EDGAR 10-K Filing

Company CIK: 1770561
Filing Year: 2025
Filename: 1770561_10-K_2025_0001562762-25-000021.json

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ITEM 1. BUSINESS
Item 1.
“Business-Regulatory
Matters-Australia” and “Business-Regulatory Matters
-United States.”
We could be negatively affected if
we fail to maintain satisfactory labor relations.
Relations with
our employees
and, where
applicable, organized
labor are
important to
our success.
Enterprise
bargaining and other disputes between us and our employees or disputes affecting our contractors may result in
strikes or uncompetitive work practices.
As of
December 31,
2024, we
had 1,951
employees.
In addition,
as of
December 31,
2024, there
were 1,790
contractors
supplementing
the
permanent
workforce,
primarily
at
Curragh.
As
of
December
31,
2024,
approximately
10.1%
of our
total employees,
all at
our
Australian Operations,
were represented
by organized
labor unions and
covered by the EA.
This EA has
a four-year expiration date
and will remain
in place by
operation
of the Fair Work Act 2009 (Cth) until
replaced or terminated by the Fair
Work Commission.
Our U.S. Operations
employ a 100% non-union labor force.
Future industrial
action by
our employees
or mining
contractors’ employees or
involving trade unions
could disrupt
operations and negatively impact mine productivity,
production and profitability.
Our operations
may impact
the environment
or cause
exposure to
hazardous substances,
which could
result in material liabilities to us.
We are
subject to
extensive environmental
laws and
regulations,
and our
operations may
substantially
impact
the
environment
or
cause
exposure
to
hazardous
materials
to
our
contractors,
our
employees
or
local
communities. We use hazardous materials
and generate hazardous or other regulated
waste, which we store in
our storage or disposal
facilities. We may become subject to
statutory or common law claims
(including damages
claims) as
a result
of
our
use of
hazardous
materials
and generation
of hazardous
waste.
A number
of laws,
including, in the United States,
the CERCLA or Superfund,
and the RCRA, and in
Australia, the EP Act, impose
liability
relating
to
contamination
by hazardous
substances.
Furthermore,
the
use
of
hazardous
materials
and
generation of hazardous and other
waste may subject us to
investigation and require the clean-up
of soil, surface
water, groundwater and other
media.
Coronado Global Resources Inc. Form 10-K December 31,
Mining
operation
process,
including
blasting
and
processing
ore
bodies,
can
also
generate
environmental
impacts. These
impacts include,
but are
not limited
to, leakages
of polluting
substances,
explosions,
flooding,
fires, accidental mine water discharges,
and excessive dust and noise. Such
risks could result in damage to
the
applicable mine site, personal
injury to our employees
and contractors, environmental
damage, decreased coal
production and
possible legal
liability under
environmental regulations.
Employee or
strict liability
claims under
common law
or environmental
regulations in
relation to
these matters
may arise,
for example, out
of current
or
former activities
at sites
that we
own, lease
or operate
and at
properties to
which hazardous
substances have
been sent for treatment,
storage, disposal or other
handling. Our liability
for such claims may
be strict, joint and
several with other miners or parties or with our
contractors, such that we may be held
responsible for more than
our
share
of
the
contamination
or
other
damages,
or
even
for
the
entire
amount
of
damages
assessed.
Additionally,
any violations of
environmental laws by
us could lead
to, among other
things, the imposition
on us
of substantial fines,
penalties, other civil and
criminal sanctions, the curtailment
or cessation of
operations, orders
to
pay
compensation,
orders
to
remedy
the
effects
of
violations
and
take
preventative
steps
against
possible
future violations,
increased compliance costs,
or costs
for environmental remediation,
rehabilitation or rectification
works.
We maintain extensive Met
coal refuse areas
and slurry impoundments at
our mining properties. At
Curragh, coal
slurry
is
disposed
of
by
pumping
into
an
impoundment
area
where
particles
are
allowed
to
settle.
We
have
procedures
in
place
that
the
Curragh
slurry
impoundments
remain
below
the
surrounding
topography
so
that
there is
minimal likelihood
of failure
and/or spills.
At our
U.S. Operations,
refuse areas
and impoundments
are
frequently inspected and subject
to extensive governmental regulation.
Slurry impoundments have
been known
to
fail,
releasing
large
volumes
of
coal
slurry
into
the
surrounding
environment.
Structural
failure
of
an
impoundment can result in extensive damage to the environment
and natural resources, such as bodies of water
that the coal slurry reaches, as well as create liability for
related personal injuries, property damages and injuries
to natural
resources and plant
and wildlife.
Coronado has four
refuse areas
throughout our
U.S. mining
properties.
Only one area is a slurry impoundment. One refuse area utilizes a slurry cell system, that is designed to limit the
amount of slurry
that is
subject to a
problematic release. Two of
the refuse areas
utilize a combined
refuse system
and do not impound slurry. The one slurry impoundment overlies mined out areas, which can pose a heightened
risk of
failure. The
presence of
the mined
out works
is incorporated
into the
design of
this impoundment.
If our
impoundment
or
any
of
the
other
refuse
areas
were
to
fail,
we
could
be
subject
to
substantial
claims
for
the
resulting environmental contamination and associated liability,
as well as for related fines and penalties.
Changes in and
compliance with government policies,
regulations
or legislation may
adversely affect our
financial condition and results of operations.
The coal mining industry
is subject to regulation
by federal, state and
local authorities in each
relevant jurisdiction
with respect
to
a range
of industry
specific and
general
matters.
Any future
legislation
and
regulatory
change
imposing more constraints or
more stringent requirements may
affect the coal mining
industry and may adversely
affect our financial condition and results of operations. Examples of such changes are, future laws or regulations
that may limit
the emission
of GHGs, attach
a cost to
GHG emissions,
or limit the
use of thermal
coal in power
generation, more stringent workplace health and safety laws, more rigorous environmental laws, and changes to
existing taxation and royalty legislation.
Compliance
with
applicable
federal,
state
and
local
laws
and
regulations
may
become
more
costly
and
time-consuming
and
may
delay
commencement
or
interrupt
continuation
of
exploration
or
production
at
our
operations. We have
incurred, and may
in the future
incur, significant expenditures to comply
with such regulation
and legislation. These laws are constantly evolving and may become increasingly
stringent. The ultimate impact
of complying with existing laws
and regulations is not always
clearly known or determinable due
in part to the
fact
that
certain
implementation
of
the
regulations
for
these
laws
have
not
yet
been
promulgated
and
in
certain
instances are undergoing
revision. In addition,
judicial decisions limiting
the authority of
regulatory agencies,
or
decisions
impacting
current
regulations
and
policies
implemented
by
such
agencies,
could
create
uncertainty
regarding the regulatory landscape and impact the Company’s
ability to plan for future investments.
These laws and regulations,
particularly new legislative or
administrative proposals (or
judicial interpretations of
existing laws and
regulations), could result in
substantially increased capital, operating
and compliance costs and
could have
a material
adverse effect
on our
operations
and our
customers’ ability
to use
our products.
Due in
part to
the extensive
and comprehensive
regulatory requirements,
along with
changing interpretations
of these
requirements, violations of applicable federal, state and local laws
and regulations occur from time to time in the
coal industry
and
minor violations
have occurred
at our
Australian
Operations
and
our U.S.
Operations
in the
past.
Coronado Global Resources Inc. Form 10-K December 31,
Moreover, changes in the law
may impose additional standards and a heightened degree
of responsibility for us
and our stockholders, directors and employees; may
require unprecedented compliance efforts; could
divert our
management’s
attention;
and
may
require
significant
expenditures.
For
example,
we
may
also
be
subject
to
unforeseen
environmental
liabilities
resulting
from
coal-related
activities,
which
may
be
costly
to
remedy
or
adversely impact
our operations.
In particular,
the acceptable
level of
pollution and
the potential
abandonment
costs and obligations for which we
may become liable as a result
of our activities may be
difficult to assess under
the current legal
framework. To the extent that
required expenditures, as
with all
costs, are not
ultimately reflected
in the
prices of
coal, our
operating results
may be
detrimentally impacted.
The costs
and operating
restrictions
necessary for compliance
with safety
and environmental laws
and regulations,
which is a
major cost
consideration
for
our
Australian
Operations
and
U.S.
Operations,
may
have
an
adverse
effect
on
our
competitive
position
relative to foreign producers and operators in
other countries which may not be
required to incur equivalent costs
in their operations.
We are
also affected
by various
other international,
federal, state,
local and
tribal or
indigenous environmental
laws
and
regulations
that
impact
our
customers.
To
the
extent
that
such
environmental
laws
and
regulations
reduce customer demand for or
increase the price of coal,
our operating results may
be detrimentally impacted.
For
additional
information
about
the
various
regulations
affecting
us,
see
Item 1.
“Business-Regulatory
Matters-Australia” and “Business-Regulatory Matters
-United States.”
We
are
subject
to
extensive
forms
of
taxation,
which
imposes
significant
costs
on
us,
and
future
regulations
and
developments
could
increase
those
costs
or
limit
our
ability
to
produce
coal
competitively.
Federal,
state
or
local
governmental
authorities
in
nearly
all
countries
across
the
global
coal
mining
industry
impose various
forms of
taxation
on coal
producers,
including production
taxes,
sales-related
taxes,
royalties,
stamp duty, environmental
taxes and income taxes.
In 2022, the Queensland State Government in Australia amended the
Mineral Resources Regulation 2013 (Qld)
introducing
additional
higher
tiers
to
the
coal
royalty
rates
effective
from
July
1,
2022,
increasing
the
royalty
payable by our Australian Operations.
The tiers currently applicable are as set out below:
•
7% for average coal price per Mt sold up to and including
A$ 100 per Mt;
•
12.5% for average coal price per Mt sold from A$100 to
A$150 per Mt;
•
15% for average coal price per Mt sold from A$150 to
A$175 per Mt;
•
20% for average coal price per Mt sold from A$175 to
A$225 per Mt;
•
30% for average coal price per Mt sold from A$225 to
A$300 per Mt; and
•
40% for average coal price per Mt sold above A$300 per
Mt.
If new legislation or
regulations related to various forms
of coal taxation or
income or other taxes
generally, which
increase our costs or limit our ability to compete
in the areas in which we sell coal, or which
adversely affect our
key customers, are adopted, or if
the basis upon which such
duties or taxes are assessed
or levied, changes or
is different from that provided by us, our business, financial condition or results of
operations could be adversely
affected.
We may be subject
to litigation, the disposition
of which could negatively
affect our profitability and cash
flow
in
a
particular
period,
or
have
a
material
adverse
effect
on
our
business,
financial
condition
and
results of operations.
Our profitability or cash flow in
a particular period could be affected by
an adverse ruling in any litigation that
may
be filed against us in the future. In addition, such litigation could have
a material adverse effect on our business,
financial condition
and results of operations. See Item 3. “Legal Proceedings.”
Coronado Global Resources Inc. Form 10-K December 31,
We have no
registered trademarks for
our Company
name used by
us in the
United States or
any other
countries, and failure to obtain those registrations
could adversely affect our business.
Although
we
have
filed
a
trademark
application
for
use
of
the
stylized
mark
“CORONADO
STEEL
STARTS
HERE” in the United States and Australia, our applications are still pending
and the corresponding mark has not
been registered
in
the
United
States
or
Australia.
We
have
not
filed
for
this
or
other
trademarks
in
any
other
country. During trademark registration proceedings, we may receive rejections. If so, we will have an opportunity
to respond,
but we
may be
unable to
overcome such
rejections. In
addition, Intellectual
Property Australia
and
the United
States Patent
and Trademark Office
and comparable agencies
in many
foreign jurisdictions
may permit
third parties to oppose pending trademark
applications and to seek to
cancel registered trademarks. If opposition
or
cancellation
proceedings
are
filed
against
our
trademark
application,
our
trademark
may
not
survive
such
proceedings,
and/or
we
may
be
required
to
expend
significant
additional
resources
in
an
effort
to
defend
ourselves in the proceedings or identify a suitable substitute
mark for future use.
Failure to comply with applicable anti-corruption and trade laws, regulations and policies could result in
fines and criminal
penalties, causing
a material adverse
effect on our
business, operating and
financial
prospects or performance.
Any
fraud,
bribery,
misrepresentation,
money
laundering,
violations
of
applicable
trade
sanctions,
anti-competitive
behavior
or
other
misconduct
by
our
employees,
contractors,
customers,
service
providers,
business
partners
and
other
third parties
could
result
in violations
of relevant
laws
and regulations
by us
and
subject us or relevant
individuals to corresponding regulatory
sanctions or other claims,
and could also result
in
an event of default under our financing arrangements. These unlawful activities
and other misconduct may have
occurred in
the past
and may
occur in
the future
and may
result in
civil and
criminal liability
under increasingly
stringent laws relating
to fraud, bribery,
sanctions, competition and
misconduct or cause
serious reputational
or
financial
harm
to
us.
In
addition,
failure
to
comply
with
environmental,
health
or
safety
laws
and
regulations,
privacy laws and regulations,
U.S. trade sanctions,
the U.S. Foreign Corrupt
Practices Act and other
applicable
laws or regulations could result in litigation, the assessment of damages, the imposition of penalties, suspension
of production
or distribution,
costly changes
to equipment
or processes
due to
required corrective
action, or
a
cessation or interruption of operations.
We
have
policies
and
procedures
to
identify,
manage
and
mitigate
legal
risks
and
address
regulatory
requirements
and
other
compliance
obligations.
However,
there
can
be
no
assurance
that
such
policies,
procedures and established internal controls
will adequately protect us against
fraudulent or corrupt activity and
such activity could have an adverse effect on our reputation,
financial condition and results of operations.
Risks Specific to Our Common Stock
Our certificate of incorporation and bylaws include
provisions that may discourage a change in control.
Provisions contained in our amended and restated certificate of incorporation, or certificate of incorporation, and
amended and
restated bylaws, or
bylaws, and
Delaware law
could make
it more
difficult for a
third-party to acquire
us, even
if
doing
so
might
be beneficial
to
our stockholders.
Provisions
of
our certificate
of
incorporation
and
bylaws impose
various
procedural and
other requirements
that could
make it
more difficult
for stockholders
to
effect certain corporate actions.
We have elected not to be governed by Section 203 of the General Corporation Law of
the State of Delaware,
or
the DGCL (or any successor provision thereto),
until immediately following the time at
which the EMG Group no
longer beneficially
owns in
the aggregate
shares of
our common
stock representing
at least
10% of
our voting
stock, in which case we
shall thereafter be governed by Section
203 if and for
so long as Section 203
by its terms
would apply
to us.
Section 203
provides that
an interested
stockholder,
along with
its affiliates
and associates
(i.e., a stockholder that has
purchased greater than 15%,
but less than 85%, of
a company’s outstanding voting
stock (with
some exclusions)),
may not
engage in
a business
combination
transaction
with the
company for
a
period of three years after buying more than 15% of a company’s outstanding voting stock unless certain criteria
are met or certain other corporate actions are taken by the company.
These provisions could limit the price
that certain investors might be willing
to pay in the future for
shares of our
common stock and may have the effect of delaying
or preventing a change in control.
Coronado Global Resources Inc. Form 10-K December 31,
Our
certificate
of
incorporation
limits
the
personal
liability
of
our
directors
for
certain
breaches
of
fiduciary duty.
Our
certificate
of
incorporation
and
bylaws
include
provisions
limiting
the
personal
liability
of
our
directors
for
breaches
of
fiduciary
duty
under
the
DGCL.
Specifically,
our
certificate
of
incorporation
contains
provisions
limiting
a
director’s
personal
liability
to
us
and
our
stockholders
to
the
fullest
extent
permitted
by
the
DGCL.
Furthermore, our
certificate of
incorporation provides
that no director
shall be
liable to
us and
our stockholders
for
monetary
damages
resulting
from
a
breach
of
fiduciary
duty
as
a
director,
except
to
the
extent
that
such
exemption from liability or limitation thereof is
not permitted under the DGCL. The principal
effect of this limitation
on liability
is that
a stockholder
will be
unable to
prosecute an
action for
monetary damages
against a
director
unless the
stockholder can
demonstrate a
basis for
liability that
cannot be
eliminated under
the DGCL.
These
provisions, however, should not limit or eliminate our right or any stockholder’s right to seek non-monetary relief,
such as an injunction or rescission,
in the event of a
breach of a director’s fiduciary duty. These provisions do not
alter a director’s liability under
U.S. federal securities laws.
The inclusion of these
provisions in our certificate
of
incorporation may discourage or deter stockholders or management from bringing
a lawsuit against directors for
a breach of
their fiduciary
duties, even
though such an
action, if successful,
might otherwise have
benefited us
and our stockholders.
Coronado
Group
LLC
and
the
EMG
Group
have
substantial
control
over
us
and
are
able
to
influence
corporate matters.
Coronado Group
LLC and
the EMG
Group have
significant
influence over
us, including
control over
decisions
that
require
the
approval
of
stockholders,
which
could
limit
the
ability
of
other
stockholders
to
influence
the
outcome of stockholders votes.
As of
December 31,
2024, the
EMG Group
indirectly held
50.4% of
our outstanding
shares of
common stock.
Therefore, the EMG
Group has
effective control
over the outcome
of votes on
all matters requiring
approval by
stockholders. There is a risk that the interests of the EMG Group could conflict with or differ from our interests or
the interests of
other stockholders.
In addition, pursuant
to the terms
of the Stockholder’s
Agreement, dated
as
of September
24, 2018,
between us
and Coronado
Group LLC,
or the
Stockholder’s Agreement,
so long
as it
beneficially owns in the aggregate at least 25% of the outstanding shares of our common stock, the EMG Group
will have
the ability
to exercise
substantial control
over certain
of our
transactions,
including change
of control
transactions,
such
as
mergers
and
capital
and
debt
raising
transactions.
See Item
5.
“Market
for
Registrant’s
Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities” for a description of the
Stockholder’s Agreement.
Further, pursuant to
the terms of the Series A
Share, Coronado Group and the
EMG Group or its successors
or
permitted
assigns,
as
the
beneficial
owner
of
the
Series A
Share,
at
its
option,
will
have
the
ability
to
elect
a
specified number of directors, or the Series A Directors, based on
the EMG Group’s aggregate level of beneficial
ownership of shares
of our common
stock. For more
details on the
ability of Coronado
Group and the
EMG Group
to elect Series A Directors, as
well as the rights of
stockholders to participate in the removal of
any such Series
A
Directors,
see
Item 5.
“Market
for
Registrant’s
Common
Equity,
Related
Stockholder
Matters
and
Issuer
Purchases of Equity Securities.”
Moreover, the
EMG Group’s beneficial
ownership of shares of
our common stock may
also adversely affect
the
price of our
common stock
to the extent
equity investors
perceive disadvantages
in owning common
stock of a
company with a controlling stockholder.
In addition, the EMG Group
is in the business of making
investments in
companies and may, from time to time, acquire interests in businesses that directly or
indirectly compete with us,
as well as businesses of our existing or potential significant
customers. The EMG Group may acquire or seek
to
acquire assets that
we seek to
acquire and, as
a result, those
acquisition opportunities
may not be
available to
us or
may be
more expensive
for us
to pursue,
and as
a result,
the interests
of the
EMG Group
may not
align
with the interests of our other stockholders.
The EMG Group has the
right, subject to certain conditions, to
require us to cooperate in
a sale of shares
of our common stock held by it (including in the form
of CDIs) under the Securities Act.
Pursuant to the Registration
Rights and Sell-Down Agreement,
dated as of September 24,
2018, between us and
Coronado
Group LLC,
or
the
Registration
Rights
and
Sell-Down
Agreement,
Coronado
Group LLC
(or
its
successors
or
permitted
assigns
or
transferees)
has
the
right,
subject
to
certain
conditions,
to
require
us
to
cooperate in a
sell-down of
shares of
our common
stock or
CDIs held by
it. By virtue
of its majority
ownership,
exercising its registration rights and selling a large number of shares or CDIs, Coronado Group LLC could cause
undue volatility in the
prevailing market price of
our common stock. See
Item 5. “Market for Registrant’s Common
Equity, Related Stockholder
Matters and Issuer Purchases of Equity Securities.”
Coronado Global Resources Inc. Form 10-K December 31,
Our non-employee directors and their respective
affiliates, including the EMG Group, may
be able to take
advantage of a corporate opportunity that would otherwise
be available to us.
The corporate opportunity
and related
party transactions provisions
in our
certificate of incorporation
could enable
any
of
our
non-employee
directors
or
their
respective
affiliates,
including
the
EMG
Group,
to
benefit
from
corporate opportunities
that might
otherwise be
available to
us. Subject
to the
limitations of
applicable law,
our
certificate of incorporation, among other things, will:
•
permit
us
to
enter
into
transactions
with
entities
in
which
one
or
more
non-employee
directors
are
financially or otherwise interested;
•
permit any non-employee director or
his or her affiliates to
conduct a business that competes
with us and
to make investments in any kind of property in which we
may make investments; and
•
provide that if
any non-employee director
becomes aware of
a potential business
opportunity, transaction
or
other
matter
(other
than
one
expressly
offered
to
that
non-employee
director
solely
in
his
or
her
capacity
as
our
director),
that
non-employee
director
will
have
no
duty
to
communicate
or
offer
that
opportunity to
us, and
will be
permitted to
communicate
or offer
that opportunity
to his
or her
affiliates
and pursue or acquire such opportunity for himself
or herself, and that non-executive director
will not be
deemed
to
have
acted
in
a
manner
inconsistent
with
his
or
her
fiduciary
or
other
duties
to
us
or
our
stockholders regarding the opportunity or acted in bad faith or in a manner inconsistent with
our and our
stockholders’ best interests.
These provisions enable a
corporate opportunity that would
otherwise be available to
us to be taken by
or used
for the
benefit of
the
non-employee
directors
or their
respective
affiliates,
which
include the
EMG Group
as a
result of the rights granted to it under the Stockholder’s Agreement.
General Risk Factors
Any
failure
to
maintain
effective
internal
control
over
financial
reporting
may
adversely
affect
our
financial condition and results of operations.
Our
management
is
responsible
for
establishing
and
maintaining
adequate
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
generally accepted accounting principles in the United
States, or U.S. GAAP.
During the course of the preparation of our financial statements,
we evaluate and correct any deficiencies in
our
internal controls over
financial reporting. If
we fail to
maintain an effective system
of disclosure or
internal controls
over financial
reporting, including
satisfaction of
the requirements
of Section
404 of
the Sarbanes-Oxley
Act of
2002, we may not be able to report
accurately or timely on our financial results or adequately identify and reduce
fraud. Therefore, the financial condition of our business could be adversely
affected, current and potential future
stockholders could lose confidence in us and/or
our reported financial results, which may cause
a negative effect
on the trading price of our
CDIs, and we could be exposed
to litigation or regulatory
proceedings, which may be
costly or divert management attention.
The requirements of
being a public company
in the United
States and Australia may
strain our resources,
divert
management’s
attention,
and
affect
our
ability
to
attract
and
retain
executive
management
and
qualified board members.
Our CDIs are
currently listed on
the ASX and
we are registered
as a foreign
company in
Australia. As such
we
are subject to continuous compliance requirements under relevant Australian laws and regulations, including the
listing rules
of the
ASX, as
amended from
time to
time, or
the ASX
Listing Rules,
and certain
provisions of
the
Corporations Act 2001 (Cth),
or the Corporations Act.
Coronado Global Resources Inc. Form 10-K December 31,
As a U.S.
public company, we are subject
to the reporting
requirements of the
Exchange Act, the
Sarbanes-Oxley
Act
of
2002,
the
Dodd-Frank
Wall
Street
Reform
and
Consumer
Protection
Act
of
and
other
applicable
securities laws, rules and regulations. Compliance with these
laws, rules, and regulations may increase our legal
and
financial
compliance
costs,
make
some
activities
more
difficult,
time-consuming,
or
costly,
and
increase
demand on
our systems
and resources.
The Exchange
Act requires,
among other
things,
that
we file
annual,
quarterly, and
current reports with respect
to our business and
results of operations. In
the absence of a waiver
from the ASX
Listing Rules, these
SEC periodic reports
will be in addition
to our periodic
filings required by
the
ASX Listing
Rules.
The
Sarbanes-Oxley
Act of
2002 requires,
among
other things,
that we
maintain
effective
disclosure
controls
and
procedures
and
internal
control
over
financial
reporting.
In
order
to
maintain
and,
if
required, improve our disclosure
controls and procedures and
internal control over financial
reporting to meet this
standard, significant resources and management oversight will be required. As a result, management’s attention
may be diverted from other
business concerns and our
costs and expenses will
increase, which could harm our
business
and
results
of
operations.
We
may
need
to
hire
more
employees
in
the
future
or
engage
outside
consultants, which will increase our costs and expenses.
In addition, changing laws,
regulations, and standards relating to
corporate governance and public disclosure
are
creating
uncertainty
for
public
companies,
increasing
legal
and
financial
compliance
costs
and
making
some
activities more time consuming.
These laws, regulations
and standards are subject
to varying interpretations, in
many cases due to their
lack of specificity and,
as a result, their
application in practice may
evolve over time as
new
guidance
is
provided
by
regulatory
and
governing
bodies.
This
could
result
in
continuing
uncertainty
regarding compliance matters and higher costs necessitated by ongoing revisions to disclosure and governance
practices.
We
intend
to
invest
resources
to
comply
with
evolving
laws,
regulations
and
standards,
and
this
investment may result in increased
general and administrative expenses
and a diversion of management’s
time
and
attention
from
sales-generating
activities
to
compliance
activities.
If
our
efforts
to
comply
with
new
laws,
regulations and standards differ from the activities intended by
regulatory or governing bodies due to ambiguities
related
to
their
application
and
practice,
regulatory
authorities
may
initiate
legal,
administrative
or
other
proceedings against us and our business may be harmed.
A state
court located within
the State
of Delaware (or, if
no state court
located within the
State of
Delaware
has jurisdiction, the
federal district court
for the District
of Delaware) will
be, to the
extent permitted by
law,
the
sole
and
exclusive
forum
for
substantially
all
state
law
based
disputes
between
us
and
stockholders.
Our bylaws provide
that, unless we
consent in writing
to the selection
of an alternative
forum, a state
or federal
court within the State of Delaware will be the sole and
exclusive forum for:
•
any derivative action or proceeding brought on our behalf;
•
any action or proceeding asserting a claim of breach of
a fiduciary duty owed by any director or
officer or
other employee or
agent of the
Company to the
Company or the
Company’s stockholders or debtholders;
•
any
action
or
proceeding
asserting
a
claim
against
the
Company
or
any
director
or
officer
or
other
employee or
agent of
the Company
arising pursuant
to any
provision of
the DGCL
or our
certificate of
incorporation or bylaws; or
•
any action
asserting
a claim
against
the
Company
or
any
director
or
officer
or
other
employee
of
the
Company
governed
by
the
internal
affairs
doctrine
or
other
“internal
corporate
claims”
as
defined
in
Section 115 of the DGCL.
The choice of
forum provision may limit
a stockholder’s ability
to bring a claim
against us or our
directors, officers,
employees or
agents in
a forum
that it
finds favorable,
which may
discourage stockholders
from bringing
such
claims
at
all.
Alternatively,
if a
court
were
to
find
the
choice
of forum
provision
contained
in
our
bylaws
to
be
inapplicable or unenforceable
in an action,
we may incur
additional costs associated
with resolving such
action
in
another
forum,
which
could
materially
and
adversely
affect
our
business,
financial
condition
and
results
of
operations. However, the choice of forum provision does
not apply to any actions
arising under the Securities Act
or the Exchange Act.
The issuance of additional
common stock or securities
convertible into our
common stock could
result
in dilution of the ownership interest in us held by existing
stockholders.
We may
issue more
CDIs in
the future
in order
to fund
future investments, acquisitions,
capital raising
transactions
or
to
reduce
our
debt.
While
we
will
be
subject
to
the
constraints
of
the
ASX
Listing
Rules
regarding
the
percentage of our
capital that we
are able to
issue within a
12-month period
(subject to applicable
exceptions),
any such equity raisings may dilute the ownership of existing
stockholders for shares of our common stock.
Coronado Global Resources Inc. Form 10-K December 31,
We are subject to general market
risks that are inherent to companies
with publicly traded securities and
the price of our securities may be volatile.
We are subject to
the general market risks that
are inherent in all
securities traded on a
securities exchange. This
may result
in fluctuations
in the
trading price
of our
securities that are
not explained
by our
fundamental operations
and activities. There is
no guarantee that the
price of our securities
will increase in the
future, even if our
earnings
increase.
Our securities may trade at, above or below the price paid by an investor for those securities due to a number of
factors, including, among others:
•
general market conditions, including investor sentiment;
•
movements in interest and exchange rates;
•
fluctuations in the local and global market for listed stocks;
•
actual or anticipated
fluctuations in
our interim and
annual results and
those of other
public companies
in our industry;
•
industry cycles and trends;
•
mergers and strategic alliances in the coal industry;
•
new or changes in government laws or regulations;
•
potential or actual military conflicts or acts of terrorism;
•
new or changes in accounting principles;
•
announcements concerning us or our competitors;
•
changes in government policy,
legislation or regulation;
•
inclusion of our securities in or removal from particular market
indices (including S&P and ASX indices);
and
•
the nature of the markets in which we operate,
including adverse weather conditions.
Other factors
that may
negatively affect
investor sentiment
and influence
us, specifically,
or the
stock market,
more generally, include acts
of terrorism, an outbreak of international hostilities, fires, floods, earthquakes,
labor
strikes, civil
wars, natural
disasters, outbreaks
of disease,
including a
global pandemic,
or other
man-made
or
natural events.
Stock markets have
experienced extreme price
and volume fluctuations
in the past
that are
often disproportionate
or
unrelated
to
the
operating
performance
of
companies.
There
can
be
no
guarantee
that
trading
prices
and
volumes of any securities
will be sustained. These
factors may materially affect the
market price of our
securities,
regardless of our
operational performance. This
may then significantly
impact our ability
to raise new
equity which
may be required to fund our operations if our financial
performance deteriorates due to other factors.
The payment of dividends and repurchases of our common stock are dependent on a number of factors,
and future
dividend payments
and repurchases
cannot be
assured and
are within
the discretion
of our
Board of Directors.
The
payment
of
dividends
in
respect
of
our
common
stock
is
impacted
by
several
factors,
including
our
profitability,
retained earnings,
capital requirements
and free
cash flow,
as well
as applicable
covenants under
the Indenture (as defined below) governing our senior secured notes and covenants under the ABL Facility.
Any
future
dividend
payments
will
be
determined
by
and
declared
at
the
discretion
of
our
Board
of
Directors
considering the factors above,
among others. There is no guarantee that
any dividend payments will be paid,
or
repurchases will be made, by
us in the future,
or if paid, paid at previous
levels. From time to time,
our Board of
Directors may also cancel previously announced dividend
payments.
Coronado Global Resources Inc. Form 10-K December 31,
ITEM 1B. UNRESOLVED
STAFF COMMENTS
None.
ITEM 1C. CYBERSECURITY
Risk Management and Strategy:
Coronado
has
implemented
software
governance
tools
to
assess,
identify,
and
manage
material
risks
from
cybersecurity threats. Coronado heavily relies on information technology systems throughout its operations, and
acknowledges
the
critical
importance
of
safeguarding
its
digital
assets
and
protecting
sensitive
information.
Regular security assessments are conducted
to monitor technological implementations against
global standards.
Coronado
also
maintains
a
suite
of
security
measures
to
help
defend
against
unauthorized
access
and
misappropriation
of
technology.
Additionally,
the
Coronado
IT
department
distributes
training
and
awareness
information to personnel covering email
security,
password security,
data handling security,
enterprise resource
planning systems and cloud security.
Coronado’s cybersecurity
risk management
is integrated
into its Group
risk management
processes, which
are
governed
by
the
Group
Risk
Management
Framework
and
Risk
Management
Policy.
The
Risk
Management
Framework and Risk Management Policy outline:
●
Risk management responsibilities;
●
Risk assessment frequency;
●
Risk assessment criteria (likelihood and consequence);
●
The requirement to implement internal controls; and
●
The level within the organization risk assessments are
to be performed.
Certain key controls considered through Coronado’s
internal control processes are linked to cybersecurity
risks,
these include controls over access and change management for key financial
systems. Where the management
of
these
key
financial
systems
is
outsourced
to
third
parties,
Coronado
obtains
assurance
reports
on
the
effectiveness
of
key
vendor
controls.
Additionally,
Coronado
uses
third
parties
to
conduct
cybersecurity
penetration testing at Coronado's U.S.
and Australian operations. In 2023,
Coronado created the Digital Advisory
Committee,
or
Committee,
which
is
chaired
by
the
Vice
President
of
Information
Technology.
As
part
of
Coronado’s processes to
oversee and identify
cybersecurity threats associated with its use of
third-party
service
providers, the Committee is tasked
with reviewing new software requests
from Coronado’s various divisions. The
Committee is
comprised of
business systems,
plant and
operational personnel
from both
Coronado’s U.S.
and
Australian operations.
As of
the filing
of this
Annual Report
on Form
10-K, Coronado
is not
aware of
any cybersecurity
incidents that
have occurred
since the
beginning of
2024 that
have materially
affected,
or are
reasonably likely
to
materially
affect, Coronado, including Coronado’s
business strategy,
results of operations or financial condition.
Coronado
could be subject to cybersecurity incidents in
the future which may have a material adverse
effect on Coronado’s
business strategy, results of operations or financial
condition. For further information on
Coronado’s risks relating
to cybersecurity threats, see “Operation and Technology
Risks” in “Risk Factors” on page 47
of this Form 10-K.
Governance:
The
Board
of
Directors
is
responsible
for
reviewing,
ratifying,
and
monitoring
systems
of
risk
management,
internal
control,
and
legal
compliance.
This
includes
identifying
the
main
risks
associated
with
Coronado's
businesses,
including
cybersecurity
risk,
and
implementing
appropriate
systems
to
manage
such
risks.
As
outlined in the Audit
Governance and Risk
Committee,
or AGRC,
charter, the
Board of Directors
has delegated
to
the
AGRC
responsibility
for
overseeing
corporate
and
governance
risk
management,
financial
risk
management, and compliance
with applicable laws,
regulations, standards, and
best practice guidelines.
In 2024,
the AGRC
charter was
amended to
confirm that
this responsibility
includes the
oversight of
cybersecurity risk.
The
AGRC
is
informed
of
cybersecurity
risks
by
management,
which
includes
an
annual
cybersecurity
risk
presentation.
As part of their
review of
reports
from management, the
AGRC reports
cybersecurity risk updates
to the Board of Directors,
which enables the Board of Directors to incorporate the insights of such reports into its
overall risk oversight analysis.
Coronado Global Resources Inc. Form 10-K December 31,
Supporting this governance
framework, the
Executive Leadership
Team
,
or ELT
,
is responsible
for maintaining
effective
systems
of
risk
management
and
internal
control.
Within
this
framework,
the
Vice
President
of
Information
Technology
is
responsible
for
the
cybersecurity
function.
The
Vice
President
of
Information
Technology has experience in various roles involving managing information systems and cybersecurity functions
and
developing
cybersecurity
strategies.
The
Vice
President
of
Information
Technology
reports
to
the
Group
Chief Financial Officer,
or Group CFO, who is a member of the ELT.
In order to prevent, detect, mitigate and
remediate cybersecurity incidents, Coronado maintains a Cyber Incident
Response
Plan
(Plan).
The
Plan
outlines
Coronado's
approach
to
identifying
and
containing
cybersecurity
incidents, along with recovery
and improvement processes.
The Plan includes incident
assessment criteria that
allow for
escalation of
potentially material
cybersecurity
incidents. The
Group CFO
reports to
the AGRC
in the
event
of
a
potentially
material
cybersecurity
incident.
Additionally,
annual
reviews
of
Coronado’s
current
cybersecurity status and strategy are presented to the Board
of Directors and the AGRC by management.
Coronado Global Resources Inc. Form 10-K December 31,
ITEM 2.
PROPERTIES
Summary Overview of Mining Operations
Coronado owns and controls
a portfolio of operating
mines and development projects
in Queensland, Australia,
and
Virginia,
West
Virginia
and
Pennsylvania
in
the
United
States.
Our
Australian
Operations
consist
of
the
100%-owned Curragh mine
complex consisting of
two open cut
mines (Curragh North
and Curragh South)
and
an underground
mine (Mammoth
Underground,
formerly known
as Curragh
Underground). With
respect to
our
U.S. Operations, Coronado owns a 100% interest in two producing
mine complexes (Buchanan and Logan) and
two
development
properties
(Mon
Valley
Minerals
(formerly
called
Pangburn-Shaner-Fallowfield)
and
Russell
County). On
January 14,
2025, Coronado
successfully completed
the sale
of its
non-core idle
Greenbrier mine
complex.
Therefore,
reserves
and
resources
information
in
this
Annual
Report
on
Form
10-K
do
not
include
Greenbrier.
Figures 1
and 2
below show the
locations of our
mining properties in
Australia and
the United States,
respectively.
Figure 1: Australian Operations:
Coronado Global Resources Inc. Form 10-K December 31,
12.4
25.3
12.8
12.6
25.4
12.6
26.6
Australia
United States
Group
ROM production (Mt)
FY22
FY23
FY24
9.8
6.2
16.0
10.0
5.8
15.8
9.7
5.7
15.3
Australia
United States
Group
Saleable production (Mt)
FY22
FY23
FY24
Figure 2: U.S. Operations:
The
below
charts
show
ROM
production
and
saleable
production
for
our
Australian
Operations
and
our
U.S.
Operations for the years ended December 31, 2024, 2023
and 2022.
See the descriptions of our material mining properties
under “-Curragh,” “-Buchanan,” “-Logan” and “-Mon
Valley”
below
for
more
information.
Table
below
contains
a
summary
of
the
key
information
relative
to
the
various
Coronado
properties.
Tables
and
provide
a
summary
of
our
coal
resources
and
reserves,
respectively, as of December
31, 2024.
Coronado Global Resources Inc. Form 10-K December 31,
Table 1.
Summary of Coronado Properties
Property
(Property
Stage)
Mineral Rights
(1)
Permit
Status
(2)
Mine Type(s)
Coal Type
Coal Seams of
Economic
Interest
(Formation)
Processing
Plants/
Facilities
Curragh
(Production)
25,586 hectares
leased; 6,381
hectares owned
Permitted
Surface &
Underground
HCC, SCC,
PCI, Thermal
Various (Rangal
Coal Measures)
CPP1 - 1,100 raw
Mt per hour;
CPP2 - 1,200 raw
Mt per hour; Rail
Loadout
Buchanan
(Production)
25,853 hectares
leased
(3)
; 7,725
hectares owned
1 Permit
Underground
Low-Vol
Pocahontas #3
(Pocahontas
Formation)
CPP - 1,270 raw
Mt per hour; Rail
Loadout
Logan
(Production)
12,666 hectares
leased
(3)
; 69
hectares owned
27 Permits
Surface &
Underground
HVA, HVB,
Thermal
Various
(Kanawha
Formation)
CPP - 1,088 raw
Mt per hour; Rail
Loadout
Mon Valley
(Development)
1,339 hectares
leased
(3)
; 40,276
hectares owned
Not
Permitted
Underground
(4)
High-Vol
Upper Freeport
(Freeport
Formation)
Future
Russell County
(Development)
7,111
hectares
leased
(3)
; 378
hectares owned
Not
Permitted
Underground
(4)
High-Vol
Lower Castle
(Norton
Formation);
Upper Horsepen
(Middle Lee
Formation)
Future
(1)
We are
not aware of
any significant encumbrances or
defects in title
with respect to
any of our
mining properties.
Certain credit
facilities of the Company are secured by a lien on
substantially all of the Company’s assets, including
mining properties.
(2)
We believe we
have secured
all applicable
environmental licenses
and permits
under applicable
law and
have all
necessary permits
and licenses regarding cultural heritage, native
title and various other social issues to support
current mining operations.
(3)
Subject to the exercise of our renewal rights thereunder, most of the leases at our U.S. mining properties expire upon exhaustion
of the relevant reserves.
(4)
Proposed mine type.
Coronado Global Resources Inc. Form 10-K December 31,
Table 2.
Summary Coal Resources Exclusive of Reserves at End
of the Fiscal Year Ended December 31,
2024.
(1)
Coal Resources (In Situ, MMt)
(2)(3)
Quality (Air-Dried Basis)
Measured
Indicated
Measured
+
Indicated
Inferred
Ash
Sulfur
Volatile
Matter
Australia
Open cut
23.6%
0.6%
19.9%
Underground
18.6%
0.4%
18.1%
Total
Australia
United States
Buchanan
-
16.0%
0.8%
18.0%
Logan
17.0%
1.0%
31.0%
Mon Valley
-
-
-
-
-
-
-
Russell County
-
29.0%
0.7%
23.0%
Total
United States
Total
(1)
For more
information regarding price
assumptions used
in the
calculation of
coal resources
as of
December 31,
2024, see
the
individual property disclosures below.
(2)
Australian resources are estimated inclusive of 5.3%
in-situ moisture.
United States resources are estimated on a
dry basis.
(3)
Some numerical figures in the
above table have been subject
to rounding adjustments. Accordingly,
numerical figures shown as
totals may not equal the sum of the figures that
precede them.
Table
3.
Summary Coal
Reserves (Marketable
Sales Basis)
at End
of the
Fiscal Year
Ended December
31, 2024.
(1)
Demonstrated Coal Reserves (Wet
Tons,
Washed or Direct Shipped, MMt)
(2)(4)
Quality (Air-Dried Basis)
Proven
Probable
Total
Ash
Sulfur
Volatile
Matter
Australia
Open cut
12.9%
0.5%
19.3%
Underground
10.0%
0.3%
16.9%
Total
Australia
United States
Buchanan
6.0%
0.7%
20.0%
Logan
8.0%
0.9%
35.0%
Mon Valley
8.0%
1.2%
(3)
35.0%
Russell County
8.0%
0.9%
31.0%
Total
United States
Total
(1)
For more
information regarding
price assumptions
used in
the calculation
of coal
reserves as
of December
31, 2024,
see the
individual property disclosures below.
(2)
For more information regarding moisture assumptions used in the calculation of coal
reserves as of December 31, 2024, see the
individual property disclosures below.
(3)
Life-of-mine,
or
LOM,
sulfur
for
Pangburn
is
an
estimated
1.2%;
however,
overall
Mon
Valley
complex
reserve
average
is
1.4%sulfur.
(4)
Some numerical figures in the
above table have been subject
to rounding adjustments. Accordingly,
numerical figures shown as
totals may not equal the sum of the figures that
precede them.
Coronado Global Resources Inc. Form 10-K December 31,
Curragh
Curragh is a
production-stage mining property that
consists of two
active, open cut,
surface mines (Curragh
North
and Curragh South) and one underground mine (Mammoth Underground).
Coal mine production at the Curragh
property
has
been
historically
accomplished
by
surface
mining
methods
since
the
mine’s
inception
in
1983.
Presently, coal mine production at the Curragh property is accomplished
by both surface mining methods
and a newly developed underground
mine. Curragh coals are widely
known for their low ash, low
to mid volatile
matter, low
sulfur and low
phosphorous content.
Curragh Met coal
products are
also known for
their consistent
delivered quality,
which supports
a consistent
offtake across
a diversified
market base.
A map
of the
Curragh
tenements is shown in Figure 3.
Figure 3.
Coronado Curragh Mine Complex Property Location
Map.
Coronado Global Resources Inc. Form 10-K December 31,
The Curragh mine
complex is
located within the
Bowen Basin coalfields,
approximately 200
kilometers by road
west of Rockhampton, Queensland, Australia, and approximately 14 kilometers North of the town of Blackwater,
Queensland, Australia. The
coordinates of CPP1,
which is located
within Curragh Main,
are 688,561 meters
East,
7,400,933 meters North
in the AMG66 grid
system. Curragh owns
and operates the
necessary CPPs and
load-
out system
for dispatches
via Blackwater
rail line
to the
Port of
Gladstone or
the Stanwell
Power Station.
See
Item 1. “Business-Transportation
-Australian Operations” for
additional information regarding
the rail and port
services available to Curragh.
Curragh also has maintenance
facilities for the fleet
of mining equipment, as
well
as office
buildings for
the mine
staff and
personnel.
Established sealed
roads connect
the mine
to the
town of
Emerald, Queensland,
Australia,
to the
west and
the
Port of
Gladstone
to the
east.
Third-party
rail providers
operate the Blackwater rail line and transport
Curragh export coal, for sale to international customers, to
both the
RGTCT
and
the
WICET
at
the
Port
of
Gladstone.
Curragh
domestic
coal
is
loaded
onto
train
wagons
for
transportation to the Stanwell Power Station for power
generation.
Curragh has ready access
to water,
electricity and personnel
to support its operations.
SunWater Ltd.
supplies
raw water
to the mine
complex from
the Fairbairn
Dam via
the Bedford
Weir.
The mine complex
also recycles
water
from
on-site
dams
and
old
open-cut
pit voids
that
capture
rainfall
and
water
from
dewatering
activities.
Curragh has a dedicated
66-kilovolt, or kV,
power supply to support
the mining operations
with a capacity of
up
to 57-megawatt sourced from the
main grid power.
The substation is located on the
southwest corner of ML1878
with
both
66kV
and
22kV
distribution
networks
to
supply
the
draglines,
shovel
and
CPPs.
There
is
adequate
power
on
site
for
establishing
the
underground
mine
and
commencing
the
first
two
continuous
miner
units;
however,
upgrades
to
the
site infrastructure
are required
for full
underground
production
with
four
continuous
miner units.
The
MRA
and
the
MERCPA,
together,
provide
for
the
assessment,
development
and
utilization
of
mineral
resources
in
Queensland
to
the
maximum
extent
practicable,
consistent
with
sound
economic
and
land
use
management. The MRA vests ownership of minerals, with limited exceptions, in the “Crown,” which in relation to
Curragh,
is
the
Queensland
government.
A
royalty
is
payable
to
the
Queensland
government
for
the
right
to
extract
minerals.
The
MRA
also
creates
different
tenures
for
different
mining
activities,
such
as
prospecting,
exploring and
mining. A ML
is the
most important tenure,
as it permits
the extraction
of minerals
in conjunction
with other required authorities. The MRA imposes general conditions
on a ML.
Coronado
controls
the
coal
mining
rights
at
Curragh
under
coal
and
infrastructure
MLs
and
three
MDLs
granted pursuant
to the
MRA. We refer
to the
MLs and MDLs
at Curragh, collectively, as
the Tenements. Renewal
of certain Tenements
will be required during
the mine life of
Curragh and the Queensland
government can vary
the terms
and conditions
on renewal.
There are
a number
of existing
petroleum tenements
which overlap
with
the
Tenements.
The
priority,
consent
and
coordination
requirements
under
the
MRA,
MERCPA
and
the
Petroleum
and
Gas
(Production
and
Safety)
Act
(Qld)
(as
relevant)
may
apply
with
respect
to
those
overlaps.
Extensive
statutory
protocols
govern
the
relationships
between
co-existing
mining
and
exploration
rights and these
protocols are largely focused
on encouraging the overlapping
tenement holders to negotiate and
formulate arrangements
that enable the
co-existence of
their respective
interests. To
date, we have
negotiated
arrangements in place with all of our overlapping
tenement holders and full access
to all of our Tenements.
See
Item 1. “Business-Regulatory Matters-Australia” for additional
information regarding Curragh’s Tenements.
Property control and mining rights at Curragh are entirely expressed in the MLs and MDLs mentioned above. An
overlapping
petroleum
tenure
exists
over
the
southern
and
eastern
extents
of
the
Tenements.
Under
the
MERCPA,
this
requires
annual
information
exchanges,
including
the
provision
and
maintenance
of
joint
information management
plans with the
overlapping tenement
holder.
Curragh is
compliant with the
legislation
and there are no current restrictions to coal mining.
As conditions to certain
of the Tenements, Curragh is subject to royalties payable
to the Queensland government
on a regulated tiered
structure introduced July
1, 2022. This tiered
royalty payment regime
is dependent on the
received AUD/t
revenue received
from the
coal sales,
and varies
from 7%
for up
to A$100/t
sales, up
to 40%
payable for
sales over
A$300/t. These
royalties are
in addition
to the
Stanwell rebate,
as described
in Item
1.
“Business-Customers-Stanwell.” Additionally, if MDL 162
advances from development
to production,
we would
be required to
pay under a
private royalty deed
a base royalty
of A$0.50 per
Mt of coal and
a royalty of
A$0.70
for every Mt of SCC produced above 2.5 MMt per year.
A joint venture between
Arco Australia Ltd., Australian Consolidated Industries
Ltd., R.W. Miller & Co.
and Mitsui
& Co. (Australia) first began development on certain
of the Tenements in 1983.
Later, Arco Australia Ltd. bought
out the
other joint
venturers
and, in
2000, sold
the Curragh
property to
Wesfarmers
Ltd. In
2014, Wesfarmers
acquired MDL 162 from Peabody Budjero Pty
Ltd.
Coronado acquired all the Tenements
from Wesfarmers Ltd.
in March 2018.
Production history has
been approximately 9.8
MMt in 2022,
10.0 MMt in
2023 and 9.6
MMt in
2024.
Coronado Global Resources Inc. Form 10-K December 31,
Beginning
in the
1960’s,
various
tenement
holders
began prospecting
and exploratory
drilling
at Curragh.
We
currently
have
an
active,
ongoing
exploration
program
at
Curragh
that
allows
us
to
update
and
refine
the
geological
model
ahead
of
pit
development.
Recently,
we
have
increasingly
focused
on
an
underground
exploration program,
which has
included seismic
2-D
and 3-D
surveys and
core drilling
for gas,
geotech, coal
quality
and
spontaneous
combustion
evaluation.
Additional
exploration
has
included
permeability
and
hydrological assessments.
Open cut coal mine development
at the Curragh property is presently
accomplished by surface mining methods
and has been so historically
since the mine’s inception.
The mine characteristics and output
levels allow it to be
ranked as
a large
coal operation
when compared
to domestic
producers in
Australia and
worldwide.
Curragh
operates four large electric draglines, one large electric
shovel and additional fleets of hydraulic excavators.
Curragh has two CPPs,
CPP1 and CPP2.
CPP1 is the oldest
of the two
processing plants and has
a documented
nameplate
capacity
of
1,100
raw
tons
per
hour,
or
tph
(as
received).
CPP2
has
a
documented
nameplate
capacity
of
1,200
tph
(as
received)
with
a
capability
of
up
to
tph
when
processing
selected
feed
types.
Curragh has a loadout facility for loading coal onto railcars,
which is connected to the main Blackwater rail link.
Generally, the mining equipment and facilities at Curragh are in good operating condition.
We focus on the long-
term
potential
of
the
mine
complex
and
regularly
monitor
developments
in
the
mining
industry
for
technology
improvements and
new equipment
that could
help us
increase efficiency
and lower our
costs. Curragh’s
oldest
mining
equipment,
including
two
draglines,
began
operations
in
1983.
Prior
to
Coronado
taking
over
mining
operations,
Wesfarmers
Ltd.
made
improvements
to
the
processing
facilities
at
Curragh,
including
the
commissioning of the second CPP
in 2012 and replacing the raw
coal crushing system at Curragh
Main with an
updated circuit
in 2016.
Wesfarmers Ltd.
also started
a corrosion
and structural
repair program
over ten
years
ago that
has continued
since acquisition.
This program
helps ensure
that the
assets are
available well
into the
future. From time to time, we also
update and improve other equipment and facilities to maintain their usefulness
and optimize our competitiveness. As of December 31, 2024, the book value of Curragh and its associated plant
and equipment was $717.5 million.
Underground mining
commenced at
the Mammoth
Underground Mine
in late
2024 via
the final
highwall in
the
Curragh North open pit mine. The underground mining method being used at Mammoth is bord and pillar mining
using primary extraction of
panels with roadway widths
of 6.5 meters, reducing
to 6 meters where
the overburden
thickness or
mining conditions
require. There
is a
phased
production ramp
up planned
through 2025,
with
full
production expected
in 2026
from the
Mammoth Underground
Mine. Underground
mining is
planned initially
in
the Mammoth
seam across
three mining
areas: Mammoth
South, Central
and North.
From 2034
underground
mining will transition
to a lower
seam called the
Mackenzie seam and
mine out the
remining reserves from
this
lower seam to end of mine life which is currently approximately
20 years in total.
We are
not aware of
any significant
encumbrances or
defects in title
with respect
to the Curragh
property.
We
believe
we
have
secured
all
applicable
environmental
licenses
and
permits
under
both
Queensland
and
Australian Commonwealth
legislation and
have all
permits and
licenses regarding
cultural heritage,
native title
and various
other social
issues. See
Item 1.
“Business-Regulatory Matters-Australia”
for a discussion
of the
permitting conditions applicable to Curragh.
Summaries of Curragh’s
coal resources
and reserves estimates as
of December 31, 2024
and 2023 are shown
in Tables
4 and 5, respectively.
Coronado Global Resources Inc. Form 10-K December 31,
Table
4.
Curragh
-
Summary
of
Coal
Resources
Exclusive
of
Reserves
at
the
End
of
the
Fiscal
Year
Ended December 31, 2024 and 2023.
(1)
Coal Resources
(Wet Tons, In Situ, MMt)
(2)(3)(4)(5)
Quality (Air-Dried Basis)
Measured
Indicated
Measured
+
Indicated
Inferred
Ash
Sulfur
Volatile
Matter
December 31, 2024
Open Cut
23.6%
0.60%
19.9%
Underground
18.6%
0.40%
18.1%
Total
December 31, 2023
Open Cut
22.9%
0.60%
19.1%
Underground
18.6%
0.40%
18.1%
Total
(1)
Curragh determines the resources exclusive of reserves below a 15:1
in-situ strip ratio as being suitable for
open pit mining, and
above 15:1 in-situ strip ratio being suitable for underground
mining with a minimum seam thickness of 1.8
meters.
(2)
There are resources suitable for open
cut mining outside of the declared
reserves.
The initial economic assessment
for resources
exclusive of reserves
as of December
31, 2023, and
2024 assumed the
same revenue pricing
based on an
assumed long-term
average realized sales
price of $133
per Mt (FOB
for the open
cut resources and
$140 per Mt
(FOB for the
underground resources.
This is explained further in Section 11.5 of the Curragh TRS.
(3)
Table 1-1 of the Curragh TRS provides a summary of Curragh resource tons inclusive
of reserve tons as of December 31, 2023.
(4)
Reported on a 5.3% in-situ moisture basis.
(5)
Some numerical figures in the
above table have been subject
to rounding adjustments. Accordingly,
numerical figures shown as
totals may not equal the sum of the figures that
precede them.
Table
5.
Curragh -
Summary of
Coal Reserves
(Marketable
Sales Basis)
at the
End of
the Fiscal
Year
Ended December 31, 2024 and 2023.
(1)
Demonstrated Coal Reserves (Wet
Tons, Washed
or Direct Shipped, MMt)
(2)(3)
Quality (Air-Dried Basis)
Proven
Probable
Total
Ash
Sulfur
Volatile
Matter
December 31, 2024
Open Cut
12.9%
0.5%
19.3%
Underground
10.0%
0.3%
16.9%
Total
December 31, 2023
Open Cut
12.2%
0.5%
19.5%
Underground
10.0%
0.3%
16.9%
Total
(1)
Based on
long-term revenue
pricing assumption
data outlined
by Coronado
described in
Section 16
of the
Curragh TRS.
The
pricing data for both December
31, 2023 and 2024 assumes
an average realized revenue price
of $131 per Mt sold over
the LOM.
(2)
The open cut marketable reserves are reported on a
9.5% product moisture basis and the underground marketable reserves are
reported on a 10% product moisture basis.
(3)
Some numerical figures in the
above table have been subject
to rounding adjustments. Accordingly,
numerical figures shown as
totals may not equal the sum of the figures that
precede them.
From December 31, 2023, to December 31, 2024, measured
and indicated resources exclusive of reserves had
some minor
variances but
remained the
same in
total year
on year
at 350
MMt. From
December 31,
2023, to
December 31, 2024, total
marketable coal reserves decreased
by 10 MMt in line
with production depletion from
the Curragh open cut
operations as well
as some minor
variances to the coal
product profile over
the LOM due
to product coal flow optimization.
Barry Lay,
BSc Geology (Hons);
MAusIMM of Resology
Pty Ltd, Daniel
Millers, B. Eng.;
MAusIMM(CP), who
is
employed full-time as the Superintendent Long Term
Planning of our subsidiary, CCPL, and Claire McGahan, B.
Eng.; MAusIMM(CP); Talisman Technical Pty Ltd, whom we
refer to, collectively, as the
Australian QPs, prepared
the
estimates
of
coal
resources
and
reserves
summarized
in
Tables
and
5.
A copy
of
the
Australian
QPs’
technical report
summary,
or TRS,
with respect
to Curragh,
dated February
16, 2024,
or the
Curragh TRS,
is
filed as Exhibit 96.1 hereto. None
of Mr. Barry Lay, Resology Pty Ltd, Claire McGahan or Talisman Technical
Pty
Ltd are affiliated with Coronado.
Coronado Global Resources Inc. Form 10-K December 31,
The Australian QPs prepared the estimates of Curragh
coal resources and reserves using drilling data available
from exploration
activities at
Curragh conducted
by numerous
entities over
time.
Most of
this information
was
obtained prior to our
acquisition of Curragh,
using varying drilling and
core-logging techniques, survey
methods
and testing procedures.
As a
result, in verifying
the data,
the Australian
QPs made
certain assumptions
about
the adequacy of the
processes performed and
comparability of the data
based on their professional
experience
and familiarity with Curragh.
Per
Section
12.1
of
the
Curragh
TRS,
coal
reserve
estimates
were
classified
as
proven
or
probable,
with
consideration given to
“modifying factors,”
including mining, processing,
metallurgical, infrastructure,
economic,
marketing, legal,
environmental, social
and governmental
factors. Section
22.2 of
the Curragh
TRS includes
a
risk
assessment
of
the
key
modifying
factors
that
could
potentially
impact
the
operations
and
therefore
the
estimate of coal reserves and resources.
As
summarized
in
Section
7.1
of
the
Curragh
TRS,
the
concentration
of
exploration
drill
holes
varies
slightly
across the Curragh
property.
The location of
the drilling
is shown on
the maps
included in Section
7.
Points of
observation include
exploration drill
holes, degas
holes and
mine measurements,
which have
been fully
vetted
and
processed
into
a
geological
model.
The
geological
model
is
based
on
seam
depositional
modelling,
the
interrelationship
of
overlying
and
underlying
strata
on
seam
mineability,
seam
thickness
trends, the
impact
of
seam structure (i.e., faulting), intra-seam
characteristics, etc.
Section 11.6
of the Curragh TRS summarizes
the
drill hole spacings and accuracy associated with each
resource category.
Coal quality is instrumental
in determining whether there
are reasonable prospects
for economic extraction of
a
coal resource
and
the economic
viability
of a
coal
reserve.
These quality
attributes
aided
in converting
in-situ
resource tons to
demonstrated coal
reserves (recoverable washed
tons). The reserve
and resource criteria
are
presented in
Sections 12.1
and 11.3,
respectively,
of the Curragh
TRS, including
assumptions related
to seam
density, minimum
cut-off thickness, and recoveries.
Pricing data as provided
by Coronado is described in
Table
16.2 of the Curragh TRS.
These are weighted-average realized values across
the LOM schedule.
Regarding
production
rates
as
described
in
Section
of
the
Curragh
TRS,
the
mine
plan
and
productivity
expectations
consider
historical
performance
and
efforts
have been
made to
adjust
the plan
to
reflect
current
technology and future
conditions. Additional mine-specific factors
can be found
in Section 13
of the Curragh
TRS.
Buchanan
Buchanan
is
a
production-stage
mining
property,
consisting
of
one
active
underground
mine
and
supporting
infrastructure that
produces Low-Vol
Met coal using
the longwall
mining method.
The mine complex
is located
in Buchanan County in southwest Virginia.
A map of Buchanan is shown in Figure 4.
Figure 4.
Coronado Buchanan Mine Complex Property Location
Map.
Coronado Global Resources Inc. Form 10-K December 31,
The Buchanan
mine complex
is located
approximately
6.4 kilometers
southeast of
Oakwood, Virginia,
and 16
kilometers
southeast
of
Grundy,
Virginia.
The
coordinates
of
the
Buchanan
CPP
are
latitude
37°
09'
40"
and
longitude 81° 59' 13"
(Easting 984,100’, Northing 320,100’
- in the VA
State Plane South NAD
83 grid system).
The
nearest
major
population
centers
are
Roanoke,
Virginia,
and
Lexington,
Kentucky,
which
are
about
kilometers northeast
and 290
kilometers northwest
of the
property,
respectively.
From U.S.
Route 460,
which
runs
through
Oakwood,
a
well-developed
network
of
improved
and
unimproved
roads provides
access
to
the
property.
The surface facilities
at Buchanan are
located along a
Norfolk Southern rail
line, which serves
as the
primary means
of transport for
produced coal.
Norfolk Southern transports
coal from
the Buchanan mine
complex
either
to
domestic
customers
or
to
Lamberts
Point
Coal
Terminal
Pier
in
Norfolk,
Virginia,
for
overseas
shipment.
Buchanan
has
ready
access
to water,
electricity
and
personnel
to
support
its operations.
The
mine
complex
sources water from streams that
flow over Company-owned property.
The mine also utilizes ground
water from
an old, abandoned mine.
Electricity is sourced from American Electric Power.
Personnel have historically been
sourced
from
the
surrounding
communities
in
Buchanan,
Tazewell,
McDowell
and
Pike
Counties
and
have
proven to be adequate in numbers
to operate the mine complex.
As mining is common in the surrounding
areas,
the workforce is generally familiar with mining practices,
and many are experienced miners.
The property mineral rights are composed of approximately 33,578 total hectares, of which 25,853 are leased or
subleased from private landholders under approximately 150 individual coal lease tracts, and
7,725 hectares are
owned by Coronado.
Subject to Coronado’s exercising
its renewal rights thereunder,
all the leases expire upon
exhaustion of the relevant coal reserves, which is expected
to occur in 2043.
Under the
terms of
the relevant
leases, we
are required
to pay
royalties ranging
from 3%
to 6%
of the
selling
price
of
coal
mined
from
the
corresponding
leasehold
and,
for
the
majority,
an
annual
minimum
royalty,
irrespective of
production.
Coal produced
at Buchanan,
however,
is not
subject
to “wheelage
fees”
(i.e., fees
payable on coal
mined and
removed from properties
other than
the particular
leasehold and hauled
across the
leasehold premises).
The
property
was
formerly
controlled
by
Consolidation
Coal
Company,
or
CONSOL.
Mine
development
was
started by
CONSOL in
1983,
and longwall
production began
in 1987.
Coronado acquired
the Buchanan
Mine
from CONSOL in March 2016.
Production history has been approximately 3.9
MMt in 2022, 3.6 MMt
in 2023 and
3.5 MMt in 2024.
Our right
to commercially
mine and
recover coal
reserves at
Buchanan overlaps
with the
right of
an affiliate
of
CNX Resources Corporation, which we refer to as the Gas Party,
to commercially recover and develop coal gas
interests
from
the
mine
area.
The
Gas
Party
and
we
have
entered
into
certain
agreements
to
regulate
the
interaction between, and coordinate, our
respective operations.
In general, the combination of
these overlapping
interests allows
for mutual
benefits to
the parties,
namely,
the degassing
of our
coal mining
operations
in
the
mine, which helps assure the safety of mine
personnel, and the Gas Party’s
commercial capture and sale of the
coal gas.
In addition, the Gas Party’s drilling activities have contributed to exploration efforts with respect to coal
deposits at Buchanan.
As the only natural gas supplier in
the area, we purchase our requirements of
natural gas
for the operation of our thermal dryer at Buchanan from
the Gas Party.
Before
Coronado
took
over
mining
operations
at
Buchanan,
CONSOL
Energy
had
conducted
extensive
exploration of the property.
We have continued
exploration at the property
through a program of
core drilling to
confirm reserves, establish additional resources
and assess the geotechnical viability of mining.
Buchanan
produces
primarily
a
Low-Vol
HCC,
but
it
also
produces
a
premium
Low-Vol
PCI
product.
The
Buchanan mine
extracts coal
from the
Pocahontas #3
seam of
the Pennsylvanian-age
Pocahontas Formation,
which is the principal minable coal seam
of that formation.
The seam is situated below drainage
throughout the
Property and is accessed by vertical shafts.
The seam thickness averages 1.57 meters within the mining
area.
Coronado Global Resources Inc. Form 10-K December 31,
The
Buchanan
mine
currently
extracts
coal
using
two
longwall
systems
supported
by
six
continuous
miner
sections, which develop main entries and gate roads in preparation for the longwall. A seventh continuous miner
section is
expected to
begin in
2026.
Each continuous
miner section
is equipped
with one
or two
continuous
miners, two roof bolters
and two or three
coal haulage units.
After extraction, a series
of conveyor belts deliver
raw coal
to an
underground storage
bunker.
The Buchanan
mine complex
uses a
skip hoist
system to
lift raw
coal to the surface.
Buchanan has a CPP
that processes raw
coal at a rate
of approximately 1,270 raw
tph, as
well as the other necessary
support infrastructure, including loadout
and portal facilities. Coronado’s
2023 long-
term production forecast
included the construction
of a new coal
preparation plant at
Buchanan and associated
coal production volumes; however, this has
been removed from the
2024 production forecast due
to lower pricing
environment and to
allow for additional
option analysis.
A new plant remains
under consideration and
as such,
future
production
volume
forecasts
will
be
re-evaluated
and
updated
to
reflect
any
corresponding
capacity
increases.
Generally,
the mining
equipment
and facilities
at Buchanan
are in
good operating
condition.
We focus
on the
long-term potential of
the mine complex and
regularly monitor developments in
the mining industry for
technology
improvements and
new equipment
that could
help us
increase efficiency
and lower
our costs.
Since acquiring
the Buchanan
operations,
we have
implemented
improvements
at the
CPP,
which
have resulted
in increased
capacity.
From
time
to
time,
we
also
update
and
improve
other
equipment
and
facilities
to
maintain
their
usefulness
and
optimize
our
competitiveness.
For
example, we
rebuild
our longwall
shear,
drives
and cycling
shields after every panel. We
have also entered into life
cycle management agreements for our
continuous miner
equipment, installed programmable logic controller,
or PLC, controls on the skip hoist system, upgraded our belt
drives for increased horsepower, deployed state-of-the-art Fletcher roof
bolters on our continuous miner
sections
and switched
to
PLC
control
systems
and variable
frequency
drive,
or VFD,
starters
on our
belt
drives.
As
of
December 31, 2024, the book value of Buchanan and its
associated plant and equipment was $533.5 million.
We
are
not
aware
of
any
significant
encumbrances
or
defects
in
title
with
respect
to
the
Buchanan
property.
Additionally,
we believe we
have obtained
all requisite mining
and discharge
permits to conduct
our operations
at Buchanan and expect
to be able
to obtain all required
permits in the future.
The Buchanan mine complex
holds
one state permit, with the associated NPDES permit.
Buchanan is
subject to
a federal
black lung
excise tax
of $1.21
per ton
for underground
mining and
a federal
reclamation tax of $0.13 per ton
for underground mining.
However, the federal black lung excise tax applies only
with respect
to coal
sold domestically.
Additionally,
Buchanan is
subject to
a Virginia
reclamation tax
of $0.05
per ton (which amount is contributed to a state-funded bond pool) and a Virginia severance tax of 2% for all coal
sold. See
Item 1.
“Business-Regulatory
Matters-United States”
for a
discussion of
the permitting
conditions
applicable to Buchanan.
Summaries of Buchanan’s coal resources and reserves as of December 31,
2024 and 2023 are shown in Tables
6 and 7, respectively.
Table
6.
Buchanan -
Summary of
Coal Resources
Exclusive of
Reserves at
the End
of the
Fiscal Year
Ended December 31, 2024 and 2023.
(1)
Coal Resources (Dry Tons, In Situ, MMt)
(2)(3)(4)
Quality (Air-Dried Basis)
Measured
Indicated
Measured
+
Indicated
Inferred
Ash
Sulfur
Volatile
Matter
December 31, 2024
-
16.0%
0.8%
18.0%
December 31, 2023
-
16.0%
0.8%
18.0%
(1)
Pricing for
resources is
described in
Section 11.3.1
of the
Buchanan TRS
(as defined
below).
Based on
assumed long-term
average price of $143 per Mt (FOB
loadout) for Buchanan resources as
of December 31, 2023 and
$143 per Mt (FOB loadout) for
resources at
December 31,
2024, representing the
long-term average price
forecast for
Buchanan based on
independent price
forecasts.
(2)
Exclusive of reserve
tons. Table
1-1 of the
Buchanan TRS provides
a summary of
Buchanan resource tons
inclusive of reserve
tons as of December 31, 2024.
(3)
Reported on a dry basis.
Surface moisture and inherent moisture are excluded.
(4)
Some numerical figures in the
above table have been subject
to rounding adjustments. Accordingly,
numerical figures shown as
totals may not equal the sum of the figures that
precede them.
Coronado Global Resources Inc. Form 10-K December 31,
Table
7.
Buchanan - Summary
of Coal Reserves
(Marketable Sales Basis)
at the End of
the Fiscal Year
Ended December 31, 2024 and 2023.
(1)
Demonstrated Coal Reserves (Wet
Tons, Washed
or Direct Shipped, MMt)
(2)(3)
Quality (Air-Dried Basis)
Proven
Probable
Total
Ash
Sulfur
Volatile
Matter
December 31, 2024
6.0%
0.7%
20.0%
December 31, 2023
6.0%
0.7%
20.0%
(1)
Pricing data as provided by Coronado is described
in Section 16.2 of the Buchanan TRS For Buchanan
reserves as of December
31, 2023, the pricing data assumes a weighted average domestic and
international FOB-mine price of approximately $172 per Mt
for calendar
year 2024;
the weighted
average price
decreases to
approximately $138
to
$145
per Mt
through year
2028 and
averages approximately $173 per Mt over the LOM.
For Buchanan reserves as of December 31, 2024, the pricing data assumes
a weighted average
domestic and international
FOB-mine price of
approximately $142 per
Mt for calendar
year 2025; the weighted
average price decreases to approximately $132 to $139 per Mt through year 2029 and averages approximately $157 per Mt over
the LOM.
(2)
Reported on a 6.0% moisture basis.
(3)
Some numerical figures in the
above table have been subject
to rounding adjustments. Accordingly,
numerical figures shown as
totals may not equal the sum of the figures that
precede them.
From
December
31,
2023,
to
December
31,
2024,
total
reserves
decreased
approximately
10%,
from
approximately
92.0
MMt
to
approximately
83.0
MMt.
This
net
reduction
of
9.0
MMt
of
total
reserves
was
attributable to
a combination
of updates
to the
mine plan
along with
one year
of mining
depletion. A
TRS with
respect to Buchanan, updating the TRS with respect
to Buchanan filed with Coronado’s Annual
Report on Form
10-K for the
year ended December
31, 2024, was
prepared in February
2025 due to
material differences
in the
key financial modifying factors, including mining plans, coal sales price assumptions, operating costs and capital
costs from
December 31, 2023,
to December 31,
2024. Mining plans
are discussed in
Section 13 of
the Buchanan
TRS. Coal sales price assumptions underlying the reserve estimates are discussed in Sections
12 and 16 of the
Buchanan
TRS,
while
operating
costs
and
capital
costs
assumptions
underlying
the
reserve
estimates
are
discussed in Sections 18 and 19
of the Buchanan TRS.
The differences in the key financial modifying factors
did
not have
a material
impact on
the reserve
estimates from
December 31,
2023, to
December 31,
2024.
From
December 31, 2023 to December 31, 2024, measured and
indicated resources decreased by approximately 3%,
and is attributable to one
year of mining depletion along with
changes to the mine plan.
Updated financial inputs,
including coal
sales price assumptions
and operating and
capital costs used
in estimating the
resources exclusive
of reserves, as discussed in Section 11.3 of the Buchanan TRS, did not have a material impact on
the measured
and indicated
resource estimates as
of December
31, 2024,
as compared
to the
measured and
indicated resource
estimates as of December 31, 2023.
Marshall Miller
& Associates,
Inc., a
third-party
firm comprising
mining
experts, whom
we refer
to as
the U.S.
QPs, prepared the estimates
of coal resources and reserves
as of December 31, 2024
summarized in Tables
and 7.
A copy of the
U.S. QPs’ TRS with
respect to Buchanan, dated
as of February 1,
2025,
or the Buchanan
TRS, is filed as Exhibit 96.2 hereto. The U.S. QPs are
not affiliated with Coronado.
The
U.S.
QPs
prepared
the
estimates
of
coal
resources
and
reserves
using
core
drilling
data
available
from
exploration
activities
at
Buchanan
conducted
by
numerous
entities
over
time.
Most
of
this
information
was
obtained
prior
to
our
acquisition
of
the
property,
using
varying
drilling
and
core-logging
techniques,
survey
methods and testing
procedures.
As a result,
in verifying the
data, the U.S.
QPs made certain
assumptions about
the adequacy of the
processes performed and
comparability of the data
based on their professional
experience
and familiarity with Buchanan.
Per
Section
12.1
of
the
Buchanan
TRS,
coal
reserves
were
classified
as
proven
or
probable
considering
“modifying
factors,”
including
mining,
metallurgical,
economic,
marketing,
legal,
environmental,
social
and
governmental factors.
Section 22.2
of the
Buchanan TRS includes
a risk
assessment of the
key modifying factors
that could potentially impact the operations and therefore the
estimate of coal reserves and resources.
Coronado Global Resources Inc. Form 10-K December 31,
As summarized in Section 7.1 in the Buchanan TRS, the U.S. QPs utilized
approximately 16,000 available core,
rotary,
channel
samples,
mine
measurements
and
coalbed
methane
wells
on
and
around
the
Buchanan
property.
Points of observation
include exploration drill
holes, degas holes,
and mine measurements,
which have
been
fully
vetted
and
processed
into
a
geologic
model.
The
geologic
model
is
based
on
seam
depositional
modeling, the
interrelationship
of overlying
and underlying
strata
on seam
mineability,
seam
thickness
trends,
the
impact
of
seam
structure
(i.e.,
faulting),
intra-seam
characteristics,
etc.
The
U.S.
QPs
completed
a
geostatistical analysis
on drill holes
within the reserve
boundaries to determine
the applicability
of the common
United States classification system for
measured and indicated coal resources.
As summarized in Section 11.1
of the Buchanan TRS, these results
have led the U.S. QPs to
report the data following the historical
classification
standards, rather than use the results of the
DHSA.
Coal quality is
instrumental in determining
the viability of
a coal deposit.
Per Section 8.2
of the Buchanan
TRS,
coal
quality
conforms
to
the
American
Society
for
Testing
and
Materials,
or
ASTM,
standards.
These
quality
attributes aided
in converting
dry,
in-place tons
to demonstrated
coal reserves
(recoverable washed
tons). The
reserve and resource
criteria are presented
in Table
11-1
of the Buchanan
TRS, including assumptions
related
to seam density, minimum
cut-off thickness, and recoveries.
Regarding production
rates as
described in
Section 13.2
of the Buchanan
TRS, the
mine plan
and productivity
expectations
reflect
historical
performance
and
efforts
have
been
made
to
adjust
the
plan
to
reflect
future
conditions.
Mine development and operation have not been
optimized within the Buchanan TRS.
Logan
Coronado’s Logan property is
currently in the
production stage.
Logan consists of four
active underground mines
and supporting
infrastructure that
produce High-Vol
Met coal
using the room
and pillar mining
method and
two
active surface mines
(Toney
Fork and Elklick)
and supporting
infrastructure that
produce both
Met and thermal
coal using the
contour and
highwall mining
methods. Underground
mine operations
were active during
2024 at
the
Powellton
No.
1,
Lower
War
Eagle,
Eagle
No.
and
Muddy
Bridge
Mines
with
one,
three,
three
and
two
active mining
sections, respectively.
The Logan
complex life
plan includes
13 proposed
mines, consisting
of
ten underground mines
and three surface
mines. The property
is located in
Boone, Logan and
Wyoming Counties
in southern West Virginia.
The surface facilities are located in Logan
County, West
Virginia.
A map of Logan is
shown in Figure 5.
Figure 5.
Coronado Logan Mine Complex Property Location
Map.
Coronado Global Resources Inc. Form 10-K December 31,
The Logan
mine complex
encompasses the
towns of
Lorado and
Pardee in
Logan County,
West Virginia,
and
Cyclone and Lacoma in Wyoming County,
West Virginia. The coordinates
of the Saunders CPP are latitude
37°
47' 58" and longitude 81° 40' 01" (Easting 1,806,880’, Northing
291,517’ - in the WV State Plane South NAD 27
grid system). The nearest
major population centers are
Huntington, West Virginia, and Charleston,
West Virginia,
which are about 145 kilometers northwest and 129 kilometers northeast of the property, respectively.
From U.S.
Route
119,
which
runs
through
Mingo,
Logan
and
Boone
Counties
to
the
north,
a
well-developed
network
of
improved and
unimproved roads
provides access
to the
property,
including Route
16 and
Route 10,
which run
east-west across the property in Logan County and Wyoming
County, respectively.
The Logan surface facilities
are located approximately 21 kilometers northeast
of Man, West Virginia, along
a CSX Corporation, or CSX, rail
line, which serves as
the primary means of
transport for produced
coal.
CSX transports coal from
Logan either
to domestic customers or to the Kinder Morgan Pier IX and
Dominion Terminals
in Norfolk, Virginia, for overseas
shipment.
Logan has
ready access
to water, electricity
and personnel
to support
its operations.
Buffalo Creek Public
Service
District supplies
water and
American Electric
Power supplies
electricity
to the
mine complex.
Mine personnel
generally live in the surrounding communities of Logan,
Boone, Wyoming and Mingo Counties in West
Virginia.
The
property
mineral
rights
are
composed
of
12,735
total
hectares,
12,666
of
which
are
leased
from
private
landholders
under
approximately
individual
leases,
and
hectares
are
owned
by
Coronado.
Subject
to
Coronado
exercising
its renewal
rights
thereunder,
a
majority
of
the
leases,
covering
a
majority
of
the
Logan
reserves, expire upon
exhaustion of the
relevant coal reserves,
which is expected
to occur in
2057.
One lease
expires in 2032; however,
Coronado is projected to have previously exhausted th
e
reserves covered thereby.
Under the terms of the leases, we are required to pay royalties ranging from 3.0% to 9.0%
of revenue from sales
of coal
produced depending
on mining
method. Certain
of the
leases also
provide for
“wheelage fees”
ranging
from 0.25% to 1.0%
of revenue from
sales of coal
mined and removed
from properties other
than the particular
leasehold and hauled across the leasehold premises.
The mining of
Logan was commenced in
1945 by Lorado
Mining Company, or Lorado. Lorado was
sold to Buffalo
Mining Company
in 1964
and then
to Pittston
Coal Company
in 1971.
Pittston operated
the property
until the
early 1990’s.
After being idle for
a period, the property
was then sold to
Addington Resources in
2004.
Imagin
Natural
Resources
acquired
the
property
in
and
sold
it
to
Cliffs
Natural
Resources Inc.
(now
known
as
Cleveland-Cliffs Inc.) in 2011,
which in turn sold
the property to Coronado
in 2014. Production history
has been
approximately 2.1 MMt in 2022, 2.5 MMt in 2023 and 2.1
MMt in 2024.
Before
Coronado
acquired
Logan,
previous
owners
had
conducted
extensive
exploration
on
the
property.
Coronado
has
continued
exploration
at
the
property
through
a
program
of
core
drilling
to
confirm
reserves,
establish additional resources and assess the geotechnical
viability of mining.
Logan
produces
primarily
High-Vol
Met
coal
(HVA
HCC
and
HVB
HCC),
mined
from
various
seams
of
the
Kanawha Formation. A
few of the seams
lie below drainage;
however, a
substantial number of
Met coal seams
are situated above drainage. Logan also produces thermal coal
from upper portions of the Kanawha Formation.
As of December
31, 2024, underground
mine operations were
active at the
Powellton No. 1,
Lower War
Eagle,
Eagle No. 1 and
Muddy Bridge Mines
with one, three,
three and two active
mining sections, respectively,
using
the room and pillar method.
All sections of the active underground mines at Logan are configured as
full super sections, with two continuous
miners per
section.
Each section
also has
two roof
bolters, four
shuttle cars
and two
scoops.
From the
continuous
miner at the production face, the shuttle cars haul extracted coal to a feeder breaker, which transfers raw coal to
a conveyor
belt for
transport
to a
surface stockpile
holding area.
A shared
overland conveyor
carries raw
coal
from the Powellton No. 1 and Lower War Eagle mines to a CPP. Trucks
haul raw coal from the Eagle No. 1 mine
to the CPP and from the Muddy Bridge mine to the Logan overland conveyor.
The CPP has a feed rate capacity
of 1,088 raw tph.
The CPP site includes raw coal storage, clean coal storage, a loadout connected to a CSX rail
line and refuse disposal area.
The
Toney
Fork
and
Elklick
surface
mines
extract
Met
and
thermal
coal
using
the
contour
and
area
mining
methods.
The
mines
use
spreads
of
front-end
loaders,
large
tractors/dozers
and
rock
trucks
to
remove
overburden and expose the coal. We
will deploy highwall mining when
overburden volumes exceed economical
stripping ratios associated with area and
contour mining. Trucks haul raw coal from Toney Fork and Elklick to the
CPP site for cleaning or to the loading site to be shipped
directly to customers.
Coronado Global Resources Inc. Form 10-K December 31,
Our
current
plans
at
Logan
contemplate
proposed
mines,
consisting
of
ten
underground
mines
and
three
surface mines,
including the
six mines
currently in
operation.
The proposed
underground mines
would extract
coal using
the room
and pillar
mining method,
and the
proposed surface
mines would
extract coal
using area,
contour or highwall mining methods, or some combination thereof.
Generally,
the mining equipment
and facilities at Logan
are in good operating
condition.
We focus on the
long-
term
potential
of
the
mine
complex
and
regularly
monitor
developments
in
the
mining
industry
for
technology
improvements
and
new
equipment
that
could
help
us increase
efficiency
and
lower
our costs.
Logan’s
oldest
mining
equipment
and
facilities,
including
the
CPP
and
loadout
facility,
began
operations
in
2008,
when
the
Powellton
No.
mine
started
production.
Since
acquiring
the
Logan
operations,
we
have
implemented
improvements
at the
CPP,
which have
resulted in
increased capacity.
From time
to time,
we also
update and
improve
other
equipment
and
facilities
to
maintain
their
usefulness
and
optimize
our
competitiveness.
As
of
December 31, 2024, the book value of Logan and its associated
plant and equipment was $223.4 million.
We are
not aware
of any significant
encumbrances or
defects in title
with respect
to the property.
Additionally,
we believe we have obtained all requisite
mining and discharge permits to conduct
our operations at Logan and
expect to be
able to obtain
or renew all
required permits
in the future.
The Logan
mine complex holds
27 state
permits with associated NPDES permits.
Logan is subject to a federal black lung excise tax of $1.21 per ton for underground mining and $0.61 per ton for
surface and highwall mining; however, this
tax applies only with respect to coal sold domestically.
Logan is also
subject to a
federal reclamation
fee of $0.13
per ton
for underground
mining and
$0.31 per ton
for surface
and
highwall mining.
Additionally,
Logan is subject to
a West Virginia
reclamation tax of
$0.308 per ton and
a West
Virginia severance
tax of
1.0% to
5.0% of
revenues for
all coal
produced. See
Item 1.
“Business-Regulatory
Matters-United States” for a discussion of the permitting
conditions applicable to Logan.
Summaries of Logan’s
coal resources and
reserves as of
December 31, 2024
and 2023 are
shown in Tables
and 9, respectively.
Table 8.
Logan - Summary of Coal Resources Exclusive
of Reserves at the End of the
Fiscal Year Ended
December 31, 2024 and 2023.
(1)
Coal Resources (Dry Tons, In Situ, MMt)
(2)(3)(4)
Quality (Air-Dried Basis)
Measured
Indicated
Measured
+
Indicated
Inferred
Ash
Sulfur
Volatile
Matter
December 31, 2024
17.0%
1.0%
31.0%
December 31, 2023
17.0%
1.0%
31.0%
(1)
Pricing for resources is described in Section
11.3.1 of the
Logan TRS (as defined below).
For Logan resources as of December
31,
2023,
based
on
assumed
long-term
average
price
of
$154
per
Mt
(FOB
loadout)
for
underground-mineable
resources,
representing the
long-term average price
forecast for
HVB provided by
Coronado; surface resources
were assessed
at a
sales
price of $83 per Mt (FOB loadout) based on estimated historical pricing for Coronado’s surface
operations.
For Logan resources
as of December
31, 2024, based on
assumed long-term average price
of $176 per
Mt (FOB loadout)
for underground-mineable
resources, representing the long-term average
price forecast for HVB provided by
Coronado; surface resources were assessed
at
a sales price of $99 per Mt (FOB loadout)
based on estimated historical pricing for Coronado’s surface
operations.
(2)
Exclusive of reserve tons. Table 1-1 of the Logan TRS provides
a summary of Logan resource tons
inclusive of reserve tons as of
December 31, 2024.
(3)
Reported on a dry basis.
Surface moisture and inherent moisture are excluded.
(4)
Some numerical figures in the
above table have been subject
to rounding adjustments. Accordingly,
numerical figures shown as
totals may not equal the sum of the figures that
precede them.
Coronado Global Resources Inc. Form 10-K December 31,
Table 9.
Logan - Summary
of Coal Reserves
(Marketable Sales Basis)
at the End
of the
Fiscal Year Ended
December 31, 2024 and 2023.
(1)
Demonstrated Coal Reserves (Wet
Tons,
