    (14,646)
Total other comprehensive income (loss)   (2,898)   58,707    (2,581)   (29,052)
Total comprehensive loss   (57,983)   (55,623)   (98,638)   (152,248)
Less: Net loss attributable to noncontrolling interest       (2)   (2)   (4)
Total comprehensive loss attributable to Coronado Global Resources Inc.  $(57,983)  $(55,621)  $(98,636)  $(152,244)
Loss per share of common stock                    
Basic   (0.36)   (1.18)   (0.66)   (1.27)
Diluted   (0.36)   (1.18)   (0.66)   (1.27)

 

 

 

 

Unaudited Condensed Consolidated Statements of Stockholders’ Equity

(In US$ thousands, except share data)

 

   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   $   $993,052   $(28,806)  $(158,919)  $152   $806,863 
Net loss                           (40,970)   (2)   (40,972)
Other comprehensive income (net of $2,111                       317            317 
Total comprehensive income (loss)                       317    (40,970)   (2)   (40,655)
Share-based compensation for equity classified                                             
awards                   (538)               (538)
Acquisition of noncontrolling interest                   (703)           (150)   (853)
Balance March 31, 2021   138,387,890   $1,384    1   $—    $991,811   $(28,489)  $(199,889)  $   $764,817 
Net loss                           (55,085)       (55,085)
Other comprehensive loss (net of $24 tax)                       (2,898)           (2,898)
Total comprehensive loss                       (2,898)   (55,085)       (57,983)
Issuance of common stock, net   29,257,483    293            97,448                97,741 
Share-based compensation for equity classified                                             
awards                   737                737 
Balance June 30, 2021   167,645,373   $1,677    1   $   $1,089,996   $(31,387)  $(254,974)  $—    $805,312 

 

   Common stock   Preferred stock   Additional   Accumulated other   (Accumulated losses)       Total 
                   paid in   comprehensive   Retained   Noncontrolling   stockholders 
   Shares   Amount   Series A   Amount   capital   losses   earnings   interest   equity 
Balance December 31, 2019   96,651,692   $967    1    $   $820,247   $(45,206)  $91,712   $221   $867,941 
Net loss                           (8,863)   (2)   (8,865)
Other comprehensive loss (net of $13,781 tax)                       (87,759)           (87,759)
Total comprehensive loss                       (87,759)   (8,863)   (2)   (96,624)
Share-based compensation for equity classified                                             
awards                   148                148 
Dividends paid                           (24,163)       (24,163)
Balance March 31, 2020   96,651,692   $967    1   —    $820,395   $(132,965)  $58,686   $219   $747,302 
Net loss                           (114,328)   (2)   (114,330)
Other comprehensive income (net of $6,534 tax)                       58,707            58,707 
Total comprehensive income (loss)                       58,707    (114,328)   (2)   (55,623)
Share-based compensation for equity classified                                             
awards                   248                248 
Balance June 30, 2020   96,651,692   $967    1   $   $820,643   $(74,258)  $(55,642)  $217   $691,927 

 

See accompanying notes to unaudited condensed consolidated financial statements.

 

 

 

 

Unaudited Condensed Consolidated Statements of Cash Flows

(In US$ thousands)

 

   Six months ended 
   June 30, 
   2021   2020 
Cash flows from operating activities:          
Net loss  $(96,057)  $(123,196)
Adjustments to reconcile net income to cash and restricted cash provided by operating activities:          
Depreciation, depletion and amortization   94,293    86,849 
Impairment of assets       63,111 
Amortization of right of use asset - operating leases   4,478    9,387 
Amortization of deferred financing costs   2,491    2,751 
Loss on debt extinguishment   5,744     
Non-cash interest expense   13,544    10,266 
Amortization of contract obligations   (16,747)   (14,794)
Loss on disposal of property, plant and equipment   529    208 
Decrease in contingent royalty consideration       (1,543)
Gain on operating lease derecognition       (1,180)
Equity-based compensation expense   199    396 
Deferred income taxes   (7,031)   (6,302)
Reclamation of asset retirement obligations   (1,562)   (1,574)
Unwind of discounting and credit losses   (5,644)    
Changes in operating assets and liabilities:          
Accounts receivable - including related party receivables   45,205    (6,223)
Inventories   (10,630)   21,133 
Other current assets   (3,601)   5,425 
Accounts payable   32,979    (27,984)
Accrued expenses and other current liabilities   611    3,938 
Operating lease liabilities   (5,509)   (10,374)
Change in other liabilities   3,632    (17,930)
Net cash provided by (used in) operating activities   56,924    (7,636)
Cash flows from investing activities:          
Capital expenditures   (58,307)   (61,927)
Purchase of restricted deposits and reclamation bonds   (84,342)   (51)
Redemption of restricted deposits and reclamation bonds   19,726    125 
Net cash used in investing activities   (122,923)   (61,853)
Cash flows from financing activities:          
Proceeds from interest bearing liabilities and other financial liabilities   411,524    145,000 
Debt issuance costs and other financing costs   (15,143)   (2,423)
Principal payments on interest bearing liabilities and other financial liabilities   (365,413)   (39,515)
Principal payments on finance lease obligations       (642)
Dividends paid       (24,162)
Proceeds from stock issuance, net   97,741     
Net cash provided by financing activities   128,709    78,258 
Net increase in cash and restricted cash   62,710    8,769 
Effect of exchange rate changes on cash and restricted cash   5,215    1,002 
Cash and restricted cash at beginning of period   45,736    26,553 
Cash and restricted cash at end of period  $113,661   $36,324 
Supplemental disclosure of cash flow information:          
Cash payments for interest  $13,006   $10,981 
Cash (refund) paid for taxes  $(4,433)  $2,029 

 

 

 

 

Net tangible asset backing per Ordinary Share/Chess Depositary Interests (“CDIs”)

 

(In US$ thousands, except share data)  30 June 2021   31 December 2020 
Total Assets   2,156,587    2,148,476 
Less: Goodwill   28,008    28,008 
Less: Intangible assets   4,115    4,217 
Less: Total Liabilities   1,351,275    1,341,613 
Net tangible assets   773,189    774,638 
           
Number of ordinary shares   167,645,373    138,387,890 
Net tangible assets backing per ordinary Security $   4.61    5.60 
Number of CDIs   1,676,453,731    1,383,878,900 
Net tangible assets backing per CDI $   0.46    0.56