10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

___________________________________________________

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 September 30, 2020

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) 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

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 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 is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “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	☐

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 per share, outstanding on October 31, 2020, including shares of common stock underlying CDIs, was 138,387,890.

TABLE OF CONTENTS

	Page
PART I – FINANCIAL INFORMATION
Item 1. Financial statements
Condensed Consolidated Balance Sheets as of September 30, 2020 and December 31, 2019	2
Unaudited Condensed Consolidated Statements of Operations and Comprehensive Income for the three and nine months ended September 30, 2020 and 2019	3
Unaudited Condensed Consolidated Statements of Stockholders’ Equity for the three and nine months ended September 30, 2020 and 2019	4
Unaudited Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2020 and 2019	6
Notes to Unaudited Condensed Consolidated Financial Statements	7
Report of Independent Registered Public Accounting Firm	24
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	25
Item 3. Quantitative and Qualitative Disclosures About Market Risk	45
Item 4. Controls and Procedures	47
PART II – OTHER INFORMATION
Item 1. Legal Proceedings	48
Item 1A. Risk Factors	48
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	49
Item 3. Defaults Upon Senior Securities	49
Item 4. Mine Safety Disclosures	49
Item 5. Other Information	49
Item 6. Exhibits	50
SIGNATURES	51

i

PART I – FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

Condensed Consolidated Balance Sheets

(In US$ thousands, except share data)

Assets	Note	(Unaudited) September 30, 2020		December 31, 2019
Current assets:
Cash and restricted cash		$	14,659	$	26,553
Trade receivables			187,725		133,297
Related party trade receivables	20		92,043		86,796
Income tax receivable			—		897
Inventories	7		126,929		162,170
Other current assets			47,744		44,109
Total current assets			469,100		453,822
Non-current assets:
Property, plant and equipment, net	8		1,543,397		1,632,788
Right of use asset – operating leases, net	11		21,511		62,566
Goodwill	9		28,008		28,008
Intangible assets, net	9		4,267		5,079
Deposits and reclamation bonds			6,254		12,227
Deferred income tax assets			24,264		2,852
Other non-current assets			13,532		17,512
Total assets		$	2,110,333	$	2,214,854
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable		$	40,815	$	64,392
Accrued expenses and other current liabilities	10		257,447		238,788
Income tax payable			18,033		29,760
Asset retirement obligations			10,731		10,064
Contingent royalty consideration	17		—		688
Contract obligations	14		38,087		36,935
Lease liabilities	11		9,476		29,685
Other current financial liabilities			24,897		5,894
Total current liabilities			399,486		416,206
Non-current liabilities:
Asset retirement obligations			133,324		121,710
Contract obligations	14		181,611		204,877
Deferred consideration liability	15		193,753		174,605
Interest bearing liabilities	13		287,625		330,000
Other financial liabilities			2,405		1,546
Lease liabilities	11		22,120		48,165
Contingent royalty consideration	17		—		855
Deferred income tax liabilities			49,207		47,973
Other non-current liabilities			926		976
Total liabilities			1,270,457		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 September 30, 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 September 30, 2020 and December 31, 2019			—		—
Additional paid-in capital			992,075		820,247
Accumulated other comprehensive losses	18		(56,364)		(45,206)
(Accumulated losses) retained earnings			(97,434)		91,712
Coronado Global Resources Inc. stockholders’ equity			839,661		867,720
Noncontrolling interest			215		221
Total stockholders’ equity			839,876		867,941
Total liabilities and stockholders’ equity		$	2,110,333	$	2,214,854
See accompanying notes to unaudited condensed consolidated financial statements.

Coronado Global Resources Inc. Form 10-Q September 30, 20202

Unaudited Condensed Consolidated Statements of Operations and Comprehensive Income
(In US$ thousands, except share data)

		Three Months EndedSeptember 30,				Nine Months EndedSeptember 30,
	Note	2020		2019		2020		2019
Revenues:
Coal revenues	3	$	349,686	$	422,174	$	955,385	$	1,341,503
Coal revenues from related parties	3, 20		17,051		103,600		106,169		396,758
Other revenues	3		9,648		10,067		28,497		31,915
Total revenues			376,385		535,841		1,090,051		1,770,176
Costs and expenses:
Cost of coal revenues (exclusive of items shown separately below)			263,858		264,585		745,203		798,281
Depreciation, depletion and amortization			48,693		39,855		135,542		125,134
Freight expenses			50,590		36,973		133,475		126,335
Stanwell rebate			25,157		40,172		82,571		134,846
Other royalties			21,697		35,815		65,151		129,237
Selling, general, and administrative expenses			6,785		8,233		20,138		26,544
Total costs and expenses			416,780		425,633		1,182,080		1,340,377
Operating income			(40,395)		110,208		(92,029)		429,799
Other income (expenses):
Interest expense, net			(12,207)		(9,319)		(36,528)		(26,583)
Impairment of assets	4		—		—		(63,111)		—
Other, net	5		(361)		(1,172)		(4,846)		(130)
Total other income (expense), net			(12,568)		(10,491)		(104,485)		(26,713)
(Loss) income before tax			(52,963)		99,717		(196,514)		403,086
Income tax benefit (expense)	12		11,169		(30,618)		31,525		(119,661)
Net (loss) income			(41,794)		69,099		(164,989)		283,425
Less: Net loss attributable to noncontrolling interest			(2)		(2)		(6)		(6)
Net (loss) income attributable to Coronado Global Resources Inc.		$	(41,792)	$	69,101	$	(164,983)	$	283,431
Other comprehensive income, net of income taxes:
Foreign currency translation adjustment	18		14,867		(13,128)		461		(14,193)
Net gain (loss) on cash flow hedges, net of tax	18		3,027		(4,167)		(11,619)		2,305
Total other comprehensive income (loss)			17,894		(17,295)		(11,158)		(11,888)
Total comprehensive (loss) income			(23,900)		51,804		(176,147)		271,537
Less: Net loss attributable to noncontrolling interest			(2)		(2)		(6)		(6)
Total comprehensive (loss) income attributable to Coronado Global Resources Inc.		$	(23,898)	$	51,806	$	(176,141)	$	271,543
(Loss) earnings per share of common stock
Basic	16		(0.37)		0.71		(1.62)		2.93
Diluted	16		(0.37)		0.71		(1.62)		2.93
See accompanying notes to unaudited condensed consolidated financial statements.

Coronado Global Resources Inc. Form 10-Q September 30, 20203

Unaudited Condensed Consolidated Statements of Stockholders’ Equity

(In US$ thousands, except share data)

		Common stock		Preferred stock		Additional	Accumulated other	(Accumulated		Total
						paid in	comprehensive	losses) 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
Net income		—	—	—	—	—	—	(41,792)	(2)	(41,794)
Other comprehensive income (net of $1,107 of tax)		—	—	—	—	—	17,894	—	—	17,894
Total comprehensive income		—	—	—	—	—	17,894	(41,792)	(2)	(23,900)
Issuance of common stock, net		41,736,198	417	—	—	171,168	—	—	—	171,585
Share-based compensation for equity classified awards		—	—	—	—	264	—	—	—	264
Balance September 30, 2020	$	138,387,890	1,384	1	—	992,075	(56,364)	(97,434)	215	839,876

Coronado Global Resources Inc. Form 10-Q September 30, 20204

		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, 2018	$	96,651,692	967	1	—	1,107,948	(49,609)	194,220	282	1,253,808
Net income		—	—	—	—	—	—	96,820	—	96,820
Other comprehensive income (net of $2,391 tax)		—	—	—	—	—	5,021	—	—	5,021
Total comprehensive income		—	—	—	—	—	5,021	96,820	—	101,841
Dividends paid		—	—	—	—	—	—	(299,682)	—	(299,682)
Balance March 31, 2019	$	96,651,692	967	1	—	1,107,948	(44,588)	(8,642)	282	1,055,967
Net income (loss)		—	—	—	—	—	—	117,510	(4)	117,506
Other comprehensive income (net of $383 tax)		—	—	—	—	—	386	—	—	386
Total comprehensive income (loss)		—	—	—	—	—	386	117,510	(4)	117,892
Share-based compensation for equity classified awards		—	—	—	—	93	—	—	—	93
Balance June 30, 2019	$	96,651,692	967	1	—	1,108,041	(44,202)	108,868	278	1,173,952
Net income (loss)		—	—	—	—	—	—	69,101	(2)	69,099
Other comprehensive income (net of $1,796 tax)		—	—	—	—	—	(17,295)	—	—	(17,295)
Total comprehensive income (loss)		—	—	—	—	—	(17,295)	69,101	(2)	51,804
Share-based compensation for equity classified awards		—	—	—	—	150	—	—	—	150
Dividends paid		—	—	—	—	—	—	(108,364)	—	(108,364)
Return of capital		—	—	—	—	(288,020)	—	—	—	(288,020)
Balance September 30, 2019	$	96,651,692	967	1	—	820,171	(61,497)	69,605	276	829,522
See accompanying notes to unaudited condensed consolidated financial statements.

Coronado Global Resources Inc. Form 10-Q September 30, 20205

Unaudited Condensed Consolidated Statements of Cash Flows
(In US$ thousands)

	Nine Months Ended
	September 30,
	2020		2019
Cash flows from operating activities:
Net (loss) income	$	(164,989)	$	283,425
Adjustments to reconcile net income to cash and restricted cash provided by operating activities:
Depreciation, depletion and amortization		135,542		125,259
Impairment of assets		63,111		—
Amortization of right of use asset - operating leases		11,092		16,978
Amortization of deferred financing costs		4,134		3,108
Non-cash interest expense		16,180		14,725
Amortization of contract obligations		(23,575)		(25,760)
Loss on disposal of property, plant and equipment		62		(267)
Decrease in contingent royalty consideration		(1,543)		(11,296)
Gain on operating lease derecognition		(1,180)		—
Equity-based compensation expense		660		243
Deferred income taxes		(13,554)		18,031
Reclamation of asset retirement obligations		(2,324)		(2,790)
Change in estimate of asset retirement obligation		—		(125)
Changes in operating assets and liabilities:
Accounts receivable - including related party receivables		(63,645)		27,668
Inventories		35,719		(73,741)
Other current assets		(2,912)		(6,310)
Accounts payable		(24,541)		7,675
Accrued expenses and other current liabilities		8,859		13,108
Operating lease liabilities		(12,607)		(18,041)
Change in other liabilities		(2,584)		66,721
Net cash (used in) provided by operating activities		(38,095)		438,611
Cash flows from investing activities:
Capital expenditures		(85,237)		(117,369)
Purchase of deposits and reclamation bonds		(52)		(947)
Redemption of deposits and reclamation bonds		6,026		5
Net cash used in investing activities		(79,263)		(118,311)
Cash flows from financing activities:
Proceeds from interest bearing liabilities and other financial liabilities		176,953		422,599
Debt issuance costs and other financing costs		(2,955)		(4,082)
Principal payments on interest bearing liabilities and other financial liabilities		(216,828)		(112,754)
Principal payments on finance lease obligations		(2,387)		(994)
Payment of contingent purchase consideration		—		(17,660)
Dividends paid		(24,162)		(408,046)
Shareholders' distributions		—		(288,020)
Proceeds from stock issuance, net		171,585		—
Net cash provided by (used in) financing activities		102,206		(408,957)
Net decrease in cash and restricted cash		(15,152)		(88,657)
Effect of exchange rate changes on cash and restricted cash		3,258		(1,779)
Cash and restricted cash at beginning of period		26,553		124,881
Cash and restricted cash at end of period	$	14,659	$	34,445
Supplemental disclosure of cash flow information:
Cash payments for interest	$	17,246	$	9,244
Cash paid/(Refund) for taxes	$	(6,431)	$	49,884
See accompanying notes to unaudited condensed consolidated financial statements.

Coronado Global Resources Inc. Form 10-Q September 30, 20206

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

1. Description of Business, Basis of Presentation

(a) Description of the Business

Coronado Global Resources Inc. (together with its subsidiaries, the “Company” or “Coronado”) 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 USA.

(b) Basis of Presentation

The interim unaudited condensed consolidated financial statements have been prepared in accordance with the requirements of the 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 24, 2020.

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, or Coronado, are used interchangeably to refer to Coronado Global Resources Inc. and its subsidiaries, 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 in 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, 2019 has been derived from the Company’s audited consolidated balance sheet at that date. The Company’s results of operations for the three and nine months ended September 30, 2020 are not necessarily indicative of the results that may be expected for future quarters or for the year ending December 31, 2020.

COVID-19

The COVID-19 global pandemic has continued to result in a challenging working environment which has significantly impacted the demand and price for metallurgical coal. Authorities in many countries around the world have implemented numerous and varying measures to reduce the spread and limit the impact of COVID-19, including travel bans and restrictions, quarantines, curfews, stay-at-home orders, business shutdowns and closures. Many countries have implemented multi-stage policies with the goal of re-opening markets and boosting economic activity. These measures have impacted and will continue to impact our mining operations, our customers, employees, suppliers and other third parties with whom we do business. There is considerable uncertainty regarding how current and future health and safety measures implemented in response to the pandemic will impact our business, including whether they will result in further changes in demand for metallurgical coal, increases in operating costs or impacts to our supply chain, and whether measures will result in port closures or border restrictions, each or all of which can impact our ability to produce and sell our coal.

The safety and wellbeing of our workforce remains our highest priority and we continue to manage the potential threat of COVID-19 at our mines and offices. The Company formed a COVID-19 taskforce spanning its operations in Australia and the U.S. and proactively enacted stringent preventative measures to ensure the safety and well-being of employees and contractors during the pandemic. These procedures include increased screenings of employees as they arrive at the workplace, strict adherence to hygiene and social distancing guidelines while at work and also a cleaning and sanitization program for equipment and facilities.

Coronado Global Resources Inc. Form 10-Q September 30, 20207

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Our operations in the United States, or U.S. Operations, were idled in April and May 2020 due to the COVID-19 induced economic downturn and decline in demand from customers in Europe, South America and North America. While the mines were idled, the Company continued to make shipments to its customers from existing inventories which allowed the Company to meet all customer commitments. On June 1, 2020, the Company resumed operations at the Buchanan and Logan mines. Production at these mines has progressively increased in line with demand, with the Buchanan mine now returning to full operating capacity. The Greenbrier mine remains idle and the Company will continue to monitor market developments to evaluate the duration for which the mine will remain idle. To date, there have been a small number of the Company’s workforce who have tested positive for COVID-19 in our U.S. Operations. The Company has taken all necessary steps to isolate the affected workers and protect the remaining workforce. There has been no material adverse impact to production.

The global economic slowdown resulting from the effects of COVID-19 has sharply reduced the demand for steel in all markets except for China, where steel production remained elevated during the second and third quarter of 2020. Steel demand in China has been supported by large infrastructure investment, with signs of improvement in discretionary steel demand (e.g. automotive) and property. Globally, steel producers in the third quarter restarted blast furnace operations as demand for steel was underpinned by the automotive and constructions sectors. Blast furnace restarts accelerated in September with numerous steel mills returning to operation in Japan, South Korea, Europe and Brazil. Demand for steel in India has risen to near pre-lockdown levels. Overall, the supply and demand constraints in respect of the global impacts of COVID-19 on our operations in Australia, or Australian Operations, has been limited due to the unique position of the Curragh mine as a strategic supplier of ‘base load’ metallurgical coal for coke blends.

In response to the global impacts of COVID-19 on the demand for steel and the resulting impact on the price and demand for metallurgical coal, the Company has taken steps to safeguard its operations, strengthen its balance sheet and increase liquidity by undertaking a capital raising by issuing additional equity on the ASX, reducing capital expenditures and managing operating costs in a disciplined manner. During the third quarter, the Company reduced its net debt by $131.7 million to $273.2 million and had $262.4 million undrawn and available under the Syndicated Facility Agreement, or SFA, subject to a modified liquidity buffer of $50.0 million, and cash balances (excluding restricted cash) of $14.4 million as at September 30, 2020. Refer to Note 6 “Capital Structure” and Note 13 “Interest Bearing Liabilities”.

Due to uncertainties surrounding the impact of the COVID-19 pandemic on global markets into the future, the Company cannot currently predict the extent of any potential material adverse impact to its business, results of operations, financial condition and ability to comply with financial covenants under the SFA.

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, 2019 included in Coronado Global Resources Inc.’s Annual Report on Form 10-K filed with the SEC and ASX on February 24, 2020.

(a) Newly Adopted Accounting Standards

Financial Instruments - Credit Losses. In June 2016, the FASB issued ASU 2016-13 related to the measurement of credit losses on financial instruments. The pronouncement replaces the incurred loss methodology to record credit losses with a methodology that reflects the expected credit losses for financial assets not accounted for at fair value with gains and losses recognized through net income.

On January 1, 2020, the Company adopted ASU 2016-13. The cumulative-effect adjustment upon adoption was not material to the Company’s results of operations and its cash flows. Changes to the Company’s accounting policies as a result of adoption are discussed below.

The Company extends trade credit to its customers in the ordinary course of business. Trade receivables and related party receivables are recorded initially at fair value and subsequently at amortized cost, less any Expected Credit Losses, or ECL. Trade receivables from provisionally priced sales are carried at fair value to profit or loss.

For trade and related party receivables carried at amortized cost, the Company determines ECL on a forward-looking basis. The amount of ECL is updated at each reporting date to reflect changes in credit risk since initial recognition of the respective financial instrument. The Company recognizes the lifetime ECL. The ECL is estimated based on the Company’s historic credit loss experience, adjusted for factors that are specific to the financial asset, general economic conditions, financial asset type, term and an assessment of both the current as well as forecast conditions at the reporting date, modified for credit enhancements such as letters of credit obtained. To measure ECL, trade and related party receivables have been grouped based on shared credit risk characteristics and the days past due.

The Company considers an event of default has occurred when a financial asset is significantly past due or other factors indicate that the debtor is unlikely to pay amounts owed to the Company. A financial asset is credit impaired when there is evidence that the counterparty is in significant financial difficulty or a breach of contract, such as default or past due event

Coronado Global Resources Inc. Form 10-Q September 30, 20208

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

has occurred. The Company writes off a financial asset when there is information indicating there is no realistic prospect of recovery of the asset from the counterparty. The amount of the impairment loss is recognized in the consolidated statement of operations and other comprehensive income within “other, net”. Subsequent recoveries of amounts previously written off are credit against “other, net” in the consolidated statement of operations and other comprehensive income.

Fair Value Measurement. In August 2018, the FASB issued ASU 2018-13, which amended the fair value measurement guidance by removing and modifying certain disclosure requirements, while also adding new disclosure requirements.

On January 1, 2020, the Company adopted ASU 2018-13. The amendments on changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements and the narrative description of measurement uncertainty were applied prospectively for only the most recent interim period presented. All other amendments were applied retrospectively to all periods presented. The adoption of ASU 2018-13 did not have a material impact on the Company’s unaudited condensed consolidated financial statements.

Intangibles – Goodwill and Other: Simplifying the Test for Goodwill Impairment. In January 2018, the FASB issued ASU 2017-04, which eliminates step two from the goodwill impairment test. Under ASU 2017-04, an entity should recognize an impairment charge for the amount by which the carrying amount of a reporting unit exceeds its fair value up to the amount of goodwill allocated to that reporting unit.

On January 1, 2020, the Company adopted ASU 2017-04. Changes to the Company’s accounting policies as a result of adoption are discussed below.

Goodwill is an asset representing the future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized. Goodwill is not amortized but is reviewed for impairment annually or when circumstances or other events indicate that impairment may have occurred.

The Company makes a qualitative assessment of whether it is more likely than not that a reporting unit’s fair value is less than its carrying amount. Circumstances that are considered as part of the qualitative assessment and could trigger a quantitative impairment test include but are not limited to: a significant adverse change in the business climate; a significant adverse legal judgment; adverse cash flow trends; an adverse action or assessment by a government agency; unanticipated competition; and a significant restructuring charge within a reporting unit. If a quantitative assessment is determined to be necessary, the Company compares the fair value of a reporting unit with its carrying amount, including goodwill. If the carrying amount of a reporting unit exceeds its fair value, the Company recognizes an impairment charge for the amount by which the carrying amount exceeds its fair value to the extent of the amount of goodwill allocated to that reporting unit.

The Company defines reporting units at the business unit level. For purposes of testing goodwill for impairment, goodwill has been allocated to the reporting units to the extent it relates to each reporting unit.

(b) Accounting Standards Not Yet Implemented

“Income Taxes - Simplifying the Accounting for Income Taxes” - In December 2019, the FASB issued ASU 2019-12, which is intended to simplify various aspects related to accounting for income taxes. ASU 2019-12 removes certain exceptions to the general principles in Topic 740 and clarifies and amends existing guidance to improve consistent application. ASU 2019-12 will be effective for interim and annual periods beginning after December 15, 2020. The Company is currently evaluating the impact the adoption of ASU 2019-12 will have on its consolidated financial statements.

(c) Reclassification

Certain amounts in the prior period Condensed Consolidated Balance Sheet have been reclassified to conform to the presentation of the current period financial statements. These related to the reclassification of four reportable segments into the current two reportable segments discussed in Note 3 “Segment information”. These reclassifications had no effect on the previously reported net income.

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 USA. The Australian Operations comprise the 100%-owned Curragh producing mine complex. The U.S. Operations comprise two 100%-owned producing mine complexes (Buchanan and Logan), one 100%-owned temporarily idled mine complex (Greenbrier), two development properties (Pangburn-Shaner-Fallowfield and Russell County) and one idle property (Amonate).

Commencing on January 1, 2020, the Company updated its reportable segments to be the country in which they operate, that is Australia and the United States, in order to align with the manner in which its Chief Operating Decision Maker, or CODM, views the Company’s business for purposes of reviewing performance and allocating resources.

Coronado Global Resources Inc. Form 10-Q September 30, 20209

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Factors affecting and differentiating the financial performance of each of these two reporting segments generally include coal quality, geology, and coal marketing opportunities, mining and transportation methods and regulatory issues. This is the basis on which internal financial and operational reports are currently prepared and provided to the CODM and reflects how the CODM manages performance and determines the allocation of resources within the Company. The Company believes this method of segment reporting reflects both the way its business segments are currently managed and the way the performance of each segment is evaluated. Comparative disclosures have been restated to a consistent basis.

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.

Adjusted EBITDA is defined as earnings before interest, tax, 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 our segments’ operating performance. “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 consolidated financials.

Reportable segment results as of and for the three and nine months ended September 30, 2020 and 2019 are presented below:

	Australia	United States	Other and Corporate	Total
	($ thousands)
Three months ended September 30, 2020
Total revenues	271,413	104,972	—	376,385
Adjusted EBITDA	2,144	14,413	(7,006)	9,551
Net loss	(28,582)	(12,016)	(1,196)	(41,794)
Total assets	1,106,518	952,167	51,648	2,110,333
Capital expenditures	14,574	8,644	92	23,310
Three months ended September 30, 2019
Total revenues	350,505	185,336	—	535,841
Adjusted EBITDA	94,860	63,051	(8,169)	149,742
Net income (loss)	56,379	27,994	(15,274)	69,099
Total assets	1,114,022	1,004,918	49,418	2,168,358
Capital expenditures	22,981	27,961	—	50,942
Nine Months Ended September 30, 2020
Total revenues	744,968	345,083	—	1,090,051
Adjusted EBITDA	8,406	56,153	(20,063)	44,496
Net loss	(51,483)	(76,889)	(36,617)	(164,989)
Total assets	1,106,518	952,167	51,648	2,110,333
Capital expenditures	33,378	50,561	1,298	85,237
Nine Months Ended September 30, 2019
Total revenues	1,144,689	625,487	—	1,770,176
Adjusted EBITDA	366,568	214,662	(26,134)	555,096
Net income (loss)	216,136	105,404	(38,115)	283,425
Total assets	1,114,022	1,004,918	49,418	2,168,358
Capital expenditures	38,407	78,957	5	117,369

Coronado Global Resources Inc. Form 10-Q September 30, 202010

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

The reconciliation of Adjusted EBITDA to net income attributable to the Company for the three and nine months ended September 30, 2020 and 2019 are as follows:

	Three months ended				Nine Months Ended
	September 30,				September 30,
	2020		2019		2020		2019
	(US$ thousands)				(US$ thousands)
Net (loss) income	$	(41,794)	$	69,099	$	(164,989)	$	283,425
Depreciation, depletion and amortization		48,693		39,855		135,542		125,134
Interest expense (net of income)		12,207		9,319		36,528		26,583
Other foreign exchange losses		1,614		851		5,829		293
Income tax (benefit) expense		(11,169)		30,618		(31,525)		119,661
Impairment of assets		—		—		63,111		—
Consolidated adjusted EBITDA	$	9,551	$	149,742	$	44,496	$	555,096

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 September 30, 2020
	Australia	United States	Other and Corporate	Total
	($ thousands)
Product Groups:
Metallurgical coal	233,063	103,401	—	336,464
Thermal coal	29,428	845	—	30,273
Total coal revenue	262,491	104,246	—	366,737
Other(1)	8,922	726	—	9,648
Total	271,413	104,972	—	376,385

	Three months ended September 30, 2019
	Australia	United States	Other and Corporate	Total
	($ thousands)
Product Groups:
Metallurgical coal	318,634	172,284	—	490,918
Thermal coal	23,582	11,274	—	34,856
Total coal revenue	342,216	183,558	—	525,774
Other(1)	8,289	1,778	—	10,067
Total	350,505	185,336	—	535,841

	Nine months ended September 30, 2020
	Australia	United States	Other and Corporate	Total
	($ thousands)
Product Groups
Metallurgical coal	640,893	337,599	—	978,492
Thermal coal	80,079	2,983	—	83,062
Total coal revenue	720,972	340,582	—	1,061,554
Other(1)	23,996	4,501	—	28,497
Total	744,968	345,083	—	1,090,051

Coronado Global Resources Inc. Form 10-Q September 30, 202011

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

	Nine months ended September 30, 2019
	Australia	United States	Other and Corporate	Total
	($ thousands)
Product Groups
Metallurgical coal	1,046,598	579,818	—	1,626,416
Thermal coal	71,563	40,282	—	111,845
Total coal revenue	1,118,161	620,100	—	1,738,261
Other(1)	26,528	5,387	—	31,915
Total	1,144,689	625,487	—	1,770,176

(1) Other revenue for Curragh includes the amortization of the Stanwell non-market coal supply contract obligation liability.

4. Impairment of assets

Long-lived assets, such as property, plant, and equipment, and purchased intangible assets subject to amortization, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If circumstances require a long-lived asset or asset group be tested for possible impairment, the Company first compares undiscounted pre-tax cash flows expected to be generated by that asset or asset group to its carrying value. If the carrying value of the long-lived asset or asset group is not recoverable on an undiscounted pre-tax cash flow basis, an impairment is recognized to the extent that the carrying value exceeds its fair value. Fair value is determined through various valuation techniques including discounted cash flow models, quoted market values and third-party independent appraisals, as considered necessary. No impairment losses were recognized for property, plant and equipment or amortizing intangible assets for the years ended December 31, 2019 and 2018.

The following costs are reflected in “Impairment of Assets” in the unaudited Consolidated Statement of Operations and Other Comprehensive income for the nine months ended September 30, 2020:

		Reportable Segment
(US$ thousands)		United States
Property, plant and equipment, net	$	62,481
Right of use asset – operating leases, net		10
Intangible assets, net		620
Total	$	63,111

The Company generally does not view short-term declines in metallurgical coal prices in the markets in which it sells its products as a singular indicator of impairment. However, due to the decline in metallurgical coal prices during the first six months of 2020, the resulting impact on business conditions from COVID-19 and the idling of the Greenbrier mine for an undetermined period, there were indications that the carrying value of the Greenbrier mining asset, in the U.S., exceeded its fair value. As at June 30, 2020, the Company performed an impairment assessment in accordance with the rules of ASC 360 – Property, Plant and Equipment, and determined an impairment charge of $63.1 million reducing the carrying value of Greenbrier’s long-lived assets to approximately $50.0 million. This carrying value remained unchanged as at September 30, 2020, but for ongoing depletion and depreciation charges during the quarter, and as such no further impairment charge was recognized for the three months ended September 30, 2020. The fair value of the Greenbrier mining asset was derived using Level 3 inputs and was primarily driven by estimates of future cash flows based on a combination of historical results adjusted to reflect the Company’s best estimate of future market and operating conditions, including its current life of mine plan, and reserve multiple valuation. The Company concluded that no indicators of impairment or requisite charges were required at any of the Company’s other mining assets.

Coronado Global Resources Inc. Form 10-Q September 30, 202012

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

5. Expenses

Other, Net

	Three months ended				Nine Months Ended
	September 30,				September 30,
	2020		2019		2020		2019
	(US$ thousands)				(US$ thousands)
Other foreign exchange losses		(1,614)		(851)		(5,829)		(293)
Other income (expenses)		1,253		(321)		983		163
Total Other, net	$	(361)	$	(1,172)	$	(4,846)	$	(130)

6. Capital Structure

On August 26, 2020, the Company successfully completed a fully underwritten placement of CDIs on the ASX to institutional investors, or the Placement, together with the institutional component of a fully underwritten 2 for 11 pro-rata accelerated non-renounceable entitlement offer, or the Entitlement Offer. On completion, a total of 398,911,490 fully paid new CDIs (representing a beneficial interest in 39,891,149 shares of common stock) were issued at a price of A$0.60 per CDI, resulting in gross proceeds of $171.7 million (A$239.4 million).

On September 15, 2020, the Company successfully completed the retail component of the Entitlement Offer. On completion, a total 18,450,490 fully paid new CDIs (representing a beneficial interest in 1,845,049 shares of common stock) were issued on the ASX at a price of A$0.60 per CDI, resulting in gross proceeds of $8.1 million (A$11.1 million).

As a result of the Placement and Entitlement Offer, 41,736,198 common stock, par value of $0.01 were issued by the Company.

Total proceeds, net of share issuance costs, of $171.6 million were used to repay a portion of drawn balances under the SFA.

7.Inventories

(US$ thousands)	September 30, 2020		December 31,2019
Raw coal	$	25,499	$	41,127
Saleable coal		41,678		63,006
Total coal inventories		67,177		104,133
Supplies inventory		59,752		58,037
Total inventories	$	126,929	$	162,170

8.Property, Plant and Equipment

(US$ thousands)	September 30, 2020		December 31,2019
Land	$	27,197	$	27,037
Buildings and improvements		83,941		80,658
Plant, machinery, mining equipment and transportation vehicles		965,711		896,392
Mineral rights and reserves		413,755		464,710
Office and computer equipment		5,270		3,977
Mine development		526,492		497,439
Asset retirement obligation asset		82,877		81,520
Construction in process		45,727		80,646
		2,150,970		2,132,379
Less accumulated depreciation, depletion and amortization		607,573		499,591
Net property, plant and equipment	$	1,543,397	$	1,632,788

Coronado Global Resources Inc. Form 10-Q September 30, 202013

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

9.Goodwill and Other Intangible Assets

(a) Acquired Intangible Assets

	September 30, 2020
(US$ thousands)	Weighted average amortization period (years)	Gross carrying amount		Accumulated amortization		Net carrying amount
Intangible assets:
Amortizing intangible assets:
Mining permits - Logan	15		1,642		815		827
Mining permits - Buchanan	28		4,000		560		3,440
Total intangible assets		$	5,642	$	1,375	$	4,267
	December 31, 2019
(US$ thousands)	Weighted average amortization period (years)	Gross carrying amount		Accumulated amortization		Net carrying amount
Intangible assets:
Amortizing intangible assets:
Mining permits - Greenbrier	14	$	1,500	$	840	$	660
Mining permits - Logan	15		1,642		756		886
Mining permits - Buchanan	28		4,000		467		3,533
Total intangible assets		$	7,142	$	2,063	$	5,079

Amortization expense is charged using the straight-line method over the useful lives of the respective intangible asset. The aggregate amount of amortization expense for amortizing intangible assets for the three months ended September 30, 2020 and 2019 was $0.1 million and $0.1 million, respectively. The aggregate amount of amortization expense for amortizing intangible assets for the nine months ended September 30, 2020 and 2019 was $0.2 million and $0.2 million, respectively.

Mining permit intangible assets relating to Greenbrier with a carrying value of $0.6 million were fully impaired as at June 30, 2020. Refer to Note 4 “Impairment of assets” for further disclosure.

(b) Goodwill

In connection with the Buchanan acquisition on March 31, 2016, the Company recorded goodwill in the amount of $28.0 million. The balance of goodwill as at both September 30, 2020 and December 31, 2019 was $28.0 million.

10. Accrued Expenses and Other Current Liabilities

Accrued expenses and other current liabilities consist of the following:

(US$ thousands)	September 30, 2020		December 31,2019
Wages and employee benefits	$	58,660	$	61,008
Taxes other than income taxes		8,895		3,899
Accrued royalties		36,670		43,468
Accrued freight costs		33,829		30,416
Accrued mining fees		71,556		49,027
Acquisition related accruals		30,564		30,190
Other liabilities		17,273		20,780
Total accrued expenses and other current liabilities	$	257,447	$	238,788

Included within acquisition related accruals is an amount outstanding for stamp duty payable on the Curragh acquisition of $30.6 million (A$43.0 million). This amount was outstanding as at September 30, 2020 and December 31, 2019 pending assessment by the Office of State Revenue in Queensland, Australia.

Coronado Global Resources Inc. Form 10-Q September 30, 202014

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

11.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.

On March 31, 2020, the Company amended one of its mining services contracts for mining equipment assets used to provide mining services. On execution of the amendment, right of use assets of $25.9 million and lease liabilities of $27.0 million were derecognized. These mining equipment assets were previously deemed leased assets embedded within the mining service contract.

Information related to the Company’s right-of use assets and related lease liabilities are as follows:

	Three Months Ended				Nine Months Ended
(US$ thousands)	September 30, 2020		September 30, 2019		September 30, 2020		September 30, 2019
Operating lease costs	$	3,300	$	7,671	$	14,650	$	20,532
Cash paid for operating lease liabilities		2,233		6,968		12,607		18,041
Finance lease costs:
Amortization of right of use assets		619		627		1,618		1,848
Interest on lease liabilities		19		47		88		155
Total finance lease costs	$	638	$	674	$	1,706	$	2,003

(US$ thousands)	September 30, 2020		December 31,2019
Operating leases:
Operating lease right-of-use assets	$	21,511	$	62,566
Finance leases:
Property and equipment		4,402		7,881
Accumulated depreciation		(3,645)		(5,144)
Property and equipment, net		757		2,737
Current operating lease obligations		9,382		27,204
Operating lease liabilities, less current portion		22,120		48,165
Total operating lease liabilities		31,502		75,369
Current finance lease obligations		94		2,481
Total Lease liability	$	31,596	$	77,850

	September 30, 2020	December 31, 2019
Weighted Average Remaining Lease Term (Years)
Weighted average remaining lease term – finance leases	0.08	0.67
Weighted average remaining lease term – operating leases	3.47	2.89
Weighted Average Discount Rate
Weighted discount rate – finance lease	6.25%	6.25%
Weighted discount rate – operating lease	7.95%	8.00%

Coronado Global Resources Inc. Form 10-Q September 30, 202015

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

The Company’s operating leases have remaining lease terms of 1 year to 6 years, some of which include options to extend the terms deemed reasonable to exercise. Maturities of lease liabilities as at September 30, 2020, are as follows:

(US$ thousands)	Operating Lease		Finance Lease
Year ending December 31,
2020	$	3,286	$	94
2021		10,176		—
2022		9,061		—
2023		9,223		—
2024		2,925		—
Thereafter		1,650		—
Total lease payments		36,321		94
Less imputed interest		(4,819)		—
Total lease liability	$	31,502	$	94

12.Income Taxes

For the nine months ended September 30, 2020 and 2019, 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 effect 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 2020 effective tax rate is 16.0%. The Company had an income tax benefit of $31.5 million for the nine months ended September 30, 2020, comprising a discrete income tax benefit of $4.1 million and income tax benefit of $27.4 million based on a loss before tax of $196.5 million.