Washed or Direct Shipped, MMt)
(2)(3)
Quality (Air-Dried Basis)
Proven
Probable
Total
Ash
Sulfur
Volatile
Matter
December 31, 2024
8.0%
0.9%
35.0%
December 31, 2023
8.0%
0.9%
35.0%
(1)
Pricing data as
provided by Coronado is
described in Section
16.2 of the
Logan TRS.
For Logan reserves
as of December
31,
2023, the pricing data
assumes respective HVA,
HVB and thermal FOB-mine prices
of approximately $162, $144, and
$120 per
Mt for calendar year
2024.
HVA, HVB,
and thermal prices respectively decrease to
approximately $161, $143, and $114
per Mt
through year 2026, and then
increase to $308, $273, and $212
per Mt through year 2057.
For Logan reserves as of
December 31,
2024, the pricing data assumes respective HVA, HVB and thermal
FOB-mine prices of approximately $171,
$151, and $80 per Mt
for calendar year
2025.
HVA, HVB, and thermal
prices respectively
decrease to approximately
$162, $144,
and $83 per
Mt through
year 2027, and then increase to $306, $271, and
$150 per Mt through year 2057.
(2)
Reported on a 4.5% - 6.0% moisture basis.
(3)
Some numerical figures in the
above table have been subject
to rounding adjustments. Accordingly,
numerical figures shown as
totals may not equal the sum of the figures that
precede them.
From December
31, 2023
to December
31, 2024,
total reserves
have decreased
by 12%.
This change
in
the
number of total reserves was attributable to
a combination of updates to the mine plans,
including conversion of
select
resources
to
reserves,
along
with
one
year
of
mining
depletion.
In
addition,
one
mineral
sublease
containing reserves
expired.
A TRS
with respect
to Logan,
updating the
TRS with
respect
to Logan
filed with
Coronado’s Annual Report on
Form 10-K for
the year ended
December 31, 2024, was
prepared in February 2025
due to
material differences in
the key financial
modifying factors including
coal sales price
assumptions, operating
costs and
capital costs from
December 31,
2023, to
December 31,
2024. Coal
sales price assumptions
underlying
the reserve estimates are
discussed in Sections 12
and 16 of the Logan
TRS, while operating costs
and capital
costs assumptions underlying the reserve
estimates are discussed in Sections
18 and 19 of
the Logan TRS.
The
differences in the
key financial modifying
factors did not
have a material
impact on the reserve
as of December
31,
2024,
as
compared
to
the
reserve
estimates
as
of
December
31,
2023.
From
December
31,
2023,
to
December 31, 2024, measured and indicated resources decreased by
approximately 5%, from approximately 75
MMt to 71 MMt.
This net reduction of 4
MMt of measured and indicated
mineral resources was attributable to
one
year of mining depletion along with changes
to the mine plan. Updated financial inputs, including
coal sales price
assumptions and
operating and
capital costs
used in
estimating the
resources exclusive
of reserves,
including
conversion of
resources
to reserves,
as discussed
in Section
11.3
of the
Logan TRS,
did not
have a
material
impact
on
the
measured
and
indicated
resource
estimates
as
of
December
31,
2024,
as
compared
to
the
measured and indicated resource estimates as of December
31, 2023.
Marshall Miller
& Associates,
Inc., a
third-party
firm comprising
mining
experts, whom
we refer
to as
the U.S.
QPs, prepared the estimates
of coal resources and reserves
as of December 31, 2024
summarized in Tables
and 9.
A copy of the U.S. QPs’
TRS with respect to Logan,
dated as of February 1,
2025, or the Logan TRS,
is
filed as Exhibit 96.3 hereto. The U.S. QPs are not affiliated
with Coronado.
The
U.S.
QPs
prepared
the
estimates
of
coal
resources
and
reserves
using
core
drilling
data
available
from
exploration activities at Logan conducted by numerous
entities over time.
Most of this information was obtained
prior to
our acquisition
of the prop
erty,
using varying
drilling and
core-logging techniques,
survey methods
and
testing procedures.
As a
result, in
verifying the data,
the U.S.
QPs made
certain assumptions about
the adequacy
of the processes performed and comparability
of the data based on their
professional experience and familiarity
with Logan. Per Section 12.1 of the Logan TRS, coal reserves were
classified as proven or probable considering
“modifying
factors,”
including
mining,
metallurgical,
economic,
marketing,
legal,
environmental,
social
and
governmental factors.
Section 22.2
of the Logan
TRS includes
a risk
assessment of
the key
modifying factors
that could potentially impact the operations and therefore the
estimate of coal reserves and resources.
As summarized in Section 7.1 in the Logan TRS, the U.S. QPs utilized 1,160 available core, rotary, and gas well
drilling on and around
the Logan property. Mine data from active
underground mines was supplied to
supplement
the exploration
drillhole records,
by seam.
Points of
observation
include exploration
drill holes,
gas wells,
and
mine measurements, which have been fully vetted
and processed into a geologic model.
The geologic model is
based
on
seam
depositional
modeling,
the
interrelationship
of
overlying
and
underlying
strata
on
seam
mineability,
seam thickness
trends, the
impact of
seam structure
(i.e., faulting),
intra-seam characteristics,
etc.
The U.S.
QPs completed
a geostatistical
analysis on
drill holes
within the
reserve boundaries
to determine
the
applicability
of
the
common
U.S.
classification
system
for
measured
and
indicated
coal
resources.
As
summarized in Section
11.1
of the Logan TRS,
these results have
led the U.S. QPs
to report the data
following
the historical classification standards, rather than use the
results of the DHSA.
Coronado Global Resources Inc. Form 10-K December 31,
Coal quality is instrumental in determining
the viability of a coal deposit. Per
Section 8.2 of the Logan TRS, coal
quality
conforms
to
the
ASTM
standards.
These
quality
attributes
aided
in
converting
dry,
in-place
tons
to
demonstrated coal reserves (recoverable
washed tons). The
reserve and resource
criteria are presented in
Table
11-1
of
the
Logan
TRS,
including
assumptions
related
to
seam
density,
minimum
cut-off
thickness,
and
recoveries.
Pricing data as provided by Coronado is described
in Section 16.2 of the Logan TRS.
Regarding production
rates as
described in
Section 13.2
of the
Logan TRS,
the projected
underground mines
are set up similarly to the
four active underground operations as of December 31,
2024.
Each mine is scheduled
to operate one
to three production
sections.
All sections are
configured as full
super sections with
two continuous
miners per section.
Three surface resource areas
were modeled.
Mining operations are projected
to utilize area,
as well as contour,
mining methods.
The three areas
planned for highwall
mining are assumed
to be mined
by
a
contractor;
therefore,
the
contractor
costs
included
in
the
financial
model
assume
that
the
contractor
is
responsible for staffing
those operations along
with providing necessary equipment
capital. Spoil for
final highwall
reclamation is expected
to come from
strategic placement
of spoil on
pre-existing benches
by haul trucks
such
that they
are within
the push
distance of
the reclamation
dozer.
Additional information
regarding mine-specific
production factors can be found in Section 13.4 of the
Logan TRS.
Mon Valley
The Mon Valley mine
complex comprises three
development-stage mining properties, namely, Pangburn, Shaner
and Fallowfield,
each consisting
of a
proposed underground
mine that
would produce
High-Vol
Met coal
using
the room
and
pillar
mining
method.
The
preliminary
design
for
the
properties
also
includes
plans
for
surface
facilities
and
a
preparation
plant
for
each
mine.
The
properties
reside
in
Allegheny,
Washington
and
Westmoreland Counties in southwestern Pennsylvania.
The proposed facilities include
a barge loading
dock and
CSX rail loadout
on the Monongahela
River in Allegheny County, Pennsylvania, which
would ship clean
coal from
all three mines to end customers.
A map of Mon Valley
is shown in Figure 6.
Figure 6.
Coronado Mon Valley
Mine Complex Property Location Map.
Mon Valley is located
approximately 22.5 kilometers
southeast of
Pittsburgh, Pennsylvania, near
the communities
of Bentleyville,
Lockview,
Monongahela, Elizabeth,
Sutersville and
Irwin, Pennsylvania.
The coordinates
of the
proposed infrastructure are latitude 40° 15' 24" and longitude 79° 53' 50" (Easting
1,398,821’, Northing 343,480’
- in the PA State
Plane South NAD 27 grid system). From U.S. Interstate 70
and Pennsylvania Route 51, which
traverse
the
Fallowfield
and
Pangburn
areas,
respectively,
a
well-developed
network
of
improved
and
unimproved roads allows general access to the
property.
The Monongahela and Youghiogheny
Rivers also run
through the property.
The primary means of transport for produced coal would be by barge
on the Monongahela
River/Ohio River system.
Additionally,
a CSX rail line located
along the banks of the
Monongahela River would
provide another option for the shipment of coal.
Coronado Global Resources Inc. Form 10-K December 31,
Mon
Valley
has
sources
of
water,
power,
and
supplies
readily
available
for
use.
Personnel
in
the
area
have
historically
been
sourced
from
the
surrounding
communities
in
Allegheny,
Washington,
and
Westmoreland
Counties,
and
have
proven
to
be
adequate
in
numbers
to
operate
the
mines.
As
mining
is
common
in
the
surrounding areas, the
workforce is generally
familiar with mining
practices, and many are
experienced miners.
Water is expected to be sourced locally from a nearby public water sources or rivers.
Electricity is anticipated to
be
sourced
from
West
Penn
Power
or
Duquesne
Light.
The
service
industry
in
the
areas
surrounding
the
proposed mine complex has historically provided supplies,
equipment repairs and fabrication, etc.
The
property
mineral
rights
are
composed
of
41,615
total
hectares,
of
which
1,339
are
leased
from
private
landholders under two leases,
and 40,276 hectares are
owned by Coronado.
Subject to Coronado’s exercising
its renewal rights
thereunder,
both of the
leases expire
upon exhaustion
of the relevant
coal reserves,
which is
expected to occur in 2102.
A
predecessor
of
CONSOL
Energy
previously
controlled
the
properties.
We
acquired
the
properties
from
CONSOL Energy in March 2016 in connection with the
acquisition of the Buchanan property.
Before we acquired Mon Valley, CONSOL Energy had conducted extensive exploration of Mon Valley.
We have
continued
an
exploration
program
focused
on
defining
reserves
and
assessing
the
geotechnical
viability
of
mining.
Mon
Valley
is
capable
of
producing
primarily
a
High-Vol
Met
coal
from
the
Upper
Freeport
seam
of
the
Pennsylvania-age
Allegheny
Formation.
The
seam
is
situated
below
drainage
throughout
the
properties
and
would be
accessed with
slopes and
shafts.
The seam
thickness in
the projected
mining areas
averages 1.95
meters.
Under our current
mine development
plans, production
would begin at
the Pangburn
mine in 2034,
followed by
the Shaner mine in
2040 and, finally, the Fallowfield mine in
2059.
The proposed Mon Valley underground mines
would use the room and pillar
mining method with limited pillaring
as to cause no subsidence.
Each mine would
have three
continuous
miner
sections,
with two
continuous
miners, two
roof bolters,
four shuttle
cars and
two
scoops per
section.
The shuttle
cars would
haul extracted
coal from
the production
face to
a feeder
breaker-
conveyor system, which
would carry raw
coal to a
surface stockpile
and CPP.
The CPPs and
surface facilities
would have large
raw and clean
coal storage areas
to facilitate efficient
loading of clean
coal into barges
or rail
cars for transport.
We have
not yet completed
detailed designs
of the infrastructure
or surface
facilities for
the
proposed Shaner and Fallowfield mines.
As of December 31, 2024, the book value of Mon
Valley was $17.5 million.
We are not aware of any significant encumbrances or defects in title with respect to the properties. However,
we
will be required to obtain alternate
zoning approval from the local township. Further, we will be required
to submit
formal permit
applications
to state
or federal
regulatory
agencies.
Although we
have commenced
the work
to
obtain the
necessary
permits and
zoning variances,
we are
aware that
the period
of time
necessary
to obtain
final authorizations,
for purposes
of commencing
the development,
construction and
ultimate production
at the
proposed mine site, may be significant, and there can be no assurance that we can obtain the necessary zoning
and
permits.
See
Item
1.
“Business-Regulatory
Matters-United
States”
for
a
discussion
of
the
permitting
conditions applicable to Mon Valley.
Coal mined from the
Mon Valley
mine complex would
be subject to a
federal black lung
excise tax of
$1.21 per
ton for underground mining and a
federal reclamation tax of $0.13 per ton
for underground mining.
However, the
federal black lung excise tax will only apply with respect
to coal sold domestically.
Mon Valley contains no resources exclusive of reserve tons as of
December 31, 2024 and 2023. Table 1-1 of the
Mon Valley
TRS (as
defined below)
provides a summary
of Mon Valley
resource tons
inclusive of
reserve tons
as of December 31, 2024.
Coronado Global Resources Inc. Form 10-K December 31,
A summary of Mon Valley’s
coal reserves as of December 31, 2024 and 2023 is shown
in Table
10.
Table 10.
Mon Valley - Summary of Coal Reserves (Marketable Sales Basis) at the
End of the Fiscal Year
Ended December 31, 2024 and 2023.
(1)
Demonstrated Coal Reserves (Wet
Tons, Washed
or Direct Shipped, MMt)
(2)(4)
Quality (Air-Dried Basis)
Proven
Probable
Total
Ash
Sulfur
Volatile
Matter
December 31, 2024
8.0%
1.2%
(3)
35.0%
December 31, 2023
8.0%
1.2%
(3)
35.0%
(1)
Pricing data as
provided by
Coronado is described
in Section 16.2
of the
Mon Valley TRS. For
Mon Valley reserves as
of December
31, 2023, the pricing data assumes
a blended HVB domestic and
export FOB-mine nominal price
of $181 per Mt for calendar
year
2029; HVB domestic and export prices respectively are increased
by 2% annual inflation thereafter.
For Mon Valley
reserves as
of December 31, 2024, the pricing data assumes a blended
HVB domestic and export FOB-mine nominal price of
$183 per Mt for
calendar year 2030; HVB domestic and export
prices respectively are increased by 2% annual
inflation thereafter.
(2)
Reported on a 6.0% moisture basis.
(3)
LOM sulfur for Pangburn is an estimated 1.2%; however, overall Mon
Valley Complex reserve average is 1.4% sulfur.
(4)
Some numerical figures in the
above table have been subject
to rounding adjustments. Accordingly,
numerical figures shown as
totals may not equal the sum of the figures that
precede them.
Total
reserves
did
not
change
from
December
31,
2023,
to
December
31,
2024.
A
TRS
with
respect
to
Mon
Valley,
updating the TRS
with respect to
Mon Valley
filed with Coronado’s
Annual Report on
Form 10-K
for the
year ended December 31, 2024,
was prepared in February
2025 due to material differences
in the key financial
modifying factors
including coal sales
price assumptions,
operating costs
and capital
costs from
December 31,
2023, to
December
31,
2024.
Coal
sales
price
assumptions
are
discussed
in
Sections
and
of
the
Mon
Valley TRS, while operating costs and capital costs are discussed in Sections 18 and 19 of the Mon Valley
TRS.
Marshall
Miller
&
Associates,
Inc.,
a
third-party
firm
comprising
mining,
whom
we
refer
to
as
the
U.S.
QPs,
prepared the estimates of coal reserves summarized in Tables
10.
A copy of the U.S. QPs’ TRS with respect to
Mon Valley
(Pennsylvania Upper
Freeport
Holdings), dated
as of
February 1,
2025, or
the Mon
Valley
TRS, is
filed as Exhibit 96.4 hereto. The U.S. QPs are not affiliated
with Coronado.
The
U.S.
QPs
prepared
the
estimates
of
coal
resources
and
reserves
using
core
drilling
data
available
from
exploration
activities
at
Mon
Valley
conducted
by
numerous
entities
over
time.
Most
of
this
information
was
obtained prior
to our
acquisition of
the Mon
Valley
property,
using varying
drilling and
core-logging techniques,
survey
methods
and
testing
procedures.
As
a
result,
in
verifying
the
data,
the
U.S.
QPs
made
certain
assumptions
about
the
adequacy
of
the
processes
performed
and
comparability
of
the
data
based
on
their
professional experience and familiarity with Mon Valley.
Per
Section
12.1
of
the
Mon
Valley
TRS,
coal
reserves
were
classified
as
proven
or
probable
considering
“modifying
factors,”
including
mining,
metallurgical,
economic,
marketing,
legal,
environmental,
social
and
governmental
factors.
Section
22.2
of
the
Mon
Valley
TRS
includes
a
risk
assessment
of
the
key
modifying
factors that could potentially impact the operations and therefore the
estimate of coal reserves and resources.
As summarized
in Section
7.1 in
the Mon
Valley
TRS, the
U.S. QPs
utilized approximately
750 available
core
and rotary holes
on and around
the Mon Valley
properties. Points of
observation include exploration
drill holes,
degas holes, and mine measurements,
which have been fully vetted and processed
into a geologic model.
The
geologic model is based
on seam depositional
modeling, the interrelationship
of overlying and underlying
strata
on
seam
mineability,
seam
thickness
trends,
the
impact
of
seam
structure
(i.e.
faulting),
intra-seam
characteristics, etc.
The U.S. QPs
completed a geostatistical
analysis on drill
holes within the
reserve boundaries
to determine the applicability of the
common United States classification system for measured and
indicated coal
resources.
As summarized in Section 11.1 of the Mon Valley TRS, these results have led the U.S. QPs to report
the data following the historical classification standards,
rather than use the results of the DHSA.
Coal quality is instrumental in determining the
viability of a coal deposit. Per Section
8.2 of the Mon Valley
TRS,
coal quality
conforms to
the ASTM
standards. These
quality attributes
aided in
converting dry,
in-place tons
to
demonstrated coal reserves (recoverable
washed tons). The
reserve and resource
criteria are presented in
Table
11-1
of
the
Mon
Valley
TRS,
including
assumptions
related
to
seam
density,
minimum
cut-off
thickness,
and
recoveries. Pricing data as provided by Coronado is described
in Section 16.2 of the Mon Valley
TRS.
Coronado Global Resources Inc. Form 10-K December 31,
Regarding production rates
as described in
Section 13.2 of
the Mon Valley
TRS, the Mon
Valley
mine complex
is not yet
active, with three distinct
mines and CPPs planned.
The mine plan and
productivity expectations reflect
historical performance from other similar mines
with similar conditions and efforts
have been made to adjust the
plan to reflect future conditions. Mine development and operation have not been
optimized within the Mon Valley
TRS.
Additional mine-specific factors can be found in Section 13.4
of the Mon Valley TRS.
Russell County (Non-Material Property)
The
Russell
County
property
is
not
considered
material
to
Coronado’s
business
or
financial
conditions.
In
addition, pursuant to the current mine plan, the
property will only start generating cash flows when it
commences
production planned
for 2042.
Resources exclusive
of reserves
are based on
assumed long-term
average price
of $154 per Mt (FOB loadout), representing the Company’s long-term average price forecast for Russell County.
The pricing
data assumes
HVA
FOB-mine prices
with a
weighted LOM
average of
approximately $267
per Mt.
Marketable reserve tons are reported
on a moist basis,
including a combination of surface
and inherent moisture.
The combination of surface and inherent moisture is modeled
at 6.0%.
Internal Controls
Our
staff
of
geologists
and
engineers
worked
with
the
qualified
persons
throughout
the
mineral
resource
and
reserve estimation process and provided data
from our own exploration and
operating activities at the properties.
We
have
internal
control
procedures,
including
quality
assurance/quality
control
procedures
and
internal
verification of input data and geological modelling, subject
to multi-level review, to
help ensure the validity of the
data. These procedures include, but are not limited to:
•
Oversight and approval of each annual statement by responsible
senior officers;
•
Independent, external review of new and materially changed
estimates at regular intervals;
•
Annual
reconciliation
with
internal
planning
by
our
staff
of
geologists
and
engineers
to
validate
coal
reserve and coal resource estimates for operating mines,
including the following procedures:
•
Assessments
of
drilling,
sampling
and
quality
assurance/quality
control
data,
resource
modelling, resource estimation, classification, and reporting;
•
Assessment
and
benchmarking
of
production
assumptions,
mining
rate
and
production
schedules against historical production data;
•
Assessments
of
capital
and
operating
costs
against
other
comparable
projects
for
reasonableness;
•
Continual identification
and
evaluation
of material
technical
issues
likely to
impact
the five-
year plan and the future performance of producing properties;
•
An examination of historical
information and results in
respect of the technical
aspects of the properties
by our staff of geologists and engineers, including
a review of the following key elements:
•
Geology mapping, reports and models, including geotechnical and
hydrology aspects;
•
Coal resource and coal reserve estimates;
•
Mining operations and proposed growth options;
•
Coal preparation facilities;
•
Coal handling and transport;
•
Environmental matters and approvals;
•
Land management, including leases and other pertinent
agreements;
•
Veracity of existing information
supporting five-year plans and business plans;
•
Identification of key project drivers; and
•
Risks and opportunities.
Coronado Global Resources Inc. Form 10-K December 31,
The pricing
information
used for
preliminary
resource
valuation and
to estimate
our proven
and probable
coal
reserves was based on prices under our existing contracts and price forecasts. Below
is a description of some of
the factors
that could
affect price
forecasts for
Met and
thermal coal
products on
a mine-by-mine
and product-
by-product basis. Differences between
the assumptions and analyses
included in the
price forecasts and realized
factors could cause actual pricing to differ from
the forecasts.
Metallurgical.
Several factors
can influence
Met coal
supply and
demand and
pricing. Demand
is impacted
by
economic conditions and demand for
steel and is also impacted by competing
technologies used to make steel,
some of which do not use coal as a manufacturing input. Competition from other types of coal is also a key price
consideration
and
can
be
impacted
by
coal
quality
and
characteristics,
delivered
energy
cost
(including
transportation costs), customer service and support and
reliability of supply.
Seaborne
Met
coal
import
demand
can
be
significantly
impacted
by
the
availability
of
local
coal
production,
particularly
in
leading
Met
coal
import
countries
such
as
China
and
India,
among
others,
as
well
as
country-
specific policies restricting or promoting domestic supply. The competitiveness of seaborne Met coal supply from
leading Met coal
exporting countries, such as
Australia, the United
States, Russia, Canada and
Mongolia, among
others, is also an important price consideration.
In addition to
the factors noted
above, the prices
which may be
obtained at each
individual mine or
future mine
can be impacted
by factors such
as (i) the
mine’s location,
which impacts the
total delivered energy
costs to its
customers, (ii)
quality characteristics,
particularly
if they
are unique
relative
to competing
mines, (iii)
assumed
transportation costs and
(iv) other mine
costs that are
contractually passed on to
customers in certain
commercial
relationships.
Thermal.
Several factors can influence thermal coal supply
and demand and pricing. Demand is sensitive
to total
electric power generation volumes, which are
determined in part by the
impact of weather on heating
and cooling
demand,
inter-fuel
competition
in
the
electric
power
generation
mix,
changes
in
capacity
(additions
and
retirements),
inter-basin
or
inter-country
coal
competition,
coal
stockpiles
and
policy
and
regulations.
Supply
considerations
impacting
pricing
include
reserve
positions,
mining
methods,
strip
ratios,
production
costs
and
capacity and the cost of new supply (new mine developments
or extensions at existing mines).
The
cost
information
that
the
QPs
used
for
preliminary
resource
valuation
and
to
estimate
our
proven
and
probable reserves
were generally
internal projected
future costs
based on
historical costs
and expected
future
trends. The
estimated costs
normally include
mining, processing,
transportation, royalty,
tax and
other mining-
related
costs.
Our
estimated
mining
and
processing
costs
reflect
projected
changes
in
prices
of
consumable
commodities (mainly diesel fuel,
natural gas, explosives and
steel), labor costs, geological
and mining conditions,
targeted
product
qualities
and
other
mining-related
costs.
Estimates
for
other
sales-related
costs
(mainly
transportation, royalty
and tax)
are based
on contractual
prices or
fixed rates.
Specific factors
that may
impact
the cost at our various operations include:
•
Geological settings.
The geological
characteristics of
each mine
are among
the most
important factors
that determine the mining cost. Our geology department conducts the exploration program and provides
geological models for the LOM process. Coal seam depth, thickness, dipping angle, partings and quality
constrain the available mining methods
and size of operations. Shallow
coal is typically mined by
surface
mining
methods
by
which
the
primary
cost
is
overburden
removal.
Deep
coal
is
typically
mined
by
underground
mining
methods
where
the
primary
costs
include
coal
extraction,
conveyance
and
roof
control.
•
Scale of operations and the equipment
sizes.
For surface mines, our dragline systems
generally have a
lower unit cost
than truck-and-shovel systems for
overburden removal. The longwall
operations generally
are more cost effective than bord-and-pillar operations
for underground mines.
•
Commodity prices.
For surface mines,
the costs of
diesel fuel and
explosives are
major components of
the total mining cost.
For underground mines, the
steel used for roof
bolts represents a significant
cost.
Commodity price
forecasts are
used to
project those
costs in
the financial
models we
use to
establish
our reserves.
•
Target
product quality.
By targeting
a premium
quality,
product, our
mining and
processing
processes
may experience
more coal
losses. By
lowering product
quality,
the coal
losses can
be minimized
and
therefore a lower cost per
Mt can be achieved. In
our mine plans, the product
qualities are estimated to
correspond to existing contracts and forecasted market
demands.
Coronado Global Resources Inc. Form 10-K December 31,
•
Transportation
costs.
We
have
entered
into
arrangements
with
third
parties
to
gain
access
to
transportation infrastructure and services where required, including
rail carriers and port owners. Where
coal
is
exported
or
sold
other
than
at
the
mine
gate,
the
costs
associated
with
these
arrangements
represent a significant portion of both the total cost of supplying coal to customers and of our production
costs.
As
a
result,
the
cost
of
transportation
is
not
only
a
key
factor
in
our
cost
base
but
also
in
the
purchasing
decision
of
customers.
Our
transportation
costs
vary
by
region.
See
Item
1.
“Business-
Transportation” for more information regarding
transportation arrangements for our operations.
•
Royalty costs.
As conditions to
certain of the
Tenements,
Curragh is subject
to royalties payable
to the
Queensland
government
as
described
in
Item
1.
“Business-Regulatory
Matters-Australia-Mineral
Resources Act 1989
(Qld)”. These royalties
are in addition
to the Stanwell
rebate, as described
in Item
1. “Business-Customers-Stanwell.” Royalty
costs at our U.S. Operations
are based upon contractual
agreements for the coal
leased from private owners
and vary from
property to property
and by the type
of
mine
(i.e.,
surface
or
underground).
The
royalty
rates
under
leases
at
our
U.S.
Operations
range
between
3%
-
9%
of
revenues
from
coal
sales.
Under
some
of
the
leases,
we
are
required
to
pay
minimum royalties,
regardless
of production,
and/or “wheelage
fees” (i.e.,
fees payable
on coal
mined
and
removed
from
properties
other
than
the
particular
leasehold
and
hauled
across
the
leasehold
premises).
•
Black lung,
severance and
reclamation taxes.
Our U.S.
Operations are
subject to
a federal
black lung
excise tax on coal sold domestically.
•
Exchange rates.
Costs related to our Australian Operations are predominantly denominated in A$, while
the coal that our Australian Operations
export is sold in US$. As
a result, A$-US$ exchange rates impact
the U.S. dollar cost of our Australian Operations’ production
.
For further discussion of comprehensive risk inherent in the estimation, see Item 1A.
“Risk Factors-Operational
and Technology
Risks-We
rely on
estimates
of our
recoverable resources
and
reserves,
which
are complex
due to geological characteristics of the properties and the
number of assumptions made.
Coronado Global Resources Inc. Form 10-K December 31,
ITEM 3.
LEGAL PROCEEDINGS.
We are
involved in
various
legal proceedings
occurring
in the
ordinary course
of business.
It is
the opinion
of
management, after consultation
with legal counsel,
that these matters
will not materially
affect our consolidated
financial position, results of operations or cash flows.
The Company is subject to a wide
variety of laws and regulations within the legal jurisdiction in
which it operates.
See “Part I, Item 1. Business-Regulatory Matters”
for additional information. The Company believes that
it is in
substantial compliance with federal, state and local laws
and regulations.
Coronado Global Resources Inc. Form 10-K December 31,
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.
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 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 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 Annual
Report on Form
10-K. The disclosures reflect the
United States mining operations only, as these requirements do
not apply to our
mines operated outside the United States.
Coronado Global Resources Inc. Form 10-K December 31,
ITEM
5.
MARKET
FOR
REGISTRANT’S
COMMON
EQUITY,
RELATED
STOCKHOLDER
MATTERS
AND
ISSUER PURCHASES OF EQUITY SECURITIES.
Market Information
Our CDIs, each
representing one-tenth
of one share
of our common
stock, have
been listed on
the ASX under
the
trading
symbol
“CRN”
since
October 23,
2018.
Prior
to
such
time,
there
was
no
public
market
for
our
securities. There is no principal market in the United States
for our CDIs or shares of our common stock.
Holders
As of December 31, 2024, we had 167,645,373
shares of our common stock issued
and outstanding with 7,486
holders of record.
The holders included CHESS
Depositary Nominees Pty Limited,
which held 90,147,345 shares
of our common stock in the form of
CDIs on behalf of the CDI holders; there were 7,485 registered owners
of our
CDIs on December 31, 2024.
Series A Preferred Share
On September
20, 2018,
we issued
the Series
A Preferred
Share to
Coronado
Group LLC,
at par
value.
The
offer, sale, and issuance of the Series A Share were deemed to be exempt from registration under
the Securities
Act in reliance on Section
4(a)(2) of the Securities Act as
transactions by an issuer not involving
a public offering.
The recipient of the Series A Share acquired the Series A Share for investment only and not with a view to or for
sale in connection with any distribution thereof and appropriate
legends were affixed to the Series A Share.
Dividends
The
payment
of
dividends
is
at
the
discretion
of
the
Board
of
Directors.
The
decision
as
to
whether
or
not
a
dividend will be
paid will
be subject to
a number of
considerations including
the general
business environment,
operating
results,
cash
flows,
future
capital
requirements,
regulatory
and
contractual
restrictions,
as
well
as
applicable covenants
under the
Indenture governing
our Notes
and covenants
under the
ABL Facility
and any
other factors the Board of Directors may consider relevant.
Our objective in setting our dividend policy is to deliver
stockholder returns while maintaining flexibility to pursue
our strategic
initiatives within
a prudent
capital structure.
Our dividend
policy is
to distribute
between 60%
and
100%
of
available
free
cash.
Available
free
cash
is
defined
as
net
cash
from
operating
activities
less
capital
expenditure, acquisition expenditure,
amounts reserved for
capital expenditure and
acquisition expenditure and
amounts required for
debt servicing. In
circumstances where there is
surplus available free cash,
at the discretion
of
our
Board
of
Directors
and
in
light
of
business
and
market
conditions,
we
may
consider
the
potential
for
additional
stockholder
returns
through
special
dividends
and
share
buy-backs
as
part
of
its
broader
capital
management strategy.
Summary Description of the Company’s
Non-Stockholder Approved Equity Compensation
Plans
The Company does not have any non-stockholder approved
equity compensation plans.
Recent Sales of Unregistered Securities
Other than as previously
disclosed in a Quarterly
Report on Form 10-Q
or in a Current
Report on Form 8-K,
we
did not issue
any shares of
our common stock
in a transaction
that was not
registered under
the Securities Act
during the year ended December 31, 2024.
Purchases of Equity Securities by the Issuer and
Affiliated Purchases
We had no repurchases of equity securities for the
three months ended December 31, 2024.
Coronado Global Resources Inc. Form 10-K December 31,
ITEM 6.
[Reserved.]
Coronado Global Resources Inc. Form 10-K December 31,
ITEM 7.
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 Consolidated Financial Statements and the related notes to those
statements included elsewhere in this Annual Report on Form
10-K.
Overview
For the year ended December 31,
2024, we produced 15.3 MMt and
sold 15.8 MMt of coal. Met
coal and thermal
coal sales
represented 79.3%
and 20.7%,
respectively,
of our
total volume
of coal
sold, and
95.2% and
4.8%,
respectively, of our
total coal revenues.
In
2024,
Coronado
faced
several
operational
challenges
which
impacted
coal
production,
however,
we
took
decisive actions
and implemented
strategic initiatives
to overcome
these challenges
and focused
on laying
the
foundation for an optimal operational structure beyond
2024.
Our
Australian
Operations
suffered
key
equipment
and
infrastructure
failures
and
significant
weather-related
disruptions resulting
in production
delays and
higher costs.
Despite these
setbacks,
our Australian
Operations
completed the historical pre-strip waste deficit works in
the first quarter and subsequently reduced
five contractor
truck
and
excavator
fleets
and
idled
a
Company-owned
shovel
fleet
which
enhanced
productivity
through
improved dragline
and drill
and blast
performance. The
commissioning
of the
Mammoth Underground
Mine in
December
marked
a
key
milestone,
delivered
on
time
and
within
budget,
with
the
potential
to
ramp
up
production significantly in 2025.
Our U.S. Operations were adversely impacted
by delays in the planned longwall
move, equipment breakdowns,
a safety incident that caused temporary suspension of operations at our Buchanan mine and adverse geological
conditions
at
both
the
Logan
mine
and
Buchanan
mine.
For
Buchanan,
mining
through
more
complex
seam
structures
earlier
in
the
year,
reduced
overall
yield
of
saleable
coal.
Subsequent
improvements
in
mining
conditions, enhanced
conveyor and
skip system
performance,
and the
simultaneous operation
of two
longwall
panels,
in
the
Southern
and
Northern
districts,
resulted
in
improved
yields
and
efficiency,
particularly
in
the
second half of the year.
Overall,
in
2024,
our
saleable
production
was
0.5MMt
lower
while
our
sales
volume
remained
consistent
compared to the year ended December 31, 2023.
In 2024,
the Met
coal markets
experienced volatility,
driven by
weak macroeconomic
conditions in
key regions
such as
Europe, China,
and parts of
Asia, as
well as
fluctuating demand dynamics
in India.
European steelmakers
grappled with constrained industrial activity and reduced hot metal production, while China’s excessive steel and
coke exports, coupled with limited domestic stimulus,
weighed on prices and raw material demand. India
played
a pivotal role in
the market's mid-year stabilization, with strong
pre-monsoon restocking boosting demand for Met
coal. However,
the prolonged
monsoon season
later in
the year
temporarily reduced
Indian imports,
softening
overall demand.
The
benchmark
PLV
HCC
FOB
AUS average
for
the
year
ended
December
31,
2024,
of
$240.4
per
Mt
was
18.9% lower compared to $296.3 per Mt for the year
ended December 31, 2023.
Coal revenues of $2,444.9 million for the year ended December 31, 2024, were 13.6% lower
compared to 2023,
driven by lower average
realized Met price
of $185.3 per
Mt sold, $30.4
per Mt lower than
the average realized
Met price in 2023.
Mining costs of $1,683.3
million for the year
ended December 31,
2024, were $13.8
million higher compared
to
$1,669.5 million for the year ended December
31, 2023, due to significant inventory
drawdown at our Australian
Operations due to
sales volumes exceeding saleable
production in 2024, unplanned
maintenance costs following
equipment failures and continued
inflationary impacts on
labor and supply costs,
partially offset by
cost savings
from demobilizing fleets
at our Australian
Operations. Despite
the increase in
mining costs, our
mining cost per
Mt
sold
were
$0.2
lower
compared
to
the
year
ended
December
31,
2023,
driven
by
higher
sales
volume
excluding non-produced coal.
Dividends
During the year
ended December
31, 2024, Coronado
paid total dividends
of $16.7 million
to stockholders
and
CDI holders on the ASX.
Coronado Global Resources Inc. Form 10-K December 31,
Senior Secured Notes
On
October
2,
2024,
we
successfully
completed
a
refinancing
initiative
and
issued
$400.0
million
aggregate
principal
amount
of our
9.25%
Senior
Secured
Notes
due 2029,
or the
2029 Notes
.
The transaction
provides
Coronado increased
financial flexibility
by extending
our debt
maturity profile
and includes
improved terms
that
we believe are more sustainable for our business.
The net proceeds from
the transaction were
used to redeem
all of the Company’s
outstanding principal amount
of our
10.750% Senior
Secured Notes
due 2026,
or the
2026 Notes,
and to
pay related
fees and
expenses in
connection with offering of the 2029 Notes
and the redemption of the 2026 Notes.
Refer to Part II, Item 8, Note 14. “Interest Bearing Liabilities”
for further information.
Liquidity
Coronado
had
cash
and
cash
equivalents
(excluding
restricted
cash)
of
$339.4
million
and
$128.6
million
of
undrawn capacity under our ABL Facility as of
December 31, 2024. As of December 31, 2024,
we had a net debt
of $85.1 million comprising of $424.5 million aggregate principal
amount of interest-bearing liabilities outstanding
less cash and cash equivalents (excluding restricted cash).
On
December
30,
2024,
we
completed
the
Waiver
Agreement
with
the
Administrative
Agent
under
the
ABL
Facility to temporarily waive
the Company’s compliance
with the ABL Facility’s
interest coverage ratio covenant
between
December
31,
to
March
30,
2025.
Pursuant
to
the
Waiver
Agreement,
we
will
be
required
to
maintain an aggregate cash
balance of at least
$100.0 million in one
or more accounts
with the Lenders, or
the
Cash Balance
Covenant, until such
time that
we submit
a covenant
compliance certificate to
the Lenders
pursuant
to the ABL Facility which demonstrates that we are in compliance
with the interest coverage ratio covenant. The
Cash
Balance
Covenant
applies
from
the
time
the
Company
submits
the
covenant
compliance
certificate
for
December 31, 2024, which is anticipated to be on or
after February 19, 2025.
At the end
of the waiver
period, unless
further waivers
are obtained,
any breach
of covenants
would constitute
an event of default under the
terms of the ABL Facility and
the Lenders may declare all amounts owing
under the
ABL Facility immediately due and payable,
terminate such Lenders’ commitments
to make loans under the ABL
Facility,
require
the
Borrowers
to cash
collateralize
any
letter of
credit
obligations
and/or exercise
any
and all
remedies and other rights under the ABL Facility.
Safety
For
our
Australian
Operations,
the
twelve-month
rolling
average
Total
Reportable
Injury
Frequency
Rate
at
December
31,
2024,
was
2.22,
compared
to
a
rate
of
1.83
at
the
end
of
December
31,
2023.
At
our
U.S.
Operations, the
twelve-month rolling
average Total
Reportable Incident
Rate at
December 31,
2024 was
2.21,
compared to a rate of 1.44 at the end of December 31,
2023.
The safety of our workforce is our number one priority,
and we remain focused on the safety and wellbeing of all
employees and
contracting parties. Coronado
continues to implement
safety initiatives to
improve our
safety rates
every quarter.
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.
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 on 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) Adjusted EBITDA; (iii) total sales volumes and average realized
price
per
Mt
sold,
which
we
define
as
total
coal
revenues
divided
by
total
sales
volume;
(iv)
Met
coal
sales
Coronado Global Resources Inc. Form 10-K December 31,
volumes and average realized Met price per
Mt sold, which we define as Met coal
revenues divided by Met coal
sales volume; (v)
average segment mining
costs per Mt sold,
which we define
as mining costs
divided by sales
volumes (excluding non-produced coal) for the respective segment; (vi) average segment operating costs per
Mt
sold, which we define as segment operating costs
divided by sales volumes for the respective segment
and (vii)
net cash, which we define
as cash and cash equivalents
(excluding restricted cash)
less outstanding aggregate
principal amount of the Notes and other interest bearing
liabilities.
Coal revenues are shown on our Consolidated Statements 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.
In circumstances
where
we sell
through
intermediaries
to the
export market from our
U.S. Operations, sales
are recognized when
the 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
the
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,
Segment
Adjusted EBITDA and mining
costs, which are financial
measures not recognized in
accordance with U.S. GAAP.
Non-GAAP financial
measures, including
Adjusted EBITDA,
Segment Adjusted
EBITDA and
mining costs,
are
useful to our investors to measure our operating performance.
Non-GAAP financial measures are intended to provide additional information only and do not have any standard
meaning prescribed
by U.S.
GAAP.
These measures
should not
be considered
in isolation
or as
substitute for
measures of performance prepared in accordance with
U.S. GAAP.
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
non-
recurring 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
Consolidated
Financial
Statements such
as investors,
industry analysts
and lenders
to assess
the operating
performance of
the business.
Mining costs,
a non-GAAP
measure, are
based on
the 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 the mine.
Mining costs exclude 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 Consolidated
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.
Year Ended December 31,
2024 Compared to Year
Ended December 31, 2023
Summary
The financial and operational highlights for the year ended December
31, 2024 include:
•
Net loss of
$108.9 million for the
year ended December 31,
2024, decreased by $264.9
million compared
to the
same
period in
2023.
The decrease
was
primarily
driven
by lower
coal
revenues,
due to
lower
average realized prices, partially offset by lower
cost and expenses.
•
Average realized Met price per Mt sold of $185.3 for the year ended December 31, 2024, was $30.4 per
Mt sold lower compared 2023.
Coronado Global Resources Inc. Form 10-K December 31,
•
Sales volume of
15.8 MMt for
the year ended
December 31, 2024,
remained consistent to the
year ended
December
31,
2023,
despite
saleable
production
being
0.5
MMt
lower,
as
our
operations
drew
on
significant coal inventory built in December 2023, which resulted
from shipping delays in Australia.
•
Adjusted EBITDA of $115.1
million for the year ended
December 31, 2024, decrease
by $266.6 million,
compared to $381.7 million for the year ended December
31, 2023. This decrease was a result of
lower
coal revenues, partially offset by lower operating
costs.
For Year Ended December 31,
(US$ in thousands)
Change
%
Revenues:
Coal revenues
2,444,862
2,830,689
(385,827)
(13.6%)
Other revenues
62,851
59,914
2,937
4.9%
Total
revenues
2,507,713
2,890,603
(382,890)
(13.2%)
Costs and expenses:
Cost of coal revenues (exclusive of items shown
separately below)
1,714,987
1,731,630
(16,643)
(1.0%)
Depreciation, depletion and amortization
187,400
160,711
26,689
16.6%
Freight expenses
241,377
259,710
(18,333)
(7.1%)
Stanwell rebate
116,870
136,523
(19,653)
(14.4%)
Other royalties
289,678
345,882
(56,204)
(16.2%)
Selling, general, and administrative expenses
36,944
84,177
(47,233)
(56.1%)
Total
costs and expenses
2,587,256
2,718,633
(131,377)
(4.8%)
Other income (expenses):
Interest expense, net
(58,856)
(56,751)
(2,105)
3.7%
Loss on debt extinguishment
(14,732)
(1,385)
(13,347)
963.7%
Decrease (increase) in provision for discounting and
credit losses
4,216
(4,009)
(95.1%)
Other, net
3,734
5,764
(2,030)
(35.2%)
Total
other expense, net
(69,647)
(48,156)
(21,491)
44.6%
(Loss) income before tax
(149,190)
123,814
(273,004)
(220.5%)
Income tax benefit
40,309
32,251
8,058
25.0%
Net (loss) income attributable to Coronado Global
Resources Inc.
(108,881)
156,065
(264,946)
(169.8%)
Coal revenues
Coal
revenues
were
$2,444.9 million
for
the
year
ended
December
31,
2024,
a
decrease
of
$385.8
million,
compared to $2,830.7 million for
the year ended
December 31, 2023.
This decrease was driven
by lower average
realized Met price per Mt sold of $185.3 for
the year ended December 31, 2024, compared to $215.7 per Mt sold
in 2023, due to
the continuous decline
in coking coal index
prices caused by
weakened steel demand
from key
Met coal markets such as China, Europe and India.
Coronado Global Resources Inc. Form 10-K December 31,
Cost of coal revenues (exclusive of Items shown
separately below)
Cost of coal revenues 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
include employee-related costs, materials and supplies, contractor services, coal handling and preparation costs
and production taxes.
Total
cost of
coal revenues
was $1,715.0
million for
the year
ended December
31, 2024,
a decrease
of $16.6
million, compared to $1,731.6 million for the same period
in 2023.
Cost of
coal revenues
for our
Australian Operations
for the
year ended
December 31,
2024, were
$3.6 million
lower compared
to the
same
period
in 2023.
Cost
savings
from demobilization
of contractors’
fleets
from
late
March 2024 following completion of the historical pre-strip waste deficit works, were partially offset
by significant
inventory
drawdown
for
the
year
ended
December
31,
2024,
due
to
lower
production,
and
higher
unplanned
maintenance costs due to key equipment failures.
Cost of coal revenues
for our U.S. Operations
were $13.0 million lower
for the year ended
December 31, 2024,
compared to
the same
period in
2023, due
to inventory
built for
the year
ended December
31, 2024,
as lower
sales
volumes
exceeded
lower
production,
and
lower
third-party
coal
purchases,
partially
offset
by
higher
unplanned maintenance costs during the year ended
December 31, 2024.
Depreciation, depletion and amortization
Depreciation, depletion and amortization
were $187.4 million for
the year ended
December 31, 2024, an
increase
of $26.7 million, compared
to $160.7 million
for the year
ended December 31,
2023. The increase
was associated
with full year depreciation of equipment brought into service
part way through 2023 and during 2024.
Freight expenses
Freight
expenses
totaled
$241.4
million
for
the
year
ended
December
31,
2024,
a
decrease
of
$18.3
million,
compared to $259.7 million for the year ended December 31, 2023. Our Australian Operations contributed $17.0
million
to
the
decrease
due
lower
sales
volume
shipped
through
WICET,
which
attracts
higher
port
handling
charges. Decrease of $1.3 million
at our U.S. Operations is
driven by lower sales
volumes of 0.2 MMt for
the year
ended December 31, 2024, compared to the same period in
2023.
Stanwell rebate
The Stanwell rebate was
$116.9
million for the year
ended December 31, 2024,
a decrease of $19.7
million, as
compared
to
$136.5
million
for the
year
ended
December
31,
2023.
The
decrease
was
due
to
lower
realized
Reference
coal
pricing
for
the
prior
twelve-month
period
used
to
calculate
the
rebate
compared
to
the
same
period in 2023.
Other royalties
Other
royalties
were
$289.7 million
for
the
year
ended
December
31,
2024,
a
decrease
of
$56.2 million,
as
compared to $345.9 million for the year ended December 31, 2023. Our Australian Operations contributed $47.3
million and our U.S. Operations contributed $8.9 million of
the decrease, a product of lower coal revenues for
the
year ended December 31, 2024, compared to 2023.
Selling, general, and administrative expenses
Selling,
general,
and
administrative
expenses
decreased
by
$47.2
million
to
$36.9
million
for
the
year
ended
December 31, 2024, compared to $84.2 million for the year ended December 31, 2023. Higher costs in the 2023
year were in relation to the additional accrual of $41.3 million stamp duty assessed by QRO on our
acquisition of
Curragh. Refer
to Part
II, Item
8. Financial
Statements
and Supplementary
Data, Note
25 “Contingencies”
for
further information.
Interest Expense, net
Interest
expense,
net
was
$58.9
million
for
the
year
ended
December
31,
2024,
an
increase
of
$2.1
million
compared
to
$56.8
million
for the
same
period
in
2023.
The
increase
was
primarily
driven
by higher
average
indebtedness during
the year
ended December
31, 2024,
compared to
2023, partially
offset by
higher interest
income on cash equivalents and restricted deposits
during the 2024 period.
Coronado Global Resources Inc. Form 10-K December 31,
Loss on Debt Extinguishment
During
the
year
ended
December
31,
2024,
in
connection
with
the
early
redemption
of
the
Notes,
we
recognized a loss on debt extinguishment of $14.7 million, including early redemption premium and unamortized
debt issuance costs.
Other, net
Other, net
was $3.7 million
in the year ended
December 31, 2024,
a decrease of $2.0
million compared to
$5.8
million
for
the
year
ended
December
31,
2023.
During
the
year
ended
December
31,
2024,
the
Company
recognized
an
impairment
charge
of
$10.6
million
against
property,
plant
and
equipment
relating
to
a
long-
standing
non-core
idled
asset
within
its
U.S.
Operations
recognized
based
on
purchase
offer
received
and
accepted by
the Company.
The sale
of this
long-standing non-core
idled asset
was completed
on January
14,
2025.
This
was
more
than
offset
by
lower
exchange
losses
on
translation
of
short-term
inter-entity
balances
between certain entities within
the group that are
denominated in currencies other than
their respective functional
currencies.
Income tax benefit
Income tax benefit of $40.3 million for the
year ended December 31, 2024, compared to $32.3 million
income tax
benefit for the year ended December 31, 2023. The income tax benefit for the 2024 period, is primarily driven by
a loss before tax from our Australian Operations.
The income tax benefit for the year ended December 31
,
2024 resulted in an annual effective tax rate
of 27.0%.
Year Ended December 31,
2023 Compared to Year
Ended December 31, 2022
The Company’s comparison of 2023 results to
2022 results is included in the
Company’s
Annual Report on Form
10-K for the fiscal year ended December 31, 2023
, under Part II Item 7,
“Management’s Discussion and Analysis
of Financial Condition and Results of Operations.”
Coronado Global Resources Inc. Form 10-K December 31,
Supplemental Segment Financial Data
Year Ended December 31,
2024 Compared to Year
Ended December 31, 2023
Australian Operations
For Year Ended December 31,
(US$ in thousands)
Change
%
Sales Volume (MMt)
10.2
9.9
0.3
3.4%
Total
revenues ($)
1,594,981
1,681,522
(86,541)
(5.1)%
Coal revenues ($)
1,560,275
1,645,752
(85,477)
(5.2)%
Average realized price per Mt sold ($/Mt)
153.1
167.0
(13.9)
(8.3)%
Met sales volume (MMt)
7.2
6.8
0.4
6.7%
Met coal revenues ($)
1,472,477
1,557,471
(84,994)
(5.5)%
Average realized Met price per Mt sold ($/Mt)
203.9
230.2
(26.3)
(11.4)%
Mining costs ($)
1,054,066
1,058,598
(4,532)
(0.4)%
Mining costs per Mt sold ($/Mt)
104.6
108.5
(3.9)
(3.6)%
Operating costs ($)
1,592,431
1,679,954
(87,523)
(5.2)%
Operating costs per Mt sold ($/Mt)
156.3
170.5
(14.2)
(8.3)%
Segment Adjusted EBITDA ($)
3,401
2,249
1,152
51.2%
Coal revenues
for our
Australian Operations
for the
year ended
December
31, 2024,
were $1,560.3
million,
a
decrease of
$85.5 million,
or 5.2%,
compared to
$1,645.8 million
for the
year ended
December 31,
2023. The
decrease was driven by
lower average realized Met
price per Mt
sold of $203.9, $26.3
lower, compared to $230.2
per Mt
sold during the
same period in
2023, partially offset
by 0.3MMt higher
sales volume, despite
lower saleable
production, for
the year ended
December 31,
2024, as
we drew on
port inventory
built at the
end of December
2023.
Operating costs decreased
by $87.5 million,
or 5.2%, for
the year ended
December 31,
2024, compared to
the
year ended December 31,
2023, driven by lower
mining costs, lower
Stanwell rebate, lower other
royalties and,
lower freight
expenses caused
by lower
sales volume
shipped through WICET, which
attracts higher
port handling
charges.
Mining
costs
were
$4.5
million
lower
for
the
year
ended
December
31,
2024,
driven
by
cost
savings
from
demobilization of mining
fleets since March
2024, partially offset
by significant inventory
drawdown for the
year
ended December
31, 2024,
as sales
volume exceeded
saleable production,
compared to
inventory built
in the
same period in 2023 and higher maintenance costs due
to key equipment failures.
Mining and Operating
costs per Mt sold
were $3.9 and
$14.2 lower,
respectively,
compared to the
same period
in 2023, a combination of lower costs and higher sales
volume.
For the year ended December 31, 2024, Segment Adjusted EBITDA was
$3.4 million, an increase of $1.2 million
compared to $2.2 million for
the year ended December 31, 2023,
driven by lower operating costs
partially offset
by lower coal revenues.
Coronado Global Resources Inc. Form 10-K December 31,
United States
For Year Ended December 31,
(US$ in thousands)
Change
%
Sales Volume (MMt)
5.6
6.0
(0.4)
(5.5)%
Total
revenues ($)
912,732
1,209,081
(296,349)
(24.5)%
Coal revenues ($)
884,587
1,184,937
(300,350)
(25.3)%
Average realized price per Mt sold ($/Mt)
156.7
198.4
(41.7)
(21.0)%
Met sales volume (MMt)
5.3
5.2
0.1
2.0%
Met coal revenues ($)
854,587
1,031,012
(176,425)
(17.1)%
Average realized Met price per Mt sold ($/Mt)
160.1
196.9
(36.8)
(18.7)%
Mining costs ($)
629,242
610,925
18,317
3.0%
Mining costs per Mt sold ($/Mt)
112.6
106.0
6.6
6.2%
Operating costs ($)
770,481
793,791
(23,310)
(2.9)%
Operating costs per Mt sold ($/Mt)
136.5
132.9
3.6
2.7%
Segment Adjusted EBITDA ($)
147,233
421,093
(273,860)
(65.0)%
Coal
revenues
for
our
U.S.
Operations
decreased
by
$300.4
million,
or
25.3%,
to
$884.6
million
for
the
year
ended
December
31,
2024,
as
compared
to
$1,184.9
million
for
the
year
ended
December
31,
2023.
This
decrease was driven by a
lower average realized Met
price per Mt sold for
the year ended December
31, 2024,
of
$160.1
compared
to
$196.9
per
Mt
sold
for
the
same
period
in
2023.
This
decrease
was
exacerbated
by
0.4MMt lower sales
volume for
the year ended
December 31,
2024, compared to
2023, due to
operational and
geological challenges that led to production downtime
and lower production yield.
Operating costs of $770.5 million
for the year ended December
31, 2024, were $23.3 million
lower compared to
$793.8 million for
the same period
in 2023, driven
by lower third-party
coal purchases and
other royalties, partially
offset
by higher
mining costs.
Mining costs
were $18.3
million, or
$6.6
per Mt
sold, higher
for the
year
ended
December
31, 2024,
due
to
unplanned
maintenance
costs,
and impact
of inflation
on labor
and
supply
costs,
partially offset by an inventory built
for the year ended December
31, 2024, as lower sales
volumes exceed lower
production,
when
compared
to
2023.
Operating
costs
increased
by
$3.6
per
Mt
sold
despite
the
decrease
in
operating costs due to lower sales volume for the year.
Segment Adjusted EBITDA
of $147.2
million for
the year ended
December 31,
2024, decreased by
$273.9 million,
or 65.0%, compared to
$421.1 million for the
year ended December 31, 2023.
This decrease was primarily
driven
by lower coal revenues.
Corporate and Other Adjusted EBITDA
The following table presents a summary of the components
of Corporate and Other Adjusted EBITDA:
For Year Ended December 31,
(US$ in thousands)
Change
%
Corporate and other expenses
36,944
42,856
(5,912)
(13.8)%
Other, net
(1,450)
(1,227)
(223)
18.2%
Total
Corporate and Other Adjusted EBITDA
35,494
41,629
(6,135)
(14.7)%
Corporate and other Adjusted EBITDA decreased
$6.1 million to $35.5 million for the year
ended December 31,
2024, compared to $41.6 million for
the year ended December 31, 2023, due
to concerted efforts to reduce costs
across the organization and the timing of certain corporate
costs.
Coronado Global Resources Inc. Form 10-K December 31,
Mining and operating costs for the Year Ended December 31, 2024 compared to Year
December 31, 2023
A reconciliation of
segment costs and
expenses, segment operating
costs, and segment
mining costs is
shown
below:
For Year Ended December 31, 2024
(US$ in thousands)
Australia
United States
Other /
Corporate
Total
Consolidated
Total costs and
expenses
1,680,817
867,830
38,609
2,587,256
Less: Selling, general and administrative expense
(57)
-
(36,887)
(36,944)
Less: Depreciation, depletion and amortization
(88,329)
(97,349)
(1,722)
(187,400)
Total operating costs
1,592,431
770,481
-
2,362,912
Less: Other royalties
(247,201)
(42,477)
-
(289,678)
Less: Stanwell rebate
(116,870)
-
-
(116,870)
Less: Freight expenses
(149,987)
(91,390)
-
(241,377)
Less: Other non-mining costs
(24,307)
(7,372)
-
(31,679)
Total mining costs
1,054,066
629,242
-
1,683,308
Sales Volume excluding non-produced
coal (MMt)
10.1
5.6
-
15.7
Mining cost per Mt sold ($/Mt)
104.6
112.6
-
107.4
For Year Ended December 31, 2023
(US$ in thousands)
Australia
United States
Other /
Corporate
Total
Consolidated
Total costs and
expenses
1,756,635
876,753
85,245
2,718,633
Less: Selling, general and administrative expense
(30)
-
(84,147)
(84,177)
Less: Depreciation, depletion and amortization
(76,651)
(82,962)
(1,098)
(160,711)
Total operating costs
1,679,954
793,791
-
2,473,745
Less: Other royalties
(294,467)
(51,415)
-
(345,882)
Less: Stanwell rebate
(136,523)
-
-
(136,523)
Less: Freight expenses
(166,980)
(92,730)
-
(259,710)
Less: Other non-mining costs
(23,386)
(38,721)
-
(62,107)
Total mining costs
1,058,598
610,925
-
1,669,523
Sales Volume excluding non-produced
coal (MMt)
9.8
5.8
-
15.5
Mining cost per Mt sold ($/Mt)
108.5
106.0
-
107.6
Average realized Met price for the Year
Ended December 31, 2024 compared to Year
December 31, 2023
A reconciliation of the Company’s average realized
Met coal revenue is shown below:
For Year Ended December 31,
(US$ in thousands)
Change
%
Met sales volume (MMt)
12.6
12.0
0.6
5.0%
Met coal revenues ($)
2,327,064
2,588,483
(261,419)
(10.1)%
Average realized met price per Mt sold ($/Mt)
185.3
215.7
(30.4)
(14.2)%
Coronado Global Resources Inc. Form 10-K December 31,
Reconciliation of Non-GAAP Financial Measures
Adjusted EBITDA
For year ended December 31,
(US$ in thousands)
Reconciliation to Adjusted EBITDA:
Net (loss) income
(108,881)
156,065
771,703
Add: Depreciation, depletion and amortization
187,400
160,711
167,046
Add: Interest expense, net
58,856
56,751
67,632
Add: Other foreign exchange gains
(12,339)
(2,899)
(32,259)
Add: Income tax (benefit) expense
(40,309)
(32,251)
231,574
Add: Loss on debt extinguishment
14,732
1,385
5,336
Add: Impairment of non-core assets
10,585
-
-
Add: Uncertain stamp duty position
-
41,321
-
Add: Restructuring costs
-
-
Add: Losses on idled assets held for sale
4,574
4,846
Add: Decrease (increase) in provision for discounting
and credit losses
(207)
(4,216)
3,821
Adjusted EBITDA
115,140
381,713
1,215,624
Liquidity and Capital Resources
Overview
Our objective is to maintain a prudent capital structure and to ensure that sufficient liquid assets and funding are
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 and
cash equivalents,
cash flow from operations and undrawn capacity under
our committed debt facilities.
Our main uses of cash have historically been, and are expected to continue to be, the funding of our
operations,
working capital,
capital expenditure,
debt service
obligations and
payment of
dividends. 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,
competitive and
weather conditions
and other
risks described
in
Part I, Item 1A. “Risk Factors” of this Annual Report on Form
10-K.
In 2024,
Coronado was
significantly impacted by
a declining
coal market
as well
as several
operational challenges
that impacted
our earnings
during the
year ended
December 31,
2024.
To
mitigate the
risk of
failing to
comply
with the maintenance of
the interest coverage ratio
covenant under the ABL
Facility, we completed an agreement
with the
Administrative
Agent under
the ABL
Facility to
temporarily
waive the
Company’s
compliance with
the
interest coverage ratio covenant between December
31, 2024 to March 30, 2025.
Pursuant to the Waiver Agreement, we will be required to maintain an aggregate cash balance of at least $100.0
million in one or
more accounts with the Lenders until
such time that we
submit a covenant compliance certificate
to
the
Lenders
pursuant
to
the
ABL
Facility
which
demonstrates
that
we
are
in
compliance
with
the
interest
coverage ratio covenant. The Cash Balance Covenant applies from
the time we submit the covenant compliance
certificate for December 31, 2024, which is anticipated
to be on or after February 19, 2025.
At the end
of the waiver
period, unless
further waivers
are obtained,
any breach
of covenants
would constitute
an event of default under the
terms of the ABL Facility and
the Lenders may declare all amounts owing
under the
ABL Facility immediately due and payable,
terminate such Lenders’ commitments
to make loans under the ABL
Facility,
require
the
Borrowers
to cash
collateralize
any
letter of
credit
obligations
and/or exercise
any
and all
remedies and other rights under the ABL Facility.
The Company is continuing to pursue a number of
initiatives to maintain its liquidity and ensure compliance
with
its financial covenants when the waiver
period expires on March 30,
2025. These initiatives include, among other
things,
further
operating
and
capital
cost
control
measures,
potential
other
funding
measures,
including
refinancing,
restructuring
or
amending
terms
of
our
existing
debt
facilities,
and,
if
required,
engagement
on
extensions
to
the
waiver,
including
waiver
of
other
financial
covenants.
These
steps
are
expected
to
mitigate
liquidity constraints.
Coronado Global Resources Inc. Form 10-K December 31,
Based
on
our
outlook
for
the
next
twelve
months,
which
is
subject
to
continued
changing
demand
from
our
customers, volatility in
coal prices, current and
future trade barriers and
tariffs and the uncertainty of
impacts from
ongoing civil unrest
and wars, we
believe our available cash
together with undrawn capacity
under our committed
debt
facilities
and
other
strategic
and
financial
initiatives,
will
be
sufficient
to
meet
the
needs
of
our
existing
operations, capital expenditure, service our debt obligations
and, if declared, payment of dividends.
Sources of liquidity as of December 31, 2024 and December
31, 2023 were as follows:
December 31,
(US$ in thousands)
Cash and cash equivalents, excluding restricted cash
339,374
339,043
Short-term deposits
-
21,906
Undrawn capacity under the ABL Facility
(1)
128,563
128,094
Total
467,937
489,043
(1)
The ABL Facility provides for up to $150.0 million in borrowings, including a $100.0 million sublimit for the issuance of letters of credit, of
which $21.4 million
has been issued,
and $70.0 million
sublimit as a
revolving credit facility.
The letter of
credit sublimit contributes
to our
liquidity as the Company can replace cash collateral, provided in the form of restricted deposits, with letters of credit allowing the release of
such restricted deposits to cash and cash equivalents.
Our total indebtedness as of December 31, 2024 and
December 31, 2023 consisted of the following:
(US$ in thousands)
Current installments of interest bearing liabilities
1,477
-
Interest bearing liabilities, excluding current installments
422,995
242,326
Current installments of other financial liabilities
6,163
2,893
Other financial liabilities, excluding current installments
19,694
5,307
Total
450,329
250,526
Cash and cash equivalents
Cash
and
cash
equivalents
are
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.
ABL Facility
The ABL Facility matures in August 2026 and provides for up to $150.0 million in borrowings, including a $100.0
million
sublimit
for
the
issuance
of
letters
of
credit
and
$70.0
million
sublimit
as
a
revolving
credit
facility.
Borrowing
capacity
under
the
ABL
Facility
is
limited
to
an
eligible
borrowing
base,
determined
by
applying
customary advance rates to eligible accounts receivable and inventory.
Borrowings under
the ABL
Facility bear
interest at
a rate
per annum
equal to
applicable rate
of 2.80%
and the
BBSY,
for loans denominated in A$, or SOFR, for loans
denominated in US$, at the Borrower’s election.
As
of
December
31,
2024,
letter
of
credit
sublimit
had
been
partially
used
to
issue
$21.4
million
of
bank
guarantees
on
behalf
of
the
Company
and
no
amounts
were drawn
and
no
letters
of credit
were
outstanding
under the revolving credit sublimit of the ABL Facility.
On December 30,
2024, we completed
the Waiver
Agreement with
Global Loan
Agency Services
Australia Pty
Ltd, the
Administrative Agent
under the
ABL Facility,
to temporarily
waive the
Company’s
compliance with
the
ABL Facility’s interest coverage ratio covenant
between December 31, 2024 to March 30, 2025.
Pursuant to the
Waiver Agreement,
we will
be required to
maintain an aggregate
cash balance
of at least
$100.0 million in
one
or
more
accounts
with
the
lenders
under
the
ABL
Facility,
or
the
Lenders,
until
such
time
that
we
submit
a
covenant compliance
certificate to
the Lenders
pursuant to
the ABL
Facility which
demonstrates that
we are
in
compliance
with
the
interest
coverage
ratio
covenant.
The
Cash
Balance
Covenant
applies
from
the
time
we
submit the covenant
compliance certificate for December
31, 2024, which
is anticipated to
be on or
after February
19, 2025.
At the end
of the waiver
period, unless
further waivers
are obtained,
any breach
of covenants
would constitute
an event of default under the
terms of the ABL Facility and
the Lenders may declare all amounts owing
under the
ABL Facility immediately due and payable,
terminate such Lenders’ commitments
to make loans under the ABL
Coronado Global Resources Inc. Form 10-K December 31,
Facility,
require
the
Borrowers
to cash
collateralize
any
letter of
credit
obligations
and/or exercise
any
and all
remedies and other rights under the ABL Facility.
As of December 31, 2024, except for maintenance
of the interest coverage ratio covenant
(for which the Waiver
Agreement was obtained), we were in compliance with all other
applicable covenants under the ABL Facility.
Refer to Part II, Item 8, Note 14. “Interest Bearing Liabilities”
for further information.
9.250% Senior Secured Notes
On October
2, 2024,
we successfully
completed
a refinancing
initiative and
issued $400.0
million
of the
Notes. The transaction provides the Company increased financial
flexibility by extending our debt maturity profile
and introducing terms that we believe are more sustainable
for our business.
The Company
used the
net proceeds
from the
transaction to
redeem all
of the
2026 Notes,
and to
pay related
fees and expenses in connection with the offering
of the 2029 Notes and the redemption of the 2026
Notes.
The 2029
Notes are
guaranteed on
a senior
secured basis
by the
Company and
its wholly-owned
subsidiaries
(other than the Issuer)
(subject to certain exceptions
and permitted liens) and
secured by (i) the
ABL Collateral,
and (ii) a second priority
lien on the ABL Priority
Collateral, which is junior
to a first-priority lien
for the benefit of
the lenders and other creditors under the ABL Facility,
in each case, subject to certain exceptions and permitted
liens.
The terms of the
2029 Notes are
governed by the
indenture, dated October
2, 2024, among Coronado
Finance
Pty Ltd,
as issuer, Coronado Global
Resources Inc, as
guarantor, the subsidiaries of
Coronado Global Resources
Inc, named therein, as additional guarantors,
Wilmington Trust, National
Association, as trustee and priority
lien
collateral trustee, or the Indenture. The
Indenture contains customary covenants
for high yield bonds, including,
but
not
limited
to,
limitations
on
investments,
liens,
indebtedness,
asset
sales,
transactions
with
affiliates
and
restricted payments, including payment of dividends on
capital stock.
As of December 31, 2024, the Company was in compliance
with all applicable covenants under the Indenture.
Refer to Part II, Item 8, Note 14. “Interest Bearing Liabilities”
for further information.
We
may
redeem
some
or
all
of
the
Notes
at
the
redemption
prices
and
on
the
terms
specified
in
the
Indenture. In
addition, we
may,
from time
to time,
seek to
retire or
repurchase outstanding
debt through
open-
market purchases,
privately
negotiated transactions
or otherwise.
Such repurchases,
if any,
will be
upon such
terms
and
at
such
prices
we
may
determine,
and
will
depend
on
prevailing
market
conditions,
liquidity
requirements, contractual restrictions and other factors.
Loan - Curragh Housing Transaction
On May 16, 2024, the Company completed the Curragh Housing Transaction, an agreement for accommodation
services and
the sale
and leaseback
of housing
and accommodation
assets with
a regional
infrastructure and
accommodation service provider.
The Curragh Housing Transaction did not satisfy the sale criteria under ASC 606, Revenues from Contracts with
Customers and was deemed a financing arrangement. As a result, the
proceeds of $23.0 million (A$34.6 million)
received for the sale and leaseback of property,
plant and equipment owned by the Company in connection with
the
Curragh
Housing
Transaction
were
recognized
as
“Other
Financial
Liabilities”
on
the
Company’s
Consolidated Balance Sheet. The term of the financing arrangement is
ten years with an effective interest rate of
14.14%.
This
liability
will
be
settled
in
equal
monthly
payments
as
part
of
the
accommodation
service
arrangement.
In line
with the
Company’s capital
management strategy,
the Curragh
Housing Transaction
provides additional
liquidity. In
addition, the accommodation services component
of the Curragh Housing Transaction
is anticipated
to enhance the level of service for our employees at our
Curragh Mine.
In connection with the Curragh Housing Transaction,
the Company borrowed $26.9 million (A$40.4 million) from
the same
regional
infrastructure
and accommodation
service provider.
This amount
was recorded
as “Interest
Bearing
Liabilities”
in
the
Consolidated
Balance
Sheet.
The
amount
borrowed
is
payable
in
equal
monthly
installments over a period of ten years, with an effective
interest rate of 14.14%.
Refer to Part II, Item 8, Note 14. “Interest Bearing Liabilities”
and Note 15. “Other Financial Liabilities” for further
information.
Coronado Global Resources Inc. Form 10-K December 31,
Surety bonds, letters of credit and 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.
For
the
U.S.
Operations,
in
order
to
provide
the
required
financial
assurance
for
post
mining
reclamation,
we
generally
use surety
bonds.
We
also
use surety
bonds
and bank
letters
of credit
to collateralize
certain
other
obligations including contractual obligations under
workers’ compensation insurances. As of
December 31, 2024,
we had
outstanding surety
bonds of
$48.9 million
and $16.8
million of
letters of
credit issued
from our
letter of
credit sublimit available under the ABL Facility.
For the Australian Operations,
as at December 31, 2024,
we had bank guarantees
outstanding of $23.9 million,
including $4.7 million issued from the letter of credit sublimit available under the ABL
Facility, primarily in respect
of certain rail and port take-or-pay arrangements of the Company.
As at December 31,
2024, we have in aggregate
had total outstanding bank guarantees provided
of $40.7 million
to secure its obligations and commitments, including $21.4 million issued for the letter of credit sublimit available
under the ABL Facility.
Future regulatory changes
relating to these
obligations could result
in increased obligations,
additional costs or
additional collateral requirements.
Restricted deposits - cash collateral
As required
by certain
agreements, we
have total
cash collateral
in the
form of
deposits of
$68.5 million
as of
December 31, 2024 to
provide back-to-back support for bank
guarantees, financial payments, other performance
obligations,
various
other
operating
agreements
and
contractual
obligations
under
workers
compensation
insurance. These deposits are
restricted and classified as
non-current assets in the
Consolidated Balance Sheet.
In accordance with the terms of the ABL Facility, we may be required to cash collateralize the ABL Facility to the
extent
of
outstanding
letters
of
credit
after
the
expiration
or
termination
date
of
such
letter
of
credit.
As
of
December
31,
2024,
no
letter
of
credit
was
outstanding
after
the
expiration
or
termination
date
and
no
cash
collateral was required.
Dividend
During the year ended December 31, 2024, we paid $16.7 million in dividends to stockholders or CDI holders on
the ASX,
net of $0.1
million foreign exchange
gain on payment
of dividends to
certain CDI holders
that elected
to be paid in Australian dollars.
On
February
19,
2025,
the
Company’s
Board
of
Directors
declared
a
bi-annual
fully
franked
fixed
ordinary
dividend of $8.4 million, or
0.5 cents per CDI. The
dividend will have a
record date of March
12, 2025, Australia
time, and
be payable
on April
4, 2025,
Australia time.
The total
ordinary dividend
will be
funded from
available
cash.
Capital Requirements
Our main uses of cash have historically been the funding
of our operations, working capital, capital expenditure,
the payment of
interest and dividends.
We intend
to use cash
to fund debt
service payments
on our Notes,
the
ABL Facility and our other indebtedness, to fund operating activities, working capital, capital expenditures and, if
declared, payment of dividends.
Coronado Global Resources Inc. Form 10-K December 31,
Historical Cash Flows
The
following
table
summarizes
our
cash
flows
for
the
year
ended
December
31,
2024,
and
as
reported in the accompanying Consolidated Financial Statements:
Cash Flow
For Year Ended December 31,
(US$ in thousands)
Net cash provided by operating activities
74,039
268,282
926,643
Net cash used in investing activities
(226,336)
(238,168)
(208,343)
Net cash provided by (used in) financing activities
162,765
(24,679)
(784,251)
Net change in cash and cash equivalents
10,468
5,435
(65,951)
Effect of exchange rate changes on cash and cash
equivalents
(10,138)
(769)
(37,351)
Cash and cash equivalents at beginning of period
339,295
334,629
437,931
Cash and cash equivalents at end of period
339,625
339,295
334,629
Operating activities
Net cash provided by operating activities was $74.0 million for the year ended December 31, 2024, compared to
$268.3 million
for
the
year
ended
December
31,
2023.
The
decrease
in
cash
from
operating
activities
was
primarily driven
by lower
coal revenues,
higher operating
costs
and the
additional payment
of $51.5
million in
relation to the
stamp duty
on Curragh’s
acquisition, including
tax interest,
partially offset
by income tax
refunds
compared to income tax payments in 2023.
Net cash provided
by operating activities
was $268.3 million
for the year ended
December 31, 2023,
compared
to $926.6
million
for the
year
ended
December
31,
2022.
The
decrease
in
cash
from
operating
activities
was
primarily driven by lower coal revenues,
higher operating costs and income tax
paid of $147.1 million during the
year.
Investing activities
Net cash
used in
investing
activities was
$226.3 million
for the
year
ended December
31, 2024,
compared
to
$238.2 million
for the
year ended
December 31,
2023. Cash
spent on
capital expenditures
for the
year ended
December
31,
2024,
was
$248.2
million,
of
which
$83.6
million
was
related
to
the
Australian
Operations
and
$164.6 million was related to the U.S. Operations,
and $24.3 million redemption of restricted and other deposits.
The increase in capital
expenditures was largely
due to the investment
in organic growth projects
at both of our
U.S. Operations and Australian Operations.
Net cash
used in
investing
activities was
$238.2 million
for the
year
ended December
31, 2023,
compared
to
$208.3 million
for the
year ended
December 31,
2022. Cash
spent on
capital expenditures
for the
year ended
December
31,
2023,
was
$237.2
million,
of
which
$65.4
million
was
related
to
the
Australian
Operations
and
$171.2 million was related to the U.S. Operations.
Financing activities
Net cash provided by financing activities was $162.8 million for the year ended December 31,
2024 compared to
net cash
used in
financing activities
of $24.7
million for
the year
ended December 31,
2023. The
net cash
provided
by financing
activities for the
year ended December
31,
2024, largely
related to the
proceeds from interest
bearing
liabilities and
other financial
liabilities of
$449.9 million
partially offset
by the
repayment of
interest bearing
and
other financial liabilities of $246.7 million,
call premium paid on early redemption of debt of $9.8 million, payment
of debt issuance and other financing costs of $13.9 million and
dividend payment of $16.7 million.
Net cash used in financing activities was $24.7
million for the year ended December 31, 2023,
compared to cash
used
in
financing
activities
of
$784.3
million
for
the
year
ended
December
31,
2022.
The
net
cash
used
in
financing activities for the year ended December 31, 2023, largely related to dividend payments of $16.8 million,
payment of debt
issuance costs
in connection with
the establishment of
the ABL Facility
of $3.4 million
and the
remainder related to repayment of other financial liabilities.
Coronado Global Resources Inc. Form 10-K December 31,
Contractual Obligations
The following is a summary of our contractual obligations
at December 31, 2024:
Payments Due By Year
Less than
-
-
More than
(US$ in thousands)
Total
1 Year
Years
Years
5 Years
Long
-
term debt obligations
(1)
40,363
9,012
7,450
7,450
16,451
9.250% Senior Secured Notes
(2)
440,954
4,349
8,698
408,698
19,209
Mineral lease commitments
(3)
41,101
4,304
8,246
8,091
20,460
Lease commitments
112,916
26,980
52,643
33,293
-
Unconditional purchase obligations
(4)
111,400
111,400
-
-
-
Take
-
or
-
pay contracts
(5)
665,193
90,910
184,400
190,854
199,029
Total
contractual cash obligations
1,411,927
246,955
261,437
648,386
255,149
_____________________
(1)
Represents
financial
obligation
relating
to
amounts
outstanding
from
financing
equipment
purchases,
insurance premiums and financial liabilities for a sale and lease
back type arrangement.
(2)
Represents
financial
obligation
outstanding
under
the
Notes.
Refer
to
Note
14.
“Interest
Bearing
Liabilities” in the accompanying audited Consolidated Financial
Statements for additional discussion.
(3)
Represents
future
minimum
royalties
and
payments
under
mineral
leases.
Refer
to
Note
24.
“Commitments”
in
the
accompanying
audited
Consolidated
Financial
Statements
for
additional
discussion.
(4)
Represents firm purchase commitments for
capital expenditures (based on order to
suppliers for capital
purchases) for 2024.
(5)
Represents various short- and long-term
take-or-pay arrangements in
Australia associated with rail and
port commitments for the delivery of coal.
This
table
does
not
include
our
estimated
Asset
Retirement
Obligations,
or
ARO.
As
discussed
in
“-Critical
Accounting
Policies
and
Estimates-Carrying
Value
of
Asset
Retirement
Obligations”
below,
the
current
and
non-current
carrying
amount
of
our
ARO
involves
several
estimates,
including
the
amount
and
timing
of
the
payments required to satisfy
these obligations. The timing
of payments is based on numerous
factors, including
projected
mine
closure
dates.
Based
on
our
assumptions,
the
carrying
amount
of
our
ARO
as
determined
in
accordance with U.S. GAAP was $164.8 million as of
December 31, 2024.
Critical Accounting Policies and Estimates
The preparation
of
our Consolidated
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
Consolidated
Financial
Statements
and
the
reported
amounts
of
revenue
and
expenses
during
the
reporting
period.
Listed
below
are
the
accounting
estimates
that
we
believe
are
critical
to
our
Consolidated
Financial
Statements due to the degree of
uncertainty regarding the estimates or assumptions involved and
the magnitude
of the asset, liability, revenue or expense being reported. All of these accounting
estimates and assumptions, as
well
as
the
resulting
impact
to
our
Consolidated
Financial
Statements,
have
been
discussed
with
the
Audit,
Governance and Risk Committee of our Board of Directors.
See Note 2.
“Summary of Significant
Accounting Policies”
to the accompanying
audited Consolidated Financial
Statements for a summary of our significant accounting policies.
Fair Value of Non-Financial Assets
Long-Lived Assets
We
review
the
carrying
value
of
long-lived
assets
to
be
used
in
operations
annually
or
whenever
events
or
changes
in
circumstances
indicate
that
the
carrying
amount
of
the
assets
or
asset
groups
might
not
be
recoverable.
Factors that would necessitate
an impairment assessment
include a significant adverse
change in the extent
or
manner in which an asset is
used, a significant adverse change in
legal factors or the business climate
that could
affect
the
value
of
the
asset
group
or
a significant
decline
in
the
observable
market
value
of
an
asset
group,
Coronado Global Resources Inc. Form 10-K December 31,
among others. If such facts
indicate a potential impairment,
the recoverability of the asset
group is assessed by
determining whether the carrying value
of the asset group exceeds
the sum of the projected
undiscounted cash
flows expected to
result from
the use and
eventual disposition
of the asset
group over the
remaining economic
life of the asset
group. If the projected undiscounted cash
flows are less than
the carrying amount, an impairment
is recorded
for the
excess of
the carrying
amount over
the estimated
fair value,
which is
generally determined
using discounted future cash
flows. Any such write
down is included in
impairment expense in our
consolidated
statement of operations.
A high degree of
judgment is required
to estimate the
fair value of
our intangible and
long-lived assets, and
the
conclusions that
we reach
could vary
significantly based
on these
judgments.
We make
various
assumptions,
including assumptions regarding
future cash flows
in our
assessments of
fair value. The
assumptions about future
cash
flows
and
growth
rates
are
based
on
the
current
and
long-term
business
plans
related
to
the
long-lived
assets. Discount
rate assumptions
are based
on an
assessment of
the risk
inherent in
the future
cash flows
of
the long-lived assets.
The Company recognized
an impairment charge of
$10.6 million against property,
plant and equipment relating
to a long-standing
non-core idled asset
within the U.S.
Operations for the
year ended December
31, 2024. The
Company concluded
that no
impairment charges
were required
at any
of the
Company’s mining
assets for
the
years ended December 31, 2023 and 2022.
Goodwill Impairment
We had
a balance
of goodwill
of $28.0 million
recorded at
December 31,
2024, which
was generated
upon the
acquisition of Buchanan
in 2016. We
perform our annual assessment
of the recoverability of
our goodwill in
the
fourth quarter of each year. We utilize a qualitative assessment for determining whether the quantitative goodwill
impairment analysis is
necessary.
The accounting guidance
permits entities to
first assess qualitative
factors to
determine whether it is more
likely than not that the
fair value of a reporting
unit is less than its carrying
amount
as
a
basis
for
determining
whether
it
is
necessary
to
perform
the
quantitative
goodwill
impairment
test.
In
evaluating goodwill on
a qualitative basis,
we review the
business performance
of the Buchanan
mine complex
(the only reporting
unit with
a goodwill balance)
and evaluate
other relevant
factors as
identified in the
relevant
accounting
guidance
to
determine
whether
it
is
more
likely
than
not
that
an
indicator
of
impairment
exists
at
Buchanan. We consider whether there are any negative macroeconomic conditions, industry specific conditions,
market
changes,
increased
competition,
increased
costs
in
doing
business,
management
challenges,
legal
environments and how these factors might
impact company specific performance in future periods.
As part of the
analysis, we
also consider
fair value
determinations for
certain reporting
units that
have been
made at
various
points throughout
the current
and prior
year for
other purposes
to ensure
there is
no contrary
evidence to
our
analysis. At
December 31,
2024, we
did not
perform a
quantitative impairment
assessment as
we determined,
based on our qualitative assessment, that no impairment
indicators existed.
Carrying Value of Asset Retirement Obligations
The Company is required to maintain a liability
(and associated asset) for the expected value of future
retirement
obligations on their mines, in line with ASC 410, Asset
Retirement and Environmental Obligations.
Reclamation
of
areas
disturbed
by
mining
operations
must
be
performed
by
us
in
accordance
with
approved
reclamation plans and in compliance with state and federal laws in the states of West Virginia and Virginia
in the
U.S., and Queensland in Australia. For areas disturbed, a significant amount of the reclamation will take place in
the future, when
operations cease. There
were no assets
that were
legally restricted for
purposes of settling
asset
retirement obligations
as of
December 31,
2024. In
addition, state
agencies monitor
compliance with
the mine
plans, including reclamation.
Asset retirement
obligations are
determined for
each mine
using various
estimates and
assumptions, including
estimates
of
disturbed
area
as
determined
from
engineering
data,
estimates
of
future
costs
to
reclaim
the
disturbed
area
and
the
timing
of
the
related
cash
flows,
escalated
for
inflation
and
discounted
using
a credit-
adjusted risk-free rate, with an equivalent amount recorded as a long-lived asset. If the Company’s
assumptions
do not
materialize as
expected, the
actual cash
and
costs it
incurs could
be materially
different
than currently
estimated.
An accretion cost
is recorded each period
and the capitalized
cost is depreciated over
the useful life
of the related
asset. As reclamation work is performed or liabilities are otherwise settled,
the recorded amount of the liability is
reduced.
Coronado Global Resources Inc. Form 10-K December 31,
A
review of
restoration
and
decommissioning
provisions
is carried
out annually
on a
mine-by-mine
basis,
and
adjustments are made to reflect any changes in estimates, if necessary. On an interim basis, we may update the
liability based on significant changes to the life of mine or significant increases in disturbances during the period.
Expected Credit Losses
For trade and related party
receivables carried at amortized
cost, we determine expected
credit losses, or ECL,
on a forward-looking basis. The amount of ECL is updated at each reporting date to reflect changes in credit risk
since the
initial recognition of
the respective
financial instrument. We
recognize the lifetime
ECL. ECL
is estimated
based on our
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, including
the expected
timing of
collection, 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.
We consider
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 us.
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.
We write
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 “Decrease (increase) in
provision
for discounting
and
credit
losses”.
Subsequent
recoveries
of
amounts
previously
written
off
are credit
against
“Decrease (increase) provision for discounting and
credit losses” in the
consolidated statement of operations and
other comprehensive income.
Recoverable Coal Reserves
There are numerous uncertainties inherent
in estimating quantities and values of economically
recoverable coal
reserves,
including
many
factors
beyond
our
control.
As
a
result,
estimates
of
economically
recoverable
coal
reserves
are
by
their
nature
uncertain.
Information
about
our
reserves
consists
of
estimates
based
on
engineering,
economic
and
geological
data
assembled
and
analyzed
by
our
staff
and
third-party
qualified
persons. Our
reserves are
periodically reviewed
by an
independent third
party consultant.
Some of
the factors
and assumptions which impact economically recoverable reserve
estimates include:
•
geological settings;
•
historical production from the area compared with production from
other producing areas;
•
the assumed effects of regulations and taxes by governmental
agencies
;
•
assumptions governing future prices; and
•
future operating costs.
Each of these factors may in fact vary considerably from the
assumptions used in estimating reserves. For these
reasons,
estimates
of
the
economically
recoverable
quantities
of
coal
attributable
to
a
particular
group
of
properties, and classifications
of these reserves
based on the
risk of recovery
and estimates of
future net cash
flows,
may
vary
substantially.
Actual
production,
revenues
and
expenditures
with
respect
to
our
reserves
will
likely
vary
from
estimates,
and
these
variances
may
be
material.
See

