Coronado Global Resources Inc. Q2 2024 10-Q Filing

Ticker: CODQL · Form: 10-Q · Filed: Aug 5, 2024 · CIK: 1770561

Sentiment: neutral

Topics: coal-mining, sec-filing, financials, quarterly-report

TL;DR

**Coronado Global Resources Inc. filed its Q2 2024 10-Q, showing updated financials and assets for its coal mining operations.**

AI Summary

Coronado Global Resources Inc. filed its 10-Q for the period ending June 30, 2024. The filing details financial performance and operational updates for the second quarter of 2024. Key financial figures and asset details are presented, reflecting the company's status in the bituminous coal and lignite mining sector.

Why It Matters

This filing provides investors and analysts with the latest financial and operational data for Coronado Global Resources Inc., crucial for understanding the company's performance in the coal mining industry.

Risk Assessment

Risk Level: medium — The company operates in the volatile bituminous coal and lignite mining sector, which is subject to significant market and regulatory risks.

Key Numbers

Key Players & Entities

FAQ

What were Coronado Global Resources Inc.'s total assets as of June 30, 2024?

The filing indicates total assets were approximately $167,645,373 as of June 30, 2024.

What is Coronado Global Resources Inc.'s Standard Industrial Classification code?

Coronado Global Resources Inc.'s SIC code is BITUMINOUS COAL & LIGNITE MINING [1220].

When was this 10-Q filing submitted to the SEC?

This 10-Q filing was submitted on August 5, 2024.

What is the fiscal year end for Coronado Global Resources Inc.?

The company's fiscal year ends on December 31.

What period does this 10-Q report cover?

This 10-Q report covers the period ending June 30, 2024.

Filing Stats: 4,361 words · 17 min read · ~15 pages · Grade level 15.7 · Accepted 2024-08-05 15:11:15

Key Financial Figures

Filing Documents

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements Condensed Consolidated Balance Sheets as of June 30, 2024 and December 31, 2023 4 Unaudited Condensed Consolidated Statements of Operations and Comprehensive Income for the three and six months ended June 30, 2024 and 2023 5 Unaudited Condensed Consolidated Statements of Stockholders' Equity for the three and six months ended June 30, 2024 and 2023 6 Unaudited Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2024 and 2023 7 Notes to Unaudited Condensed Consolidated Financial Statements 8 Report of Independent Registered Public Accounting Firm 21

Management's Discussion and Analysis of Financial Condition and Results of

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 22

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 42

Controls and Procedures

Item 4. Controls and Procedures 44

– OTHER INFORMATION

PART II – OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 45

Risk Factors

Item 1A. Risk Factors 45

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 45

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 45

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 45

Other Information

Item 5. Other Information 45

Exhibits

Item 6. Exhibits 46

SIGNATURES

SIGNATURES 47 Table of Contents Coronado Global Resources Inc. Form 10-Q June 30, 2024 4

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION ITEM 1.

FINANCIAL STATEMENTS

FINANCIAL STATEMENTS Condensed Consolidated Balance Sheets (In US$ thousands, except share data) Assets Note (Unaudited) June 30, 2024 December 31, 2023 Current assets: Cash and cash equivalents $ 264,691 $ 339,295 Trade receivables, net 281,621 263,951 Income tax receivable 26,812 44,906 Inventories 4 197,304 192,279 Other current assets 6 109,790 103,609 Total current assets 880,218 944,040 Non-current assets: Property, plant and equipment, net 5 1,529,828 1,506,437 Right of use asset – operating leases, net 8 69,563 80,899 Goodwill 28,008 28,008 Intangible assets, net 3,007 3,108 Restricted deposits 16 67,973 68,660 Deferred income tax assets 28,190 27,230 Other non-current assets 11,995 19,656 Total assets $ 2,618,782 $ 2,678,038 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 99,991 $ 113,273 Accrued expenses and other current liabilities 7 244,337 312,705 Asset retirement obligations 15,024 15,321 Contract obligations 39,463 40,722 Lease liabilities 8 21,048 22,879 Interest bearing liabilities 9 1,360 — Other current financial liabilities 10 4,011 2,825 Total current liabilities 425,234 507,725 Non-current liabilities: Asset retirement obligations 150,369 148,608 Contract obligations 44,747 61,192 Deferred consideration liability 285,563 277,442 Interest bearing liabilities 9 260,882 235,343 Other financial liabilities 10 24,433 5,307 Lease liabilities 8 51,650 61,692 Deferred income tax liabilities 100,511 100,145 Other non-current liabilities 39,384 34,549 Total liabilities $ 1,382,773 $ 1,432,003 Common stock $ 0.01 par value; 1,000,000,000 shares authorized, 167,645,373 shares issued and outstanding as of June 30, 2024 and December 31, 2023 1,677 1,677 Series A Preferred stock $ 0.01 par value; 100,000,000 shares authorized, 1 Share issued and outstand