Income tax expense of $119.7 million for the nine months ended September 30, 2019 was calculated based on an effective tax rate of 29.7% for the period.

The Company utilizes the “more likely than not” standard in recognizing a tax benefit in its financial statements. For the nine months ended September 30, 2020 and the year ended December 31, 2019, the Company had $14.2 million of 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 United States and its various states, as well as Australia and its various localities. In the United States and Australia, the first tax return was lodged for the year ended December 31, 2018.

On March 27, 2020, the United States Congress enacted the Coronavirus Aid, Relief and Economic Security Act, or CARES Act, to provide certain relief as a result of the COVID-19 outbreak. The CARES Act (PL 116-136), allows for a five-year carryback for losses arising in tax years beginning in 2018, 2019 and 2020.

As there was U.S. taxable income in tax years 2018 and 2019, the Company will be able to carryback the 2020 losses in order to receive a refund of taxes assessed in these tax years of approximately $11.3 million.

13.Interest Bearing Liabilities

The Company’s SFA, comprises of Facility A ($350 million loan facility), Facility B (A$130 million bank guarantee facility) and Facility C ($200 million loan facility). The SFA has a termination date of February 15, 2023.

The SFA is a revolving credit facility under which the Company may borrow funds from Facility A and/or Facility C for a period of one, two, three or six months, each referred to as a Term. The interest rate is set at the commencement of each Term. At the end of each Term, the Company may elect to repay the loan or extend any loan amount outstanding for a further period of one, two, three or six months. The Term of the loan cannot extend beyond the termination date of the SFA.

Due to the global impacts of COVID-19 on the demand and pricing for metallurgical coal and the resulting uncertainties associated with the pandemic, on May 25, 2020, the Company entered into an agreement with its lenders in the SFA to waive compliance with certain financial covenants for the period from May 25, 2020 to February 28, 2021.

On August 12, 2020, the Company secured a further waiver extension, or the waiver, of its financial covenants to September 30, 2021, or the waiver period. The waiver was conditional upon the successful completion of a minimum equity raising, satisfied by the completion of the Placement and the institutional component of the Entitlement Offer on August 26, 2020.

Coronado Global Resources Inc. Form 10-Q September 30, 202016

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

As part of the waiver extension agreement, the Company’s credit facility will be permanently reduced in three steps by $25.0 million each, in February, May and August 2021. At the end of, or after the waiver period, a breach of financial covenants will constitute an event of default under the SFA and all amounts outstanding at that point may become due and payable. The terms of the SFA will revert to the originally agreed terms at the end of the waiver period.

The availability to fully draw down under the SFA is subject to a modified liquidity buffer of $50.0 million, leading to a review event process if amounts within this buffer are drawn down during the extended waiver period (i.e. before 30 September 2021). However, lender consent required to access the remaining $50.0 million was removed as part of the recent waiver extension.

During the three months ended September 30, 2020, the Company completed the Placement and the Entitlement Offer comprising the issue of CDIs on the ASX raising net proceeds of $171.6 million. Refer to Note 6 “Capital Structure”. The funds raised were used to repay a portion of drawn balances under the SFA.

As at September 30, 2020 the Company met its undertakings under the SFA (as modified and waived in accordance with the terms of the waiver). The Company is continuing to pursue a number of strategic initiatives to strengthen its liquidity. These steps are expected to ensure the continuing availability of the SFA beyond September 30, 2021.

During the nine months ended September 30, 2020, the Company borrowed a total amount of $165.0 million under the SFA for working capital and corporate purposes. Repayments of $207.4 million were made during the nine months ended September 30, 2020.

The total interest bearing liabilities outstanding under the SFA was $287.6 million and $ 330.0 million as at September 30, 2020 and December 31, 2019, respectively.

14.Contract Obligations

The following is a summary of the contract obligations as of September 30, 2020:
(US$ thousands)	Current		Non-current		Total
Coal leases contract liability	$	843	$	20,859	$	21,702
Stanwell below market coal supply agreement		37,244		160,752		197,996
	$	38,087	$	181,611	$	219,698
The following is a summary of the contract obligations as of December 31, 2019:
(US$ thousands)	Current		Non-current		Total
Coal leases contract liability		843		21,312		22,155
Stanwell below market coal supply agreement		36,092		183,565		219,657
	$	36,935	$	204,877	$	241,812

15.Deferred Consideration Liability

On August 14, 2018 the Company completed the purchase of the Stanwell Reserved Area, or the SRA, adjacent to the current Curragh mining tenements. This area was acquired on a deferred consideration basis and on acquisition the Company recognized a “Right-to-mine-asset” and a corresponding deferred consideration liability of $155.2 million, calculated using a pre-tax discount rate of 13% representing fair value of the arrangements at the date of acquisition. The deferred consideration liability will reflect passage of time changes by way of an annual accretion at the pre-tax discount rate of 13% while the liability will decrease as domestic coal is supplied to Stanwell from the SRA. The accretion of deferred consideration is recognized in “Interest expense, net” in the unaudited Condensed Consolidated Statements of Operations and Comprehensive Income.

(US$ thousands)	September 30, 2020		December 31,2019
Stanwell Reserved Area deferred consideration	$	193,753	$	174,605
	$	193,753	$	174,605

Coronado Global Resources Inc. Form 10-Q September 30, 202017

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

16. 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				Nine Months Ended
(US$ thousands, except per share data)	September 30, 2020		September 30, 2019		September 30, 2020		September 30, 2019
Numerator:
Net (loss) income	$	(41,794)	$	69,099	$	(164,989)	$	283,425
Less: Net loss attributable to Non-controlling interest		(2)		(2)		(6)		(6)
Net (loss) income attributable to Company stockholders	$	(41,792)	$	69,101	$	(164,983)	$	283,431
Denominator (in thousands):
Weighted-average shares of common stock outstanding		112,582		96,652		102,001		96,652
Effects of dilutive shares		—		2		-		2
Weighted average diluted shares of common stock outstanding		112,582		96,654		102,001		96,654
Earnings Per Share (US$):
Basic		(0.37)		0.71		(1.62)		2.93
Dilutive		(0.37)		0.71		(1.62)		2.93

17.Derivatives and Fair Value Measurement

(a) Derivatives

The Company may use derivative financial instruments to manage its financial risks in the normal course of operations, including foreign currency risks, commodity price risk related to purchase of raw materials (such as gas or diesel) and interest rate risk. Derivatives for speculative purposes are strictly prohibited under the Treasury Risk Management Policy approved by the Board of Directors.

The financing counterparties to the derivative contracts potentially expose the Company to credit-related risk. Credit risk is the risk that a third party might fail to fulfill its performance obligations under the terms of the financial instrument. The Company mitigates credit risk by entering into derivative contracts with high credit quality counterparties, limiting the amount of exposure to each counterparty and frequently monitoring their financial condition.

Forward fuel contracts

In 2019, the Company entered into forward derivative contracts to hedge its exposure to diesel fuel that is used, or expects to be used, at its operations in Australia, or Australian Operations, during 2020. During the nine months period ended September 30, 2020, the Company entered into additional derivative contracts in relation to diesel fuel that it expects to consume at its Australian Operations during 2021. The aggregate notional value for all outstanding forward diesel fuel derivative contracts designated as cash flow hedges were $66.4 million at September 30, 2020.

Unrealized losses, net of tax, recognized in “Accumulated other comprehensive loss” as at September 30, 2020, are expected to be recognized into “Cost of coal revenues” in the Unaudited Condensed Statements of Operations and Comprehensive Income, $15.0 million within the next 12 months and $2.4 million within 3 months thereafter, when the hedged transaction impacts income. Refer to Note 18 “Other comprehensive loss” for further disclosure.

Forward foreign currency contracts

The Australian Operations utilize the cash it generates from its US$ denominated coal sales revenue to fund its operating costs, which are predominantly in A$. The Company enters into forward foreign currency contracts to hedge its foreign exchange exposure on a portion of the US$ denominated coal sales revenue at Curragh, whose functional currency is A$.

The aggregated notional amount of the outstanding forward foreign currency derivative contracts designated as cash flow hedges were $24.6 million as at September 30, 2020. The unrealized gain of $1.0 million, net of tax, recognized in “Accumulated other comprehensive loss” at September 30, 2020, is expected to be recognized into “Coal revenues” in the

Coronado Global Resources Inc. Form 10-Q September 30, 202018

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Unaudited Condensed Statements of Operations and Comprehensive Income within the next 3 months, when the hedged transaction impacts income. Refer to Note 18 “Other comprehensive loss” for further disclosure.

During the nine months period ended September 30, 2020, the Company entered into additional forward foreign currency derivative contracts to manage its exposure to US$ at the Australian Operations. The aggregate notional amount for the outstanding forward foreign currency derivative contracts was $26.5 million at September 30, 2020. The Unrealized gain of $1.6 million, net of tax, as at September 30, 2020, will be recognized in “Other, net” in the Unaudited Condensed Statements of Operations and Comprehensive Income within the next 3 months.

The fair value of foreign currency and diesel fuel derivatives reflected in the accompanying unaudited Condensed Consolidated Balance Sheet are set forth in the table below:

		September 30, 2020		December 31, 2019
(US$ thousands)	Classification	Derivative asset	Derivative liability	Derivative asset	Derivative liability
Forward fuel contracts	Other current assets	—	—	3,180	—
	Other current financial liabilities	—	14,955	—	—
	Other non-current financial liabilities	—	2,363	—	—
Forward foreign currency contracts	Other current assets	2,611	—	953	—
		2,611	17,318	4,133	—

The following table presents our details of foreign currency and diesel fuel outstanding contracts:

	September 30, 2020			December 31, 2019
	Notional amount (thousands)	Unit of measure	Varying maturity dates	Notional amount (thousands)	Unit of measure	Varying maturity dates
Forward fuel contracts	165,999	Liters	October 2020 - December 2021	121,957	Liters	January 2020 – December 2020
Forward foreign currency contracts	51,166	US$	October 2020 - December 2020	24,300	US$	January 2020 – March 2020

(b) Fair Value of Financial Instruments

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.

Coronado Global Resources Inc. Form 10-Q September 30, 202019

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Financial Instruments Measured on a Recurring Basis

As of September 30, 2020, the Company has the following liabilities that are required to be measured at fair value on a recurring basis:

 Forward fuel contracts: valued based on a valuation that is corroborated by the use of market-based pricing (Level 2)

 Foreign currency forward contracts: valued based on a valuation that is corroborated by the use of market-based pricing (Level 2)

 Contingent royalty: fair value is determined using the projected cash flow modelling technique (Level 3)

The following tables set forth the hierarchy of the Company’s net financial liabilities positions for which fair value is measured on a recurring basis as of September 30, 2020:
	Assets/(Liabilities)
(US$ thousands)	Level 1		Level 2		Level 3		Total
Forward commodity contracts	$	—	$	(17,318)	$	—	$	(17,318)
Forward foreign currency contracts		—		2,611		—		2,611
	$	—	$	(14,707)	$	—	$	(14,707)
The Company’s net financial liability positions for which fair value is measured on a recurring basis as of December 31, 2019 was as follows:
	Assets/(Liabilities)
(US$ thousands)	Level 1		Level 2		Level 3		Total
Forward commodity contracts	$	—	$	3,180	$	—	$	3,180
Forward foreign currency contracts		—		953		—		953
Contingent royalty		—		—		(1,543)		(1,543)
	$	—	$	4,133	$	(1,543)	$	2,590

Contingent Royalty Consideration
Key assumptions in the valuation include the gross sales price forecast, export volume forecast, volatility, the risk-free rate, and credit-spread of the Company.
	Quantitative Information about Level 3 Fair Value Measurements
(US$ thousands)	Fair value at September 30, 2020		Valuation technique	Unobservable input	Range (Weighted Avg.)
Contingent Royalty Liability	$	—	Projected cash flows	Gross sales price forecast per ton	$75.3 to $91.1 ($84.5)
				Export volume forecast (000’s)	2,121 tons over 6 months
Given the remaining period of the Contingent Royalty obligation is short-term (six months to March 31, 2021), the valuation technique has been changed from Black-Scholes Option model to projected cash flows.
As a result of the decline in market coal price and the increase of the agreed floor price as the agreement reaches maturity, the Company's projected cash flows resulted in no Contingent royalty liability as at September 30, 2020.

Value Share Mechanism

As part of the acquisition of Curragh on March 29, 2018, the Company agreed to pay a 25% royalty to the seller on sales from metallurgical coal mined at Curragh over a two-year period in the form of a Value Share Mechanism, or VSM. The VSM expired at the end of March 2020. There were no VSM payments during the nine months period ended September 30, 2020.

Coronado Global Resources Inc. Form 10-Q September 30, 202020

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Other Financial Instruments

The following methods and assumptions are used to estimate the fair value of other financial instruments as of September 30, 2020 and December 31, 2019:

 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.

 Deposits and reclamation bonds, lease liabilities, interest bearing liabilities and other financial liabilities: The fair values approximate the carrying values reported in the unaudited Condensed Consolidated Balance Sheets.

18. Accumulated Other Comprehensive Losses

Accumulated other comprehensive losses consisted of the following at September 30, 2020:

		Net unrealized gain (loss)
(US$ thousands)	Foreign currency translation adjustments	Cash flow fuel hedges	Cash flow foreign currency hedges	Total
Balance at December 31, 2019	(48,265)	2,378	681	(45,206)
Net current-period other comprehensive income (loss):
Gain (loss) in other comprehensive income (loss) before reclassifications	461	(33,157)	(2,284)	(34,980)
Loss reclassified from accumulated other comprehensive income (loss)	—	15,441	2,241	17,682
Tax effects	—	6,149	(9)	6,140
Total net current-period other comprehensive gain (loss)	461	(11,567)	(52)	(11,158)
Balance at September 30, 2020	(47,804)	(9,189)	629	(56,364)

19.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 are as follows:

(US$ thousands)	Amount
Year ending December 31,
2020	2,301
2021	5,402
2022	5,235
2023	5,159
2024	5,031
Thereafter	25,775
Total	48,903
Mineral leases are not in scope of ASC 842 and continue to be accounted for under the guidance in ASC 932, Extractive Activities – Mining.

(b) Other commitments

As of September 30, 2020, purchase commitments for capital expenditures were $24.7 million, all of which is obligated within the next 12 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 11 years. In the U.S., the Company typically negotiates its rail and coal terminal access on an annual basis. As of September 30, 2020, these Australian

Coronado Global Resources Inc. Form 10-Q September 30, 202021

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

and U.S. commitments under take-or-pay arrangements totaled $1.5 billion, of which approximately $111.6 million is obligated within the next year.

20. Related‑Party Transactions

Xcoal

During the three and nine months ended September 30, 2020, the Company sold coal to Xcoal Energy and Resources, or Xcoal, an entity associated with Non-Executive director, Mr. Ernie Thrasher. Revenues from Xcoal of $17.1 million and $103.6 million, respectively, are recorded as “Coal revenues from related parties” in the unaudited Condensed Consolidated Statement of Operations and Comprehensive Income for the three months ended September 30, 2020 and 2019. Revenues from Xcoal of $106.2 million and $396.8 million, respectively, are recorded as coal revenues in the unaudited Condensed Consolidated Statement of Operations and Comprehensive Income for the nine months ended September 30, 2020 and 2019. During the three and nine months ended September 30, 2020, the Company purchased coal from Xcoal totalling $2.4 million and $10.3 million, respectively, and the corresponding payable was offset against trade receivables from Xcoal. The cost of purchasing coal from Xcoal is recorded within “Cost of coal revenues” in the Unaudited Condensed Consolidated Statement of Operations and Comprehensive Income.

At September 30, 2020, amounts due from Xcoal in respect of coal sales were $92.0 million. At December 31, 2019, amounts due from Xcoal in respect of coal sales were $86.8 million. At September 30, 2020, the Company expects to receive all outstanding related party trade receivables amounts within twelve months and as such any ECL is regarded as insignificant. Subsequent to September 30, 2020, the Company has collected $6.8 million in respect of its related party trade receivables reducing the outstanding balance to $85.2 million as at October 31, 2020. The Company has not recognised any bad debt expense from Xcoal in the three and nine months ended September 30, 2020 and 2019.

21.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.

Facility B of the SFA provides A$130 million for issuing multicurrency bank guarantees. At September 30, 2020, Facility B of the SFA had been utilized to issue A$93.3 million of bank guarantees on behalf of the Company.

For the U.S. Operations in order to provide the required financial assurance, the Company generally uses surety bonds for post-mining reclamation and workers’ compensation obligations. The Company can also use bank letters of credit to collateralize certain obligations. As of September 30, 2020, the Company had outstanding surety bonds of $32.3 million, to secure various obligations and commitments.

Coronado Curragh Pty Ltd, or Curragh, is a co-appellant to proceedings in the Queensland Supreme Court brought by Aurizon. Aurizon’s claim relates to costs relating to Curragh’s and other defendants’ liability to make “WIRP Fee” payments under the Wiggins Island Rail Project Deed, or WIRP Deed. The trial for this matter concluded in September 2018 and judgement was delivered by the Supreme Court in July 2019. Ultimately, Aurizon was successful in that trial and a determination was made that a WIRP Fee is payable by the defendants under the WIRP Deed. The defendants appealed the decision to the Queensland Court of Appeal and the appeal hearing was held in March 2020. On September 1, 2020, judgement was delivered by the Queensland Court of Appeal with a determination that the WIRP Fee is payable by Curragh (and the other co-defendants) and that the defendants are obliged to pay Aurizon’s costs of the trial and the appeal litigation. Curragh and the co-defendants have not applied for special leave to appeal the decision to the High Court of Australia which means the proceedings are now at an end. However, there remain unresolved issues between the parties about when the WIRP Fee became payable and the adjustments applicable to the calculation of the quantum of the Base WIRP Fee which may give rise to further disputes between the parties, unless agreement can be reached. Final resolution of this dispute and the above unresolved matters will also result in the Curragh’s below rail access to the Wiggins Island Coal Export Terminal (of 1.5 MMtpa) becoming a firm contractual capacity entitlement (and the subject of the take-or-pay access agreement). The Company’s unaudited Condensed Consolidated Balance Sheet includes an estimated loss contingency associated with these proceedings of approximately $5.9 million as at September 30, 2020, which is unadjusted (pending final determination or resolution) for the relevant adjustments applicable under the WIRP Deed. This estimated loss contingency includes an estimated amount in respect of Curragh’s share of the Aurizon’s legal costs relating to the proceedings, which are yet to be determined or agreed.

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

Coronado Global Resources Inc. Form 10-Q September 30, 202022

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

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.

The liabilities recorded in relation to the above litigation do not include estimated future costs associated with legal representation, which, in accordance with the Company’s policy, are expensed as incurred. 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.

Coronado Global Resources Inc. Form 10-Q September 30, 202023

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 Company) as of September 30, 2020, the related condensed consolidated statements of operation and comprehensive income, stockholders’ equity and cash flows for the three-month and nine-month periods ended September 30, 2020 and the related notes (collectively referred to as the “condensed consolidated interim financial statements”). Based on our review, 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.

The condensed consolidated financial information of the Company for the three-month and nine-month periods ended September 30, 2019, were reviewed by other auditors whose report dated November 7, 2019 stated that based on their review they were not aware of any material modifications that should be made to those statements for them to be in conformity with U.S. generally accepted accounting principles. The consolidated balance sheet of the Company as of December 31, 2019, 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) were audited by other auditors whose report dated February 24, 2020 expressed an unqualified opinion on those statements.

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 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

November 10, 2020.

Coronado Global Resources Inc. Form 10-Q September 30, 202024

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, 2019 included in Coronado Global Resources Inc.’s Annual Report on Form 10-K for the year ended December 31, 2019, filed with the U.S. Securities and Exchange Commission, or SEC, and the Australian Securities Exchange, or the ASX, on February 24, 2020.

Unless otherwise noted, references in this Quarterly Report on Form 10-Q to “we,” “us,” “our,” “Company,” or “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 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$, except where otherwise stated. References to “A$” 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-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, or the Securities Act, 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 effect of COVID-19 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,” “could,” “believes,” “estimates,” “expects,” “likely,” “intends,” “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 or an investment in our securities include, but are not limited to:

 uncertainty and weaknesses in global economic conditions, including the extent, duration and impact on prices caused by reduced demand. The COVID-19 pandemic led to reduced market demand and risks related to government actions with respect to trade agreements, treaties or policies;

 severe financial hardship, bankruptcy, temporary or permanent shut downs or operational challenges, due to the ongoing COVID-19 pandemic or otherwise, 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;

 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;

 risks inherent to mining;

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

Coronado Global Resources Inc. Form 10-Q September 30, 202025

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

 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 perceived impacts on global climate issues, which could result in increased regulation of coal combustion in many jurisdictions and divestment efforts affecting the investment community;

 the extensive forms of taxation that our mining operations are subject to, and future tax regulations and developments;

 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;

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

 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 in this report, including, but not limited to, those discussed in “Risk Factors,” set forth in Part II, Item 1A of this Quarterly Report on Form 10-Q.

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, 2019, filed with the SEC and ASX on February 24, 2020 and Part II, Item 1A. “Risk Factors” of our Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2020, filed with the SEC and ASX on May 8, 2020, 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.

Coronado Global Resources Inc. Form 10-Q September 30, 202026

We caution you that the risks and uncertainties identified by us may not be all of the factors that are important to you. 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 Virginia, 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 and Logan), one 100%-owned temporarily idled mine complex (Greenbrier), two development properties (Pangburn-Shaner-Fallowfield and Russell County) and one idle property (Amonate). In addition to Met coal, our Australian Operations sell thermal coal domestically, which is used to generate electricity, to Stanwell Corporation Limited, or Stanwell. Our U.S. Operations primarily focuses 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 the nine months ended September 30, 2020, we produced 12.6 MMt and sold 13.2 MMt of coal. Met coal and thermal coal sales represented approximately 79.5% and 20.5%, respectively, of our total volume of coal sold and approximately 92.0% and 8.0% respectively, of total coal revenues, for the nine months ended September 30, 2020.

Our results for the nine months ended September 30, 2020, were adversely impacted by (1) a fatal injury to an employee of one of our contractors at our Australian Operations which resulted in temporary suspension of mining activities during January and February that resulted in lower production and lower sales volumes, (2) wet weather conditions in Australia which disrupted certain mining and logistics activities, (3) a delay in resolution of the United States and China trade dispute, which limited export sales to China, (4) the impact of COVID-19 on global Met coal demand resulting in the temporary idling of the U.S. Operations in April and May 2020 and implementation of preventative measures at all our operations to protect our employees from the pandemic. These impacted operating efficiencies and resulted in lower production and lower realized prices. The Buchanan and Logan mines resumed operations on June 1, 2020, while the Greenbrier mine remains temporarily idled until market conditions improve. Despite these adverse conditions, our results benefited from lower gross cost and capital expenditure across our business.

From our Australian Operations, production and sales volumes were lower for the nine months ended September 30, 2020 compared to the same period in 2019. Coal sales volumes decreased 0.3 MMt, or 3.1%. Lower sales volumes combined with lower average realized prices per Mt resulted in a reduction in coal revenues by 35.5% compared to the prior comparative period. Operating costs for the nine months ended September 30, 2020 were $40.3 million, or 5.2% lower compared to the corresponding period in 2019, resulting in a favorable reduction in Operating costs per Mt sold of $1.7 per ton. Year to date results benefited from strong performance for the three months ended September 30, 2020, for which the Curragh mine realized record saleable production and sales volume tonnages from an improvement in performance and mobilization of additional fleets to recover lost production and overburden from the first half of 2020.

From our U.S. Operations, production and sales volumes were lower for the nine months ended September 30, 2020 compared to the same period in 2019 primarily due to the impacts of COVID-19 and subsequent idling of operations in April and May. Coal sales volumes decreased 1.8 MMt, or 30.6%. Coal revenues decreased by 45.1% compared to the prior comparative period due to lower sales volumes and lower average realized prices per Mt sold. To mitigate the revenue decline, Operating costs for the nine months ended September 30, 2020 were $122.0 million, or 29.7% favorable compared to the corresponding period in 2019. These effective cost controls realized a reduction in Mining cost and Operating costs per Mt sold compared to the prior corresponding period.

During the nine months period ended September 30, 2020, we recognized an impairment charge of $63.1 million related to the Greenbrier mine.

COVID-19

The COVID-19 global pandemic has continued to result in a challenging working environment which has significantly impacted the demand and price for Met coal. Authorities in many countries around the world have implemented numerous and varying measures to reduce the spread and limit the impact of COVID-19, including travel bans and restrictions, quarantines, curfews, stay-at-home orders, business shutdowns and closures. Many countries have implemented multi-stage policies with the goal of re-opening markets and boosting economic activity. These measures have impacted and will continue to impact our mining operations, our customers, employees, suppliers and other third parties with whom we do business. There is considerable uncertainty regarding how current and future health and safety measures implemented in response to the pandemic will impact our business, including whether they will result in further changes in demand for Met coal, increases in operating costs or impacts to our supply chain, and whether measures will result in port closures or border restrictions, each or all of which can impact our ability to produce and sell our coal.

Coronado Global Resources Inc. Form 10-Q September 30, 202027

The safety and wellbeing of our workforce remains our highest priority and we continue to manage the potential threat of COVID-19 at our mines and offices. The Company formed a COVID-19 taskforce spanning its Australian and U.S. operations and proactively enacted stringent preventative measures to ensure the safety and well-being of employees and contractors during the pandemic. These procedures include increased screenings of employees as they arrive at the workplace, strict adherence to hygiene and social distancing guidelines while at work and also a cleaning and sanitization program for equipment and facilities.

Our U.S. Operations were idled in April and May 2020 due to the COVID-19 induced economic downturn and decline in demand from customers in Europe, South America and North America. While the mines were idled, the Company continued to make shipments to its customers from existing inventories which allowed the Company to meet all customer commitments. On June 1, 2020, the Company resumed operations at the Buchanan and Logan mines. Production at these mines has progressively increased in line with demand and it is expected that operations will return to 2019 levels before the end of the year. The Greenbrier mine remains idle and the Company will continue to monitor market developments to evaluate the duration for which the mine will remain idle. To date, there have been a small number of the Company’s workforce who have tested positive for COVID-19 in our U.S. Operations. The Company has taken all necessary steps to isolate the affected workers and protect the remaining workforce. There has been no material adverse impact to production.

The global economic slowdown resulting from the effects of COVID-19 has sharply reduced the demand for steel in all markets except for China, where steel production remained elevated during the second and third quarter of 2020. Steel demand in China has been supported by large infrastructure investment, with signs of improvement in discretionary steel demand (e.g. automotive) and property. Globally, steel producers in the third quarter restarted blast furnace operations as demand for steel was underpinned by the automotive and constructions sectors. Blast furnace restarts accelerated in September with numerous steel mills returning to operation in Japan, South Korea, Europe and Brazil. Demand for steel in India has risen to near pre-lockdown levels. Overall, the supply and demand constraints in respect of the global impacts of COVID-19 on our Australian Operations has been limited due to the unique position of the Curragh mine as a strategic supplier of ‘base load’ Met coal for coke blends.

In response to the global impacts of COVID-19 on the demand for steel and the resulting impact on the price and demand for Met coal, the Company has taken steps to safeguard its operations, strengthen its balance sheet and increase liquidity by undertaking a capital raising by issuing additional equity on the ASX, reducing capital expenditures and managing operating costs in a disciplined manner.

Due to the impact of COVID-19, we expect our results of operations for fiscal year 2020 to be significantly below our historical performance.

Syndicated Facility Agreement covenant waivers

On May 25, 2020 the Company concluded an agreement with lenders under the SFA to waive compliance with certain financial covenants for the period from May 25, 2020 to February 28, 2021. On August 12, 2020, the Company executed a Second Syndicated Facility Agreement Waiver Letter, or Second Waiver Letter, which extends the waiver of its financial covenants to September 30, 2021. The extension was conditional upon the successful completion of a minimum equity raising, satisfied by the completion of the Placement and the institutional component of the Entitlement Offer on August 26, 2020. As part of the waiver extension agreement, the Company’s credit facility will be permanently reduced in three steps by $25.0 million each, in February, May and August 2021.

The waiver provides additional flexibility to work through this period of significant uncertainty, lower demand and pricing for Met coal that has been brought about by the global COVID-19 pandemic. During the waiver period the Company will have additional reporting undertakings and additional restrictions on certain terms and conditions, including in relation to divestments, dividends and new indebtedness. During the waiver period we are required to provide additional financial information to the lenders each month and have agreed to limit financial indebtedness and asset sales that are not pre-approved by lenders. See “Liquidity and Capital Resources-Liquidity-Secured Credit Facilities” below for more details.

Equity Raise on the ASX

During the quarter ended September 30, 2020, the Company undertook the Placement and the Entitlement Offer issuing CDIs on the ASX which raised net proceeds of $171.6 million. Refer to Note 6 “Capital Structure” to the unaudited condensed consolidated financial statements included in Part I, Item 1. The funds raised were used to repay a portion of drawn balances under the SFA during the three months ended September 30, 2020.

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.

Coronado Global Resources Inc. Form 10-Q September 30, 202028

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 include: (i) safety and environmental metrics; (ii) total sales volumes and average realized price per Mt sold, which we define as total coal revenues divided by total sales volume; (iii) Met sales volumes and average realized Met price per Mt sold, which we define as Met coal revenues divided by Met sales volume; (iv) average segment mining costs per Mt sold, which we define as mining costs divided by sales volumes for the respective segment; and (v) 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 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.

Non-GAAP Financial Measures; Other Measures

The following discussion of our results includes references to and analysis of Adjusted EBITDA and mining costs, which are financial measures not recognized in accordance with U.S. Generally Accepted Accounting Principles, or U.S. GAAP. Non-GAAP financial measures, including Adjusted EBITDA, 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 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 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 September 30, 2020 Compared to Three Months Ended September 30, 2019

Summary

The financial and operational highlights for the three months ended September 30, 2020:

 Record quarterly saleable production of 3.6 MMt and sales volume of 3.6 MMt from the Australian Operations (Curragh Mine) in the three months ended September 30, 2020.

 Sales volume for the group totaled 4.9 MMt for the three months ended September 30, 2020, which was in line with the three months ended September 30, 2019 but represented a 1.1 MMt or 27% increase compared to the preceding three months ended June 30, 2020.

Coronado Global Resources Inc. Form 10-Q September 30, 202029

 Net income decreased by $110.9 million for the three months ended September 30, 2020, when compared to $69.1 million for the three months ended September 30, 2019, generating a net loss of $41.8 million for the current quarter. The decrease was primarily due to lower coal sales revenues due to lower market pricing, partially offset by lower operating costs and an income tax benefit.

 Lower coal market prices during the three months ended September 30, 2020 resulted in average realized Met coal pricing of $86.0 per Mt sold, 31.7% lower compared to the three months ended September 30, 2019.

 Adjusted EBITDA for the three months ended September 30, 2020, of $9.6 million, a decrease of $140.2 million, from Adjusted EBITDA of $149.7 million for the three months ended September 30, 2019.

 As at September 30, 2020 the company had $287.6 million of external borrowings outstanding and cash on hand of $14.4 million (excluding restricted cash).

	For Three months ended September 30,
	($ in thousands)
	2020	2019	Change	%
Revenues:
Coal revenues	366,737	525,774	(159,037)	(30.2%)
Other revenues	9,648	10,067	(419)	(4.2%)
Total revenues	376,385	535,841	(159,456)	(29.8%)
Costs and expenses:
Cost of coal revenues (exclusive of items shown separately below)	263,858	264,585	(727)	(0.3%)
Depreciation, depletion and amortization	48,693	39,855	8,838	22.2%
Freight expenses	50,590	36,973	13,617	36.8%
Stanwell rebate	25,157	40,172	(15,015)	(37.4%)
Other royalties	21,697	35,815	(14,118)	(39.4%)
Selling, general, and administrative expenses	6,785	8,233	(1,448)	(17.6%)
Total costs and expenses	416,780	425,633	(8,853)	(2.1%)
Operating (loss) income	(40,395)	110,208	(150,603)	(136.7%)
Other income (expenses):
Interest expense, net	(12,207)	(9,319)	(2,888)	31.0%
Other, net	(361)	(1,172)	811	(69.2%)
Total other income (expense), net	(12,568)	(10,491)	(2,077)	19.8%
Net (loss) income before tax	(52,963)	99,717	(152,680)	(153.1%)
Income tax benefit (expense)	11,169	(30,618)	41,787	(136.5%)
Net (loss) income	(41,794)	69,099	(110,893)	(160.5%)
Less: Net loss attributable to noncontrolling interest	(2)	(2)	—	—
Net (loss) income attributable to Coronado Global Resources, Inc.	(41,792)	69,101	(110,893)	(160.5%)

Coal Revenues

Coal revenues were $366.7 million for the three months ended September 30, 2020, a decrease of $159.0 million, compared to $525.8 million for the three months ended September 30, 2019. This decrease was driven by a lower average realized Met coal price for the three months to September 30, 2020, of $86.0 per Mt sold, a reduction of $39.9 per Mt sold compared to $125.9 per Mt sold for the same period in 2019, due to softer coal market conditions and lower index prices.

Sales volume of 4.9 MMt for the three months ended September 30, 2020, was in line with the three months ended September 30, 2019. Our Australian Operations realized record sales volume, on the back of record production, for the three months ended September 30, 2020, an increase of 0.5 MMt compared to same period in 2019, while sales volume at our U.S. Operations decreased by 0.5 MMt as a result softer market conditions related to COVID-19 and import restrictions into China.

Cost of Coal Revenues (Exclusive of Items Shown Separately Below)

Cost of coal revenues comprise of 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 $263.9 million for the three months ended September 30, 2020, a decrease of $0.1 million, or 0.3%, as

Coronado Global Resources Inc. Form 10-Q September 30, 202030

compared to $264.6 million for the three months ended September 30, 2019. The cost of coal revenues for our U.S. Operations decreased $32.8 million due to reduced operating capacity in response to the COVID-19 pandemic. This decrease was offset by an increase in cost of coal revenues of $32.1 million for our Australian Operations driven by additional fleets mobilized to partly recover lost production from the first half of 2020.