---

ITEM 1A. RISK FACTORS
Item 1A.
“Risk
Factors-We
rely
on
estimates of our
recoverable reserves,
which is complex
due to geological
characteristics of the
properties and
the number of assumptions made”
and Item 2. “Properties” for discussions
of the uncertainties in estimating
our
proven and probable coal reserves.
Taxes
We are required to
estimate the amount of
tax payable or
refundable for the
current year and the
deferred income
tax liabilities and assets
for the future tax consequences
of events that have
been reflected in our
Consolidated
Financial Statements
or tax
returns for
each taxing
jurisdiction in
which we
operate. This
process requires
that
deferred tax assets
be reduced by
a valuation allowance
if it is “more
likely than not”
that some portion
or all of
the deferred tax asset will not be realized. In our
evaluation, we take into account various factors, including
the
impact of various agreements
and transactions that
we enter into, taxable
income in carryback years,
reversals
of existing taxable temporary differences and the expected
amount of future taxable income. These assumptions
required significant
judgement
about forecasts
of future
taxable income
and are
consistent with
the plans
and
Coronado Global Resources Inc. Form 10-K December 31,
estimates we use to manage our underlying business. Based on
these judgments we may record tax reserves or
adjustments
to
valuation
allowances
on
deferred
tax
assets
to
reflect
the
expected
realizability
of
future
tax
benefits. Actual income
taxes could vary
from these estimates
due to
future changes in
income tax
law, significant
changes
in
the
jurisdictions
in
which
we
operate,
our
inability
to
generate
sufficient
future
taxable
income
or
unpredicted results from the final
determination of each year’s
liability by taxing authorities. These
changes could
have a significant impact on our financial position.
Newly Adopted Accounting Standards and Accounting
Standards Not Yet Implemented
See Note 2. “Summary
of Significant Accounting
Policies” to the
accompanying audited
Consolidated Financial
Statements
for
a
discussion
of
newly
adopted
accounting
standards
and
accounting
standards
not
yet
implemented.
Coronado Global Resources Inc. Form 10-K December 31,
ITEM 7A.
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
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.
The
expectation
of
future
prices
for
coal
depends
upon
many
factors
beyond
our
control.
Met
coal
has
been
volatile commodity over the
past ten years. The
demand and supply in the
Met coal industry changes
from time
to
time.
There
are
no
assurances
that
oversupply
will
not
occur,
that
demand
will
not
decrease
or
that
overcapacity will not occur, which could cause
declines in the prices of
coal, which could have a
material adverse
effect on our financial condition and results
of operations.
Access to
international markets
may be
subject to
ongoing interruptions
and trade
barriers due
to policies
and
tariffs
of
individual
countries.
We
may
or
may
not
be
able
to
access
alternate
markets
of
our
coal
should
interruptions or trade
barriers occur in
the future.
An inability for
Metcoal suppliers to
access international markets
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
Part I, Item 1A. “Risk Factors-Risks related to the Supply Deed with Stanwell may
adversely affect our financial
condition and results of operations.”
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 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.
As of
December 31,
2024, we had
$23.5
million
of
outstanding
provisionally
priced
receivables
subject
to
changes
in
the
relevant
price
index.
If
prices decreased 10%,
these provisionally priced
receivables would decrease
by $2.3 million.
See Part
I, 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.”
Coronado Global Resources Inc. Form 10-K December 31,
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). The
expectation of
future prices
for diesel
depends upon
many
factors
beyond
our
control.
The
current
Israel-Palestine
conflict
could
create
significant
uncertainty
regarding
interruptions to global oil supply causing significant
volatility in prices of related commodities,
including the price
of diesel fuel we
purchase. 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 operations in 2025 will be purchased
under fixed-price contracts or on a spot basis.
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
our
financial
performance,
investment
decisions
and
stockholder
return.
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
December
31,
2024,
we
had
$450.3
million
of
fixed-rate
borrowings,
including
the
Notes,
and
no variable-rate borrowings outstanding.
We currently do not hedge against interest rate
fluctuations.
Foreign Exchange Risk
A significant portion of our
sales are denominated in US$.
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 70% of expenses incurred at our Australian Operations are denominated in
A$. Approximately 30% of our
Australian Operations’ purchases are made with
reference to US$, which provides
a natural hedge against foreign
exchange movements on these
purchases (including fuel, several
port handling
charges, demurrage,
purchased coal
and some
insurance premiums).
Appreciation of
the A$
against US$
will
increase our Australian
Operations’ US$ reported
cost base and
reduce US$ reported
net income. For
the portion
of US$ required to purchase A$ to settle our Australian Operations’ operating costs, a 10% increase in the A$ to
US$ exchange
rate would
increase reported
total costs
and expenses
by approximately
$118.6
million for
the
year ended December 31, 2024.
Under normal market conditions, we generally do not consider it necessary to hedge our
exposure to this foreign
exchange risk.
However,
there
may be
specific commercial
circumstances,
such
as the
hedging
of significant
capital
expenditure,
acquisitions,
disposals
and
other
financial
transactions,
where
we
may
deem
foreign
exchange hedging
as appropriate
and
where a
US$ contract
cannot
be negotiated
directly with
suppliers
and
other third parties.
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.
We currently do not hedge our non-US$ exposures
against exchange rate fluctuations.
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 independent 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
and
Board
of
Directors.
Coronado Global Resources Inc. Form 10-K December 31,
As of December
31, 2024,
we had financial
assets of
$617.9 million, comprising
of cash and
cash equivalents,
trade receivables and
restricted deposits,
which are exposed
to counterparty
credit risk. These
financial assets
have been assessed under ASC 326, Financial Instruments - Credit Losses, and
a provision for discounting and
credit
losses
of
$0.7
million
was
recorded
as
of
December
31,
2024.
See
Item
8.
“Financial
Statements
and
Supplementary Data-Note 7. Provision for Discounting and
Credit Losses.”
Coronado Global Resources Inc. Form 10-K December 31,
ITEM 8. FINANCIAL STATEMENTS
AND SUPPLEMENTARY
DATA
Page
Number
Consolidated Balance Sheets
Consolidated Statements of Operations and Comprehensive Income
Consolidated Statements of Stockholders’ Equity
Consolidated Statements of Cash Flows
Notes to Consolidated Financial Statements
Report of Independent Registered Public Accounting Firm
(PCAOB
ID:
)
Coronado Global Resources Inc. Form 10-K December 31,
Consolidated Balance Sheets
(In US$ thousands, except share data)
Assets
Note
December 31,
December 31,
Current assets:
Cash and cash equivalents
$
339,625
$
339,295
Trade receivables, net
209,110
263,951
Inventories
155,743
192,279
Income tax receivable
-
44,906
Other current assets
110,275
103,609
Total
current assets
814,753
944,040
Non-current assets:
Property, plant and
equipment, net
1,507,130
1,506,437
Right of use asset - operating leases, net
90,143
80,899
Goodwill
28,008
28,008
Intangible assets, net
2,905
3,108
Restricted deposits
68,471
68,660
Deferred income tax assets
-
27,230
Other non-current assets
6,342
19,656
Total
assets
$
2,517,752
$
2,678,038
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable
$
101,743
$
113,273
Accrued expenses and other current liabilities
206,798
312,705
Asset retirement obligations
15,523
15,321
Contract obligations
37,090
40,722
Lease liabilities
19,502
22,879
Interest bearing liabilities
1,363
-
Income tax payable
17,568
-
Other current financial liabilities
5,988
2,825
Total
current liabilities
405,575
507,725
Non-current liabilities:
Asset retirement obligations
149,275
148,608
Contract obligations
27,772
61,192
Deferred consideration liability
285,050
277,442
Interest bearing liabilities
410,944
235,343
Other financial liabilities
18,881
5,307
Lease liabilities
74,241
61,692
Deferred income tax liabilities
36,737
100,145
Other non-current liabilities
36,392
34,549
Total
liabilities
$
1,444,867
$
1,432,003
Common stock $
0.01
par value;
1,000,000,000
shares authorized,
167,645,373
shares issued and outstanding as of December 31, 2024 and
December 31, 2023
1,677
1,677
Series A Preferred stock $
0.01
par value;
100,000,000
shares authorized,
Share issued and outstanding as of December 31, 2024 and
December 31,
-
-
Additional paid-in capital
1,094,560
1,094,431
Accumulated other comprehensive losses
(137,560)
(89,927)
Retained earnings
114,208
239,854
Total
stockholders’ equity
1,072,885
1,246,035
Total
liabilities and stockholders’ equity
$
2,517,752
$
2,678,038
See accompanying notes to consolidated financial
statements.
Coronado Global Resources Inc. Form 10-K December 31,
Consolidated Statements of Operations and Comprehensive
Income
(In US$ thousands, except share data)
Year ended December 31,
Note
Revenues:
Coal revenues
$
2,444,862
$
2,830,689
$
3,527,626
Other revenues
62,851
59,914
43,916
Total
revenues
2,507,713
2,890,603
3,571,542
Costs and expenses:
Cost of coal revenues (exclusive of items shown
separately below)
1,714,987
1,731,630
1,515,585
Depreciation, depletion and amortization
187,400
160,711
167,046
Freight expenses
241,377
259,710
249,081
Stanwell rebate
116,870
136,523
165,995
Other royalties
289,678
345,882
385,065
Selling, general, and administrative expenses
36,944
84,177
42,499
Total
costs and expenses
2,587,256
2,718,633
2,525,271
Other income (expenses):
Interest expense, net
(58,856)
(56,751)
(67,632)
Loss on debt extinguishment
(14,732)
(1,385)
(5,336)
Decrease (increase) in provision for discounting and
credit losses
4,216
(3,821)
Other, net
3,734
5,764
33,795
Total
other expense, net
(69,647)
(48,156)
(42,994)
(Loss) income before tax
(149,190)
123,814
1,003,277
Income tax (expense) benefit
40,309
32,251
(231,574)
Net (loss) income attributable to Coronado Global
Resources Inc.
$
(108,881)
$
156,065
$
771,703
Other comprehensive loss, net of income taxes:
Foreign currency translation adjustment
(47,633)
1,496
(47,195)
Total
other comprehensive (loss) income
(47,633)
1,496
(47,195)
Total
comprehensive (loss) income attributable to
Coronado Global Resources Inc.
$
(156,514)
$
157,561
$
724,508
(Loss) earnings per share of common stock
Basic
5 (c)
(0.65)
0.93
4.60
Diluted
5 (c)
(0.65)
0.93
4.60
See accompanying notes to consolidated financial
statements.
Coronado Global Resources Inc. Form 10-K December 31,
Consolidated Statements of Stockholders’ Equity
(In US$ thousands, except share data)
Common stock
Preferred stock
Additional
paid in
capital
Accumulated
other
comprehensive
losses
(Accumulated
losses) Retained
earnings
Total
stockholders'
equity
Shares
Amount
Series A
Amount
Balance December 31, 2021
167,645,373
$
1,677
$
-
$
1,089,547
$
(44,228)
$
30,506
$
1,077,502
Net income
-
-
-
-
-
-
771,703
771,703
Other comprehensive loss
-
-
-
-
-
(47,195)
-
(47,195)
Total comprehensive (loss) income
-
-
-
-
-
(47,195)
771,703
724,508
Stock-based compensation for equity
classified awards
-
-
-
-
2,735
-
-
2,735
Dividends
-
-
-
-
-
-
(701,655)
(701,655)
Balance December 31, 2022
167,645,373
$
1,677
$
-
$
1,092,282
$
(91,423)
$
100,554
$
1,103,090
Net income
-
-
-
-
-
-
156,065
156,065
Other comprehensive income
-
-
-
-
-
1,496
-
1,496
Total comprehensive income
-
-
-
-
-
1,496
156,065
157,561
Stock-based compensation for equity
classified awards
-
-
-
-
2,149
-
-
2,149
Dividends
-
-
-
-
-
-
(16,765)
(16,765)
Balance December 31, 2023
167,645,373
$
1,677
$
-
$
1,094,431
$
(89,927)
$
239,854
$
1,246,035
Net loss
-
-
-
-
-
-
(108,881)
(108,881)
Other comprehensive loss
-
-
-
-
-
(47,633)
-
(47,633)
Total comprehensive loss
-
-
-
-
-
(47,633)
(108,881)
(156,514)
Stock-based compensation for equity
classified awards
-
-
-
-
-
-
Dividends
-
-
-
-
-
-
(16,765)
(16,765)
Balance December 31, 2024
167,645,373
$
1,677
$
-
$
1,094,560
$
(137,560)
$
114,208
$
1,072,885
See accompanying notes to consolidated financial
statements
Coronado Global Resources Inc. Form 10-K December 31,
Consolidated Statements of Cash Flows
(In US$ thousands)
Year Ended December 31,
Cash flows from operating activities:
Net (loss) income
$
(108,881)
$
156,065
$
771,703
Adjustments to reconcile net income to cash and
cash equivalents provided
by operating activities:
Depreciation, depletion and amortization
190,923
163,862
165,503
Change in estimate of asset retirement obligation
(3,523)
(3,151)
1,543
Impairment of non-core assets
10,585
-
-
Amortization of right of use asset - operating leases
22,091
12,415
6,704
Amortization of deferred financing costs
3,989
4,300
1,933
Non-cash interest expense
34,912
30,997
31,362
Amortization of contract obligations
(31,443)
(33,026)
(36,519)
Equity-based compensation expense
2,149
2,735
Loss on debt extinguishment
14,732
1,385
5,336
Deferred income taxes
(39,526)
(21,338)
40,423
Reclamation of asset retirement obligations
(9,724)
(5,334)
(4,543)
(Decrease) increase in provision for discounting and
credit losses
(207)
(4,216)
3,821
Gain on translation of short-term inter-entity balances
(10,028)
-
-
Other
(694)
Changes in operating assets and liabilities:
Accounts receivable - including related party receivables,
net
35,451
155,056
(156,818)
Inventories
27,644
(32,774)
(41,243)
Other current assets
(2,778)
(477)
(12,365)
Accounts payable
(9,366)
40,159
(27,664)
Accrued expenses and other current liabilities
(97,895)
(25,435)
84,041
Operating lease liabilities
(21,050)
(14,597)
(8,244)
Income tax payable
66,665
(164,834)
96,326
Change in other liabilities
2,033
6,560
1,754
Net cash provided by operating activities
74,039
268,282
926,643
Cash flows from investing activities:
Capital expenditures
(248,142)
(237,205)
(199,716)
Proceeds from the disposal of property, plant, and equipment
-
-
Purchase of restricted and other deposits
(2,462)
(27,213)
(9,761)
Redemption of restricted and other deposits
24,268
26,250
Net cash used in investing activities
(226,336)
(238,168)
(208,343)
Cash flows from financing activities:
Proceeds from interest bearing liabilities and other
financial liabilities
449,860
-
-
Debt issuance costs and other financing costs
(13,912)
(3,436)
-
Principal payments on interest bearing liabilities
and other financial liabilities
(246,668)
(4,361)
(81,310)
Call premiums paid on early redemption of debt
(9,768)
-
(2,557)
Principal payments on finance lease obligations
(68)
(127)
(140)
Dividends paid
(16,679)
(16,755)
(700,244)
Net cash provided by (used in) financing activities
162,765
(24,679)
(784,251)
Net increase (decrease) in cash and cash equivalents
10,468
5,435
(65,951)
Effect of exchange rate changes on cash and cash equivalents
(10,138)
(769)
(37,351)
Cash and cash equivalents at beginning of period
339,295
334,629
437,931
Cash and cash equivalents at end of period
$
339,625
$
339,295
$
334,629
Supplemental disclosure of cash flow information:
Cash payments for interest
$
29,727
$
28,632
$
36,728
Cash (refund) paid for taxes
$
(67,842)
$
147,106
$
90,888
Restricted cash
$
$
$
See accompanying notes to consolidated financial
statements
Coronado Global Resources Inc. Form 10-K December 31,
NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS
1.
Description of Business, Basis of Presentation
(a)
Nature of operations
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
United States, or
U.S. For details
of the
Company’s
capital structure, refer to Note 5 “Capital Structure” for
further information.
(b)
Basis of Presentation
The
Consolidated
Financial
Statements
have
been
prepared
in
accordance
with
requirements
of
the
U.S.
Generally Accepted
Accounting
Principles,
or U.S.
GAAP and
are presented
in U.S.
dollars,
unless otherwise
stated.
The Consolidated Financial
Statements include the
accounts of the
Company and its
subsidiaries. The Company,
or
Coronado,
are
used
interchangeably
to
refer
to
Coronado
Global
Resources
Inc.
or
Coronado
Global
Resources Inc.
and its
subsidiaries, as
appropriate to
the context.
All intercompany
balances and
transactions
have been eliminated on consolidation.
(c)
Certain Significant Risks and Uncertainties
External
factors,
including
general
economic
conditions,
international
events
and
circumstances,
competitor
actions, governmental actions
and regulations are beyond
the Company’s control
and can cause fluctuations
in
demand
for
coal
and
volatility
in
the
price
of
commodities.
This
in
turn
may
adversely
impact
the
Company’s
future operating results, purchase or investment opportunities
in the coal mining industry.
Concentration of customers
The Company has a credit
policy that establishes procedures
to determine creditworthiness
and credit limits for
trade customers and counterparties
in the over-the-counter coal
market. Generally,
credit is extended based on
an evaluation
of the customer’s
financial condition.
Collateral is
not generally
required, unless
credit cannot
be
established.
Payments from customers are generally due between
to
days after invoicing. Invoicing usually occurs after
shipment
or
delivery
of
goods.
The
timing
between
the
recognition
of
revenue
and
receipt
of
payment
is
not
significant.
The Company had certain customers
whose accounts receivable balances individually represented
% or more
of
the
Company’s
total
accounts
receivable,
or
whose
revenue
individually
represented
%
or
more
of
the
Company’s total revenue.
The
following
table
summarizes
any
customer
whose
revenue
individually
represented
%
or
more
of
the
Company’s total coal revenues in the year ended
December 31, 2024.
Year Ended December 31,
Tata
Steel
20%
21%
19%
JFE Steel
11%
8%
8%
For the year
ended December
31, 2024, $
1,330.4
million, or
54.6
%, of total
coal revenues,
were attributable
to
five
customers. In comparison,
for the year
ended December 31,
2023, $
1,509.1
million, or
53.3
%, of total
coal
revenues were
attributable
to
five
customers
and for
the year
ended December
31, 2022,
$
1,848.8
million,
or
52.6
%, of total
coal revenues
were attributable to
five
customers. As of
December 31, 2024,
the Company had
four
customers that
accounted for
$
119.2
million, or
56.9
%, of
accounts receivable.
As of
December 31,
2023,
the Company had
three
customers that accounted for $
152.9
million, or
57.9
%, of accounts receivable.
NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS
(Continued)
Coronado Global Resources Inc. Form 10-K December 31,
The
following
table
presents
revenues
as
a
percent
of
total
revenue
from
external
customers
by
geographic
region:
Year Ended December 31,
Asia
59%
50%
46%
North America
14%
11%
12%
South America
8%
8%
8%
Europe
7%
6%
11%
Australia
3%
4%
4%
Brokered sales
9%
21%
19%
Total
100%
100%
100%
The Company uses shipping destination as the
basis for attributing revenue to individual
countries. The transfer
of title on
brokered transactions
may occur at
a point that
does not reflect
the end usage
point, therefore
these
sales are reflected as exports and classified as brokerage sales.
Concentration of labor
Out
of
the
Company’s
total
employees,
10.1
%
as
of
December
31,
2024,
are
subject
to
the
Curragh
Mine
Enterprise
Agreement
2023.
This
agreement
covers
work
carried out
by permanent,
full-time,
temporary,
and
casual coal mining
employees engaged
by Curragh
to fulfill
production, maintenance
and processing
activities.
Other than
the Curragh
Mine Enterprise
Agreement 2023,
there are
no other
collective bargaining
agreements
or union contracts covering employees of the Company
.
Transportation
The Company depends
upon port and
rail transportation
systems to deliver
coal to
its customers.
Disruption of
these
transportation
services
due
to
weather-related
problems,
mechanical
difficulties,
strikes,
lockouts,
bottlenecks, and other
events could temporarily
impair the Company’s
ability to supply
coal to its
customers. In
the past, disruptions in these services have resulted in
delayed shipments and production interruptions.
2.
Summary of Significant Accounting Policies
(a)
Newly Adopted Accounting Standards
Accounting Standards
Update, or
ASU, No. 2023-07
“Segment Reporting”
(Topic
280)
: In November
2023, the
FASB
issued
ASU
2023-07,
which
intended
to
improve
reportable
segment
disclosure
requirements
through
enhanced
disclosures
of
significant
segment
expenses.
The
guidance
was
effective
and
implemented
in
the
Company’s consolidated financial statements for the
year ended December 31, 2024.
The updated standard
impacted only the
financial statement disclosures with
no impact on
the Company’s results
of operation, cash flows and financial position.
Such new disclosures are included in Note 3 “Segment Information”.
(b)
Accounting Standards Not Yet
Implemented
ASU 2023-09
“Income Taxes”
(Topic
740)
: In
December
2023, the
FASB
issued 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 statement disclosures.
NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS
(Continued)
Coronado Global Resources Inc. Form 10-K December 31,
ASU 2024-03
“Income Statement
- Reporting
Comprehensive Income
- Expense
Disaggregation Disclosures”
(Subtopic 220-40)
: Disaggregation of Income
Statement Expenses. In
November 2024, the
FASB
issued 2024-
03, which require disclosure, in
the notes to financial statements, of
specified information about certain costs and
expenses. The amendments aim to improve financial reporting by requiring that public business entities disclose
additional information about
specific expense categories
in the notes
to financial statements
at interim
and annual
reporting periods. The
updated standard is
effective for
annual reporting periods
beginning after December
15,
2026,
and
interim
reporting
periods
beginning
after
December
15,
2027.
Early
adoption
is
permitted.
The
Company
is
currently
evaluating
the
impact
that
the
updated
standard
will
have
in
its
financial
statement
disclosures.
There have been
no other recent
accounting pronouncements not yet
effective that have significance,
or potential
significance, to the Company’s Consolidated Financial
Statements.
(c) Use of Estimates
The preparation
of Consolidated
Financial
Statements
in conformity
with U.S. GAAP
requires
management
to
make certain
judgements, estimates
and assumptions
that affect
the reported
amounts of
assets and
liabilities
and disclosure of
contingent assets and contingent
liabilities at the
date of the
Consolidated Financial Statements
and
the
reported
amounts
of
revenues
and
expenses
during
the
reporting
periods.
Actual
results
could
differ
materially
from
those
estimates.
Significant
items
subject
to
such
estimates
and
assumptions
include
asset
retirement obligations; useful lives for depreciation,
depletion and amortization; expected credit
losses; deferred
income tax
assets and
liabilities; values
of coal
properties;
goodwill; workers’
compensation
liability and
other
contingencies.
(d)
Foreign Currency
Financial Statements of foreign operations
The reporting currency of the Company is the U.S. Dollar,
or US$.
Functional
currency
is
determined
by
the
primary
economic
environment
in
which
an
entity
operates.
The
functional currency of
the Company
and its subsidiaries
is the US$,
with the exception
of two foreign
operating
subsidiaries, Coronado Curragh Pty Ltd, or Curragh, and its immediate
parent, Coronado Australia Holdings Pty
Ltd, or CAH,
whose functional
currency is
the Australian
dollar,
or A$, since
Curragh’s predominant
sources of
operating expenses are denominated in that currency.
Assets and liabilities
are translated at
the year-end exchange
rate and items
in the statement
of operations are
translated at average rates with gains and losses from
translation recorded in other comprehensive losses.
Foreign Currency Transactions
Monetary
assets
and
liabilities
are
remeasured
at
year-end
exchange
rates
while
non-monetary
items
are
remeasured at historical rates.
Gains and
losses
from foreign
currency
remeasurement
related
to Curragh’s
US$ receivables
are included
in
coal revenues.
All other
gains
and losses
from foreign
currency
remeasurement
and foreign
currency
forward
contracts
are
included
in
“Other,
net”,
with
exception
of
foreign
currency
gains
or
losses
on
long-term
intercompany
loan
balances
which
are classified
within
“Accumulated
other
comprehensive
losses.”
The
total
aggregate impact of foreign currency
transaction gains or losses on the
Consolidated Statements of Operations
and Comprehensive
Income was
a net gain
of $
21.6
million, $
2.5
million and $
47.6
million for the
years ended
December 31,
2024,
2023 and
2022, respectively.
The total
impact of
foreign currency
transactions related
to
US$ coal
sales in
Australia (included
in the
total above)
was a
net gain
of $
8.4
million, net
loss of
$
1.0
million
and net gain of $
15.0
million for the years ended December 31, 2024, 2023 and
2022, respectively.
(e)
Cash and Cash Equivalents
Cash and cash
equivalents include cash
at bank and
short-term highly liquid investments
with an original
maturity
date
of
three
months
or
less.
The
Company
had
$
221.4
million
and
$
130.0
million
of
short-term
highly
liquid
investments classified as cash equivalents for the years
ended December 31, 2024 and 2023, respectively.
“Cash
and
cash
equivalents”,
as disclosed
in
the
accompanying
Consolidated
Balance
Sheets,
includes
$
0.3
million of restricted cash at December 31, 2024 and
2023.
NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS
(Continued)
Coronado Global Resources Inc. Form 10-K December 31,
(f)
Trade Accounts Receivables
Trade accounts receivables represent
customer obligation that
is derived
from revenue recognized
from contracts
with customers. The Company extends trade credit to its customers in the ordinary course of business based on
an evaluation of the individual customer’s financial
condition.
Trade receivables are initially recorded at fair value
and subsequently at amortized cost, less any Expected
Credit Losses, or ECL.
The Company
determines
ECL on
a forward
-looking
basis
for the
expected
lifetime
losses
on trade
accounts
receivable.
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
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, including expected timing
of
collection,
at
the
reporting
date,
modified
for
credit
enhancements
such
as
letters
of
credit
obtained.
To
measure ECL,
trade receivables
have been
grouped
based on
shared credit
risk characteristics
and the
days
past due.
The amount of credit
loss is recognized in
the Consolidated Statements
of Operations and Other Comprehensive
Income within “Provision for discounting and credit losses.” 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. Subsequent
recoveries of amounts
previously written off
are credited against “Provision
for discounting and
credit losses” in
the Consolidated Statements of Operations and Other
Comprehensive Income.
(g)
Inventories
Coal is recorded
as inventory at the
point in time
the coal is
extracted from the
mine. Raw coal
represents coal
stockpiles that
may be
sold in
current condition
or may
be further
processed prior
to shipment
to a
customer.
Saleable coal represents coal stockpiles which require
no further processing prior to shipment to a customer.
Coal inventories are stated
at the lower of average
cost and net realizable
value. The cost of coal
inventories is
determined based
on an
average cost
of production,
which includes
all costs
incurred to
extract, transport
and
process
the coal.
Net
realizable
value
considers
the
estimated
sales
price
of
the
particular
coal
product,
less
applicable selling costs, and, in the case of raw coal, estimated
remaining processing costs.
Supplies
inventory
is
comprised
of
replacement
parts
for
operational
equipment
and
other
miscellaneous
materials and supplies
required for mining
which are stated
at cost on the
date of purchase.
Supplies inventory
is valued at
the lower of
average cost or
net realizable
value, less a
reserve for obsolete
or surplus items.
This
reserve incorporates several factors, such as anticipated usage, inventory turnover and inventory levels. It is not
customary to sell these inventories; the Company plans
to use them in mining operations as needed.
(h)
Property, Plant and
Equipment, Impairment of Long-Lived Assets and Goodwill
Property, Plant, and
Equipment
Costs for mine development incurred to
expand capacity of operating mines or to
develop new mines and certain
mining equipment are capitalized and charged to operations on the
hours of usage or units of production method
over
the
estimated
proven
and
probable
reserve
tons
directly
benefiting
from
the
capital
expenditures.
Mine
development
costs
include
costs
incurred
for
site
preparation
and
development
of
the
mines
during
the
development stage.
Mineral rights
and reserves
acquired are
measured at
cost and
are depleted
on a
units of
production
method
over
the
estimated
proven
and
probable
reserve
tons
of
the
relevant
mineral
property.
Capitalized costs related to internal-use software are amortized on
a straight-line basis over the estimated useful
lives of the assets.
Property,
plant,
and
equipment
are
recorded
at
cost
and
include
expenditures
for
improvements
when
they
substantially
increase
the
productive
lives
of existing
assets.
Depreciation
is calculated
using
the
straight-line
method over
the estimated
useful lives
of the
depreciable assets of
to
years for machinery, mining
equipment
and
transportation
vehicles,
to
years
for
office
equipment,
and
to
years
for
plant,
buildings
and
improvements.
Maintenance and
repair costs
are expensed to
operations as
incurred. When
equipment is
retired or
disposed,
the related cost
and accumulated
depreciation are
removed from
the respective
accounts and any
gain or loss
on disposal is recognized in operations.
NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS
(Continued)
Coronado Global Resources Inc. Form 10-K December 31,
Impairment of long-lived 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
cash
flows
expected
to
be
generated by
that asset
or asset
group to
its carrying
amount. If
the carrying
amount of
the long-lived
asset or
asset group
is not
recoverable on
an undiscounted
cash flow
basis, an
impairment is
recognized to
the extent
that the
carrying amount
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.
In circumstances where
the Company intends
to sell a
long-lived or asset
group, that did
not satisfy the
criteria
to be
classified
as
held-for-sale,
an
impairment
charge
is recorded
when
the
carrying
amount
of the
disposal
group exceeds its estimated fair value, less costs to sell.
The Company recognized
an impairment charge of
$
10.6
million against property,
plant and equipment relating
to a long-standing
non-core idled asset
within the U.S.
Operations for the
year ended December
31, 2024. The
Company concluded
that
no
impairment charges
were required
at any
of the
Company’s mining
assets for
the
years ended December 31, 2023 and 2022.
Goodwill
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.
In
connection
with
the
Buchanan
acquisition on
March 31,
2016, the
Company recorded
goodwill in
the amount
of $
28.0
million.
The Company
performed a
qualitative assessment
to determine
if impairment
was required
at December 31,
2024 and
2023.
Based upon the
Company’s qualitative
assessment, it
is more likely
than not that
the fair value
of the reporting
unit is greater
than its carrying amount
at December 31, 2024 and
2023. As a
result,
no
impairment was required,
and the balance
of goodwill at
both December 31, 2024 and
2023 was $
28.0
million. The Company has
not noted
any indicators of impairment since the acquisition date.
Goodwill is not
amortized but is reviewed
for impairment annually or
when circumstances or other
events indicate
that impairment may have occurred. The Company follows the
guidance in Accounting Standards Update 2017-
“
Intangibles
-
Goodwill
and
Other:
Simplifying
the
Test
for
Goodwill
Impairment
”
(ASU 2017-04).
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 mining
asset 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.
(i)
Asset Retirement Obligations
The
Company’s
asset
retirement
obligation,
or
ARO,
liabilities
primarily
consist
of
estimates
of
surface
land
reclamation
and
support
facilities
at
both
surface
and
underground
mines
in
accordance
with
applicable
reclamation laws and regulations in the U.S. and Australia
as defined by each mining permit.
NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS
(Continued)
Coronado Global Resources Inc. Form 10-K December 31,
The Company
estimates its ARO
liabilities for
final reclamation
and mine
closure based upon
detailed engineering
calculations of the amount
and timing of the future
cash spending for a
third party to perform
the required work.
Spending
estimates
are
escalated
for
inflation
and
then
discounted
at
the
credit-adjusted,
risk-free
rate.
The
Company records
an ARO asset
associated with
the discounted
liability for final
reclamation and
mine closure.
The obligation
and corresponding
asset are recognized
in the period
in which the
liability is incurred.
The ARO
asset
is
amortized
on
the
units-of-production
method
over
its
expected
life
of
the
related
asset
and
the
ARO
liability is accreted to the projected
spending date. As changes
in estimates occur (such as
mine plan revisions,
changes in
estimated costs
or changes
in timing
of the
performance of
reclamation activities),
the revisions
to
the
obligation
and
asset
are
recognized
at
the
appropriate
credit-adjusted,
risk-free
rate.
The
Company
also
recognizes
an
obligation
for
contemporaneous
reclamation
liabilities
incurred
as
a
result
of
surface
mining.
Contemporaneous reclamation consists primarily
of grading, topsoil replacement
and re-vegetation of backfilled
pit areas. To
settle the liability,
the obligation is paid,
and to the extent
there is a difference
between the liability
and
the
amount
of cash
paid,
a
gain
or
loss
upon
settlement
is
recorded.
The
Company
annually
reviews
its
estimated future cash flows for its asset retirement obligations.
(j)
Borrowing costs
Borrowing costs are
recognized as an
expense when they
are incurred, except
for interest charges
attributable
to major projects with substantial development and construction phases which are capitalized
as part of the cost
of the asset. There was
no
interest capitalized during the years ended December
31, 2024 and 2023.
(k)
Leases
From time to
time, the Company
enters into contractual
agreements to
lease property,
plant and equipment.
In
addition, the Company also enters into mining services contracts which may include embedded leases of mining
equipment. Based
upon the
Company’s assessment
of the
terms of
a specific
lease agreement,
the Company
classifies a lease as either finance or operating.
Finance leases
Right of Use, or ROU, assets
related to finance leases are presented
in “Property,
plant and equipment, net” on
the Consolidated Balance
Sheets. Lease
liabilities related
to finance leases
are presented in
“Lease Liabilities”
(current) and “Lease Liabilities” (non-current) on the Consolidated
Balance Sheets.
Finance lease ROU assets and lease liabilities are recognized at the commencement date based on the present
value of the
future lease payments
over the lease
term. The
discount rate used
to determine
the present
value
of the
lease
payments
is the
rate
implicit in
the
lease unless
that
rate cannot
be readily
determined,
in which
case, the
Company utilizes
its incremental
borrowing
rate in
determining the
present value
of the
future lease
payments. The incremental borrowing
rate is the rate
of interest that the
Company would have to
pay to borrow
on
a
collateralized
basis
over
a
similar
term
an
amount
equal
to
the
lease
payments
in
a
similar
economic
environment.
Operating leases
ROU assets
related to
operating leases
are presented
as “Right
of Use
assets -
operating leases,
net” on
the
Consolidated
Balance
Sheets.
Lease
liabilities
related
to
operating
leases
that
are
subject
to
the
ASC
measurement requirements such as operating
leases with lease terms
greater than twelve months are
presented
in “Lease Liabilities” (current) and “Lease Liabilities” (non-current)
on Consolidated Balance Sheets.
Operating lease
ROU assets and
lease liabilities
are recognized at
the commencement date
based on
the present
value of the
future lease payments
over the lease
term. The
discount rate used
to determine
the present
value
of the
lease
payments
is the
rate
implicit in
the
lease unless
that
rate cannot
be readily
determined,
in which
case, the
Company utilizes
its incremental
borrowing
rate in
determining the
present value
of the
future lease
payments. The incremental borrowing
rate is the rate
of interest that the
Company would have to
pay to borrow
on
a
collateralized
basis
over
a
similar
term
an
amount
equal
to
the
lease
payments
in
a
similar
economic
environment. Operating
lease ROU
assets may
also include
any cumulative
prepaid or
accrued rent
when the
lease payments
are uneven
throughout the
lease term.
The ROU
assets and
lease liabilities
may also
include
options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option.
The ROU
asset includes
any lease
payments made
and lease
incentives received
prior to
the commencement
date.
The
Company
has
lease
arrangements
with
lease
and
non-lease
components
which
are
accounted
for
separately.
Non-lease
components
of
the
lease
payments
are
expensed
as
incurred
and
are
not
included
in
determining the present value.
NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS
(Continued)
Coronado Global Resources Inc. Form 10-K December 31,
(l)
Royalties
Lease rights
to coal
lands are
often acquired
in exchange
for royalty
payments. For
our Australian
Operations,
royalties
are
payable
monthly
as
a
percentage
of
the
gross
realization
from
the
sale
of
the
coal
mined
using
surface mining methods
and underground methods.
At our U.S. Operations,
royalties are payable
monthly as a
percentage
of
the
gross
realization
for
coal
produced
using
underground
mining
methods.
Advance
mining
royalties are advance
payments made to
lessors under terms
of mineral lease
agreements that
are recoupable
against
future
production.
The
Company
had
advance
mining
royalties
of
$
9.8
million
and
$
8.9
million
respectively, included
in “Other current assets” as of December 31, 2024
and 2023.
(m) Stanwell Rebate
The Stanwell rebate relates to
a contractual arrangement entered into
by the Company and
Stanwell Corporation
Limited, a State
of Queensland
owned electricity
generator, which
requires payment
of a rebate
for export coal
sold from some of Curragh’s
mining tenements. The rebate obligation is
accounted for as an executory
contract
and the expense is recognized as incurred.
(n)
Revenue Recognition
The Company accounts for
a contract when it
has approval and commitment
from both parties, the
rights of the
parties are identified,
payment terms
are identified,
the contract has
commercial substance
and collectability
of
consideration is probable. Once a contract
is identified, the Company evaluates
whether the combined or single
contract should be accounted for as more than one performance
obligation.
The Company recognizes revenue when
control is transferred to the customer.
For the Company’s contracts,
in
order to determine
the point
in time when
control transfers
to customers, the
Company uses
standard shipping
terms to
determine
the timing
of transfer
of
legal title
and the
significant
risks
and rewards
of ownership.
The
Company also considers other
indicators including timing
of when the Company
has a present right
to payment
and
when
physical
possession
of
products
is
transferred
to
customers.
The
amount
of
revenue
recognized
includes any
adjustments for
variable consideration,
which is
included in
the transaction
price and
allocated to
each
performance
obligation
based
on
the
relative
standalone
selling
price.
The
variable
consideration
is
estimated through the course of the contract using management’s
best estimates.
The majority of
the Company’s revenue is derived
from short term
contracts where the
time between confirmation
of sales orders and collection of cash is not more than
a few months.
Taxes
assessed
by
a
governmental
authority
that
are
both
imposed
on
and
concurrent
with
a
specific
revenue-producing transaction that are collected by the
Company from a customer are excluded from revenue.
Performance obligations
A
performance
obligation
is
a
promise
in
a
contract
to
transfer
a
distinct
good
or
service
to
the
customer.
A
contract’s transaction price is allocated
to each distinct performance obligation
and recognized as revenue
when,
or as, the performance obligation is satisfied.
The Company’s contracts have
multiple performance obligations as the
promise to transfer the individual
unit of
coal
is
separately
identifiable
from
other
units
of
coal
promised
in
the
contracts
and,
therefore,
distinct.
Performance obligations, as described above, primarily relate to the Company’s
promise to deliver a designated
quantity and type of coal within the quality specifications
stated in the contract.
For
contracts
with
multiple
performance
obligations,
we
allocate
the
contract’s
transaction
price
to
each
performance obligation on a relative standalone selling price basis. The
standalone selling price is determined at
each contract inception using
an adjusted market assessment
approach. This approach focuses
on the amount
that the Company believes the market is willing to pay
for a good or service, considering market conditions, such
as benchmark pricing, competitor pricing, market awareness of the product and current market trends that affect
the pricing.
Warranties provided to customers are
assurance-type of warranties on
the fitness of
purpose and merchantability
of the Company’s goods. The Company does not
provide service-type of warranties to customers.
Revenue
is
recognized
at
a
point
in
time
and
therefore
there
were
no
unsatisfied
and/or
partially
satisfied
performance obligations at December 31, 2024 and 2023.
NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS
(Continued)
Coronado Global Resources Inc. Form 10-K December 31,
Shipping and Handling
For Free
on Rail
sales, the
Company accounts
for shipping
and handling
activities as
a separate
performance
obligation after
the customer
obtains control
of the
good. In
this instance,
shipping and
handling costs
paid to
third
party
carriers
and
invoiced
to
coal
customers
are
recorded
as
freight
expense
and
other
revenues,
respectively.
(o)
Commodity Price Risk
The Company has commodity price risk arising from fluctuations
in domestic and global coal prices.
The
Company’s
principal
philosophy
is
not
to
hedge
against
movements
in
coal
prices
unless
there
are
exceptional circumstances.
Any potential hedging of coal prices would be through fixed
price contracts.
The
Company
is
also
exposed
to
commodity
price
risk
related
to
diesel
fuel
purchases.
The
Company
may
periodically enter into arrangements that protect against
the volatility in fuel prices as follows:
•
enter into fixed price contracts to purchase fuel for the U.S. Operations
.
•
enter into derivative financial instruments to hedge exposures to fuel
price fluctuations.
There were
no
derivative contracts outstanding December 31, 2024 and
2023.
(p)
Income Taxes
The Company uses the asset
and liability approach to account
for income taxes as required by
ASC 740, Income
Taxes,
which requires
the
recognition
of deferred
income
tax assets
and
liabilities
for the
expected
future
tax
consequences
attributable
to differences
between
the
financial
statement
carrying
amounts
of
existing
assets
and liabilities and their respective tax bases.
Valuation allowances are provided
when necessary to
reduce deferred income
tax assets to
the amount expected
to be realized, on a more likely than not basis.
The Company recognizes the
benefit of an uncertain
tax position that it has
taken or expects
to take on income
tax
returns
it
files
if
such
tax
position
is
more
likely
than
not
to
be
sustained
on
examination
by
the
taxing
authorities, based on the technical
merits of the position. These tax
benefits are measured based on the
largest
benefit that has a greater than 50% likelihood of being realized
upon ultimate resolution.
The Company’s foreign
structure consists of
Australian entities which
are treated as
corporations subject to
tax
under Australian taxing authorities.
The Australian entities are
treated as a branch for
U.S. tax purposes and
all
income flows through the ultimate parent (the Company).
(q)
Fair Value Measurements
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
principal
or
most
relevant
market.
When
considering
market
participant
assumptions
in
fair
value
measurements,
the
Company
distinguishes
between
observable and unobservable inputs, which are categorized
in one of three levels of inputs.
Refer to Note 22.
“Fair Value
Measurement” for detailed information related to the
Company’s fair value policies
and disclosures.
(r)
Stock-based Compensation
The Company has
a stock-based compensation plan
which allows for
the grant of
certain equity-based incentives
including stock options,
performance stock units,
or PSU, and
restricted stock units,
or RSU, to
employees and
executive
directors,
valued
in
whole
or
in
part
with
reference
to
the
Company’s
CDIs
or
equivalent
common
shares (on a
:1 CDI to common share ratio).
NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS
(Continued)
Coronado Global Resources Inc. Form 10-K December 31,
The grant-date
fair value
of stock
option
award is
estimated on
the
date
of grant
using
Black-Scholes-Merton
option-pricing model. For
certain options and
PSUs, the Company includes
a relative Total
Stockholder Return,
or TSR, modifier to determine the number of shares
earned at the end of the performance period. The
fair value
of awards that include the TSR modifier is determined
using a Monte Carlo valuation model.
The expense for these equity-based incentives is based on their fair value at date of grant and is amortized over
the required service
period, generally the vesting
period. The Company accounts
for forfeitures as
and when they
occur.
Refer to
Note 20.
“Stock-Based Compensation”
for detailed
information related
to the
Company’s
stock-based
compensation plans.
(
s)
(Loss) earnings per Share
Basic earnings per share is computed by dividing net income attributable to stockholders of the Company by the
weighted-average number of shares of common stock
outstanding during the reporting period.
Diluted net income
per share is computed
using the weighted-average
number of shares
of common stock
and
dilutive
potential
shares
of
common
stock
outstanding
during
the
period.
Dilutive
potential
shares
of
common
stock primarily consist of employee stock options and
restricted stock.
(t)
Deferred Debt Issuance Costs
The Company capitalizes costs
incurred in connection with new
borrowings, the establishment or
enhancement
of credit
facilities
and the
issuance
of debt
securities.
These costs
are amortized
as an
adjustment to
interest
expense over the
life of the
borrowing or term
of the credit
facility using the
effective interest
method. Deferred
debt issuance costs related to a recognized liability
are presented in the balance sheet as a
direct reduction from
the carrying amount of that liability whereas debt issuance costs related to a credit facility are shown
as an asset
and amortized
over the
life of
the facility
on a
straight-line basis
and included
in “Interest
expense, net”
in the
Company’s Consolidated Statements of Operations
and Comprehensive Income.
For
information
on
the
unamortized
balance
of
deferred
debt
issuance
costs
related
to
outstanding
debt,
see
Note 14. “Interest Bearing Liabilities”.
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
U.S. 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) and
two
development properties (Mon Valley
and Russell County).
The
Company
operates
its
business
along
two
reportable
segments:
Australia
and
United
States.
The
organization
of
the
two
reportable
segments
reflects
how
Coronado’s
Chief
Executive
Officer
who
is
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 financial reporting and 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 Financial Statements.
NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS
(Continued)
Coronado Global Resources Inc. Form 10-K December 31,
Reportable segment results for the years ended December 31,
2024, 2023 and 2022 are presented below:
(US$ thousands)
Australia
United States
Other and
Corporate
Total
Year ended December 31,
Total
revenues
$
1,594,981
$
912,732
$
-
$
2,507,713
Less:
Mining costs
(1)
(1,054,066)
(629,242)
-
(1,683,308)
Other operating costs
(1)
(538,365)
(141,239)
-
(679,604)
Total
operating costs
(1,592,431)
(770,481)
-
(2,362,912)
Other and unallocated items
(2)
4,982
(35,494)
(29,661)
Segment adjusted EBITDA
3,401
147,233
(35,494)
115,140
Total
assets
1,213,903
1,048,117
255,732
2,517,752
Capital expenditures
89,343
156,401
4,127
249,871
Year ended December 31,
Total
revenues
$
1,681,522
$
1,209,081
$
-
$
2,890,603
Less:
Mining costs
(1)
(1,058,598)
(610,925)
-
(1,669,523)
Other operating costs
(1)
(621,356)
(182,866)
-
(804,222)
Total
operating costs
(1,679,954)
(793,791)
-
(2,473,745)
Other and unallocated items
(2)
5,803
(41,629)
(35,146)
Segment adjusted EBITDA
2,249
421,093
(41,629)
381,713
Total
assets
1,322,610
1,010,199
345,229
2,678,038
Capital expenditures
55,412
171,686
227,758
Year ended December 31,
Total
revenues
$
2,116,555
$
1,454,987
$
-
$
3,571,542
Less:
Mining costs
(1)
(864,616)
(531,812)
-
(1,396,428)
Other operating costs
(1)
(711,170)
(208,128)
-
(919,298)
Total
operating costs
(1,575,786)
(739,940)
-
(2,315,726)
Other and unallocated items
(2)
1,614
(42,245)
(40,192)
Segment adjusted EBITDA
541,208
716,661
(42,245)
1,215,624
Total
assets
1,353,424
1,013,359
183,144
2,549,927
Capital expenditures
89,001
95,769
185,357
(1)
The significant expense category and amount aligns
with the segment-level information that is regularly
provided to the CODM
.
(2)
Other and unallocated items for other and corporate includes
selling, general and administrative expenses.
NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS
(Continued)
Coronado Global Resources Inc. Form 10-K December 31,
The
reconciliation
of
net
income
attributable
to
the
Company
to
the
Adjusted
EBITDA
for
the
years
ended
December 31, 2024, 2023 and 2022 are as follows:
Year Ended December 31,
(US$ thousands)
Consolidated Adjusted EBITDA
$
115,140
$
381,713
$
1,215,624
Depreciation, depletion and amortization
(187,400)
(160,711)
(167,046)
Interest expense, net
(1)
(58,856)
(56,751)
(67,632)
Other foreign exchange gains
(2)
12,339
2,899
32,259
Loss on debt extinguishment
(14,732)
(1,385)
(5,336)
Uncertain stamp duty position
(3)
-
(41,321)
-
Impairment of non-core assets
(4)
(10,585)
-
-
Restructuring costs
(5)
(729)
-
-
Losses on idled assets
(6)
(4,574)
(4,846)
(771)
Decrease (increase) in provision for discounting
and credit losses
4,216
(3,821)
Net (loss) income before tax
$
(149,190)
$
123,814
$
1,003,277
Income tax benefit (expense)
40,309
32,251
(231,574)
Net (loss) income
$
(108,881)
$
156,065
$
771,703
(1)
Includes interest income of $
15.4
million, $
7.6
million, and $
1.5
million for the years ended December 31, 2024,
2023, 2022, respectively.
(2)
Refer to Note 4. “Other, net” for further discussion.
(3)
Relates to stamp duty on Curragh’s acquisition.
Refer to Note 25. “Contingencies” for further
discussion.
(4)
During the year ended December 31, 2024, the
Company recognized an impairment charge of
$
10.6
million against property, plant and equipment
relating to a long-standing non-core idled asset within the U.S. Operations.
This impairment charge was recognized based on a conditional
purchase
offer received and
accepted by
the Company and
is included in
“Other, net” on
the Consolidated
Statement of
Operations and
Comprehensive Income.
At December 31, 2024, satisfaction
of conditions precedent and
completion of the sale remained
uncertain and as such this
idled asset was classified
as held and used. On January 14, 2025, all
substantive conditions were satisfied, and
the sale of this long-standing non-core asset
was completed.
(5)
During the year ended December 31, 2024, a restructuring and cost transformation initiative commenced at the Australian Operations to focus on
repositioning the Company’s efforts to align its cost
structures and optimize its operations.
(6)
These losses relate to care and maintenance
costs of an idled non-core asset that was
sold on January 14, 2025.
The
reconciliations
of
capital
expenditures
per
the
Company’s
segment
information
to
capital
expenditures
disclosed on
the Consolidated
Statements of
Cash Flows
for the
years ended
December
31, 2024,
2023 and
2022 are as follows:
Year ended December 31,
(US$ thousands)
Capital expenditures per Consolidated Statement of
Cash Flows
$
248,142
$
237,205
$
199,716
Net movement in accruals for capital expenditures
12,497
(453)
3,768
Net movement in deposits to acquire long lead capital
(10,768)
(8,994)
(18,127)
Capital expenditures per segment detail
$
249,871
$
227,758
$
185,357
Disaggregation of Revenue
The Company disaggregates the revenue
from contracts with customers by
major product group for each of
the
Company’s
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.
NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS
(Continued)
Coronado Global Resources Inc. Form 10-K December 31,
Year ended December 31, 2024
(US$ thousands)
Australia
United States
Total
Product Groups:
Metallurgical coal
$
1,472,477
$
854,587
$
2,327,064
Thermal coal
87,798
30,000
117,798
Total
coal revenue
1,560,275
884,587
2,444,862
Other
(1)(2)
34,706
28,145
62,851
Total
$
1,594,981
$
912,732
$
2,507,713
Year ended December 31, 2023
(US$ thousands)
Australia
United States
Total
Product Groups:
Metallurgical coal
$
1,557,471
$
1,031,012
$
2,588,483
Thermal coal
88,281
153,925
242,206
Total
coal revenue
1,645,752
1,184,937
2,830,689
Other
(1)(2)
35,770
24,144
59,914
Total
$
1,681,522
$
1,209,081
$
2,890,603
Year ended December 31, 2022
(US$ thousands)
Australia
United States
Total
Product Groups:
Metallurgical coal
$
1,968,173
$
1,394,880
$
3,363,053
Thermal coal
110,345
54,228
164,573
Total
coal revenue
2,078,518
1,449,108
3,527,626
Other
(1)
38,037
5,879
43,916
Total
$
2,116,555
$
1,454,987
$
3,571,542
(1)
Included
in
Other
revenue
for
Australian
Operation
is
the
amortization
of
Stanwell
non-market coal
supply
agreement
liability
recognized on
acquisition of Curragh. See further discussion
in Note 16 “Contract Obligations”.
(2)
Other revenue
for the
U.S. segment
includes $
25.0
million, $
17.5
million and
nil
for the
years ended
December 31,
2024, 2023
and 2022,
respectively,
relating to termination fee revenue from
coal sales contracts cancelled at the U.S. Operations.
Further explanation to tables above:
The following is a description of the principal activities
by reportable segments.
•
The Company primarily offers two types of products to its
customers: metallurgical coal and thermal coal
of
varying
qualities.
The
Company’s
metallurgical
coal
is
classified
as
hard
coking
coal,
further
distinguished by its volatility (defined as high, mid, or low),
and pulverized coal injection.
•
The Australian Operations reportable segment
includes the Curragh mine. The
Australian Operations is
a separate
reportable segment
due to
having separate
management, location,
assets, and
operations.
Curragh
mine,
included
in
the
Australian
Operations,
is
located
in
central
Queensland,
Australia
and
produces a wide variety of metallurgical coal.
•
The United States
reportable segment
includes the Buchanan
and Logan coal
mine facilities located
in
Virginia and West Virginia
in the United States. It produces high, mid and low volatility hard
coking coal.
NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS
(Continued)
Coronado Global Resources Inc. Form 10-K December 31,
4.
Other, net
Other, net consists of the following:
Year ended December 31,
(US$ thousands)
Other foreign exchange gains
(1)
$
12,339
$
2,899
$
32,259
Impairment of non-core assets
(10,585)
-
-
Restructuring costs
(729)
-
-
Other income
2,709
2,865
1,536
Total
Other, net
$
3,734
$
5,764
$
33,795
(1)
Other foreign exchange gains
primarily relates to gains and
losses recognized on
the translation of short-term inter-entity
balances between certain
entities within the Group that are denominated
in currencies other than their respective
functional currencies.
5.
Capital Structure
(a)
Stockholders’ Equity
Authorized capital stock
The Company’s Certificate of Incorporation, as amended, authorize the Company to
issue
1,100,000,000
shares
of $
0.01
par value capital stock consisting of
1,000,000,000
shares of common stock and
100,000,000
shares of
preferred stock.
Common Stock / CDIs
The following table summarizes Common Stock activity
during the periods presented below:
Year Ended December 31,
Shares outstanding at the beginning of the year
167,645,373
167,645,373
167,645,373
Shares issued during the year
-
-
-
Share outstanding at end of the year
167,645,373
167,645,373
167,645,373
A portion of the
Company’s common
stock is publicly
traded on the ASX
under the ticker
“CRN,” in the
form of
CHESS Depositary Interests,
or CDIs. CDIs are units of beneficial ownership in shares of common stock held by
CHESS Depositary Nominees Pty Limited, or CDN,
a wholly-owned subsidiary of ASX Limited,
the company that
operates the ASX.
As each CDI represents one tenth of a share,
holders of CDIs will be entitled to
one
vote for every
CDIs they
hold. CDI
holders
are to
receive
entitlements
which attach
to underlying
shares
such as
participation
in rights
issues, bonus issues, capital reductions and liquidation preferences.
The CDIs entitle
holders to dividends,
if any, and other rights
economically equivalent to
shares of common
stock,
including the right
to attend stockholders’
meetings. CDN, as
the stockholder of
record, will vote
the underlying
shares in accordance with the directions of the CDI holders
.
As of December 31,
2024,
831,392,331
CDIs (representing beneficial
interest in
83,139,233
shares of common
stock) were owned by investors in the form of CDIs publicly
traded on the ASX.
Coronado Group LLC
As
of
December
31,
2024,
Coronado
Group
LLC,
the
Company’s
controlling
stockholder,
beneficially
owns
845,061,399
CDIs (representing a beneficial interest
in
84,506,140
shares of common stock) representing
50.4
%
of
the
total
1,676,453,730
CDIs
(representing
a
beneficial
interest
in
167,645,373
shares
of
common
stock)
outstanding.
Refer to Note 20 “Stock-Based Compensation” for
options to purchase common stock issued
and outstanding as
of December 31, 2024 and 2023.
NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS
(Continued)
Coronado Global Resources Inc. Form 10-K December 31,
Preferred Stock
Coronado Group
LLC holds
one share
of preferred
stock
Series A.
The holder
of Series
A Preferred
Stock
is
permitted
to
nominate
and
elect
members
of
the
Company’s
Board
of
Directors
in
relation
to
the
level
of
the
holder’s
aggregate
beneficial
ownership
of
shares
of
the
Company’s
common
stock.
The
Series
A
Preferred
Share
is
not
entitled
to
dividends
and
is
non-transferable.
The
Series
A
Preferred
Share
has
a
liquidation
preference of $
1.00
.
(b)
Dividends
The dividend
policy
and
the
payment
of future
cash
dividends
are subject
to
the
discretion
of the
Company’s
Board of Directors.
During the year ended December 31, 2024, the Company
declared:
•
Dividends of $
8.4
million, or $
0.005
per CDI ($
0.05
per share of common stock),
on February 19, 2024;
and
•
Dividends of $
8.4
million, or $
0.005
per CDI ($
0.05
per share of common stock), on August 5, 2024.
For
the
year
ended
December
31,
2024,
the
Company
paid
a
total
of
$
16.7
million
to
stockholders
and
CDI
holders on the ASX, net of
$
0.1
million foreign exchange gain on
payment to certain CDI holders
that elected to
be paid in Australian dollars,
in relation to the above declared dividends.
During the year ended December 31, 2023, the Company
declared:
•
Dividends of $
8.4
million, or $
0.005
per CDI ($
0.05
per share of common stock),
on February 21, 2023;
and
•
Dividends of $
8.4
million, or $
0.005
per CDI ($
0.05
per share of common stock), on August 7, 2023.
For
the
year
ended
December
31,
2023,
the
Company
paid
a
total
of
$
16.7
million
to
stockholders
and
CDI
holders on the ASX, net of
$
0.1
million foreign exchange gain on
payment to certain CDI holders
that elected to
be paid in Australian dollars,
in relation to the above declared dividends.
During the year ended December 31, 2022, the Company
declared:
•
Dividends of $
150.9
million, or $
0.09
per CDI ($
0.90
per share of common stock), on February 24, 2022;
•
Dividends of $
200.1
million, or $
0.119
per CDI ($
1.19
per share of common stock), on May 9, 2022;
•
Dividends of $
125.7
million, or $
0.075
per CDI ($
0.75
per share of
common stock),
on August 8,
2022;
and
•
Dividends of $
225.0
million, or $
0.134
per CDI ($
1.34
per share of common stock), on
October 30, 2022.
For
the year
ended December
31, 2022,
the
Company
paid a
total of
$
700.2
million
to stockholders
and CDI
holders on the ASX, net of
$
1.4
million foreign exchange gain on
payment to certain CDI holders
that elected to
be paid in Australian dollars,
in relation to the above declared dividends.
For dividends declared or paid after December 31, 2024,
refer to Note 27 “Subsequent Events”.
(c)
(Loss) 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. During periods in which the Company incurs
a net loss, diluted weighted average shares outstanding
are equal to basic weighted average shares outstanding
because the effect of all equity awards is anti-dilutive.
NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS
(Continued)
Coronado Global Resources Inc. Form 10-K December 31,
Basic and diluted earnings per share was calculated as
follows (in thousands, except per share data):
Year ended December 31,
(US$ thousands, except per share data)
Numerator:
Net (loss) income attributable to Company stockholders
$
(108,881)
$
156,065
$
771,703
Denominator (in thousands):
Weighted-average shares of common stock outstanding
167,645
167,645
167,645
Effects of dilutive shares
-
Weighted average diluted shares of common stock
outstanding
167,645
168,066
167,846
(Loss) Earnings Per Share (US$):
Basic
(0.65)
0.93
4.60
Dilutive
(0.65)
0.93
4.60
6. Trade Receivables, net
The Company
extends trade
credit to
its customers
in the
ordinary course
of business.
Trade
receivables are
recorded initially at fair value and subsequently at amortized
cost, less any ECL.
December 31,
(US$ thousands)
Trade receivables
$
209,289
$
264,218
Provision for discounting and credit losses (Note 7)
(179)
(267)
Trade receivables, net
$
209,110
$
263,951
7. Provision for Discounting and Credit Losses
The following
table provides
the reconciliation
of the
allowance for
credit losses
that is
deducted from
financial
assets to present the net amount expected to be collected:
(US$ thousands)
Trade
receivables
Other
Assets
Total
As at January 1, 2023
$
4,511
$
$
5,077
Change in estimates during the period
(4,244)
(4,216)
As of December 31, 2023
Change in estimates during the period
(88)
(119)
(207)
As of December 31, 2024
$
$
$
8. Inventories
December 31,
(US$ thousands)
Raw coal
$
60,874
$
55,998
Saleable coal
32,633
81,314
Total
coal inventories
93,507
137,312
Supplies inventory
62,236
54,967
Total
inventories
$
155,743
$
192,279
Coal inventories measured at its net realizable value were
$
3.3
million and $
2.4
million at December 31, 2024
and 2023, respectively,
and primarily relates to coal designated for deliveries under
the Stanwell below market
coal supply agreement, or CSA. See further discussion
in Note 16. “Contract Obligations”.
NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS
(Continued)
Coronado Global Resources Inc. Form 10-K December 31,
9.
Other Assets
December 31,
(US$ thousands)
Other current assets:
Prepayments
$
40,465
$
34,175
Long service leave receivable
7,193
8,438
Tax
credits receivable
4,004
3,265
Deposits to acquire mining equipment
37,888
18,935
Short-term deposits
-
21,906
Other
20,725
16,890
Total
other current assets
$
110,275
$
103,609
Other non-current assets:
Favorable mineral leases
$
3,285
$
3,310
Deferred debt issue costs
1,527
2,672
Long service leave receivable
1,530
1,485
Tax
credits receivable
-
4,004
Deposits to acquire long lead mining equipment
-
8,185
Total
other non-current assets
$
6,342
$
19,656
The Company
has other assets
which includes prepayments,
favorable mineral leases,
deferred debt issue
costs,
long service leave receivable
,
equipment deposits, short
term deposits and coalfield
employment enhancement
tax credit receivable.
Long service leave for
eligible coal mine workers
at the Company’s
Australian Operations is
paid when leave is
taken, with a subsequent
reimbursement received from
the Coal Mining Industry
(Long Service Leave Funding)
Corporation
in
Queensland,
Australia.
The
reimbursement
entitlement
is
recognized
as
a
receivable
and
is
measured as
the present
value of
expected future
reimbursements to
be received
for the
corresponding leave
liability recognized.
The Company
recognized tax
credits receivable
relating to
the Virginia
coalfield employment
enhancement tax
credit for
coal sales
from the
Company’s
mining properties
in the
State of
West
Virginia in
the U.S.
during the
to
income
years.
Where
the
credits
exceed
the
Company’s
state
tax
liability
for
the
tax
year,
the
excess is redeemable by the
Tax
Commissioner on behalf of
the Commonwealth of Virginia
for
% of the face
value
within
days
after
filing
the
return.
The
tax
credits
allowed
can
be
claimed
in
the
third
taxable
year
following the taxable year in which the credit was earned and
allowed.
Deposits to acquire mining equipment
are advance payments made for
the purchase of future mining
equipment,
some of which relate to mining equipment expected to
be delivered beyond the next twelve months.
Short-term deposits were term deposits held with financial institutions with maturity greater than ninety days and
less than twelve months and that did not meet the cash and
cash equivalents criteria.
The favorable mineral leases were recognized on acquisition of certain U.S. assets
that are amortized based on
the
coal
tonnage
removed
from
the
lease
property
relative
to
the
total
estimated
acquired
reserves
on
that
property.
The deferred debt issue costs as of December 31, 2024 and
December 31, 2023, are unamortized costs relating
to the
establishment of
the senior
secured asset-based
revolving credit facilities
(refer to
Note 14
“Interest Bearing
Liabilities” for further
description of these
facilities). The deferred
debt issue costs
are amortized over
the life of
the
facility
on
a
straight-line
basis
and
included
in
“Interest
expense,
net”
in
the
Company’s
Consolidated
Statements of Operations and Comprehensive Income
.
NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS
(Continued)
Coronado Global Resources Inc. Form 10-K December 31,
10.
Property, Plant and
Equipment
The following
table indicates
the carrying
amount of
each of
the major
classes of
the Company’s
consolidated
depreciable assets:
December 31,
(US$ thousands)
Land
$
28,130
$
28,282
Buildings and improvements
123,662
102,642
Plant, machinery, mining
equipment and transportation vehicles
1,259,620
1,189,088
Mineral rights and reserves
379,065
389,868
Office and computer equipment
9,654
9,771
Mine development
550,110
579,717
Asset retirement obligation asset
90,318
88,384
Construction in progress
190,124
143,041
Total
cost of property,
plant and equipment
2,630,683
2,530,793
Less accumulated depreciation, depletion and amortization
1,123,553
1,024,356
Property, plant and
equipment, net
$
1,507,130
$
1,506,437
The amount of depreciation and amortization expense
for property, plant
and equipment for the years ended
December 31, 2024, 2023 and 2022 was $
175.4
million, $
152.4
million and $
155.8
million, respectively.
11.
Accrued Expenses and Other Current Liabilities
Accrued expenses and other current liabilities consist of the
following:
December 31,
(US$ thousands)
Wages and employee benefits
$
39,457
$
42,348
Taxes
other than income taxes
6,062
6,728
Accrued royalties
36,111
45,770
Accrued freight costs
33,071
47,549
Accrued mining fees
84,538
89,622
Acquisition related accruals
-
53,700
Other liabilities
7,559
26,988
Total
accrued expenses and other current liabilities
$
206,798
$
312,705
Acquisition related accruals
of $
53.7
million (A$
79.0
million) as at December
31, 2023, related to
the remaining
estimated stamp duty payable on the Curragh acquisition. On March 6, 2024, the Company paid the outstanding
assessed
stamp
duty
and
tax
interest
to
the
Queensland
Revenue
Office,
or
QRO.
Refer
to
Note
“Contingencies” for further details.
12. Leases
During the year ended December 31,
2024, the Company entered into a
number of agreements to lease
mining
equipment.
Based
on
the
Company’s
assessment
of
terms
within
these
agreements,
the
Company
classified
these leases as
operating leases. On
mobilization of th
ese leased mining
equipment, the Company
recognized
ROU assets and operating lease liabilities of $
44.2
million.
On April 1,
2024, the Company
extinguished
one
of its mining
services contracts for
mining and equipment
assets
used to provide mining
services. On extinguishment,
ROU assets of $
11.3
million and operating
lease liabilities
of $
12.1
million were derecognized.
On September 1, 2024,
the Company modified
one
of its mining equipment
lease contracts to
extend the lease
term. Upon modification,
the Company recognized
additional ROU assets
and operating lease
liabilities of $
6.4
million.
NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS
(Continued)
Coronado Global Resources Inc. Form 10-K December 31,
As of December
31, 2024,
there are additional
operating leases
of mining
equipment, which have
not yet been
mobilized, that
have
a present
value
of minimum
lease
payments of
$
9.9
million.
These operating
leases
are
expected to commence within the next
months with lease terms of not more than
five years
.
Information related to Company’s right-of use
assets and related lease liabilities are as follows:
Year ended December 31,
(US$ thousands)
Operating lease costs
$
28,619
$
17,013
Cash paid for operating lease liabilities
21,050
14,597
Finance lease costs:
Amortization of right of use assets
Interest on lease liabilities
Total
finance lease costs
$
$
December 31,
(US$ thousands)
Assets:
Operating leases
Right of use asset - operating leases, net
$
90,143
$
80,899
Finance leases
Property and equipment
-
Accumulated depreciation
-
(309)
Property and equipment, net
-
Current operating lease obligations
19,502
22,811
Non-current operating lease obligations
74,241
61,692
Total
Operating lease liabilities
93,743
84,503
Liabilities:
Current finance lease obligations
-
Total
Finance lease liabilities
-
Current lease obligations
19,502
22,879
Non-current lease obligations
74,241
61,692
Total
lease obligations
$
93,743
$
84,571
December 31,
Weighted Average Remaining
Lease Term (Years)
Weighted average remaining lease term - finance
leases
-
0.5
Weighted average remaining lease term - operating
leases
4.3
3.7
Weighted Average Discount
Rate
Weighted discount rate - finance lease
-
7.6%
Weighted discount rate - operating lease
9.3%
9.0%
NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS
(Continued)
Coronado Global Resources Inc. Form 10-K December 31,
The Company’s leases
have remaining lease
terms of
one year
to
four years
, some of which
include options to
extend the terms where
the Company deems
it is reasonably certain
the options will be
exercised. Maturities of
lease liabilities as at December 31, 2024, are as follows:
(US$ thousands)
Operating
Lease
Year ending
December 31,
$
26,980
26,801
25,842
23,292
10,001
Total
lease payments
112,916
Less imputed interest
(19,173)
Total
lease liability
$
93,743
13.
Asset Retirement Obligations
Reclamation of
areas disturbed
by mining
operations
must be
performed
by the
Company in
accordance
with
approved
reclamation
plans
and
in
compliance
with
state
and
federal
laws
in
the
states
of
West
Virginia
and
Virginia
in
the
United
States
and
Queensland
in
Australia.
For
areas
disturbed,
reclamation
is
performed
progressively,
however,
a
significant
amount
of
the
reclamation
will
take
place
in
the
future
when
operations
cease. There were
no
assets that were
legally restricted for
purposes of settling asset
retirement obligations as
of December 31,
2024 and 2023.
In addition, state
agencies monitor
compliance with the
mine plans, including
reclamation.
The Company records the fair value
of its asset retirement obligations using the present
value of projected future
cash flows, with
an equivalent amount
recorded in the
related long lived
asset or a
change to the
Consolidated
Statements of Operations
if the related
permit is closed.
An accretion cost,
representing the
increase over time
in the present value of
the liability, is recorded each period and the capitalized cost is
depreciated over the useful
life of the related asset. As reclamation work is performed or liabilities
otherwise settled, the recorded amount of
the liability is reduced.
Changes in
the asset
retirement obligations
for the
years ended
December 31,
2024 and
December 31,
were as follows:
(US$ thousands)
December 31,
December 31,
Total
asset retirement obligations at beginning of the year
$
163,929
$
138,490
ARO liability additions - new disturbances
1,997
9,923
Accretion
15,324
11,252
Reclamation performed in the year
(9,724)
(5,334)
Reclass of asset held for sale
-
11,115
Change in estimate recorded to operations
(3,523)
(3,151)
Change in estimate recorded to assets
5,937
Foreign currency translation adjustment
(9,142)
Total
asset retirement obligations at end of the year
164,798
163,929
Less current portion
(15,523)
(15,321)
Asset retirement obligation, excluding current portion
$
149,275
$
148,608
NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS
(Continued)
Coronado Global Resources Inc. Form 10-K December 31,
14. Interest Bearing Liabilities
The following is a summary of interest-bearing liabilities
at December 31, 2024:
(US$ thousands)
December 31,
December 31,
Weighted Average
Interest Rate at
December 31, 2024
Final
Maturity
10.75
0% Senior Secured Notes
$
-
$
242,326
12.14
%
(2)
9.25
0% Senior Secured Notes
400,000
-
9.99
%
(2)
ABL Facility
-
-
Loan - Curragh Housing Transaction
24,472
-
14.14
%
(2)
Discount and debt issuance costs
(1)
(12,165)
(6,983)
Total
interest bearing liabilities
412,307
235,343
Less: current portion
(1,363)
-
Non-current interest-bearing liabilities
$
410,944
$
235,343
(1)
Relates to discount and
debt issuance costs in
connection with the 2029
Notes, 2026 Notes and
Curragh Housing Transaction (as defined
below). Deferred debt
issuance costs incurred
in connection with
the establishment of
the ABL Facility
have been included
within "Other non-
current assets" in the Consolidated Balance Sheets.
(2)
Represent the
effective interest
rate. The
effective interest
is higher
than the
implied interest
rate as
it incorporates
the effect
of debt
issuance costs and discount, where applicable.
10.750% Senior Secured Notes due in 2026
On October 2,
2024, the Company
completed a refinancing
initiative (as explained
below) and redeemed
in full
all
of
the
outstanding
10.750
%
Senior
Secured
Notes
due
2026,
or
the
Notes,
of
$
242.3
million.
The
redemption price of the 2026 Notes
was $
252.1
million, equivalent to
104.03
% of the aggregate principal amount
thereof,
plus
accrued
and
unpaid
interest,
to,
but
excluding
the
repurchase
date.
In
connection
with
the
extinguishment of the 2026 Notes, the Company recognized
$
14.7
million loss on early extinguishment of debt.
9.250% Senior Secured Notes due in 2029
On
October
2,
2024,
the
Company,
entered
into
an
indenture,
among
Coronado
Finance
Pty
Ltd,
as
issuer,
Coronado
Global
Resources
Inc,
as
guarantor,
the
subsidiaries
of
Coronado
Global
Resources
Inc,
named
therein, as
additional
guarantors,
Wilmington
Trust,
National Association,
as trustee
and priority
lien collateral
trustee, or
the Indenture,
relating to
the issuance
by the
Issuer of
$
400.0
million aggregate
principal amount
of
9.250
% Senior Secured Notes due 2029, or the 2029 Notes.
The 2029 Notes were issued at par and bear interest at a rate of
9.250
% per annum. Interest on the 2029 Notes
is payable semi-annually in arrears on
April 1 and October 1 of each year,
commencing April 1, 2025. The 2029
Notes mature on October 1, 2029 and are senior secured
obligations of the Issuer.
The
Notes
are
guaranteed
on
a
senior
secured
basis
by
the
Company
and
certain
of
the
Company’s
subsidiaries that guarantee or
is a borrower
under the Company’s ABL
Facility (as defined below)
or certain other
debt and secured by (i) a
first-priority lien on substantially
all of the assets of
the Company and each
Guarantor
(other
than
accounts
receivable
and
certain
other
rights
to
payment,
inventory,
certain
investment
property,
certain general
intangibles and
commercial tort
claims, deposit
accounts, securities
accounts and other
related
assets, chattel paper,
letter of credit rights, certain
insurance proceeds, intercompany
indebtedness and certain
other assets related to the
foregoing and proceeds and
products of each of the
foregoing (collectively,
the “ABL
Priority Collateral”))
and (ii) a
second-priority lien
on the
ABL Priority
Collateral, which
is junior
to a
first-priority
lien for the
benefit of the
lenders and other
creditors under
the Company’s
asset-based revolving
credit facility,
dated as of May 8, 2023, in each case, subject to certain
exceptions and permitted liens.
The Company
used the
net proceeds
from the
2029 Notes
to redeem
all of
the Company’s
2026 Notes
and to
pay related fees and expenses in connection with the offering of the 2029 Notes and the redemption of the 2026
Notes, and the Company intends to use the remaining
net proceeds for general corporate purposes.
The terms
of the
2029 Notes
are governed
by the
Indenture. The
Indenture contains
customary covenants
for
high
yield
bonds,
including,
but
not
limited
to,
limitations
on
investments,
liens,
indebtedness,
asset
sales,
transactions with affiliates and restricted payments,
