Coronado Global Resources Inc.

Thank you for standing by and welcome to the Coronado Global Resources fourth quarter investor call. All participants are in a listen-only mode. There will be a discussion of results from the CEO and team followed by a question and answer session. If you wish to ask a question, you will need to press the star key followed by the number one on your telephone keypad. I would now like to hand the conference over to Chantelle Esser, Vice President of Investor Relations. Please go ahead.

Thank you, operator, and thank you, everyone, for joining Coronado's fourth quarter investor call for 2024. Today, we released our quarterly report to the ASX and SEC, in which we outline our production and sales statistics, as well as our key information related to safety, coal markets, and financial performance. A more detailed outline of our financial position and results is expected to be released to the market on the 20th of February with our form 10-K. Today I am joined by our Managing Director and Chief Executive Officer, Douglas Thompson. Within our report, you will see our notice regarding forward-looking statements and reconciliations of certain non-US GAAP financial measures. We encourage you to review these statements in conjunction with our other filings with the ASX and SEC. I also remind everyone that Coronado quotes all numbers in US dollars and metric tons unless otherwise stated. On our hand, the call over to Douglas.

Thanks, Chantelle. And belated Happy New Year to all and thank you for taking the time to join us today. In summary, it's been a better quarter for us. We held the opening of our Mammoth Underground mine, which included the cutting of first coal, which was achieved on time and on budget. And both our business units delivered a stronger quarter. We finished the new series of notes that was oversubscribed with improved pricing and terms, and our safety results remained better than industry averages, and we finished the year with mining costs back below $100 a tonne, a strong closing inventory position, and a solid balance sheet. Key metrics achieved in quarter four were our group ROM production was 6.9 million tonnes, our saleable production was 4 million tonnes, and our sales volume was 4.1 million tonnes. At the group level, our total recordable injury rate was 1.18, remaining well below industry averages in both the United States and in Australia. Our improvement journey is positive and ongoing. If you turn to page two, you'll see our operations and sales summary there. On a year-to-date basis, at December, Coronado achieved ROM coal production of 26.6 million tonnes. up approximately 5% on 2023 and on 2022, reflecting improved planning and efficiencies across all of our operations. The Australian Business Unit experienced a better December quarter. Currah Complex delivered ROM coal production of 3.4 million tonnes, which is 29% better than the prior quarter. But the last week of December, Currah was impacted by unplanned electrical outages, which impacted our coal processing plants and overland conveyor. Production was impacted for about one week while we attended to the repair work required after the outages and knock-on impacts. The outage meant that we built ROM inventory in this period that we couldn't process, which is expected to benefit us in quarter one in production and sales, and actually is. Due to the improved productivity from our dragline system, the previously announced Additional fleet was idled in late October. The idle fleet consisted of a company-owned shovel, T282 trucks, and associated ancillary equipment. This is the fifth fleet removed from our open-cut operations since April 2024. Results achieved from actions taken over the last 18 months to enable our productivity. Our mine site cash costs decreased by 37% to $90 a tonne in the quarter. This shows the efforts of our people to follow our plan in a determined and disciplined manner is delivering opportunities for improvement. And this plan is focused on optimizing performance by enabling productivity and removing system complexity. Efforts in the quarter have been focused on continuing to improve productivity from our dragline dozer and cast blast system. And this dragline system continues to exceed our improvement targets, with the ratio of waste moved by draglines compared to truck and excavator now at 52%. And this is 8% above our plan for 2024, and it's up from what was 37% back in 23. And in the quarter, the next major milestone in this plan was delivered, and that was to secure an alternate coal source and a coal source that was at a lower cost per tonne than our current operations. The now-operational Mammoth Underground offers that milestone. First coal was mined on time and on budget, and now we're in ramp-up phase. Moving to our US business unit, we had our planned long-rule move in associated maintenance in the month of November at Buchanan. The US continues to improve quarter-on-quarter throughout 2024, delivering higher production, sales volumes, and lower cost per tonne. And the year's operations delivered ROM production of 3.5 million tonnes, a positive and sustained trend. Buchanan continued to achieve improved skip efficiencies following the work that was undertaken earlier in the year, with skip counts remaining at their best rate in the last two years. And the ROM production from our U.S. is up 10% on 2023. Moving to our financial position and a bit of market outlook, the December quarter group revenue was $558 million. And the December year-to-date group revenue was just over $2.5 billion. Revenues reflect an 18.9% fall in PLV hot coking gold free on board Australian index. combined with lower annual U.S. domestic contract pricing if we compare that to December 2023. In the December quarter, the average PLV index was $203, and the group average realized price per ton of MEDCOL sold for the December quarter was $163 a ton. Export sales volumes was 69.6% of total sales volumes, and met coal revenues were 95.2% of total revenues. The year-to-date sales volumes for the group at December 24 was 15.8 million tonnes, which is in line with the same period in 2023. We continue to see steel markets and raw coal material demand coming under pressure, and the PLV index at a three-year low since early September. China's stimulus measures so far have not proved the confidence in the steel market. Steel raw material prices remain subdued, with the main met coal index staying range-bound at that $200 level. And during the quarter, the anticipated positive momentum from India didn't eventuate. Neither was their recovery from hot metal production outside of China. The long-term outlook for Seaborne Metco remains very positive based on the fundamentals that we see within the market. Turning to our finance, we ended the year with a net debt position of $85 million, with closing cash position of $339 million and available liquidity of $468 million. And we successfully issued $400 million at 9.25% of senior secured notes due in 2029 in an offering that was many times oversubscribed. The proceeds from this was used to redeem the remaining $242 million of the original senior secured notes due in 2026 and provided additional balance sheet strength. To note, the tenure of the extension put the finance date beyond the expiry of the coal supply agreement with Stanwell, after which Coronado's earnings and cash flow are anticipated to significantly improve. And in the quarter, we also announced our new Chief Financial Officer, Barry Fonamava, and Barry will be starting with us on the 1st of April 2025. And lastly, I'll give you a brief update on our projects, and I'll start with Mammoth. So Mammoth Underground project at the Curragh Complex is now operational. And we're in execution phase, and we're going to be ramping up over the rest of 2025. Mammoth Underground offers Curragh Complex several strategic improvement opportunities. Firstly, reduced cost per tonne. The cost per tonne for mammoth mine is forecast to be in the second quarter. And this will reduce the overall cost per tonne from the complex. Diversified coal production. The underground mine will de-risk production continuity as it offers an additional coal supply to our processing plants. And this additional supply is not affected by wet weather as the open cuts are. And increased capacity. Once fully operational, the project is expected to deliver 1.5 to 2 million tonnes per annum of sellable production. in the first phase, and further expansion is possible and will be evaluated once the results are determined from the first phase. And Mammoth Mine has substantial high-quality met coal. The reserve base is more than 41 million ROM tons, with a coal quality expected to mirror the existing products that we get from Curranorth Open Cut. Now if I turn to the US and give you a quick update on our organic expansion projects at Buchanan, Both of these projects remain on budget and on schedule. In the December quarter, major components installation on the second set of skips project progressed and the shaft collar foundation was completed on this project. And then with the excavation works completed, the construction of the reclaimed tunnel and the screening building on the new surface wall call storage area was ongoing. Full completion of both projects is on budget and on track to be completed in quarter two of this year in 2025. Ultimately, the increased wasting capacity in storage area will reduce the risk of bottlenecks, allowing our northern Longwall and southern Longwall districts and equipment to operate at higher capacity and improved productivities. And with that, I'll hand over to the operator, Mel, and take your questions.