Depreciation, Depletion and Amortization

Depreciation, depletion and amortization was $48.7 million for the three months ended September 30, 2020, an increase of $8.8 million, as compared to $39.9 million for the three months ended September 30, 2019. The increase was largely driven by additional equipment brought into service during the twelve months since September 30, 2019.

Freight Expenses

Freight expenses primarily relate to the Australian operations and relate to costs associated with take-or-pay commitments for rail and port providers and demurrage costs. Freight expenses totaled $50.6 million for the three months ended September 30, 2020, an increase of $13.6 million, as compared to $37.0 million for the three months ended September 30, 2019. Curragh’s freight costs contributed $12.3 million to this increase driven by higher sales volumes which resulted in higher rail and port charges. The remaining increase related to our U.S. Operations where coal sales under certain contracts required delivery to port were higher in the three months ended September 30, 2020, compared to the same period in 2019.

Stanwell Rebate

The Stanwell rebate was $25.2 million for the three months ended September 30, 2020, a decrease of $15.0 million, as compared to $40.2 million for the three months ended September 30, 2019. The decrease was largely driven by lower realized coal pricing during 2020 partially offset by unfavorable average foreign exchange rate on translation of A$/US$: 0.72 for the three months ended September 30, 2020 compared 0.68 to the same period in 2019.

Other Royalties

Other royalties were $21.7 million in the three months ended September 30, 2020, a decrease of $14.1 million, as compared to $35.8 million in the three months ended September 30, 2019. Lower royalties were a product of lower coal sales revenues for the three months ended September 30, 2020, compared to the same period in 2019.

Selling, General, and Administrative Expenses

Selling, general and administrative costs were $6.8 million for the three months ended September 30, 2020, a decrease of $1.4 million, as compared to $8.2 million for the three months to September 30, 2019. The decrease is primarily driven by improved efficiencies and cost saving initiatives to reduce corporate spend in 2020 compared to the 2019 comparative period.

Interest Expense, net

Interest expense, net of $12.2 million for the three months ended September 30, 2020, increased $2.9 million, as compared to $9.3 million for the three months ended September 30, 2019. The increase in interest expense was due to higher average interest-bearing liabilities for the three months to September 30, 2020, compared to the same period in 2019.

Income tax benefit (expense)

Income tax benefit of $11.2 million for the three months ended September 30, 2020, increased by $41.8 million, as compared to a tax expense of $30.6 million for the three months ended September 30, 2019. An income tax benefit is realized at September 30, 2020 on account of the company incurring a net loss for the period.

Coronado Global Resources Inc. Form 10-Q September 30, 202031

Nine Months Ended September 30, 2020 Compared to Nine Months Ended September 30, 2019

Summary

The financial and operational highlights for the nine months ended September 30, 2020:

 Sales volume totaled 13.2 MMt for the nine months ended September 30, 2020, or 2.1 MMt lower than the nine months ended September 30, 2019. Sales volumes were impacted by the idling of the U.S Operations for two months in response to the demand contractions brought on by COVID-19 and the fatality in January 2020 at our Australian Operations impacting production mainly in the first quarter, and other wet weather and sequencing issues at the Curragh mine in the first half of 2020.

 Net income decreased by $448.4 million, from $283.4 million for the nine months ended September 30, 2019, to a net loss of $165.0 million for the nine months ended September 30, 2020. The decrease was primarily due to lower coal sales revenues and the impact of the non-cash impairment charge at Greenbrier, partially offset by lower operating costs and an income tax benefit.

 Lower coal market prices during the nine months ended September 30, 2020, resulted in average realized Met coal pricing of $93.1 per Mt sold, 30.4% lower compared to the nine months ended September 30, 2019.

 Adjusted EBITDA for the nine months ended September 30, 2020, totaled $44.5 million, a decrease of $510.6 million, from Adjusted EBITDA of $555.1 million for the nine months ended September 30, 2019.

 Cash used in operating activities was $38.1 million for the nine months ended September 30, 2020, a decrease of $476.7 million compared to cash generated of $438.6 million for the nine months ended September 30, 2019.

 During the nine months ended September 30, 2020, the Company declared and paid dividends of $24.2 million in the first quarter of 2020, prior to COVID-19 pandemic, which was funded by available cash and external borrowings. As at September 30, 2020 the company had $287.6 million of external borrowings outstanding.

 As of September 30, 2020, the Company’s cash on hand was $14.4 million (excluding restricted cash).

	For Nine months ended September 30,
	($ in thousands)
	2020	2019	Change	%
Revenues:
Coal revenues	1,061,554	1,738,261	(676,707)	(38.9%)
Other revenues	28,497	31,915	(3,418)	(10.7%)
Total revenues	1,090,051	1,770,176	(680,125)	(38.4%)
Costs and expenses:
Cost of coal revenues (exclusive of items shown separately below)	745,203	798,281	(53,078)	(6.6%)
Depreciation, depletion and amortization	135,542	125,134	10,408	8.3%
Freight expenses	133,475	126,335	7,140	5.7%
Stanwell rebate	82,571	134,846	(52,275)	(38.8%)
Other royalties	65,151	129,237	(64,086)	(49.6%)
Selling, general, and administrative expenses	20,138	26,544	(6,406)	(24.1%)
Total costs and expenses	1,182,080	1,340,377	(158,297)	(11.8%)
Operating (loss) income	(92,029)	429,799	(521,828)	(121.4%)
Other income (expenses):
Interest expense, net	(36,528)	(26,583)	(9,945)	37.4%
Impairment of assets	(63,111)	—	(63,111)	100.0%
Other, net	(4,846)	(130)	(4,716)	3,627.7%
Total other income (expense), net	(104,485)	(26,713)	(77,772)	291.1%
Net (loss) income before tax	(196,514)	403,086	(599,600)	(148.8%)
Income tax benefit (expense)	31,525	(119,661)	151,186	(126.3%)
Net (loss) income	(164,989)	283,425	(448,414)	(158.2%)
Less: Net loss attributable to noncontrolling interest	(6)	(6)	—	-
Net (loss) income attributable to Coronado Global Resources, Inc.	(164,983)	283,431	(448,414)	(158.2%)

Coronado Global Resources Inc. Form 10-Q September 30, 202032

Coal Revenues

Coal revenues were $1,061.6 million for the nine months ended September 30, 2020, a decrease of $676.7 million, compared to $1,738.3 million for the nine months ended September 30, 2019. This decrease was driven by lower coal sales volumes and a lower average realized Met coal price. Coal sales volumes were down 2.1 MMt, due to lower production stemming from the temporary suspension of mining activities at the Curragh mine following the safety incident in January 2020, the impact of the COVID-19 pandemic to market demand which resulted in the temporary idling of the U.S. Operations in April and May of 2020, and the impact of import restrictions into China, related to U.S. Met exports. Lower sales volumes were exacerbated by lower average realized Met coal pricing of $93.1 per Mt sold, a reduction of $40.7 per Mt sold, compared to $133.8 per Mt sold for the nine months ended September 30, 2019, due to softer market conditions and falling index prices.

Cost of Coal Revenues (Exclusive of Items Shown Separately Below)

Cost of coal revenues is comprised of 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 $745.2 million for the nine months ended September 30, 2020, a decrease of $53.1 million, or 6.6%, as compared to $798.3 million for the nine months ended September 30, 2019. Cost of coal revenues for our U.S. Operations decreased $114.6 million due to idling of the U.S. Operations in April and May 2020 in response to the COVID-19 pandemic, reduced operating capacity since June 2020 in response to the pandemic and associated cost control measures implemented during the period. The decrease was partially offset by an increase in cost of coal revenues for our Australian Operations of $61.4 million driven primarily by the mobilization of additional fleet during the three months ended September 30, 2020, to partly recover lost production from the first half of 2020.

Depreciation, Depletion and Amortization

Depreciation, depletion and amortization was $135.5 million for the nine months ended September 30, 2020, an increase of $10.4 million, as compared to $125.1 million for the nine months ended September 30, 2019. The increase was largely driven by additional equipment brought into service since September 30, 2019.

Freight Expenses

Freight expenses totaled $133.5 million for the nine months ended September 30, 2020, an increase of $7.1 million, as compared to $126.3 million for the nine months ended September 30, 2019. Our Australian Operations contributed to $4.4 million of the increase due to higher demurrage costs from longer vessel wait times at the port. The remainder relates to our U.S. Operations primarily driven by higher freight expenses incurred on certain contracts that did not exist in the 2019 comparative period.

Stanwell Rebate

The Stanwell rebate was $82.6 million for the nine months ended September 30, 2020, a decrease of $52.3 million, as compared to $134.8 million for the nine months ended September 30, 2019. The decrease was driven by lower realized coal pricing and lower sales volumes in 2020.

Other Royalties

Other royalties were $65.2 million in the nine months ended September 30, 2020, a decrease of $64.1 million, as compared to $129.2 million in the nine months ended September 30, 2019. Lower royalties were a product of lower average realized export pricing and lower volumes for the nine-month period ended September 30, 2020 compared to the same period in 2019.

Selling, General, and Administrative Expenses

Selling, general and administrative costs were $20.1 million for the nine months ended September 30, 2020, a decrease of $6.4 million, as compared to $26.5 million for the nine months to September 30, 2019. The decrease is primarily driven by improved efficiencies and cost saving initiatives to reduce corporate spend in 2020 compared to the 2019 comparative period.

Interest Expense, net

Interest expense, net of $36.5 million for the nine months ended September 30, 2020, increased $9.9 million, as compared to $26.6 million for the nine months ended September 30, 2019. The increase interest expense in 2020 was due to higher average interest-bearing liabilities outstanding during the nine months to September 30, 2020, compared to the same period in 2019.

Coronado Global Resources Inc. Form 10-Q September 30, 202033

Income tax benefit (expense)

Income tax benefit of $31.5 million for the nine months ended September 30, 2020, increased by $151.2 million, as compared to a tax expense of $119.7 million for the nine months ended September 30, 2019. The Company had an income tax benefit of $31.5 million for the nine months ended September 30, 2020, comprising a discrete income tax benefit of $4.1 million and an income tax benefit of $27.4 million based on a loss before tax of $196.5 million.

Supplemental Segment Financial Data

Three Months Ended September 30, 2020 Compared to Three Months Ended September 30, 2019

Australia

	For Three Months Ended September 30,
	($ in thousands)
	2020	2019	Change	%
Sales volume (MMt)	3.6	3.1	0.5	16.1%
Total revenues ($)	271,413	350,505	(79,092)	(22.6)%
Coal revenues ($)	262,491	342,216	(79,725)	(23.3)%
Average realized price per Mt sold ($/Mt)	72.4	109.6	(37.2)	(34.0)%
Met sales volume (MMt)	2.7	2.3	0.4	15.1%
Met coal revenues ($)	233,063	318,634	(85,571)	(26.9)%
Average realized Met price per Mt sold ($/Mt)	86.9	136.8	(49.9)	(36.5)%
Mining costs ($)	176,706	150,432	26,274	17.5%
Mining cost per Mt sold ($/Mt)	49.9	48.2	1.7	3.6%
Operating costs ($)	270,430	255,135	15,295	6.0%
Operating costs per Mt sold ($/Mt)	74.6	81.7	(7.1)	(8.7)%
Segment Adjusted EBITDA ($)	2,144	94,860	(92,716)	(97.7)%

Coal revenues for Australian Operations for the three months ended September 30, 2020, were $262.5 million, a decrease of $79.7 million or 23.3%, compared to $342.2 million for the three months ended September 30, 2019. This decrease was largely driven by lower average realized Met coal pricing as a result of difficult coal market conditions stemming from the COVID-19 pandemic. The average realized Met price for the current quarter was $86.9 per Mt sold, which is $49.9 per Mt lower compared to the same quarter last year. The impact of lower realized pricing was partially offset by record high sales of 3.6 MMt sold during the three months ended September 30, 2020 compared to 3.1 MMt for the same period in 2019. The increase in sales stems from record saleable production in the quarter from improved mining contractor performance, the mobilization of additional fleets to recover lost production and overburden from the first half of the year, in addition to improved coal handling preparation plant performance.

Operating costs increased by $15.3 million, or 6.0%, for the three months ended September 30, 2020, compared to the three months ended September 30, 2019. The increase was driven by the additional fleets during the quarter which increased production and sales volumes, and in turn resulted in higher railings and port charges, combined with the impact of an unfavorable average foreign exchange rate on translation of the A$ denominated Australian Operations from the three months ended September 30, 2020 of A$/US$: 0.72 compared to 0.68 for the three months ended September 30, 2019. The increase was partially offset by lower royalties and Stanwell rebate as a result of lower realized coal pricing.

Adjusted EBITDA decreased by $92.7 million, or 97.7%, to $2.1 million for the three months ended September 30, 2020 as compared to $94.9 million for the three months ended September 30, 2019, due to lower coal revenues combined with higher operating costs.

Coronado Global Resources Inc. Form 10-Q September 30, 202034

United States

	For Three Months Ended September 30,
	($ in thousands)
	2020	2019	Change	%
Sales volume (MMt)	1.3	1.8	(0.5)	(29.7)%
Total revenues ($)	104,972	185,336	(80,364)	(43.4)%
Coal revenues ($)	104,246	183,558	(79,312)	(43.2)%
Average realized price per Mt sold ($/Mt)	83.1	102.9	(19.8)	(19.2)%
Met sales volume (MMt)	1.2	1.6	(0.4)	(21.5)%
Met coal revenues ($)	103,401	172,284	(68,883)	(40.0)%
Average realized Met price per Mt sold ($/Mt)	84.0	109.9	(25.9)	(23.6)%
Mining costs ($)	81,249	114,138	(32,889)	(28.8)%
Mining cost per Mt sold ($/Mt)	64.8	64.0	0.8	1.2%
Operating costs ($)	90,872	122,396	(31,524)	(25.8)%
Operating costs per Mt sold ($/Mt)	72.4	68.6	3.8	5.6%
Segment Adjusted EBITDA ($)	14,413	63,051	(48,638)	(77.1)%

Coal revenues decreased by $79.3 million, or 43.2%, to $104.2 million for the three months ended September 30, 2020 as compared to $183.6 million for the three months ended September 30, 2019. This decrease was driven by lower average realized Met coal pricing of $84.0 per Mt sold for the three months ended September 30, 2020, a reduction of $25.9 per Mt sold compared to the same period in 2019, which was a result of softer market conditions and a decline in the benchmark coking coal market. The decrease was exacerbated by lower sales volumes of 1.3 MMt compared to 1.8 MMt for September 30, 2019 quarter due to reduced operating capacity in response to the COVID-19 pandemic and import restrictions into China, related to U.S. Met coal exports.

Operating costs decreased by $31.5 million, or 25.8%, for the three months ended September 30, 2020 compared to operating costs of $122.4 million for the three months ended September 30, 2019. The decrease was due to lower mining costs of $32.9 million, or 28.8% due to Buchanan and Logan mines operating at reduced capacity in response to the COVID-19 pandemic while Greenbrier remained temporarily idled. The increase in operating costs per Mt sold was primarily driven by lower sales volumes for the three months ended September 30, 2020 compared to same period in 2019.

For the three months ended September 30, 2020 Adjusted EBITDA decreased by $48.6 million, or 77.1%, compared to the September 30, 2019 quarter. This decrease was primarily driven by softer market conditions resulting in a lower average realized Met coal price per Mt sold and lower sales volumes, which was partially offset by a decrease in operating costs of $31.5 million.

Corporate and Other Adjusted EBITDA

The following table presents a summary of the components of Corporate and Other Adjusted EBITDA:

	For Three Months Ended September 30,
	($ in thousands)
	2020	2019	Change	%
Selling, general, and administrative expenses	6,785	8,233	(1,448)	(17.6)%
Other, net	221	(64)	285	445.3%
Total Corporate and Other Adjusted EBITDA	7,006	8,169	(1,163)	(14.2)%

Corporate and other costs decreased $1.2 million to $7.0 million for the three months ended September 30, 2020, as compared to $8.2 million for the three months ended September 30, 2019. The decrease is primarily driven by improved efficiencies and cost saving initiatives to reduce corporate spend in 2020 compared to the 2019 comparative period.

Coronado Global Resources Inc. Form 10-Q September 30, 202035

Mining and operating costs for the Three Months Ended September 30, 2020 compared to Three Months Ended September 30, 2019

A reconciliation of segment costs and expenses, segment operating costs, and segment mining costs is shown below:

	For Three Months Ended September 30, 2020
	($ in thousands)
	Australia	United States	Other / Corporate	Total Consolidated
Total costs and expenses	296,737	113,056	6,987	416,780
Less: Selling, general and administrative expense	—	—	(6,785)	(6,785)
Less: Depreciation, depletion and amortization	(26,307)	(22,184)	(202)	(48,693)
Total operating costs	270,430	90,872	—	361,302
Less: Other royalties	(18,496)	(3,201)	—	(21,697)
Less: Stanwell rebate	(25,157)	—	—	(25,157)
Less: Freight expenses	(44,168)	(6,422)	—	(50,590)
Less: Other non-mining costs	(5,903)	—	—	(5,903)
Total mining costs	176,706	81,249	—	257,955
Sales Volume excluding non-produced coal (MMt)	3.5	1.3	—	4.8
Mining cost per Mt sold ($)	49.9	64.8	—	53.8
	For Three Months Ended September 30, 2019
	($ in thousands)
	Australia	United States	Other / Corporate	Total Consolidated
Total costs and expenses	273,519	143,852	8,262	425,633
Less: Selling, general and administrative expense	(72)	—	(8,161)	(8,233)
Less: Depreciation, depletion and amortization	(18,312)	(21,456)	(87)	(39,855)
Total operating costs	255,135	122,396	14	377,545
Less: Other royalties	(32,691)	(3,124)	—	(35,815)
Less: Stanwell rebate	(40,172)	—	—	(40,172)
Less: Freight expenses	(31,840)	(5,133)	—	(36,973)
Total mining costs	150,432	114,139	14	264,585
Sales Volume excluding non-produced coal (MMt)	3.1	1.8	—	5.0
Mining cost per Mt sold ($)	48.2	64.0	—	53.9

Average realized Met coal revenue for the Three Months Ended September 30, 2020 compared to Three Months Ended September 30, 2019

A reconciliation of the Company’s average realized Met coal revenue is shown below:

	For Three Months Ended September 30,
	($ in thousands)
	2020	2019	Change	%
Met sales volume (MMt)	3.9	3.9	—	—
Met coal revenues ($)	336,464	490,918	(154,454)	(31.5)%
Average realized Met price per Mt sold ($/Mt)	86.0	125.9	(39.9)	(31.7)%

Coronado Global Resources Inc. Form 10-Q September 30, 202036

Nine Months Ended September 30, 2020 Compared to Nine Months Ended September 30, 2019

Australia

	For Nine Months Ended September 30,
	($ in thousands)
	2020	2019	Change	%
Sales volume (MMt)	9.2	9.5	(0.3)	(3.1)%
Total revenues ($)	744,968	1,144,689	(399,721)	(34.9)%
Coal revenues ($)	720,972	1,118,161	(397,189)	(35.5)%
Average realized price per Mt sold ($/Mt)	78.3	117.6	(39.3)	(33.4)%
Met sales volume (MMt)	6.6	7.1	(0.5)	(7.5)%
Met coal revenues ($)	640,893	1,046,598	(405,705)	(38.8)%
Average realized Met price per Mt sold ($/Mt)	97.5	147.2	(49.7)	(33.8)%
Mining costs ($)	475,547	422,631	52,916	12.5%
Mining cost per Mt sold ($/Mt)	52.4	44.4	8.0	17.8%
Operating costs ($)	737,033	777,303	(40,270)	(5.2)%
Operating costs per Mt sold ($/Mt)	80.0	81.7	(1.7)	(2.1)%
Segment Adjusted EBITDA ($)	8,406	366,568	(358,162)	(97.7)%

Coal revenues for Australian Operations for the nine months ended September 30, 2020, were $721.0 million, a decrease of $397.2 million or 35.5%, compared to $1,118.2 million for the nine months ended September 30, 2019. This decrease was largely driven by a decrease in average realized Met coal price by $49.7 per Mt sold and a decrease in Met sales volumes of 0.5 Mt due to reduced production stemming from the temporary suspension of operations at the Curragh Mine following January’s safety incident, adverse weather impacts, poor rail performance and scheduling issues with the rail provider and the impact of COVID-19 pandemic affecting customer demand. The decrease was partially offset by record quarterly sales volume and saleable production during the three months ended September 30, 2020.

Operating costs decreased by $40.3 million, or 5.2%, for the nine months ended September 30, 2020, compared to the nine months ended September 30, 2019. The decrease was driven by lower royalties and Stanwell rebate (mainly due to lower realized coal pricing) partially offset by higher mining costs. Mining cost per ton of $52.4 per Mt sold was 17.8% higher compared to the nine months ended September 30, 2019, impacted by lower sales volumes and mobilization of additional fleets to recover lost production and overburden removal from the first half of the year.

Adjusted EBITDA decreased by $358.2 million, or 97.7%, to $8.4 million for the nine months ended September 30, 2020 as compared to $366.6 million for the nine months ended September 30, 2019, due to lower coal revenues outweighing lower operating costs.

United States

	For Nine Months Ended September 30,
	($ in thousands)
	2020	2019	Change	%
Sales volume (MMt)	4.0	5.8	(1.8)	(30.6)%
Total revenues ($)	345,083	625,487	(280,404)	(44.8)%
Coal revenues ($)	340,582	620,100	(279,518)	(45.1)%
Average realized price per Mt sold ($/Mt)	84.8	107.2	(22.4)	(20.9)%
Met sales volume (MMt)	3.9	5.1	(1.2)	(22.0)%
Met coal revenues ($)	337,599	579,818	(242,219)	(41.8)%
Average realized Met price per Mt sold ($/Mt)	85.8	114.8	(29.0)	(25.3)%
Mining costs ($)	254,794	375,636	(120,842)	(32.2)%
Mining cost per Mt sold ($/Mt)	64.4	65.0	(0.6)	(0.8)%
Operating costs ($)	289,367	411,382	(122,015)	(29.7)%
Operating costs per Mt sold ($/Mt)	72.1	71.1	1.0	1.3%
Segment Adjusted EBITDA ($)	56,153	214,662	(158,509)	(73.8)%

Coal revenues decreased by $279.5 million, or 45.1%, to $340.6 million for the nine months ended September 30, 2020 as compared to $620.1 million for the nine months ended September 30, 2019. This decrease was driven by lower average realized Met coal pricing of $85.8 per Mt sold for the nine months ended September 30, 2020, compared to $114.8 per Mt sold for the same period in 2019, which was a result of softer market conditions and a decline in the benchmark coking coal

Coronado Global Resources Inc. Form 10-Q September 30, 202037

market, and by lower sales volumes of 4.0 MMt as compared to 5.8 MMt in 2019. Lower sales volumes were a result of softer market conditions and import restrictions into China, related to U.S. Met coal exports.

Operating costs decreased by $122.0 million, or 29.7%, to $289.4 million for the nine months ended September 30, 2020 compared to operating costs of $411.4 million for the nine months ended September 30, 2019. The decrease was due to lower mining costs of $120.8 million, a reduction of 32.2% compared to the same period in 2019, as a result of idling the U.S. Operations in April and May of 2020 and operating at reduced capacity since June 2020 in response to the COVID-19 pandemic combined with stringent cost control measures implemented in the first quarter of 2020. The cost control measures resulted in slightly lower mining cost of $64.4 per Mt sold for the nine months ended September 30, 2020, compared to $65.0 per Mt sold for the nine months ended September 30,2019 despite a decline in sales volumes of 1.8 MMt.

For the nine months ended September 30, 2020 Adjusted EBITDA decreased by $158.5 million, or 73.8%, compared to the nine months ended September 30, 2019. This decrease was primarily driven by softer market conditions resulting in a lower average realized Met coal price per Mt sold and lower sales volumes. This resulted in a decrease in coal revenues of $279.5 million which was partially offset by a decrease in operating costs of $122.0 million.

Corporate and Other Adjusted EBITDA

The following table presents a summary of the components of Corporate and Other Adjusted EBITDA:

	For Nine Months Ended September 30,
	($ in thousands)
	2020	2019	Change	%
Selling, general, and administrative expenses	20,138	26,544	(6,406)	(24.1)%
Other, net	(75)	(410)	335	(81.7)%
Total Corporate and Other Adjusted EBITDA	20,063	26,134	(6,071)	(23.2)%

Corporate and other costs decreased $6.1 million to $20.1 million for the nine months ended September 30, 2020, as compared to $26.1 million for the nine months ended September 30, 2019. The decrease is primarily driven by improved efficiencies and cost saving initiatives to reduce corporate spend in 2020 compared to the 2019 comparative period.

Coronado Global Resources Inc. Form 10-Q September 30, 202038

Mining and operating costs for the Nine Months Ended September 30, 2020 compared to Nine Months Ended September 30, 2019

A reconciliation of segment costs and expenses, segment operating costs, and segment mining costs is shown below:

	For Nine Months Ended September 30, 2020
	($ in thousands)
	Australia	United States	Other / Corporate	Total Consolidated
Total costs and expenses	803,420	357,947	20,713	1,182,080
Less: Selling, general and administrative expense	—	—	(20,138)	(20,138)
Less: Depreciation, depletion and amortization	(66,387)	(68,580)	(575)	(135,542)
Total operating costs	737,033	289,367	—	1,026,400
Less: Other royalties	(56,003)	(9,148)	—	(65,151)
Less: Stanwell rebate	(82,571)	—	—	(82,571)
Less: Freight expenses	(114,386)	(19,089)	—	(133,475)
Less: Other non-mining costs	(8,526)	(6,336)	—	(14,862)
Total mining costs	475,547	254,794	—	730,341
Sales Volume excluding non-produced coal (MMt)	9.1	4.0	—	13.1
Mining cost per Mt sold ($)	52.4	64.4	—	56.0
	For Nine Months Ended September 30, 2019
	($ in thousands)
	Australia	United States	Other / Corporate	Total Consolidated
Total costs and expenses	838,178	475,783	26,416	1,340,377
Less: Selling, general and administrative expense	(404)	—	(26,140)	(26,544)
Less: Depreciation, depletion and amortization	(60,471)	(64,401)	(262)	(125,134)
Total operating costs	777,303	411,382	14	1,188,699
Less: Other royalties	(109,791)	(19,446)	—	(129,237)
Less: Stanwell rebate	(134,846)	—	—	(134,846)
Less: Freight expenses	(110,035)	(16,300)	—	(126,335)
Total mining costs	422,631	375,636	14	798,281
Sales Volume excluding non-produced coal (MMt)	9.5	5.8	—	15.3
Mining cost per Mt sold ($)	44.4	65.0	—	52.2

Average realized Met price for the Nine Months Ended September 30, 2020 compared to Nine Months Ended September 30, 2019

A reconciliation of the Company’s average realized Met coal revenue is shown below:

	For Nine Months Ended September 30,
	($ in thousands)
	2020	2019	Change	%
Met sales volume (MMt)	10.5	12.2	(1.7)	(13.9)%
Met coal revenues ($)	978,492	1,626,416	(647,924)	(39.8)%
Average realized Met price per Mt sold ($/Mt)	93.1	133.8	(40.7)	(30.4)%

Coronado Global Resources Inc. Form 10-Q September 30, 202039

Reconciliation of Non-GAAP Financial Measures

Adjusted EBITDA

	For Three Months Ended		For Nine Months Ended
	September 30,		September 30,
	2020	2019	2020	2019
	(US $ thousands)
Reconciliation to Adjusted EBITDA:
Net (loss) income	(41,794)	69,099	(164,989)	283,425
Add: Depreciation, depletion and amortization	48,693	39,855	135,542	125,134
Add: Interest expense (net of income)	12,207	9,319	36,528	26,583
Add: Other foreign exchange losses (gains)	1,614	851	5,829	293
Add: Income tax (benefit) expense	(11,169)	30,618	(31,525)	119,661
Add: Impairment of assets	—	—	63,111	—
Adjusted EBITDA	9,551	149,742	44,496	555,096

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 flow from operations and borrowings under the SFA.

Our main uses of cash have historically been, and are expected to continue to be, the funding of our operations, working capital and capital expenditure and debt service obligations. Based on our outlook for the next 12 months, which is subject to continued changing demand from our customers, volatility in coal prices and the uncertainty of impacts from the COVID-19 pandemic on the global economy, 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 and service our debt obligations.

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 in Part I, Item 1A. “Risk Factors” of our Annual Report on Form 10-K for the year ended December 31, 2019, filed with the SEC and ASX on February 24, 2020 and Part II, Item 1A. “Risk Factors” of our Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2020, filed with the SEC and ASX on May 8, 2020. Given the current market outlook, we expect to implement additional strategic and financial initiatives to ensure there is sufficient available liquidity to meet our obligations. The business retains operating and cost flexibility, and such strategic initiatives may include further right-sizing of production at the U.S. Operations for market conditions, deferring development capex, reducing stay-in-business capex and curtailing non-essential operating costs. In addition, the Company may pursue other initiatives to improve cash flow, such as the potential for non-core asset sales or other funding measures.

Liquidity as of September 30, 2020 and December 31, 2019 was as follows:

	September 30, 2020	December 31, 2019
	($ in thousands)
Cash, excluding restricted cash	14,408	26,302
Availability under Revolving Syndicate Facility Agreement (1)	262,375	220,000
Total	276,783	246,302

⁽¹⁾ The availability to fully draw down under the SFA is subject to a modified liquidity buffer of $50 million, leading to a review event process if amounts within this buffer are drawn down during the extended waiver period (i.e. before 30 September 2021). However, lender consent required to access the remaining $50 million was removed as part of the recent waiver extension.

Coronado Global Resources Inc. Form 10-Q September 30, 202040

Our total indebtedness as of September 30, 2020 and December 31, 2019 consisted of the following:

	September 30, 2020	December 31, 2019
	($ in thousands)
Current instalments of other financial liabilities and finance lease obligations	10,036	8,375
Interest bearing liabilities, excluding current instalments	287,625	330,000
Other financial liabilities, excluding current instalments	42	1,546
Total	297,703	339,921

Liquidity

As of September 30, 2020, available liquidity was $276.8 million comprising cash and cash equivalents (excluding restricted cash) of $14.4 million and $262.4 million of available borrowing facilities under the SFA, $50 million of which is subject to a modified liquidity buffer (described below). As of December 31, 2019, available liquidity was $246.3 million comprising cash and cash equivalents of $26.3 million and $220.0 million of available borrowing facilities.

In light of the COVID-19 pandemic, the Company has taken steps to strengthen its financial position and maintain financial flexibility.

On May 25, 2020 the Company concluded an agreement with lenders under the SFA to waive compliance with certain financial covenants for the period from May 25, 2020 to February 28, 2021. On August 12, 2020, the Company secured a further extension to the waiver of its financial covenants to September 30, 2021. See “Liquidity and Capital Resources-Liquidity-Secured Credit Facilities” below for more details.

The waiver provides additional flexibility to work through this period of significant uncertainty, lower demand and pricing for Met coal that has been brought about by the global COVID-19 pandemic. During the waiver period the Company will have additional reporting undertakings and additional restrictions on certain terms and conditions, including in relation to divestments, dividends and new indebtedness. During the waiver period we are required to provide additional financial information to the lenders each month and have agreed to limit financial indebtedness and asset sales that are not pre-approved by lenders.

During the quarter ended September 30, 2020, the Company undertook the Placement and the Entitlement Offer issuing CDIs on the ASX raising net proceeds of $171.6 million. Refer to Note 6 “Capital Structure” to the unaudited condensed consolidated financial statements included in Part I, Item 1. The funds raised were used to repay a portion of drawn balances under the SFA during the three months ended September 30, 2020.

The Company continues to actively review plans for reducing operating, corporate and capital expenditure to ensure sufficient available liquidity under the SFA during this period of uncertainty and volatility.

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

Secured Credit Facilities

To assist in managing the potential volatility in economic and operational changes, which may influence the generation of free cash flow, the Company entered into the SFA, which provides three borrowing facilities:

•Facility A — $350 million multicurrency revolving loan facility available for general working capital and corporate purposes;

•Facility B — A$130 million multicurrency bank guarantee facility; and

•Facility C — $200 million multicurrency revolving loan facility available for general working capital and corporate purposes.

The right to draw upon these facilities is conditional upon a number of provisions being satisfied at the time that each drawdown request is issued. These conditions include, among other things, that:

•no Event of Default is continuing or would result from the proposed loan;

Coronado Global Resources Inc. Form 10-Q September 30, 202041

•the representations, as defined in the SFA, that are made are true in all material respects and not misleading; and

•the amount of the proposed loan will not cause the committed facility limit to be exceeded.

At September 30, 2020, the Company had $232.4 million drawn and $117.6 million undrawn under Facility A, and $ 55.2 million drawn and $144.8 million undrawn under Facility C.

On May 25, 2020, the Company executed a Syndicated Facility Agreement Waiver Letter, or First Waiver Letter, which, among other matters, waived compliance with certain financial covenants for the period from May 25, 2020 to February 28, 2021.

On August 12, 2020, the Company executed the Second Waiver Letter to further waive its financial covenants to September 30, 2021, or waiver period. The waiver extension was conditional upon the successful completion of a minimum equity raising, satisfied by the completion of the Placement and the institutional component of the Entitlement Offer on August 26, 2020, which was used to repay a portion of drawn down balances under the SFA. A further condition is a permanent reduction of $75 million to the facility limit to occur in three steps of $25.0 million each in February, May and August 2021. The net proceeds of certain permitted disposals are required to be applied towards repayment of the existing facilities and 40% of such net proceeds will contribute towards the facility limit reduction obligation.

The Second Waiver Letter provides the Company with additional flexibility to work through the current period of lower demand and pricing for Met coal as a result of COVID-19. Testing of financial covenants will occur as at September 30, 2021 with the compliance certificate to be delivered by October 31, 2021.

During the waiver period the Company has agreed to additional reporting requirements and other restrictions, including on new indebtedness and asset sales. The payment of dividends during the waiver period is also subject to additional conditions including demonstrating compliance with the financial covenants in the SFA (both historical and on a 6-month forecast basis) as if there had not been a financial covenant waiver, and no review event continuing or resulting from the payment of the dividend. In addition, under the Second Waiver Letter, availability to fully draw down under the SFA is subject to a modified liquidity buffer of $50 million leading to a review event process if amounts within this buffer are drawn down during the waiver period (i.e. before September 30, 2021). However, the lender consent previously required to access the remaining $50 million has been removed by the Second Waiver Letter. As a result, where the available balance of certain of the facilities under the SFA is less than $50 million, the Company must enter into an up to 30 day negotiation period with the lenders in relation to the terms on which the majority lenders would be prepared to continue to provide, fund or maintain the facilities. If no agreement is reached, the Company’s lenders may cancel whole or part of the facility, and require repayment.

At the end of, or after the waiver period, a breach of the financial covenants will constitute an event of default under the SFA and all amounts outstanding at that point may become due and payable, unless the lenders extend the waiver period. The terms of the SFA will revert to the originally agreed terms at the end of the waiver period.