including payment of dividends on capital stock.
NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS
(Continued)
Coronado Global Resources Inc. Form 10-K December 31,
Upon the occurrence of a “Change of Control Triggering Event”, as defined in the Indenture as the occurrence of
Change of Control or Rating Decline, the Issuer is required to offer to repurchase the 2029 Notes at
% of the
aggregate principal
amount thereof,
plus accrued
and unpaid
interest, if
any,
to, but
excluding, the
repurchase
date. The Issuer also has the right
to redeem the 2029 Notes at
% of the aggregate principal amount thereof,
plus accrued
and unpaid
interest,
if any,
to, but
excluding,
the repurchase
date,
following the
occurrence
of a
Change of
Control Triggering Event, provided
that the Issuer
redeems at least
% of
the 2029 Notes
outstanding
prior to
such Change of
Control Triggering Event.
Upon the
occurrence of
certain changes in
tax law
(as described
in the
Indenture), the
Issuer may redeem
all of
the 2029 Notes
at a
redemption price equal
to
% of
the principal
amount
of
the
Notes
to
be
redeemed
plus
accrued
and
unpaid
interest,
if
any,
to,
but
excluding,
the
redemption date.
The Issuer may redeem any of the 2029 Notes beginning on October 1, 2026. The initial redemption price
of the
2029 Notes is
104.625
% of their principal amount, plus accrued and unpaid
interest, if any,
to, but excluding the
redemption
date.
The
redemption
price
will
decline
each
year
after October
1,
2026, and
will
be
% of
the
principal amount of the 2029 Notes, plus accrued and unpaid interest, beginning on October 1, 2028. The Issuer
may also redeem
up to
% of the
aggregate principal amount
the 2029 Notes
on one or more
occasions prior
to October 1, 2026
at a price
equal to
109.250
% of the
principal amount thereof
plus a “make-whole”
premium,
plus accrued and unpaid interest, if any,
to, but excluding, the redemption date.
At any time and from
time to time on
or prior to October
1, 2026, the Issuer
may redeem in the
aggregate up to
% of the original aggregate
principal amount of the
2029 Notes (calculated after
giving effect to any
issuance
of
additional
Notes)
with
the
net
cash
proceeds
of
certain
equity
offerings,
at
a
redemption
price
of
109.250
%, plus
accrued and
unpaid interest,
if any,
to, but
excluding, the
redemption date,
so long
as at
least
%
of
the
aggregate
principal
amount
of
the
Notes
(calculated
after
giving
effect
to
any
issuance
of
additional 2029
Notes)
issued under
the Indenture
remains outstanding
after each
such redemption
and each
such redemption occurs within
days after the date of the closing of such equity
offering.
The
Indenture
contains
customary
events
of
default,
including
failure
to
make
required
payments,
failure
to
comply with certain agreements
or covenants, failure to
pay or acceleration of
certain other indebtedness, certain
events of
bankruptcy and
insolvency, and failure to
pay certain
judgments. An
event of
default under
the Indenture
will allow either the Trustee or the holders
of at least
% in aggregate principal amount of the then-outstanding
2029 Notes to
accelerate, or in
certain cases, will automatically
cause the acceleration
of, the amounts due
under
the 2029 Notes.
As of December 31, 2024, the
Company was in compliance with
all applicable covenants under the
2029 Notes
Indenture.
The
carrying
value
of
debt
issuance
costs,
recorded
as
a
direct
deduction
from
the
face
amount
of
the
Notes, were $
11.1
million as at December 31, 2024.
Asset Based Revolving Credit Facility
On May
8, 2023,
the Company,
Coronado Coal
Corporation, a Delaware
corporation and wholly
owned subsidiary
of the Company,
Coronado Finance Pty
Ltd, an Australian
proprietary company
and a wholly
owned subsidiary
of the Company,
or an Australian
Borrower, Coronado
Curragh Pty Ltd,
an Australian proprietary
company and
wholly
owned
subsidiary
of
the
Company,
or
an
Australian
Borrower
and,
together
with
the
other
Australian
Borrower, the Borrowers,
and the other guarantors party
thereto, collectively with the Company,
the Guarantors
and, together
with the
Borrowers, the
Loan Parties,
entered into
a senior
secured asset-based
revolving credit
agreement in an
initial aggregate amount
of $
150.0
million, or the
ABL Facility, with Global Loan
Agency Services
Australia Pty Ltd, as the Administrative Agent, Global
Loan Agency Services Australia Nominees Pty Ltd,
as the
Collateral Agent, the Hongkong and Shanghai Banking Corporation Limited, Sydney Branch, as the Lender, and
DBS Bank Limited,
Australia Branch, as
the Lender and,
together with the
other Lender,
the Lenders. The
ABL
Facility became effective on August 3, 2024, when
conditions precedent were satisfied.
The ABL Facility matures in August 2026 and provides for up to $
150.0
million in borrowings, including a $
100.0
million
sublimit
for
the
issuance
of
letters
of
credit
and
$
70.0
million
sublimit
as
a
revolving
credit
facility.
Availability
under
the
ABL
Facility
is
limited
to
an
eligible
borrowing
base,
determined
by
applying
customary
advance rates to eligible accounts receivable and inventory.
Borrowings under
the ABL
Facility bear
interest at
a rate
per annum
equal to
an applicable
rate of
2.80
% plus
Bank Bill
Swap Bid
Rate
for
loans denominated
in A$,
or
the Secured
Overnight
Finance
Rate,
or
SOFR,
for
loans denominated in US$, at the Borrower’s election.
NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS
(Continued)
Coronado Global Resources Inc. Form 10-K December 31,
The
ABL
Facility
contains
customary
representations
and
warranties
and
affirmative
and
negative
covenants
including, among
others, a
covenant regarding
the maintenance
of leverage
ratio to
be less
than
3.00
times, a
covenant regarding maintenance of interest coverage ratio to be more than
3.00
times, covenants relating to the
payment of dividends, or purchase or redemption of, with respect to any Equity Interests of Holdings or
any of its
Subsidiaries,
covenants
relating
to
financial
reporting,
covenants
relating
to
the
incurrence
of
liens
or
encumbrances, covenants relating to the incurrence or prepayment of certain debt, compliance with laws, use of
proceeds, maintenance of properties, maintenance of insurance, payment obligations, financial accommodation,
mergers and
sales of all
or substantially all
of the Borrowers
and Guarantors’, collectively
the Loan Parties,
assets
and limitations on changes in the nature of the Loan Parties’
business.
As
of
December
31,
2024,
the
letter
of
credit
sublimit
had
been
partially
used
to
issue
$
21.4
million
of
bank
guarantees on
behalf of
the Company
and
no
amounts were
drawn under
the revolving
credit sublimit
of ABL
Facility.
On
December
30,
2024,
the
Company
completed
an
agreement,
or
the
Waiver
Agreement,
with
the
Administrative
Agent
under
the
ABL
Facility
to
temporarily
waive
compliance
with
the
ABL
Facility’s
interest
coverage
ratio
covenant
between
December
31,
to
March
30,
2025,
or
the
waiver
period.
Pursuant
the
Waiver Agreement, the
Company will be
required to maintain
an aggregate cash
balance of at
least $
100.0
million
in one
or more
accounts
with the
Lenders,
or the
Cash
Balance
Covenant,
until
such
time that
the
Company
submit a
covenant compliance
certificate
to the
Lenders
pursuant to
the ABL
Facility
which
demonstrates
the
Company is
in compliance
with the
interest coverage
ratio covenant.
The Cash
Balane Covenant
applies from
the time the Company submits
the covenant compliance certificate
for December 31, 2024,
which is anticipated
to be on or after February 19, 2025.
At the end
of the waiver
period, unless
further waivers
are obtained,
any breach
of covenants
would constitute
an event
of default
under the
terms of
the ABL
Facility and
the Lenders
shall declare
all amounts
owing under
the ABL
Facility
immediately
due and
payable,
terminate
such
Lenders’
commitments
under
the
ABL Facility,
require the
Borrowers to
cash collateralize
any letter
of credit
obligations and/or
exercise any
and all
remedies
and other rights under the ABL Facility.
As of December 31, 2024, except for the interest coverage ratio covenant, the Company was in compliance with
all other applicable covenants.
Under the terms of the
ABL Facility,
a Review Event (as defined
in the ABL Facility)
is triggered if, among other
matters, a “change of control” (as defined in the ABL Facility)
occurs.
Following the
occurrence of
a Review
Event, the
Borrowers must
promptly meet
and consult
in good
faith with
the Administrative Agent and the Lenders to agree a
strategy to address the relevant Review Event including but
not limited
to a
restructure of
the terms
of the
ABL Facility
to the
satisfaction of
the Lenders.
If at
the end
of a
period of
business days after the occurrence of
the Review Event, the Lenders are
not satisfied with the result
of their
discussion or
meeting with
the Borrowers
or do
not wish
to continue
to provide
their commitments,
the
Lenders may
declare all
amounts
owing under
the ABL
Facility
immediately due
and payable,
terminate such
Lenders’
commitments
under
the
ABL
Facility,
require
the
Borrowers
to
cash
collateralize
any
letter
of
credit
obligations and/or exercise any and all remedies and
other rights under the ABL Facility.
The carrying value of
debt issuance costs,
recorded as “Other
non-current assets” in
the Consolidated Balance
Sheet was $
1.5
million and $
2.7
million as of December 31, 2024 and December 31,
2023, respectively.
Loan - Curragh Housing Transaction
On
May
16,
2024,
the
Company
completed
an
agreement
for
accommodation
services
and
the
sale
and
leaseback
of
housing
and
accommodation
assets
with
a
regional
infrastructure
and
accommodation
service
provider, or collectively, the Curragh Housing
Transaction. Refer to Note
15 “Other Financial
Liabilities” for further
information.
In connection with the Curragh Housing Transaction, the
Company borrowed $
26.9
million (A$
40.4
million) from
the same
regional
infrastructure
and accommodation
service provider.
This amount
was recorded
as “Interest
Bearing
Liabilities”
in
the
Consolidated
Balance
Sheet.
The
amount
borrowed
is
payable
in
equal
monthly
installments
over
a
period
of
ten years
,
with
an
effective
interest
rate
of
14.14
%.
The
Curragh
Housing
Transaction loan is not subject to any
financial covenants.
The carrying value of the loan, net of issuance costs of $
1.1
million, was $
23.4
million as of December 31, 2024,
$
1.5
million of which is classified as a current liability.
NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS
(Continued)
Coronado Global Resources Inc. Form 10-K December 31,
15.
Other Financial Liabilities
The following is a summary of other financial liabilities:
(US$ thousands)
December 31,
December 31,
Collateralized financial liabilities payable to third-party financing
companies
$
4,898
$
8,302
Collateralized financial liabilities - Curragh Housing Transaction
20,959
-
Debt issuance costs
(988)
(170)
Total
Other financial liabilities
24,869
8,132
Less: current portion
5,988
2,825
Other non-current financial liabilities
$
18,881
$
5,307
Collateralized financial liabilities - Curragh Housing Transaction
The Curragh
Housing Transaction
did not
satisfy the
sale criteria
under Accounting
Standards Codification,
or
ASC, 606
-
Revenues from
Contracts with
Customers
and was
deemed a
financing arrangement.
As a
result,
proceeds of $
23.0
million (A$
34.6
million) received for
the sale and leaseback
of property,
plant and equipment
owned by the
Company in connection
with the Curragh
Housing Transaction were recognized
as “Other Financial
Liabilities” on
the Company’s
Consolidated Balance
Sheet. The
term of
the financing
arrangement is
ten years
with an
effective
interest rate
of
14.14
%. This
liability will
be settled
in equal
monthly payments
as part
of the
accommodation services arrangement.
In line
with the
Company’s capital
management strategy,
the Curragh
Housing Transaction
provides additional
liquidity. In
addition, the accommodation services component
of the Curragh Housing Transaction
is anticipated
to enhance the level of accommodation services
for our employees at our Curragh Mine.
In
connection
with
the
Curragh
Housing
Transaction,
the
Company
granted
the
counterparty
mortgages
over
certain
leasehold
and
freehold
land.
The
counterparty’s
rights
are
subject
to
a
priority
deed
in
favor
of
the
Company’s
senior
secured
parties
including,
but
not
limited
to,
holders
of
the
Notes,
lenders
under
the
ABL
Facility and Stanwell.
The carrying value
of this financial
liability, net of issuance costs
of $
0.9
million, was $
20.0
million as at
December
31, 2024, $
1.2
million of which is classified as a current liability.
Collateralized financial liabilities payable to third-party financing
companies
On January 6,
2021, the Company
entered into
an agreement
with a third-party
financier to sell
and leaseback
items of
property,
plant and
equipment owned
by Coronado
Curragh Pty
Ltd, a
wholly-owned subsidiary
of the
Company.
The
transaction
did
not
satisfy
the
sale
criteria
under
ASC
-
Revenues
from
Contracts
with
Customers. As a
result, the transaction
was deemed a
financing arrangement and
the Company has
continued
to recognize
the underlying
property,
plant and
equipment
on the
Consolidated
Balance Sheet.
The proceeds
received from the
transaction of $
23.5
million (A$
30.2
million) were recognized
as “Other financial
liabilities” on
the Consolidated
Balance Sheet.
The remaining
term of
the financing
arrangement is
one year
with an
implied
interest rate of
8.1
% per annum.
16. Contract Obligations
In
connection
with
the
acquisition
of
the
Logan
assets,
the
Company
assumed
certain
non-market
contracts
related to various
coal leases.
The non-market
coal leases
require royalty
payments based on
a percentage
of
the
realization
from
the
sale
of
the
respective
coal
under
lease.
On
acquisition,
the
Company
recorded
$
27.3
million related to the non-market
portion of the coal leases
and is amortizing it ratably
over the respective
estimated coal reserves as they are mined and sold.
In connection with
the acquisition of Curragh,
the Company assumed the
Stanwell below market CSA
with a fixed
pricing
component
that
was
below the
market
price
at
the
date
of
acquisition.
As
a result,
on
acquisition,
the
Company recorded a liability of $
307.0
million (A$
400.0
million) related to the unfavorable pricing of the Stanwell
below market CSA
and is amortizing
it ratably based
on the tons sold
through the contract.
The amortization of
this liability for the years ended December
31, 2024, 2023 and 2022 were $
31.1
million, $
32.8
million and $
36.2
million,
respectively,
and
recorded
as
“Other
revenues”
in
the
Consolidated
Statements
of
Operations
and
Comprehensive Income.
NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS
(Continued)
Coronado Global Resources Inc. Form 10-K December 31,
The following is a summary of the contract obligations
as of December 31, 2024:
(US$ thousands)
Short-term
Long-term
Total
Coal leases contract liability
$
$
19,156
$
19,999
Stanwell below market coal supply agreement
36,247
8,616
44,863
$
37,090
$
27,772
$
64,862
The following is a summary of the contract obligations
as of December 31, 2023:
(US$ thousands)
Short-term
Long-term
Total
Coal leases contract liability
$
$
19,476
$
20,319
Stanwell below market coal supply agreement
39,879
41,716
81,595
$
40,722
$
61,192
$
101,914
17.
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
“Mineral
rights
and
reserves”
asset
and
a
corresponding
deferred
consideration liability of $
155.2
million (A$
210.0
million), calculated using the contractual pre-tax discount rate of
% representing
fair
value
of
the
arrangement
at
the
date
of
acquisition.
The
deferred
consideration
liability
reflects passage of
time changes by
way of an annual
accretion at the
contractual pre-tax discount
rate of
%
and will
be settled
as a
discount to
the price
of thermal
coal supplied
to Stanwell
over the
term of
a New
Coal
Supply Agreement
which is
expected to
commence in
2027. The
accretion of
deferred consideration
liability is
recognized
within
“Interest
expense,
net”
in
the
Consolidated
Statements
of
Operations
and
Comprehensive
Income. The Right-to-mine-asset are amortized over the
coal reserves mined from the SRA.
December 31,
(US$ thousands)
Stanwell Reserved Area deferred consideration
$
285,050
$
277,442
$
285,050
$
277,442
18.
Workers’ Compensation and Pneumoconiosis (“Black
Lung”) Obligations
In
the
United
States,
coal
mine
operations
may
lead
to
traumatic
workers
compensation
claims,
as
well
as
workers’ compensation occupational disease claims
for black lung disease. Injured workers generally
file claims
for traumatic injury under
the governing state workers
compensation legislation. Workers
may file claims due
to
black
lung
under
the
governing
state
workers
compensation
legislation
or
under
a
series
of
federal
laws
that
include the Federal Coal Mine Health and Safety Act of 1969, as amended, the Black Lung Benefits Act of 1973,
and
the
Black
Lung
Benefits
Reform
Act
of
1977.
The
Company
provides
for
both
traumatic
workers
compensation claims and occupational disease claims
through an insurance policy.
The Company obtained workers
compensation insurance for work
related injuries, including black
lung, through
a third-party
commercial
insurance company.
The insurance
policy covers
claims
that exceed
$
0.5
million
per
occurrence for all years, or aggregate claims in excess
of $
29.1
million and $
22.7
million for policy years ending
May 2024 and May 2023, respectively.
Per the contractual agreements, the Company was required to provide
a
collateral
security
of
$
66.8
million
for
policy
years
through
2025,
ending
May 31,
2025,
which
is
accomplished through providing a combination of letters of credit and
cash collateral in an escrow account. As of
December 31, 2024, the Company
has provided $
16.8
million of letters of credit,
$
29.7
million of cash collateral
and surety bonds of $
20.3
million totaling $
66.8
million.
For the
years ended
December 31, 2024,
2023 and
2022, the
audited Consolidated
Statements of
Operations
and
Comprehensive
Income
included
Company
incurred
claims,
premium
expenses
and
administrative
fees
related
to
worker’s
compensation
benefits
of
$
8.9
million,
$
16.3
million
and
$
12.2
million,
respectively.
As
of
December 31, 2024 and 2023, the estimated workers’ compensation liability
was $
39.1
million and $
37.6
million,
respectively, representing claims incurred but not paid based on
the estimate of the
outstanding claims under the
coverage
limits
and
the
actuarially
determined
retained
liability
under
the
aggregate
claim
amount.
As
of
December
31,
and
2023,
$
34.4
million
and
$
32.6
million,
respectively,
are
recorded
within
“Other
non-
current liabilities” in the Consolidated Balance Sheets.
The current portion of the Company’s estimated
workers’
compensation liabilities are
recorded within “Accrued
expenses and other
current liabilities” in the
Consolidated
Balance Sheets.
NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS
(Continued)
Coronado Global Resources Inc. Form 10-K December 31,
19.
Employee Benefit Plans
The
Company
has
a
401(k)-defined
contribution
plan
in
which
all
U.S.
full
time
employees
are
eligible
to
participate
upon
their
date
of
hire.
Employees
generally
may
contribute
up
to
%
of
their
qualifying
compensation
subject
to
statutory
limitations.
The
Company
matches
up
to
%
up
to
the
first
%
of
the
participant’s annual compensation
for all employees except
for those employed at Buchanan.
For employees at
Buchanan,
the
Company
matches
up
to
%
of
the
first
%
of
the
participant’s
annual
compensation.
The
Company’s contributions immediately
vest. Total Company contributions for
the years
ended December
31, 2024,
2023 and 2022 amounted to $
5.9
million, $
5.5
million and $
3.9
million, respectively.
In the United States, the Company is self-insured for
employee health care claims up to the lesser of $
0.2
million
per
covered
person
or
an
aggregate
amount
depending
on
the
various
coverages
provided
to
employees
throughout the plan year
for all employees. The
Company has purchased coverage from
a commercial insurance
carrier to provide for any claims
in excess of these amounts. At
December 31, 2024 and 2023, the Company had
provided
accruals
of
$
2.7
million
and
$
2.3
million,
respectively,
for
claims
incurred
but
not
paid
based
on
management’s estimate
of the Company’s
self-insured liability.
For the years
ended December
31, 2024, 2023
and 2022, the Company incurred claims,
premium expenses and administrative fees
related to this plan totaling
$
40.2
million, $
35.0
million and $
29.8
million, respectively.
20.
Stock-Based Compensation
Total
stock-based
compensation
expense
was
$
2.1
million,
$
2.9
million
and
$
2.7
million
for
the
years
ended
December 31,
2024,
and
2022,
respectively,
and
was
included
as a
component
of
selling,
general,
and
administrative expenses in the Company’s Consolidated Statements of Operations and Comprehensive Income.
The stock-based compensation expense includes
compensation expense recognized in full
at the grant date for
employees that meet certain retirement eligibility criteria
per the 2018 Plan (as defined below).
As
of
December 31,
2024,
the
Company
had
$
4.3
million
of
total
unrecognized
compensation
cost
related
to
nonvested stock-based
compensation awards
granted under
the plans.
This cost
is expected to
be recognized
over
2.25
years,
with
a
weighted-average
period
of
1.32
years,
as
stock-based
compensation
expense.
This
expected cost does not include the impact of any future stock-based
compensation awards.
a) 2018 Equity Incentive Plan
In
connection
with
the
completion
of
the
Company’s
initial
public
offering
of
common
stock,
the
Company
implemented
the
Coronado
Global
Resources Inc.
Equity
Incentive
Plan,
or
the
Plan,
which
is
designed
to
align
compensation
for
certain
key
executives
with
the
performance
of
the
Company.
Since
its
approval, there have been no updates to the 2018 Plan
or issuance of a new plan.
The 2018
Plan provides
for the
grant of
awards
including stock
options, or
Options;
stock appreciation
rights;
restricted stock
units, or
RSUs; and
restricted stock,
valued in
whole or
in part
with reference
to shares
of the
Company’s CDIs or common stock, as well as performance-based awards, including performance stock
units, or
PSUs, denominated in CDIs or shares of
common stock. Each award is
entitled to receive one CDI with
ten
CDIs
representing one share of common stock.
The Company
measures the cost
of all stock-based
compensation, including
stock options,
at fair value
on the
grant date
and recognizes
such costs
within “Selling,
general and
administrative expense”
in the
Consolidated
Statements of
Operations and Comprehensive
Income. The
Company recognizes compensation
expense related
to Options, PSUs and RSUs
that cliff vest using
the straight-line method during
the requisite service period.
For
stock-based
awards
where
vesting
is
dependent
upon
achieving
certain
operating
performance
goals,
the
Company
estimates
the
likelihood
of
achieving
the
performance
goals
during
the
performance
period.
The
Company accounts
for forfeitures as and when they occur.
All awards require the grantee
to be employed by the
Company at the vesting date except
for grantees who meet
certain retirement criteria under the 2018 Plan.
NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS
(Continued)
Coronado Global Resources Inc. Form 10-K December 31,
The following awards were outstanding under the 2018
as of December 31, 2024:
Grant year
Vesting date
Performance period
PSUs
RSUs
31/03/2027
01/01/2024 - 31/12/2026
4,813,547
-
01/08/2025
not applicable
-
584,541
31/03/2026
01/01/2023 - 31/12/2025
4,259,508
-
31/03/2026
01/01/2022 - 31/12/2024
5,977,814
-
31/03/2025
01/01/2021 - 31/12/2023
2,736,265
-
The Options
and PSUs granted
that will
vest are
subject to the
achievement of goals
over the
performance period.
These goals are relative total shareholder return, or TSR, and scorecard performance metrics, or the Scorecard.
TSR is determined based on the Company’s percentile ranking of TSR over the performance period relative to a
predefined peer group of similar companies.
Performance metrics applicable to the Options and
PSUs granted as summarized below:
Grant year
Relative TSR
Scorecard
TSR
Safety
TSR
Cashflow
2024 and 2023
33.3%
33.3%
-
33.3%
2022 and 2021
33.3%
22.2%
22.2%
22.2%
Awards subject to
TSR vest based
on service
and market conditions.
The fair
value of
relative TSR was
estimated
on the grant date using a Monte Carlo simulation model.
Awards subject to Scorecard vest based on service and performance conditions. The fair value of the Scorecard
was
estimated
on
the
grant
date
fair
value
of
the
Company’s
common
stock
adjusted
for
dividends
foregone
during the performance period.
Stock Option Awards
The Company’s
2018 stock
option awards were
granted on the
date of the
IPO with an
exercise price
of $
2.84
per CDI (A$
4.00
per CDI) which was equal to the Company’s IPO
Price.
The Company’s Stock Option activity is summarized
below:
Stock Option Plan Activity
Opening at the beginning of the year
-
181,687
1,015,006
Forfeited
-
-
(833,319)
Vested
-
(181,687)
-
Outstanding at the end of the year
-
-
181,687
Exercisable at the end of the year
181,687
181,687
-
Weighted-average remaining contractual term (in
years)
-
-
0.25
The weighted
average grant
date fair
value of
all Option
Awards granted
was $
0.27
. The
exercise price
of the
option awards granted under 2018
plan is $
2.21
(A$
3.56
).
181,687
stock option awards remains exercisable until
they expire on October 23, 2028.
NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS
(Continued)
Coronado Global Resources Inc. Form 10-K December 31,
Performance Stock Unit Awards
Activity of the Company’s
PSUs that are ultimately
payable in the Company’s
CDIs or the equivalent
number of
shares of common stock granted under the 2018 Plan
is summarized below:
Performance Stock Units Plan Activity
Nonvested at the beginning of the year
17,992,453
14,858,921
8,501,869
Granted
5,498,291
4,872,122
7,471,100
Forfeited
(4,314,219)
(1,451,677)
(1,114,048)
Vested and settled
(1,389,391)
(286,913)
-
Nonvested and outstanding at the end of the year
17,787,134
17,992,453
14,858,921
Weighted-average grant date fair value (per CDI)
$
0.63
$
0.58
$
0.53
Weighted-average remaining term (in years)
1.36
1.82
2.54
The weighted average grant date fair value of all PSU
Awards granted in 2024 was $
0.67
(A$
1.02
).
The assumptions used to determine the PSUs fair value
on each grant date were as follow:
2024 Grant
2023 Grant
2022 Grant
2021 Grant
Time to maturity (in years) (i)
2.58
2.98
3.99
3.85
Dividend yield (ii)
1.2%
7.8%
16.3%
3.0%
Expected volatility (iii)
50.0%
60.0%
60.0%
60.0%
Risk-free interest rate (iv)
3.54%
2.98%
2.66%
0.35%
___________________
(i)
Time to maturity represents the period
that the Company’s stock-based
awards will vest. All awards cliff
vest at the end of the requisite service period.
(ii)
Dividend yield is the expected average yield of dividends
expected over the vesting period.
(iii)
The
volatility
was
estimated
using
comparable
public
company’s
volatility
and
the
Company’s
own
volatility for similar terms.
(iv)
Risk-free interest
rate is based
on an interpolated
Australian Government
Bond Rate
at the time
of the
grant for periods corresponding with the expected term
of the PSUs.
The above
inputs were
consistent to
determine the
fair value
of the
market and
performance conditions
of the
PSUs awards.
Restricted Stock Units
RSUs issued to certain employees are only subject
to service conditions and vest at various intervals
during the
service period.
The fair
value of
the award
was determined
using the
market price
of the
Company’s Common
Stock at the date of grant and compensation expense
is recorded over the requisite service period.
Activity of the Company’s
RSUs that are ultimately
payable in the Company’s
CDIs or the equivalent
number of
shares of common stock granted under the 2018 Plan
is summarized below:
Restricted Stock Units Plan Activity
Nonvested at the beginning of the year
734,893
1,144,034
-
Granted
584,541
144,506
1,144,034
Forfeited
(18,525)
(46,593)
-
Vested and settled
(716,368)
(507,054)
-
Nonvested and outstanding at end of the year
584,541
734,893
1,144,034
Weighted-average grant date fair value (per CDI)
$
0.87
$
1.26
$
1.22
Weighted-average remaining term (in years)
0.58
0.23
0.7
NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS
(Continued)
Coronado Global Resources Inc. Form 10-K December 31,
21.
Income Taxes
(Loss) income
from continuing
operations before
income taxes
for the
years presented
below consisted
of the
following:
December 31,
(US$ thousands)
U.S.
$
7,843
$
334,373
$
609,617
Non-U.S.
(157,033)
(210,559)
393,660
Total
$
(149,190)
$
123,814
$
1,003,277
Total
income tax (benefit) expense for the periods presented
below consisted of the following:
December 31,
(US$ thousands)
Current:
U.S. federal
$
(867)
$
(6,303)
$
90,933
Non-U.S.
(2,715)
75,270
State
(636)
(1,895)
25,347
Total
current
(783)
(10,913)
191,550
Deferred:
U.S. federal
(61,977)
28,943
Non-U.S.
23,706
(45,976)
35,425
State
(1,255)
(4,305)
4,193
Total
deferred
(39,526)
(21,338)
40,024
Total
income tax (benefit) expense
$
(40,309)
$
(32,251)
$
231,574
The following is a reconciliation of the expected statutory federal income tax (benefit) expense to the Company’s
income tax (benefit) expense for the periods presented below:
December 31,
(US$ thousands)
Current:
Expected income tax expense at U.S. federal statutory rate
$
(31,330)
$
26,001
$
210,690
Percentage depletion
(3,407)
(17,871)
(41,047)
FDII deduction
-
(7,796)
-
Permanent differences
(1,130)
2,176
(2,262)
Prior period tax return adjustments and amendments
(1,347)
(46,060)
Uncertain tax positions
(1,007)
21,243
-
U.S. and residual tax on foreign earnings
(32,007)
(11,146)
11,950
Australian branch impact on US taxes
29,924
(3,406)
30,099
State income taxes, net of federal benefit
(5)
4,608
21,548
Total
income tax (benefit) expense
$
(40,309)
$
(32,251)
$
231,574
Effective tax rate
27.0%
(
26.0
%)
23.1%
The
prior
period
tax
return
adjustment
and
amendments
relates
predominantly
to
a
Foreign
Derived
Intangible Income
(“FDII”) deduction
in the
U.S. which
the Company
has chosen
to deduct
after undertaking
a
study to confirm the Company’s eligibility.
Deferred income taxes
reflect the net
tax effects of
temporary differences between the
carrying amounts of
assets
and liabilities
for financial
reporting purposes
and the
amount used
for income
tax purposes
using the
enacted
tax rates and laws currently
in effect. Significant components
of the Company’s deferred
income tax assets and
liabilities as of December 31, 2024 and 2023 were as follows:
NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS
(Continued)
Coronado Global Resources Inc. Form 10-K December 31,
December 31,
(US$ thousands)
Deferred income tax assets:
Accruals and provisions
$
40,594
$
44,373
Contract obligations
90,849
108,672
Lease obligations
43,633
35,312
Asset retirement obligation
59,981
55,322
Goodwill
6,047
6,653
Tax
losses
115,695
59,964
Interest limitation carried forward
26,943
1,766
Other
31,228
19,574
Gross deferred income tax assets
414,970
331,636
Valuation allowance
(1)
(114,088)
(33,894)
Total
deferred income tax assets, net of valuation allowance
300,882
297,742
Deferred income tax liabilities:
Property, plant, equipment
and mine development, principally due to
differences in depreciation, depletion and asset
impairments
(277,424)
(297,915)
Warehouse stock
(12,209)
(12,824)
Right of use asset
(41,947)
(34,021)
U.S. liability on foreign deferred taxes
-
(19,075)
Other
(6,039)
(6,822)
Total
deferred income tax liabilities
(337,619)
(370,657)
Net deferred income tax liability
$
(36,737)
$
(72,915)
(1)
As of December 31, 2024,
the Company recorded a valuation allowance
of $
114.1
million (2023: $
33.9
million)
against deferred tax
assets consisting predominantly of
tax losses, land
and goodwill. A
valuation allowance must
be established for deferred
tax assets if it is “more
-likely-than-not” that they will
not be realized. The increase
in
the valuation allowance of $
80.1
million for the year was predominantly driven by a valuation allowance of $
79.5
million recognized during the
year against tax losses
of the Australian tax
consolidated group. Under
Australian
tax law,
tax losses
may be
carried forward
indefinitely and
utilized subject
to meeting
the tax
loss recoupment
rules, which broadly look at whether the Company has maintained the same
majority ownership and control, and
failing that, whether the Company has maintained a similar business.
At
December
31,
2024,
the
Australian
tax
consolidated
group
has
tax
losses
of
$
80.4
million
carried
forward
(2023: $
48.7
million) (tax
effected).
A company,
which is
not part
of the
Australian tax
consolidated group
had
tax losses carried forward of $
10.6
million at December 31, 2024 (2023: $
10.9
million) (tax effected) for which an
equal valuation has been recognized.
In August 2022,
the U.S. House
of Representatives
approved a $740
billion budget reconciliation
package that
includes a
new minimum tax
on certain large
corporations, an excise
tax on stock
buybacks, a significant
increase
in funding for
the Internal Revenue
Service, incentives
to promote climate
change mitigation
and clean energy,
and
provisions
to
promote
health
care
affordability.
The
Inflation
Reduction
Act
includes
a
book-minimum
tax
(AMT) similar to that originally
proposed in the House-approved
Build Back Better legislation
that would impose
a 15% minimum tax on
“adjusted financial statement income” of applicable corporations
over the “corporate AMT
foreign tax credit
for the taxable
year.”
Under the bill,
an applicable corporation’s
minimum tax would
be equal
to the amount by
which the tentative
minimum tax exceeds
the sum of the
corporation’s regular
tax for the year
and the corporation’s base erosion and anti-abuse tax liability under section 59A.
This provision was effective for
taxable years beginning after December 31, 2022 and
did not have any impact to the Company.
BEPS Pillar Two:
Australian legislation enacted for global and minimum
domestic taxes
In December 2024, the Australian Government enacted legislation that implemented key aspects of Pillar Two of
the OECD/G20 Two-Pillar Solution which includes a 15% global minimum tax for large multinational
enterprises.
This legislation did not have any impact on
the Company in the current year and will
be monitored going forward.
NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS
(Continued)
Coronado Global Resources Inc. Form 10-K December 31,
Unrecognized Tax
Benefits
The
Company
provides
for
uncertain
tax
positions,
and
the
related
interest
and
penalties,
based
upon
management’s assessment of whether a tax benefit is
more likely than not to be sustained upon examination by
tax authorities.
To the extent that the
anticipated tax outcome
of these uncertain
tax positions changes,
such changes in
estimate
will impact the income tax
provision in the period in which
such determination is made. The Company
recognizes
accrued interest and penalties related to uncertain tax
positions as a component of income tax expense.
The effect
of the total
amount of unrecognized
tax benefits,
if recognized, would
reduce our future
effective tax
rate.
December 31,
(US$ Thousands)
At beginning of the year
$
20,784
$
-
Additions based on tax positions related to current year
6,388
Additions for tax positions of prior years
2,342
14,396
Reductions for tax positions of prior year (including impacts
due to lapse
in statute)
(4,351)
-
At end of the year
18,897
20,784
The
return
to
provision
adjustments
for
reflect
a
reduction
due
to
results
from
the
study
conducted
by
specialists and
the fact
that the
benefit was
limited to
taxable income.
The Company
recorded interest
of $
0.5
million on uncertain tax positions for 2024. There were
no
amounts related to interest and penalties on uncertain
tax positions for 2023.
The Company is subject to taxation in
the United States and Australia. As of December 31, 2024,
tax years 2018
to 2023 are open to review
from taxation authorities in the United States. In
Australia, tax years 2020 to 2023 are
open to review and the Australian Taxation
Office is presently conducting a review
of these years.
22.
Fair Value Measurement
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
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
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 December
31, 2024
and 2023,
there were
no financial
instruments required
to be
measured at
fair value
on a recurring basis.
NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS
(Continued)
Coronado Global Resources Inc. Form 10-K December 31,
Other Financial Instruments
The following methods
and assumptions
are used to
estimate the fair
value of other
financial instruments
as of
December 31, 2024 and 2023:
•
Cash
and
cash
equivalents,
accounts
receivable,
short-term
deposits,
accounts
payable,
accrued
expenses,
lease
liabilities
and
other
current
financial
liabilities:
The
carrying
amounts
reported
in
the
Consolidated Balance Sheets approximate fair value due to the
short maturity of these instruments.
•
Restricted deposits,
lease liabilities,
interest bearing
liabilities and
other financial
liabilities: The
fair values
approximate the carrying amounts
reported in the Consolidated Balance Sheets.
•
Interest bearing liabilities: The
Company’s outstanding interest-bearing liabilities are carried at
amortized
cost. As of December 31,
2024, there were
no
amounts drawn under the
revolving credit sublimit of
the
ABL Facility.
The
estimated
fair value
of the
Notes
as
of December
31,
is
$
405.2
million
based
upon quoted market
prices in a
market that is
not considered
active (Level 2).
The estimated
fair value
of the Curragh Housing loan is $
27.9
million based upon unobservable inputs (Level 3).
23.
Accumulated Other Comprehensive Losses
The Company’s Accumulated
Other Comprehensive Losses
consists of foreign currency
translation adjustment
from subsidiaries not using the U.S. dollar as their functional currency.
(US$ thousands)
Foreign
currency
translation
adjustments
Balance at December 31, 2022
$
(91,423)
Net current-period other comprehensive income (loss):
Loss in other comprehensive income before reclassifications
(2,367)
Gain on long-term intra-entity foreign currency transactions
3,863
Total
net current-period other comprehensive loss
1,496
Balance at December 31, 2023
(89,927)
Net current-period other comprehensive income (loss):
Loss in other comprehensive income before reclassifications
(10,524)
Loss on long-term intra-entity foreign currency transactions
(37,109)
Total
net current-period other comprehensive losses
(47,633)
Balance at December 31, 2024
$
(137,560)
NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS
(Continued)
Coronado Global Resources Inc. Form 10-K December 31,
24. 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,
$
4,304
4,141
4,105
4,051
4,040
Thereafter
20,460
Total
$
41,101
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
December 31,
2024, purchase
commitments for
capital expenditures
were $
111.4
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
12 years
.
In the U.S., the Company typically
negotiates its rail and coal terminal
on an annual basis.
As of December 31,
2024, these Australian
and U.S. commitments
under take-or-pay
arrangements totaled
$
665.2
million, of which
$
90.9
million is obligated
within the next
year, $
184.4
million within 1-3
years, $
190.9
million 3-5 years
and $
199.0
million thereafter.
25. Contingencies
Surety bond, letters of credit and bank guarantees
In the
normal course
of business,
the Company
is a
party to
certain guarantees
and financial
instruments with
off-balance sheet risk, such as bank
guarantees, letters of credit and performance
or surety bonds.
No
liabilities
related to these arrangements are reflected in the Company’s Consolidated Balance Sheets.
Management does
not expect any material losses to result from these guarantees
or off-balance sheet financial instruments.
For
the U.S.
Operations,
in
order to
provide
the required
financial
assurance
for post
mining
reclamation,
the
Company generally uses
surety bonds. The
Company uses surety
bonds and bank
letters of credit
to collateralize
certain
other
obligations
including
contractual
obligations
under
workers’
compensation
insurances.
As
of
December
31,
2024,
the
Company
had
outstanding
surety
bonds
of
$
48.9
million
and
$
16.8
million
letters
of
credit issued from our letter of credit sublimit under the
ABL Facility.
For
the
Australian
Operations,
as
at
December
31,
2024,
the
Company
had
bank
guarantees
outstanding
of
$
23.9
million, including $
4.7
million issued from the ABL Facility, primarily in respect of certain rail and port take-
or-pay arrangements of the Company.
As at December 31, 2024, the Company, in aggregate, had total outstanding bank guarantees provided of $
40.7
million to
secure
obligations
and commitments,
including $
21.4
million issued
from
the
letter
of credit
sublimit
available under the ABL Facility.
Future regulatory changes relating to the above obligations could result in
increased obligations, additional costs
or additional collateral requirements.
Restricted deposits - cash collateral
As required by certain agreements, the Company had total cash collateral in
the form of deposits of $
68.5
million
and $
68.7
million
as of
December
31,
and
2023, respectively,
to
provide
back-to-back
support for
bank
NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS
(Continued)
Coronado Global Resources Inc. Form 10-K December 31,
guarantees not issued
under the ABL
Facility,
other performance obligations,
various other operating
agreements
and contractual obligations under workers compensation insurance. These deposits are restricted and classified
as “non-current” assets in the Consolidated Balance Sheets.
In accordance
with the
terms of
the ABL
Facility,
the Company
may be
required
to cash
collateralize
the ABL
Facility to the extent of outstanding letters
of credit after the expiration or termination
date, including an event of
default, of such letter of credit.
As of December 31, 2024,
no
such letter of credit had expired
or was terminated
and as such
no
cash collateral was required.
Stamp duty on Curragh acquisition
On September 27, 2022, the Company received from
the Queensland Revenue Office, or QRO,
an assessment
of the stamp duty
payable on its
acquisition of the Curragh
mine in March
2018. The QRO assessed
the stamp
duty on this acquisition at an amount of $
56.2
million (A$
82.2
million) plus unpaid tax interest. On November 23,
2022,
the
Company
filed
an
objection
to
the
assessment.
The
Company’s
objection
was
based
on
legal
and
valuation advice obtained, which supported an estimated stamp duty
payable of $
29.4
million (A$
43.0
million) on
the Curragh acquisition.
On January 9, 2024, the Company’s objection
to the assessed stamp duty was disallowed by the
QRO.
As per the Taxation
Administration Act (Queensland)
2001, the Company
can only appeal
or apply for a
review
of QRO’s
decision if
it has
paid the
total assessed
stamp duty
of $
56.2
million (A$
82.2
million) plus
unpaid tax
interest of $
14.5
million (A$
21.2
million). The Company had until March 11,
2024, to file an appeal.
On March 6, 2024,
the Company made an
additional payment, and
paid in full, the stamp
duty assessed by
the
QRO.
The Company disputes
the additional
amount assessed
of stamp duty
and, on March
11,
2024, filed its
appeal
with the Supreme
Court of Queensland.
The outcome of
the appeal remains
uncertain and as
such,
no
contingent
asset has been recognized at December 31, 2024.
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.
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.
26. Related
-
Party Transactions
Coronado Group LLC
Under
the
Coronado
Group LLC
agreement
(as
amended,
effective
October 23,
2018),
2,900
management
incentive units were designated and authorized for issuance
to certain members of management to motivate and
retain senior management.
The plan is designated
to allow key members
of management to share
in the profits
of the Company
after certain
returns are
achieved by
the equity
investors. The
incentive units
constitute “profit
interests” for the benefit of senior management in consideration
of services rendered and to be rendered.
Coronado Coal LLC and Coronado II
LLC merged to form Coronado Group
LLC in July 2015. Coronado IV
LLC
was
merged
into
Coronado
Group LLC,
the
Company’s
controlling
stockholder,
on
June 30,
2016.
Under
the
updated formation
agreement dated
June 30, 2016,
the
2,500
designated and authorized
units under the
initial
formation of
Coronado Group LLC
were replaced
by these
new units.
At December
31, 2024
and 2023,
2,900
management incentive units were outstanding.
The incentive units are comprised of three
tiers, which entitle the holders to receive
distributions from Coronado
Group LLC subordinate
to the
distributions to
be received
by Members.
As of
December 31, 2024
and 2023,
a
portion of the authorized
units have been allocated
to various members of the
Company’s management including
Mr. Garold Spindler,
our former CEO and current Executive Chair, who is also member of Coronado Group LLC.
Stockholder’s Agreement and Registration Rights
and Sell-Down Agreement
As
of
December
31,
2024,
Coronado
Group LLC
has
beneficial
ownership
in
the
aggregate
of
50.4
%
of
the
Company’s
Shares.
On
September 24,
2018,
Coronado
Group LLC
and
the
Company
entered
into
a
NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS
(Continued)
Coronado Global Resources Inc. Form 10-K December 31,
Stockholder’s Agreement
and a
Registration Rights
and Sell-Down
Agreement
which governs
the relationship
between Coronado Group LLC
and the Company
while the funds
manage by The
Energy & Minerals
Group, or
EMG
Group,
beneficially
owns
in
the
aggregate
at
least
%
of
our
outstanding
shares
of
common
stock
(including
shares
of
common
stock
underlying
CDIs),
including
certain
governance
matters
relating
to
the
Company.
Under
this
Agreement,
Coronado
Group LLC
has
the
ability
to
require
the
Company
to
register
its
shares under
the U.S.
Securities Exchange
Act of
1934 and
to provide
assistance
to Coronado
Group LLC
in
selling some or all of its shares (including in the form of CDIs).
The Stockholder’s Agreement provides for the following:
•
Consent rights: Coronado
Group LLC (or its
successors or permitted
assigns) will have
certain consent
rights, whereby pre-agreed actions
require approval by Coronado
Group LLC prior to these
actions being
undertaken;
•
Provision
of
information
to
Coronado
Group LLC:
There
will
be
ongoing
information
sharing
arrangements
relating
to
the
provision
of
financial
and
other
information
by
the
Company
and
its
subsidiaries to Coronado Group LLC group entities and cooperation and assistance between the parties
in connection with any financing (or refinancing) undertaken
by the Company;
•
Pro rata issuances: While Coronado Group LLC Group entities beneficially own in the
aggregate at least
% of
the outstanding
Shares, unless
Coronado
Group LLC
(or
its successors
or permitted
assigns)
agrees
otherwise,
issuances
of
equity
securities
must
have
been
offered
to
Coronado
Group LLC
in
respect of
its pro
rata shares
and any
equity securities
to be
allocated by
the Company
under a
share
incentive plan will be sourced by purchasing them in the market
rather than by issuing them; and
•
Board rights:
Certain rights
regarding the
board including
the right,
but not
the obligation,
to designate
the Directors
to be
included in the
membership of
any board committee,
except to the
extent that
such
membership would violate applicable securities
laws or stock exchange or stock market rules.
Relationship Deed
On September 24, 2018, the Company and Coronado Group LLC entered into a Relationship Deed under which
the Company provides
a number of indemnities
in favor of Coronado
Group LLC, including in
relation to certain
ASX initial public
offering, or
Australian IPO, -related
matters and also
certain guarantees
that have in
the past
been provided or
arranged by Coronado
Group LLC and
its affiliates
in support of
Company obligations.
Under
the
Relationship
Deed,
Coronado
Group LLC
also
agrees
to
indemnify
the
Company
in
relation
to
certain
Australian IPO-related matters and reimburse certain costs.
27.
Subsequent Events
Ordinary dividends
On
February
19,
2025,
the
Company’s
Board
of
Directors
declared
a
bi-annual
fully
franked
fixed
ordinary
dividend of $
8.4
million, or
0.5
cents per CDI. The
dividend will have a record
date of
March 12, 2025
, Australia
time,
and
be
payable
on
April 4, 2025
,
Australia
time.
CDIs
will
be
quoted
“ex”
dividend
on
March
11,
2025,
Australia time. The total ordinary dividend will be funded
from available cash.
Coronado Global Resources Inc. Form 10-K December 31,
REPORT OF INDEPENDENT REGISTERED PUBLIC
ACCOUNTING FIRM
To
the Shareholders and the Board of Directors of Coronado
Global Resources Inc.
Opinion on the Financial Statements
We
have
audited
the
accompanying
consolidated
balance
sheets
of
Coronado
Global
Resources
Inc.
(the
Company)
as
of
December
31,
and
2023,
the
related
consolidated
statements
of
operations
and
comprehensive
income,
stockholders’
equity
and
cash
flows
for
each
of
the
three
years
in
the
period
ended
December 31, 2024, and the related notes (collectively referred to as the “consolidated financial statements”). In
our opinion, the consolidated financial
statements present fairly,
in all material respects, the
financial position of
the Company at December 31, 2024 and
2023, and the results of its
operations and its cash flows for
each of the
three
years
in
the
period
ended
December
31,
2024,
in
conformity
with
U.S.
generally
accepted
accounting
principles.
We
also
have
audited,
in
accordance
with
the
standards
of the
Public
Company
Accounting
Oversight
Board
(United States)
(PCAOB), the
Company's internal control
over financial
reporting as
of December
31, 2024,
based
on
criteria
established
in
Internal
Control-Integrated
Framework
issued
by
the
Committee
of
Sponsoring
Organizations of the
Treadway Commission (2013 framework)
and our
report dated
February 19,
2025 expressed
an unqualified opinion thereon.
Basis for Opinion
These financial statements are the responsibility of the Company's
management. Our responsibility is to express
an opinion
on the
Company’s financial statements
based on
our audits.
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
Securities and Exchange Commission and
the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan
and perform the audit to
obtain reasonable assurance about whether the financial
statements are free of material
misstatement, whether
due to
error or
fraud. Our
audits included
performing procedures
to assess
the risks
of
material misstatement of the financial statements, whether due to error or fraud, and performing procedures that
respond to
those risks.
Such procedures
included examining,
on a
test basis,
evidence regarding
the amounts
and disclosures
in the
financial statements.
Our audits
also included
evaluating the
accounting principles
used
and significant
estimates made
by management,
as well
as evaluating
the overall
presentation
of the
financial
statements. We believe that our audits provide a reasonable
basis for our opinion.
Critical Audit Matter
The critical
audit
matter communicated
below is
a matter
arising
from
the current
period
audit
of the
financial
statements that was communicated
or required to be communicated
to the audit committee and that:
(1) relates
to accounts
or disclosures that
are material
to the
financial statements and
(2) involved our
especially challenging,
subjective, or
complex judgments.
The communication
of the critical
audit matter
does not alter
in any way
our
opinion on the consolidated financial
statements, taken as a whole,
and we are not, by
communicating the critical
audit matter below,
providing a separate opinion
on the critical audit matter
or on the accounts or
disclosures to
which it relates.
Coronado Global Resources Inc. Form 10-K December 31,
Accounting for income taxes
Description
of
the
matter
As disclosed in Note
21 to the consolidated
financial statements, the
Company recognized
total deferred
tax assets
of $415.0
million at
December 31,
2024, which
includes deferred
tax
assets
of
$115.7
million
related
to
tax
losses
carried
forward
from
prior
periods.
The
Company
recorded
a
valuation
allowance
of
$114.1
million
against
an
equal
amount
of
deferred tax assets at December 31, 2024.
Auditing management’s analysis of the realizability of deferred tax assets and the treatment
of tax
losses
in
the
overall
income
tax
calculation,
involved
complex
auditor
judgment,
in
order
to
assess
management’s
application
of
complex
tax
laws
to
the
Company’s
tax
structure and the resulting tax calculations.
How
we
addressed
the
matter in our audit
We obtained an understanding, evaluated the
design and tested the operating
effectiveness
of controls over
the Company’s
process to assess
income and deferred
taxes at year
end,
including the determination of whether valuation allowances
were required.
Our
audit
procedures,
which
involved
tax
professionals
with
knowledge
of
relevant
jurisdictional
tax
laws
and
regulations,
included,
among
other
procedures,
obtaining
an
understanding
of
the
Company’s
overall
tax
structure
and
evaluating
management’s
application
of
the
relevant
tax
laws,
on
a
taxpayer-by-taxpayer
basis
and
assessing
the
relevance,
completeness
and
accuracy
of
the
data
utilized
in
the
income
tax
calculations
and
testing
the
calculations
themselves.
Our
procedures
also
included
assessing
the
positive
and
negative
evidence
available
to
determine
the
realizability
of the
deferred
tax
assets,
for
example,
by
reference
to
expected
amounts
of
future
taxable
income
or
the
reversal of temporary differences.
/s/
Ernst & Young
We have served as the Company’s auditor
since 2020.
Brisbane, Australia
February 19, 2025
Coronado Global Resources Inc. Form 10-K December 31,
ITEM 9.
CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL
DISCLOSURE.
None.
Coronado Global Resources Inc. Form 10-K December 31,
ITEM 9A.
CONTROLS AND PROCEDURES
Disclosure Controls and Procedures
We are
subject to
the periodic
reporting requirements
of the
Exchange Act.
We have
designed our
disclosure
controls and procedures
to provide reasonable
assurance that information we
disclose in reports
we file or
submit
under the Exchange
Act is recorded,
processed, summarized,
and reported within
the time periods
specified in
the
rules
and
forms
of
the
SEC.
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
is
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 Interim Principal 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) 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.
Changes to Internal Control over Financial Reporting
There have been
no changes in
our internal control
over financial reporting
or in
other factors that
occurred during
our
last
fiscal
quarter
that
have
materially
affected,
or
are
reasonably
likely
to
materially
affect,
our
internal
controls over financial reporting.
Management’s Report on Internal Control
Over Financial Reporting
Our management
is responsible
for establishing and
maintaining adequate internal
control over
financial reporting
as
defined
in
Rules
13a-15(f)
under
the
Exchange
Act.
Internal
control
over
financial
reporting
is
a
process
designed to
provide reasonable
assurance regarding
the reliability
of financial
reporting and
the preparation
of
the Company’s
consolidated financial
statements for
external purposes
in accordance
with generally
accepted
accounting principles.
Internal control over financial reporting includes those
policies and procedures that (i) pertain
to the maintenance
of records that,
in reasonable detail,
accurately and fairly
reflect the transactions
and dispositions of
the assets
of the
Company;
(ii) provide
reasonable
assurance
that
transactions
are recorded
as
necessary
to permit
the
preparation of the
consolidated financial statements in
accordance with generally
accepted accounting principles,
and
that
receipts
and
expenditures
of
the
Company
are
being
made
only
in
accordance
with
appropriate
authorizations of management
and directors of
the Company;
and (iii) provide
reasonable assurance
regarding
prevention or timely detection of unauthorized acquisition, use or disposition of the Company’s
assets that could
have a material effect on the consolidated financial
statements.
Because
of
its
inherent
limitations,
internal
control
over
financial
reporting
may
not
prevent
or
detect
misstatements. Also,
projections of
any evaluation
of effectiveness
to future
periods are
subject to
the risk
that
controls may
become inadequate
because of
changes in
conditions, or
that the
degree of
compliance with
the
policies or procedures may deteriorate.
Management
conducted
an
assessment
of
the
Company’s
internal
control
over
financial
reporting
as
of
December 31, 2024, using the framework specified in
Internal Control - Integrated Framework (2013)
, published
by
the
Committee
of
Sponsoring
Organizations
of
the
Treadway
Commission
(COSO).
Based
on
this
assessment, management
concluded that
the Company’s
internal control
over financial
reporting was
effective
as of December 31, 2024.
Our
Independent
Registered
Public
Accounting
Firm,
Ernst
&
Young,
has
audited
our
internal
control
over
financial reporting, as stated in their unqualified opinion
report included herein.
Coronado Global Resources Inc. Form 10-K December 31,
REPORT OF INDEPENDENT REGISTERED PUBLIC
ACCOUNTING FIRM
To
the Shareholders and the Board of Directors of Coronado
Global Resources Inc.
Opinion on Internal Control Over Financial Reporting
We have audited Coronado Global Resources
Inc.’s internal control over financial
reporting as of December 31,
2024,
based
on
criteria
established
in
Internal
Control-Integrated
Framework
issued
by
the
Committee
of
Sponsoring Organizations
of the
Treadway
Commission (2013
framework) (the
COSO criteria).
In our opinion,
Coronado Global
Resources
Inc. (the
Company)
maintained,
in
all material
respects,
effective
internal control
over financial reporting as of December 31, 2024, based on the
COSO criteria.
We
also
have
audited,
in
accordance
with
the
standards
of the
Public
Company
Accounting
Oversight
Board
(United States) (PCAOB), the consolidated balance sheets of the Company as of December 31, 2024 and 2023,
the
related
consolidated
statements
of
operations
and
comprehensive
income,
stockholders’
equity
and
cash
flows for each
of the three
years in the
period ended
December 31, 2024,
and the related
notes and our
report
dated February 19, 2025 expressed an unqualified opinion
thereon.
Basis for Opinion
The Company’s management is responsible for maintaining effective internal control over financial reporting and
for its assessment
of the effectiveness
of internal control
over financial reporting
included in the
accompanying
Management’s Report on
Internal
Control Over
Financial Reporting. Our
responsibility is to
express an opinion on
the
Company’s
internal
control
over
financial
reporting
based
on
our
audit.
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
Securities
and
Exchange
Commission and the PCAOB.
We conducted our audit
in accordance with the standards
of the PCAOB. Those standards
require that we plan
and
perform
the
audit
to
obtain
reasonable
assurance
about
whether
effective
internal
control
over
financial
reporting was maintained in all material respects.
Our audit included obtaining an understanding
of internal control over financial reporting,
assessing the risk that
a
material
weakness
exists,
testing
and
evaluating
the
design
and
operating
effectiveness
of
internal
control
based
on
the
assessed
risk,
and
performing
such
other
procedures
as
we
considered
necessary
in
the
circumstances. We believe that our audit provides a reasonable
basis for our opinion.
Definition and Limitations of Internal Control Over
Financial Reporting
A
company’s
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
for external purposes in
accordance with generally
accepted accounting principles.
A company’s internal
control over financial
reporting
includes those policies
and procedures that (1)
pertain to the maintenance
of records that, in
reasonable detail,
accurately and
fairly reflect
the transactions and
dispositions of the
assets of
the company;
(2) provide reasonable
assurance
that
transactions
are
recorded
as
necessary
to
permit
preparation
of
financial
statements
in
accordance with
generally accepted
accounting principles,
and that
receipts and
expenditures of
the company
are being
made only
in accordance
with authorizations
of management
and directors
of the
company; and
(3)
provide
reasonable
assurance
regarding
prevention
or
timely
detection
of
unauthorized
acquisition,
use,
or
disposition of the company’s assets that could
have a material effect on the financial statements.
Because
of
its
inherent
limitations,
internal
control
over
financial
reporting
may
not
prevent
or
detect
misstatements. Also,
projections of
any evaluation
of effectiveness
to future
periods are
subject to
the risk
that
controls may
become inadequate
because of
changes in
conditions, or
that the
degree of
compliance with
the
policies or procedures may deteriorate.
/s/ Ernst & Young
Brisbane, Australia
February 19, 2025
Coronado Global Resources Inc. Form 10-K December 31,
ITEM 9B.
OTHER INFORMATION
During
the quarter
ended
December
31, 2024,
no
director
or officer
(as
defined
in Rule
16a-1(f)
promulgated
under the Exchange
Act) of the
Company
adopted
or
terminated
a “Rule
10b5-1 trading arrangement”
or “
non
-
Rule
10b5-1
trading arrangement” (as each term is defined in Item 408
of Regulation S-K).
ITEM 9C.
DISCLOSURE REGARDING FOREIGN JURISDICTIONS
THAT PREVENT
INSPECTIONS
None.
Coronado Global Resources Inc. Form 10-K December 31,
PART III
ITEM 10.
DIRECTORS, EXECUTIVE OFFICERS AND
CORPORATE GOVERNANCE.
The information required to
be furnished by
this Item will be
set forth in
our definitive proxy statement
for the 2025
Annual General
Meeting of
Stockholders, or
the Proxy
Statement, under
the headings
“Executive Officers
and
Corporate Governance
.” “Delinquent
Section 16(a)
Reports”
and the
Company’s
“Securities Dealing
Policy,
or
Insider Trading Policy,”
and is
incorporated herein by
reference and
made a
part hereof
from the
Proxy Statement.
ITEM 11.
EXECUTIVE COMPENSATION.
The information required
to be furnished
by this Item
will be set forth
in the Proxy Statement
under the heading
“Executive
Compensation”
and
is
incorporated
herein
by
reference
and
made
a
part
hereof
from
the
Proxy
Statement.
ITEM
12.
SECURITY
OWNERSHIP
OF
CERTAIN
BENEFICIAL
OWNERS
AND
MANAGEMENT
AND
RELATED STOCKHOLDER
MATTERS.
The
information
required
to
be
furnished
by
this
Item
will
be
set
forth
in
the
Proxy
Statement
under
the
heading “Security
Ownership
of
Certain
Beneficial
Owners
and
Management”
and
is
incorporated
herein
by
reference and made a part hereof from the Proxy Statement.
ITEM 13.
CERTAIN RELATIONSHIPS AND RELATED
TRANSACTIONS, AND DIRECTOR INDEPENDENCE.
The information required to be furnished by this Item will be set forth in
the Proxy Statement under the headings
“Certain
Relationships
and
Related
Transactions”
and
“Executive
Officers
and
Corporate
Governance”
and
is
incorporated herein by reference and made a part hereof from
the Proxy Statement.
ITEM 14. PRINCIPAL
ACCOUNTANT FEES AND SERVICES.
The information required
to be furnished
by this Item
will be set forth
in the Proxy Statement
under the heading
“Ratification of Appointment of
Ernst & Young as the Company’s Independent Registered Public
Accounting Firm
for the Fiscal Year
Ending December 31, 2025” and is
incorporated herein by reference and made a
part hereof
from the Proxy Statement.
Coronado Global Resources Inc. Form 10-K December 31,
ITEM 15.
EXHIBITS AND FINANCIAL STATEMENT
SCHEDULES
(a)
The following documents are filed as part of this
Annual Report on Form 10-K:
1.
Financial Statements.
See index to
Financial Statements
and Supplementary
Data on page
of this
Annual Report on Form 10-K.
2.
Financial Statements Schedules. Schedules are omitted because
they are not required or applicable, or
the required information is included in the Financial Statements
or related notes thereto.
3.
Exhibits. The exhibits filed with or incorporated by reference as part of this Annual Report on Form
10-K
are set forth in the Exhibit Index.
(b)
The documents listed in
the Exhibit Index of
this Annual Report on
Form 10-K are incorporated
by reference
or are filed with this Annual Report on Form 10-K, in
each case as indicated therein.
The following documents are filed as exhibits hereto:
Exhibit No.
Description of Document
2.1*
Share Sale Agreement-Cork, dated as of December 22, 2017, by and among Coronado
Australia Holdings Pty Ltd, Coronado Group LLC and Wesfarmers Limited (filed as
Exhibit 2.1 to the Company’s Registration Statement on Form 10 (File No. 000-56044)
filed on June 28, 2019 and incorporated herein by reference)
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 Bylaws (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)
4.1
Stockholder’s Agreement, dated as of September 24, 2018, by and between the
Company and Coronado Group
(filed
as
Exhibit
4.1
to
the
Company’s
Registration
Statement
on
Form
(File
No.
000-56044)
filed
on
April
29,
and
incorporated
herein by reference)
4.2
Registration Rights and Sell-Down Agreement, dated as of September 24, 2018, by and
between the Company and Coronado Group (filed as Exhibit 4.2 to the Company’s
Registration Statement on Form 10 (File No. 000-56044) filed on April 29, 2019 and
incorporated herein by reference)
4.3
Description of the Company’s securities registered under Section 12 of the Securities
Exchange Act of 1934 (filed as Exhibit 4.3 to the Company’s Annual Report on Form 10-
K (File No. 000-56044) filed on February 24, 2020 and incorporated herein by reference)
4.4
Indenture, dated as of October 2, 2024, among Coronado Finance Pty Ltd, as issuer,
Coronado Global Resources Inc., as guarantor, the subsidiaries of Coronado Global
Resources Inc. named therein, as additional guarantors, Wilmington Trust, National
Association, as trustee and priority lien collateral trustee, relating to Coronado Finance
Pty Ltd’s 9.250% Senior Secured Notes due 2029 (filed as Exhibit 4.1 to the Company’s
Current Report on Form 8-K (File No. 000-56044) filed on October 2, 2024 and
incorporated herein by reference)
4.5
Form of 9.250% Senior Secured Notes due 2029 (filed as Exhibit 4.2 to the Company’s
Current Report on Form 8-K (File No. 000-56044) filed on October 2, 2024 and
incorporated herein by reference)
10.1
Relationship Deed, dated as of September 24, 2018, by and among the Company,
Coronado Group, certain EMG Group entities and their affiliates (filed as Exhibit 10.1 to
the Company’s Registration Statement on Form 10 (File No. 000-56044) filed on April
29, 2019 and incorporated herein by reference)
Coronado Global Resources Inc. Form 10-K December 31,
Exhibit No.
Description of Document
10.2†‡
Syndicated Facility Agreement, dated as of May 8, 2023, among Coronado Global
Resources Inc., as guarantor, Coronado Finance Pty Ltd, as Australian borrower,
Coronado Curragh Pty Ltd, as Australian borrower, the subsidiaries of Coronado Global
Resources Inc. named therein, as additional guarantors, and Global Loan Agency
Services Australia Pty Ltd, as administrative agent, Global Loan Agency Services
Australia Nominees Pty Ltd, as collateral agent, the Hongkong and Shanghai Banking
Corporation Limited, Sydney branch, as a lender and DBS Bank Limited, Australian
branch, as a lender (filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K
(File No. 000-56044) filed on May 8, 2023 and incorporated herein by reference)
10.3
Second Amendment to Syndicated Facility Agreement, dated as of July 1, 2023, among
Citibank, N.A., as administrative agent, Coronado Coal Corporation, as U.S. Borrower,
Coronado Finance Pty Ltd, as Australian Borrower, and the other Loan Parties,
Administrative Agent and the lenders named therein (filed as Exhibit 10.1 to the
Company’s Current Report on Form 8-K (File No. 000-56044) filed on July 6, 2023 and
incorporated herein by reference)
10.4†
First Amendment to Syndicated Facility Agreement, dated as of October 2, 2024, among
Global Loan Agency Services Australia Pty Ltd, as administrative agent, Global Loan
Agency Services Australia Nominees Pty Ltd, as collateral agent, Coronado Global
Resources Inc., as holdings, and the guarantors named therein (filed as Exhibit 10.1 to
the Company’s Current Report on Form 8-K (File No. 000-56044) filed on October 2,
2024 and incorporated herein by reference)
10.5‡
Coronado Global Resources Inc. 2019 Short-Term Incentive Plan (filed as Exhibit 10.3
to the Company’s Registration Statement on Form 10 (File No. 000-56044) filed on April
29, 2019 and incorporated herein by reference)
10.6‡
Coronado Global Resources Inc. 2018 Equity Incentive Plan (filed as Exhibit 10.4 to the
Company’s Registration Statement on Form 10 (File No. 000-56044) filed on April 29,
2019 and incorporated herein by reference)
10.7
Coronado Global Resources Inc. 2018 Equity Incentive Plan (incorporated by reference
to Appendix A to the Proxy Statement)
10.8
Coronado Global Resources Inc. Employee Stock Purchase Plan (incorporated by
reference to Appendix B to the Proxy Statement)
10.9>‡
Coronado Global Resources Inc. 2018 Non-Executive Director Plan (filed as Exhibit 10.5
to the Company’s Registration Statement on Form 10 (File No. 000-56044) filed on April
29, 2019 and incorporated herein by reference)
10.10>
Employment Agreement, dated as of May 25, 2023, between Coronado Global
Resources Inc. and Garold Spindler (filed as Exhibit 10.1 to the Company’s Current
Report on Form 8-K (File No. 000-56044) filed on May 31, 2023 and incorporated herein
by reference)
10.11>‡
Employment Agreement dated as of July 7, 2020, by and between Curragh Queensland
Mining Pty Ltd and Gerhard Ziems (filed as Exhibit 10.1 to the Company’s Current Report
on Form 8-K/A (File No. 000-56044) filed on July 7, 2020 and incorporated herein by
reference)
10.12>‡
Employment Agreement dated as of August 5, 2021, by and between Coronado Global
Resources Inc. and Jeffrey Bitzer (filed as Exhibit 10.1 to the Company’s Current Report
on Form 8-K (File No. 000-56044) filed on August 9, 2021 and incorporated herein by
reference)
10.13>
Appointment Agreement, dated as of May 25, 2023, between Coronado Global
Resources Inc. and Douglas G. Thompson (filed as Exhibit 10.3 to the Company’s
Current Report on Form 8-K (File No. 000-56044) filed on May 31, 2023 and
incorporated herein by reference)
10.14>‡
Employment Agreement dated as of July 12, 2021, by and between Coronado Global
Resources Inc. and Christopher P. Meyering (filed as Exhibit 10.11 to the Company’s
Annual Report on Form 10-K (File No. 000-56044) filed on February 22, 2022 and
incorporated herein by reference)
Coronado Global Resources Inc. Form 10-K December 31,
Exhibit No.
Description of Document
10.15>‡
Employment Agreement dated as of October 18, 2018, by and between Coronado
Curragh Pty Ltd and Emma Pollard (filed as Exhibit 10.11 to the Company’s Registration
Statement on Form 10 (File No. 000-56044) filed on April 29, 2019 and incorporated
herein by reference)
10.16>
Appointment Letter Agreement, dated as of May 25, 2023, between Coronado Global
Resources Inc. and William (Bill) Koeck (filed as Exhibit 10.2 to the Company’s Current
Report on Form 8-K (File No. 000-56044) filed on May 31, 2023 and incorporated herein
by reference)
10.17>
Form of Stock Option Award Agreement (Long Term Incentive Grant) (filed as Exhibit
10.12 to the Company’s Registration Statement on Form 10 (File No. 000-56044) filed
on April 29, 2019 and incorporated herein by reference)
10.18>
Form of Performance Stock Unit Award Agreement (Long Term Incentive Grant) (filed
as Exhibit 10.13 to the Company’s Registration Statement on Form 10 (File No. 000-
56044) filed on April 29, 2019 and incorporated herein by reference)
10.19>
Form of Non-Executive Director Restricted Stock Unit Award Agreement (filed as Exhibit
10.14 to the Company’s Registration Statement on Form 10 (File No. 000-56044) filed
on April 29, 2019 and incorporated herein by reference)
10.20>
Form of Restricted Stock Unit Award Agreement (Retention Grant) (filed as Exhibit 10.15
to the Company’s Registration Statement on Form 10 (File No. 000-56044) filed on April
29, 2019 and incorporated herein by reference)
10.21>
Form of Restricted Stock Unit Award Agreement (STIP Deferral Grant) (filed as Exhibit
10.16 to the Company’s Registration Statement on Form 10 (File No. 000-56044) filed
on April 29, 2019 and incorporated herein by reference)
10.22>
Summary of Non-Executive Director Compensation (filed as Exhibit 10.17 to the
Company’s Annual Report on Form 10-K (File No. 000-56044) filed on February 24,
2020 and incorporated herein by reference)
10.23>
Form of Agreement of Indemnity, Insurance and Access (filed as Exhibit 10.18 to the
Company’s Registration Statement on Form 10 (File No. 000-56044) filed on April 29,
2019 and incorporated herein by reference)
10.24‡
Amended Coal Supply Agreement, dated as of November 6, 2009, by and between
Stanwell Corporation Limited and Wesfarmers Curragh Pty Ltd (now known as Coronado
Curragh Pty Ltd) (filed as Exhibit 10.20 to the Company’s Registration Statement on
Form 10 (File No. 000-56044) filed on June 14, 2019 and incorporated herein by
reference)
10.25‡
Deed of Amendment to the Amended Coal Supply Agreement, dated as of November
21, 2016, by and between Stanwell Corporation Limited and Wesfarmers Curragh Pty
Ltd (now known as Coronado Curragh Pty Ltd) (filed as Exhibit 10.21 to the Company’s
Registration Statement on Form 10 (File No. 000-56044) filed on June 14, 2019 and
incorporated herein by reference)
10.26‡
Curragh Mine New Coal Supply Deed, dated August 14, 2018, by and between Stanwell
Corporation Limited and Coronado Curragh Pty Ltd (filed as Exhibit 10.22 to the
Company’s Registration Statement on Form 10 (File No. 000-56044) filed on June 14,
2019 and incorporated herein by reference)
10.28
Deed of Amendment, dated September 20, 2018 and effective September 21, 2018,
among Coronado Curragh Pty Ltd, Stanwell Corporation Limited and Coronado Group
LLC (filed as Exhibit 10.23 to the Company’s Registration Statement on Form 10 (File
No. 000-56044) filed on June 14, 2019 and incorporated herein by reference)
10.29
Deed of Amendment, dated March 5, 2019 and effective May 21, 2019, between
Coronado Curragh Pty Ltd and Stanwell Corporation Limited (filed as Exhibit 10.24 to
the Company’s Registration Statement on Form 10 (File No. 000-56044) filed on June
14, 2019 and incorporated herein by reference)
10.30
Deed of Amendment, dated May 9, 2019 and effective May 21, 2019, between Coronado
Curragh Pty Ltd and Stanwell Corporation Limited (filed as Exhibit 10.25 to the
Company’s Registration Statement on Form 10 (File No. 000-56044) filed on June 14,
2019 and incorporated herein by reference)
Coronado Global Resources Inc. Form 10-K December 31,
Exhibit No.
Description of Document
10.31†‡
New Coal Supply Agreement, dated as of July 12, 2019, by and between Stanwell
Corporation Limited and Coronado Curragh Pty Ltd. (filed as Exhibit 10.2 to the
Company’s Quarterly Report on Form 10-Q (File No. 000-56044) filed on November 7,
2019 and incorporated herein by reference)
19.1
Securities Dealing Policy of Coronado Global Resources Inc.
21.1
List of Subsidiaries
23.1
Consent of Ernst & Young
23.2
Consent of Barry Lay
23.3
Consent of Daniel Miller
23.4
Consent of Claire McGahan
23.5
Consent of Marshall Miller & Associates, Inc.
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 Interim Principal 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
96.1
Technical Report Summary for Curragh
96.2
Technical Report Summary for Buchanan
96.3
Technical Report Summary for Logan
96.4
Technical Report Summary for Mon Valley
The following materials from the Company’s Annual Report on Form 10-K for the period
ended December
31,
2024,
formatted
in
iXBRL
(Inline
Extensible
Business
Reporting
Language): (i) Consolidated Balance
Sheets, (ii) Consolidated
Statements of Operations
and Consolidated Statements of
Comprehensive Income, (iii)
Consolidated Statements
of Stockholders’ Equity/Members’ Capital, (iv) Consolidated
Statements of Cash Flows,
(v) related notes to these financial statements and (vi)
document and entity information
Cover Page
Interactive Data
File (the cover
page XBRL
tags are embedded
within the
Inline XBRL document)
____________________
*
Portions of this
exhibit have been omitted
pursuant to Item 601(b)(2)(ii)
of Regulation S-K,
which portions
will be furnished to the Securities and Exchange Commission
upon request.
†
Certain schedules and exhibits to this
agreement have been omitted pursuant to Item
601(a)(5) and Item
601(a)(6)
of
Regulation
S-K.
A
copy
of
any
omitted
schedule
and/or
exhibit
will
be
furnished
to
the
Securities and Exchange Commission upon request.
‡
Portions
of
this
exhibit
have
been
omitted
pursuant
to
Item
601(b)(10)(iv)
of
Regulation
S-K,
which
portions will be furnished to the Securities and Exchange Commission
upon request.
>
Management contract, compensatory plan or arrangement
Coronado Global Resources Inc. Form 10-K December 31,
ITEM 16.
FORM 10-K SUMMARY
None.
Coronado Global Resources Inc. Form 10-K December 31,
SIGNATURES
Pursuant to the
requirements of
Section 13
or 15(d) 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/ Douglas Thompson
Douglas Thompson
Managing Director and Chief Executive Officer (as
duly
authorized officer and as principal executive officer
of
the registrant)
Date: February 19,
Pursuant to the requirements
of the Securities Exchange
Act of 1934, this
report has been
signed below by
the
following persons, on behalf of the registrant and in the
capacities and on the dates indicated.
Name
Title
Date
/s/ Douglas Thompson
Managing
Director
and
Chief
Executive
Officer (Principal Executive Officer)
February 19, 2025
Douglas Thompson
/s/ Sandeep Deoji
Vice
President
Group
Financial
Control
(Interim Principal Financial Officer)
February 19, 2025
Sandeep Deoji
/s/ Garold Spindler
Director
February 19, 2025
Garold Spindler
/s/ William Koeck
Director
February 19, 2025
William Koeck
/s/ Philip Christensen
Director
February 19, 2025
Philip Christensen
/s/ Greg Pritchard
Director
February 19, 2025
Greg Pritchard
/s/ Laura Tyson
Director
February 19, 2025
Laura Tyson
/s/ Aimee R. Allen
Director
February 19, 2025
Aimee R. Allen
/s/ Jan C. Wilson
Director
February 19, 2025
Jan C. Wilson

