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Dec 31, 2019
Coronado Q4 2019 Earnings Report
Coronado's financial results improved against the previous corresponding period with an increase in net income.
Key Takeaways
Coronado Global Resources Inc. reported a net income of $305.5 million for Q4 2019, a significant increase compared to the previous year. The company's performance was driven by stable production and lower mining costs.
Reported FY19 Statutory Net Income of US$305.5 million, up US$190.9 million (166.6%) compared to US$114.6 million in FY18, up US$136.6 million (80.9%) compared to proforma FY18 of $168.9million
Adjusted EBITDA1 of US$634.2 million, up 5.9% compared to FY18 underpinned by lower mining cost per tonne
Revenue of US$2,215.8 million, down 3.5% from US$2,297.0 million in FY18 due to lower Group realised metallurgical pricing as a result of substantially lower benchmark globally pricing for metallurgical coal in the second half of FY19
Group mining cost of US$51.8 per tonne, 8.2% less than FY18 as a result of operational improvements and higher production volumes
Coronado
Coronado
Coronado Revenue by Segment
Coronado Revenue by Geographic Location
Revenue by Segment
Curragh Revenue
CapyFin.comBuchanan Revenue
CapyFin.comLogan Revenue
CapyFin.comGreenbrier Revenue
CapyFin.comRevenue by Geographic Location
USA Revenue
CapyFin.comAustralia Revenue
CapyFin.comAsia Revenue
CapyFin.comEurope Revenue
CapyFin.comBrokered sales Revenue
CapyFin.com Forward Guidance
Coronado's key focus in FY20 is the implementation of the new Curragh mine plan which is targeted to increase Curragh’s saleable production to 15 Mt by 2023.
Positive Outlook
- Implementation of the new Curragh mine plan which is targeted to increase Curragh’s saleable production to 15 Mt by 2023.
- The infrastructure contracts relating to rail and near-term port capacity that underpin the expansion plans, have been executed and are now in place.
- The capital program to improve the train load out performance and related CHPP capital works is advancing, with detailed construction and procurement activities to commence in the near term.
- The tender process for the Curragh North Mining contract concluded with Thiess being award a six-year contract.
- The Company will also continue to drive improvements to dragline performance and CHPP reliability at Curragh to further enhance the operations.
Challenges Ahead
- Demand for seaborne metallurgical coal has been impacted by a slowing global economy, high cost of raw materials impacting steel producers cash margins and steel production cuts in Europe and Brazil.
- Steel producers outside of China, in particular Japan, Korea, Brazil and Europe have been affected by a slowdown in the demand for steel.
- Spot coal availability remains strong in the Atlantic and Pacific basins with the market presently oversupplied.
- Buchanan is the only Coronado-owned mine impacted by the tariffs imposed by China on the import of US coal.
- The impact of the unfolding COVID19 virus situation on steel production is yet to be quantified.
Revenue & Expenses
Visualization of income flow from segment revenue to net income