See Part II, Item 1A. “Risk Factors” – “Our financial performance could be adversely affected by a prolonged deterioration in prices.” for additional information.

Bank Guarantees

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. Facility B is available for this purpose and as of September 30, 2020, we had issued multicurrency Bank Guarantees totaling A$93.3 million to satisfy these requirements, leaving A$36.7 million available under Facility B.

Secured Credit Facilities Terms

Interest Rate

Borrowings under our SFA bear interest at a floating rate which is either (i) London Interbank Offer Rate, or LIBOR, plus an applicable margin for US$ loans and (ii) Bank Bill Swap Bid Rate, or BBSY, bid plus an applicable margin for the A$ loan. The applicable margin for Facility A and C depends on the Net Debt to EBITDA ratio (as defined in the SFA).

Financial Covenants

Under the SFA we are required to comply with financial covenants, namely leverage ratio, interest coverage ratio and tangible net worth.

As discussed above under “Liquidity - Secured Credit Facilities”, on August 12, 2020, the Company executed the Second Waiver Letter, which waives compliance with certain financial covenants for the period to September 30, 2021. The Second

Coronado Global Resources Inc. Form 10-Q September 30, 202042

Waiver Letter provides the Company with additional flexibility to work through this period of lower demand and pricing for Met coal as a result of COVID-19. See Part II, Item 1A. “Risk Factors” – “Our financial performance could be adversely affected by a prolonged deterioration in prices.” for additional information.

Dividend

During the nine months to September 30, 2020 we paid $24.2 million of dividends to stockholders and CDI holders on the ASX.

Capital Requirements

Our main uses of cash have historically been and are expected to continue to be the funding of our operations, working capital, capital expenditure, the payment of interest and dividends.

Historical Cash Flows

The following table summarizes our cash flows for the nine months ended September 30, 2020 and 2019, as reported in the accompanying consolidated financial statements:

Cash Flow

	For Nine months ended September 30,
	2020	2019
	($ in thousands)
Net cash (used in) provided by operating activities	(38,095)	438,611
Net cash (used in) investing activities	(79,263)	(118,311)
Net cash provided by (used in) financing activities	102,206	(408,957)
Net change in cash and cash equivalents	(15,152)	(88,657)
Effect of exchange rate changes on cash and restricted cash	3,258	(1,779)
Cash and restricted cash at beginning of period	26,553	124,881
Cash and restricted cash at end of period	14,659	34,445

Operating activities

Net cash used in operating activities was $38.1 million for the nine months ended September 30, 2020, and cash provided by operating activities was $438.6 million for the nine months ended September 30, 2019. The decrease in cash from operating activities was primarily due to the decline in revenues in the period partially offset by lower operating costs.

Investing activities

Net cash used in investing activities was $79.3 million for the nine months ended September 30, 2020, compared to $118.3 million for the nine months ended September 30, 2019. Capital expenditure for the nine months ended September 30, 2020 was $85.3 million, of which $33.4 million related to the Australian Operations, $50.6 million related to the U.S. Operations and the remaining $1.3 million for other and corporate. Included in the capital expenditure for the U.S. Operations was an acquisition of new reserves of $6.0 million. During the nine months ended September 30, 2020, $6.0 million of deposits and reclamation bonds were redeemed and replaced with standby letters of credit.

As a result of weak market conditions and the uncertainty surrounding the length and severity of the COVID-19 pandemic, we are focused on further reducing our expected cost and capital expenditures for the remainder of fiscal year 2020.

Financing activities

Net cash provided by financing activities was $102.2 million for the nine months ended September 30, 2020, compared to $409.0 million of net cash used in financing activities during the nine months ended September 30, 2019. Included in the net cash provided in financing activities for the nine months ended September 30, 2020, were proceeds from borrowings of $165.0 million, net proceeds from stock issuance (the Placement and Entitlement Offer) of $171.6 million, repayment of borrowings of $216.8 million, and $24.2 million for dividends paid to the shareholders of the Company.

Uses of cash from financing activities during the nine months ended September 30, 2019 included proceeds from borrowings of $414.0 million used to partially fund $696.1 million of dividends and other distributions paid to the shareholders of the Company, repayment of borrowings of $104.0 million and payments of contingent royalty consideration under the Value Share Mechanism of $17.8 million.

Coronado Global Resources Inc. Form 10-Q September 30, 202043

Contractual Obligations

There were no material changes to our contractual obligations from the information previously provided 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, 2019, filed with the SEC and ASX on February 24, 2020.

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.

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, 2019, filed with the SEC and ASX on February 24, 2020.

Newly Adopted Accounting Standards and Accounting Standards Not Yet Implemented

See Note 2. (a) “Newly Adopted Accounting Standards” and Note 2. (b) “Accounting Standards Not Yet Implemented” to our unaudited condensed consolidated financial statements for a discussion of newly adopted accounting standards and accounting standards not yet implemented.

Coronado Global Resources Inc. Form 10-Q September 30, 202044

ITEM 3. 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 are exclusively used for economic hedging purposes and hedging 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, 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.

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 restrictions by China on U.S. and Australian coal imports into the country, which may have a negative impact on the profitability of the Company. 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 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 24, 2020.

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 September 30, 2020, there were $18.9 million of outstanding provisionally priced sales. If prices were to decrease 10%, provisionally priced sales would decrease by $1.9 million. See item 1A. “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 24, 2020.

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 U.S. Operations in fiscal year 2020 will be purchased under fixed-price contracts or on a spot basis. For our Australian Operations, we have entered into forward derivative contracts to purchase diesel fuel with respect to our fuel requirements at Curragh in 2020 and 2021 of which 166.0 million liters were outstanding as of September 30, 2020. The fair value of the forward derivative contracts as of September 30, 2020 was a liability of $17.3 million.

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 financial performance, investment decisions and stockholder returns. 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 September 30, 2020, we had $10.1 million of fixed-rate borrowings and $287.6 million of variable-rate borrowings outstanding. As discussed in Item 2. “Management’s Discussion and Analysis of Financial Condition and Results of

Coronado Global Resources Inc. Form 10-Q September 30, 202045

Operations—Liquidity and Capital Resources—Liquidity,” as of September 30, 2020, the drawn debt facility of $287.6 million incurred a variable interest rate of LIBOR or BBSY bid plus a margin. As of September 30, 2020, a 10% increase in the market interest rate on our variable-rate borrowings of $287.6 million would increase our annual interest expense by $0.1 million. 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 90% of expenses incurred at Curragh are denominated in A$. Approximately 10% of Curragh’s purchases are made with reference to US$, which provides a natural hedge against foreign exchange movements on these purchases (including fuel, some port handling charges, demurrage, purchased coal and some insurance premiums).

The Company entered into forward exchange contracts to manage its foreign currency exposure of the Curragh operations by selling US$ generated from export coal sales revenue at Curragh and purchasing A$ required to settle Curragh’s A$ operating costs. The fair value of the forward foreign currency derivative contracts as of September 30, 2020 was an asset of $2.6 million.

For our Australian Operations, we translate all monetary assets and liabilities at the period-end exchange rate, all non-monetary 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.

For the unhedged portion of US$ required to purchase A$ to settle Curragh’s operating costs, a 10% increase in the A$ to US$ exchange rate would increase reported total costs and expenses by approximately $23.1 million and $59.4 million for the three and nine months ended September 30, 2020.

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 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.

Coronado Global Resources Inc. Form 10-Q September 30, 202046

item 4. Controls and Procedures

Disclosure Controls and Procedures

Disclosure controls and procedures are controls and procedures that are designed to ensure that information required to be disclosed in our reports filed under the Exchange Act are recorded, processed, summarized and reported, within the time periods specified in the SEC’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by our company in the reports that it files or submits under the Exchange Act is accumulated and communicated to our management, including its principal executive and principal financial officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure.

The Company, under the supervision and with the participation of its management, including the Chief Executive Officer and the Group Chief Financial Officer, evaluated the effectiveness of the design and operation of the Company’s disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) as of the end of the period covered by this report, and concluded that such disclosure controls and procedures were effective to provide reasonable assurance that the desired control objectives were achieved.

Internal Control over Financial Reporting

Internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements in accordance with U.S. GAAP. We are not currently required to comply with the SEC’s rules implementing Section 404 of the Sarbanes-Oxley Act of 2002, and are therefore not required to make a formal assessment of the effectiveness of our internal control over financial reporting for that purpose. We will not be required to submit a report of management’s assessment regarding internal control over financial reporting or an attestation report of the Company’s registered public accounting firm until our second annual report on Form 10-K, which will be for fiscal year 2020, in accordance with the transition period established by the rules of the SEC for newly registered companies.

Our Chief Executive Officer and Group Chief Financial Officer have concluded that the Consolidated Financial Statements included in this Quarterly Report on Form 10-Q, present fairly, in all material respects, the financial position of the Company at September 30, 2020, and the consolidated results of operations and cash flows for the nine months period ended September 30, 2020, in conformity with U.S. generally accepted accounting principles.

Changes to Internal Control over Financial Reporting

As previously reported, we expect to continue to make changes in our internal control over financial reporting in connection with our compliance efforts with respect to the Sarbanes-Oxley Act of 2002. As such, we will continue to assess the adequacy of our internal control over financial reporting, remediate any control weaknesses that may be identified, validate through testing that controls are functioning as designed and implement a continuous reporting and improvement process for internal control over financial reporting.

Coronado Global Resources Inc. Form 10-Q September 30, 202047

PART II – OTHER INFORMATION

item 1. lEGAL PROCEEDINGS

We are subject to various legal and regulatory proceedings. For a description of our significant legal proceedings refer to Note 21. “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.

ITEM 1A. RISK FACTORS

Except as set forth below, there were no material changes to the risk factors previously disclosed in Part I, Item 1A, “Risk Factors”, of our Annual Report on Form 10-K for the year ended December 31, 2019, filed with the SEC and ASX on February 24, 2020 and Part II, Item 1A. “Risk Factors” of our Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2020, filed with the SEC and ASX on May 8, 2020:

Our financial performance could be adversely affected by a prolonged deterioration in prices.

As at September 30, 2020, we had $287.6 million of borrowings outstanding under the SFA. The degree to which liquidity is sufficient to meet the ongoing needs of the business may be impacted by a number of factors and could have the following consequence if sufficient liquidity is not available, including, but not limited to:

 making it more difficult for us to pay interest and satisfy our debt obligations;

 making any refinancing more difficult if the capital and lending markets are constrained;

 making it more difficult to obtain surety bonds, letters of credit, bank guarantees or other financing, particularly during periods in which credit markets are weak;

 limiting our flexibility in planning for, or reacting to, changes in our business and in the coal industry; and

 causing a decline in our credit ratings.

On May 25, 2020 the Company concluded an agreement with lenders under the SFA to waive compliance with certain financial covenants for the period from May 25, 2020 to February 28, 2021. On August 12, 2020, the Company secured an extension to the waiver of its financial covenants to September 30, 2021 and a waiver of any event of default arising in connection with a material adverse effect on (i) the financial condition of the Company (ii) the ability of the obligors (taken as a whole) to perform their obligations under the SFA and related documents, which may have occurred or be continuing as at August 12, 2020 as a result of COVID-19 related events.

During the waiver period, the Company is required to comply with additional reporting requirements and restrictions, including in relation to new indebtedness and asset sales. A further condition is a permanent reduction of $75.0 million to the facility limit to occur in three steps of $25.0 million each in February, May and August 2021. The net proceeds of certain permitted disposals are required to be applied towards repayment of the existing facilities and 40% of such net proceeds will contribute towards the facility limit reduction obligation.

The payment of dividends during this waiver period is also subject to additional conditions including demonstrating compliance with the financial covenants in the SFA (both historical and on a 6-month forecast basis) as if there had not been a financial covenant waiver, and there is no review event, continuing or resulting, from the payment of the dividend.

In addition, under the Second Waiver Letter, availability to fully draw down under the SFA is subject to a modified liquidity buffer of $50 million leading to a review event process if amounts within this buffer are drawn down during the waiver period (i.e. before September 30, 2021). However, lender consent previously required to access the remaining $50 million has been removed by the Second Waiver Letter. As a result, where the available balance of certain of the facilities under the SFA is less than $50 million, the Company must enter into an up to 30 day negotiation period with the lenders in relation to the terms on which the majority lenders would be prepared to continue to provide, fund or maintain the facilities. If no agreement is reached, the Company’s lenders may cancel whole or part of the facility, and require repayment.

The waiver provides additional flexibility to work through this period of significant uncertainty, lower demand and pricing for Met coal that has been brought about by the global COVID-19 pandemic. Testing of financial covenants will occur as at September 30, 2021 with the compliance certificate to be delivered by October 31, 2021. During the waiver period the Company will have additional reporting undertakings and additional restrictions on certain terms and conditions, including in relation to divestments, dividends and new indebtedness. During the waiver period we are required to provide additional financial information to the lenders each month and have agreed to limit financial indebtedness and asset sales that are not pre-approved by lenders. There can be no assurance that waivers will be extended beyond September 30, 2021 or that the Company will be in compliance with its financial covenants under the SFA after September 30, 2021 if the current market conditions persist.

Coronado Global Resources Inc. Form 10-Q September 30, 202048

Any downgrade in our credit ratings could result in, among other matters, an increase in the cost of, or a limit on our access to, various forms of credit used in operating our business and the requirement by suppliers for us to provide financial assurance by way of letters of credit.

item 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

On August 26, 2020, we issued 398,911,490 fully paid new CDIs (representing a beneficial interest in 39,891,149 shares of common stock) in connection with the Placement and the institutional component of the Entitlement Offer. We raised a total approximately of $164.3 million, net of issuance costs of approximately $7.4 million. On September 14, 2020 we issued 18,450,490 fully paid new CDIs (representing a beneficial interest in 1,845,049 shares of common stock) in connection with the retail component of the Entitlement Offer. We raised a total approximately of $7.3 million, net of issuance costs of approximately $0.8 million. The issuances of CDIs in the Placement and Entitlement Offer were made in reliance upon the exemption from registration contained in Section 4(a)(2) of the Securities Act of 1933, as amended, or the Securities Act, and Rule 903 of Regulation S under the Securities Act.

The funds raised were fully used to repay a portion our existing indebtedness. The joint lead managers for the share issuance were Credit Suisse Equities (Aust) Ltd, Citibank Global Markets Australia Pty Limited, Goldman Sachs Australia Pty Ltd and Bell Potter Securities Ltd.

item 3. DEFAULTS UPON SENIOR SECURITIES

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.

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 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.

Coronado Global Resources Inc. Form 10-Q September 30, 202049

ITEM 6. EXHIBITS

The following documents are filed as exhibits hereto:

Exhibit No.	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)
10.1†‡	Second Waiver and Modification Agreement, dated as of August 12, 2020, by and among Coronado Finance Pty Ltd., the Company, other affiliates of the Company and Westpac Banking Corporation
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)

___________________________

†Certain annexures to this exhibit have been omitted pursuant to Item 601(a)(5) and 601(a)(6) of Regulation S-K. A copy of any omitted annexure will be furnished to the Securities and Exchange Commission upon request.

‡Portions of this exhibit have been omitted pursuant to Item 301(b)(10)(iv) of Regulation S-K, which portions will be furnished to the Securities and Exchange Commission upon request.

Coronado Global Resources Inc. Form 10-Q September 30, 202050

SIGNATURE

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. (Registrant)
By:	/s/ Gerhard Ziems
Gerhard Ziems
Group Chief Financial Officer (as duly authorized officer and as principal financial officer of the registrant)

Date: November 10, 2020

Coronado Global Resources Inc. Form 10-Q September 30, 202051

EX-10.1

 

EXHIBIT 10.1

CERTAIN INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS BOTH NOT MATERIAL AND WOULD LIKELY CAUSE COMPETITIVE HARM TO THE REGISTRANT IF PUBLICLY DISCLOSED. THE OMITTED PORTIONS OF THIS DOCUMENT ARE INDICATED BY [***].

12 August 2020                                 

Westpac Banking Corporation (as Agent)

Level 3, 275 Kent Street

Sydney NSW 2000

Greetings  

Syndicated Facility Agreement dated 15 September 2018, as amended by Amendment Agreement dated 11 September 2019 (Facility Agreement) and modified by Waiver Letter dated 25 May 2020

Second request for waivers and modifications

1Background

1.1In this letter capitalised terms have the meanings given in the Facility Agreement and clause references are to clauses in the Facility Agreement, in each case unless otherwise stated.  A reference to a paragraph is to a paragraph of this letter unless otherwise stated.

1.2Reference is also made to our letter requesting waivers and modifications dated 25 May 2020, as accepted by you on that date (First Waiver Letter). 

1.3We write to you, as Agent under the Facility Agreement, to seek your agreement to:

(a)amend the First Waiver Letter so as to be in the form of the document attached to this letter and marked ‘Annexure A’; and

(b)further waivers under, and modifications of, certain parts of the Facility Agreement.   

1.4Despite anything to the contrary in this letter, including acceptance by the Agent as contemplated by paragraph 10.1, this letter is of no effect whatsoever unless and until (and comes into effect automatically and without need for further act or document when) the Parent enters into an underwriting agreement with respect to the Equity Raising (as defined in paragraph 2.1) of at least USD120,000,000.  If that does not occur by the last moment before midnight (AEST) on 31 August 2020 (or such later time as the Agent (acting on the instructions of the Majority Lenders) agrees in writing), then this letter is permanently withdrawn and terminated.

2Equity Raising

2.1The Group, via the Parent, is proposing to raise further equity (Equity Raising).  The equity is to be raised by the Parent and the process is expected to be completed, with the net proceeds received applied in full in prepayment of Loans under the Syndicated Facility Agreement, by 31 August 2020.

3Request for waivers and modifications

3.1Under clause 39 (Amendments and waivers) the matters described below require the consent of the Majority Lenders.  By clause 39.1(b), once you have the requisite consents and are so instructed, you may execute this letter on behalf all Finance Parties by way of agreement with the Obligors, as contemplated by paragraph 10.1 (the date you do so will be the Acceptance Date). 

3.2We seek the consent and agreement of the Agent (acting on the instructions of the Majority Lenders) to the following:

Amendments to the First Waiver Letter

3.3The amendments to the First Waiver Letter contemplated by paragraph 1.3(a) are contingent upon:

(a)the Equity Raising securing a minimum of USD120,000,000 in further equity or such lesser amount as agreed by the Majority Lenders from time to time; and

47880858_7

(b)the net proceeds being applied in full in pro-rata prepayment of outstanding Facility A Loans and Facility C Loans,

by 31 August 2020 or such later date as agreed by the Majority Lenders from time to time (Equity Raise Conditions).   

3.4The Borrower undertakes to notify the Agent in writing promptly after the Parent becomes unconditionally entitled to receive the net proceeds of the Equity Raising. 

3.5Upon the Borrower applying in full the net proceeds (or any lesser amount required to fully repay all outstanding Facility A Loans and Facility C Loans) of the Equity Raising to prepayment of Loans in accordance with the Equity Raise Conditions, the First Waiver Letter is amended in the manner contemplated by paragraph 1.3(a).  Paragraph 8 of this letter otherwise applies with respect to the First Waiver Letter as so amended.

4Permitted Disposals and consequential prepayments

4.1Despite clause 24.11 (Disposals) and the restrictions on disposals in paragraph 2.8 of the First Waiver Letter, for so long as there is no Default or Review Event continuing, the Majority Lenders acknowledge and consent to these transactions being Permitted Disposals during the Waiver Period:

(a)a long term coal sale arrangement on terms approved by the Majority Lenders (but this does not limit the Obligors’ rights to enter into contracts for the sale of coal that are otherwise permitted by clause 24.11 (Disposals) and paragraph (a) of the definition of “Permitted Disposals” in the Facility Agreement);

(b)a sale and leaseback arrangement by Coronado Curragh Pty Ltd in respect of the heavy machinery equipment (HME) set out in the schedule attached to this letter and marked ‘Annexure B’ (Annexure B); and

(c)a sale of any housing set out in Annexure C, which are currently owned by Curragh Queensland Mining Pty Ltd and utilised in connection with the Curragh Mine,

(collectively, the Permitted Transactions and individually a Permitted Transaction), on the condition that:

(d)the relevant Permitted Transaction is completed within 6 months of the date of this letter;

(e)the net proceeds received from each Permitted Transaction are applied in full in prepayment of the Loans; and

(f)an amount equal to 40% of the net proceeds received from each Permitted Transaction will be applied in permanent reduction of the Facility A Commitment and the Facility C Commitment, to be applied pro-rata across each of these Facilities and proportionately against each respective Lender’s Commitment.  Those permanent reductions are applied against the obligations to reduce commitments under paragraph 5 in chronological order.

5Calculation and amortisation

5.1If the following reductions have not occurred by the dates shown in the table below, either in respect of the Facility A Commitment or the Facility C Commitment (or a combination in aggregate, as applicable), as a result of Permitted Transactions or otherwise, then they are automatically reduced

2

by the amounts shown (less any such prior reductions) on those dates in that table (Reduced Commitments).  Each Lender’s respective Facility A Commitment and Facility C Commitment is reduced proportionately with the reduced amounts being permanently cancelled.

5.2The Borrower must ensure (including by repaying Facility A Loans and Facility C Loans if necessary) that the principal outstanding under Facility A and Facility C does not exceed the Reduced Commitments on those dates. 

15 February 2021	USD25,000,000
15 May 2021	USD25,000,000

15 August 2021 USD25,000,000

5.3The automatic reductions described in the above are to be applied pro-rata across the Facility A Commitment and the Facility C Commitment and only once the Commitments under those Facilities are reduced to zero may any of the above amounts be applied in reduction of the Facility B Commitment. Any funds received and applied in permanent reduction of the Commitments will be applied in order of the dates outlined in the above table.

6Waiver of Material Adverse Effect

6.1Any Event of Default under clause 25.17 (Material Adverse Effect) arising by reason of paragraph (a) or (b) of the definition of Material Adverse Effect which may have occurred or be continuing as at the Acceptance Date as a result of COVID-19 related events that have occurred on or before that date is waived.

7Representations

7.1This letter and the supplemental information provided to the Agent in connection with it comprise disclosure, to the extent of their contents, for the purposes of the representations in clause 21.9 (Disclosure) and 21.10(c) (No misleading information).    

7.2Except as to matters expressly waived in this letter, each Obligor repeats the Repeating Representations on the date of its execution of this letter by reference to the facts and circumstances then existing.

7.3Each Obligor on the date of this letter represents and warrants to each Finance Party that no Finance Party has or will be paid any additional fee or Margin or other payment other than as stated in this letter in connection with the waivers granted pursuant to this letter. Each Obligor undertakes that it will not make any such payment.  

7.4Each Obligor incorporated in Australia represents and warrants that its constitution has not been amended or repealed since last provided to the Agent on or about 24 October 2018, except as approved by the Agent.

8Administration Fee and other conditions

8.1In consideration of the waivers and modifications sought in this letter, the Obligors undertake to pay to you as Agent, for the account of each Lender, an administration fee calculated at [***] on its respective aggregate Commitment on the Acceptance Date. That fee will be paid in the currency or currencies in which a Lender’s Commitments are denominated and shall be payable by the Obligors to the Agent within 10 Business Days after the Acceptance Date.

8.2The Obligors undertake to pay promptly on demand the fees, costs and expenses incurred by the Lenders and the Agent in the preparation, negotiation and execution of this letter (including legal fees and expenses) pursuant to clause 19.2 (Amendment costs).  

8.3Within 20 Business Days of the Acceptance Date, the Obligors must procure in form and substance satisfactory to the Agent legal opinions of:

(a)Sullivan & Cromwell LLP, as New York counsel to the Parent and the Obligors; and

(b)Dinsmore & Shohl LLP, as West Virginia counsel to the Parent and the Obligors,

3

in each case regarding US law matters with respect to the Obligors and their entry into this letter. A failure to comply with this undertaking within the time required will be an Event of Default and no remedy periods under the Facility Agreement will apply.

8.4Within20 Business Days of the Acceptance Date, the Obligors must procure in form and substance satisfactory to the Agent, all board extracts, verification certificates and other documentation required by the Agent to enable King & Wood Mallesons, as Australian counsel to the Finance Parties to issue its legal opinion regarding Australia law matters with respect to the Obligors and their entry into this letter. A failure to comply with this undertaking within the time required will be an Event of Default and no remedy periods under the Facility Agreement will apply.

9General

9.1This letter is issued by the Parent, the Original Borrower and all other Obligors. 

9.2Each Obligor acknowledges that, except as expressly provided for in this letter (or any other Finance Document):

(a)no other amendments, waivers or consents are made by this document to the Facility Agreement, the First Waiver Letter or any other Finance Document;

(b)this letter does not affect any other right a Lender may have; and

(c)all provisions of the Facility Agreement, the First Waiver Letter (as amended by this letter) and any other Finance Document remain in full force and effect.

9.3Each Obligor acknowledges and confirms that:

(a)except as expressly provided for in this letter, the terms of this letter do not affect or prejudice the obligations of any Obligor under the Facility Agreement, the First Waiver Letter or any other Finance Document; and

(b)each guarantee and security provided by it and security granted by it continues in full force and effect.

9.4In the event of any inconsistency between this letter and the Facility Agreement or the First Waiver Letter, the terms of this letter will prevail to the extent of that inconsistency.

9.5The person who signs this letter on behalf of the Obligors does so as the duly appointed attorney of each Australian Obligor and duly authorized signatory of each US Obligor and has no notice of revocation of that appointment or authority with respect to any Obligor.

9.6The Agent acknowledges that the Parent has advised that it intends to publicly file this letter with the U.S. Securities and Exchange Commission. The Agent consents on behalf of itself and the Majority Lenders to the public filing of this letter with the U.S. Securities and Exchange Commission on the condition that the Parent redacts any fee information and uses its best endeavours to ensure that there is a redaction of the margin information set out in paragraph 2.3 of Annexure A as part of the public filing.

10Acceptance

10.1If the Majority Lenders agree to the above and instruct you accordingly, please acknowledge that agreement by executing this letter and returning it to us.  To facilitate the Equity Raising, we request that you do so by no later than Wednesday, 12 August 2020.  You and the Obligors acknowledge and agree that, subject to paragraph 1.4, the waivers and modifications described in this letter come into effect upon your so doing.

10.2This letter and any agreement formed by its acceptance are governed by the laws of Queensland and each party irrevocable submits to the non-exclusive jurisdiction of the courts of Queensland.

10.3Once accepted, this letter is a Finance Document under the Facility Agreement.

10.4This letter may be signed in any number of counterparts.  Each counterpart constitutes an original of this letter, all of which together constitute one instrument. This letter is intended to bind all parties to it.  In the event it is not binding on one party, the parties agree that it will be binding on none of them

4

10.5The parties enter into this letter in consideration of, among other things, the mutual promises contained in this letter.

EXECUTED as an agreement.

5

Signature pages

Borrower

Signed for and on behalf of CORONADO FINANCE PTY LTDby its attorney under power of attorney dated 11 August 2020___   in the presence of:	) ) ) ) ) )	/s/ Gerhard Ziems
/s/ Liesl Burman		By executing this document the attorney states that the attorney has received no notice of revocation of the power of attorney
Signature of witness
Liesl Burman
Name of witness (BLOCK LETTERS)
Address of witness

Parent

CORONADO GLOBAL RESOURCES, INC

By: /s/ Gerhard Ziems

Name: Gerhard Ziems

Title: Authorized Signatory

6

Obligors

Signed for and on behalf of CORONADO AUSTRALIA HOLDINGS PTY LTDby its attorney under power of attorney dated 11 August 2020___ in the presence of:	) ) ) ) )	/s/ Gerhard Ziems
/s/ Liesl Burman		By executing this document the attorney states that the attorney has received no notice of revocation of the power of attorney
Signature of witness
Liesl Burman
Name of witness (BLOCK LETTERS)
Address of witness

Signed for and on behalf of CORONADO  CURRAGH PTY LTDby its attorney under power of attorney dated 11 August 2020___   in the presence of:	) ) ) ) )	/s/ Gerhard Ziems
/s/ Liesl Burman		By executing this document the attorney states that the attorney has received no notice of revocation of the power of attorney
Signature of witness
Liesl Burman
Name of witness (BLOCK LETTERS)
Address of witness

7

Signed for and on behalf of CURRAGH QUEENSLAND MINING PTY LTDby its attorney under power of attorney dated 11 August 2020___ in the presence of:	) ) ) ) )	/s/ Gerhard Ziems
/s/ Liesl Burman		By executing this document the attorney states that the attorney has received no notice of revocation of the power of attorney
Signature of witness
Liesl Burman
Name of witness (BLOCK LETTERS)
Address of witness

Signed for and on behalf of CURRAGH COAL SALES CO. PTY. LTD.by its attorney under power of attorney dated 11 August 2020___ in the presence of:	) ) ) ) )	/s/ Gerhard Ziems
/s/ Liesl Burman		By executing this document the attorney states that the attorney has received no notice of revocation of the power of attorney
Signature of witness
Liesl Burman
Name of witness (BLOCK LETTERS)
Address of witness

8

CORONADO COAL CORPORATION

CORONADO COAL LLC

CORONADO II LLC

CORONADO IV LLC

POWHATAN MID-VOL COAL SALES, L.L.C

MATOAKA LAND COMPANY, LLC

GREENBRIER SMOKELESS COAL MINING, L.L.C.

CORONADO COAL II LLC

CORONADO CURRAGH LLC

BUCHANAN MINING COMPANY LLC

CORONADO VA, LLC

GREENBRIER MINERALS, LLC

MIDLAND TRAIL RESOURCES LLC

BUCHANAN MINERALS, LLC

By: /s/ Gerhard Ziems

Name: Gerhard Ziems

Title: Authorized Signatory

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Agent 

Signed for and on behalf of Westpac Banking Corporation ABN 33 007 457 141by its Attorney under a Power of Attorney dated 17 January 2001, and the Attorney declares that the Attorney has not received any notice of the revocation of such Power of Attorney, in the presence of:	/s/ Mathew O’Donohue
	Signature of Attorney
/s/ Jodie Laws	Mathew O’Donohue
Signature of Witness Jodie Laws	Name of Attorney in full
Name of Witness in full

10

ANNEXURE A

To second request for waivers and modifications

Dated 12 August 2020

EXECUTION VERSION

25 May 2020                                     

Westpac Banking Corporation (as Agent)

Level 3, 275 Kent Street

Sydney NSW 2000

Greetings  

Syndicated Facility Agreement dated 15 September 2018, as amended by Amendment Agreement dated 11 September 2019 (Facility Agreement)

Request for waivers and modifications

1          Background

1.1       In this letter capitalised terms have the meanings given in the Facility Agreement and clause  references are to clauses in the Facility Agreement, in each case unless otherwise stated.  A reference to a paragraph is to a paragraph of this letter unless otherwise stated.

1.2       We write to you as Agent under the Facility Agreement to seek temporary waivers and modifications of certain parts of the Facility Agreement.   

1.3       Clause 23.1 (Financial covenants) sets out the Financial Covenants with which the Parent must ensure compliance.  Compliance must be at all times, and the Borrowers are required to demonstrate compliance as at 30 June and 31 December each year in accordance with clause 23.2 (Testing of covenants). 

1.4       The circumstances generated locally and globally by the pandemic of the novel coronavirus disease known as COVID-19, including its effect on the demand for and price of coal, have placed unanticipated stresses on the operations of the Group and the predictability of the short and medium term metrics of the business.  If conditions deteriorate further, there is the potential that the Group may be unable to comply with certain of the Financial Covenants for so long as the effects of the pandemic remain current.

2          Request for waivers and modifications

2.1       Under clause 39 (Amendments and waivers) the temporary waivers and modifications described below require the consent of the Majority Lenders.  By clause 39.1(b), once you have the requisite consents and are so instructed, you may execute this letter on behalf all Finance Parties by way of agreement with the Obligors, as contemplated by paragraph 5.1.

470880862_7

2.2       We seek the consent and agreement of the Agent (acting on the instructions of the Majority Lenders) to the following, where ‘Waiver Period’ means the period from the date of your acceptance of this letter in accordance with paragraph 5.1 (the Acceptance Date) to (and including) the date which is the earlier of:

(a)         the date on which the Parent delivers to the Agent a Compliance Certificate signed by the Chief Executive Officer and Group Chief Financial Officer of the Parent setting out (in reasonable detail) computations demonstrating compliance with the Financial Covenants set out in clause 23.1 (Financial Covenants) as at 30 September 2021 on the basis of the financial reporting described in paragraph 2.13; and

(b)        the date on which the Agent gives notice that the Majority Lenders are satisfied with the matters described in paragraph 2.11 (Distribution) below.

If the Waiver Period has not already ended pursuant to paragraph (a) or (b) above, the Obligors undertake to ensure that a Compliance Certificate is delivered in accordance with paragraph (a) demonstrating compliance with the Financial Covenants no later than 31 October 2021.  A failure to comply with this obligation will be an immediate Event of Default without any remedy period that may otherwise be available pursuant to clause 25.3(b) (Other obligations). 

Margin

2.3       In clause 1.1 (Definitions) the definition of “Margin” is modified during the Waiver Period (and thereafter, but only in connection with any Interest Period that has commenced during or prior to the Waiver Period) by replacing the pricing grid and the subsequent paragraph with the following:

Net Debt to EBITDA in most recent Compliance Certificate	Margin
> 3.50 times	[***] per annum
> 2.50 times and ≤ 3.50 times	[***] per annum
> 2.00 times and ≤ 2.50 times	[***] per annum
> 1.50 times and ≤ 2.00 times	[***] per annum
≤ 1.50 times	[***] per annum

a)   Any change in Margin arising by reason of the delivery of a Compliance Certificate will take effect on the first day of the next applicable Interest Period or Bank Guarantee fee payment date (as applicable) occurring after the date of receipt by the Agent of the applicable Compliance Certificate.

b)   If a Compliance Certificate is not delivered when due, for the purposes of determining the applicable Margin, Net Debt to EBITDA will be assumed to be greater than 3.50 times until a Compliance Certificate is delivered.

Despite paragraph (a) of the definition of Margin, if, upon receipt by the Agent of a Compliance Certificate (prepared on the basis of the Parent’s financial position as at 30 June 2020, or for each Quarter to and including 30 September 2021 (in accordance with paragraph 2.13)), the Margin is to increase in accordance with the above grid, then within 5 Business Days of the receipt by the Agent of the applicable Compliance Certificate, the Borrower will make a true-up payment either to the Agent in connection with Facility A and Facility C for the account of the relevant Lenders or to the relevant Lender in connection with Facility B of an amount that represents the difference between:

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(a)        interest and Bank Guarantee fees paid and payable during the period from (but excluding) the accounting date to which the Compliance Certificate is prepared to the date the increased Margin begins to apply (the “True-Up Period”); and

(b)        interest and Bank Guarantee fees that would have been paid or payable during the True-Up Period had the Margin during the whole of that period been at the higher rate.

For the avoidance of doubt, if, upon receipt of the Compliance Certificate referred to in this paragraph, the Margin is to be decreased in accordance with the Margin grid set out in this paragraph, no amount would be payable by any Finance Party to the Borrower in respect of such decrease in the Margin and the decrease in Margin will occur pursuant to paragraph (a) of the definition of Margin.