---

ITEM 1B. UNRESOLVED STAFF COMMENTS

---

ITEM 2. PROPERTIES

---

ITEM 3. LEGAL PROCEEDINGS

---

ITEM 4. MINE SAFETY DISCLOSURE

---

ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY

---

ITEM 6. SELECTED FINANCIAL DATA

---

ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS

---

ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
ITEM 7A.
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
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.
The
expectation
of
future
prices
for
coal
depends
upon
many
factors
beyond
our
control.
Met
coal
has
been
volatile commodity over the
past ten years. The
demand and supply in the
Met coal industry changes
from time
to
time.
There
are
no
assurances
that
oversupply
will
not
occur,
that
demand
will
not
decrease
or
that
overcapacity will not occur, which could cause
declines in the prices of
coal, which could have a
material adverse
effect on our financial condition and results
of operations.
Access to
international markets
may be
subject to
ongoing interruptions
and trade
barriers due
to policies
and
tariffs
of
individual
countries.
We
may
or
may
not
be
able
to
access
alternate
markets
of
our
coal
should
interruptions or trade
barriers occur in
the future.
An inability for
Metcoal suppliers to
access international markets
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
Part I, Item 1A. “Risk Factors-Risks related to the Supply Deed with Stanwell may
adversely affect our financial
condition and results of operations.”
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 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.
As of
December 31,
2024, we had
$23.5
million
of
outstanding
provisionally
priced
receivables
subject
to
changes
in
the
relevant
price
index.
If
prices decreased 10%,
these provisionally priced
receivables would decrease
by $2.3 million.
See Part
I, 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.”
Coronado Global Resources Inc. Form 10-K December 31,
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). The
expectation of
future prices
for diesel
depends upon
many
factors
beyond
our
control.
The
current
Israel-Palestine
conflict
could
create
significant
uncertainty
regarding
interruptions to global oil supply causing significant
volatility in prices of related commodities,
including the price
of diesel fuel we
purchase. 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 operations in 2025 will be purchased
under fixed-price contracts or on a spot basis.
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
our
financial
performance,
investment
decisions
and
stockholder
return.
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
December
31,
2024,
we
had
$450.3
million
of
fixed-rate
borrowings,
including
the
Notes,
and
no variable-rate borrowings outstanding.
We currently do not hedge against interest rate
fluctuations.
Foreign Exchange Risk
A significant portion of our
sales are denominated in US$.
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 70% of expenses incurred at our Australian Operations are denominated in
A$. Approximately 30% of our
Australian Operations’ purchases are made with
reference to US$, which provides
a natural hedge against foreign
exchange movements on these
purchases (including fuel, several
port handling
charges, demurrage,
purchased coal
and some
insurance premiums).
Appreciation of
the A$
against US$
will
increase our Australian
Operations’ US$ reported
cost base and
reduce US$ reported
net income. For
the portion
of US$ required to purchase A$ to settle our Australian Operations’ operating costs, a 10% increase in the A$ to
US$ exchange
rate would
increase reported
total costs
and expenses
by approximately
$118.6
million for
the
year ended December 31, 2024.
Under normal market conditions, we generally do not consider it necessary to hedge our
exposure to this foreign
exchange risk.
However,
there
may be
specific commercial
circumstances,
such
as the
hedging
of significant
capital
expenditure,
acquisitions,
disposals
and
other
financial
transactions,
where
we
may
deem
foreign
exchange hedging
as appropriate
and
where a
US$ contract
cannot
be negotiated
directly with
suppliers
and
other third parties.
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.
We currently do not hedge our non-US$ exposures
against exchange rate fluctuations.
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 independent 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
and
Board
of
Directors.
Coronado Global Resources Inc. Form 10-K December 31,
As of December
31, 2024,
we had financial
assets of
$617.9 million, comprising
of cash and
cash equivalents,
trade receivables and
restricted deposits,
which are exposed
to counterparty
credit risk. These
financial assets
have been assessed under ASC 326, Financial Instruments - Credit Losses, and
a provision for discounting and
credit
losses
of
$0.7
million
was
recorded
as
of
December
31,
2024.
See
Item
8.
“Financial
Statements
and
Supplementary Data-Note 7. Provision for Discounting and
Credit Losses.”
Coronado Global Resources Inc. Form 10-K December 31,

