ASX$CODQL

Coronado Global Resources Inc · Q4 2019 earnings

Q4 2019 earnings · · Investor relations

Briefing

Coronado's financial results improved against the previous corresponding period with an increase in net income.

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

Headline financials

Total Revenue

A$446M

Previous: A$581M-23.3%
EPS (adj)

A$0.23

Previous: A$0.21+9.5%
Australia TRIFR

6.5

No prior period
US TRIR

2.14

No prior period
Group Mining Cost

A$51.80

Previous: A$56.40-8.2%
Metallurgical Coal Pricing

A$128.80

Previous: A$133.30-3.4%
Australian Metallurgical Pricing

A$140.40

Previous: A$154.60-9.2%
US Metallurgical Pricing

A$111.30

Previous: A$107.90+3.2%
Effective Tax Rate

27.3%

Previous: 39.6%-31.1%
Capital Expenditures

A$65.9M

Previous: A$41.3M+59.7%
Free Cash Flow

-A$27.1M

Previous: A$49.6M-154.6%
Net Income

A$306M

Previous: A$33.8M+803.3%
Operating Income

A$333M

Previous: A$118M+181.6%
Gross Profit

A$196M

Previous: A$312M-37.0%
Cash & Equivalents

A$26.6M

Previous: A$125M-78.7%
Total Assets

A$2.21B

Previous: A$2.21B+0.2%
Stock-Based Comp

A$78K

Previous: A$541K-85.6%

Revenue & EPS history

Coronado · Revenue · Quarterly

A$446M

Q4 2019-23.3%vs Q4 2018
Beat estimate in 3 of 3 quarters(100%)
ActualEstimate

Revenue by segment

Coronado · A$2.17B total across 4 segments · Q4 2019

  • Curragh
    A$1.43B-1.3%
  • Buchanan
    A$405M-20.6%
  • Logan
    A$286M+23.0%
  • Greenbrier
    A$53.3M-20.6%

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.

Tailwinds

  • 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.

Headwinds

  • 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.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 18 quarterly earnings reports

Historical avg

+41.0%

Avg return

Earnings day

+51.7%

Avg return

5 days after

+42.6%

Avg return

30 days after

6%

1 / 18 earnings

Positive

+844.0%

Q2 2022

Best reaction

-38.9%

Q4 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2025+0.0%+0.0%-3.3%
Q3 2024+0.0%+0.0%-8.3%
Q2 2024+0.0%+0.0%+0.0%
Q1 2024+0.0%+0.0%-6.7%
Q4 2023-26.9%+0.0%-21.3%
Q3 2023+0.0%-1.9%-1.9%
Q2 2023+0.0%-14.4%-9.6%
Q1 2023-28.3%-1.8%-20.5%
Q4 2022-38.9%-5.1%-5.8%
Q3 2022+0.0%+0.0%+12.8%
Q2 2022+844.0%+964.0%+804.0%
Q1 2022+0.0%+0.0%+0.0%
Q4 2021+0.0%+0.0%+0.0%
Q3 2021+0.0%+1.2%-1.2%
Q2 2021-11.1%-11.1%-11.1%
Q1 2021+0.0%+0.0%+0.0%
Q4 2020+0.0%+0.0%+0.0%
Q3 2020+0.0%+0.0%+39.7%
Q2 2020
Q1 2019
Q1 2020
Q4 2019
Q3 2019
Q4 2018
Q2 2019

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