Financial Covenants

2.4       The obligation of the Parent under clause 23.1 (Financial covenants) to ensure compliance with the Financial Covenants at all times is waived during the Waiver Period.

2.5       The obligations of the Parent under clauses 22.1 and 22.2 (Financial Statements) to supply Financial Statements and Compliance Certificates to the Agent during the Waiver Period, and the testing regime in clause 23.2 (Testing of covenants), are unaffected by the waiver in paragraph 2.4 (subject, in respect of the contents of Compliance Certificates, to paragraph 2.6).

2.6       The form of Compliance Certificates provided during the Waiver Period need not contain the phrases ‘which does not exceed 2.50 times’ in paragraph 2(a), ‘which is at least 3.00 times’ in paragraph 2(b) or ‘which does not exceed 40%’ in paragraph 2(c), as shown in the Form of Compliance Certificate in Schedule 7 of the Facility Agreement.

2.6A     The Obligors and Finance Parties acknowledge and agree that for the purposes of the calculation of Financial Covenants in the Facility Agreement, in the event that EBITDA for a period is less than USD1, the Financial Covenants will be calculated on the basis that EBITDA is USD1.

Liquidity requirement

2.7       The Obligors and the Agent agree that if a Borrower proposes to utilise Facility A and/or Facility C during the Waiver Period in circumstances where that Utilisation will cause the Available Commitment under Facility A and Facility C, in aggregate, to be less than US$50,000,000, then upon the Borrower giving the Agent a duly completed Utilisation Request that complies with clause 5 (Utilisation – Loans) that, once funded, will have that effect:

(a)         subject only to clause 4.2 (Further conditions precedent), each Lender will make its participation in each Loan requested in that Utilisation Request on the proposed Utilisation Date;

(b)        the Obligors and the Lenders must enter into negotiations for a period of up to 30 days (Negotiation Period) with a view to agreeing terms on which the Majority Lenders would be prepared to continue to provide, fund or maintain all or any of the Facilities;

(c)         if agreement is reached during the Negotiation Period the Obligors must promptly do all acts and execute all documents as the Majority Lenders reasonably require to document, or to protect, preserve or secure the Finance Parties’ rights and interests under, such agreement;

(d)        if agreement is not reached during the Negotiation Period, or if (in the opinion of the Majority Lenders) any of the Obligors do not do all acts and execute all documents as the Majority Lenders reasonably require to document, or to protect, preserve or secure for the Finance Parties’ rights and interests under, any agreement, the Agent, acting on the instruction of the Majority Lenders may by giving written notice to the Borrower:

3

(i)          cancel the whole or any part of a Facility whereupon it will be immediately cancelled; and

(ii)         declare that all or any part of the outstanding Utilisations, together with accrued interest, and all other amounts accrued under the Finance Documents is due and payable whereupon it will be due and payable within 30 days;

(e)         if the Borrower fails to prepay all amounts payable following the giving of a notice under paragraph 2.7(d) within 30 days, that failure will constitute an Event of Default; and

(f)         to avoid doubt, neither the failure to reach agreement during the Negotiation Period nor the giving of a notice under paragraph 2.7(d) constitutes an Event of Default.

During the Negotiation Period and on and from the date of any cancellation pursuant to paragraph 2.7(d)(ii), the consent of the Borrower will not be required for an assignment or novation by an Existing Lender pursuant to clause 26.2 (Conditions of assignment of novation).  

Other Undertakings

2.8       During the Waiver Period, the Obligors undertake to ensure that:

(a)        no Financial Indebtedness is incurred after the Acceptance Date pursuant to clause 24.10 (Financial Indebtedness) in respect of the indebtedness described in paragraph (c), (e), (g) and (m) of the definition of Permitted Financial Indebtedness without the consent of the Majority Lenders (except as provided for in paragraph (d) below);

(b)        no Limited Recourse Financial Indebtedness is incurred after the Acceptance Date pursuant to clause 24.10 (Financial Indebtedness) without the consent of the Majority Lenders;

(c)        the aggregate Financial Indebtedness incurred after the Acceptance Date pursuant to clause 24.10 (Financial Indebtedness) in respect of the indebtedness described in paragraph (d) of the definition of Permitted Financial Indebtedness does not exceed US$10,000,000;

(d)        the Financial Indebtedness incurred after the Acceptance Date pursuant to clause 24.10 (Financial Indebtedness) in respect of indebtedness described in paragraph (m) of the definition of Permitted Financial Indebtedness is limited to the limited recourse discount receivables facility entered into with HSBC in June 2020 for up to USD30,000,000;

(e)        no Security is granted pursuant to paragraphs (d), (g), (h), (s) and (t) of the definition of Permitted Security;

(f)         no Security is granted or permitted to subsist pursuant to paragraph (q) of the definition of Permitted Security if the aggregate principal amount of indebtedness secured by all Security referred to in that paragraph exceeds at any time 3% of Total Tangible Assets;

(g)        the proceeds of disposals made after the Acceptance Date under clause 24.11 (Disposals) in respect of disposals described in paragraphs (b), (c), (h) and (j) of the definition of Permitted Disposal, do not, in aggregate, exceed US$10,000,000.  For the purposes of paragraph (h) of the definition of Permitted Disposal, the “Equity Raising” as defined in the letter between the Agent and the Obligors dated on or about 12 August 2020 is a Permitted Disposal and is excluded from the calculation of the US$10,000,000 threshold; and

  (h)       the financial accommodation extended by one or more Obligors after the Acceptance Date under clause 24.9 (Financial accommodation) in respect of the financial accommodation described in paragraphs (a), (e), (f) and (g) of the definition of Permitted Financial Accommodation, does not, when aggregated with the disposal proceeds described at paragraph 2.8(e), in aggregate, exceed US$10,000,000.

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2.9       Each Obligor undertakes not to participate or enter, or to permit any other Group Member to participate or enter into any sale and leaseback transactions or forward sale or coal prepayment arrangements during the Waiver Period without the consent of the Majority Lenders (except the Permitted Transactions expressly consented to by the Majority Lenders in the letter dated 12 August 2020 to which this is Annexure A).  Any disposal or financial indebtedness permitted by the Facility Agreement or this letter is subject to the restrictions contained in this paragraph 2.9.

2.10      Any funds raised by the Obligors by way of Financial Indebtedness consented to by the Majority Lenders as contemplated by paragraphs 2.8(a) above and the proceeds of Permitted Disposals contemplated by paragraph 2.8(g) must only be applied to working capital or the repayment or prepayment of the amounts owing to the Lenders under the Facility Agreement.

Distributions

2.11      During the Waiver Period the Parent undertakes that it will only make a Distribution if (and only if):

(a)        the Parent delivers to the Agent in form and substance satisfactory to the Majority Lenders, acting reasonably, a compliance certificate signed by 2 Directors of the Parent setting out (in reasonable detail) computations demonstrating compliance (as if no waiver had been granted pursuant to this letter) with the Financial Covenants set out in clause 23.1 (Financial Covenants) as at a date 20 Business Days or less prior to the date on which a Distribution is proposed to be made;

(b)        the Parent delivers to the Agent in form and substance satisfactory to the Majority Lenders, acting reasonably, at the same time that the compliance certificate in sub-paragraph (a) is delivered, a forecast of the Parent’s compliance (as if no waiver had been granted pursuant to this letter) with the Financial Covenants set out in clause 23.1 (Financial Covenants) for the next consecutive 6 Month period; and

(c)        the Majority Lenders, acting reasonably, are satisfied that if the Parent makes that Distribution, no Event of Default or Review Event is continuing or would result from it.

Reporting Requirements

2.12      Without prejudice to the provision of clause 22.4 (Information: miscellaneous), during the Waiver Period the Obligors undertake to supply to the Agent in a form satisfactory to the Agent within 15 Business Days after the last day of each Month:

(a)        a report setting out the performance report in respect of the Australian assets and in respect of the consolidated US assets respectively, including the following details:

(i)              sales production;

(ii)             operating cost per tonne;

(iii)            sales volume;

(iv)            average realised price;

(v)             debtors and creditors balance (including a commentary if there is a + / - 10% deviation of the balance from the immediately preceding report); and

(vi)            stockpiles and inventory of coal; and

(b)        a report outlining the Group’s monthly forecast cashflow and working capital requirements for the period to 30 September 2021 including (if there is a material deviation, which would include + / - 10% of cash flows from operations, from the immediately preceding forecast) a reconciliation of the Group’s forecast cashflow and working capital requirements for that Month against the actual cashflow and working capital requirements of that Month. For the

5

avoidance of doubt, the report shall also set out the consolidated cash balance of the Group and the outstanding debt position of the Group as at the last day of the relevant Month.

2.13      Without prejudice to the provision of clause 22.4 (Information: Miscellaneous), within 60 days after the last day of each Quarter other than 30 September 2021 and within 30 days of the Quarter ending 30 September 2021, the Obligors undertake to supply to the Agent:

(a)        a copy of the completed Form 10-Q filed by the Group with the US Securities and Exchange Commission with respect to that date; and

(b)        a Compliance Certificate as at that date, with the ratios calculated by reference to the Form 10-Q, together with computations (in reasonable detail) (and subject, in respect of the contents of the Compliance Certificate, to paragraph 2.6).  Each such Compliance Certificate shall be signed by the Chief Executive Officer and Group Chief Financial Officer of the Parent. 

2.14      The Obligors undertake to provide all Lenders by no earlier than 15 November 2020 and no later than 15 December 2020, updated board approved financial model (updated from that previously provided to the Lenders) and board approved capital management plan (in a form which must be provided by the Agent to the Borrower following consultation with the Borrower on or before 15 October 2020). 

Representations

2.15      This letter and the supplemental information provided to the Agent in connection with it comprise disclosure, to the extent of their contents, for the purposes of the representations in clause 21.9 (Disclosure) and 21.10(c) (No misleading information).    

2.16      Except as to matters expressly waived in this letter, each Obligor repeats the Repeating Representations on the date of its execution of this letter by reference to the facts and circumstances then existing.

2.17      Each Obligor on the date of this letter represents and warrants to each Finance Party that no Finance Party has or will be paid any additional fee or Margin or other payment other than as stated in this letter in connection with the waivers granted pursuant to this letter. Each Obligor undertakes that it will not make any such payment.  

2.18      Each Obligor incorporated in Australia represents and warrants that its constitution has not been amended or repealed since last provided to the Agent on or about 24 October 2018, except as approved by the Agent.

Material Adverse Effect

2.19      Any Event of Default under clause 25.17 (Material Adverse Effect) arising by reason of paragraph (a) or (b) of the definition of Material Adverse Effect which may have occurred or be continuing as at 12 August 2020 as a result of COVID-19 related events that have occurred on or before that date is waived.

Additional Rights

2.20      The Obligors acknowledge and agree that at any time during the Waiver Period any Existing Lender may assign any of its rights or novate any of its rights and obligations under the Finance Documents to a New Lender without the consent of the Borrower.

3          Administration Fee and other conditions

3.1       In consideration of the waivers and modifications sought in this letter, the Obligors undertake to pay to you as Agent, for the account of each Lender who has confirmed its acceptance of this waiver

6

letter to you as Agent by 5.00pm on the 5th Business Day after the Acceptance Date, an administration fee (in an amount as agreed between the parties) on the Acceptance Date. That fee will be paid in the currency or currencies in which a Lender’s Commitments are denominated and shall be payable by the Obligors to the Agent within 10 Business Days of the Acceptance Date.

3.2       The Obligors undertake to pay promptly on demand the fees, costs and expenses incurred by the Lenders and the Agent in the preparation, negotiation and execution of this letter (including legal fees and expenses) pursuant to clause 19.2 (Amendment costs).  

3.3       Within 20 Business Days of the Acceptance Date, the Obligors must procure in form and substance satisfactory to the Agent legal opinions of:

(i)          Sullivan & Cromwell LLP, as New York counsel to the Parent and the Obligors; and

(ii)         Dinsmore & Shohl LLP, as West Virginia counsel to the Parent and the Obligors,

3.4       in each case regarding US law matters with respect to the Obligors and their entry into this letter. A failure to comply with this undertaking within the time required will be an Event of Default and no remedy periods under the Facility Agreement will apply.

4          General 

4.1       This letter is issued by the Parent, the Original Borrower and all other Obligors. 

4.2       Each Obligor acknowledges that, except as expressly provided for in this letter (or any other Finance Document):

(a)        no other amendments, waivers or consents are made by this document to the Facility Agreement or any other Finance Document;

(b)        this letter does not affect any other right a Lender may have; and

(c)        all provisions of the Facility Agreement and any other Finance Document remain in full force and effect.

4.3       Each Obligor acknowledges and confirms that:

(a)        except as expressly provided for in this letter, the terms of this letter do not affect or prejudice the obligations of any Obligor under any Facility Agreement or any other Finance Document; and

(b)        each guarantee and security provided by it and security granted by it continues in full force and effect.

4.4       In the event of any inconsistency between this letter and the Facility Agreement, the terms of this letter will prevail to the extent of that inconsistency.

4.5       The person who signs this letter on behalf of the Obligors does so as the duly appointed attorney of each Australian Obligor and duly authorized signatory of each US Obligor and has no notice of revocation of that appointment or authority with respect to any Obligor.

4.6       The Agent acknowledges that the Parent has advised that it intends to publicly file this letter with the U.S. Securities and Exchange Commission. The Agent consents on behalf of itself and the Majority Lenders to the public filing of this letter with the U.S. Securities and Exchange Commission on the condition that the Parent redacts any fee information and uses its best endeavours to ensure that there is a redaction of the any margin information set out in paragraph 2.3 and paragraph 3.1 of Annexure A as part of the public filing.

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5          Acceptance 

5.1       If the Majority Lenders agree to the above and instruct you accordingly, please acknowledge that agreement by executing this letter and returning it to us.  You and the Obligors acknowledge and agree that the waivers and modifications described in this letter come into effect upon your so doing.

5.2       This letter and any agreement formed by its acceptance are governed by the laws of Queensland and each party irrevocable submits to the non-exclusive jurisdiction of the courts of Queensland.

5.3       Once accepted, this letter is a Finance Document under the Facility Agreement.

5.4       This letter may be signed in any number of counterparts.  Each counterpart constitutes an original of this letter, all of which together constitute one instrument. This letter is intended to bind all parties to it.  In the event it is not binding on one party, the parties agree that it will be binding on none of them

5.5       The parties enter into this letter in consideration of, among other things, the mutual promises contained in this letter.

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EX-15.1

 

EXHIBIT 15.1

ACKNOWLEDGMENT OF ERNST & YOUNG,

INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

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

We are aware of the incorporation by reference in the following Registration Statements (including all amendments thereto) of Coronado Global Resources Inc. (the “Company”):

Form S-3 No. 333-239730

Form S-8 No. 333-236597 and No. 333-249566

of our review report dated November 10, 2020 relating to the unaudited condensed consolidated interim financial statements of the Company that are included in its Form 10-Q for the quarter ended September 30, 2020.

/s/ Ernst & Young

Brisbane, Australia

November 10, 2020

Coronado Global Resources Inc. Form 10-Q September 30, 20201

EX-31.1

 

EXHIBIT 31.1

CERTIFICATION

I, Garold Spindler, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Coronado Global Resources Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and have:

(a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) [omitted]

(c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: November 10, 2020.	/s/ Garold Spindler
	Garold Spindler
	Managing Director and Chief Executive Officer

Coronado Global Resources Inc. Form 10-Q September 30, 20201

EX-31.2

 

EXHIBIT 31.2

CERTIFICATION

I, Gerhard Ziems, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Coronado Global Resources Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and have:

(a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) [omitted]

(c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: November 10, 2020.	/s/ Gerhard Ziems
	Gerhard Ziems
	Group Chief Financial Officer

Coronado Global Resources Inc. Form 10-Q September 30, 20201

EX-32.1

 

EXHIBIT 32.1

CERTIFICATIONS PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Coronado Global Resources Inc. (the “Company”) on Form 10-Q for the quarterly period ended September 30, 2020, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), each of the undersigned officers of the company certifies, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to such officer’s knowledge:

1.The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2.The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company as of the dates and for the periods expressed in the Report.

/s/ Garold Spindler

Garold Spindler

Managing Director and Chief Executive Officer

/s/ Gerhard Ziems

Gerhard Ziems

Group Chief Financial Officer

Date: November 10, 2020.

The foregoing certification is being furnished solely pursuant to 18 U.S.C. Section 1350 and is not being filed as part of the Report or as a separate disclosure document.

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff on request.

Coronado Global Resources Inc. Form 10-Q September 30, 20201

EX-95.1

 

Exhibit 95.1

Mine Safety Disclosures

Safety is the cornerstone of our Company’s values and is the number one priority for all employees at Coronado Global Resources. Our mining operation at Curragh, located in Australia, is subject to regulation by the Queensland Department of Natural Resources, Mine and Energy, or DNRME, under the Coal Mining Safety and Health Act 1999 (Qld). The operation of our mines located in the United States is subject to regulation by the Mine Safety and Health Administration, or MSHA, under the Federal Mine Safety and Health Act of 1977, or the Mine Act. MSHA inspects these mines on a regular basis and issues various citations and orders when it believes a violation has occurred under the Mine Act. We present information below regarding certain mining safety and health citations that MSHA has issued with respect to our mining operations. In evaluating this information, consideration should be given to factors such as: (i) the number of citations and orders will vary depending on the size of the mine; (ii) the number of citations issued will vary from inspector to inspector and mine to mine; and (iii) citations and orders can be contested and appealed and, in that process, are often reduced in severity and amount, and are sometimes dismissed. Since MSHA is a branch of the U.S. Department of Labor, its jurisdiction only applies to our operations in the United States.  As such, the mine safety disclosures included herein do not contain information related to our Australian mines.

Under the Dodd-Frank Act, each operator of a coal or other mine is required to include certain mine safety results within its periodic reports filed with the Securities and Exchange Commission, or the SEC. As required by the reporting requirements included in §1503(a) of the Dodd-Frank Act and Item 104 of Regulation S-K (17 CFR 229.104), we present the following items regarding certain mining safety and health matters, for the quarter ended September 30, 2020, for each of our mine locations that are covered under the scope of the Dodd-Frank Act.

The table that follows reflects citations and orders issued to us by MSHA during the quarter ended September 30, 2020.  The table only includes those mines that were issued orders or citations during this period, and commensurate with SEC regulations, does not reflect orders or citations issued to independent contractors working at our mines.  The proposed assessments for the quarter ended September 30, 2020, were retrieved from the MSHA Data Retrieval System, or MSHA DRS, as of October 2, 2020.

		(A)	(B)	(C)	(D)	(E)	(F)	(G)
MSHA Mine ID No.	Mine Name (1)(2)(3)	Section 104 S&S Citations	Section 104(b) Orders	Section 104(d) Citations and Orders	Section 110(b)(2) Violations	Section 107(a) Orders	Total Dollar Value of MSHA Assessments Proposed ($ Thousands)	Total Number of Mining Related Fatalities
4404856	Buchanan Mine #1	11	—	—	—	—	$11.2	—
4609172	Mountaineer Pocahontas No. 1 Mine	—	—	—	—	—	$0.3	—
4609217	Powellton #1 Mine	29	—	—	—	—	$99.1	—
4609319	Lower War Eagle	14	1	—	—	—	$26.9	—
4609563	Eagle No. 1 Mine	4	—	—	—	—	$3.0	—
4609084	Laurel Fork Mine	—					$0.1
4609246	Kuhn Ridge	—	—	—	—	—	—	—
	Total:	58	1	—	—	—	$140.6	—

(1)The definition of “mine” under Section 3 of the Mine Act includes the mine, as well as other items used in, or to be used in, or resulting from, the work of extracting coal, such as land, structures, facilities, equipment, machines, tools and coal preparation facilities. Also, there are instances where the mine name per the MSHA system differs from the mine name utilized by us.

Coronado Global Resources Inc. Form 10-Q September 30, 20201

(2)Idle facilities are not included in the table above unless they received a citation, order or assessment by MSHA during the current quarterly reporting period or are subject to pending legal actions.

(3)During the quarter ended September 30, 2020, none of the Company’s mines have received written notice from MSHA of a pattern of violations or the potential to have such a pattern of violations of mandatory health or safety standards that are of such nature as could have significantly and substantially contributed to the cause and effect of coal or other mine health or safety standards under section 104(e) of the Mine Act.

References used in the table above are as follows:

A.The total number of violations of mandatory health or safety standards that could significantly and substantially contribute to the cause and effect of a coal or other mine safety or health hazard under section 104 of the Mine Act (30 U.S.C. 814) for which the operator received a citation from MSHA.

B.The total number of orders issued under section 104(b) of the Mine Act (30 U.S.C. 814(b)).

C.The total number of citations and orders for unwarrantable failure of the mine operator to comply with mandatory health or safety standards under section 104(d) of the Mine Act (30 U.S.C. 814(d)).

D.The total number of flagrant violations under section 110(b)(2) of the Mine Act.

E.The total number of imminent danger orders issued under section 107(a) of the Mine Act (30 U.S.C. 817(a)).

F.The total dollar value of proposed assessments from MSHA under the Mine Act (30 U.S.C. 801 et seq.).

G.The total number of mining-related fatalities.

The table below presents legal actions pending before the Federal Mine Safety and Health Review Commission, or FMSHRC, for each of the Company’s mines as of September 30, 2020, together with the number of legal actions initiated and the number of legal actions resolved during the quarter ended September 30, 2020.

		Legal Actions Pending as of Last Day of Quarter (September 30, 2020) (1)
MSHA Mine ID No.	Mine Name	Contests of Citations and Orders (Subpart B)	Contests of Proposed Penalties (Subpart C)	Complaints for Compensation (Subpart D)	Complaints of Discharge, Discrimination or Interference (Subpart E)	Applications of Temporary Relief (Subpart F)	Appeals of Judges’ Decisions or Orders (Subpart H)	Legal Actions Initiated During Quarter	Legal Actions Resolved During Quarter
4404856	Buchanan Mine #1	—	2	—	—	—	—	3	3
4609084	Laurel Fork Mine	—	1	—	—	—	—	1	—
4609563	Eagle No. 1 Mine	—	1	—	—	—	—	1	2
4609101	Toney Fork Surface Mine	—	—	—	—	—	—	—	—
4609217	Powellton #1 Mine	—	—	—	—	—	—	—	2
4609319	Lower War Eagle	—	1	—	—	—	—	1	1
	Total:	—	5	—	—	—	—	6	8

(1)The legal actions pending shown in the table above have been categorized by type of proceeding with reference to the procedural rules established by the FMSHRC under 29 CFR Part 2700. Reference to the applicable Subparts under this Rule are listed in the columns above.

Coronado Global Resources Inc. Form 10-Q September 30, 20202

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Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2020	Oct. 31, 2020
Document and Entity Information [Abstract]
Document Type	10-Q
Document Fiscal Period Focus	Q3
Amendment Flag	false
Document Fiscal Year Focus	2020
Document Period End Date	Sep. 30, 2020
Document Transition Report	false
Document Quarterly Report	true
Entity Tax Identification Number	83-1780608
Entity Registrant Name	Coronado Global Resources Inc.
Entity File Number	1-16247
Entity Incorporation State Country Code	DE
Entity Central Index Key	0001770561
Entity Address Address Line1	Level 33, Central Plaza One
Entity Address Address Line 2	345 Queen Street
Entity Address City Or Town	Brisbane, Queensland
Entity Address Country	AU
Entity Address Postal Zip Code	4000
Current Fiscal Year End Date	--12-31
City Area Code	61
Local Phone Number	7 3031 7777
Entity Common Stock, Shares Outstanding		138,387,890
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false

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Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Current assets:
Cash and restricted cash	$ 14,659	$ 26,553
Trade receivables	187,725	133,297
Related party trade receivables	92,043	86,796
Income tax receivable	0	897
Inventories	126,929	162,170
Other current assets	47,744	44,109
Total current assets	469,100	453,822
Non-current assets:
Property, plant and equipment, net	1,543,397	1,632,788
Right of use asset - operating leases, net	21,511	62,566
Goodwill	28,008	28,008
Intangible assets, net	4,267	5,079
Deposits and reclamation bonds	6,254	12,227
Deferred income tax assets	24,264	2,852
Other non-current assets	13,532	17,512
Total assets	2,110,333	2,214,854
Current liabilities:
Accounts payable	40,815	64,392
Accrued expenses and other current liabilities	257,447	238,788
Income tax payable	18,033	29,760
Asset retirement obligations	10,731	10,064
Contingent royalty consideration	0	688
Contract obligations	38,087	36,935
Lease liabilities	9,476	29,685
Other current financial liabilities	24,897	5,894
Total current liabilities	399,486	416,206
Non-current liabilities:
Asset retirement obligations	133,324	121,710
Contract obligations	181,611	204,877
Deferred consideration liability	193,753	174,605
Interest bearing liabilities	287,625	330,000
Other financial liabilities	2,405	1,546
Lease liabilities	22,120	48,165
Contingent royalty consideration	0	855
Deferred income tax liabilities	49,207	47,973
Other non-current liabilities	926	976
Total liabilities	1,270,457	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 September 30, 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 September 30, 2020 and December 31, 2019	0	0
Additional paid-in capital	992,075	820,247
Accumulated other comprehensive losses	(56,364)	(45,206)
(Accumulated losses) retained earnings	(97,434)	91,712
Coronado Global Resources Inc. stockholders' equity	839,661	867,720
Noncontrolling interest	215	221
Total stockholders' equity	839,876	867,941
Total liabilities and stockholders' equity	$ 2,110,333	$ 2,214,854

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Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2020	Dec. 31, 2019
Statement of Financial Position [Abstract]
Common stock, par value per share (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	1,000,000,000	1,000,000,000
Common stock, shares issued (in shares)	138,387,890	96,651,692
Common stock, shares outstanding (in shares)	138,387,890	96,651,692
Preferred stock, par value per share (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized (in shares)	100,000,000	100,000,000
Preferred stock, shares issued (in shares)	1	1
Preferred stock, shares outstanding (in shares)	1	1

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Condensed Consolidated Statements of Operations and Comprehensive Income - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Revenues:
Revenues	$ 376,385,000	$ 535,841,000	$ 1,090,051,000	$ 1,770,176,000
Costs and expenses:
Cost of coal revenues (exclusive of items shown separately below)	263,858,000	264,585,000	745,203,000	798,281,000
Depreciation, depletion and amortization	48,693,000	39,855,000	135,542,000	125,134,000
Freight expenses	50,590,000	36,973,000	133,475,000	126,335,000
Stanwell rebate	25,157,000	40,172,000	82,571,000	134,846,000
Other royalties	21,697,000	35,815,000	65,151,000	129,237,000
Selling, general, and administrative expenses	6,785,000	8,233,000	20,138,000	26,544,000
Total costs and expenses	416,780,000	425,633,000	1,182,080,000	1,340,377,000
Operating income	(40,395,000)	110,208,000	(92,029,000)	429,799,000
Other income (expenses):
Interest expense, net	(12,207,000)	(9,319,000)	(36,528,000)	(26,583,000)
Impairment of assets	0	0	(63,111,000)	0
Other, net	(361,000)	(1,172,000)	(4,846,000)	(130,000)
Total other income (expense), net	(12,568,000)	(10,491,000)	(104,485,000)	(26,713,000)
(Loss) income before tax	(52,963,000)	99,717,000	(196,514,000)	403,086,000
Income tax benefit (expense)	11,169,000	(30,618,000)	31,525,000	(119,661,000)
Net (loss) income	(41,794,000)	69,099,000	(164,989,000)	283,425,000
Less: Net loss attributable to noncontrolling interest	(2,000)	(2,000)	(6,000)	(6,000)
Net (loss) income attributable to Coronado Global Resources Inc.	(41,792,000)	69,101,000	(164,983,000)	283,431,000
Other comprehensive income, net of income taxes:
Foreign currency translation adjustment	14,867,000	(13,128,000)	461,000	(14,193,000)
Net gain (loss) on cash flow hedges, net of tax	3,027,000	(4,167,000)	(11,619,000)	2,305,000
Total other comprehensive income gain (loss)	17,894,000	(17,295,000)	(11,158,000)	(11,888,000)
Total comprehensive (loss) income	(23,900,000)	51,804,000	(176,147,000)	271,537,000
Less: Net loss attributable to noncontrolling interest	(2,000)	(2,000)	(6,000)	(6,000)
Total comprehensive (loss) income attributable to Coronado Global Resources, Inc.	$ (23,898,000)	$ 51,806,000	$ (176,141,000)	$ 271,543,000
(Loss) earnings per share of common stock
Basic	$ (0.37)	$ 0.71	$ (1.62)	$ 2.93
Dilutive	$ (0.37)	$ 0.71	$ (1.62)	$ 2.93
Coal Revenues [Member]
Revenues:
Revenues	$ 349,686,000	$ 422,174,000	$ 955,385,000	$ 1,341,503,000
Coal Revenues From Related Parties [Member]
Revenues:
Revenues	17,051,000	103,600,000	106,169,000	396,758,000
Other Revenues [Member]
Revenues:
Revenues	$ 9,648,000	$ 10,067,000	$ 28,497,000	$ 31,915,000

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Condensed Consolidated Statements of Stockholders' Equity - USD ($)	Total	Common Stock [Member]	Preferred Stock [Member]	Additional Paid in Capital [Member]	Accumulated Other Comprehensive Loss [Member]	(Accumulated losses) Retained earnings [Member]	Noncontrolling Interest [Member]
Balance, beginning of period at Dec. 31, 2018	$ 1,253,808,000	$ 967,000		$ 1,107,948,000	$ (49,609,000)	$ 194,220,000	$ 282,000
Balance, beginning of period, shares at Dec. 31, 2018		96,651,692	1
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	96,820,000					96,820,000
Other comprehensive (loss) income (net of tax)	5,021,000				5,021,000
Total comprehensive (loss) income	101,841,000				5,021,000	96,820,000
Dividends paid	(299,682,000)					(299,682,000)
Balance, end of period at Mar. 31, 2019	1,055,967,000	$ 967,000		1,107,948,000	(44,588,000)	(8,642,000)	282,000
Balance, end of period, shares at Mar. 31, 2019		96,651,692	1
Balance, beginning of period at Dec. 31, 2018	1,253,808,000	$ 967,000		1,107,948,000	(49,609,000)	194,220,000	282,000
Balance, beginning of period, shares at Dec. 31, 2018		96,651,692	1
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	283,425,000
Other comprehensive (loss) income (net of tax)	(11,888,000)
Total comprehensive (loss) income	271,537,000
Balance, end of period at Sep. 30, 2019	829,522,000	$ 967,000		820,171,000	(61,497,000)	69,605,000	276,000
Balance, end of period, shares at Sep. 30, 2019		96,651,692	1
Balance, beginning of period at Mar. 31, 2019	1,055,967,000	$ 967,000		1,107,948,000	(44,588,000)	(8,642,000)	282,000
Balance, beginning of period, shares at Mar. 31, 2019		96,651,692	1
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	117,506,000					117,510,000	(4,000)
Other comprehensive (loss) income (net of tax)	386,000				386,000
Total comprehensive (loss) income	117,892,000				386,000	117,510,000	(4,000)
Share-based compensation for equity classified awards	93,000			93,000
Balance, end of period at Jun. 30, 2019	1,173,952,000	$ 967,000		1,108,041,000	(44,202,000)	108,868,000	278,000
Balance, end of period, shares at Jun. 30, 2019		96,651,692	1
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	69,099,000					69,101,000	(2,000)
Other comprehensive (loss) income (net of tax)	(17,295,000)				(17,295,000)
Total comprehensive (loss) income	51,804,000				(17,295,000)	69,101,000	(2,000)
Share-based compensation for equity classified awards	150,000			150,000
Dividends paid	(108,364,000)					(108,364,000)
Return of capital	(288,020,000)			(288,020,000)
Balance, end of period at Sep. 30, 2019	$ 829,522,000	$ 967,000		820,171,000	(61,497,000)	69,605,000	276,000
Balance, end of period, shares at Sep. 30, 2019		96,651,692	1
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock, net, shares	96,651,692
Balance, beginning of period at Dec. 31, 2019	$ 867,941,000	$ 967,000		820,247,000	(45,206,000)	91,712,000	221,000
Balance, beginning of period, shares at Dec. 31, 2019		96,651,692	1
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	(8,865,000)					(8,863,000)	(2,000)
Other comprehensive (loss) income (net of tax)	(87,759,000)				(87,759,000)
Total comprehensive (loss) income	(96,624,000)				(87,759,000)	(8,863,000)	(2,000)
Share-based compensation for equity classified awards	148,000			148,000
Dividends paid	(24,163,000)					(24,163,000)
Balance, end of period at Mar. 31, 2020	747,302,000	$ 967,000		820,395,000	(132,965,000)	58,686,000	219,000
Balance, end of period, shares at Mar. 31, 2020		96,651,692	1
Balance, beginning of period at Dec. 31, 2019	867,941,000	$ 967,000		820,247,000	(45,206,000)	91,712,000	221,000
Balance, beginning of period, shares at Dec. 31, 2019		96,651,692	1
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	(164,989,000)
Other comprehensive (loss) income (net of tax)	(11,158,000)
Total comprehensive (loss) income	(176,147,000)
Balance, end of period at Sep. 30, 2020	839,876,000	$ 1,384,000		992,075,000	(56,364,000)	(97,434,000)	215,000
Balance, end of period, shares at Sep. 30, 2020		138,387,890	1
Balance, beginning of period at Mar. 31, 2020	747,302,000	$ 967,000		820,395,000	(132,965,000)	58,686,000	219,000
Balance, beginning of period, shares at Mar. 31, 2020		96,651,692	1
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	(114,330,000)					(114,328,000)	(2,000)
Other comprehensive (loss) income (net of tax)	58,707,000				58,707,000
Total comprehensive (loss) income	(55,623,000)				58,707,000	(114,328,000)	(2,000)
Share-based compensation for equity classified awards	248,000			248,000
Balance, end of period at Jun. 30, 2020	691,927,000	$ 967,000		820,643,000	(74,258,000)	(55,642,000)	217,000
Balance, end of period, shares at Jun. 30, 2020		96,651,692	1
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	(41,794,000)					(41,792,000)	(2,000)
Other comprehensive (loss) income (net of tax)	17,894,000				17,894
Total comprehensive (loss) income	(23,900,000)				17,894,000	(41,792,000)	(2,000)
Issuance of common stock, net	171,585,000	$ 417,000		171,168,000
Share-based compensation for equity classified awards	264,000			264,000
Balance, end of period at Sep. 30, 2020	$ 839,876,000	$ 1,384,000		$ 992,075,000	$ (56,364,000)	$ (97,434,000)	$ 215,000
Balance, end of period, shares at Sep. 30, 2020		138,387,890	1
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock, net, shares	138,387,890	41,736,198

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Condensed Consolidated Statements of Stockholders' Equity (Parenthetical) - USD ($) $ in Thousands	3 Months Ended						9 Months Ended
	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Sep. 30, 2020
Statement of Stockholders' Equity [Abstract]
Net deferred income tax	$ 1,107	$ 6,534	$ (13,781)	$ 1,796	$ 383	$ 2,391	$ (6,140)

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Condensed Consolidated Statements of Cash Flows - USD ($)	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Cash flows from operating activities:
Net (loss) income	$ (164,989,000)	$ 283,425,000
Adjustments to reconcile net income to cash and restricted cash provided by operating activities:
Depreciation, depletion and amortization	135,542,000	125,259,000
Impairment of assets	63,111,000	0
Amortization of right of use asset - operating leases	11,092,000	16,978,000
Amortization of deferred financing costs	4,134,000	3,108,000
Non-cash interest expense	16,180,000	14,725,000
Amortization of contract obligations	(23,575,000)	(25,760,000)
Loss on disposal of property, plant and equipment	62,000	(267,000)
Decrease in contingent royalty consideration	(1,543,000)	(11,296,000)
Gain on operating lease derecognition	(1,180,000)	0
Equity-based compensation expense	660,000	243,000
Deferred income taxes	(13,554,000)	18,031,000
Reclamation of asset retirement obligations	(2,324,000)	(2,790,000)
Change in estimate of asset retirement obligations	0	(125,000)
Changes in operating assets and liabilities:
Accounts receivable - including related party receivables	(63,645,000)	27,668,000
Inventories	35,719,000	(73,741,000)
Other current assets	(2,912,000)	(6,310,000)
Accounts payable	(24,541,000)	7,675,000
Accrued expenses and other current liabilities	8,859,000	13,108,000
Operating lease liabilities	(12,607,000)	(18,041,000)
Change in other liabilities	(2,584,000)	66,721,000
Net cash (used in) provided by operating activities	(38,095,000)	438,611,000
Cash flows from investing activities:
Capital expenditures	(85,237,000)	(117,369,000)
Purchase of deposits and reclamation bonds	(52,000)	(947,000)
Redemption of deposits and reclamation bonds	6,026,000	5,000
Net cash used in investing activities	(79,263,000)	(118,311,000)
Cash flows from financing activities:
Proceeds from interest bearing liabilities and other financial liabilities	176,953,000	422,599,000
Debt issuance costs and other financing costs	(2,955,000)	(4,082,000)
Principal payments on interest bearing liabilities and other financial liabilities	(216,828,000)	(112,754,000)
Principal payments on finance and lease obligations	(2,387,000)	(994,000)
Payment of contingent purchase consideration	0	(17,660,000)
Dividends paid	(24,162,000)	(408,046,000)
Shareholders' distributions	0	(288,020,000)
Proceeds from stock issuance, net	171,585,000	0
Net cash provided by (used in) financing activities	102,206,000	(408,957,000)
Net decrease in cash and restricted cash	(15,152,000)	(88,657,000)
Effect of exchange rate changes on cash and restricted cash	3,258,000	(1,779,000)
Cash and restricted cash at beginning of period	26,553,000	124,881,000
Cash and restricted cash at end of period	14,659,000	34,445,000
Supplemental disclosure of cash flow information:
Cash payments for interest	17,246,000	9,244,000
Cash paid/(Refund) for taxes	$ (6,431,000)	$ 49,884,000

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Description of Business, Basis of Presentation

9 Months Ended

Sep. 30, 2020

Description of Business, Basis of Presentation [Abstract]

Description of Business, Basis of Presentation

1. Description of Business, Basis of Presentation

(a) Description of the Business

Coronado Global Resources Inc. (together with its subsidiaries, the “Company” or “Coronado”) 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 USA.