---

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
ITEM 8. FINANCIAL STATEMENTS
AND SUPPLEMENTARY
DATA
Page
Number
Consolidated Balance Sheets
Consolidated Statements of Operations and Comprehensive Income
Consolidated Statements of Stockholders’ Equity
Consolidated Statements of Cash Flows
Notes to Consolidated Financial Statements
Report of Independent Registered Public Accounting Firm
(PCAOB
ID:
)
Coronado Global Resources Inc. Form 10-K December 31,
Consolidated Balance Sheets
(In US$ thousands, except share data)
Assets
Note
December 31,
December 31,
Current assets:
Cash and cash equivalents
$
339,625
$
339,295
Trade receivables, net
209,110
263,951
Inventories
155,743
192,279
Income tax receivable
-
44,906
Other current assets
110,275
103,609
Total
current assets
814,753
944,040
Non-current assets:
Property, plant and
equipment, net
1,507,130
1,506,437
Right of use asset - operating leases, net
90,143
80,899
Goodwill
28,008
28,008
Intangible assets, net
2,905
3,108
Restricted deposits
68,471
68,660
Deferred income tax assets
-
27,230
Other non-current assets
6,342
19,656
Total
assets
$
2,517,752
$
2,678,038
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable
$
101,743
$
113,273
Accrued expenses and other current liabilities
206,798
312,705
Asset retirement obligations
15,523
15,321
Contract obligations
37,090
40,722
Lease liabilities
19,502
22,879
Interest bearing liabilities
1,363
-
Income tax payable
17,568
-
Other current financial liabilities
5,988
2,825
Total
current liabilities
405,575
507,725
Non-current liabilities:
Asset retirement obligations
149,275
148,608
Contract obligations
27,772
61,192
Deferred consideration liability
285,050
277,442
Interest bearing liabilities
410,944
235,343
Other financial liabilities
18,881
5,307
Lease liabilities
74,241
61,692
Deferred income tax liabilities
36,737
100,145
Other non-current liabilities
36,392
34,549
Total
liabilities
$
1,444,867
$
1,432,003
Common stock $
0.01
par value;
1,000,000,000
shares authorized,
167,645,373
shares issued and outstanding as of December 31, 2024 and
December 31, 2023
1,677
1,677
Series A Preferred stock $
0.01
par value;
100,000,000
shares authorized,
Share issued and outstanding as of December 31, 2024 and
December 31,
-
-
Additional paid-in capital
1,094,560
1,094,431
Accumulated other comprehensive losses
(137,560)
(89,927)
Retained earnings
114,208
239,854
Total
stockholders’ equity
1,072,885
1,246,035
Total
liabilities and stockholders’ equity
$
2,517,752
$
2,678,038
See accompanying notes to consolidated financial
statements.
Coronado Global Resources Inc. Form 10-K December 31,
Consolidated Statements of Operations and Comprehensive
Income
(In US$ thousands, except share data)
Year ended December 31,
Note
Revenues:
Coal revenues
$
2,444,862
$
2,830,689
$
3,527,626
Other revenues
62,851
59,914
43,916
Total
revenues
2,507,713
2,890,603
3,571,542
Costs and expenses:
Cost of coal revenues (exclusive of items shown
separately below)
1,714,987
1,731,630
1,515,585
Depreciation, depletion and amortization
187,400
160,711
167,046
Freight expenses
241,377
259,710
249,081
Stanwell rebate
116,870
136,523
165,995
Other royalties
289,678
345,882
385,065
Selling, general, and administrative expenses
36,944
84,177
42,499
Total
costs and expenses
2,587,256
2,718,633
2,525,271
Other income (expenses):
Interest expense, net
(58,856)
(56,751)
(67,632)
Loss on debt extinguishment
(14,732)
(1,385)
(5,336)
Decrease (increase) in provision for discounting and
credit losses
4,216
(3,821)
Other, net
3,734
5,764
33,795
Total
other expense, net
(69,647)
(48,156)
(42,994)
(Loss) income before tax
(149,190)
123,814
1,003,277
Income tax (expense) benefit
40,309
32,251
(231,574)
Net (loss) income attributable to Coronado Global
Resources Inc.
$
(108,881)
$
156,065
$
771,703
Other comprehensive loss, net of income taxes:
Foreign currency translation adjustment
(47,633)
1,496
(47,195)
Total
other comprehensive (loss) income
(47,633)
1,496
(47,195)
Total
comprehensive (loss) income attributable to
Coronado Global Resources Inc.
$
(156,514)
$
157,561
$
724,508
(Loss) earnings per share of common stock
Basic
5 (c)
(0.65)
0.93
4.60
Diluted
5 (c)
(0.65)
0.93
4.60
See accompanying notes to consolidated financial
statements.
Coronado Global Resources Inc. Form 10-K December 31,
Consolidated Statements of Stockholders’ Equity
(In US$ thousands, except share data)
Common stock
Preferred stock
Additional
paid in
capital
Accumulated
other
comprehensive
losses
(Accumulated
losses) Retained
earnings
Total
stockholders'
equity
Shares
Amount
Series A
Amount
Balance December 31, 2021
167,645,373
$
1,677
$
-
$
1,089,547
$
(44,228)
$
30,506
$
1,077,502
Net income
-
-
-
-
-
-
771,703
771,703
Other comprehensive loss
-
-
-
-
-
(47,195)
-
(47,195)
Total comprehensive (loss) income
-
-
-
-
-
(47,195)
771,703
724,508
Stock-based compensation for equity
classified awards
-
-
-
-
2,735
-
-
2,735
Dividends
-
-
-
-
-
-
(701,655)
(701,655)
Balance December 31, 2022
167,645,373
$
1,677
$
-
$
1,092,282
$
(91,423)
$
100,554
$
1,103,090
Net income
-
-
-
-
-
-
156,065
156,065
Other comprehensive income
-
-
-
-
-
1,496
-
1,496
Total comprehensive income
-
-
-
-
-
1,496
156,065
157,561
Stock-based compensation for equity
classified awards
-
-
-
-
2,149
-
-
2,149
Dividends
-
-
-
-
-
-
(16,765)
(16,765)
Balance December 31, 2023
167,645,373
$
1,677
$
-
$
1,094,431
$
(89,927)
$
239,854
$
1,246,035
Net loss
-
-
-
-
-
-
(108,881)
(108,881)
Other comprehensive loss
-
-
-
-
-
(47,633)
-
(47,633)
Total comprehensive loss
-
-
-
-
-
(47,633)
(108,881)
(156,514)
Stock-based compensation for equity
classified awards
-
-
-
-
-
-
Dividends
-
-
-
-
-
-
(16,765)
(16,765)
Balance December 31, 2024
167,645,373
$
1,677
$
-
$
1,094,560
$
(137,560)
$
114,208
$
1,072,885
See accompanying notes to consolidated financial
statements
Coronado Global Resources Inc. Form 10-K December 31,
Consolidated Statements of Cash Flows
(In US$ thousands)
Year Ended December 31,
Cash flows from operating activities:
Net (loss) income
$
(108,881)
$
156,065
$
771,703
Adjustments to reconcile net income to cash and
cash equivalents provided
by operating activities:
Depreciation, depletion and amortization
190,923
163,862
165,503
Change in estimate of asset retirement obligation
(3,523)
(3,151)
1,543
Impairment of non-core assets
10,585
-
-
Amortization of right of use asset - operating leases
22,091
12,415
6,704
Amortization of deferred financing costs
3,989
4,300
1,933
Non-cash interest expense
34,912
30,997
31,362
Amortization of contract obligations
(31,443)
(33,026)
(36,519)
Equity-based compensation expense
2,149
2,735
Loss on debt extinguishment
14,732
1,385
5,336
Deferred income taxes
(39,526)
(21,338)
40,423
Reclamation of asset retirement obligations
(9,724)
(5,334)
(4,543)
(Decrease) increase in provision for discounting and
credit losses
(207)
(4,216)
3,821
Gain on translation of short-term inter-entity balances
(10,028)
-
-
Other
(694)
Changes in operating assets and liabilities:
Accounts receivable - including related party receivables,
net
35,451
155,056
(156,818)
Inventories
27,644
(32,774)
(41,243)
Other current assets
(2,778)
(477)
(12,365)
Accounts payable
(9,366)
40,159
(27,664)
Accrued expenses and other current liabilities
(97,895)
(25,435)
84,041
Operating lease liabilities
(21,050)
(14,597)
(8,244)
Income tax payable
66,665
(164,834)
96,326
Change in other liabilities
2,033
6,560
1,754
Net cash provided by operating activities
74,039
268,282
926,643
Cash flows from investing activities:
Capital expenditures
(248,142)
(237,205)
(199,716)
Proceeds from the disposal of property, plant, and equipment
-
-
Purchase of restricted and other deposits
(2,462)
(27,213)
(9,761)
Redemption of restricted and other deposits
24,268
26,250
Net cash used in investing activities
(226,336)
(238,168)
(208,343)
Cash flows from financing activities:
Proceeds from interest bearing liabilities and other
financial liabilities
449,860
-
-
Debt issuance costs and other financing costs
(13,912)
(3,436)
-
Principal payments on interest bearing liabilities
and other financial liabilities
(246,668)
(4,361)
(81,310)
Call premiums paid on early redemption of debt
(9,768)
-
(2,557)
Principal payments on finance lease obligations
(68)
(127)
(140)
Dividends paid
(16,679)
(16,755)
(700,244)
Net cash provided by (used in) financing activities
162,765
(24,679)
(784,251)
Net increase (decrease) in cash and cash equivalents
10,468
5,435
(65,951)
Effect of exchange rate changes on cash and cash equivalents
(10,138)
(769)
(37,351)
Cash and cash equivalents at beginning of period
339,295
334,629
437,931
Cash and cash equivalents at end of period
$
339,625
$
339,295
$
334,629
Supplemental disclosure of cash flow information:
Cash payments for interest
$
29,727
$
28,632
$
36,728
Cash (refund) paid for taxes
$
(67,842)
$
147,106
$
90,888
Restricted cash
$
$
$
See accompanying notes to consolidated financial
statements
Coronado Global Resources Inc. Form 10-K December 31,
NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS
1.
Description of Business, Basis of Presentation
(a)
Nature of operations
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
United States, or
U.S. For details
of the
Company’s
capital structure, refer to Note 5 “Capital Structure” for
further information.
(b)
Basis of Presentation
The
Consolidated
Financial
Statements
have
been
prepared
in
accordance
with
requirements
of
the
U.S.
Generally Accepted
Accounting
Principles,
or U.S.
GAAP and
are presented
in U.S.
dollars,
unless otherwise
stated.
The Consolidated Financial
Statements include the
accounts of the
Company and its
subsidiaries. The Company,
or
Coronado,
are
used
interchangeably
to
refer
to
Coronado
Global
Resources
Inc.
or
Coronado
Global
Resources Inc.
and its
subsidiaries, as
appropriate to
the context.
All intercompany
balances and
transactions
have been eliminated on consolidation.
(c)
Certain Significant Risks and Uncertainties
External
factors,
including
general
economic
conditions,
international
events
and
circumstances,
competitor
actions, governmental actions
and regulations are beyond
the Company’s control
and can cause fluctuations
in
demand
for
coal
and
volatility
in
the
price
of
commodities.
This
in
turn
may
adversely
impact
the
Company’s
future operating results, purchase or investment opportunities
in the coal mining industry.
Concentration of customers
The Company has a credit
policy that establishes procedures
to determine creditworthiness
and credit limits for
trade customers and counterparties
in the over-the-counter coal
market. Generally,
credit is extended based on
an evaluation
of the customer’s
financial condition.
Collateral is
not generally
required, unless
credit cannot
be
established.
Payments from customers are generally due between
to
days after invoicing. Invoicing usually occurs after
shipment
or
delivery
of
goods.
The
timing
between
the
recognition
of
revenue
and
receipt
of
payment
is
not
significant.
The Company had certain customers
whose accounts receivable balances individually represented
% or more
of
the
Company’s
total
accounts
receivable,
or
whose
revenue
individually
represented
%
or
more
of
the
Company’s total revenue.
The
following
table
summarizes
any
customer
whose
revenue
individually
represented
%
or
more
of
the
Company’s total coal revenues in the year ended
December 31, 2024.
Year Ended December 31,
Tata
Steel
20%
21%
19%
JFE Steel
11%
8%
8%
For the year
ended December
31, 2024, $
1,330.4
million, or
54.6
%, of total
coal revenues,
were attributable
to
five
customers. In comparison,
for the year
ended December 31,
2023, $
1,509.1
million, or
53.3
%, of total
coal
revenues were
attributable
to
five
customers
and for
the year
ended December
31, 2022,
$
1,848.8
million,
or
52.6
%, of total
coal revenues
were attributable to
five
customers. As of
December 31, 2024,
the Company had
four
customers that
accounted for
$
119.2
million, or
56.9
%, of
accounts receivable.
As of
December 31,
2023,
the Company had
three
customers that accounted for $
152.9
million, or
57.9
%, of accounts receivable.
NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS
(Continued)
Coronado Global Resources Inc. Form 10-K December 31,
The
following
table
presents
revenues
as
a
percent
of
total
revenue
from
external
customers
by
geographic
region:
Year Ended December 31,
Asia
59%
50%
46%
North America
14%
11%
12%
South America
8%
8%
8%
Europe
7%
6%
11%
Australia
3%
4%
4%
Brokered sales
9%
21%
19%
Total
100%
100%
100%
The Company uses shipping destination as the
basis for attributing revenue to individual
countries. The transfer
of title on
brokered transactions
may occur at
a point that
does not reflect
the end usage
point, therefore
these
sales are reflected as exports and classified as brokerage sales.
Concentration of labor
Out
of
the
Company’s
total
employees,
10.1
%
as
of
December
31,
2024,
are
subject
to
the
Curragh
Mine
Enterprise
Agreement
2023.
This
agreement
covers
work
carried out
by permanent,
full-time,
temporary,
and
casual coal mining
employees engaged
by Curragh
to fulfill
production, maintenance
and processing
activities.
Other than
the Curragh
Mine Enterprise
Agreement 2023,
there are
no other
collective bargaining
agreements
or union contracts covering employees of the Company
.
Transportation
The Company depends
upon port and
rail transportation
systems to deliver
coal to
its customers.
Disruption of
these
transportation
services
due
to
weather-related
problems,
mechanical
difficulties,
strikes,
lockouts,
bottlenecks, and other
events could temporarily
impair the Company’s
ability to supply
coal to its
customers. In
the past, disruptions in these services have resulted in
delayed shipments and production interruptions.
2.
Summary of Significant Accounting Policies
(a)
Newly Adopted Accounting Standards
Accounting Standards
Update, or
ASU, No. 2023-07
“Segment Reporting”
(Topic
280)
: In November
2023, the
FASB
issued
ASU
2023-07,
which
intended
to
improve
reportable
segment
disclosure
requirements
through
enhanced
disclosures
of
significant
segment
expenses.
The
guidance
was
effective
and
implemented
in
the
Company’s consolidated financial statements for the
year ended December 31, 2024.
The updated standard
impacted only the
financial statement disclosures with
no impact on
the Company’s results
of operation, cash flows and financial position.
Such new disclosures are included in Note 3 “Segment Information”.
(b)
Accounting Standards Not Yet
Implemented
ASU 2023-09
“Income Taxes”
(Topic
740)
: In
December
2023, the
FASB
issued 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 statement disclosures.
NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS
(Continued)
Coronado Global Resources Inc. Form 10-K December 31,
ASU 2024-03
“Income Statement
- Reporting
Comprehensive Income
- Expense
Disaggregation Disclosures”
(Subtopic 220-40)
: Disaggregation of Income
Statement Expenses. In
November 2024, the
FASB
issued 2024-
03, which require disclosure, in
the notes to financial statements, of
specified information about certain costs and
expenses. The amendments aim to improve financial reporting by requiring that public business entities disclose
additional information about
specific expense categories
in the notes
to financial statements
at interim
and annual
reporting periods. The
updated standard is
effective for
annual reporting periods
beginning after December
15,
2026,
and
interim
reporting
periods
beginning
after
December
15,
2027.
Early
adoption
is
permitted.
The
Company
is
currently
evaluating
the
impact
that
the
updated
standard
will
have
in
its
financial
statement
disclosures.
There have been
no other recent
accounting pronouncements not yet
effective that have significance,
or potential
significance, to the Company’s Consolidated Financial
Statements.
(c) Use of Estimates
The preparation
of Consolidated
Financial
Statements
in conformity
with U.S. GAAP
requires
management
to
make certain
judgements, estimates
and assumptions
that affect
the reported
amounts of
assets and
liabilities
and disclosure of
contingent assets and contingent
liabilities at the
date of the
Consolidated Financial Statements
and
the
reported
amounts
of
revenues
and
expenses
during
the
reporting
periods.
Actual
results
could
differ
materially
from
those
estimates.
Significant
items
subject
to
such
estimates
and
assumptions
include
asset
retirement obligations; useful lives for depreciation,
depletion and amortization; expected credit
losses; deferred
income tax
assets and
liabilities; values
of coal
properties;
goodwill; workers’
compensation
liability and
other
contingencies.
(d)
Foreign Currency
Financial Statements of foreign operations
The reporting currency of the Company is the U.S. Dollar,
or US$.
Functional
currency
is
determined
by
the
primary
economic
environment
in
which
an
entity
operates.
The
functional currency of
the Company
and its subsidiaries
is the US$,
with the exception
of two foreign
operating
subsidiaries, Coronado Curragh Pty Ltd, or Curragh, and its immediate
parent, Coronado Australia Holdings Pty
Ltd, or CAH,
whose functional
currency is
the Australian
dollar,
or A$, since
Curragh’s predominant
sources of
operating expenses are denominated in that currency.
Assets and liabilities
are translated at
the year-end exchange
rate and items
in the statement
of operations are
translated at average rates with gains and losses from
translation recorded in other comprehensive losses.
Foreign Currency Transactions
Monetary
assets
and
liabilities
are
remeasured
at
year-end
exchange
rates
while
non-monetary
items
are
remeasured at historical rates.
Gains and
losses
from foreign
currency
remeasurement
related
to Curragh’s
US$ receivables
are included
in
coal revenues.
All other
gains
and losses
from foreign
currency
remeasurement
and foreign
currency
forward
contracts
are
included
in
“Other,
net”,
with
exception
of
foreign
currency
gains
or
losses
on
long-term
intercompany
loan
balances
which
are classified
within
“Accumulated
other
comprehensive
losses.”
The
total
aggregate impact of foreign currency
transaction gains or losses on the
Consolidated Statements of Operations
and Comprehensive
Income was
a net gain
of $
21.6
million, $
2.5
million and $
47.6
million for the
years ended
December 31,
2024,
2023 and
2022, respectively.
The total
impact of
foreign currency
transactions related
to
US$ coal
sales in
Australia (included
in the
total above)
was a
net gain
of $
8.4
million, net
loss of
$
1.0
million
and net gain of $
15.0
million for the years ended December 31, 2024, 2023 and
2022, respectively.
(e)
Cash and Cash Equivalents
Cash and cash
equivalents include cash
at bank and
short-term highly liquid investments
with an original
maturity
date
of
three
months
or
less.
The
Company
had
$
221.4
million
and
$
130.0
million
of
short-term
highly
liquid
investments classified as cash equivalents for the years
ended December 31, 2024 and 2023, respectively.
“Cash
and
cash
equivalents”,
as disclosed
in
the
accompanying
Consolidated
Balance
Sheets,
includes
$
0.3
million of restricted cash at December 31, 2024 and
2023.
NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS
(Continued)
Coronado Global Resources Inc. Form 10-K December 31,
(f)
Trade Accounts Receivables
Trade accounts receivables represent
customer obligation that
is derived
from revenue recognized
from contracts
with customers. The Company extends trade credit to its customers in the ordinary course of business based on
an evaluation of the individual customer’s financial
condition.
Trade receivables are initially recorded at fair value
and subsequently at amortized cost, less any Expected
Credit Losses, or ECL.
The Company
determines
ECL on
a forward
-looking
basis
for the
expected
lifetime
losses
on trade
accounts
receivable.
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
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, including expected timing
of
collection,
at
the
reporting
date,
modified
for
credit
enhancements
such
as
letters
of
credit
obtained.
To
measure ECL,
trade receivables
have been
grouped
based on
shared credit
risk characteristics
and the
days
past due.
The amount of credit
loss is recognized in
the Consolidated Statements
of Operations and Other Comprehensive
Income within “Provision for discounting and credit losses.” 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. Subsequent
recoveries of amounts
previously written off
are credited against “Provision
for discounting and
credit losses” in
the Consolidated Statements of Operations and Other
Comprehensive Income.
(g)
Inventories
Coal is recorded
as inventory at the
point in time
the coal is
extracted from the
mine. Raw coal
represents coal
stockpiles that
may be
sold in
current condition
or may
be further
processed prior
to shipment
to a
customer.
Saleable coal represents coal stockpiles which require
no further processing prior to shipment to a customer.
Coal inventories are stated
at the lower of average
cost and net realizable
value. The cost of coal
inventories is
determined based
on an
average cost
of production,
which includes
all costs
incurred to
extract, transport
and
process
the coal.
Net
realizable
value
considers
the
estimated
sales
price
of
the
particular
coal
product,
less
applicable selling costs, and, in the case of raw coal, estimated
remaining processing costs.
Supplies
inventory
is
comprised
of
replacement
parts
for
operational
equipment
and
other
miscellaneous
materials and supplies
required for mining
which are stated
at cost on the
date of purchase.
Supplies inventory
is valued at
the lower of
average cost or
net realizable
value, less a
reserve for obsolete
or surplus items.
This
reserve incorporates several factors, such as anticipated usage, inventory turnover and inventory levels. It is not
customary to sell these inventories; the Company plans
to use them in mining operations as needed.
(h)
Property, Plant and
Equipment, Impairment of Long-Lived Assets and Goodwill
Property, Plant, and
Equipment
Costs for mine development incurred to
expand capacity of operating mines or to
develop new mines and certain
mining equipment are capitalized and charged to operations on the
hours of usage or units of production method
over
the
estimated
proven
and
probable
reserve
tons
directly
benefiting
from
the
capital
expenditures.
Mine
development
costs
include
costs
incurred
for
site
preparation
and
development
of
the
mines
during
the
development stage.
Mineral rights
and reserves
acquired are
measured at
cost and
are depleted
on a
units of
production
method
over
the
estimated
proven
and
probable
reserve
tons
of
the
relevant
mineral
property.
Capitalized costs related to internal-use software are amortized on
a straight-line basis over the estimated useful
lives of the assets.
Property,
plant,
and
equipment
are
recorded
at
cost
and
include
expenditures
for
improvements
when
they
substantially
increase
the
productive
lives
of existing
assets.
Depreciation
is calculated
using
the
straight-line
method over
the estimated
useful lives
of the
depreciable assets of
to
years for machinery, mining
equipment
and
transportation
vehicles,
to
years
for
office
equipment,
and
to
years
for
plant,
buildings
and
improvements.
Maintenance and
repair costs
are expensed to
operations as
incurred. When
equipment is
retired or
disposed,
the related cost
and accumulated
depreciation are
removed from
the respective
accounts and any
gain or loss
on disposal is recognized in operations.
NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS
(Continued)
Coronado Global Resources Inc. Form 10-K December 31,
Impairment of long-lived 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
cash
flows
expected
to
be
generated by
that asset
or asset
group to
its carrying
amount. If
the carrying
amount of
the long-lived
asset or
asset group
is not
recoverable on
an undiscounted
cash flow
basis, an
impairment is
recognized to
the extent
that the
carrying amount
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.
In circumstances where
the Company intends
to sell a
long-lived or asset
group, that did
not satisfy the
criteria
to be
classified
as
held-for-sale,
an
impairment
charge
is recorded
when
the
carrying
amount
of the
disposal
group exceeds its estimated fair value, less costs to sell.
The Company recognized
an impairment charge of
$
10.6
million against property,
plant and equipment relating
to a long-standing
non-core idled asset
within the U.S.
Operations for the
year ended December
31, 2024. The
Company concluded
that
no
impairment charges
were required
at any
of the
Company’s mining
assets for
the
years ended December 31, 2023 and 2022.
Goodwill
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.
In
connection
with
the
Buchanan
acquisition on
March 31,
2016, the
Company recorded
goodwill in
the amount
of $
28.0
million.
The Company
performed a
qualitative assessment
to determine
if impairment
was required
at December 31,
2024 and
2023.
Based upon the
Company’s qualitative
assessment, it
is more likely
than not that
the fair value
of the reporting
unit is greater
than its carrying amount
at December 31, 2024 and
2023. As a
result,
no
impairment was required,
and the balance
of goodwill at
both December 31, 2024 and
2023 was $
28.0
million. The Company has
not noted
any indicators of impairment since the acquisition date.
Goodwill is not
amortized but is reviewed
for impairment annually or
when circumstances or other
events indicate
that impairment may have occurred. The Company follows the
guidance in Accounting Standards Update 2017-
“
Intangibles
-
Goodwill
and
Other:
Simplifying
the
Test
for
Goodwill
Impairment
”
(ASU 2017-04).
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 mining
asset 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.
(i)
Asset Retirement Obligations
The
Company’s
asset
retirement
obligation,
or
ARO,
liabilities
primarily
consist
of
estimates
of
surface
land
reclamation
and
support
facilities
at
both
surface
and
underground
mines
in
accordance
with
applicable
reclamation laws and regulations in the U.S. and Australia
as defined by each mining permit.
NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS
(Continued)
Coronado Global Resources Inc. Form 10-K December 31,
The Company
estimates its ARO
liabilities for
final reclamation
and mine
closure based upon
detailed engineering
calculations of the amount
and timing of the future
cash spending for a
third party to perform
the required work.
Spending
estimates
are
escalated
for
inflation
and
then
discounted
at
the
credit-adjusted,
risk-free
rate.
The
Company records
an ARO asset
associated with
the discounted
liability for final
reclamation and
mine closure.
The obligation
and corresponding
asset are recognized
in the period
in which the
liability is incurred.
The ARO
asset
is
amortized
on
the
units-of-production
method
over
its
expected
life
of
the
related
asset
and
the
ARO
liability is accreted to the projected
spending date. As changes
in estimates occur (such as
mine plan revisions,
changes in
estimated costs
or changes
in timing
of the
performance of
reclamation activities),
the revisions
to
the
obligation
and
asset
are
recognized
at
the
appropriate
credit-adjusted,
risk-free
rate.
The
Company
also
recognizes
an
obligation
for
contemporaneous
reclamation
liabilities
incurred
as
a
result
of
surface
mining.
Contemporaneous reclamation consists primarily
of grading, topsoil replacement
and re-vegetation of backfilled
pit areas. To
settle the liability,
the obligation is paid,
and to the extent
there is a difference
between the liability
and
the
amount
of cash
paid,
a
gain
or
loss
upon
settlement
is
recorded.
The
Company
annually
reviews
its
estimated future cash flows for its asset retirement obligations.
(j)
Borrowing costs
Borrowing costs are
recognized as an
expense when they
are incurred, except
for interest charges
attributable
to major projects with substantial development and construction phases which are capitalized
as part of the cost
of the asset. There was
no
interest capitalized during the years ended December
31, 2024 and 2023.
(k)
Leases
From time to
time, the Company
enters into contractual
agreements to
lease property,
plant and equipment.
In
addition, the Company also enters into mining services contracts which may include embedded leases of mining
equipment. Based
upon the
Company’s assessment
of the
terms of
a specific
lease agreement,
the Company
classifies a lease as either finance or operating.
Finance leases
Right of Use, or ROU, assets
related to finance leases are presented
in “Property,
plant and equipment, net” on
the Consolidated Balance
Sheets. Lease
liabilities related
to finance leases
are presented in
“Lease Liabilities”
(current) and “Lease Liabilities” (non-current) on the Consolidated
Balance Sheets.
Finance lease ROU assets and lease liabilities are recognized at the commencement date based on the present
value of the
future lease payments
over the lease
term. The
discount rate used
to determine
the present
value
of the
lease
payments
is the
rate
implicit in
the
lease unless
that
rate cannot
be readily
determined,
in which
case, the
Company utilizes
its incremental
borrowing
rate in
determining the
present value
of the
future lease
payments. The incremental borrowing
rate is the rate
of interest that the
Company would have to
pay to borrow
on
a
collateralized
basis
over
a
similar
term
an
amount
equal
to
the
lease
payments
in
a
similar
economic
environment.
Operating leases
ROU assets
related to
operating leases
are presented
as “Right
of Use
assets -
operating leases,
net” on
the
Consolidated
Balance
Sheets.
Lease
liabilities
related
to
operating
leases
that
are
subject
to
the
ASC
measurement requirements such as operating
leases with lease terms
greater than twelve months are
presented
in “Lease Liabilities” (current) and “Lease Liabilities” (non-current)
on Consolidated Balance Sheets.
Operating lease
ROU assets and
lease liabilities
are recognized at
the commencement date
based on
the present
value of the
future lease payments
over the lease
term. The
discount rate used
to determine
the present
value
of the
lease
payments
is the
rate
implicit in
the
lease unless
that
rate cannot
be readily
determined,
in which
case, the
Company utilizes
its incremental
borrowing
rate in
determining the
present value
of the
future lease
payments. The incremental borrowing
rate is the rate
of interest that the
Company would have to
pay to borrow
on
a
collateralized
basis
over
a
similar
term
an
amount
equal
to
the
lease
payments
in
a
similar
economic
environment. Operating
lease ROU
assets may
also include
any cumulative
prepaid or
accrued rent
when the
lease payments
are uneven
throughout the
lease term.
The ROU
assets and
lease liabilities
may also
include
options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option.
The ROU
asset includes
any lease
payments made
and lease
incentives received
prior to
the commencement
date.
The
Company
has
lease
arrangements
with
lease
and
non-lease
components
which
are
accounted
for
separately.
Non-lease
components
of
the
lease
payments
are
expensed
as
incurred
and
are
not
included
in
determining the present value.
NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS
(Continued)
Coronado Global Resources Inc. Form 10-K December 31,
(l)
Royalties
Lease rights
to coal
lands are
often acquired
in exchange
for royalty
payments. For
our Australian
Operations,
royalties
are
payable
monthly
as
a
percentage
of
the
gross
realization
from
the
sale
of
the
coal
mined
using
surface mining methods
and underground methods.
At our U.S. Operations,
royalties are payable
monthly as a
percentage
of
the
gross
realization
for
coal
produced
using
underground
mining
methods.
Advance
mining
royalties are advance
payments made to
lessors under terms
of mineral lease
agreements that
are recoupable
against
future
production.
The
Company
had
advance
mining
royalties
of
$
9.8
million
and
$
8.9
million
respectively, included
in “Other current assets” as of December 31, 2024
and 2023.
(m) Stanwell Rebate
The Stanwell rebate relates to
a contractual arrangement entered into
by the Company and
Stanwell Corporation
Limited, a State
of Queensland
owned electricity
generator, which
requires payment
of a rebate
for export coal
sold from some of Curragh’s
mining tenements. The rebate obligation is
accounted for as an executory
contract
and the expense is recognized as incurred.
(n)
Revenue Recognition
The Company accounts for
a contract when it
has approval and commitment
from both parties, the
rights of the
parties are identified,
payment terms
are identified,
the contract has
commercial substance
and collectability
of
consideration is probable. Once a contract
is identified, the Company evaluates
whether the combined or single
contract should be accounted for as more than one performance
obligation.
The Company recognizes revenue when
control is transferred to the customer.
For the Company’s contracts,
in
order to determine
the point
in time when
control transfers
to customers, the
Company uses
standard shipping
terms to
determine
the timing
of transfer
of
legal title
and the
significant
risks
and rewards
of ownership.
The
Company also considers other
indicators including timing
of when the Company
has a present right
to payment
and
when
physical
possession
of
products
is
transferred
to
customers.
The
amount
of
revenue
recognized
includes any
adjustments for
variable consideration,
which is
included in
the transaction
price and
allocated to
each
performance
obligation
based
on
the
relative
standalone
selling
price.
The
variable
consideration
is
estimated through the course of the contract using management’s
best estimates.
The majority of
the Company’s revenue is derived
from short term
contracts where the
time between confirmation
of sales orders and collection of cash is not more than
a few months.
Taxes
assessed
by
a
governmental
authority
that
are
both
imposed
on
and
concurrent
with
a
specific
revenue-producing transaction that are collected by the
Company from a customer are excluded from revenue.
Performance obligations
A
performance
obligation
is
a
promise
in
a
contract
to
transfer
a
distinct
good
or
service
to
the
customer.
A
contract’s transaction price is allocated
to each distinct performance obligation
and recognized as revenue
when,
or as, the performance obligation is satisfied.
The Company’s contracts have
multiple performance obligations as the
promise to transfer the individual
unit of
coal
is
separately
identifiable
from
other
units
of
coal
promised
in
the
contracts
and,
therefore,
distinct.
Performance obligations, as described above, primarily relate to the Company’s
promise to deliver a designated
quantity and type of coal within the quality specifications
stated in the contract.
For
contracts
with
multiple
performance
obligations,
we
allocate
the
contract’s
transaction
price
to
each
performance obligation on a relative standalone selling price basis. The
standalone selling price is determined at
each contract inception using
an adjusted market assessment
approach. This approach focuses
on the amount
that the Company believes the market is willing to pay
for a good or service, considering market conditions, such
as benchmark pricing, competitor pricing, market awareness of the product and current market trends that affect
the pricing.
Warranties provided to customers are
assurance-type of warranties on
the fitness of
purpose and merchantability
of the Company’s goods. The Company does not
provide service-type of warranties to customers.
Revenue
is
recognized
at
a
point
in
time
and
therefore
there
were
no
unsatisfied
and/or
partially
satisfied
performance obligations at December 31, 2024 and 2023.
NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS
(Continued)
Coronado Global Resources Inc. Form 10-K December 31,
Shipping and Handling
For Free
on Rail
sales, the
Company accounts
for shipping
and handling
activities as
a separate
performance
obligation after
the customer
obtains control
of the
good. In
this instance,
shipping and
handling costs
paid to
third
party
carriers
and
invoiced
to
coal
customers
are
recorded
as
freight
expense
and
other
revenues,
respectively.
(o)
Commodity Price Risk
The Company has commodity price risk arising from fluctuations
in domestic and global coal prices.
The
Company’s
principal
philosophy
is
not
to
hedge
against
movements
in
coal
prices
unless
there
are
exceptional circumstances.
Any potential hedging of coal prices would be through fixed
price contracts.
The
Company
is
also
exposed
to
commodity
price
risk
related
to
diesel
fuel
purchases.
The
Company
may
periodically enter into arrangements that protect against
the volatility in fuel prices as follows:
•
enter into fixed price contracts to purchase fuel for the U.S. Operations
.
•
enter into derivative financial instruments to hedge exposures to fuel
price fluctuations.
There were
no
derivative contracts outstanding December 31, 2024 and
2023.
(p)
Income Taxes
The Company uses the asset
and liability approach to account
for income taxes as required by
ASC 740, Income
Taxes,
which requires
the
recognition
of deferred
income
tax assets
and
liabilities
for the
expected
future
tax
consequences
attributable
to differences
between
the
financial
statement
carrying
amounts
of
existing
assets
and liabilities and their respective tax bases.
Valuation allowances are provided
when necessary to
reduce deferred income
tax assets to
the amount expected
to be realized, on a more likely than not basis.
The Company recognizes the
benefit of an uncertain
tax position that it has
taken or expects
to take on income
tax
returns
it
files
if
such
tax
position
is
more
likely
than
not
to
be
sustained
on
examination
by
the
taxing
authorities, based on the technical
merits of the position. These tax
benefits are measured based on the
largest
benefit that has a greater than 50% likelihood of being realized
upon ultimate resolution.
The Company’s foreign
structure consists of
Australian entities which
are treated as
corporations subject to
tax
under Australian taxing authorities.
The Australian entities are
treated as a branch for
U.S. tax purposes and
all
income flows through the ultimate parent (the Company).
(q)
Fair Value Measurements
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
principal
or
most
relevant
market.
When
considering
market
participant
assumptions
in
fair
value
measurements,
the
Company
distinguishes
between
observable and unobservable inputs, which are categorized
in one of three levels of inputs.
Refer to Note 22.
“Fair Value
Measurement” for detailed information related to the
Company’s fair value policies
and disclosures.
(r)
Stock-based Compensation
The Company has
a stock-based compensation plan
which allows for
the grant of
certain equity-based incentives
including stock options,
performance stock units,
or PSU, and
restricted stock units,
or RSU, to
employees and
executive
directors,
valued
in
whole
or
in
part
with
reference
to
the
Company’s
CDIs
or
equivalent
common
shares (on a
:1 CDI to common share ratio).
NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS
(Continued)
Coronado Global Resources Inc. Form 10-K December 31,
The grant-date
fair value
of stock
option
award is
estimated on
the
date
of grant
using
Black-Scholes-Merton
option-pricing model. For
certain options and
PSUs, the Company includes
a relative Total
Stockholder Return,
or TSR, modifier to determine the number of shares
earned at the end of the performance period. The
fair value
of awards that include the TSR modifier is determined
using a Monte Carlo valuation model.
The expense for these equity-based incentives is based on their fair value at date of grant and is amortized over
the required service
period, generally the vesting
period. The Company accounts
for forfeitures as
and when they
occur.
Refer to
Note 20.
“Stock-Based Compensation”
for detailed
information related
to the
Company’s
stock-based
compensation plans.
(
s)
(Loss) earnings per Share
Basic earnings per share is computed by dividing net income attributable to stockholders of the Company by the
weighted-average number of shares of common stock
outstanding during the reporting period.
Diluted net income
per share is computed
using the weighted-average
number of shares
of common stock
and
dilutive
potential
shares
of
common
stock
outstanding
during
the
period.
Dilutive
potential
shares
of
common
stock primarily consist of employee stock options and
restricted stock.
(t)
Deferred Debt Issuance Costs
The Company capitalizes costs
incurred in connection with new
borrowings, the establishment or
enhancement
of credit
facilities
and the
issuance
of debt
securities.
These costs
are amortized
as an
adjustment to
interest
expense over the
life of the
borrowing or term
of the credit
facility using the
effective interest
method. Deferred
debt issuance costs related to a recognized liability
are presented in the balance sheet as a
direct reduction from
the carrying amount of that liability whereas debt issuance costs related to a credit facility are shown
as an asset
and amortized
over the
life of
the facility
on a
straight-line basis
and included
in “Interest
expense, net”
in the
Company’s Consolidated Statements of Operations
and Comprehensive Income.
For
information
on
the
unamortized
balance
of
deferred
debt
issuance
costs
related
to
outstanding
debt,
see
Note 14. “Interest Bearing Liabilities”.
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
U.S. 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) and
two
development properties (Mon Valley
and Russell County).
The
Company
operates
its
business
along
two
reportable
segments:
Australia
and
United
States.
The
organization
of
the
two
reportable
segments
reflects
how
Coronado’s
Chief
Executive
Officer
who
is
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 financial reporting and 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 Financial Statements.
NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS
(Continued)
Coronado Global Resources Inc. Form 10-K December 31,
Reportable segment results for the years ended December 31,
2024, 2023 and 2022 are presented below:
(US$ thousands)
Australia
United States
Other and
Corporate
Total
Year ended December 31,
Total
revenues
$
1,594,981
$
912,732
$
-
$
2,507,713
Less:
Mining costs
(1)
(1,054,066)
(629,242)
-
(1,683,308)
Other operating costs
(1)
(538,365)
(141,239)
-
(679,604)
Total
operating costs
(1,592,431)
(770,481)
-
(2,362,912)
Other and unallocated items
(2)
4,982
(35,494)
(29,661)
Segment adjusted EBITDA
3,401
147,233
(35,494)
115,140
Total
assets
1,213,903
1,048,117
255,732
2,517,752
Capital expenditures
89,343
156,401
4,127
249,871
Year ended December 31,
Total
revenues
$
1,681,522
$
1,209,081
$
-
$
2,890,603
Less:
Mining costs
(1)
(1,058,598)
(610,925)
-
(1,669,523)
Other operating costs
(1)
(621,356)
(182,866)
-
(804,222)
Total
operating costs
(1,679,954)
(793,791)
-
(2,473,745)
Other and unallocated items
(2)
5,803
(41,629)
(35,146)
Segment adjusted EBITDA
2,249
421,093
(41,629)
381,713
Total
assets
1,322,610
1,010,199
345,229
2,678,038
Capital expenditures
55,412
171,686
227,758
Year ended December 31,
Total
revenues
$
2,116,555
$
1,454,987
$
-
$
3,571,542
Less:
Mining costs
(1)
(864,616)
(531,812)
-
(1,396,428)
Other operating costs
(1)
(711,170)
(208,128)
-
(919,298)
Total
operating costs
(1,575,786)
(739,940)
-
(2,315,726)
Other and unallocated items
(2)
1,614
(42,245)
(40,192)
Segment adjusted EBITDA
541,208
716,661
(42,245)
1,215,624
Total
assets
1,353,424
1,013,359
183,144
2,549,927
Capital expenditures
89,001
95,769
185,357
(1)
The significant expense category and amount aligns
with the segment-level information that is regularly
provided to the CODM
.
(2)
Other and unallocated items for other and corporate includes
selling, general and administrative expenses.
NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS
(Continued)
Coronado Global Resources Inc. Form 10-K December 31,
The
reconciliation
of
net
income
attributable
to
the
Company
to
the
Adjusted
EBITDA
for
the
years
ended
December 31, 2024, 2023 and 2022 are as follows:
Year Ended December 31,
(US$ thousands)
Consolidated Adjusted EBITDA
$
115,140
$
381,713
$
1,215,624
Depreciation, depletion and amortization
(187,400)
(160,711)
(167,046)
Interest expense, net
(1)
(58,856)
(56,751)
(67,632)
Other foreign exchange gains
(2)
12,339
2,899
32,259
Loss on debt extinguishment
(14,732)
(1,385)
(5,336)
Uncertain stamp duty position
(3)
-
(41,321)
-
Impairment of non-core assets
(4)
(10,585)
-
-
Restructuring costs
(5)
(729)
-
-
Losses on idled assets
(6)
(4,574)
(4,846)
(771)
Decrease (increase) in provision for discounting
and credit losses
4,216
(3,821)
Net (loss) income before tax
$
(149,190)
$
123,814
$
1,003,277
Income tax benefit (expense)
40,309
32,251
(231,574)
Net (loss) income
$
(108,881)
$
156,065
$
771,703
(1)
Includes interest income of $
15.4
million, $
7.6
million, and $
1.5
million for the years ended December 31, 2024,
2023, 2022, respectively.
(2)
Refer to Note 4. “Other, net” for further discussion.
(3)
Relates to stamp duty on Curragh’s acquisition.
Refer to Note 25. “Contingencies” for further
discussion.
(4)
During the year ended December 31, 2024, the
Company recognized an impairment charge of
$
10.6
million against property, plant and equipment
relating to a long-standing non-core idled asset within the U.S. Operations.
This impairment charge was recognized based on a conditional
purchase
offer received and
accepted by
the Company and
is included in
“Other, net” on
the Consolidated
Statement of
Operations and
Comprehensive Income.
At December 31, 2024, satisfaction
of conditions precedent and
completion of the sale remained
uncertain and as such this
idled asset was classified
as held and used. On January 14, 2025, all
substantive conditions were satisfied, and
the sale of this long-standing non-core asset
was completed.
(5)
During the year ended December 31, 2024, a restructuring and cost transformation initiative commenced at the Australian Operations to focus on
repositioning the Company’s efforts to align its cost
structures and optimize its operations.
(6)
These losses relate to care and maintenance
costs of an idled non-core asset that was
sold on January 14, 2025.
The
reconciliations
of
capital
expenditures
per
the
Company’s
segment
information
to
capital
expenditures
disclosed on
the Consolidated
Statements of
Cash Flows
for the
years ended
December
31, 2024,
2023 and
2022 are as follows:
Year ended December 31,
(US$ thousands)
Capital expenditures per Consolidated Statement of
Cash Flows
$
248,142
$
237,205
$
199,716
Net movement in accruals for capital expenditures
12,497
(453)
3,768
Net movement in deposits to acquire long lead capital
(10,768)
(8,994)
(18,127)
Capital expenditures per segment detail
$
249,871
$
227,758
$
185,357
Disaggregation of Revenue
The Company disaggregates the revenue
from contracts with customers by
major product group for each of
the
Company’s
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.
NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS
(Continued)
Coronado Global Resources Inc. Form 10-K December 31,
Year ended December 31, 2024
(US$ thousands)
Australia
United States
Total
Product Groups:
Metallurgical coal
$
1,472,477
$
854,587
$
2,327,064
Thermal coal
87,798
30,000
117,798
Total
coal revenue
1,560,275
884,587
2,444,862
Other
(1)(2)
34,706
28,145
62,851
Total
$
1,594,981
$
912,732
$
2,507,713
Year ended December 31, 2023
(US$ thousands)
Australia
United States
Total
Product Groups:
Metallurgical coal
$
1,557,471
$
1,031,012
$
2,588,483
Thermal coal
88,281
153,925
242,206
Total
coal revenue
1,645,752
1,184,937
2,830,689
Other
(1)(2)
35,770
24,144
59,914
Total
$
1,681,522
$
1,209,081
$
2,890,603
Year ended December 31, 2022
(US$ thousands)
Australia
United States
Total
Product Groups:
Metallurgical coal
$
1,968,173
$
1,394,880
$
3,363,053
Thermal coal
110,345
54,228
164,573
Total
coal revenue
2,078,518
1,449,108
3,527,626
Other
(1)
38,037
5,879
43,916
Total
$
2,116,555
$
1,454,987
$
3,571,542
(1)
Included
in
Other
revenue
for
Australian
Operation
is
the
amortization
of
Stanwell
non-market coal
supply
agreement
liability
recognized on
acquisition of Curragh. See further discussion
in Note 16 “Contract Obligations”.
(2)
Other revenue
for the
U.S. segment
includes $
25.0
million, $
17.5
million and
nil
for the
years ended
December 31,
2024, 2023
and 2022,
respectively,
relating to termination fee revenue from
coal sales contracts cancelled at the U.S. Operations.
Further explanation to tables above:
The following is a description of the principal activities
by reportable segments.
•
The Company primarily offers two types of products to its
customers: metallurgical coal and thermal coal
of
varying
qualities.
The
Company’s
metallurgical
coal
is
classified
as
hard
coking
coal,
further
distinguished by its volatility (defined as high, mid, or low),
and pulverized coal injection.
•
The Australian Operations reportable segment
includes the Curragh mine. The
Australian Operations is
a separate
reportable segment
due to
having separate
management, location,
assets, and
operations.
Curragh
mine,
included
in
the
Australian
Operations,
is
located
in
central
Queensland,
Australia
and
produces a wide variety of metallurgical coal.
•
The United States
reportable segment
includes the Buchanan
and Logan coal
mine facilities located
in
Virginia and West Virginia
in the United States. It produces high, mid and low volatility hard
coking coal.
NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS
(Continued)
Coronado Global Resources Inc. Form 10-K December 31,
4.
Other, net
Other, net consists of the following:
Year ended December 31,
(US$ thousands)
Other foreign exchange gains
(1)
$
12,339
$
2,899
$
32,259
Impairment of non-core assets
(10,585)
-
-
Restructuring costs
(729)
-
-
Other income
2,709
2,865
1,536
Total
Other, net
$
3,734
$
5,764
$
33,795
(1)
Other foreign exchange gains
primarily relates to gains and
losses recognized on
the translation of short-term inter-entity
balances between certain
entities within the Group that are denominated
in currencies other than their respective
functional currencies.
5.
Capital Structure
(a)
Stockholders’ Equity
Authorized capital stock
The Company’s Certificate of Incorporation, as amended, authorize the Company to
issue
1,100,000,000
shares
of $
0.01
par value capital stock consisting of
1,000,000,000
shares of common stock and
100,000,000
shares of
preferred stock.
Common Stock / CDIs
The following table summarizes Common Stock activity
during the periods presented below:
Year Ended December 31,
Shares outstanding at the beginning of the year
167,645,373
167,645,373
167,645,373
Shares issued during the year
-
-
-
Share outstanding at end of the year
167,645,373
167,645,373
167,645,373
A portion of the
Company’s common
stock is publicly
traded on the ASX
under the ticker
“CRN,” in the
form of
CHESS Depositary Interests,
or CDIs. CDIs are units of beneficial ownership in shares of common stock held by
CHESS Depositary Nominees Pty Limited, or CDN,
a wholly-owned subsidiary of ASX Limited,
the company that
operates the ASX.
As each CDI represents one tenth of a share,
holders of CDIs will be entitled to
one
vote for every
CDIs they
hold. CDI
holders
are to
receive
entitlements
which attach
to underlying
shares
such as
participation
in rights
issues, bonus issues, capital reductions and liquidation preferences.
The CDIs entitle
holders to dividends,
if any, and other rights
economically equivalent to
shares of common
stock,
including the right
to attend stockholders’
meetings. CDN, as
the stockholder of
record, will vote
the underlying
shares in accordance with the directions of the CDI holders
.
As of December 31,
2024,
831,392,331
CDIs (representing beneficial
interest in
83,139,233
shares of common
stock) were owned by investors in the form of CDIs publicly
traded on the ASX.
Coronado Group LLC
As
of
December
31,
2024,
Coronado
Group
LLC,
the
Company’s
controlling
stockholder,
beneficially
owns
845,061,399
CDIs (representing a beneficial interest
in
84,506,140
shares of common stock) representing
50.4
%
of
the
total
1,676,453,730
CDIs
(representing
a
beneficial
interest
in
167,645,373
shares
of
common
stock)
outstanding.
Refer to Note 20 “Stock-Based Compensation” for
options to purchase common stock issued
and outstanding as
of December 31, 2024 and 2023.
NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS
(Continued)
Coronado Global Resources Inc. Form 10-K December 31,
Preferred Stock
Coronado Group
LLC holds
one share
of preferred
stock
Series A.
The holder
of Series
A Preferred
Stock
is
permitted
to
nominate
and
elect
members
of
the
Company’s
Board
of
Directors
in
relation
to
the
level
of
the
holder’s
aggregate
beneficial
ownership
of
shares
of
the
Company’s
common
stock.
The
Series
A
Preferred
Share
is
not
entitled
to
dividends
and
is
non-transferable.
The
Series
A
Preferred
Share
has
a
liquidation
preference of $
1.00
.
(b)
Dividends
The dividend
policy
and
the
payment
of future
cash
dividends
are subject
to
the
discretion
of the
Company’s
Board of Directors.
During the year ended December 31, 2024, the Company
declared:
•
Dividends of $
8.4
million, or $
0.005
per CDI ($
0.05
per share of common stock),
on February 19, 2024;
and
•
Dividends of $
8.4
million, or $
0.005
per CDI ($
0.05
per share of common stock), on August 5, 2024.
For
the
year
ended
December
31,
2024,
the
Company
paid
a
total
of
$
16.7
million
to
stockholders
and
CDI
holders on the ASX, net of
$
0.1
million foreign exchange gain on
payment to certain CDI holders
that elected to
be paid in Australian dollars,
in relation to the above declared dividends.
During the year ended December 31, 2023, the Company
declared:
•
Dividends of $
8.4
million, or $
0.005
per CDI ($
0.05
per share of common stock),
on February 21, 2023;
and
•
Dividends of $
8.4
million, or $
0.005
per CDI ($
0.05
per share of common stock), on August 7, 2023.
For
the
year
ended
December
31,
2023,
the
Company
paid
a
total
of
$
16.7
million
to
stockholders
and
CDI
holders on the ASX, net of
$
0.1
million foreign exchange gain on
payment to certain CDI holders
that elected to
be paid in Australian dollars,
in relation to the above declared dividends.
During the year ended December 31, 2022, the Company
declared:
•
Dividends of $
150.9
million, or $
0.09
per CDI ($
0.90
per share of common stock), on February 24, 2022;
•
Dividends of $
200.1
million, or $
0.119
per CDI ($
1.19
per share of common stock), on May 9, 2022;
•
Dividends of $
125.7
million, or $
0.075
per CDI ($
0.75
per share of
common stock),
on August 8,
2022;
and
•
Dividends of $
225.0
million, or $
0.134
per CDI ($
1.34
per share of common stock), on
October 30, 2022.
For
the year
ended December
31, 2022,
the
Company
paid a
total of
$
700.2
million
to stockholders
and CDI
holders on the ASX, net of
$
1.4
million foreign exchange gain on
payment to certain CDI holders
that elected to
be paid in Australian dollars,
in relation to the above declared dividends.
For dividends declared or paid after December 31, 2024,
refer to Note 27 “Subsequent Events”.
(c)
(Loss) 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. During periods in which the Company incurs
a net loss, diluted weighted average shares outstanding
are equal to basic weighted average shares outstanding
because the effect of all equity awards is anti-dilutive.
NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS
(Continued)
Coronado Global Resources Inc. Form 10-K December 31,
Basic and diluted earnings per share was calculated as
follows (in thousands, except per share data):
Year ended December 31,
(US$ thousands, except per share data)
Numerator:
Net (loss) income attributable to Company stockholders
$
(108,881)
$
156,065
$
771,703
Denominator (in thousands):
Weighted-average shares of common stock outstanding
167,645
167,645
167,645
Effects of dilutive shares
-
Weighted average diluted shares of common stock
outstanding
167,645
168,066
167,846
(Loss) Earnings Per Share (US$):
Basic
(0.65)
0.93
4.60
Dilutive
(0.65)
0.93
4.60
6. Trade Receivables, net
The Company
extends trade
credit to
its customers
in the
ordinary course
of business.
Trade
receivables are
recorded initially at fair value and subsequently at amortized
cost, less any ECL.
December 31,
(US$ thousands)
Trade receivables
$
209,289
$
264,218
Provision for discounting and credit losses (Note 7)
(179)
(267)
Trade receivables, net
$
209,110
$
263,951
7. Provision for Discounting and Credit Losses
The following
table provides
the reconciliation
of the
allowance for
credit losses
that is
deducted from
financial
assets to present the net amount expected to be collected:
(US$ thousands)
Trade
receivables
Other
Assets
Total
As at January 1, 2023
$
4,511
$
$
5,077
Change in estimates during the period
(4,244)
(4,216)
As of December 31, 2023
Change in estimates during the period
(88)
(119)
(207)
As of December 31, 2024
$
$
$
8. Inventories
December 31,
(US$ thousands)
Raw coal
$
60,874
$
55,998
Saleable coal
32,633
81,314
Total
coal inventories
93,507
137,312
Supplies inventory
62,236
54,967
Total
inventories
$
155,743
$
192,279
Coal inventories measured at its net realizable value were
$
3.3
million and $
2.4
million at December 31, 2024
and 2023, respectively,
and primarily relates to coal designated for deliveries under
the Stanwell below market
coal supply agreement, or CSA. See further discussion
in Note 16. “Contract Obligations”.
NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS
(Continued)
Coronado Global Resources Inc. Form 10-K December 31,
9.
Other Assets
December 31,
(US$ thousands)
Other current assets:
Prepayments
$
40,465
$
34,175
Long service leave receivable
7,193
8,438
Tax
credits receivable
4,004
3,265
Deposits to acquire mining equipment
37,888
18,935
Short-term deposits
-
21,906
Other
20,725
16,890
Total
other current assets
$
110,275
$
103,609
Other non-current assets:
Favorable mineral leases
$
3,285
$
3,310
Deferred debt issue costs
1,527
2,672
Long service leave receivable
1,530
1,485
Tax
credits receivable
-
4,004
Deposits to acquire long lead mining equipment
-
8,185
Total
other non-current assets
$
6,342
$
19,656
The Company
has other assets
which includes prepayments,
favorable mineral leases,
deferred debt issue
costs,
long service leave receivable
,
equipment deposits, short
term deposits and coalfield
employment enhancement
tax credit receivable.
Long service leave for
eligible coal mine workers
at the Company’s
Australian Operations is
paid when leave is
taken, with a subsequent
reimbursement received from
the Coal Mining Industry
(Long Service Leave Funding)
Corporation
in
Queensland,
Australia.
The
reimbursement
entitlement
is
recognized
as
a
receivable
and
is
measured as
the present
value of
expected future
reimbursements to
be received
for the
corresponding leave
liability recognized.
The Company
recognized tax
credits receivable
relating to
the Virginia
coalfield employment
enhancement tax
credit for
coal sales
from the
Company’s
mining properties
in the
State of
West
Virginia in
the U.S.
during the
to
income
years.
Where
the
credits
exceed
the
Company’s
state
tax
liability
for
the
tax
year,
the
excess is redeemable by the
Tax
Commissioner on behalf of
the Commonwealth of Virginia
for
% of the face
value
within
days
after
filing
the
return.
The
tax
credits
allowed
can
be
claimed
in
the
third
taxable
year
following the taxable year in which the credit was earned and
allowed.
Deposits to acquire mining equipment
are advance payments made for
the purchase of future mining
equipment,
some of which relate to mining equipment expected to
be delivered beyond the next twelve months.
Short-term deposits were term deposits held with financial institutions with maturity greater than ninety days and
less than twelve months and that did not meet the cash and
cash equivalents criteria.
The favorable mineral leases were recognized on acquisition of certain U.S. assets
that are amortized based on
the
coal
tonnage
removed
from
the
lease
property
relative
to
the
total
estimated
acquired
reserves
on
that
property.
The deferred debt issue costs as of December 31, 2024 and
December 31, 2023, are unamortized costs relating
to the
establishment of
the senior
secured asset-based
revolving credit facilities
(refer to
Note 14
“Interest Bearing
Liabilities” for further
description of these
facilities). The deferred
debt issue costs
are amortized over
the life of
the
facility
on
a
straight-line
basis
and
included
in
“Interest
expense,
net”
in
the
Company’s
Consolidated
Statements of Operations and Comprehensive Income
.
NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS
(Continued)
Coronado Global Resources Inc. Form 10-K December 31,
10.
Property, Plant and
Equipment
The following
table indicates
the carrying
amount of
each of
the major
classes of
the Company’s
consolidated
depreciable assets:
December 31,
(US$ thousands)
Land
$
28,130
$
28,282
Buildings and improvements
123,662
102,642
Plant, machinery, mining
equipment and transportation vehicles
1,259,620
1,189,088
Mineral rights and reserves
379,065
389,868
Office and computer equipment
9,654
9,771
Mine development
550,110
579,717
Asset retirement obligation asset
90,318
88,384
Construction in progress
190,124
143,041
Total
cost of property,
plant and equipment
2,630,683
2,530,793
Less accumulated depreciation, depletion and amortization
1,123,553
1,024,356
Property, plant and
equipment, net
$
1,507,130
$
1,506,437
The amount of depreciation and amortization expense
for property, plant
and equipment for the years ended
December 31, 2024, 2023 and 2022 was $
175.4
million, $
152.4
million and $
155.8
million, respectively.
11.
Accrued Expenses and Other Current Liabilities
Accrued expenses and other current liabilities consist of the
following:
December 31,
(US$ thousands)
Wages and employee benefits
$
39,457
$
42,348
Taxes
other than income taxes
6,062
6,728
Accrued royalties
36,111
45,770
Accrued freight costs
33,071
47,549
Accrued mining fees
84,538
89,622
Acquisition related accruals
-
53,700
Other liabilities
7,559
26,988
Total
accrued expenses and other current liabilities
$
206,798
$
312,705
Acquisition related accruals
of $
53.7
million (A$
79.0
million) as at December
31, 2023, related to
the remaining
estimated stamp duty payable on the Curragh acquisition. On March 6, 2024, the Company paid the outstanding
assessed
stamp
duty
and
tax
interest
to
the
Queensland
Revenue
Office,
or
QRO.
Refer
to
Note
“Contingencies” for further details.
12. Leases
During the year ended December 31,
2024, the Company entered into a
number of agreements to lease
mining
equipment.
Based
on
the
Company’s
assessment
of
terms
within
these
agreements,
the
Company
classified
these leases as
operating leases. On
mobilization of th
ese leased mining
equipment, the Company
recognized
ROU assets and operating lease liabilities of $
44.2
million.
On April 1,
2024, the Company
extinguished
one
of its mining
services contracts for
mining and equipment
assets
used to provide mining