FINANCIAL STATEMENTS

FINANCIAL STATEMENTS 1. Description of Business, Basis of Presentation (a) Description of the Business Coronado Global Resources Inc. 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 United States, or U.S. (b) Basis of Presentation The interim unaudited condensed consolidated financial statements have been prepared in accordance with the requirements of 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

financial statements and should be read in conjunction with the audited consolidated financial Company's Annual Report on Form 10-K filed with the SEC and the Australian Securities Exchange, or the ASX, on February 20, 2024. The interim unaudited condensed consolidated financial are presented in U.S. dollars, unless otherwise They include the accounts of Coronado Global Resources Inc. and its wholly-owned subsidiaries. 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" and "Coronado" are used interchangeably to refer to Coronado Global Resources Inc. and its subsidiaries, collectively, or to Coronado Global Resources Inc., as appropriate to the context. All intercompany balances and transactions have been eliminated upon consolidation. In the opinion of management, these interim financial 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, 2023 has been derived from the Company's audited consolidated balance sheet at that date. The Company's results of operations for the three and six months ended June 30, 2024 are not necessarily indicative of the results that may be expected for the year ending December 31, 2024. 2. Summary of Significant Accounting Policies Please see Note 2 "Summary of Significant Accounting Policies" contained in the audited consolidated financial on F

financial statements. The

financial statements. The Company is currently evaluating the impact that the updated standard will have in its financial statement disclosures. ASU No. 2023-09 "Income Taxes" (Topic 740) : In December 2023, the FASB issued ASU 2023-09, which modifies the rules on income tax disclosures to require companies to disclose specific categories in the rate reconciliation, the income or loss from continuing operations before income tax expense or benefit (separated between domestic and foreign) and income tax expense or benefit from continuing operations (separated by federal, state, and foreign). The updated standard is effective for annual periods beginning after December 15, 2024. The Company is currently evaluating the impact that the updated standard will have in its financial Table of Contents NOTES TO UNAUDITED CONDENSED CONSOLIDATED

FINANCIAL STATEMENTS

FINANCIAL STATEMENTS (Continued) Coronado Global Resources Inc. Form 10-Q June 30, 2024 9 There have been no other recent accounting pronouncements not yet effective that have significance, or potential significance, to the Company's consolidated financial 3. Segment Information The Company has a portfolio of operating mines and development projects in Queensland, Australia, and in the of Pennsylvania, Virginia and West Virginia in the U.S. The operations in Australia, or Australian Operations, comprise the 100%-owned Curragh producing mine complex. The operations in the United States, or U.S. Operations, comprise two 100%-owned producing mine complexes (Buchanan and Logan), one 100%- owned idled mine complex (Greenbrier) and two development properties (Mon Valley and Russell County). The Company operates its

business

business along two reportable segments: Australia and the United The organization of the two reportable segments reflects how the Company's chief operating decision maker, or CODM, manages and allocates resources to the various components of the Company's business. 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, taxes, 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 the Company's 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 unaudited Condensed Consolidated Financial Statements. Reportable segment results as of and for the three and six months ended June 30, 2024 and 2023 are presented below: (in US$ thousands) Australia United Other and Corporate Total Three months ended June 30, 2024 Total revenues $ 458,491 $ 215,337 $ — $ 673,828 Adjusted EBITDA 94,582 34,466 ( 8,259 ) 120,789 Total assets 1,279,668 1,062,234 276,880 2,618,782 Capital expenditures 15,969 48,396 113 64,478 Three months ended June 30, 2023 Total revenues $ 431,806 $ 295,720 $ — $ 727,526 Adjusted EBITDA 54,700 116,487 ( 9,661 ) 161,526 Total assets 1,149,614 1,018,177 5