(b) Basis of Presentation

The interim unaudited condensed consolidated financial statements have been prepared in accordance with the requirements of the 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 24, 2020.

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, or Coronado, are used interchangeably to refer to Coronado Global Resources Inc. and its subsidiaries, 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 in 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, 2019 has been derived from the Company’s audited consolidated balance sheet at that date. The Company’s results of operations for the three and nine months ended September 30, 2020 are not necessarily indicative of the results that may be expected for future quarters or for the year ending December 31, 2020.

COVID-19

The COVID-19 global pandemic has continued to result in a challenging working environment which has significantly impacted the demand and price for metallurgical coal. Authorities in many countries around the world have implemented numerous and varying measures to reduce the spread and limit the impact of COVID-19, including travel bans and restrictions, quarantines, curfews, stay-at-home orders, business shutdowns and closures. Many countries have implemented multi-stage policies with the goal of re-opening markets and boosting economic activity. These measures have impacted and will continue to impact our mining operations, our customers, employees, suppliers and other third parties with whom we do business. There is considerable uncertainty regarding how current and future health and safety measures implemented in response to the pandemic will impact our business, including whether they will result in further changes in demand for metallurgical coal, increases in operating costs or impacts to our supply chain, and whether measures will result in port closures or border restrictions, each or all of which can impact our ability to produce and sell our coal.

The safety and wellbeing of our workforce remains our highest priority and we continue to manage the potential threat of COVID-19 at our mines and offices. The Company formed a COVID-19 taskforce spanning its operations in Australia and the U.S. and proactively enacted stringent preventative measures to ensure the safety and well-being of employees and contractors during the pandemic. These procedures include increased screenings of employees as they arrive at the workplace, strict adherence to hygiene and social distancing guidelines while at work and also a cleaning and sanitization program for equipment and facilities.

Our operations in the United States, or U.S. Operations, were idled in April and May 2020 due to the COVID-19 induced economic downturn and decline in demand from customers in Europe, South America and North America. While the mines were idled, the Company continued to make shipments to its customers from existing inventories which allowed the Company to meet all customer commitments. On June 1, 2020, the Company resumed operations at the Buchanan and Logan mines. Production at these mines has progressively increased in line with demand, with the Buchanan mine now returning to full operating capacity. The Greenbrier mine remains idle and the Company will continue to monitor market developments to evaluate the duration for which the mine will remain idle. To date, there have been a small number of the Company’s workforce who have tested positive for COVID-19 in our U.S. Operations. The Company has taken all necessary steps to isolate the affected workers and protect the remaining workforce. There has been no material adverse impact to production.

The global economic slowdown resulting from the effects of COVID-19 has sharply reduced the demand for steel in all markets except for China, where steel production remained elevated during the second and third quarter of 2020. Steel demand in China has been supported by large infrastructure investment, with signs of improvement in discretionary steel demand (e.g. automotive) and property. Globally, steel producers in the third quarter restarted blast furnace operations as demand for steel was underpinned by the automotive and constructions sectors. Blast furnace restarts accelerated in September with numerous steel mills returning to operation in Japan, South Korea, Europe and Brazil. Demand for steel in India has risen to near pre-lockdown levels. Overall, the supply and demand constraints in respect of the global impacts of COVID-19 on our operations in Australia, or Australian Operations, has been limited due to the unique position of the Curragh mine as a strategic supplier of ‘base load’ metallurgical coal for coke blends.

In response to the global impacts of COVID-19 on the demand for steel and the resulting impact on the price and demand for metallurgical coal, the Company has taken steps to safeguard its operations, strengthen its balance sheet and increase liquidity by undertaking a capital raising by issuing additional equity on the ASX, reducing capital expenditures and managing operating costs in a disciplined manner. During the third quarter, the Company reduced its net debt by $131.7 million to $273.2 million and had $262.4 million undrawn and available under the Syndicated Facility Agreement, or SFA, subject to a modified liquidity buffer of $50.0 million, and cash balances (excluding restricted cash) of $14.4 million as at September 30, 2020. Refer to Note 6 “Capital Structure” and Note 13 “Interest Bearing Liabilities”.

Due to uncertainties surrounding the impact of the COVID-19 pandemic on global markets into the future, the Company cannot currently predict the extent of any potential material adverse impact to its business, results of operations, financial condition and ability to comply with financial covenants under the SFA.

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Summary of Significant Accounting Policies

9 Months Ended

Sep. 30, 2020

Summary of Significant Accounting Policies [Abstract]

Summary of Significant Accounting Policies

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, 2019 included in Coronado Global Resources Inc.’s Annual Report on Form 10-K filed with the SEC and ASX on February 24, 2020.

(a) Newly Adopted Accounting Standards

Financial Instruments - Credit Losses. In June 2016, the FASB issued ASU 2016-13 related to the measurement of credit losses on financial instruments. The pronouncement replaces the incurred loss methodology to record credit losses with a methodology that reflects the expected credit losses for financial assets not accounted for at fair value with gains and losses recognized through net income.

On January 1, 2020, the Company adopted ASU 2016-13. The cumulative-effect adjustment upon adoption was not material to the Company’s results of operations and its cash flows. Changes to the Company’s accounting policies as a result of adoption are discussed below.

The Company extends trade credit to its customers in the ordinary course of business. Trade receivables and related party receivables are recorded initially at fair value and subsequently at amortized cost, less any Expected Credit Losses, or ECL. Trade receivables from provisionally priced sales are carried at fair value to profit or loss.

For trade and related party receivables carried at amortized cost, the Company determines ECL on a forward-looking basis. The amount of ECL is updated at each reporting date to reflect changes in credit risk since initial recognition of the respective financial instrument. The Company recognizes the lifetime ECL. The ECL is estimated based on the Company’s historic credit loss experience, adjusted for factors that are specific to the financial asset, general economic conditions, financial asset type, term and an assessment of both the current as well as forecast conditions at the reporting date, modified for credit enhancements such as letters of credit obtained. To measure ECL, trade and related party receivables have been grouped based on shared credit risk characteristics and the days past due.

The Company considers an event of default has occurred when a financial asset is significantly past due or other factors indicate that the debtor is unlikely to pay amounts owed to the Company. A financial asset is credit impaired when there is evidence that the counterparty is in significant financial difficulty or a breach of contract, such as default or past due event

has occurred. The Company writes off a financial asset when there is information indicating there is no realistic prospect of recovery of the asset from the counterparty. The amount of the impairment loss is recognized in the consolidated statement of operations and other comprehensive income within “other, net”. Subsequent recoveries of amounts previously written off are credit against “other, net” in the consolidated statement of operations and other comprehensive income.

Fair Value Measurement. In August 2018, the FASB issued ASU 2018-13, which amended the fair value measurement guidance by removing and modifying certain disclosure requirements, while also adding new disclosure requirements.

On January 1, 2020, the Company adopted ASU 2018-13. The amendments on changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements and the narrative description of measurement uncertainty were applied prospectively for only the most recent interim period presented. All other amendments were applied retrospectively to all periods presented. The adoption of ASU 2018-13 did not have a material impact on the Company’s unaudited condensed consolidated financial statements.

Intangibles – Goodwill and Other: Simplifying the Test for Goodwill Impairment. In January 2018, the FASB issued ASU 2017-04, which eliminates step two from the goodwill impairment test. Under ASU 2017-04, an entity should recognize an impairment charge for the amount by which the carrying amount of a reporting unit exceeds its fair value up to the amount of goodwill allocated to that reporting unit.

On January 1, 2020, the Company adopted ASU 2017-04. Changes to the Company’s accounting policies as a result of adoption are discussed below.

Goodwill is an asset representing the future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized. Goodwill is not amortized but is reviewed for impairment annually or when circumstances or other events indicate that impairment may have occurred.

The Company makes a qualitative assessment of whether it is more likely than not that a reporting unit’s fair value is less than its carrying amount. Circumstances that are considered as part of the qualitative assessment and could trigger a quantitative impairment test include but are not limited to: a significant adverse change in the business climate; a significant adverse legal judgment; adverse cash flow trends; an adverse action or assessment by a government agency; unanticipated competition; and a significant restructuring charge within a reporting unit. If a quantitative assessment is determined to be necessary, the Company compares the fair value of a reporting unit with its carrying amount, including goodwill. If the carrying amount of a reporting unit exceeds its fair value, the Company recognizes an impairment charge for the amount by which the carrying amount exceeds its fair value to the extent of the amount of goodwill allocated to that reporting unit.

The Company defines reporting units at the business unit level. For purposes of testing goodwill for impairment, goodwill has been allocated to the reporting units to the extent it relates to each reporting unit.

(b) Accounting Standards Not Yet Implemented

“Income Taxes - Simplifying the Accounting for Income Taxes” - In December 2019, the FASB issued ASU 2019-12, which is intended to simplify various aspects related to accounting for income taxes. ASU 2019-12 removes certain exceptions to the general principles in Topic 740 and clarifies and amends existing guidance to improve consistent application. ASU 2019-12 will be effective for interim and annual periods beginning after December 15, 2020. The Company is currently evaluating the impact the adoption of ASU 2019-12 will have on its consolidated financial statements.

(c) Reclassification

Certain amounts in the prior period Condensed Consolidated Balance Sheet have been reclassified to conform to the presentation of the current period financial statements. These related to the reclassification of four reportable segments into the current two reportable segments discussed in Note 3 “Segment information”. These reclassifications had no effect on the previously reported net income.

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Segment Information

9 Months Ended

Sep. 30, 2020

Segment Information [Abstract]

Segment Information

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 USA. The Australian Operations comprise the 100%-owned Curragh producing mine complex. The U.S. Operations comprise two 100%-owned producing mine complexes (Buchanan and Logan), one 100%-owned temporarily idled mine complex (Greenbrier), two development properties (Pangburn-Shaner-Fallowfield and Russell County) and one idle property (Amonate).

Commencing on January 1, 2020, the Company updated its reportable segments to be the country in which they operate, that is Australia and the United States, in order to align with the manner in which its Chief Operating Decision Maker, or CODM, views the Company’s business for purposes of reviewing performance and allocating resources.

Factors affecting and differentiating the financial performance of each of these two reporting segments generally include coal quality, geology, and coal marketing opportunities, mining and transportation methods and regulatory issues. This is the basis on which internal financial and operational reports are currently prepared and provided to the CODM and reflects how the CODM manages performance and determines the allocation of resources within the Company. The Company believes this method of segment reporting reflects both the way its business segments are currently managed and the way the performance of each segment is evaluated. Comparative disclosures have been restated to a consistent basis.

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.

Adjusted EBITDA is defined as earnings before interest, tax, 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 our segments’ operating performance. “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 consolidated financials.

Reportable segment results as of and for the three and nine months ended September 30, 2020 and 2019 are presented below:

	Australia	United States	Other and Corporate	Total
	($ thousands)
Three months ended September 30, 2020
Total revenues	271,413	104,972	—	376,385
Adjusted EBITDA	2,144	14,413	(7,006)	9,551
Net loss	(28,582)	(12,016)	(1,196)	(41,794)
Total assets	1,106,518	952,167	51,648	2,110,333
Capital expenditures	14,574	8,644	92	23,310
Three months ended September 30, 2019
Total revenues	350,505	185,336	—	535,841
Adjusted EBITDA	94,860	63,051	(8,169)	149,742
Net income (loss)	56,379	27,994	(15,274)	69,099
Total assets	1,114,022	1,004,918	49,418	2,168,358
Capital expenditures	22,981	27,961	—	50,942
Nine Months Ended September 30, 2020
Total revenues	744,968	345,083	—	1,090,051
Adjusted EBITDA	8,406	56,153	(20,063)	44,496
Net loss	(51,483)	(76,889)	(36,617)	(164,989)
Total assets	1,106,518	952,167	51,648	2,110,333
Capital expenditures	33,378	50,561	1,298	85,237
Nine Months Ended September 30, 2019
Total revenues	1,144,689	625,487	—	1,770,176
Adjusted EBITDA	366,568	214,662	(26,134)	555,096
Net income (loss)	216,136	105,404	(38,115)	283,425
Total assets	1,114,022	1,004,918	49,418	2,168,358
Capital expenditures	38,407	78,957	5	117,369

The reconciliation of Adjusted EBITDA to net income attributable to the Company for the three and nine months ended September 30, 2020 and 2019 are as follows:

	Three months ended				Nine Months Ended
	September 30,				September 30,
	2020		2019		2020		2019
	(US$ thousands)				(US$ thousands)
Net (loss) income	$	(41,794)	$	69,099	$	(164,989)	$	283,425
Depreciation, depletion and amortization		48,693		39,855		135,542		125,134
Interest expense (net of income)		12,207		9,319		36,528		26,583
Other foreign exchange losses		1,614		851		5,829		293
Income tax (benefit) expense		(11,169)		30,618		(31,525)		119,661
Impairment of assets		—		—		63,111		—
Consolidated adjusted EBITDA	$	9,551	$	149,742	$	44,496	$	555,096

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 September 30, 2020
	Australia	United States	Other and Corporate	Total
	($ thousands)
Product Groups:
Metallurgical coal	233,063	103,401	—	336,464
Thermal coal	29,428	845	—	30,273
Total coal revenue	262,491	104,246	—	366,737
Other(1)	8,922	726	—	9,648
Total	271,413	104,972	—	376,385

	Three months ended September 30, 2019
	Australia	United States	Other and Corporate	Total
	($ thousands)
Product Groups:
Metallurgical coal	318,634	172,284	—	490,918
Thermal coal	23,582	11,274	—	34,856
Total coal revenue	342,216	183,558	—	525,774
Other(1)	8,289	1,778	—	10,067
Total	350,505	185,336	—	535,841

	Nine months ended September 30, 2020
	Australia	United States	Other and Corporate	Total
	($ thousands)
Product Groups
Metallurgical coal	640,893	337,599	—	978,492
Thermal coal	80,079	2,983	—	83,062
Total coal revenue	720,972	340,582	—	1,061,554
Other(1)	23,996	4,501	—	28,497
Total	744,968	345,083	—	1,090,051

	Nine months ended September 30, 2019
	Australia	United States	Other and Corporate	Total
	($ thousands)
Product Groups
Metallurgical coal	1,046,598	579,818	—	1,626,416
Thermal coal	71,563	40,282	—	111,845
Total coal revenue	1,118,161	620,100	—	1,738,261
Other(1)	26,528	5,387	—	31,915
Total	1,144,689	625,487	—	1,770,176

(1) Other revenue for Curragh includes the amortization of the Stanwell non-market coal supply contract obligation liability.

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Impairment of Assets

9 Months Ended

Sep. 30, 2020

Impairment of Assets [Abstract]

Impairment of Assets

4. Impairment of assets

Long-lived assets, such as property, plant, and equipment, and purchased intangible assets subject to amortization, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If circumstances require a long-lived asset or asset group be tested for possible impairment, the Company first compares undiscounted pre-tax cash flows expected to be generated by that asset or asset group to its carrying value. If the carrying value of the long-lived asset or asset group is not recoverable on an undiscounted pre-tax cash flow basis, an impairment is recognized to the extent that the carrying value exceeds its fair value. Fair value is determined through various valuation techniques including discounted cash flow models, quoted market values and third-party independent appraisals, as considered necessary. No impairment losses were recognized for property, plant and equipment or amortizing intangible assets for the years ended December 31, 2019 and 2018.

The following costs are reflected in “Impairment of Assets” in the unaudited Consolidated Statement of Operations and Other Comprehensive income for the nine months ended September 30, 2020:

		Reportable Segment
(US$ thousands)		United States
Property, plant and equipment, net	$	62,481
Right of use asset – operating leases, net		10
Intangible assets, net		620
Total	$	63,111

The Company generally does not view short-term declines in metallurgical coal prices in the markets in which it sells its products as a singular indicator of impairment. However, due to the decline in metallurgical coal prices during the first six months of 2020, the resulting impact on business conditions from COVID-19 and the idling of the Greenbrier mine for an undetermined period, there were indications that the carrying value of the Greenbrier mining asset, in the U.S., exceeded its fair value. As at June 30, 2020, the Company performed an impairment assessment in accordance with the rules of ASC 360 – Property, Plant and Equipment, and determined an impairment charge of $63.1 million reducing the carrying value of Greenbrier’s long-lived assets to approximately $50.0 million. This carrying value remained unchanged as at September 30, 2020, but for ongoing depletion and depreciation charges during the quarter, and as such no further impairment charge was recognized for the three months ended September 30, 2020. The fair value of the Greenbrier mining asset was derived using Level 3 inputs and was primarily driven by estimates of future cash flows based on a combination of historical results adjusted to reflect the Company’s best estimate of future market and operating conditions, including its current life of mine plan, and reserve multiple valuation. The Company concluded that no indicators of impairment or requisite charges were required at any of the Company’s other mining assets.

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Expenses

9 Months Ended

Sep. 30, 2020

Expenses [Abstract]

Expenses

5. Expenses

Other, Net

	Three months ended				Nine Months Ended
	September 30,				September 30,
	2020		2019		2020		2019
	(US$ thousands)				(US$ thousands)
Other foreign exchange losses		(1,614)		(851)		(5,829)		(293)
Other income (expenses)		1,253		(321)		983		163
Total Other, net	$	(361)	$	(1,172)	$	(4,846)	$	(130)

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Capital Structure

9 Months Ended

Sep. 30, 2020

Other Comprehensive Income [Abstract]

Capital Structure

6. Capital Structure

On August 26, 2020, the Company successfully completed a fully underwritten placement of CDIs on the ASX to institutional investors, or the Placement, together with the institutional component of a fully underwritten 2 for 11 pro-rata accelerated non-renounceable entitlement offer, or the Entitlement Offer. On completion, a total of 398,911,490 fully paid new CDIs (representing a beneficial interest in 39,891,149 shares of common stock) were issued at a price of A$0.60 per CDI, resulting in gross proceeds of $171.7 million (A$239.4 million).

On September 15, 2020, the Company successfully completed the retail component of the Entitlement Offer. On completion, a total 18,450,490 fully paid new CDIs (representing a beneficial interest in 1,845,049 shares of common stock) were issued on the ASX at a price of A$0.60 per CDI, resulting in gross proceeds of $8.1 million (A$11.1 million).

As a result of the Placement and Entitlement Offer, 41,736,198 common stock, par value of $0.01 were issued by the Company.

Total proceeds, net of share issuance costs, of $171.6 million were used to repay a portion of drawn balances under the SFA.

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Inventories

9 Months Ended

Sep. 30, 2020

Inventories [Abstract]

Inventories

7.Inventories

(US$ thousands)	September 30, 2020		December 31,2019
Raw coal	$	25,499	$	41,127
Saleable coal		41,678		63,006
Total coal inventories		67,177		104,133
Supplies inventory		59,752		58,037
Total inventories	$	126,929	$	162,170

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Property, Plant and Equipment

9 Months Ended

Sep. 30, 2020

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment

8.Property, Plant and Equipment

(US$ thousands)	September 30, 2020		December 31,2019
Land	$	27,197	$	27,037
Buildings and improvements		83,941		80,658
Plant, machinery, mining equipment and transportation vehicles		965,711		896,392
Mineral rights and reserves		413,755		464,710
Office and computer equipment		5,270		3,977
Mine development		526,492		497,439
Asset retirement obligation asset		82,877		81,520
Construction in process		45,727		80,646
		2,150,970		2,132,379
Less accumulated depreciation, depletion and amortization		607,573		499,591
Net property, plant and equipment	$	1,543,397	$	1,632,788

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Goodwill and Other Intangible Assets

9 Months Ended

Sep. 30, 2020

Goodwill and Other Intangible Assets [Abstract]

Goodwill and Other Intangible Assets

9.Goodwill and Other Intangible AssetsAcquired Intangible Assets

	September 30, 2020
(US$ thousands)	Weighted average amortization period (years)	Gross carrying amount		Accumulated amortization		Net carrying amount
Intangible assets:
Amortizing intangible assets:
Mining permits - Logan	15		1,642		815		827
Mining permits - Buchanan	28		4,000		560		3,440
Total intangible assets		$	5,642	$	1,375	$	4,267
	December 31, 2019
(US$ thousands)	Weighted average amortization period (years)	Gross carrying amount		Accumulated amortization		Net carrying amount
Intangible assets:
Amortizing intangible assets:
Mining permits - Greenbrier	14	$	1,500	$	840	$	660
Mining permits - Logan	15		1,642		756		886
Mining permits - Buchanan	28		4,000		467		3,533
Total intangible assets		$	7,142	$	2,063	$	5,079

Amortization expense is charged using the straight-line method over the useful lives of the respective intangible asset. The aggregate amount of amortization expense for amortizing intangible assets for the three months ended September 30, 2020 and 2019 was $0.1 million and $0.1 million, respectively. The aggregate amount of amortization expense for amortizing intangible assets for the nine months ended September 30, 2020 and 2019 was $0.2 million and $0.2 million, respectively.

Mining permit intangible assets relating to Greenbrier with a carrying value of $0.6 million were fully impaired as at June 30, 2020. Refer to Note 4 “Impairment of assets” for further disclosure.

(b) Goodwill

In connection with the Buchanan acquisition on March 31, 2016, the Company recorded goodwill in the amount of $28.0 million. The balance of goodwill as at both September 30, 2020 and December 31, 2019 was $28.0 million.

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Accrued Expenses and Other Current Liabilities

9 Months Ended

Sep. 30, 2020

Accrued Expenses and Other Current Liabilities [Abstract]

Accrued Expenses and Other Current Liabilities

10. Accrued Expenses and Other Current Liabilities

Accrued expenses and other current liabilities consist of the following:

(US$ thousands)	September 30, 2020		December 31,2019
Wages and employee benefits	$	58,660	$	61,008
Taxes other than income taxes		8,895		3,899
Accrued royalties		36,670		43,468
Accrued freight costs		33,829		30,416
Accrued mining fees		71,556		49,027
Acquisition related accruals		30,564		30,190
Other liabilities		17,273		20,780
Total accrued expenses and other current liabilities	$	257,447	$	238,788

Included within acquisition related accruals is an amount outstanding for stamp duty payable on the Curragh acquisition of $30.6 million (A$43.0 million). This amount was outstanding as at September 30, 2020 and December 31, 2019 pending assessment by the Office of State Revenue in Queensland, Australia.

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Leases

9 Months Ended

Sep. 30, 2020

Leases [Abstract]

Leases

11.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.

On March 31, 2020, the Company amended one of its mining services contracts for mining equipment assets used to provide mining services. On execution of the amendment, right of use assets of $25.9 million and lease liabilities of $27.0 million were derecognized. These mining equipment assets were previously deemed leased assets embedded within the mining service contract.

Information related to the Company’s right-of use assets and related lease liabilities are as follows:

	Three Months Ended				Nine Months Ended
(US$ thousands)	September 30, 2020		September 30, 2019		September 30, 2020		September 30, 2019
Operating lease costs	$	3,300	$	7,671	$	14,650	$	20,532
Cash paid for operating lease liabilities		2,233		6,968		12,607		18,041
Finance lease costs:
Amortization of right of use assets		619		627		1,618		1,848
Interest on lease liabilities		19		47		88		155
Total finance lease costs	$	638	$	674	$	1,706	$	2,003

(US$ thousands)	September 30, 2020		December 31,2019
Operating leases:
Operating lease right-of-use assets	$	21,511	$	62,566
Finance leases:
Property and equipment		4,402		7,881
Accumulated depreciation		(3,645)		(5,144)
Property and equipment, net		757		2,737
Current operating lease obligations		9,382		27,204
Operating lease liabilities, less current portion		22,120		48,165
Total operating lease liabilities		31,502		75,369
Current finance lease obligations		94		2,481
Total Lease liability	$	31,596	$	77,850

	September 30, 2020	December 31, 2019
Weighted Average Remaining Lease Term (Years)
Weighted average remaining lease term – finance leases	0.08	0.67
Weighted average remaining lease term – operating leases	3.47	2.89
Weighted Average Discount Rate
Weighted discount rate – finance lease	6.25%	6.25%
Weighted discount rate – operating lease	7.95%	8.00%

The Company’s operating leases have remaining lease terms of 1 year to 6 years, some of which include options to extend the terms deemed reasonable to exercise. Maturities of lease liabilities as at September 30, 2020, are as follows:

(US$ thousands)	Operating Lease		Finance Lease
Year ending December 31,
2020	$	3,286	$	94
2021		10,176		—
2022		9,061		—
2023		9,223		—
2024		2,925		—
Thereafter		1,650		—
Total lease payments		36,321		94
Less imputed interest		(4,819)		—
Total lease liability	$	31,502	$	94

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Income Taxes	9 Months Ended
	Sep. 30, 2020
Income Taxes [Abstract]
Income Taxes	12.Income Taxes For the nine months ended September 30, 2020 and 2019, 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 effect 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 2020 effective tax rate is 16.0%. The Company had an income tax benefit of $31.5 million for the nine months ended September 30, 2020, comprising a discrete income tax benefit of $4.1 million and income tax benefit of $27.4 million based on a loss before tax of $196.5 million. Income tax expense of $119.7 million for the nine months ended September 30, 2019 was calculated based on an effective tax rate of 29.7% for the period. The Company utilizes the “more likely than not” standard in recognizing a tax benefit in its financial statements. For the nine months ended September 30, 2020 and the year ended December 31, 2019, the Company had $14.2 million of 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 United States and its various states, as well as Australia and its various localities. In the United States and Australia, the first tax return was lodged for the year ended December 31, 2018. On March 27, 2020, the United States Congress enacted the Coronavirus Aid, Relief and Economic Security Act, or CARES Act, to provide certain relief as a result of the COVID-19 outbreak. The CARES Act (PL 116-136), allows for a five-year carryback for losses arising in tax years beginning in 2018, 2019 and 2020. As there was U.S. taxable income in tax years 2018 and 2019, the Company will be able to carryback the 2020 losses in order to receive a refund of taxes assessed in these tax years of approximately $11.3 million.

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Interest Bearing Liabilities	9 Months Ended
	Sep. 30, 2020
Interest Bearing Liabilities [Abstract]
Interest Bearing Liabilities	13.Interest Bearing Liabilities The Company’s SFA, comprises of Facility A ($350 million loan facility), Facility B (A$130 million bank guarantee facility) and Facility C ($200 million loan facility). The SFA has a termination date of February 15, 2023. The SFA is a revolving credit facility under which the Company may borrow funds from Facility A and/or Facility C for a period of one, two, three or six months, each referred to as a Term. The interest rate is set at the commencement of each Term. At the end of each Term, the Company may elect to repay the loan or extend any loan amount outstanding for a further period of one, two, three or six months. The Term of the loan cannot extend beyond the termination date of the SFA. Due to the global impacts of COVID-19 on the demand and pricing for metallurgical coal and the resulting uncertainties associated with the pandemic, on May 25, 2020, the Company entered into an agreement with its lenders in the SFA to waive compliance with certain financial covenants for the period from May 25, 2020 to February 28, 2021. On August 12, 2020, the Company secured a further waiver extension, or the waiver, of its financial covenants to September 30, 2021, or the waiver period. The waiver was conditional upon the successful completion of a minimum equity raising, satisfied by the completion of the Placement and the institutional component of the Entitlement Offer on August 26, 2020. As part of the waiver extension agreement, the Company’s credit facility will be permanently reduced in three steps by $25.0 million each, in February, May and August 2021. At the end of, or after the waiver period, a breach of financial covenants will constitute an event of default under the SFA and all amounts outstanding at that point may become due and payable. The terms of the SFA will revert to the originally agreed terms at the end of the waiver period. The availability to fully draw down under the SFA is subject to a modified liquidity buffer of $50.0 million, leading to a review event process if amounts within this buffer are drawn down during the extended waiver period (i.e. before 30 September 2021). However, lender consent required to access the remaining $50.0 million was removed as part of the recent waiver extension. During the three months ended September 30, 2020, the Company completed the Placement and the Entitlement Offer comprising the issue of CDIs on the ASX raising net proceeds of $171.6 million. Refer to Note 6 “Capital Structure”. The funds raised were used to repay a portion of drawn balances under the SFA. As at September 30, 2020 the Company met its undertakings under the SFA (as modified and waived in accordance with the terms of the waiver). The Company is continuing to pursue a number of strategic initiatives to strengthen its liquidity. These steps are expected to ensure the continuing availability of the SFA beyond September 30, 2021. During the nine months ended September 30, 2020, the Company borrowed a total amount of $165.0 million under the SFA for working capital and corporate purposes. Repayments of $207.4 million were made during the nine months ended September 30, 2020. The total interest bearing liabilities outstanding under the SFA was $287.6 million and $ 330.0 million as at September 30, 2020 and December 31, 2019, respectively.

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Contract Obligations

9 Months Ended

Sep. 30, 2020

Contract Obligations [Abstract]

Contract Obligations

14.Contract Obligations

The following is a summary of the contract obligations as of September 30, 2020:
(US$ thousands)	Current		Non-current		Total
Coal leases contract liability	$	843	$	20,859	$	21,702
Stanwell below market coal supply agreement		37,244		160,752		197,996
	$	38,087	$	181,611	$	219,698
The following is a summary of the contract obligations as of December 31, 2019:
(US$ thousands)	Current		Non-current		Total
Coal leases contract liability		843		21,312		22,155
Stanwell below market coal supply agreement		36,092		183,565		219,657
	$	36,935	$	204,877	$	241,812

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Deferred Consideration Liability

9 Months Ended

Sep. 30, 2020

Deferred Consideration Liability [Abstract]

Deferred Consideration Liability

15.Deferred Consideration LiabilityOn August 14, 2018 the Company completed the purchase of the Stanwell Reserved Area, or the SRA, adjacent to the current Curragh mining tenements. This area was acquired on a deferred consideration basis and on acquisition the Company recognized a “Right-to-mine-asset” and a corresponding deferred consideration liability of $155.2 million, calculated using a pre-tax discount rate of 13% representing fair value of the arrangements at the date of acquisition. The deferred consideration liability will reflect passage of time changes by way of an annual accretion at the pre-tax discount rate of 13% while the liability will decrease as domestic coal is supplied to Stanwell from the SRA. The accretion of deferred consideration is recognized in “Interest expense, net” in the unaudited Condensed Consolidated Statements of Operations and Comprehensive Income.

(US$ thousands)	September 30, 2020		December 31,2019
Stanwell Reserved Area deferred consideration	$	193,753	$	174,605
	$	193,753	$	174,605

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Earnings per Share

9 Months Ended

Sep. 30, 2020

Earnings per Share [Abstract]

Earnings per Share

16. 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				Nine Months Ended
(US$ thousands, except per share data)	September 30, 2020		September 30, 2019		September 30, 2020		September 30, 2019
Numerator:
Net (loss) income	$	(41,794)	$	69,099	$	(164,989)	$	283,425
Less: Net loss attributable to Non-controlling interest		(2)		(2)		(6)		(6)
Net (loss) income attributable to Company stockholders	$	(41,792)	$	69,101	$	(164,983)	$	283,431
Denominator (in thousands):
Weighted-average shares of common stock outstanding		112,582		96,652		102,001		96,652
Effects of dilutive shares		—		2		-		2
Weighted average diluted shares of common stock outstanding		112,582		96,654		102,001		96,654
Earnings Per Share (US$):
Basic		(0.37)		0.71		(1.62)		2.93
Dilutive		(0.37)		0.71		(1.62)		2.93

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Derivatives and Fair Value Measurement

9 Months Ended

Sep. 30, 2020

Derivatives And Fair Value Measurement [Abstract]

Derivatives and Fair Value Measurement

17.Derivatives and Fair Value Measurement

(a) Derivatives

The Company may use derivative financial instruments to manage its financial risks in the normal course of operations, including foreign currency risks, commodity price risk related to purchase of raw materials (such as gas or diesel) and interest rate risk. Derivatives for speculative purposes are strictly prohibited under the Treasury Risk Management Policy approved by the Board of Directors.