services. On extinguishment,
ROU assets of $
11.3
million and operating
lease liabilities
of $
12.1
million were derecognized.
On September 1, 2024,
the Company modified
one
of its mining equipment
lease contracts to
extend the lease
term. Upon modification,
the Company recognized
additional ROU assets
and operating lease
liabilities of $
6.4
million.
NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS
(Continued)
Coronado Global Resources Inc. Form 10-K December 31,
As of December
31, 2024,
there are additional
operating leases
of mining
equipment, which have
not yet been
mobilized, that
have
a present
value
of minimum
lease
payments of
$
9.9
million.
These operating
leases
are
expected to commence within the next
months with lease terms of not more than
five years
.
Information related to Company’s right-of use
assets and related lease liabilities are as follows:
Year ended December 31,
(US$ thousands)
Operating lease costs
$
28,619
$
17,013
Cash paid for operating lease liabilities
21,050
14,597
Finance lease costs:
Amortization of right of use assets
Interest on lease liabilities
Total
finance lease costs
$
$
December 31,
(US$ thousands)
Assets:
Operating leases
Right of use asset - operating leases, net
$
90,143
$
80,899
Finance leases
Property and equipment
-
Accumulated depreciation
-
(309)
Property and equipment, net
-
Current operating lease obligations
19,502
22,811
Non-current operating lease obligations
74,241
61,692
Total
Operating lease liabilities
93,743
84,503
Liabilities:
Current finance lease obligations
-
Total
Finance lease liabilities
-
Current lease obligations
19,502
22,879
Non-current lease obligations
74,241
61,692
Total
lease obligations
$
93,743
$
84,571
December 31,
Weighted Average Remaining
Lease Term (Years)
Weighted average remaining lease term - finance
leases
-
0.5
Weighted average remaining lease term - operating
leases
4.3
3.7
Weighted Average Discount
Rate
Weighted discount rate - finance lease
-
7.6%
Weighted discount rate - operating lease
9.3%
9.0%
NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS
(Continued)
Coronado Global Resources Inc. Form 10-K December 31,
The Company’s leases
have remaining lease
terms of
one year
to
four years
, some of which
include options to
extend the terms where
the Company deems
it is reasonably certain
the options will be
exercised. Maturities of
lease liabilities as at December 31, 2024, are as follows:
(US$ thousands)
Operating
Lease
Year ending
December 31,
$
26,980
26,801
25,842
23,292
10,001
Total
lease payments
112,916
Less imputed interest
(19,173)
Total
lease liability
$
93,743
13.
Asset Retirement Obligations
Reclamation of
areas disturbed
by mining
operations
must be
performed
by the
Company in
accordance
with
approved
reclamation
plans
and
in
compliance
with
state
and
federal
laws
in
the
states
of
West
Virginia
and
Virginia
in
the
United
States
and
Queensland
in
Australia.
For
areas
disturbed,
reclamation
is
performed
progressively,
however,
a
significant
amount
of
the
reclamation
will
take
place
in
the
future
when
operations
cease. There were
no
assets that were
legally restricted for
purposes of settling asset
retirement obligations as
of December 31,
2024 and 2023.
In addition, state
agencies monitor
compliance with the
mine plans, including
reclamation.
The Company records the fair value
of its asset retirement obligations using the present
value of projected future
cash flows, with
an equivalent amount
recorded in the
related long lived
asset or a
change to the
Consolidated
Statements of Operations
if the related
permit is closed.
An accretion cost,
representing the
increase over time
in the present value of
the liability, is recorded each period and the capitalized cost is
depreciated over the useful
life of the related asset. As reclamation work is performed or liabilities
otherwise settled, the recorded amount of
the liability is reduced.
Changes in
the asset
retirement obligations
for the
years ended
December 31,
2024 and
December 31,
were as follows:
(US$ thousands)
December 31,
December 31,
Total
asset retirement obligations at beginning of the year
$
163,929
$
138,490
ARO liability additions - new disturbances
1,997
9,923
Accretion
15,324
11,252
Reclamation performed in the year
(9,724)
(5,334)
Reclass of asset held for sale
-
11,115
Change in estimate recorded to operations
(3,523)
(3,151)
Change in estimate recorded to assets
5,937
Foreign currency translation adjustment
(9,142)
Total
asset retirement obligations at end of the year
164,798
163,929
Less current portion
(15,523)
(15,321)
Asset retirement obligation, excluding current portion
$
149,275
$
148,608
NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS
(Continued)
Coronado Global Resources Inc. Form 10-K December 31,
14. Interest Bearing Liabilities
The following is a summary of interest-bearing liabilities
at December 31, 2024:
(US$ thousands)
December 31,
December 31,
Weighted Average
Interest Rate at
December 31, 2024
Final
Maturity
10.75
0% Senior Secured Notes
$
-
$
242,326
12.14
%
(2)
9.25
0% Senior Secured Notes
400,000
-
9.99
%
(2)
ABL Facility
-
-
Loan - Curragh Housing Transaction
24,472
-
14.14
%
(2)
Discount and debt issuance costs
(1)
(12,165)
(6,983)
Total
interest bearing liabilities
412,307
235,343
Less: current portion
(1,363)
-
Non-current interest-bearing liabilities
$
410,944
$
235,343
(1)
Relates to discount and
debt issuance costs in
connection with the 2029
Notes, 2026 Notes and
Curragh Housing Transaction (as defined
below). Deferred debt
issuance costs incurred
in connection with
the establishment of
the ABL Facility
have been included
within "Other non-
current assets" in the Consolidated Balance Sheets.
(2)
Represent the
effective interest
rate. The
effective interest
is higher
than the
implied interest
rate as
it incorporates
the effect
of debt
issuance costs and discount, where applicable.
10.750% Senior Secured Notes due in 2026
On October 2,
2024, the Company
completed a refinancing
initiative (as explained
below) and redeemed
in full
all
of
the
outstanding
10.750
%
Senior
Secured
Notes
due
2026,
or
the
Notes,
of
$
242.3
million.
The
redemption price of the 2026 Notes
was $
252.1
million, equivalent to
104.03
% of the aggregate principal amount
thereof,
plus
accrued
and
unpaid
interest,
to,
but
excluding
the
repurchase
date.
In
connection
with
the
extinguishment of the 2026 Notes, the Company recognized
$
14.7
million loss on early extinguishment of debt.
9.250% Senior Secured Notes due in 2029
On
October
2,
2024,
the
Company,
entered
into
an
indenture,
among
Coronado
Finance
Pty
Ltd,
as
issuer,
Coronado
Global
Resources
Inc,
as
guarantor,
the
subsidiaries
of
Coronado
Global
Resources
Inc,
named
therein, as
additional
guarantors,
Wilmington
Trust,
National Association,
as trustee
and priority
lien collateral
trustee, or
the Indenture,
relating to
the issuance
by the
Issuer of
$
400.0
million aggregate
principal amount
of
9.250
% Senior Secured Notes due 2029, or the 2029 Notes.
The 2029 Notes were issued at par and bear interest at a rate of
9.250
% per annum. Interest on the 2029 Notes
is payable semi-annually in arrears on
April 1 and October 1 of each year,
commencing April 1, 2025. The 2029
Notes mature on October 1, 2029 and are senior secured
obligations of the Issuer.
The
Notes
are
guaranteed
on
a
senior
secured
basis
by
the
Company
and
certain
of
the
Company’s
subsidiaries that guarantee or
is a borrower
under the Company’s ABL
Facility (as defined below)
or certain other
debt and secured by (i) a
first-priority lien on substantially
all of the assets of
the Company and each
Guarantor
(other
than
accounts
receivable
and
certain
other
rights
to
payment,
inventory,
certain
investment
property,
certain general
intangibles and
commercial tort
claims, deposit
accounts, securities
accounts and other
related
assets, chattel paper,
letter of credit rights, certain
insurance proceeds, intercompany
indebtedness and certain
other assets related to the
foregoing and proceeds and
products of each of the
foregoing (collectively,
the “ABL
Priority Collateral”))
and (ii) a
second-priority lien
on the
ABL Priority
Collateral, which
is junior
to a
first-priority
lien for the
benefit of the
lenders and other
creditors under
the Company’s
asset-based revolving
credit facility,
dated as of May 8, 2023, in each case, subject to certain
exceptions and permitted liens.
The Company
used the
net proceeds
from the
2029 Notes
to redeem
all of
the Company’s
2026 Notes
and to
pay related fees and expenses in connection with the offering of the 2029 Notes and the redemption of the 2026
Notes, and the Company intends to use the remaining
net proceeds for general corporate purposes.
The terms
of the
2029 Notes
are governed
by the
Indenture. The
Indenture contains
customary covenants
for
high
yield
bonds,
including,
but
not
limited
to,
limitations
on
investments,
liens,
indebtedness,
asset
sales,
transactions with affiliates and restricted payments,
including payment of dividends on capital stock.
NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS
(Continued)
Coronado Global Resources Inc. Form 10-K December 31,
Upon the occurrence of a “Change of Control Triggering Event”, as defined in the Indenture as the occurrence of
Change of Control or Rating Decline, the Issuer is required to offer to repurchase the 2029 Notes at
% of the
aggregate principal
amount thereof,
plus accrued
and unpaid
interest, if
any,
to, but
excluding, the
repurchase
date. The Issuer also has the right
to redeem the 2029 Notes at
% of the aggregate principal amount thereof,
plus accrued
and unpaid
interest,
if any,
to, but
excluding,
the repurchase
date,
following the
occurrence
of a
Change of
Control Triggering Event, provided
that the Issuer
redeems at least
% of
the 2029 Notes
outstanding
prior to
such Change of
Control Triggering Event.
Upon the
occurrence of
certain changes in
tax law
(as described
in the
Indenture), the
Issuer may redeem
all of
the 2029 Notes
at a
redemption price equal
to
% of
the principal
amount
of
the
Notes
to
be
redeemed
plus
accrued
and
unpaid
interest,
if
any,
to,
but
excluding,
the
redemption date.
The Issuer may redeem any of the 2029 Notes beginning on October 1, 2026. The initial redemption price
of the
2029 Notes is
104.625
% of their principal amount, plus accrued and unpaid
interest, if any,
to, but excluding the
redemption
date.
The
redemption
price
will
decline
each
year
after October
1,
2026, and
will
be
% of
the
principal amount of the 2029 Notes, plus accrued and unpaid interest, beginning on October 1, 2028. The Issuer
may also redeem
up to
% of the
aggregate principal amount
the 2029 Notes
on one or more
occasions prior
to October 1, 2026
at a price
equal to
109.250
% of the
principal amount thereof
plus a “make-whole”
premium,
plus accrued and unpaid interest, if any,
to, but excluding, the redemption date.
At any time and from
time to time on
or prior to October
1, 2026, the Issuer
may redeem in the
aggregate up to
% of the original aggregate
principal amount of the
2029 Notes (calculated after
giving effect to any
issuance
of
additional
Notes)
with
the
net
cash
proceeds
of
certain
equity
offerings,
at
a
redemption
price
of
109.250
%, plus
accrued and
unpaid interest,
if any,
to, but
excluding, the
redemption date,
so long
as at
least
%
of
the
aggregate
principal
amount
of
the
Notes
(calculated
after
giving
effect
to
any
issuance
of
additional 2029
Notes)
issued under
the Indenture
remains outstanding
after each
such redemption
and each
such redemption occurs within
days after the date of the closing of such equity
offering.
The
Indenture
contains
customary
events
of
default,
including
failure
to
make
required
payments,
failure
to
comply with certain agreements
or covenants, failure to
pay or acceleration of
certain other indebtedness, certain
events of
bankruptcy and
insolvency, and failure to
pay certain
judgments. An
event of
default under
the Indenture
will allow either the Trustee or the holders
of at least
% in aggregate principal amount of the then-outstanding
2029 Notes to
accelerate, or in
certain cases, will automatically
cause the acceleration
of, the amounts due
under
the 2029 Notes.
As of December 31, 2024, the
Company was in compliance with
all applicable covenants under the
2029 Notes
Indenture.
The
carrying
value
of
debt
issuance
costs,
recorded
as
a
direct
deduction
from
the
face
amount
of
the
Notes, were $
11.1
million as at December 31, 2024.
Asset Based Revolving Credit Facility
On May
8, 2023,
the Company,
Coronado Coal
Corporation, a Delaware
corporation and wholly
owned subsidiary
of the Company,
Coronado Finance Pty
Ltd, an Australian
proprietary company
and a wholly
owned subsidiary
of the Company,
or an Australian
Borrower, Coronado
Curragh Pty Ltd,
an Australian proprietary
company and
wholly
owned
subsidiary
of
the
Company,
or
an
Australian
Borrower
and,
together
with
the
other
Australian
Borrower, the Borrowers,
and the other guarantors party
thereto, collectively with the Company,
the Guarantors
and, together
with the
Borrowers, the
Loan Parties,
entered into
a senior
secured asset-based
revolving credit
agreement in an
initial aggregate amount
of $
150.0
million, or the
ABL Facility, with Global Loan
Agency Services
Australia Pty Ltd, as the Administrative Agent, Global
Loan Agency Services Australia Nominees Pty Ltd,
as the
Collateral Agent, the Hongkong and Shanghai Banking Corporation Limited, Sydney Branch, as the Lender, and
DBS Bank Limited,
Australia Branch, as
the Lender and,
together with the
other Lender,
the Lenders. The
ABL
Facility became effective on August 3, 2024, when
conditions precedent were satisfied.
The ABL Facility matures in August 2026 and provides for up to $
150.0
million in borrowings, including a $
100.0
million
sublimit
for
the
issuance
of
letters
of
credit
and
$
70.0
million
sublimit
as
a
revolving
credit
facility.
Availability
under
the
ABL
Facility
is
limited
to
an
eligible
borrowing
base,
determined
by
applying
customary
advance rates to eligible accounts receivable and inventory.
Borrowings under
the ABL
Facility bear
interest at
a rate
per annum
equal to
an applicable
rate of
2.80
% plus
Bank Bill
Swap Bid
Rate
for
loans denominated
in A$,
or
the Secured
Overnight
Finance
Rate,
or
SOFR,
for
loans denominated in US$, at the Borrower’s election.
NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS
(Continued)
Coronado Global Resources Inc. Form 10-K December 31,
The
ABL
Facility
contains
customary
representations
and
warranties
and
affirmative
and
negative
covenants
including, among
others, a
covenant regarding
the maintenance
of leverage
ratio to
be less
than
3.00
times, a
covenant regarding maintenance of interest coverage ratio to be more than
3.00
times, covenants relating to the
payment of dividends, or purchase or redemption of, with respect to any Equity Interests of Holdings or
any of its
Subsidiaries,
covenants
relating
to
financial
reporting,
covenants
relating
to
the
incurrence
of
liens
or
encumbrances, covenants relating to the incurrence or prepayment of certain debt, compliance with laws, use of
proceeds, maintenance of properties, maintenance of insurance, payment obligations, financial accommodation,
mergers and
sales of all
or substantially all
of the Borrowers
and Guarantors’, collectively
the Loan Parties,
assets
and limitations on changes in the nature of the Loan Parties’
business.
As
of
December
31,
2024,
the
letter
of
credit
sublimit
had
been
partially
used
to
issue
$
21.4
million
of
bank
guarantees on
behalf of
the Company
and
no
amounts were
drawn under
the revolving
credit sublimit
of ABL
Facility.
On
December
30,
2024,
the
Company
completed
an
agreement,
or
the
Waiver
Agreement,
with
the
Administrative
Agent
under
the
ABL
Facility
to
temporarily
waive
compliance
with
the
ABL
Facility’s
interest
coverage
ratio
covenant
between
December
31,
to
March
30,
2025,
or
the
waiver
period.
Pursuant
the
Waiver Agreement, the
Company will be
required to maintain
an aggregate cash
balance of at
least $
100.0
million
in one
or more
accounts
with the
Lenders,
or the
Cash
Balance
Covenant,
until
such
time that
the
Company
submit a
covenant compliance
certificate
to the
Lenders
pursuant to
the ABL
Facility
which
demonstrates
the
Company is
in compliance
with the
interest coverage
ratio covenant.
The Cash
Balane Covenant
applies from
the time the Company submits
the covenant compliance certificate
for December 31, 2024,
which is anticipated
to be on or after February 19, 2025.
At the end
of the waiver
period, unless
further waivers
are obtained,
any breach
of covenants
would constitute
an event
of default
under the
terms of
the ABL
Facility and
the Lenders
shall declare
all amounts
owing under
the ABL
Facility
immediately
due and
payable,
terminate
such
Lenders’
commitments
under
the
ABL Facility,
require the
Borrowers to
cash collateralize
any letter
of credit
obligations and/or
exercise any
and all
remedies
and other rights under the ABL Facility.
As of December 31, 2024, except for the interest coverage ratio covenant, the Company was in compliance with
all other applicable covenants.
Under the terms of the
ABL Facility,
a Review Event (as defined
in the ABL Facility)
is triggered if, among other
matters, a “change of control” (as defined in the ABL Facility)
occurs.
Following the
occurrence of
a Review
Event, the
Borrowers must
promptly meet
and consult
in good
faith with
the Administrative Agent and the Lenders to agree a
strategy to address the relevant Review Event including but
not limited
to a
restructure of
the terms
of the
ABL Facility
to the
satisfaction of
the Lenders.
If at
the end
of a
period of
business days after the occurrence of
the Review Event, the Lenders are
not satisfied with the result
of their
discussion or
meeting with
the Borrowers
or do
not wish
to continue
to provide
their commitments,
the
Lenders may
declare all
amounts
owing under
the ABL
Facility
immediately due
and payable,
terminate such
Lenders’
commitments
under
the
ABL
Facility,
require
the
Borrowers
to
cash
collateralize
any
letter
of
credit
obligations and/or exercise any and all remedies and
other rights under the ABL Facility.
The carrying value of
debt issuance costs,
recorded as “Other
non-current assets” in
the Consolidated Balance
Sheet was $
1.5
million and $
2.7
million as of December 31, 2024 and December 31,
2023, respectively.
Loan - Curragh Housing Transaction
On
May
16,
2024,
the
Company
completed
an
agreement
for
accommodation
services
and
the
sale
and
leaseback
of
housing
and
accommodation
assets
with
a
regional
infrastructure
and
accommodation
service
provider, or collectively, the Curragh Housing
Transaction. Refer to Note
15 “Other Financial
Liabilities” for further
information.
In connection with the Curragh Housing Transaction, the
Company borrowed $
26.9
million (A$
40.4
million) from
the same
regional
infrastructure
and accommodation
service provider.
This amount
was recorded
as “Interest
Bearing
Liabilities”
in
the
Consolidated
Balance
Sheet.
The
amount
borrowed
is
payable
in
equal
monthly
installments
over
a
period
of
ten years
,
with
an
effective
interest
rate
of
14.14
%.
The
Curragh
Housing
Transaction loan is not subject to any
financial covenants.
The carrying value of the loan, net of issuance costs of $
1.1
million, was $
23.4
million as of December 31, 2024,
$
1.5
million of which is classified as a current liability.
NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS
(Continued)
Coronado Global Resources Inc. Form 10-K December 31,
15.
Other Financial Liabilities
The following is a summary of other financial liabilities:
(US$ thousands)
December 31,
December 31,
Collateralized financial liabilities payable to third-party financing
companies
$
4,898
$
8,302
Collateralized financial liabilities - Curragh Housing Transaction
20,959
-
Debt issuance costs
(988)
(170)
Total
Other financial liabilities
24,869
8,132
Less: current portion
5,988
2,825
Other non-current financial liabilities
$
18,881
$
5,307
Collateralized financial liabilities - Curragh Housing Transaction
The Curragh
Housing Transaction
did not
satisfy the
sale criteria
under Accounting
Standards Codification,
or
ASC, 606
-
Revenues from
Contracts with
Customers
and was
deemed a
financing arrangement.
As a
result,
proceeds of $
23.0
million (A$
34.6
million) received for
the sale and leaseback
of property,
plant and equipment
owned by the
Company in connection
with the Curragh
Housing Transaction were recognized
as “Other Financial
Liabilities” on
the Company’s
Consolidated Balance
Sheet. The
term of
the financing
arrangement is
ten years
with an
effective
interest rate
of
14.14
%. This
liability will
be settled
in equal
monthly payments
as part
of the
accommodation services arrangement.
In line
with the
Company’s capital
management strategy,
the Curragh
Housing Transaction
provides additional
liquidity. In
addition, the accommodation services component
of the Curragh Housing Transaction
is anticipated
to enhance the level of accommodation services
for our employees at our Curragh Mine.
In
connection
with
the
Curragh
Housing
Transaction,
the
Company
granted
the
counterparty
mortgages
over
certain
leasehold
and
freehold
land.
The
counterparty’s
rights
are
subject
to
a
priority
deed
in
favor
of
the
Company’s
senior
secured
parties
including,
but
not
limited
to,
holders
of
the
Notes,
lenders
under
the
ABL
Facility and Stanwell.
The carrying value
of this financial
liability, net of issuance costs
of $
0.9
million, was $
20.0
million as at
December
31, 2024, $
1.2
million of which is classified as a current liability.
Collateralized financial liabilities payable to third-party financing
companies
On January 6,
2021, the Company
entered into
an agreement
with a third-party
financier to sell
and leaseback
items of
property,
plant and
equipment owned
by Coronado
Curragh Pty
Ltd, a
wholly-owned subsidiary
of the
Company.
The
transaction
did
not
satisfy
the
sale
criteria
under
ASC
-
Revenues
from
Contracts
with
Customers. As a
result, the transaction
was deemed a
financing arrangement and
the Company has
continued
to recognize
the underlying
property,
plant and
equipment
on the
Consolidated
Balance Sheet.
The proceeds
received from the
transaction of $
23.5
million (A$
30.2
million) were recognized
as “Other financial
liabilities” on
the Consolidated
Balance Sheet.
The remaining
term of
the financing
arrangement is
one year
with an
implied
interest rate of
8.1
% per annum.
16. Contract Obligations
In
connection
with
the
acquisition
of
the
Logan
assets,
the
Company
assumed
certain
non-market
contracts
related to various
coal leases.
The non-market
coal leases
require royalty
payments based on
a percentage
of
the
realization
from
the
sale
of
the
respective
coal
under
lease.
On
acquisition,
the
Company
recorded
$
27.3
million related to the non-market
portion of the coal leases
and is amortizing it ratably
over the respective
estimated coal reserves as they are mined and sold.
In connection with
the acquisition of Curragh,
the Company assumed the
Stanwell below market CSA
with a fixed
pricing
component
that
was
below the
market
price
at
the
date
of
acquisition.
As
a result,
on
acquisition,
the
Company recorded a liability of $
307.0
million (A$
400.0
million) related to the unfavorable pricing of the Stanwell
below market CSA
and is amortizing
it ratably based
on the tons sold
through the contract.
The amortization of
this liability for the years ended December
31, 2024, 2023 and 2022 were $
31.1
million, $
32.8
million and $
36.2
million,
respectively,
and
recorded
as
“Other
revenues”
in
the
Consolidated
Statements
of
Operations
and
Comprehensive Income.
NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS
(Continued)
Coronado Global Resources Inc. Form 10-K December 31,
The following is a summary of the contract obligations
as of December 31, 2024:
(US$ thousands)
Short-term
Long-term
Total
Coal leases contract liability
$
$
19,156
$
19,999
Stanwell below market coal supply agreement
36,247
8,616
44,863
$
37,090
$
27,772
$
64,862
The following is a summary of the contract obligations
as of December 31, 2023:
(US$ thousands)
Short-term
Long-term
Total
Coal leases contract liability
$
$
19,476
$
20,319
Stanwell below market coal supply agreement
39,879
41,716
81,595
$
40,722
$
61,192
$
101,914
17.
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
“Mineral
rights
and
reserves”
asset
and
a
corresponding
deferred
consideration liability of $
155.2
million (A$
210.0
million), calculated using the contractual pre-tax discount rate of
% representing
fair
value
of
the
arrangement
at
the
date
of
acquisition.
The
deferred
consideration
liability
reflects passage of
time changes by
way of an annual
accretion at the
contractual pre-tax discount
rate of
%
and will
be settled
as a
discount to
the price
of thermal
coal supplied
to Stanwell
over the
term of
a New
Coal
Supply Agreement
which is
expected to
commence in
2027. The
accretion of
deferred consideration
liability is
recognized
within
“Interest
expense,
net”
in
the
Consolidated
Statements
of
Operations
and
Comprehensive
Income. The Right-to-mine-asset are amortized over the
coal reserves mined from the SRA.
December 31,
(US$ thousands)
Stanwell Reserved Area deferred consideration
$
285,050
$
277,442
$
285,050
$
277,442
18.
Workers’ Compensation and Pneumoconiosis (“Black
Lung”) Obligations
In
the
United
States,
coal
mine
operations
may
lead
to
traumatic
workers
compensation
claims,
as
well
as
workers’ compensation occupational disease claims
for black lung disease. Injured workers generally
file claims
for traumatic injury under
the governing state workers
compensation legislation. Workers
may file claims due
to
black
lung
under
the
governing
state
workers
compensation
legislation
or
under
a
series
of
federal
laws
that
include the Federal Coal Mine Health and Safety Act of 1969, as amended, the Black Lung Benefits Act of 1973,
and
the
Black
Lung
Benefits
Reform
Act
of
1977.
The
Company
provides
for
both
traumatic
workers
compensation claims and occupational disease claims
through an insurance policy.
The Company obtained workers
compensation insurance for work
related injuries, including black
lung, through
a third-party
commercial
insurance company.
The insurance
policy covers
claims
that exceed
$
0.5
million
per
occurrence for all years, or aggregate claims in excess
of $
29.1
million and $
22.7
million for policy years ending
May 2024 and May 2023, respectively.
Per the contractual agreements, the Company was required to provide
a
collateral
security
of
$
66.8
million
for
policy
years
through
2025,
ending
May 31,
2025,
which
is
accomplished through providing a combination of letters of credit and
cash collateral in an escrow account. As of
December 31, 2024, the Company
has provided $
16.8
million of letters of credit,
$
29.7
million of cash collateral
and surety bonds of $
20.3
million totaling $
66.8
million.
For the
years ended
December 31, 2024,
2023 and
2022, the
audited Consolidated
Statements of
Operations
and
Comprehensive
Income
included
Company
incurred
claims,
premium
expenses
and
administrative
fees
related
to
worker’s
compensation
benefits
of
$
8.9
million,
$
16.3
million
and
$
12.2
million,
respectively.
As
of
December 31, 2024 and 2023, the estimated workers’ compensation liability
was $
39.1
million and $
37.6
million,
respectively, representing claims incurred but not paid based on
the estimate of the
outstanding claims under the
coverage
limits
and
the
actuarially
determined
retained
liability
under
the
aggregate
claim
amount.
As
of
December
31,
and
2023,
$
34.4
million
and
$
32.6
million,
respectively,
are
recorded
within
“Other
non-
current liabilities” in the Consolidated Balance Sheets.
The current portion of the Company’s estimated
workers’
compensation liabilities are
recorded within “Accrued
expenses and other
current liabilities” in the
Consolidated
Balance Sheets.
NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS
(Continued)
Coronado Global Resources Inc. Form 10-K December 31,
19.
Employee Benefit Plans
The
Company
has
a
401(k)-defined
contribution
plan
in
which
all
U.S.
full
time
employees
are
eligible
to
participate
upon
their
date
of
hire.
Employees
generally
may
contribute
up
to
%
of
their
qualifying
compensation
subject
to
statutory
limitations.
The
Company
matches
up
to
%
up
to
the
first
%
of
the
participant’s annual compensation
for all employees except
for those employed at Buchanan.
For employees at
Buchanan,
the
Company
matches
up
to
%
of
the
first
%
of
the
participant’s
annual
compensation.
The
Company’s contributions immediately
vest. Total Company contributions for
the years
ended December
31, 2024,
2023 and 2022 amounted to $
5.9
million, $
5.5
million and $
3.9
million, respectively.
In the United States, the Company is self-insured for
employee health care claims up to the lesser of $
0.2
million
per
covered
person
or
an
aggregate
amount
depending
on
the
various
coverages
provided
to
employees
throughout the plan year
for all employees. The
Company has purchased coverage from
a commercial insurance
carrier to provide for any claims
in excess of these amounts. At
December 31, 2024 and 2023, the Company had
provided
accruals
of
$
2.7
million
and
$
2.3
million,
respectively,
for
claims
incurred
but
not
paid
based
on
management’s estimate
of the Company’s
self-insured liability.
For the years
ended December
31, 2024, 2023
and 2022, the Company incurred claims,
premium expenses and administrative fees
related to this plan totaling
$
40.2
million, $
35.0
million and $
29.8
million, respectively.
20.
Stock-Based Compensation
Total
stock-based
compensation
expense
was
$
2.1
million,
$
2.9
million
and
$
2.7
million
for
the
years
ended
December 31,
2024,
and
2022,
respectively,
and
was
included
as a
component
of
selling,
general,
and
administrative expenses in the Company’s Consolidated Statements of Operations and Comprehensive Income.
The stock-based compensation expense includes
compensation expense recognized in full
at the grant date for
employees that meet certain retirement eligibility criteria
per the 2018 Plan (as defined below).
As
of
December 31,
2024,
the
Company
had
$
4.3
million
of
total
unrecognized
compensation
cost
related
to
nonvested stock-based
compensation awards
granted under
the plans.
This cost
is expected to
be recognized
over
2.25
years,
with
a
weighted-average
period
of
1.32
years,
as
stock-based
compensation
expense.
This
expected cost does not include the impact of any future stock-based
compensation awards.
a) 2018 Equity Incentive Plan
In
connection
with
the
completion
of
the
Company’s
initial
public
offering
of
common
stock,
the
Company
implemented
the
Coronado
Global
Resources Inc.
Equity
Incentive
Plan,
or
the
Plan,
which
is
designed
to
align
compensation
for
certain
key
executives
with
the
performance
of
the
Company.
Since
its
approval, there have been no updates to the 2018 Plan
or issuance of a new plan.
The 2018
Plan provides
for the
grant of
awards
including stock
options, or
Options;
stock appreciation
rights;
restricted stock
units, or
RSUs; and
restricted stock,
valued in
whole or
in part
with reference
to shares
of the
Company’s CDIs or common stock, as well as performance-based awards, including performance stock
units, or
PSUs, denominated in CDIs or shares of
common stock. Each award is
entitled to receive one CDI with
ten
CDIs
representing one share of common stock.
The Company
measures the cost
of all stock-based
compensation, including
stock options,
at fair value
on the
grant date
and recognizes
such costs
within “Selling,
general and
administrative expense”
in the
Consolidated
Statements of
Operations and Comprehensive
Income. The
Company recognizes compensation
expense related
to Options, PSUs and RSUs
that cliff vest using
the straight-line method during
the requisite service period.
For
stock-based
awards
where
vesting
is
dependent
upon
achieving
certain
operating
performance
goals,
the
Company
estimates
the
likelihood
of
achieving
the
performance
goals
during
the
performance
period.
The
Company accounts
for forfeitures as and when they occur.
All awards require the grantee
to be employed by the
Company at the vesting date except
for grantees who meet
certain retirement criteria under the 2018 Plan.
NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS
(Continued)
Coronado Global Resources Inc. Form 10-K December 31,
The following awards were outstanding under the 2018
as of December 31, 2024:
Grant year
Vesting date
Performance period
PSUs
RSUs
31/03/2027
01/01/2024 - 31/12/2026
4,813,547
-
01/08/2025
not applicable
-
584,541
31/03/2026
01/01/2023 - 31/12/2025
4,259,508
-
31/03/2026
01/01/2022 - 31/12/2024
5,977,814
-
31/03/2025
01/01/2021 - 31/12/2023
2,736,265
-
The Options
and PSUs granted
that will
vest are
subject to the
achievement of goals
over the
performance period.
These goals are relative total shareholder return, or TSR, and scorecard performance metrics, or the Scorecard.
TSR is determined based on the Company’s percentile ranking of TSR over the performance period relative to a
predefined peer group of similar companies.
Performance metrics applicable to the Options and
PSUs granted as summarized below:
Grant year
Relative TSR
Scorecard
TSR
Safety
TSR
Cashflow
2024 and 2023
33.3%
33.3%
-
33.3%
2022 and 2021
33.3%
22.2%
22.2%
22.2%
Awards subject to
TSR vest based
on service
and market conditions.
The fair
value of
relative TSR was
estimated
on the grant date using a Monte Carlo simulation model.
Awards subject to Scorecard vest based on service and performance conditions. The fair value of the Scorecard
was
estimated
on
the
grant
date
fair
value
of
the
Company’s
common
stock
adjusted
for
dividends
foregone
during the performance period.
Stock Option Awards
The Company’s
2018 stock
option awards were
granted on the
date of the
IPO with an
exercise price
of $
2.84
per CDI (A$
4.00
per CDI) which was equal to the Company’s IPO
Price.
The Company’s Stock Option activity is summarized
below:
Stock Option Plan Activity
Opening at the beginning of the year
-
181,687
1,015,006
Forfeited
-
-
(833,319)
Vested
-
(181,687)
-
Outstanding at the end of the year
-
-
181,687
Exercisable at the end of the year
181,687
181,687
-
Weighted-average remaining contractual term (in
years)
-
-
0.25
The weighted
average grant
date fair
value of
all Option
Awards granted
was $
0.27
. The
exercise price
of the
option awards granted under 2018
plan is $
2.21
(A$
3.56
).
181,687
stock option awards remains exercisable until
they expire on October 23, 2028.
NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS
(Continued)
Coronado Global Resources Inc. Form 10-K December 31,
Performance Stock Unit Awards
Activity of the Company’s
PSUs that are ultimately
payable in the Company’s
CDIs or the equivalent
number of
shares of common stock granted under the 2018 Plan
is summarized below:
Performance Stock Units Plan Activity
Nonvested at the beginning of the year
17,992,453
14,858,921
8,501,869
Granted
5,498,291
4,872,122
7,471,100
Forfeited
(4,314,219)
(1,451,677)
(1,114,048)
Vested and settled
(1,389,391)
(286,913)
-
Nonvested and outstanding at the end of the year
17,787,134
17,992,453
14,858,921
Weighted-average grant date fair value (per CDI)
$
0.63
$
0.58
$
0.53
Weighted-average remaining term (in years)
1.36
1.82
2.54
The weighted average grant date fair value of all PSU
Awards granted in 2024 was $
0.67
(A$
1.02
).
The assumptions used to determine the PSUs fair value
on each grant date were as follow:
2024 Grant
2023 Grant
2022 Grant
2021 Grant
Time to maturity (in years) (i)
2.58
2.98
3.99
3.85
Dividend yield (ii)
1.2%
7.8%
16.3%
3.0%
Expected volatility (iii)
50.0%
60.0%
60.0%
60.0%
Risk-free interest rate (iv)
3.54%
2.98%
2.66%
0.35%
___________________
(i)
Time to maturity represents the period
that the Company’s stock-based
awards will vest. All awards cliff
vest at the end of the requisite service period.
(ii)
Dividend yield is the expected average yield of dividends
expected over the vesting period.
(iii)
The
volatility
was
estimated
using
comparable
public
company’s
volatility
and
the
Company’s
own
volatility for similar terms.
(iv)
Risk-free interest
rate is based
on an interpolated
Australian Government
Bond Rate
at the time
of the
grant for periods corresponding with the expected term
of the PSUs.
The above
inputs were
consistent to
determine the
fair value
of the
market and
performance conditions
of the
PSUs awards.
Restricted Stock Units
RSUs issued to certain employees are only subject
to service conditions and vest at various intervals
during the
service period.
The fair
value of
the award
was determined
using the
market price
of the
Company’s Common
Stock at the date of grant and compensation expense
is recorded over the requisite service period.
Activity of the Company’s
RSUs that are ultimately
payable in the Company’s
CDIs or the equivalent
number of
shares of common stock granted under the 2018 Plan
is summarized below:
Restricted Stock Units Plan Activity
Nonvested at the beginning of the year
734,893
1,144,034
-
Granted
584,541
144,506
1,144,034
Forfeited
(18,525)
(46,593)
-
Vested and settled
(716,368)
(507,054)
-
Nonvested and outstanding at end of the year
584,541
734,893
1,144,034
Weighted-average grant date fair value (per CDI)
$
0.87
$
1.26
$
1.22
Weighted-average remaining term (in years)
0.58
0.23
0.7
NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS
(Continued)
Coronado Global Resources Inc. Form 10-K December 31,
21.
Income Taxes
(Loss) income
from continuing
operations before
income taxes
for the
years presented
below consisted
of the
following:
December 31,
(US$ thousands)
U.S.
$
7,843
$
334,373
$
609,617
Non-U.S.
(157,033)
(210,559)
393,660
Total
$
(149,190)
$
123,814
$
1,003,277
Total
income tax (benefit) expense for the periods presented
below consisted of the following:
December 31,
(US$ thousands)
Current:
U.S. federal
$
(867)
$
(6,303)
$
90,933
Non-U.S.
(2,715)
75,270
State
(636)
(1,895)
25,347
Total
current
(783)
(10,913)
191,550
Deferred:
U.S. federal
(61,977)
28,943
Non-U.S.
23,706
(45,976)
35,425
State
(1,255)
(4,305)
4,193
Total
deferred
(39,526)
(21,338)
40,024
Total
income tax (benefit) expense
$
(40,309)
$
(32,251)
$
231,574
The following is a reconciliation of the expected statutory federal income tax (benefit) expense to the Company’s
income tax (benefit) expense for the periods presented below:
December 31,
(US$ thousands)
Current:
Expected income tax expense at U.S. federal statutory rate
$
(31,330)
$
26,001
$
210,690
Percentage depletion
(3,407)
(17,871)
(41,047)
FDII deduction
-
(7,796)
-
Permanent differences
(1,130)
2,176
(2,262)
Prior period tax return adjustments and amendments
(1,347)
(46,060)
Uncertain tax positions
(1,007)
21,243
-
U.S. and residual tax on foreign earnings
(32,007)
(11,146)
11,950
Australian branch impact on US taxes
29,924
(3,406)
30,099
State income taxes, net of federal benefit
(5)
4,608
21,548
Total
income tax (benefit) expense
$
(40,309)
$
(32,251)
$
231,574
Effective tax rate
27.0%
(
26.0
%)
23.1%
The
prior
period
tax
return
adjustment
and
amendments
relates
predominantly
to
a
Foreign
Derived
Intangible Income
(“FDII”) deduction
in the
U.S. which
the Company
has chosen
to deduct
after undertaking
a
study to confirm the Company’s eligibility.
Deferred income taxes
reflect the net
tax effects of
temporary differences between the
carrying amounts of
assets
and liabilities
for financial
reporting purposes
and the
amount used
for income
tax purposes
using the
enacted
tax rates and laws currently
in effect. Significant components
of the Company’s deferred
income tax assets and
liabilities as of December 31, 2024 and 2023 were as follows:
NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS
(Continued)
Coronado Global Resources Inc. Form 10-K December 31,
December 31,
(US$ thousands)
Deferred income tax assets:
Accruals and provisions
$
40,594
$
44,373
Contract obligations
90,849
108,672
Lease obligations
43,633
35,312
Asset retirement obligation
59,981
55,322
Goodwill
6,047
6,653
Tax
losses
115,695
59,964
Interest limitation carried forward
26,943
1,766
Other
31,228
19,574
Gross deferred income tax assets
414,970
331,636
Valuation allowance
(1)
(114,088)
(33,894)
Total
deferred income tax assets, net of valuation allowance
300,882
297,742
Deferred income tax liabilities:
Property, plant, equipment
and mine development, principally due to
differences in depreciation, depletion and asset
impairments
(277,424)
(297,915)
Warehouse stock
(12,209)
(12,824)
Right of use asset
(41,947)
(34,021)
U.S. liability on foreign deferred taxes
-
(19,075)
Other
(6,039)
(6,822)
Total
deferred income tax liabilities
(337,619)
(370,657)
Net deferred income tax liability
$
(36,737)
$
(72,915)
(1)
As of December 31, 2024,
the Company recorded a valuation allowance
of $
114.1
million (2023: $
33.9
million)
against deferred tax
assets consisting predominantly of
tax losses, land
and goodwill. A
valuation allowance must
be established for deferred
tax assets if it is “more
-likely-than-not” that they will
not be realized. The increase
in
the valuation allowance of $
80.1
million for the year was predominantly driven by a valuation allowance of $
79.5
million recognized during the
year against tax losses
of the Australian tax
consolidated group. Under
Australian
tax law,
tax losses
may be
carried forward
indefinitely and
utilized subject
to meeting
the tax
loss recoupment
rules, which broadly look at whether the Company has maintained the same
majority ownership and control, and
failing that, whether the Company has maintained a similar business.
At
December
31,
2024,
the
Australian
tax
consolidated
group
has
tax
losses
of
$
80.4
million
carried
forward
(2023: $
48.7
million) (tax
effected).
A company,
which is
not part
of the
Australian tax
consolidated group
had
tax losses carried forward of $
10.6
million at December 31, 2024 (2023: $
10.9
million) (tax effected) for which an
equal valuation has been recognized.
In August 2022,
the U.S. House
of Representatives
approved a $740
billion budget reconciliation
package that
includes a
new minimum tax
on certain large
corporations, an excise
tax on stock
buybacks, a significant
increase
in funding for
the Internal Revenue
Service, incentives
to promote climate
change mitigation
and clean energy,
and
provisions
to
promote
health
care
affordability.
The
Inflation
Reduction
Act
includes
a
book-minimum
tax
(AMT) similar to that originally
proposed in the House-approved
Build Back Better legislation
that would impose
a 15% minimum tax on
“adjusted financial statement income” of applicable corporations
over the “corporate AMT
foreign tax credit
for the taxable
year.”
Under the bill,
an applicable corporation’s
minimum tax would
be equal
to the amount by
which the tentative
minimum tax exceeds
the sum of the
corporation’s regular
tax for the year
and the corporation’s base erosion and anti-abuse tax liability under section 59A.
This provision was effective for
taxable years beginning after December 31, 2022 and
did not have any impact to the Company.
BEPS Pillar Two:
Australian legislation enacted for global and minimum
domestic taxes
In December 2024, the Australian Government enacted legislation that implemented key aspects of Pillar Two of
the OECD/G20 Two-Pillar Solution which includes a 15% global minimum tax for large multinational
enterprises.
This legislation did not have any impact on
the Company in the current year and will
be monitored going forward.
NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS
(Continued)
Coronado Global Resources Inc. Form 10-K December 31,
Unrecognized Tax
Benefits
The
Company
provides
for
uncertain
tax
positions,
and
the
related
interest
and
penalties,
based
upon
management’s assessment of whether a tax benefit is
more likely than not to be sustained upon examination by
tax authorities.
To the extent that the
anticipated tax outcome
of these uncertain
tax positions changes,
such changes in
estimate
will impact the income tax
provision in the period in which
such determination is made. The Company
recognizes
accrued interest and penalties related to uncertain tax
positions as a component of income tax expense.
The effect
of the total
amount of unrecognized
tax benefits,
if recognized, would
reduce our future
effective tax
rate.
December 31,
(US$ Thousands)
At beginning of the year
$
20,784
$
-
Additions based on tax positions related to current year
6,388
Additions for tax positions of prior years
2,342
14,396
Reductions for tax positions of prior year (including impacts
due to lapse
in statute)
(4,351)
-
At end of the year
18,897
20,784
The
return
to
provision
adjustments
for
reflect
a
reduction
due
to
results
from
the
study
conducted
by
specialists and
the fact
that the
benefit was
limited to
taxable income.
The Company
recorded interest
of $
0.5
million on uncertain tax positions for 2024. There were
no
amounts related to interest and penalties on uncertain
tax positions for 2023.
The Company is subject to taxation in
the United States and Australia. As of December 31, 2024,
tax years 2018
to 2023 are open to review
from taxation authorities in the United States. In
Australia, tax years 2020 to 2023 are
open to review and the Australian Taxation
Office is presently conducting a review
of these years.
22.
Fair Value Measurement
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
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
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 December
31, 2024
and 2023,
there were
no financial
instruments required
to be
measured at
fair value
on a recurring basis.
NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS
(Continued)
Coronado Global Resources Inc. Form 10-K December 31,
Other Financial Instruments
The following methods
and assumptions
are used to
estimate the fair
value of other
financial instruments
as of
December 31, 2024 and 2023:
•
Cash
and
cash
equivalents,
accounts
receivable,
short-term
deposits,
accounts
payable,
accrued
expenses,
lease
liabilities
and
other
current
financial
liabilities:
The
carrying
amounts
reported
in
the
Consolidated Balance Sheets approximate fair value due to the
short maturity of these instruments.
•
Restricted deposits,
lease liabilities,
interest bearing
liabilities and
other financial
liabilities: The
fair values
approximate the carrying amounts
reported in the Consolidated Balance Sheets.
•
Interest bearing liabilities: The
Company’s outstanding interest-bearing liabilities are carried at
amortized
cost. As of December 31,
2024, there were
no
amounts drawn under the
revolving credit sublimit of
the
ABL Facility.
The
estimated
fair value
of the
Notes
as
of December
31,
is
$
405.2
million
based
upon quoted market
prices in a
market that is
not considered
active (Level 2).
The estimated
fair value
of the Curragh Housing loan is $
27.9
million based upon unobservable inputs (Level 3).
23.
Accumulated Other Comprehensive Losses
The Company’s Accumulated
Other Comprehensive Losses
consists of foreign currency
translation adjustment
from subsidiaries not using the U.S. dollar as their functional currency.
(US$ thousands)
Foreign
currency
translation
adjustments
Balance at December 31, 2022
$
(91,423)
Net current-period other comprehensive income (loss):
Loss in other comprehensive income before reclassifications
(2,367)
Gain on long-term intra-entity foreign currency transactions
3,863
Total
net current-period other comprehensive loss
1,496
Balance at December 31, 2023
(89,927)
Net current-period other comprehensive income (loss):
Loss in other comprehensive income before reclassifications
(10,524)
Loss on long-term intra-entity foreign currency transactions
(37,109)
Total
net current-period other comprehensive losses
(47,633)
Balance at December 31, 2024
$
(137,560)
NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS
(Continued)
Coronado Global Resources Inc. Form 10-K December 31,
24. 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,
$
4,304
4,141
4,105
4,051
4,040
Thereafter
20,460
Total
$
41,101
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
December 31,
2024, purchase
commitments for
capital expenditures
were $
111.4
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
12 years
.
In the U.S., the Company typically
negotiates its rail and coal terminal
on an annual basis.
As of December 31,
2024, these Australian
and U.S. commitments
under take-or-pay
arrangements totaled
$
665.2
million, of which
$
90.9
million is obligated
within the next
year, $
184.4
million within 1-3
years, $
190.9
million 3-5 years
and $
199.0
million thereafter.
25. Contingencies
Surety bond, letters of credit and bank guarantees
In the
normal course
of business,
the Company
is a
party to
certain guarantees
and financial
instruments with
off-balance sheet risk, such as bank
guarantees, letters of credit and performance
or surety bonds.
No
liabilities
related to these arrangements are reflected in the Company’s Consolidated Balance Sheets.
Management does
not expect any material losses to result from these guarantees
or off-balance sheet financial instruments.
For
the U.S.
Operations,
in
order to
provide
the required
financial
assurance
for post
mining
reclamation,
the
Company generally uses
surety bonds. The
Company uses surety
bonds and bank
letters of credit
to collateralize
certain
other
obligations
including
contractual
obligations
under
workers’
compensation
insurances.
As
of
December
31,
2024,
the
Company
had
outstanding
surety
bonds
of
$
48.9
million
and
$
16.8
million
letters
of
credit issued from our letter of credit sublimit under the
ABL Facility.
For
the
Australian
Operations,
as
at
December
31,
2024,
the
Company
had
bank
guarantees
outstanding
of
$
23.9
million, including $
4.7
million issued from the ABL Facility, primarily in respect of certain rail and port take-
or-pay arrangements of the Company.
As at December 31, 2024, the Company, in aggregate, had total outstanding bank guarantees provided of $
40.7
million to
secure
obligations
and commitments,
including $
21.4
million issued
from
the
letter
of credit
sublimit
available under the ABL Facility.
Future regulatory changes relating to the above obligations could result in
increased obligations, additional costs
or additional collateral requirements.
Restricted deposits - cash collateral
As required by certain agreements, the Company had total cash collateral in
the form of deposits of $
68.5
million
and $
68.7
million
as of
December
31,
and
2023, respectively,
to
provide
back-to-back
support for
bank
NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS
(Continued)
Coronado Global Resources Inc. Form 10-K December 31,
guarantees not issued
under the ABL
Facility,
other performance obligations,
various other operating
agreements
and contractual obligations under workers compensation insurance. These deposits are restricted and classified
as “non-current” assets in the Consolidated Balance Sheets.
In accordance
with the
terms of
the ABL
Facility,
the Company
may be
required
to cash
collateralize
the ABL
Facility to the extent of outstanding letters
of credit after the expiration or termination
date, including an event of
default, of such letter of credit.
As of December 31, 2024,
no
such letter of credit had expired
or was terminated
and as such
no
cash collateral was required.
Stamp duty on Curragh acquisition
On September 27, 2022, the Company received from
the Queensland Revenue Office, or QRO,
an assessment
of the stamp duty
payable on its
acquisition of the Curragh
mine in March
2018. The QRO assessed
the stamp
duty on this acquisition at an amount of $
56.2
million (A$
82.2
million) plus unpaid tax interest. On November 23,
2022,
the
Company
filed
an
objection
to
the
assessment.
The
Company’s
objection
was
based
on
legal
and
valuation advice obtained, which supported an estimated stamp duty
payable of $
29.4
million (A$
43.0
million) on
the Curragh acquisition.
On January 9, 2024, the Company’s objection
to the assessed stamp duty was disallowed by the
QRO.
As per the Taxation
Administration Act (Queensland)
2001, the Company
can only appeal
or apply for a
review
of QRO’s
decision if
it has
paid the
total assessed
stamp duty
of $
56.2
million (A$
82.2
million) plus
unpaid tax
interest of $
14.5
million (A$
21.2
million). The Company had until March 11,
2024, to file an appeal.
On March 6, 2024,
the Company made an
additional payment, and
paid in full, the stamp
duty assessed by
the
QRO.
The Company disputes
the additional
amount assessed
of stamp duty
and, on March
11,
2024, filed its
appeal
with the Supreme
Court of Queensland.
The outcome of
the appeal remains
uncertain and as
such,
no
contingent
asset has been recognized at December 31, 2024.
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.
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.
26. Related
-
Party Transactions
Coronado Group LLC
Under
the
Coronado
Group LLC
agreement
(as
amended,
effective
October 23,
2018),
2,900
management
incentive units were designated and authorized for issuance
to certain members of management to motivate and
retain senior management.
The plan is designated
to allow key members
of management to share
in the profits
of the Company
after certain
returns are
achieved by
the equity
investors. The
incentive units
constitute “profit
interests” for the benefit of senior management in consideration
of services rendered and to be rendered.
Coronado Coal LLC and Coronado II
LLC merged to form Coronado Group
LLC in July 2015. Coronado IV
LLC
was
merged
into
Coronado
Group LLC,
the
Company’s
controlling
stockholder,
on
June 30,
2016.
Under
the
updated formation
agreement dated
June 30, 2016,
the
2,500
designated and authorized
units under the
initial
formation of
Coronado Group LLC
were replaced
by these
new units.
At December
31, 2024
and 2023,
2,900
management incentive units were outstanding.
The incentive units are comprised of three
tiers, which entitle the holders to receive
distributions from Coronado
Group LLC subordinate
to the
distributions to
be received
by Members.
As of
December 31, 2024
and 2023,
a
portion of the authorized
units have been allocated
to various members of the
Company’s management including
Mr. Garold Spindler,
our former CEO and current Executive Chair, who is also member of Coronado Group LLC.
Stockholder’s Agreement and Registration Rights
and Sell-Down Agreement
As
of
December
31,
2024,
Coronado
Group LLC
has
beneficial
ownership
in
the
aggregate
of
50.4
%
of
the
Company’s
Shares.
On
September 24,
2018,
Coronado
Group LLC
and
the
Company
entered
into
a
NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS
(Continued)
Coronado Global Resources Inc. Form 10-K December 31,
Stockholder’s Agreement
and a
Registration Rights
and Sell-Down
Agreement
which governs
the relationship
between Coronado Group LLC
and the Company
while the funds
manage by The
Energy & Minerals
Group, or
EMG
Group,
beneficially
owns
in
the
aggregate
at
least
%
of
our
outstanding
shares
of
common
stock
(including
shares
of
common
stock
underlying
CDIs),
including
certain
governance
matters
relating
to
the
Company.
Under
this
Agreement,
Coronado
Group LLC
has
the
ability
to
require
the
Company
to
register
its
shares under
the U.S.
Securities Exchange
Act of
1934 and
to provide
assistance
to Coronado
Group LLC
in
selling some or all of its shares (including in the form of CDIs).
The Stockholder’s Agreement provides for the following:
•
Consent rights: Coronado
Group LLC (or its
successors or permitted
assigns) will have
certain consent
rights, whereby pre-agreed actions
require approval by Coronado
Group LLC prior to these
actions being
undertaken;
•
Provision
of
information
to
Coronado
Group LLC:
There
will
be
ongoing
information
sharing
arrangements
relating
to
the
provision
of
financial
and
other
information
by
the
Company
and
its
subsidiaries to Coronado Group LLC group entities and cooperation and assistance between the parties
in connection with any financing (or refinancing) undertaken
by the Company;
•
Pro rata issuances: While Coronado Group LLC Group entities beneficially own in the
aggregate at least
% of
the outstanding
Shares, unless
Coronado
Group LLC
(or
its successors
or permitted
assigns)
agrees
otherwise,
issuances
of
equity
securities
must
have
been
offered
to
Coronado
Group LLC
in
respect of
its pro
rata shares
and any
equity securities
to be
allocated by
the Company
under a
share
incentive plan will be sourced by purchasing them in the market
rather than by issuing them; and
•
Board rights:
Certain rights
regarding the
board including
the right,
but not
the obligation,
to designate
the Directors
to be
included in the
membership of
any board committee,
except to the
extent that
such
membership would violate applicable securities
laws or stock exchange or stock market rules.
Relationship Deed
On September 24, 2018, the Company and Coronado Group LLC entered into a Relationship Deed under which
the Company provides
a number of indemnities
in favor of Coronado
Group LLC, including in
relation to certain
ASX initial public
offering, or
Australian IPO, -related
matters and also
certain guarantees
that have in
the past
been provided or
arranged by Coronado
Group LLC and
its affiliates
in support of
Company obligations.
Under
the
Relationship
Deed,
Coronado
Group LLC
also
agrees
to
indemnify
the
Company
in
relation
to
certain
Australian IPO-related matters and reimburse certain costs.
27.
Subsequent Events
Ordinary dividends
On
February
19,
2025,
the
Company’s
Board
of
Directors
declared
a
bi-annual
fully
franked
fixed
ordinary
dividend of $
8.4
million, or
0.5
cents per CDI. The
dividend will have a record
date of
March 12, 2025
, Australia
time,
and
be
payable
on
April 4, 2025
,
Australia
time.
CDIs
will
be
quoted
“ex”
dividend
on
March
11,
2025,
Australia time. The total ordinary dividend will be funded
from available cash.
Coronado Global Resources Inc. Form 10-K December 31,
REPORT OF INDEPENDENT REGISTERED PUBLIC
ACCOUNTING FIRM
To
the Shareholders and the Board of Directors of Coronado
Global Resources Inc.
Opinion on the Financial Statements
We
have
audited
the
accompanying
consolidated
balance
sheets
of
Coronado
Global
Resources
Inc.
(the
Company)
as
of
December
31,
and
2023,
the
related
consolidated
statements
of
operations
and
comprehensive
income,
stockholders’
equity
and
cash
flows
for
each
of
the
three
years
in
the
period
ended
December 31, 2024, and the related notes (collectively referred to as the “consolidated financial statements”). In
our opinion, the consolidated financial
statements present fairly,
in all material respects, the
financial position of
the Company at December 31, 2024 and
2023, and the results of its
operations and its cash flows for
each of the
three
years
in
the
period
ended
December
31,
2024,
in
conformity
with
U.S.
generally
accepted
accounting
principles.
We
also
have
audited,
in
accordance
with
the
standards
of the
Public
Company
Accounting
Oversight
Board
(United States)
(PCAOB), the
Company's internal control
over financial
reporting as
of December
31, 2024,
based
on
criteria
established
in
Internal
Control-Integrated
Framework
issued
by
the
Committee
of
Sponsoring
Organizations of the
Treadway Commission (2013 framework)
and our
report dated
February 19,
2025 expressed
an unqualified opinion thereon.
Basis for Opinion
These financial statements are the responsibility of the Company's
management. Our responsibility is to express
an opinion
on the
Company’s financial statements
based on
our audits.
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
Securities and Exchange Commission and
the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan
and perform the audit to
obtain reasonable assurance about whether the financial
statements are free of material
misstatement, whether
due to
error or
fraud. Our
audits included
performing procedures
to assess
the risks
of
material misstatement of the financial statements, whether due to error or fraud, and performing procedures that
respond to
those risks.
Such procedures
included examining,
on a
test basis,
evidence regarding
the amounts
and disclosures
in the
financial statements.
Our audits
also included
evaluating the
accounting principles
used
and significant
estimates made
by management,
as well
as evaluating
the overall
presentation
of the
financial
statements. We believe that our audits provide a reasonable
basis for our opinion.
Critical Audit Matter
The critical
audit
matter communicated
below is
a matter
arising
from
the current
period
audit
of the
financial
statements that was communicated
or required to be communicated
to the audit committee and that:
(1) relates
to accounts
or disclosures that
are material
to the
financial statements and
(2) involved our
especially challenging,
subjective, or
complex judgments.
The communication
of the critical
audit matter
does not alter
in any way
our
opinion on the consolidated financial
statements, taken as a whole,
and we are not, by
communicating the critical
audit matter below,
providing a separate opinion
on the critical audit matter
or on the accounts or
disclosures to
which it relates.
Coronado Global Resources Inc. Form 10-K December 31,
Accounting for income taxes
Description
of
the
matter
As disclosed in Note
21 to the consolidated
financial statements, the
Company recognized
total deferred
tax assets
of $415.0
million at
December 31,
2024, which
includes deferred
tax
assets
of
$115.7
million
related
to
tax
losses
carried
forward
from
prior
periods.
The
Company
recorded
a
valuation
allowance
of
$114.1
million
against
an
equal
amount
of
deferred tax assets at December 31, 2024.
Auditing management’s analysis of the realizability of deferred tax assets and the treatment
of tax
losses
in
the
overall
income
tax
calculation,
involved
complex
auditor
judgment,
in
order
to
assess
management’s
application
of
complex
tax
laws
to
the
Company’s
tax
structure and the resulting tax calculations.
How
we
addressed
the
matter in our audit
We obtained an understanding, evaluated the
design and tested the operating
effectiveness
of controls over
the Company’s
process to assess
income and deferred
taxes at year
end,
including the determination of whether valuation allowances
were required.
Our
audit
procedures,
which
involved
tax
professionals
with
knowledge
of
relevant
jurisdictional
tax
laws
and
regulations,
included,
among
other
procedures,
obtaining
an
understanding
of
the
Company’s
overall
tax
structure
and
evaluating
management’s
application
of
the
relevant
tax
laws,
on
a
taxpayer-by-taxpayer
basis
and
assessing
the
relevance,
completeness
and
accuracy
of
the
data
utilized
in
the
income
tax
calculations
and
testing
the
calculations
themselves.
Our
procedures
also
included
assessing
the
positive
and
negative
evidence
available
to
determine
the
realizability
of the
deferred
tax
assets,
for
example,
by
reference
to
expected
amounts
of
future
taxable
income
or
the
reversal of temporary differences.
/s/
Ernst & Young
We have served as the Company’s auditor
since 2020.
Brisbane, Australia
February 19, 2025
Coronado Global Resources Inc. Form 10-K December 31,