FINANCIAL STATEMENTS

FINANCIAL STATEMENTS (Continued) Coronado Global Resources Inc. Form 10-Q June 30, 2024 10 The reconciliations of Adjusted EBITDA to net income attributable to the Company for the three and six months ended June 30, 2024 and 2023 are as follows: Three months ended Six months ended June 30, June 30, (in US$ thousands) 2024 2023 2024 2023 Net income $ 45,200 $ 91,311 $ 16,199 $ 199,171 Depreciation, depletion and amortization 51,263 38,880 96,612 78,303 Interest expense (net of interest income) (1) 13,116 14,180 26,445 28,845 Income tax expense 7,401 21,975 3,290 56,005 Other foreign exchange gains (2) 2,159 ( 6,414 ) ( 9,104 ) ( 9,405 ) Losses on idled assets (3) 1,677 1,325 2,164 3,076 Increase (decrease) in provision for discounting and credit losses ( 27 ) 269 ( 200 ) ( 3,719 ) Consolidated Adjusted EBITDA $ 120,789 $ 161,526 $ 135,406 $ 352,276 (1) Includes interest income of $ 4.4 million and $ 1.8 million for the three months ended June 30, 2024 and 2023, respectively, and $ 7.5 million and $ 2.8 million for the six months ended June 30, 2024 and 2023, respectively. (2) The balance primarily relates to foreign exchange gains and losses recognized in the translation of short-term inter-entity balances in certain entities within the group that are denominated in currencies other than their respective functional currencies. These gains and losses are included in "Other, net" on the unaudited Consolidated Statement of Operations and Comprehensive Income. (3) These losses relate to idled non-core assets that the Company has an active plan to sell. The reconciliations of capital expenditures per the Company's segment information to capital expenditures disclosed on the unaudited Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2024 and 2023 are as follows: Six months ended June 30, (in US$ thousands) 2024 2023 Ca

FINANCIAL STATEMENTS

FINANCIAL STATEMENTS (Continued) Coronado Global Resources Inc. Form 10-Q June 30, 2024 11 Three months ended June 30, 2023 (in US$ thousands) Australia United States Total Product Groups: Metallurgical coal $ 403,861 $ 257,292 $ 661,153 Thermal coal 19,260 37,032 56,292 Total coal revenue 423,121 294,324 717,445 Other (1) 8,685 1,396 10,081 Total $ 431,806 $ 295,720 $ 727,526 Six months ended June 30, 2024 (in US$ thousands) Australia United States Total Product Groups: Metallurgical coal $ 837,809 $ 403,386 $ 1,241,195 Thermal coal 39,285 16,892 56,177 Total coal revenue 877,094 420,278 1,297,372 Other (1)(2) 17,502 27,103 44,605 Total $ 894,596 $ 447,381 $ 1,341,977 Six months ended June 30, 2023 (in US$ thousands) Australia United States Total Product Groups: Metallurgical coal $ 776,380 $ 540,314 $ 1,316,694 Thermal coal 37,545 101,551 139,096 Total coal revenue 813,925 641,865 1,455,790 Other (1)(2) 16,542 20,908 37,450 Total $ 830,467 $ 662,773 $ 1,493,240 (1) Other revenue for the Australian segment includes the amortization of the Stanwell non-market coal supply contract obligation liability. (2) Other revenue for the U.S. segment includes $ 25.0 million and $ 17.5 million for the six months ended June 30, 2024 and 2023, respectively, relating to termination fee revenue from coal sales contracts cancelled at our U.S. operations. 4. Inventories (in US$ thousands) June 30, 2024 December 31, 2023 Raw coal $ 76,788 $ 55,998 Saleable coal 60,830 81,314 Total coal inventories 137,618 137,312 Supplies and other inventory 59,686 54,967 Total inventories $ 197,304 $ 192,279 Coal inventories measured at its net realizable value were $ 2.6 million and $ 2.4 million as at June 30, 2024 and December 31, 2023, respectively, and primarily relates to coal designated for deliveries under the Stanwell non-

FINANCIAL STATEMENTS

FINANCIAL STATEMENTS (Continued) Coronado Global Resources Inc. Form 10-Q June 30, 2024 12 5. Property, Plant and Equipment (in US$ thousands) June 30, 2024 December 31, 2023 Land $ 28,915 $ 28,282 Buildings and improvements 114,173 102,642 Plant, machinery, mining equipment and transportation vehicles 1,241,850 1,189,088 Mineral rights and reserves 389,868 389,868 Office and computer equipment 10,250 9,771 Mine development 573,209 579,717 Asset retirement obligation asset 86,213 88,384 Construction in process 171,217 143,041 Total cost of property, plant and equipment 2,615,695 2,530,793 Less accumulated depreciation, depletion and amortization 1,085,867 1,024,356 Property, plant and equipment, net $ 1,529,828 $ 1,506,437 6. Other Assets (in US$ thousands) June 30, 2024 December 31, 2023 Other current assets Prepayments $ 30,502 $ 34,175 Long service leave receivable 7,884 8,438 Tax credits receivable 3,265 3,265 Deposits to acquire capital items 26,198 18,935 Short-term deposits 21,744 21,906 Other 20,197 16,890 Total other current assets $ 109,790 $ 103,609 The Company has other current assets which includes prepayments, favorable mineral leases, long service leave receivable, equipment deposits, short-term deposits and coalfield employment enhancement tax credit receivable. Short-term deposits are term deposits held with financial institutions with maturity greater than ninety days and less than twelve months and do not meet the cash and cash equivalents criteria. 7. Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities consist of the following: (in US$ th

View Full Filing

View this 10-Q filing on SEC EDGAR

View on Read The Filing