The financing counterparties to the derivative contracts potentially expose the Company to credit-related risk. Credit risk is the risk that a third party might fail to fulfill its performance obligations under the terms of the financial instrument. The Company mitigates credit risk by entering into derivative contracts with high credit quality counterparties, limiting the amount of exposure to each counterparty and frequently monitoring their financial condition.

Forward fuel contracts

In 2019, the Company entered into forward derivative contracts to hedge its exposure to diesel fuel that is used, or expects to be used, at its operations in Australia, or Australian Operations, during 2020. During the nine months period ended September 30, 2020, the Company entered into additional derivative contracts in relation to diesel fuel that it expects to consume at its Australian Operations during 2021. The aggregate notional value for all outstanding forward diesel fuel derivative contracts designated as cash flow hedges were $66.4 million at September 30, 2020.

Unrealized losses, net of tax, recognized in “Accumulated other comprehensive loss” as at September 30, 2020, are expected to be recognized into “Cost of coal revenues” in the Unaudited Condensed Statements of Operations and Comprehensive Income, $15.0 million within the next 12 months and $2.4 million within 3 months thereafter, when the hedged transaction impacts income. Refer to Note 18 “Other comprehensive loss” for further disclosure.

Forward foreign currency contracts

The Australian Operations utilize the cash it generates from its US$ denominated coal sales revenue to fund its operating costs, which are predominantly in A$. The Company enters into forward foreign currency contracts to hedge its foreign exchange exposure on a portion of the US$ denominated coal sales revenue at Curragh, whose functional currency is A$.

The aggregated notional amount of the outstanding forward foreign currency derivative contracts designated as cash flow hedges were $24.6 million as at September 30, 2020. The unrealized gain of $1.0 million, net of tax, recognized in “Accumulated other comprehensive loss” at September 30, 2020, is expected to be recognized into “Coal revenues” in the

Unaudited Condensed Statements of Operations and Comprehensive Income within the next 3 months, when the hedged transaction impacts income. Refer to Note 18 “Other comprehensive loss” for further disclosure.

During the nine months period ended September 30, 2020, the Company entered into additional forward foreign currency derivative contracts to manage its exposure to US$ at the Australian Operations. The aggregate notional amount for the outstanding forward foreign currency derivative contracts was $26.5 million at September 30, 2020. The Unrealized gain of $1.6 million, net of tax, as at September 30, 2020, will be recognized in “Other, net” in the Unaudited Condensed Statements of Operations and Comprehensive Income within the next 3 months.

The fair value of foreign currency and diesel fuel derivatives reflected in the accompanying unaudited Condensed Consolidated Balance Sheet are set forth in the table below:

		September 30, 2020		December 31, 2019
(US$ thousands)	Classification	Derivative asset	Derivative liability	Derivative asset	Derivative liability
Forward fuel contracts	Other current assets	—	—	3,180	—
	Other current financial liabilities	—	14,955	—	—
	Other non-current financial liabilities	—	2,363	—	—
Forward foreign currency contracts	Other current assets	2,611	—	953	—
		2,611	17,318	4,133	—

The following table presents our details of foreign currency and diesel fuel outstanding contracts:

	September 30, 2020			December 31, 2019
	Notional amount (thousands)	Unit of measure	Varying maturity dates	Notional amount (thousands)	Unit of measure	Varying maturity dates
Forward fuel contracts	165,999	Liters	October 2020 - December 2021	121,957	Liters	January 2020 – December 2020
Forward foreign currency contracts	51,166	US$	October 2020 - December 2020	24,300	US$	January 2020 – March 2020

Fair Value of Financial Instruments

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.

Financial Instruments Measured on a Recurring Basis

As of September 30, 2020, the Company has the following liabilities that are required to be measured at fair value on a recurring basis:

 Forward fuel contracts: valued based on a valuation that is corroborated by the use of market-based pricing (Level 2)

 Foreign currency forward contracts: valued based on a valuation that is corroborated by the use of market-based pricing (Level 2)

 Contingent royalty: fair value is determined using the projected cash flow modelling technique (Level 3)

The following tables set forth the hierarchy of the Company’s net financial liabilities positions for which fair value is measured on a recurring basis as of September 30, 2020:
	Assets/(Liabilities)
(US$ thousands)	Level 1		Level 2		Level 3		Total
Forward commodity contracts	$	—	$	(17,318)	$	—	$	(17,318)
Forward foreign currency contracts		—		2,611		—		2,611
	$	—	$	(14,707)	$	—	$	(14,707)
The Company’s net financial liability positions for which fair value is measured on a recurring basis as of December 31, 2019 was as follows:
	Assets/(Liabilities)
(US$ thousands)	Level 1		Level 2		Level 3		Total
Forward commodity contracts	$	—	$	3,180	$	—	$	3,180
Forward foreign currency contracts		—		953		—		953
Contingent royalty		—		—		(1,543)		(1,543)
	$	—	$	4,133	$	(1,543)	$	2,590

Contingent Royalty Consideration
Key assumptions in the valuation include the gross sales price forecast, export volume forecast, volatility, the risk-free rate, and credit-spread of the Company.
	Quantitative Information about Level 3 Fair Value Measurements
(US$ thousands)	Fair value at September 30, 2020		Valuation technique	Unobservable input	Range (Weighted Avg.)
Contingent Royalty Liability	$	—	Projected cash flows	Gross sales price forecast per ton	$75.3 to $91.1 ($84.5)
				Export volume forecast (000’s)	2,121 tons over 6 months
Given the remaining period of the Contingent Royalty obligation is short-term (six months to March 31, 2021), the valuation technique has been changed from Black-Scholes Option model to projected cash flows.
As a result of the decline in market coal price and the increase of the agreed floor price as the agreement reaches maturity, the Company's projected cash flows resulted in no Contingent royalty liability as at September 30, 2020.

Value Share Mechanism

As part of the acquisition of Curragh on March 29, 2018, the Company agreed to pay a 25% royalty to the seller on sales from metallurgical coal mined at Curragh over a two-year period in the form of a Value Share Mechanism, or VSM. The VSM expired at the end of March 2020. There were no VSM payments during the nine months period ended September 30, 2020.

Other Financial Instruments

The following methods and assumptions are used to estimate the fair value of other financial instruments as of September 30, 2020 and December 31, 2019:

 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.

 Deposits and reclamation bonds, lease liabilities, interest bearing liabilities and other financial liabilities: The fair values approximate the carrying values reported in the unaudited Condensed Consolidated Balance Sheets.

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Accumulated Other Comprehensive Loss

9 Months Ended

Sep. 30, 2020

Other Comprehensive Income [Abstract]

Accumulated Other Comprehensive Loss

18. Accumulated Other Comprehensive Losses

Accumulated other comprehensive losses consisted of the following at September 30, 2020:

		Net unrealized gain (loss)
(US$ thousands)	Foreign currency translation adjustments	Cash flow fuel hedges	Cash flow foreign currency hedges	Total
Balance at December 31, 2019	(48,265)	2,378	681	(45,206)
Net current-period other comprehensive income (loss):
Gain (loss) in other comprehensive income (loss) before reclassifications	461	(33,157)	(2,284)	(34,980)
Loss reclassified from accumulated other comprehensive income (loss)	—	15,441	2,241	17,682
Tax effects	—	6,149	(9)	6,140
Total net current-period other comprehensive gain (loss)	461	(11,567)	(52)	(11,158)
Balance at September 30, 2020	(47,804)	(9,189)	629	(56,364)

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Commitments

9 Months Ended

Sep. 30, 2020

Commitments [Abstract]

Commitments

19.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 are as follows:

(US$ thousands)	Amount
Year ending December 31,
2020	2,301
2021	5,402
2022	5,235
2023	5,159
2024	5,031
Thereafter	25,775
Total	48,903
Mineral leases are not in scope of ASC 842 and continue to be accounted for under the guidance in ASC 932, Extractive Activities – Mining.

(b) Other commitments

As of September 30, 2020, purchase commitments for capital expenditures were $24.7 million, all of which is obligated within the next 12 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 11 years. In the U.S., the Company typically negotiates its rail and coal terminal access on an annual basis. As of September 30, 2020, these Australian

and U.S. commitments under take-or-pay arrangements totaled $1.5 billion, of which approximately $111.6 million is obligated within the next year.

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Related-Party Transactions

9 Months Ended

Sep. 30, 2020

Related-Party Transactions [Abstract]

Related-Party Transactions

20. Related‑Party Transactions

Xcoal

During the three and nine months ended September 30, 2020, the Company sold coal to Xcoal Energy and Resources, or Xcoal, an entity associated with Non-Executive director, Mr. Ernie Thrasher. Revenues from Xcoal of $17.1 million and $103.6 million, respectively, are recorded as “Coal revenues from related parties” in the unaudited Condensed Consolidated Statement of Operations and Comprehensive Income for the three months ended September 30, 2020 and 2019. Revenues from Xcoal of $106.2 million and $396.8 million, respectively, are recorded as coal revenues in the unaudited Condensed Consolidated Statement of Operations and Comprehensive Income for the nine months ended September 30, 2020 and 2019. During the three and nine months ended September 30, 2020, the Company purchased coal from Xcoal totalling $2.4 million and $10.3 million, respectively, and the corresponding payable was offset against trade receivables from Xcoal. The cost of purchasing coal from Xcoal is recorded within “Cost of coal revenues” in the Unaudited Condensed Consolidated Statement of Operations and Comprehensive Income.

At September 30, 2020, amounts due from Xcoal in respect of coal sales were $92.0 million. At December 31, 2019, amounts due from Xcoal in respect of coal sales were $86.8 million. At September 30, 2020, the Company expects to receive all outstanding related party trade receivables amounts within twelve months and as such any ECL is regarded as insignificant. Subsequent to September 30, 2020, the Company has collected $6.8 million in respect of its related party trade receivables reducing the outstanding balance to $85.2 million as at October 31, 2020. The Company has not recognised any bad debt expense from Xcoal in the three and nine months ended September 30, 2020 and 2019.

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Contingencies	9 Months Ended
	Sep. 30, 2020
Contingencies [Abstract]
Contingencies	21.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. Facility B of the SFA provides A$130 million for issuing multicurrency bank guarantees. At September 30, 2020, Facility B of the SFA had been utilized to issue A$93.3 million of bank guarantees on behalf of the Company. For the U.S. Operations in order to provide the required financial assurance, the Company generally uses surety bonds for post-mining reclamation and workers’ compensation obligations. The Company can also use bank letters of credit to collateralize certain obligations. As of September 30, 2020, the Company had outstanding surety bonds of $32.3 million, to secure various obligations and commitments. Coronado Curragh Pty Ltd, or Curragh, is a co-appellant to proceedings in the Queensland Supreme Court brought by Aurizon. Aurizon’s claim relates to costs relating to Curragh’s and other defendants’ liability to make “WIRP Fee” payments under the Wiggins Island Rail Project Deed, or WIRP Deed. The trial for this matter concluded in September 2018 and judgement was delivered by the Supreme Court in July 2019. Ultimately, Aurizon was successful in that trial and a determination was made that a WIRP Fee is payable by the defendants under the WIRP Deed. The defendants appealed the decision to the Queensland Court of Appeal and the appeal hearing was held in March 2020. On September 1, 2020, judgement was delivered by the Queensland Court of Appeal with a determination that the WIRP Fee is payable by Curragh (and the other co-defendants) and that the defendants are obliged to pay Aurizon’s costs of the trial and the appeal litigation. Curragh and the co-defendants have not applied for special leave to appeal the decision to the High Court of Australia which means the proceedings are now at an end. However, there remain unresolved issues between the parties about when the WIRP Fee became payable and the adjustments applicable to the calculation of the quantum of the Base WIRP Fee which may give rise to further disputes between the parties, unless agreement can be reached. Final resolution of this dispute and the above unresolved matters will also result in the Curragh’s below rail access to the Wiggins Island Coal Export Terminal (of 1.5 MMtpa) becoming a firm contractual capacity entitlement (and the subject of the take-or-pay access agreement). The Company’s unaudited Condensed Consolidated Balance Sheet includes an estimated loss contingency associated with these proceedings of approximately $5.9 million as at September 30, 2020, which is unadjusted (pending final determination or resolution) for the relevant adjustments applicable under the WIRP Deed. This estimated loss contingency includes an estimated amount in respect of Curragh’s share of the Aurizon’s legal costs relating to the proceedings, which are yet to be determined or agreed. 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. The liabilities recorded in relation to the above litigation do not include estimated future costs associated with legal representation, which, in accordance with the Company’s policy, are expensed as incurred. 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.

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Description of Business, Basis of Presentation (Policy)

9 Months Ended

Sep. 30, 2020

Description of Business, Basis of Presentation [Abstract]

Description of the Business

(a) Description of the Business

Coronado Global Resources Inc. (together with its subsidiaries, the “Company” or “Coronado”) 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 USA.

Basis of presentation

(b) Basis of Presentation

The interim unaudited condensed consolidated financial statements have been prepared in accordance with the requirements of the 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 24, 2020.

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, or Coronado, are used interchangeably to refer to Coronado Global Resources Inc. and its subsidiaries, 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 in 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, 2019 has been derived from the Company’s audited consolidated balance sheet at that date. The Company’s results of operations for the three and nine months ended September 30, 2020 are not necessarily indicative of the results that may be expected for future quarters or for the year ending December 31, 2020.

COVID-19

COVID-19

The COVID-19 global pandemic has continued to result in a challenging working environment which has significantly impacted the demand and price for metallurgical coal. Authorities in many countries around the world have implemented numerous and varying measures to reduce the spread and limit the impact of COVID-19, including travel bans and restrictions, quarantines, curfews, stay-at-home orders, business shutdowns and closures. Many countries have implemented multi-stage policies with the goal of re-opening markets and boosting economic activity. These measures have impacted and will continue to impact our mining operations, our customers, employees, suppliers and other third parties with whom we do business. There is considerable uncertainty regarding how current and future health and safety measures implemented in response to the pandemic will impact our business, including whether they will result in further changes in demand for metallurgical coal, increases in operating costs or impacts to our supply chain, and whether measures will result in port closures or border restrictions, each or all of which can impact our ability to produce and sell our coal.

The safety and wellbeing of our workforce remains our highest priority and we continue to manage the potential threat of COVID-19 at our mines and offices. The Company formed a COVID-19 taskforce spanning its operations in Australia and the U.S. and proactively enacted stringent preventative measures to ensure the safety and well-being of employees and contractors during the pandemic. These procedures include increased screenings of employees as they arrive at the workplace, strict adherence to hygiene and social distancing guidelines while at work and also a cleaning and sanitization program for equipment and facilities.

Our operations in the United States, or U.S. Operations, were idled in April and May 2020 due to the COVID-19 induced economic downturn and decline in demand from customers in Europe, South America and North America. While the mines were idled, the Company continued to make shipments to its customers from existing inventories which allowed the Company to meet all customer commitments. On June 1, 2020, the Company resumed operations at the Buchanan and Logan mines. Production at these mines has progressively increased in line with demand, with the Buchanan mine now returning to full operating capacity. The Greenbrier mine remains idle and the Company will continue to monitor market developments to evaluate the duration for which the mine will remain idle. To date, there have been a small number of the Company’s workforce who have tested positive for COVID-19 in our U.S. Operations. The Company has taken all necessary steps to isolate the affected workers and protect the remaining workforce. There has been no material adverse impact to production.

The global economic slowdown resulting from the effects of COVID-19 has sharply reduced the demand for steel in all markets except for China, where steel production remained elevated during the second and third quarter of 2020. Steel demand in China has been supported by large infrastructure investment, with signs of improvement in discretionary steel demand (e.g. automotive) and property. Globally, steel producers in the third quarter restarted blast furnace operations as demand for steel was underpinned by the automotive and constructions sectors. Blast furnace restarts accelerated in September with numerous steel mills returning to operation in Japan, South Korea, Europe and Brazil. Demand for steel in India has risen to near pre-lockdown levels. Overall, the supply and demand constraints in respect of the global impacts of COVID-19 on our operations in Australia, or Australian Operations, has been limited due to the unique position of the Curragh mine as a strategic supplier of ‘base load’ metallurgical coal for coke blends.

In response to the global impacts of COVID-19 on the demand for steel and the resulting impact on the price and demand for metallurgical coal, the Company has taken steps to safeguard its operations, strengthen its balance sheet and increase liquidity by undertaking a capital raising by issuing additional equity on the ASX, reducing capital expenditures and managing operating costs in a disciplined manner. During the third quarter, the Company reduced its net debt by $131.7 million to $273.2 million and had $262.4 million undrawn and available under the Syndicated Facility Agreement, or SFA, subject to a modified liquidity buffer of $50.0 million, and cash balances (excluding restricted cash) of $14.4 million as at September 30, 2020. Refer to Note 6 “Capital Structure” and Note 13 “Interest Bearing Liabilities”.

Due to uncertainties surrounding the impact of the COVID-19 pandemic on global markets into the future, the Company cannot currently predict the extent of any potential material adverse impact to its business, results of operations, financial condition and ability to comply with financial covenants under the SFA

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Summary of Significant Accounting Policies (Policy)

9 Months Ended

Sep. 30, 2020

Summary of Significant Accounting Policies [Abstract]

Newly Adopted Accounting Standards

(a) Newly Adopted Accounting Standards

Financial Instruments - Credit Losses. In June 2016, the FASB issued ASU 2016-13 related to the measurement of credit losses on financial instruments. The pronouncement replaces the incurred loss methodology to record credit losses with a methodology that reflects the expected credit losses for financial assets not accounted for at fair value with gains and losses recognized through net income.

On January 1, 2020, the Company adopted ASU 2016-13. The cumulative-effect adjustment upon adoption was not material to the Company’s results of operations and its cash flows. Changes to the Company’s accounting policies as a result of adoption are discussed below.

The Company extends trade credit to its customers in the ordinary course of business. Trade receivables and related party receivables are recorded initially at fair value and subsequently at amortized cost, less any Expected Credit Losses, or ECL. Trade receivables from provisionally priced sales are carried at fair value to profit or loss.

For trade and related party receivables carried at amortized cost, the Company determines ECL on a forward-looking basis. The amount of ECL is updated at each reporting date to reflect changes in credit risk since initial recognition of the respective financial instrument. The Company recognizes the lifetime ECL. The ECL is estimated based on the Company’s historic credit loss experience, adjusted for factors that are specific to the financial asset, general economic conditions, financial asset type, term and an assessment of both the current as well as forecast conditions at the reporting date, modified for credit enhancements such as letters of credit obtained. To measure ECL, trade and related party receivables have been grouped based on shared credit risk characteristics and the days past due.

The Company considers an event of default has occurred when a financial asset is significantly past due or other factors indicate that the debtor is unlikely to pay amounts owed to the Company. A financial asset is credit impaired when there is evidence that the counterparty is in significant financial difficulty or a breach of contract, such as default or past due event

has occurred. The Company writes off a financial asset when there is information indicating there is no realistic prospect of recovery of the asset from the counterparty. The amount of the impairment loss is recognized in the consolidated statement of operations and other comprehensive income within “other, net”. Subsequent recoveries of amounts previously written off are credit against “other, net” in the consolidated statement of operations and other comprehensive income.

Fair Value Measurement. In August 2018, the FASB issued ASU 2018-13, which amended the fair value measurement guidance by removing and modifying certain disclosure requirements, while also adding new disclosure requirements.

On January 1, 2020, the Company adopted ASU 2018-13. The amendments on changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements and the narrative description of measurement uncertainty were applied prospectively for only the most recent interim period presented. All other amendments were applied retrospectively to all periods presented. The adoption of ASU 2018-13 did not have a material impact on the Company’s unaudited condensed consolidated financial statements.

Intangibles – Goodwill and Other: Simplifying the Test for Goodwill Impairment. In January 2018, the FASB issued ASU 2017-04, which eliminates step two from the goodwill impairment test. Under ASU 2017-04, an entity should recognize an impairment charge for the amount by which the carrying amount of a reporting unit exceeds its fair value up to the amount of goodwill allocated to that reporting unit.

On January 1, 2020, the Company adopted ASU 2017-04. Changes to the Company’s accounting policies as a result of adoption are discussed below.

Goodwill is an asset representing the future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized. Goodwill is not amortized but is reviewed for impairment annually or when circumstances or other events indicate that impairment may have occurred.

The Company makes a qualitative assessment of whether it is more likely than not that a reporting unit’s fair value is less than its carrying amount. Circumstances that are considered as part of the qualitative assessment and could trigger a quantitative impairment test include but are not limited to: a significant adverse change in the business climate; a significant adverse legal judgment; adverse cash flow trends; an adverse action or assessment by a government agency; unanticipated competition; and a significant restructuring charge within a reporting unit. If a quantitative assessment is determined to be necessary, the Company compares the fair value of a reporting unit with its carrying amount, including goodwill. If the carrying amount of a reporting unit exceeds its fair value, the Company recognizes an impairment charge for the amount by which the carrying amount exceeds its fair value to the extent of the amount of goodwill allocated to that reporting unit.

The Company defines reporting units at the business unit level. For purposes of testing goodwill for impairment, goodwill has been allocated to the reporting units to the extent it relates to each reporting unit.

Accounting Standards Not Yet Implemented

(b) Accounting Standards Not Yet Implemented

“Income Taxes - Simplifying the Accounting for Income Taxes” - In December 2019, the FASB issued ASU 2019-12, which is intended to simplify various aspects related to accounting for income taxes. ASU 2019-12 removes certain exceptions to the general principles in Topic 740 and clarifies and amends existing guidance to improve consistent application. ASU 2019-12 will be effective for interim and annual periods beginning after December 15, 2020. The Company is currently evaluating the impact the adoption of ASU 2019-12 will have on its consolidated financial statements.

Reclassification

(c) Reclassification

Certain amounts in the prior period Condensed Consolidated Balance Sheet have been reclassified to conform to the presentation of the current period financial statements. These related to the reclassification of four reportable segments into the current two reportable segments discussed in Note 3 “Segment information”. These reclassifications had no effect on the previously reported net income.

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Segment Information (Tables)

9 Months Ended

Sep. 30, 2020

Segment Information [Abstract]

Reportable Segment Results

	Australia	United States	Other and Corporate	Total
	($ thousands)
Three months ended September 30, 2020
Total revenues	271,413	104,972	—	376,385
Adjusted EBITDA	2,144	14,413	(7,006)	9,551
Net loss	(28,582)	(12,016)	(1,196)	(41,794)
Total assets	1,106,518	952,167	51,648	2,110,333
Capital expenditures	14,574	8,644	92	23,310
Three months ended September 30, 2019
Total revenues	350,505	185,336	—	535,841
Adjusted EBITDA	94,860	63,051	(8,169)	149,742
Net income (loss)	56,379	27,994	(15,274)	69,099
Total assets	1,114,022	1,004,918	49,418	2,168,358
Capital expenditures	22,981	27,961	—	50,942
Nine Months Ended September 30, 2020
Total revenues	744,968	345,083	—	1,090,051
Adjusted EBITDA	8,406	56,153	(20,063)	44,496
Net loss	(51,483)	(76,889)	(36,617)	(164,989)
Total assets	1,106,518	952,167	51,648	2,110,333
Capital expenditures	33,378	50,561	1,298	85,237
Nine Months Ended September 30, 2019
Total revenues	1,144,689	625,487	—	1,770,176
Adjusted EBITDA	366,568	214,662	(26,134)	555,096
Net income (loss)	216,136	105,404	(38,115)	283,425
Total assets	1,114,022	1,004,918	49,418	2,168,358
Capital expenditures	38,407	78,957	5	117,369

Reconciliation of Adjusted EBITDA to Net Income

	Three months ended				Nine Months Ended
	September 30,				September 30,
	2020		2019		2020		2019
	(US$ thousands)				(US$ thousands)
Net (loss) income	$	(41,794)	$	69,099	$	(164,989)	$	283,425
Depreciation, depletion and amortization		48,693		39,855		135,542		125,134
Interest expense (net of income)		12,207		9,319		36,528		26,583
Other foreign exchange losses		1,614		851		5,829		293
Income tax (benefit) expense		(11,169)		30,618		(31,525)		119,661
Impairment of assets		—		—		63,111		—
Consolidated adjusted EBITDA	$	9,551	$	149,742	$	44,496	$	555,096

Disaggregation of Revenue

	Three months ended September 30, 2020
	Australia	United States	Other and Corporate	Total
	($ thousands)
Product Groups:
Metallurgical coal	233,063	103,401	—	336,464
Thermal coal	29,428	845	—	30,273
Total coal revenue	262,491	104,246	—	366,737
Other(1)	8,922	726	—	9,648
Total	271,413	104,972	—	376,385

	Three months ended September 30, 2019
	Australia	United States	Other and Corporate	Total
	($ thousands)
Product Groups:
Metallurgical coal	318,634	172,284	—	490,918
Thermal coal	23,582	11,274	—	34,856
Total coal revenue	342,216	183,558	—	525,774
Other(1)	8,289	1,778	—	10,067
Total	350,505	185,336	—	535,841

	Nine months ended September 30, 2020
	Australia	United States	Other and Corporate	Total
	($ thousands)
Product Groups
Metallurgical coal	640,893	337,599	—	978,492
Thermal coal	80,079	2,983	—	83,062
Total coal revenue	720,972	340,582	—	1,061,554
Other(1)	23,996	4,501	—	28,497
Total	744,968	345,083	—	1,090,051

	Nine months ended September 30, 2019
	Australia	United States	Other and Corporate	Total
	($ thousands)
Product Groups
Metallurgical coal	1,046,598	579,818	—	1,626,416
Thermal coal	71,563	40,282	—	111,845
Total coal revenue	1,118,161	620,100	—	1,738,261
Other(1)	26,528	5,387	—	31,915
Total	1,144,689	625,487	—	1,770,176

(1) Other revenue for Curragh includes the amortization of the Stanwell non-market coal supply contract obligation liability.

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Impairment of Assets (Tables)

9 Months Ended

Sep. 30, 2020

Impairment of Assets [Abstract]

Asset Impairment Charges [Table Text Block]

		Reportable Segment
(US$ thousands)		United States
Property, plant and equipment, net	$	62,481
Right of use asset – operating leases, net		10
Intangible assets, net		620
Total	$	63,111

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Expenses (Tables)

9 Months Ended

Sep. 30, 2020

Expenses [Abstract]

Schedule of Expenses

	Three months ended				Nine Months Ended
	September 30,				September 30,
	2020		2019		2020		2019
	(US$ thousands)				(US$ thousands)
Other foreign exchange losses		(1,614)		(851)		(5,829)		(293)
Other income (expenses)		1,253		(321)		983		163
Total Other, net	$	(361)	$	(1,172)	$	(4,846)	$	(130)

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Inventories (Tables)

9 Months Ended

Sep. 30, 2020

Inventories [Abstract]

Schedule of Inventories

(US$ thousands)	September 30, 2020		December 31,2019
Raw coal	$	25,499	$	41,127
Saleable coal		41,678		63,006
Total coal inventories		67,177		104,133
Supplies inventory		59,752		58,037
Total inventories	$	126,929	$	162,170

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Property, Plant, and Equipment (Tables)

9 Months Ended

Sep. 30, 2020

Property, Plant and Equipment [Abstract]

Schedule of Property, Plant and Equipment

(US$ thousands)	September 30, 2020		December 31,2019
Land	$	27,197	$	27,037
Buildings and improvements		83,941		80,658
Plant, machinery, mining equipment and transportation vehicles		965,711		896,392
Mineral rights and reserves		413,755		464,710
Office and computer equipment		5,270		3,977
Mine development		526,492		497,439
Asset retirement obligation asset		82,877		81,520
Construction in process		45,727		80,646
		2,150,970		2,132,379
Less accumulated depreciation, depletion and amortization		607,573		499,591
Net property, plant and equipment	$	1,543,397	$	1,632,788

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Goodwill and Other Intangible Assets (Tables)

9 Months Ended

Sep. 30, 2020

Goodwill and Other Intangible Assets [Abstract]

Schedule of Acquired Intangible Assets

	September 30, 2020
(US$ thousands)	Weighted average amortization period (years)	Gross carrying amount		Accumulated amortization		Net carrying amount
Intangible assets:
Amortizing intangible assets:
Mining permits - Logan	15		1,642		815		827
Mining permits - Buchanan	28		4,000		560		3,440
Total intangible assets		$	5,642	$	1,375	$	4,267
	December 31, 2019
(US$ thousands)	Weighted average amortization period (years)	Gross carrying amount		Accumulated amortization		Net carrying amount
Intangible assets:
Amortizing intangible assets:
Mining permits - Greenbrier	14	$	1,500	$	840	$	660
Mining permits - Logan	15		1,642		756		886
Mining permits - Buchanan	28		4,000		467		3,533
Total intangible assets		$	7,142	$	2,063	$	5,079

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Accrued Expenses and Other Current Liabilities (Tables)

9 Months Ended

Sep. 30, 2020

Accrued Expenses and Other Current Liabilities [Abstract]

Schedule of Accrued Expenses and Other Current Liabilities

(US$ thousands)	September 30, 2020		December 31,2019
Wages and employee benefits	$	58,660	$	61,008
Taxes other than income taxes		8,895		3,899
Accrued royalties		36,670		43,468
Accrued freight costs		33,829		30,416
Accrued mining fees		71,556		49,027
Acquisition related accruals		30,564		30,190
Other liabilities		17,273		20,780
Total accrued expenses and other current liabilities	$	257,447	$	238,788

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Leases (Tables)

9 Months Ended

Sep. 30, 2020

Leases [Abstract]

Summary of Operating Right-of Use Assets and Related Lease Liabilities

	Three Months Ended				Nine Months Ended
(US$ thousands)	September 30, 2020		September 30, 2019		September 30, 2020		September 30, 2019
Operating lease costs	$	3,300	$	7,671	$	14,650	$	20,532
Cash paid for operating lease liabilities		2,233		6,968		12,607		18,041
Finance lease costs:
Amortization of right of use assets		619		627		1,618		1,848
Interest on lease liabilities		19		47		88		155
Total finance lease costs	$	638	$	674	$	1,706	$	2,003

Schedule of Supplemental Balance Sheet Information Related to Leases

(US$ thousands)	September 30, 2020		December 31,2019
Operating leases:
Operating lease right-of-use assets	$	21,511	$	62,566
Finance leases:
Property and equipment		4,402		7,881
Accumulated depreciation		(3,645)		(5,144)
Property and equipment, net		757		2,737
Current operating lease obligations		9,382		27,204
Operating lease liabilities, less current portion		22,120		48,165
Total operating lease liabilities		31,502		75,369
Current finance lease obligations		94		2,481
Total Lease liability	$	31,596	$	77,850

Schedule of Weighted Average Calculations for Remaining term And Discount Rates

	September 30, 2020	December 31, 2019
Weighted Average Remaining Lease Term (Years)
Weighted average remaining lease term – finance leases	0.08	0.67
Weighted average remaining lease term – operating leases	3.47	2.89
Weighted Average Discount Rate
Weighted discount rate – finance lease	6.25%	6.25%
Weighted discount rate – operating lease	7.95%	8.00%

Schedule of Maturities of Operating and Finance Lease Liabilities

(US$ thousands)	Operating Lease		Finance Lease
Year ending December 31,
2020	$	3,286	$	94
2021		10,176		—
2022		9,061		—
2023		9,223		—
2024		2,925		—
Thereafter		1,650		—
Total lease payments		36,321		94
Less imputed interest		(4,819)		—
Total lease liability	$	31,502	$	94

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Contract Obligations (Tables)

9 Months Ended

Sep. 30, 2020

Contract Obligations [Abstract]

Summary of Contract Obligations

The following is a summary of the contract obligations as of September 30, 2020:
(US$ thousands)	Current		Non-current		Total
Coal leases contract liability	$	843	$	20,859	$	21,702
Stanwell below market coal supply agreement		37,244		160,752		197,996
	$	38,087	$	181,611	$	219,698
The following is a summary of the contract obligations as of December 31, 2019:
(US$ thousands)	Current		Non-current		Total
Coal leases contract liability		843		21,312		22,155
Stanwell below market coal supply agreement		36,092		183,565		219,657
	$	36,935	$	204,877	$	241,812

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Deferred Consideration Liability (Tables)

9 Months Ended

Sep. 30, 2020

Deferred Consideration Liability [Abstract]

Schedule of Deferred Consideration Liability

(US$ thousands)	September 30, 2020		December 31,2019
Stanwell Reserved Area deferred consideration	$	193,753	$	174,605
	$	193,753	$	174,605

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Earnings per Share (Tables)

9 Months Ended

Sep. 30, 2020

Earnings per Share [Abstract]

Schedule of Earnings Per Share

Basic and diluted earnings per share was calculated as follows (in thousands, except per share data):
	Three Months Ended				Nine Months Ended
(US$ thousands, except per share data)	September 30, 2020		September 30, 2019		September 30, 2020		September 30, 2019
Numerator:
Net (loss) income	$	(41,794)	$	69,099	$	(164,989)	$	283,425
Less: Net loss attributable to Non-controlling interest		(2)		(2)		(6)		(6)
Net (loss) income attributable to Company stockholders	$	(41,792)	$	69,101	$	(164,983)	$	283,431
Denominator (in thousands):
Weighted-average shares of common stock outstanding		112,582		96,652		102,001		96,652
Effects of dilutive shares		—		2		-		2
Weighted average diluted shares of common stock outstanding		112,582		96,654		102,001		96,654
Earnings Per Share (US$):
Basic		(0.37)		0.71		(1.62)		2.93
Dilutive		(0.37)		0.71		(1.62)		2.93

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Derivatives and Fair Value Measurement (Tables)

9 Months Ended

Sep. 30, 2020

Derivatives and Fair Value Measurement [Abstract]

Summary of Derivative Financial Instruments

		September 30, 2020		December 31, 2019
(US$ thousands)	Classification	Derivative asset	Derivative liability	Derivative asset	Derivative liability
Forward fuel contracts	Other current assets	—	—	3,180	—
	Other current financial liabilities	—	14,955	—	—
	Other non-current financial liabilities	—	2,363	—	—
Forward foreign currency contracts	Other current assets	2,611	—	953	—
		2,611	17,318	4,133	—

Net Amounts of Derivative Assets and Liabilities

	September 30, 2020			December 31, 2019
	Notional amount (thousands)	Unit of measure	Varying maturity dates	Notional amount (thousands)	Unit of measure	Varying maturity dates
Forward fuel contracts	165,999	Liters	October 2020 - December 2021	121,957	Liters	January 2020 – December 2020
Forward foreign currency contracts	51,166	US$	October 2020 - December 2020	24,300	US$	January 2020 – March 2020

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

The following tables set forth the hierarchy of the Company’s net financial liabilities positions for which fair value is measured on a recurring basis as of September 30, 2020:
	Assets/(Liabilities)
(US$ thousands)	Level 1		Level 2		Level 3		Total
Forward commodity contracts	$	—	$	(17,318)	$	—	$	(17,318)
Forward foreign currency contracts		—		2,611		—		2,611
	$	—	$	(14,707)	$	—	$	(14,707)
The Company’s net financial liability positions for which fair value is measured on a recurring basis as of December 31, 2019 was as follows:
	Assets/(Liabilities)
(US$ thousands)	Level 1		Level 2		Level 3		Total
Forward commodity contracts	$	—	$	3,180	$	—	$	3,180
Forward foreign currency contracts		—		953		—		953
Contingent royalty		—		—		(1,543)		(1,543)
	$	—	$	4,133	$	(1,543)	$	2,590

Quantitative Information about Level 3 Fair Value Measurements

Contingent Royalty Consideration
Key assumptions in the valuation include the gross sales price forecast, export volume forecast, volatility, the risk-free rate, and credit-spread of the Company.
	Quantitative Information about Level 3 Fair Value Measurements
(US$ thousands)	Fair value at September 30, 2020		Valuation technique	Unobservable input	Range (Weighted Avg.)
Contingent Royalty Liability	$	—	Projected cash flows	Gross sales price forecast per ton	$75.3 to $91.1 ($84.5)
				Export volume forecast (000’s)	2,121 tons over 6 months
Given the remaining period of the Contingent Royalty obligation is short-term (six months to March 31, 2021), the valuation technique has been changed from Black-Scholes Option model to projected cash flows.
As a result of the decline in market coal price and the increase of the agreed floor price as the agreement reaches maturity, the Company's projected cash flows resulted in no Contingent royalty liability as at September 30, 2020.

