Coronado Global Resources Inc.

Overview Key strengths Key risks Exposure to jurisdictions producing high-quality coal. Exposure to volatile met coal prices and cyclical steel end-markets. Access to seaborne markets in Asia, Europe and South America, and U.S. domestic market. Relatively high portfolio breakeven costs due to fixed obligations. Supportive long-term demand outlook for premium hard coking coal (HCC) due to scarce reserves. Long-term substitution risk from scrap steel used for steel production in electric arc furnaces. An ongoing recovery in global industrial demand and coal-supply tightness with China's import ban on Australian coal have led to sustained met coal prices of above US$250 per ton (t) since the beginning of September 2021. Premium low volatile Australia benchmark prices averaged about US$265/t in the third

...We anticipate that strong met coal pricing conditions will facilitate robust cash flow generation for the next six months at least. An ongoing recovery in global industrial demand and coal-supply tightness with China's import ban on Australian coal have led to sustained met coal prices of above US$250 per ton (t) since the beginning of September 2021. Premium low volatile Australia benchmark prices averaged about US$265/t in the third quarter of 2021 and sustained above this over October and November. Strong prices coupled with normalizing production in the U.S. should support Coronado Global Resources Inc.'s revenue recovery, leading to significant cash flow in the second half of 2021 with upside forecast into 2022....

Full Report