---

ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS
ITEM 9.
CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL
DISCLOSURE.
None.
Coronado Global Resources Inc. Form 10-K December 31,

---

ITEM 9A. CONTROLS AND PROCEDURES
ITEM 9A.
CONTROLS AND PROCEDURES
Disclosure Controls and Procedures
We are
subject to
the periodic
reporting requirements
of the
Exchange Act.
We have
designed our
disclosure
controls and procedures
to provide reasonable
assurance that information we
disclose in reports
we file or
submit
under the Exchange
Act is recorded,
processed, summarized,
and reported within
the time periods
specified in
the
rules
and
forms
of
the
SEC.
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
is
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 Interim Principal 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) 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.
Changes to Internal Control over Financial Reporting
There have been
no changes in
our internal control
over financial reporting
or in
other factors that
occurred during
our
last
fiscal
quarter
that
have
materially
affected,
or
are
reasonably
likely
to
materially
affect,
our
internal
controls over financial reporting.
Management’s Report on Internal Control
Over Financial Reporting
Our management
is responsible
for establishing and
maintaining adequate internal
control over
financial reporting
as
defined
in
Rules
13a-15(f)
under
the
Exchange
Act.
Internal
control
over
financial
reporting
is
a
process
designed to
provide reasonable
assurance regarding
the reliability
of financial
reporting and
the preparation
of
the Company’s
consolidated financial
statements for
external purposes
in accordance
with generally
accepted
accounting principles.
Internal control over financial reporting includes those
policies and procedures that (i) pertain
to the maintenance
of records that,
in reasonable detail,
accurately and fairly
reflect the transactions
and dispositions of
the assets
of the
Company;
(ii) provide
reasonable
assurance
that
transactions
are recorded
as
necessary
to permit
the
preparation of the
consolidated financial statements in
accordance with generally
accepted accounting principles,
and
that
receipts
and
expenditures
of
the
Company
are
being
made
only
in
accordance
with
appropriate
authorizations of management
and directors of
the Company;
and (iii) provide
reasonable assurance
regarding
prevention or timely detection of unauthorized acquisition, use or disposition of the Company’s
assets that could
have a material effect on the consolidated financial
statements.
Because
of
its
inherent
limitations,
internal
control
over
financial
reporting
may
not
prevent
or
detect
misstatements. Also,
projections of
any evaluation
of effectiveness
to future
periods are
subject to
the risk
that
controls may
become inadequate
because of
changes in
conditions, or
that the
degree of
compliance with
the
policies or procedures may deteriorate.
Management
conducted
an
assessment
of
the
Company’s
internal
control
over
financial
reporting
as
of
December 31, 2024, using the framework specified in
Internal Control - Integrated Framework (2013)
, published
by
the
Committee
of
Sponsoring
Organizations
of
the
Treadway
Commission
(COSO).
Based
on
this
assessment, management
concluded that
the Company’s
internal control
over financial
reporting was
effective
as of December 31, 2024.
Our
Independent
Registered
Public
Accounting
Firm,
Ernst
&
Young,
has
audited
our
internal
control
over
financial reporting, as stated in their unqualified opinion
report included herein.
Coronado Global Resources Inc. Form 10-K December 31,
REPORT OF INDEPENDENT REGISTERED PUBLIC
ACCOUNTING FIRM
To
the Shareholders and the Board of Directors of Coronado
Global Resources Inc.
Opinion on Internal Control Over Financial Reporting
We have audited Coronado Global Resources
Inc.’s internal control over financial
reporting as of December 31,
2024,
based
on
criteria
established
in
Internal
Control-Integrated
Framework
issued
by
the
Committee
of
Sponsoring Organizations
of the
Treadway
Commission (2013
framework) (the
COSO criteria).
In our opinion,
Coronado Global
Resources
Inc. (the
Company)
maintained,
in
all material
respects,
effective
internal control
over financial reporting as of December 31, 2024, based on the
COSO criteria.
We
also
have
audited,
in
accordance
with
the
standards
of the
Public
Company
Accounting
Oversight
Board
(United States) (PCAOB), the consolidated balance sheets of the Company as of December 31, 2024 and 2023,
the
related
consolidated
statements
of
operations
and
comprehensive
income,
stockholders’
equity
and
cash
flows for each
of the three
years in the
period ended
December 31, 2024,
and the related
notes and our
report
dated February 19, 2025 expressed an unqualified opinion
thereon.
Basis for Opinion
The Company’s management is responsible for maintaining effective internal control over financial reporting and
for its assessment
of the effectiveness
of internal control
over financial reporting
included in the
accompanying
Management’s Report on
Internal
Control Over
Financial Reporting. Our
responsibility is to
express an opinion on
the
Company’s
internal
control
over
financial
reporting
based
on
our
audit.
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
Securities
and
Exchange
Commission and the PCAOB.
We conducted our audit
in accordance with the standards
of the PCAOB. Those standards
require that we plan
and
perform
the
audit
to
obtain
reasonable
assurance
about
whether
effective
internal
control
over
financial
reporting was maintained in all material respects.
Our audit included obtaining an understanding
of internal control over financial reporting,
assessing the risk that
a
material
weakness
exists,
testing
and
evaluating
the
design
and
operating
effectiveness
of
internal
control
based
on
the
assessed
risk,
and
performing
such
other
procedures
as
we
considered
necessary
in
the
circumstances. We believe that our audit provides a reasonable
basis for our opinion.
Definition and Limitations of Internal Control Over
Financial Reporting
A
company’s
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
for external purposes in
accordance with generally
accepted accounting principles.
A company’s internal
control over financial
reporting
includes those policies
and procedures that (1)
pertain to the maintenance
of records that, in
reasonable detail,
accurately and
fairly reflect
the transactions and
dispositions of the
assets of
the company;
(2) provide reasonable
assurance
that
transactions
are
recorded
as
necessary
to
permit
preparation
of
financial
statements
in
accordance with
generally accepted
accounting principles,
and that
receipts and
expenditures of
the company
are being
made only
in accordance
with authorizations
of management
and directors
of the
company; and
(3)
provide
reasonable
assurance
regarding
prevention
or
timely
detection
of
unauthorized
acquisition,
use,
or
disposition of the company’s assets that could
have a material effect on the financial statements.
Because
of
its
inherent
limitations,
internal
control
over
financial
reporting
may
not
prevent
or
detect
misstatements. Also,
projections of
any evaluation
of effectiveness
to future
periods are
subject to
the risk
that
controls may
become inadequate
because of
changes in
conditions, or
that the
degree of
compliance with
the
policies or procedures may deteriorate.
/s/ Ernst & Young
Brisbane, Australia
February 19, 2025
Coronado Global Resources Inc. Form 10-K December 31,

---

ITEM 9B. OTHER INFORMATION
ITEM 9B.
OTHER INFORMATION
During
the quarter
ended
December
31, 2024,
no
director
or officer
(as
defined
in Rule
16a-1(f)
promulgated
under the Exchange
Act) of the
Company
adopted
or
terminated
a “Rule
10b5-1 trading arrangement”
or “
non
-
Rule
10b5-1
trading arrangement” (as each term is defined in Item 408
of Regulation S-K).

---

ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE
ITEM 10.
DIRECTORS, EXECUTIVE OFFICERS AND
CORPORATE GOVERNANCE.
The information required to
be furnished by
this Item will be
set forth in
our definitive proxy statement
for the 2025
Annual General
Meeting of
Stockholders, or
the Proxy
Statement, under
the headings
“Executive Officers
and
Corporate Governance
.” “Delinquent
Section 16(a)
Reports”
and the
Company’s
“Securities Dealing
Policy,
or
Insider Trading Policy,”
and is
incorporated herein by
reference and
made a
part hereof
from the
Proxy Statement.

---

ITEM 11. EXECUTIVE COMPENSATION
ITEM 11.
EXECUTIVE COMPENSATION.
The information required
to be furnished
by this Item
will be set forth
in the Proxy Statement
under the heading
“Executive
Compensation”
and
is
incorporated
herein
by
reference
and
made
a
part
hereof
from
the
Proxy
Statement.

---

ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS
ITEM
12.
SECURITY
OWNERSHIP
OF
CERTAIN
BENEFICIAL
OWNERS
AND
MANAGEMENT
AND
RELATED STOCKHOLDER
MATTERS.
The
information
required
to
be
furnished
by
this
Item
will
be
set
forth
in
the
Proxy
Statement
under
the
heading “Security
Ownership
of
Certain
Beneficial
Owners
and
Management”
and
is
incorporated
herein
by
reference and made a part hereof from the Proxy Statement.

---

ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
ITEM 13.
CERTAIN RELATIONSHIPS AND RELATED
TRANSACTIONS, AND DIRECTOR INDEPENDENCE.
The information required to be furnished by this Item will be set forth in
the Proxy Statement under the headings
“Certain
Relationships
and
Related
Transactions”
and
“Executive
Officers
and
Corporate
Governance”
and
is
incorporated herein by reference and made a part hereof from
the Proxy Statement.

---

ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES
ITEM 14. PRINCIPAL
ACCOUNTANT FEES AND SERVICES.
The information required
to be furnished
by this Item
will be set forth
in the Proxy Statement
under the heading
“Ratification of Appointment of
Ernst & Young as the Company’s Independent Registered Public
Accounting Firm
for the Fiscal Year
Ending December 31, 2025” and is
incorporated herein by reference and made a
part hereof
from the Proxy Statement.
Coronado Global Resources Inc. Form 10-K December 31,

---

ITEM 15. EXHIBITS, FINANCIAL STATEMENT SCHEDULES
ITEM 15.
EXHIBITS AND FINANCIAL STATEMENT
SCHEDULES
(a)
The following documents are filed as part of this
Annual Report on Form 10-K:
1.
Financial Statements.
See index to
Financial Statements
and Supplementary
Data on page
of this
Annual Report on Form 10-K.
2.
Financial Statements Schedules. Schedules are omitted because
they are not required or applicable, or
the required information is included in the Financial Statements
or related notes thereto.
3.
Exhibits. The exhibits filed with or incorporated by reference as part of this Annual Report on Form
10-K
are set forth in the Exhibit Index.
(b)
The documents listed in
the Exhibit Index of
this Annual Report on
Form 10-K are incorporated
by reference
or are filed with this Annual Report on Form 10-K, in
each case as indicated therein.
The following documents are filed as exhibits hereto:
Exhibit No.
Description of Document
2.1*
Share Sale Agreement-Cork, dated as of December 22, 2017, by and among Coronado
Australia Holdings Pty Ltd, Coronado Group LLC and Wesfarmers Limited (filed as
Exhibit 2.1 to the Company’s Registration Statement on Form 10 (File No. 000-56044)
filed on June 28, 2019 and incorporated herein by reference)
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 Bylaws (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)
4.1
Stockholder’s Agreement, dated as of September 24, 2018, by and between the
Company and Coronado Group
(filed
as
Exhibit
4.1
to
the
Company’s
Registration
Statement
on
Form
(File
No.
000-56044)
filed
on
April
29,
and
incorporated
herein by reference)
4.2
Registration Rights and Sell-Down Agreement, dated as of September 24, 2018, by and
between the Company and Coronado Group (filed as Exhibit 4.2 to the Company’s
Registration Statement on Form 10 (File No. 000-56044) filed on April 29, 2019 and
incorporated herein by reference)
4.3
Description of the Company’s securities registered under Section 12 of the Securities
Exchange Act of 1934 (filed as Exhibit 4.3 to the Company’s Annual Report on Form 10-
K (File No. 000-56044) filed on February 24, 2020 and incorporated herein by reference)
4.4
Indenture, dated as of October 2, 2024, among Coronado Finance Pty Ltd, as issuer,
Coronado Global Resources Inc., as guarantor, the subsidiaries of Coronado Global
Resources Inc. named therein, as additional guarantors, Wilmington Trust, National
Association, as trustee and priority lien collateral trustee, relating to Coronado Finance
Pty Ltd’s 9.250% Senior Secured Notes due 2029 (filed as Exhibit 4.1 to the Company’s
Current Report on Form 8-K (File No. 000-56044) filed on October 2, 2024 and
incorporated herein by reference)
4.5
Form of 9.250% Senior Secured Notes due 2029 (filed as Exhibit 4.2 to the Company’s
Current Report on Form 8-K (File No. 000-56044) filed on October 2, 2024 and
incorporated herein by reference)
10.1
Relationship Deed, dated as of September 24, 2018, by and among the Company,
Coronado Group, certain EMG Group entities and their affiliates (filed as Exhibit 10.1 to
the Company’s Registration Statement on Form 10 (File No. 000-56044) filed on April
29, 2019 and incorporated herein by reference)
Coronado Global Resources Inc. Form 10-K December 31,
Exhibit No.
Description of Document
10.2†‡
Syndicated Facility Agreement, dated as of May 8, 2023, among Coronado Global
Resources Inc., as guarantor, Coronado Finance Pty Ltd, as Australian borrower,
Coronado Curragh Pty Ltd, as Australian borrower, the subsidiaries of Coronado Global
Resources Inc. named therein, as additional guarantors, and Global Loan Agency
Services Australia Pty Ltd, as administrative agent, Global Loan Agency Services
Australia Nominees Pty Ltd, as collateral agent, the Hongkong and Shanghai Banking
Corporation Limited, Sydney branch, as a lender and DBS Bank Limited, Australian
branch, as a lender (filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K
(File No. 000-56044) filed on May 8, 2023 and incorporated herein by reference)
10.3
Second Amendment to Syndicated Facility Agreement, dated as of July 1, 2023, among
Citibank, N.A., as administrative agent, Coronado Coal Corporation, as U.S. Borrower,
Coronado Finance Pty Ltd, as Australian Borrower, and the other Loan Parties,
Administrative Agent and the lenders named therein (filed as Exhibit 10.1 to the
Company’s Current Report on Form 8-K (File No. 000-56044) filed on July 6, 2023 and
incorporated herein by reference)
10.4†
First Amendment to Syndicated Facility Agreement, dated as of October 2, 2024, among
Global Loan Agency Services Australia Pty Ltd, as administrative agent, Global Loan
Agency Services Australia Nominees Pty Ltd, as collateral agent, Coronado Global
Resources Inc., as holdings, and the guarantors named therein (filed as Exhibit 10.1 to
the Company’s Current Report on Form 8-K (File No. 000-56044) filed on October 2,
2024 and incorporated herein by reference)
10.5‡
Coronado Global Resources Inc. 2019 Short-Term Incentive Plan (filed as Exhibit 10.3
to the Company’s Registration Statement on Form 10 (File No. 000-56044) filed on April
29, 2019 and incorporated herein by reference)
10.6‡
Coronado Global Resources Inc. 2018 Equity Incentive Plan (filed as Exhibit 10.4 to the
Company’s Registration Statement on Form 10 (File No. 000-56044) filed on April 29,
2019 and incorporated herein by reference)
10.7
Coronado Global Resources Inc. 2018 Equity Incentive Plan (incorporated by reference
to Appendix A to the Proxy Statement)
10.8
Coronado Global Resources Inc. Employee Stock Purchase Plan (incorporated by
reference to Appendix B to the Proxy Statement)
10.9>‡
Coronado Global Resources Inc. 2018 Non-Executive Director Plan (filed as Exhibit 10.5
to the Company’s Registration Statement on Form 10 (File No. 000-56044) filed on April
29, 2019 and incorporated herein by reference)
10.10>
Employment Agreement, dated as of May 25, 2023, between Coronado Global
Resources Inc. and Garold Spindler (filed as Exhibit 10.1 to the Company’s Current
Report on Form 8-K (File No. 000-56044) filed on May 31, 2023 and incorporated herein
by reference)
10.11>‡
Employment Agreement dated as of July 7, 2020, by and between Curragh Queensland
Mining Pty Ltd and Gerhard Ziems (filed as Exhibit 10.1 to the Company’s Current Report
on Form 8-K/A (File No. 000-56044) filed on July 7, 2020 and incorporated herein by
reference)
10.12>‡
Employment Agreement dated as of August 5, 2021, by and between Coronado Global
Resources Inc. and Jeffrey Bitzer (filed as Exhibit 10.1 to the Company’s Current Report
on Form 8-K (File No. 000-56044) filed on August 9, 2021 and incorporated herein by
reference)
10.13>
Appointment Agreement, dated as of May 25, 2023, between Coronado Global
Resources Inc. and Douglas G. Thompson (filed as Exhibit 10.3 to the Company’s
Current Report on Form 8-K (File No. 000-56044) filed on May 31, 2023 and
incorporated herein by reference)
10.14>‡
Employment Agreement dated as of July 12, 2021, by and between Coronado Global
Resources Inc. and Christopher P. Meyering (filed as Exhibit 10.11 to the Company’s
Annual Report on Form 10-K (File No. 000-56044) filed on February 22, 2022 and
incorporated herein by reference)
Coronado Global Resources Inc. Form 10-K December 31,
Exhibit No.
Description of Document
10.15>‡
Employment Agreement dated as of October 18, 2018, by and between Coronado
Curragh Pty Ltd and Emma Pollard (filed as Exhibit 10.11 to the Company’s Registration
Statement on Form 10 (File No. 000-56044) filed on April 29, 2019 and incorporated
herein by reference)
10.16>
Appointment Letter Agreement, dated as of May 25, 2023, between Coronado Global
Resources Inc. and William (Bill) Koeck (filed as Exhibit 10.2 to the Company’s Current
Report on Form 8-K (File No. 000-56044) filed on May 31, 2023 and incorporated herein
by reference)
10.17>
Form of Stock Option Award Agreement (Long Term Incentive Grant) (filed as Exhibit
10.12 to the Company’s Registration Statement on Form 10 (File No. 000-56044) filed
on April 29, 2019 and incorporated herein by reference)
10.18>
Form of Performance Stock Unit Award Agreement (Long Term Incentive Grant) (filed
as Exhibit 10.13 to the Company’s Registration Statement on Form 10 (File No. 000-
56044) filed on April 29, 2019 and incorporated herein by reference)
10.19>
Form of Non-Executive Director Restricted Stock Unit Award Agreement (filed as Exhibit
10.14 to the Company’s Registration Statement on Form 10 (File No. 000-56044) filed
on April 29, 2019 and incorporated herein by reference)
10.20>
Form of Restricted Stock Unit Award Agreement (Retention Grant) (filed as Exhibit 10.15
to the Company’s Registration Statement on Form 10 (File No. 000-56044) filed on April
29, 2019 and incorporated herein by reference)
10.21>
Form of Restricted Stock Unit Award Agreement (STIP Deferral Grant) (filed as Exhibit
10.16 to the Company’s Registration Statement on Form 10 (File No. 000-56044) filed
on April 29, 2019 and incorporated herein by reference)
10.22>
Summary of Non-Executive Director Compensation (filed as Exhibit 10.17 to the
Company’s Annual Report on Form 10-K (File No. 000-56044) filed on February 24,
2020 and incorporated herein by reference)
10.23>
Form of Agreement of Indemnity, Insurance and Access (filed as Exhibit 10.18 to the
Company’s Registration Statement on Form 10 (File No. 000-56044) filed on April 29,
2019 and incorporated herein by reference)
10.24‡
Amended Coal Supply Agreement, dated as of November 6, 2009, by and between
Stanwell Corporation Limited and Wesfarmers Curragh Pty Ltd (now known as Coronado
Curragh Pty Ltd) (filed as Exhibit 10.20 to the Company’s Registration Statement on
Form 10 (File No. 000-56044) filed on June 14, 2019 and incorporated herein by
reference)
10.25‡
Deed of Amendment to the Amended Coal Supply Agreement, dated as of November
21, 2016, by and between Stanwell Corporation Limited and Wesfarmers Curragh Pty
Ltd (now known as Coronado Curragh Pty Ltd) (filed as Exhibit 10.21 to the Company’s
Registration Statement on Form 10 (File No. 000-56044) filed on June 14, 2019 and
incorporated herein by reference)
10.26‡
Curragh Mine New Coal Supply Deed, dated August 14, 2018, by and between Stanwell
Corporation Limited and Coronado Curragh Pty Ltd (filed as Exhibit 10.22 to the
Company’s Registration Statement on Form 10 (File No. 000-56044) filed on June 14,
2019 and incorporated herein by reference)
10.28
Deed of Amendment, dated September 20, 2018 and effective September 21, 2018,
among Coronado Curragh Pty Ltd, Stanwell Corporation Limited and Coronado Group
LLC (filed as Exhibit 10.23 to the Company’s Registration Statement on Form 10 (File
No. 000-56044) filed on June 14, 2019 and incorporated herein by reference)
10.29
Deed of Amendment, dated March 5, 2019 and effective May 21, 2019, between
Coronado Curragh Pty Ltd and Stanwell Corporation Limited (filed as Exhibit 10.24 to
the Company’s Registration Statement on Form 10 (File No. 000-56044) filed on June
14, 2019 and incorporated herein by reference)
10.30
Deed of Amendment, dated May 9, 2019 and effective May 21, 2019, between Coronado
Curragh Pty Ltd and Stanwell Corporation Limited (filed as Exhibit 10.25 to the
Company’s Registration Statement on Form 10 (File No. 000-56044) filed on June 14,
2019 and incorporated herein by reference)
Coronado Global Resources Inc. Form 10-K December 31,
Exhibit No.
Description of Document
10.31†‡
New Coal Supply Agreement, dated as of July 12, 2019, by and between Stanwell
Corporation Limited and Coronado Curragh Pty Ltd. (filed as Exhibit 10.2 to the
Company’s Quarterly Report on Form 10-Q (File No. 000-56044) filed on November 7,
2019 and incorporated herein by reference)
19.1
Securities Dealing Policy of Coronado Global Resources Inc.
21.1
List of Subsidiaries
23.1
Consent of Ernst & Young
23.2
Consent of Barry Lay
23.3
Consent of Daniel Miller
23.4
Consent of Claire McGahan
23.5
Consent of Marshall Miller & Associates, Inc.
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 Interim Principal 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
96.1
Technical Report Summary for Curragh
96.2
Technical Report Summary for Buchanan
96.3
Technical Report Summary for Logan
96.4
Technical Report Summary for Mon Valley
The following materials from the Company’s Annual Report on Form 10-K for the period
ended December
31,
2024,
formatted
in
iXBRL
(Inline
Extensible
Business
Reporting
Language): (i) Consolidated Balance
Sheets, (ii) Consolidated
Statements of Operations
and Consolidated Statements of
Comprehensive Income, (iii)
Consolidated Statements
of Stockholders’ Equity/Members’ Capital, (iv) Consolidated
Statements of Cash Flows,
(v) related notes to these financial statements and (vi)
document and entity information
Cover Page
Interactive Data
File (the cover
page XBRL
tags are embedded
within the
Inline XBRL document)
____________________
*
Portions of this
exhibit have been omitted
pursuant to Item 601(b)(2)(ii)
of Regulation S-K,
which portions
will be furnished to the Securities and Exchange Commission
upon request.
†
Certain schedules and exhibits to this
agreement have been omitted pursuant to Item
601(a)(5) and Item
601(a)(6)
of
Regulation
S-K.
A
copy
of
any
omitted
schedule
and/or
exhibit
will
be
furnished
to
the
Securities and Exchange Commission upon request.
‡
Portions
of
this
exhibit
have
been
omitted
pursuant
to
Item
601(b)(10)(iv)
of
Regulation
S-K,
which
portions will be furnished to the Securities and Exchange Commission
upon request.
>
Management contract, compensatory plan or arrangement
Coronado Global Resources Inc. Form 10-K December 31,