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Accumulated Other Comprehensive Loss (Tables)

9 Months Ended

Sep. 30, 2020

Other Comprehensive Income [Abstract]

Schedule of Accumulated Other Comprehensive Losses

		Net unrealized gain (loss)
(US$ thousands)	Foreign currency translation adjustments	Cash flow fuel hedges	Cash flow foreign currency hedges	Total
Balance at December 31, 2019	(48,265)	2,378	681	(45,206)
Net current-period other comprehensive income (loss):
Gain (loss) in other comprehensive income (loss) before reclassifications	461	(33,157)	(2,284)	(34,980)
Loss reclassified from accumulated other comprehensive income (loss)	—	15,441	2,241	17,682
Tax effects	—	6,149	(9)	6,140
Total net current-period other comprehensive gain (loss)	461	(11,567)	(52)	(11,158)
Balance at September 30, 2020	(47,804)	(9,189)	629	(56,364)

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Commitments (Tables)

9 Months Ended

Sep. 30, 2020

Commitments [Abstract]

Future Minimum Royalties

(US$ thousands)	Amount
Year ending December 31,
2020	2,301
2021	5,402
2022	5,235
2023	5,159
2024	5,031
Thereafter	25,775
Total	48,903
Mineral leases are not in scope of ASC 842 and continue to be accounted for under the guidance in ASC 932, Extractive Activities – Mining.

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Description of Business, Basis of Presentation (Narrative) (Details) $ in Millions	3 Months Ended
	Sep. 30, 2020 USD ($)
Description of Business, Basis of Presentation [Abstract]
Available credit	$ 262.4
Cash	14.4
Net debt	131.7
Debt	273.2
Line of credit	$ 50.0

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Summary of Significant Accounting Policies (Narrative) (Details)	9 Months Ended
	Sep. 30, 2020 segment
Summary of Significant Accounting Policies [Abstract]
Number of reportable segments	2
Number of operating segments	4

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Segment Information (Narrative) (Details)	9 Months Ended
	Sep. 30, 2020 segment
Segment Reporting Information [Line Items]
Number of operating segments	4
Number of reportable segments	2
Buchanan And Logan Segment [Member]
Segment Reporting Information [Line Items]
Number of operating segments	2
Greenbrier Segment [Member]
Segment Reporting Information [Line Items]
Number of operating segments	1
Pangburn-Shaner-Fallowfield And Russel County Segment [Member]
Segment Reporting Information [Line Items]
Number of operating segments	2
Amonate Segment [Member]
Segment Reporting Information [Line Items]
Number of operating segments	1

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Segment Information (Reportable Segment Results) (Details) - USD ($) $ in Thousands	3 Months Ended						9 Months Ended
	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Reportable segment results
Total revenues	$ 376,385			$ 535,841			$ 1,090,051	$ 1,770,176
Adjusted EBITDA	9,551			149,742			44,496	555,096
Net income (loss)	(41,794)	$ (114,330)	$ (8,865)	69,099	$ 117,506	$ 96,820	(164,989)	283,425
Total assets	2,110,333			2,168,358			2,110,333	2,168,358	$ 2,214,854
Capital expenditures	23,310			50,942			85,237	117,369
Other and Corporate [Member]
Reportable segment results
Total revenues	0			0			0	0
Adjusted EBITDA	(7,006)			(8,169)			(20,063)	(26,134)
Net income (loss)	(1,196)			(15,274)			(36,617)	(38,115)
Total assets	51,648			49,418			51,648	49,418
Capital expenditures	92			0			1,298	5
Australia [Member] | Operating Segments [Member]
Reportable segment results
Total revenues	271,413			350,505			744,968	1,144,689
Adjusted EBITDA	2,144			94,860			8,406	366,568
Net income (loss)	(28,582)			56,379			(51,483)	216,136
Total assets	1,106,518			1,114,022			1,106,518	1,114,022
Capital expenditures	14,574			22,981			33,378	38,407
United States [Member] | Operating Segments [Member]
Reportable segment results
Total revenues	104,972			185,336			345,083	625,487
Adjusted EBITDA	14,413			63,051			56,153	214,662
Net income (loss)	(12,016)			27,994			(76,889)	105,404
Total assets	952,167			1,004,918			952,167	1,004,918
Capital expenditures	$ 8,644			$ 27,961			$ 50,561	$ 78,957

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Segment Information (Reconciliation of Adjusted EBITDA to Net Income) (Details) - USD ($)	3 Months Ended						6 Months Ended	9 Months Ended
	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Jun. 30, 2020	Sep. 30, 2020	Sep. 30, 2019
Segment Information [Abstract]
Net (loss) income	$ (41,794,000)	$ (114,330,000)	$ (8,865,000)	$ 69,099,000	$ 117,506,000	$ 96,820,000		$ (164,989,000)	$ 283,425,000
Depreciation, depletion and amortization	48,693,000			39,855,000				135,542,000	125,134,000
Interest expense (net of income)	12,207,000			9,319,000				36,528,000	26,583,000
Other foreign exchange losses	1,614,000			851,000				5,829,000	293,000
Income tax (benefit) expense	(11,169,000)			30,618,000				(31,525,000)	119,661,000
Impairment of assets	0			0			$ (63,100,000)	(63,111,000)	0
Consolidated adjusted EBITDA	$ 9,551,000			$ 149,742,000				$ 44,496,000	$ 555,096,000

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Segment Information (Disaggregation of Revenue) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Disaggregation of Revenue [Line Items]
Revenues	$ 376,385	$ 535,841	$ 1,090,051	$ 1,770,176
Other and Corporate [Member]
Disaggregation of Revenue [Line Items]
Revenues	0	0	0	0
Product Groups [Member]
Disaggregation of Revenue [Line Items]
Revenues	376,385	535,841	1,090,051	1,770,176
Metallurgical Coal [Member]
Disaggregation of Revenue [Line Items]
Revenues	336,464	490,918	978,492	1,626,416
Metallurgical Coal [Member] | Other and Corporate [Member]
Disaggregation of Revenue [Line Items]
Revenues	0	0	0	0
Thermal Coal [Member]
Disaggregation of Revenue [Line Items]
Revenues	30,273	34,856	83,062	111,845
Thermal Coal [Member] | Other and Corporate [Member]
Disaggregation of Revenue [Line Items]
Revenues	0	0	0	0
Total Coal Revenue [Member]
Disaggregation of Revenue [Line Items]
Revenues	366,737	525,774	1,061,554	1,738,261
Total Coal Revenue [Member] | Other and Corporate [Member]
Disaggregation of Revenue [Line Items]
Revenues	0	0	0	0
Other [Member]
Disaggregation of Revenue [Line Items]
Revenues	9,648	10,067	28,497	31,915
Other [Member] | Other and Corporate [Member]
Disaggregation of Revenue [Line Items]
Revenues	0	0	0	0
Australia [Member] | Operating Segments [Member]
Disaggregation of Revenue [Line Items]
Revenues	271,413	350,505	744,968	1,144,689
Australia [Member] | Metallurgical Coal [Member] | Operating Segments [Member]
Disaggregation of Revenue [Line Items]
Revenues	233,063	318,634	640,893	1,046,598
Australia [Member] | Thermal Coal [Member] | Operating Segments [Member]
Disaggregation of Revenue [Line Items]
Revenues	29,428	23,582	80,079	71,563
Australia [Member] | Total Coal Revenue [Member] | Operating Segments [Member]
Disaggregation of Revenue [Line Items]
Revenues	262,491	342,216	720,972	1,118,161
Australia [Member] | Other [Member] | Operating Segments [Member]
Disaggregation of Revenue [Line Items]
Revenues	8,922	8,289	23,996	26,528
United States [Member] | Operating Segments [Member]
Disaggregation of Revenue [Line Items]
Revenues	104,972	185,336	345,083	625,487
United States [Member] | Metallurgical Coal [Member] | Operating Segments [Member]
Disaggregation of Revenue [Line Items]
Revenues	103,401	172,284	337,599	579,818
United States [Member] | Thermal Coal [Member] | Operating Segments [Member]
Disaggregation of Revenue [Line Items]
Revenues	845	11,274	2,983	40,282
United States [Member] | Total Coal Revenue [Member] | Operating Segments [Member]
Disaggregation of Revenue [Line Items]
Revenues	104,246	183,558	340,582	620,100
United States [Member] | Other [Member] | Operating Segments [Member]
Disaggregation of Revenue [Line Items]
Revenues	$ 726	$ 1,778	$ 4,501	$ 5,387

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Impairment of Assets (Narrative) (Details) - USD ($)	3 Months Ended		6 Months Ended	9 Months Ended		12 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Jun. 30, 2020	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019	Dec. 31, 2018
Impairment of Assets [Abstract]
Impairment losses recognized for property, plant and equipment						$ 0	$ 0
Impairment of assets	$ 0	$ 0	$ 63,100,000	$ 63,111,000	$ 0
Decreased carrying value of asset				$ 50,000,000.0

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Impairment of Assets (Schedule of Impairment of Assets) (Details) - USD ($)	3 Months Ended		6 Months Ended	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Jun. 30, 2020	Sep. 30, 2020	Sep. 30, 2019
Impairment of Assets [Abstract]
Property, plant and equipment, net				$ 62,481,000
Right of use - operating leases, net				10,000
Intangible assets, net				620,000
Total	$ 0	$ 0	$ 63,100,000	$ 63,111,000	$ 0

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Expenses (Schedule of Expenses) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Expenses [Abstract]
Other foreign exchange losses	$ (1,614)	$ (851)	$ (5,829)	$ (293)
Other income (expenses)	1,253	(321)	983	163
Total Other, net	$ (361)	$ (1,172)	$ (4,846)	$ (130)

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Capital Structure (Narrative) (Details) $ / shares in Units, $ in Millions, $ in Millions					9 Months Ended
	Sep. 15, 2020 AUD ($) shares	Sep. 15, 2020 USD ($) $ / shares shares	Aug. 26, 2020 AUD ($) shares	Aug. 26, 2020 USD ($) $ / shares shares	Sep. 30, 2020 USD ($) $ / shares shares	Dec. 31, 2019 $ / shares shares
Net Investment Income [Line Items]
Common Stock, Shares, Issued					138,387,890	96,651,692
Common Stock, Par or Stated Value Per Share | $ / shares					$ 0.01	$ 0.01
Placement [Member]
Net Investment Income [Line Items]
Proceeds from issuance of common stocks			$ 239.4	$ 171.7
Common Stock, Shares, Issued				39,891,149
Placement [Member] | Chess Depositary Interests [Member]
Net Investment Income [Line Items]
Price per share | $ / shares				$ 0.60
New shares issued			398,911,490	398,911,490
Retail Entitlement Offer [Member]
Net Investment Income [Line Items]
Proceeds from issuance of common stocks	$ 11.1	$ 8.1
Common Stock, Shares, Issued		1,845,049
Retail Entitlement Offer [Member] | Chess Depositary Interests [Member]
Net Investment Income [Line Items]
Price per share | $ / shares		$ 0.60
New shares issued	18,450,490	18,450,490
Placement And Retailment Entitlement Offer [Member]
Net Investment Income [Line Items]
Proceeds from issuance of common stocks | $					$ 171.6
Common Stock, Shares, Issued					41,736,198
Common Stock, Par or Stated Value Per Share | $ / shares					$ 0.01
Placement And Retailment Entitlement Offer [Member] | Chess Depositary Interests [Member]
Net Investment Income [Line Items]
Pro-Rata accelerated non-renounceable entitlement conversion ratio				0.18

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Inventories (Schedule of Inventories) (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Inventories [Abstract]
Raw coal	$ 25,499	$ 41,127
Saleable coal	41,678	63,006
Total coal inventories	67,177	104,133
Supplies inventory	59,752	58,037
Total inventories	$ 126,929	$ 162,170

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Property, Plant and Equipment (Schedule of Property, Plant and Equipment) (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Property Plant And Equipment [Line Items]
Property, plant, equipment and equipment, gross	$ 2,150,970	$ 2,132,379
Less accumulated depreciation, depletion and amortization	607,573	499,591
Net property, plant and equipment	1,543,397	1,632,788
Land [Member]
Property Plant And Equipment [Line Items]
Property, plant, equipment and equipment, gross	27,197	27,037
Buildings And Improvements [Member]
Property Plant And Equipment [Line Items]
Property, plant, equipment and equipment, gross	83,941	80,658
Plant, Machinery, Mining Equipment And Transportation Vehicles [Member]
Property Plant And Equipment [Line Items]
Property, plant, equipment and equipment, gross	965,711	896,392
Mineral Rights And Reserves [Member]
Property Plant And Equipment [Line Items]
Property, plant, equipment and equipment, gross	413,755	464,710
Office And Computer Equipment [Member]
Property Plant And Equipment [Line Items]
Property, plant, equipment and equipment, gross	5,270	3,977
Mine Development [Member]
Property Plant And Equipment [Line Items]
Property, plant, equipment and equipment, gross	526,492	497,439
Asset Retirement Obligation Asset [Member]
Property Plant And Equipment [Line Items]
Property, plant, equipment and equipment, gross	82,877	81,520
Construction In Process [Member]
Property Plant And Equipment [Line Items]
Property, plant, equipment and equipment, gross	$ 45,727	$ 80,646

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Goodwill and Other Intangible Assets (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended			9 Months Ended
	Sep. 30, 2020	Jun. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019	Mar. 31, 2016
Acquired Finite Lived Intangible Assets [Line Items]
Amortization expense	$ 100		$ 100	$ 200	$ 200
Goodwill	28,008			28,008		$ 28,008
Mining Permits [Member] | Greenbrier Segment [Member]
Acquired Finite Lived Intangible Assets [Line Items]
Impairment of assets		$ 600
Buchanan [Member]
Acquired Finite Lived Intangible Assets [Line Items]
Goodwill	$ 28,000			$ 28,000		$ 28,000	$ 28,000

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Goodwill and Other Intangible Assets (Schedule of Acquired Intangible Assets) (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2020	Dec. 31, 2019
Acquired Finite Lived Intangible Assets [Line Items]
Intangible assets, Gross carrying amount	$ 5,642	$ 7,142
Intangible assets, Accumulated amortization	1,375	2,063
Total intangible assets, Net carrying amount	$ 4,267	$ 5,079
Mining Permits [Member] | Greenbrier [Member]
Acquired Finite Lived Intangible Assets [Line Items]
Weighted average amortization period (years)		14 years
Intangible assets, Gross carrying amount		$ 1,500
Intangible assets, Accumulated amortization		840
Total intangible assets, Net carrying amount		$ 660
Mining Permits [Member] | Logan [Member]
Acquired Finite Lived Intangible Assets [Line Items]
Weighted average amortization period (years)	15 years	15 years
Intangible assets, Gross carrying amount	$ 1,642	$ 1,642
Intangible assets, Accumulated amortization	815	756
Total intangible assets, Net carrying amount	$ 827	$ 886
Mining Permits [Member] | Buchanan [Member]
Acquired Finite Lived Intangible Assets [Line Items]
Weighted average amortization period (years)	28 years	28 years
Intangible assets, Gross carrying amount	$ 4,000	$ 4,000
Intangible assets, Accumulated amortization	560	467
Total intangible assets, Net carrying amount	$ 3,440	$ 3,533

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Accrued Expenses and Other Current Liabilities (Narrative) (Details) $ in Millions, $ in Millions	Sep. 30, 2020 AUD ($)	Sep. 30, 2020 USD ($)	Dec. 31, 2019 AUD ($)	Dec. 31, 2019 USD ($)
Accrued Expenses and Other Current Liabilities [Abstract]
Stamp duty payable	$ 43.0	$ 30.6	$ 43.0	$ 30.6

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Accrued Expenses and Other Current Liabilities (Schedule of Accrued Expenses and Other Current Liabilities) (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Accrued Expenses and Other Current Liabilities [Abstract]
Wages and employee benefits	$ 58,660	$ 61,008
Taxes other than income taxes	8,895	3,899
Accrued royalties	36,670	43,468
Accrued freight costs	33,829	30,416
Accrued mining fees	71,556	49,027
Acquisition related accruals	30,564	30,190
Other liabilities	17,273	20,780
Total accrued expenses and other current liabilities	$ 257,447	$ 238,788

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Leases (Narrative) (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2020	Mar. 31, 2020
Equipment Embedded Within Mining Service Contracts [Member]
Lessee, Lease, Description [Line Items]
Lease liabilities derecognized		$ 27.0
Right of use assets derecognized		$ 25.9
Minimum [Member]
Lessee, Lease, Description [Line Items]
Operating leases have remaining lease terms	1 year
Maximum [Member]
Lessee, Lease, Description [Line Items]
Operating leases have remaining lease terms	6 years

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Leases (Summary of Operating Right-of Use Assets and Related Lease Liabilities) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Operating lease cost:
Operating lease costs	$ 3,300	$ 7,671	$ 14,650	$ 20,532
Cash paid for operating lease liabilities	2,233	6,968	12,607	18,041
Finance lease costs:
Amortization of right of use assets	619	627	1,618	1,848
Interest on lease liabilities	19	47	88	155
Total finance lease costs	$ 638	$ 674	$ 1,706	$ 2,003

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Leases (Schedule of Supplemental Balance Sheet Information Related to Leases) (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Operating leases:
Operating lease right-of-use assets	$ 21,511	$ 62,566
Finance leases:
Property and equipment	2,150,970	2,132,379
Accumulated depreciation	(607,573)	(499,591)
Property and equipment, net	1,543,397	1,632,788
Current operating lease obligations	9,382	27,204
Operating lease liabilities, less current portion	22,120	48,165
Total operating lease liabilities	31,502	75,369
Current finance lease obligations	94	2,481
Total Lease liability	31,596	77,850
Finance Leases [Member]
Finance leases:
Property and equipment	4,402	7,881
Accumulated depreciation	(3,645)	(5,144)
Property and equipment, net	$ 757	$ 2,737

XML

Leases (Schedule of Weighted Average Calculations for Remaining term And Discount Rates) (Details)	9 Months Ended	12 Months Ended
	Sep. 30, 2020	Dec. 31, 2019
Leases [Abstract]
Weighted average remaining lease term - finance leases	29 days	8 months 1 day
Weighted average remaining lease term - operating leases	3 years 5 months 19 days	2 years 10 months 20 days
Weighted discount rate - finance leases	0.0625%	0.0625%
Weighted discount rate - operating leases	0.0795%	0.08%

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Leases (Schedule of Maturities of Operating and Finance Lease Liabilities) (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Operating Lease
2020	$ 3,286
2021	10,176
2022	9,061
2023	9,223
2024	2,925
Thereafter	1,650
Total lease payments	36,321
Less imputed interest	(4,819)
Total lease liability	31,502	$ 75,369
Finance Lease
2020	94
2021	0
2022	0
2023	0
2024	0
Thereafter	0
Total lease payments	94
Less imputed interest	0
Total lease liability	$ 94

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Leases (Schedule of Maturities of Operating and Finance Lease Liabilities II) (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Operating Lease
Total lease liability	$ 31,502	$ 75,369
Less imputed interest	(4,819)
Total lease payments	36,321
Finance Lease
Total lease liability	94
Less imputed interest	0
Total lease payments	$ 94

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Income Taxes (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Income Tax Contingency [Line Items]
Income tax (benefit) expense	$ (11,169)	$ 30,618	$ (31,525)	$ 119,661
Effective tax rate before discrete items			16.00%
Income loss before tax	(52,963)	$ 99,717	$ (196,514)	403,086
Income tax expense, Discrete			4,100
Income tax benefit, Discrete			27,400
Unrecognized tax benefits	14,200		14,200		$ 14,200
Tax refund	$ 11,300		$ 11,300
Australian Taxation Office [Member]
Income Tax Contingency [Line Items]
Income tax (benefit) expense				$ 119,700
Effective tax rate before discrete items				29.70%

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Interest Bearing Liabilities (Narrative) (Details) $ in Millions, $ in Millions	9 Months Ended
	Sep. 30, 2020 USD ($)	Sep. 30, 2020 AUD ($)	Sep. 30, 2020 USD ($)	Dec. 31, 2019 USD ($)
Debt Instrument [Line Items]
Long-term debt			$ 287.6	$ 330.0
Repayments Of Long Term Debt	$ 207.4
Line of credit			50.0
Placement And Retailment Entitlement Offer [Member]
Debt Instrument [Line Items]
Proceeds from issuance of common stocks	171.6
Debt Instrument, Redemption, Period One [Member]
Debt Instrument [Line Items]
Credit reduction	25.0
Debt Instrument, Redemption, Period Two [Member]
Debt Instrument [Line Items]
Credit reduction	25.0
Debt Instrument, Redemption, Period Three [Member]
Debt Instrument [Line Items]
Credit reduction	25.0
Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Draw from revolving facility	$ 165.0
Revolving Credit Facility [Member] | Debt Instrument, Redemption, Period One [Member]
Debt Instrument [Line Items]
Debt instrument term, possible repayment or extension period	1 month
Revolving Credit Facility [Member] | Debt Instrument, Redemption, Period Two [Member]
Debt Instrument [Line Items]
Debt instrument term, possible repayment or extension period	2 months
Revolving Credit Facility [Member] | Debt Instrument, Redemption, Period Three [Member]
Debt Instrument [Line Items]
Debt instrument term, possible repayment or extension period	3 months
Revolving Credit Facility [Member] | Debt Instrument, Redemption, Period Four
Debt Instrument [Line Items]
Debt instrument term, possible repayment or extension period	6 months
Facility A [Member] | Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity			350.0
Facility A [Member] | Revolving Credit Facility [Member] | Debt Instrument, Redemption, Period One [Member]
Debt Instrument [Line Items]
Debt Instrument Term	1 month
Facility A [Member] | Revolving Credit Facility [Member] | Debt Instrument, Redemption, Period Two [Member]
Debt Instrument [Line Items]
Debt Instrument Term	2 months
Facility A [Member] | Revolving Credit Facility [Member] | Debt Instrument, Redemption, Period Three [Member]
Debt Instrument [Line Items]
Debt Instrument Term	3 months
Facility A [Member] | Revolving Credit Facility [Member] | Debt Instrument, Redemption, Period Four
Debt Instrument [Line Items]
Debt Instrument Term	6 months
Facility B [Member] | Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity		$ 130
Facility C [Member] | Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity			$ 200.0
Facility C [Member] | Revolving Credit Facility [Member] | Debt Instrument, Redemption, Period One [Member]
Debt Instrument [Line Items]
Debt Instrument Term	1 month
Facility C [Member] | Revolving Credit Facility [Member] | Debt Instrument, Redemption, Period Two [Member]
Debt Instrument [Line Items]
Debt Instrument Term	2 months
Facility C [Member] | Revolving Credit Facility [Member] | Debt Instrument, Redemption, Period Three [Member]
Debt Instrument [Line Items]
Debt Instrument Term	3 months
Facility C [Member] | Revolving Credit Facility [Member] | Debt Instrument, Redemption, Period Four
Debt Instrument [Line Items]
Debt Instrument Term	6 months

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Contract Obligations (Summary of Contract Obligations) (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Debt Instrument [Line Items]
Current	$ 38,087	$ 36,935
Non-current	181,611	204,877
Total	219,698	241,812
Coal Leases Contract Liability [Member]
Debt Instrument [Line Items]
Current	843	843
Non-current	20,859	21,312
Total	21,702	22,155
Stanwell Below Market Coal Supply Agreement [Member]
Debt Instrument [Line Items]
Current	37,244	36,092
Non-current	160,752	183,565
Total	$ 197,996	$ 219,657

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Deferred Consideration Liability (Narrative) (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019	Aug. 14, 2018
Deferred Consideration Liability [Line Items]
Deferred consideration liability	$ 193,753	$ 174,605
Stanwell Reserved Area Deferred Consideration [Member]
Deferred Consideration Liability [Line Items]
Deferred consideration liability	$ 193,753	$ 174,605	$ 155,200
Pre-tax discount			13.00%

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Deferred Consideration Liability (Schedule of Deferred Consideration Liability) (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019	Aug. 14, 2018
Deferred Consideration Liability [Line Items]
Deferred consideration liability	$ 193,753	$ 174,605
Stanwell Reserved Area Deferred Consideration [Member]
Deferred Consideration Liability [Line Items]
Deferred consideration liability	$ 193,753	$ 174,605	$ 155,200

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Earnings per Share (Schedule of Earnings per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended						9 Months Ended
	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Sep. 30, 2020	Sep. 30, 2019
Numerator:
Net (loss) income	$ (41,794)	$ (114,330)	$ (8,865)	$ 69,099	$ 117,506	$ 96,820	$ (164,989)	$ 283,425
Less: Net loss attributable to Non-controlling interest	(2)			(2)			(6)	(6)
Net (loss) income attributable to Company stockholders	$ (41,792)			$ 69,101			$ (164,983)	$ 283,431
Denominator:
Weighted-average shares of common stock outstanding	112,582			96,652			102,001	96,652
Effects of dilutive shares	0			2			0	2
Weighted average diluted shares of common stock outstanding	112,582			96,654			102,001	96,654
Earnings Per Share (US$):
Basic	$ (0.37)			$ 0.71			$ (1.62)	$ 2.93
Dilutive	$ (0.37)			$ 0.71			$ (1.62)	$ 2.93

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Derivatives and Fair Value Measurement (Narrative) (Details) - USD ($)	9 Months Ended
	Sep. 30, 2020	Dec. 31, 2019
Fair Value, Inputs, Level 3 [Member] | Projected Cash Flows [Member]
Derivatives, Fair Value [Line Items]
Contingent royalty consideration	$ 0
Wesfarmers Curragh Pty Ltd [Member]
Derivatives, Fair Value [Line Items]
Contingent consideration (Value Share Mechanism)	$ 0
Contingent consideration, royalty period	2 years
Contingent consideration, royalty percentage	25.00%
Forward Contracts [Member]
Derivatives, Fair Value [Line Items]
Notional amount	$ 66,400,000
Unrealized gain (loss), net of tax	(15,000,000.0)
Unrealized loss, net of tax within 6 months thereafter	2,400,000
Foreign Currency Forward Contracts [Member]
Derivatives, Fair Value [Line Items]
Notional amount	51,166,000	$ 24,300,000
Unrealized gain (loss), net of tax	1,000,000.0
Unrealized gains, net of tax	1,600,000
Foreign Currency Forward Contracts [Member] | Not Designated as Hedging Instrument [Member]
Derivatives, Fair Value [Line Items]
Notional amount	26,500,000
Foreign Currency Forward Contracts [Member] | Designated As Hedging Instrument [Member]
Derivatives, Fair Value [Line Items]
Notional amount	$ 24,600,000

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Derivatives and Fair Value Measurement (Summary of Derivative Financial Instruments) (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Forward Contracts [Member]
Derivative [Line Items]
Derivative assets		$ 4,133
Derivative liability	$ 17,318
Forward Contracts [Member] | Other Current Financial Liabilities [Member]
Derivative [Line Items]
Derivative liability	14,955
Forward Contracts [Member] | Other Current Assets [Member]
Derivative [Line Items]
Derivative assets		3,180
Forward Contracts [Member] | Other Non-current Financial Liabilities [Member]
Derivative [Line Items]
Derivative liability	2,363
Foreign Currency Forward Contracts [Member]
Derivative [Line Items]
Derivative assets	2,611
Foreign Currency Forward Contracts [Member] | Other Current Assets [Member]
Derivative [Line Items]
Derivative assets	$ 2,611	$ 953

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Derivatives and Fair Value Measurement (Net Amounts of Derivative Assets and Liabilities) (Details) l in Thousands, $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2020 USD ($) l	Dec. 31, 2019 USD ($) l
Forward Fuel Contracts [Member]
Derivatives, Fair Value [Line Items]
Notional amount | l	165,999	121,957
Foreign Currency Forward Contracts [Member]
Derivatives, Fair Value [Line Items]
Notional amount | $	$ 51,166	$ 24,300

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Derivatives and Fair Value Measurement (Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis) (Details) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Assets/(Liabilities) Total	$ (14,707)	$ 2,590
Forward Commodity Contract [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Assets		3,180
Liabilities	(17,318)
Foreign Currency Forward Contracts [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Assets	2,611	953
Contingent Royalty [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Liabilities		(1,543)
Fair Value, Inputs, Level 2 [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Assets/(Liabilities) Total	(14,707)	4,133
Fair Value, Inputs, Level 2 [Member] | Forward Commodity Contract [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Assets		3,180
Liabilities	(17,318)
Fair Value, Inputs, Level 2 [Member] | Foreign Currency Forward Contracts [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Assets	$ 2,611	953
Fair Value, Inputs, Level 3 [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Assets/(Liabilities) Total		(1,543)
Fair Value, Inputs, Level 3 [Member] | Contingent Royalty [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Liabilities		$ (1,543)

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Derivatives and Fair Value Measurement (Quantitative Information about Level 3 Fair Value Measurements) (Details) - Fair Value, Inputs, Level 3 [Member] T in Thousands	9 Months Ended
	Sep. 30, 2020 USD ($) T $ / t
Projected Cash Flows [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Contingent Royalty Liability | $	$ 0
Black-Sholes Options Model [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Contingent Royalty Liability | $	$ 0
Measurement Input, Gross Sales Price Forecast Per Tonne [Member] | Maximum [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Contingent Royalty Liability, Measurement Input	91.1
Measurement Input, Gross Sales Price Forecast Per Tonne [Member] | Minimum [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Contingent Royalty Liability, Measurement Input	75.3
Measurement Input, Gross Sales Price Forecast Per Tonne [Member] | Weighted Average [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Contingent Royalty Liability, Measurement Input	84.5
Measurement Input, Export Volume Forecast [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Contingent Royalty Liability, Measurement Input | T	2,121
Export Volume Forecast Period	6 months

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Accumulated Other Comprehensive Loss (Schedule of Accumulated Other Comprehensive Losses) (Details) - USD ($) $ in Thousands	3 Months Ended						9 Months Ended
	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Sep. 30, 2020	Sep. 30, 2019
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated other comprehensive income, beginning of period			$ (45,206)				$ (45,206)
Net current-period other comprehensive income (loss):
Gain (loss) in other comprehensive income (loss) before reclassifications							(34,980)
Loss reclassified from accumulated other comprehensive income (loss)							17,682
Tax effects	$ (1,107)	$ (6,534)	13,781	$ (1,796)	$ (383)	$ (2,391)	6,140
Total other comprehensive income gain (loss)	17,894	$ 58,707	(87,759)	$ (17,295)	$ 386	$ 5,021	(11,158)	$ (11,888)
Accumulated other comprehensive income, end of period	(56,364)						(56,364)
Foreign Currency Translation Adjustments [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated other comprehensive income, beginning of period			(48,265)				(48,265)
Net current-period other comprehensive income (loss):
Gain (loss) in other comprehensive income (loss) before reclassifications							461
Total other comprehensive income gain (loss)							461
Accumulated other comprehensive income, end of period	(47,804)						(47,804)
Net Unrealized Gain (Loss) On Cash Flow Hedges [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated other comprehensive income, beginning of period			2,378				2,378
Net current-period other comprehensive income (loss):
Gain (loss) in other comprehensive income (loss) before reclassifications							(33,157)
Loss reclassified from accumulated other comprehensive income (loss)							15,441
Tax effects							6,149
Total other comprehensive income gain (loss)							(11,567)
Accumulated other comprehensive income, end of period	(9,189)						(9,189)
Net Unrealized Gain (Loss) On Cash Flow Foreign Currency Hedges [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated other comprehensive income, beginning of period			$ 681				681
Net current-period other comprehensive income (loss):
Gain (loss) in other comprehensive income (loss) before reclassifications							(2,284)
Loss reclassified from accumulated other comprehensive income (loss)							2,241
Tax effects							(9)
Total other comprehensive income gain (loss)							(52)
Accumulated other comprehensive income, end of period	$ 629						$ 629

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Commitments (Narrative) (Details) $ in Millions	9 Months Ended
	Sep. 30, 2020 USD ($)
Commitments [Abstract]
Purchase commitments for capital expenditures	$ 24.7
Take-or-pay arrangement term	11 years
Take-or-pay arrangements, total	$ 1,500.0
Take-or-pay arrangements, due within the next year	$ 111.6

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Commitments (Future Minimum Royalties) (Details) $ in Thousands	Sep. 30, 2020 USD ($)
Commitments [Abstract]
2020	$ 2,301
2021	5,402
2022	5,235
2023	5,159
2024	5,031
Thereafter	25,775
Total	$ 48,903

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Related-Party Transaction (Narrative) (Details) - Xcoal [Member] - USD ($)		3 Months Ended		9 Months Ended
	Oct. 31, 2020	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Related Party Transaction [Line Items]
Revenue from related parties		$ 17,100,000	$ 103,600,000	$ 106,200,000	$ 396,800,000
Related party receivables		92,000,000.0		92,000,000.0		$ 86,800,000
Bad debt expense from trading counterparties		0	$ 0	0	$ 0
Purchases from related parties		$ 2,400,000		$ 10,300,000
Subsequent Event [Member]
Related Party Transaction [Line Items]
Due from related party	$ 85,200,000
Receipts from related party	$ 6,800,000

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Contingencies (Narrative) (Details) - 9 months ended Sep. 30, 2020 $ in Millions, $ in Millions	AUD ($) Mt / yr	USD ($)
Loss Contingencies [Line Items]
Surety bonds		$ 32.3
Facility B [Member]
Loss Contingencies [Line Items]
Guarantee Obligations Available	$ 130.0
Company guarantees	$ 93.3
Rail Links Litigation Versus Aurizon [Member]
Loss Contingencies [Line Items]
Litigation contingency, rail access entitlement (in MMtpa) | Mt / yr	1.5
Loss contingency accrual		$ 5.9